“Fraud invalidates actions,” an original and important legal rule that must be paid attention to, because it is based on moral and social foundations for combating deception and fraud, which the legislator was keen on, confirming the principle of good faith that must prevail in all legal transactions and actions, to protect the rights of individuals and society.
The law stipulates “invalidation” as a penalty for fraud in the “announcement in the claim statement,” meaning that if it is proven that the announcement was made in a way that involves fraud so that it does not reach the defendant’s knowledge, and he loses the ability to defend himself, or he misses the deadlines for appeal, if the announcement was Especially by a ruling, even if it apparently fulfills the orders of the law.
Based on this rule, the Dubai Court of Appeal ruled to invalidate a preliminary ruling issued in a commercial case involving a company, because the appellant deliberately wrote an address that did not belong to the appellant, and did not take the prescribed legal methods regarding advertising. The Court of Appeal decided to cancel this ruling and returned the case to the court of first instance. Degree to look at again.
In the field of contracts, proving the occurrence of fraud on the part of one of the contracting parties means that the contract may be terminated, pursuant to the text of Article 185 of the Federal Civil Transactions Law No. 5 of 1985 and its amendments, and consequently the removal of its effects and the return of the contracting parties to the state they were in before the contract. If this is impossible, compensation shall be ruled in accordance with the text of Article 274 of the same law, while Article 246/1 requires that the contract be implemented in accordance with what it included. It must be done in a manner consistent with what is required by good faith and not fraud.
The UAE legislator has dealt decisively with fraud, even in the case of final rulings, in Article 165 of the Federal Civil Procedure Law No. 11 of 1992 and its amendments, as it includes exceptional cases in which it is permissible to appeal the rulings issued in a final manner, by submitting a petition for reconsideration. At the forefront of these cases, if the opponent commits fraud that would influence the ruling.
An example of establishing the principle of good faith and combating fraud in the criminal law is that obtaining, by surprise or fraud, the signature, seal, or fingerprint of a person without his knowledge of the contents of the document or without his consent. This is considered “forgery” according to the requirements of Article 216 of the Federal Penal Code. No. 3 of 1987 and its amendments.
The bottom line is that the law considered fraud to spoil everything, so it allowed it to be proven by all methods of proof stipulated in the law, and the trial court has the authority to extract the elements of fraud from any evidence it is comfortable with, as long as this evidence has its correct source from the papers.
There are wonderful examples of many rulings that the article cannot enumerate, which did justice to those with good intentions and decisively confronted all manifestations of fraud and deception.
Senior legal advisor
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