Article 187 of the Saudi Civil Transactions Law
المادة 187 من نظام المعاملات المدنية · الفرع الثاني: دعوى عدم نفاذ تصرفات المدين في حق دائنيه
The article provides that a judgment that an act by a debtor whose debts exceed his assets is unenforceable benefits all creditors who are harmed by the act.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا قُضي بعدم نفاذ تصرف المدين الذي أحاطت ديونه بأمواله؛ استفاد من ذلك جميع الدائنين الذين يضارون بهذا التصرف.
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 187 explained in plain English
This article explains the scope of the effect of a judgment that an act of a debtor whose debts exceed his assets is unenforceable.
The rule: If the act is held unenforceable, the benefit is not limited to the creditor who brought the claim, but extends to all creditors who are harmed by the act.
- The condition for the beneficiary: that he be among the creditors harmed by the act.
- The result: the property that was the subject of the act returns as a guarantee for all these creditors.
This is preceded by the rule of proof in Article 186: it is enough for a creditor claiming that debts exceed assets to prove the amount of the due debts owed by the debtor, and the debtor may rebut the claim by proving that his assets equal those debts or exceed them. Article 188 sets the period after which this claim is not heard: one year from the date the creditor learns of the ground for unenforceability, and in all cases ten years from the date of the act.
This article does not address how the property is distributed among the benefiting creditors. Anyone who needs to assess his position in a particular case should consult a lawyer specializing in civil or enforcement cases.
Practical example
One of the creditors of a merchant in Riyadh filed a claim, and it was held that the merchant's gift of real estate is unenforceable against him. The benefit is not limited to the claimant but extends to the other creditors who were harmed by that gift.
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 187 of the Saudi Civil Transactions Law
Do the other creditors benefit from a claim brought by a single creditor?
Yes. If the act is held unenforceable, all creditors harmed by it benefit.
Do all creditors benefit without condition?
The creditors who are harmed by the act benefit, as the text provides.
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.