Article 278 of the Saudi Civil Transactions Law
المادة 278 من نظام المعاملات المدنية · الفرع الثالث: محل الوفاء وزمانه ومكانه ونفقاته
The article places the costs of performance on the debtor, unless a legal provision or an agreement provides otherwise.
Official text (Arabic)
This article has not been amended since the law was issued.
تكون نفقات الوفاء على المدين؛ ما لم يوجد نص نظامي أو اتفاق على خلاف ذلك.
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 278 explained in plain English
This article determines who bears the costs of performance, meaning the expenses required to perform the obligation, such as transfer fees or transport and delivery charges, depending on the nature of the obligation.
The rule: the costs of performance are borne by the debtor. The debtor is the party bound to perform, so he bears the costs that performance requires.
The exception: this rule does not apply if there is:
- a legal provision stating otherwise, or
- an agreement between the parties to the contrary, for example that the creditor bears the costs of performance or that they share them.
The rule therefore supplements the parties' intent, and they may regulate the matter in the contract as they wish.
This article sits alongside Article 277, which sets the place of performance when it is not specified, and the amount of the costs is often linked to the place of performance. It also relates to Article 279, which gives a person who pays all or part of a debt the right to request a document evidencing what was paid.
It is best for the contract to state expressly who bears delivery or transfer costs. If there is a dispute over particular costs, it is advisable to consult a lawyer specializing in civil cases.
Practical example
A company in Al Khobar bought spare parts from a supplier. The contract said nothing about the cost of delivering the parts, and no legal provision says otherwise. Under this article, the costs of performance fall on the supplier as the debtor responsible for delivery.
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 278 of the Saudi Civil Transactions Law
Who pays the expenses of paying a debt?
As a rule, the costs of performance are borne by the debtor, unless a legal provision or an agreement provides otherwise.
Can the parties agree that the creditor bears the costs of performance?
Yes. The article makes an exception where there is an agreement contrary to the rule.
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.