Civil Transactions Law (17): Simulated Contracts

The Civil Transactions Law regulates cases involving simulated contracts as follows:

1. Creditors of the contracting parties and special successors who acted in good faith may invoke the apparent (simulated) contract, and they may also rely on the concealed (real) contract and are entitled to prove the simulation of the contract if it has caused them harm.
2. In case of a conflict of interest between concerned parties, where some invoke the apparent contract and others invoke the concealed contract; priority shall be given to those relying on the apparent contract.
3. If the contracting parties conceal a real contract behind a simulated (apparent) one, the real contract shall prevail between the contracting parties and their universal successors.

Legal disclaimer: The information published on the website and social media platforms of Eyad Reda Law Firm LLP ("the Firm") is provided for general informational purposes only and does not constitute legal advice or a legal opinion. Use of this information does not create a lawyer–client relationship. While the Firm strives to ensure the accuracy of the content, it accepts no liability for any loss or damage arising from reliance on it. Users are advised to obtain specialised legal advice by submitting a formal request through the Firm's approved communication channels.

All publications