Non Renewal Clause

A common clause seen widely in tenancy contracts is: “Renewal is at the discretion of the Landlord. This Tenancy Contract shall terminate upon expiry and the tenant shall vacate the premises.”

In the present judgment, the Appeal Department of the RDC emphasized the importance of UAE public policy and regarded this clause to be in breach of such policy. Article 25(2) of the Tenancy Law lays down the four limited grounds whereby a landlord can demand eviction of the tenant upon expiry of the tenancy contract and any other ground would not be acceptable to RDC.

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