Article 340 of the Saudi Civil Transactions Law
المادة 340 من نظام المعاملات المدنية · الفرع الثاني: آثار عقد البيع أولًا: التزامات البائع
The buyer must check the item after receiving it and notify the seller of a defect within a reasonable time, or as soon as a hidden defect appears, or he is taken to have accepted it.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا تسلّم المشتري المبيع فعليه التحقق من حالته بمجرد أن يتمكّن من ذلك وفقًا للمألوف في التعامل، فإذا كشف عيبًا يضمنه البائع فعليه أن يعلمه به خلال مدة معقولة، فإن لم يفعل عُدَّ قابلًا للمبيع بما فيه من عيب.
2- إذا كان العيب مما لا يمكن الكشف عنه بالفحص المعتاد ثم كشفه المشتري، فعليه أن يعلم به البائع بمجرد ظهوره، وإلا عُدَّ قابلًا للمبيع بما فيه من عيب.
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 340 explained in plain English
This article places two duties on the buyer to preserve his right to the warranty against a defect the seller warrants:
- The duty to inspect: after receiving the item, the buyer must check its condition as soon as he is able to, in accordance with what is usual in dealings.
- The duty to notify: if he discovers a defect the seller warrants, he must notify the seller of it within a reasonable period.
As for a defect that cannot be discovered by ordinary inspection, if the buyer discovers it later he must notify the seller of it as soon as it appears.
The consequence of default: if the buyer does not give notice in this way, he is considered to have accepted the item with its defect, and loses his right to rely on the warranty.
The article does not fix a specific number of days for the reasonable period, but leaves it to what is usual in dealings and the circumstances of each case. It is therefore best for the buyer to give notice promptly, by a means that can be proved.
Article 339 sets out the cases in which the seller does not warrant a defect at all, such as the buyer's knowledge of it at the time of the sale or its occurring after delivery without a prior cause. Article 341 provides that the buyer's acceptance of the defect, expressly or impliedly, forfeits his right to rescind and to recover the price difference, and lists cases in which the right to rescind alone is lost.
If there is a dispute over the timing of notice, it is advisable to consult a lawyer specialized in civil or commercial cases.
Practical example
A company in Jeddah bought a shipment of office furniture, and on receiving it the staff noticed breakage in a number of chairs. The company should notify the seller within a reasonable period, otherwise it is considered to have accepted the defect. If months later a defect appeared in the wood of the desks that ordinary inspection would not reveal, it must notify the seller as soon as it appears.
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 340 of the Saudi Civil Transactions Law
When must I notify the seller of a defect in the item sold?
Within a reasonable period after discovering the defect by inspection; a defect that cannot be discovered by ordinary inspection must be notified as soon as it appears.
What happens if I delay notifying the seller of the defect?
The buyer is considered to have accepted the item with its defect.
Did the article fix a number of days for notifying a defect?
No. It requires a reasonable period according to what is usual in dealings, and notice as soon as a hidden defect appears.
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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.