Article 348 of the Saudi Civil Transactions Law
المادة 348 من نظام المعاملات المدنية · الفرع الثاني: آثار عقد البيع أولًا: التزامات البائع
The price is paid at the place of delivery if it falls due at delivery, otherwise at the place of the contract, unless the parties agree otherwise.
Official text (Arabic)
This article has not been amended since the law was issued.
يلتزم المشتري بأداء الثمن الذي استحق وفاؤه وقت تسليم المبيع في مكان التسليم، وإذا لم يكن الثمن مستحق الوفاء وقت تسليم المبيع، لزم أداؤه في مكان العقد، وذلك كله ما لم يتفق على خلافه.
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 348 explained in plain English
This article answers a practical question: where does the buyer pay the price? It sets two rules according to when the price falls due:
- If the price is due at the time of delivery of the item sold: it is paid at the place of delivery. This is logical because payment and delivery take place at the same time.
- If the price is not due at the time of delivery: for example, where it is deferred to a later date, it is paid at the place of the contract.
Both rules apply unless the parties agree otherwise; for example, they may agree on transfer to a bank account, or payment at the seller's premises or any other place.
Two other articles are linked to it. Article 347 deals with the buyer receiving the item before paying the immediately due price: if that was with the seller's knowledge and he did not prevent it, it counts as permission to receive it, and if it was without his permission the seller may recover it and claim compensation if he chooses recovery. Article 349 permits the buyer to withhold the price if a claim for entitlement to the item is brought against him based on a right predating the sale or one that passed to the claimant from the seller, or if a defect the seller warrants appears to him, until the seller provides suitable security for repayment of the price.
The sale contract should state the place and method of payment expressly to avoid disputes. In a dispute a lawyer specialized in civil cases may be consulted.
Practical example
A trader in Abha bought a quantity of honey from a beekeeper in Al-Baha, on the basis that the honey would be delivered and its price paid at the beekeeper's farm. Here the price is paid at the place of delivery. Had they agreed that the price would be paid a month later without specifying a place, payment would be at the place where the contract was made.
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 348 of the Saudi Civil Transactions Law
Where must the price of the item sold be paid?
At the place of delivery if the price is due at the time of delivery, otherwise at the place of the contract, unless the parties agree otherwise.
May the parties agree on another place for payment of the price?
Yes. The article provides that its ruling 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.