Category: Intel

The Supreme Court held that a commercial agent's right to be compensated for the money it spent executing the agency, under article 8 of the Commercial Agencies Law, is established for the private benefit of the agent and does not relate to public order, so it may be validly waived by agreement. The court also held that a clear clause in a signed renewal agreement fixing a final, non-renewable term satisfies the three-month non-renewal notice requirement under article 15 of the Commercial Agencies Law.

The Supreme Court held that a guarantor's right under article 246 of the Commercial Law to be released when the creditor delays pursuing the debtor is not a matter of public order, so it can be waived by contract, and that a guarantee described as solidary, continuing, unconditional, and irrevocable does exactly that.

The Supreme Court ruled that the dismissal of a criminal charge does not automatically prove that the accusation was malicious, as bad faith is an internal state of mind that requires clear evidence showing the accuser had no legitimate interest in filing the complaint.

The Supreme Court held that Omani courts lack jurisdiction over civil claims, including lease disputes, filed against diplomatic missions and their ambassadors. This is because the general jurisdiction over non-Omanis diplomats residing in Oman is restricted by the diplomatic immunity granted under the Vienna Convention on Diplomatic Relations of 1961.

The Supreme Court held that an agreement to purchase real estate in Oman on behalf of foreign investors does not constitute a commercial agency under the Commercial Agencies Law, as it does not involve promoting or distributing foreign goods. Consequently, the failure to register such an agreement with the Ministry of Commerce and Industry does not invalidate the contractual obligations of the parties.

The Supreme Court ruled that powers of attorney issued in GCC member states do not require foreign legalisation procedures to be valid in Oman. Separately, a court-approved settlement is a judicial judgment, but breaching articles 162 and 171 of the Civil and Commercial Procedures Law does not render it void, because the law does not prescribe nullity as the penalty for those breaches.

The Supreme Court held that a religious fatwa issued by the Grand Mufti is not binding on the judiciary because the objective of a religious fatwa is simply to respond to the query of the inquirer based on the facts they present.

The Supreme Court held that regularly maintained commercial books constitute valid evidence for a merchant against an adversary merchant in disputes concerning commercial acts, even if the commercial books are created by the merchant relying on them.

The Supreme Court held that a final judgment of a Bahraini court finding that no arbitration clause existed in an agreement between parties constitutes res judicata in Oman under the Riyadh Arab Agreement for Judicial Cooperation, and Omani courts cannot dismiss a lawsuit for arbitration based on that same clause.