Questions & Answers
Holding the final payments for provided services due to a mistake
While closing the contract and final payments are overdue, the client is claiming that they will not release such overdue payment because of a mistake that my technician did during his performance of activity which falls under our scope of work.
This mistake had cost the client around 100k AED as fine from ADDC plus another 100k AED against modification of the work done by the client after the mistake happened to comply with ADDC requirement.
Does my client have the right to do so, knowing that there is no limit of liability clause in our contract but our contract is under the UAE law?
Please advise.
Dear questioner,
Thanks for keeping in touch.
From the details above, it is not clear how much amount is pending overdue to you.
Also, the scope of work as per the contract and also the penalty clauses are to be gone through.
Even though there is no limit of liability clause, the terms of the agreement are to be checked before giving a detailed reply to this question.
Please feel free to contact me on 0556635526 or WhatsApp me at 0508575526 or email me at ar@alnassaradvocates.com if you require any further assistance or clarification.
Regards,
Anitha Rajeev
