Questions & Answers
Questions & Answers
8 available 8 • View allBreach of agreement by a business partner in the UAE
Q: Dear Sir/Madam,
Warm greetings from Ukraine.
Our company provided services to UAE company last year according to partnership agreement that was signed by both parties. However we didn't receive payment till now.
Company representatives are not providing any specific information regarding terms of payment and we are not sure they will pay at all.
Would you be so kind to advise the best and cheapest legal way in order to resolve payment issue?
Thank you very much in advance.
Jul 25, 2017
1980
Partnership withdrawal and claiming the paid money
Q: I opened a bar business in RAK with a Lebanese partner. I financed it with AED 280,000 and he does the operation.
Unfortunately, I withdrew my partnership as I cannot provide more money as he asked. We agreed on making an agreement that I will cancel my partnership and he will pay me the said amount every month by AED 5,000.
The problem is that he didn't pay until now and its been 2 years. Every time I ask him he is saying no money yet, till he told me that we need to re-calculate the AED 280,000. He didn't meet me to re-calculate.
Then, he moved the bar from the rooftop to the 4th floor and it's much bigger. So, he is saying that the bar is a different one already and we are not talking about the same bar anymore.
I have an agreement signed, that if he gets a partner, he will pay me as well as if he sells the bar.
Do I have any chances of getting the money back?
Jan 18, 2018
1407
Protection of investment in LLC business
Q: I did partnership in LLC business with one Indian last year. Recently I asked him to return my investment as he was not giving any reward of my investment. He agreed to return it. But now he is absconding because he owes some amount to an old partner who filed a police case against him.
What should I do now to protect my investment or to avoid further loss?
My 2nd question is: which percentage of shares will apply in case of loss? Trade license shows 15% my shares.
Jul 4, 2017
1110
Withdrawal request of funds not processed by a trading company
Q: From my advice, one of my clients put money in a trading company nearly 1M $ in his own account and in his 3 more sub accounts.
Given the fact that a Muslim trader is forbidden by his religion to charge or earn interest, well, the solution to this dilemma is to trade the forex market with a swap free trading account.
My client put money and started trading in forex. During these 4 months of trading, he had many deposits and withdrawal and during this period he lost 800$ hundred thousand in his trading style.
After 4 months, when the client gave a withdrawal request of 400K $ in one a/c and 300k $ in his another a/c which all of total 700K$ withdrawal on 16th May 2019.
They said in process and till now it's 29th May 2019, and my client has not received any money to his a/c.
May 29, 2019
694
The responsibility of a partner in a limited liability company
Q: Hi Sir,
I am a partner and I have a partner visa in one of the courier companies in Dubai. Currently, I stay outside Dubai in a GCC country, I hold a 25% share in the company.
We are 4 partners; 2 inside Dubai and 2 outside. The company was established in 2019; it has been 1 year now and the partners in Dubai are showing a big loss.
They took a loan from some investors without our concern and they have a big credit from the customers. They utilized the customers' money.
Now, I need to get out of this mess as I was not involved and they were not sharing any updated records.
Both Dubai partners are MD in the Memo. I am afraid to come to Dubai as they have asked me to leave my share after paying the loss they have to some other investors.
I am afraid to come to Dubai to discuss as the company sponsor is in touch with them.
They can put me in trouble in order to get my share.
Please advise!
Feb 4, 2020
2786
حقوق الأطراف في عقد المضاربة من حيث الربح والخسارة
س: هل يتحمل كلا الطرفين، في حال وجود عقد مضاربة بينهما على مبلغ مالي، الربح والخسارة أم يعتبر دينًا على أحدهما في حال الخسارة؟
Apr 13, 2020
7035
Breaching a business partnership agreement
Q: It is a business partnership agreement.
Before we start, we agreed that I will go to finance everything even the renewal of his car.
The only contribution he can do is marketing and client talks. His car has been renewed with all my money. Since we don't have the license at that time, I agreed to name the insurance with his wife's name.
Then, as we got the license and operated, but the sale was not enough, I tried my very best to sustain all the financial needs until I got drained already.
They were staying in my flat as what he offered for the value of the car was 50/50 share. He estimated the value and sold his car to me at 8K.
They stayed in my flat for four months without paying anything. So what I did, I charged their bills in the 8K equal value of the car until my balance completely clear out because of the charges.
Now, this guy suddenly withdrew his business partnership with me. And even took the car without giving me at least 50% of the value of it.
What should I do?
Dec 14, 2020
396
A partner signed an affidavit that his share is a loan from his partner. How to get it back?
Q: Dear sir/madam,
I purchased a villa along with my business partner. The title deed says that we are equal partners in that villa.
Later on, the partner signed an affidavit (not notarized) stating that his share of the villa was actually a loan from me, and he would return his share of the villa and also pay 5% interest from the date of the title deed whenever I ask for it.
Now, I want my partner to give me his share of the villa but he refuses. So I sent a legal notice. The notice period has expired.
Q1. Can I file a performance order AMR AL ADA for this issue since the debt is unconditionally confirmed in writing (or is a performance order only possible for commercial contracts and money, not possible for a property)?
Q2. If it's possible to have a performance order case, can I also ask for the agreed interest from the date that I purchased the villa?
Mar 17, 2022
315
Legal blog
1 available 1 • View allThe Legal Alternatives of Bankruptcy in the UAE Legislation
The UAE continues to strive to modernize its laws and create more flexibility in meeting the needs and requirements of investors and businessmen and elevate its economy to the highest levels of growth and development.
Apr 9, 2019
2445
Laws & Regulations
3 available 3 • View allFederal Law No. (5) of 1985 On the Civil Transactions Law of the United Arab Emirates
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
148348
Federal Law No. (18) of 1993 Issuing the Commercial Transactions Law
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
33003
Federal Law No. (11) of 1992 Concerning Issuance of the Civil Procedures Code
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
75284
Other answers by
28 28 answers •
View allLegal requirements for starting business by a minor in the UAE
I am planning to start my business in retail. I am a 16-year-old Emirati national and I have full approval from my parents.
What legal requirements must I obtain and what laws should I follow?
May 3, 2020
3412
Using the trade license of an existing company to start business
If I am looking to use the general trading license of an existing individual to start my business and creating my company under his license, then what are the things I should watch out for to protect myself?
Oct 3, 2018
1589
Seeking legal assistance for drafting a Merchant Agreement
I am seeking a law firm/agency in Dubai that can provide the services to draft a Merchant Agreement template contractually, according to our company business model.
Oct 3, 2018
721
Documents required for the registration of a sole trader
How to register a sole trader? What documents are needed?
Oct 3, 2018
497
Non-payment of share value and claiming the shares back
My company is located in Dubai as an LLC. We have two shareholders,
1. UAE national shareholder with 95%
2. A foreign shareholder with 5%
The UAE national shareholder transferred this 5% shares to the foreign shareholder through a share sales agreement, which was notarized at the notary public in Dubai and submitted it to the DED to amend the trade license etc. This happened in 2014.
But till this date, the foreign shareholder did not pay the value of 5% shares to the UAE national shareholder or to the company.
Also, the foreign shareholder was not actively involved with the company's operation and as per Article 17 of the Commercial Companies Law:
"2. The partner may not contribute in work rendered unless he is a joint partner. The contribution of the partner may not consist of his having reputation or influence."
Under these circumstances, is it possible for the UAE national shareholder to request from the court to cancel the 5% shares of the foreign shareholder and transfer back to him?
Oct 4, 2018
1225
Get quotes from lawyers
Find the right lawyer for your legal needs.
Submit your request and get multiple
competitive offers from
qualified lawyers.
Popular Q&A
View all Looking for something else?
Ask for advice from a lawyer