Contracts and obligations · Legal glossary
Mutual rescission (iqala)In Arabic: الإقالة
Definition
Mutual rescission (iqala) is the parties’ agreement, by their own consent, to end the contract in whole or in part. The contract’s own terms apply to that agreement. Saudi and wider Gulf usage also calls it taqayul.
How it varies across the GCC
Article 105 of the Saudi Civil Transactions Law governs it. It is a consensual route, not a judgment sought for breach, and not the automatic dissolution that follows impossibility.
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. 105https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/655fdb42-8c96-422b-b8c4-b04f0095c94c/1