Contractual Rights And Force Majeure In Egypt

Under Egyptian law, the principle of contractual binding force requires parties to perform their obligations in accordance with the agreed terms. However, exceptional circumstances may give rise to specific legal remedies where the applicable statutory requirements are satisfied. Force majeure may exempt a party from liability or result in the extinguishment of an obligation where an external cause renders performance impossible. By contrast, where performance remains possible but becomes excessively onerous, the circumstances may fall within the doctrine of hardship under Article 147(2) of the Egyptian Civil Code.

Understanding the distinction between these doctrines, their respective legal requirements and their consequences is essential for businesses assessing contractual liability and managing risks arising from unforeseen events. The applicable legal framework also depends on the nature of the contractual obligation, the parties’ allocation of risk and any specific statutory