DCC 57/2007
Type
Case
Court
Dubai Court of Cassation
Jurisdiction
Dubai, United Arab Emirates
Taxonomy
Companies & Corporate Bodies, Taxes & Share Schemes, Agreements, Breach, Discharge & Rescission of Contract, Fraud, Civil Evidence
Copyright
LexisNexis
Decision date
28 May 2007
Catchwords
Company – Shares – Sales Agreement – Contract Rescission – Fraud – Evidence
This case involved whether a contract to sell shares in a company should be rescinded and the evidence of fraud which was needed.
Background
A First Respondent filed suit No. 148/2006 before the Dubai Court of First Instance against an Appellant and Second Respondent), requesting a ruling on the validity and effectiveness of a contract for assignment of shares dated 2-7-2005 between him and the First Defendant (the Appellant) including the assignment of the sale of the First Defendant's shares to the Plaintiff of 75 shares, which was 25% of the capital of a bakery for a total price of 206,000 AED. The Plaintiff paid the amount for the shares under the industrial license No. 557181 issued by the Department of Economic Development of the Government of Dubai.