Civil Transactions Law · Federal Decree-Law 25 of 2025
Article 120
Section One: Sources of Obligation > Chapter One: The Contract > Part Two: Interpretation of the Contract
English translation
1. The governing principle of a contract is the consent of the contracting parties and what they have committed to in the contract.
2. Any doubt shall be interpreted in favour of the debtor. However, the interpretation of ambiguous terms in contracts of adhesion shall not be interpreted in a manner prejudicial to the adhering party.
3. In contracts, regard shall be had to intentions and meanings rather than to words and forms.
4. Words shall be construed according to their literal meaning; and a term shall not be construed metaphorically unless its literal meaning cannot be applied.
5. No implication shall prevail over an express statement.
6. Giving effect to contractual wording takes precedence over disregarding it; however, where giving effect thereto is impossible, it shall be disregarded.
7. Reference to part of an indivisible shall be deemed reference to the whole thereof.
8. An absolute term shall apply in its absolute sense unless there is evidence, whether textual or inferential, requiring its restriction.
9. A description of an existing object is deemed superfluous, whereas a description of an absent object is binding.
10. What is customary among merchants shall be deemed a condition agreed upon between them.
11. A contract shall be interpreted in a manner that achieves justice and good faith between the parties.
12. Obligations shall be construed according to the surrounding factual circumstances of the contract at the time of its conclusion.
13. Ambiguity or inconsistency shall be construed in favour of the party bearing the burden of the obligation or the weaker party to the contract.
Official translation, as published by the portal.
Official Arabic text
.1 الأصل في العقد رضا المتعاقدين وما التزماه في التعاقد.
.2 يُفسَّر الشك لمصلحة المدين، ومع ذلك لا يجوز أن يكون تفسير العبارات الغامضة في عقود الإذعان تفسيرًا ضارًا بمصلحة الطرف المذعن.
.3 العبرة في العقود للمقاصد والمعاني لا للألفاظ والمباني.
.4 الأصل في الكلام الحقيقة، فلا يجوز حمل اللفظ على المجاز إلا إذا تعذر حمله على معناه الحقيقي.
.5 لا عبرة بالدلالة في مقابلة التصريح.
.6 إعمال الكلام أولى من إهماله، لكن إذا تعذر إعمال الكلام يهمل.
.7 ذكر بعض ما لا يتجزأ كذكره كله.
.8 المطلق يجري على إطلاقه إذا لم يقم دليل التقييد نصًا أو دلالةً.
.9 الوصف في الحاضر لغو وفي الغائب معتبر.
.10المعروف بين التُجّار كالمشروط بينهم.
.11يُفسَّر العقد بما يحقق العدالة وحسن النية بين الأطراف.
.12تُفسَّر الالتزامات بحسب الظروف الواقعية المحيطة بالعقد وقت إبرامه.
.13يُفسَّر الغموض أو التعارض لصالح الطرف الذي يحمل عبء الالتزام أو الطرف الأضعف في العقد.
What it means when you sign
This article lists thirteen rules for reading a contract. In summary: the contract rests on the parties' consent and what they committed to. Doubt is read in favour of the debtor, but unclear terms in a contract of adhesion may not be read against the adhering party. Intentions and meanings count more than words and forms. Words take their literal meaning unless that cannot apply. An express statement beats an implication. Giving effect to wording is preferred to ignoring it. An unrestricted term stays unrestricted unless there is evidence for a restriction. Practice among merchants is treated as agreed between them. The contract is read to achieve justice and good faith, and in light of the circumstances when it was made. Ambiguity or conflict is read in favour of the party carrying the obligation or the weaker party.
When you are about to sign, this article means ambiguous or conflicting wording may be resolved by these rules, not only by the words alone. A contract that is clear is read as written. A contract with gaps or contradictions may be read in favour of the party with the burden of the obligation.
In Fahm reports this article usually sits under: Ambiguity and gaps
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- Article 18This article says which country's law governs property.
- Article 19Cited in Fahm reportsThis article says which country's law governs a contract's obligations, both its form and its substance.
- Article 20This article says which country's law governs obligations that do not come from a contract, such as those arising from an act that causes harm.
- Article 28This article deals with what happens once a foreign law has been found to apply.
- Article 29Cited in Fahm reportsThis article sets a limit on applying foreign law.