Commercial Transactions Law · Federal Decree-Law 50 of 2022
Article 107
Book Two: Commercial Obligations and Contracts > Part Two: Commercial Sale > Chapter One: General Provisions
English translation
1. If, after the delivery of the sold item, it is found that the quantity or type of the goods delivered is different from that agreed or if the goods are defective, the buyer may not apply for rescission of the contract unless the difference is so great as to render the goods delivered unsuitable for the purpose for which they were to be used, or difficult to market. The court may further, upon rejecting the application for rescission of the contract, decide to reduce or increase the price, depending on the deficiency or excess in quantity or the discrepancy in type or the degree of defect, unless there is an agreement or custom requiring the rescission.
2. Clause (1) above shall not prejudice the provisions prescribed for protecting the consumer rights set forth in the legislation in force in the State.
Official translation, as published by the portal.
Official Arabic text
.1 إذا تبين بعد تسليم المبيع أن البضاعة المسلمة تختلف عن البضاعة المتفق عليها في الكمية أو الصنف أو أن بها عيباً، فلا يقضي للمشتري بفسخ العقد إلا إذا نشأ عن الاختلاف أو العيب عدم صلاحية المبيع للغرض الذي أعده له المشتري أو صعوبة في تصريفه، وللمحكمة عند رفض طلب الحكم بفسخ العقد أن تقضي بإنقاص الثمن أو بتكملته تبعاً لنقص أو زيادة الكمية أو اختلاف الصنف أو درجة العيب. كل ذلك ما لم يوجد اتفاق أو عرف يقضي بوجوب الفسخ.
.2 لا يخل البند (1) من هذه المادة بالأحكام المقررة لحماية حقوق المستهلك الواردة في التشريعات النافذة في الدولة.
What it means when you sign
This article deals with goods that, once delivered, turn out to differ from what was agreed in quantity or type, or to be defective. The buyer cannot have the contract cancelled unless the difference or defect makes the goods unsuitable for their intended purpose or hard to market. If the court refuses cancellation, it may instead reduce or increase the price to reflect the shortfall, excess, difference in type or degree of defect. This does not apply where an agreement or custom requires cancellation. A second paragraph states that these rules do not affect the consumer protection provisions in the legislation in force in the State.
When you are about to sign a sale contract, this article means that cancelling a sale over minor shortfalls or defects is limited, and that price adjustment is the other route. Clauses on acceptance, inspection, rejection of goods and the buyer's right to terminate are the ones to read, since an agreement can change the cancellation position.
Not yet cited in a Fahm report; shown because it sits in the same chapter as one that is.
Related articles
- Article 108Cited in Fahm reportsThis article sets time limits for a buyer who finds that delivered goods differ from the agreement or are defective.
- Article 109This article allows a seller of goods protected by a registered trademark to agree with the buyer that the buyer will not resell below a certain price.
- Article 86This article deals with interest on late payment of commercial debts.
- Article 87This article lets a creditor ask for extra compensation on top of delay interest, but only where the creditor proves that the loss beyond that interest was caused by the debtor's deception or serious error.
- Article 88Cited in Fahm reportsThis article bars a creditor from claiming compound interest, meaning interest charged on interest that has already built up and remains unpaid.
- Article 89This article covers instruments for paying money or delivering goods.