Article 332 of the Saudi Civil Transactions Law
المادة 332 من نظام المعاملات المدنية · الفرع الثاني: آثار عقد البيع أولًا: التزامات البائع
A good-faith buyer keeps his right to the warranty if he acknowledges the third party's right or settles with him without awaiting judgment, having notified the seller in good time without the seller intervening.
Official text (Arabic)
This article has not been amended since the law was issued.
يثبت حق المشتري في الضمان ولو أقرَّ للغير بالحق أو تصالح معه وهو حسن النية في الحالتين دون أن ينتظر صدور حكم قضائي متى كان قد أعلم البائع بالدعوى في الوقت الملائم فلم يتدخل؛ وذلك ما لم يثبت البائع أن المدعي لم يكن على حق في دعواه.
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 332 explained in plain English
This article complements the rules on the entitlement claim in Article 331. The basic position is that the buyer has recourse against the seller on the warranty if judgment is given that the item belongs to a third party, but this article allows him not to await judgment in two cases: where he acknowledges the claimant's right, or settles with him.
The buyer's right to the warranty arises in these two cases on combined conditions:
- The buyer must be in good faith in his acknowledgment or settlement.
- He must have notified the seller of the claim in good time.
- The seller, after being notified, must not have intervened in the case.
Even so, the seller keeps a way to defend himself: if he proves that the claimant was not in the right in his claim, the buyer has no right to the warranty. The rationale is that a seller who was notified and did not intervene should not be able to force the buyer into a long dispute, but he is also not made to bear the consequence of an acknowledgment or settlement of a claim that was not valid.
Article 333 sets out a related ruling: if the buyer settles with the entitlement claimant for money before judgment, the seller may escape the consequences of the warranty by repaying the buyer an amount equal to the settlement sum and its costs.
Because an acknowledgment or settlement may affect the buyer's rights, it is advisable to consult a lawyer specialized in civil cases before making one.
Practical example
Noura bought a car from a person in Dammam, and then another person claimed that it had belonged to him before the sale and brought a claim. Noura notified the seller of the claim in good time and he did not intervene, so she settled with the claimant in good faith. She has the right of recourse against the seller on the warranty without awaiting judgment, unless the seller proves that the claimant was not in the right.
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 332 of the Saudi Civil Transactions Law
Must I wait for a court judgment to claim against the seller on the entitlement warranty?
Not if the buyer acknowledges the third party's right or settles with him in good faith, having notified the seller in good time without the seller intervening.
Can the seller refuse the warranty after the buyer settles with the claimant?
Yes, if he proves that the claimant was not in the right in his claim.
What are the conditions for the warranty where the buyer acknowledges or settles?
The buyer's good faith, his notifying the seller of the claim in good time, and the seller's not intervening.
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- Article 44
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- Article 109
The article provides that exchange contracts are concluded on the basis that the subject matter is free of defects except what custom tolerates, and that an intolerable defect is a breach of the obligation.
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- Article 165
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1- الالتزام بنقل حق عيني يتضمن الالتزام بتسليم الشيء والمحافظة عليه حتى تسليمه، فإذا لم يقم المدين بتسليمه حتى هلك أو تلف كانت تبعة ذلك عليه. 2- إذا كان محل الا
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البيع عقد يُمَلِّكُ بمقتضاه البائع المبيع للمشتري مقابل ثمنٍ نقدي.
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.