Dubai Courts hold that delay in handover can trigger termination
Type
E-journal
Date
23 Mar 2016
Jurisdiction
Dubai
Taxonomy
Creation of Contract, Breach, Discharge & Rescission of Contract
Copyright
LexisNexis
Relevant company
Al Tamimi & Company
Analysis
Many off plan development projects have faced serious delays as a result of problems arising from the global financial crisis.
The Dubai Courts have dealt with thousands of cases of off plan purchasers suing developers about the delays and either seeking to get their money back or to get compensation for those delays.
But how long of delay must there be before a purchaser has the right to terminate? In Dubai Court 41/2012 Cassation court the court discussed the time at which the right for the purchaser to seek termination is acquired and the materiality of the breach by the developer in not handing over the unit in the agreed date.
Background
The Claimant bought a villa from the Defendant (a developer) on in 2006 for AED 4 million to be paid in installments. It was agreed in the contract that the villa would be delivered in December 2007.