Khaleej Times, Mon, Jul 01, 2024 | Dhu al-Hijjah 25, 1445
Dubai: How can residents claim money deposited for a staycation with local hotels?
Emirates:
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.
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.
2-The judge may order the debtor immediate performance of the contract or
grant him specified additional time, as he may order rescission with
damages, in any case, if deemed justified.”
Based on the aforementioned provisions of law, if the terms and conditions
of your hotel booking reservation state that the security deposit will be
refunded to you and if you have any proof related to the payment of the
deposit amount, you shall be entitled to refund of such security deposit
from the hotel. In the event the hotel does not refund the security deposit,
then you may file a complaint against such hotel with the Department of
Tourism – Dubai. Alternatively, you may issue a legal notice to the hotel
and thereafter approach the Dubai Court and file a civil case commencing
with the Centre for Amicable Settlement of Dispute of the Dubai Court as the
claim amount is less than Dh500,000.