Abu Dhabi: The Abu Dhabi Commercial Court of First Instance has terminated a long-term car rental contract between a car rental company and a young man, ordering him to return the vehicle and pay Dh40,379 in outstanding rent, fees and traffic fines.
The court also ordered him to pay a fair rent of Dh2,299 per month until the vehicle is returned.
The car rental company filed a lawsuit seeking termination of the contract and the return of the vehicle intact and free of damage and traffic violations. It also sought payment of outstanding contractual dues, fees and fines, as well as fair rent for the period during which the vehicle remains in the defendant's possession.
The company said the defendant rented the car in May 2025 under a three-year contract at a monthly rate of Dh2,299. He took possession of the vehicle after signing an acknowledgement of receipt and accepting responsibility for damage.
However, the company said he breached his contractual obligations by failing to make the required periodic payments, resulting in the accumulation of outstanding amounts.
A court-appointed expert consultant found that the defendant owed approximately Dh40,379 as of June 30. The amount included unpaid rent, Salik and Darb charges, parking fees and traffic fines paid by the company while the vehicle was in his possession.
In its ruling, the court said a lease is a contract binding on both parties and that, under the Civil Transactions Law, a breach by one party allows the other, after giving notice, to seek either performance or termination of the contract.
Based on the expert report and the defendant's proven failure to pay the rent due during the lease period, the court found grounds to terminate the contract and order the return of the vehicle.
The court accepted the expert's findings that the company was entitled to Dh32,186 in outstanding rent, Dh384 in Salik, Darb and parking charges, and Dh7,809 in traffic fines paid by the company, bringing the total to Dh40,379.
It also awarded the company fair rent of Dh2,299 per month until the vehicle is returned, as the car remains in the defendant's possession despite his failure to meet his financial obligations.
However, the court rejected the company's separate claim for Dh9,154 in unpaid traffic fines because it had not provided documents proving that those fines had been paid.
The court ordered the termination of the lease agreement and directed the defendant to return the vehicle, pay the outstanding Dh40,379 and legal interest, as well as fair rent, fees and expenses. He was also ordered to pay Dh200 towards lawyers' fees and conciliation and settlement costs, and Dh3,150 in expert consultancy fees.
All other claims were rejected.