In the United Arab Emirates, a claim to annul a sale contract due to fraud or deception is a legal means of protecting parties harmed by contracts concluded through unlawful means, such as the use of deception, misrepresentation, or lying during the conclusion of the contract. The UAE Civil Code provides protection to the aggrieved party by allowing the opportunity to file a claim to annul the contract upon proof of fraud or deception.
The UAE has established strict laws regarding sales contracts to prevent their invalidity. One of the reasons for invalidity is the use of fraud and deception to complete the sale. How can a lawsuit be filed to invalidate a sales contract due to fraud and deception in the UAE, and what are the requirements? This is what we will learn in today’s article.
Conditions for filing a lawsuit to invalidate a contract due to fraud and deception
To file a lawsuit to invalidate a sales contract due to fraud and deception, the following conditions must be met:
Existence of a sales contract: There must be a legal and notarized sales contract between the two parties.
Proof of fraud or deception: The injured party must prove that the other party committed fraudulent acts with the intent to deceive.
Examples of fraud:
- Hiding defects in the sale.
- Providing false or misleading information about the product or property.
- Hiding essential information that influences the purchase decision.
Legal proof: The injured party must provide legal evidence proving the fraud or deception (such as witnesses, documents, or expert reports).
   Damage: It must be proven that the injured party has suffered actual damage as a result of such fraud or deception.
Timeframe: The lawsuit must be filed within 3 years of discovering the fraud or deception (according to Article 480 of the UAE Civil Code).
Conditions for a lawsuit to invalidate a sales contract due to fraud and deception in the UAE
The conditions for filing a lawsuit to invalidate a sales contract due to fraud and deception are similar to the conditions for filing a civil lawsuit in many points. We mention the following conditions for filing a lawsuit to invalidate a sales contract:
Condition of the attribute: That is, the lawsuit must be filed by the contracting party who was the victim of fraud, or his legal representative, because if it is filed by someone other than the right holder, the lawsuit will be rejected for lack of standing.
Interest condition: If the fraud is simple and does not harm the contractor who was subjected to the fraud, it leads to the claim being rejected.
Eligibility requirement: The person who has been defrauded must have the legal capacity to file a lawsuit. If the person is a minor or under guardianship, the lawsuit must be filed by his guardian, agent, or trustee.
Method of proof: Fraud must be proven using all available means of proof, including written and digital evidence, witness statements, and the defendant’s admission of the validity of the claim.
Preparing the summons: Including all required data and papers related to the contract that is the subject of the lawsuit.
The seriousness of the fraud: The fraud in the contract must be of a degree of seriousness, meaning that were it not for this fraud or deception, the contract would not have been concluded.
A lawsuit to invalidate a sales contract due to fraud and deception in the UAE
File a lawsuit to terminate the contract due to fraud and deception
If the dispute surrounding the contract cannot be resolved amicably, the aggrieved party may resort to the courts to recover their rights by filing a lawsuit to invalidate the sale contract on the grounds of fraud and deception in the UAE. They must follow a number of steps, including:
- Writing the lawsuit in accordance with the Civil Procedure Code.
- The claim must include the name of the court to which the lawsuit is being filed, information about the plaintiff and defendant, a statement of the subject of the lawsuit, an explanation of the facts of the lawsuit, and the submission of the requests at the end of the claim, and finally the signature of the plaintiff or his legal representative.
- Attach this document to the necessary legal documents proving the fraud and deception, such as the concluded sales contract and other documents proving the negotiations that took place prior to the contract date.
- Filing the lawsuit with the competent court and paying the fees related to this lawsuit. If the lawsuit is filed with an incompetent court, the lawsuit will be dismissed for lack of jurisdiction.
- After completing the documents and fees, the case is registered in the court records and a date for the first session is given.
- The defendant shall be notified of the hearing date and shall have the right to present his defense by submitting a memorandum in which he presents the legal arguments in his possession before the date set for the first hearing.
- The plaintiff must follow the progress of the case and attend the sessions, otherwise the court will decide to dismiss the case unless the defendant requests to continue the case due to his submission of requests or the case is ready for resolution.
- After the parties to the lawsuit present all defenses and prove the validity of the claim with all means of evidence, the court issues its decision.
The form of a lawsuit to invalidate a sales contract due to fraud and deception in the UAE is as follows:
To the Honorable Civil Court in…………
Plaintiff: …….. holds ID card No. ……… residing in ………. His representative is Attorney ……… pursuant to Legal Agency No. ………. issued by ……….
Defendant: ………… holds ID card number ……….. residing in ……….
Subject of the lawsuit: A lawsuit to invalidate the sales contract and request its cancellation.
Facts of the case
On the date of ………. the sale contract for property No. …….. located in the district of………… was signed between the plaintiff………… and the defendant…………. When the plaintiff completed the procedures for transferring the property to its ownership in the legal records, it was discovered that the property was owned by someone else and that the seller had deceived the buyer with incorrect documents and descriptions.
Given that Article 490 of the Civil Transactions Law stipulates that the item sold must be known to the buyer in a manner that negates gross ignorance, based on the foregoing, we submit the following request to your esteemed court:
Register the case in the basic registry.
The ruling invalidates the contract concluded between ……….. and ………. based on the reasons and documents mentioned.
Obligating the defendant to return the full amount.
A ruling on appropriate compensation as determined by your court based on the harm suffered by my client.
Obligating the defendant to pay fees, expenses and attorneys’ fees.
Attorney-at-Law Date: –/–/–
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conclusion
A lawsuit to invalidate a sales contract due to fraud and deception in the UAE is an effective legal tool for protecting the rights of affected parties. With strong evidence and appropriate legal representation, rights can be restored and justice served.
