Skip to content

Civil Transactions Law · Federal Decree-Law 25 of 2025

Article 235

Section One: Sources of Obligation > Chapter One: The Contract > Part Six: Dissolution of the Contract

Not yet lawyer-reviewedText from the official portal, corpus snapshot of 26 October 2026.

English translation

It may be agreed that the contract shall be considered automatically rescinded without the need for a judicial judgment upon failure to perform the obligations arising therefrom. This agreement does not exempt the parties from giving notice, unless the contracting parties have expressly agreed to waive such notice.

Official translation, as published by the portal.

Official Arabic text

يجوز الاتفاق على أن يُعتبر العقد مفسوخًا من تلقاء نفسه دون حاجة إلى حكم قضائي عند عدم الوفاء بالالتزامات الناشئة عنه، وهذا الاتفاق لا يعفي من الإعذار إلا إذا اتفق المتعاقدان صراحةً على الإعفاء منه.

What it means when you sign

The 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. The article adds that such an agreement does not remove the need to give notice, unless both parties have expressly agreed to waive notice.

For a contract about to be signed, this article is relevant to termination clauses that say the contract ends by itself on non-performance. It means that clause is allowed, but that a notice step still applies unless the contract expressly waives it. When reading such a clause, the points to look for are what failure triggers the automatic cancellation, whether the clause mentions notice at all, and whether any waiver of notice is written in clear words and applies to both parties. A clause that is silent about notice does not, on the wording of this article, remove the notice requirement by itself.

Not yet cited in a Fahm report; shown because it sits in the same chapter as one that is.

Related articles

All articles of this law