In the United Arab Emirates, most contracts contain the termination clause for convenience, usually unrestricted, although a tax may apply for early termination. The party has the right to terminate the contract at some point. He may be with or without notice or without review of the evidence that a particular breach of the terms of the contract has occurred. Given the current industry scenario and market conditions, there are commercial reasons why the contract is terminated and why the party receiving the notification feels concerned. To this end, “full agreement clauses” are often used, for example.B. “This agreement, along with all the other documents covered in this agreement, constitutes the whole and unique agreement between the parties… And non-trust clauses that recognize that the parties did not rely on insurance outside the contract. The aim is to limit the rights to the subjects enshrined in the treaty. However, for these clauses to be effective, they must be carefully developed. Therefore, the party who terminated the contract for accommodation reasons should, prior to the application of the contract, consider a possible defect in the work attributed to the other party in the contract.
If a defect is obvious, the party must make a communication in which it expresses the possibility of correcting the defect for compensation of the repair costs. The party must give a valid and essential reason for this failure, as it will still be difficult to prove the basis of the information in court. However, it is essential that the innocent party do nothing to compromise the right to vote, either by waiting too long to decide how it should react, or by losing the right to vote because of inconsistent behaviour. In practice, this area can be fraught with difficulties, because while the innocent party decides how the treaty should be treated, it risks a stage that constitutes an election to confirm it and, once a confirmation has been made, it cannot be revoked.16 UAE law requires strict respect for good faith when the contract is terminated. There is uncertainty about the unilateral termination of contracts in the United Arab Emirates. Termination rights may arise in other contexts that arise from the surrounding circumstances. If, for example.B. the circumstances are such that a party cannot fulfill its end of good business (because a necessary part of its benefit is not to be received or found now), the doctrine of impossibility could apply. If one party adopts an act that essentially indicates to the other party that an offence will occur, the other party can terminate the contract and take immediate legal action. However, termination solely on the basis of a common law right may constitute a violation of the party itself if the common law offence is not considered contradictory. If the misrepresentation led the agent to enter into the contract, but if the misrepresentation was not embodied as a contractual clause, the disputed remedy is termination of the contract.23 If the agent decides to exercise his right of withdrawal, the contract is treated retroactively as a nullity.
This means that the benefit will be cancelled, all rights and obligations will be removed, the parties` pre-contract position will be restored and the agreement will be treated as if it had never existed.