Civil Transactions Law · Federal Decree-Law 25 of 2025
Article 119
Section One: Sources of Obligation > Chapter One: The Contract > Part Two: Interpretation of the Contract
English translation
1. If the wording of a contract is clear, one may not be departed from it by way of interpretation to ascertain the common intention of the contracting parties.
2. If there is a room for interpreting a contract, the common intention of the contracting parties shall be sought, without being confined to the literal meaning of the words, guidance shall be drawn from the nature of the transaction and from the honesty and trust that should prevail between the contracting parties in accordance with the custom prevailing in transactions.
Official translation, as published by the portal.
Official Arabic text
.1 إذا كانت عبارة العقد واضحة، فلا يجوز العدول عنها عن طريق تفسيرها للتعرف على إرادة المتعاقدين.
.2 إذا كان هناك محل لتفسير العقد، فيجب البحث عن النية المشتركة للمتعاقدين دون التقيد الحرفي بمعنى الألفاظ ويُستهدى في ذلك بطبيعة التعامل وبما ينبغي أن يتوفر من أمانة وثقة بين المتعاقدين وفقًا للعرف الجاري في المعاملات.
What it means when you sign
This article covers how a contract is interpreted. If the wording of the contract is clear, it may not be set aside through interpretation in order to look for what the parties really intended. If the wording leaves room for interpretation, the common intention of the parties is to be sought, without sticking strictly to the literal meaning of the words. Guidance is taken from the nature of the transaction and from the honesty and trust that should exist between the parties, according to the custom prevailing in dealings.
When you are about to sign, this article means that clear wording carries weight: what the contract plainly says is what is applied. A clause that is clear but unfavourable cannot easily be explained away later by pointing to a different intention. It also means that vague or unclear wording opens the door to interpretation by common intention, the nature of the deal and custom. Clear drafting therefore matters, especially for payment, scope and termination clauses.
In Fahm reports this article usually sits under: Hidden wording
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