Compensation for terminating a contract
February 10 2018 12:28 AM

By Dr Nizar Kochery/Doha

Question: We have appointed a subcontractor for supply of materials and installation. However, due to various reasons we lost our contract with the client. The contract was not one of back-to-back nature. As per law, would any termination be possible? Please advise.
JS, Doha

Answer: Article 707 of the Civil Code provides for an employer’s entitlement to terminate a contract for convenience at any time, provided that he compensates the contractor for the expenses he has incurred, the works he has performed and completed and for the profit the contractor would have gained if he had completed the work. The law permits the court to assess or otherwise adjust the compensation due to the non-terminating party. If the compensation due is disputed by the contractual parties, the court will determine the compensation due.

Exemption from the judicial fees
Q: Does the law allow exemption from court fee in any circumstances? I have lent money to one of my friends. But now he is not willing to repay the money. I came to know that there is court fee and other charges for conducting a case. I lost my job so that I cannot process the case paying the fees. In such case, how can I get exemption? I heard that for labourers there is no court fee. Please advise.  
JAK, Doha 

A: According to Article 551 of the Civil and commercial procedure code, if a party proves to be unable to pay the judicial fees, he shall be exempted wholly or partially from payment. Exemption shall include fees of judicial papers, execution fees, expenses of judicial notices and other expenses borne by the litigants. Exemption shall be conditioned on there being good prospects of success in the claim. A request for exemption from payment of fees shall be submitted to the competent court and the court shall examine such a request. 
With regard to exemption of court fees, the exemption will be granted only for employment related matters. According to Article 10 of the Labour Laws, all lawsuits filed by the workers or their heirs claiming the entitlements as per law or the service contract shall be shall be exempted from judicial fees. 

Authorisation by a shareholder
Q: I own 2% shares of a company doing business in Doha. Recently I was terminated from my employment. Now I am not receiving any information about the company’s decisions and I cannot attend its meetings because I am not in Doha. The partners suggest that I grant one of them a power of attorney for attending meetings but I wish to appoint a friend who is not a partner. Please advise.
SD, Doha

A: According to Article 252 of the Commercial Companies Law, every shareholder has the right to attend the general assembly regardless of the number of shares owned by him and by virtue of a particular authorisation, he may authorise by a special power of attorney a partner other than the manager to represent him in the general assembly. Every shareholder shall have a number of votes equivalent to the number of shares he owns or represents.

Recovering loss from an employee
Q: An employee damaged the company’s property which led to delay and loss in completion of work. What is the provision in the Labour Law to recover the loss from the employee. Is it legal not to pay the wages to recover the loss? Please advise.
KA, Doha

A: Under Article 71, the worker is under obligation to compensate the employer for damage, loss or destruction to machinery, products or equipment of the establishment as a result of his fault provided that the obligation of the worker for the compensation shall be preceded by an enquiry. The employer may deduct the value of the compensation from the wage provided that the value of the compensation does not exceed the wage due to the worker for seven days in one month. 
* Please send your questions by e-mail to: [email protected]


According to Article 126 of Civil and Commercial Procedure law, the judgment shall include name of the court issued, the date and place of issuance, names of the judges who heard the pleadings and participated and attended the pronouncement of the judgment, the parties’ names, their titles, capacities and the domicile of each of them, and their appearance or non-appearance. The judgment shall also contain all the facts of the case, the parties’ remedies and summary of their statements of defence, their substantial defence, and the reasoning and text of the judgment. The lack of the factual reasoning of the judgment and defects or mistakes, which lead to non-identification of the parties or their titles or the judges who participated in the issuance of the judgment, shall render the judgment and void.  
The presiding judge and the Registry of the court shall sign the original copy of the judgment within seven days from the date of lodging the original draft of the judgment which shall be kept in the case file. The copy of the judgment under which the execution will be undertaken shall be stamped with the court seal and signed by the Registry of the court and it shall only be delivered to the party that is interested in executing the judgment, and only when execution is permissible. If the Registry of the court refuses to give the first executive copy, the applicant may submit a petition to the summary judge in the court who issued the judgment to issue order.
As per Article 130, no second executive copy shall be delivered to the same party, except in the event that the first copy is lost. The application for a second executive copy shall be submitted before the court that issued the judgment by a summons delivered from one party to the other. 
When issuing the final judgement on the case, the court shall at its own instance rule on the costs of the case. The court may direct the losing party to pay expenses of the case including lawyers’ fees. If the losing parties are several, the court may divide the expenses between them on an equal basis or on a pro rata basis of the interest of each of them in the lawsuit according to the assessment of the court, and they shall not be bound by joint liability unless they were originally jointly liable in the obligation which has been judged upon. 
The court may order the party, in whose favour the judgment issued, to pay the whole or part of the expenses, if the losing party does not dispute the claim or it is adjudged that the party incurred unnecessary expenses, or if such party did not bring to the knowledge of his opponent or disclose any conclusive documents, or their contents, which were in possession.
According to Article 133, if each of the parties fails in some of their claims, the court may order each party to bear expenses which they incurred, or divide the expenses between them according to what the court may decide in its judgment. The court may also order one of them to bear the whole expenses. The expenses of joining the case shall be borne by the joiner if the claims are separate and joinder application or the claims are rejected. The court may, at the request of a party, award him compensation to be paid by the opponent in view of the expenses arising from each malicious defence.

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