Failure to perform contract obligations

(MENAFN- Gulf Times) Question: What are the legal chances for extension of time in a contract if it categorically states 'time is the essence of contract? What procedures are to be followed for seeking termination?
XL, Doha

Answer: According to Article 183 of the Civil Code, in contracts binding on both parties and imposing reciprocal obligations, where one of the parties fails to perform his obligation, the other party may, after serving a formal notice on the other party, demand performance of the contract or dissolution of the contract, and may claim any damages caused by such failure to perform. The judge may grant additional time to the debtor, if it is necessary as a result of the circumstances. The judge may also reject the application for dissolution if the obligation not performed is insignificant compared with the obligations considered in their entirety.

Partners in tradename dispute
Q: Do the partners have right to use the trade name for any other business? We started an interior designing company in 2008 with four partners. Later on, one of our partners left the country transferring his shares to us. Now he has returned to Qatar and started a new business in the same trade name. We have served notice to change the name and he refused the same stating that only he had granted the name for the first company. Due to similar name, we had lost some business also. In this situation, can we handle this issue legally? What is the provision in law that deals with this? Please advise.
UW, Doha

A: According to Article 68 of the Trade Law, if a trade name is used by a person other than its owner without a previous agreement, or if the owner uses it in contravention to the law, interested parties shall be entitled to apply for the discontinuation of its use and may also claim to delete the name from the commercial registry and may claim damages if such claim is admissible. The penalty for breaching the provisions shall be imprisonment for a term not more than one year or a fine of not more than QR100,000 or with both penalties.

Medical carefor employees
Q: In some of our employment contracts, the company has agreed to bear all the medical expenses. Now we are not in a position to afford such expenses as bypass surgery, etc. Whether the company is bound to bear all the medical expenses of the employee? Is it possible to stop paying for such expenses by issuing suitable notification? What are the minimum requirements provided by Labour Law? Please advise.
JK, Doha

A: Labour Law does not mandatorily require the employer to provide free medical treatment for its employees otherwise than for employment injury, occupational diseases etc. However, if the employment contract agrees to bear all medical expenses, employment injury related or otherwise of the employee, the employee will be entitled for the same. Any change in terms of employment will not be valid unless otherwise mutually agreed. Hence, a notification arbitrarily withdrawing the medical benefits will not extinguish the claims of employee.
As per the Labour Law, the employees are legally entitled for medical care and compensation for injury sustained, and such benefits shall not be waived unless it is evident that the employee deliberately inflicts injury on himself in order to receive such compensation or medical leave. As per Article 109, the worker who sustains a work injury shall be entitled to receive medical treatment appropriate to his condition at the cost of the employer in accordance with the decision of the competent medical authority. The worker shall receive full wage during the treatment period or the period of six months whichever is nearer. If the treatment continues for a period exceeding six months, the worker shall be paid half of his wage until his recovery or proof of his permanent disability or death whichever is nearer.

Termination oflease contract
Q: As per municipality regulations, we cannot continue to live in the same premises. At the same time the landlord is not willing to terminate the lease contract. He is suggesting that we arrange another tenant to occupy the premises. We cannot find any other tenant. Can we terminate the contract with the help of court? The contract contains the purpose of lease. Please advise.
KM, Doha

A: In this case, the tenant can approach the rental dispute court for termination of the contract. As per Article 591 of the Civil Laws, if the leased property is delivered to the lessee in such a condition that it is unfit for the use for which it is leased, or if its usefulness is appreciably diminished, the lessee may demand either the cancellation of the lease agreement or a reduction of the rent equivalent to the loss of use; in both cases lessee is entitled to claim compensation, if compensation is due without prejudice to his right to oblige the lessor to carry out the necessary repairs to enable him to get the intended benefit.

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Gulf Times

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