Defining Force Majeure in UAE Law
In the UAE, the concept of Force Majeure is primarily governed by Federal Law No. 5 of 1985 (Civil Code). Article 273 stipulates that if a force majeure event renders the performance of a contract impossible, the corresponding obligation is extinguished and the contract is rescinded. However, the legal threshold for 'impossibility' is high, requiring the event to be unforeseeable and unavoidable.
Force Majeure vs. Exceptional Circumstances
It is vital to distinguish between Article 273 (Force Majeure) and Article 249 (Exceptional Circumstances). While Force Majeure deals with absolute impossibility, Article 249 addresses situations where performance remains possible but becomes 'oppressive' for the debtor. In such cases, the court has the discretionary power to rebalance the contractual obligations to a reasonable level, rather than terminating the contract entirely.
Practical Application and Judicial Discretion
During the COVID-19 pandemic, UAE courts scrutinized whether the disruption was truly external or if it fell under normal commercial risk. Parties seeking relief must demonstrate a direct causal link between the event and their inability to perform. Legal practitioners advise a thorough review of specific 'Force Majeure' clauses in contracts, as these often define the scope and notice requirements that override general statutory provisions.