Article 345 of the Saudi Civil Transactions Law
المادة 345 من نظام المعاملات المدنية · الفرع الثاني: آثار عقد البيع أولًا: التزامات البائع
As a rule the buyer must pay the price before receiving the item sold, unless the parties agree otherwise.
Official text (Arabic)
This article has not been amended since the law was issued.
يلزم المشتري أداء الثمن قبل تسلُّم المبيع؛ ما لم يتفق 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 345 explained in plain English
This article sets the timing of payment of the price in a sale contract. The rule is that the buyer must pay the price before receiving the item sold.
But this rule is not absolutely binding; it applies unless the parties agree otherwise. They may agree, for example, on:
- payment on delivery;
- payment after delivery;
- payment of the price in installments or deferred.
The importance of this rule appears where there is no agreement: the seller is not obliged to deliver the item before he receives the price. This is clear from Article 346, which gives the seller the right to withhold the item until he receives what is due to him of the price, even if the buyer provided a pledge or a guarantee, and makes the risk of loss or damage to the item while in the withholding seller's hands fall on the buyer. But if the seller accepts deferral of the price, his right of withholding lapses and he must deliver the item.
Article 344 deals with a different matter, the period for hearing a claim on the warranty against defects, which is 180 days from the date of delivery of the item unless the seller undertook the warranty for a longer period.
To avoid disputes, the sale contract should state expressly when and how the price is to be paid. When these terms need drafting, a lawyer specialized in civil cases may be consulted.
Practical example
Sarah agreed with a furniture showroom in Jeddah to buy a bedroom set, and the contract did not state when to pay. Sarah asked for delivery first, but the rule is that she must pay the price before receiving the set. Had the contract provided for payment after installation, the agreement would have applied.
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 345 of the Saudi Civil Transactions Law
Must the price be paid before receiving the item sold?
Yes, this is the rule, unless the seller and buyer agree otherwise.
May the parties agree on payment after receipt?
Yes. The article makes payment of the price before receipt a rule that applies unless otherwise agreed.
More articles on Sale Contract
- Article 23
The article defines consumable things as those whose use, according to what they are prepared for, is limited to consuming or spending them, and treats everything prepared in stores for sale as consumable.
الأشياء القابلة للاستهلاك هي التي ينحصر استعمالها -بحسب ما أُعدّت له- في استهلاكها أو إنفاقها، ويعد قابلًا للاستهلاك كل ما أعد في المتاجر للبيع.
- Article 44
Paying earnest money gives only the payer the right to withdraw from the contract without recovering it, unless otherwise agreed; the court sets the withdrawal period if the parties have not.
1- دفع العربون عند إبرام العقد يفيد أن لدافع العربون وحده الحق في العدول عن العقد، وليس له إذا عدل أن يسترد مبلغ العربون، وذلك كله ما لم يتفق على خلافه. 2- إذا
- 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.
تُعدُّ عقود المعاوضات منعقدةً على أساس سلامة محل العقد من العيوب إلا ما جرى العرف على التسامح فيه، فإذا تبيَّن في المحل عيبٌ لم يجر العرف على التسامح فيه؛ عُدَّ
- Article 165
The article provides that a right to a thing specified by kind attaches to a particular item only once it is set apart, and lets the creditor, on non-performance, obtain a like item at the debtor's expense.
1- إذا تعلق الحق بشيء معين بالنوع لا بالذات، فإنه لا يختص بشيء بذاته من ذلك النوع إلا بإفرازه. 2- إذا لم يقم المدين بتنفيذ التزامه جاز للدائن أن يحصل على شيء من
- Article 166
The article places the risk of destruction or damage on the debtor who failed to deliver, in two cases: transfer of a real right and an obligation to perform work involving delivery, each on different conditions.
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
- Article 307
Article 307 defines sale as a contract under which the seller transfers ownership of the item sold to the buyer for a cash price.
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.