أسئلة وأجوبة
Lease agreement
I have two shops in Sharjah. Recently I`ve decided to sell them to different owners. We changed the name of the branch and Landlord now asking for a double rent price - from AED 150,000 to AED 300,000.
Where do I stand in legal perspective and what should be my actions on this? Thank you.
A contract is the meeting of an offer issued by one of the contracting parties with the acceptance made by the other party and their concordance in such a manner as to produce their effect on the object of the contract and results in a binding obligation on each party in consideration of the obligation of the other party.
According to Article 742 of the UAE Civil Code a lease is granting ownership of the use of a specific thing to the lessee for a certain time in return for a fixed rent. Rent must be known either by specifying its kind and amount, if cash money, and by specifying its kind, description and determination of its amount, if otherwise.
Generally landlord cannot increase a rent on a unilateral basis because of a name change, yet such a provision stipulated in the lease agreement executed by you and landlord. We are glad to invite you to our office to provide a legal opinion on the possible ways of resolving your situation.
