The Emperor’s New Clothes: Time Bar Clauses in Construction Contracts Between Legal Tradition and Good Faith

In: Arab Law Quarterly
Haitham A. Haloush Associate Professor of Law, Department of Accounting, Faculty of Economics and Administrative Sciences, The Hashemite University P.O. Box 330127, 13133 Zarqa Jordan

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There is no clear provision in how the Jordanian Civil Code deals with the principles of good faith and freedom of contract. Interpretations can go either way, although there is a notable tendency that gravitates towards good faith. One significant aspect of the principle of good faith is that it provides a solid ground of contractual and legal interpretation of controversial construction issues such as time bar clauses. This research highlights how time bar clauses in construction contracts may affect the rights and responsibilities of Employers and Contractors under the Jordanian law. Often application of the principle of good faith produces a result similar to that under time bar clauses in FIDIC rules. As far as the author is aware, this issue has not been researched comprehensively before from technical and legal standpoints. This article represents a first attempt to examine the issues arising in this difficult and important subject.

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