Legal Question in Business Law in United Arab Emirates

Name: Jayasinghe Mudiyanselage Jayantha

Contact Number: 050 6489653

Email: [email protected]

I signed sales contract with M/s. Strong Motors Co. L.L.C. on 23.11.2016 to purchase Vacuum Cleaning Machine for an amount AED. 12,950. This company offered me 9 installment payments after the demonstrating the machine functions at my home. I was not prepared to purchase of this machine due to already terminate my employment contract at that time. However, my employment visa was not cancelled. And also cost of product too costly according to my budget. I explained my situation to sales person Mr. Hisam that I am not able purchase this machine now and will buy on February 2017. He said, this product price will go up in 2017 and sign sales contact now just issuing security (open) cheque to cover whole amount of the machine and issue dated (9) cheques as mentioned in sales contract. I did not issue cheques for installments payments. Because, I realized that if I do not get job opportunity within this period will be in trouble to pay as agreed.

All these things concerns I decided to return this machine to "Strong Motors" and called Mr. Hisam on 24 November 2016 on his mobile number 055 4465594. I asked him to come with security cheque to issue rest of cheques on 24 November 2016 but he did not come to see me. Then I called him on 25 November 2016 to inform him I want to return this vacuum cleaner but he did not pick up his phone.

Afterwards, I visited to Strong Motor office located in Al Nadha, Sharjah with my son Chanupa Dinath to return this machine. They refused to accept because it was forth date of sales agreement signed off. According sales agreement within three days customer able to return the machine. However, third day was Friday and their office was closed. I explained again my current job situation as well. Then they suggested if I can find somebody to purchase then will return my cheque and cancelled the agreement. I did not promise and agreed to give references on the basis of if anybody agree to purchase up to them. According to that I gave them two references. No one interest to purchase due to high price of the machine.

Meanwhile, my employment visa cancelled on 26 December 2016 and now I am in grace period. I informed to Mr. Hisam about this on 27 December 2016. Still he is same stance and not willing to release my cheque.

Therefore, I expect your kind legal advice how to rid off this agreement without any hassle.


Asked on 1/15/17, 8:55 pm

2 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

16.01.2017

Dear Jayasinghe Mudiyanselage Jayantha,

You signed the sales contract with the Company on Wednesday, 23.11.2016 and issued a Security Cheque for AED 12,950 with the new machine having been delivered to your place by the representative of Strong Motors the same day. First and foremost, the date written by you on the Security Cheque issued to the Company is of prime importance. You need to check the sales agreement whether it states that the machine can be returned back to the Company within three days of delivery, if found defective or faulty or malfunctioning. Since you went along with your son to the Al Nadha branch of Strong Motors on Saturday, 26.11.2016, the Company will treat is as beyond the trial period, If your Security Cheque has already been deposited by the Company, and the cheque proceeds have already been credited by the Bank to the Company's A/c, you should ascertain with any of the Company representative, whether the Company has a buy-back option, and what is the buy-back price your machine will fetch for return. In case the Company refuses to take back the vacuum cleaner, and you do not wish to use the vacuum cleaner, you should simultaneously release a local newspaper advertisement "vacuum cleaner for sale" and get the best price for it. If the Company has not encashed the Security Cheque, you should intimate to your Bank to stop payment of your cheque with a copy to the Company for information, and escalation of settlement. You may directly contact the references you provided the Company and fetch an offer from them to purchase the vacuum cleaner.

Regards,

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Answered on 1/16/17, 1:45 am
Shaji Natarajan Salam Advocates & Legal Consultants

Dear Jayasinghe,

From the contents of your mail, it is understood that the matter had taken place at U.A.E. If it has taken place at Dubai, you may immediately contact the Customer Complaints section of the Dubai Economic Department or if it is Sharjah, the same relating to Sharjah may be done. You may highlight the fact that the Goods purchased can be returned within 3 days which you had done, considering the fact of counting only the working days. You may seek for return of the entire purchase price, by way of return of the Cheque.

For further clarifications, you may mail to [email protected] or call on 050 2104389.

Best Regards,

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Answered on 1/16/17, 11:09 pm


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