The Essential Elements of a Valid Contract

Understanding what makes a contract valid is crucial for both individuals and businesses in the UAE. If any of the key elements are missing, a contract may not be legally enforceable—putting you or your company at risk.

1. Offer and Acceptance:

Every contract starts with a clear offer from one party and unconditional acceptance from the other. Both must be communicated clearly, and any change to the offer creates a new negotiation, not a contract.​

2. Capacity:

The parties involved must have the legal capacity to enter into a contract. This means being of legal age (18 or above in most cases), mentally competent, and not restricted by law.​

3. Lawful Purpose:

The contract must serve a lawful purpose. Any agreement to do something illegal under UAE law is automatically void.​

4. Consideration:

All parties should exchange something of value, such as goods, money, or services. This “consideration” forms the foundation of enforceable contracts in the UAE.​

5. Certainty and Clarity:

Contracts must have clear, specific terms regarding what each party must do. Ambiguity can lead to disputes or make the contract unenforceable.​

6. Consent:

Both parties must genuinely agree to the contract. Consent must be freely given—if fraud, duress, or misrepresentation is involved, the contract can be challenged.​

Why it matters:

Missing any of these essentials can make your agreement void or unenforceable in a UAE court. For important agreements—like business contracts, leases, or service deals—professional legal drafting and review are highly recommended.

How Nexus & Partners can help:

Nexus & Partners assists with legally sound contract drafting, review, notary, translation, and attestation—helping businesses and individuals throughout the UAE build enforceable agreements.

Contact Nexus & Partners Legal Consultancy today for expert contract solutions in the UAE.