Dispute Resolution on Maalexi.com

Definition

A Deal Dispute is a contractual disagreement between a Buyer and Seller on Maalexi.com. The contract terms are listed clearly in the Sales and Purchase Agreement ('SPA') whenever a new transaction is initiated and can be accessed on the User Dashboard. There are three types of transactions or deals that are undertaken by users on Maalexi.com - Firstly, international export and import transactions which involve shipments moving across international borders and are called Export-Import ('EXIM') transactions. Secondly, trasactions within the local boundaries of United Arab Emirates and involve bulk or container trading referred to as Domestic ('Domestic') transactions. Thirdly, trasactions within the local boundaries of United Arab Emirates, and involve local delivery or distribution in wholesale pack of goods to buyers, referred to as Local ('Local') transactions.

Legal Jurisdiction

Maalexi.com uses New York Law as the basis for the SPA done for EXIM transactions. In case a dispute needs to go for litigation, then the jurisdiction of the courts will be New York City, USA. When the trasactions involve Domestic and/or Local transactions then the jurisdiction of the courts will be in the Dubai International Financial Center ('DIFC') Court, Dubai, UAE.

User Responsibility

The Maalexi team only guides both parties during the Dsipute Resolution process so that the dispute could be resolved as early as possible. It is upto the parties to follow the process and come to a final resolution.

Penalty

The responsible party as determined by the Dispute Resolution process will be issued a ‘Penalty Invoice’ equal to 5% of the Total Sales Value as specified in the SPA, which needs to be paid within 15 days of this Penalty Invoice date. Non- payment of the Penalty Invoice and repetition of this action of non-payment by more than three-times, will result in blockage and/or permanent removal of the user from Maalexi.com.

Dispute Initiation

A user can initiate a Deal Dispute by clicking on the Dispute button on the User Dashboard and specifying the reasons for raising a dispute. The user initiating the dispute is called the “Affected Party” and the user accused of the violation is called the “Defaulting Party”. After initiating a dispute, the dispute is officially recorded in the Maalexi records, and the Deal is now paused until the Deal Dispute is resolved.

Dispute Initiation Message

On Initiation of a Deal Dispute, an email is sent to both parties as well as the Operations Team at Maalexi.com. This is called the Dispute Initiation Message. This contains the reason for the Dispute as mentioned during Dispute Initiation. The email also provides the process for resolving the dispute.

Dispute Resolution Process

The Maalexi.com Dispute Resolution Process has 4 steps. A dispute can be resolved in any of these steps. The first 3 steps are undertaken under a guidelines defined by the International Centre for Dispute Resolution ('ICDR') in New York in case of EXIM transactions, and in-line with the guidlines defined by Dubai International Arbitration Center ('DIAC') when the transactions are undertaken as Domestic and/or Local. The ICDR is the international division of the American Arbitration Association (AAA), which is the the largest arbitrator institution in the world, and DIAC is an international arbitration center based in Dubai, UAE which is an initiative of Dubai Chamber of Commerce. Both the ICDR and DIAC offer the ability for users of Maalexi.com to resolve disputes online (DIAC is offline but easy to manage locally by users), providing time and cost savings. The final step for resolution shall be litigation which will be handled by commercial courts in New York, USA for EXIM transactions, and the DIFC Court in case of Domestic and/or Local transactions. The same 4 steps will be undertaken

Step 1 - Negotiation

In this step, the parties shall consult and negotiate with each other and, recognizing their mutual interests, attempt to reach a solution satisfactory to both parties.

Time Allocated for Negotiation - 15 days

Step 2 - Mediation

If a settlement is not reached within the allocated time for Negotiation, then either party may, by notice to the other party and the International Centre for Dispute Resolution, demand mediation under the Mediation Rules of the International Centre for Dispute Resolution

Time Allocated for Mediation - 30 days

Step 3 - Arbitration

If a settlement is not reached within the allocated time after service of a written demand for mediation, any unresolved controversy or claim arising out of or relating to this contract shall be settled by arbitration administered by the International Centre for Dispute Resolution in accordance with its International Arbitration Rules.

Time Allocated for Arbitration - 30 days

Step 4 - Litigation

If a settlement is not reached within the allocated time after service of a written demand for arbitration, any unresolved controversy or claim arising out of or relating to this contract shall be settled by civil courts in New York City, USA for EXIM transaction related disputes, and DIFC Court in case of Domestic and/or Local transactions related disputes.

Time Allocated for Litigation - 30 days

Timelines

In case the indicated timelines are not met by the parties, Maalexi.com reserves the right to close the transaction on its system in a way it deems fit.

Conclusion of a Dispute

Once the dispute is resolved through the 4 step Dispute Resolution Process, the Affected Party responds to the Dispute Initiation Message, with the final resolution or award letter, copying the Disputed Party and the Maalexi Operations Team. After the email is sent the Maalexi Operations Team determines whether the transaction will proceed or terminate. If the transaction is terminated, then penalties might be applied as per the resolution. A closing email is sent by the Maalexi Operations Team informing both parties about the resolution and actions taken by Maalexi.com