In the context of Iran‑linked hostilities and the force majeure declarations by Iraq and Qatar on oil‑supply contracts to the EU, contractors increasingly face a crucial question: is the disruption force majeure or hardship? The answer has a direct impact on whether you can stop performance, claim an extension of time, or simply request a price adjustment.

With the escalation of hostilities involving Iran and its regional impact, contractors are increasingly asking whether war or armed conflict can be treated as a force majeure event in their Saudi‑law contracts. The answer is yes—but only if strict legal conditions are met.

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.

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.

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.