business

1. OMAN BUSINESS CONTRACT
Name: Hajer al rubaiai
ID:12565

2. 1
Table of Contents
Introduction:...............................................................................................................................3
Explain Business Contract:........................................................................................................3
a. Parties .................................................................................................................................3
b. Promise to Perform.............................................................................................................3
c. Terms and conditions .........................................................................................................3
d. Competent Parties ..............................................................................................................3
e. Legal Purpose .....................................................................................................................4
Explain Business Torts ..............................................................................................................4
CASE 1 ......................................................................................................................................4
Identifying and Analysing Each Legal Issues to The Relevant Law:........................................4
Conclusion and Advice:.............................................................................................................7
a. Advice to Mr. Badar...........................................................................................................7
b. Advice to Mr. Yosuf...........................................................................................................7
CASE 2: .....................................................................................................................................7
Identifying and Analysing Each Legal Issues to The Relevant Law:........................................7
Advice and Conclusion:...........................................................................................................11
a. Advice to The Ministry of Sports.....................................................................................11
b. Mabela Builders ...............................................................................................................11
c. Seeb Sitting Company......................................................................................................11
d. Mr. Abdullah....................................................................................................................11
Conclusion: ..............................................................................................................................12

3. 2
References:...............................................................................................................................13

4. 3
Introduction:
Explain Business Contract:
A business contract is a legitimate understanding amongst one party and another party, and
might be utilized as a part of circumstances where administrations are rendered for a charge
or particular obligations are required to be performed. To be legitimately substantial, an
agreement must contain a few key components. The key components of a business contract
are:
a. Parties – To establish a business contract, the individual or a group of people who are
associated with the agreement in the contract referred to as a party. These incorporate
individual's name or diverse business elements.
b. Promise to Perform – Each party must promise to maintain its particular legitimate and
significant parts of the agreement. The agreement determines what each gathering will give.
A formal record laying out the offer or offers is lawfully authoritative, and it secures the two
parties with respect to all points of interest composed into the agreement.
c. Terms and conditions – The terms and conditions of a business contract indicate the
rights and commitments of each party (Hesselink, 2015). The nature of the product or
administration going to be rendered as well as be detailed in the business contract. This
incorporates accessibility of administrations or products, particular solicitations, and so forth.
d. Competent Parties – An agreement can be made invalid on the off chance that it is
demonstrated that both of the parties is rationally precarious in nature amid the time when the
agreement is made. An agreement can likewise be made void if any of the people of the
agreement is under the impact of liquor, sedate and so forth.

5. 4
e. Legal Purpose – A business contract must have a legitimate reason keeping in mind the
end goal to view the agreement as substantial. For a composed contract to be legitimately
official, the two parties must sign the contract paper.
The regular motivation behind making a business contract is fundamental for settling asset
cost, to confine the commitments, give a specialist knowledge, and to incorporate and uphold
the non-skilful agreement. At the point when a business goes into an agreement with some
other party or individual it is regularly identified with its long haul development limit,
advancement, and productivity.
Explain Business Torts
Business torts are civil wrongs that are conferred by or against an association. They much of
the time include hurt done to the association's immaterial resources, for example, its business
associations with customers or its protected innovation. Some regular classes of business torts
incorporate misrepresentation, break of fiduciary obligation, and out of line rivalry. In the
view of Levine et al. (2012), organizations that are economically harmed through the
purposeful or careless demonstration of another business or individual may look for financial
harms in civil court, albeit once in a while courts will issue directives requesting the
respondent to stop certain unlawful exercises.
CASE 1
Identifying and Analysing Each Legal Issues to The Relevant Law:
It is discovered in the given case that Mr. Badar who is an expert vocalist makes a
concurrence with Mr. Yosuf who is the director of the musical show house to perform for
three days in Mr. Yosuf's marriage work as the initial tenor. Mr. Badar likewise concurred
that he will go to the practices no less than five days before the initiation of the program. In
this procedure, Mr. Badar suddenly fell sick and was not able go to the practices. He touched

6. 5
base at the occasion two days preceding the festival and was prepared to perform. In any
case, this activity of Mr. Badar made Mr. Yosuf think about that Mr. Badar has made a
rupture of agreement and Mr.Yosuf ended the agreement with him. Presently the inquiry is
going to happen to justify the end of the agreement made by Mr. Yosuf is lawfully right or
not. With a specific end goal to break down the above case and influence suggestions we
need to allude to the laws identified with exchanged harms and punishment provisos which
are applicable in Oman.
The sold harm is alluded to as the harm the measure of which the parties assign amid the
making of the agreement for the suffered party to gather the remuneration identified with the
particular break. The case talked about above is a case of sold harm as Mr. Badar has arrived
late in the festival.
The major legitimate issue identified with this case is the end of the contract and the rupture
of agreement. Considering the locale of the precedent-based law, there is a strict refinement
between the provisions of the exchanged harms condition and punishment proviso. Under the
purview of precedent-based law, the punishment statements wind up void and are
unenforceable (https://omanlawblog.curtis.com, 2018). In spite of the fact that, if guarantees
made to pay a stipulated sum if there should arise an occurrence of break of agreement will
be legitimate in the event that they recognize the evaluated estimation of the genuine harm. In
the expert of the civil court, there is no formal contrast between the exchanged harms
provisos and the punishment statements. In Oman, the country takes after the locale of
numerous other civil court ward. The civil court of Oman is directly not starting any formal
refinement between statements of sold harms and the provisos of punishment. The courts in
Oman make utilization of these two terms reciprocally. Starting at now, the Oman court
rehearses and receives the law that any type of agreement or contract is a law that is
administering all the individual or gatherings identified with the agreement or contract. The

7. 6
Oman court likewise takes after the ward that every one of the terms and conditions of a
specific contract ought to be taken after and must be connected to as said in the agreement or
contract paper. On the off chance that there is any event of the rupture of agreement bringing
about the immediate and predictable misfortune which implies that the misfortune has
occurred as a characteristic aftereffect of non-execution or in execution delay, and the
bothered party cannot satisfy the misfortunes and there no odds of doing execution and that a
causal connection is characterized between the break and misfortune the harmed gathering
will get pay from the other party. On the off chance that the commitment said under the
agreement is identified with money related terms, at that point the pay paid will subject to the
predetermined sum specified.
In the above-talked about case, Mr. Badar has not taken after every one of the standards and
directions of the agreement. As indicated by the agreement, he should have arrived five days
before the beginning of the marriage function to join the practice for the performance. In any
case, he didn't take after that. Rather, he said he was sick and came two days before the
function and was prepared to perform. Presently, he did not educate about his ailment
previously and when he arrived he was good to go to perform. Additionally, he was executed
as the initial tenor in the festival which is a vital position and requires earlier practices so as
to be flawless upon the arrival of performance. Subsequently as per the laws identified with
the sold provisions in Oman, there was a break of contact from the piece of Mr. Badar and
Mr. Yosuf was the oppressed party who has brought about some immediate misfortunes. A
causal connection between the break and the harmed party that is Mr. Yosuk for this
situation. Besides, Mr. Yosuf considering this as the rupture of the agreement ended the
contract which he made with Mr. Badar. The end of the agreement will be substantial and
legitimate just in the event that it was said in the provisos of the agreement that any rupture in
the contract from any side will bring about direct end of the agreement between both the

8. 7
parties. Along these lines, for this situation, it might be lawful for Mr. Yosuf to scratch off
the agreement on the off chance that it said in the statement.
Conclusion and Advice:
a. Advice to Mr. Badar: In this case, not every one of the terms and condition of the
agreement which was made amongst Mr. Badar and Mr. Yosuf was followed by Mr. Badar.
As the law of Oman states that the principles and controls of the agreement or contract made
between the parties must be entirely followed and that any viciousness or carelessness from
any of the party will prompt a rupture of agreement and the harmed party get remuneration
from the charged party. As by coming late to the function, Mr. badar has breached the
agreement with Mr. Yosuf , Mr. Badar needs to pay the compensation to Mr. Yosuf
appropriately what is specified in the statements of the agreement.
b. Advice to Mr. Yosuf: The terms and conditions of the contract as specified should be
followed also by Mr. Yosuf as well. In the event that the agreement is breached from any
party can bring about the end of the agreement then Mr. Yosuf can end the agreement. In any
case, on the off chance that it is not said in the Clauses and some other method of punishment
is specified for exchanged harms bringing about the rupture of agreement then Mr. Yosuf
need to take after that request. On the off chance that he does not take after that then he may
confront lawful issues.
CASE 2:
Identifying and Analysing Each Legal Issues to The Relevant Law:
As per the given case study, it can be identified the Ministry of Oman sports department is
interest to commence a horse racing events in Muscat. In this regards, the scheduled date of
the events has been decided to fix on 10th, 11th, and 12th September 2018. As the horse racing
event is most lucrative to attract the audience, therefor, to manage the crows the Ministry of

9. 8
Sports has decided to reconstruct the seating arrangements and build a new car parking
ground. According to the plan the government department gave a contract to the Mabela
Builders for finish the job within 8th September 2018. In this regards, the Sports Ministry paid
RO 6000,000 to the Mabela Builders at the time of contract and rest amount RO 6000,000 is
paybale after finishing the project. However, in order to reconstruct the seat, the government
department of Sport selected the Seeb Sitting company to change the seats before 8th
September 2018. After evaluating the estimate time and nature of work, the company has
made a deal of RO 3000,000 with the Ministry of Sports.
However, as the case study depicts, the company Seeb Sitting did not perform required and
proper work within the scheduled time. It is clear from the case study that there were many
seats which have not fitted properly and the company claimed the full payment of RO
300,000 from Ministry of Sports. During the time of insoection of the seats, on eof the
auditor named Mr. Abdullah from sports department got severly injured from the newly
constructed seat. While taking to the Royal Hospoital, the doctor said Mr. Abdullah has got
spinal dis-alignment from the accidental case of slipped down from the newly constructed
seat in the race ground. On the other hand, due to heavily rainfall dated on 2nd, 3rd, 4th
September, 2018 in Muscat, the underwork area of car parking was mostly washed away. In
addition, due to the reason of haevy waterlogging the undersonstruction area of car parking
was entirely drwoned. The situation portrays that a complete new start and supplementary
developemnt process are required over there as the construction site is completey destroyed
for this heavy rainfall. When the situation went wrong, Mabela Builders calimed the balance
costing of RO 100,000 from the Ministry of Sports. Adding to this the Mabela Builders
claimed for some extra money also as the labour cost was so higher and the total expenditure
for developing the car parking area in Muscat was RO 800,000. Thus, the managemnt of the
Mabela Builders desired to take the money from the Ministry of Sports.

10. 9
After evaluating the entire scenario, it is clear that the enture case now can be evaluated
under the consideration of Construction contracts law and the laws of Decennial liability for
Contractors and Architects in Oman. The case study clearly describes the strong case of
corpoarte offence both from the Mabela Builders and Seeb Sitting Company to the Oman
Ministry of Sports. It has been viewed that the foremost legal dispute in this chosn context
can be the extra charge demanded by the Mabela Builders and a huge project carelessness
made by the Seeb Sitting Company. In addition, the another legal case which can be inposed
on Seeb Sitting Company is the accidental damage of spinal dis-alignment of Mr. Abdullah,
an inspector from the Ministry of Sports department.
Considering the case of Mabela Builders and as per the norms of Construction contracts law,
in Oman, it is essential to analyse the total cost price and work volume before making a
contract. During the progression of the work if it is found that the costing of raw materials
and the other essential expenditures is incaresing in a substantial way, then the contractor
requires to notofy about this to the main proprietor (https://omanlawblog.curtis.com, 2018). It
has been stated in the law that if the conrtactor did not inform the employer about the
exceeding price of raw materials and essential commodities, then the main employer of the
prject is not liable to py the extar cost after finsihing the project. As per the rules sttaed in
civil code, in the event that the abundance required to be performed in doing the plan is
considerable, the business may pull back from the agreement and suspend the execution. But
it is clearly mentioned that the proprietors must pay the contractor as per the estimation of the
work which has been completed. It is also mentioned in the Construction contracts law, that
if the agreement is made depending on a concurred design in light of a single amount
installment, the contractual worker may not request any expansion over the singular amount
as may emerge out of the execution of such plan (https://omanlawblog.curtis.com, 2018). On
the other hand, if any change of expansion is made to the plan with the assent of the business,

11. 10
the current concurrence with the contractual worker must be seen regarding such
modification. Accordingb to civil court of Oman, if there is an occurrence of the issue in unit
cost, there are two conditions identified with the conceivable increment of the unit value
structure. The conditions say that the expanded cost has to be found during the work
progression and told instantly to the business. The absence of notice on an earlier premise
would be lead towards the immediate adversity for the contractor. Furthermore, O'Reilly
(2014) addressed that as the Oman court has embraced a more extensive approach towards
the significance of the "sanction of propertier", there can not be any increment in the total
expenditure from the contractual worker. An expansion must be made with the propertier’s
concent in the case of second concern which depends on the installment of singular amount
sum from the propertier side.
As per the case study, Mabela Builders has already received a amount of RO 6000,000 from
the Ministry of Sports and it was deal that the rest amount of RO 1000,000 would be paid
after completing the total project. As it was nit in the contract, thus, the comoany can not
make any demand of extra money due to expericing high labour cost during the time of work.
Morover, the natual disaster in Muscat has destroyed the total development structure made by
Mabela Builders. Therefore, considering the entire context, the Ministry of Sports is not
liable to pay any kind of extra money to the contractor company by breaking the contract law.
In the case of Seeb Sitting Company, due to the high negligence in work Mr. Abdullah, the
auditor from Ministry of Sports got injured severely by slipping down from the properly not
fiited seat. The accident was happened from the newly constructed stand during the time of
inspection duty. Therefore, considering the law of Decennial liability for Contractors and
Architects in Oman, Seeb Sitting Company is entirely responsible for this damaged work and
require to provide further warranty to the work. In addition, Seeb Sitting Company is also

12. 11
responsible to offer life insurance coverage to Mr. Abdullah for getting serious injured in
spinal cord.
Advice and Conclusion:
a. Advice to The Ministry of Sports – The Ministry of Sports must pay the balance amount
of RO 1000,000 to the Mabela Builders for the development, however, it has been destroyed
due to the heavy rainfall and flood. Thus, as per the contract the Minnistry of Sports are
accountable to pay the rest amount but not the extra demanded amount claimed by Mabela
Builder due to hike in labour charge. Furthermore, the Minnistry of Sports only release the
payment of Seeb Sitting Company when the company would finish the work by giving at
least next ten years guarntee.
b. Mabela Builders – The Mabela Builder cannot claim any extra amount now as it was not
in the initial contract and the contractor management did not take the consent of chief
employer while proceeding with the high cost labour charge. Therefore, the Mabela Builder
only receive the balance amount of RO 1000,000 as decided in the intual contract.
c. SeebSitting Company – The Seeb Sitting Company has to fix the work issue initially due
to mismanagement and lack of negligence. The company is also abide the rules of Decennial
liability for Contractors and Architects as the seat were not properly fitted and an accident
has happened with Mr. Abdullah. Therefore, before cliaming any payment, this company
needs make a proper seating replacement in the stand and for giving the safety measure it
should provide a 10 years’ work assurance to the Ministry of Sports. Moreover, the Seeb
Sitting Company has to be pay an insurance coverage to Mr. Abdullah as the accident has
happened for the negligence of work.
d. Mr. Abdullah – It is suggested that Mr. Abdullah should claim an immediate treatment
coverage from the Seeb Sitting for the negligence of work which resulting a severe spinal dis-

13. 12
alignment problem to Mr. Abdullah. Moreover, being an auditor of the Ministry of Sports Mr.
Abdullah can also charge for compensation for own department and next 10 years work
safety and assurance.
Conclusion:
After analysing the current study, a strong and concise picture of Oman laws, rules and
regulations have become clear. A flawless understanding has developed in regards to
Construction Contracts in Oman and its effectiveness becomes clear to preserve the social
and commercial value of Oman.

14. 13
References:
Hesselink, M. (2015). Democratic contract law. Oman Review Of Contract Law, 11(2).
http://dx.doi.org/10.1515/ercl-2015-0006
Levine, M., Gloyn, W., & Robinson, R. (2012). Construction insurance. Construction Law
Handbook, 2008(9), 201-226. http://dx.doi.org/10.1680/clh.2008.2008.9.201
Mallet-Prevost, C. (2018). Decennial Liability for Contractors and Architects in Oman.
Omanlawblog.curtis.com. Retrieved 27 April 2018, from
https://omanlawblog.curtis.com/2017/11/decennial-liability-for-contractors-
and.html?m=1
Mallet-Prevost, C. (2018). Liquidated Damages vs Penalty Clauses in Oman.
Omanlawblog.curtis.com. Retrieved 27 April 2018, from
https://omanlawblog.curtis.com/2016/06/liquidated-damages-vs-penalty-
clauses.html?m=1
Mallet-Prevost, C. (2018). Understanding Construction Contracts in Oman: An Employer's
Perspective. Omanlawblog.curtis.com. Retrieved 27 April 2018, from
https://omanlawblog.curtis.com/2017/07/understanding-construction-contracts-
in.html?m=1
O'Reilly, M. (2014). Chapter 1.6: The construction contract. Construction Law Handbook,
2009(1), 177-200. http://dx.doi.org/10.1680/clh.2009.2009.1.177