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UAE

Refusal to pay for the job done

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?
Questions & Answers
UAE

Can consumer be sued for a negative review?

Q: Hi, I just wanted clarification on something. I recently wrote to a clinic where I had a bad experience - in a private email - to complain about the service. The clinic has now threatened me with breach of Federal Law. I haven`t published anything on social media but did say in my email that I wouldn`t recommend the clinic on platforms where families chat about which clinic they should choose for IVF. How much in trouble am I with the Clinic? What can they do? I was just expressing my personal experience! Thank you.
Questions & Answers
UAE

Estimated timeline for obtaining a final judgment

Q: How long does it take to get an enforceable judgment before the courts of Abu Dhabi?
Questions & Answers
Bahrain

Indemnity calculation for an employee in Kingdom of Bahrain

Q: Indemnity calculation in Bahrain for terminated employee on an indefinite employment contract.
Questions & Answers
UAE

Termination of tenancy due to hidden fault of the premises

Q: Hi, I only recently rented a small 1 BR in Mirdiff Ghoroob gated community. However, it has been brought to my attention a constant presence of unbearable sewage smell at night time which disturbs my sleep almost every night. I spoke to the property and maintenance office and only realised that the stench is not caused inside the community but by the closeness of the sewage plant treatment. I am afraid I cannot get used to living in such an environment especially since I suffer from respiratory allergies. I already filed a complaint to the municipality but nobody came to resolve it. I feel I am stuck and doomed because the agency failed to mention this ongoing problem which was unfair and unethical. Can you please help? Thank you. Lana
Questions & Answers
UAE

Shareholder's agreement

Q: We have a shareholder`s agreement that we need to change completley and restructure our business, is this something you can help with?
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Questions & Answers
Bahrain

Non-compete clause and new employment

Q: In my letter of intent one clause mentioned that I cannot work for the competitor for next one year. I worked from 2014 till 2016. But the company did not sign the new contract. The contract is for two years, the first contract expired in March 2014. I need to ask if my previous company can make a problem for me if I join any competitor. Please advise.
Questions & Answers
UAE

How to check if there are any open cases against the person in the UAE

Q: Hi, My friend owns a business in Dubai but four months ago he left to Pakistan due to an urgent matter. Now he wants to come back here but he had some unsettled matters here and he just wants to confirm if there is any legal case or complaint registered against his name. Just to avoid any surprises on arrival in UAE like being detained at the airport etc. He wants to be prepared.
Questions & Answers
UAE

Personal guarantee and liability for debts

Q: 1. Can a non-resident person give a personal guarantee for bank debt in the UAE? 2. Is a son liable for a debt of his father?  
Questions & Answers
UAE

Can I be caught in GCC countries for my UAE bank debts?

Q: I have a loan with UAE bank: 1 credit card outstanding value is 22,000 AED & one personal loan around 85,000 AED. I lost my job on Jun 2016. From there I unable to pay my EMI (6 months). Bank is not agreeing for settlement plan as per my request. Now they are saying they are going to file a case.Now my doubt, if I get a job in GCC other than UAE, will police catch me in the airport in any GCC? OR arrest is possible only if they file a case in that particular country?Please, advise.
Questions & Answers
UAE

Refund of security deposit upon tenancy termination

Q: Good Day, I would like to know, unfortunately, I had to cancel my tenancy contract before the expiry date, now my penalty was 2-month rent, which I accepted, but it then came to my knowledge that there was already new tenants lined up to move in 2 days after I have vacated. They also want to give me back 200 AED of 3000 AED deposit, for damages which were already there when I moved in and notified them about, but the person I dealt with, is no longer with them, and they "can`t find" the email I have sent to them. What is the best way to go about this? I feel like they are completely taking advantage.
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Questions & Answers
UAE

Final settlement upon termination of employment

Q: When I resign, my company will give me a written agreement to pay me on a monthly basis until paid up. My concern is that what grounds will I have to stand on should they fail to honour their agreement and I am not in the UAE anymore. I am at the age where alternative employment is difficult if not impossible here or back home. Their promise is all I will have to survive on should I leave. The company owes me outstanding salary since last year and together with the gratuity is in excess of 300,000. I know they will offer to pay me monthly instalments of 8000/month. Should I register a case with the Labour Department although they will give me a written agreement and before they cancel my Labour Card? Thank you kindly.
Questions & Answers
UAE

How to renew your tenancy if you can't reach the landlord

Q: I rent an apartment in Dubai Marina and its time for tenancy renewal, but I can’t reach my landlord for three months already. What can I do in this situation?
Questions & Answers
UAE

Crowd funding in the UAE

Q: I am a college student in the UAE. I have been thinking about developing a free-to-play video game that will be freely distributed on the internet, anonymously. I have also thought about following many such creators` paths in opening an account at Patreon.com to accept crowdfunding and donations.What legal ramifications could such actions have?
Questions & Answers
UAE

Employment termination & Cancellation of residence visas

Q: I was recently terminated from work. My employment contract with the company, signed in March 2012, states clearly: on the resignation date of your employment, the employee shall remain under the work and residency visa of the company for a period of 3 months effective from the date of resignation or termination. However, the company informed me that the recent changes to the law in the UAE since my contract was signed states that cancellation of employment visa and residency should be done within one month and that those changes supersede the wording in my contract. Is this true? Or the wording in my contract is still valid? Please advise.
Questions & Answers
UAE

Liquidation of a company in Ajman Free Zone

Q: Dear Sir/ Madam, I am a 50% shareholder in an Ajman Free Zone Company. I would like to cancel the licence and close the company as it`s contracts have expired. The company has no outstanding debts and owes no money to any third parties. However, it does have some small internal loans taken by directors. In this instance, can the company be closed if an arrangement between directors is agreed to and formally documented?