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Contract term

Governing law

The clause specifying which jurisdiction's law applies to the contract — for UAE deals typically onshore UAE federal law, DIFC, ADGM, or a foreign law.

The governing-law clause determines which legal system interprets the contract and, often, which courts hear disputes. In the UAE this may be onshore federal law, the common-law systems of the DIFC or ADGM, or a foreign law.

A foreign governing law on a UAE-domestic contract can complicate enforcement against UAE assets, and a missing governing-law clause leaves the forum open to dispute.

StartedUp flags contracts with missing governing law and foreign law on domestic agreements.

Related terms

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StartedUp finds and explains clauses like this automatically — cited to the exact source text.