Built on Trust, Lost on Paper: What They Thought Was Enough — Wasn’t
- Assist Plus
- Aug 14
- 3 min read
Not every business dispute comes from bad intentions.Sometimes, it’s the byproduct of trust built over time — and the assumptions that follow.
What often gets lost in this process is paperwork. And in some cases, the business itself.
Here’s a real case we handled that shows how even strong business relationships can collapse without a proper business cycle in place.
The Case: From Smooth Sailing to Sudden Dispute
A luxury gemstone and gift boutique in the UAE had a long-standing relationship with a high-net-worth client.
For months, the buyer placed smaller orders — AED 10,000 here, AED 20,000 there — always paid promptly. Everything ran smoothly, with mutual trust at the center.
So when a large order came in — AED 450,000 worth of merchandise — the boutique didn’t think twice.
They issued a Proforma Invoice, prepared the order, and arranged delivery. There were phone calls, messages, and verbal confirmations.
But no formal agreement.No delivery note.No tax invoice.
The boutique expected payment, as always.
It never came.
The buyer claimed they never officially accepted the goods and that the shipment had been returned. They also pointed out the absence of a tax invoice and any signed delivery proof.
In court, that single missing detail changed everything.
Proforma Invoice vs. Tax Invoice: What’s the Difference?
When we first reviewed the case, one thing stood out: the boutique’s main evidence was a Proforma Invoice.
It looked official — buyer’s name, item descriptions, total value of AED 450,000.
But here’s the problem: a Proforma Invoice is not a sales invoice.
Think of it as saying:
“Here’s what the deal would look like — if you agree.”
It’s a draft, not proof that the transaction happened.
A Proforma Invoice is useful for:
Sharing pricing, quantities, and terms in advance.
Helping clients secure approvals, import permits, or financing.
But legally? It holds no weight.It can’t be booked in accounting.And in court, it’s not evidence of a sale.
A Tax Invoice, on the other hand, tells a different story:
It’s issued after the sale is completed.
It confirms goods/services were delivered and payment is due.
It includes final pricing, taxes, and payment terms.
Courts accept it. Auditors rely on it. Buyers act on it.
In this case, the boutique relied on the Proforma — when they needed the Tax Invoice. That difference proved decisive.
The Outcome
With no tax invoice or signed delivery confirmation, the boutique’s claim relied solely on the Proforma Invoice — which the court dismissed as non-binding.
The trust between the parties, no matter how genuine, wasn’t enough to prove the sale. Without documentation, the matter remained legally unresolved.
Whether the goods were actually returned or not wasn’t the deciding factor — the lack of formal proof was.
Lessons Learned
This isn’t a story about blame — it’s about risk management.
Trust is valuable in business. It builds momentum, strengthens relationships, and fuels growth. But it must be backed by structure and documentation.
If you’re selling high-value products or services:
Always issue a Tax Invoice once the sale is final.
Secure signed delivery notes or formal acknowledgments.
Avoid relying only on messages or verbal agreements.
Know which documents protect you — and which don’t.
Sometimes, the most expensive mistakes come from the relationships we were most confident in.
Let trust build the relationship.Let documentation protect it.