Limitation of liability clauses - can they always be enforced?
Obligations and liabilities under UAE law arise out of contracts, unilateral acts, acts causing harm (torts), acts conferring benefits and the law itself. Many individuals and corporations frequently use and rely on limitation of liability clauses in all types of contracts in the United Arab Emirates and other jurisdictions without any consideration of the actual validity or enforceability of such clauses.
Contractual liability in the United Arab Emirates may arise only where valid contracts (including oral contracts) exist between the liable party and the party that has sustained the damages. In addition, the liable party must have violated one or more of its obligations under the contract and as a result of this violation, there must be a harm caused to the other party.
Lawyers Mojahed Al Sebae
This article was written by Mojahed Al-Sebae and first appeared in International Law Office.
