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Assignment is about business contracts, obligations & torts analyzing the legal issues in relation to business laws.

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Introduction

Discuss business contracts

Business contracts are very necessary in Oman, specifically to those companies dealing with the government. The government of Oman offers a lot of business opportunities for the private sector companies, but dealing with it could be daunting, difficult and time consuming. Accruing to the 1996 Basic Statute of the State, which is also named as the Basic Law sets out a legal structure of Oman as well as the respective operations of the judiciary an executive and various public obligations (oxfordbusinessgroup.com, 2018). This offers that Oman’s fundamental principles involve a free market economy, corporation among the private and public sectors, the safeguarding the private property and taxation according to the law that shall not have a retrospective influence. On the other hand, the “Commercial Code of Oman” offers that foreign nationals might not engage in commerce in the “Sultanate of Oman” except after achieving “permission to do so in accordance with the applicable Laws” (mideastlaw.com, 2018).  As per the Article 25 of the Code offers that overseas organizations might not establish a branch in the country or involve in Commerce except with the help of Omani local agent who is a merchant as well as according to the rules set forth by the regulations. There are also several general provisions, laws for the commercial activities for the merchant prevalent in the sultanate of Oman that are important for doing businesses.

Discuss business torts

Business tort  is a conduct, which harms other individuals or their property. This is a private wrong against an individual for that the injured person might recover any type of damages that is monetary compensation. The injured person or party within a business deal have the fright to sue the wrongdoer or can be named as the tortfeasor in order to recover damages to recompense for the loss and harm occurred. The conduct, which is a tort might also be a crime.  There are three major types of business torts exist in Oman, which are torts on the basis of negligence, intentional torts and strict liability torts (Is.muni.cz, 2018). Negligence is a kind of failure to follow the level of care that will be followed by the logically prudent individual to avoid predictable harm. On the other hand, intentional business tort is considered as a civil harm, which occur at the time of the wrongdoer involves in intentional conduct, which results in damage to other. The strict liability torts is a legal duty for damage or grievance, even if the individual found strictly liable was not at responsibility.

Identify and analyse each legal issues in relation to the relevant laws on business contract with  regards to Sale of Porsche sport car

The sale of Porsche sport car has three different angels. First the advertisement of the car attracted one customer named Sulaiman, who called Abid and said that he will be calling afterwards if he still finds it an interesting deal. But he never contracted Abid within the time period before the car was sold. In this regard, it could be said that there is no legal changes valid in case of the customer as he never called the person advertised for the car and Abid is free from any legal obligations to sell the car to other persons. On the other hand, Abid has appointed a third party to sell the car after that. On the other hand, Khalid has initially agreed to purchase the car at RO 5,750, but he out of seer negligence called Abid many times later the stipulated time for calling as decided between them. due to this fact the dealing of sport car was cancelled. Later, the third party, named Aaron has arranged a meeting between Abid and Bashar who has been interested to buy the car at RO 6000. As decided, the car  was sold at the last negotiated and decided price to Bashar.

After this type of incident an accident has occurred due to the defecated steering wheel in the car and Bashar needs to undergo a serious spine surgery and five months of rest due to the accident. This care could be discussed based on the commercial laws and other business contracts available in Omar. As stated above, the other two cases has no reasons to associate them with the legal concerns. They  are simple case of negligence business tort. No respective person have the right in the previous two cases of car dealing to legally launch against the owner who have made an advertisement regarding the sports car. On the other hand, it could be said that there is no particular law available in Oman regarding the sale of one particular product such as a car as given in the case study. According to the commercial activities and Sharia law that is a great part of the legal structure of Oman, it could bed said that as per the Article 9, in the commercial dealing contract, the purchase of any type of product be it single or in a bulk and other materials along with the non-material properties with intent to sell the same at a profitable range whether sold in their intact condition or after manufacture, the manufacturer should be concern about the exact condition of the good or property (oman.om, 2018).

Here Bashar could launch a case against Aaron as he purchased the car through him and Abid will not be charged by any legal issues as he get the contract through Aaron. The customer could launched a case by stating a harm on the private property as he will not get any insurance services for the car as well as for causing physical damage. In this regard it could be said that after prosecution two results could be achieved here. One is the compensation for the private harm as well as physical harm to Bashar and other could be jail for five to seven months with the compensation for the property losses (oman.om, 2018).

Sale of Gucci shoes

The case of selling of Gucci shoes is very clear here. Abid, the  customer here denning to give the price that the shop keeper or owner is demanding from him. This is due to the fact that the shop keeper demanding more money from the consumer though the tag of a pair of Gucci shows is telling another story. The original price of the shoe is RO 50 and after seeing the price, Abid, the consumer finally decided to purchase the product but after scanning the product, shop is demanding another extra RO 30 for the same product though the international price is not the same. This is a serious case of harassing the customers and misleading him for achieving for profit for the business. This is also a case of doing business in an unethical way. As per the Oman regulations and according to the provisions of Article 2, it could be said that any case of deceiving or attempting to deceive the customer as to the nature, source, reality, composition or application of any product or service should be strictly illegal in Oman and consequences could be dangerous for the business as well as the person directly involved in it (pacp.gov.om, 2018). On the other hand, According to Article 3, selling prices of products should be indicated legally on the products themselves, their packages or containers. Here the selling price of the pair of Gucci shoes are different from the demanded price of the same product. Application of illogical or fraudulent balances, measurements of products, stamps are unlawful in Oman and against the interest of consumer safety policies. From these stand points, Abid could easily launch a case against the shop owner and the case results will be in favour of the consumer (pacp.gov.om, 2018).

Identify and analyse each legal issues in relation to the relevant tort  laws

According to the case study, Abid after  being satisfied with the sale of Porsche car in the shop, decide to purchase a pair of Gucci shoe from the Abdullah shop, near where they finished the dead of shop. As documented, the pair of Gucci shoe has a price tag of rupees RO 50 but after the purchase dealing and scanning of the tag, the cashier states that the price of the shoes are RO 80, which the customer refuse to give. In this regard, it could be said that the intentional business tort can be applied here. According to the intentional business tort, the shopkeeper has intentionally increased the price of the pair of shoes (Barnett & Oman, 2016). The actual price of the shoes is RO 50, whereas the cashier is demanding more 30 RO. In this case according to the rules and common laws, the customer could launch a case against the shop of breaching the contract and  misguiding the consumer. According to the intentional business tort rules, is an individual commits an intentional tort, it suggests that that person with Knowing everything has violated all the legal responsibilities he owned to the victim. This business tort is different from a negligent tort, where the tortfeasor violated the responsibilities that each member of society has to perform logical care in their actions with others (Barnett & Oman, 2016). From the above analysis of the given case study , it could be said that the shopkeeper of Abdullah shop has been intentionally developing the price of the shoes for increasing their sales profits, and in order hand, harming the customer by making him pay more price for the shoe instead of the actual  price. This incident is costing the customer more and affecting his private property.

On the flip side, it could be said that there are three different cases related to the sale of Porsche sport car. At the initial stage due to defect in the mechanism in the car, Bashar face a dreadful incident that costs him and harm him. This incident could be fall under the negligence business tort. The actual shopkeeper should inspect the car before handling it to the customer. If the business owner of Porsche sport car inspected  the car and its steering wheels, then this type of accident would not happen. But on the perspective of Bashar, a car dealer, after purchasing the car through the third party, Aaron, there will be no insurance issued for the damaged car. On the other hand, due to the negligence issue, Bashar still has the permission of accusing Aaron. The case of Khalid, there is a clear case of negligence business tort as he needs to call before 7.30, but Abid received a call on this mobile phone around 7.30, therefore, there is no chance for Khalid to demand the car from Abid. These are the cases, where the business torts and thus related legal issues in Oman could be applied. All these legal issues are important to clarify the business contract and trot laws related to purchasing products and car dealing (Trakman, 2016).

Provide advice to bid with regards to Bashar

Abid is definitely in a lot of trouble when it comes to the dealing with Bashar. Bashar has all the rights to sue Abid on the basis of false advertisement and may demand compensations. However, as par the law suggest the compensation amount cannot go beyond the advertised price. The accident of Bashar suggest that the car was not at all in a good condition and if Bashar wants to sue Abid in court for his accident and demand for an extra amount for his injury, medical bill, he has all the right to do so. There is a loophole for Abid to escape from baring all the expenses of the case. The involvement of Aaron suggest that involvement of 3rd party. Aaron is the one responsible for sell of the car even though Abid was the owner. Aaron can be considered as one of the sells agent and it is the responsibility of the sells agent to know the product before putting a price tag on it and offer to sell (Spoliansky, 1979). Abid cannot be held fully responsible for the circumstances, which took place with Bashar. Since the insurance of the car was expired before the sale of car the insurance company cannot be held as responsible for the circumstances. It is deal between payee and payer with the involvement of a sales person.

Abid with regards to sports car

The sports car was the property of Abid before the deal was conducted. However, since the deal was conducted based on the false advertisement Abid can be held responsible for any unfortunate. However, if the deal was made with khalid or Sulaiman, Abid could be held as responsible. Since the deal of sports car was made through a 3rd party it is highly unlikely Abid will be held as responsible for the circumstances. For example, a Porshe car is being sold to a party with a dealer stating fastest production car available. Than if the party finds out the availability of another faster car, then the dealer will be held as responsible not the Porshe car company. This case on the matter of Abid regards to sports car is no different and should be treated accordingly in the eyes of law.

Abid with regards to Gucci shoes

Abid has all the rights to sue the store for providing misleading information. As the case suggest Abid picked up the shoe after seeing a ro 50 on the price tag and after the bar code scanner the price went up to 80, a ro 30 hike cannot be acceptable. Abdullah’s shop should be held as responsible as it is not a Gucci shop Gucci cannot be held as responsible. Gucci sells its product through a third party so the third party should be held responsible under these circumstances. Having an extra barcode over the box also suggest that there is a price put on above the marked price the product. Therefore, Abid should be able to sue the shopkeeper and has all the right to demand for the right price if he seeks so.

Bashar about his accident and the Porsche sports car

Bashar’s accident took place due to his negligence. As the case states, he is a car dealer and it should be his duty to check the product before purchasing. He has all the right to sue Aaron for selling the product before reviling the flaws and quarks of the car. Aaron is liable to be penalized in the court if in case compensation is not being provided. It is the responsibility of the agent to inspect the car before placing the product for sale. Since the car’s insurance was expired, there is no way the car can be fixed with any insured money. The entire amount have to be bared by Bashar. As Bashar is a car dealer his purpose of purchasing the car is to resale it and it can never be sold having an old insurance under its name. In order to sell the car Bashar has to provide its own insurance as per the law so Bashar has no right to sue Aaron on the basis of expire of insurance(Agarwal, R. 2017). Bashar should sue Aaron for selling a faulty product and look for a way to fix the car without the insurance.

Abdullah shop about the demand of Abid regarding the Gucci shoes.

Abdullah is liable to sell his product based on the advertised price that has been put on the product. However, he has been failed to do so and trying to sell the product based on the bar code in other words he tried to sell the product based on his price rather than the price which was set out by the company. Every company set out a maximum price for a product beyond which a seller cannot go and sell his product. In the above case, this shopkeeper has failed to do so. Abid has all the right to sue Abdullah in the court and get the product with the right price. Abdullah should lower the price and sell the product on the listed price.

Sulaiman and Khalid about the Porsche sport car.

Since Sulaiman did not contacted Abid before Abid making a deal, Sulaiman do not have any right for clam to buy the product. Moreover, no such specific time period has been mentioned by both the parties in order to complete the transfer of product or deal. Abid is not at all responsible to someone’s mindset on May or may not buy the product. He has all the right to sell the product as per his liking as because he is the owner of the product. Sulaiman’s contact with Aaron do not have any consequences as because he is a third party to the deal.

As khalid did not kept his side of the deal of contacting Abid before 6 pm on 4th march, Abid has no liability to sell the product to Khalid. Khalid should have made the contact within the given time and fail to meet the deadline has no jurisdictions over Abid.

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