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Fatwa Summary: MJLA Fatwa 212743851 (Contract Value Revision)

The Ministry of Justice and Legal Affairs (MJLA) adopted a literal interpretation of article 52-3 of the Standard Contract for the Construction of Buildings and Civil Works, Fourth Edition 1999 stipulating that the contractor is entitled to a revision of the contract value if the cumulative value of the variation orders exceeds 10% of the original contract value.

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Intel

Case Summary: Supreme Court (Commercial Circuit A) Contestation 591/2021 (Joint Liability of Contractors and Engineers for Construction Defects)

The Supreme Court confirmed that both the contractor and the engineer are jointly liable for defects in a construction project for a period of ten years from the completion of the project, irrespective of what the contract says, in accordance with articles 634 and 635 of the Civil Transactions Law.

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Case Summary: Supreme Court (Criminal Circuit) Contestation 818/2021 (Liability of Food Delivery Platform)

The Supreme Court held that Talabat is a "supplier" for the purposes of the Consumer Protection Law, and therefore, Talabat is liable towards the consumer for the failure of a restaurant to deliver food to a consumer.

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Fatwa Summary: MJLA Fatwa 212747517 (First-Sale VAT Exemption)

The Ministry of Justice and Legal Affairs (MJLA) deemed that the first sale of real estate by the developer in integrated tourism complexes is not exempt from value added tax (VAT).

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Fatwa Summary: MJLA Fatwa 202737218

The Ministry of Justice and Legal Affairs (MJLA) deemed the Corporate Governance Principles for Government-Owned Companies issued by the Capital Market Authority (CMA) to be invalid due to the failure of the CMA to publish such principles in the Official Gazette and the lack of competence of the Executive President of the CMA to issue them. The MJLA also held that companies subordinate to the Oman Investment Authority are not exempt from the scope of such principles.

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Case Summary: Supreme Court (Commercial Circuit) Contestation 620/2019 (Employer Liability for Unauthorised Employee Conduct)

The Supreme Court held that an employer is liable for the conduct of an employee as long as the employee is seen as an apparent agent of the employer, even if the employee conducts activities not authorised by the employer and even if the employer does not gain profit from these activities.

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Case Summary: Supreme Court (Rent Circuit) Contestation 124/2019 (Legal Personality of a Joint Venture Company)

The Supreme Court confirmed a court of appeal judgment in which a lawsuit initiated by a joint venture company against a third party was dismissed on the basis that a joint venture company does not have legal personality, and therefore it is incapable of initiating lawsuits against any third party.

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Case Summary: Supreme Court (Commercial Circuit B) Contestation 724/2020 (Liquidated Damages + Lack of Funds to Complete a Project as Force Majeure)

The Supreme Court confirmed the entitlement of a claimant to liquidated damages and also held that the inability of a contractor to complete a project due to the lack of funds is not recognised as a case of force majeure.

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Case Summary: Supreme Court (Commercial Circuit B) Contestation 970/2010 (Liability of Guarantor Shareholders for Company Debts after Sale of Shares)

The Supreme Court held that a shareholder who signs a guarantee agreement for the debts of the company remains liable for these debts even after selling his shares in the company.

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Fatwa Summary: MJLA Fatwa 192721181 (SAI Confidential Emails)

The Ministry of Justice and Legal Affairs (MJLA) deemed that the State Audit Institute (SAI) has a duty to release the confidential emails of a third-party held in its possession to support the defence of the government against the claims made by that third-party in an arbitration case.

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