Article 148 of the Saudi Civil Transactions Law
المادة 148 من نظام المعاملات المدنية · الفرع الأول: دفع غير المستحق
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 قبضها، وذلك من اليوم الذي أصبح فيه سيء النيَّة.
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 148 explained in plain English
This article determines how much must be returned when what was not due was received, and distinguishes between two cases according to the recipient's intent:
First: a recipient in good faith is bound only to return what he received.
Second: a recipient in bad faith is bound to return:
- What he received.
- The fruits he collected, meaning the yield and income produced by the thing that actually reached him.
- The fruits he failed to collect, meaning what he could have obtained but neglected to.
This is calculated from the day he became in bad faith. This means a person may be in good faith at the time of receipt and later become in bad faith, for example by later learning that what he received was not due to him, so his responsibility for the fruits begins from that day and not from the day of receipt.
The article did not set out ways of proving bad faith, so that remains a matter of proof according to the facts.
This article is linked to Article 147, which bars recovery in the case of payment by a non-debtor if the good-faith creditor lost the debt instrument or its guarantees or abandoned his claim until its period expired, and to Article 149, which provides that a person who received what was not due and lacks capacity to contract is bound only to the extent he was enriched.
Anyone claiming return of money that another received without entitlement should consider consulting a lawyer who specializes in civil and compensation cases.
Practical example
An amount was transferred by mistake to Bandar's account in Riyadh, and at first he did not know of it; he was later informed of the mistake but refused to return it and invested the amount in an activity that earns him income. Bandar must return the amount, and must also return the fruits he collected and those he failed to collect from the day he became in bad faith.
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 148 of the Saudi Civil Transactions Law
What must someone who received money not due to him in good faith return?
He is bound only to return what he received.
Does a bad-faith recipient return the profits of the money as well?
Yes. He is bound to return what he received and its fruits that he collected or failed to collect, from the day he became in bad faith.
From what date are the fruits calculated against a bad-faith recipient?
From the day he became in bad faith.
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 146
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.
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 ا
- 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 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.