The Limits of Recompense in the Contractual Liability in Jordanian Civil Law

Objective: In the initial portion, the researcher examined the notion of the contract as a foundation for contractual liability, elucidating the principle of the parties' intention and the position of the Jordanian Civil Law on it, as well as the prerequisites and fundamental elements of contractual liability. Theoretical Framework: In the second segment, I examined the evaluation of compensation in contractual liability through the employment of penalty clauses, as well as the legal characteristics of penalty clauses according to Jordanian Civil Law. The third segment examined the boundaries of compensation in contractual liability, specifically addressing the scope of damages in the initial claim and the criteria for determining damages in a subsequent claim. According to Article 363 of the Jordanian Civil Law, in cases of contractual liability, the debtor is responsible for compensating only the direct damages that were reasonably foreseeable at the time of contracting. However, if the debtor has committed fraud or a serious error, they may be held liable for additional damages. Method: the researcher has dealt with these concerns by referring to Articles 360-364 of the Jordanian Civil Law, which establish that a contract is regarded as a legal agreement between the parties involved, determining its enforceability. Results and Discussion: In the conclusion, I presented a comprehensive overview of the research, which covered the topics of contractual liability in Jordanian Civil Law, the definition and types of compensation, judicial interpretations regarding the extent of compensation, and important findings and recommendations for Jordanian lawmakers to take into account. Research Implications: That all legislation considers damages as a prerequisite for the accrual of compensation in contractual liability. However, it is argued that compensation under contractual liability should not be awarded on the basis of the damage caused to the debtor. The relationship between the parties is contractual, and the right to compensation arises for the breach of this relationship without waiting for any damage incurred by the debtor, and the Jordanian civil code, in Article 364, grants the judge the authority to amend the penal clause by increasing or decreasing it, therefore he is not bound by the principle of the will of the parties. It should be noted that the Jordanian civil code, in Article 363, limits compensation to direct damages that were foreseen only at the time of the conclusion of the contract, without specifying the criterion that the court uses in assessing whether the damage was foreseen or unforeseen. Originality/Value: This research focused on the extent of compensation in contractual liability.