Sale & Agency Contracts Flashcards
(35 cards)
What is a sale contract?
A sale contract refers to the transfer of ownership of a property in exchange for a financial benefit from a buyer to a seller.
What is the first legal obligation of the seller in a sale contract?
Transfer of Ownership (Title)
When is ownership transferred for movable property?
Ownership is transferred upon the conclusion of the contract, with specific formalities like car registration.
According to Article 1277 of the Civil Transactions Code (CTC), when is ownership transferred for immovable property?
Ownership is transferred only upon official registration.
What can the buyer seek if the seller breaches the transfer obligation?
The buyer can seek compensation, not specific performance.
What are the conditions of delivery of the subject matter?
The seller must deliver the item in the same condition as at the time of sale.
What are the three types of delivery defined in the CTC?
- Actual Delivery: Physical handover
- Constructive Delivery: Making the item available for the buyer
- By Registration: For items requiring legal registration
When is delivery expected to occur?
Delivery is expected immediately upon contract signing.
Who bears the expenses related to delivery unless otherwise agreed?
The seller.
What is the seller’s obligation regarding third-party claims?
The seller must prevent third-party claims on the sold property.
What must the seller do if interference from third parties occurs?
The seller must stop it or compensate the buyer.
What is assumed about the sale regarding hidden defects?
The sale is assumed to be free from hidden defects unless explicitly stated.
What rights does the buyer have under Article 544 CTC regarding unseen defects?
- Return the item
- Accept it at a reduced price
What constitutes an ‘old defect’?
An ‘old defect’ is one that existed before the sale or occurred while the item was under the seller’s control.
When is the seller not liable for defects?
- The defect was disclosed
- The buyer accepted the defect
- The item was sold with the knowledge of the defect
- The sale was done through a public auction
What is the primary obligation of the buyer in a sale contract?
Payment of the purchase price.
When must payment be made by the buyer?
At the time of the contract unless agreed otherwise.
What costs does the buyer bear related to payment?
All costs related to payment, such as customs fees and delivery expenses.
What is an agency contract?
An agency contract is an agreement where the principal authorizes an agent to act on their behalf in an agreed-upon transaction.
What are the two types of agency contracts?
- Special Agency: Limited to specific matters
- General Agency: Covers all dealings except for gifts unless explicitly authorized
What is Agency by Ratification?
When a principal retroactively approves an agent’s unauthorized action.
Who is eligible for commercial agency under the New Commercial Agency Law 2022?
- UAE nationals
- Public legal entities
- Private entities owned by UAE nationals
What is a condition under which international companies can act as agents in the UAE?
If there is no local agent for the product or the product is new to the UAE market.
What is required for the validity of an agency?
A written agreement.
