This Practice Note sets out key considerations for the drafting and operation of hardship clauses, culminating in a step-by-step framework to assist practitioners in navigating hardship events from trigger identification to available remedies.

In the current climate of geopolitical instability, supply chain disruption, and sustained economic volatility, hardship clauses have assumed renewed relevance. Recent events affecting global trade flows and cost structures have highlighted a recurring issue for contracting parties: performance may remain possible, yet only at a materially increased cost or under significantly altered economic conditions. The question is no longer whether obligations can be performed, but whether the contractual balance can be maintained. This issue is particularly relevant in Middle East jurisdictions, where long-term contracts in sectors such as energy, infrastructure, and supply chains are especially exposed to economic disruption.