Dubai: How can residents claim money deposited for a staycation with local hotels?

Question: We had a family staycation in Dubai during the Eid Al Fitr holidays. During check-in, the receptionist informed us that I could pay the security deposit using a debit card, and the amount would be refunded to my account within three working days. I paid Dh1,000 with my debit card, but it has been over two months and the money has not yet been refunded. I have contacted the hotel multiple times, and they always have an excuse for the delay. What should I do in this case?

Answer: It is assumed that the hotel has issued a receipt for the deposit you paid to the hotel and this receipt states that the deposit is refundable. Therefore, the provisions of UAE civil transactions law are applicable.

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In the UAE, a hotel, while booking hotel rooms and hotel apartments, will issue terms and conditions related to reservation, and it may also cover the payment of a security deposit. The terms and conditions (contract) of a hotel room/hotel apartment booking will contain essential obligations of the parties to the contract. This is in accordance with Article 141 of Federal Law No. 5 of 1985 on Civil Transactions Law, which states:

“1- A contract is not formed except through the agreement of the parties on the essential elements of the obligation and on all the other legitimate conditions which the parties consider them to be essential.

2- Where the parties agree on the essential elements of the obligation and on all the other legitimate conditions which the parties consider them to be essential, reserving some details to be agreed upon at a later date and did not condition the formation of the contract on the agreement on these matters, the contract is considered formed. Should any difference arise as to these pending details, the judge shall decide thereon according to the nature of the transaction and the law provisions.”

Therefore, a contract shall be implemented based on its provisions. This is in accordance with Article 246(1) of the UAE Civil Transactions Law, which states, “The contract shall be implemented, according to the provisions contained therein and in a manner consistent with the requirements of good faith.”

If one of the parties to a bilateral contract does not perform its contractual obligations, the other party may serve notice to comply with the specific performance of a contract and may approach a court which has jurisdiction in the UAE, where a judge will decide on the matter. This is in accordance with Article 272 of the UAE Civil Transactions Law, which states:

“1-In bilateral contracts, if one of the parties does not perform his contractual obligations, the other party may, after serving a formal notification to the debtor, demand the performance of the contract or its rescission.

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