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BUSS1004 Business Law

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BUSS1004 Business Law

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Course Code: BUSS 1004
University: Middle East College

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Country: Oman


Write a comprehensive report on the following questions:
Q1. Critically discuss all the types of breach of contract that may happen and the remedies for breach of contract under Oman Commercial law. Relevant statutes should be quoted to support answers. Use an applied relevant Oman example to demonstrate your answer.
Q2. The law of contract outlines duties and obligations of the parties to a contract and eliminates ambiguity. Critically analyse this statement vis-à-vis the law of contract provisions quoting relevant Royal Decree. Use an applied Omani example to demonstrate the application of the law of contract in Oman.
Q3. Oman is now diversifying its economy to prepare for life after oil under Tanfeeth Diversification Plan 2040. Critically analyse legal and Easy of Doing Business issues that need to be addressed by Oman so that Tanfeeth Diversification Plan can achieve its objectives and succeed in its diversification thrust, as Oman competes with other GCC countries for global investments funds, (Hint: please address Customs clearance turnaround issues, new business information turnaround issues, cost of new business formation processing fees, bureaucratic issues, red-tape, the One Stop Shop Concept of Investment Processing and tax holidays or tax exemptions and the status of port handling capacity and clearance issues at Sohar Port after shipping was moved from Muscat to Sohar). You are required to interview Ithraa staff (or Oman Chamber of Commerce and Industry, or Ministry of Industry and Commerce or Tanfeeth or ASYAD), to explain the status of these issues in Oman and what is the way forward for excellence in Oman? An interview script must be attached at the end of the assignment with questions and answers. You should state who was interviewed and in what organization, and his/her designation or position.
Q4. Business ethics, corporate social responsibility and corporate governance create the human face of organisations. Critically explain these concepts and use an applied Oman company example to demonstrate good corporate governance.
Q5. Pollution has made life dangerous, risky and a threat to the human race, hence tough government regulations and penalties for pollution. If unregulated society is unethical. Critically explain how and why the Oman Government is regulating:-

Marine pollution quoting relevant Royal Decree;

Air pollution quoting relevant Royal Decree; and finally

Noise pollution quoting relevant Royal Decree.


The statue in Oman is directed at regulating trade and commerce and making sure that there is prosperity as well as the rights of the people are secured. It is the duty of the state to make sure that the rights of the people are protected and also in cases of breach, the state will sure that the aggrieved party gets redress. The Oman Civil Code gives the right to people in Oman to enter into a contract and their contractual obligations are regulated by the Oman Civil Code. The rights and duties that the contract law mandates are regulated in Oman by the civil code. The environmental laws in Oman have become very strict to make sure that there are no violations and people actively work towards ensuring  safe living environment and any one violating the environmental protection laws shall be severely punished.  Through this assignment, the laws of Oman shall be studied and also the laws shall be understood to check how the laws have evolved and how far the government functions to ensure that the legislation works in the interest of the people.
Contract is a legally enforceable agreement which Lays down the rights and duties of the parties who are bound by that agreement. For contract to be valid there needs to be an offer by one party and subsequent acceptance of the same by another party (Barnett and Oman 2016). The offer and acceptance together form the agreement and to enter into a contract it is important that the parties have the legal intention be bound by the contractual relation. Once the parties have entered into the contract they are bound by the contract and therefore they need to act in accordance to the obligations as set out by the contract (Baatwah, Salleh and Ahmad 2015). When party went into the contract we need to be aware of all the risks that might arise out of the contract and it also helps in eliminating the chances of litigation because party is already know the risks that pertain to the contract. Once a party does not want to be bound by the contract and realise is the risks that are attached to the contract he goes for repudiation. In Oman the contract law arose as a result of the woman Civil Code 2013. The purpose of contract law is to lay down proper code of conduct for the parties and what they need to do under the obligations of contract law. The process of remedy available under contract law is to ensure that whenever the parties do not act in accordance to the terms of the contract, the statute will mandate that the aggrieved party gets relief. Therefore, whenever a party wants to gets remedies under contract law, he has to specify the precondition of Izar. The causal link between the non performance and the damage has to be established by the parties to the contract and there needs to be a proper proof of the damage that the parties have suffered as the result of the non-performance. Oman follows the laws which are similar to the UAE and it is directed to ensure that there is proper remedy and the parties’ rights are restored as if there has been no harm on the parties. All the laws are directed towards measuring the harm the parties have incurred due to the breach of the contract and proposing remedies. An example of a contractual breach is when a party promises to pay money for the performance of a particular act and the party does not pay the amount as a result of which the other party suffers loss (Alwahaibi and Zeka 2016).
Contract entered between the parties need to be clear from any doubts and there shall be no ambiguity in the terms of the contract. The parties have to be aware of the rights and duties that accrue from the contract and also be aware of the performance that needs to be part of the contract. For a contract to be enforceable against the parties, it is mandatory that the contract in clear terms explains what the rights of the parties are and what needs to be done by them to ensure that there is no breach of contractual terms (Elghuweel et al 2017). The way the terms of the contract are constructed is important is understanding the rights and duties of the parties. For a contract to be final and binding there needs to be a dew elements of the contract that need to be fully present in the contract to be considered it binding on the parties. For the courts to determine the liabilities that need to be imposed in cases there is a breach depends on the terms of the contract and the way the contract has been constructed. The Omani Law states that there shall be no ambiguities in the terms of the contract and that the parties need to be very clear in the terms of the contract when they are entering into it. The words of the contract need to be clear, concise and it should state the terms of the contract clearly. The activities of the party clearly indicate the intention of the parties and their mutual relations and rights can be understood from the way the contract has been created. Pacta Sunt Servanda is the legal principles that govern how contracts are formed and what are the contractual obligations of the parties. The Omani Supreme Court has held in their rulings that there needs to be a good faith obligation that the parties to a contract need to fulfil and the intention of the contract needs to be bona fide and for the better interest of the parties to the contract. The Court has the right to alter the terms of the contract only in cases where there is an ambiguity which is very clear top the eyes and is very blatant. Only when the court is convinced that the terms are very ambiguous and they do not confer the same rights and duties that are intended by the contract, the court shall give a power to the parties to amend the contract. Therefore, to ensure that the terms of the contract is very clear the literal meaning of the contract needs to be taken into consideration. Under 156 of the Oman Civil Code, which regulates contracts, it is very important that the contents have to be clear about the contract and the parties have to take into consideration custom, justice and principles of contract law. In doing so, the uncertain terms of the contract can be done away with and also in such uncertain terms, there are higher risks of misrepresentation of facts. Therefore, to make sure that there is no misrepresentation of facts or parties are giving misleading statements, the terms need be very clear and concise. An example of an ambiguous term in a contract is when the delivery date of a particular item is not mentioned in the contract or there are hidden facts about the quality of the product that misleads the other person into believing in the intended quality of the product.
Tanfeeth is a big undertaking which has been undertaken by the Business Partner which helps the big corporate to give them productivity, customer service, complete value for their money and also quality of work. The goal of this undertaking is to make sure that there is enough productivity, there is customer care and value for service is provided to customers for the money they pay. To make sure this goal is enacted and to make it turn into a reality, it is imperative to become a one place for the solution of every problem related to investment. The product entering the market through the ports face severe problems and therefore, it is important that there is scope for port clearance of the products to enter smoothly into the territory. The companies need to function independently without any hindrance from the bureaucrats and they shall not in  way stop the smooth functioning of the company. The goods that are being transferred has to be done so without any impediments and proper transparency has to be maintained. The transactions that the company undertakes shall be a part of the trading and it has to be properly executed. Red tapes are the strict and stringent rules that are applied on companies and that puts a stop on the company’s freedom. The red tape stops the company from taking independent decisions and that is not considered good for the trade. To claim the position of a big company in the international market, it is important for Oman to resolve a few conflicts. There are many other GCC countries in the international market and to put up a strong competition, the Tanfeeth has to start the Diversification Plan and also be at par with the other countries of the world. The port through which the goods will enter also need to be properly regulated and all other matters of conflict need to be dealt with, with proper responsibility. The goods entering the country need  to be properly managed and there shall be also provision for faster customer clearance. That will help in the effective trading. The importers need not have to pay any extra amount of money at the port to get through the custom and the invoice of the products also needs to be dispatched at an earlier time.
Under the realm of corporate culture, it is important for the companies to make sure that there is a proper code of conduct and that the employees as well the companies maintain that corporate culture, the way the company works keeping in mind the best interests of the employees and adhering to the laid down principles is called corporate governance. The aim of corporate governance is to make sure that the established code of ethics and corporate behavior are aimed at maximizing profit and also ensuring that the company keeps in mind the rights of the people working under them. The employees and the stakeholders are governed by corporate governance and in the scheme of corporate governance, it is important that the company gives proper opportunity to all the employees. The corporate behavior is seen as the way the company behaves with the other employees and the codes that it lays down for uplifting the best interests of the employees. The company has responsibilities towards the employees as well as it has responsibilities towards the society at large. The societal responsibilities of the company are called the corporate social responsibility. This includes devising plans for the company in a way that the interests of the society are also maintained by the company (Tricker 2015). The whole concept of corporate social responsibility is to devise plans keeping in mind the responsibilities that the company has towards the society and how the company goes about performing those responsibilities (French and Scott 2018). The intention is to keep in mind ways that the company can help and contribute to the growth of society. Sustainable development is a part of corporate social responsibility and it is done by making sure that a humanistic approach is given to the corporate ethics and the health, safety of people are protected. The concept is to preserve the environment and uphold the principles of sustainability. The humanistic approach undertaken by companies is for the purpose of creating a humanitarian working environment, making flexible timings, giving leaves to employees when they need it. Even though there is severe crisis, the principles of the company shall remain unflinching. In Oman there are many examples of companies that had to undergo crisis and then they bounced back with proper planning and strategy, an example of such a company is National Rice Mills SAOG.

Marine Pollution: The Royal Decree 34/74 talks about raising concerns over the depleting marine environment and recommends ways to improve the condition. The Government has undertaken ways to stop the marine world from getting polluted and also has tried to save the lives of marine world from depleting (Revitt and Ellis 2016). The violators of marine pollution have to pay an amount of OMR 4 million.
Air Pollution:The Ministerial Declaration states that there needs to be proper compliance with the laws that state that there shall be no pollutants discharge into the environment by the factories.  The Declaration 118/04 and the directives of the Sultanate of Oman mandate that there shall be no emission of wastes and pollutants into the environment. The statute also prescribes stringent punishments in cases where there is violation of the laid down statutes (Charabi et al 2018). The air people breathe should be free from harmful chemicals and pollutants and it is the responsibility of the state to enact laws and regulations that stop the emission of harmful waste. The factories which produce the harmful pollutants should be penalized and only then can the pollution be brought under control.  
Noise Pollution: the Ministerial Declaration of 79/94 lays statutory warning on pollutants of noise so make sure that there is no harm inflicted on the people. Noise has a very bad impact on the health and the heart conditions of elderly men. Noise causes level of stress and anxiety to grow among the ailing and the elderly. The cars create a lot of noise on the road by their horns, the factories emit sound which are not pleasing to the ears and therefore it is important that there is strict punishment for people who indulge in noise pollution.

The Oman laws have become very well adept with the changing scenario and have also enacted laws that are aimed at providing strong guidelines to ensure that the rights of the people in Oman are preserved. The laws are in sync with the already established laws of UAE. The aim of the laws is to promote harmony and also to ensure that people entering into contracts are guided by the statute and they get proper remedy in cases their rights are violated.
The interview of Tanfeeth was conducted where the following conversation took place.
Interviewer: what steps are being taken by you to place yourself in the world arena and to cope up with the competing challenges?
Interviewee: to put up a fair competition, it is important that there is strict adherence to corporate regulations, tax benefits given and also there shall be custom clearance to ensure that there is swift trade and commerce.
Interview: What are the steps taken to ensure that red tape does not impede trade?
The idea of red tape is to keep strict compliance in place so that there are o divergences. The  red tape shall not interfere with trade and shall give freedom to the corporate to come up with their own ideas and conduct business the way they want.
Alwahaibi, A. and Zeka, A., 2016. Respiratory and allergic health effects in a young population in proximity of a major industrial park in Oman. J Epidemiol Community Health, 70(2), pp.174-180.
Baatwah, S.R., Salleh, Z. and Ahmad, N., 2015. Corporate governance mechanisms and audit report timeliness: Empirical evidence from Oman. International Journal of Accounting, Auditing and Performance Evaluation, 11(3-4), pp.312-337.
Barnett, R.E. and Oman, N.B., 2016. Contracts: Cases and Doctrine. Wolters Kluwer Law & Business.
CHARABI, Y., Abdul-WAHAB, S.A., CHOUDRI, B., Ghazi, A.R., Malik, A.W. and FADLALLAH, S., 2018. Impact of Summer Monsoon on Urban Traffic Air Pollution Dispersion in Growing Tourism Destination: Case of Salalah, Oman. Journal of Environmental Management and Tourism, 8(5), pp.1041-1060.
Elghuweel, M.I., Ntim, C.G., Opong, K.K. and Avison, L., 2017. Corporate governance, Islamic governance and earnings management in Oman: A new empirical insights from a behavioural theoretical framework. Journal of Accounting in Emerging Economies, 7(2), pp.190-224.
French, D. and Scott, K., 2018. International environmental law. Tricker, R.B. and Tricker, R.I., 2015. Corporate governance: Principles, policies, and practices. Oxford University Press, USA.
Krawiec, K. and Liu, W., 2017. Does Contract Law Need Morality?.
Oman, N.B., 2017. The Dignity of Commerce: Markets and the Moral Foundations of Contract Law. University of Chicago Press.
Revitt, D.M. and Ellis, J.B., 2016. Urban surface water pollution problems arising from misconnections. Science of the Total Environment, 551, pp.163-174.

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