Article 163 of the Saudi Civil Transactions Law
المادة 163 من نظام المعاملات المدنية · الباب الثاني: آثار الالتزام
The article provides that an obligation owed on a moral basis (diyanah) is a valid foundation on which the debtor may build a legal obligation.
Official text (Arabic)
This article has not been amended since the law was issued.
الالتزام القائم ديانةً يُعدُّ أساسًا صالحًا لأن يبني عليه المدين التزامًا نظاميًّا.
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 163 explained in plain English
Article 162 provides that an obligation that does not meet the legal conditions for compulsory enforcement remains owed by the debtor on a moral basis (diyanah), and that if the debtor performs it voluntarily, his performance is valid. Article 163 adds a further effect of this obligation.
The article provides that an obligation owed on a moral basis is a valid foundation on which the debtor may build a legal obligation. This means:
- The debtor can undertake anew to perform what he owes on a moral basis, so that his new obligation becomes a legal obligation.
- The new obligation is not regarded as being without a cause, because the obligation owed on a moral basis is a valid foundation for it.
- The initiative here lies with the debtor himself, since the article speaks of an obligation that the debtor builds.
The two rules thus complement each other: a debtor under an obligation owed on a moral basis can either perform it voluntarily, in which case his performance is valid under Article 162, or create a legal obligation on its basis under Article 163.
The article does not detail the form the new obligation takes, nor the detailed effects that follow once it arises. Anyone who wants to enter into an undertaking of this kind or verify its effects may consult a lawyer specializing in civil and compensation cases.
Practical example
Nasser owes a debt on a moral basis that does not meet the conditions for compulsory enforcement. To reassure his creditor, he undertook to pay the amount on a fixed date. The obligation owed on a moral basis is a valid foundation for the new undertaking Nasser created, so his obligation becomes a legal obligation.
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 163 of the Saudi Civil Transactions Law
Can a debt owed on a moral basis be turned into a legally binding obligation?
Yes. Article 163 provides that an obligation owed on a moral basis is a valid foundation on which the debtor may build a legal obligation.
What does it mean for an obligation to be owed on a moral basis (diyanah)?
Under Article 162, it is an obligation that did not meet the legal conditions for compulsory enforcement but remains owed by the debtor.
More articles on Performance of Obligations and Agreed Compensation
- Article 107
The article lets a party to a bilateral contract, after warning the defaulting party, demand performance or termination, with compensation if warranted, in either case.
في العقود الملزمة للجانبين، إذا لم يوف أحد المتعاقدين بالتزامه، فللمتعاقد الآخر بعد إعذاره المتعاقد المخل أن يطلب تنفيذ العقد أو فسخه، مع التعويض في الحالتين إن
- Article 161
The article requires the debtor to perform his obligation when it falls due and allows it to be enforced against him by compulsion if he refuses, once the conditions for compulsory enforcement under the law are met.
يجب على المدين تنفيذ التزامه عند استحقاقه، فإذا امتنع نفذ عليه جبرًا متى استوفى التنفيذ الجبري شروطه النظامية.
- Article 162
The article provides that an obligation that does not meet the conditions for compulsory enforcement remains owed on a moral basis (diyanah); if the debtor performs it voluntarily, the performance is valid and is neither a gift nor an undue payment.
إذا لم يستوف الالتزام الشروط النظامية لتنفيذه جبرًا يبقى قائمًا في ذمة المدين ديانةً، فإذا وفاه مختارًا كان وفاؤه صحيحًا ولا يُعدُّ تبرعًا ولا دفعًا لغير المستح
- Article 164
The article compels the debtor, after formal notice, to perform in kind where possible, and lets the court, at his request, limit the creditor to compensation if performance is burdensome and causes the creditor no serious harm.
1- يُجبَر المدين بعد إعذاره على تنفيذ التزامه تنفيذًا عينيًّا متى كان ذلك ممكنًا. 2- إذا كان في التنفيذ العيني إرهاقٌ للمدين جاز للمحكمة بناءً على طلبه أن تقصر
- Article 165
The article provides that a right to a thing specified by kind attaches to a particular item only once it is set apart, and lets the creditor, on non-performance, obtain a like item at the debtor's expense.
1- إذا تعلق الحق بشيء معين بالنوع لا بالذات، فإنه لا يختص بشيء بذاته من ذلك النوع إلا بإفرازه. 2- إذا لم يقم المدين بتنفيذ التزامه جاز للدائن أن يحصل على شيء من
- Article 166
The article places the risk of destruction or damage on the debtor who failed to deliver, in two cases: transfer of a real right and an obligation to perform work involving delivery, each on different conditions.
1- الالتزام بنقل حق عيني يتضمن الالتزام بتسليم الشيء والمحافظة عليه حتى تسليمه، فإذا لم يقم المدين بتسليمه حتى هلك أو تلف كانت تبعة ذلك عليه. 2- إذا كان محل الا
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.