Seller made fraud documents, took cheques and bounced
Dear Community,
I'm looking for some guidance on a UAE cheque bounce situation.
I signed a sale agreement with someone who represented himself as the seller of a business/property (commercial assets). As part of the agreement, I issued several post-dated cheques as the payment method.
After signing, I discovered that the person who entered into the agreement with me does not appear to be the registered owner of the assets/business, and I have not been provided with any document showing that he was authorized by the owner to sell them. Because of this, I informed him that I could not proceed with the transaction and asked him via WhatsApp to return all of my remaining cheques.
Despite my request, he deposited one of the cheques, which bounced, and he has refused to return the remaining cheques. Instead, he is insisting that I continue making payments and has threatened to file cheque bounce cases if I don't.
My questions are:
- What legal steps can I take in the UAE to prevent misuse of the remaining cheques?
- If I have already informed him in writing that I dispute the validity of the underlying sale agreement and requested the return of my cheques before he deposits them, does that help my position?
- Should I file a civil case, police complaint, or any other legal action before he deposits the remaining cheques?
- Has anyone dealt with a similar situation where the person collecting payment was not the legal owner or could not prove authority to sell?
I'm already planning to consult a lawyer, but I'd appreciate hearing from anyone familiar with UAE law or who has experienced something similar.