Questions & Answers
Questions & Answers
8 available 8 • View allTrading unpaid invoices for provided services in the UAE

2
Q: We have been working for a Dubai based company since 2007.
Over the years we have sent many invoices and the company has paid the invoices, a lot of times too late but paid. We kept on doing services for this company since we had a good private relationship.
The debts kept building up and are today 1.5 million USD. The company signed an "Acknowledgement of Debt Agreement" and accepted that they owe us the money.
The company's CPA sent us several Balance Confirmation letters and asked us to confirm the debts. We signed and returned. They have not paid anything since 2015.
We do have some signed invoices, signed order of confirmations in regards to the service we supplied and many emails that confirm that we discussed the debts.
We think we have a strong case but we consider to sell the claim. Is it legal to trade claims in the UAE? How do you see our case?


Sep 24, 2019
384
Consequences of failure to pay a commercial loan 
3
Q: Hello Sir,
I have a company and have outstanding loans worth AED 1.9 Million.
We have been paying regularly for over 2 years now, but I have not been able to pay my last EMI. The next one is due soon but I don't have the provision to pay as the business is very dull.
What are the consequences if I cannot pay?

May 24, 2018
2112
Debt restructuring of commercial loans with banks

0
Q: Dear Sir / Madam,
Greetings from Dubai!
Our commercial group has been established in Dubai since 1963.
Due to the recent turbulence in the economic conditions in the region, the banks have withdrawn the support for our financial facilities provided to our company which has lead to default in honouring our commitments.
While we are trying to manage the situation, the banks have filed criminal/civil cases against our companies.
Let me know if your esteemed organization can help us amicably restructure the outstanding debt with the bank so that we can continue to focus on reviving our business.
Thanking you!


Feb 6, 2019
1174
Assistance with collecting unpaid debts from clients


0
Q: Our company is not operational anymore as we had debt with two banks and we are now in India. So, we have been negotiating with the bank directly to bring down the one-time settlement amount.
We most likely have two cases against our company by these two banks.
I need two services from you.
1. Collect debt on behalf of us - from several companies - total around AED 1.3 million.
What's the likelihood of collecting these debts?
How will you pay back to us in order for us to settle to other suppliers?
And is there any fee or once you receive our payment? If there is an upfront fee, we are unable to pay at this stage.
2. We already have AED 600k worth of cheques under our company name. How will you help in cashing those cheques on behalf of us? Is there a way?
If we deposit into our bank account, does it get deducted towards our debt without reaching a settlement. There are 4 cheques.
Share your thoughts. We would hire you if your answer makes complete sense to us.



Nov 24, 2019
402
التزامات الشريك المواطن في الشركة حال هروب الشركاء الآخرين
6
س: السلام عليكم،
ما معنى شركة ذات مسؤولية محدودة فيها شركاء وأحدهم مواطن؟ وفي حال هروب الشركاء غير المواطنين وهنالك التزامات بنكية فماذا سيحدث للمواطن؟

Mar 16, 2019
1166
Counterclaim against two companies owned by the same owner


1
Q: I write to you from the UK.
There are two corporate companies owned by the same owner and operating in the same territory; one of them is a property company, the second is a financial services company.
The first one has defaulted on a transaction with me for £700,000. This amount has remained outstanding for the last 10 years and is a proven debt.
The second company is making a claim against me for £53,000 and starts bankruptcy action against me.
Does Sharia / Dubai law permit me to make a counterclaim against the second company because of the outstanding debt (£700,000) that the first one owes me?
The transactions between both were separate transactions. Does Sharia Law permit a “set-off"?
In law, set-off is a legal technique applied between persons with mutual rights and liabilities. It permits the rights to be used to discharge the liabilities where cross-claims exist between two parties.



Jun 30, 2019
347
How to clear liability after leaving a mainland company?
1
Q: I was a partner in a mainland company. During my tenure, I had given a personal guarantee for a bank loan for a mainland LLC company.
I have exited the company. The company is in poor financial condition. I wanted to know if the personal guarantee will/can be enforced if the company fails to pay the bank debt.
Can my personal assets in the UAE and INDIA be called upon?

Dec 15, 2020
326
What kind of legal document is required to guarantee paying back a debt?
1
Q: Someone who owes me over AED 25,000 has agreed to pay back AED 5000 a month.
Can we get a contract which both signs and is legal standing if he does not pay the agreed amount back on the agreed date?

Oct 30, 2021
300
Legal blog
2 available 2 • View allSix Thumb Rules to Bear in Mind Before Entering an Arbitration Agreement 9
This short write up examines some of the key considerations one has to bear in mind while opting for Arbitration as a preferred mode for dispute resolution.
Sep 12, 2020
2629
اتفاق التحكيم حسب قانون التحكيم الإماراتي 37
مواكبةً للتطورات المتسارعة لعصرنا الحديث، أظهرت القيادة الرشيدة لدولة الإمارات العربية المتحدة مرونتها التشريعية، وقدرتها الفائقة على مسايرة مستحدثات عصر السرعة والعولمة، من خلال إصدار قانون التحكيم الاتحادي، وهو القانون الاتحادي رقم (6) لسنة 2018 الصادر بتاريخ 3/5/2018، والذي قامت فيه بتنظيم التحكيم، هذه الوسيلة الخطيرة لفض المنازعات من خلال (61) مادة قانونية تجمع بين المرونة والانضباط التشريعي.
Oct 11, 2020
3663
Laws & Regulations
3 available 3 • View allFederal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates 96
The provisions of this law, promulgating UAE Civil Code, govern the civil transactions in the United Arab Emirates. The commercial transactions remain subject to the laws and regulations applicable in their regard.
Dec 15, 1985
148442
Federal Law No. (18) of 1993 Issuing the Commercial Transactions Law 19
This Law applies to merchants, as well as to all acts of commerce carried out in the UAE by any person even though he be not a trader. Commercial matters regarding which specific Federal laws are issued shall be subject to the provisions of such laws, and to the provisions hereof which do not contradict with said laws.
Sep 7, 1993
33031
Federal Law No. (11) of 1992 Concerning Issuance of the Civil Procedures Code 42
The law promulgates UAE Civil Procedures Code (Civil Procedure Law) which governs civil procedures in the United Arab Emirates, including the prosecution before the courts, litigation and execution.
Feb 24, 1992
75346

Other answers by
71 71 answers •
View allThe consequences of staying in the UAE after the end of the grace period 0
I am in my grace period after my residence visa cancellation. Is overstaying after the grace period illegal?
If I stay paying fine till my new visa gets finalized, how will it affect me? Will I face any ban?
Please advise!
Thanks!
Dec 26, 2022
1503
Can the tenant avoid paying early exit penalty for rent after losing job? 0
We have an existing tenancy contract in Sharjah, but due to unfortunate circumstances of this pandemic, my wife and I lost our jobs.
We already paid until December. Is there a current law where we can avoid paying the penalty of 2 months if we will end the contract earlier?
Oct 21, 2020
370
Travelling to GCC countries while have an unpaid loan in the UAE 0
Hello
Can I have your Whatsapp number? I have an urgent question, please.
Jan 13, 2020
742
Getting a new employment visa while a cheque bounce case is being processed 0
Hi All,
I have an existing criminal "cheque bounce" case under my name for dishonoring loan payments. I'm also a victim of unpaid salaries and gratuity from the previous employer.
However, I have reached a stalemate in negotiating with the bank as they are not interested in accepting the money I could offer in the interim despite having a clear understanding of my predicament.
Finally, I have an offer from a company after all these months and I'm anticipating to accept this offer but I'm yet to resolve the criminal case!
Since the bank is not willing to negotiate, I've planned to pay the criminal case removal fee or fine to the Dubai Police. I know that the bank would immediately proceed with a civil case should that happen.
My question is how long does it take to file a civil case? And can they initiate a travel ban without appeal while filing the civil case in court?
Will it affect my capacity to get a new employment visa stamped and work in the UAE while the civil case is active?
Jan 6, 2020
2023
Obtaining a part-time job while being employed on a full-time basis 0
I currently work in Dubai but I need an extra income from a part-time job.
Can I obtain the part-time job and still do my current job properly?
Is there an approval I need to get?
Jan 2, 2020
959

Premium
Other answers by
451 451 answers •
View allAre there any restrictions on a diplomat buying property in the UAE? 0
Hello,
Is there any restriction on a diplomat buying property in the UAE, where he works as a diplomat at his country's consulate?
Feb 20, 2025
83
If someone has a case in the UAE, can they travel to another GCC country? 0
Hi.
One of my friends joined a Telegram group. They said, "We will transfer some amount to your account, and your task is to transfer this amount to another account. Once the task is completed, you will get 30 or 50 AED per task."
He completed 3 to 4 tasks, but he realized it was not good, so he stopped. After one week, when he opened his account, it was blocked, and the bank said, "We are conducting an investigation; after this, we will let you know."
After some days, he had an accident and went to his home country. He then received a call from a landline number, which was from the Abu Dhabi police station.
They said, "We have received a complaint against you; come to our investigation department." However, due to his surgery and treatment, he could not go.
After some time, his bank account was reopened, and he did not receive any further calls. I want to know, if he comes back to the UAE or goes to any other GCC country, will he face any problems?
If someone has a case in the UAE, can they travel to another GCC country?
Please advise!
Feb 17, 2025
152
What can I do if my employer refuses to pay me and I have no contract? 0
Hello,
What legal action can I take in case the employer refuses to pay my salary and I don't have a contract with them?
Feb 18, 2025
134
I want to open an online shop. Do I need a license to open an Etsy shop? 0
I currently live in Sharjah and have a UAE residence visa but I am not a UAE or GCC national. I want to open an online shop (Etsy or Shopify) to sell handmade items, such as crocheted goods, bookmarks, greeting cards, etc.
Do I need a license to open an Etsy shop?
If so, which license do I need to sell my products online, including UAE and worldwide?
How much would it cost me?
Can I keep my residence visa (sponsored by my father) and not change it?
Feb 14, 2025
142
How can we locate a person with an ongoing legal case? 0
Hello,
I am seeking your legal advice regarding a friend who was previously imprisoned in Abu Dhabi. His case there is now closed, but he has another ongoing case in Dubai.
Currently, we have lost contact with him and are unsure of his whereabouts. How can we check where he is or access any other legal facility?
Are there legal procedures to locate a person with an ongoing case?
What steps should we take to get more information about his status and legal position?
Feb 11, 2025
158

Other answers by
421 421 answers •
View allPayment recovery for delay in the delivery of purchased property 0
Hi,
I need to hire a property lawyer.
I have purchased a property that is still under construction. The handover was supposed to be May 2018 and it has been delayed for over 18 months.
Can you please advise what is the average fee to the lawyer and any upcoming fees?
I would like to either receive compensation for the delay or terminate the SPA and receive what I have paid.
Thanks
Nov 10, 2019
382
Termination of services due to cost-cutting 0
My company terminated my services without any reason except for what they told me that they are cost-cutting.
What are the complete benefits that they have to pay to me beside the gratuity?
I worked there for 3 years.
Nov 10, 2019
959
Court fee for filing civil case of cheque bounce 0
What is the total fee for instituting a civil case for a bounced cheque of AED 4 million?
Nov 8, 2019
4869
Mutual Termination vs Resignation 0
Is it possible to request a mutual termination of the contract from the employer?
My employer recently asked me to submit a resignation. Since it's not legal for him to do this and since I don't mind leaving the company for better opportunities, is it legal for me to request a mutual termination of contract letter?
What are the important things that should be stated in the letter?
Nov 9, 2019
1696
Termination for non-performance and claim for arbitrary dismissal 0
Hi,
I am the GM of a company in the Internet City and the VP Sales MEAA.
My contract has been terminated after 13 years due to some results that did not meet the company expectations.
No process was followed prior to termination. I wish to know if I will have a claim for arbitrary dismissal.
Regards
A. D.
Nov 5, 2019
1091
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