business law
(B.Sc. AAF / BBA)
Module code: UG090- OBL -Omani Business Law
Summer 2020
Assignment 1
Done by: Dana said alshibli
ID: ST09881
Submitted to: Dr. Joyce Noronha
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PART I: VOCATIONAL SCENARIO
Task 1: Based on Tort Law
Question 1.
After reviewing the case and situation of both Munira and Safiya I evaluate that Yes, Munira
should sue against Safiya because of the negligence while on the road. Munira faced a huge loss
because of carelessness of the learner driver Safiya. Researches says that learner drivers are
equally responsible while being on road either it is their first or last term behind the wheel. They
comprise of the same care and responsibility to take care of themselves as well as other with
them in car or on the road. In excuse regarding their inexperience or anything else will save them
from being accused against the law. The principle of equal responsibility has been established in
the case of Nettleship v. Watson [1971] when a learner driver crashed injuring her instructor. The
case against learner drivers will be heard in the court of Appeal that present a statement that
every driver regardless of their experience, having confident to drive on the road shall held
responsible for any inconvenience. The court of Appeals also states that every driver will have to
meet with the standards of the reasonably competent drivers. Munira can sue against Safiya by
saying that she bears damages because of her carelessness. Munira passed instructions to Safiya
that she didn’t hear and crashed towards the pavement.
Based on the case of Nettleship v. Watson [1971], Munira have a valid claim against Safiya that
she can use for the persuasion of her damages. Munira bear physical as well as material damages
and Safiya is liable for these damages that she has to fulfill. Munira has a valid claim in sense
that her leg get fracture and she was hospitalized for 10 days that affect on her business and
future career opportunities, she lost her GUCCI glasses and also face loss in her Rolex watch. All
these are ultimately huge losses that could be fulfilled by suing against the learner driver Safiya
(Gordon, 2015). ( OK but you have to estimate the losses in monetary value )
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Question 2.
There are four types of elements of negligence that Munira will have to prove are as follows;
i. Duty of Care: The duty of care means that one party is obliged to maintain the
peaceful environment in order to make sure that the other party does not suffer. Thus,
Safiya neglected the duty of care by putting her instructor into damaging condition.
ii. Breach of Duty: The second element of negligence is breach of duty that means
Safiya fails to meet with the standard of care that every driver is expected to meet
under law.
iii. Causation: The third element of negligence that court will consider is causation.
Munira will present evidences that the action of Safiya cause her injury and huge
losses. As Safiya doesn’t stop the car on Munira’s instructions that means she cause in
fact and show irresponsible and inattentive attitude while on road.
iv. Damages: this is the last form of negligence where the victim of accident will be
compensated. Munira will prove her loses and get monetary relief from Safiya to
fulfill her damages (Firm, 2020). OK but you can improve by giving examples )
Question 3.
Based on the law stated above Safiya being the learner driver is responsible for her action.
But in case Safiya wants to defend her case she can use the opponent claim that Munira
knows that Safiya is a learner driver thus she should be alert of any accident and provide
alternative decision to avoid that accident. Safiya can claim that Munira do not tell her about
the management of crisis situation and she got confused when instruct her to straight the
wheel. She can claim that Munira do not took wheel in her hands-on time to avoid the
accident. All these claims are suggestions for Safiya to defend her not to prove that Munira is
wrong because the legal statement about learner drivers defend the position of Munira
instead of Safiya. ( this is weak defence put yourself in safiya’s shoes and explain how you
would get out of trouble )
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Task 2: Based on Contract Law
The case shows the positive relation of both companies where one the Superstrong
supplying products while the second company safe packaging was accepting products without
any dispute and rejection. No, the dispute occurs between two parties and one-party claim that
they had not any contract of the amount charged by the Superstrong. Legal contribution about
agreements and contracts says that it is important to have all dealings and contracts in written
form but is someone is supplying products or services without showing written agreement and
doing response on time that means yes from their side although they do not sign any written
documents. Same in the case of Superstrong and Safe packaging who keeps supplying products
but do not sign the written agreement that doesn’t mean the company was unwillingly supplying
products (Corporation, 2017). (Rewrite by explaining the elements of valid contract )
Part 2: Based on Taxation Law of Oman
Question 1.
Numerous countries across the world are entering into the double tax treaties with other countries
in order to avoid double taxation. Double Tax Treaties (DTTs) are used to avoid stress on
developing countries that covers a huge range of taxes. Signing a tax treaty is beneficial for
developing countries because it relieves international investors from double taxation and also
reduces withholding tax rates on passive income and offer incentives for FDI (Timmis, 2018).
( not enough more reasons required what is a DTA )
Question 2. Based on The Foreign Capital Investment Law of Oman
Task 1.
Oman is one of the developing Arab countries that is offering foreign investment without having
any barrier across the way. The Gulf Corporation Council (GCC) witnessed numerous movement
and developments in the legal structure of the country regarding foreign investment. In order to
compete with other Arab nations like Saudi Arabia, United Arab Emirates and Qatar, Oman also
liberalize its foreign investment policies and grab a huge number of investors from across the
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world. The new FCIL law has been enacted into the country in 2019 that is enforced effectively
in 2020, under the late Sultan Qaboos.
Unlike old FCIL, the new FCIL of Oman makes it easy to start a new business in the country
with or without an Omani partner – thus there are huge or 100% possibilities that anyone having
interests in investment in Oman can raise the capital. The new FCIL specify all business
requirements such as tax exemption standards, nature of investment projects, customs and non-
customs duties and benefits too. The new remote speculation law also encourages outside
investors to move into the financial market and accelerate the economic growth in collective
manner. The lower crude oil prices are linked with the liberalization of foreign investment into
the country and create more opportunities for outside investors. A statement by IMF shows that
foreign investment is necessary for the growth and diversification of GCC (Tariq, 2020). In order
to increase the diversity and collective growth Oman encourages investors from across the world
to agree with the new law and make investments to gain collective advantage. The new law
suggests promotes foreign investment from everyone having business worth, Deep Sea Fisheries
and Processors can flourish into the country to start a new business without and Omani partner.
The investment of Omani products along with other foreign investors would be 10%. The
proposed business law states the global dissertation and accommodates international investors on
good terms. The standards which were resolved as the leader guidelines have made these
advantages real to life understood. It has said that the venture undertakings would be given
special treatment for which application will be submitted through a model application structure
with which all data and records must be accommodated getting endorsement. The council of
ministers can support venture being set up in less created governorates of the Sultanate and give
it certain advantages like exceptions from the exclusion from the rental worth or return of the
option to utilize the terrains and land fundamental for the speculation venture for a period not to
surpassing five years and bar them from Omanisation for a time of two years from the date of the
genuine activity of the task. (ok)
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Task 2.
Both private and public organizations in Oman offer number of incentives to attract investors and
encourage multinational companies to invest in Oman. Incentives that Oman offers to
international investors are as follows;
i. Income tax holiday
ii. Priority allocation in developed industries such as mining, manufacturing, tourism,
fisheries and agriculture that shows Deep Sea Fisheries and Processors can get
priority in Oman if start business there.
iii. Omani companies can freely gain huge profit with fewer burdens of taxes and can
have capital outside of Oman.
iv. In the country there is 100% exemption from custom duties and a corporate tax that
means the company can earn more profit.
v. Preferential trade tariffs with fellow states because of having relations with major
trade organizations.
vi. Foreign investors will get subsidies that would include gas, electricity and water.
vii. Availability of easy access to government loans for the expansion of the business if
required, Deep Sea Fisheries and Processors can use this to broaden the access of the
company in Oman.
viii. Free trade agreements (Chakarov, 2020).
All these incentives say that it is not bad to invest in the country when all these incentives will be
granted by the government of Oman. It would be a great opportunity for Deep Sea Fisheries and
Processors to operate in a country that is offering bundle of incentives to encourage multinational
companies such as Deep-Sea Fisheries and Processors. ( OK)
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Task 3.
To start business in Oman, Deep Sea Fisheries and Processors can look over following
companies or forms of business structures;
i. Public Joint Stock Company
The public joint stock company means stock will be distributed publicly. The collective capital of
the company will be distributed equally as stock. Without the approval from the Ministry of
Commerce and industry the company cannot be operated into the country.
ii. Limited Partnership
In order to register a limited partnership business there will be required one general and one
limited partner of the company. Deep Sea Fisheries and Processors can use this option if start
working with an Omani partner. The general partners of this business would be Omani to pay
partnership obligations without the liability limitations. In this system the limited partner will be
liable for limited profit.
iii. Branch Office
This is the best option for Deep Sea Fisheries and Processors because the company wanted to left
its footprints in Oman like other countries across the globe. They can establish their branch in
Oman to engage aqua farming and vertical farming. Aqua farming is accepted and promoted over
a large scale in the Oman that is a great opportunity for the company to gain success and profit in
Oman. There are numerous projects started into the country that promote as well as train farmers
to expand healthy fisheries practices (Ashok, 2020). For the establishment of this company,
owners will have to get an approved application from the Ministry of Commerce and Industry
(MOCI) about its obligations and activities. The option is best for the Deep-Sea Fisheries
because the company wants to expand its approach across the world thus instead of establishing
a huge company it would be a best option to start a branch office.
iv. Commercial Agency
A business organization in Oman is an organization which is appointed to advance or appropriate
administrations of foreign businesses in the Sultanate. The major capacity of commercial agency
is to trade merchandise and enterprises to Oman by a foreign firm. Commercial agents of a
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commercial agency can only be grated to a permanent Omani resident of Oman, Omani Chamber
of Commerce or someone having at any rate 51% neighborhood shareholdings (Curtis, 2010).
( which form do you suggest )
References
Ashok, R. (2020). Aqua farming proving a hit in Oman.
https://gulfnews.com/world/gulf/oman/aqua-farming-proving-a-hit-in-oman-1.72567660.
Chakarov, M. P. (2020). Government Investment Incentives .
https://www.healyconsultants.com/oman-company-registration/government-incentives/.
Corporation, S. B. (2017). Contracts and agreements.
https://www.smallbusiness.wa.gov.au/business-advice/legal-essentials/contracts-and-
agreements.
Curtis, M.-P. (2010). Doing Business in Oman – The Three Business Structures Foreign
Companies Can Use. https://omanlawblog.curtis.com/2010/06/doing-business-in-oman-
three-business.html.
Firm, T. C. (2020). The Four Elements Of Negligence. The Carlson Law Firm,
https://www.carlsonattorneys.com/news-and-update/four-elements-negligence.
Gordon, S. (2015). Can I Claim Against a Learner Driver?
https://www.slatergordon.co.uk/media-centre/blog/2015/07/can-i-claim-against-a-learner-
driver/.
Tariq, A. (2020). The New Foreign Capital Investment Law in Oman. https://bsabh.com/the-new-
foreign-capital-investment-law-in-oman/.
Timmis, E.-J. Q. (2018). Double Taxation Agreements and Developing Countries . K4D, 1-7.
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