Questions & Answers
How to claim the remaining amounts unpaid by a company after delivery of goods
Our company (Ajman Freezone) has delivered goods to a company in Mainland Dubai.
The payment terms agreed on 30% on order confirmation and 70% on delivery of goods to the warehouse in Dubai.
The customer paid 30% on the order confirmation and failed to settle the 70% on delivery of the goods to their warehouse. Upon confronting the customer that he failed to comply with the payment terms, he asked to pay in installments.
We agreed on five monthly installments and the customer confirmed the date and amount of the payments via email.
Oct 2020, November 2020, December 2020, January 2021 and February 2021.
He failed to pay December 2020, January 2021 and February 2021.
Since then he has been avoiding us, and only when we keep pressuring him, he pays small amounts, which are not equal to the monthly installments agreed upon.
The installments were confirmed, but not handed over as PDC.
Kindly advise what can be done in this case and if it is feasible to go to court.
Dear Questioner,
Your inquiry seems to me as a very straightforward case of an unsettled debt.
In some cases, we advise the client to start a payment order case - depending on the strength of the documents and supporting evidence to your story - or we in other cases advise to go for a commercial case when we have to spend more efforts into confirming the transaction and the debt itself.
So, we will need to see the documents before we confirm which route it should be taken in order to file the case and get the best results out of it.
However, in all cases; you have a valid argument to file a case and claim the balance of the funds unpaid together with interests for the delay and possible damages if it occurs.
To get such assessment for the viability of the legal action and the advice on which direction to take and understand whether it is feasible or not to go to court, you should send us the documents to do such assessment and then compare your legal spending whether of our professional fees or the court fees and related expenses to assess the commercial convenience in the legal action!
If you wish to proceed to get such an assessment handled, please send me the relevant documents and any other related correspondences by email and we will provide you our quote for the initial stage before we start working on the file.
Ahmed Elnaggar
Answer-
Please note that as per your query, it is feasible to go to court for the claim amount. Since there is no security, so it should be as per the agreed payment terms via email.
Also, as there is no settlement agreement, it is better to provide a legal notice and then file for the case.
The feasibility depends upon your budget to take the risk to file the case before the court. Normally, if there is a breach of the terms, then the court grants the claimant the sum due to them.
Also, as the other party has provided some amount, so you should try to negotiate at last with a third party/lawyer, then can send a legal notice, and then file the case.
Please call or email us.
Disclaimer- The above-referred view is not a legal opinion, these opinions cannot be challenged or presented before any court of Law.
Hi
We need to know the amount involved to be claimed. You can open a commercial case.
You can call me.
Rajesh
Dear Questioner,
Our advice would be to initiate a commercial case against the Company.
The documents you would need are agreements, invoices, purchase orders, delivery notes, emails all legally translated to Arabic.
You can call us to discuss this in detail.
Regards.
