The Contractual Agreement and its difference between the Lease and Employment Contract
As per the Federal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates
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Contractual Agreement difference Lease Employment Contract Lawyer Dubai Lawyers AbuDhabi The Contractual Agreement and its difference between the Lease and Employment Contract As per the Federal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates WhatsApp: +971555570005 Where the Article No. 872 of the Civil Transactions law of the U.A.E States that” Contract for work is one by virtue of which one of the parties undertakes to do a piece of work in consideration of a remuneration which the other party undertakes to pay.”
The aforementioned definition summarizes the important characteristics of the contract for work as follows;
The contract of work is a consensual contract does not require a specific form to be concluded and it is a binding contract for the two parties, and it falls into the category of the compensatory contract.
The consent in the contractual agreement shall be subject to two elements: the work to be performed by the contractor “a contractor”, and the remuneration to be paid by the employer “the other contractor”.
In this definition, the contractual agreement was separated from two other contracts that were mixed in the old civil codification and are still mixed in the French Civil Code, namely, the lease and contract. The old civil codification combines these three contracts under the name “rent” where the lease contract is for renting things, and the employment contract is for renting people. And this definition is due to the Romanian law. This law defines the lease contract as follows: first ;by considering it a contract and its subject is the use of the thing it is called a lease of things, and the second is a contract and its subject is the use of the work of the free Human and it was called the employment contract rent
The Roman law simulate the work of man in terms of the possibility of using it, and the supporters of the individual doctrine to this point of view that the work is considered a commodity sold in the market, and its price is determined in accordance with the law of supply and demand.
The supporters of the social doctrine did not like simulated work to a commodity, and they claimed that the work was not a commodity, and that follows the change in the economic idea by amending the legal idea. The modern regulations separated these three contracts from one another. Where the new Civil Code specified a chapter for the use of the thing, the contractual agreement regulations, and employment contract, and the usufruct. The contractual agreement is separated from the lease contract and the employment contract and its separated from the lease is self-evident.
Thus, we have explained how the contractual agreement evolved from being a lease contract to become a stand-alone contract with its content, scope, and effects.
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