Article 266 of the Saudi Civil Transactions Law
المادة 266 من نظام المعاملات المدنية · الفرع الثاني: رفض الوفاء
If a creditor refuses without justification a payment properly offered to him, refrains from acts without which payment cannot be made, or declares he will not accept it, the debtor may put him in default under the provisions of the Law.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا رفض الدائن دون مسوغٍ الوفاء المعروض عليه عرضًا صحيحًا، أو لم يقم بالأعمال التي لا يتم الوفاء بدونها، أو أَعلَم المدينَ أنه لن يقبل الوفاء؛ فللمدين أن يعذره وفق أحكام هذا النظام.
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 266 explained in plain English
The usual position is that the debtor is the one who delays payment, but the reverse may happen: the debtor wants to pay and the creditor refuses. This Article opens the provisions on refusal of payment and gives the debtor a means to protect himself.
The Article specifies three cases:
- The creditor refuses without justification a payment properly offered to him. A justified refusal does not fall here, nor does an improper offer.
- The creditor does not perform the acts without which payment cannot be made, for example where payment requires his presence or participation and he refrains.
- The creditor informs the debtor that he will not accept payment.
In any of these cases the debtor is entitled to put the creditor in default, under the provisions of this Law. The Article does not itself detail the method of putting in default but refers to the provisions of the Law.
Article 267 states the consequences of putting the creditor in default: the creditor bears the risk of the thing's loss or damage, and the debtor has the right to deposit the thing at the creditor's expense and claim compensation for harm. Putting in default is thus the key that shifts the risks to the creditor who refuses.
The Article is also connected with Article 265, under which payment is made to the creditor or his representative or to one who presents a receipt issued by the creditor.
A person who faces a creditor refusing to receive his right for no reason should not merely wait, but take the steps to put him in default in accordance with the Law. To know the correct procedure, it is advisable to consult a lawyer specializing in civil cases.
Practical example
Mohammed rented an apartment in Dammam and wanted to pay a sum due to the landlord. He offered it to him properly, but the landlord refused to receive it for no reason. Mohammed is entitled to put the landlord in default under the provisions of the Law, and the consequences stated in Article 267 follow from that.
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 266 of the Saudi Civil Transactions Law
What do I do if the creditor refuses to receive the debt?
If the refusal is without justification and the offer was proper, you may put the creditor in default under the provisions of the Law.
Can the creditor be put in default if he tells me he will not accept payment?
Yes. One of the cases is where the creditor informs the debtor that he will not accept payment.
What is the effect of putting the creditor in default?
Under Article 267, the creditor bears the risk of the thing's loss or damage, and the debtor may deposit it at the creditor's expense and claim compensation.
More articles on Performance of Debt and Set-Off
- Article 21
The article distinguishes fungible things, whose units are alike or close and can stand in for one another on performance, from non-fungible things, whose units differ in a way recognized by custom or whose like is rarely found.
1- الأشياء المثلية هي ما تتماثل آحادها أو تتقارب بحيث يمكن أن يقوم بعضها مقام بعض عند الوفاء بلا فرقٍ يُعتد به عرفًا. 2- الأشياء القيمية هي ما تتفاوت آحادها في
- Article 110
The article provides that a bilateral contract terminates automatically if performance becomes impossible for a reason beyond the debtor's control, and sets the rules for partial and temporary impossibility.
1- في العقود الملزمة للجانبين، إذا أصبح تنفيذ الالتزام مستحيلًا بسببٍ لا يد للمدين فيه، انقضى التزامه والالتزام المقابل له، وانفسخ العقد من تلقاء نفسه. 2- إذا ك
- Article 147
What a non-debtor paid cannot be recovered if, as a result, a good-faith creditor lost the debt instrument or its guarantees or abandoned his claim until its period expired, and the payer may have recourse against the original debtor.
لا محل لاسترداد غير المستحق إذا حصل الوفاء من غير المدين وترتب عليه أن الدائن وهو حسن النية قد تجرد من سند الدين أو مما حصل عليه من الضمانات أو ترك دعواه قِبَل
- Article 162
The article provides that an obligation that does not meet the conditions for compulsory enforcement remains owed on a moral basis (diyanah); if the debtor performs it voluntarily, the performance is valid and is neither a gift nor an undue payment.
إذا لم يستوف الالتزام الشروط النظامية لتنفيذه جبرًا يبقى قائمًا في ذمة المدين ديانةً، فإذا وفاه مختارًا كان وفاؤه صحيحًا ولا يُعدُّ تبرعًا ولا دفعًا لغير المستح
- Article 206
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.
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 لمصلح
- Article 207
The article provides that a deferred debt does not fall due on the creditor's death, and 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.
لا يحل الدين المؤجل بموت الدائن، ويحل بموت المدين إلا إذا كان الدين موثَّقًا بضمانٍ عينيٍّ أو قدم الورثة ضمانًا كافيًا عينيًّا أو شخصيًّا أو وافق الدائن على بقا
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.