Civil Transactions Law · Federal Decree-Law 25 of 2025
Article 122
Section One: Sources of Obligation > Chapter One: The Contract > Part Three: Negotiations and the Obligation of Disclosure
English translation
1. A party to negotiations or a contract who has knowledge of information that is of decisive importance to the consent of the other party shall inform them of it whenever the other party's ignorance of the information is presumed or they have placed their trust in the other contracting party. Information that has a direct and necessary connection to the content of the contract or the status of the parties shall be considered essential and decisive information for the consent of the parties.
2. Disclosure of essential and decisive information is an obligation that falls on both parties to the negotiations or contract, under which each party is obliged to exercise due care to provide the other party with the information and data related to the negotiations or the contract intended to be concluded, and the practical circumstances and facts of the contractual process.
3. The party claiming that information that should have been disclosed to them was concealed shall prove it, and it is incumbent on the other party to prove that they informed them of it.
4. The parties may not agree to limit the obligation of disclosure of essential and decisive information, or to be exempted from it or exclude it. Any condition providing otherwise shall be void, and the aggrieved party may request the annulment of the contract as a result of the other party's breach of this obligation.
Official translation, as published by the portal.
Official Arabic text
.1 يجب على من يعلم من أطراف المفاوضات أو العقود معلومة لها أهمية حاسمة على رضا الطرف الآخر أن يُعلمه بها متى كان جهل الأخير بالمعلومة مفترضًا أو كان قد وضع ثقته بالمتعاقد معه، وتُعتبر من المعلومات الجوهرية والحاسمة في رضا الأطراف تلك التي لها صلة مباشرة وضرورية بمضمون العقد أو صفة الأطراف.
.2 الإفصاح عن المعلومات الجوهرية والحاسمة هو التزام يقع على طرفي المفاوضات أو التعاقد، يلتزم بموجبه كل طرف ببذل العناية اللازمة لتزويد الطرف الآخر بالمعلومات والبيانات المتعلقة بالمفاوضات أو العقد المراد إبرامه وظروف وملابسات العملية التعاقدية.
.3 على من يدعي من الأطراف إخفاء معلومة وجب إبداؤها له إثبات ذلك، ويقع على الطرف الآخر إثبات إعلامه بها.
.4 لا يجوز للأطراف الاتفاق على الحد من الالتزام بالإفصاح عن المعلومات الجوهرية والحاسمة أو الإعفاء منه أو استبعاده، ويقع باطلاً كل شرط يقضي بغير ذلك، وللطرف المضرور طلب إبطال العقد نتيجة إخلال الطرف الآخر بهذا الالتزام.
What it means when you sign
This article sets a duty to disclose information. A party to negotiations or to a contract who knows information of decisive importance to the other side's consent must tell them, when the other side is presumed not to know it or has placed trust in them. Information with a direct and necessary link to the content of the contract or to the status of the parties counts as essential. Both sides share this duty and must take due care to supply the data related to the contract and its practical circumstances. A party who claims information was hidden must prove it, and the other must prove that they disclosed it.
The parties may not agree to limit, waive or exclude this duty. Any condition saying otherwise is void, and the harmed party may ask to have the contract annulled.
When you are about to sign, a clause that disclaims reliance or excludes disclosure may run into this article.
In Fahm reports this article usually sits under: Risky commercial terms
Related articles
- Article 121This article sets rules for the period before a contract is signed.
- Article 123This article covers confidential information obtained during negotiations or under a contract.
- 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.