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اسأل محاميًا
دبي, الإمارات العربية المتحدة

What laws apply to goods sales, and what about delayed payments?

Dear Sir/Madam,

A total of 3 consignments of spices were exported to a Dubai-based company. The payment terms were 50% against AWB and the rest after 15 days of delivery. After the delivery of the 2nd transaction, we got the first part of the payment.

Upon sending the 3rd consignment, the company complained of quality issues in the product shipped in the second consignment (after 14 days of delivery) and released the 50% payment for the third consignment also.

No further discussions were made regarding the second consignment's quality. They assured to release the payment as per payment terms.

As soon as the third consignment reached, they again complained of quality issues about the size of the product. We asked them to return the goods and not sell them further.

They have sold the goods and after 20 days, are demanding a lab test on a very small quantity of goods remaining with them and are not releasing payments.

What laws apply to the sales of goods and their payments?

What recourse do we have?

متميز
إبراهيم البنا للمحاماة والاستشارات القانونية
دردشة توظيف
اجتماع
28 Apr 2024, 21:13

Dear Questioner,

Thank you for reaching out to me regarding the issues you've encountered with the sale of spice consignments to the Dubai-based company.

I understand the complexities involved and the urgency in resolving this matter promptly.

Based on the information provided, it seems that the situation falls within the realm of contract law and commercial transactions, specifically concerning the sale of goods.

In Dubai, as well as the wider United Arab Emirates (UAE), commercial transactions are governed by various laws and regulations, including but not limited to:

- UAE Commercial Transactions Law (Federal Law No. 18 of 1993).

- UAE Civil Code (Federal Law No. 5 of 1985).

- UAE Federal Law No. 20 of 2016 on Commercial Companies (if applicable to the company in question).

- Relevant provisions of the Dubai Civil Law and Dubai Commercial Law.

These laws outline the rights and obligations of parties involved in commercial transactions, including the sale of goods, payment terms, warranties, and dispute resolution mechanisms.

In your case, it appears that the Dubai-based company may be in breach of the payment terms agreed upon in the contract.

Additionally, their failure to provide sufficient evidence or engage in meaningful discussions regarding the alleged quality issues raises concerns about their conduct and obligations under the contract.

To address this matter effectively, I recommend taking the following steps:

1. Review the Contract:

Carefully review the terms and conditions outlined in the contract between your company and the Dubai-based company, paying close attention to provisions related to payment terms, warranties, quality standards, and dispute resolution mechanisms.

2. Document Everything:

Compile all relevant documentation, including the contract, invoices, communication exchanges (emails, letters, etc.), shipping documents, and any other evidence that supports your position.

3. Engage in Dialogue:

Initiate a constructive dialogue with the Dubai-based company to seek clarification on their concerns regarding the quality of the spice consignments. Request detailed evidence of the alleged quality issues and propose a mutually agreeable solution to resolve the dispute.

4. Explore Legal Options:

If the Dubai-based company refuses to cooperate or adhere to the contractual obligations, consider seeking legal advice to explore your legal options. This may involve initiating legal proceedings to enforce the contract, recover the outstanding payments, and seek compensation for any damages incurred as a result of their breach of contract.

As your legal counsel, I am here to provide you with comprehensive guidance and representation throughout this process.

Please feel free to reach out to me via WhatsApp or phone to discuss your specific situation further and devise a strategy to protect your interests and achieve a favorable resolution.

متميز
الفهد للاستشارات القانونية
دردشة توظيف
اجتماع
29 Apr 2024, 07:31

Dear Questioner,

Thanks for your inquiry!

Under UAE law, the sale of goods is governed by Federal Law No. 18 of 1993 on Commercial Transactions (the "Commercial Transactions Law").

According to the Commercial Transactions Law, the seller is obligated to deliver the goods in accordance with the terms of the contract and in a manner that conforms to the specifications agreed upon by the parties.

In your case, it appears that the buyer has raised concerns about the quality of the goods delivered in the second and third consignments.

Under the Commercial Transactions Law, if the buyer discovers any defects in the goods, they must notify the seller within a reasonable time. The law does not specify what constitutes a reasonable time, but it is generally understood to mean within a few days of receiving the goods.

In your situation, the buyer has not notified you of any quality issues until after the third consignment was delivered.

This may be considered a breach of their obligation to notify you within a reasonable time. However, the buyer may argue that they were not aware of the quality issues until they sold the goods.

In any case, the buyer is not entitled to withhold payment for the goods without a valid reason. If the buyer has sold the goods, they have accepted them and are obligated to pay for them.

You may have a legal claim for the remaining payment for the second and third consignments.

In terms of recourse, you may consider taking legal action against the buyer for breach, so please do not hesitate to contact us via phone or email in order to help you.

Greetings,

متميز
ميدل إيست ليجل كونسولتانتس
دردشة توظيف
اجتماع
29 Apr 2024, 07:31

Dear client,

The legal procedure is to file a civil case at the Dubai court to claim the due amount.

You must provide us with your documents (agreement, LPO, invoices, shipment documents or delivery notices, and statement of account confirming the outstanding amount) so we can check and inform you of our fees and court fees.

Additionally, we can serve a legal notice to them before filing the case.

Please contact us via phone or email for further assistance.

Best Regards,

متميز
كي إتش إي للاستشارات القانونية
دردشة توظيف
اجتماع
29 Apr 2024, 11:06

Dear Questioner,

Since the company is based in Dubai, we can sue them for breach of contract in the courts of UAE.

The buyer is in breach of contract by not paying the remaining balance for the second and third consignments.

If the complaints are unfounded, selling the goods they claim to be defective could be considered a breach.

Now, we can send a formal written notice demanding the outstanding balance for both the second and third consignments, citing the agreed payment terms and potential legal action if payment isn't received.

We can provide you with the service as well.

Kindly share your WhatsApp number to proceed.

3 May 2024, 12:54
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متميز
هند حميد النعيمي للمحاماة والاستشارات القانونية
دردشة توظيف
اجتماع
29 Apr 2024, 12:38

Dear Questioner,

We are pleased to respond to your inquiry!

In the beginning, the law that governs the relationship between you is the Commercial Transactions Law in the UAE, and some of the articles of the Civil Transactions Law, where each party is committed to all the obligations agreed upon in the agreement.

You must review the agreements to find out what has been implemented and explain your legal position.

We are honored by that.

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