The 2025 Civil Transactions Law serves as the foundational legal framework for civil and commercial relations in the UAE. It establishes a hierarchy of legal sources, prioritizing statutory law, followed by Islamic Shari'ah, custom (Urf), and finally, principles of natural law and justice. The law emphasizes contractual freedom, the protection of good faith, and the regulation of legal capacity and property rights.
Main Provisions & Changes
Based on the provided text, the key provisions and shifts from previous legal standards include:
Hierarchy of Legal Sources: The law formalizes a clear sequence for judicial decision-making:
Statutory Text: Definitive indications in the law take precedence.
Islamic Shari'ah: Applied in the absence of legislation, focusing on public interest (Maslaha).
Custom (Urf): Applied if no Shari'ah ruling exists, provided it does not conflict with public order or morals.
Natural Law/Justice: The final resort.
Interpretation Principles: The law codifies specific Usul Al-Fiqh (jurisprudential) principles for interpreting texts, such as prioritizing literal meaning over metaphor, and ensuring that ambiguity in contracts is resolved in favor of the weaker party or the party bearing the obligation.
Protection Against Exploitation: A significant provision (Article 179) allows for the annulment or modification of contracts where one party exploits another’s need, recklessness, or lack of experience to create a "gross disparity" in obligations.
Adhesion Contracts: The law grants courts explicit authority to modify or strike out unfair conditions in adhesion contracts (standardized forms) to ensure justice (Article 223).
Temporal Application: The law clarifies that new provisions regarding the barring of claims (statute of limitations) apply to ongoing periods, while former provisions govern the commencement or suspension of such periods prior to the new law's enactment.
Public Order: The law explicitly defines "public order" to include definitive Shari'ah rulings, governance systems, and personal status matters (marriage, inheritance, lineage), ensuring these remain protected from conflicting private agreements.
Agency Requirements: Article 870 mandates a "special agency" for specific high-stakes acts (e.g., donations, sale, arbitration), distinguishing them from general management acts.