Article 282 of the Saudi Civil Transactions Law
المادة 282 من نظام المعاملات المدنية · الفرع الثاني: المقاصة
The article provides that set-off takes effect only if the interested party invokes it, and that it cannot be waived before the right to it is established.
Official text (Arabic)
This article has not been amended since the law was issued.
لا تقع المقاصة إلا إذا تمسك بها من له مصلحة فيها، ولا يصح النزول عنها قبل ثبوت الحق فيها.
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 282 explained in plain English
This article explains how set-off takes effect and places a limit on waiving it.
First - set-off does not occur automatically: set-off takes effect only if the person with an interest in it invokes it. Even where the conditions in Article 281 are met, for example where both debts are money due for performance, free of dispute, capable of being claimed in court and capable of attachment, set-off has no effect unless the interested party requests it and invokes it.
Second - no advance waiver: set-off cannot be waived before the right to it is established. A waiver of set-off made in advance, before the right to it exists, is not recognized, and the prohibition in the article is limited to that time.
In practice, a person who wants set-off must declare expressly that he is invoking it, for example by raising it as a defense when he is sued for the debt. Note that Article 283 allows the debtor to invoke set-off even if the place of performance of the two debts differs, while remaining bound to compensate the creditor for any harm caused by that.
To know whether a clause in an existing contract amounts to an advance waiver of set-off, or how to invoke set-off in a particular dispute, it is advisable to consult a lawyer specializing in civil cases.
Practical example
A company in Jeddah demanded payment of an amount owed by its customer Majed. Majed was also owed an amount by the company that meets the conditions for set-off. The two amounts are not deducted from each other automatically; Majed must invoke set-off for it to take effect.
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 282 of the Saudi Civil Transactions Law
Does set-off between debts happen automatically?
No. Set-off takes effect only if the person with an interest in it invokes it.
Can set-off be waived in advance?
No. Set-off cannot be waived before the right to it is established.
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.