Civil Transactions Law (contracts dated before 1 June 2026) · Federal Law 5 of 1985
Article 264
Section 4: The construction of contracts
This law is repealed. The article applies to contracts dated before 1 June 2026; later contracts fall under the 2025 Civil Transactions Law.
English translation
Known custom as between merchants shall have the effect of (express) conditions made between them.
Official translation, as published by the portal.
Official Arabic text
المعروف بين التجار كالمشروط بينهم.
What it means when you sign
This article is a single short rule: what is known and accepted as the custom between merchants is treated as if it had been stated as a condition between them. In other words, an established practice among traders can have the same effect as a term that the parties wrote down.
When you are about to sign a contract between merchants, this article means that a contract may be read as carrying established trade practice even where the practice is not spelled out in the text. A contract that is silent on a point, such as how deliveries are usually made or how accounts are usually settled in that trade, may be read together with the custom known between the parties. A clause that says the written contract is the whole agreement may therefore be worth reading against this rule. The points to check are whether the contract refers to custom or usage, whether it excludes them, and whether the practices you expect are written down.
Not yet cited in a Fahm report; shown because it sits in the same chapter as one that is.
Related articles
- Article 265Cited in Fahm reportsThis article sets out how a contract is interpreted.
- Article 266Cited in Fahm reportsThis article has two parts.
- Article 106Cited in Fahm reportsThis article says that a person who uses a right in an unlawful way is held liable for it.
- Article 295This article is about how compensation for a harmful act is set.
- Article 296Cited in Fahm reportsThis article makes void any condition that aims to exempt a person from liability arising from a harmful act.
- Article 297This article explains the relationship between civil liability and criminal liability.