DCC 193/2003
Type
Case
Court
Dubai Court of Cassation
Jurisdiction
Dubai
Taxonomy
Types of Contract, Sale of Goods, Companies & Corporate Bodies, General Commercial Law, Financial Institutions
Copyright
LexisNexis
Decision date
29 Jun 2003
Catchwords
Contract – Sale of Goods – Successor Company – Documentary Credit – Bank – Subcontract
This case involved goods sold under a contract for which a documentary credit was opened. Key issues included the extent to which a successor of a company would be bound by its contracts and the right to take action against a contract party directly even when there was a documentary credit.
Background
A First Respondent company filed the action No 100/1998 against the Appellant demanding that they pay 116,424 AED with interest.
The plaintiff explained that they agreed with the Defendant that they would supply medical equipment worth 184,324 AED in order to execute a project and in return the Defendant would open a documentary credit for their benefit.
The Defendant opened the account No 3 ILS 96000593 at the Dubai Commercial Bank with the mentioned amount.
The Plaintiff supplied the equipment but the demanded amount remained unpaid.