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Ali Saeed Al Shamsi

Corporate & Contract Law

Framework Agreements in the UAE: Supply and Repeat Transactions

Framework Agreements in the UAE: Supply and Repeat Transactions

The new Civil Transactions Law recognises framework agreements used to set general rules for repeated or long-term transactions. Distinguish the framework from later purchase orders and identify when a binding obligation arises.

Define the ordering mechanism, prices or pricing formula, priority between documents, delivery dates, conformity standards, variation process, termination and dispute resolution. Check the authority of the people issuing and accepting orders.

A general price list does not necessarily create a minimum-purchase obligation. If a buyer stops placing orders, review the actual commitment before calculating any alleged loss.

Federal Decree-Law No. 25 of 2025 entered into force on 1 June 2026. Check the dates, applicable special legislation and temporal rules for the particular case.

Official sources

Civil Transactions Law | Official explanation of the reforms

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