Dubai court rescinds network cyber security devices contract worth Dhs92,000

Dubai Commercial Court ruled to rescind a contract for the supply of network security devices worth Dhs92,000 between two companies, after it was proved that the supplying company was four weeks late beyond the agreed deadline, and failed to provide documents proving the quality of the devices and their compliance with specifications.

The court ordered the appellee company to refund Dhs42,000, the value of the down payment, and to pay Dhs10,000 in compensation to the plaintiff company.

The details date back to an earlier time when a company signed a contract with another (the appellee) in October 2025 to supply a firewall device and a three-year protection subscription, with delivery to take place within seven weeks of paying the first installment, while providing certificates and technical documents proving the authenticity of the products and their compliance with specifications.

The plaintiff company paid Dhs42,000 in advance, then the appellee company informed it in January 2026 of the arrival of the devices. When the plaintiff company requested to inspect them and review the required documents before completing the receipt process and paying the remaining value according to the terms of the contract, this did not happen.

Given what was raised between the two parties regarding the implementation of obligations, the delay, and the quality of the devices, the court appointed an expert to examine the contractual relationship and clarify the extent of each party's commitment to its obligations, and the expert report concluded that the appellee company was four weeks late beyond the agreed delivery period, and failed to provide the necessary documents and certificates to prove the source, authenticity, and compliance of the devices.

The court emphasised that the delay and failure to complete the documents breached the contract, and the conditions for judicial rescission were met.

The court also found that the plaintiff company breached its obligations toward the client, which caused it material and moral damage, and therefore ordered the defendant company to pay Dhs10,000 in compensation to the plaintiff company, while rejecting the defendant company's request for similar compensation due to lack of proof of damage occurring to it as a result of the contract rescission. The court also ordered the defendant company to refund the down payment of Dhs42,000 and return the security cheque, along with legal interest, expenses, and attorney fees.