Article 106

What it means when you sign

This article says that a person who uses a right in an unlawful way is held liable for it. It then lists when the use of a right is unlawful: where there is an intention to infringe on someone else; where the interests sought are contrary to the rules of the Islamic Shari'ah, the law, public order or morals; where the interests sought are out of proportion to the harm others will suffer; and where the use goes beyond the bounds of usage and custom.

When you are about to sign a contract, this article means that having a right in the contract does not settle how it can be used. A clause that lets one party exercise a right, such as to terminate, to charge, to withhold or to enforce, may run into this article if using it would be aimed at harming the other side, would cause harm far greater than the benefit gained, or would go beyond what is usual in dealings of that kind. Clauses giving one party wide discretion are the ones to read with these four tests in mind.