Article 202 of the Saudi Civil Transactions Law
المادة 202 من نظام المعاملات المدنية · الفرع الأول: الشرط
The article provides that fulfillment of a resolutory condition ends the obligation, the creditor must return what he took or pay compensation if return became impossible for a reason he is responsible for, and acts of administration remain in force.
Official text (Arabic)
This article has not been amended since the law was issued.
يترتب على تحقق الشرط الفاسخ زوال الالتزام، ويلزم الدائن رد ما أخذه، فإذا استحال الرد لسبب هو مسؤولٌ عنه لزمه التعويض، وتبقى أعمال الإدارة التي تصدر من الدائن نافذة رغم تحقق الشرط.
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 202 explained in plain English
This article deals with the effects of fulfillment of a resolutory condition, which is a condition under which the obligation exists, but disappears if the event on which it depends occurs.
The effects the text provides:
- The obligation ends: as soon as the resolutory condition is fulfilled.
- Return of what the creditor took: the creditor must return what he took under the obligation.
- Compensation where return is impossible: if return became impossible for a reason the creditor is responsible for, he must pay compensation. If it became impossible for a reason he is not answerable for, the text does not provide for this compensation.
- Acts of administration remain: acts of administration done by the creditor before the condition was fulfilled remain in force despite its fulfillment, such as leasing the thing or maintaining it. The article does not extend this rule beyond acts of administration.
This differs from the suspensive condition in Article 201, where the obligation is not enforceable unless the condition is fulfilled. Article 203 explains the time to which the effect of fulfilling the condition relates: the rule is that it relates to the time the obligation arose, except in cases it mentions.
To assess what must be returned or compensated in a particular case, it is advisable to consult a lawyer specializing in civil cases.
Practical example
A man sold land to another in Madinah on the basis that the sale would end if the buyer did not obtain a building permit within an agreed period, and in the meantime the buyer leased the land as a car park. If the resolutory condition is fulfilled, the obligation ends and what was taken must be returned, and the lease remains in force as an act of administration.
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 202 of the Saudi Civil Transactions Law
What happens when a resolutory condition is fulfilled?
The obligation ends, and the creditor must return what he took.
What if the thing cannot be returned after the resolutory condition is fulfilled?
If return became impossible for a reason the creditor is responsible for, he must pay compensation.
Are the administration contracts made by the creditor voided?
No. Acts of administration done by the creditor remain in force despite fulfillment of the condition.
More articles on Condition, Term and Joint Liability
- Article 127
If several persons are liable for a harmful act, they are jointly liable for compensation, the court sets each one's share, and if that is not possible, liability is divided equally.
إذا تعدد المسؤولون عن فعل ضار كانوا متضامنين في التزامهم بتعويض الضرر، وتعين المحكمة نصيب كل منهم في التعويض وفق القواعد الواردة في هذا الفصل، وإذا تعذر ذلك كان
- Article 197
The article defines a conditional obligation as one whose existence or disappearance depends on a future event that may or may not occur.
يكون الالتزام معلَّقًا على شرطٍ إذا كان وجوده أو زواله مترتِّبًا على أمرٍ مستقبلٍ محتمل الوقوع.
- Article 198
The article provides that an obligation made conditional on an event that has occurred is treated as immediate, and one made conditional on something impossible has a void condition and is itself void.
إذا علق الالتزام على أمر واقع عد الالتزام ناجزًا، وإذا علق على أمر مستحيل عد الشرط باطلًا، ويبطل الالتزام الذي علق عليه.
- Article 199
The article provides that an obligation does not arise if it is made conditional on a condition whose purpose is to encourage something unlawful.
لا ينشأ الالتزام إذا عُلق على شرطٍ يكون القصد من التعليق عليه الحض على أمر غير مشروع.
- Article 200
The article provides that an obligation does not exist if it is made conditional on a suspensive condition making its existence depend on the mere will of the obligor.
لا يكون الالتزام قائمًا إذا علق على شرط واقف يجعل وجود الالتزام متوقفًا على محض إرادة الملتزم.
- Article 201
The article provides that an obligation subject to a suspensive condition is not enforceable unless the condition is fulfilled and cannot be performed before then, while the creditor may take steps to preserve his right.
لا يكون الالتزام المعلق على شرط واقف نافذًا إلا إذا تحقق الشرط المعلق عليه، ولا يكون الالتزام قبل تحقق الشرط قابلًا للتنفيذ، وللدائن أن يتخذ من الإجراءات ما يُح
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.