Limitation of Liability Under Qatar Law

Analysis

When drafting or reviewing contracts, one issue which generally attracts a great deal of discussion is the level of liability, and in particular exclusions from, and caps or limitations of, such liability.

The "General Principle" enunciated under Articles 171 and 172 of Qatar Law No. 22/2004 (the Civil Code) is akin to the common law freedom of concept principle. In essence, Qatar law generally upholds the terms of an agreement governing the relationship between parties.

Article 171(1) states:

“A contract is the law of the contracting parties and so cannot be revoked or modified except with the agreement of the parties or for such reasons as prescribed by law.”

Essentially, therefore, parties are able to agree the provisions of any contract which govern the relationship between them, including those relating to liability.

Article 172(1) reiterates this principle by stating that:

“A contract must be executed in accordance with the contents thereof and in a way that is consistent with the requirements of good faith.”