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BUSS1004 Business Law, Middle East College, Oman


Learning Outcomes of the Module: 1. Critically analyse the implications of national and international legal environments of businesses in the Sultanate of Oman.

2. Analyse the key features of the judicial system of Oman.

3. Use appropriate sources for general legal analysis by identifying information, legal issues and reaching conclusions based on analysis.

Question 1: (a) Critically explain the objectives and importance of agency law and why it is important for the Oman economy, quoting relevant Oman Royal Decree.

Answer: Objectives of agency law: The main objective of the agency of law of Oman is to make a principal contract between the principal and the third party on behalf of the principle. In addition to this, it also has a definite objective of a definite contractual relationship between the distributor and the principle. The Oman Agencies law was performed and principally set out in the basic Royal decree of 26/77.

The agency of law is also a part of the commercial law, which deals with the business relationships between various parties. Although it was ideally setup previously but over the years, the OCAL underwent several changes. Further, in 2014 the OCAL also went several changes, which resulted in the loss of the agents in accordance to the statutory protection previously granted to them (De, 2015).

Importance of Agency Law: The agency of law is of vital importance in the Oman Economy as a definite balance is created between the agent and the principal. Based on 26/77 OCAL royal decree this agency law is formed and analyzed in the business market of the sultanate of Oman.

Importance in Oman economy: The legal landscape of the commercial law has considerably changed over the years as its importance in Oman has increased over the years in respect to the business economy. The scope of the amendment of the law is to effectively affect and strategize the relationship of the contract between the principal and the agent.

(b) Analyse the structure and contribution of the Oman Court and Legal System, quoting relevant Royal Decree.

Answer: Structure of the Oman Court: The sultanate of Oman is the basic central monarchy in the gulf of Arabic. Previously before 1971 the definite Sharia courts of Oman implemented and decided on the definite criminal matters in respect to the personal status. The Royal Decree of 101/96 issued this structure of the Oman court and legal system in 1996. The legislation and the structure are based on two basic legislation. In addition to this, the structure of the court of Oman has changed in accordance to the Royal Decree of 13/97. On the basis of this royal decree the definite changes occurred in the title, power and structure of the law (Zahra, 2015).

Contribution of the Oman Court and Legal System: The structure of Oman court and legislation has helped and benefitted in the contribution of the sultanate to a certain degree. The basic judicial organization was first affected in 1920 in respect to the commercial and civilian courts. The main contribution of these laws of Oman is to provide basic and fair practices in the country in respect to the business economy of the country. The basic renaissance of the judicial system analyzed and begins with the judicial authority law in accordance to the Royal Decree of 90/99.This contribution helped in the development and the growth of the country in respect to the economical aspect of the country to a great extent. The Oman Court and the legal system thereby follows the differentiated laws in respect to the Royal Decree.

Question 2: Discuss utmost good faith and disclosure in insurance law, quoting relevant Oman Royal Decree. Critically explain why it is important to have insurance cover.

Answer: Utmost Good Faith and disclosure in Insurance law: In respect to the insurance contracts, the Utmost good faith wants the proper and full disclosure of all the information relevant to it. According to this law, if a person made material misrepresentation intentionally, the insurer can avoid the complication that the person was required to face as the result of the insurance contract. In previous time, the insurance law was promulgated by Royal Decree 12/1979. However, this Royal Decree has been amended. The new one is Royal Decree 39/2014.

Importance of having insurance cover: Insurance is important for keeping commerce moving. Insurance is required by lenders. For instance, mortgage lenders wants the client to provide the proof of insurance before the client make the purchase of a new building. Insurance is also important for the stability of business in Oman. Insurance helps a business to run flawlessly in Oman even when a key member or a piece of important equipment goes out. Here are the reasons why having insurance is important in Oman (Alshammari et al. 2018).


Question 3: Critically explain unfair labour practice, and how Oman labour law prevents unfair labour practices, quoting relevant Oman Royal Decree and Article of Oman Labour Law.

Answer: Unfair labor practice: The sultanate of Oman has developed and enhanced the labor law in 2012 with much more advantageous and better employment relations in respect to the employees. In this respect it is defined that there should be no malpractices in respect to the treating of the labors in Oman. This labor practice also defines that there should be timely payment of the workers and mandatory leaves with no discrimination in respect to caste and color of the employee in the organizations based in Oman. This labor law was formulated in respect to the issue of Royal decree 35/2003 to deal with the source of the dealings and the law of employment practice as well. It also effectively analyses that the dedicated labor force of Oman is treated in respect to the law and the formulation in the company premises of Oman.

Oman law preventing unfair labor practices: The Oman law applies to all the private sector organizations of in the Oman law. It is provided and implemented on all the Omani and the Non Omani organizations in the sultanate. In accordance to this law, the government employs the contracts and also effectively entities there working hours and leaves in respect to the formulation of the law. The commercial dispute and the overtime pay of the company are also analyzed in the company. A prudent and definite regulation is analyzed and updated in respect to this law. The valid work permit and the medical allowance is also effectively provided to the employees in this respect of the law. IT is also effectively stated in the law that all the enterprises and organizations that are based in Oman must hereby follow the Oman labor before employing the employee to reduce the effectivituis of discrimination in the organization (Giumelli and van 2017).

a. Interview a human resources manager of a company of your choice in Oman, and ask him/her about his experience with issues to do with unfair labour practices.

Answer: Interview of human resources manager: The human resource manager of Mantel company is interviewed to analyze the fact that wither the Oman labor law of Royal Decree 35/2003 is followed while the recruitment of the labor andf staffs in the organization. Some of the basic facts that are analyzed by the interview are to identify whether a basic provision of labor laws is provided to the labor in the organization of Omantel or not (Pauceanu, 2016).

1. What is the labor laws followed in your Company?

HR Manager: "The labor laws of Oman issued by the Royal Decree of 35/2003 are effectively followed in our company Mantel to have a positive benefit of the company."

2. How well has your company implemented the labor laws in the policies of the company ?

HR Manager: "Mantel has acquired and implemented this law very well in respect to the employee of the organization for maintaining a definite and better working condition."

3. What are the effects of the labor law on the employee of the organization ?

HR Manager: "The effects of labor law have a positive effect on the employee of the organization."

4. How has the labor law affected the company's environment for the employees?

HR Manager: "The Company's environment has a definite positive impact on the companies environment."

5. What is your perspective in relation to the labor law of Oman?

HR Manager: "I have analyzed that the labor law has helped in the companies benefit."

Analysis: The labor laws are effectively followed in the company of Omantel in respect to the developmental and analysis of the employee environment.

Omantel has very well implemented the laws of labor in the organization for the benefit and purpose of the company.

There is a definite positive impact on the employee of the organization after the implementation of the law.

The environment has benefitted in a positive effect in the company's development.

The human resource manager has also idealized that the implementation of the labor law have positively affected in the companies benefit (Ennis and Walton, 2018).


Question 4: (a) Critically analyse the statement, "Protection of intellectual property encourages creativity, innovation and breathtaking inventions." Discuss this in relation to World Trade Organisation (WTO) and Oman intellectual property law provisions quoting relevant Royal Decree.

Answer: Intellectual Property Law: Analyzing the statement, "Protection of intellectual property encourages creativity innovation and breathing invention"

Intellectual Property Law and WTO: This law is about the rules that have been made for encouraging and securing legal rights. These legal rights are about inventions, artistic works, and designs. This law is effective in protecting the personal property of an individual. It also protects the control of assets, which are intangible.

Royal Decree 39/2000 is relevant in respect to the intellectual property law. This Royal Decree is about regulating industrial patterns and drawings. For a drawing to be protected, it is important for the drawing to be registered in the Trade Drawing and Pattern Register of Oman. The TRIPS Agreement by WTO plays an important knowledge in facilitating knowledge and creativity of individuals.

Intellectual Property Law encouraging creativity and innovation: Intellectual Property Law is all about securing the legal rights related to the innovation and creativity. The purpose of it is making individuals interested in developing creative works that can be beneficial for the society. In this way this law encourages creativity and innovation.

(b) Critically explain tort law and why it is important for society. Give a detailed example of the application of tort law in Oman.

Answer: Tort Law

Definition: Tort Law is the law that is effective in protecting individuals from the harmful action of others. When an individual is engaged in a tort, the person is violating the civil law. If anyone gets hurt by the act of another, the person can claim and demand compensation from the person who was involved in the tort. The purpose of the law is to make the wrongdoer pay for the action that has been done and cause harm to another one (Shmueli, 2016).

Importance: The importance of this law is of the paramount level as it prevents individuals from getting engaged to do anything that cause harm to another. It is effective is reducing the crime rate in Oman (Herstein, 2015).

Application: Oman makes the application of this law in a proper manner. For instance, if an individual comes to the court of Oman and claims that someone has caused the person to get hurt, proper action is taken immediately. The injury is not always the physical injuries but also emotional injuries.

Question 5: Critically explain six aspects of a valid contract and how contracts lead to orderly commerce, quoting relevant Royal Decree? Give a relevant well explained Oman company example to support your answer.

Answer: A discussion related to the six aspects of a valid contract is illustrated in the following section. These six elements are:

Offer: The most important element of a valid contract is offer. The contract law is developed by considering Royal Decree 27/2013. An offer is required to be in an agreement as where no offer exists, it will not be considered as an agreement. It is the most important element for ensuring that the contract is valid and acceptable. In a contract, the importance of making a contract for a party is certainly important. Offer certainly has difference with an advertisement or an opinion.

Acceptance: The offer that is mentioned in a contract is required to be accepted. When other person or other party becomes well aware of the offer, then the matter of acceptance comes. There would be no acceptance if the parties who are the part of the offer negotiate or want to make a discussion related to the offer.

Consideration: In the contract, consideration is undoubtedly very important. Consideration means that other person is agreed to giving something back in return. It can be considered as an exchange between the person who has promised and the other one to whom the promise has been made.

Intention in creating Legal Laws: It is also very important for a valid contract to have it. It is the most important thing for an intention to create legal laws though the contracts Act 1950 has not said anything regarding it (Prince, 2015).

Certainty: It is another important fact of a valid contract. The terms in a contract is required to be stated in a clearer manner.

Capacity: Capacity of a contract means that the parties associated with the contract have the legal ability to do the task mentioned in the contract (Krawiec and Liu, 2017).

A contract leads to orderly commerce by protecting both parties, locking financial contract, and making the proper closing of the contract.

Example In respect to the Oman Oil Company: Oman Oil Company is a company in Oman that is owned by the government of Oman. The Contract Law of Oman is considered buy this company when taking any decision related to the business. This organization, when making business related deals with other organizations, makes contract by considering this law and ensure that this law holds all the effective elements that are required to make a contract valid. This law has been followed not only when making deal with other companies but also when making a deal with the employees.


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