Contracts and obligations · Legal glossary
Formal notice of defaultIn Arabic: الإعذار
Definition
A formal notice of default calls on the debtor, in the form the law requires, to perform. It is usually a precondition to rescission, specific performance or damages.
How it varies across the GCC
In Saudi Arabia it may be given by any method the parties agreed, or by any method the law provides for service, and filing the claim itself counts (Civil Transactions Law, article 177). In Bahrain it is a notice, a registered letter or an official paper (article 221). In the UAE it is commonly a notarial legal notice. Federal Decree-Law No. 20 of 2022 defines a “document” to include a notice and a warning. Saudi law does not call this step an إنذار عدلي.
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.
Sources
Official texts for the points on this page. General information, not legal advice. An article number is cited only where it was verified.
- Saudi Civil Transactions Law, art. 177https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/655fdb42-8c96-422b-b8c4-b04f0095c94c/1
- Bahrain Civil Code, Decree-Law No. 19 of 2001, art. 221https://www.lloc.gov.bh/Legislation/HTM/L1901
- UAE Federal Decree-Law No. 20 of 2022, art. 1https://uaelegislation.gov.ae/en/legislations/1563