Dubai court orders Dh13,000 payout after holiday package fails

Dubai: A Dubai civil court has ordered the cancellation of a holiday package contract, directing a company to refund a client Dh8,268.20 and pay an additional Dh5,000 in compensation, after ruling that it breached its contractual obligations and misled the client with false promises.

The judgment, issued in absentia after the company failed to attend the final hearing, found that the claimant had been induced into purchasing the package in August 2025 under misleading circumstances. Court records show that the claimant was contacted by company representatives claiming he had won a prize in a raffle draw and was invited to attend a promotional event at a hotel, where he was persuaded to buy a package valued at Dh8,550.

The package included promises of hotel stays, annual holidays, airport transfers, guided tours and complimentary airline ticket vouchers, with the claimant stating that his main objective was to arrange travel for his mother to visit the UAE.

The claimant paid the full amount on August 14, 2025, via credit card, after being assured that the payment would be processed under a 0 per cent interest instalment plan. However, the court found that the company later imposed a 0.70 per cent monthly interest (EMI), resulting in additional charges of Dh718.20, in direct contradiction of those assurances.

Following payment, the claimant faced continuous delays and lack of response when attempting to book travel or redeem the promised benefits. Apart from a partial refund of Dh1,000, none of the agreed services were delivered, and all booking requests remained pending.

Despite repeated follow-ups and personal visits to the company’s office, the firm failed to act, instead claiming that approvals were pending from an office in the United Kingdom — a justification the court found inconsistent with its status as a Dubai-based entity.

The claimant later filed a complaint with the Dubai Department of Economy and Tourism (DET) , which confirmed that the company had been shut down due to legal violations, making administrative resolution impossible.

A court appointed expert confirmed that the claimant had fully met his contractual obligations by paying the agreed amount, while the company failed to provide any of the contracted services or demonstrate that it had taken steps to fulfil the agreement. Documents also showed that the company had ceased operations due to legal breaches. The expert assessed the claimant’s direct financial loss at Dh8,268.20, leaving the issue of additional claims, including translation costs and moral damages, to the court’s discretion.

In its reasoning, the court stressed that contracts are binding and must be executed in good faith, noting that failure by one party to fulfil its obligations entitles the other to seek termination and restitution. It found that the company’s conduct amounted to a clear breach of contract, warranting rescission and repayment.

On compensation, the court ruled that the claimant suffered both financial and emotional harm, including loss of funds, missed opportunities, legal expenses and distress caused by the uncertainty and delays. It awarded a lump sum of Dh5,000 as fair compensation.

The court ultimately ordered the termination of the contract dated August 14, 2025, the refund of Dh8,268.20, payment of Dh5,000 in compensation, and directed the company to bear all court fees and expenses.