Source: Emirates Today – Abu Dhabi Commercial Court
Car Agency Ordered to Refund Vehicle Price Over Hidden Defects Despite Warranty
The Abu Dhabi Commercial Court ruled that a car agency must take back an electric vehicle and refund its buyer after repeated mechanical failures were proven to be hidden defects despite the vehicle remaining under warranty until 2029.
According to the court-appointed technical expert, the defects affected the engine and oil system, causing repeated breakdowns and reduced operational efficiency, ultimately compromising the vehicle’s reliability and safety as a means of transportation.
The court stated that the defects could not have been detected through ordinary inspection at the time of delivery and only became apparent through actual use or specialized technical examination, qualifying them as hidden defects under the law.
The court ordered the cancellation of the sales contract and directed the agency to pay the buyer AED 125,000, in addition to 3% annual legal interest from the date of claim until full payment, while also bearing litigation expenses and the cost of transferring the vehicle ownership back to the company.