Questions & Answers
What to do if the partner you add on your license changes the terms without your consent?
My wife has a license in Dubai. Later we took one partner for 50% of her license.
My wife signed the MOU in Amer Center without reading the changes made by him in terms that were not agreed upon.
Later when we checked the copy of the MOU, we found that he had removed her name as a manager and put his name.
He mentioned 50% shareholder for each partner in the company but in profit and loss, he mentioned 75% for him and 25% for her and bank account authority also he took solely.
We asked him to change the terms as we never discussed or agreed on those terms. But he has now full control of the license and is not ready to change the MOU terms.
Is there any legal way to compel him to change MOU terms?
Hello,
If the other partner unilaterally made changes to the MOU after your wife’s signature (and without her consent or knowledge), this could constitute a breach of contract or fraud.
This is particularly relevant if the changes materially alter the business structure, such as shifting management authority or altering profit-sharing agreements.
If your wife did not fully understand or agree to the terms of the MOU at the time of signing, her consent may not have been valid.
This could mean that the agreement is not legally binding or enforceable. If the changes to the MOU removed your wife as the manager and gave full managerial authority to the other partner, this could violate the rights of a co-owner.
In Dubai, partnerships and LLCs (Limited Liability Companies) require the management structure to be registered with the relevant authorities, and unilateral changes could lead to a dispute over the company's control.
For a detailed discussion, kindly share your Whatsapp number.
Dear Sir,
Please provide us with the memorandum of the company's articles of association so we can understand how you signed the contract without noticing any changes, and whether there is any suspicion of fraud from the other partner.
If the matter becomes complicated, we can take legal action against the partner, accusing them of fraud and misrepresentation for making amendments without your prior consent.
Thank you for reaching out regarding the situation involving your wife's business partnership.
It's concerning that the Memorandum of Understanding (MOU) was altered without mutual consent, leading to unfavorable terms for your wife.
In the UAE, an MOU can be legally binding if it clearly outlines the parties' intentions and obligations. Given that your wife signed the MOU without fully understanding its contents, there may be grounds to challenge its validity, especially if it was signed under misrepresentation or without informed consent.
To address this issue:
Review the MOU: Carefully examine the document to identify clauses that were altered or added without agreement.
Gather Evidence: Collect any communications or documents that demonstrate the original terms discussed and any discrepancies in the final MOU.
Seek Legal Counsel: Consult with a legal professional experienced in UAE commercial law to assess the MOU's enforceability and explore options to contest its terms.
Initiate Legal Action: If an amicable resolution isn't possible, your lawyer can guide you through legal proceedings to challenge the MOU and seek a fair agreement.
It's crucial to act promptly to protect your wife's rights and interests in the business.
I would be glad to assist you further in this matter. Please feel free to contact me via WhatsApp or phone to discuss your case in detail and explore the best course of action.
Best regards,
Suhail Rana
If your spouse signs a Memorandum of Understanding (MoU) that includes terms that were not previously agreed upon, such as amending profit and loss ratios, changing the manager, and authorizing the bank account, the following legal steps can be taken:
Review legal documents:
All company-related documents must be verified, including the articles of association, the MoU, and any amendments made.
Verify the authenticity of the signature:
If the MoU was signed without reading or fully understanding the terms, the authenticity of the signature can be challenged on the grounds of duress or misleading.
Amicable negotiation:
Attempt to negotiate with the partner to review and amend the terms in line with the original agreements.
Recourse to the competent authorities:
If an amicable solution is not reached, a complaint can be filed with the Dubai Department of Economic Development (DED) to consider the dispute.
Legal procedures:
If the issue is not resolved through the competent authorities, a lawsuit can be filed before the competent courts to challenge the MoU and demand that it be returned to the agreed terms.
Welcome.
Yes, you can compel your partner to modify the MOU by filing a legal case if the changes he made are illegal or were not agreed upon. Alternatively, negotiation through legal mediation could help resolve the dispute.
Our office specializes in commercial disputes and can assist you in taking the necessary legal steps. To book a legal consultation, you can contact us through the website or schedule an appointment.
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We are honored to provide you with specialized legal support for your case.
If you have any further inquiries regarding your matter, we would be happy to assist you.
To handle this situation:
1. Review the MOU: Understand all terms, especially around modifications or disputes.
2. **Gather Documentation**: Collect emails and notes that support your wife's understanding of the agreement.
3. **Consult a Lawyer**: Get advice from a lawyer experienced in UAE commercial law.
4. Negotiate: Try to discuss the issue directly with the partner for a resolution.
5. Consider Legal Action: If negotiations fail, follow your lawyer's advice on potential legal steps.
6. Seek an Injunction: Your lawyer may suggest court action to prevent the partner from taking control until it's resolved.
7. Contact Regulatory Authorities: Reach out to Dubai's business regulatory body for assistance with the dispute.
Act quickly and get legal help to protect your rights.
Dear Questioner,
Thanks for your inquiry.
According to UAE law, any changes made to a contract or agreement must be agreed upon by all parties involved.
If your wife did not agree to the changes made by the partner, then the changes are not valid and the original terms of the agreement should be followed.
You can try to resolve the issue through mediation or arbitration, where a neutral third party can help facilitate a resolution between you and the partner.
If this does not work, you may need to seek legal assistance to enforce the original terms of the agreement.
It is important to note that signing a document without reading it or understanding its contents can have legal consequences.
It is always advisable to carefully review any document before signing it, especially when it involves important matters such as business partnerships.
In the future, it is important to clearly communicate and document any changes or agreements made in a partnership to avoid similar issues.
It is also advisable to seek legal advice before signing any important documents to ensure that your rights and interests are protected.
Kindly do not hesitate to contact us by phone or email for further guidance.
Greetings
