Questions & Answers
Is an MOU still binding after delays due to rain if it contains a force majeure clause?
Dear Sir/Madam,
I signed an MOU on March 22, expecting building completion in April. The MOU had an expiry date of April 22; however, due to rain on April 15, the completion was delayed until May 30, 2024.
I received the BCC on June 17 from the developer and paid for the pre-title deed on the seller's behalf to expedite the process.
Now, I have completed the pre-approval and valuation, but the bank is asking for the handover notice to release the final cheque, which the seller is refusing to share.
The seller claims the MOU has expired, but it includes a force majeure clause. So, is this MOU still binding or not?
Dear Questioner,
It is important to note that the validity of a MOU (Memorandum of Understanding) in the UAE is subject to the terms and conditions stated in the agreement itself.
If the MOU has a force majeure clause, it means that the parties are excused from performing their obligations under the agreement if an unforeseen event, such as rain in this case, occurs.
Dear Questioner,
Thanks for your inquiry!
The answer to this question depends on the specific language and terms of the MOU that was signed.
If the MOU includes a force majeure clause that covers delays due to unforeseen circumstances, such as the rain that caused the delay in building completion, then the MOU may still be binding.
However, if the MOU clearly states that it expires on a certain date and does not mention any exceptions for force majeure events, then it may no longer be binding.
It is important to carefully review the language and terms of the MOU to determine if it is still valid.
If there is any ambiguity or disagreement between the parties, it may be necessary to seek legal advice to resolve the issue.
Please do not hesitate to contact us at [------] for further guidance.
Greetings,
The rain lasted for four days, but it is clear that the project was delayed beyond what can be attributed to force majeure.
This memorandum's force majeure clause is not binding in this case because it was rain, not torrents or floods.
Dear questioner,
Yes, the MOU will still be binding as long as the force majeure clause is in effect and up to the extended month provided accordingly.
If the seller is not providing you with the handover notice, you can file a complaint with DLD or negotiate with him.
If you need our assistance with your matter, please share your WhatsApp number.
Dear Questioner,
Thank you for reaching out with your question regarding the validity of your MOU under the given circumstances.
Given the details you've provided, it seems that the delay in completion due to rain could be considered a force majeure event, which might extend the validity of your MOU beyond the original expiry date of 22nd April.
The force majeure clause typically allows for extensions due to unforeseen circumstances beyond the control of the parties involved.
However, whether this MOU is still binding depends on the specific wording of the force majeure clause and any other relevant terms within the MOU.
The seller's refusal to share the Handover Notice could complicate matters, and this issue needs to be addressed to move forward with the bank's requirements for the final cheque release.
To provide you with precise legal advice and explore your options, I recommend a thorough review of the MOU and all related documents.
I can assist you in interpreting the terms and representing your interests to ensure that your rights are protected.
Please contact me via WhatsApp or phone to discuss your situation in detail and to arrange a consultation.
Dear Questioner,
Based on the situation, it looks like the force majeure clause in the MOU could come into play here. This clause usually covers unforeseen events that make it difficult for one or both parties to meet their obligations under the agreement.
Considering the heavy rain causing a delay in completion, it's possible that this situation qualifies as a force majeure event.
Even though the MOU was supposed to expire on 22nd April, the force majeure clause might allow for an extension of time to finish the building.
It's important to carefully read the specific language of the force majeure clause in the MOU to understand how it applies in this case.
If the force majeure clause does apply, the MOU could still be valid and enforceable, even if it passed the expiry date.
It would be a good idea to seek personal assistance from a legal expert to go over the terms of the MOU and figure out the best way to move forward.
