Q: My firm (based in the UK) is owed $57,500 for providing materials and event management services for a Dubai-based business called International Premier Tennis League. They have failed to pay my invoice or any of the individual skilled craftsmen and technicians I recommended they hired to deliver the events which we delivered in December 2016. What I'd like to do is recover my money and possibly make sure that the business behaviour of the IPTL management team is not repeated (it must be a crime to commit business services to a project without ever having the means to pay for it). Any help or advice appreciated, please.

Q: We are a software company who have signed a contract with a client. The contract expired in Nov. 2015. We continued to work with the client on the project. We received 5 payments out of 7 payments that were due. Each payment was linked to a milestone in the project. Now the client claims the software solution is not up to the quality they want and they want to sue us for damages. In the contract, we have a clause that says they can sue for a maximum of 50% of the money they paid us. However, each of the 5 payments they made were linked to a milestone of the project contract and the payments that were made were approved by their managers who now claim that the software quality has an issue. Are they entitled to sue for damages? How can we best protect ourselves?

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: We want legal advice to take legal action against an Abu Dhabi based company. We are a USA based C-type Corporation, registered since 2004 in the USA, and paying taxes and contributing to the growth of the country. On 14/05/2010, we entered into a channel partner agreement with a medical supplies company in Abu Dhabi. The medical supplies company didn’t stop at this point and it gained access to our company intellectual property through gainfully employing our employees. The medical supplies company made several payment defaults and started controlling over the gain of the business that we are deriving from customers based in UAE. We were cheated by the Chairman & Director of the medical supplies company on payment defaults and control over the business gain for AED 3.31 million in Abu Dhabi, UAE.

Q: I have a contract. The client has not paid for the work and does not intend to. Please help, what can be done?

Q: We have been working for a Dubai based company since 2007. Over the years we have sent many invoices and the company has paid the invoices, a lot of times too late but paid. We kept on doing services for this company since we had a good private relationship. The debts kept building up and are today 1.5 million USD. The company signed an "Acknowledgement of Debt Agreement" and accepted that they owe us the money. The company's CPA sent us several Balance Confirmation letters and asked us to confirm the debts. We signed and returned. They have not paid anything since 2015. We do have some signed invoices, signed order of confirmations in regards to the service we supplied and many emails that confirm that we discussed the debts. We think we have a strong case but we consider to sell the claim. Is it legal to trade claims in the UAE? How do you see our case?

Q: I am a resident in the UAE & have rental properties back in the Philippines. One of my tenants is also a UAE resident. We have an existing agreement that is notarized in the Philippines. I have been patient & diplomatic with her but she keeps giving empty promises. Now, she owes me 4 months of rent. I need your advice on what I can do in this case. Can I file a case against her in the UAE? Thank you so much in advance. Regards, H.

Q: Procedures for UK business company to sue Dubai client for money.

س: السلام عليكم، لم تُسدد شركة مبلغ مستحق لي مقابل تقديم خدماتي لها وتُماطل في عدم السداد والوعود لمدة سنتين تقريبًا. ما الإجراء القانوني الذي أستطيع من خلاله استرجاع حقوقي؟ هل يمكنني طلب تعويض مادي لعدم التسديد في الوقت المحدد والمماطلة؟ تتوفر لدي جميع الفواتير والمستندات. مقر الشركة في دبي. شكرًا لكم!

Q: I have a client based out of Al Ain, for whom we had done a project. They have defaulted on payments and have now encashed our guarantee cheques despite us completing the job well. What options do I have to recover our payments?

Q: Respected Madams & Sirs, We are a commercial trading company registered in Dubai - UAE and we import goods and sell them in the local market. Since the end of 2019, we were not in a good financial position and followed by COVID pandemic further declined our business. There is a delay in payment to our international "European" supplier (Euro 18 thousand). Our intention is to clear their payment but we need more time. At present, they are proceeding to take legal action against our company. We wish to know, will there be any action taken against our company as per the UAE Law? Also, what steps we should take to avoid any criminal charges? Thank you.

In view of the fact that the manager is primarily the point of reference for the company in the business streets, he is generally authorized by a power of attorney provided by the shareholders of the company or via the MOA of the company. In certain cases exceeding the powers given to the manager may make the manager, or the LLC itself, liable, depending on the nature of the manager’s actions.

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.

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.

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.

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.