Breach of Handing Over in Contracting Agreement.

Author: “Mohammad Mufid” Ratib Qurashi

Introduction:

The author started a series of articles discussing important topics regarding contracting agreements. The topics covered in our previous articles were the following:

• Defining Contracting Agreements.
• Handing Over in Contracting Agreements.

To continue our series in a proper manner. This article will revolve about the liabilities and penalties that result from violating handing over provisions.

What is a handing over breach?

The Contractor is obliged to hand over the subject of the agreement fully in the agreed-upon place and time. Consequently, if the contractor didn’t commit to his obligation in handing over the subject of the agreement fully, on time and in the agreed-upon place, the contractor would be deemed liable and in breach of handing over obligations. In such case of breach, the owner shall notify the contractor before resorting to any legal or judicial action in the form of execution or contract termination.

Contract Termination:

Article 689 of the Qatari Civil Law states that “Where the contractor delays in commencing or accomplishing the work to such an extent that he cannot possibly deliver the work within the agreed period, or if his actions indicate his intention not to perform his obligation or make the performance of his obligation impossible, the employer may demand the immediate termination of the contract”.

 The possibility of immediately terminating the contract relies on the following points:

1. The impossibility of handing over the works on time due to a major delay in performing the works.
2. The impossibility of handing over the works on time due to the contractor’s actions.
3. The remaining works are not minor and are of importance.
4. Foreign cause and force majeure provisions are not applicable.

Specific Performance:

Article 245 of the Qatari Civil Law states that “Upon the obligor being notified, the obligation shall be enforced in kind, as soon as possible”.

In addition, Article 251 states that:

1. Where the obligor fails to perform his obligation, the obligee may apply to the court for permission to enforce the obligation at the expense of the obligor, if such enforcement is possible.
2. In the event of an emergency, the obligee may enforce the obligation at the expense of the obligor without permission from the court.

Resorting to specific performance by the owner shall be preceded by notifying the contractor. After the notification and getting a court’s permission, the owner has the right to enforce performing the works at the expense of the contractor. However, in the cases where time is crucial or in cases of emergencies, the owner may perform the works at the expense of the contractor without a court’s decision. Whether the owner choose to terminate the contract or to perform the remaining works, he/she can claim indemnity due to mistakes or damages caused by the contractor.

For further information in regards with contracting agreements, don’t hesitate to contact any of our professionals at Alhababi Law Firm.