Delayed, Faulty Goods: When UAE Law Allows Buyers to Cancel Agreements, Secure Refunds and Claim Compensation

In the UAE, buyers who face delayed deliveries or receive goods that do not match agreed specifications are not without legal recourse. The law provides clear protections in situations where a supplier fails to meet contractual obligations, particularly in agreements that combine the supply of goods with installation services.

Consider a common scenario: a homeowner contracts a company to supply, deliver and install doors for a villa, based on specific designs and timelines. If the company delays delivery and installs doors that do not conform to what was agreed, this constitutes a breach of contract. Under UAE law, such a breach gives the buyer the right to take decisive action.

Where a contract binds both parties to reciprocal obligations, failure by one party to perform as agreed entitles the other party to seek either enforcement or cancellation of the contract. This principle is firmly embedded in Article 272(1) of the UAE Civil Transactions Law, which allows the aggrieved party, after serving notice, to demand performance or terminate the agreement. In practical terms, this means a buyer can choose to cancel the contract altogether if the supplier fails to rectify delays or defects within a reasonable timeframe.

Importantly, contracts that involve both the sale of goods and their installation impose a dual responsibility on the supplier. The obligation is not limited to merely delivering the items, but extends to ensuring that the goods meet the agreed specifications and are properly installed. Any deviation — whether in quality, design, or timely execution — can amount to non-performance.

If the buyer does not wish to accept replacement goods or corrective work, they are entitled to cancel the contract and seek a full refund for the undelivered or defective items. The law recognises that in many cases, delays and defects can have wider consequences, especially in construction or home improvement projects where timelines are critical.

Beyond cancellation and refunds, UAE law also provides for compensation. Article 282 of the Civil Transactions Law establishes a broad principle of liability: any harm caused to another party obliges the responsible party to compensate for the damage. This includes not only direct financial losses but also consequential damages. For instance, a homeowner may claim compensation for additional costs incurred due to delays, damage caused to the property during faulty installation, or even losses arising from being unable to occupy the villa as planned.

The right to compensation is not automatic in every case; it must be supported by evidence of actual harm and a clear link between the breach and the damage suffered. However, where such a connection is established, the courts have the authority to award appropriate damages to restore the affected party, as far as possible, to the position they would have been in had the contract been properly performed.

In essence, UAE law takes a balanced but firm approach to contractual obligations. Suppliers are expected to adhere strictly to agreed terms, while buyers are afforded meaningful remedies when those terms are breached. Delays and defective goods are not merely inconveniences — they are recognised legal grounds for cancellation, refund, and compensation, ensuring that contractual fairness is upheld in both letter and spirit.

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.