Egypt: Compensation According To Egyptian Laws

Last Updated: 5 February 2019
Article by Youssry Saleh & Partners

High volume of daily commercial transactions in the economic environment globally and locally requires protection by the law to the interest of damaged parties due to breaching of agreements concluded between them. Therefore, the Egyptian Law defined that civil liability as the obligation to compensate for the damage caused by a breach of the original obligation, the original obligations arising from the contract, and others from the law.

Such civil liability may be due to a contractual relationship or due to a non-contractual "tort". Both are regulated by the Egyptian Civil Code No. 131 of the year 1948.

The Egyptian Civil Code regulates tort liability for damages to third parties in Articles 163 to 178. The Liability either be of personal act, which is regulated in Articles 163 to 172, or liability for others' act which is regulated in Articles 173 to 175 and liability for damages of things that has to be guarded regulated in Articles 176 to 178. According to the Law, the damaged party of the aforementioned liabilities are entitled for compensation.

As mentioned before, the civil liability is divided into contractual or non-contractual liability. The first is that the obligation arising from the contract in case of not implementing the contract in the agreed manner. While the non-contractual or tort liability is based on a legal obligation derived from the provisions of the law, to compensate the injured person without a contractual relationship for example, the responsibility of the driver of the vehicle to injuring a passerby or killing him or the neighbor's responsibility for the demolition of the neighboring house during the restoration of his home.

The aforementioned Law in Article 165 stated the situations that might not lead to compensation for the damages, only if the person proves that the prejudice has resulted from an external cause, which is out of his hands, such as a surprising event, force majeure, the fault of the injured, or the fault of a third party. In such a case the default party shall not be obliged to compensate the damage occurred, unless there is a provision or an agreement to the contrary.

In addition to that, Article 170 stated that "The judge evaluates the extent of damages related to the damage occurred by the injured party. According to the rules prescribed by Articles 221 and 222, the default party shall take associated circumstances into his consideration, if, at the time of the ruling, it has not been possible for him to make a final determination of the extent of damages, he will allow the injured to demand, within a given period to review, the evaluation of the extent of damages."

The Civil Code also stipulated in Article 171, the way of compensation by the judge as "1- The judge determines the mean of compensation according to circumstances. It is admissible that the damages be payable by installments, or it also may be salary income. In both cases, it is admissible to order the debtor to provide a guarantee.

2- The damages shall be evaluated in money, nevertheless the judge is allowed, according to circumstances and upon the demand of the victim, to order the execution of a given act which is relating to the tortuous act as a mean of compensation".

Compensation in the tort liability is wider than in the contractual responsibility. In the first instance, the debtor is liable to compensate for the direct damage, whether expected or unexpected, while the compensation does not cover the contractual liability, but the damage usually expected at the time of conclusion of the contract. The Law stated in Article No. 217 "1- It is admissible to agree that the debtor shall bear the consequences of the surprising event or the force majeure.

2- It is also admissible to agree to exempt the debtor from any liability arising out of the non-performance of his contractual obligation except the one arising out of his fraud or his severe fault. Nevertheless, the debtor may stipulate his discharge from any liability arising out of the fraud or the severe fault of persons employed by him to perform his obligation.

3- Any agreement as to the discharge from the liability arising out of the unlawful act is void".

The Civil code also stated important rule to apply compensation, which is summoning the other party to execute his obligation unless otherwise stated between the parties according to Article 218. Moreover, in Article 220 the law specified the following as a reason for not summoning the other party:

1- If the execution of the obligation becomes impossible or without interest because of an act of the debtor;

2- If the subject matter of the obligation is the recovery of an injury resulting from an unlawful act;

3- If the subject matter of the obligation is the restitution of a stolen thing known as such by the debtor, or something, which has been unduly received by the debtor who is aware of such undue receipt;

4- If the debtor declares in writing that he is not going to perform his obligation.

Moreover, Article 221 regulated the way of determining the proper compensation as follows "1- If the amount of damages is not determined by the contract or by a law provision, the judge shall determine it, it includes the loss suffered by the creditor and the gain missed by him, provided that this is a natural consequence of the non-performance of the obligation or the late performance, the prejudice is deemed to be a natural consequence if it has not been possible for the creditor to prevent it by the exercise of a reasonable effort.

2- However, if the source of obligation is the contract, the debtor who does not commit a severe fault or fraud shall be only liable to the extent of the foreseeable prejudice at the time of the conclusion of the contract."

Moral damages are also subject to compensation according to Article 222, which determines who has the right to claim compensation as it is not admissible to award damages except to spouses or relatives until the second degree as for the pain suffered by them from the death of the injured person.

According to Articles No. 226 and 227, if the subject matter of the obligation is an amount of money, ascertained at the time of the claim, the debtor when delayed in respect of the payment of such amount shall pay the creditor as a compensation for the delay interests at the rate of 4% in respect to civil obligations and 5% in respect to commercial obligations with a maximum of 7%. Interests will be calculated from the date of their judicial claim, unless the agreement or the custom, which determines another date, the rules previously mentioned apply unless otherwise provided by the law.

Finally, although the law regulated the civil liability and the compensation entitled to the injured person, the contractual parties shall stipulate in their commercial transactions a compensation clause to determine specifically when, and who will be subject to compensation, in addition to the notice period or the way to summon the defected party in order to make sure not lose their rights of Moral and Material compensation.

The Lapse of Prescription Period

Article 172:

"1- The damages action extinguishes by prescription by the elapse of three years from the day on which the victim has been aware of the occurrence of the prejudice and the responsible person of such prejudice. The action shall extinguish, at all events by the elapse of fifteen years from the occurrence of the tortuous act.

2- Nevertheless, if the case is arising out of an offense, and the criminal action has not been yet extinguished after the expiration of the periods mentioned in the above paragraph, the damages action shall not extinguish unless by the extinguishment of the criminal action."

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions