The recent amendments to commercial contract law UAE, known as the “New Law,” have ushered in a new era by embracing modern technology, addressing virtual assets, and revising interest rates.
In this article, we will explore the significant changes brought about by the New Law and introduce you to the best legal expert for navigating the complexities of commercial contract law in the UAE 2023.
Table of Contents
New Commercial Contract Law UAE.
Traditional vs. Technological Means: One of the pivotal changes in the New Law is the shift from traditional to technological means of conducting commercial activities.
Now, commercial contracts can be formed or concluded through technology, including online platforms and blockchain.
This adaptation reflects the recognition of electronic contracts and transactions, allowing businesses to operate more efficiently in the digital age.
Recordkeeping: Additionally, the New Law permits traders, including financial institutions, to maintain hard or soft copies of their books and records.
This flexibility aligns with modern business practices and streamlines record management.
Evolving Cheque Presentation.
Modernized Cheque Handling: The New Law allows the presentation of cheques to a bank and the reserving of cheque amounts through various methods, including modern technology.
This move enhances the efficiency and convenience of financial transactions, reducing administrative burdens.
Embracing Virtual Assets.
Expanding Regulatory Scope: A noteworthy change is the inclusion of virtual asset businesses within the purview of the Commercial Code.
This extension means virtual asset providers must adhere to contractual requirements and recordkeeping obligations similar to traditional traders.
These regulations complement those established by other regulatory bodies, such as the UAE Central Bank and the Securities and Commodities Authority.
Interest Rate Revisions
Contractual Interest: The New Law affirms that interest rates shall be determined by contractual agreement between parties.
However, it’s crucial to note that the cap on legal interest, which courts can award in disputes, has been reduced from 12% to 9%.
This reduction aligns with recent court decisions that have awarded legal interest rates of 5% up to full debt payment.
Prohibition of Compounded Interest: The New Law explicitly prohibits compounded interest.
This prohibition reinforces the Banking Law’s provisions against charging compounded interest, offering greater protection to borrowers.
FAQs about commercial contract law UAE.
Conclusion: Trust the Best in Commercial Contract Law in the UAE.
Navigating the intricacies of commercial contract law in the UAE, especially in light of the New Law’s transformative changes, requires expertise and insight.
Al Mulla Lawyer & Legal Consultant is the best choice for handling commercial contract law cases in the UAE.
With a deep understanding of the New Law’s implications and a commitment to delivering tailored legal solutions, Al Mulla ensures that businesses and individuals can adapt and thrive in this evolving legal landscape.
Embrace the future of commercial contract law with confidence, guided by the expertise of Al Mulla.
Learn about the best Commercial Contracts Lawyer in Dubai.