Civil Transactions Law · Federal Decree-Law 25 of 2025
Article 234
Section One: Sources of Obligation > Chapter One: The Contract > Part Six: Dissolution of the Contract
English translation
1. In bilateral contracts, if one of the contracting parties fails to perform their obligation upon its due date, the other contracting party may, after giving notice to the debtor, request the court to order the performance of the contract or its rescission.
2. The court may oblige the debtor to perform, or grant them a grace period if the circumstances so require. It may also refuse rescission if it is established that the debtor has averted rescission by performing their obligation, or if what the debtor has failed to perform is of minor importance in relation to the obligation as a whole.
3. In all cases, the court may award compensation where there is justification therefor.
Official translation, as published by the portal.
Official Arabic text
.1 في العقود الملزمة للجانبين، إذا لم يوف أحد المتعاقدين بالتزامه عند حلول الأجل، جاز للمتعاقد الآخر بعد إعذار المدين أن يطلب من المحكمة الحكم له بتنفيذ العقد أو فسخه.
.2 يجوز للمحكمة أن تلزم المدين بالتنفيذ أو أن تمنحه أجلاً إذا اقتضت الظروف ذلك، كما يجوز لها أن ترفض الفسخ إذا ثبت لها أن المدين توقّى الفسخ بالوفاء بالتزامه، أو إذا كان ما لم يفِ به المدين قليل الأهمية بالنسبة إلى الالتزام في جملته.
.3 في جميع الأحوال، للمحكمة أن تحكم بالتعويض إذا كان له مقتضى.
What it means when you sign
In contracts where both sides owe duties, if one party does not perform on the due date, the other party may, after formally notifying the debtor, ask the court to order performance of the contract or to cancel it. The court may order the debtor to perform, or give extra time if the circumstances call for it. It may refuse cancellation if the debtor has avoided it by performing, or if the part not performed is minor compared with the obligation as a whole. In all cases the court may award compensation where there is a basis for it.
For a contract about to be signed, this article means the path it sets out after a breach is notice first, then a request to the court, rather than simply walking away. It matters for clauses on default, grace periods, termination for breach and notice. It also shows that cancellation is not automatic: a minor shortfall may not justify it. A clause letting a party cancel for any small breach may run into this article.
In Fahm reports this article usually sits under: Ambiguity and gaps
Related articles
- Article 232Cited in Fahm reportsWhen a contract is valid and binding, neither party can take back their commitment, change the terms, or cancel the contract on their own.
- Article 233After a contract has been made, the parties can agree to cancel it by mutual consent, known as iqala.
- Article 235The parties may agree that the contract will be treated as cancelled automatically, without a court judgment, if the obligations arising from it are not performed.
- 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.