Civil Law
The Effect of Contracts on the Contracting Parties under Jordanian Law
This summary explains how a valid contract creates immediate rights and obligations between the contracting parties under the Jordanian Civil Code, and outlines when those contractual effects extend to general and special successors and what limits apply. It refers to relevant statutory provisions and case law to clarify practical and procedural implications.
Updated: 24 July 2022
Prepared and reviewed by: Ashraf Al-Khawaja
Concept of Contract and the Basis of Obligation
Under Jordanian law a contract is formed by the matching of offer and acceptance and produces legal effects in respect of the agreed subject if the validity requirements are met (see Art. 87 Civil Code). Practically this means parties’ rights and duties arise upon formation of a valid contract and do not depend on subsequent delivery or performance unless statute or the contract provides otherwise. Procedurally, each dispute requires close examination of the contract wording, its formal requirements and any specific exclusions.
Effects of the Contract on the Contracting Parties and Practical Types
A valid contract imposes binding obligations on each party for the other's benefit, and the concrete effects depend on the contract type. In property contracts (sale, gift) ownership transfers under Art. 200, whereas contracts conferring use (lease, loan for use) allow enjoyment subject to preservation and restitution duties per Art. 201. In assignments the assignee acquires the right against the obligor and the assignor is released if the assignment is valid, while guarantees and encumbrances remain in place. Employment and deposit contracts create specific bilateral duties (performance, confidentiality, safekeeping and return). Practically, enforcement and performance require review of the contract terms, any timing conditions and attached securities.
Extension of Contractual Effects to General Successors and Resulting Limits
As a general rule contractual effects extend to the deceased party’s general successors: rights and obligations pass to heirs subject to inheritance rules and estate limits (Art. 206). In practice heirs may enforce receivables due to the decedent but are not personally liable beyond the estate for the decedent’s debts. Exceptions arise where the contract expressly excludes succession of its effects, where the nature of the right precludes transfer (e.g. certain personal usufructs terminating on death), or where statute provides for termination on death. Therefore each situation requires checking the contract wording, the character of the right and applicable statutory rules.
Extension of Contractual Effects to Special Successors and Its Conditions
A special successor receives ownership of a specific thing or a real right (e.g. a buyer or donee). Rights and obligations connected to that thing pass to the special successor when they are accessory to the thing and pre-exist the transfer, as set out in Art. 207. Practically, conditions for such transfer are: the connection of the rights/obligations to the transferred thing, that they form accessories or essentials of the right, the successor’s actual knowledge of them at the time of transfer, and that the contract creating them predates the transfer. Procedurally this requires proof of the link between the right and the asset, timing of the contract, and evidence of the successor’s knowledge; absent such proof the accessory rights or burdens may not bind the transferee.
Case Law and Practical References
The Court of Cassation has reiterated these principles in recent decisions: in Judgment No. 1808/2021 the court applied the rule that contractual effects extend to the contracting parties and the general successor unless the contract, the nature of the transaction or statute indicate otherwise (Art. 206). In Judgment No. 3094/2019 the court confirmed that personal rights connected to a thing transfer to a special successor when the statutory conditions are met and the successor had knowledge (Art. 207). Practically, these precedents underline the need to rely on statutory text, contract terms and proof of knowledge when resolving disputes over transfer of contractual effects.
Legal notice
Disclaimer: The above content is for general educational purposes and is based on the original source linked on the publication page. It does not substitute reviewing the applicable statutory texts or consulting a licensed Jordanian lawyer; laws, amendments and judicial timetables should be verified in the official texts before taking any action.
Sources and references
Verify the official text and latest amendments before relying on this material professionally.