UAE: School Principal Demands 300,000 AED Compensation for Breach of Contract

asmaa - | Arab News

Due to a violation of contract and interference in the school's administrative operations, the Al Ain Court of First Instance has ruled that the owner of a private school must pay the school principal with 10,000 dirhams.

Compensation for Breach of Contract

The Al-Ain Court of First Instance recently issued a significant ruling concerning a dispute between the owner of a private school and its principal. The dispute arose from allegations of contract breaches and interference in administrative matters.

Plaintiff’s Claims

In this legal battle, the director of the private school initiated legal proceedings against the school’s management, seeking the annulment of their existing contract. The plaintiff asserted that the defendant, the school’s license holder, owed him 200,000 dirhams in compensation, along with legal interest of 12% from the date of filing the lawsuit. Additionally, the plaintiff demanded an additional 100,000 dirhams as compensation for both tangible and intangible damages, including financial losses and missed earnings opportunities.

Breach of Contract Allegations

The plaintiff contended that the defendant had entered into a management contract wherein the plaintiff was tasked with overseeing various aspects of the school’s operations for a period of one year. This included technical, administrative, financial, and executive duties, with the plaintiff entitled to 25% of the net profit. However, the plaintiff argued that the defendant failed to uphold their end of the bargain, alleging interference in daily operational matters such as employee appointments and salary administration.

Supporting Evidence

To substantiate the claims of contract breach, the plaintiff presented copies of the school management contract as well as a decision from the Mediation and Conciliation Center, which escalated the dispute to the judicial system for resolution.

Legal Principles

The court, in its deliberations, underscored the fundamental principle that contracts are binding agreements that impose obligations on all parties involved. Should one party fail to fulfill its contractual duties, the aggrieved party has the right to seek enforcement of the contract or its annulment. The judge retains the discretion to compel immediate compliance or grant a specified timeframe for fulfillment. Furthermore, a contract may be deemed null and void if exceptional circumstances render performance impossible.

Expert Testimony

Crucially, an expert report submitted to the court confirmed the existence of a contractual relationship between the plaintiff and the defendant, based on a management contract executed in August 2023. The report highlighted instances where the defendant had violated the terms of the agreement by unilaterally terminating employee contracts, managing payroll matters, and implementing unauthorized salary deductions.

Court’s Ruling

In light of the evidence presented and the legal principles invoked, the court ruled in favor of the plaintiff. The court annulled the existing management contract between the parties and ordered the defendant to compensate the plaintiff with 10,000 dirhams. This sum was intended to cover damages resulting from the breach of contract, as well as the expenses associated with the original lawsuit and expert testimony.

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