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Which act governs specific performance for breaches of real estate management agreements?

Dear Lawyers,

I want to know which particular act addresses specific performance in the case of a breach of contract regarding a real estate service management agreement.

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Mohamed Bakheet Advocates & Legal Consultants
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22 Oct 2024, 08:06

Dear Questioner,

In UAE law, the issue of specific performance (or specific performance) in the event of a breach of contract is addressed under the UAE Civil Code.

Specific performance means forcing the party who has breached the contract to perform its obligations specified in the contract instead of merely receiving financial compensation.

Here are some articles of the UAE Civil Code that address this issue:

1. Article 386 of the UAE Civil Code:

This article states that if the debtor fails to perform his contractual obligations, the creditor may claim specific performance (specific performance) if this is legally and practically possible.

If specific performance is not possible, financial compensation is resorted to.

2. Article 380 of the UAE Civil Code:

This article states that compensation is due if the debtor fails to perform his obligations. However, if the obligation can be performed in kind, the court may order specific performance instead of financial compensation.

That is, in the event of a breach of contract, the injured party may claim performance of the contract as stipulated (specific performance) if this is possible.

3. Article 287 of the UAE Civil Code:

This article deals with the so-called force majeure or circumstances beyond the control of the parties, which may make specific performance impossible.

If there is a force majeure that makes the performance of the contract impossible, the debtor cannot be forced to perform in kind.

4. Article 390 of the UAE Civil Code:

This article concerns the previously agreed compensation (penalty clause) in the event of a breach of contract. However, the court allows the compensation to be modified if specific performance is possible.

In short:

If a breach of contract occurs in the UAE, the injured party can claim specific performance (specific performance) under the UAE Civil Code, specifically Articles 386 and 380.

However, if specific performance is not possible (due to practical or legal circumstances), financial compensation is the alternative.

Therefore, if you wish to resort to specific performance instead of financial compensation in the event of a breach of contract, you must submit a request to the court, which will assess the possibility of implementation.

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KHE Legal Consultancy
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22 Oct 2024, 11:01

Hello,

Specific performance in cases of breach of contract is primarily governed by the UAE Civil Code, particularly Article 272.

This article allows a party to request specific performance of a contractual obligation unless the performance is impossible or the obligation has become ineffective for any reason.

For further assistance, kindly share your WhatsApp number.

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