Federal Decree-Law 25 of 2025
Civil Transactions Law
The articles of this instrument that Fahm cites in contract reports, with their neighbours in the same chapter.
In force from 1 June 2026
Text version in force from 1 June 2026
Preliminary Section: General Provisions > Chapter One: Provisions on the Application and Temporal and Spatial Scope of the Law > Part Three: Spatial Application of the Law
- 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.
Preliminary Section: General Provisions > Chapter Five: The Right > Part One: Scope of Use of a Right
Section One: Sources of Obligation > Chapter One: The Contract > Part Two: Interpretation of the Contract
Section One: Sources of Obligation > Chapter One: The Contract > Part Three: Negotiations and the Obligation of Disclosure
Section One: Sources of Obligation > Chapter One: The Contract > Part Four: Pillars, Validity, Options, and Types of a Contract
- Article 127This article separates an offer from an invitation to contract.
- Article 128Cited in Fahm reportsThis article covers silence in response to an offer.
- Article 129This article covers how long an offer stays open and when it lapses.
- Article 137This article covers earnest money, meaning a sum paid when a contract is made.
- Article 138Cited in Fahm reportsThis article defines a framework agreement.
- Article 171Cited in Fahm reportsThis article says when staying silent counts as deception.
- Article 172This article gives a remedy for deception combined with unfairness.
Section One: Sources of Obligation > Chapter One: The Contract > Part Five: Effects of the Contract
- Article 222This article lets a party hold back performance in a two-sided contract.
- Article 223Cited in Fahm reportsThis article deals with unfair conditions in a contract of adhesion, meaning a contract whose terms one side effectively had to accept as offered.
- Article 224This article covers exceptional events that make a contract much harder to perform.
Section One: Sources of Obligation > Chapter One: The Contract > Part Six: Dissolution of the Contract
- Article 232Cited in Fahm reportsWhen a contract is valid and binding, neither party can take back their commitment, change the terms, or cancel the contract on their own.
- Article 233After a contract has been made, the parties can agree to cancel it by mutual consent, known as iqala.
- Article 234Cited in Fahm reportsIn contracts where both sides owe duties, if one party does not perform on the due date, the other party may, after formally notifying the debtor, ask the court to order performance of the contract or to cancel it.
- Article 235The 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.
Section One: Sources of Obligation > Chapter Three: Harmful Act > Part One: General Provisions
- Article 256This article sets out how compensation for a harmful act is worked out.
- Article 257Cited in Fahm reportsAny condition that excludes or reduces liability arising from a harmful act is void.
- Article 258This article sets time limits for bringing a compensation claim arising from a harmful act.
Section Two: Effects of the Obligation > Chapter Two: Means of Performance > Part Three: Compulsory Performance
- Article 338Before a creditor can treat a debtor as late, formal notice to the debtor is normally needed.
- Article 339Cited in Fahm reportsIf 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.
- Article 340Cited in Fahm reportsThis article deals with compensation that the parties agree in advance, in the contract or in a later agreement, subject to the provisions of the law.
Section Two: Effects of the Obligation > Chapter Five: Multiplicity of Parties to the Obligation > Part One: Solidarity
- Article 389This article deals with what happens when a creditor settles with one of several debtors who are jointly and severally liable for the same debt.
- Article 390Cited in Fahm reportsThis article covers how certain acts by one of several jointly and severally liable debtors affect the others.
- Article 391This article covers the effect of a court judgment on jointly and severally liable debtors.
Section Two: Effects of the Obligation > Chapter Five: Multiplicity of Parties to the Obligation > Part Four: Transfer of the Obligation
Section Two: Effects of the Obligation > Chapter Six: Extinction of the Obligation > Part Three: Barring of a Claim by the Lapse of Time
Section Two: Contracts of Usufruct > Chapter One: Lease Contract > Part Two: Elements of the Lease Contract > First: Lease Term
Section Two: Contracts of Usufruct > Chapter One: Lease Contract > Part Two: Elements of the Lease Contract
- Article 692Cited in Fahm reportsThis article requires that the lease term be specified.
- Article 693If a lease expires and the tenant stays on and keeps using the property with the landlord's knowledge and without any objection from the landlord, the lease is treated as renewed on its original terms and for a similar term.
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
- Article 705Cited in Fahm reportsThis article sets out the landlord's duty to maintain the leased property so that it stays fit for the use intended, and to carry out all necessary repairs during the lease term in line with custom, unless otherwise agreed.
- Article 706Cited in Fahm reportsThis article covers what happens when the leased property is lost or damaged during the lease.
- Article 722This article sets out when the tenant must pay the rent.
- Article 723Cited in Fahm reportsThis article gives the landlord a right over movable property found in the leased premises, as security for rights arising under the lease.
- Article 724This article covers what the tenant must do when the lease ends.
- Article 725Cited in Fahm reportsThis article deals with improvements the tenant makes to the leased property, such as construction, planting or other work that increases its value.
- Article 726This article deals with a rent increase asked for after the lease term has ended.
- Article 728This article deals with a lease of property in which a factory or a shop has been set up.
- Article 729Cited in Fahm reportsThis article sets rules on assigning a lease or subleasing the property.
Section Two: Contracts of Usufruct > Chapter One: Lease Contract > Part Four: Termination and Rescission of the Lease Contract
- Article 730A lease ends when the period fixed in the contract expires.
- Article 731Cited in Fahm reportsIf a lease expires and the tenant keeps enjoying the property with the landlord's knowledge and without objection, the lease is treated as renewed on its original terms for one year, unless the original lease term was shorter than that.
- Article 732Cited in Fahm reportsThis article covers what happens when the landlord tells the tenant to leave and the tenant stays on after the lease has expired.
- Article 733A lease does not end when the landlord dies, and it does not end when the tenant dies.
Section Three: Employment Contracts > Chapter One: Muqawala Contract > Part Two: Effects of Muqawala ContractFirst: Obligations of the Contractor
- Article 817In a muqawala contract, where a contractor carries out work for an employer, this article says who supplies the additional machinery and tools needed to finish the work.
- Article 818Cited in Fahm reportsThis article sets out how the contractor must carry out the work and what the employer may do if it goes wrong.
- Article 819The contractor is liable for any damage or loss that results from their own act or workmanship, whether it arises from their transgression or negligence or from some other cause.
- Article 828This article deals with a contract priced on a bill of quantities (BOQ) at unit prices, where the work turns out to need more than was estimated.
- Article 829Cited in Fahm reportsThis article covers a contractor who agrees to do work from an agreed design for a lump-sum price.
- Article 830This article answers what happens when a contract for work does not state the price for the work.