Civil Transactions Law · Federal Decree-Law 25 of 2025
Article 706
Section Two: Contracts of Usufruct > Chapter One: Lease Contract > Part Three: Effects of the Lease Contract > First: Obligations of the Lessor / 1. Delivery of the Leased Property
English translation
1. If the leased property perishes completely during the lease, the contract shall be rescinded ipso facto.
2. If the leased property perishes partially or becomes unfit for the usufruct for which it was leased, or if such enjoyment is substantially diminished and the lessee had no part therein, the lessee may, if the lessor does not, within a reasonable time, restore the property to its original condition, request from the court, according to the circumstances, either a reduction of rent or the rescission of the lease, without prejudice to their right to perform the lessor's obligation themselves in accordance with the provisions of Article (705) of this Law.
3. The lessee, in the two preceding cases, may not claim compensation if the perishing or damage is due to a cause for which the lessor is not responsible.
Official translation, as published by the portal.
Official Arabic text
.1 إذا هلكت العين المؤجرة أثناء الإيجار هلاكًا كليًا، انفسخ العقد من تلقاء ذاته.
.2 إذا كان هلاك العين جزئيًا أو إذا أصبحت في حالة لا تصلح معها للانتفاع الذي أُجرت من أجله، أو نقص هذا الانتفاع نقصًا كبيرًا ولم يكن للمستأجر يد في ذلك جاز له إذا لم يقم المؤجر في ميعاد مناسب بإعادة العين إلى الحالة التي كانت عليها أن يطلب من المحكمة تبعًا للظروف، إما إنقاص الأجرة، أو فسخ الإيجار، دون إخلال بما له من حق في أن يقوم بنفسه بتنفيذ التزام المؤجر وفقًا لأحكام المادة (705) من هذا القانون.
.3 لا يجوز للمستأجر في الحالتين السابقتين أن يطلب تعويضًا إذا كان الهلاك أو التلف يرجع إلى سبب لا يد للمؤجر فيه.
What it means when you sign
This article covers what happens when the leased property is lost or damaged during the lease. If it is destroyed completely, the contract is cancelled automatically. If it is partly destroyed, or becomes unfit for the use it was rented for, or the enjoyment of it is substantially reduced and the tenant had no part in that, the tenant may, if the landlord does not restore the property within a reasonable time, ask the court for either a reduction in rent or cancellation of the lease. The tenant may also carry out the landlord's repair duty under the maintenance article. In both cases the tenant cannot claim compensation if the loss or damage is due to a cause the landlord is not responsible for.
For a contract about to be signed, this article is relevant to clauses on damage, loss, rent abatement and termination. A clause that removes the tenant's right to a rent reduction or cancellation in these situations may run into this article.
In Fahm reports this article usually sits under: One-sided mechanisms
Related articles
- 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.
- Article 29Cited in Fahm reportsThis article sets a limit on applying foreign law.
- Article 30This article says what happens when a foreign law applies but cannot be established.