Ask Gulf News: What are your rights if a landlord cancels a shop rental after signing?

Question: I signed a rental contract with a landlord to lease a shop to sell my clothing brand. However, the landlord did not hand over the shop, claiming that the previous tenant refused to vacate the premises. As a result, I suffered financial losses after signing a contract with an interior design company to fit out the shop, in addition to losing expected sales profits. Do I have the right to claim compensation from the landlord who terminated the contract? Please advise.

Answer: The right to compensation is determined by the court, which also has the authority to assess and estimate the value of any damages. You are entitled to file a claim for compensation; however, the burden of proof lies with you. This means you must provide supporting documents to substantiate your financial losses, after which the matter will be left to the court’s discretion.

Once a rental contract is signed, the landlord does not have the legal right to prevent the tenant from benefiting from the leased property under the law regulating the relationship between landlords and tenants. Furthermore, under the Civil Transactions Law, the landlord is not permitted to unilaterally terminate the contract without the tenant’s consent.

Based on this, you have the legal right to seek compensation, but the final decision will rest with the court.

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