Ministry of Economy and Commerce announces initiative concerning approved contracts for renting and equipping wedding halls and tents

April 01, 2017

​Approved contracts guarantee uniform deals between providers of rental and equipment services for wedding halls and tents and their clients. The contract aim to reduce controversies over the implementation of mutual obligations.
 The compulsory inclusion of Law No. (8) articles and regulations on Consumer Protection in all contracts that are signed for renting or equipping wedding and event halls and tents.
 It is in the interest of beneficiaries of rental and equipment services for wedding halls and tents to adopt contracts that include the expression “contract approved by the Ministry of Economy and Commerce”.
 In the event of dealing with offices that have not adopted the contracts approved by the Ministry, clients must confirm, contemplate and if necessary refrain from signing contracts until clarifications are given concerning ambiguous services and non-compliant provisions.
 The Ministry of Economy and Commerce said providers of rental and equipment services for wedding halls will have to comply with the new approved contracts within a period of three months that ends on July 1, 2017.
 
 
As part of the Ministry of Economy and Commerce’s efforts to enhance legal protection for consumers in accordance with the provisions of Law No. (8) of 2008 on Consumer Protection and in light of recurring controversies observed in the complaints of consumers that have dealt with providers of rental and equipment services for wedding halls and tents regarding the quality of services provided to clients, the Consumer Protection and Anti-Commercial Fraud department has held a series of meetings with companies specialized in renting and equipping wedding halls and tents. Discussions touched on contentious issues relating to payment procedures, deposits, the postponement and cancelation of agreed upon events, or the reassignment of the ceremony to another person.
 
The meetings fall under the Ministry of Economy and Commerce’s belief in the importance of the ongoing communication with suppliers and service providers in general, including service providers specializing in the rental and equipment of wedding halls and tents, to regulate the relation with consumers. The Ministry urged service providers to comply with article (11) of the aforementioned law, which compels them to disclose specifications, requirements and prices in a precise, clear and detailed way in contracts signed with customers. Service providers shall also abide by the specifications agreed upon when providing services to consumers on the agreed-upon date.
 
This initiative also aims to spare service providers specialized in the rental and equipment of wedding hall and tents the legal repercussions of violating the provisions of Article (24) of Law No. (8) of 2008.
 
Article 24 invalidates any provision stipulated in contracts or related documents signed with consumers if such provisions exempt the service provider from its legal commitments in line with the Consumer Protection law. Competent authorities at the Ministry have sought agreements with service providers specialized in the rental and equipment of wedding hall and tents on uniform contract provisions with consumers to avoid legal complications that may arise from the inclusion of null provisions in contracts and related documents.
 
The department at the Ministry has reached an agreement with companies over uniform contracts for the rental and equipment of wedding halls and tents. The uniform contract protects the rights of all stakeholders in line with applicable laws, and outlines the rights and obligations of all parties in a clear manner.
 
The agreed-upon provisions were included in three types of contracts: a wedding hall rental contract; a wedding hall equipment contract; and a tent rental and supplies contract, in addition to a service delivery report for each contract.
 
The adoption of service delivery reports is intended to prove the delivery of a service as agreed upon at the time of the contract signature. Consumers may also note their objection or comments when it comes to services they believe were not delivered as required.
 
The agreement on uniform contracts and delivery reports was reached after taking into consideration the feedback of companies that participated in the meetings. Representatives of companies provided their written approval and signed on the uniform contracts and delivery reports, reflecting their commitment to the Ministry’s vision to unify procedure in this sector.  Companies will be later permitted to include the expression”contract approved by the Ministry of Economy and Commerce” in accordance with a pre-determined format, which represents proof to clients that the involved provider of rental and equipment services for wedding hall and tents complies with the provisions and regulations of law number (8) of 2009 on Consumer Protection.
 
The Ministry urges other providers who are specialized in the same activity and have yet to discuss their contracts with the competent administrative departments to communicate with the Ministry to verify and approve the legal provisions in their contracts and related documents. The Ministry also stresses that service providers have a duty to include the provisions and regulations of Law No. (8) on Consumer Protection in all contracts to be signed with clients in order to avoid controversies that may arise with clients in the absence of clear mechanisms or due to violations of applicable laws.
 
The Ministry also urges all beneficiaries of rental and equipment services for wedding hall and tents to adopt contracts that are approved by competent authorities and include the expression”contract approved by the Ministry of Economy and Commerce”. Clients should also ensure the compliance of service providers with the services and specifications agreed upon before signing the delivery report. Once agreed upon, the specifications become binding for both signatories of the contract, and each party should comply with them.
 
In the event of dealing with offices that do not adopt contracts approved by the Ministry, the consumer is responsible for verifying the provisions of the contract and related documents before signing them, as well as taking the necessary precautions and refraining from signing until clarifications are given concerning ambiguous services and non-compliant legal provisions.
 
The Ministry of Economy and Commerce said providers of rental and equipment services for wedding halls and tents will have to comply with the new approved contracts within a period of three months from April 1st to July 1st, 2017.  Competent authorities at the Ministry will monitor the compliance of offices specialized in the rental and equipment of wedding halls and tents with their obligations as per the approved contracts as well as the provisions and regulations of Law No. (8) on Consumer Protection and its executive regulations. The ministry will also take legal action against companies that fail to comply with these provisions.