Can a Creditor Claim Interest for Late Settlement by his Debtor?
According to Commercial Transaction Law of the U.A.E. the creditor shall have the right to receive an interest on the commercial loan according to the rate provided for in the contract, and if the rate of interest is not specified in the contract, it shall be computed according to the rate of interest prevailing in the market at the time of dealing; nevertheless the interest in this case shall not exceed 12% up to the time of settlement from the contractual due date. If the interest rate has been agreed upon in the contract, and the debtor has delayed the payment, the delinquent interest shall be computed on the basis of the rate agreed upon until the completion of the payment. The creditor may claim a supplementary compensation, in addition to the accrued interest, for the delay, without the necessity to prove, that the damages, exceeding such interest has been caused by the debtor through an act of fraud or through a serious error. However if the creditor, while claiming his right, h
