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

Lets try to understand both the cases with a simple common example. A buyer and a seller entered into an agreement (contract) for a sale of a land as per the UAE law. The buyer would have to pay an initial advance amount and some amount month on month as an installment till the entire amount is paid to the seller. The agreement agreed by both the parties suggested that the seller can terminate the agreement immediately if any of the buyer's post-dated cheques were dishonoured, whereupon the land would have to be reverted back to the seller. The Agreement further suggested that the seller would have the right to retain the advance amount already paid but was obliged to return the balance fund, after selling the property.

A) Some of the circumstances under which a buyer is in breach of a sales contract are:

- The buyer was unable to pay agreed installments every month (as agreed in the contract)

- Some of the paid monthly cheques got bounced (which should not be the case as per the contract)

- Post termination of the contract, the buyer threatens the seller to pay back his advance paid money as well along with the rest of the paid money.

- Buyer wants his money along with the amount of interest on that money.

- Buyer is forcing the seller to pay back his money before the seller sells the land (which is against the contract)

B) Some of the circumstances under which a seller is in breach of a sales contract are:

- On termination of the contract, the seller refused to give all the money which the buyer paid (except the advance amount).

- Seller agrees to pay back the money (except the advance amount) but he charges interest as well and reduces some of the money which he agreed to pay back as per the contract.

- Seller sells the land to some other buyer for which he should return the money collected from the first buyer (except the advance) but he doesn't do so.