Question: We had a family staycation in Dubai over Eid Al Fitr. At check-in, the receptionist said I could use my debit card for the security deposit, which would be refunded within three working days. I paid Dh1,000, but it's been over two months and I haven't received the refund. Despite reaching out to the hotel several times, they keep making excuses for the delay. What should I do now?
Answer: It is understood that the hotel has provided a receipt acknowledging the refundable nature of the deposit you paid. Therefore, the relevant provisions of the UAE Civil Transactions Law apply.
In the UAE, hotels typically outline terms and conditions for room and apartment bookings, including details about security deposits. These terms constitute a contractual agreement between the hotel and the guest, as stipulated in Article 141 of Federal Law No. 5 of 1985 on Civil Transactions Law:
"A contract is formed through the mutual agreement of the parties on essential obligations and any other legitimate conditions they deem necessary. If certain details are left to be agreed upon later, and this does not prevent the contract's formation, any disputes over these details shall be resolved by the judge according to the transaction's nature and legal provisions."
Thus, contracts are to be upheld as per their terms, as stated in Article 246(1) of the UAE Civil Transactions Law:
"Contracts shall be performed according to their terms and in accordance with the principles of good faith."
If one party fails to fulfill their obligations under a bilateral contract, the other party may issue a formal notice demanding performance or rescission, as per Article 272 of the UAE Civil Transactions Law:
"In bilateral contracts, if one party fails to fulfill their obligations, the other party may, after serving a formal notice, demand performance or rescind the contract. The judge may order immediate performance, grant an extension, or rescind the contract with damages if warranted."
Accordingly, if your hotel booking terms confirm the refundability of the security deposit and you have proof of payment, you are entitled to receive the refund from the hotel. Should the hotel fail to refund the deposit, you have the option to lodge a complaint with the Dubai Department of Economy and Tourism or issue a legal notice to the hotel. Subsequently, you may approach the Dubai Court and initiate civil proceedings starting with the Centre for Amicable Settlement of Disputes, given that the claim amount is below Dh500,000.
News Source: Khaleej Times
