Question

QUESTION

A) In the UAE based on UAE laws, explain with an example the circumstances under which a buyer is in breach of a sales contract. ( ANSWER IN 7 LINES )

(B) In the UAE based on UAE laws, explain with an example the circumstances under which a seller is in breach of a sales contract ( ANSWER IN 7 LINES)

Answer 1

Let's understand this in a very simpler terms. For say, a buyer and the seller came into a sales agreement under which they both have to abide by certain terms and conditions. As per the agreement, the buyer has bought a piece of land from the seller as per UAE norms by paying a certain amount in advance to the seller and emi or say monthly installments have to be given to the seller till the total amount is paid. If he breaches it then it is considered as a breachment of the contract.

Circumstances under which a buyer can be taken under the breachment of the sales contract are :

1. If the buyer is not paying the monthly installments as mentioned in the contract

2. If he pays through post dated cheques and they get bounced.

3. Buyer wants his money back with the interest on that too or say he threatens the seller to give his amount back

4. Forcing the seller to sell the land and ask for his money back fom the seller before the land gets sold

Now, Circumstances under which a seller can be taken under the breachment of the sales contract are :

1 Upon contract termination, the seller refuses to pay back the money which the buyer has paid. Please note that the amount should be except the advance amount.

2. If the seller deducts the money actually from what the amount mentioned in the contract. i.e if the seller charges interest on the money from the buyer.

3. If the seller sells the land to other as well.

Very strict norms are persistent in uae and anyone who breaches them are booked under huge penalty. Hope this helps !!