Article 166 of the Saudi Civil Transactions Law
المادة 166 من نظام المعاملات المدنية · الفصل الأول: التنفيذ العيني
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 الالتزام عملًا وتضمن تسليم شيء ولم يقم المدين بتسليمه بعد أن أعذر حتى هلك أو تلف؛ كانت تبعة ذلك عليه؛ ما لم يُثبت أنّ الهلاك أو التلف سيحدث ولو سلَّم الشيء للدائن.
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 166 explained in plain English
Article 166 addresses an important practical question: who bears the loss if the thing is destroyed or damaged before it is delivered? It answers in two cases:
Case one: an obligation to transfer a real right (Paragraph 1). For example, an obligation to transfer ownership of a thing. This obligation includes the obligation to deliver the thing and to look after it until delivery. If the debtor does not deliver it and it is destroyed or damaged, the risk of that falls on him.
Case two: an obligation to perform work that involves delivering a thing (Paragraph 2). If the debtor does not deliver the thing after he has been given formal notice and it is destroyed or damaged, the risk falls on him, unless he proves that the destruction or damage would have occurred even if he had delivered the thing to the creditor.
The difference between the two cases, as the text puts it, is as follows:
- Paragraph 2 expressly requires that the debtor has been given formal notice; this condition does not appear in the text of Paragraph 1.
- Paragraph 2 gives the debtor an opportunity to avoid the risk by proving that the destruction would have occurred even if he had delivered the thing; this exception does not appear in the text of Paragraph 1.
This article is part of the provisions on performance in kind, together with Article 165 on things specified by kind and Article 167 on obligations to perform work. To determine who bears the loss in a specific dispute, you may consult a lawyer specializing in civil and compensation cases.
Practical example
Khalid sold his car to Omar in Taif, and they agreed on delivery after a week, but Khalid did not deliver it on time, and the car then burned while still with him. Because the obligation to transfer ownership includes delivery and looking after the thing until delivery, the risk of its destruction falls on Khalid under Paragraph 1.
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 166 of the Saudi Civil Transactions Law
Who bears the loss of the thing sold if the seller does not deliver it?
If the obligation is to transfer a real right and the debtor does not deliver the thing until it is destroyed or damaged, the risk falls on him under Paragraph 1.
Can a debtor under an obligation to perform work avoid the risk?
Yes. In the case of Paragraph 2, the risk does not fall on him if he proves that the destruction or damage would have occurred even if he had delivered the thing to the creditor.
Is formal notice required in the case of an obligation to perform work?
Yes. Paragraph 2 requires that the debtor did not deliver the thing after he had been given formal notice.
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 163
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.
الالتزام القائم ديانةً يُعدُّ أساسًا صالحًا لأن يبني عليه المدين التزامًا نظاميًّا.
- 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
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.