Guide
What the Civil Transactions Law changed in your contracts
The first comprehensive codification of contract law in the Kingdom. What it means for existing contracts, and what to review now.
[Placeholder content for review] The Civil Transactions Law brought the rules of obligations and contracts into a single text, after decades of reliance on judicial precedent.
What changed in practice
Commercial contracts now have a written reference for interpretation, damages, liquidated damages and force majeure. This narrows the variation between court circuits.
- Interpretation: ambiguous wording is read in favour of the obligor
- Liquidated damages: the court may reduce an excessive amount
- Force majeure: impossibility must be shown, not mere difficulty
What to do now
Review your current contracts, especially long-term and construction contracts. This article is general information and not legal advice.