Sample Essay on UAE Commercial Law

UAE Commercial Law


The business my friend and I have decided to venture into is a partnership that will deal in the buying and selling of automobiles. The Company shall be called Purle Cars. The main reason behind the selection of such a business venture is the huge amount of profits involved whenever there is a sale of an automobile. The revenues realized from the mark up of one car is substantial, and thus a profitable business venture. The frequency of car sales is also scintillating, which guarantees an ever flowing cash cycle in the business.

Memorandum of Association

The Name of the Company is Purle Cars, whose registered office will be situated in Abu Dhabi. The object of Purle Cars as established is to carry business with within the terms of the License given with respect to the sale of motor vehicles. The shareholders of Purle Cars shall consist of persons not less than two, and not exceeding five. The share capital of Purle Cars will be Dhs 1,000,000 divided into shares of Dhs. 100,000 each, issued when the capital there of is fully paid. All the shares dished out shall be of the same category. Any provisions made herein are subject to modification, variance, amendments, changes or substitutions at any time deemed necessary by the shareholders (Jumada, 1984).

Policies for formation and breach of contract

Buyers shall pay for the products by paying for all invoiced amounts in Dirham within thirty days of contract agreement. For shipment, that does not involve export, Purle Cars shall deliver the products to the buyers. For export shipments, the buyer shall pay for all delivery costs, or pay the company up to 25% of the charges incurred if the company does export on behalf of the client. Discretion will be strictly maintained.

In case of a breach of contract, UAE Civil code provides for compensation for the breach of contract, even in cases where the law does not make available for such compensation. The party shall pay the company damages in an amount equivalent to the damages suffered due to counterparty to a contract. The contract becomes negated the instant there is a breach of contract (Terblanche, 2008).

Duties towards an employee on termination or resignation

Purle Cars shall ensure that there is precise calculation of an employee’s final paycheck, in case of resignation. The company will settle any disputes that arise from an employee’s last check, like billing for extra hours. Purle Cars shall also explain to an employee reasons for termination, and expound on why their actions guarantee a fair dismissal. The company shall explain to the employee the status of their benefits from the company, like group health insurance. Corrections are made should any issues arise, if at all they feel like they should quit the cover or be party to it (Latham & Watkins, 2011).

Warranties and Safety Information

The company will provide warranties for up to one year, with after sale service for up to 15,000kms. If the products are sub-standard, the client should notify us within one year of warranty for the necessary steps to be taken to correct the mishap. Any modifications made to our products make the warranty null and invalid. The company will not be accountable for standard wear and tear of the products. They are secure, and no liabilities shall be extended to Purle Cars should the owners use them as they are not designed to.

Importance and role of UAE Intellectual property law

The UAE intellectual property laws play an important role with reference to Purle Cars. The trademark is protected from infringement by other businessmen and thus keeps exploitation at arm’s lengths. The UAE intellectual laws are strict to ensure that no one copies our company name and logo, and thus no party can lay claims of a neither similar name nor company status. Infringement attracts heavy fines and imprisonment.


Jumada Al Akher (1984), Concerning Commercial Companies.

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Latham & Watkins LLP (Jan 2011). Doing Business in the United Arab Emirates.

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Terblanche, P. (April 2008). Company and commercial- United Arab Emirates.

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