Implied Terms in Contracts and Unfair Terms Law DIFC Law No. 6 of 2005

PART 1: GENERAL..........................................................................................................................................................1

1. Title .......................................................................................................................................................................1

2. Legislative Authority..............................................................................................................................................1

3. Application of the Law...........................................................................................................................................1

4. Date of enactment.................................................................................................................................................1

5. Commencement.....................................................................................................................................................1

6. Interpretation ........................................................................................................................................................1

PART 2: IMPLIED TERMS IN CONTRACTS.........................................................................................................................2

7. Scope of this part...................................................................................................................................................2

Chapter 1: Sale or Supply of Property .........................................................................................................................2

8. Application ............................................................................................................................................................2

9. Implied terms about title........................................................................................................................................2

10. Implied terms where sale or supply is by description .........................................................................................3

11. Implied terms about quality or fitness.................................................................................................................3

12. Sale or supply by sample.....................................................................................................................................4

Chapter 2: Contracts for the hire of property..............................................................................................................5

13. Implied terms about right to transfer possession, etc .......................................................................................5

14. Implied terms where hire is by description .........................................................................................................5

15. Implied terms about quality or fitness.................................................................................................................5

16. Implied terms where hire is by sample.................................................................................................................6

Chapter 3: Contracts for the supply of services..........................................................................................................7

17. Implied term about care and skill.........................................................................................................................7

18. Implied term about time for performance ...........................................................................................................7

Chapter 4: Other terms relating to transfer of property..............................................................................................7

19. Relation to other remedies etc ...........................................................................................................................7

20. Conformity with the contract ..............................................................................................................................7

21. Property must be ascertained..............................................................................................................................8

22. Passing of risk .....................................................................................................................................................8

23. Undivided shares in property forming part of a bulk ...........................................................................................8

24. Deemed consent by co-owner to dealings in bulk property ...............................................................................9

25. Rules about delivery.............................................................................................................................................9

26. Delivery of wrong quantity ................................................................................................................................10

27. Delivery to carrier ..............................................................................................................................................10

28. Transferee’s right of examining the property.....................................................................................................10

29. Acceptance .......................................................................................................................................................10

30. Delivery of property otherwise than in conformity with the contract ...............................................................11

Chapter 5: Auctions .................................................................................................................................................11

31. Auction sales.....................................................................................................................................................11

32. Rights etc enforceable by action.......................................................................................................................12

33. Savings: rules of law .........................................................................................................................................12

34. Exclusion of implied terms.................................................................................................................................12

PART 3: UNFAIR TERMS ...............................................................................................................................................13

35. Application ........................................................................................................................................................13

36. Scope ................................................................................................................................................................13

37. Negligence liability ............................................................................................................................................14

38. Liability arising in contract ...............................................................................................................................14

39. Sale, supply and hire .........................................................................................................................................14

40. The "reasonableness" test.................................................................................................................................15

41. Varieties of exemption clause ..........................................................................................................................15

SCHEDULE 1................................................................................................................................................................16

1. Rules of interpretation.........................................................................................................................................16

2. Legislation in the DIFC.........................................................................................................................................17

3. Defined Terms......................................................................................................................................................17

SCHEDULE 2................................................................................................................................................................20