Questions & Answers
Questions & Answers
3 available 3 • View allStopping the payment of a security cheque

7
Q: Hi.
We have issued a security cheque against an order and we have delivered and collected the payment against the order.
But now the customer is not ready to give our security cheque without reason.
How can we stop the cheque in the bank?
Please advise


Nov 8, 2018
6253
Consequences of a bounced security cheque issued to bail a friend
1
Q: My husband wrote a guarantee cheque for a friend who was in jail. He had a reputable business and my husband assumed upon his release his friend would be able to access his frozen account and make repayments.
The so-called friend ran away and left my husband with a bounced cheque of AED 1048000. There is a big case against his ex-friend from many he has defrauded, it has been in the newspapers and affected many innocent people.
The cheque has obviously bounced and a case has been filed with the police. We never took a penny of this money and have all our statements to prove this.
Unfortunately, the payee doesn't care and wants money regardless, even though he knows the culprit has run away.
1. What is the process?
2. What are our options?
3. Could we get away with a fine?
4. If we present all the people who have been defrauded by this ex-friend to the court and our bank statements as proof, do we have a chance?
5. Will he go to jail and what kind of sentence is likely?

Jul 26, 2018
966
Filing civil case to recover security cheque for unjust enrichment
1
Q: I have signed a contract with a contractor to carry out AC works where the owner of the company has paid me cash with a payment voucher and he asked to provide a security deposit cheque.
My scope of work was supposed to be finished in 45 days but delayed due to civil works for more than 4 months, in the interim we have continued to work and finished the works and started the equipment.
Our final bill is linked with authority approvals which cannot be accomplished without civil works. I have asked the contractor to pay the VAT and amount for variation which he failed to do so.
After 4 months the contractor called to resume the works where I have rejected as he failed to fulfil the contractual obligations. I've written a letter to the owner that I will take legal action if he misuses the cheque.
The owner deposited my security cheque and filed a case. If I file a civil case against the owner, am I entitled to get losses incurred due to damaging my relation with the bank and other legal expenses?

Nov 10, 2018
614
Legal blog
1 available 1 • View allBounced Cheques in the UAE: What You Need to Know in 2024 291
In the UAE, cheque bounce is a very frequent problem faced by people during their span in the country. It is covered under the purview of Commercial Transactions Law, and legal implications/penalties can be financially severe and daunting for more “serious” offenses. Bounced cheque issues may arise in a variety of commercial transactions, including but not limited to, companies’ exchanges, bank loans, property rents or purchases, and individual transactions.
Oct 15, 2024
222634
Laws & Regulations
4 available 4 • 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
47950
Federal Law No. (18) of 1993 Issuing the Commercial Transactions Law 19
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
33060
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
3550
Federal Decree-Law No. (31) of 2021 Promulgating the Crimes and Penalties Law 0
The provisions of this Federal Decree-Law No. (31) of 2021 Promulgating the Crimes and Penalties Law, known as the "New UAE Penal Code", governs criminal actions in the United Arab Emirates. The New Penal Code repeals the previous UAE Penal Code (Federal Law No. (3) of 1987 Promulgating the Penal Code).
Sep 20, 2021
504

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Legal remedy for non-compete suit filed by ex-employer 1
Hi,
I have signed a non-compete clause (under unlimited contract) with my previous company. After working for 8 years with them, they terminated me.
I have now joined a competitor considering there was no other job available in the market. Now after 7 months, my previous company has filed a legal suit asking for compensation considering I am in a similar role and in the same territory.
What is the available remedy?
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Eligibility for 3 months salary benefit upon termination for redundancy 16
Hi,
I worked in my company for 8 years and was terminated on the same day specifying redundancy as the reason. The company paid me all the dues (1 month notice period salary, gratuity, and unpaid leave salary).
I want to know if I am eligible for 3 months termination salary benefit considering none of the other employees were terminated?
Oct 31, 2019
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