Force Majeure and Exceptional Circumstances Under Kuwaiti Law: Managing Contractual Disruption Amid Regional Tensions
Recent geopolitical tensions in the Gulf region have affected contractual performance across multiple sectors. Parties to contracts in Kuwait may encounter situations where performance becomes impossible, or technically possible but unexpectedly onerous or burdensome.
In such cases, Kuwaiti law provides mechanisms, including force majeure and exceptional circumstances (hardship), which may provide relief to affected parties.
Force Majeure Under Article 215
The concept of force majeure is established by Article 215 of the Kuwait Civil Code. It provides that where performance of a contractual obligation becomes impossible due to circumstances beyond the control of the obligated party, and which could not reasonably have been foreseen at the time the contract was entered into, the obligation is extinguished and the contract terminates automatically.
Where impossibility is partial, the obligor may perform the remaining obligations of the contract or seek termination of the affected portion. Temporary impossibility may justify suspension of obligations until the circumstances cease.
Exceptional Circumstances / Hardship Under Article 198
Where performance remains technically possible but has become disproportionately burdensome, relief may be available under Article 198 of the Civil Code, which allows courts to equitably re-balance contractual obligations.
Article 198 is a matter of public policy, so relief may apply regardless of contractual provisions to the contrary.
Practical Considerations for Kuwaiti Contracts
Parties should review their contracts carefully, as specific terms may affect their ability to rely on force majeure or exceptional circumstances. Common challenges include:
- contractual notice requirements (e.g., form, timing)
- specific procedural obligations when invoking force majeure or hardship
Proactively reviewing contractual exposure and obligations can help parties manage risk in the current regional environment.
How we can assist
ASAR advises clients on Kuwaiti law regarding contractual disruption, force majeure, and exceptional circumstances. Our team can assist with:
- reviewing contracts to assess the applicability of force majeure or hardship provisions
- advising on rights and obligations under Kuwaiti law in light of regional disruptions
- supporting negotiations with counterparties
- providing representation in litigation or other dispute resolution where necessary
For further information or assistance, please contact ASAR Kuwait at asar@asarlegal.com.
