Royal Decree No. establishes a unified, codified framework for civil obligations, fundamentally affecting commercial contracts. Key Principles Codified: The law provides clear definitions and application rules for concepts previously based on Sharia jurisprudence, including Force Majeure and Exceptional Circumstances (Hardship). Hardship Clause Interpretation: The CTL allows the judge to intervene and amend the contractual obligation if an unpredictable event makes the performance excessively onerous (hardship), ensuring equity between the parties. Remedies for Breach: It establishes a unified standard for assessing compensation, covering both material and, in specified cases, moral damages, demanding greater predictability in litigation and risk assessment. ? To initiate a legal assessment of your cross-border data transfer framework, please contact our Compliance Advisory Team via : our website: https://easternnco.com/contact_us.

Royal Decree No. (M/191) of 1444 AH (2023) establishes a unified, codified framework for civil obligations, fundamentally affecting commercial contracts.

• Key Principles Codified: The law provides clear definitions and application rules for concepts previously based on Sharia jurisprudence, including Force Majeure and Exceptional Circumstances (Hardship).
• Hardship Clause Interpretation: The CTL allows the judge to intervene and amend the contractual obligation if an unpredictable event makes the performance excessively onerous (hardship), ensuring equity between the parties.
• Remedies for Breach: It establishes a unified standard for assessing compensation, covering both material and, in specified cases, moral damages, demanding greater predictability in litigation and risk assessment.

? To initiate a legal assessment of your cross-border data transfer framework, please contact our Compliance Advisory Team via: our website: https://easternnco.com/contact_us.