MGT608 Business Law Assignment Sample
Here’s the best sample of MGT608 Business Law Assignment, written by the expert.
Executive Summary
The main aim of study is to create or make contracts as fundamental elements for the business expansion opportunity in context to chosen country i.e., UAE. IFC Global Logistics is an Australian firm is selected for the study as company has decided to do business in UAE country. In order to grab business opportunity, company need to make a contracts as per the legal terms and conditions formed in UAE country. There are different types of contract such as sole proprietor contract, employment contract and sales contract and much more which need to be considered for the operating business successfully in the scenario country.
On the other side, for business expansion in UAE, sources of contract laws are identified i.e., common law and uniform commercial code which help in drafting a contract in an efficient manner. For operating business in UAE, there are some legal requirements which include digital transaction solution, orally and verbally contract are considered legal except the signature on the documents is illegal. Further, there are some remedies such as an award of damages, specific performance, rescission and restitution, etc that should be considered for overcoming the breach of contract in UAE. The Free Trade Agreement among Australia and UAE supports the business growth and sustainability for long term period. The company need to apply and consider the identified specific regulations i.e., restriction on import of prohibited products as well as customer duty on supply of products and services.
Introduction
The main purpose of this study is to develop a contracts for the chosen country where existing Australian business i.e., IFC Global Logistics can be expanded. The country chosen for the business expansion opportunity is UAE and the nature of business is related to supply chain management specialists i.e., export and import business of goods and services (IFC Global Logistics, 2019). This business expansion opportunity will rise the company in global competitive market and expands the market share because if which business will grow and develop successfully. This study will focus on identifying the types of contacts that are needed to do business in a new country and determining necessities of the contract. At the same time, this study will identify and explain the source of contract law as well as also identify the legal requirements for the creating of valid contract in the scenario country. Further, the remedies for breach of contract will be explained that would be helpful for the organization to enter and to do business efficiently and to appoint an agent in UAE. This study will discuss whether Australia has Free Trade Agreement practices with UAE and identify its implications. At last, some specific regulations related to nature of business will be identified that can be applied in UAE country.
Company Background
IFC Global Logistics is a leading international freight logistics company that has been delivering first class supply chain services and third party logistics solution since year 1991. It offers customized and unique end to end trade solutions by providing the best transport and logistics services. In other words, IFC is a professional that identifies best strategies for helping its clients to save time, money and focus on business expansion (IFC Global Logistics, 2019). The company have extensive international logistics network that presents commercial opportunities for its customers as well as also enables to identify the opportunities to save money and time by providing comprehensive range of services.
Main Discussion
Types of contract need to do business in new chosen country i.e., UAE
There are different contracts that are developed while establishment or expansion of business in UAE country. The types of contract includes general business contract (like partnership agreement, indemnity agreement, non-disclosure agreement and property and equipment lease), sales related contract (like purchase order, bill of sale and security agreement), employment contract (like non-compete agreement, independent contractor agreement, general employment contract), sole proprietorship, liability limited contract, joint venture contract, free zones, private or public shareholding company, etc (Forstenlechner & Rutledge, 2010). These all contracts are considered common contracts which are followed by the businesses that are establishing or expanding business to a next level. However, these stated contracts are also considered as self-explanatory and easily understood contracts that need to do business in the UAE country.
Sources of contract law in UAE
Contract law is one of control agreement which is prepared between two different parties under which goods, services, employment contract as well as for doing real estate deals. There are two different sources of contracts which include contract law and uniform commercial code. Common law contract is one source of contract law which require strict adherence to rule of mirror image. According to Husein & Burns (2014), common law is mirror image rule which means acceptance must be for set of terms and conditions which is similar as presented at the time of offer. On the other hand, uniform commercial code is used for dealing with commercial contracts specifically. This source of contract law consists of set of laws that actually governs the transactions taking place between states and also in business transactions. Tsamenyi et al. (2013) also added that this contract law includes different nine articles or rules or law and in which Article 2 is related to sales in which businesses transactions are more elastic in nature than common law.
Legal requirements for creation of a valid contract in UAE
When drafting or developing a contract, it is important to make it valid by considering all legal requirements in order to create a valid contract efficiently. Under the UAE law, a written signature is not necessarily required for making a valid contract. But the contract is considered as a valid when legally competent parties reach an agreement through verbally, electronically and physically document paper. Other than that, contract also undertakes as a valid when the evidence is present in court by parties (Wisham et al., 2011). It is found that leading digital transaction management solution offer electronic record that is admissible in evidences. Other than that, there are various areas that also make the agreement into the valid contract. However, the intension of both parties needs to be common while making a digital or paper documentation.
Similarly, the agreement becomes the legal contract when the contract meets the requirement of both implied and express statutory legality (Dahiyat, 2017). However, it is stated that both the parties should have a capacity to enter into legal relations. In regards to this, parties should have legal age, sound mind to become a part of the contract. Other than that, the parties should fulfill the formalities related to proper documentation whether it is done in oral and written form. However, these areas make the agreement into the legal valid contract.
Remedies for breach of contract in UAE
If any business faces breach of contract UAE contract law has its own remedies in order to ensure the fairness among the contract between two parties. For overcoming the breach of contract, there are some remedies which are framed by the UAE government such as an award of damages, specific performance, rescission and restitution (Xiong, 2012). In respect to limited jurisdiction, the main remedy is an award of damages. This is because specific performance and rescission are considered as equitable remedies which don’t fall within the jurisdiction of courts because award of damage is provided in form of compensatory damage, common damage and special damage respectively. These remedies also involves some limitations to mitigate the award of damage when non breaching party is obliged to minimize the amount of damage at the reasonable extent.
Whether to appoint an agent in chosen country like UAE
There is need to appoint an agent in chosen organization i.e., UAE because appointing an agent help in understanding the legal and business environment of the country where company is deciding to expand the business. According to Farag et al. (2018), appoint an agent in new country supports the company in developing contact with different companies who sells the goods and services to other country. The decision to necessarily appoint an agent is fruitful for business establishment in new country where everything is different like legal responsibilities, business law, economic environment, etc. As per analysis, UAE has great posting filled with many memorable and varied opportunities in both personal and professional manner. Doing business in UAE somewhere requires a proper contacts and relationships with the political and government bodies in order to operate business efficiently.
Does Australia has a free trade agreement with UAE and its implications
Yes, Australia has a free trade agreement with the UAE as import and export of goods and services in both countries is leading to growth and success of new business trade relationship. There are different numbers of things Australia trades with UAE such as meat, diary, fruit, seeds, motor vehicle, alumina, and also office machinery and so on. On the other side, in UAE, overwhelming export services for commodity like crude petroleum is considered as trade agreement. In addition, UAE is considered as contracting party as per General Agreement on Tariffs and Trade. The implication of free trade agreement on UAE found to support for the development of trade and investment relationship with the Gulf Coorperation Council (GCC). At the same time, Al-Shayeb & Hatemi-J (2016) also stated that Free Trade Agreement will help in sustaining the growth in developing a relations with the regions of the competitive Australia’s trade and investment market.
Specific regulations that can be applied in UAE
In UAE, there are some specific regulations that need to be applied as per nature of business as this help in protecting the environment and maintaining economic stability to large extent (Malik et al., 2016). The first specific regulation is related to restriction on import of alcoholic beverages, tobacco products and pork products and prohibition of import products like irradiated food products.
The other specific regulation related to supply of goods and services is custom duty which is calculated on CIF value at rate of 5%. In import of liquor products, specific regulation is made in UAE in form of high custom duty charges i.e., 70% on their CIF value (Cho & Lee, 2017). Thus, these stated specific regulations create a huge influence on the business expansion for supplying the restricted products or services.
Conclusion
From the above study, it can be concluded easily that the business decision of IFC Global Logistics of expansion is found useful for the growth and development opportunity. For business expansion, the company needs to understand the types of contracts required for doing business in new chosen country like UAE. In concern to it, employment contract, general business contract and sales related contract are considered contracts for doing a business in new country. While studying, it is identified that common and uniform commercial law are two source of contract law which are followed in the UAE country. The common law is binding the business from a contract under which one party offers and other party accepts and something valuable is exchanged whereas in uniform commercial law, orally or written expressed terms and conditions must be fulfilled but not strictly.
For business expansion, IFC Global logistics also need to follow legal requirements which are important for operating business in UAE successfully. The legal requirement for the contract is physical, verbal or oral presence is legal for developing a contract. Moreover, some remedies are also identified as a solution for breach of contract like an award of damages, restitution, specific performance and rescission. In order to operate business in UAE market, Australian based firm i.e., IFC need to appoint an agent for the better understanding of UAE culture as well as for developing contacts with existing business owners. At the same time, Australia also has Free Trade Agreement with the UAE for exporting and importing consumable goods and services through supply chain practices. While studying, it is identified that custom duty and restriction of prohibited import of goods and services are found as specific regulations that could be applied in the UAE. The use of these regulations by the company in UAE somewhere restricts the business growth and development to some extent.
References
Al-Shayeb, A., & Hatemi-J, A. (2016). Trade openness and economic development in the UAE: an asymmetric approach. Journal of Economic Studies, 43(4), 587-597.
Cho, H., & Lee, J. (2017). Searching for logistics and regulatory determinants affecting overseas direct purchase: An empirical cross-national study. The Asian Journal of Shipping and Logistics, 33(1), 11-18.
Dahiyat, E. A. R. (2017). A legal framework for online commercial arbitration in UAE: new fabric but old style!. Information & Communications Technology Law, 26(3), 272-292.
Farag, H., Mallin, C., & Ow-Yong, K. (2018). Corporate governance in Islamic banks: New insights for dual board structure and agency relationships. Journal of International Financial Markets, Institutions and Money, 54, 59-77.
Husein, A., & Burns, J. (2014). Choice of Forum in Contracts with Saudi Arabian Counterparties: An Analysis of the DIFC Common Law Courts from a Saudi Arabian Perspective. Int’l Law., 48, 179.
IFC Global Logistics. (2019). IFC Global Logistics: International Supply Chain Management Specialists. Retrieved from: http://www.ifc.com.au/
Malik, M. M., Abdallah, S., & Hussain, M. (2016). Assessing supplier environmental performance: applying analytical hierarchical process in the United Arab Emirates healthcare chain. Renewable and Sustainable Energy Reviews, 55, 1313-1321.
Tsamenyi, M., Qureshi, A. Z., & Yazdifar, H. (2013, September). The contract, accounting and trust: a case study of an international joint venture (IJV) in the United Arab Emirates (UAE). In Accounting forum (Vol. 37, No. 3, pp. 182-195). Taylor & Francis.
Wisham, I., Muneeza, A., & Hassan, R. (2011). Special legal features of the Islamic wa’d or pledge: Comparison with the conventional law on promise within the sphere of Islamic finance. International Journal of Law and Management, 53(3), 221-234.
Xiong, P. (2012). Patents in TRIPs-Plus provisions and the approaches to interpretation of free trade agreements and TRIPs: do they affect public health?. Journal of World Trade, 46(1), 155-186.
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