Trapped by Tender
- The Oath
- Dr. Constantin Frank-Fahle, LL.M.
- Marcel Trost, LL.M.
Principals in the medical equipment sector — manufacturers and exclusive suppliers whose Gulf distributors hold long-term government supply tenders at fixed prices — face acute margin pressure as Strait of Hormuz disruption and surging polymer and medical-grade raw material costs push freight up 25 to 40 per cent in a single quarter. This article assesses whether UAE contract law permits a principal to reprice or suspend supply, and maps the hardship (Article 224), force majeure (Article 236), and coordinated-variation remedies actually available under the new Civil Transactions Code (Federal Decree-Law No. 25 of 2025).
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