Al Ain, UAE — A civil court in Al Ain has ordered a seller to refund AED 500,000 to a buyer, following a ruling that the vehicle sale involved fraud. Gulf News The case, brought before the Al Ain Court for Civil, Commercial and Administrative Claims, concluded that the seller misrepresented the vehicle’s manufacturing year and tampered with the chassis number, prompting the court to annul the sales contract. Gulf News
What Happened
The buyer purchased a vehicle from the seller under the impression that it had been manufactured in 2016 and was free of major defects. After taking possession, the buyer discovered:
- The car was actually manufactured in 2013. Gulf News
- The chassis number had been altered and did not match official records. Gulf News
- The vehicle was subject to a security alert and had hidden issues the buyer could not have discovered during normal inspection. Gulf News
A technical expert appointed by the court confirmed these findings, concluding the tampered chassis and mis-represented model year constituted deception rather than a mere defect. Gulf News
Court Ruling
Given the evidence, the court:
- Rescinded (cancelled) the sales contract, restoring both parties to their prior positions. Gulf News
- Ordered the seller to refund the full purchase price of AED 500,000 to the buyer. Gulf News
- Ordered the seller to cover the buyer’s repair costs (which amounted to AED 20,500) incurred after the purchase due to the hidden defects. Gulf News
- Rejected the buyer’s claim for AED 100,000 in compensation for moral and emotional damages, on the grounds that the buyer had used the car for eight months and had been involved in an accident — which undermined his claim of being deprived of use. Gulf News
- Directed the seller to bear the relevant court and legal costs. Gulf News
Why This Matters
This ruling is significant for several reasons:
- It underscores legal accountability for sellers who conceal material facts in vehicle transactions — such as manufacturing year, accident history or modified chassis numbers.
- It sends a signal to buyers that misrepresentation and hidden defects are actionable in UAE courts, and full refunds (plus repair costs) can be obtained if fraud is proven.
- It reinforces the importance of conducting thorough due diligence when purchasing vehicles: verifying manufacturing year, chassis number, records of accidents and registration history.
- For the broader used-vehicle market in the UAE, such decisions contribute to greater transparency and deterrence against fraudulent practices.
Tips for Buyers & Sellers
- Buyers: Always request and verify the chassis/VIN number, manufacturing year, service history and accident history. Use trusted inspection agencies if purchasing expensive vehicles.
- Sellers: Clearly disclose all known defects, history and modifications. Failure to do so may lead to contract annulment and refund obligations.
- Both parties: Keep written communications (ads, chats, messages) and payment records; these may become crucial evidence in court.
