Article 229 of the Saudi Civil Transactions Law
المادة 229 من نظام المعاملات المدنية · الفرع الثالث: تضامن المدينين
The Article states that the other debtors may have recourse against the released debtor for his share of an insolvent debtor's portion, unless the creditor relieved him of all liability, in which case the creditor bears that share.
Official text (Arabic)
This article has not been amended since the law was issued.
في الأحوال التي يُبرئ فيها الدائن أحد المدينين المتضامنين سواء من الدين أو من التضامن، يكون لباقي المدينين عند الاقتضاء أن يرجعوا على هذا المدين بنصيبه في حصة المعسر منهم، إلا أنه إذا أخلى الدائن المدين الذي أبرأه من كل مسؤولية عن الدين، فإن الدائن هو الذي يتحمل نصيب هذا المدين في حصة المعسر.
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 229 explained in plain English
This Article deals with a delicate question: who bears the share of an insolvent debtor if the creditor has released one of the jointly liable debtors?
The original rule: Where the creditor releases one of the jointly liable debtors, whether from the debt or from solidarity, the other debtors may, where required, have recourse against this released debtor for his share of the insolvent debtor's portion. The release does not exempt him from sharing in bearing the effect of one of his fellow debtors' insolvency.
The exception: If the creditor relieved the debtor he released of all liability for the debt, the creditor bears this debtor's share of the insolvent debtor's portion, and the others do not have recourse against the released debtor for it.
The Article is connected with other provisions:
- Article 228, which sets out the forms of release from the debt, from solidarity, or absolute release.
- Article 234, which provides that the debtor who paid the debt bears, together with the solvent jointly liable debtors, the burden of one of them being insolvent, each in proportion to his share.
The idea is that the insolvency of one debtor is a loss shared among the others, and the released debtor in principle continues to share in it, unless the creditor deliberately relieves him of all liability, in which case the creditor bears the consequence of his decision rather than it passing to the remaining debtors.
This matter requires careful calculation of the shares, and it is advisable to consult a lawyer specializing in civil cases.
Practical example
There are four jointly liable debtors, and the creditor released one of them from solidarity. It then turned out that another debtor is insolvent. The remaining debtors may have recourse against the released debtor for his share of the insolvent debtor's portion. But had the creditor relieved the released debtor of all liability for the debt, the creditor himself would have borne the released debtor's share of the insolvent debtor's portion.
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 229 of the Saudi Civil Transactions Law
Does the released debtor bear part of the insolvent debtor's share?
Yes, in principle. The other debtors may, where required, have recourse against him for his share of the insolvent debtor's portion.
When does the creditor bear the released debtor's share of the insolvent debtor's portion?
If the creditor relieved the debtor he released of all liability for the debt.
Does the rule apply to release from solidarity only?
Yes. The Article covers the creditor's release of one of the debtors whether from the debt or from solidarity.
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.