Court orders firms to pay Dhs322,000 to woman for breach of contract

Aya Al Deeb, Staff Reporter

The Supreme Federal Court upheld an appeal against an appellate ruling, obligating two brokerage and real estate development companies to pay Dhs322,000 to a woman who contracted with the two companies to purchase a housing unit and paid them in instalments, but the two companies breached their commitment.

Details of the case date back to an earlier time when the woman filed a lawsuit against the two companies, a broker and owner of a real estate project, demanding they pay her Dhs322,500, in compensation, with interest and expenses.

The complainant added she had a contract with a real estate brokerage company to buy a residential unit for Dhs485,500, of which she paid Dhs322,500, provided the unit was handed over on a specific date.

The real estate brokerage company and the real estate development company did not implement the agreement.

During the hearing, the brokerage company said it was only a real estate broker that was not bound by contracts and that the instalments it received were for the account of the owner of the project.

The Court of First Instance ruled that the sale contract was cancelled and obligated the defendants to pay Dhs322,000, with interest and expenses.

The two companies appealed the verdict and the court referred the case to the Appellate Court for further consideration.