Many international contracts incorporate the ICC Force Majeure and Hardship Clause (2020 / 2023), either by reference or by adaptation or contain a force majeure clause which is drafted on the basis of the ICC Clause. Unfortunately we still see force majeure clauses poorly drafted or as a very superficial boilerplate clause.

In the context of Iran war and the force majeure declarations by Iraq and Qatar on oil‑supply contracts with EU countries, understanding this clause is critical for contractors and employers alike. Saudi Civil Transaction Law ensures that all contractual parties benefit from the same degree of legal protection and support.

Amongst its main purposes, Saudi Tender Law aims at promoting ’integrity and competitiveness, maintain equality, ensure fair treatment of bidders, in fulfilment of the principle of equal opportunity.’

Are you a foreign contractor considering participating in government tenders in Saudi Arabia?

Engaging in public procurement in the Kingdom of Saudi Arabia offers a wealth of opportunities, but it also comes with specific regulatory requirements that you need to be aware of. Navigating the legal framework effectively can be the key to getting government contracts.

The Performance Bond is called with a demand served by the beneficiary to the guarantor in order to receive the payment of the amount stated in the demand itself and within the cap set by the bond. On the one hand, it is true that such guarantee, if used fairly, represents a good protection for the beneficiary, on the other hand, there are various situations where the bond is used unlawfully.

In particular, we refer to all those cases in which the calling is considered as ‘abusive’ or ‘fraudulent’.

The Performance Bond is an autonomous guarantee at first demand which is issued by the guarantor upon instructions of a subject (for example, the seller or the contractor, so-called ‘applicant’) based on a contract stipulated between the guarantor and the applicant.

The applicant submits the request to issue the bond according to the conditions of the underlying contract stipulated between the seller/contractor and purchaser/owner and to secure the due performance in favour of the latter.