Article 110 of the Saudi Civil Transactions Law
المادة 110 من نظام المعاملات المدنية · الفرع السادس: فسخ العقد وانفساخه أولًا: الإقالة
The article provides that a bilateral contract terminates automatically if performance becomes impossible for a reason beyond the debtor's control, and sets the rules for partial and temporary impossibility.
Official text (Arabic)
This article has not been amended since the law was issued.
1- في العقود الملزمة للجانبين، إذا أصبح تنفيذ الالتزام مستحيلًا بسببٍ لا يد للمدين فيه، انقضى التزامه والالتزام المقابل له، وانفسخ العقد من تلقاء نفسه.
2- إذا كانت الاستحالة جزئيَّةً انقضى الالتزام في الجزء المستحيل وما يقابله فقط، ويسري هذا الحكم على الاستحالة الوقتية في العقود الزمنية، وفي كلتا الحالتين يجوز للدائن طلب فسخ العقد، وللمحكمة رفض طلب الفسخ إذا كان القدر المستحيل قليل الأهمية بالنسبة إلى الالتزام.
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 110 explained in plain English
This article addresses a situation in which performing the contract becomes impossible for a reason beyond the debtor's will, in bilateral contracts.
Total impossibility (paragraph 1): if performing the obligation becomes impossible for a reason beyond the debtor's control, then:
- The debtor's obligation is extinguished.
- The corresponding obligation is also extinguished.
- The contract terminates automatically, without need for a request.
Partial and temporary impossibility (paragraph 2):
- If the impossibility is partial, the obligation is extinguished only as to the impossible part and its counterpart, and the contract remains for the rest.
- The same rule applies to temporary impossibility in time-based contracts (contracts in which time is an element, such as a lease).
In both of these cases the creditor may request termination of the contract, and the court may refuse the request for termination if the impossible portion is of little importance relative to the obligation.
The important difference here is that termination in total impossibility occurs automatically, whereas in partial or temporary impossibility the contract remains in force apart from the impossible part, and termination requires a request from the creditor. In all cases the text requires that the cause be beyond the debtor's control.
Article 111 deals with the effects of termination and of automatic termination and the return of the parties to their position before contracting. In a dispute over whether impossibility occurred or its cause, consider consulting a lawyer who specializes in civil or commercial cases.
Practical example
An establishment in Riyadh leased a warehouse for a year, and the warehouse then became unusable for two months for a reason beyond the lessor's control. This is temporary impossibility in a time-based contract, so the obligation is extinguished for those two months together with the corresponding rent. The establishment may request termination, and the court may refuse it if the impossible portion is of little importance.
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 110 of the Saudi Civil Transactions Law
What happens to a contract if its performance becomes impossible?
If the impossibility is for a reason beyond the debtor's control, his obligation and the corresponding obligation are extinguished and the contract terminates automatically.
What is the rule for partial impossibility?
The obligation is extinguished only as to the impossible part and its counterpart; the creditor may request termination, and the court may refuse it if the impossible portion is of little importance.
Does the rule apply to temporary impossibility?
Yes. In time-based contracts, the rule on partial impossibility applies to temporary impossibility.
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.