1: Describe the role and importance of law in the UAE society with particular reference to federal legal and judicial system.
2: Identify the elements required for a contract to be valid and the various methods of discharging a contract in the UAE.
3: Describe and apply the UAE laws of agency, sale of goods in business organizations.
Case Study:
A band called ‘The Star’ was performing its first UAE tour. In preparation for the tour, the band had contacted many agencies to help find a hall and make arrangements for the performance of the show. After a long search, it communicated with an agency named “Sounds and Lights” in Abu Dhabi. The band signed a contract with the agency as its agent in the UAE.
According to the terms and conditions of the contract, the agency would be responsible for the work and arrangements for the band from start to finish including, getting approval from the UAE Municipality for the performance of the show in the UAE, finding the right premises and selling the tickets. The band decided to perform its first show at night at the Auditorium of Abu Dhabi Indian School (ADIS).
The band gave clear instructions to the agency that it needed to perform from 09.00 PM to 02.00 AM and that the agency obtained permission for that. Abeer, the lead singer was informed by the manager of the agency that the auditorium was suitable for the performance of the show and that the selected hall would hold 2500 people, and that there wouldn’t be any problems. However, the manager didn’t mention the fact that due to licensing issues, the concert would come to an end by 11.00 P.M.
The members of the band signed the contract of hire for the venue. They were pleased to hear that all 2500 tickets were sold very quickly. However, on the night of the concert, only 1800 people were admitted onto the premises on the instructions of the local police due to health and safety reasons. The police also informed the band that even though the tickets displayed the finishing time of the concert as 2 AM, the license of the venue (place) only entitled them to be open until 11.00 PM.
This resulted in 700 people demanding their money back due to not being allowed entry on the night of the show and a large percent of those who witnessed the show asking for reimbursement as the concert finished earlier than had been advertised on the tickets. This would cost the band around 120,000 Dirhams and so it asked for reimbursement from the agency for this amount as compensation.
Required:
To help Abeer and the other members of the band decide on their next course of action, please answer the following questions:
1. Describe THREE (3) different ways by which you could show the role and importance of laws on our society.
2. Explain the TWO (2) important elements in defining a contract to justify the existence of a contract in the above case.
3. Based on the above case, describe the manner in which the contract was to be discharged.
4. Which of the essential elements of a valid contract would you say is missing in the above case? What will be the effect of its missing on the contract?
5. Identify and describe the parties affected by the concerned UAE laws in the agency agreement in the above case.
6. Identify and describe the kind of agent and principal in the above case.
7. Carefully explain the type of duty that has been breached by the agency.
8. Do you think the manager of the agency had the duty to disclose the information pertaining to the licensing of the premises? Explain.
9. What do you think are the remedies available to the band and the people in reference to the contract of agency and sale of goods?