Hotel Management Contracts in the UAE and Wider GCC

Abstract

Does contract law really serve any purpose? If so, why do businessmen often resort to and rely on ‘a man’s word’ knowing that a transaction may involve inherent risks? Even in the current investment climate, are contracting parties now employing more sophisticated or advanced risk planning and management policies or pleasantries and ambiguity in contracts still continue to operate? If the objective of contractual clauses is to cement the relationship between the parties then why is such binding effect often flexible and informal? Would imposition of strict legal sanctions disrupt the relationship of two contracting parties? The term contract as per standard contract law textbook theory is nothing but meeting of ‘wills’ or ‘minds’. If the will is really free, why can it not change its mind? Will holding parties strictly to their promises, operate harshly and unfairly in many instances?

Keywords: Hotel Management Agreement, Hotel Operator Agreement, Hotel Acquisition Due Diligence, United Arab Emirates, Dubai, Abu Dhabi, GCC, Law, Legal

JEL Classification: F23, K11, K40, K12, K23, K29