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Civil Transactions Law · Federal Decree-Law 25 of 2025

Article 257

Section One: Sources of Obligation > Chapter Three: Harmful Act > Part One: General Provisions

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

English translation

Any condition providing for exemption or mitigation of liability arising from a harmful act shall be void. However, it shall be permissible to stipulate an aggravation of this liability, unless the law provides otherwise.

Official translation, as published by the portal.

Official Arabic text

يقع باطلاً كل شرط يقضي بالإعفاء أو التخفيف من المسؤولية المترتبة على الفعل الضار، ومع ذلك يجوز اشتراط تشديد هذه المسؤولية، ما لم ينص القانون على غير ذلك.

What it means when you sign

Any condition that excludes or reduces liability arising from a harmful act is void. The article does allow the opposite: a condition that makes this liability heavier is permitted, unless the law provides otherwise.

For a contract about to be signed, this article is relevant to clauses that exclude liability, limit it, or say a party is not responsible for harm. A clause that tries to remove or lower a party's liability for harm caused by its act may run into this article, because the article treats such conditions as void. Clauses that increase a party's liability, for example by making it answer for more than it otherwise would, are allowed unless the law says otherwise. When reading an exemption or limitation clause, it helps to note what kind of liability it addresses and which party it favours, since the article draws a clear line between lowering liability and raising it.

In Fahm reports this article usually sits under: Risky commercial terms

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