Introduction
UAE is known to be a developed nation with a robust legal framework that governs its entire system. Nonetheless, the legal system of the UAE is designed to support fairness and justice. Besides, it also held a strong concept of accountability and ensured transparency.
What is breach of trust?
As per the law, the breach of trust is considered a serious criminal offense. Under the UAE laws and regulations, dishonesty and misuse of power by someone who is entrusted with someone else’s assets, funds, property, or legal responsibility is categorized as a breach of trust. Dubai law firms, are the best law firms to learn about new rules, advanced rules and breach of trust in United Arab Emirates. Because these law, firms recruit the top lawyers of UAE. We will discuss the lawyers in UAE at the end, let us go back to topic first.
UAE Society
UAE society is based on strong moral and social values where confidence, integrity, honesty, and trust are given key importance. Nevertheless, in a society that is built on personal integrity, confidence, and faith.
Serious Criminal Violation
The breach of trust is a serious criminal violation. It becomes even more severe when there is involvement of employers, employees, business partners, and legal agents.
Breach of trust as per UAE Penal Code
A breach of trust usually occurs when an individual is entitled or entrusted with the assets, funds, property, or legal authority misuses the power. Its misuse of trust can be for personal monetary or business gain.
However, this act causes direct harm to the owner. According to the UAE penal code, it is a criminal offense, which is the breach of civil liability.
A serious Crime in UAE
In personal, business, and commercial capacity, breach of trust is termed a serious crime under the UAE federal decree law. According to the federal decree law no. 31 of 2021, there are clear penalties for breach of trust in the UAE.
The UAE penal Code has elaborated on the punishments that explains strict measures based on the nature and severity of the offense. In addition, the gravity of the offense is also taken into account.
UAE Penal Code
Under Article 453 of the UAE penal Code, an individual may be found guilty of breach of trust if he illegally disposes of the funds entrusted to them. Besides, they use the entrusted asset, property, or items for unauthorized purposes.
Fiduciary Relationships
Furthermore, failure to return the goods, assets, or property given under the fiduciary relationship is also a breach of trust. Any misuse of power of attorney is also the misappropriation of legal authority.
Punishment Offenses
All these above-mentioned acts are punishable offenses. Those acts that are committed intentionally and without the consent of the owner are categorized as criminal actions. It often happens in different kinds of settings.
- It is likely to happen in employment relations, Human Resources HR, real estate transactions, Tenancy agreements, power of attorney, legal guardianship, joint ventures, partnerships, corporate fiduciary responsibilities, and much more.
Real-world scenarios of breach of trust in UAE
The concept can be better understood with real-world examples, which makes it practical and easy to understand. Any employee entrusted with company funds diverts the money into the personal account.
Another example is a tenant given the authority to occupy the full rental property to others for profit without informing the owner or landlord.
Agent holding Power of Attorney
Any real estate or legal agent who holds the power of attorney sells the property against the owner. It even contradicts the owner’s interest.
For instance, the partner in a business takes the company assets, equipment, or items for personal use without acquiring proper authorization.
Added, if an elderly person care taken misuses the funds, property, or assets for any personal gains or without adequate permission is also breach of trust in the UAE.
In all these scenarios, the legal consequences are evident and thus, if it is supported with strong witnesses and pieces of evidence, is a breach of a fiduciary or contractual duty.
UAE legal framework that governs the breach of trust
UAE federal decree law is also known as UAE penal Code. The federal decree law no 31 of 2021 has categorically declared such an act as a criminal act. There are a few articles applied including article 453, article 454, and article 455.
Article 453: Main Definition of Breach of Trust
Article 453 mainly covers the concept by stating the definition of breach of trust. It explains anyone who embezzled, squanders, or misuses, any movable or immovable property or asset, document, or right entrusted to them.
Mostly, there is a contract of trust between the 2 parties just like in the case of tenancy agreement, power of attorney, mortgage, leasing agreement, and much more.
Any breach of contract under Article 453, is a punishable crime that will lead to fine or imprisonment.
Penal Code UAE requirements
UAE penal code requires the intention to be proven. The act must be intentional. However, if the accused acted in good faith or without malicious intention, then automatically the charges are dismissed, null, or reduced.
According to Article 454
In case the breach involves the public servant or government official is serious. There are more strict penalties applied as per the law.
The stricter punitive measures are imposed due to the added responsibilities and sensitivity of the job. Additionally, any abuse of public office in the UAE triggers more weight to the crime.
Under Article 455
Under article, 455 of UAE penal Code, forgery or use of forged documents will lead to additional charges. It will result in heavier penalties. It could also lead to jail sentences or extended imprisonment.
Mainly the punishments and penalties are based on the severity and nature of the breach. It also accounts for the value of the assets or property involved.
Besides, there are also triggering factors that exist including fraud, involvement of public funds or property, or collusion.
Seek Professional Help:
Due to the complexity of the case, it is essential to consult a lawyer in the UAE. They are capable of drafting legal documents and addressing legal complaints more effectively. Lawyers in Dubai, are one of the top lawyers or attorneys in United Arab Emirates. Lawyers in Dubai are mostly from top UAE Law Firms, which are located in Emirate of Dubai.
The lawyers in UAE especially lawyers in Dubai, will be involved in collecting evidence and gathering the useful information needed for legal representation. They will be helpful throughout the investigation process and render assistance during court trials.
Well-equipped lawyers in the UAE will ensure safe legal avenues to be explored for their clients.
They will be involved in submitting defense shreds of evidence along with cross-examination results. Further, they will also play a crucial part in negotiating with the prosecution.
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