By Lawyer Nuwair Al-Azmi – Dar Al Muhama Law Firm Since the escalation of tensions and armed conflicts in the region, particularly those associated with Iran and their impact on the Gulf states, direct economic repercussions have emerged across various sectors, most notably the food and restaurant industry. These developments have led to heightened market uncertainty, increased demand for food commodities, and disruptions in supply chains due to transportation and shipping restrictions, as well as rising import costs. Consequently, this has contributed to inflation in prices at both the local and global levels. Economic analysts have observed that geopolitical crises, such as wars, result in sharp fluctuations in food prices driven by fears of supply shortages, even where sufficient stock is available. From a legal perspective, such circumstances may be classified under the doctrine of exceptional circumstances, defined in jurisprudence as: “the occurrence of general, exceptional events after the conclusion of the contract and prior to its execution, which could not have been foreseen by the contracting parties, and which render the performance of the obligation excessively burdensome for the debtor without making it impossible.” Pursuant to Article 198 of the Kuwaiti Civil Code, this doctrine may be applied to food supply contracts for restaurants, particularly in cases where fixed prices were agreed upon, followed by a sudden and substantial increase in costs due to war. Such a situation imposes severe financial strain on the supplier and exposes them to significant losses. Wars are among the most prominent examples of general exceptional circumstances, as they are: • Unforeseeable at the time of contracting • Beyond the control of the parties • General in nature, affecting an entire region or multiple states Accordingly, the impact of regional conflict has resulted in increased transportation and insurance costs, delays in shipments, and disruptions in logistics, thereby rendering the performance of contractual obligations under their original terms onerous, though not impossible. In this context, the application of the doctrine of exceptional circumstances does not extinguish the obligation; rather, it grants the court the authority to adjust the contract in order to restore equilibrium between the parties. This may include reducing the obligation or increasing the consideration to a reasonable level, in pursuit of fairness and justice. From another perspective, these circumstances may also be examined under the concept of force majeure, as provided in Article 215 of the Kuwaiti Civil Code, which defines it as: “an external event that cannot be foreseen or averted, rendering the performance of the obligation impossible.” The conditions for force majeure are as follows: • The event must be beyond the debtor’s control • It must be unforeseeable • Its effects cannot be prevented or mitigated Although wars may constitute force majeure, their application to restaurant contracts varies depending on the circumstances. Given the continued importation of food supplies and the availability of strategic reserves within the state, performance is generally not rendered impossible but merely burdensome. Therefore, the doctrine of exceptional circumstances is more likely to apply than force majeure in most cases. The law further distinguishes between partial and total impossibility. Wars may lead to partial disruption in supply or increased costs without entirely preventing performance. With regard to contractual agreements between the parties: • The doctrine of exceptional circumstances is a matter of public order and may not be contractually excluded • Force majeure, however, is not a matter of public order, and the parties may agree on the allocation of its risks, as stipulated in Article 295 of the Kuwaiti Civil Code In practice, food agencies and suppliers to restaurants have been significantly affected by these conditions. They have encountered difficulties in fulfilling agreed quantities due to price increases and unstable supply chains. Additionally, rising operational costs, such as transportation and storage, have negatively impacted the financial balance of contracts. Conversely, restaurants themselves have also been affected, facing an imbalanced economic equation characterized by rising costs and stable or declining revenues. This has led many establishments to modify their business models or renegotiate supply contracts. In conclusion, wars and regional tensions, particularly those impacting the Gulf region, are among the most significant factors affecting the stability of contracts, especially within the restaurant sector. The Kuwaiti Civil Code plays a vital role in addressing such situations through the doctrines of exceptional circumstances and force majeure, thereby ensuring balance and fairness between contracting parties.