Question: I sold my car to someone who paid with a post-dated cheque. However, the cheque bounced due to an incorrect buyer's signature, which appears to have been done intentionally. What are my rights in this situation?
Answer: In the UAE, a cheque must include several key elements to be valid, as outlined in Article 627 of the Federal Decree-Law No. 50 of 2022, which governs the Commercial Transactions Law. These elements include the word 'cheque' written in the same language as the instrument, an unconditional order to pay a specified amount, the name of the drawee (the person obliged to make payment), the payee (the person receiving the payment), the place of payment, the date and location of the cheque's issuance, and the signature of the drawer.
Furthermore, intentionally signing a cheque incorrectly can result in severe penalties. According to Article 675 of the UAE Commercial Transaction Law, such an action can lead to imprisonment for a period ranging from six months to two years and/or a fine of not less than 10% of the cheque's value, with a minimum of Dh5,000 and a maximum of double the cheque's value.
Additionally, if a cheque is dishonoured due to an incorrect signature with malicious intent and is confirmed by the relevant UAE authority, this act is considered a criminal breach of trust. This is stipulated under Article 453 of the Federal Law by Decree No. 31 of 2021, which deals with Crimes and Penalties.
In your case, you should first contact the buyer and request a cheque with the correct signature. If the incorrect signature was deliberate, you may need to take legal action to recover the amount owed. This could involve filing a complaint with the appropriate UAE court and initiating both civil and criminal lawsuits against the buyer.
Ashish Mehta, the founder and Managing Partner of Ashish Mehta & Associates, is qualified to practice law in Dubai, the United Kingdom, and India. For more information about his firm, visit www.amalawyers.com. Readers can send their questions to news@khaleejtimes.com or Legal View, Khaleej Times, PO Box 11243, Dubai.
