Breach of Contract Under Egyptian Law: What Are the Aggrieved Party's Rights?

If one party to a bilateral contract fails to perform, the other party may — after formally notifying the defaulting party of the default — demand that the contract be performed as agreed. This is often the option closest to the aggrieved party's interest when performance is still possible and would not impose disproportionate hardship on the other party.

Instead of demanding performance, the aggrieved party may ask the court to terminate the contract. Under Article 157 of the Egyptian Civil Code, this termination is a judicial one, requiring a court judgment, and the judge has broad discretion — they may grant the debtor a grace period to perform, or may refuse termination if what was left unperformed is a minor, non-material part of the obligation. Parties may also agree in advance, within the contract itself, on a termination clause (Article 158), without needing to file a separate lawsuit.

In some situations, the aggrieved party may prefer to simply claim monetary compensation without requesting termination or performance, particularly where continuing the contractual relationship still holds commercial value. If performance becomes entirely impossible, the general rules on termination and compensation differ and each situation requires careful individual legal assessment.

The best path depends on the circumstances of each contract: is performance still possible? Is the breach material or minor? To discuss your specific situation, you can book a consultation with our team.