The Enforceability of Bank Facility Agreements in Qatar
Type
E-journal
Date
12 Dec 2016
Jurisdiction
Qatar
Taxonomy
Lending & Security, Terms
Copyright
LexisNexis
Relevant company
Al Tamimi & Company
Analysis
It is common for courts to order one of the parties in a facility agreement to specifically perform their obligations under the facility. However, it is rare for courts to impose daily fines until the breaching party performs their obligations.
In a recent judgment, the court of first instance in Qatar ordered the borrower (or, the defendant) to specifically perform their contractual obligation under a facility agreement by depositing with the lending bank (the lender) a specific amount as a guarantee against the facility given by the lender. The court also imposed a daily fine of QAR 5,000 (approximately $1, 370) against the borrower until the borrower deposits the agreed sum upon guarantee with the lender. The lender was an international bank represented by Al Tamimi & Company.