Contract Drafting In UAE with Dhanguard

02Oct, 22

Contract Drafting In UAE with Dhanguard

For all types of Companies and business, the contracts, agreements, and transaction documents are a crucial and fundamental component of doing business. These documents are frequently complex legal documents that must include the required clauses to withstand lawsuits and are formal in nature.

It is often advised to have written contracts with clients, suppliers, partners, key workers, third party providers, and governmental entities even though verbal agreements are sometimes legally enforceable. But one should not take the chance as the terms of a verbal agreement might become a tedious task for you to prove in the event of any mishappening from the opposite parties. Therefore we strongly advise you to get such documents drafted.

Thus in today’s blog, Dhanguard will extensively discuss every crucial aspect about commercial and corporate contracts in UAE. So without any further ado, let’s learn!

Along with a wide array of services provided, Dhanguard also helps with MainlandOffshore and  Business Account opening as well.

What are the Components of a Commercial Contract in the United Arab Emirates?

The Civil Transactions Law, Federal Law No. 5 of 1985 (the Civil Code), which is founded on Sharia principles, governs business contracts in the United Arab Emirates. All parties to a contract are required to act honestly and fairly, according to the Civil Code's codification of the factor of good faith, which is a fundamental aspect of all commercial contracts.

According to the Civil Code, a business contract needs to include the following components:

  • An agreement will only be created and entered into with both party’s mutual consent

  • A subject matter that can be defined or is capable of being defined and is hence acceptable

  • In accordance with applicable laws, the obligations and agreement's subject matter

The following elements will also be taken into consideration by the courts when determining whether or not the contract is legal:

  • if each and every phrase is certain

  • if both parties are legally capable of concluding the agreement

  • If there is a proposal and it is accepted

Drafting of Commercial and Corporate Contracts

We are able to offer the most useful and economical guidance while making sure that all of your legal objectives and duties are satisfied because of our in depth comprehension and expertise of the legal and regulatory environment in the UAE.

With individualized advice, our experts and case managers provide a range of services relating to commercial contracts:

  • Independent or peer analysis of existing contracts

  • T&C analysis with respect to their terms and conditions

  • Recognising and rectifying breaches in existing contracts

  • Attesting of signed agreements

  • Legal structuring and drafting of contracts

  • Bespoke clause drafting

  • Business Plan development

  • Contract negotiations with all (other) parties

Because of our close working ties to several regulatory agencies, we are always up to date on new developments in important practice areas. We can therefore say that our team of experts is precise, relevant, usable, and reasonable.

Read More: Why & What is important in Bank Statement for Opening Business Account in UAE

Commercial Agencies Legislation

We provide advice on a broad range of commercial agreements that companies in the United Arab Emirates need for day to day operations, taking into account the nature of the business and numerous commercial and legal concerns. Additionally, we offer guidance on all facets of commercial agencies as well as matters pertaining to the regulation of commercial agencies.

We strive to completely protect your interests in a wide range of business contracts which have been enumerated below-

  • Distributorships, franchises, commercial agencies

  • Commercial real estate transactions

  • Real estate financing

  • Construction documents

  • Joint ventures

  • Asset acquisition

  • Corporate structures and restructuring

  • Marketing and sales agreements

  • Service and consulting agreements

  • Memorandums and Articles of Association

  • Shareholder and partnership agreements

  • Share purchase

  • Management and operating agreements

  • Employment contracts

  • Non disclosure agreements

Government Documents and Contracts

The Government of Dubai Legal Affairs Department frequently examines the contracts and agreements to which Dubai government entities are parties, both to protect their interests and to make sure that the agreements are in line with the laws that are now in effect.

Similar to this, authorities frequently examine court documents where their respective government authorities are parties in other emirates. It is crucial to make sure that such contracts are properly designed and thoroughly examined before submission.

  1. Customized agreements for challenging and high value instances or matters

  2. Contracts and other legal records pertaining to procurement

  3. IT agreements to which the government is a party

  4. Registration of trademark, intellectual property, and ownership agreements

  5. The agreements and contracts that affect government bodies financially or bring in monetary gain to the government


It is evident to say that there are a host of Documents and agreements which you need to get drafted so that you can be legally safe and sound and run your business peacefully in the UAE. you don't have to worry as our team of experts will provide you with the best guidance with regards to commercial and corporate contracts, your precious hard earned money can buy in the United Arab Emirates. Thus we hope this blog provided you with insightful information. For more information on other related aspects, feel free to check out our Website as well.