Reasons set by the law to terminate a sale and purchase agreement

Dear Questioner,

Yes, a Sale and Purchase Agreement can be terminated in the UAE.

There can be a million reasons due to which either party can claim for termination of the agreement; however, what is important is to understand or comprehend whether such a reason will hold any validity before the court's eyes.

Some of the most common disputes between a buyer and a seller of property are non-performance, delay in the handover, failure of payments, mistake, fraud or misrepresentation, or force majeure.

As per Article 272 of the UAE Civil Code:

(1) In contracts binding on both parties, if one of the parties does not do what he is obliged to do under the contract, the other party may, after giving notice to the obligor, require that the contract be performed or cancelled.

(2) The judge may order the obligor to perform the contract forthwith or may defer (performance) to a specified time, and he may also order that the contract be cancelled and compensation paid in any case if appropriate.

Further, we need to review the SPA to advise you appropriately.

You can send us a copy of the SPA at our email so that we can review the same and advise you properly.

Regards,

Sunil