The other side has not performed
Goods not delivered, services not provided, milestones missed. We identify whether the failure is a breach under the agreement and what remedy it opens.
Civil Law · Dubai & UAE
Contract Dispute Lawyer Dubai
The UAE’s civil code was replaced on 1 June 2026. If your dispute is being assessed against the old law, it is being assessed wrongly.
MBM acts for individuals and businesses in UAE contract disputes — breach, non-performance, termination, enforcement and interpretation — and in the compensation and damages claims that follow from them. We also draft and review contracts, which is where these problems are cheapest to solve.
The most significant change in decades
UAE civil law was rewritten this year
Federal Decree-Law No. 25 of 2025, Promulgating the Civil Transactions Law, took effect on 1 June 2026 and fully replaces the 1985 Civil Transactions Law. The foundation on which every UAE contract sits was replaced, and it happened months ago rather than years ago.
Reported changes include a codified duty of good faith in pre-contractual negotiations, revised civil-liability and damages provisions, and a reduction in the age of legal majority from 21 to 18. Separately, court procedure remains governed by Federal Decree-Law No. 42 of 2022, in force since 2 January 2023.
Because the civil law is this new, how it applies in practice is still developing. We treat it as an argument to be constructed carefully on the facts rather than a settled answer, and everything here is subject to applicable UAE law.
Primary sources
UAE Legislation — uaelegislation.gov.ae · DIFC Courts — difccourts.ae
Matters we handle
Contract disputes MBM is instructed on
Whether you are the party owed performance or the party accused of failing to give it, the analysis starts in the same place: the agreement, and what can be proved.
Performance was defective
Delivered, but not to the standard agreed. These claims turn on the specification and on what evidence of the shortfall exists.
You are accused of breaching
Being blamed is not the same as being liable. Frequently the other side has not performed its own obligations, or the clause relied on does not bear the meaning claimed.
You need to exit an agreement
Termination outside the contract’s own terms can convert you from the innocent party into the party in breach. The sequence and the notice matter.
You have been terminated wrongfully
Where an agreement has been ended without proper grounds or notice, there may be a claim for the loss that follows.
Damages and compensation
Loss caused by breach, negligence or a wrongful act. Where the claim is simply unpaid money, the faster route may be a payment order.
The parties read the clause differently
Genuine interpretation disputes are common and often resolvable without litigation once someone sets out the competing readings properly.
Something material was withheld
The 2026 Civil Transactions Law is reported to codify a duty of good faith in pre-contractual negotiations — a new avenue where information was concealed.
Before the dispute exists
Drafting, review and negotiation. The clauses that decide disputes are cheap to fix beforehand and expensive to argue afterwards.
What we do
How MBM runs a contract dispute
Assess, then escalate only as far as the matter needs.
Assess the contract and the evidence
We read the agreement against what happened and give you a written view of liability, remedy and realistic recoverable value — including where that value does not justify a claim.
Identify the correct forum
Court, arbitration or the DIFC. Establishing this before filing avoids a jurisdiction fight that decides nothing and costs months.
Serve notice under the agreement
Cure notices, default notices and termination notices, drafted so they achieve what is intended and do not create a liability of their own.
Quantify the damages claim
Loss has to be evidenced, not asserted. We build the quantum from the documents and tell you which parts of it are likely to survive challenge.
Negotiate or mediate
Most commercial disputes should settle. We negotiate from a prepared position, which is what makes settlement possible on reasonable terms.
Litigate or arbitrate, then enforce
Where the matter must be decided, we run it and then enforce the judgment or award.
What happens next
From first call to resolution
You will have a view on merits, quantum and cost before you decide whether to proceed.
Step 01
Free consultation
Tell us what was agreed, what went wrong and what you want. We will tell you whether the contract helps you.
Step 02
Contract & quantum review
We assess liability, identify the forum and quantify the loss, then set out the options and the likely cost in writing.
Step 03
Notice or negotiation
We serve the notice or open negotiations. A prepared position resolves more commercial disputes than a filed claim does.
Step 04
Proceedings and enforcement
Where it is needed, we bring or defend the claim in the correct forum, then enforce the outcome.
Before you call
What to have to hand
Contract claims are decided on documents. If there is no written agreement, say so at the outset — it changes the approach rather than ending it.
If you are about to send a termination notice, call first. Notices sent in the wrong sequence are one of the most common ways a strong position is lost.
- The contractSigned, with schedules, variations and any side agreement
- Purchase orders and invoicesEspecially if there is no signed agreement
- Proof of performanceDelivery notes, sign-offs, completion certificates, timesheets
- Evidence of your lossAccounts, replacement costs, lost contracts — whatever quantifies it
- Any notices exchangedCure, default or termination notices, from either side
- The correspondenceIn date order — this is often where the case actually is
Why MBM
Current on a law that is months old
A contract dispute assessed against the 1985 Civil Transactions Law is assessed against a law that no longer applies. That is a real risk right now, and it cuts both ways — it also creates arguments that did not exist last year.
- Litigation and arbitration in-house. Many commercial contracts point to arbitration. The team advising you is the team that would argue it.
- Forum discipline. We establish jurisdiction before filing, not after a challenge.
- Quantum taken seriously. Liability without evidenced loss is not a claim worth bringing, and we will tell you so.
- Drafting as well as disputes. The clauses that decide these matters are ones we also write.
17Years in practice as MBM Businessmen Services L.L.C.
90+Years of shared experience across the team
10Lawyers, litigation and arbitration capable
95%Win rate in high-stakes disputes, as published by the firm
Common questions
Contract disputes and damages, answered directly
General information on the current framework, not advice on your contract. Because the civil law changed in June 2026, older guidance found elsewhere may be out of date.
What happens if someone breaches a contract in the UAE?
The available remedies usually include requiring performance, terminating the contract, and claiming damages for loss caused by the breach. Which is appropriate depends on the contract’s own terms and on the civil law position.
Since 1 June 2026 that position is governed by Federal Decree-Law No. 25 of 2025, which replaced the 1985 law and is reported to include revised civil-liability and damages provisions.
How do I terminate a contract legally?
Start with the contract: most agreements set out termination rights, the notice required and any cure period for a breach.
Terminating outside those terms can turn you from the innocent party into the party in breach, so the sequence matters. Where the contract is silent or unclear, the civil law position applies and should be assessed before notice is given.
How do I claim compensation in the UAE?
A damages claim generally requires a breach or wrongful act, loss that flows from it, and evidence of that loss. Establishing the loss is usually the harder half: invoices, contracts, accounts and correspondence showing what would have happened but for the breach.
Federal Decree-Law No. 25 of 2025 is reported to have revised the civil-liability and damages provisions, so the current position should be checked rather than assumed from older guidance.
What changed in UAE contract law in 2026?
Federal Decree-Law No. 25 of 2025, Promulgating the Civil Transactions Law, took effect on 1 June 2026 and fully replaces the 1985 Civil Transactions Law — the foundation of UAE civil and contract law was rewritten.
Reported changes include a codified duty of good faith in pre-contractual negotiations, revised civil-liability and damages provisions, and a reduction in the age of legal majority from 21 to 18. Because the law is this recent, its application is still developing and should be confirmed against the legislation itself.
Does a duty of good faith apply before signing?
Federal Decree-Law No. 25 of 2025 is reported to codify a duty of good faith in pre-contractual negotiations. That may be relevant where a party withheld material information or negotiated without genuine intention to conclude the agreement.
How far it goes is still developing, and any argument on it should be made carefully on the facts.
There is no written contract. Do I still have a claim?
A claim may still exist, but it becomes an evidential exercise: purchase orders, invoices, delivery records, payment history and correspondence are used to establish what was agreed.
It is harder and less predictable than a written contract, which is why the first assessment focuses on what can actually be proved.
Court or arbitration?
Usually the contract decides. Many commercial agreements contain an arbitration clause, and some point to the DIFC Courts, whose Small Claims Tribunal hears claims up to AED 500,000 and up to AED 1,000,000 where the parties agree.
Identifying the correct forum before filing avoids a jurisdiction fight that costs time and money and decides nothing.
Is it worth pursuing?
That depends on the strength of the evidence, the recoverable loss, the counterparty’s ability to pay, and the cost of the route required.
We give a view on all four at the first consultation — including where the honest answer is that the claim is not commercially worth bringing.
Free consultation
Tell us about the contract
Tell us briefly about your matter. Our team will review your enquiry and advise you on the appropriate next step. Everything you send is treated as confidential.
If you are about to serve or have just received a termination notice, please call.
- +971 4 570 0204Dubai office · Monday to Friday, 08:00–17:00
- WhatsApp +971 54 596 1111Send the agreement if that is quicker
- info@mbm-co.comAttach the contract, notices and correspondence
Practice area: Civil Law
Jurisdiction: Dubai & UAE
Last reviewed: September 2026
Thank you — your enquiry is with our team.
A member of the MBM team will review what you have sent and come back to you with the appropriate next step.
If your matter is time-critical, please call +971 4 570 0204 rather than waiting.
A contract is only worth what you can enforce.
Send us the agreement and the correspondence. We will tell you what it is worth, in which forum, and whether it is worth pursuing. The first consultation is free.