Side Agreements in Dubai: What You Need to Know

Dubai is a hub for business, with numerous companies operating within the Emirate. As such, it`s common for businesses to enter into side agreements to supplement their main contracts. Side agreements are essentially additional agreements between parties that provide additional terms or clarification on specific aspects of the main agreement.

In Dubai, side agreements can be legally binding and enforceable, provided they meet certain conditions. It`s essential to know the necessary requirements to ensure that your side agreement is valid and enforceable.

Here are some essential things you need to know about side agreements in Dubai:

1. The side agreement must be in writing

For a side agreement to be enforceable, it must be in writing. A written agreement helps to avoid disputes, as parties can easily refer to the terms of the agreement in case of a misunderstanding.

2. The side agreement must not contradict the main contract

The side agreement should not contradict the main contract. It should be supplemental and clarify the terms of the main agreement. If the side agreement contradicts the main agreement, it may be deemed unenforceable.

3. Both parties must sign the side agreement

A side agreement is only enforceable if both parties have signed it. The parties must have the legal capacity to sign the contract, and the agreement must be executed in the presence of witnesses.

4. The side agreement must be entered into for a lawful purpose

The side agreement must be entered into for a lawful purpose. If the purpose of the agreement is illegal, the agreement will not be enforceable.

5. The side agreement must not affect the rights of third parties

A side agreement should not affect the rights of third parties who are not party to the contract. It should only be valid between the parties who have signed it.

6. The side agreement must be registered with the relevant authorities

Certain side agreements, such as those involving property, must be registered with the relevant authorities to be enforceable. Failure to register the agreement may result in it being deemed unenforceable.

In conclusion, side agreements can be an important tool for businesses in Dubai, but they must meet certain conditions to be valid and enforceable. As a business owner, it`s essential to know the requirements for side agreements to ensure that your agreements are legally binding and offer the protection that you need. By following the guidelines above, you can enter into a side agreement that is legally enforceable and offers you the additional terms and protection you need.