Transport company ordered to pay Dh250,000 for breach of contract

ABU DHABI — Upholding the lower court's verdict, the Federal Supreme Court has ordered a transport company to pay a contracting firm Dh250,000 as compensation for breaching the terms of an agreement signed by both the sides.

By Adel Arafah

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Published: Fri 2 Feb 2007, 9:22 AM

Last updated: Sun 5 Apr 2015, 2:25 AM

According to court records, the contracting company filed a lawsuit at the Abu Dhabi Federal Court of First Instance, alleging that the transport company had failed to adhere to the agreement for transporting raw materials from Greece at a cost of $2 million to implement housing projects in the country.

The transport company did not deliver the materials which caused the contracting firm financial damages estimated at Dh250,000.

The defendant said the reason for not delivering the raw materials was the high transportation cost.

On the basis of a report submitted by an expert holding it responsible for the delay in transportation, the Court of First Instance ordered it to follow the contract and pay the contracting company Dh 250,000 as compensation.

The transport company moved the Abu Dhabi Federal Court of Appeal which turned down its petition and upheld the lower court's ruling.

The company then moved the apex court which also upheld the previous ruling.

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