The Civil Liability of the Management Company Operating Hospitality and Other Services in the Iraqi Law

https://doi.org/10.23918/ilic9.64

Keywords: Civil Liability, Vicarious Liability, Operator, Management Company, Management Contract, Operational Decisions.

 

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PROCEEDINGS OF 9th INTERNATIONAL LEGAL ISSUES CONFERENCE

Faculty of Law, Tishk International University

Date:27-28. February 2025

Venue: Kurdistan Region- Erbil, Iraq

ISBN: 979-8-9890269-3-7

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Younes Salahaldein Ali

Faculty of Law and International Relations – Cihan University-Erbil

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Abstract

Management companies play a considerable role in managing and operating various types of hospitality services, such as hotels, restaurants, tourist resorts, as well as managing medical serviced and institutions, in front of which come hospitals. The significance of these companies playing the role of the operator emerges clearly in the field of the hospitality industry, owing to their big experience or expertise in managing and operating their projects, which the hospitality business owner may not have. In that the success and prosperity of his project depend upon the expertise of the management company in operating his project. Particularly such huge and giant hospitality as hotels, restaurants and vast hospitals. The management company does not usually transfer its expertise in the field of management directly to the hospitality business owner, but it manages and operates the project and the services it provides on its behalf, by the so-called management contract. According to which the managerial powers hospitality business owner will be transferred to the management company which assumes the management by making operational decisions and concluding secondary or subordinate contracts, in the light of the main and complex management contract, subject to the private law rules. Therefore the civil liability of this type of companies is originally a contractual one arising from the breach of the duties generated by the main management contract, concluded between the operator and the business owner. or by other secondary or subordinate contracts which the operator concludes to guarantee the good management of the hospitality projects. Furthermore the non-contractual tort liability of the management company may also arise, either as a liability for the personal acts of the business manager, based on the wrongful or illegal act committed towards any one including the business owner, with whom the company contracted. Or as a vicarious liability of the acts of the employees and servants, with whom the management company as a master is connected by other contracts than the management contract. Neither the Iraqi civil code regulated the maxims of this contract within the chapter of nominate contracts, nor does the Iraqi law of companies No. (21) of 1997 regulate the rules of the management company.

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Third: The Legal Studies & Reports

– Dan E. Stigall. Iraqi Civil Law: Its Sources, Substance, and Sundering. Journal of Transnational Law & Policy. Volume 16. Number 1.2006.