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ARTICLE · 21 SEPTEMBER 2017

Project Finance

What are the key differences in the legislation in this jurisdiction and other key international jurisdictions?

LebanonFinance and Banking

1. What are the key differences in the legislation in this jurisdiction and other key international jurisdictions?

Lebanon is considered to be a civil law country. Indeed, the Lebanese legal system is based on/inspired mainly by the legal system in France, even though few Ottoman and Islamic legal principles apply on few matters. The Code of Obligations and Contracts (COC), which is the prevailing legislation, was promulgated in 1932, under the French mandate over Lebanon. The said code is the equivalent of the French Civil Code. However, the COC does not apply on personal status matters (such as marriage/divorce, inheritance etc) which are governed by the laws set by the 18 sects recognised in Lebanon. According to the COC, parties are free to structure contracts/projects as they see fit provided such contracts/projects do not violate or contradict mandatory legal provisions, public order, morality or core public policy.

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