Contracts and obligations · Legal glossary
Automatic dissolutionIn Arabic: انفساخ العقد
Definition
Automatic dissolution ends the contract by operation of law when performance has become impossible for a reason outside the debtor’s control. The counter-obligation ends with it.
It is not rescission, which is sought for breach, and it is not hardship, which makes performance onerous rather than impossible.
How it varies across the GCC
In Saudi Arabia the impossibility may be total, partial or temporary (Civil Transactions Law, article 110). In Oman, article 172 of the Civil Transactions Law governs dissolution where performance has become impossible.
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. 110https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/655fdb42-8c96-422b-b8c4-b04f0095c94c/1
- Oman Civil Transactions Law, Royal Decree 29/2013 (text on qanoon.om), art. 172https://qanoon.om/p/2013/rd2013029/