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Abu Dhabi court orders tenant to pay remaining rent after owner denies early termination
The ruling underscores the importance of obtaining formal agreement from all parties when terminating commercial lease contracts
- PUBLISHED: Tue 26 Aug 2025, 5:56 PM
The Abu Dhabi Commercial Court-Appeal has ruled in favour of an owner against a tenant, upholding a lower court ruling and allowing the enforcement on a cheque issued under the lease agreement between the two parties.
The ruling, issued on August 25, rejected the tenant’s claim that she had terminated the lease early and was not liable for the remaining payments.
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In her claim, the tenant had argued that she had ended the lease, refused to continue her occupancy of the lease property (a kitchen), and handed it over to the building's custodian. She also claimed to offer 3-month rent as a compensation to the owner.
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In addition, the tenant also requested that an expert be appointed to determine the circumstances surrounding the issuance of the cheque and to verify control over the leased property.
In response, the owner said that no formal agreement had been reached to terminate the lease, emphasising that the remaining rental payments were still due under the contract, which is set to expire in February 2026.
On July 22, the court of first instance has allowed the enforcement on the cheque to continue and ordered the tenant to cover court costs, including Dh5,000 in attorney’s fees. Additionally, the security deposit of Dh5,000 was confiscated. However, the tenant filed an appeal.
Appeal court ruling
In her appeal, the tenant has requested the cancellation of the enforcement, appointment of an expert to inspect the property, and a ruling that the cheque lacked legal enforceability due to the claimed early termination of the lease.
The court, however, stated that the tenant's actions to terminate the lease contract unilaterally did not constitute a valid termination, as mutual consent is required under the UAE Civil Transactions Law. The court also referenced Federal Decree-Law No. 50 of 2022, which confirms that a cheque constitutes a valid, enforceable instrument.
Consequently, the court upheld the lower court ruling, confirming that the owner was entitled to enforce the cheque. The appellant was also ordered to pay court costs and an additional Dh500 in attorney’s fees.
The ruling underscores the importance of obtaining formal agreement from all parties when terminating commercial lease contracts.
Yasmin Hussein is an Assistant Digital Editor who believes that every news story carries a human element. Her motto is 'get it first, but first get it right'.