Ask Gulf News: What are your rights when a client refuses to pay for completed work?

Question: My company completed contracting work for another company, which has refused to pay the due amounts without any reason. Do we have the right to claim compensation for our losses due to their delay, even though we do not have written evidence of such losses?

Answer: You have the right to claim such compensation even if you do not have written evidence, because, as a general rule, anyone harmed by an unlawful act has the right to claim compensation for the resulting damage, whether existing or subsequent, provided that the three elements are present: fault, harm, and a causal link between them.

Compensation is usually estimated and decided by the court, taking into consideration several circumstances, including whether you breached your obligations in carrying out the assigned work or not.

It is established by Cassation Court No. 991/2025 (Commercial) that “a debtor's delay in paying what is due without a valid excuse constitutes harm to the creditor. This harm, resulting from the debtor's procrastination in payment, entitles the creditor to compensation, in accordance with the law. The debtor's deprivation of the creditor's right to benefit from their dues necessitates compensation, even if the debtor did not use the money for their own benefit.”