Court Orders Seller To Refund Dh765,000 For Luxury Vehicle With Altered Details

The Dubai Civil Court has ordered the seller of a luxury vehicle to refund Dh765,000 to the purchaser after finding that key details of the vehicle had been misrepresented. The court also rescinded the sales contract and awarded the purchaser Dh30,000 in compensation.

 

The case arose after the purchaser bought the luxury vehicle for Dh765,000 based on specifications and other details stated in the sales contract. However, after completing the transaction and having the vehicle inspected by the relevant authorities, he discovered discrepancies in its country of manufacture and model year.

 

The purchaser subsequently approached the court and requested the appointment of a specialised expert to examine the vehicle and verify its technical and registration details.

 

The expert’s report found substantial differences in the vehicle’s technical identity. The inspection revealed that its model year differed from the year stated in the contract, while its registration data and specifications also showed a different country of manufacture.

 

An electronic inspection further indicated that the vehicle was technically older than represented. The electronic system recorded a different model year from that stated in the sales agreement.

 

The report concluded that the discrepancies involving the chassis number, the technical generation of the electronic systems and the model year constituted a fundamental conflict with the terms of the contract. It said the discrepancy could not be rectified technically because it affected the essential identity and characteristics of the vehicle.

 

The purchaser filed a lawsuit seeking rescission of the contract, repayment of the full purchase price and compensation for the damages he had suffered. The seller, meanwhile, sought dismissal of the case, arguing that it had been brought against a party without proper legal standing.

 

The court held that proof of a hidden and fundamental defect, together with the vehicle’s failure to conform to the agreed specifications, entitled the purchaser to rescind the sale and recover the amount paid.

 

It said it was satisfied with the findings of the expert report and considered the differences between the vehicle’s actual condition and the specifications stated in the contract to constitute a fundamental defect. The court further found that the seller had breached his contractual obligations.

 

The court therefore rescinded the sales contract and ordered the seller to return Dh765,000 to the purchaser and pay Dh30,000 in compensation for the damages. He was also ordered to bear the court fees and expenses and pay Dh1,000 in attorney fees.

 

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