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: We had rented out 2 x ISO tank containers to a local company in Dubai, who used it for transportation and storage of White Spirit and/or Ethanol. The rent rate was US$13/tank/day and they stopped paying for many months. After repeated emails, and constant pressure and personal visits, they returned the ISO tanks in damaged condition. Now the total unpaid rent, transportation cost and damage cost, is approx. AED 25,000 total. What is my legal remedy? What are my options? Will it be worth it to litigate? What is your advice? Thanks.

Q: Good morning Sir. I have export perishables to Al Aweer market, and this particular gentleman paid for the first few orders but for the last few he didn't pay. He said tomorrow and it has never come. I have all the documents and I filed a complaint with Dubai police, and I have the complaint numbers as well. Now, my finances are very bad. If you could recover my money from this man, it will be a great help for my family. I trust Dubai people and this is what happened to me. If you could get your professional fee and get me the balance, then we can reach an agreement.

Q: Q1- A loan agreement was signed between P1 and P2 for a fund to be put in a trading as a favour from P2 to P1. P2 changed his mind and did not release the fund. Trading proceeded with another fund and the return during the agreed period was substantial. Is P2 liable to P1 for the earnings which could have been realized? Q2- A trading fund was in operation based on an agreement between P1 and P2. P1 owed P2 $X to be paid over 18 months. P1 funded the P2 account for the entire loan plus interest. P2 allowed P1 to trade with the fund as long as the loan liability is covered and loan payment is paid from proceeds, it was agreed that additional profit over the loan payments can be withdrawn by P1. P2 had full control over the funds but not the trading. P2 changed his mind and added 20% buffer to remain in the account as added security. The trading hit a downturn and fund got liquidated. Is P2 liable for the loss of the 20% additional buffer which he required to keep in the trading fund?

Q: A company has two partners P1 & P2, and P2 partner's visa expired. In order to give the complete ownership to P1, P1 is hesitating to provide the money for the share by giving excuses of liabilities. P1 owns 75% share and P2 owns 25% legally approved by the government, but with an understanding between the partners, they came up with another contract by P2 having only 10% with no liability. The only issue is that this contract is not government approved, is it still valid? Now, P1 is trying to acquire the whole company by not allowing P2 to renew the visa. What should be done? Should we file a case? If so, what would be the procedure?

Q: A Sharjah based firm for an Indian issued a proforma invoice and collected on 16.12.2016. But he neither supplied scrap material nor is he responding to my client's calls. I am an Indian lawyer. My client is based in Chennai India. what is the procedure?

Q: My Indian business partner fled after misusing signatory authority in 2009. Can I sue him for the USD 250K he illegally transferred to his personal account?

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?

An interview-format article covering the topic of shareholder disputes in the UAE and pre-emptive measure to be considered. 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.