BUSS 1004 Business Law: Analysis of Contract Law and Governance

This report provides a comprehensive analysis of key aspects of business law in Oman, focusing on contract law, breach of contract, and corporate governance. It begins by discussing the elements of a valid contract, including offer, acceptance, and legal intention, highlighting the importance of clear and unambiguous terms to avoid disputes. The report then examines the types of contract breaches and the remedies available under Oman's commercial law, emphasizing the role of the Oman Civil Code in regulating contractual obligations. Furthermore, it delves into the significance of corporate culture and governance, exploring how companies can maintain ethical behavior, maximize profits, and fulfill their social responsibilities through sustainable development initiatives. The report also touches upon the Tanfeeth initiative and its impact on streamlining business operations in Oman, aiming to enhance productivity and customer service. This document is helpful for students seeking information and examples related to Oman's legal framework for business.

Running head: BUSINESS LAW
Business Law
Name of the Student
Name of the University
Author Note

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Introduction
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.
Answer 1
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

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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).
Answer to Q2
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

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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,

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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.
Answer 3
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

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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.
Answer 4
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

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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.
Answer 5
a. 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.
b. 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

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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.
c. 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.
Conclusion
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.
Interview
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?

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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.

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CHARABI, Y., Abdul-WAHAB, S.A., CHOUDRI, B., Ghazi, A.R., Malik, A.W. and
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Revitt, D.M. and Ellis, J.B., 2016. Urban surface water pollution problems arising from
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