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Contracts and obligations · Legal glossary

CompensationIn Arabic: التعويض

Definition

The amount awarded to make good the harm suffered by the injured party, usually covering both the loss incurred and the gain missed. The court assesses it under the liability rules of each state's civil law, unless the parties have agreed the amount in advance.

How it varies across the GCC

Courts assess damages under each civil code.

The rules that apply to a specific matter depend on the state, any free zone involved and the current text of the law, so check the official source before relying on them.

Related template

Supply agreement template

Delay compensation in the supply agreement is an agreed sum, with the court’s power to adjust it where that power was verified. It does not state an article of the new UAE law for that sum.

Open the supply agreement template

A single sale of goods uses the sale agreement’s default clause. It is not a framework supply contract.

Open the sale agreement template

Related terms

  • Penalty clause / liquidated damagesالشرط الجزائي
  • Tort liabilityالمسؤولية التقصيرية
  • Force majeureالقوة القاهرة
All glossary terms

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General information, not legal advice.

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