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Federal Decree Law Concerning the Issuance of the Civil Transactions Law

The last update on this law was listed on 27 Sep 2020

Related legislations

Issued Date

15 Dec 1985

Effective Date

29 Oct 1986

Official Gazette Date

21 Mar 1985

Official Gazette No

158

Legislation State

Active

Disclaimer: Every effort has been made to produce an accurate and complete English version of this website/ legislation. However, for the purpose of their interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text will prevail

Introductory Chapter: General Provisions

Part 2: The abuse of rights :Article (106)

1- A person shall be held liable for an unlawful exercise of his rights.
2- The exercise of a right shall be unlawful:
a- if there is an intentional infringement (of another's rights);
b- if the interests which such exercise of right is designed to bring about are contrary to the rules of the Islamic Shari'ah, the law, public order, or morals;
c- if the interests desired are disproportionate to the harm that will be suffered by others; or
d- if it exceeds the bounds of usage and custom.

Book One: Personal obligations and rights

b- Deception and cheating : Article (185)

Misrepresentation is when one of the two contracting parties deceives the other by means of trickery of word or deed which leads the other to consent to what he would not otherwise have consented to.

b- The purpose of the contract: Article (207)

1- The reason is the direct purpose aimed at by the contract.
2- The reason must be existent, valid, and permitted, and not contrary to public order or morals.
 
 

b- The void contract Article (210)

1- A void contract is one which is unlawful in its essence and form, lacking the elements of a contract or defective in its subject matter or purpose or form as laid down by law for the making of a contract, and such contract shall be of no effect and shall not be capable of being rectified by consent.
2- Any person having an interest may rely on the voidness of the contract and a judge may so rule of his own motion.
3- No claim (for a declaration) that a contract is void shall be heard after the expiry of 15 years from the date the contract was made, but any person having an interest may raise the defence of the voidness of the contract at any time.

b-The non-binding contract: Article (218)

1- A contract shall not be binding on one or both of the contracting parties despite its validity and effectiveness if there is a condition that such party may cancel it without mutual consent or an order of the court.
2- Each party may act unilaterally in cancelling it if by its nature the contract is not binding upon him or if he has made it a condition in his own favour that he has the option to cancel.
 
 

b- The person to whom satisfaction is made : Article (345)

Discharge may be performed to the obligee or his representative, and any person who gives a receipt issued by the obligee shall be regarded as a proper recipient of the discharge unless it is agreed that the discharge shall be performed towards the obligee in person.

b- Set-off : Article (368)

Set-off is the satisfaction of an obligation of the obligee by an obligation to be performed by the obligor.

Book Two: Contracts

b- Obligations of the purchaser : 1- Payment of the price and taking delivery of the goods : Article (556)

The purchaser must pay the price when the contract is initially made and before the delivery of the property and before a claim is made for it, unless a contrary agreement has been made.

b- Maintenance of the thing hired : Article (767)

1- The lessor shall be obliged to repair any defect in the thing hired which has an effect on the deriving of the intended enjoyment, and if he does not do so it shall be permissible for the lessee to cancel the contract or to obtain leave from the judge authorising him to make the repair and to have recourse against the lessor for his expenditure up to a generally acceptable level.
2- If the defect which the lessor is by custom obliged to make good is a minor matter, or an urgent matter which does not admit of delay and the lessee requests him to repair it and he makes delay or it is impossible to contact him, it shall be permissible for the lessee to repair it and to deduct his expense up to a generally acceptable level from the rent due.
 

b- Lending and (sub) hiring the thing hired : Article (786)

The lessee may lend the thing hired or may allow another person to use and enjoy the whole or part of it without consideration to the extent that such use does not differ from normal use.

b- The creation of a muzara'a : Article (810)

The following conditions must be satisfied in order for a muzara'a to be valid:
(a) the land must be ascertained, and suitable for agriculture;
(b) the type of crop or nature of seed must be specified, or the option must be left to the farmer (the non-owning party) to cultivate what he wishes; and
(c) the share of each of the parties in the produce must be determined as between them.

 

Article (891)

A sub-contractor shall have no claim against the employer for anything due to him from the first contractor unless he has made an assignment to him against the employer.

Book Three: Original Rights in Rem

b- Settlement of debts of the estate: Article (1235)

1- After the expiration of the time limit for hearing disputes as to the inventory, the executor of the estate shall, after obtaining the leave of the court, pay the debts in respect of which there is no dispute.
2- With regard to disputed debts, they shall be settled after a final determination as to the validity thereof.

b- Accretion by act of persons: Article (1267)

Any building, plant or work standing upon land shall be deemed to have been put there by the owner of the land at his own expense and to belong to him, unless there is evidence to the contrary.

b- Possession of moveables: Article (1325)

1- No claim of ownership shall be heard against a person in possession of a moveable or a right in rem over a moveable or a bearer bill if his possession is based on a valid cause and he is acting in good faith.
2- Possession shall of itself be indicative evidence of ownership unless the contrary is proved.

Book Four: Securities Over Property

Article (1519)

1- A priority right in respect of a tenancy debt shall attach to chattels and produce which are on the property leased notwithstanding that they may be owned by a sub-tenant, if the landlord has not permitted the first tenant to lease the property to another person.
2- If the lessor has permitted the first tenant to sublet the property leased to another person, the priority right shall only apply to money due to the first tenant by the subtenant.
 
 

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