The Abu Dhabi Commercial Court (First Instance) ruled to annul a partnership contract between two young men who agreed to buy cars from auctions, resell them, and share the profits. The court ordered the defendant to return the principal capital to the plaintiff after the defendant purchased four cars, sold them, and refused to distribute the profits.

Details reveal that one young man filed a lawsuit against his partner, demanding payment of AED 62,500 plus legal interest at 12% from the date of claim until full payment, as well as fees and expenses. He stated that they agreed to enter a partnership aimed at buying cars from auctions and selling them later, with profits to be split 50% each. He paid the claimed amount to start the partnership, but the defendant breached his obligations by not distributing profits or returning the paid amounts despite amicable demands. The plaintiff supported his claim with a copy of the contract, account statements, and emails. The defendant submitted a memorandum requesting a hearing of witnesses and dismissal of the claim with costs.

The court clarified in its ruling that documents and an expert report confirmed the plaintiff paid AED 62,500 to the defendant. The expert noted the defendant bought four cars from the auction but did not prove payment of profits for those cars, despite admitting to selling one vehicle as stated in his response memorandum filed in the civil court.

The court noted the plaintiff proved the obligation’s existence, and the defendant must prove fulfillment, which he failed to do. This indicates the defendant’s failure to fulfill his essential contractual obligation necessary to achieve the parties’ intent despite sufficient time passing. This constitutes a fault justifying annulment of the contract, which the court ordered. The plaintiff’s request to return the capital implicitly includes a request to annul the agreement.

The court rejected the defendant’s request to refer the case for witness testimony, stating the case documents were sufficient to form its conviction. The court ruled to annul the contract, obliging the defendant to pay the plaintiff AED 62,500 plus late interest at 2% annually from the claim date until full payment, not exceeding the principal debt, and ordered the defendant to bear the case expenses while rejecting other requests.