The Egyptian legal system, similar to most civil law systems, the French Civil Code (Code Napoleon), which is based on a civil code that covers human rights, contract law, obligations and elements of civil liability. And since human beings created the idea of contracts as a legal means of defining the framework, content and effects of their agreements, this idea has been confined to the framework of civil law. All contracts are subject, without exception, to the provisions of this Law, regardless of the persons of the contractors, and therefore all contracts concluded by the State or one of its legal persons are subject to the same legal and judicial regime applicable to the rest of the contracts. But as the modern state moved away from the idea of the custodial state to the intrusive idea of the state in most areas, it became necessary to establish rules specifically governing administrative contracts, even if the rules differed from those of civil law.
In 2018, a new law was enacted in Egypt on the regulation governing contracts entered into by public authorities (Law no. 281 of the year 2018 on October 3, 2018) and which had intrinsic objectives such as:
The organization of procedures for the planning and execution of public power contracts and monitoring the execution of these contracts;
Develop harmonized methods of sales and purchases and more modern and efficient methods in order to have the capacity to meet contemporary needs;
Achieve efficiency and improved control of public funds;
Reinforcement of governance principles, application of publicity standards, transparency, integrity, freedom of competition, equality and prevention of conflicts of interest;
Prevent practices of collusion, fraud, corruption and contempt
Application of modern management methods and beginning to computerize contracting methods;
Thanks to this reform, we have seen a remarkable progress in the matter by seeing all the new projects that the government is finalizing by contracting with companies either national or international, especially in the five previous years.
In 2018, a new law was promulgated in Egypt on the regulation of contracts concluded by public authorities (law no. 281 of the year 2018 on 3 October 2018) and which had intrinsic objectives such as:
Thanks to this reform, we have seen remarkable progress in this area by seeing all the new projects that the government is finalizing by contracting with companies that are either national or international, especially in the previous five years.
At ALZAYAT Law Firm, we advise on all categories of contracts such as, for example, contracts with competition law issues, including the review of potential anti-competitive agreements and practices, advice on the implications of trade agreements and customer support by preventing their suppliers, customers and competitors from engaging in anti-competitive activities, strategies and/or practices against their businesses.
In addition, our advice to our clients covers a wide range of public law contracts, including concession contracts, supply contracts, transport contracts and public procurement contracts. We believe in strategic alliance as a means of doing business, understand its importance to our clients’ businesses and have significant experience in implementing strategic alliances through joint ventures.
Moreover, in accordance with Egyptian Civil Code No. 131 of 1948 (the “Civil Code”), the legal effect of a contract applies only to those parties in which the rights and obligations arising out of that contract are enforceable only against those parties. That said, the said legal effect will not be applied to a third party whether those effects are rights or obligations and whether the source of the obligation is a formal or informal act, unless there was a contrary consent between the parties. This general principle is also confirmed by several judgments. As a result, failure to comply with contractual obligations incurs the liability of the offending party and our team is willing to assist you in claiming such contractual obligation regardless of the category of contract.
On the other hand, the new Importer Register Law (Act No. 7 of 2017) has liberalized the Egyptian market for foreign investors. The new law opens the door to foreigners to import and trade in Egypt by giving them the right to hold up to 49% of the shares of trading companies. Prior to 2017, importers were required by law to be 100% owned by Egypt. We represent our clients in the application for import and export permits to the General Organization for Export and Import Control (GOEIC). Our lawyers also represent factories, manufacturers or brand owners of regulated products with registration with GOEIC in order to continue exporting to Egypt. Registration can be done either by factory or brand.
And seeing that international trade law is a set of legal rules, conventions, treaties, national laws and commercial customs that govern international business transactions or affairs. We advise our clients on international commercial transactions if several countries are involved.
Our team of experienced lawyers at ALZAYAT Law Firm regularly intervenes in all aspects of administrative contracts for companies and individuals and works closely with financial advisors/consultants, receivers and managers, liquidators and special administrators in these matters. Our services include legal advice on seeking appropriate approvals, conducting due diligence exercises, and drafting and negotiating debt restructuring agreements. We also advise and enforce the rights and remedies available to creditors or take action against companies before the courts and other remedies.
Given the above considerations, the parties must carefully check the clauses and conditions required in order to win the contract in question and the request for legal advice will help. Our team of lawyers works, in principle, for your benefits.
ALZAYAT international law firm is one of the few major law firms with a sophisticated worldwide Private Clients practice. Our unparalleled global resources allow us to provide one-stop, comprehensive service to meet all of our clients’ needs, wherever in the world their assets or family members may be. They also make us uniquely qualified to handle complex, multijurisdictional disputes that is why our clients have selected us to handle some of the largest cases in this field.
For any further inquiries please don’t hesitate to reach out for us.