Article 113 of the Saudi Civil Transactions Law
المادة 113 من نظام المعاملات المدنية · الفرع السادس: فسخ العقد وانفساخه أولًا: الإقالة
The article provides that termination of a contract does not remove a dispute-settlement clause or a confidentiality clause, unless the parties agree otherwise and without prejudice to statutory provisions.
Official text (Arabic)
This article has not been amended since the law was issued.
دون إخلال بالنصوص النظامية، لا يزول بفسخ العقد شرط الالتزام بتسوية المنازعة ولا شرط الالتزام بالسرية؛ ما لم يتفق على خلاف ذلك.
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 113 explained in plain English
Some may think that terminating a contract ends all its terms, but this article excepts two types of clauses that remain in force despite termination:
- The clause obliging dispute settlement: the term that sets how disputes between the parties are resolved.
- The confidentiality clause: the term that obliges the parties not to disclose certain information.
The logic is clear: a dispute over the termination itself needs the dispute-settlement clause so that it is resolved in the way the parties agreed, and confidential information still needs protection after the relationship ends.
The text states two qualifications to this rule:
- Without prejudice to statutory provisions: the rule is applied having regard to what other laws provide.
- Unless otherwise agreed: the parties may agree that these clauses lapse upon termination.
The rule is linked to Article 112, which deals with the effect of termination on the specific successor, and to Article 114, which allows each contracting party in bilateral contracts to withhold performance as long as the other withholds.
Anyone who drafts a commercial contract or faces a dispute after a contract is terminated should review the dispute-settlement and confidentiality clauses and consider consulting a lawyer who specializes in commercial cases.
Practical example
Two companies in Jeddah concluded a cooperation contract that included a confidentiality clause and a clause setting the method of dispute settlement, and the contract was then terminated. Both clauses remain in force, so each company stays bound by confidentiality, and any dispute over the termination is resolved in the agreed way, unless they agreed otherwise.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentA question about Article 113 of Civil Transactions Law?
Describe what happened and specialist lawyers answer. You can write in English.
- Completely free
- Lawyers from the directory answer
- Your name stays hidden
Civil Litigation & Compensation lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Civil Litigation & Compensation lawyers
Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Active contributor
Unwan Law Firm
Frequently asked questions about Article 113 of the Saudi Civil Transactions Law
Does a confidentiality clause remain after a contract is terminated?
Yes. The confidentiality clause does not lapse on termination of the contract unless otherwise agreed, and without prejudice to statutory provisions.
Does the dispute-settlement clause fall away if the contract is terminated?
No. The clause obliging dispute settlement does not lapse on termination unless otherwise agreed, and without prejudice to statutory provisions.
Can the parties agree that these clauses lapse on termination?
Yes. The text provides that they remain unless the parties agree otherwise.
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.