Dubai court orders buyer of a restaurant to pay seller Dhs930,000

The Dubai Civil Court ordered the buyer of a restaurant to pay the seller Dhs930,000, plus 5% annual interest from the date the lawsuit was filed until full payment.

The buyer had taken possession of the premises and transferred the trade license to his name but failed to pay the agreed purchase price.

The restaurant owner filed the lawsuit based on a notarized sales contract dated July 2026. Under the agreement, the Dhs930,000 purchase price was divided equally between the restaurant’s physical contents and intangible assets, valued at Dhs465,000 each.

The seller stated that he had fulfilled his contractual obligations by handing over the premises and all their contents. The buyer then completed the ownership transfer procedures and obtained the trade license in his name. Despite repeated demands, however, he failed to pay the agreed price, prompting the seller to seek payment through the courts, along with 9% annual interest for the delay.

In its ruling, the court explained that a contract binds both parties, who must fulfill their agreed obligations in good faith. It also noted that the creditor bears the burden of proving the obligation, while the debtor must prove that it has been fulfilled.

The court found that the submitted documents established the completion of the sale and the transfer of the trade license to the buyer. The buyer, however, provided no evidence of payment and did not appear in court to present a defense or challenge the seller’s claims, despite having been legally notified.

The court awarded interest at 5% per year, rather than the 9% requested by the seller, to accrue from the filing date until full payment. It also ordered the buyer to pay court costs, legal fees, and attorney’s fees.