Civil Transactions Law · Federal Decree-Law 25 of 2025
Article 257
Section One: Sources of Obligation > Chapter Three: Harmful Act > Part One: General Provisions
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
Related articles
- Article 256This article sets out how compensation for a harmful act is worked out.
- Article 258This article sets time limits for bringing a compensation claim arising from a harmful act.
- 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.