Force Majeure
Synonyms: Act of God، Vis Major، Unforeseen Event
Last updated: 2026-05-06
Short Definition
Exceptional events beyond control of parties preventing contract execution like natural disasters, temporarily exempting from legal liability.
Overview
Legal Basis
Force majeure is regulated by the Civil Transactions Law issued by Royal Decree No. (M/191) of 1444 AH in articles related to obligation expiration due to performance impossibility. Islamic jurisprudence and Saudi judicial precedents define application criteria. The COVID-19 crisis was a practical test, with exceptional Supreme Court decisions issued regarding it.
Practical Example
A restaurant owner in Riyadh pays SAR 120,000 annually (10,000 monthly). During COVID-19 pandemic, restaurants were forcibly closed for 4 months by government decision. Rent during closure: SAR 40,000 (net loss). Restaurant owner contacted lessor, invoked force majeure. Possible solutions: 1) full exemption from 4-month rent (excessive). 2) 50% reduction (= SAR 20,000 discount). 3) rent postponement to next year without interest. They agreed on option 2 + postponing remaining 50% over 6 months. Documented the agreement as amendment in Ejar. Both parties mitigated damage, and rental relationship continued. Had lessor insisted on full payment, lessee could have resorted to court invoking force majeure (high success probability based on precedents).
Common Mistakes
- ✗Claiming force majeure for personal problems (job loss, divorce) — these aren't force majeure in legal sense.
- ✗Stopping payment without prior agreement with lessor — even if actual force majeure, communication and agreement essential.
- ✗Failing to document circumstance with evidence (government decisions, reports) — difficult to prove judicially without documentation.
- ✗Assuming pandemic completely cancels contract — usually postpones or reduces, doesn't cancel unless use becomes completely impossible.
- ✗Neglecting to add 'force majeure' clause in new contracts — facilitates resolution if future circumstances arise.
International Differences
In the UAE, force majeure is recognized and applied flexibly. In Turkey, 'Mücbir Sebep' is a fundamental concept in obligations law. In French and Egyptian law (influenced by French civil law), force majeure is precisely defined. In Common Law (UK, US), the concept is narrower and usually needs explicit clause. The Saudi advantage: jurisprudential flexibility + rapid practical application during COVID-19 crisis proved system efficiency.