Civil Transactions Law (contracts dated before 1 June 2026) · Federal Law 5 of 1985
Article 892
Section 3: Contracts of work > Chapter One: Muqawala (contract to make a thing or to perform a task) > Part 4: Termination of a muqawala
This law is repealed.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
A contract of muqawala shall terminate upon the completion of the work agreed or upon the cancellation of the contract by consent or by order of the court.
Official translation, as published by the portal.
Official Arabic text
ينقضي عقد المقاولة بإنجاز العمل المتفق عليه أو بفسخ العقد رضاءً أو قضاءً.
What it means when you sign
This article says how a contract to make a thing or to perform a task ends. Such a contract terminates when the agreed work is completed, or when the contract is cancelled, either by consent of the parties or by order of the court.
When you are about to sign a contract of this kind, this article means that there are two main ways for the contract to come to an end: the work is finished, or the contract is cancelled by agreement or through the court. A clause on completion, acceptance of the work, termination, cancellation by agreement or ending the contract early may be read against it. The points to check are how the contract defines completion of the work, whether it describes how the parties can end it by agreement, and whether it says anything about cancellation through the court. Clear definitions of when the work counts as complete help show when the contract ends and when any obligations tied to completion begin.
In Fahm reports this article usually sits under: Ambiguity and gaps
Related articles
- Article 893This article deals with a cause that prevents a contract from being performed, or from being completed.
- Article 106Cited in Fahm reportsThis article says that a person who uses a right in an unlawful way is held liable for it.
- 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 266Cited in Fahm reportsThis article has two parts.
- Article 295This article is about how compensation for a harmful act is set.