How does UAE Law treat consequential loss?
Article 283 (1) of the UAE Civil Code states “harm may be direct or consequential”. Article 283 (2) states that “if the harm is direct, it must unconditionally be made good, and if it is consequential there must be a wrongful or deliberate element and the act must have led to the damage”. Article 283 (2) distinguishes between damages payable for “direct” loss and damages payable for “consequential” loss. All loss of profit and consequential loss requires a “malicious element” to be present, and this has been interpreted by the Dubai Court of Cassation as requiring a “stronger” element than negligence. The claimant is required to prove a “malicious” element on the part of the defendant at the time the tort was committed, which may be a difficult burden of proof to discharge. Would a person be entitled to moral as well as material damages? It is possible for a person to make a claim for moral damages. These may include violation of a person’s freedom, dignity, reputation, social or finan
