Article 206 of the Saudi Civil Transactions Law
المادة 206 من نظام المعاملات المدنية · الفرع الثاني: الأجل
The article permits early performance by the person for whose benefit the term was set unless it harms the other party, treats the term as for the debtor's benefit in case of doubt, and returns the debt to deferred status if what was received early is claimed by another.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يجوز تعجيل الوفاء بالدين ممن كان الأجل لمصلحته ما لم يلحق التعجيل ضررًا بالطرف الآخر.
2- عند الشك في كون الأجل لمصلحة المدين أو الدائن فالأصل أن يُعدَّ لمصلحة المدين.
3- إذا قضى المدين الدين قبل حلول الأجل ثم استُحِقَّ المقبوضُ عاد الدين مؤجلًا.
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 206 explained in plain English
This article regulates early performance of a debt before its term arrives, through three rules:
1- Who may perform early: Early performance is permitted by the person for whose benefit the term was set, provided that early performance does not harm the other party. If the term is for the debtor's benefit, he may pay early unless the creditor is harmed.
2- In case of doubt: If it is unclear whether the term is for the debtor's or the creditor's benefit, the rule is that it is treated as for the debtor's benefit.
3- Claim to what was received: If the debtor paid the debt before the term arrived and what was received was then claimed by another, that is, it was established that what he paid is another person's right, the debt returns to being deferred as it was, and it is not claimed at once.
The article does not set out the standard of harm that prevents early performance, so this is assessed according to each case.
This differs from the loss of the term in Article 205, which occurs in specific cases such as a judgment of the debtor's insolvency, failure to provide the agreed security or its diminution. Article 207 explains the effect of death on a deferred debt.
A person who wishes to pay a debt early and faces an objection from the other party would do well to consult a lawyer specializing in civil cases.
Practical example
Saad borrowed a sum from his friend to be repaid after two years, and the money became available to him after six months. Unless it appears that the term is for his friend's benefit, the rule is that it is for Saad's benefit, so he may pay early as long as that does not harm his friend.
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 206 of the Saudi Civil Transactions Law
Am I entitled to pay a debt before its due date?
Early performance is permitted by the person for whose benefit the term was set, unless early performance harms the other party.
For whose benefit is the term if the contract does not say?
In case of doubt whether the term is for the debtor's or the creditor's benefit, the rule is that it is treated as for the debtor's benefit.
What if I paid early and it turned out what I paid is someone else's right?
If the debtor paid the debt before the term arrived and what was received was then claimed by another, the debt returns to being deferred.
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.