Court Nullified A Contract Worth Kd 2 Million Signed By A Gulf-based Construction Company

The Commercial Court of First Instance nullified a contract worth KD 2 million signed by a Gulf-based construction company with a Spanish construction giant. The contract was for the construction and maintenance of some government houses at Sabah Al-Ahmad Residential City. According to the case file, the Spanish company sued the aforementioned Gulf company, demanding compensation for liquidating the letter of guarantee deposited by the plaintiff company at a local bank while the contract was canceled. However, counsel to the Gulf company Lawyer Ghanim Al- Suhail insisted that his client had the right to liquidate the deposit and cancel the contract, since the Spanish company breached clauses of the contract. He said the Spanish company was a subcontractor in the project, but failed to abide by the criteria, standards and schedule that were agreed upon.

 

SOURCE : ARABTIMES

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