DIFC Investments LLC v Mohammed Akbar Mohammed Zia [2017] DIFC CFI 001 (15 May 2017)

DIFC Investments LLC v Mohammed Akbar Mohammed Zia [2017] DIFC CFI 001 (15 May 2017)

The Defendant's failure to pay the total purchase price by the extended deadline constituted fundamental non-performance under DIFC Contract Law. The Claimant was entitled to terminate the contracts by notice on 8 July 2015. There was no substantial dispute of fact requiring Part 7 procedure. Force majeure did not...

Source-derived case information.

Citation
[2017] DIFC CFI 001
Parties
Claimant: DIFC Investments LLC; Defendant: Mohammed Akbar Mohammed Zia
Jurisdiction
United Arab Emirates
Judgment Date
15 May 2017
Procedural Posture
Part 8 Claim (declaratory Relief) / Judgment at First Instance
Outcome
Claim granted
Legal Topics
Contract Termination, Non Performance, Declaratory Relief, Jurisdiction, Costs
Contract Law Property Law Contract Termination Non Performance Declaratory Relief Jurisdiction Costs

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Parties

DIFC Investments LLC

Claimant

Mohammed Akbar Mohammed Zia

Defendant

Procedural Posture

Part 8 Claim (declaratory Relief) / Judgment at First Instance

Legal Issues

  1. 1 Whether the 72 property contracts between the parties were validly terminated as of 8 July 2015 under DIFC Contract Law
  2. 2 Whether Part 8 procedure was appropriate given the alleged disputes of fact
  3. 3 Whether the Defendant's non-payment constituted fundamental non-performance under DIFC Contract Law

Ratio Decidendi

The Defendant's failure to pay the total purchase price by the extended deadline constituted fundamental non-performance under DIFC Contract Law. The Claimant was entitled to terminate the contracts by notice on 8 July 2015. There was no substantial dispute of fact requiring Part 7 procedure. Force majeure did not apply to the obligation to pay. The Claimant's claim for declaratory relief and costs was granted.

Court Disposition

Claim granted

Orders

  • The 72 contracts executed by the parties dated 3 May 2015 were terminated with effect from 8 July 2015 pursuant to DIFC Contract Law.
  • The Defendant shall pay the Claimant’s legal costs of the claim. If not agreed, parties to submit costs details within 21 days.