- Legal Articles
- Ask Elhais
June 13, 2020|
Presently the whole wide world is concerned about the impact of coronavirus on the economy and certain other specific sectors, wherein the impact on arbitration agreements would be todays discussing topic by Arbitration Lawyers of Dubai.
In a recent article, our legal consultants have discussed the aspect of whether impact of corona virus is a force majeure event within the parameters of UAE Civil Transactions Law. Accordingly, we are of the opinion that the Pandemic fulfills the principal state of a force majeure (for example it is not predictable) as long as the parties have gone into the agreement prior to the time when World Health Organization declared COVID-19 as a pandemic.
In any case, so as to effectively drop ones commitments under an agreement by conjuring force majeure a party must likewise demonstrate the commitments of an agreement are difficult to act in this period of the Pandemic; to do so a party must fulfill the second condition that is the effect of the situation was unavoidable and has rendered the particular commitment or the agreements commitments difficult to perform.This, in our view, will basically depend on the prudent steps taken by the experts in reacting to the Pandemic and whether such measures would render the presentation of the obligation(s) outlandish; and to what degree.
The Agreements to enter into arbitration for dispute resolution, like any other agreements, are dependent upon the force majeure rule and might be ended by the activity of law should a force majeure occasion makes the performance of the contract or agreement impossible to perform. In such manner, Article 8.1 of the UAE Federal Law no. 6 of 2018 on Arbitration (UAE Arbitration Law) which allows the court authorities to reject a case (which shall be subject to arbitration as per the agreement) or application filed by a defendant, unless the agreement for arbitration is void or impossible to perform.
It shows up from the wording of Article 8.1 of the UAE Arbitration Law that arbitration agreement wont just be ended by operation of law if there should be an occurrence of a force majeure occasion (which is unforeseeable and brings about outright difficulty) yet in addition if there should be any occasion which renders the exhibition of the arbitration proceedings outlandish whether such occasion is unforeseeable or not.
In such regards, we can mention that arbitration agreement, in contrast to different understandings, can be terminated by the provision of law in the event of an occasion that makes its exhibition incomprehensible regardless of whether such an occasion qualifies as force majeure (for example unforeseeable) or not. The explanation, in our view, for a difference can be credited to the idea of the arbitration agreements which offers equal rights to both parties for adequate justice. Along these lines, the gatherings may not be kept from approaching equity in light of the fact that the accidental occasion, which settles on the exhibition of an arbitration agreement incomprehensible, yet unanticipated.
Copyright © of this article is retained by the author and/or other copyright owners. We explicitly grant you permission to download a copy, without any alteration, of this article for personal non-commercial research or study, without prior permission or any charge. This article can be utilized on your website or for marketing, however, we grant you permission to host this article on your website and no other rights. This content should not be altered in any way or sold commercially in any format without prior permission of the copyright holder. During reference of this article, full biographic details entailing the name of the author, his designation, the institute and the publishing date of the article shall be provided.
Your email address will not be published. Required fields are marked *
I owe the success of my case to Dr. Hassan's diligent approach. He remained focused, put me at ease and always went the extra mile. Dr. Hassan tirelessly put my case in the best possible light and I cannot thank him enough. I would highly recommend Dr. Hassan - I am grateful to him from the bottom of my heart.
Dr. Hassan Elhais is among the best legal consultants I have ever worked with. He has an amazing ability to reduce complex issues into a simple concept that non-legal people can understand. He consistently develops innovative litigation strategies that help us to achieve our ultimate legal goals.
...the extraordinary effort that has been exerted by the staff, and we specially thank Dr. Hassan Mohsen Alhais. Wishing your continues success & excellence...
I believe everyone should recognize what a difference Dr. Hassan Elhais work has made to people's lives; and especially to our family's life, because we will remain forever grateful to each and every one of his team.
Dr. Hassan Elhais never fears cases that involve exposure and he always gives me his honest assessment of our chances of success, which is invaluable to me.
He aided us not only in providing legal advice but also in all legal issues that required a long term strategic approach to achieve most favorable and optimum outcomes he provided us with high level of professional service.
Dr. Hassan Elhais is a responsible, reputable counsel who operates to high levels of service.
Dr Hassan Elhais is responsive, thorough and creative with his advice, and is a valued advisor and legal consultant.
Regardless of the complexity of the matter I know Dr. Hassan Elhais will consider not only legal strategy but also business practicalities in providing advice and litigation options.
I recommend Dr. Hassan Elhais to anyone who says 'I'm in legal trouble'. I was extremely satisfied with the high standard of his work. He has always been there when I have needed him and I refer all my clients, family and friends to him/his firm.
Dr. Hassan Elhais was very professional and he listened to my needs. He was very prompt, efficient and always kept me informed. Dr. Hassan Elhais's service was excellent and I would definitely recommend him to friends and colleagues.