Abu Dhabi — Buyers across the United Arab Emirates will benefit from stronger legal protections following sweeping updates to the country’s Civil Transactions Law, which came into force on January 1, 2026.
The revised law introduces clearer rules governing sale contracts, expands remedies available to buyers when goods are defective, and extends the time limit for filing claims related to hidden defects from six months to one year. Officials say the reforms are aimed at modernising commercial transactions, reducing disputes, and improving confidence in the legal system.
Clearer sale rules and broader remedies
Under the updated framework, provisions covering sale by sample and sale by model have been clarified, making contractual expectations easier to enforce. The law also strengthens protections for individuals with limited legal capacity, particularly in cases involving grossly undervalued property transactions.
When goods or property are found to be defective, buyers are now explicitly entitled to reject the item, accept it with a price reduction, or request a defect-free replacement. These remedies are designed to give buyers greater flexibility and clearer legal backing when purchases fail to meet agreed standards.
Longer window for hidden defect claims
One of the most significant changes concerns latent, or hidden, defects. Previously, buyers had six months from delivery to bring a claim unless a longer contractual guarantee was in place. The new law extends this period to one year from the date of delivery, with the possibility of additional time if expressly agreed in the contract.
Dr Binisaroj, senior legal consultant at Khalifa bin Huwaidan Advocates, said the reform marks a substantial improvement in buyer protection.
“Under the old law, claims relating to hidden defects were not admissible after six months unless a longer guarantee was agreed,” she said. “The new law extends this to one year and broadens the remedies available to buyers. These are sensible changes that reflect modern expectations of fairness in commercial dealings.”
Impact on consumers and businesses
For consumers, the changes provide more time to identify hidden defects, clearer legal rights when transactions go wrong, and stronger safeguards in high-value purchases such as real estate.
For businesses, the revised rules encourage higher quality standards, clearer disclosures, and improved compliance. While sellers face stricter obligations, legal experts say the clearer framework should help reduce prolonged disputes by setting defined boundaries for liability.
Part of a wider legal overhaul
The sale contract reforms form part of a broader update to the Civil Transactions Law, aimed at strengthening trust in the legal system while supporting economic activity.
“These reforms show a legal framework that is evolving with confidence,” Dr Binisaroj said. “They respect tradition and Sharia principles, protect vulnerable parties, and offer clearer, more practical rules for today’s commercial environment.”
