Business Contracts

Business Contracts :
A contract is an agreement established by parties to create an obligation between them to ensure that each party meet their duty towards the agreement. Contracts must be in a legal matter which means can not be used for illegal matters such as drugs , prostitution etc. The process of making a contract starts with the offer and accepting that offer as well as mutual consent. Every contract must have an offer by one party and if the other party decides to join in they agree and it is done with each party joining freely without being forced or blackmailed somehow or another and that is mutual consent. For the contract to be valid there must be a value exchanged in return for a service or a product and it is known as consideration. Both parties must be mentally fit to be involved in a contract otherwise the contract is considered valid. Eventually the consequence of breaking any part of the contract can lead to an unwanted situation with the law. A business contracts involves several elements to be valid the main element is parties the parties in a contract are the subjects that the contract covers and the rights that contracts are made for to ensure their rights are saved. A party in a contract can be an individual or even a major organization. Next thing is consideration ,which sets out the exchanging process and what is to be gained and what is to be given to another party whether it is a service or a product of a legal nature as a contract in drugs or prostitution for example is not valid,or it can simply be a quota of expenses to be given to the purchaser made by the seller. Terms and conditions are the main part of the contract it is the purpose and the reason the contract is made. ‘The terms and conditions are the rules , conditions and terms agreed on by both parties to outline the obligations for each party and it varies for each contract depending on the nature of the business and the wishes of the parties in the contract”(Boundy, C., 2012)
Business Torts :
Illegitimate acts made towards a commercial body such as an organization , entity or even a small business is known as business torts. Most of the time it is made with intentions to harm the other business but it is also possible that it occurs due to recklessness or lack of responsibility. Which affects the business’s financial position somehow or another. They are not looked at as criminal charges but rather a business dispute while other business torts are considered criminal depending on the harm done and the consequence can be restrained from trading. Some businesses affected by another business or individuals acts that have an impact on their financial status can reach out to civil court. In some cases the court decides that the defendant should stop doing a certain illegal acts.’ business torts are complicated misrepresentation of a contract involving numerous parties seeking a better financial positions” ( HYPERLINK ;https://www.google.com.om/search?hl=ar;tbo=p;tbm=bks;q=inauthor:;Robert+W.+Emerson;; Robert W. Emerson, 2009).

remedies followed by the business torts system for settlement usually contain some sort of financial damages for the plaintiff. The defendant must cover the claimant for any losses that his reckless acts had triggered. the issue that is appropriate for all offenses is that damages must be calculable with accessible reality which means that the perpetrator must be able to translate his or her monetary losses into a specific numerical figure. This can be regularly difficult, based on the fact that it is difficult to calculate what is the loss of the company’s image or loss of customers caused by the defendant.

Case 1 :
legal issue with relevant law
In accordance with the commercial law of Oman, Royal Order 55/ninety industrial regulation is congruence . In other phrases, there is a meeting of minds in the form of a proposition this is conventional.
Article 2 of the commercial code establishes that contracts diagnosed by using standard can be affixed settled totally on the conformance of the offer and agreement.

Article 36:
"If the understanding is for a constrained length and the involved-parties hold to put into effect it after the expiration of its time period, it is going to be considered that the settlement has been renewed with the equal terms and situations for an indefinite duration."
Article 267 of the Civil Code (RD 29/2013) simply offers some thing similar. Accessibility of the thing:
If the situation of the duty isn’t an amount of money, the contracting parties can determine the quantity of compensation earlier by providing a similar precondition in the contract or next agreement.

In all cases, the court docket can also, on the request of either party, amend this agreement to make the compensation same to the harm, and some other settlement shall be null and void.

The regulation applicable to the formation of contracts is written within the business law of Oman by way of Royal Decree fifty five/90 regulation and the regulation of Civil Transactions recently followed, Royal Decree 27/2013 Transactions Act. The Code establishes that the agreement may be inferred through the mere conformity of the offer and reputation (Oman 2015)
Royal Decree No. 55/ninety that dictates the industrial regulation and its amendments and the arbitration law in civil and commercial matters
Article 2
In the context of this regulation, commercial arbitrament can be taken into consideration implemented on every occasion ,the dispute is based totally at the criminal relationship springing up from an monetary interest, no matter whether it is a contractual agreement..

Analyzing each legal issues
One is a verbal agreement. The agreement has been violated. The second one is the contract. The contract may be terminated thru mutual discussion among the parties involved. Mr. Yousef cannot cancel the contract alone. Mr. Badr’s approval must approve on his turn on canceling the contract otherwise the canceling is invalid.

The legal philosophy of Oman adopts the position that the contract is the law governing both parties. The terms of the contract ought to be implemented. When a contractual breach ends in an immediate, actual and expected loss, which means that the loss is a natural consequence of a violation or delay in performance, and the affected celebration cannot mitigate the loss and there may be an accidental link between the breach and loss. The injured birthday party may be entitled to repayment.

(Oman 2016)
Conclusion and Advice
The conclusion is that Mr.Bader couldn’t make it due to medical in-capacity and as a singer a minor health can lead to a difficult time performing as expected, which in the case he is not performing as known for that could lead to another problem. Mr.Yusuf being in the field I believe he should have understood Mr.Bader’s perspective for not being able to attend the whole 5 days made for rehearsal which is a verbal agreement and is not written.the phrases of the agreement occurred to change in the first area, due to the fact the shortage of practice of Mr Badar , The Tenor, he might have an uncontrolled urge to not meet the terms of the agreement. Mr Yousuf found out that Mr. Badar’s unfavourable overall performance might affect the performance at the celebration, that he did the breach of a agreement. Consequently the termination of the contract. But this must be finished in a discussion with Mr Badar. Mr Badar and Mr Yousuf can head to the arbitrament center and resolve their disagreement.

Case 2 :
Law of Contract, Royal Decree 55/90 Omani Commercial Law Law and Civil Transactions The law was recently adopted by Royal Decree 27/2013 Transactions Law. According to the Contracts Act,
Article 6 :The court in this law is the commercial dispute settlement body or any other court determined by law later to study commercial matters
Article 9:Building and construction activity
Business commitments:Article 77 As a result of consideration, the business and commercial activities of the buyer’s business will not otherwise result.

Industrial safety:Article (87):
Identify each employer or representative of the worker before they employ risks to health and preventative assures to be taken, and take precautions to protect workers during their work against health hazards and work hazards and machinery and because of this will:
Article 90:The Contracting Party reserves the right to cancel the contract for a specific interest payment and when its obligation is imposed in accordance with that contract
Laws relating to civil work: Government entities use standard model treaty, advisory services contract. NO. 35/2003, Labor Law, Ministry of Manpower
Analyze legal issue with relevant lawIn case number 2 we have two cases both doing business with the Ministry of Sports. One is Seeb Company while the other one is Mabela Builders .The work done by Seeb Company is incomplete and led to severe medical injury to Mr Abdullah who is an auditor for the ministry itself which is even a bigger problem for the ministry and the company as well. The work is done poorly which indicates neglectful behavior shown by the company’s supervisors.the health and safety of any employee (Mr.Abdullah) is a responsibility of the employer which in this case is the ministry of sports therefore,
We have a breach of contract law, labor law as well as a civil labor laws breach.

While the second case that was also poorly managed by Mabela Builders lacked preparations for situation where unexpected scenario like weather changes could occur which is heavy rain over muscat in this case. As the ministry has paid an amount of 100,000 RO to Mabila builders as an advance and no work has been taken as a complete work the ministry have the right to get a the amount paid back thus. Mabela Builders takes all responsibility and shall pay the amount along with any other fees decided by the court if a dispute takes place in the court.

Advices to :
Ministry of Sports
Since Ministry of Sports has paid an amount of 100,000 RO to Mabela Builders and the job has not been done due to the reasons mentioned above the ministry shall seek for the rights and the refund from the court .No job has been delivered which means that the Mabela Builders are obligated to return the value exchanged for the project as the transaction from a commercial law perspective is not valid.The second case involving Seeb Company and the ministry is similar to the Mabela Builders but with a direct act which is neglectful act or tort of negligence as the work has been done poorly and does not meet the requirements nor the minimum standards which resulted in medical injury to an auditor for the ministry and will be hospitalized for three months which is also another liability that the ministry will suffer due to the actions made by The Seeb Company. The seeb company will have in return to pay the amount set by the judge and a possible commercial restraints also to be decided by the court.

Seeb Seating company
Irresponsible act and unprofessional behaviour toward the project is seen by the Seeb Seating Company which overlooked the safety measures that ensures the well being of the public and Mr.Abdullah is the results of the company’s acts.Although a damage to the ministry and an employee is done the company is eligible to earn money for the job that is complete but to keep in mind that the amount will drastically differ than what is set to be as the company is now obligated to pay for Mr.Abdullah’s recovery as well as a compensation for other sort of damage beside the physical harm. As the Omani law enforces these laws to any damaged employee affected in similar cases.

Mabela Builders
The money paid by Mabela Builders to get the job done can be recovered if there is a part of work that has been submitted to the ministry before the rain occurred. Nevertheless, the whole project is sabotaged by the weather conditions which means they have nothing to deliver to the ministry. Seeking insurance to earn insurance money due to natural disasters which in this case is heavy rain although it could have been prevented with the necessary safety measures and paying back the advance amount received by the ministry for the job that has not been done.

Abdullah
As per Omani labour law Abdullah has the right to sue the company and have his rights enforced by the law. The company must cover all expenses related to Abdullah to both Abdullah and the ministry which includes medical expenses and 3 month leave expenses as well as a general compensation for any other damages direct or indirect.

Conclusion
In conclusion having a contract grantees duties are worked on and rights are saved from being reversed or overlooked by any party in a commercial contract and every party gets its rights in full when the terms of the contract are followed precisely. Which includes all sorts and levels of business from the regular day to day business transactions to huge contracts that involves the sell of lands and real estate related business as well as huge construction work with massive risk of harm to any party involved when the breach of contract occurs.

The terms and guides in the contract must be obvious and straightforward to prevent any wrongdoings from being let go or rules being reversed in the favor of one party over the other. Economic torts or what is also known as business torts are torts which aids the contract validation process as it focus on the misunderstandings or misguidance of a contract and to keep things clear for parties in dispute over a contract terms. Organizations and businesses are advised to have a law firm that knows the ins and outs of business laws and contracts in order to prevent being in a situation that might lead to a major harm to a company due to for instance a minor contract misrepresentation.

Case one of Yusuf and Bader is actually consists of two agreements one is verbal in nature and the other one is a contract now Yusuf’s fault is the aligning of two agreements together and let a one agreement’s fate terminate the contract which is not the right thing to do, what must have been done is the meeting of both parties Yusuf and Bader to discuss views on the matter and if no agreement is made, they shall head to arbitration for settlement.

The second case of the Ministry of Sports , Seeb Seating Company and Mabela Builders are both of a similar nature which include torts of negligence by the contractors working for the ministry as a results non of the company’s shall be paid the whole amount and a possible commercial restraints can be enforced by the court of law. In addition the company is responsible for the harm and damage done to Mr.Abdullah of the Ministry and he shall be paid by the seating company as a compensation and coverage for any expenses.

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