Civil Transactions Law · Federal Decree-Law 25 of 2025
Article 224
Section One: Sources of Obligation > Chapter One: The Contract > Part Five: Effects of the Contract
English translation
If exceptional, general circumstances arise that could not have been foreseen at the time of contracting, and as a result of their occurrence, the performance of the contractual obligation becomes onerous for the debtor, threatening them with serious loss, the court may, depending on the circumstances and after balancing the interests of the parties, reduce the onerous obligation to a reasonable limit or rule for the rescission of the contract. Any agreement to the contrary shall be void.
Official translation, as published by the portal.
Official Arabic text
إذا طرأت ظروف استثنائية عامة لم يكن في الوسع توقعها وقت التعاقد، وترتب على حدوأها أن تنفيذ الالتزام التعاقدي صار مرهقًا للمدين بحيث يهدده بخسارة فادحة، جاز للمحكمة تبعًا للظروف وبعد الموازنة بين مصلحة الطرفين أن ترد الالتزام المرهق إلى الحد المعقول أو أن تحكم بفسخ العقد، ويقع باطلاً كل اتفاق يقضي خلاف ذلك.
What it means when you sign
This article covers exceptional events that make a contract much harder to perform. It applies when exceptional, general circumstances arise that could not have been foreseen when the contract was made, and as a result performing the contractual obligation becomes onerous for the debtor, threatening serious loss. In that case the court may, depending on the circumstances and after balancing both parties' interests, reduce the onerous obligation to a reasonable limit or rule that the contract is rescinded. Any agreement to the contrary is void.
When you are about to sign, this article means a fixed-price or long-term contract is not necessarily locked in if events no one could have foreseen make performance ruinous for one side. A clause saying the price stays fixed whatever happens, or that neither side may seek relief for changed circumstances, would be void to the extent it conflicts with this article. The relief belongs to the court, which may reduce the obligation or rescind the contract.
Not yet cited in a Fahm report; shown because it sits in the same chapter as one that is.
Related articles
- Article 222This article lets a party hold back performance in a two-sided contract.
- Article 223Cited in Fahm reportsThis article deals with unfair conditions in a contract of adhesion, meaning a contract whose terms one side effectively had to accept as offered.
- 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.