Performance Bonds in Qatar: Contracts Strike Back
Type
E-journal
Date
2 May 2016
Jurisdiction
Qatar
Taxonomy
General Contract Law
Copyright
LexisNexis
Relevant company
Al Tamimi & Company
Analysis
Queries raised by our clients in recent months, and discussions in wider industry circles in Qatar would indicate that there is a high incidence of seemingly-arbitrary calls on Performance Bonds, causing real headaches to main and sub-contractors in this jurisdiction.
In light of the importance of this topic, this article intends to shed some light on the treatment of Performance Bonds under Qatari law. In particular, we will identify the ways in which a contractor may resist the arbitrary encashment of such instruments.
The Nature of the Performance Bond under Qatari Law