How to Sue a Business Partner in Dubai

How to Sue a Business Partner in Dubai

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The United Arab Emirates (UAE) is famous for profitable investments. Dubai has attracted foreign investors and entrepreneurs to work on different ideas. In countries like the UAE, where economic growth relies on a favorable business environment, disagreements do occur. These agreements are related to contracts, mergers, and joint ventures. In such scenarios, the UAE business laws are helpful.

Issues in the Business

The breach of contract is a common issue in Dubai. When one party does not fulfill their responsibilities after signing the contract, they have breached the terms of the contract. There could be disagreements over payment. A lot of other disputes arise when two companies are closely working together. Therefore, having legal professionals by your side would be a good thing as they provide legal and moral support throughout the years. The lawyers can assist companies in making the right type of business contract to avoid any discrepancies during the merger or any kind of business agreement. To dissolve the partnership or liquidation of the company, these are very important, business matters.

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Can You Sue a Business Partner?

The UA business laws ensure justice for everyone. You can sue your business partner over the breach of trust in the contract. It can include; financial fraud, breach of contract, or violating any term in the contract, affecting the value of the business. Though, suing a business partner is a big step. Therefore, it is better to find ways in which you can resolve the dispute between you and the business partner. The legal proceedings should take place only when things do not work without the intervention of the court. It is understood that the case becomes very serious when the legal complaint is filed in the UAE courts. Moreover, the business partner can also be sued for damaging the company’s reputation in the market. They will have to compensate the other party in case of defamation.

If you were to choose legal professionals, then no one can do a better job of getting compensation than the attorneys in Dubai. They work responsibly on your case, including; revision of the documents and evidence to prepare an argument against the legal matter.

Business Laws in the UAE

The UAE business disputes are resolved through federal laws, including commercial and civil laws. The following laws are implemented to resolve a business dispute in the UAE:

  • Federal Decree-Law No. 32 of 2021 on Commercial Companies
  • Federal Law No. 5 of 1985 (UAE Civil Transactions Law)
  • Federal Law No. 18 of 1993 (UAE Commercial Transactions Law)

Under these rules and regulations, the lawyers in Dubai resolve disputes in business. Additionally, these laws also outline the steps to be taken to dissolve a partnership or initiate the agreement. Importantly, these laws are written in Arabic, so you will need a translator to have the agreement in English or any other language that you may understand.

Procedure to Sue a Business Partner in Dubai

Suing someone in the UAE requires evidence and solid reasons to take the step confidently. The following steps ensure that you can legally sue your partner:

  1. Make an Amicable Resolution

It is advised to resolve disputes amicably. Through mediation or negotiation, many business disputes are resolved. The attorneys take responsibility for making all the documents and ensuring a friendly settlement out of court. These settlement agreements are proof that there is no misunderstanding between both parties.

  1. Review the Partnership Agreement

The partnership agreement has to be reviewed to find out what kind of business relationship it is going to be. The contractual agreement specifies the responsibilities, procedures, and dispute-resolution techniques. If both parties want to do dispute resolution through mediation and negotiation in the future, they should mention it in the business contract.

However, if these clauses are not added to the contract, then let the lawyers in Dubai handle the case. They will tell you the next steps towards the partnership agreement.

  1. Engage a Legal Representative

While making a legal complaint against the business partner, you must plan it carefully. In this case, attorneys in Dubai can be hired to provide you with excellent legal services. They will evaluate your case to see the potential. The best way to do this is to gather as much evidence as you can while working with the legal experts on your case. However, the legal representatives will ensure smooth court proceedings in the UAE courts.

  1. Filing a Case with the Relevant Court

For business issues of the mainland, Dubai courts shall be reached out. However, businesses operating within the Dubai International Financial Centre (DIFC) will be resolved through DIFC Courts. There are free zone authorities who would resolve issues of the businesses operating in the free zones.

The best thing about business disputes is that dispute resolutions are divided into courts. Not every issue has to be taken to one court, as it would prolong the case. However, the lawyers in Dubai have also done a good job while working on alternative dispute resolution (ADR) techniques.

  1. Collecting and Presenting Evidence

If you have proof against the business partner, then only should you go for legal proceedings. The evidence should be real to sue the business partner. You will need to gather proof in terms of documents, including; the partnership agreement, financial records, emails and other communication modes, testimonies of the witness, and reports from the experts. When you are gathering the evidences, it is quite good to have legal support available at your side. They can guide about the evidence that weighs more than the other.

  1. Court Proceedings and Judgment

As the case is filed in the court, the evidence is reviewed. The courtroom has both parties, presenting their arguments in front of the judge. The court proceedings can be long as the judgment is based on evidence that is reviewed on different levels.

If you have decided to sue your business partner, the possible results are in your favour. In this way, the business partner will be penalised. You would be that you will be compensated for the financial losses. The partnership contract will be terminated. The misappropriated funds will be recovered. The business partner pays the legal support. Additionally any legal assistance by the lawyers, will be much better and beneficial.

FAQs

Yes, it is possible to sue. One can use his business partner without a formal agreement. Though it would be challenging to get justice without a formal partnership agreement, it is your right to do so. The financial transactions and communications are crucial in such cases. Therefore, hire lawyers to evaluate the potential of the legal matter.

It is important to know the business structure and location of a business partnership. If you have partnered with a company in a free zone, the rules and regulations would be difficult. You will have to hire attorneys to get you through the legal matter. We have top attorneys for mainland as well as free zones in UAE. DIFC and ADGM are two jurisdiction where separate expertise are required.

The timeframe for business dispute resolution in Dubai is uncertain. The complications in the case could prolong the proceedings. However, the lawyers in Dubai are qualified to fight for your case and resolve the matter at possible. For example, Ask The Law, Al Shaiba Advocates always staff the top lawyers in United Arab Emirates. We also offer result driven debt recovery services in United Arab Emirates.