Article 208 of the Saudi Civil Transactions Law
المادة 208 من نظام المعاملات المدنية · الفرع الثاني: الأجل
The article provides that if the debtor loses the benefit of the term and the term had increased the debt when the contract was made, the court reduces that increase according to how much of the term was lost, the reason and the nature of the transaction.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا سقط حق المدين في الأجل وفقًا لما تقضي به النصوص النظامية، وتبين أنَّ للأجل أثرًا في زيادة مقدار الدين عند إنشاء العقد؛ فتنقص المحكمة من تلك الزيادة مراعيةً في ذلك مقدار ما سقط من الأجل وسبب سقوطه وطبيعة المعاملة.
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 208 explained in plain English
This article deals with a common practical question: in many deferred transactions, such as sales by installments, the amount of the debt is higher because of the term. If the debtor loses the benefit of the term and the debt becomes due, does he pay the whole increase?
The rule: If two things come together:
- The debtor loses the benefit of the term as the statutory provisions provide.
- And it turns out that the term had an effect in increasing the amount of the debt when the contract was made.
then the court reduces that increase.
Criteria for the reduction: The court takes three things into account:
- How much of the term was lost.
- The reason it was lost.
- The nature of the transaction.
The article sets no percentage or method of calculation for the reduction but leaves its assessment to the court under these criteria.
This article is connected with Article 207, which provides that a deferred debt falls due on the debtor's death unless it is secured by security in kind, the heirs provide adequate security, or the creditor agrees it remains deferred. Article 209 deals with the case of an agreement to pay when able.
To assess the effect of this article on a particular debt, it is advisable to consult a lawyer specializing in civil or financing cases.
Practical example
Khalid bought a car in installments over three years at a price higher than its cash price because of the term, and then lost the benefit of the term after a year under the statutory provisions and was asked for the remainder at once. The court may reduce the increase linked to the term, taking into account the period lost, the reason for the loss and the nature of the transaction.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentA question about Article 208 of Civil Transactions Law?
Describe what happened and specialist lawyers answer. You can write in English.
- Completely free
- Lawyers from the directory answer
- Your name stays hidden
Civil Litigation & Compensation lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Civil Litigation & Compensation lawyers
Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Active contributor
Unwan Law Firm
Frequently asked questions about Article 208 of the Saudi Civil Transactions Law
Do I pay the whole increase if a deferred debt becomes due at once?
If the debtor loses the benefit of the term and the term turns out to have increased the debt when the contract was made, the court reduces that increase.
On what basis does the court reduce the increase?
It takes into account how much of the term was lost, the reason it was lost and the nature of the transaction.
Does the article set a percentage for the reduction?
No. The text leaves the assessment to the court under the criteria mentioned.
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.