# Civil Law in Iraq

Last reviewed: October 2026
Author: Othman Al-Juboori

The Iraqi Civil Code No. 40 of 1951 governs everyday dealings between people: contracts, sale and lease, compensation for damage, and monetary claims. Al-Taswia Legal Services Company advises on these matters, drafts and reviews contracts, and represents clients in civil lawsuits before the competent courts.

What We Offer in This Area
Drafting and reviewing contracts (sale, lease, contracting, partnership and supply).
Debt recovery and compensation claims.
Actions for rescission and annulment of contracts.
Formal notices and amicable settlements before litigation.
Frequently Asked Questions
Q1: What is the limitation period under the Iraqi Civil Code?

The general rule is that a claim on an obligation, whatever its source, will not be heard against a defendant who denies it once it has been left unpursued without lawful excuse for fifteen years, subject to cases governed by special rules (Article 429). Claims for periodic, recurring rights, such as rent, interest and salaries, will not be heard after five years (Article 430). Some rights have a one-year period set by Article 431, including the claims of members of the liberal professions for their work, claims of merchants for goods supplied to non-merchants, and workers' wages.Q2: How long do I have to bring a claim for compensation for damage (unlawful act)?

A compensation claim arising from an unlawful act will not be heard after three years from the day on which the injured party became aware of the damage and of the person who caused it, and in any event will not be heard after fifteen years from the day the act occurred (Article 232).Q3: Can compensation be awarded for moral (non-material) damage under Iraqi law?

Yes. The right to compensation covers moral damage: any infringement of another person's liberty, honour, dignity, reputation, social standing or financial standing makes the infringer liable for compensation. Spouses and close family members may be awarded compensation for moral damage resulting from the death of the injured person (Article 205).Q4: How does the court assess the amount of compensation?

The court assesses compensation according to the loss suffered by the injured party and the gain they were deprived of, provided this is a natural consequence of the unlawful act; loss of the use of property is included in the assessment (Article 207). The general rule is that any infringement causing harm to another requires compensation (Article 204).Q5: When can I seek rescission of a contract?

In bilateral contracts, if one party fails to perform its obligation, the other party may, after serving formal notice, seek rescission together with compensation where appropriate. The court may grant the debtor time, or refuse rescission if the unperformed part is minor in relation to the obligation as a whole (Article 177).Q6: Can a contract be modified if circumstances change significantly?

As a rule, a contract is binding, and neither party may withdraw from or modify it except by law or by mutual consent. However, if exceptional events of a general nature occur that could not have been foreseen, and performance of the obligation becomes so onerous for the debtor that it threatens serious loss, the court may, after weighing the interests of both parties, reduce the onerous obligation to a reasonable level (Article 146, the doctrine of unforeseen circumstances).Q7: What is tort liability?

It is a person's liability to compensate for damage caused to another by an unlawful act outside the scope of a contract, such as destroying another's property: the person who destroys the property is liable if they acted intentionally or by transgression (Article 186). It differs from contractual liability, which arises from breach of a contract.Q8: Which law governs real estate leases?

The Civil Code sets out the general rules on leases, while real estate leases are subject to a special law, the Real Estate Rental Law No. 87 of 1979, as amended. Under a lease, if the tenant fails to pay rent that has fallen due, the landlord may rescind the lease (Civil Code, Article 177/2).

Contact information

Al-Taswia Legal Services Company

Address: Al-Arba'a Shawari' (Four Streets), Al-Yarmouk, Baghdad, Iraq, next to Soya Restaurant

Phone: +964 771 100 2200

Email: info@al-taswia.com

Hours: Saturday–Thursday, 5:00–9:00 PM | Friday: closed

Working languages: Arabic and English

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Al-Taswia Legal Services CompanyAl-Arba'a Shawari' (Four Streets), Al-Yarmouk, Baghdad, Iraq, next to Soya RestaurantOpen in Google Maps

## Article numbers

- Article 429
- Article 430
- Article 431
- Article 232
- Article 205
- Article 207
- Article 204
- Article 177
- Article 146
- Article 186

## Disclaimer

The information on this website is general legal information provided for awareness purposes. It is not legal advice on any particular matter and does not create a lawyer–client relationship. Iraqi laws and regulations change, so please check the text in force or consult a qualified lawyer before taking any action. Legal Notice and Disclaimer