Breach of Contract- Arrangement Between Two or More Parties

BREACH OF CONTRACT
Name of the Student
Name of the University
Authors Note

Introduction
Many authors are of the view
that the main reason of making
a contract is to form an
arrangement between two or
more parties including
individuals, groups or companies
related to a particular subject.
This paper mainly focuses to
discuss a legal issue related to
Law of Contract in the United
Arab Emirates including the
elements of Offer, Acceptance
and Consideration.

Discussion
A contract is considered to be
an agreement which is made
between two or more parties
in order to form mutual
relationship that can be
imposed by law. According to ,
when an agreement is
supported by law it is
considered to be a contract.

Importance of Contract
Many authors state that it is
essential to understand the basic
concept and key elements of a
contract because contracts are
regarded as the heart of every
business transaction.
For example, while buying a loaf of
bread from any shop or
supermarket, people also enter into
a contract of sale.

Types of Contract
Usually three types of contracts are observed under the Contract Law of
UAE. The first of contract which is very common under this law is called
as Employment Contract. This contract is made between an employer and
an employee in order to form a mutual relationship. Employment contract
can also be divided into two categories, such as limited contract and fixed
term contract or unlimited contract (Haider et al., 2016).
Another type of contract which is very common in UAE is Construction or
building contract (Barrette, Brendel & El-Riachi, 2010).
The third type of contract is tenancy contract which is made between a
landlord and a tenant in order to safeguard the rights and interests of
both the parties (Khalfan & Haq, 2019).

Elements of
Contract
An agreement must include
the below mentioned elements
to be a lawful contract, such as
Offer, Acceptance and
Consideration.
Many authors state that these
elements are the heart of the
contract. Without these
elements a contract can never
become a lawful contract. In
order to enforce a contract,
these elements are necessary.

Offer and Acceptance
Sometimes, an offer can be termed
as a proposal. An operative offer
needs to be communicated explicitly.
The offer also needs to be absolute,
clear and clearly elaborates the vital
terms and conditions. It must have
the capacity to be accepted by the
offeree. Offer is not similar with
Invitation to treat (Partridge vs.
Crittenden [1968] 2 AII ER 421).
A valid offer turns into a binding
contract when it is accepted by the
offeree without any condition. An
acceptance must be unquestionable,
clear-cut and absolute. It needs to be
communicated between the offeror
and the offeree either orally, or in
written format or by performing
some specific activities.

Consideration
Payment or cash is
considered as an
indispensable
component of
contract law; it is a
benefit which must
be exchanged
between the parties
and is the key
reason for the
parties of a contract
(Tamimi, (2002).

Breach of Contract
If the parties of a contract failed
to perform their duties it is
called violation of a contractual
agreement. Not only that, if the
vital elements of a contract are
not present in the agreement it
becomes a void contract. The
Contract Law of UAE provides
remedy in order to maintain the
fairness between the parties by
paying compensation when a
contract has been violated.

Conclusion
Therefore, from the
above discussion it can
be concluded that, a
legitimate contract has
excessive importance in
the society. A lawful
contract helps to protect
the rights and interests
of the contractual parties
to an agreement.

Reference
Haider, S. H., Fatima, M., Asad, M., & Ala'A, Z. A. A. (2016). A study on the issues of
employment contracts and practices of employment contracts in UAE. Paradigms,
10(1), 58.
Tamimi, H. (2002). Interest under the UAE Law and as Applied by the Courts of Abu
Dhabi. Arab LQ, 17, 50.
Barrette, A. L., Brendel, N. R., & El-Riachi, W. (2010). The availability in the UAE of
liens to secure payment under construction contracts. Arab Law Quarterly,
24(3), 309-317.
Khalfan, M., & Haq, I. U. (2019). Tenants’ Satisfaction in Abu Dhabi (UAE): A survey.
Journal of Business, 14(1), 20-27.