Friday, December 11, 2009

Omani Courts: Case Summary

Oman's Law of Commercial Agencies states that the Oman Courts will not hear any case as regards an agency agreement which has not been registered with Oman's Ministry of Commerce and Industry. An Omani agent relied on this provision in 2005 when its foreign principal sought payment for goods shipped to the agent. The Primary Court found in favour of the agent, but the Supreme Court ultimately ruled in the principal's favour, saying it would be unjust enrichment if the agent could avoid paying for the goods it had received from the principal. In other words, the Supreme Court was not willing to allow the agent to get goods free of charge on the pretext that the agency agreement was unregistered. The agent was ordered to pay the principal for the goods in question.