COMMERCIAL LAW

The Federal Commercial Code has been in effect since 1993 and is a wide ranging law, which directly affects every commercial organization conducting business in the UAE.

The Commercial Code covers such matters as the regulation of commercial activities, including preparation of commercial contracts, and obligations and assumptions that will apply in the absence of express agreement to the contrary. The Code is also relevant to such things as the sale of business assets, registration of mortgages, carriage of goods and persons (including liabilities attaching to carriers and agents), agency and commercial representatives, banking operations, commercial pledges and guarantees, bills of exchange and cheques, and business insolvency.

There are pitfalls for the unwary but also important and useful provisions, which can be taken advantage of by those who structure their business arrangements appropriately.