UAE Companies Face Mainland-Free Zones Dispute
The article discusses the issue of force majeure in commercial contracts executed in the UAE, explaining how to determine whether a crisis qualifies as a force majeure event that justifies non-compliance or delay in performance. It clarifies that the governing law of the contract is the primary factor in applying the concept of force majeure, with its application differing between the mainland and free zones based on the adopted legal system. The article also highlights that the conditions for force majeure require an unexpected external event that is impossible to foresee, and that it must be difficult or impossible to fulfill the obligation without the fault of the affected party. Practical procedures for companies include steps such as identifying the applicable law, assessing the nature of the event, documenting evidence, providing prior notice, and negotiating with the involved parties. Emphasis is placed on the importance of establishing a causal relationship and complying with legal procedures. Ultimately, the article stresses that understanding and documenting the conditions for force majeure help prevent disputes and enhance the chances of legal recovery, especially amidst increasing disruptions in supply chains and energy markets.
Notice: This Is an AI-Generated Summary
Comments (0)