Commercial Contracts in Egypt

Commercial contracts in Egypt

Our Cairo branch advises on Egyptian commercial matters directly, in coordination with the Kuwait head office. We draft, review and negotiate commercial contracts of all types - for example supply, distribution, agency and services agreements - and advise on how the contract should be framed before it is signed.

The legal framework in Egypt

Commercial contracts in Egypt are governed mainly by the Civil Code (Law No. 131 of 1948) and the Commercial Law (Law No. 17 of 1999). Under Article 147 of the Civil Code the contract is the law of the parties, but a judge may reduce an obligation that has become excessively onerous because of exceptional and unpredictable events of a general character, and any agreement to the contrary is void. Article 19 lets the parties choose the law applicable to contractual obligations, with default rules if they do not; contracts relating to real property follow the law of the place where the property is. Which rules apply depends on the contract type, the parties and the chosen forum.

How we work on a contract

We start with the parties, who can sign for them, the governing law and the forum. We then review or draft the clauses that carry the risk: price and payment, delivery and acceptance, termination, liability, confidentiality and dispute resolution. Signed versions, notices and the negotiation record are kept so a later disagreement can be handled on evidence. Where a disagreement already exists, see our dispute resolution practice, or read the General Commercial & Corporate overview. To scope a specific contract, contact our team. For Egypt, every clause is read against the Civil Code and the Commercial Law.

Drafting points for Egypt

The hardship rule cannot be contracted out of, so we draft price-adjustment, force majeure and renegotiation clauses to work alongside it instead of ignoring it. We check the governing-law and forum clauses against Article 19 and match signing authority and notice details to how the Egyptian party actually operates. The work is run from our Cairo branch in coordination with the Kuwait head office.

MENA coordination

The firm was founded in Kuwait in 1986 and has a branch in Cairo. It covers MENA matters in cooperation with partner offices in Saudi Arabia, the UAE and Qatar, and partner offices in Turkey and the United States. Those partner offices are not branches owned by the firm; local licensing and advice are assessed in the relevant jurisdiction.

This page is general information, not advice for a particular entity or transaction.

Frequently asked questions

What law governs commercial contracts in Egypt?

Mainly the Civil Code (Law No. 131 of 1948) and the Commercial Law (Law No. 17 of 1999). Which provisions apply depends on the contract type, the parties and the chosen forum.

Can an Egyptian contract exclude the court's power to reduce an excessively onerous obligation?

No. Under Article 147 of the Civil Code, an agreement to the contrary is void. Parties can still draft force majeure, price-adjustment and renegotiation clauses, which operate alongside the rule.

Does the firm advise on Egyptian matters directly?

Yes. The firm has a branch in Cairo that advises on Egyptian company law, corporate governance and commercial contracts for local and international clients.

Other markets

Corporate & Commercial Law in Egypt · Commercial Contracts in Saudi Arabia · Commercial Contracts in the UAE · Commercial Contracts in Qatar · Commercial Contracts in Oman · Commercial Contracts in Bahrain