LOI issued with 10% deposit, no buyer response. Where do I legally stand?

Dear Questioner,

If he already made confirmation and signed the required documents, then you can file a compensation case against him for breach of contract, but before that, we have to review the contract to check the terms and conditions of termination.

Furthermore, if there is a default on the part of the buyer and you already have the cheque, then there are possibilities to claim the cheque amount.

To advise you more on this issue, we need to know some more information.

We will discuss more on a legal consultation session for a charge.

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Dear Questioner,

You are eligible to claim this amount, but before doing so, it is essential to review the Letter of Intent (LOI) and any agreements between the buyer and yourself.

If there is any clause specifying the termination of the transaction by either party and the obligation for compensation, it should be considered.

Dear Questioner,

According to UAE law, an LOI (Letter of Intent) is a non-binding document that expresses a party's intention to enter into a contract.

It does not create a legally binding agreement between the parties. However, if the LOI includes a clause stating that it is binding, then it may be considered a legally binding document.

In your case, if the LOI does not have a binding clause, then the buyer is not legally obligated to purchase the office floor and can withdraw from the agreement at any time.

However, if the LOI does have a binding clause, then the buyer may be in breach of contract by not responding and not exchanging the F form. So, it is advisable; to check the clauses of the LOI.

He must complete the deal according to the letter of intent, otherwise, he must compensate you, but this depends on exactly what terms are formulated in the letter of intent.

To obtain free legal advice that includes all the details, kindly contact me.

Dr. Mohamed Allam

Doctorate in Public Law

Certified legal advisor in the Dubai Government Legal Affairs Department

Hello,

As per your query, please note that if the buyer is not responding, then you can deposit the cheque and file compensation against the buyer.

Please contact us via phone or email.

Greetings!

If a MOU was signed by both parties, and the buyer refuse to complete the deal, you have the right to claim 10% compensation.

You can contact us by phone or email.