Article 109 of the Saudi Civil Transactions Law
المادة 109 من نظام المعاملات المدنية · الفرع السادس: فسخ العقد وانفساخه أولًا: الإقالة
The article provides that exchange contracts are concluded on the basis that the subject matter is free of defects except what custom tolerates, and that an intolerable defect is a breach of the obligation.
Official text (Arabic)
This article has not been amended since the law was issued.
تُعدُّ عقود المعاوضات منعقدةً على أساس سلامة محل العقد من العيوب إلا ما جرى العرف على التسامح فيه، فإذا تبيَّن في المحل عيبٌ لم يجر العرف على التسامح فيه؛ عُدَّ ذلك إخلالًا بالالتزام.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 109 explained in plain English
This article sets a general rule for exchange contracts, meaning contracts in which each party takes something in return for what it gives, such as sale and lease.
The principle: soundness of the subject matter. These contracts are considered concluded on the basis that the subject matter of the contract is free of defects, even if the contract does not say so expressly. Whoever buys or leases something presumes that he is getting it in sound condition.
The exception: what custom tolerates. Defects that custom tolerates do not fall within this rule.
The effect: breach of the obligation. If a defect appears in the subject matter that custom does not tolerate, this is treated as a breach of the obligation.
This characterization matters because a breach of the obligation opens to the other party the avenues that the Law provides for dealing with breach. In Article 108, for example, it may be agreed that the creditor has the right to terminate on the debtor's breach without a court judgment. This text does not itself detail the type of remedy that follows from a defect or the time limits for claiming.
The standard the text adopts is custom: what people usually tolerate in a given type of transaction is not a breach. Anyone who discovers a defect in what they bought or leased should document the defect and consider consulting a lawyer who specializes in civil or commercial cases.
Practical example
Tariq bought a new refrigerator from a store in Dammam and found after turning it on that its compressor did not work. This is a defect that custom does not tolerate, so it is a breach of the obligation by the seller. A very minor scratch on the outer casing, of a kind custom tolerates, is not a breach.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 109 of the Saudi Civil Transactions Law
Is a defect in goods a breach by the seller?
Yes, if the defect is one that custom does not tolerate, it is treated as a breach of the obligation.
Is every defect a breach of the contract?
No. Defects that custom tolerates are excepted.
Which contracts does this article apply to?
Exchange contracts, which are considered concluded on the basis that their subject matter is free of defects.
More articles on Voidness and Termination of Contracts
- Article 49
The transactions of a minor unable to discern are void.
تصرفات الصغير غير المميز باطلة.
- Article 50
The purely beneficial transactions of a minor able to discern are valid and the purely harmful ones void; those between benefit and harm are valid, and his guardian, executor or he after majority may seek to annul them.
1- إذا كانت تصرفات الصغير المميز نافعةً نفعًا محضًا فهي صحيحة، وإذا كانت ضارةً ضررًا محضًا فهي باطلة. 2- إذا كانت تصرفات الصغير المميز دائرةً بين النفع والضرر ف
- Article 53
The transactions of a spendthrift and of a person of impaired judgment after interdiction are treated like those of a minor able to discern; before interdiction they are valid unless they resulted from exploitation or collusion.
تصرفات السفيه وذي الغفلة بعد الحجر عليهما في حكم تصرفات الصغير المميز، أما تصرفاتهما قبل الحجر فصحيحةٌ إلا إذا كانت نتيجة استغلالٍ أو تواطؤٍ.
- Article 56
If a partially incapacitated person resorts to fraudulent means to conceal his incapacity, he must compensate the other contracting party for the harm caused by the annulment of the contract.
إذا لجأ ناقص الأهلية إلى طرقٍ احتياليَّةٍ لإخفاء نقص أهليته لزمه التعويض عن الضرر الذي أصاب المتعاقد معه بسبب إبطال العقد.
- Article 57
A contracting party may seek annulment of the contract if he made a material mistake without which he would not have agreed to the contract, particularly a mistake in a quality of the subject matter, in the other party's person or quality, or in a statutory ruling.
للمتعاقد طلب إبطال العقد إذا وقع في غلط جوهري لولاه لم يرض بالعقد، وبخاصة إذا كان الغلط الجوهري في صفة المحل أو شخص المتعاقد معه أو صفته أو الحكم النظامي.
- Article 58
A contracting party's mistake is taken into account only if the other party made the same mistake, knew he had made it, or could easily have discovered it.
لا يُعتد بغلط المتعاقد إلا إذا كان المتعاقد الآخر قد وقع معه في الغلط نفسه أو علم بوقوعه فيه أو كان من السهل عليه أن يتبينه
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.