Process-based theories shift the centre of gravity of the parties` study and the content of the parties` agreement to the manner in which the parties reached their agreement. These theories provide appropriate procedures for defining enforceable obligations and then evaluate each transaction to determine whether these procedures have been followed. The main problem with process-based theories is that they put insurmountable obstacles in the way to minimize implementation difficulties. The obligation of the contract is the responsibility of the contracting parties in the event of a legally binding agreement. A contractual obligation may be of various forms, including performing certain tasks, preventing certain acts, providing products or services and paying for counterparties. Parties who fail to meet their obligations can expect legal consequences. In some cases, contractual obligations may be transferred to a third party. The rights of the contracting parties are the rights guaranteed by a legally valid contract to the parties who have entered into the agreement Contracts or agreements between different parties are established and validated by the UAE Contract Act. Contract Act is one of the most central laws that regulate and supervise the entire enterprise wherever an agreement or agreement can be reached. In the next section, you`ll find out what a contract is. A contract is a legally binding agreement between the parties.
In addition, the rights and obligations of the contracting parties may be enforced by the courts. Courts may impose contractual obligations by the late partner or, more often, award damages for breach. The commitment of the contracting parties is acquired by the signing of these particular obligations. It must be voluntary support for a set of rights and obligations. Thus, it is clear that the validity of a contractual undertaking lies solely in the fact that the formation of a contract obliges the parties to voluntarily make a morally binding promise. Since the contract is legally recognized and enforceable, the contractual obligation confers a legal and effective obligation on the moral obligation. There are some theories that help to assess the nature of contractual obligations. Of which the five most commonly used theories are, trust, efficiency, equity and bargain theories.