Article 253 of the Saudi Civil Transactions Law
المادة 253 من نظام المعاملات المدنية · الفصل الثاني: حوالة الدين
The person assigned to may assert against the creditor the defenses the assignor had and defenses derived from the assignment contract, but not defenses personal to the assignor.
Official text (Arabic)
This article has not been amended since the law was issued.
للمحال عليه أن يتمسك تجاه المحال بالدفوع التي كان للمحيل أن يتمسك بها، كما يجوز له أن يتمسك بالدفوع المستمدة من عقد الحوالة، وليس له أن يحتج بالدفوع الخاصة بشخص المحيل.
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 253 explained in plain English
In an assignment of a debt, the person assigned to becomes the debtor bound toward the creditor (the assignee). If the creditor claims from him, what may he object with? The Article specifies:
- Defenses the assignor had: The person assigned to may assert against the creditor the defenses the original debtor could assert, because the debt passed to him as it is.
- Defenses derived from the assignment contract: He may also object on matters relating to the assignment contract itself.
- Exception of defenses personal to the assignor: The person assigned to may not rely on defenses connected specifically to the person of the assignor rather than to the debt itself.
The important distinction here is between a defense relating to the debt itself, which passes with the debt, and a defense relating to the person of the assignor, which stays with him and does not pass to anyone else. The Article does not give examples of these defenses, so the nature of each defense is assessed according to the circumstances of the case.
This rule is consistent with Article 252, which leaves the assigned debt with its guarantees except guarantees provided by third parties; the debt passes with its guarantees and with the defenses connected to it.
This Article benefits anyone who agreed to bear another's debt, as he is in no worse position than the original debtor with respect to the debt. In case of dispute over the nature of a particular defense, it is advisable to consult a lawyer specializing in civil cases.
Practical example
An establishment in Taif bought equipment from a supplier, then assigned the debt for the price to a sister company that agreed to bear it, and the assignment took effect. When the supplier claimed the price from the sister company, it could assert that the equipment had not been fully delivered, a defense the original establishment had and which relates to the debt itself.
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 253 of the Saudi Civil Transactions Law
May the person assigned to object to the creditor's claim?
Yes. He may assert the defenses the assignor had and defenses derived from the assignment contract.
Which defenses may the person assigned to not assert?
Defenses personal to the assignor.
Can he object on matters relating to the assignment contract itself?
Yes. The person assigned to may assert defenses derived from the assignment contract.
More articles on Assignment of Rights and Debts
- Article 238
The Article allows a creditor to assign his right to another person unless legal provisions, agreement or the nature of the obligation prevent it, and does not require the debtor's consent for the assignment to be concluded.
للدائن أن يحيل حقه إلى شخص آخر، وذلك ما لم تقتضِ النصوص النظامية أو الاتفاق أو طبيعة الالتزام خلاف ذلك، ولا يشترط لانعقاد الحوالة رضى المدين بها.
- Article 239
The Article limits the validity of an assignment of a right to the portion that is attachable, so what cannot be attached cannot validly be assigned.
لا تصح حوالة الحق إلا بقدر ما يكون منه قابلًا للحجز.
- Article 240
The Article requires, for an assignment to be enforceable against the debtor and third parties, that the debtor accept it or be notified of it by a lawful means, and that acceptance relied on against third parties be in writing with a certain date.
لا تكون حوالة الحق نافذة تجاه المدين أو تجاه الغير إلا إذا قبلها المدين أو أُعلِم بها بأي وسيلة مقررة نظامًا، على أن نفاذها تجاه الغير بقبول المدين يستلزم أن يك
- Article 241
The Article provides that the assigned right passes to the assignee with its attributes, accessories and guarantees as it was with the assignor.
ينتقل الحق إلى المحال له بصفاته وتوابعه وضماناته.
- Article 242
The Article determines the assignor's guarantee: in an assignment for consideration he guarantees the existence of the right at the time it is concluded unless otherwise agreed, and in an assignment without consideration he does not guarantee its existence.
1- إذا كانت الحوالة بعوض، لم يضمن المحيل إلا وجود الحق المحال به وقت انعقاد الحوالة، ما لم يتفق على خلاف ذلك. 2- إذا كانت الحوالة بغير عوض، لم يضمن المحيل وجود
- Article 243
The assignor does not guarantee the debtor's solvency except by special agreement, and if he guarantees it, the guarantee applies to solvency at the time the assignment is concluded unless otherwise agreed.
لا يضمن المحيل يسار المدين إلا إذا وجد اتفاق خاص على هذا الضمان، وإذا ضمن المحيل يسار المدين لا ينصرف هذا الضمان إلا إلى اليسار وقت انعقاد الحوالة ما لم يتفق عل
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.