Cheque Disputes in the UAE

Check disputes are among the most common financial cases in the UAE, given the critical role checks play in payments and commercial transactions. These disputes can arise from issues such as issuing checks without sufficient funds, bank refusals to honor checks, or tampering with check details. UAE laws have been strengthened to regulate these matters, ensuring the protection of parties and fostering economic stability.

Common Causes of Cheque Disputes

• Issuing a check without sufficient funds

• Incorrect or unauthorized signatures

• Stopping payment by the drawer

• Discrepancies between written and numerical amounts

• Forgery or tampering with Cheque

Governing Laws

• Federal Law No. 14 of 2020 amending provisions of the Commercial Transactions Law

• Introduction of measures to resolve check-related disputes non-judicially, such as financial settlements

Role of Legal Advisory Firms in Check Disputes

1. Legal Consultation:

• Providing clients with clear guidance on legal procedures related to checks

• Assisting parties in understanding their rights and obligations under UAE law

2. Dispute Resolution:

• Mediating disputes to achieve amicable settlements without court involvement

• Facilitating negotiations to recover dues or restore rights

3. Legal Defense:

• Representing clients in criminal or civil court cases related to checks

• Preparing legal defenses for drawers or beneficiaries

4. Enforcement:

• Following up on the execution of court judgments to recover check values

• Collaborating with relevant entities, such as enforcement courts and banks

5. Prevention and Auditing:

• Reviewing checks before issuance to ensure compliance with laws

• Offering legal advice on managing checks to avoid future disputes

Mission

Legal advisory firms in the UAE strive to provide comprehensive and practical solutions for check disputes, whether through amicable settlements or legal proceedings. Their mission is to protect the rights of all parties and foster trust in financial transactions, contributing to the stability of business and economic life in the country.