United Arab Emirates UAE
Receive Only The Best Posts Via Email
The UAE Civil Transactions Law Article 267 says that no party can revoke, modify or rescind a contract, except by mutual consent or court order.
The developer does not have the right to amend the Sale and Purchase Agreement (SPA) unilaterally unless by a mutual agreement of such amendment. In a valid and binding contract, none of the contracting parties may revoke, modify or rescind it, except by mutual consent, order of the court, or a provision of the law.
In general, any party in bilateral contracts has the right to request for cancellation, however, the termination can only be finalised after an order of the Court.
Article 272 of the same law states that -
In bilateral contracts, if one of the parties does not perform his contractual obligations, the other party may, after serving a formal notification to the debtor, demand the performance of the contract or its rescission. The court will decide whether the developer is late or not in the implementation of his contractual obligations, and whether this delay exceeds the limits to the extent that leads the buyer to request the termination of the contract, or not.
The SPA is a legally binding contract that will define the terms of an agreed-upon real estate transaction. Real estate contracts need to be amended for unforeseen reasons.
A standard amendment to the SPA might include information concerning changes or additions in price, date of delivery, inspection requirements, financing conditions, title policy provisions, etc.
The amendment can be drafted to meet your specific needs for your deal. Typically, you would have an attorney draft up an amendment if it's not already included in the original SPA document. Once the amendment to a purchase and sale agreement is drafted, it will be signed by both parties to become legally binding.
The Law Reporters was established with the principle of making legal content accessible to the masses and connecting people with lawyers in the UAE. Get in touch with our empanelled lawyers and law firms who will provide you with a comprehensive service in the UAE.
For any legal queries or information, contact info@thelawreporters.com or call us on +971547928720
Purchasing a property in Dubai can seem like a daunting task if you're not familiar with the local real estate market. However, with the right guidance you can navigate the process smoothly. Though the basic steps include determining your budget and choosing the right property to call your home, the article will look at it from the legal aspects of property sale in Dubai. Step 1: Verify before making...
While signing an agreement for Sale or Purchase of a property, it is quite pertinent to carefully read the terms and read between the lines, to get a full grasp on the rights included and what needs to be given attention. As far as contracts in the UAE is concerned, a Sale Purchase Agreement is key to the finalization of sale of Real Estate and any other moveable or immovable asset. A Sale and Purchase...
The Federal Prosecutors of UAE initiated a major investigation into Dubai-based real estate developer Union Properties. The complaints were lodged by the Securities and Commodities Authority on allegations of financial violations committed by Khalifa Hassan Al Hammadi, Chairman of the Board of Directors of Union Properties. The allegations include the firm selling property at less value and hiding...
A tenant in Abu Dhabi has been charged to pay Dh 300,000 in compensation for partitioning the villa he was leasing, and further subletting it to four different families. The landlord sued the tenant for damaging his villa. The grounds for damage are that the tenant illegally divided his house and rented it to four parties without his permission. The plaintiff has argued that this act violates the...
The Social Contract is thought to have laid the groundwork for our legal system and government. People from the State of Nature banded together and urged the government for better protection of basic rights, i.e., rights granted by nature: (1) The right to life, (2) the right to liberty, and (3) the right to property. An individual or group of individuals (government) vested with the authority to...
Calling out the State’s argument of Helplessness, the High Court criticized the Government for inaction in the inter-denominational land dispute between orthodox and jacobite denominations of Christian community. The court noted that the Supreme Court of India in their final ruling in 2017 had granted the Orthodox group the power to govern 1,100 churches and parishes under the Malankara Orthodox...