Article 146 of the Saudi Civil Transactions Law
المادة 146 من نظام المعاملات المدنية · الفرع الأول: دفع غير المستحق
Recovery of what was not due is valid if the payment was made in performance of an obligation whose cause did not materialize or ceased after materializing, or of an obligation not yet due where the payer was unaware of the term.
Official text (Arabic)
This article has not been amended since the law was issued.
يصح استرداد غير المستحق إذا كان الوفاء تنفيذًا لالتزامٍ لم يتحقَّق سببه أو زال بعد تحقُّقه، أو كان الوفاء تنفيذًا لالتزامٍ لم يحل أجله وكان الموفي جاهلًا قيام الأجل.
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 146 explained in plain English
This article sets out cases in which recovery of what was paid as payment is valid, and there are three:
- The payment was in performance of an obligation whose cause did not materialize.
- The payment was in performance of an obligation whose cause ceased after materializing.
- The payment was in performance of an obligation not yet due, and the payer was unaware that a term existed.
In the first two cases, the basis for which the money was paid either never existed or later ceased, so recovery is valid.
In the third case the obligation exists, but the date it falls due has not yet come, and for recovery the payer must have been unaware of the term. Someone who paid before the term knowing of the term does not fall within this case.
This article is linked to Article 145, which requires whoever received in payment what he was not entitled to to return it, and does not allow return if the payer knew it was not due, unless he was of limited capacity or under compulsion. It is also linked to Article 147, which bars recovery if payment was made by someone other than the debtor and as a result the creditor, in good faith, lost the debt instrument or its guarantees or abandoned his claim against the original debtor until the period for hearing it expired.
To determine whether an amount paid can be recovered in a particular case, consider consulting a lawyer who specializes in civil and compensation cases.
Practical example
A company in Jeddah paid an amount to a supplier in performance of a supply contract, and the cause of the obligation then ceased. The company may recover what it paid, because the payment was in performance of an obligation whose cause ceased after materializing.
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 146 of the Saudi Civil Transactions Law
Can I recover what I paid if the cause of the obligation ceased?
Yes. Recovery of what was not due is valid if the payment was in performance of an obligation whose cause did not materialize or ceased after materializing.
I paid a debt before its due date; can I recover it?
Recovery is valid if the payment was in performance of an obligation not yet due and the payer was unaware that a term existed.
Can I recover if I paid early while knowing of the term?
The article makes it a condition for this case that the payer be unaware that a term existed.
More articles on Unjust Enrichment
- Article 144
Anyone, even without discernment, who is enriched without lawful cause at another's expense must compensate him for his loss to the extent of his enrichment, and the obligation remains even if the enrichment later disappears.
كل شخص -ولو غير مميز- يثري دون سبب مشروع على حساب شخص آخر يلزمه في حدود ما أثرى به تعويض هذا الشخص عما لحقه من خسارة، ويبقى هذا الالتزام قائمًا ولو زال الإثراء
- Article 145
Whoever received in payment what he was not entitled to must return it, unless the payer knew he was paying what was not due, unless he was of limited capacity or under compulsion.
1- كل من تسلَّم على سبيل الوفاء ما ليس مستحقًّا له وجب عليه ردُّه. 2- لا محلَّ للرد إذا كان من قام بالوفاء يعلم أنه يدفع ما ليس مستحقًا، إلا أن يكون ناقص الأهلي
- Article 147
What a non-debtor paid cannot be recovered if, as a result, a good-faith creditor lost the debt instrument or its guarantees or abandoned his claim until its period expired, and the payer may have recourse against the original debtor.
لا محل لاسترداد غير المستحق إذا حصل الوفاء من غير المدين وترتب عليه أن الدائن وهو حسن النية قد تجرد من سند الدين أو مما حصل عليه من الضمانات أو ترك دعواه قِبَل
- Article 148
A good-faith recipient of what was not due returns only what he received; a bad-faith recipient returns what he received plus the fruits he collected or failed to collect, from the day he became in bad faith.
إذا كان من تسلَّم غير المستحق حسن النيَّة فلا يُلزم بأن يرد إلا ما تسلَّم، وإذا كان سيء النيَّة فإنه يُلزم بردِّ ما تسلَّم وثماره التي قبضها والتي قصَّر في قبضه
- Article 149
Whoever received what was not due and lacks capacity to contract is bound only to the extent he was enriched.
إذا لم تتوفر أهلية التعاقد فيمن تسلَّم غير المستحق فلا يكون مُلزمًا إلا بالقدر الذي أثرى به.
- Article 150
Voluntary agency (fudala) is where a person intentionally undertakes an urgent matter for another without being obliged to do so.
الفضالة أن يتولى شخص عن قصدٍ القيام بشأن عاجل لحساب شخص آخر، دون أن يكون ملزمًا بذلك.
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.