Q: We have an outstanding invoice with a company in the UAE who refuses to pay. Over the past 3 years, they kept saying they will start making payments on a monthly basis, however, nothing happened. We have all the communications detailing their lack of payments. The sum is about $24,000. Can you advise on the process and cost of taking this claim forward? Regards

Q: Hi. I have tools and hardware small business. I supplied goods to one company in Dubai and the payment is pending since May 2017. The total amount is AED 59,652, and the company owner is not giving any reply nor picking up any calls. In this situation, what do I do? I don't have any PDC cheque, I have the company's LPO copy & Inv-do!

Q: Dear Sirs, I have a Reseller Contract which was signed between us and another party for the sale of 10000 units of Terminal Stations. The final supply was to be done to the India Telecom over a 5-year period at 2,200 units per year, based on a purchase contract signed between us and another company. Based on this agreement, we placed an order for 2200 units at a value of AED12,273,400 (Twelve million two hundred seventy-three thousand four hundred). Based on the purchase order, the other party made a payment of 15% as a deposit and we finalized and handed over, but they didn’t pay since one year. Kindly let us know if you can guide us how we can recover our funds legally. Looking forward to hearing from you at your earliest.

Q: 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?

Q: Dear Sir/Madam, Can I file a payment dispute case against a company I supplied items to while my trade license is frozen but not closed?

Q: Hello, Our customer has gone into liquidation, and we are shipping goods to Saudi Arabia. We have stopped the shipment and requested payment of their outstanding balance. How can we request to take ownership of their goods to sell in order to recover our outstanding invoices? Is this possible in Dubai Courts?

Q: I, as a UAE-based Seller, entered a sales agreement with a KSA-based Buyer. The Buyer defaulted on the LC payment, breaching the contract. The goods are stuck at the port as they need original documents, which I am holding to recover the outstanding balance. They later made a partial payment but now threaten to cash the PBG (UAE bank) I provided if don't release the document. The contract mandates DIAC arbitration but lacks a governing law clause. I need advice on: 1. Which law applies to this dispute? 2. Where can I seek an injunction to prevent PBG encashment, given the Buyer’s bad faith and breach? Or should I send a letter to their bank with the brief above? Kindly advise.

An interview-format article covering the topic of how to increase chances of getting your invoices paid in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

An interview-format article covering the topic of payment orders in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

An interview-format article covering the topic of getting paid for small businesses in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.

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.

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 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 law On Evidence in Civil and Commercial Transactions (Law of Evidence) govern evidence in civil and commercial disputes in the UAE.