Limitation of Liabilities– Analysing a balanced approach to Limiting Liabilities in Construction Contracts

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The British University in Dubai (BUiD)
Limitation of Liability clauses involves risk allocation in contract. Beyond the fact that the agreed contract terms apportion the rights and obligations in a contract, the contract and actions of parties are governed by the prevailing law. This governing law is expected to provide adequate statutory and legal controls to regulate specific liability terms in contracts, in addition to offering ample guidance in interpretation of these terms. The dissertation aims to investigate the concept of liabilities, its limitation and the provisions in the legal framework of the UAE; with the intention of assessing adequacy and proficiency of the UAE law in comparison to its economic counter-parts. The study reveals certain lacuna in the UAE law and in order to overcome these issues, approach to achieve equilibrium in liability or risk allocation in contracts is recommended. The research findings advocate need for statutory intervention and reforms to provide players in the construction industry legal protection from unreasonable and unconscionable contract terms.
limitation of liabilities, construction contracts, United Arab Emirates (UAE), law