DCC 54/2003
Type
Case
Court
Dubai Court of Cassation
Jurisdiction
Dubai
Taxonomy
General Commercial Law
Copyright
LexisNexis
Decision date
10 May 2003
Catchwords
Responsibility for debts – Third party –Sole proprietorship
The original dispute involved a debt which was the result of a bounced cheque. The key point was whether the pharmacy owner or an investor who ran the business was responsible for the debt. The court looked at a dispute over unpaid amounts claimed to be due from a pharmacy owner. The owner of a sole proprietorship (named on the trade license) would be personally liable for all business obligations unless it could be proved the creditor was aware that the business was rented out to an investor. In this situation, the investor will be liable for any obligations owed to the creditor.
Background