Question: I purchased a used car for Dh10,000 from a resident, and it broke down within a week. I had to spend another Dh10,000 on repairs due to severe engine problems. What are my legal options against the seller? What rights do I have in this case?
Answer: In the UAE, sellers must disclose any defects in sold items. If a buyer finds a significant pre-existing defect that wasn’t disclosed, they can seek remedies like returning the item or demanding a price reduction and compensation.
This aligns with Article 543(1) of Federal Law No. (5) of 1985 on Civil Transactions, which states, “A sale is considered as agreed upon that the sold goods are defect-free, except for customary tolerances.”
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According to Article 544(1) of the UAE Civil Transactions Law:
“If a pre-existing defect is found in sold goods, the buyer may choose to return them or accept them at the agreed price, but cannot keep them and request a price reduction due to the defect.”
Sellers in the UAE must accurately describe products and avoid misleading buyers during sales.
This follows Article 17 of Federal Law No. 15 of 2020 on Consumer Protection, updated by Federal Decree Law No. 5 of 2023, and Article 8 of Cabinet Decision No. 66 of 2023 concerning its Executive Regulation. Article 17 of UAE Consumer Law states:
“Advertisers, suppliers, and agents are prohibited from describing goods or services with false data or making misleading advertisements.”
Article 8 of Cabinet Decision No. 66 of 2023 specifies:
“A description, ad, or offer of goods or services is deceptive if it includes misleading claims, directly or indirectly creating false impressions, especially if involving:
1. Nature, composition, description, elements, quantity, shape, or appearance.
2. Source, authenticity, manufacturing method, production or expiry dates, usage terms, warnings, weight, size, or standards.
3. Country of origin, export, or producer.
4. Contract terms, including after-sales service, warranty, price, and payment method.
5. Awards, certifications, or quality marks.
6. Trademarks, statements, or logos.
7. Product or service features and expected outcomes.”
Sellers must clearly state the condition of used, renovated, or defective items that pose no health risks to consumers.
Per Article 7 of Cabinet Decision No. 66 of 2023, “Suppliers must clearly advertise the condition of such goods on the product and at the place of sale, avoiding false impressions. The condition should be described in the contract or invoice.”
Buyers may claim compensation for defective products sold.
As per Article 24 (1) of the UAE Consumer Law, “Consumers have the right to claim compensation for damages from using a Good or Service, per State legislation, with any contrary agreement being void.”
The UAE Ministry of Economy and competent authorities can handle buyer complaints, per Article 35 of Cabinet Decision No. 66 of 2023.
Additionally, Appendix No. 2 of Cabinet Decision No. 66 of 2023 outlines fines up to Dh100,000 for selling defective used or renovated products.
If the car had undisclosed engine issues at sale, you may file a complaint with the relevant emirate authority, claiming the seller misled you.
If a warranty was provided, you can claim under it for defects or breakdowns during the warranty period.
Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the UK, and India. More details at: www.amalawyers.com. Email questions to: news@khaleejtimes.com or send to Legal View, Khaleej Times, PO Box 11243, Dubai.
