Text Messages Are Binding: Dubai Court Enforces AED 1.3M Car Sale
A WhatsApp exchange confirming a purchase constitutes a legally binding contract under UAE law when clear offer and acceptance take place.
The Dubai Civil Court of First Instance established this standard after ordering a seller to hand over a 2021 Cadillac Escalade and transfer a special licence plate to a buyer following a disputed AED 1.3 million deal negotiated entirely over text messages.
Who Is Exposed to Digital Contract Risks
This ruling directly impacts business owners, luxury asset buyers, and private sellers conducting commercial or personal transactions via digital platforms in Dubai.
Any party negotiating prices, vehicle details, or asset transfers over messaging apps should recognize that written confirmation creates enforceable legal obligations once the other party fulfills their end of the deal.
How the AED 1.3 Million Deal Unfolded
The dispute began when a buyer agreed to purchase a 2021 Cadillac Escalade and its distinctive licence plate for AED 1.3 million through a series of WhatsApp messages.
The buyer explicitly texted: “I bought the car”, specified the vehicle details and plate number, added “for AED1.3 million”, and asked, “Is there confirmation?” The seller replied: “Yes… confirmed.”
The following day, the buyer issued a bank cheque for the full AED 1.3 million amount, which the seller cashed immediately. However, the seller subsequently refused to hand over the vehicle or transfer ownership of the special licence plate, prompting the buyer to file a lawsuit.
In court, the seller argued that no contractual relationship existed, claimed the transaction was fictitious, and requested a suspension of proceedings pending a linked criminal case. The court rejected those arguments, noting that the seller was the direct beneficiary of the cashed cheque and finding no evidence to justify delaying the case.
To verify the transaction, the court appointed a specialized joint committee comprising an information technology expert and an accounting expert. The IT expert verified the authenticity of the WhatsApp conversation and confirmed the messages were sent and received from the relevant phone numbers. At the same time, the accounting expert confirmed that AED 1.3 million was deducted from the buyer’s account, finding no record of vehicle ownership transfer, plate transfer, or returned funds.
Under UAE law, mutual assent expressed as offer and acceptance forms a valid contract whether communicated verbally or in writing. Because the buyer made a clear offer and the seller responded with explicit acceptance, the court ruled the agreement fully binding, particularly since the full purchase price was paid the next day.
The court ordered the seller to immediately deliver the 2021 Cadillac Escalade, transfer ownership of the special licence plate through competent authorities, and pay all court costs, expenses, and legal fees.
