Instructions:

Read the case study below, then answer the questions that follow.
As Hadi was unsuccessful in politics, he decided to turn to trading. So, he purchased a shop in
Beirut to sell home electronics. After 15 days from buying the shop, he registered himself at the
Commercial Register. In order to expand his business operations, Hadi took a loan of $150,000
from BLOM Bank SAL with an interest of 9% and mortgaged (‫ )رھن‬his shop as a guarantee for
this loan. In order to promote his commodities, he contracted with “BROLOCY” a marketing
agency for advertising his products on the agency’s publications and press periodically.
Two months later, he purchased a real estate in Saida to build a family house. After six months,
he visited the showroom of Ibrahim, a merchant in Tripoli, and purchased Antique appliances
for his home. They agreed in the contract that the goods will be delivered to Saida within ten
days from the agreement.
But Ibrahim did not deliver the Antique home appliances on time as agreed in the contract, so
Hadi decided to file a lawsuit against him in front of the court.
Question Number One: (25 marks)
This case includes different acts (commercial, civil or mixed). Indicate the type of each act in the
below table. Justify your answer.

Type of Act
Act (Commercial, civil, or Justification
mixed)
Hadi purchased a shop in Beirut to sell home electronics.
The act of BLOM Bank SAL.
Hadi took a loan of $150,000 from BLOM Bank SAL with an
interest of 9% to expand )‫ (رھن‬his business operations and
mortgaged his shop as a guarantee for this loan.
Hadi purchased a real estate in Saida to build a personal
house to live in with his family.
Hadi contracted with the marketing agency “BROLOCY” for
the purpose of advertising his products on the agency’s
publications and press periodically.
The act of marketing agency “BROLOCY”.
Question Number Two: (25 marks)
1. a. Explain whether the interest rate 9% that is applied on the mortgage can be changed
or not. (10 marks)
2. b. Specify which court has the jurisdiction to decide on the lawsuit raised by Hadi
against Ibrahim. (15 marks)
Question Number Three: (25 marks)
A dispute arose between Hadi and “BROLOCY” concerning the place and duration of the
advertisement. So “BROLOCY”’s administration expressed its intention to cancel the agreement
on the basis (‫ )بحجة‬of not having a written contract. Accordingly, Hadi presented his commercial
books to the court as proof, accompanied with the postal transfers that were sent to the
newspaper on a weekly basis. However, “BROLOCY”’s administration stated that the
commercial books of merchants could not be used as a way of evidence since they were written
and organized by Hadi.
Explain whether Hadi can use his Commercial Books as evidence in court.
Question Number Four: (25 marks)
Hadi realized that he is unsuccessful in trade, so he decided to stop trading, but did not register
the termination of his business operations at the Commercial Register. After one year, he
received a notice from the Tax Administration to pay the due taxes of last year. Hadi replied
that he is no longer considered a merchant under the Lebanese Law.
Is Hadi obliged to register the closure of his shop in the Commercial Register? What are the
legal consequences of not registering such closure?