slideshow

Effects of Contract on a Third Party in the UAE

Posted on 4th April 2010 by Camille Paldi,

 

The Civil Transactions Law, Federal Law No. 5 of 1985

Article 250:

The effect of a contract shall apply to a contracting parties and universal successors without prejudice to the rules of inheritance unless it appears from the contract or from the nature of a transaction or from the provisions of the law that such an effect does not apply to universal successors.

Article 251:

If a contract creates private rights relating to an item whose title passes thereafter to a single successor, such rights shall pass to said successor at the time when the title to such a thing is transferred if they are an inseparable part thereof, provided, and the single successor is aware of them at the time when the title to said item has been transferred to him.

Article 252:

A contract shall not impose an obligation upon a third party but may create a right in his favor.

Article 253:

  1. If a person undertakes to bind a third party to do something he shall not bind such third party to accept his undertaking; however, if the third party refuses to be under obligation, the undertaking person must compensate the party with whom he has entered into contract.
  2. However if a third party accepts such an undertaking, his acceptance shall not produce an effect except from the time it has been made unless he intends explicitly or impliedly to make such an acceptance effective as of the date on which the undertaking is made.

 

Article 254:

  1. A person may, in his name, stipulate in a contract rights for the benefit of a third party if he has a material or moral interest in performing them.
  2. As a result of such a stipulation, the third party shall acquire a direct right against the person who undertakes to perform the stipulation and can raise a claim against him for discharge thereof unless it is agreed otherwise however the undertaker may plead for exceptions arising from the contract against the beneficiary.
  3. The stipulator may also demand that the undertaker perform what has been stipulated for the benefit of the beneficiary unless it becomes clear from the contract that the beneficiary alone has the right to make such a demand.

 

Article 255:

  1. A stipulator may revoke the stipulation against his creditor or heirs before a beneficiary notifies the undertaker or stipulator of his desire to benefit therefrom, unless it is contrary to the provisions of the contract.
  2. Revocation of a stipulation shall not result in discharging the undertaker of his obligation towards the stipulator unless it is agreed explicitly or impliedly to the contrary.  A stipulator may replace one usufructuary with another and may have the right to inure solely from the benefit of the stipulation.

 

Article 256:

Where a stipulation is made in favor of a third party; a usufructuary may be a future person or future authority, and may be a person or an authority not appointed at the time of contract since their appointment can be made at any time the contract produces its effect according to the terms of stipulation.


Posted on 4th April 2010 by Camille Paldi


Comment on this post







Twitter

    • 10th February @camille paldi
    • The Business Daily by FAAIF is out! https://t.co/H7O18TYUYU
    • 10th February @camille paldi
    • The Inter-faith Daily is out! https://t.co/Zq903PZpSS
    • 10th February @camille paldi
    • The Islamic Finance Daily is out! https://t.co/g32U2tFRpZ Stories via @sharingrisk @LankaBreaking @TimeQuran
    • 10th February @camille paldi
    • The Halal Daily is out! https://t.co/MtHHddtYfT Stories via @AdnanHalawi @HIDALGOFRANCIA @ZhaboomCanada
    • 10th February @camille paldi
    • Join Upcoming FAAIF Events! https://t.co/e2UIPYWKag
    • 9th February @camille paldi
    • Justice https://t.co/84voO7e7T7
    • 9th February @camille paldi
    • Register for Islamic Banking and Finance, Kanazawa, Japan! camille@faaif.com. https://t.co/pbbO0ybu2S
    • 9th February @camille paldi
    • https://t.co/tx87MYUrSu
    • 9th February @camille paldi
    • The Business Daily by FAAIF is out! https://t.co/Aqf79pboLn
    • 9th February @camille paldi
    • The Inter-faith Daily is out! https://t.co/gsz8jM6qpH Stories via @janak_pandit
    • 9th February @camille paldi
    • The Islamic Finance Daily is out! https://t.co/RovND48pqP Stories via @HalalOptions
    • 9th February @camille paldi
    • The Islamic Finance Daily is out! https://t.co/2DOcMUbjQH Stories via @TheodoreSanner @meglobaladvisor @07Masbro
    • 9th February @camille paldi
    • The Halal Daily is out! https://t.co/9HTUyaMp9b Stories via @andreisy @lc_halal @zrdzmrz
    • 8th February @camille paldi
    • "Book Review for Islamic Banking: Theory and Practice (2012) by *Dr. Muhammad Hanif" by @cpaldi on @LinkedIn https://t.co/l49FHyUGFb
    • 8th February @camille paldi
    • Register for Islamic Banking and Finance, Kanazawa, Japan! camille@faaif.com. https://t.co/xfBnOyX2me
    • 8th February @camille paldi
    • Register for Islamic Finance and Banking Tokyo, Japan! camille@faaif.com. https://t.co/61GiZ6DkV3
    • 8th February @camille paldi
    • Register for Islamic Finance and Banking, Seoul, Korea! https://t.co/jUAKrAcdyN
    • 8th February @camille paldi
    • The Business Daily by FAAIF is out! https://t.co/4eJgHJTfgl
    • 8th February @camille paldi
    • The Inter-faith Daily is out! https://t.co/gmVMWdwKo5 Stories via @jatuski @RodillaD
    • 8th February @camille paldi
    • The Islamic Finance Daily is out! https://t.co/dUkx3cQsRp Stories via @iomba @ShariyahReview @Eye_on_Somalia

Articles

Islamic Finance, Opportunities, and Challenges

Islamic Finance, Opportunities, and Challenges

Islamic Finance – Opportunities and Challenges

By Mufti Ismail Ebrahim Desai

The Islamic Financial system has witnessed considerable developments in the past four decades and is now regarded as one of the fastest growing segment of the g...

Posted on 19th January 2016 by Mufti Ismail Ebrahim Desai

Book Review for Islamic Banking: Theory and Practice (2012) by *Dr. Muhammad Hanif

Book Review for Islamic Banking: Theory and Practice (2012) by *Dr. Muhammad Hanif

Book Review for Islamic Banking: Theory and Practice (2012) by *Dr. Muhammad Hanif

 

By: Camille Paldi

 

This textbook is a masterpiece on Islamic Banking combining financial th...

Posted on 21st December 2015 by Camille Paldi

Economic Efficiency of Islamic Financial Institutions Part II

Section 4         Alternative Policy Options and Steps

 4.1      Proper Risk Management: A Necessity Posted on 13th December 2015 by Muhammad Ayub and Camille Silla Paldi

Economic Efficiency of Islamic Financial Institutions Part I

Economic Efficiency of Islamic Financial Institutions Part I

Tense Dichotomy between Shari’ah Compliance and the

Economic Goals of Islamic Finance Institutions

Muhammad Ayub and Camille Silla Paldi

Video

Find all our videos here, and also a link to our YouTube video channel so you can view our 'video of the week'

Submit

We would like you to get involved with our site. So if you want to submit Articles, Videos, Events and Call for Papers, please click the button below:

Submit

Valid XHTML 1.1 |  Valid CSS |  Web Design in Durham and Newcastle |  Copyright © 2016

* Prices are converted at USD$0.2723 per AED 1