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103-464: The hawala system originated in India. In 2003 Hawala as a legal concept was documented, finding evidence of Hawala reaching back to 1327, in a publication by Matthias Schramm and Markus Taube, with the title "Evolution and institutional foundation of the hawala financial system". It has been speculated that "Hawala" itself influenced the development of the agency in common law and in civil laws , such as

206-520: A tropical , hot desert climate ( Köppen BWh). Summers in Dubai are extremely hot, prolonged, windy, and humid, with an average high around 40 °C (104 °F) and overnight lows around 30 °C (86 °F) in the hottest month, August. Most days are sunny throughout the year. Winters are mild to warm, with an average high of 24 °C (75 °F) and overnight lows of 14 °C (57 °F) in January,

309-419: A business. In the case of a corporation, since a corporation can only act through natural person agents, the principal is bound by the contract entered into by the agent, so long as the agent performs within the scope of the agency. A third party may rely in good faith on the representation by a person who identifies himself as an agent for another. It is not always cost effective to check whether someone who

412-509: A construction boom that brought a massive influx of foreign workers, mainly Asians and Middle Easterners. Between 1968 and 1975, the city's population grew by over 300%. As part of the infrastructure for pumping and transporting oil from the Fateh field, located offshore of the Jebel Ali area of Dubai, two 500,000-gallon storage tanks were built, known locally as "Kazzans", by welding them together on

515-502: A disastrous occurrence in a town where many family homes were still constructed from barasti – palm fronds. The conflagration consumed half the houses of Bur Dubai, while the district of Deira was said to have been totally destroyed. The following year, more fires broke out. A female slave was caught in the act of starting one such blaze and was subsequently put to death. In 1901, Maktoum bin Hasher Al Maktoum established Dubai as

618-403: A distinction is drawn between knowledge of the firm's general business activities and the confidential affairs as they affect one client. Thus, there is no imputation if the partner is acting against the interests of the firm as a fraud. There is more likely to be liability in tort if the partnership benefited by receiving fee income for the work negligently performed, even if only as an aspect of

721-507: A fixed period. Notice in this connection that want of skill, continuous disobedience of lawful orders, and rude or insulting behavior has been held to be sufficient cause for dismissal of an agent. Further, reasonable notice has to be given by one party to the other; otherwise, damage resulting from want of such notice, will have to be paid (s. 206). Under s. 207, the revocation or renunciation of an agency may be made expressly or implicitly by conduct. The termination does not take effect as regards

824-588: A form of remittance instrument to transfer money from place to place, as a form of credit instrument or IOU to borrow money and as a bill of exchange in trade transactions. The Reserve Bank of India describes the Hundi as "an unconditional order in writing made by a person directing another to pay a certain sum of money to a person named in the order." According to the CIA , with the dissolution of Somalia's formal banking system, many informal money transfer operators arose to fill

927-543: A free port with no taxation on imports or exports and also gave merchants parcels of land and guarantees of protection and tolerance. These policies saw a movement of merchants not only directly from Lingeh, but also those who had settled in Ras Al Khaimah and Sharjah (which had historical links with Lingeh through the Al Qawasim tribe) to Dubai. An indicator of the growing importance of the port of Dubai can be gained from

1030-580: A just bargain or equilibrium between the giving and receiving of commercial agents and principals". In Ireland, Directive 86/653/EEC was implemented in the Commercial Agents Regulations of 1994 and 1997. In India, for the purposes of contractual law, section 182 of the Contract Act 1872 defines agent as “a person employed to do any act for another or to represent another in dealings with third persons”. According to section 184 as between

1133-493: A lot of money." According to Fedel Handhal, a scholar on the UAE's history and culture, the word Dubai may have come from the word dabba ( Arabic : دب ) (a past tense derivative of yadibbu ( Arabic : يدب ), which means "to creep"), referring to the slow flow of Dubai Creek inland. The poet and scholar Ahmad Mohammad Obaid traces it to the same word, but to its alternative meaning of "baby locust " ( Arabic : جراد ) due to

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1236-472: A natural inlet, Dubai Creek , which has been dredged to make it deep enough for large vessels to pass through. Dubai also has multiple gorges and waterholes, which dot the base of the Western Al Hajar mountains. A vast sea of sand dunes covers much of southern Dubai and eventually leads into the desert known as The Empty Quarter . Seismically , Dubai is in a very stable zone—the nearest seismic fault line,

1339-509: A negative financial impact on the city, with depositors and traders withdrawing money and trade. However, Dubai rebounded in a changing political climate and prospered. In the late 1990s, various foreign trading communities—initially from Kuwait , during the Gulf War, and later from Bahrain , amidst the Shia unrest—relocated their businesses to Dubai. Dubai served as refuelling base for allied forces at

1442-402: A new airport terminal building was constructed which included Dubai's first duty-free shops . Throughout the 1960s Dubai was the centre of a lively gold trade, with 1968 imports of gold at some £56 million. This gold was, in the vast majority, re-exported – mainly to customers who took delivery in international waters off India . The import of gold to India had been banned and so the trade

1545-472: A pipeline from wells at Awir and a series of storage tanks and, by 1968, Dubai had a reliable supply of piped water. On 7 April 1961, the Dubai-based MV Dara , a five thousand ton British flagged vessel that plied the route between Basra (Iraq), Kuwait , and Bombay (India), was caught in unusually high winds off Dubai. Early the next morning in heavy seas off Umm al-Quwain, an explosion tore out

1648-411: A position held by an agent. For example, partners have authority to bind the other partners in the firm, their liability being joint and several, and in a corporation, all executives and senior employees with decision-making authority by virtue of their position have authority to bind the corporation. Other forms of implied actual authority include customary authority. This is where customs of a trade imply

1751-508: A position held to deter fraud and other harms that may befall individuals dealing with agents, there is a concept of Inherent Agency power, which is power derived solely by virtue of the agency relation. For example, partners have apparent authority to bind the other partners in the firm, their liability being joint and several (see below), and in a corporation , all executives and senior employees with decision-making authority by virtue of their declared position have apparent authority to bind

1854-533: A principal and an agent whereby the principal, expressly or implicitly, authorizes the agent to work under their control and on their behalf. The agent is, thus, required to negotiate on behalf of the principal or bring them and third parties into contractual relationship. This branch of law separates and regulates the relationships between: The reciprocal rights and liabilities between a principal and an agent reflect commercial and legal realities. A business owner often relies on an employee or another person to conduct

1957-407: A significant regional and international trade hub, emphasizing on tourism and luxury. Dubai has been a center for regional and international trade since the early 20th century, and its economy relies on revenues from trade, tourism, aviation, real estate, and financial services. Oil revenue helped accelerate the development of the city. However, oil production contributed less than 1 percent to

2060-560: A time when the tribes of the interior were also experiencing poverty. In a letter to the Sultan of Muscat in 1911, Butti laments, "Misery and poverty are raging among them, with the result that they are struggling, looting and killing among themselves." In 1910, in the Hyacinth incident , the town was bombarded by HMS Hyacinth , with 37 people killed. Dubai's geographical proximity to Iran made it an important trade location. The town of Dubai

2163-444: A town centre, all of which could feasibly be built with the limited financial resources at the time. 1959 saw the establishment of Dubai's first telephone company, 51% owned by IAL (International Aeradio Ltd) and 49% by Sheikh Rashid and local businessmen and in 1961 both the electricity company and telephone company had rolled out operational networks. The water company (Sheikh Rashid was chairman and majority shareholder) constructed

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2266-426: Is an implied ratification to those transactions and an implied grant of authority for future transactions of a similar nature. If the agent has actual or apparent authority, the agent will not be liable for acts performed within the scope of such authority, as long as the relationship of the agency and the identity of the principal have been disclosed. When the agency is undisclosed or partially disclosed, however, both

2369-495: Is apparent authority to do the things ordinarily entrusted to one occupying such a position. If a principal creates the impression that an agent is authorized but there is no actual authority, third parties are protected so long as they have acted reasonably. This is sometimes termed "agency by estoppel " or the "doctrine of holding out", where the principal will be estopped from denying the grant of authority if third parties have changed their positions to their detriment in reliance on

2472-458: Is attractive to customers because it provides a fast and convenient transfer of funds, usually with a far lower commission than that charged by banks. Its advantages are most pronounced when the receiving country applies unprofitable exchange rate regulations or when the banking system in the receiving country is less complex (e.g., due to differences in the legal environment in places such as Afghanistan, Yemen, and Somalia). Moreover, in some parts of

2575-644: Is in breach of the Obligation must be appraised holistically, considering all aspects of the relationship; material facts will include the contractual and commercial leverage of each party, their objective intentions as enshrined in the contract, and the business practices of the sector in question. Nevertheless, the starting axiom of this investigation must be that these are commercial relationships in which professionals are expected to be self-reliant and must be free to pursue their self-interest. Critically, this will not be an estimation aimed at achieving ontological fairness,

2678-554: Is in the Book of Geography by the Andalusian - Arab geographer Abu Abdullah al-Bakri . The Venetian pearl merchant Gasparo Balbi visited the area in 1580 and mentioned Dubai ( Dibei ) for its pearling industry. Dubai is thought to have been established as a fishing village in the early 18th century and was, by 1822, a town of some 700–800 members of the Bani Yas tribe and subject to

2781-517: Is inherent in the status of a partner and does not arise out of a contract of agency with a principal. The Partnership Act 1890 of the United Kingdom (which includes both England and Scotland) provides that a partner who acts within the scope of his actual authority (express or implied) will bind the partnership when he does anything in the ordinary course of carrying on partnership business. Even if that implied authority has been revoked or limited,

2884-426: Is no statutory definition of this obligation to act “dutifully and in good faith”, it has been suggested that it requires principals and agents to act "with honesty, openness and regard for the interests of the other party to the transaction". Two "normative precepts" assist in concretising this standard of conduct: "Firstly, expressing honesty and openness, commercial agents and principals must mutually co-operate in

2987-477: Is represented as having the authority to act for another actually has such authority. If it is subsequently found that the alleged agent was acting without necessary authority, the agent will generally be held liable. There are three broad classes of agent: An agent who acts within the scope of authority conferred by their principal binds the principal in the obligations they create against third parties. There are essentially three kinds of authority recognized in

3090-580: Is situated on the Persian Gulf coast of the United Arab Emirates and is roughly at sea level (16 m or 52 ft above). The emirate of Dubai shares borders with Abu Dhabi in the south, Sharjah in the northeast, and the Sultanate of Oman in the southeast. Hatta , a minor exclave of the emirate, is surrounded on three sides by Oman and by the emirates of Ajman (in the west) and Ras Al Khaimah (in

3193-563: The principal or client ) to create a legal relationship with a third party. A legal entity may also act as an agent: For example, two corporate groups may assign the task of intermediating an M&A transaction to a business agency, that acts as a 3rd party, in order to finalize the deal. This happens for example when you move over an entity to an intermediary holding company, before settling it into its final destination entity. Real estate transactions refer to real estate brokerage , and mortgage brokerage . In real estate brokerage,

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3296-720: The Al Bu Falasah tribe seceded from Abu Dhabi and established themselves in Dubai. The exodus from Abu Dhabi was led by Obeid bin Saeed and Maktoum bin Butti , who became joint leaders of Dubai until Ubaid died in 1836, leaving Maktoum to establish the Maktoum dynasty . Dubai signed the General Maritime Treaty of 1820 with the British government along with other Trucial States , following

3399-605: The British campaign in 1819 against Ras Al Khaimah . This led to the 1853 Perpetual Maritime Truce . Dubai also – like its neighbours on the Trucial Coast – entered into an exclusivity agreement in which the United Kingdom took responsibility for the emirate's security in 1892 . In 1841, a smallpox epidemic broke out in the Bur Dubai locality, forcing residents to relocate east to Deira . In 1896, fire broke out in Dubai,

3502-521: The Jebel Ali port, a deep-water port accommodating larger ships, marked a significant development. Initially facing challenges, Sheikh Mohammed initiated the JAFZA ( Jebel Ali Free Zone ) around the port in 1985, facilitating unrestricted import of labour and export of capital for foreign companies. Simultaneously, Dubai airport and the aviation industry continued their expansion. The Gulf War in early 1991 had

3605-477: The Taipei 101 and officially gaining its title as the tallest skyscraper in the world. Dubai's smart city initiatives, which include smart tourism, play a key role in advancing the city’s growth ambitions, primarily through its Smart Dubai project. In 2016, the world's first functioning 3D-printed office building was opened in Dubai, as part of a drive to boost the Persian Gulf's main tourism and business hub. Dubai

3708-652: The aval in French law , the aval in Portuguese law , and the avallo in Italian law. The words aval and avallo bear a similarity to hawala, and the context of intensive trade between Italian cities and the Muslim world suggests a possible link. The transfer of debt was "not permissible under Roman law but became widely practiced in medieval Europe, especially in commercial transactions ", potentially borrowing from hawala. Agency

3811-666: The 3rd and 4th centuries. Prior to the introduction of Islam to the area, the people in this region worshiped Bajir (or Bajar ). After the spread of Islam in the region, the Umayyad Caliph of the eastern Islamic world conquered south-east Arabia and drove out the Sassanians . Excavations by the Dubai Museum in the region of Al-Jumayra ( Jumeirah ) found several artefacts from the Umayyad period. An early mention of Dubai in 1095

3914-612: The Act of Union to form the United Arab Emirates . The seventh emirate, Ras Al Khaimah, joined the UAE on 10 February 1972, following Iran 's annexation of the RAK-claimed Tunbs islands. In 1973, Dubai joined the other emirates to adopt a uniform currency: the UAE dirham . In that same year, the prior monetary union with Qatar was dissolved and the UAE dirham was introduced throughout

4017-531: The British government resulted in a cessation of hostilities. Despite a lack of oil, Dubai's ruler from 1958, Sheikh Rashid bin Saeed Al Maktoum , used revenue from trading activities to build infrastructure. Private companies were established to build and operate infrastructure, including electricity, telephone services, and both the ports and airport operators. An airport of sorts (a runway built on salt flats)

4120-463: The British withdrawal would leave behind. The principle of union was first agreed upon between the ruler of Abu Dhabi, Sheikh Zayed bin Sultan Al Nahyan , and Sheikh Rashid of Dubai on 18 February 1968 meeting in an encampment at Argoub Al Sedirah, near Al Semeih, a desert stop between the two emirates. The two agreed to work towards bringing the other emirates, including Qatar and Bahrain, into

4223-515: The Emirates. Throughout the 1970s, Dubai experienced continued growth fueled by revenues generated from oil and trade, even as the city witnessed an influx of immigrants fleeing the Lebanese civil war . Border disputes between the emirates persisted even after the formation of the UAE; it was only in 1979 that a formal compromise was reached, putting an end to disagreements. In 1979, the establishment of

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4326-518: The Jebel Ali Free Zone during the Gulf War and again during the 2003 Invasion of Iraq . Subsequent significant increases in oil prices prompted Dubai to maintain its focus on free trade and tourism. In the early 2000s, construction of artificial islands on the coast of Dubai, known as the Palm Islands and The World Islands , began. The Burj Khalifa was opened in Dubai in 2010, surpassing

4429-513: The Persian Gulf. In 1937 an oil exploration contract was signed which guaranteed royalty rights for Dubai and concessionary payments to Sheikh Saeed bin Maktoum . However, due to World War II , oil would not be struck until 1966. In the early days since its inception, Dubai was constantly at odds with Abu Dhabi . In 1947, a border dispute between Dubai and Abu Dhabi on the northern sector of their mutual border escalated into war. Arbitration by

4532-424: The Persian Gulf. By then, amenities in the town grew and a modern quarter was established, Al Bastakiya . Dubai was known for its pearl exports until the 1930s; the pearl trade was damaged irreparably by the 1929 Great Depression and the innovation of cultured pearls . With the collapse of the pearling industry, Dubai fell into a deep depression and many residents lived in poverty or migrated to other parts of

4635-612: The UK, this was implemented into national law in the Commercial Agents Regulations 1993. Thus, agent and principals in a commercial agency relationship are subject both to the Common law and the Commercial Agents Regulations. The Commercial Agents Regulations require agents to act “dutifully and in good faith” in performing their activities (Reg. 3); co-extensively, principals are required principals to act “dutifully and in good faith” in their “relations” with their commercial agents (Reg 4). Though there

4738-468: The Zagros Fault, is 200 kilometres (124 miles) from the UAE and is unlikely to have any seismic impact on Dubai. Experts also predict that the possibility of a tsunami in the region is minimal because the Persian Gulf waters are not deep enough to trigger a tsunami. The sandy desert surrounding the city supports wild grasses and occasional date palms. Desert hyacinths grow in the sabkha plains east of

4841-508: The abundance of locusts in the area before settlement. The history of human settlement in the area now defined by the United Arab Emirates is complex and extensive. It points to extensive trading links between the civilisations of the Indus Valley and Mesopotamia , and even as far afield as the Levant . Archaeological finds in the emirate of Dubai, particularly at Al-Ashoosh , Al Sufouh , and

4944-407: The actual commercial agency relationship. Accordingly, the intensity of the required co-operation will vary, depending on the terms of the contract and the pertinent commercial practices. Secondly, commercial agents and principals must not exploit asymmetries in their agency relationship in such a manner that frustrates the legitimate expectations of the other party. In this respect, whether a conduct

5047-444: The agent and the principal are liable. Where the principal is not bound because the agent has no actual or apparent authority, the purported agent is liable to the third party for breach of the implied warranty of authority. If the agent has acted without actual authority, but the principal is nevertheless bound because the agent had apparent authority, the agent is liable to indemnify the principal for any resulting loss or damage. If

5150-409: The agent has acted within the scope of the actual authority given, the principal must indemnify the agent for payments made during the course of the relationship whether the expenditure was expressly authorized or merely necessary in promoting the principal's business. An agent owes the principal a number of duties. These include: An agent must not accept any new obligations that are inconsistent with

5253-407: The agent to have certain powers. In wool buying industries it is customary for traders to purchase in their own names. Also incidental authority, where an agent is supposed to have any authority to complete other tasks which are necessary and incidental to completing the express actual authority. This must be no more than necessary Apparent authority (also called "ostensible authority") exists where

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5356-422: The agent, till it becomes known to him and as regards third party, till the termination is known to them (s. 208). When an agent's authority is terminated, it operates as a termination of subagent also (s. 210). This has become a more difficult area as states are not consistent on the nature of a partnership. Some states opt for the partnership as no more than an aggregate of the natural persons who have joined

5459-470: The authority of, a principal are allographs for that principal. Dubai Dubai is the most populous city in the United Arab Emirates and the capital of the Emirate of Dubai , the most populated of the country's seven emirates . The city has a population of around 3.79 million (as of 2024), more than 90% of which are expatriates . Beginning in the early 20th century, Dubai developed into

5562-659: The beach and then digging them out and floating them to drop onto the seabed at the Fateh field. These were constructed by the Chicago Bridge & Iron Company , which gave the beach its local name (Chicago Beach), which was transferred to the Chicago Beach Hotel, which was demolished and replaced by the Jumeirah Beach Hotel in the late 1990s. The Kazzans were an innovative oil storage solution which meant supertankers could moor offshore even in bad weather and avoided

5665-550: The buyers or sellers are the principals themselves and the broker or his salesperson who represents each principal is his agent. Agency law in the United Kingdom is a component of UK commercial law , and forms a core set of rules necessary for the smooth functioning of business. Agency law is primarily governed by the Common law and to a lesser extent by statutory instruments. In 1986, the European Communities enacted Directive 86/653/EEC on self-employed commercial agents. In

5768-586: The city, the salt-crusted coastal plains, known as sabkha , give way to a north–south running line of dunes. Farther east, the dunes grow larger and are tinged red with iron oxide . The flat sandy desert gives way to the Western Hajar Mountains , which run alongside Dubai's border with Oman at Hatta. The Western Hajar chain has an arid, jagged and shattered landscape, whose mountains rise to about 1,300 metres (4,265 feet) in some places. Dubai has no natural river bodies or oases; however, Dubai does have

5871-503: The city, while acacia and ghaf trees grow in the flat plains within the proximity of the Western Al Hajar mountains. Several indigenous trees such as the date palm and neem as well as imported trees such as the eucalyptus grow in Dubai's natural parks. The MacQueen's bustard , striped hyena , caracal , desert fox , falcon, and Arabian oryx are common in Dubai's desert. Dubai is on the migration path between Europe, Asia, and Africa, and more than 320 migratory bird species pass through

5974-493: The construction of a jet airport... More and more European and Arab firms are opening up and the future looks bright." In 1962, with expenditure on infrastructure projects already approaching levels some thought imprudent, Sheikh Rashid approached his brother-in-law, the Ruler of Qatar , for a loan to build the first bridge crossing Dubai Creek . This crossing was finished in May 1963 and

6077-401: The corporation. Even if the agent does act without authority, the principal may ratify the transaction and accept liability on the transactions as negotiated. This may be express or implied from the principal's behavior, e.g. if the agent has purported to act in a number of situations and the principal has knowingly acquiesced, the failure to notify all concerned of the agent's lack of authority

6180-399: The duties owed to the principal. An agent can represent the interests of more than one principal, conflicting or potentially conflicting, only after full disclosure and consent of the principal. An agent must not usurp an opportunity from the principal by taking it for himself or passing it on to a third party. In return, the principal must make a full disclosure of all information relevant to

6283-518: The eastern Arabian Peninsula , on the coast of the Persian Gulf , it is a major global transportation hub for passengers and cargo. In 2023, Dubai was the third most-visited city in the world . Many theories have been proposed as to the origin of the word "Dubai". One theory suggests the word used to be the souq in Ba. An Arabic proverb says " Daba Dubai " ( Arabic : دبا دبي ), meaning "They came with

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6386-414: The emirate in spring and autumn. The waters of Dubai are home to more than 300 species of fish, including the hammour . The typical marine life off the Dubai coast includes tropical fish, jellyfish, coral, dugong , dolphins, whales, and sharks. Various types of turtles can also be found in the area including the hawksbill turtle and green turtle , which are listed as endangered species. Dubai features

6489-470: The emirate's GDP in 2018. Due to financial secrecy, low taxes, and valuable real estate, Dubai is an appealing destination for money launderers, criminals, corrupt political figures and sanctioned businesspeople to launder or hide money. Dubai has the second-most five-star hotels in the world and the tallest building in the world , the Burj Khalifa , which is 828 metres (2,717 ft) tall. Located in

6592-512: The firm. Others treat the partnership as a business entity and, like a corporation , vest the partnership with a separate legal personality. Hence, for example, in English law a partner is the agent of the other partners, whereas in Scots law "a [partnership] is a legal person distinct from the partners of whom it is composed" and so a partner is the agent of the partnership per se . This form of agency

6695-523: The first major projects Sheikh Rashid embarked upon when oil revenue started to flow was the construction of Port Rashid , a deep-water free port constructed by British company Halcrow. Originally intended to be a four-berth port, it was extended to sixteen berths as construction was ongoing. The project was an outstanding success, with shipping queuing to access the new facilities. The port was inaugurated on 5 October 1972, although its berths were each pressed into use as soon as they had been built. Port Rashid

6798-421: The form of direct cash transactions. In addition to commissions, hawala brokers often earn their profits through bypassing official exchange rates . Generally, the funds enter the system in the source country's currency and leave the system in the recipient country's currency. As settlements often take place without any foreign exchange transactions, they can be made at other than official exchange rates. Hawala

6901-414: The hawala system. Agency (law) The law of agency is an area of commercial law dealing with a set of contractual , quasi-contractual and non-contractual fiduciary relationships that involve a person, called the agent , who is authorized to act on behalf of another (called the principal ) to create legal relations with a third party. It may be referred to as the equal relationship between

7004-870: The hawala, as well as other remittance systems. The First International Conference on Hawala in May 2002 published the Regulatory Frameworks for Hawala and Other Remittance Systems . The International Monetary Fund (IMF) contributed a chapter, in which informal value transfer systems were considered. According to the IMF, countries with limited financial services experience macroeconomic consequences because residents rely heavily on informal fund transfer systems. Informal value transfer systems share common characteristics, including anonymity and lack of regulation or official scrutiny . Therefore informal value transfer systems may be susceptible to use by criminal organizations for money laundering and terrorist financing . In

7107-403: The knowledge of the partner acting will be imputed to the other partners, or to the firm if a separate personality. The other partners or the firm are the principal and third parties are entitled to assume that the principal has been informed of all relevant information. This causes problems when one partner acts fraudulently or negligently and causes loss to clients of the firm. In most states,

7210-412: The law: actual authority (whether express or implied), apparent authority, and ratified authority (explained here ). Actual authority can be of two kinds. Either the principal may have expressly conferred authority on the agent, or authority may be implied. Authority arises by consensual agreement, and whether it exists is a question of fact. An agent, as a general rule, is only entitled to indemnity from

7313-464: The most basic variant of the hawala system, money is transferred via a network of hawala brokers, or hawaladars , without actually moving money. According to the author Sam Vaknin , there are large hawaladar operators with networks of middlemen in cities across many countries, but most hawaladars are small businesses who work at hawala as a sideline or moonlighting operation. In general, the process of hawala operates as follows: The unique feature of

7416-471: The movements of the steamer of the Bombay and Persia Steam Navigation Company, which from 1899 to 1901 paid five visits annually to Dubai. In 1902 the company's vessels made 21 visits to Dubai and from 1904 on, the steamers called fortnightly – in 1906, trading 70,000 tones of cargo. The frequency of these vessels only helped to accelerate Dubai's role as an emerging port and trading hub of preference. Lorimer notes

7519-481: The need to pipe oil onshore from Fateh, which is some 60 miles out to sea. Dubai had already embarked on a period of infrastructural development and expansion. Oil revenue flowing from 1969 onwards supported a period of growth with Sheikh Rashid embarking on a policy of building infrastructure and a diversified trading economy before the emirate's limited reserves were depleted. Oil accounted for 24% of GDP in 1990 but had fallen to 7% of GDP by 2004. Critically, one of

7622-405: The north). The Persian Gulf borders the western coast of the emirate. Dubai is positioned at 25°16′11″N 55°18′34″E  /  25.2697°N 55.3095°E  / 25.2697; 55.3095 and covers an area of 1,588 sq mi (4,110 km ), which represents a significant expansion beyond its initial 1,500 sq mi (3,900 km ) designation due to land reclamation from

7725-620: The notably rich trove from Saruq Al Hadid show settlement through the Ubaid and Hafit periods, the Umm Al Nar and Wadi Suq periods, and the three Iron Ages in the UAE. The area was known to the Sumerians as Magan and was a source of metallic goods, notably copper and bronze. The area was covered with sand about 5,000 years ago as the coast retreated inland, becoming part of the city's present coastline. Pre-Islamic ceramics have been found from

7828-423: The partner will have apparent authority unless the third party knows that the authority has been compromised. Hence, if the partnership wishes to limit any partner's authority, it must give express notice of the limitation to the world. However, there would be little substantive difference if English law was amended: partners will bind the partnership rather than their fellow partners individually. For these purposes,

7931-416: The performance of their agreement. Conduct in good faith requires that each party proactively take action to assist the other in the realisation of their bargain, as opposed to mere abstention from obstructive behaviour. However, whether a party has acted in good faith must not be determined by reference to a moral or metaphysical notion of co-operation; this assessment must be based on an objective appraisal of

8034-408: The principal (s. 204), though he can always do so, before such authority has been so exercised (s. 203). Further, under s. 205, if the agency is for a fixed period, the principal cannot terminate the agency before the time expired, except for sufficient cause. If he does, he is liable to compensate the agent for the loss caused to him thereby. The same rules apply where the agent, renounces an agency for

8137-487: The principal and the agent, put upon that authority." This decision is heavily criticised and doubted, though not entirely overruled in the UK. It is sometimes referred to as "usual authority" (though not in the sense used by Lord Denning MR in Hely-Hutchinson , where it is synonymous with "implied actual authority"). It has been explained as a form of apparent authority, or "inherent agency power". Authority by virtue of

8240-462: The principal and third persons, any person (whether he has contractual capacity or not) may become an agent. Thus, a minor or a person of unsound mind can also become an agent. An allograph may be the opposite of an autograph – i.e. a person's words or name ( signature ) written by someone else. In law, an allograph is a document not written by any of the parties involved. In American law, Cheques (checks) written by an agent of behalf of, and with

8343-537: The principal if they have acted within the scope of their actual authority, and if they act outside of that authority they may be in breach of contract, and liable to a third party for breach of the implied warranty of authority. Express actual authority means an agent has been expressly told they may act on behalf of a principal. Implied actual authority, also called "usual authority", is authority an agent has by virtue of being reasonably necessary to carry out his express authority. As such, it can be inferred by virtue of

8446-401: The principal's words or conduct would lead a reasonable person in the third party's position to believe that the agent was authorized to act, even if the principal and the purported agent had never discussed such a relationship. For example, where one person appoints a person to a position which carries with it agency-like powers, those who know of the appointment are entitled to assume that there

8549-543: The representations made. In the case of Watteau v Fenwick , Lord Coleridge CJ on the Queen's Bench concurred with an opinion by Wills J that a third party could hold personally liable a principal who he did not know about when he sold cigars to an agent that was acting outside of its authority. Wills J held that "the principal is liable for all the acts of the agent which are within the authority usually confided to an agent of that character, notwithstanding limitations, as between

8652-480: The rule of Sheikh Tahnun bin Shakhbut of Abu Dhabi . In 1822, a British naval surveyor noted that Dubai was at that time populated with a thousand people living in an oval-shaped town surrounded by a mud wall, scattered with goats and camels. The main footpath out of the village led to a reedy creek while another trailed off into the desert and merged into caravan routes. In 1833, following tribal feuding, members of

8755-459: The rulers of the Eastern Gulf, the result of a treaty signed in 1892 named the "Exclusive Agreement". This was to change with Prime Minister Harold Wilson 's announcement, on 16 January 1968, that all British troops were to be withdrawn from "East of Aden". The decision was to pitch the coastal emirates, together with Qatar and Bahrain , into fevered negotiations to fill the political vacuum that

8858-457: The same family, village, clan or ethnic group, and cheating is punished by effective excommunication and the loss of honour, which lead to severe economic hardship. Informal records are produced of individual transactions, and a running tally of the amount owed by one broker to another is kept. Settlements of debts between hawala brokers can take a variety of forms (such as goods, services, properties, transfers of employees, etc.), and need not take

8961-462: The sea . Dubai lies directly within the Arabian Desert . However, the topography of Dubai is significantly different from that of the southern portion of the UAE in that much of Dubai's landscape is highlighted by sandy desert patterns, while gravel deserts dominate much of the southern region of the country. The sand consists mostly of crushed shell and coral and is fine, clean and white. East of

9064-409: The second class cabins and started fires. The captain gave the order to abandon ship but two lifeboats capsized and a second explosion occurred. A flotilla of small boats from Dubai, Sharjah , Ajman , and Umm al-Quwain picked up survivors, but 238 of the 819 persons on board were lost in the disaster. The construction of Dubai's first airport was started on the northern edge of the town in 1959 and

9167-435: The standard provisions of vicarious liability. Whether the injured party wishes to sue the partnership or the individual partners is usually a matter for the plaintiff since, in most jurisdictions, their liability is joint and several . Agency relationships are common in many professional areas. An agent in commercial law (also referred to as a manager ) is a person who is authorized to act on behalf of another (called

9270-452: The system is that no promissory instruments are exchanged between the hawala brokers; the transaction takes place entirely on the honour system . As the system does not depend on the legal enforceability of claims, it can operate even in the absence of a legal and juridical environment. Trust and extensive use of connections are the components that distinguish it from other remittance systems. Hawaladar networks are often based on membership in

9373-539: The terminal building opened for business in September 1960. The airport was initially serviced by Gulf Aviation (flying Dakotas , Herons, and Viscounts ) but Iran Air commenced services to Shiraz in 1961. In 1962 the British Political Agent noted that "Many new houses and blocks of offices and flats are being built... the Ruler is determined, against advice [from the British authorities] to press on with

9476-468: The transactions that the agent is authorized to negotiate. The internal agency relationship may be dissolved by agreement. Under sections 201 to 210 of the Indian Contract Act 1872 , an agency may come to an end in a variety of ways: Alternatively, agency may be terminated by operation of law: The principal also cannot revoke the agent's authority after it has been partly exercised, so as to bind

9579-569: The transfer from Lingeh "bids fair to become complete and permanent", and also that the town had by 1906 supplanted Lingeh as the chief entrepôt of the Trucial States. The "great storm" of 1908 struck the pearling boats of Dubai and the coastal emirates towards the end of the pearling season that year, resulting in the loss of a dozen boats and over 100 men. The disaster was a major setback for Dubai, with many families losing their breadwinners and merchants facing financial ruin. These losses came at

9682-604: The union. Over the next two years, negotiations and meetings of the rulers followed—often stormy—as a form of union was thrashed out. The nine-state union was never to recover from the October 1969 meeting where British intervention against aggressive activities by two of the Emirates resulted in a walk-out by Bahrain and Qatar. They dropped out of talks, leaving six of the seven "trucial" emirates to agree on union on 18 July 1971. On 2 December 1971, Dubai, together with Abu Dhabi, Sharjah , Ajman , Umm al-Quwain , and Fujairah joined in

9785-462: The void. It estimates that such hawaladars , xawilaad or xawala brokers are now responsible for the transfer of up to $ 1.6 billion per year in remittances to the country, most coming from working Somalis outside Somalia. Such funds have in turn had a stimulating effect on local business activity. The 2012 Tuareg rebellion left Northern Mali without an official money transfer service for months. The coping mechanisms that appeared were patterned on

9888-452: The world, it is the only option for legitimate fund transfers. It has been used even by aid organizations in areas in which it is the best-functioning institution. Dubai has been prominent for decades as a welcoming hub for hawala transactions worldwide. The hundi is a financial instrument that developed on the Indian sub-continent for use in trade and credit transactions. Hundis are used as

9991-514: Was $ 35 an ounce but its market price in India was $ 68 an ounce – a healthy markup. Estimates at the time put the volume of gold imports from Dubai to India at around 75% of the total market. After years of exploration following large finds in neighbouring Abu Dhabi , oil was eventually discovered in territorial waters off Dubai in 1966, albeit in far smaller quantities. The first field was named "Fateh" or "good fortune". This led to an acceleration of Sheikh Rashid's infrastructure development plans and

10094-581: Was also "an institution unknown to Roman law" as no "individual could conclude a binding contract on behalf of another as his agent". On the other hand, Islamic law and the later common law "had no difficulty in accepting agency as one of its institutions in the field of contracts and of obligations in general". Following the September 11 attacks in 2001, international organizations responsible for counterterrorism and enforcing laws against money laundering have directed their efforts on identifying problems within

10197-400: Was an important port of call for foreign tradesmen, chiefly those from Iran, many of whom eventually settled in the town. By the beginning of the 20th century, it was an important port. At that time, Dubai consisted of the town of Dubai and the nearby village of Jumeirah , a collection of some 45 areesh (palm leaf) huts. By the 1920s, many Iranians settled in Dubai permanently, moving across

10300-468: Was characterized as smuggling, although Dubai's merchants were quick to point out that they were making legal deliveries of gold and that it was up to the customer where they took it. In 1966, more gold was shipped from London to Dubai than almost anywhere else in the world (only France and Switzerland took more), at 4 million ounces. Dubai also took delivery of over $ 15 million worth of watches and over 5 million ounces of silver. The 1967 price of gold

10403-568: Was established in Dubai in the 1950s and, in 1959, the emirate's first hotel, the Airlines Hotel, was constructed. This was followed by the Ambassador and Carlton Hotels in 1968. Sheikh Rashid commissioned John Harris from British architectural construction firm Halcrow , to create the city's first master plan in 1959. Harris imagined a Dubai that would rise from the historic centre on Dubai Creek, with an extensive road system, organised zones, and

10506-480: Was paid for by a toll levied on the crossing from the Dubai side of the creek to the Deira side. BOAC was originally reluctant to start regular flights between Bombay and Dubai, fearing a lack of demand for seats. However, by the time the asphalt runway of Dubai Airport was constructed in 1965, opening Dubai to both regional and long haul traffic, a number of foreign airlines were competing for landing rights. In 1970,

10609-451: Was to be further expanded in 1975 to add a further 35 berths before the larger port of Jebel Ali were constructed. Port Rashid was the first of a swath of projects designed to create a modern trading infrastructure, including roads, bridges, schools, and hospitals. Dubai and the other " Trucial States " had long been a British protectorate where the British government took care of foreign policy and defence, as well as arbitrating between

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