Q: How can we get our security cheques back given to our client against an advance for an order? Later, the LPO was cancelled after 170 days and we had already started the work for the job. We have offered to give a non-transferable credit note to the client but the client is asking us to deposit an advance given to us against the LPO in the bank account of the client and holding our undated security cheques too. The client has breached the contract by cancelling the LPO after 170 days while a part of the job drawings, structural calculations and other work were done. Please advise how can we get our cheques back.

Q: We are asked to give an undated security cheque in lieu of the payment done for provided services, how to write this cheque? Can we mention "Security Cheque" on the face of the cheque?

Q: We are an LLC company registered in Dubai. We had received LPO from our client and the advance was issued against security cheques. Now, the client has cancelled the LPO due to the uncertainty of the project. We had already started the work for the client, and now the client is asking for returning the advance and our security cheques will be handed over only after giving the advance. I would like to know what does the UAE law says about the same. Your advice would help us. Appreciate your positive response. Thanking you in advance.

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.

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.

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.

The provisions of this Decree by Law amend the Federal Law No. (18) of 1993 by replacing Clause (4) of Article (379) as well as Articles (600), (617), (641), (642), (643), (644), and adding new articles numbered (635) Bis, (641) Bis (1), (641) Bis (2), (641) Bis (3), (641) Bis (4), (643) Bis (1), (643) Bis (2), (644) Bis (1) and (644) Bis (2). The Decree-Law also repeals Articles (401), (402) and (403) of the Federal Law No. (3) of 1987.