Breach of Contract Claims in the UAE: Your Legal Options

Most business in the UAE runs on clear agreements, written to protect both sides and keep projects moving. Yet even with signed terms in place, things don’t always go as planned. A contractor might walk off site before the job is done, a buyer might hold back payment, or a supplier might fail to deliver what was promised. When that happens, legal action is often the next step, but whether you can sue depends on the terms and the remedies recognised under law.

This article looks at what counts as a breach, how claims are made, and the options available if you’re affected.

What counts as a breach of contract
For a contract to be enforceable in the UAE, it has to show clear obligations on both sides, agreement given freely, and something of value exchanged. In some cases an oral deal can be relied on, but written contracts carry far more weight, particularly if notarisation or registration is required, as in property or commercial agency agreements.

A breach arises when one side doesn’t do what they promised. That could mean a contractor leaving work unfinished, a landlord failing to hand over possession, or a buyer refusing to release payment. In construction or property disputes even small lapses, like late certification or partial delivery, often spark claims.

Courts also distinguish between breaches that are minor and those that strike at the core of the deal. A short delay that causes no loss might not justify termination, but withholding payment on a property sale almost certainly would. The degree of seriousness shapes whether the remedy is damages, enforcement, or cancellation.

Proving a breach
In the UAE, the burden of proof falls squarely on the party bringing the claim. Judges won’t assume a breach occurred unless it’s backed by evidence. The first step is the contract itself. A signed document usually carries weight, and in areas like property sales or agency arrangements, courts often expect it to have been registered or notarised.

That document is rarely enough on its own. Courts look at the paper trail to see whether obligations were met. This might include invoices, bank statements, delivery notes, inspection reports, or email correspondence. In employment disputes, payslips and records held by the Ministry of Human Resources are often decisive. In construction, project schedules, site logs, and consultant approvals can tip the balance.

It isn’t only about proving the breach took place, but also showing it caused loss. A missed payment that delayed a project is easier to link to financial harm than a minor delay that had no impact. Courts pay close attention to that link between the failure and the damage claimed, and it often dictates the size of any award.

Remedies available
When a court in the UAE finds a breach, it has several ways to put things right. The most common is an award of damages. This is meant to cover the loss caused by the breach, whether that’s the cost of hiring another contractor, rent lost because a tenant walked away, or profits missed because goods were never delivered. Judges look for hard numbers to back up claims, so invoices, expert valuations, or audited accounts usually form the basis of any award.

Sometimes money isn’t enough. In property disputes, for example, courts often order specific performance. If a seller takes payment but refuses to transfer title, the judge can compel them to complete the sale. The same principle applies in construction cases where unfinished work can be ordered to continue under the original terms.

Injunctions are also possible, though less common. These tend to arise when urgent action is needed, such as stopping the misuse of trade secrets or halting building works carried out without consent.

Finally, where the breach undermines the entire deal, the contract can be brought to an end. Termination or rescission allows both sides to step away, and in some cases restore what was exchanged.

Practical considerations before suing
Before filing a claim, it’s important to look closely at what the contract itself says about disputes. Many UAE agreements include clauses that push parties toward arbitration rather than the local courts. If arbitration is named, judges will usually decline jurisdiction until that process has been tried. The same applies if the contract requires mediation as a first step.

Limitation periods are another trap. Commercial claims can often be brought for up to 10 years, but employment disputes and some specialist cases have much shorter deadlines. Missing the cut-off date can mean losing the right to sue entirely.

Cost also weighs heavily. Court fees in the UAE are calculated as a percentage of the claim value and can be high. Add in expert reports and legal costs, and smaller disputes may quickly become uneconomical. This is why many businesses attempt settlement first. Negotiation or mediation can save both time and money, and in cases where the parties still need to work together, they often preserve relationships that court proceedings would damage.

Taking the time to weigh up these factors usually shapes whether a case is worth pursuing in court, through arbitration, or settled across the table.