CASE STUDY

THE FACTS/BACKGROUND -

A few months back, Three foreign friends residing in UAE have agreed to start a business together in RAK mainland, they have agreed about the capital, profits, and all remaining things, and even they selected the limited liability company form, and while they are drafting the Memorandum of Association (MOA) in their English language they didn't reach an agreement on the company name, one of them has suggested to register the company first and then they can select the name after the formation of the Company, but when they went to the RAK investment authority/economic department to register the company and to get the license, the concerned registrar has rejected to register this MOA reasoning that the said MOA is illegal. They went to a legal consultancy firm who advised them that the reason for the rejection is the absence of a UAE national partner who holds 51% of the shares. - On the other side, the three partners while they are waiting for the license, they have started working in their business, and due to the lack of experience they breached one of the signed contracts with a client, and the client is claiming compensation due to the losses he has incurred.

The partners said to the client he is dealing with a limited liability company and you have to get all remedies from the company itself, not the owners, however, the client rejected and allege that this was against the law.

THE ISSUES

After reading the facts, and from your knowledge and studies during the course along with the enclosed legal provisions of the penal code, Discuss with legal analysis the following issues: Whether RAK registrar is correct, and the MOA is illegal or not. Whether the reason raised by the legal consultancy firm is valid or not. Whether the partner's position by alleging the limited liability to the company is correct, or the client is right.

Annexure 1 HOW TO BRIEF Case briefs are a necessary study aid that helps to encapsulate and analyze the mountainous mass of material that students must digest. The case brief represents a final product after reading a case, rereading it, taking it apart, and putting it back together again. In addition to its function as a tool for self-instruction and referencing, the case brief also provides a valuable "cheat sheet" for class participation. Most professors will espouse the value of briefing but will never ask to see that you have, in fact, briefed. You are the person that the brief will serve! Keep this in mind when deciding what elements to include as part of your brief and when deciding what information to include under those elements. What are the elements of a brief? Six elements that are essential to any useful brief are the following: (a) Facts (name of the case and its parties, what happened factually and procedurally, and the judgment) (b) Issues (what is in dispute). (c) Party's Arguments (each party's opposing argument concerning the ultimate issue) (d) Holding (the applied rule of law). (e) Rationale (reasons for the holding). (f) Application (Final opinion based on law). After the briefing, then you have to apply whatever you have used from your legal understanding and analysis along with the legal provisions you selected on the case merits, in order to get the judgment (The Opinion) which you will provide in each issue. FEEDBACK BASED ON THE BELOW RUBRIC: In order to help you write your assessment smarter and could have control on your work, I have provided you with a rubric. The rubric is a grid in which I have specified what you need to do in each aspect of the case study in order to achieve a certain level. You can self-assess and be informed of very rich feedback by indicating your achievement by using the grid. This chart provides basic, general feedback to enable you to diagnose your relative strengths and weaknesses on each of the elements of the case study. Element Weighting Excellent Very Good Good Satisfactory Unsatisfactory 6% Quality of briefing the case facts, parties arguments 5% 4.5% 4% 3% 2.5% 4% Quality & accuracy of discussing the issues. 3.5% 3 % 2.5% 2% 1.5% Quality of Rationale (reasons for the holding) 3% 2.5% 2% 1.5% 1% 0.5% Application and opinion 3% 2.5% 2% 1.5% 1% 0.5% 4% 3.5% 3% 2.5% 2% 1.5% Quality of overall presentation of the case study and selecting the relevant law provisions. TOTAL 20% 17% 14.5% 12% 9% 6.5%