Damages under UAE Law in the context of - Habib Al Mulla
Damages under UAE Law in the context of - Habib Al Mulla
Damages under UAE Law in the context of - Habib Al Mulla
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tenant was contam<strong>in</strong>ated.<br />
So, <strong>the</strong> difference between rents is <strong>the</strong> direct and foreseeable damage; <strong>the</strong> damages to <strong>the</strong> furniture are direct but<br />
unforeseen; and <strong>the</strong> disease or contagion is <strong>in</strong>direct damages.<br />
Second, <strong>the</strong> parties at <strong>the</strong> time <strong>of</strong> contract<strong>in</strong>g should have foreseen <strong>the</strong> damages. This condition results from <strong>the</strong><br />
pacta sunt servanda pr<strong>in</strong>ciple; <strong>the</strong> parties have contracted on what was foreseeable to <strong>the</strong>m; <strong>the</strong> debtor can only be<br />
obliged for what he would have expected, predicted or foreseen (<strong>the</strong> word “tawaka’” <strong>in</strong> Arabic can be translated to<br />
<strong>the</strong>se three verbs) as damages. Additionally, damages should be foreseen <strong>in</strong> cause and value.<br />
For example, where a post company agreed to deliver a courier and <strong>the</strong> envelop is lost while couriered, and <strong>the</strong>n it<br />
was revealed that <strong>the</strong> envelop conta<strong>in</strong>ed money or gold, a th<strong>in</strong>g that <strong>the</strong> post company did not foresee at <strong>the</strong> date<br />
<strong>of</strong> contract<strong>in</strong>g, <strong>the</strong> post company will be liable for reasonable damages, as <strong>the</strong> post company has not foreseen <strong>the</strong><br />
envelope’s value.<br />
The foreseeability <strong>of</strong> <strong>the</strong> cause mean<strong>in</strong>g that at <strong>the</strong> time <strong>of</strong> contract<strong>in</strong>g, <strong>the</strong> debtor could have not supposed that<br />
non-performance would have resulted <strong>in</strong> such damage.<br />
The foreseeability <strong>of</strong> <strong>the</strong> amount mean<strong>in</strong>g that at <strong>the</strong> time <strong>of</strong> contract<strong>in</strong>g, <strong>the</strong> debtor could suppose that nonperformance<br />
would have resulted <strong>in</strong> such damages, but could have not supposed that <strong>the</strong> damage is <strong>of</strong> that<br />
importance.<br />
Thirdly and f<strong>in</strong>ally <strong>the</strong> foreseeability should have occurred at <strong>the</strong> date <strong>of</strong> contract<strong>in</strong>g and is assessed <strong>in</strong> abstracto<br />
and objectively (a comparison is made to <strong>the</strong> notion <strong>of</strong> ’ord<strong>in</strong>ary man’). The damages expected should be <strong>the</strong> ones<br />
that an ord<strong>in</strong>ary man would have predicted if he was to f<strong>in</strong>d himself <strong>in</strong> <strong>the</strong> same contractual circumstances tak<strong>in</strong>g<br />
<strong>in</strong>to account <strong>the</strong> possibility <strong>of</strong> claim<strong>in</strong>g for o<strong>the</strong>r categories <strong>of</strong> contractual damages such as loss <strong>of</strong> pr<strong>of</strong>its and loss<br />
<strong>of</strong> opportunity and moral damages as detailed at length at section two <strong>of</strong> this article <strong>under</strong> Types <strong>of</strong> <strong>Damages</strong> <strong>under</strong><br />
<strong>UAE</strong> law.<br />
Karim J. Nassif, Partner<br />
Cel<strong>in</strong>e Abi <strong>Habib</strong> Kanakri, Senior Associate<br />
<strong>Habib</strong> <strong>Al</strong> <strong>Mulla</strong> & Company<br />
For fur<strong>the</strong>r <strong>in</strong>formation on this article or any o<strong>the</strong>r area <strong>of</strong> <strong>UAE</strong> law, please contact us.<br />
This article was first published <strong>in</strong> <strong>the</strong> In House <strong>Law</strong>yer<br />
© <strong>Habib</strong> <strong>Al</strong> <strong>Mulla</strong> & Company 2011<br />
This material is <strong>in</strong>tended for general <strong>in</strong>formation only and should not be considered as legal advice. For fur<strong>the</strong>r <strong>in</strong>formation, please contact us.<br />
1<br />
Please see ‘Litigat<strong>in</strong>g <strong>in</strong> <strong>the</strong> <strong>UAE</strong>: <strong>in</strong>itial guidance’ by <strong>the</strong> author and Gordon Blanke, <strong>the</strong> The In-House <strong>Law</strong>yer, December 2009 – January 2010,<br />
Issue 176, pages 3 to 7.<br />
2<br />
Dubai Court <strong>of</strong> Cassation, petition no. 41/2007; 15/04/2007; Dubai Court <strong>of</strong> Cassation, petition no. 37/2004; 18/09/2004.<br />
3<br />
We shall not elaborate <strong>in</strong> this article on <strong>the</strong> notion <strong>of</strong> breach <strong>under</strong> <strong>UAE</strong> law; however <strong>UAE</strong> law recognises <strong>the</strong> error and negligence concepts<br />
and differentiates between gross and simple errors.<br />
4<br />
The causal l<strong>in</strong>k or causation is one <strong>of</strong> <strong>the</strong> elements <strong>of</strong> <strong>the</strong> contractual liability; when causation does not exist, no contractual liability exists as<br />
well and subsequently, no compensation is awarded. The Dubai Court <strong>of</strong> Cassation <strong>in</strong>dicated <strong>in</strong> two rul<strong>in</strong>gs that “causation is presumed to exist<br />
unless <strong>the</strong> debtor proves that damages resulted from force majeure, <strong>the</strong> creditors acts or <strong>the</strong> acts <strong>of</strong> a third party” [Dubai Court <strong>of</strong> Cassation,