The Abu Dhabi Commercial Court of Appeal has ruled in favor of the property owner, supporting a lower court’s decision to enforce a cheque issued under the lease agreement with the tenant.
On August 25, the court dismissed the tenant’s claim that she had terminated the lease early and was not responsible for further payments.
The tenant argued that she had ended the lease, vacated the property (a kitchen), and returned it to the building’s custodian. She also offered three months’ rent as compensation to the owner.
Stay informed with the latest news. Follow KT on WhatsApp Channels.
Additionally, the tenant requested an expert to review the circumstances of the cheque issuance and verify property control.
In rebuttal, the owner stated no formal agreement was made to end the lease, stressing that rent payments were still due until the contract’s expiration in February 2026.
On July 22, the initial court allowed the cheque’s enforcement and ordered the tenant to pay court costs, including Dh5,000 in legal fees. The Dh5,000 security deposit was also seized. The tenant appealed the decision.
Appeal Court Decision
In her appeal, the tenant sought to cancel the enforcement, appoint an expert for property inspection, and claimed the cheque was unenforceable due to the early lease termination.
The court declared that the tenant’s unilateral lease termination was invalid, as mutual consent is necessary under UAE Civil Transactions Law. It also cited Federal Decree-Law No. 50 of 2022, affirming a cheque as a valid, enforceable document.
Thus, the court upheld the lower ruling, confirming the owner’s right to enforce the cheque. The tenant was also ordered to pay court costs and an additional Dh500 in legal fees.
This ruling highlights the necessity of mutual consent for terminating commercial lease agreements.
