What is the Best Way to Avoid UAE Contract Disputes? These are the 4 Steps You Can Take Today.
When moving to the UAE, most people will want their contract disputes with a local lawyer. But before you make any decisions about legal representation, it’s essential to understand what a “contract dispute” is and how it can arise. We’ve taken the time to put together 4 best ways to avoid contract disputes that will help you solve problems down the line so that you can focus on getting settled in your new country.
Contract disputes are prevalent in today’s business world due to people coming to an agreement and breaking it.
This is due to circumstances like; improper planning at the outset of an agreement and the terms of the contract not being clear to the parties in great consent areas. These terms may include specifications of the contract offer by one party. The exchange of consideration may not be reasonably elaborated to both parties leading to a great rift because consideration is a significant factor as it means something of value.
The contract can also be illegal, thus causing the parties to fail in their terms and conditions due to the business’s risk.
The contract might have different errors and omissions, which causes one party to go against the agreement due to a misunderstanding of the concept. Some ill-defined and incomplete cost estimates lead to the budget going over the expected amount. The clients start losing their trust in the business as they consider their money was misused, which is a violation of the contract terms.
To avoid contract disputes, there are several factors that one has to consider, and these are:
- You should consult a lawyer.
Before coming into any contract, you should contact your business lawyer for legal consideration. The lawyer should check out the contract’s legitimacy, the precise terms, and interest in the matter. He should also predict the outcome of the agreement if the other side fails and how to deal with issues that may cause differences and need be taken to a case in court.
2. Write the contract
It’s imperative to draft a contract with the help of a lawyer. Some make unwritten contract agreements because they have very close ties or relationships with the person they have the deal with. This causes a lot of disputes as there is no evidence if such a dispute is taken to any legal process. By writing a draft, it will reflect the interest and the shortchanging of any deal.
3. Clarify the potential misinterpretation
Before signing any contract, you must read and understand it to avoid misinterpreting it. This will ensure that you have clearly understood the terms and checked if your area of interest has been considered. It enables both parties to be fully willing to work within the limits of the agreement. You must check if all the required personnel has agreed and signed their part as required by the deal. The deal should be in clear, readable language and not ambiguous as it is used as a guideline throughout the contract period.
It should also cover the area of compensation and cost in case of any unexpected cost or problem in the agreement period. Misinterpretation comes out clearly when the two parties have a different idea about the contract
4. Know your rights and responsibilities
It is essential to know the shared expectations of both parties and their responsibility in the contract. It’s necessary for avoiding the breach of terms of the agreement will not reflect that agreed bargain. A strategy should be built on one’s responsibility of how to solve disagreements if they arise. It saves time and money, and both parties’ relationship is not torn apart in a dispute.
The agreement should clearly define whether the obligations should be monetary in the services rendered and the services’ specifications should be provided. You should also consider if the contract protects each concern as per your responsibility.
You should set up some rules and regulations, which can be considered in order to end an early contract. This act is due to various reasons and circumstances that raise conflicts. Keeping records of your agreement such as phone calls, emails, payout sheets and invoices is essential to ensure that the contract process is a success. You should also ensure that they can be easily accessed. Budgeting for the project before you begin to work on it helps to estimate the necessary planning and prepare for unavoidable urgent situations.
This helps avoid cost and payment disputes that have been a great challenge to many agreements as money is often the root of most business arguments in Dubai or the United Arab Emirates.
Consideration is a primary term of the promised benefits derived by both parties in the agreement. One should have present consideration of services; these are the current benefits that come with the promise. An example is paying for a service that was delivered as per the contract. The consideration is a compensatory agreement that was made after benefiting from a service. You also put in mind the future considerations that are the benefit to both sides.
To be in a contract, you must consider terms and take keen note of things that will enable you to avoid contract disputes that have very adverse effects on both sides, including loss of money in business and the legal process and lack of trust among the parties. It would help if you took time to create clauses to make certain that this aspect will remain viable in the future. With this, you will be able to avoid commercial contract litigation of any kind.
After taking these steps, the parties will undergo a dispute resolution process wherein the forum, the place, the substantive law, and the procedural law are taken into consideration.
In conclusion, dispute resolution is enforceable, binding, and effective when it enables parties to sustain a working relationship.