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What is Law
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Summer 2020
Semester 2 UG 090 : OMANI BUSINESS LAW Lecture 2 : Basics of Contract Law
B.Sc. Accounting, Auditing and Finance and
Bachelor Business Administration
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Introduction
Learning Objectives
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LO 2 Apply general principles of contract, tort and agency law
Define the nature and meaning of a contract.
Apply essential elements of valid contract.
Assess the significance of contracts and contract law in business.
Determine, the nature, meaning and different types of torts.
Explain the Basics of agency.
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What is a contract?
A contract is an agreement which legally binds the parties
A contract is an agreement between 2 or more parties which is enforceable at law
Contract law = foundation of all commercial activities
Wide range of contracts:
e.g. consumer contracts , construction contracts, sale and purchase contracts
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offer &
acceptance
free
consent
Lawful Consideration
capacity
of
parties
Lawful object
Intent to create legal relstionship
REQUIREMENTS OF CONTRACT
Six basic requirements or essential elements to make a valid contract.
There must be an agreement between two parties
There must be an intention to create legal relationship between the parties
Lawful consideration
Free Consent
Capacity
Lawful object
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Agreement
Agreement
=
Offer
+
Acceptance
Agreement
There must be at least two parties in order to create a valid contract, one making the offer and the other accepting it
offer and acceptance must be valid.
The law has had down specific rules for making the offer and its acceptance, that is, it must be absolute and unconditional.
All contracts are agreements, but all agreements are not a contract. Only agreements which are enforceable at law becomes a contract.
When offeror makes a definite proposal to the offeree and then accepted by offeree and there is meeting of minds of the parties and an agreement comes into being.
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Consideration
Consideration is needed for a valid contract.
Price to be paid for the promise
May consists of money, goods, promise, suffering some detriment (e.g. forbearance to sue)
The consideration may be present or future, however it must be real.
it is value paid for a promise.
Law will not look into the adequacy of consideration.
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Genuine Consent/ Free consent
Free consent of person is required for a valid contract.
Without genuine consent the contract is invalid.
The following elements makes the contract invalid.
Misrepresentation
Duress
Undue influence
Fraud
Mistake
CAPACITY OF PARTIES
The parties to an agreement must be competent to contract. If either of the parties does not have the capacity to contract, the contract is not valid.
the following persons are incompetent to contract.
(a) Minors,
(b) Persons of unsound mind, and
(c) persons disqualified by law to which they are subject.
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MINOR
Who is a minor – a minor is a person who has not attained the age of 18 years.
Contracts with a minor are void
This rule has been established to protect younger individuals who may not fully grasp the consequences of certain contracts.
Minors are believed to lack the capacity to contract. Therefore, courts and statutes provide minors with the ability to exit the contract at the minor’s discretion
MINOR
There are certain exceptions
contracts for certain goods and services are not voidable.
Necessaries include items and services that are necessary to the minor’s health and safety, such as food, lodging, shelter and clothing. In some instances, automobiles are considered necessaries.
The minor’s and his or her parent’s economic status can be considered in determining whether an item is considered a necessary.
Unsoundness may be categorized as:
Idiots – has completely lost his mental powers
Lunatic – the person losses the capacity due to the illness of brain or mental bodily distress.
Drunkards
Lunatics & drunkards can enter in to contract when they are capable of understanding the contract
Persons disqualified from contracting
Alien enemy
Insolvents- all property in hand of Official assignee.
He can enter into contract when court passes an order of discharge
Convicts – persons who are sentenced to imprisonment cannot enter into contract during that period.
Intention to create legal relations
There must be an intention among the parties that the agreement should attached by legal consequences and create legal obligations between the parties.
If no such intention is present on the part of parties, there is no contract between the parties.
Agreements of social or domestic nature do not form any legal relations between the parties so they cannot term as contracts.
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Legality
General principle: Freedom of contract – everyone is free to enter into any contract except
Those against public morality
Those against national security
Those against public interests
An agreement which is made for any act which is prohibited by law is not valid.
That is the object of an agreement must be lawful.
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Life of a contract
Contract remains
in
Existence till
It is discharged
There is breach
The End/ Questions
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Summer 2020
Semester 3 UG 090 : OMANI BUSINESS LAW Lecture 1 : Introduction to law, Statutory Rules
B.Sc. Accounting, Auditing and Finance and
Bachelor Business Administration
7/8/2020
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Introduction
What is Law?
Definition: A body of rules of action or conduct prescribed by controlling authority and having binding legal force.Laws are essentially a set of rules governing a civilized society, but there are 3 main characteristics that make laws different from simple rules:
Laws are a set of rules established and enforced by government.
Laws are mandatory.
Laws involve consequences.
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Functions
Establish rules of conduct
Provide a system of enforcement
Protect rights and freedoms
Protect society
Resolves disputes
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Basic Statute of the State: Constitution
Promulgated by promulgated by the Late His Majesty Sultan Qaboos in 1996
ROYAL DECREE NO. (101/96) dated 6 November 1996
ROYAL DECREE NO. 99/2011 dated 19 October 2011 Amended some Provisions of the Basic Statute of the State
Basic Statute of the State is Oman’s constitution, and provides the legal framework for the development and implementation of all legislation and government policy.
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Basic Statute of the State
The basis for all legal decisions in the Sultanate of Oman
It is the ultimate point of reference for judicial authority.
The Basic law of the state determines the form of government of the Sultanate of Oman
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Basic Statute of the State
It is the framework within which legislative and other political institutions develop
It determines the basic structural organization of political administration in the Sultanate
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Basic Statute of the State
It establishes the Majlis Oman, comprising the directly elected Majlis Al Shura and the appointed Majlis a-Dawla
It establishes an independent judiciary
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Basic Statute of the State
The Basic law of the state also defines the rights and responsibilities of Omani citizens.
the freedom from discrimination of any kind,
the rights of speech and assembly,
the right to participate in the political decisions of the country,
the rights to private property and personal privacy,
freedom of religion and
gender equality.
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The court structure
The court system has three tiers
The Courts of First Instance
The Courts of Appeal
The Supreme Court
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The Supreme Court of Oman
The Supreme Court is based in Muscat
It is the highest court of Oman
It ensures that all laws and regulations comply with the Basic Law of the State and its provisions.
In its supervisory capacity, it ensures the correct implementation of the Law by the courts
It decides on Appeals filed before it.
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The Courts of Appeal
Considers disputed rulings delivered by the Courts of First Instance.
The Appeal Court circuit consists of three judges.
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The Courts of First Instance
The Courts of First Instance are the first level court
They are responsible for ruling on
civil and commercial cases,
requests for arbitration,
personal status cases and
general, labour, tax, rent and other cases within their jurisdiction.
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References
Mola.gov.om. (2018). Home Page-Ministry of Legal Affairs-Sultanate of Oman. [online] Available at: http://www.mola.gov.om/eng/ [Accessed 10 Sep. 2018].
http://www.mola.gov.om/eng/basicstatute.aspx
Wipo.int. (2018). [online] Available at: http://www.wipo.int/edocs/lexdocs/laws/en/om/om019en.pdf [Accessed 10 Sep. 2018].
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References
Nyulawglobal.org. (2018). The Legal System and Research in the Sultanate of Oman – GlobaLex. [online] Available at: http://www.nyulawglobal.org/globalex/Oman.html [Accessed 10 Sep. 2018].
Your Bibliography: Anon, (2018). [online] Available at: https://www.worldnomads.com › Explore › Middle East › Oman [Accessed 10 Sep. 2018].
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Part II- Commercial Law of Oman
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Royal Decree No. 55/90 issued on 18 Dhu Al Hijja 1410 AH –July 11, 1990
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Commercial concern
Book 5 is now redundant because Oman has a new Bankruptcy law
Articles 1-7
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Article 1: Provisions of Oman Commercial Law apply to
all merchants
all commercial activities
Article 1 -7 (general provisions)
Article 2 : Contracts become effective upon the matching of offer and acceptance
Article 5 : If there is no provision in the Commercial Law rules of custom will apply. In the absence of custom , Sharia provisions and then the rules of justice shall apply
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Article 1 -7
Article 6 : Court – the Authority for the Settlement of Commercial Disputes
Article 7 : Separate laws exist for regulating Commercial Companies, trademarks, the Commercial Register, the OCCI and the MSM
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Chapter One- Commercial activities
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Commercial activity- Article (8 )
Commercial activities are those undertaken by any person with intent to speculate, even if such person is not a merchant.”
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Chapter Two- The Merchant
Section 1: The merchant in general
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Merchant
Article 16: Any person who pursues commercial activities in his own name, possesses the required capacity and conducts such activity as a business
Any company that adopts a commercial form, even if engaged in non-commercial activities is deemed a Merchant.
Article 19: Companies incorporated in Oman and branches of foreign companies engaged in commercial activities in Oman are also treated as commercial activities
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Merchant
Article 16: Any person who pursues commercial activities in his own name, possesses the required capacity and conducts such activity as a business
Any company that adopts a commercial form, even if engaged in non-commercial activities is deemed a Merchant.
Article 19: Companies incorporated in Oman and branches of foreign companies engaged in commercial activities in Oman are also treated as commercial activities
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Main purpose of the CR is to notify third parties about the Merchant
CR is a means of publicity and used as a evidence of the registered information.
Agricultural activities, Fisheries(not on a large scale) and Small businesses are exempted from registering in the commercial register
COMMERCIAL REGISTER (CR)
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Article 4 : Registration is Mandatory for:
All Merchants
Commercial Companies
Branches and Agencies
Article 7 : Information required for registration:
Name, Commercial Name and Logo, Place and date of birth, Type of Business, Address
COMMERCIAL REGISTER
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COMMERCIAL REGISTER
Article 20: Any activities NOT registered in Commercial Register cannot be enforced against any third party
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The End/ Questions
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COLLEGE OF BANKING AND FINANCIAL STUDIES
DEPARTMENT OF UNDERGRADUATE STUDIES
B.Sc. in Accounting, Auditing and Finance and
Bachelor’s in Business Administration
INDIVIDUAL ASSIGNMENT BRIEF -1
Assessment Component: 50 Marks
| Student Name | Student ID | ||
| Semester | 02 | Summer 2020 | |
| Assignment Title | Assignment 1 | ||
Module | UG090 OBL -Omani Business Law | Assessors: | Joyce Noronha |
| Start Date: | 23.07.2020 | Internal Verifier | Ms Sona |
| Due Date: | Formative: 8.08.2020 Summative:13.08.2020 | ||
| Required Work, Format and Grading | |||
| You must submit the assignment by the due date | |||
| Resources: You should apply provisions of relevant laws while providing advice. You can access the Internet to research about the. You should demonstrate good academic practice by the appropriate use of academic texts and journals that are properly referenced. |
| Guidelines and further information about assignment: |
| If the turnitin report generated indicates a similarity index of 20% or more, a review of your assignment is necessary to reduce the same to less than 20%. |
The user ID and Password for submitting the soft copy of the assignment through TURNITIN is as follows:
| Class ID: | 25522381 |
| Enrolment Password: | UG090 |
Submission time and date
Make sure that all the relevant details are complete. Assignments must be submitted by the due date. Assignments not submitted on or before the due date will not be assessed.
Plagiarism Writing
Summary
1. Plagiarism occurs if you use somebody else’s work in an assignment or exam answer but fail to state where you got the material. You need to be also very careful about the amount of words you are using from somebody else’s work.
2. It can happen in any type of assessment where you are given the questions or tasks in advance.
3. If another student uses your work in his/her answer(s), both you and he/she will be punished when caught.
4. Punishments for committing plagiarism can be very severe.
Details
Plagiarism is a form of cheating in which students use the work of others and present it as their own. It may include all or any one of the following
1. Copying extensively from the work of others (from sources such as books, magazines, journal, websites etc.) and submit the work as your own.
2. Copying another students’ work and submit it for assessment under your own name.
3. Allowing students to copy your work and then submit it for assessment under their own name.
What happens if you are caught?
The examining body of CBFS may punish offending students in any manner that they deem fit. Typical punishments may range from reduction in grades, making students re-sit modules and even failing students on a module or an entire award. The college considers this form of cheating as a serious offence. Therefore, be forewarned!
The assignment makes up 50% of the student’s final marks for the module
Word limit: Maximum 2000 words only.
Part I: Vocational Scenario : 2 TASKS : TOTAL 26 MARKS
Task 1: Based on Tort Law: 16 marks
Safiya was a learner driver. She was taking lessons from a licensed trainer Munira & Company Trainers. Munira the trainer accompanying Safiya checked and confirmed that Safiya’s insurance covered her for passengers before agreeing to start to her first training session.
During one of the lessons Safiya lost control while trying to take a turn. Munira told her to straighten the wheel but Safiya panicked and failed to do as asked. She approached the pavement and Munira grabbed the handbrake and tried to straighten the wheel, but it was too late. She mounted the pavement and hit a lamp post. Munira sustained injuries which included a fracture in her right leg and Scrapes and Cuts some serious and some minor. She also broke her GUCCI eyeglasses and lost her Rolex make wristwatch. Munira was hospitalized for 10 days.
When she returned from the hospital, she realized that 10 of her trainees had left and joined her competitor. Munira was planning to add two more cars to her fleet as she had submitted her bid for a government training contract. Munira had to delay her decision. Apart from Munira there were 65 other bidders. Based on the sequence of events described in the above scenario, answer the following questions:
1. By using relevant law to support your answer explain whether Munira can sue Safiya? Assuming that, Munira has a valid claim against Safiya advise her on the determination of her damages. You may use relevant case law to support your answer (1mark + 4 marks = 5 Marks)
2. Explains the elements of negligence Munira will have to prove while making a claim against Safiya (You may use relevant case law to support your answer. (6 marks)
3.Explain the defenses available to Safiya if she decides to defend herself against Munira’s claim. You may use relevant case law to support your answer. (5 marks)
Task 2: Based on Contract Law: 10 Marks
Superstrong Petroleum Products SAOC Wholesalers of petroleum & petroleum products, including racing fuels, oils & lubricants & specialty chemicals were the regular suppliers oils and lubricants to SafePackaging LLC, a manufacturer of duplex cartons operating from the Rusayl Industrial Estate.
The two companies had been dealing with each other since 1996 on an informal basis with no written contract. In January 2018, the parties agreed that it would be wise to have a formal contract written. Accordingly, Superstrong Petroleum Products SAOC drew up a draft contract and sent it to the SafePackaging LLC. SafePackaging LLC made some minor amendments and filled in some blanks and sent it back to Superstrong Petroleum Products SAOC. Superstrong then simply filed the document and never communicated their acceptance to the contract. Throughout this period the claimants continued to supply the coal. Subsequently a dispute arose in December 2019. Safepackaging refused to settle an invoice amounting to OMR 65,000 claiming that the Superstrong had charged more than the contracted price. They also claimed that there was no contract between the parties.
You are required to advice Superstrong on the validity of the written agreement between the two parties.
Part II : 2 Questions : 24 Marks
Question I: Based on Taxation Law of Oman: 10 marks
“Traditionally, double tax treaties (DTTs) served as an important policy tool to promote international economic activity by preventing international double taxation. However, despite the growing number of contributions, the empirical evidence on the effects of double tax treaties on bilateral FDI remains inconclusive.”
With reference to the above statement critically evaluate the significance of double tax treaties (double taxation avoidance agreements) to developing countries.
Question 2: Based on The Foreign Capital Investment Law of Oman: 14 marks
RightAdvice Legal consultancy is a reputed advisory firm based in Oman with presence in the GCC. You are a trainee with the firm. Imad one of the senior partners has asked you to prepare a report based on the writeup given below:
Deep Sea Fisheries and Processors a Denmark based business House is interested in establishing its footprints in Oman. The group has a global presence including the MENA region. The group is interested in engaging in aqua farming and vertical farming in Oman. The Company has approached your firm for advice and guidance.
Your report should focus on the following topics
Task 1: Explore the possibility of starting a business in Oman with or without an Omani partner. You must explain the relevant provisions of Foreign Capital Investment Law to support your advice. ( 6 Marks)
Task 2: The Government of Oman is providing several incentives to encourage multinational companies to invest in Oman. You are required to identify these incentives and advise Deep Sea Fisheries and Processors on how they can benefit from them. (4 Marks)
Task 3: There are many forms of business structures which Foreign Companies can use to start operations in Oman. As Brogan’s legal consultant you must recommend to them a suitable form of business organization. (4 Marks)
For information on aqua farming you may read the articles available on the link given below
Aqua farming proving a hit in Oman
Has gained traction in recent times, but it is a very ancient farming technique
Published: July 13, 2020 16:17
https://gulfnews.com/world/gulf/oman/aqua-farming-proving-a-hit-in-oman-1.72567660
Vertical Farming: The Next Frontier in Food Production?
https://www.boldbusiness.com/nutrition/vertical-farming-next-frontier-food-production/
Requirements
1. Detailed guidelines on references and bibliographies are available on the Front Sheet. You are strongly encouraged to familiarise yourself with this prior to completing your assignment. Failure to include proper references will result a deduction of marks.
2. NAMING YOUR FILE: The file you upload on turnitin MUST be labelled as below:
OBL ST0 your ID
PLEASE ENSURE THAT ALL YOUR STUDENT NUMBERS ARE LISTED AT THE TOP OF THE ASSIGNMENT. YOUR WORK WILL NOT BE ASSESSED IF NAMES AND STUDENT NUMBERS OF ALL GROUP MEMBERS ARE NOT INCLUDED ON THE COVER SHEET OF YOUR SUBMISSION.
Student declaration:
We agree and certify that we have researched and prepared the work contained in this assignment.
Signature: __________________________ Date: _______________
END OF ASSIGNMENT
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