GHL4010 Gulf Regional Legal Environment of Business
Gulf College - Faculty Of Business And Management Studies
Case Study: SAUDI ARABIA LAW
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Task to do:
Introduction. Define and explain the meaning of the term "law" in its general application; furthermore, specifically discuss the laws about the formation of a contract.
Answer: INTRODUCTION: The given assignment is about the legal issues which could be raised in the court of law within the law of contract of sultanate of Oman. In the given study there was 17 years old boy who has agreed to purchase a Mac pro laptop at very cheap rates than the current retail market price, and he somehow knows that these are wrong but decided to purchase 10 laptops at that concerned rate. After going through with the given case study, two legal issues could be stated, i.e. firstly a 17 year old boy cannot be legally bound if these extreme cheap rates laptops were stolen and sold by the specific company. There is no point where Ahmed could be sued by the third party.
In the general application, law is the process of subjecting human behavior to the stipulated governance of rules. It is to be believed that rule of general law is mainly concerned with the regulating the use of power at all levels. Under the rule of law of the Sultanate of Oman, every person is bound by the all the rules and regulations which also includes the government.
The Sultanate of Oman is an independent, Islamic, Arab, fully sovereign state with its capital known as Muscat. Arabic is the kind of official language for the laws of the Muscat. The main religion of the State is Islamic and the foundation of the legislation is Islamic Shariah. The state has established a suitable administration system that guarantees justice equality of justice;respect for citizens, tranquility, along with this safeguards the higher interest of the country as well.
The formation of a lawful contract is mainly where the contractual journey of the both opposite parties begins. But if there is no contract begins then no parties are under obligations to pay any kind of damages to anyone. There are mainly four requirements to form a legally binding agreement between the two parties. The foremost offer and acceptance forms an agreement. An offer is a kind of proposal which resulted into the agreement if accepted by the opposite concerned parties. According to the Saudi law (Sighatul-Madhi), the offeror has not right to decline the offer after the acceptance of the offeree.
There is no point at legally binding unless there is an intention to create legal relations and mutual consideration. If there is no offer then, other parts of the contract could not be formed. There must be mutual consideration of the concerned parties to enter in the law. The age of the contractual parties must be 18 years old otherwise they could not enter in the valid contract. The basic foundation of any contract is that it must contain the lawful points to make the agreement enforceable by law. If the person is willing to make an offer which is significant that is also clearly subjective. It is to be believed that the contract of the Saudi Arabia is perceived as the strong bond between the parties and god. Not all kind of contractual agreements are shattered by the Sharia law, unless it is given valid reason that the basis of the contract is invalid.
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Discussion: Analyse the above given case. Extract and/or offer two legal issues which are feasible to be raised in the court of law in consonance with the Laws on Contract. Backed up your analysis with related laws in the Sultanate of Oman.
Answer: DISCUSSION: The first contractual issue:
Ahmed, a 17 years old boy has found an exciting offer for the sale of MacBook Pro laptops at a very low price at OMR 67 each. Although he knew somehow that something has went wrong with prices or the products itself. But he finally decided to purchase the product and sale it on a huge profit and he gives the purchase order of 10 Laptops. His order has been processed and has to be delivering within 10 business days. It is to be believed that Ahmed has used her mother credit card to purchase the laptop after getting her permission which is just a serious matter of concern as he has not yet attained the age to enter into any valid contract. It is to be believed that the cost of MacBook Pro Laptops are highly cheap on the online sale which could be due to two reasons of these laptops were steal by the seller and offer to the public. The second issue could be that if Ahmed knows that something went wrong with the laptop prices he must decline his decision to buy the laptops at incredibly low prices. Business and commerce were highly observed by the Sharia and the commercial jurisdiction rests with the board of sharia trained judges. In Saudi Arabia, contract law is not codified as it is governed by the Sharia (Richardson, 2011).
In Saudi Arabia, there is no effective legal system due to excessive reliance on the traditional religious texts in order to use Sharia law by the Sharia courts. Thus, it is not much contributing to the growth of the commercial law which also makes it difficult for the outsiders to understand the standard of the laws in the Saudi Arabia. The Sharia courts do not have legislative capabilities and has played no role in making the law. The laws and legislations are mainly made by the king and god (Quran) to help the people in their difficulties and mostly focus on The Company could not sue the Ahmed at any cost because he has accepted what is mentioned in the offer. So, it is up to the company to label the exact prices to avoid such difficulties.
According to the sharia law of the Saudi Arabia, all agreements are not contract as only those agreement can lead to lawful contract if the concerned parties are competent to enter into the valid contract. It is to be believed that the Saudi law believes that contract must be performed in the god faith and everything except which is prohibited by Sharia law is legally binding. Ahmed is 17 years old boy which cannot be enter into the legal contract but if he enters into a contract and commit any wrong thing then no party can sue him to pay for the damages. In the Islamic point of view under the Sharia law, an expression of the matching between a positive proposal made by the once party and further accepted by the other party which impacts the subject of the contract (Richardson, 2011). For performing a valid contract in the Sharia Law, certain factors need to be met like offer and acceptance, offer and offeree, consideration, mutual consent, and the subject matter. The parties must have a legal capacity to form a contract. It is to be known that the capability to enter in a contract under the Islamic law could be measured by the two aspects, i.e. puberty and prudence (Lemons, 2018). Islamic Scholar describes the competent capacity of the concerned party as a quality which makes a person qualified to enter in the valid and lawful contract. Islamic law mainly focused deliverability, lawfulness, precise determination, and existence. Lawfulness seeks that the subject must be lawful that is something which must have legal value. Under the Islamic Jurisprudence, A minor is the one who has not reached the age of 18 years old (Lemons, 2018). Minor agreement is a void one and has no value in the eyes of law. It is void and null as it cannot be enforced by the law at any cost. And even at the age of 18 years of old, same contract cannot be ratified against that minor person and he could not be sued for any reasons. So, in the given case study, Ahmed could not be sued if any third party sued him for his/her stolen laptops. The effects of the minor agreement as per the Sharia Law: There could be no liability arising out of any legal boundaries because a minor is perceived as a incapable to give his appropriate consent and the nature of the minor is nullity and cannot be enforceable by the law. For example, if the company ask the Ahmed to return their laptops as they have wrongly written the price or if any third party reached to the Ahmed with the help of scan numbers written on the MacBook laptops, even then he is not liable to pay for damages. The third can sue the seller and ask them to pay for the damages or any kind of punishment to sell the stolen laptops to his customers. If the third party sues the Ahmed to return their laptops in the Islamic court, then even the court will take the favor of the Ahmed only at all. Minor could be beneficiary so he could take his benefit or also can sue the party to give his part of the benefit which is promised by them within the contractual agreement. Saudi Arabia is the Muslim country in which the Islamic laws are strictly enforced. Under the Sharia law, it is to be believed that people must respect the local customs, traditions, religions, and laws all the times along with this must be aware of their actions to ensure they are doing the good thing which is also liked by the god or will fetch the god faith as well at all levels. Saudi Arabia has very strict laws which must be followed by the citizens to be on the right path. For the Minor, the law assumes that the person has not enough capability to presume the implications of the contract so, whatever is drafted in the contract could not affect the minor person at all. The divine contract law presumes the expression of god justice and will along with this Sharia govern the all aspects of life and help in resolving the multiple issues. Therefore, in the following case Ahmed is safe with the all the concerned parties as he has paid the offered amount through his mother credit card and discard any issues against him (Holdaway, 2016).
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The second contractual issue:
The second contractual issue is that the online company can sue the Ahmed that they have wrongly written the price label and ask the Ahmed to pay the suitable amount. According to the law, Ahmed has no liability to pay for the damages as he has accepted the valid offer made by the company even he knows that the given discount was incredibly low but it is his decision to buy the products and pay the stipulated amount tagged in the product price label. The online cannot sue the Ahmed because he is 17 years old, the court will only take his favor at all levels. It is to be believed that when a person makes an offer to the other person to sell a product at these prices and if the other party accepts the offer, then he cannot discard the offer at any cost or even cannot sue the party because they have taken the offer with the appropriate intentions. As Ahmed has purchased the laptop from online bidding so online seller cannot sue him with this unsound mind at that time because the labeling of the prices is all online and he could not be sued. If this contract has made upon the words of mouth then, it could be sued as in the Sharia law, there is no point of legally binding the parties and could make the needful changes anytime. Even if there is mutual consideration, the concerned party cannot ask the offeror to make the same promise but he/ she can deny to accept the offer if the one party makes the many changes for his personal benefit. A partiesought to be exempted from his commitments in entire or to a limited extent on the off chance that he neglects to play out all or part of his commitments because of a power majeure occasion. In the event that a gathering can't play out his commitments inside as far as possible set in the agreement because of a power majeure occasion, he ought to be mitigated from the obligation for deferred execution amid the time of proceeded with impact of the impacts of the occasion. An occasion of power majeure implies the occasion that the gatherings couldn't anticipate at the season of finish of the agreement and its event and results can't be maintained a strategic distance from and can't be overcome.
It is to be believed that if the contract in which the Ahmed entered has been oral then because it is not binding as per the Saudi law which is motivated by the Sharia, old traditional law. If since, they have made any agreement, Saudi's are likely to change the main clauses of the agreement for their personal benefit or even reject the whole deal in one go. In Saudi Arabia, the general jurisdiction is highly conducted under the Sharia Islamic law which is based on the expressions of god's faith and belief. Hearing has been taken place in a serial manner. Time of the decisions could be week to months which mainly depends on the availability of the judge. There is less involvement of the legal courts in the business environment and both the parties have enough freedom to choose their concerned in their way and design them in a customized way. In Saudi Arabia, there is no viable lawful framework because of over the top dependence on the customary religious messages so as to utilize Sharia law by the Sharia courts. In this manner, it isn't much adding to the development of the business law which additionally makes it troublesome for the outcasts to comprehend the standard of the laws in the Saudi Arabia. The Sharia courts don't have authoritative capacities and has assumed no job in making the law. The laws and enactments are predominantly made by the ruler and god (Quran) to help the general population in their troubles and for the most part center around (Richardson, 2011).
In the event that many parties can't play out his commitments inside as far as possible set in the agreement because of a power majeure occasion, he ought to be eased from the obligation for postponed execution amid the time of proceeded with impact of the impacts of the occasion. An occasion of power majeure implies the occasion that the gatherings couldn't anticipate at the season of finish of the agreement and its event and results can't be evaded and can't be survived.
There are distinctive ways compel major provisions are managed far and wide, Right off the bat, it is imperative to comprehend the American perspective of power majeure, considering they are the biggest economy on the planet, and therefore it is sensible to expect that United States companies would need to put resources into Saudi Arabia. Along these lines, it is critical to consider their meaning of power majeure related to the universal suppositions. It is additionally, obviously, critical to get a thought of the topic that this brief means to manage. All things considered, one can't properly investigate a subject in the event that they don't initially comprehend and welcome it. It is additionally essential to consider the global arrangements if a commercial contract with a Saudi gathering contains a decision of law arrangement that determines rules like CISG or FECL (Reiner, 2015).
According to the given case study, Ahmed could not be sued by any other party due to his incompetent age to enter in the legal domain. Legally if the valid offer given by the offer and it is accepted by the other party cannot be discarded at any point. Ahmed has no liability to pay for the damages as he has entered himself in the beneficiary contract and the minor could successfully enter in the beneficiary contract. Saudi Arabia has very strict rules and regulation but they are less effective in the commercial laws.
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Conclusion: Sort out the key issues and offer your valuable insights without repetition of the words used in the text of your introduction and discussion section.
Answer: CONCLUSION: The given assignment discussed about the legal issues which could be raised in the court of law within the law of contract of sultanate of Oman.According to the sharia law of the Saudi Arabia, all agreements are not contract as only those agreement can lead to lawful contract if the concerned parties are competent to enter into the valid contract. The company could not sue the Ahmed at any cost because he has accepted what is mentioned in the offer. so, it is up to the company to label the exact prices to avoid such difficulties. It is to be believed that the Saudi law believes that contract must be performed in the god faith and everything except which is prohibited by Sharia law is legally binding. After going through with the given case study, two legal issues could be stated, i.e. firstly a 17 year old boy cannot be legally bound if these extreme cheap rates laptops were stolen and sold by the specific company. There is no point where Ahmed could be sued by the third party. Therefore, in the following case Ahmed is safe with the all the concerned parties as he has paid the offered amount through his mother credit card and discard any issues against him. It is to be believed that if the contract in which the Ahmed entered has been oral then because it is not binding as per the Saudi law which is motivated by the Sharia, old traditional law. If since, they have made any agreement, Saudi's are likely to change the main clauses of the agreement for their personal benefit or even reject the whole deal in one go.Under the rule of law of the Sultanate of Oman, every person is bound by the all the rules and regulations which also includes the government.Arabic is the kind of official language for the laws of the Muscat. The main religion of the State is Islamic and the foundation of the legislation is Islamic Sharia. The state has established a suitable administration system that guarantees justice equality of justice; respect for citizens, tranquility, along with this safeguards the higher interest of the country as well. Business and commerce were highly observed by the Sharia and the commercial jurisdiction rests with the board of sharia trained judges. In Saudi Arabia, contract law is not codified as it is governed by the Sharia. In the Islamic point of view under the Sharia law, an expression of the matching between a positive proposal made by the once party and further accepted by the other party which impacts the subject of the contract.
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