DCC 402/2004
Type
Case
Court
Dubai Court of Cassation
Jurisdiction
Dubai
Taxonomy
Civil Courts, Enforcement of Judgments, Litigation Procedure & Practice, Commercial Contracts
Copyright
LexisNexis
Decision date
28 Mar 2005
Catchwords
Agency contract – Annulled – Entitlement – Delay fine – Penalty clause – Debtor – Burden of proof – Non-existence – Dependent – Contract cancellation – Contested judgment – Compensation – Violates the law – Cassation
The agency contract is considered to be a contract that may be annulled. The agreement of entitlement in the contract to a delay fine is deemed a penalty clause, in which the debtor bears the burden of proof of its non-existence. The penalty clause is dependent on the original contract and fails as a result of the contract cancellation. The contested judgment which dissolved the contract agreement and its application of the penalty clause to estimate compensation instead of correctly applying the law is deemed violation of the law and necessitates cassation.
Pursuant to the perusal of the documents, and the reading of the summary report, and after deliberation.
Whereas the cassation has fulfilled all formal conditions.