Article 232 of the Saudi Civil Transactions Law
المادة 232 من نظام المعاملات المدنية · الفرع الثالث: تضامن المدينين
The Article provides that a settlement between one jointly liable debtor and the creditor takes effect against the others, except where it imposes a new obligation or an increase on them, in which case it takes effect only with the approval of the one affected.
Official text (Arabic)
This article has not been amended since the law was issued.
ينفذ الصلح الذي يعقده أحد المدينين المتضامنين مع الدائن على باقي المدينين، ما لم يرتب في ذمتهم التزامًا جديدًا أو زيادةً في التزامهم؛ فإنه لا ينفذ في حق أي منهم إلا بإجازته.
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 232 explained in plain English
This Article deals with a settlement concluded by one of the jointly liable debtors with the creditor, and states its effect on the remaining debtors.
The rule: This settlement takes effect against the other debtors. If the settlement is in their favor, for example by reducing the debt, they benefit from it.
The exception: If the settlement imposes on them a new obligation or an increase in their obligation, it does not take effect against any of them except with his approval. Each debtor may accept or reject the settlement, and he is not bound unless he approves it.
The reasoning is that one debtor cannot burden his fellow debtors' obligations without their consent, but he can benefit them. This is consistent with the logic of Article 231, under which what harms the debtors stays confined to the one to whom it is directed, while what benefits them, such as one debtor's warning to the creditor, benefits the others.
Solidarity itself arises only by agreement or legal provision (Article 222). The Article is also connected with Article 233, which provides that the acknowledgment by one of the jointly liable debtors of what he owes of the debt does not apply against the others.
In practice: a creditor who settles with one of the jointly liable debtors should understand that any term that increases the others' obligations requires their approval. A debtor who is told of a settlement concluded by his co-debtor should check whether it imposes a new obligation or an increase on him. To draft a settlement in a debt with joint liability, it is advisable to consult a lawyer specializing in civil cases.
Practical example
There are three jointly liable debtors to a company in Riyadh. One of them settled with the company on a reduction of the debt, and this settlement takes effect against his two co-debtors. But if the settlement included an increase in their obligation or a new obligation on them, it would not take effect against either of them unless he approved it.
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 232 of the Saudi Civil Transactions Law
Does one jointly liable debtor's settlement with the creditor apply to the others?
Yes, in principle, unless it imposes on them a new obligation or an increase in their obligation.
What if the settlement increases the other debtors' obligations?
It does not take effect against any of them except with his approval.
Does a settlement that reduces the debt need the others' consent?
The Article requires approval only if the settlement imposes a new obligation or an increase in their obligation.
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.