Civil Transactions Law (contracts dated before 1 June 2026) · Federal Law 5 of 1985
Article 266
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This law is repealed.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
(1) A doubt shall be resolved in favour of the obligor.
(2) Nevertheless it shall not be permissible to construe ambiguous words in contracts of adhesion in a manner detrimental to the interests of the adhering party.
Official translation, as published by the portal.
Official Arabic text
1 - يفسر الشك في مصلحة المدين. 2 - ومع ذلك لا يجوز أن يكون تفسير العبارات الغامضة في عقود الإذعان ضارًا بمصلحة الطرف المذعن.
What it means when you sign
This article has two parts. The first says that a doubt is resolved in favour of the obligor, meaning the party who owes the obligation. The second adds a limit for contracts of adhesion, which are contracts whose terms are set by one side and accepted by the other without bargaining. In those contracts, ambiguous wording may not be read in a way that harms the adhering party, meaning the one who simply accepted the terms.
When you are about to sign a contract, this article means that where a term is unclear, the doubt leans towards the party that owes the obligation, such as the one who has to pay or perform. If the contract is a standard form offered on a take-it-or-leave-it basis, an unclear clause may not be interpreted against the party who simply accepted it. The points to check are clauses that leave the amount, scope or duty uncertain, whether the contract is a standard form, and who drafted it. Unclear wording in a form contract is the typical place where this article comes into play.
In Fahm reports this article usually sits under: Ambiguity and gaps
Related articles
- Article 264This 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.
- Article 265Cited in Fahm reportsThis article sets out how a contract is interpreted.
- 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.