If a bank lends money, they normally look for guarantees from the trader, partner, or company directors. Those, promise to meet debts from their personal resources if business fails. Bank guarantees are usually joint or several, as any of them is obliged to pay the debt and sue others. Guarantees
A major principle in securities markets law, provides that trading in the market shall take place only through licensed brokers. Trading shall be confined to licensed brokers to ensure that the business is undertaken by professional, qualified and trained bodies with the aim of protecting investors. The law allows the
Businesses are required to operate under one of several legal structures that determine the rules and regulations of the operation. As per the Company Law in Bahrain, there are 8 types of companies. LLC, recognized among them, is a kind of business structure that combines features of partnerships, sole proprietorships
Islamic finance, is growing fast all over. The spread of Islamic banking is reaching high percentage, as revealed in studies. This march is due, to the nature of Islamic banking, far from greediness, speculation, uncertainty, ambiguity and others. To support this march, there is a need for new products to
A charge, simply, is one of the types of security by which a person who borrows money give the lender certain right over his asset to support the duty of the borrower to repay what is owed under the contract of loan. Based on this, the lender thus has two
An indemnity clause is a specific term in a contract between two contracting parties. Wherein (B) agrees to indemnify (A) for any liability that (A) may be under. (A), may incur liability in respect of a third party (C) in which case (B) must compensate (A) for any claim which
Where a clause is duly incorporated into a contract, in conflicts, Courts will examine the words used to see if the clause covers the breach and loss which has actually occurred. The main rules used by Courts, include “strict interpretation” where, an exemption clause will be effective only if it
It is not necessary to observe complex formalities to create a contract for sale of goods. This contract, may be in writing or by word of mouth or even implied form the conduct of the parties. The capacity to enter into contracts is generally governed by the law of contract.
In business transactions, it is quite common for the parties to agree in advance for damages that will be payable in the event of a breach of contract. This case is known as “liquidated damages”. If there is no prior agreement as to the sum to be paid, the amount
A contract of bailment arises when the owner of goods “the bailor” entrusts and keeps their possession into the care of another “the bailee”. Examples of bailment contracts include placing your documents in safe custody at a bank, rent a flat or a bike, taking some clothes to dry cleaner,