Publications / Civil Law


civil law

|

August 20, 2017

|

2442 views


Company I Bought Goods From Didn't Deliver and Has Closed

Question: My business agreed with a company to buy some goods in bulk and we paid the full amount owed. Later on they kept delaying delivering the goods for month after month. We ended up going to their premises only to find that the company was closed. Our understanding is that the company was a sole trader, so we thought that we could file a commercial case against the owner personally to get the debt from his own assets. However, later on we found that the person we were dealing with, whom we thought to be the owner of the company, was just a manager and the company was a LLC. All their papers, their invoice, logo and stamps did not indicate that this company was LLC. Do I have the right to take any legal action?

Answer: The issue at the heart of this matter is that if it were a Limited Liability Company, partners would not be personally liable to cover any of the company's liabilities if it were to be liquidated. However, if it were a sole establishment then the owner would be personally liable. You will feel now that your money is difficult to retrieve. However, Commercial Companies Law 2 of 2015 gives you the protection you need. Article 72 of this law indicates that each LLC has to add to its name the acronym "LLC" to ensure everyone is aware of its status. If the manager breached this requirement, he then becomes personally liable jointly with the company to pay the amount plus compensation, if there is any. The same fact is repeated in Article 84 of the same law, which considers that the manager is personally liable for any breach of this law.

Question: I lent one of my friends Dh20,000 in cash in front of two witnesses. He did not sign any receipt so I wondered if I could file a civil case against him on the basis of the witness statements as he has not returned the money to me?

Answer: Unfortunately, as per Article 35/1 of Law of Proof in Civil and Commercial Transactions 10 of 1992 and its amendments, "in non-commercial matters, if the value of the transaction is greater than Dh5,000 or if the value is unspecified, testimony of the witnesses shall not be permitted in establishing its existence or its termination, so long as there is no agreement or any written indication to the contrary". As it is not a commercial transaction, it would be very difficult to file your case on the basis of the witness statements, and it would not likely be considered a breach of criminal law. However, if you have any written communication with your friend where he admitted by email or text that he owes you this money or promised to pay you back then you can file a case on the basis of this communication.

Related Links


Comments

No comments found.

Leave a Comment

Your email address will not be published. Required fields are marked *

Want to know more?
Then talk to us.


Client Testimonials

I owe the success of my case to Dr. Hassan's diligent approach. He remained focused, put me at ease and always went the extra mile. Dr. Hassan tirelessly put my case in the best possible light and I cannot thank him enough. I would highly recommend Dr. Hassan - I am grateful to him from the bottom of my heart.

Raphael Lauria
Manager, FME General Trading

Dr. Hassan Elhais is among the best legal consultants I have ever worked with. He has an amazing ability to reduce complex issues into a simple concept that non-legal people can understand. He consistently develops innovative litigation strategies that help us to achieve our ultimate legal goals.

Zhuo Liu
Client

...the extraordinary effort that has been exerted by the staff, and we specially thank Dr. Hassan Mohsen Alhais. Wishing your continues success & excellence...

H.H. Sheikh Saeed Bin
Mohammed Hashir Al Maktoum

I believe everyone should recognize what a difference Dr. Hassan Elhais work has made to people's lives; and especially to our family's life, because we will remain forever grateful to each and every one of his team.

Luis Pozueco
Client

Dr. Hassan Elhais never fears cases that involve exposure and he always gives me his honest assessment of our chances of success, which is invaluable to me.

Bassam Yamout
Director, JM Metal Trading LCC

He aided us not only in providing legal advice but also in all legal issues that required a long term strategic approach to achieve most favorable and optimum outcomes he provided us with high level of professional service.

Philippe Delbecq
Client

Dr. Hassan Elhais is a responsible, reputable counsel who operates to high levels of service.

Anil Relwani
Manager, Luxury Real Estate

Dr Hassan Elhais is responsive, thorough and creative with his advice, and is a valued advisor and legal consultant.

Asma Mattar
Manager, Italian Style

Regardless of the complexity of the matter I know Dr. Hassan Elhais will consider not only legal strategy but also business practicalities in providing advice and litigation options.

Dr. Massimo Hakim
Chairman, Italian Style

I recommend Dr. Hassan Elhais to anyone who says 'I'm in legal trouble'. I was extremely satisfied with the high standard of his work. He has always been there when I have needed him and I refer all my clients, family and friends to him/his firm.

Manish Gupta
Marketing Manager, Express Digital System

Dr. Hassan Elhais was very professional and he listened to my needs. He was very prompt, efficient and always kept me informed. Dr. Hassan Elhais's service was excellent and I would definitely recommend him to friends and colleagues.

James Horsley
British Client

Contact Me







Main Menu

Contact Me