To mitigate the risks of disputes arising from the terms of contractual agreements governed by Saudi law, we provide comprehensive client support at all stages of contractual negotiation and drafting and risk-assessment.
Since Saudi law is derived from the Qur’an, Sunnah, and Sharia (statements of established scholars), which allow for many different – often conflicting – schools of thought on a range of commercial law matters, and since the judiciary is afforded a wide discretion in its interpretation of Sharia, there is often a significant degree of uncertainty on the enforceability of contractually-agreed provisions.
Our Sharia experts work closely with our internationally-qualified, bilingual lawyers in assessing such dispute resolution cases. Whilst parties to a contract are generally free to agree to the terms of their choosing, this is subject to ensuring that these terms do not conflict with established Sharia principles, which could render either the provision itself unenforceable or the entire contract void. Provisions that often require careful scrutiny include those related to the allocation of risk, including indemnities, warranties, and limitations of liability, as well as exit provisions and other obligations triggered by a future turn of events.
