What Is a Contract? A Simple Definition with Real-Life Examples

Contracts are part of everyday life in the UAE—whether you’re signing an employment agreement in Dubai, leasing an apartment in Abu Dhabi, or closing a deal for your business. But what exactly is a “contract” in legal terms, and why does it matter?

A contract, according to UAE law, is a mutual agreement between two or more parties to create legally enforceable rights and obligations. For a contract to be valid in the UAE, there must be a clear offer and acceptance, both parties must have the legal capacity to agree, and the contract must relate to a lawful subject matter. The intention to create a legal relationship is also essential, and both parties must act in good faith—a key principle in UAE contract law.​

Types of Contracts:

In the UAE, contracts can be written, oral, or even implied from actions. Written contracts, however, are strongly recommended—especially when dealing with significant transactions or future disputes. Examples include employment contracts, tenancy agreements, commercial transactions, and service agreements.​

Why Contracts Matter:

A well-drafted contract protects your rights, clarifies each party’s responsibilities, and helps prevent misunderstandings. If a dispute arises, your contract serves as the primary reference for resolving the issue in accordance with UAE law.

Your Next Step: Whether you are starting a business, hiring employees, or negotiating a lease, having a solid contract is essential to safeguarding your interests in the UAE. Nexus & Partners offers expert drafting, review, notarization, translation, and attestation of contracts—ensuring your agreements comply with UAE regulations. Contact Nexus & Partners Legal Consultancy today for reliable contract support throughout the UAE.