Dubai Court Orders Developer to Pay AED 1.243 Million to Marketing Firm
Dubai Real Estate Court ordered a developer to pay AED 1.243 million to a marketing and sales company, along with 5% legal interest, fees, and costs, after rejecting the developer's defenses.
The Real Estate Court in Dubai ordered a real estate developer to pay AED 1.243 million to a company specializing in marketing and sales, as reported by 'The Law Reporters' platform.
The payable amount includes launch activities, marketing services, and sales services, in addition to late payment penalties, along with a 5% legal interest and court fees and costs.
The court rejected the developer's defenses, concluding that the agreement concluded between the two parties was not void under the regulations governing real estate brokerage.
The ruling reflects the trend of Dubai courts toward enforcing commercial contracts between developers and marketing firms, granting these companies clearer judicial protection in recovering their dues.
What do these terms mean?
Legal Interest: An interest rate imposed by the court on the awarded amount for delays in payment, as determined by law.
Late Payment Penalties: Amounts due from one party upon delay in fulfilling their contractual obligations.
Nullity of Agreement: The absence of legal effect of a contract due to its violation of the law or the requirements for its validity.
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