Skip to content

Civil Transactions Law · Federal Decree-Law 25 of 2025

Article 339

Section Two: Effects of the Obligation > Chapter Two: Means of Performance > Part Three: Compulsory Performance

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

English translation

If the compensation is not determined in the law or in the contract, the court shall assess it in an amount equivalent to the damage actually sustained.

Official translation, as published by the portal.

Official Arabic text

إذا لم يكن التعويض مقدّرًا في القانون أو في العقد، قدّرته المحكمة بما يساوي الضرر الواقع فعلاً.

What it means when you sign

If the amount of compensation is not fixed by law or by the contract, the court assesses it at an amount equal to the damage actually suffered.

This article is a fallback rule. It applies when nobody has set the amount of compensation in advance, whether the law or the contract. In that case the measure is the damage that actually occurred, not an estimate of possible loss.

For a contract about to be signed, this article means the contract's own wording on compensation matters. A clause that fixes an amount of compensation, or a way of working it out, takes the place of this fallback measure in the sense that the article applies only when the amount is not already set. A contract that is silent on compensation, or that uses vague phrases such as reasonable damages or full loss, leaves the amount to be assessed on the basis of actual damage. Clauses on liability, damages and penalties are where this article matters most.

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

Related articles

All articles of this law