Article 333 of the Saudi Civil Transactions Law
المادة 333 من نظام المعاملات المدنية · الفرع الثاني: آثار عقد البيع أولًا: التزامات البائع
If the buyer settles with the entitlement claimant for money before judgment, the seller may escape the consequences of the warranty by repaying the settlement sum and its costs.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا تصالح المشتري مع مدعي الاستحقاق على مال قبل صدور حكم قضائي له، فللبائع أن يتخلص من نتائج الضمان بأن يرد للمشتري ما يعادل بدل الصلح ونفقاته.
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 333 explained in plain English
This article deals with a particular case: the buyer settles with the person claiming a right in the item sold, paying him money to end the dispute, before a court judgment is given in the claimant's favor.
In this case the article gives the seller an option: to escape all the consequences of the warranty by repaying the buyer:
- an amount equal to the settlement sum the buyer paid;
- and the costs of the settlement.
In practical terms the buyer kept the item thanks to the settlement, so there is no reason to burden the seller with the full effects of entitlement, and it is enough that he compensate the buyer for what he actually spent to end the dispute. The wording "the seller may" shows that this is a right of the seller which he chooses whether to exercise.
The article is linked to Article 332, which establishes the buyer's right to the warranty if he settles with the claimant in good faith without awaiting judgment, having notified the seller of the claim in good time and the seller not having intervened, unless the seller proves that the claimant was not in the right. If the warranty is established for the buyer in this way, the seller may limit it to repaying the settlement sum and its costs.
The article does not state how the costs are to be proved or their amount, so the buyer is advised to keep what proves the settlement sum and its costs, and to consult a lawyer specialized in civil cases if there is a dispute.
Practical example
Abdullah bought an apartment in Jeddah, and then a person claimed a right in it, so Abdullah settled with him before any judgment, paying him SAR 50,000 and bearing costs for the settlement. Here the seller may escape the consequences of the warranty by repaying Abdullah an amount equal to the SAR 50,000 and the costs of the settlement.
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 333 of the Saudi Civil Transactions Law
Is the seller bound by all consequences of the warranty if the buyer settles with the claimant?
The seller may escape the consequences of the warranty by repaying the buyer an amount equal to the settlement sum and its costs, if the settlement was for money before judgment.
When does this article apply?
When the buyer settles with the entitlement claimant for money before a court judgment is given in the claimant's favor.
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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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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.