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QUESTION: Our contractor has issued legal notice to pay liquidated damages for delay as per contract even though there is no financial loss. Is it legal to claim liquidated damages amount which is exorbitant considering the incurred loss? What is the legal remedy? Is it possible to challenge the contract at this point?
JSK, Doha
ANSWER: According to Article 265 of the Civil Code, if the object of an obligation is not a sum of money, the parties may determine in advance the value of the compensation in the contract or in a subsequent agreement. Article 266 will prevail over any provision of the contract which purports to render liquidated damages payable irrespective of the actual loss. However, if parties have agreed an amount of compensation in advance of the occurrence of a loss, the courts may reduce the pre-agreed compensation if it is proven that the damages incurred are less than the pre-agreed amount of compensation. Any agreement to the contrary shall be null and void.
Repatriation expenses
Q: Our management has decided not to provide air tickets to employees who have resigned from employment. But I have read some articles which say that an employee is entitled for return ticket and other benefits. Is it mandatory to provide ticket in the case of employee who has resigned from employment?
KU, Doha
A: Upon termination of the employment contract, the employee is entitled for the repatriation expenses as per law irrespective of termination or resignation. As per Article 57 of labour law, the employer shall at its cost return the employee to the place of recruitment or to any place agreed upon between the parties on termination of employment contract. In the case of termination of a definite term contract before completion of the agreed term, the employee must bear the return expenses if the contract provides so. The employer shall complete the proceedings of returning the non-Qatari worker within a period not exceeding two weeks from the expiry date of the contract. Only when the worker joins another employer before his departure from the country, the obligation to return him to his country or other place shifts to the new employer.
Rental disputes
Q: I am working with a private company in Doha and staying near Hilal. My rental contract is valid up to December 2017. A few weeks ago, our landlord started asking us to vacate the premises without any reason or to increase the rent. Now he has filed a case to terminate the agreement through court to renovate the building. From the agent, we come to know that landlord has got new parties with higher rent. If the court orders us to vacate and landlord re-rented the premises to new party, can we initiate any action? If the landlord is not accepting the rent, how can the tenant pay it?
UI, Doha
Q: If the court orders the tenant to vacate the premises for the works, the Lessor should proceed with the licensed works within six months of the date on which the leased premises were vacated (Article 19 of the Rental laws). In the event if the Lessor does not undertake the licensed works, or lets the said premises to another tenant before undertaking such works, the Lessee may submit a claim for compensation if such is warranted.
The Landlord may rescind the rent contract, even before the expiry of the period if the tenant without any justifiable reason fails to pay rent within seven days from the due date. If the landlord refuses to accept the rent, the tenant may, within seven days of the date of such refusal, notify the landlord, by registered letter, that the rent is due to be received within seven days, and if the landlord does not accept such rent within the specified period, the tenant shall deposit the rent with the treasury of the Committee for Settlement of Rental Disputes, against no fees. This shall be considered as payment of the rent on the prescribed date. The deposit receipt shall be considered a document absolving the tenant from the value of the due rent to the extent of the amount deposited.
Different values
Q: If there is difference in the value of cheque amount in figures and words, which one will be considered? A cheque issued by one of our customer against our invoice has difference in the amount.
DF, Doha
A: As per Article 565 of the Trade law, when the amount payable by cheque is expressed in words and also in figures, and if different values are written in figures and words, the amount denoted by the words shall be the amount payable.
l E-mail: leges@qatar.net.qa
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