DCC 128/2012

This case involved the cancellation of a property sale contract where it was stated both the property had not been delivered and instalment payments had not been made. It also looked at whether administrative decisions had a res judicata effect.

Key Legal Questions

The Manner of terminating a bilateral agreement

The right of a party to a sale agreement to terminate a contract for failure to meet obligations.

Background Facts

The respondent filed claim against the appellant before the Court of First instance in Dubai requesting the respondent be ordered to pay 2,261,000 AED plus 9% legal interest from the date of filing the claim until the due payment. The claim was filed on the basis that on 9/11/2008, the respondent had entered into an agreement with the appellant on the purchase of real estate units in Dubai for 11,600,402 AED. The respondent had paid 2,261,060 AED as a down payment. However, up until that point the appellant had not provided the sale and purchase agreement, had not deposited the down payment in the escrow account and had failed to register the units in the name of the respondent in the real estate registry.