Like others said, we are not talking about the law, but the Dawi mindset. They were cheated (or so they say) and might think the deal to be null and void.
Because they will.
It will take a day, a week, a month or a 100 years. But it will happen one day, unless their grudge is settled without spilling blood. You say, that the Dwarfs act like the law doesn't apply to them. This is obviously not true. They have lived in the Empire for many, many generations and have adapted well. But their cultural imperative, which is recording and avenging grudges is always there. They are simply programmed to do so, like a predator is destined to hunt and kill in order to survive. I assumed, that they will notice the obvious opportunity of settling their grudge by using the limbo they are in right now and a lack of authority, that might be able to stop them. Is this against the law? Of course it is. Yet such things do happen and there is a criminal element among the Dwarfs as well, they are not saints at all. Like you said, Dawi are not reasonable, most of the time.
This is your Quest and you will do as you please. I just thought that is what they might possibly do.