A Contract Does Not End Merely Because One Party Wants It To
Commercial dissatisfaction or changed circumstances do not automatically create a termination right. The contract and the applicable UAE legal framework must be reviewed.
Mutual Agreement
Where both parties agree, a written termination and settlement agreement can address outstanding payments, surviving obligations, releases and the return of documents or property.
Contractual and Judicial Termination
Depending on the wording and circumstances, a breach may not always cause automatic termination. The parties should specify the notice process, cure periods and whether court intervention is intended or may be required.
Operation of Law
Certain contracts may end because of legal events or rules applicable to their subject matter, independently of an express termination notice.
Good Faith
Good-faith obligations remain relevant while parties perform, suspend or seek to terminate a contract. Communications and conduct during this stage may later become important evidence.
Drafting Lesson
Termination clauses should identify grounds, notice requirements, cure rights, effective dates, consequences and obligations that survive termination.