RELEVANT PROVISIONS OF LAW NO (22) OF 2004 REGARDING PROMULGATING THE

CIVIL CODE 22 / 2004

1
1. The statutory provisions shall apply, expressly or impliedly, to relevant issues dealt
with by the provisions herein.
2. Where there is no statutory provision, the Judge shall rule according to the relevant
provision of the Islamic Shariah, if any. Otherwise the Judge shall rule according to the
customary practice. In the absence of such customary practices the Judge shall rule in
accordance with the rules of justice.

2
1. A provision of a law can only be repealed by a subsequent law expressly providing
for such repeal, or containing a provision prejudicing a provision of the former law.
2. Where a new law regulates a new matter previously regulated by a former law, the
new law shall revoke all the relevant provisions of the former law.

3
1. Save as otherwise provided, the new law shall apply to all cases from such time as it
comes into force.
2. The consequences of actions or dispositions shall remain subject to the law applicable
at the time of conclusion of such actions or dispositions, unless the provisions of the
new law relate to public order, in which case the provisions of the new law shall apply
to such consequences.

10
Where a dispute arises in the application of different laws to any particular case, the
dispute shall be resolved by reference to Qatari law.

12: legal status

Where, however, a juristic person conducts its main activity in Qatar, even if its actual
headquarters is outside Qatar, the Qatari law shall nevertheless apply.

25
The law of the jurisdiction where the property is located shall determine whether such
property is immovable or movable.

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26
Acquisition, title and associated rights in kind of a movable asset and the methods of
acquisition, transfer or termination thereof such rights shall be governed by the
jurisdiction where such movable asset is located at the time of its acquisition.

27
1. In terms of the substantive conditions to be imposed and the effects thereof, a
contract shall be governed by the law of the jurisdiction of the domicile common to
the contracting parties. If the domicile of one party is different from that of the other
party, the law of jurisdiction where the contract is concluded shall be applied, unless
the contracting parties agree otherwise or the circumstances indicate that another
law is intended to be applied.
2. Contracts relating to immovable property, however, shall be governed by the law of
the jurisdiction in which the immovable property is situated.

29
1. The form of contracts shall be governed by the law of jurisdiction of the country
where such contracts are concluded.
2. The law governing the contract in its substantive provisions, the law of the domicile
of the contracting parties, or their common national law, may also apply.

30
1. Non-contractual obligations shall be governed by the law of the State in whose
territory the act that gave rise to the obligation took place.
2. The provisions of the preceding paragraph shall not apply to acts which occurred
abroad and which, although considered unlawful under the law of the country in which
the tort occurred, are considered lawful in Qatar.

31
Obligations arising from unjust enrichment, payment of amounts not yet due, or
officiousness shall be governed by the law of jurisdiction where the act creating such
obligations occurs.

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32
In legal relationships involving a foreign element, Qatari courts shall apply the rules of
jurisdiction and procedure as determined by Qatari law.

33
The provisions of the preceding Articles shall apply only when no provisions to the
contrary are included in a special law or in an International Convention in force in
Qatar.
34
The principles of private international law shall apply in the case of a conflict of laws
for which no provision is made in the preceding Articles.

35
1. In the case of persons of unknown nationality or of a person of simultaneous plural
nationality, the law to be applied shall be decided by a judge.
2. Qatari law shall apply, however, if a person, in respect of Qatar, proves to have
Qatari nationality and is at the same time deemed by one or more foreign states to be
a national of those states.

36
Whenever it appears from the provisions of the preceding Articles that the applicable
law is the law of a particular state with multiple statutes, the internal law of such state
shall determine which statute shall be applied

37
Where it is resolved that a foreign law is applicable, only the internal provisions of
such foreign law shall apply, and the provisions relating to private international law
shall be excluded.

38
The provisions of a foreign law applicable by virtue of the preceding Articles shall not
be applied if they conflict with the public order or morals in Qatar. In
such event, the Qatari law shall apply.

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RELEVANT PROVISIONS OF LAW NO (22) OF 2004 REGARDING PROMULGATING THE
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53
Juridical persons are:
1. The state, administrative units thereof having legal entity recognised by law, and
municipalities;
2. Public authorities and establishments;
3. Awqaf;
4. Civil and trading companies, save as excluded by a special provision;
5. Private associations and foundations, other than as provided by law.
6. Any grouping of persons or properties having a juridical personality under the
provisions of the law.

54
Within the limits established by law, a juridical person shall enjoy all rights except
those which presuppose intrinsically human attributes.
A juridical person shall have:
1. A separate patrimonium.
2. Legal capacity within limits defined by its founding constitution or as provided by
law.
3. The right to sue;
4. A separate domicile located at its head office. The location of any branch of a
juridical person may be deemed its domicile to the extent of the
activity of such branch.
5. Its own nationality.
2. A juridical person shall have its own representative (natural person) to express its
will.

55
Where a juridical person engages in activity in Qatar but maintains its head office
abroad, such head office shall be deemed its domicile in connection with its activity in
Qatar.

57
1. All immovable or movable property of the state or public juristic persons allocated,
either in fact or by law, for a public benefit shall be deemed to be public funds.

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2. In all events, such public funds may not be disposed of, attached or acquired by
prescription.

58
Public property shall cease to be such upon the termination of its allocation for a
public benefit. Such allocation shall terminate by fact or by law or upon the removal of
the public benefit for which such property has been allocated.

59
1. Any asset of property that is fixed to the Earth and cannot be moved without
destroying or altering it shall be deemed real property; otherwise it shall be deemed a
movable asset.
2. However, any movable asset placed in real property by the owner thereof to serve
or to be utilised for the service or exploitation of such real property shall be deemed
immovable by reason of its intended use.
3. Every real right attached to immovable property shall be deemed real property and
all other proprietary rights shall be deemed movable property.

60
1. Fungibles are goods or commodities that are replaceable by another identical item,
and which are assessed in trade by number, quantity, weight or measure.
2. Ad valorem things are those things whose individual value or qualities may
customarily vary significantly and which are rarely traded.

62 & 63
Any person who lawfully exercises his rights shall not be liable for any harm arising
therefrom
The exercise of a right shall be unlawful in any of the following circumstances:
1. If the desired interest by such use is unlawful;
2. If such use is intended solely to cause damage to others;
3. If the interests desired are disproportionate to the harm that will be suffered by
others; or
4. If such use may cause unusually gross damage to third parties.

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161
1. Unless the law provides otherwise, the right to demand the revocation of a contract
shall prescribed if not invoked within three years from the date on which the right
arose.
2. Prescription shall run: in the case of legal incapacity, from the date of the cessation
of such incapacity; in the case of mistake or fraudulent misrepresentation, from the
date on which the mistake or misrepresentation is discovered; in the case of duress,
from the date it has ceased.
3. In all cases, the right to demand the revocation of a contract as a result of mistake,
fraudulent representation or duress shall lapse after a period of fifteen years has
elapsed from the date of the conclusion of the contract.

162
1. Any concerned party may notify the party holding the right of revocation to declare
its intention to authorise or revoke such contract no later than three months from the
date of such notice.
2. A notice shall not be effective unless given during the time limit before the right of
revocation lapses.
3. Where the period of the notice expires without a declaration of authorization or
revocation of the contract having been made, such omission shall be deemed
authorization of the contract, provided that the notice is given to such party in person.

169 & 170

1. Where the wording of the contract is clear, it shall not be capable of deviating from
or construing the intent of the contracting parties.
2. Where a contract must be construed, the common intention of the parties shall be
sought without restriction to the literal meaning of the words, taking into account the
nature of the transaction as well as the honesty and confidence that should prevail
between the parties in accordance with commercial custom.
1. Any doubt in the wording of the contract shall be interpreted in favour of the
obligor.
2. However, where the contract contains a clause discharging a party from liability,
such provision shall be construed narrowly

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171
1. Pacta sunt servanda i.e., a contract duly and properly concluded between the
parties must be kept, and non-fulfilment of the respective obligations is a breach of
that contract. Such a contract may be revoked or altered only by mutual consent of the
parties or for reasons provided for by law.
2. Where, however, as a result of exceptional and unforeseeable events, the fulfilment
of the contractual obligation, though not impossible, becomes excessively onerous in
such a way as to threaten the obligor with exorbitant loss, the judge may, according to
the circumstances and after taking into consideration the interests of both parties,
reduce the excessive obligation to a reasonable level.
3. Any agreement to the contrary shall be void.

172

1. A contract shall be performed in accordance with its provisions and in such manner
consistent with the requirements of good faith.
2. A contract shall not be limited only to binding a party to its provisions but shall also
cover whatever is required by law, customary practice and justice in accordance with
the nature of the obligations contained in the contract.

183
1. In contracts binding on both parties and imposing reciprocal obligations
(synallagmatic contracts), where one of the parties fails to perform his obligation, the
other party may, upon formal notice to the former, demand performance of the
contract or its rescission, and may claim any damages caused by such failure to
perform.
2. The judge may, mutatis mutandis, determine a period of grace within which the
obligor shall perform his obligation. The judge may also reject the application for
rescission if the obligation not performed is insignificant compared with the
obligations considered in their entirety.

184
1. The parties may agree that, in the case of a failure to perform the obligations arising
from the contract, such contract shall be deemed to have been rescinded ipso facto
without a court order.

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2. Such an agreement may not limit the authority of the judge to terminate the
contract, unless the wording of the contract expressly indicates that this is the parties'
mutual intention.
3. Other than in commercial transactions, an agreement to deem a contract rescinded
ipso facto shall not release the parties from the obligation of serving a formal notice.
Any agreement between the parties to the contrary shall be void.

185
When a contract is rescinded, the contracting parties shall be reinstated to the
position they were in prior to the date of the conclusion of the contract. If
reinstatement is impossible, the court may grant indemnity.

187
1. In contracts binding on one party, where performance of the obligation becomes
impossible due to force majeure beyond the control of the obligor, the contract shall
terminate automatically.
2. Where such impossibility is partial, the obligee may enforce the contract to the
extent of such part of the obligation that can be performed.

188
1. In contracts binding on both parties, where performance of an obligation by one
party is extinguished by reason of impossibility of performance due to force majeure
beyond the control of the obligor, such obligation and correlative obligations shall also
be extinguished and the contract deemed rescinded ipso facto.
2. Where such impossibility is partial, the obligee may either enforce the contract to
the extent of such part of the obligation that can be performed or demand termination
of the contract.

191
1. In contracts binding on both parties, where corresponding obligations are due for
performance, either party may decline to perform his obligation if the other party fails
to perform his obligation, unless the parties agree otherwise or mutually accepted
practice provides otherwise.

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220 & 221

Any person, even where such person has not reached the age of discretion, who is
enriched for no lawful reason at the expense of another person, shall indemnify the
other person against the loss suffered, to the extent of such enrichment. This
obligation shall continue, even where such enrichment has ceased.
The filing of a claim for unlawful enrichment shall prescribe after a period of three
years has elapsed from the date on which the aggrieved party became
aware of his right to indemnity, or after a period of fifteen years has elapsed from the
date on which such right arose, whichever occurs first.

256--268
Where the obligor fails to perform the obligation in kind or delays such performance,
he shall indemnify any damages suffered by the obligee, unless such non-performance
or delay therein was due to a cause beyond his the control.
The court may decrease the amount of indemnity or reject any request for indemnity
where the negligence of the obligee contributed to or aggravated the damage.
The parties may agree that the obligor shall bear liability for force majeure or
unforeseen incident.
1. The parties may agree to discharge the obligor from any liability arising from his
failure or delay to perform his contractual obligation, except for his fraud or gross
negligence.
2. The parties may also agree to discharge the obligor from liability for fraud or gross
negligence committed by persons employed by the obligor to perform his obligation.
3. Any agreement concluded prior to the liability for the unlawful act arising shall be
rescinded and the obligor shall be discharged from such liability in whole or in part.
Indemnity shall not be payable until the obligor is notified, unless the parties agree or
the law provides otherwise
1. The court shall calculate the indemnity unless such calculation is provided in the
contract or by the law.
2. Indemnity shall cover damages incurred by the obligee, including loss of profit,
provided that such damages or loss of profit are a natural consequence
Indemnity shall include moral damages and shall be governed by the provisions of
Articles 202 and 203.
Where the obligation is the payment of money, the contracting parties may calculate
the amount of indemnity in advance in the contract or in any subsequent agreement.

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No agreed indemnity shall be payable if the obligor proves that the obligee has
suffered no damages. The court may decrease the agreed amount of indemnity if the
obligor proves that the calculation is exaggerated or if the obligation has been
performed in part. Any agreement to the contrary shall be invalid.
Where the damages exceed the agreed amount of indemnity, the obligee may not
claim a higher amount unless he proves the obligor's fraud or gross negligence.
Where the obligation is the payment of money and the obligor fails to make such
payment after being notified to do so, and provided that the obligee proves he has
incurred damages due to such non-payment, the court may order the obligor to pay
indemnity, subject to the requirements of justice.

269--272
1. All the assets of a debtor shall secure its debts.
2. All creditors rank pari passu in such security, unless any creditor has preference
rights by law.
1. Even where a debt is not payable, every creditor may use in the name of its debtor
the financial rights of such debtor, other than such rights relating to the debtor in
person or which are not attachable, if the creditor proves that the debtor has not used
such rights and that such omission to use them will cause the insolvency of the debtor
or aggravate such insolvency.
2. Upon use of the rights of its debtor, the creditor shall not be required to notify the
debtor. Such debtor shall be joined in the claim; otherwise it shall not be admissible.
Upon use of the rights of its debtor, the creditor shall be deemed to act as an agent of
the debtor. Any benefit from the use of such rights shall be added to the funds of the
debtor and shall secure all its creditors.
Any creditor whose debt is payable and whose debtor commits any harmful act to the
creditor may demand the invalidation of such act against the creditor if such act
decreases the rights of the debtor or increases its obligations and results in the
insolvency of the debtor or aggravates such insolvency, provided that the conditions as
set forth in the following Articles 273 and 274 are satisfied.

Article 273
1. Where the disposal of the debtor is with consideration, such disposal shall not be
effective against the creditor in the event of fraud by the debtor and where the
counter party is aware of such fraud. Fraud by the debtor shall be presumed if the

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creditor proves that the debtor knew at the time of the disposal that it was insolvent.
The counter party to the disposal shall be presumed to have known of such fraud by
the debtor if the creditor proves that the counter
party knew at the time of the disposal that the debtor was insolvent.
2. Where the disposal by the debtor is without consideration, such disposal shall be
effective against the creditor irrespective of fraud by the debtor or bad faith of the
counter party.

Article 274
1. Where the disposal of the debtor is with consideration, and the successor disposes
of the right transferred to it to another successor with consideration, the creditor may
not claim that such disposal is ineffective unless the creditor proves that both
successors were aware of the debtor's fraud.
2. Where the disposal by the debtor is without consideration, and the successor
disposes of the right transferred to it to another successor with consideration, the
creditor may not claim that such disposal is ineffective unless the creditor proves that
the latter successor was aware of the debtor's fraud at the time of disposal by the
debtor in favour of the first successor.

Article 275
Where the creditor alleges that the debtor is insolvent, the creditor shall only be
obliged to prove the amount of the debt payable by such debtor. Where the debtor
alleges solvency, the debtor shall prove money at least equal to or in excess of the
debts accrued.

Article 276
Where it is resolved that the disposal is not effective, all creditors who suffered
damages from such disposal shall benefit therefrom.

Article 277
The counter party to a disposal may avoid trial if such party pays into the court
treasury an amount equal to the value of the disposed asset.

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Article 278
1. Where the disposal of an insolvent debtor involves preference of a creditor without
good reason, the other creditors may request that the disposal be invalidated against
them, subject to the provisions of Articles 272 and 275.
2. Where the insolvent debtor pays the debt of any of its creditors prior to the agreed
maturity date of such debt, the other creditors may request not to enforce such
payment against them. However, where the debtor pays such debt after its maturity
date, the other creditors may not request invalidation of the payment against them
unless such payment is made in collusion between the debtor and the creditor whose
debt is settled.

Article 279
The claim to invalidate a disposal shall prescribe after a period of three years has
elapsed from the date on which the creditor knew that the disposal was not effective
against the creditor. In any event, such claim shall prescribe after a period of fifteen
years has elapsed from the date of such disposal.

Article 280
1. A person who undertakes to perform any obligation may decline performance
thereof where the obligee has not offered to perform the corresponding obligation or
has not provided adequate security for the performance thereof.
2. However, a holder or acquirer of a thing may refuse to return it until all amounts
owing thereon have been paid, including such appropriate or necessary expenses
incurred by such person in connection with such thing, unless the obligation to return
such thing arises from any unlawful act.

Article 281
1. The person in possession shall maintain such thing in safe custody in accordance
with the provisions of mortgage and shall account for the revenues
of such thing.
2. Where the thing is feared lost or damaged, the custodian may apply to the court for
permission to sell it in accordance with such procedures as determined by the court,
and may sell such thing without prior permission from the court in the event of an
emergency.

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3. Title to the thing shall remain vested in the seller and shall not pass to the buyer
until the purchase price has been paid in full and received by the seller.

Article 282
The right to retain a thing shall not grant a lien thereon.

Article 283
Where the retained thing is lost or damaged, the right to retain shall be transferred to
any consequent consideration or indemnity.

Article 284
1. The right to retain shall cease when the retained thing is no longer in the possession
of the retainer.
2. However, where such thing is taken from the custody of such retainer without his
knowledge or despite his objection, the retainer may demand its return within thirty
(30) days of the date on which he became aware thereof and, in any event, within one
year from the date thereof.

Article 285
An obligation shall be conditional where its execution is suspended by a condition
which has not been accomplished.

Article 286
1. Where the condition is in breach of the public order or morals, or is impossible to
meet, the obligation shall not exist if the condition is suspensive.
2. However, if such a condition is rescissible, such condition shall be void and shall
have no effect on the enforceability of the obligation.

Article 287
No obligation shall be effective where it is based on the suspensive condition that the
existence of such obligation shall be dependent on the absolute discretion of the
obligor.

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Article 288
1. No obligation based on a suspensive condition shall be effective unless that
condition is met.
2. However, before such condition is met, the obligee may take any action to preserve
its right.

Article 289
1. An obligation based on a rescissible condition shall be effective immediately. Where
the condition is met, the obligation shall cease, and the oblige shall return what he has
received. Where meeting the condition is rendered impossible by any act attributable
to the obligee, he shall pay indemnity.
2. However, acts pertaining to management performed by the obligee shall remain
valid and binding notwithstanding such condition having been met.

Article 290
1. Where a suspensive or rescissible condition is met, its effect shall apply to the time
of execution of the contract, unless the intention of the contracting parties or the
nature of the contract indicates that the existence or non-existence of the obligation
relates only to the time at which the condition is met.
2. However, such a condition shall have no retroactive effect where the performance
of the obligation before meeting such a condition becomes impossible due to any
cause beyond the control of the obligor.

Article 337
1. The debt may be transferred by mutual agreement between the debtor and another
person to transfer the debt of the debtor to the transferee.
2. Such transfer shall be limited where the performance therein is limited to a
particular property or debt to the debtor by the transferee. Such transfer shall be
absolute where such performance is not limited by anything, even where the debtor is
entitled to any debt or property in the possession of the transferee that may be
applied for settlement.

Article 338
1. No transfer shall be effective against the creditor unless the creditor accepts it.

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2. Where the original debtor or the transferee notifies the creditor of such transfer and
a reasonable time is fixed for acceptance thereof by the creditor, and such time
expires without any declaration of acceptance by the creditor, such non-declaration
shall be considered as a rejection of the transfer.

Article 339
The transferee shall be obliged to the original debtor to pay the transferred debt to
the creditor in due time, unless agreed otherwise. This provision shall apply even
where the creditor rejects the transfer.

Article 340
The debt may be transferred under an agreement between the creditor and the
transferee. However, where the original debtor rejects the transfer, the transferee
shall have no right of recourse against the debtor, other than in accordance with the
rules of unlawful enrichment, if available.

Article 341
Where the creditor is a party to, or accepts, the transfer deed, the original debtor shall
be discharged from the debt.

Article 342
The original debtor shall secure the solvency of the transferee at the time of
acknowledgement by the creditor of the transfer, unless agreed otherwise.

Article 343
1. The debt shall be vested in the transferee in its descriptions, attachments and
securities.
2. However, the guarantor, whether in kind or in person, shall remain liable to the
creditor only if the creditor accepts the transfer.

Article 344
The transferee may hold the creditor to all the pleadings of the original debtor in
connection with the same debt and may hold to such pleadings derived from the
transfer deed.

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Article 345
1. Where the debt, being the subject-matter of the transfer, is terminated for any
urgent reason upon the conclusion of such transfer, such termination shall not affect
the transfer. The transferee may have recourse against the original debtor to the
extent of the amount paid to the creditor.
2. Where the debt is terminated for any urgent reason not attributable to the
transferee prior to the conclusion of such transfer, the transfer shall be rendered
invalid.

Article 346
In any event, where payment for the thing transferred becomes due, the transfer
debtor who paid the price shall have a right of recourse, either against the transferor
or against the transferee paid.

Article 347
Where the debtor transfers its debt under a transfer limited to the property in the
custody of the transfer debtor and such property is lost prior to delivery thereof to the
creditor, but not due to the fault of the transfer debtor, the transfer shall be
terminated. However, where such property in custody is payable to a third party, the
transfer shall be void.

Article 348
Where the debtor refers its creditor to the person in wrongful possession under a
transfer limited to the wrongfully seized property, and the property is lost while in the
custody of such person in wrongful possession prior to its delivery to the creditor, the
transfer shall not be affected thereby. However, where such property in custody is
payable to a third party, the transfer shall be void.

Article 349
The creditor may not have recourse against the original debtor unless the transfer
provides that the original debtor may be demanded to pay the debt if it cannot be
recovered from the transfer debtor, or if the limited transfer is terminated or becomes
void upon the termination of the debt, or the loss or maturity of the property occurs in
accordance with the preceding four Articles.

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Article 350
Where the original debtor transfers its debt under an absolute transfer and such
debtor holds no debt or property in the custody of the transfer debtor, the transfer
debtor shall upon payment of the debt have a right of recourse against the original
debtor to the extent of the transferred debt.

Article 351
1. Where the original debtor transfers its debt under an absolute transfer and such
debtor holds any debt or property held in trust or wrongfully seized by the transfer
debtor, the original debtor shall upon such transfer have the right to claim such debt
or property from the transfer debtor until the transferred debt is paid to the creditor.
2. Where the transfer debtor pays such debt to the creditor, the debt payable by such
transfer debtor shall be discharged to the extent paid.

Article 352
Where a transfer limited by a debt or property is concluded, the original debtor shall
have no claim against the transfer debtor, and the latter shall have no obligation to
pay such debt to the original debtor.

Article 353
1. Upon the sale of any property officially pledged, the debt secured by such pledge
shall not be effective against the purchaser unless otherwise agreed.
2. If the seller and the purchaser agree to transfer the debt, and the sale agreement is
registered, the creditor shall, promptly upon being notified of the transfer, either
accept or reject such transfer no later than six (6) months of such notification. Upon
the expiry of such period without any response from the creditor, such silence shall be
deemed acceptance by the creditor.

Article 390
1. The debtor shall have the right to set off the amount payable to its creditor against
the amount payable by the creditor to such debtor, even where the basis of each debt
is different, provided that the subject matter of either debt is cash or fungible things of
the same type or quality and that both debts are free of any outstanding legal dispute.
2. Set-off shall not be affected where the time for payment is adjourned according to
an extension granted either by the court or voluntarily by the creditor.

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Article 391
Set-off may be made even if the place of payment of each debt is different. In such
event, the party that holds to such set-off shall indemnify the other party for any
damage suffered by such other party due to its inability to recover its right in full or to
pay its debt at the place designated for such purpose as a result of such set off.

Article 392
Debts of any source whatsoever may be set off, other than any of the following:
1. Where the form of either debt is the return of a thing dispossessed without any
right from its owner;
2. Where the form of either debt is the return of a deposited or lent thing;
3. Where either debt is a non-attachable right; or
4. Where either debt is an alimony debt.

Article 393
1. Set-off shall not be applicable unless the concerned party holds thereto, and it may
not be waived until the right is established.
2. As a result of such set-off, the debts shall expire to the extent of the lower debt at
such time when both debts are capable of set-off.
3. In the event of a debtor having multiple debts, designation of set-off shall be the
same as the designation upon repayment of such multiple debts.

Article 394
Where the debt is prescribed at the time of holding to set-off, such debt may be set off
despite holding to such prescription, provided that prescription shall not be effective
at the time when set-off becomes possible.

Article 395
1. No set-off that may prejudice the rights of third parties may be made.
2. Where a third party imposes an attachment on a thing in the possession of the
debtor and the debtor becomes a creditor of its own creditor by a debt that can be set
off, such debtor may not hold to such set-off to the detriment of the attachment
creditor.

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Article 396
1. Where the creditor transfers its right to a third party and the debtor accepts such
transfer without any reservation, the debtor may not hold the transferee to any right
of set-off that the debtor could have exercised prior to accepting the transfer. The
debtor shall have a right of recourse against the transferor only.
2. However, where the debtor has not accepted the transfer but has been notified of
it, such transfer shall not prevent the debtor from holding to set-off, unless the right of
set-off of the debtor is established against the transferor upon being notified of such
transfer.

Article 397
Where a debtor repays a debt even though it has the right to set off such debt, the
debtor may not hold to the securities to its right to the detriment of third parties,
unless the debtor has not previously been aware of such right.

401
1. The period of prescription shall not commence until the maturity date of the debt,
unless the law provides otherwise.
2. In particular, such period shall not apply to a debt based on a suspensive condition
other than from the time when such condition is met; and in respect of the security to
maturity, from the date on which maturity is established; and in respect of a deferred
debt, from the time when such period expires.
3. Where the determination of the date for payment is at the sole discretion of the
creditor, the period of prescription shall commence from the date when the creditor is
able to exercise such discretion.

Article 411
1. The period of prescription shall not apply where a creditor is prevented from
claiming his right, even if such prevention is moral; nor shall it apply to the relationship
between the principal and his agent.
2. Lack or absence of capacity of the creditor, or a penalty ruled against him, shall be
deemed a prevention to claim a right, unless the creditor is legally represented by an
agent.

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Article 412
Where any reason exists to suspend the calculation of the period of prescription in
respect of some heirs of the creditor, such suspension shall not apply to the other
heirs.

Article 413
The period of prescription shall be suspended by a judicial claim, even if the claim is
made before a court of non-competent jurisdiction, and it shall be suspended by
notification of the executive deed, attachment and such request to accept one's right
in bankruptcy or distribution, and any other procedure taken by the creditor to hold to
his right during the progress of any claim.

Article 414
1. The period of prescription shall be suspended if the debtor expressly or impliedly
acknowledges the right of the creditor.
2. Such acknowledgement shall be deemed implied if the debtor leaves in the
possession of the creditor any asset that is mortgaged as security for a debt, or if the
creditor retains such asset on the basis of his right to reject the return of such asset to
the debtor until the debt is repaid.

Article 415
1. Where the period of prescription is interrupted, a new period shall begin to run
from the time of expiry of the effect arising from the cause of such interruption, and
such new period shall be the same as the original period.
2. Where the right is awarded and the judgment has become res judicata, or the claim
of such right is prescribed after five years in accordance with the provisions of Article
405, or after one year in accordance with the provisions of Article 407, and such
prescription is interrupted by acknowledgement from the debtor, the new period of
prescription shall be fifteen years, unless the judgment provides for periodic renewed
obligations that mature only when the judgment is issued.

Article 416
Where the claim of the right is subject to prescription, the claim of its effects shall also
be subject to prescription, even if the period of prescription of the latter claim is not
completed.

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Article 531
Where the company fails to repay its debts, the shareholders shall be liable to settle
such debts from their own money, each pro rata to his share of the company's losses.
Any agreement that may discharge the shareholder from liability for the company's
debts shall be void.

Article 536
1. The company shall be dissolved upon the death, interdiction or insolvency of a
shareholder.
2. However, it may be agreed that if a shareholder dies, the company shall continue
with his heirs, even if they are minors.
3. It may also be agreed that, in accordance with the provisions of Article 537 herein,
the company shall continue as between the remaining shareholders upon the death,
interdiction, insolvency or withdrawal of a shareholder. In such event, such
shareholder or his heirs shall be entitled to his share in the assets of the company only.
Such share shall be assessed according to its value on the date of the cause of the
withdrawal of such shareholder from the company. Such share shall be paid in cash,
whereafter such shareholder shall have no further share in any subsequent rights,
other than to the extent that such rights arise from previous transactions.

Article 564
A loan shall be defined as a contract under which the lender undertakes to transfer the
title to a certain amount of money to the borrower, or anything similar, provided that
such amount or thing shall be returned to the former in the same type, condition and
quantity.

Article 565
1. The lender shall deliver the agreed item to the borrower at the time of conclusion of
the contract, unless another time is agreed.
2. Where such item is lost prior to delivery, the lender shall bear the consequences of
such loss.

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Article 566
The lender shall not be held liable for the entitlement to the borrowed item, unless
there is an agreement to such liability or the lender has deliberately concealed the
cause of such entitlement.

Article 567
1. Where a concealed defect is detected in the borrowed item and the borrower opts
to retain it, the borrower shall be liable to repay the value of such item in its defective
condition.
2. Where the lender has deliberately concealed the cause of such defect, he shall be
liable for any damage caused by it.

Article 568
Where the loan contract provides for a benefit greater than the amount agreed in the
contract, other than the security to the right of the lender, the provision shall be
annulled while the contract shall be valid. (financial institutions can apply interest on
their loans—central bank of Qatar law)

Article 569
1. A borrower shall return a similar item on the agreed maturity date or immediately
when it becomes outstanding.
2. Where such date is not agreed, or where it is agreed to return such item when
capable or solvent, the court shall fix an appropriate date for the return of the item
according to the circumstances.

Article 570
Where the place for the return of such similar item is not agreed, it shall be returned
at the domicile of the lender.

Article 571
1. Where the value of a similar item changes at the time of returning it, such change
shall have no effect.
2. Where the borrowed item is not available in the market, the lender shall have the
option either to wait until such item is available again in the market and then have it

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returned by the borrower, or to demand that the borrower pay the value of such item
at the time and place as agreed.

Article 572
The costs pertaining to the loan and its repayment shall be borne by the borrower,
unless agreed otherwise.

Article 573
Reconciliation is a contract under which the parties settle a dispute between them, or
avoid a contingent dispute by each party waiving the corresponding part of their claim.

Article 682
A contracting agreement shall be defined as a contract under which either party
undertakes to make a thing or perform any work for the other party in consideration
of a wage, without being an agent or representative of such party.

Article 683
1. The obligation of the contractor may be limited to the performance of the agreed
work, provided that the employer provides the required materials.
2. The contractor may provide all or any of the materials in addition to his obligation to
perform the work.

Article 684
1. Where the contractor provides all or any of the work materials, such materials shall
be compliant with the agreed specifications, if any, or shall be adequate for their
intended purpose.
2. The contractor shall be liable for any defects in such materials in accordance with
the provisions of liability for defects in a sold thing.

Article 685
1. Where the work materials are provided by the employer, the contractor shall use all
reasonable care to protect such materials, comply with the technical practices for the
proper use of such materials, account for the materials to the employer, and return to
the employer any remaining part of such materials.

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2. Where such materials are not fit for use, either in whole or in part, due to the
negligence or technical inefficiency of the contractor, he shall pay the value of such
materials to the employer, together with indemnity, as applicable.

Article 686
1. Where, during the progress of the work, any defects in the materials provided by
the employer arise or appear, or there are other factors that may obstruct the
performance of the work in proper conditions, the contractor shall notify the employer
of such defects immediately.
2. Where the contractor neglects to notify the employer, the contractor shall be liable
for the consequences of such negligence.

Article 687
1. The contractor shall perform the work in accordance with the conditions as set out
in the contracting agreement and within such period as agreed. Where no such
conditions are set out or no such period is agreed, the contractor shall perform the
work in accordance with the applicable practices and within such reasonable period as
required for the nature of the work, subject to established standards of workmanship.
2. Unless otherwise required by agreement or practice, the contractor shall provide at
his cost any labour, tools and supplies required to perform the work.

Article 688
1. Where, during the progress of the work, it appears that the contractor is performing
the work in a defective manner or in breach of the contract; the employer may notify
the contractor to correct the method of performance within such reasonable time as
determined by the employer. Where such period expires without remedy of such
breach, the employer may demand termination of the contract or obtain a license
from the court to perform the work at the cost of the contractor if the nature of the
work so permits.
2. The employer may demand termination of the contract without notice or time limit
if the correction or remedy of the breach is impossible.
3. In any event, the court may reject the request for termination if the defect in the
method of performance has not decreased to a large extent the value of the work or
its utility for the intended purpose, without prejudice to the right to indemnity, as
applicable.

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Article 689
Where the contractor delays in commencing or accomplishing the work to such an
extent that he cannot possibly deliver the work within the agreed period, or if his
actions indicate his intention not to perform his obligation or make the performance of
his obligation impossible, the employer may demand the immediate termination of the
contract.

Article 690
Where a thing is lost or damaged due to an unforeseen incident or force majeure prior
to its delivery to the employer, the contractor may not demand payment of the agreed
wage or the value of the materials provided by him unless the employer is in breach of
his obligation to take over the work at the time of loss or damage.

Article 691
1. Where the materials are provided by the employer and the thing is lost or damaged
prior to its delivery due to any unforeseen incident or force majeure, the employer
may not demand that the contractor pay the value of such materials unless at the time
of such loss or damage the contractor is in breach of his obligation to deliver the work,
provided that the contractor fails to prove that such thing would have been lost or
damaged in the possession of the employer if it had been delivered to the employer.
2. The work materials shall be deemed provided by the employer if their value has
been paid by the employer to the contractor or an amount paid on account, including
such value, to the contractor.

Article 692
1. Where performance of the work requires a specific action within a specific time
period by the employer but he fails to act within such time period, the contractor may
demand the employer to act within such reasonable time as determined by the
contractor.
2. Where such time period expires without the employer's action, the contractor may
demand termination of the contract without prejudice to his right to indemnity, as
applicable.

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Article 693
Where the contractor completes the work and puts it at the disposal of the employer
after notification thereof, the employer shall take over the work according to the
familiar procedures of transaction. If the employer without any good reason rejects
taking over the work despite being invited to do so under a formal notice, the work
shall be deemed to have been delivered to the employer.

Article 694
1. The employer may reject taking over the work if any defect therein or breach of the
agreed conditions renders the work unfit for its intended purpose.
2. Where such defect or breach has not rendered the work unfit for its intended
purpose, the employer may only demand a reduction in the sum owed to the
contractor to the extent consistent with the significance of such defect or breach or,
where a remedy is available at reasonable cost, he may require the contractor to
remedy such defect or breach within such reasonable time as determined by the
employer.

Article 695
The employer may not hold to the rights provided in the preceding Article if he has
caused the defect, whether by issuing orders contrary to the opinion of the contractor
or by any other way.

Article 696
1. Whenever the work is taken over actually or virtually, the contractor shall not be
liable for any apparent defect or breach of the conditions of the contract.
2. Where the defects or breach are invisible, and the employer detects such defects or
breach after taking over the work, he shall notify the contractor thereof, subject to the
rules of workmanship, failing which the employer shall be deemed to have accepted
the work.

Article 697
The employer shall pay the dues of the contractor upon taking over the work, unless
otherwise required by agreement or by practice.

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Article 698
1. Where the work consists of distinct parts or if the price is determined by unit price,
either contracting party may demand inspection upon the completion of each part that
may be adequately significant to the work as a whole. In such event, the contractor
may collect his dues to the extent of the work completed, unless agreed otherwise.
2. It shall be presumed in connection with any work for which the contractor's dues
are paid that it has been inspected and accepted, unless in the event of payment on
account.

Article 699
Where the contractor's dues are not agreed, such dues shall be determined with
reference to the value of similar work at the time of the contract and the value of the
materials provided by the contractor as required for the work.

Article 700
Subject to the provisions of clause 2 of Article 171 herein, the rise in the prices of raw
materials, labour force wages and other costs shall not affect the scope of the
obligations under the contract.

Article 701
1. The contractor may delegate all or part of his work to a subcontractor unless
otherwise provided by the contract, or unless the personality of the contractor is
considered in the light of the nature of the work.
2. However, the obligations of the main contractor to the employer shall remain
effective and the contractor shall be liable to the employer for the works performed by
the subcontractor.

Article 702
1. The subcontractor and labourers working for the account of the main contractor to
perform the work shall be entitled to directly demand the employer to pay their dues
to the extent payable by the main contractor at the time of the claim. The employees
of the subcontractor shall have the same right against the main contractor and the
employer.
2. The subcontractor and labourers may, at the time of imposing attachment against
the employer or the main contractor, hold a lien on the amounts due to the main

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contractor from the subcontractor at the time of the attachment, pro rata to the right
of each of them. Such amounts may be paid to the subcontractor or labourers.
3. The rights of the subcontractor and labourers as provided under this Article shall
have priority to the rights of any party to whom the contractor may assign his right
against the employer.

Article 703
Where the contractor performs the maintenance of a thing or any other refurbishing
works within a specific period under the contracting agreement, such agreement shall
terminate upon the expiry of that period.

Article 704
The contracting agreement shall terminate if the agreed work is impossible to perform
due to a foreign cause beyond the control of either party. In such event, the contractor
shall have the right to demand the employer to reimburse any costs incurred by the
contractor and such wages payable to him, commensurate with the benefit obtained
by the employer from such work.

Article 705
The contracting agreement shall terminate upon the death of the contractor if his
personal qualifications or capabilities are taken into consideration upon making the
contract, otherwise the contract shall not terminate automatically. However, the
employer may demand termination of the contract if no adequate securities to
perform the work properly are available in the heirs of the contractor.

Article 706
1. Where the contracting agreement terminates on the death of the contractor, his
heirs shall be entitled to the value of the works completed by him and such costs
incurred by the contractor therein, to such extent that the employer may benefit from
such works and costs.
2. The employer may demand delivery of all materials and drawings relating to the
work, provided that he pays a fair consideration.
3. These provisions shall also apply where the contractor has commenced the work but
becomes unable to complete it due to a foreign cause beyond his control.

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Article 707
1. The employer may withdraw from the contract and stop the work at any time prior
to its completion, provided that the contractor shall be indemnified for all expenses
incurred, all works completed, and any profit he could have made had the work been
completed.
2. The court may reduce the indemnity payable for the profit missed by the contractor
if the circumstances make such reduction fair. In particular, the court shall reduce such
indemnity to the extent of the costs saved by the contractor due to the withdrawal
from the contract by the employer and the profit made by the contractor by applying
such time to other work.

Article 708
1. Where the contract is made on an estimated measurement basis and, during the
progress of the work it is deemed necessary to exceed the assessed measurements to
execute the agreed design, the contractor shall notify the employer thereof, stating
the extent of the increase in costs. Failure to do so shall result in the contractor losing
the right to reimbursement for the extra costs incurred.
2. Where such extra costs required for the execution of the design are substantial, the
employer may withdraw from the contract and stop such execution without delay,
provided that the contractor is paid for the works completed by him, assessed in
accordance with the conditions of the contract, without any indemnity against the
contingent profit of the contractor in the event of completion of the work.

Article 709
Where the contract is made for a lump sum on the basis of a design agreed with the
employer, the contractor may not demand any increase in his dues as a result of any
amendment or addition to such design, except if caused by or on behalf of the
employer, and the employer shall agree with the contractor on the extra amount in
connection with such amendment or addition.

Article 710
Where a building or other structure is constructed on land owned by the employer and
there are substantial defects therein to the extent as described in clause 1 of Article
694 herein, and the removal of such building or structure may result in serious
damage, the employer may only demand a reduction in the dues of the contractor or

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require him to repair such damage in accordance with the provision of clause 2 of the
said Article, subject to the employer's right to indemnity, if any.

Article 711
1. The contractor and the engineer shall be jointly liable for any collapse or defect,
either in whole or in part, of the buildings or other fixed structures constructed by
them, even if such collapse or defect arises from a defect in the land itself or the
employer has authorized such defective buildings or structures. Such liability shall
include any defects that may appear in the buildings or other structures which may
threaten the safety and stability thereof.
2. Where the parties intend that the buildings or structures remain on the land for less
than ten (10) years, liability shall be valid during any shorter period. In all events, the
term shall commence from the date the work was awarded.
3. The provisions of this Article shall not apply to any right of recourse by the
contractor against the subcontractors.

Article 712
1. Where the work of the engineer is limited to the design of the building or structure
in whole or in part, the contractor shall be liable for such defects that may arise from
the design but not for defects due to the method of construction and execution.
2. Where the employer assigns the engineer to supervise the execution in whole or in
part, such engineer shall also be liable for such defects that may arise from the method
of execution supervised by him.

Article 713
1. The contractor shall be liable only for defects of execution to the exclusion of
defects from faulty design, unless such defects can be reasonably detected by the
contractor according to professional practice.
2. However, the contractor shall be liable for defects arising from the design if the
engineer who prepared the design is employed by the contractor.

Article 714
An action for liability shall prescribe after the expiry of three years from the time of
the collapse of the building or structure or the detection of a defect therein.

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Article 715
Any provision intended to discharge the contractor or the engineer from liability or to
limit such liability shall be void.

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