The contract is a binding agreement between two parties that is signed on a mutual agreement from both sides. It has certain legal obligations and is secured by the rule of law. When you have a contract with clients, both parties have protection. However, when a client tries to not honor the agreement that you both have, there arise some serious complexities. There are a couple of questions you may have when you experience a breach of contract with a client. Here are some of the common ones:
- What happens when a provision in a contract has not been followed?
- What if a breach of contract can benefit a client?
- Will it make a difference when I bring the case to the local court?
This article consists of a quick guide on breaches of contract in UAE, the most common types, and what you should do when you experience a contract breach. A contract in UAE is seen as an agreement between signatories and the agreement is enforceable and legal in the eyes of the law. Take it as an example that you whipped up an agreement with a client to start providing personal training sessions. The client, in the agreement, promises to pay a certain amount of money for personal training. You nail the details down and both parties to the agreement understand the terms. This is when a contract is established. Then the agreement is secured by some legal status that gives your agreement legal authority. This makes it clear that the contract involves the legal authorities and both the parties and legal consultants are answerable to the law.
What are the types of Breach of Contract in the UAE?
It is important to note that there are different kinds of contract breach. They are considered a breach when there is a violation in the contractual obligation of a party without an excusable reason.
Material Breach
A material breach happens when a party fails in performing its duties as laid upon in the agreement. The material breach results in the non-breaching party getting something substantially different from what’s agreed earlier. With a material breach, performance from the non-breaching party will not be required. A material breach of the contract in the UAE would occur if you have agreed to design for your client a workout plan, but you have sent the same client with a meal plan rather than a workout plan.
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Minor Breach
Despite some variation with the agreement, minor breaches occur when a party receives what’s agreed in the agreement. With a minor breach, a non-breaching party still has to perform its obligations legally. An example is when you forgot to give the shopping list together with the exercise and meal plan which you have already agreed upon. The same is the case with the minor breach of the contract.
How will the Court Decide if a Breach is Minor or Material?
When you sue a client or a client sues you for breach of contract in UAE, the local court will be deciding the type of breach that occurred based on several different factors.
They are as follows:
- The extent to which injured party is deprived of the benefit which was reasonably expected.
- The extent to which party that failed in performing or to offer in performing will suffer the forfeiture.
- The extent to which injured party will be compensated adequately for the benefit in which he’ll be deprived of.
- The extent to which behavior of a party that failed to perform or offer to perform are within standards of operating in good faith.
Will a Court Ruling Be Required for All Breach of Contract?
It can be in the best interests of parties involved to settle things without the involvement of the local courts. More often than not, a breach of contract in the UAE can be settled with the help of mediators or arbitrators. A breach of contract in the UAE has the possibility of merely being a misunderstanding. Professional communication with the aid of seasoned lawyers and legal consultants in the UAE can quickly diffuse a situation. Thus, it is advised to take legal help when you find yourself in such a complex situation.