Termination of a sale contract of 9.6 million dirhams due to the seller's mental deficiency

The Court of Cassation in Abu Dhabi upheld an appeals ruling that decided to cancel the contract to sell a part of a commercial plot of land for an amount of 9 million and 600 thousand dirhams, because the seller was placed under guardianship, due to his mental disorder and his inability to manage his affairs.

The court ruled that the appeal was inadmissible, and ordered the confiscation of the insurance.

The appellant had bought a percentage of commercial land from the contested against him, which prompted the legal representative of the seller to file a lawsuit against the buyer requesting the revocation of the sale contract and obligating him to hand over the property in the state it was in, free of concerns, arguing that the seller suffers from a mental disorder and is unable to manage his affairs Then, the court of first instance ruled the annulment of the sale contract and the delivery of the property in the state it was in, and the "appeal" upheld the ruling.

He also refused to appeal for cassation for several reasons, including that the medical report proved the seller’s incompetence as one of the imbecile, and the imbecile is confined to himself, and that the buyer has the right to refrain from fulfilling his obligation to deliver the sale as an effect of nullity until the price is returned from the seller.

The court clarified that the contested ruling obligated the seller to pay the buyer the price of the sold share, and a delay interest of 4% annually from the date of filing the lawsuit, denying the existence of fraud, especially since the buyer is responsible for identifying the seller’s eligibility status, and therefore, the consequences of what he has arranged on himself. Debts fall on him alone.

The court indicated that what the legal representative did on behalf of the seller to file a lawsuit for the nullity of the sale contract was in his capacity as a representative of his quarantined (the seller), to protect his interest, and to take care of the duties of guardianship imposed on him, pointing out that he is considered - from a personal point of view - a foreigner from the invalid sale contract. The insignificant signature is attributed to the seller himself, and nothing indicates his presence in this contract, his signature of it, or his payment of the price.

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