Questions & Answers
Questions & Answers
4 available 4 • View allLiability of the guarantor if the person who took a bank loan stops paying
2
Q: Please help me.
I signed as a guarantor for my friend in her bank loan and they asked me for a security cheque.
My friend was on a partner visa and now she is cancelled and cannot pay anymore. I gave my cheque already to the bank and signed as guarantor.
Is it possible that the bank can give me a case if my cheque is zero?
My friend is still here on a visit visa now. She doesn't pay her loan anymore. I am scared that I have a travel ban and case now.
Please give me clarification.

Oct 11, 2021
505
What are the consequences of unpaid debt on the guarantor?

1
Q: I guaranteed a bank loan for my company although I'm not a shareholder. The owner guaranteed too but he resides in South Africa.
The South African business owes the UAE business AED 850k and the bank loan outstanding is AED 880k. I am owed AED 1000k in unpaid wages/personal loans to the company.
Can the bank come after me for loan settlement (payments are currently up to date) if there is a default even though I'm owed more than they are?


Aug 18, 2021
419
Liability of a guarantor after the debtor fled the country

12
Q: Hello
I signed as a guarantor for a person's company loan for AED 500,000.
The person is no longer in the country and now there is a civil case on me.
What is the penalty or jail term I would be looking at?
If I go through the jail term, is the outstanding amount is also cleared?


Oct 9, 2018
7514
My friend is willing to act as a guarantor to lift my travel ban. Is he eligible?




2
Q: Good morning, everyone!
I have a cheque execution case with a travel ban (although the ban doesn't show in the DC case data). I'm a salaried employee with a monthly income of 10,000.
My best friend, who runs a business in Dubai, is willing to act as a guarantor for my travel. Is he eligible for this role, or should I find someone who is also salaried, like me?
I don't have any blood relatives here. How long does the approval process usually take?





Feb 14, 2024
1175
Legal blog
1 available 1 • View allFailing to Honour Bounced Cheques in Loans and Other Transactions 8
An interview-format article covering the topic of loans and bounced cheques in the UAE. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW.
Jan 15, 2020
7111
Laws & Regulations
3 available 3 • View allFederal Law No. (3) of 1987 Promulgating the Penal Code 29
This Law promulgates the Federal Penal Code (Criminal Law) of the United Arab Emirates. Crimes and chastisement punishments shall be determined in accordance with the provisions of this Law and other penal codes.
Dec 8, 1987
47948
Federal 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
148518
Federal Decree Law No. (14) of 2020 Amending Certain Provisions of the Federal Law No. (18) of 1993 Concerning the Commercial Transactions Law 4
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.
Sep 27, 2020
3549

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We received a cheque which has now bounced. We have tried for over a month and a half now to get a new cheque from the person, and every day he says the next day.
We need the money now. We have been to the police station, and they said they can not do anything as the reason the cheque bounced is "Insufficient funds."
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Can my old employer sue me for a non-compete clause that's only in the offer letter? 0
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After 11 months of work, how many leave days is an employee entitled to? 0
Hello,
I want to inquire regarding my leave privileges. I am now 11 months in my company. How many leaves am I privileged to?
Based on Decree-Law No. 33 of 2021 regulating labour relations and its executive regulations, you are entitled to a paid weekly rest for not less than one day, as specified in the work contract or the work regulation.
The Council of Ministers may increase the weekly rest day stipulated in this article. The Decree-Law and its executive regulations also stipulate that you are entitled to an annual leave with full pay as follows:
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Now my question is: do I have 22 days I can use? Can someone explain to me in detail?
Thank you!
Apr 28, 2025
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