Charter Legal is pleased to have successfully represented the Claimants in a recent Dubai-seated arbitration concerning the purchase of a residential property and the Developer’s pre-contractual representations.
A central issue in the dispute was the discrepancy between the property as marketed and represented to the purchasers in the sales and marketing materials and the description ultimately reflected in the Sale and Purchase Agreement (SPA).
The Tribunal accepted Charter Legal’s submissions that the Developer’s marketing materials and pre-contractual representations formed part of the circumstances upon which the purchasers entered into the transaction and could not simply be disregarded by reference to the terms subsequently recorded in the SPA.
The Tribunal also accepted that the entire agreement clause contained in the SPA did not shield the Developer from liability for misrepresentation or prevent reliance on the representations made during the sales process.
In addition, the Tribunal awarded the Claimants damages for the Developer’s delay in completing the project and handing over the property.
The Award highlights the importance of considering contractual documentation alongside the representations and marketing materials that induced purchasers to enter into a property transaction.
Charter Legal is proud to have successfully advanced these arguments on behalf of our clients, established the Developer’s misrepresentation before the Tribunal, and secured compensation for the delay in completion and handover.
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