Limitation of Liability in Construction Contracts
Publication: Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 15, Issue 2
Abstract
This paper explores the importance of limitation of liability in construction contracts and associated legal framework in the United Arab Emirates (UAE) with an objective of assessing its adequacy in comparison to its economic counterparts. It points out that since there is no independent statute dealing with the unfair contract terms, there is no equilibrium in contract provisions. This can cause several challenges for the industry and contracting entities. Despite the fact that the UAE law does not mandate reasonableness in limitation of liability contract clauses, client organizations must adopt best practices from industries around the world and they should be driven by the numerous advantages they offer. The paper lists the importance of limiting liability in a construction contract and accompanying benefits. It also enlists the measures and recommended approach that shall be adopted by contracting parties and the state in order to achieve equipoise in the contracting setup. This study focuses on the law of the United Arab Emirates.
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References
List of Cases
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Caledonia North Sea Limited v. British Telecommunications Plc (Scotland) and Others (2002) 1 Lloyd’s Rep.
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Dubai Court of Cassation no. 298 of 2008.
Hadley v. Baxendale (1854) 9 EX 341.
Transfield Shipping Inc v. Mercator Shipping (2008) 4 All ER 159.
UAE Union Supreme Court, 103/Judicial Year 24, 2004.
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Information & Authors
Information
Published In
Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 15 • Issue 2 • May 2023
Copyright
© 2023 American Society of Civil Engineers.
History
Received: Dec 27, 2021
Accepted: Oct 16, 2022
Published online: Jan 18, 2023
Published in print: May 1, 2023
Discussion open until: Jun 18, 2023
ASCE Technical Topics:
- Business management
- Comparative studies
- Construction engineering
- Construction management
- Contracts and subcontracts
- Economic factors
- Engineering fundamentals
- Engineering mechanics
- Equilibrium
- Industries
- Legal affairs
- Liability
- Methodology (by type)
- Organizations
- Practice and Profession
- Research methods (by type)
- Statics (mechanics)
Authors
Metrics & Citations
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