AWS Legal Group is pleased to present a specialized legal analysis addressing the relationship between Articles 6 and 8 of the UAE Arbitration Law (Federal Law No. 6 of 2018).

This article clarifies arbitration clauses’ independence, explores their limits of invalidity, and offers practical guidance supported by UAE and international case law.

The principle of the arbitration clause’s independence from the main contract is fundamental in modern legal systems, serving as a cornerstone of both domestic and international arbitration.

However, a careful reading of Articles 6 and 8 of Federal Law No. 6 of 2018 on Arbitration in the United Arab Emirates may generate apparent confusion among legal practitioners regarding the relationship between the invalidity of the main contract and the challenge to the arbitration clause itself.

This article aims to deconstruct this confusion, clarify the governing principle, and present cases where the arbitration clause was found invalid, supported by precise rulings from UAE and international courts.

1. Articles 6 and 8 of the UAE Arbitration Law

Article 6 states:

 “The arbitration agreement shall be independent from the other terms of the contract. The nullity, rescission, or termination of the contract shall not affect the arbitration agreement if the arbitration agreement itself is valid.”

Whereas Article 8 provides:

 “The court must dismiss the action if the defendant invokes the existence of an arbitration agreement before making any request or defense on the merits, unless the court finds the arbitration agreement null and void or incapable of being performed.”

Preliminary Analysis:

Article 6 establishes the legal independence of the arbitration clause from the contract, while Article 8 allows scrutiny of the validity of the arbitration agreement itself.

The Principle of Independence of the Arbitration Clause and Its Limits

The independence principle means that the nullity of the main contract, for any reason, does not automatically entail the invalidity of the arbitration clause. However, this does not prevent the arbitration clause from being invalid if it suffers from an independent defect.

As affirmed by the French Court of Cassation in Dalico v. S.A.R.L., Cass. Civ. 1ère, 20 December 1993:

 “The arbitration clause maintains its legal existence independently of the contract that contains it, even if that contract is declared null, unless the defect specifically affects the arbitration clause itself.”

Cases of Arbitration Clause Invalidity with Judicial Examples

Lack of Capacity or Defect in Authorization

Dubai Court of Cassation – Commercial Appeal No. 282 of 2015: The arbitration clause was declared invalid because the signatory lacked proper corporate authority.

Paris Court of Appeal – Decision dated March 17, 2015: Arbitration clause annulled where signed by an agent without specific authorization.

Breach of Public Policy

French Court of Cassation – Case dated March 6, 1979 (Société Pabalk v. Société Norsolor): Arbitration clause invalidated for addressing issues of public policy.

Dubai Court of Appeal – Appeal No. 252 of 2012: Arbitration clause rejected in a real estate dispute subject to mandatory judicial jurisdiction.

Ambiguity or Uncertainty in the Arbitration Agreement

English Court of Appeal – Sulamérica Cia Nacional v. Enesa Engenharia SA [2012] EWCA Civ 638: Arbitration clause found invalid due to uncertainty over applicable law.

Dubai International Arbitration Centre (DIAC) – Case No. 45 of 2017: Arbitration clause invalid due to lack of clear designation of the arbitral authority.

Conclusion

There is no real contradiction between Articles 6 and 8; rather, the two provisions operate harmoniously:

Article 6 establishes the principle of the independence of the arbitration clause.

Article 8 permits examination of the intrinsic validity of the arbitration clause as a separate agreement.

Thus, a diligent lawyer must assess whether the defect concerns the main contract or the arbitration clause itself.

For further inquiries regarding arbitration matters in the UAE, feel free to contact AWS Legal Group.