Article 350 of the Saudi Civil Transactions Law
المادة 350 من نظام المعاملات المدنية · الفرع الثاني: آثار عقد البيع أولًا: التزامات البائع
If the seller stipulates that there is no sale if the price is not paid by a set date and it is not paid, the sale counts as rescinded if the seller chooses, without notice.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا حُدد في البيع موعدٌ معيَّنٌ، واشترط البائع أنه إذا لم يؤد المشتري الثمن في الموعد فلا بيع بينهما، ولم يؤده؛ عُدَّ البيع مفسوخًا إذا اختار البائع ذلك، دون حاجةٍ إلى إعذار، 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 350 explained in plain English
This article deals with a common clause in sale contracts: the contract fixes a specific date for payment of the price, and the seller stipulates that if the buyer does not pay the price by the date, there is no sale between them.
If the buyer does not pay by the date, the following results:
- The sale counts as rescinded, but if the seller chooses that; rescission here is an option of the seller, who may instead hold to the sale and claim the price.
- The seller does not need to give notice to the buyer, that is, he need not send him a prior warning before treating the sale as rescinded.
For this ruling to apply, two things must come together: a specific date for payment of the price, and an express stipulation by the seller that there is no sale if the price is not paid by that date. The whole ruling also applies unless the parties agree otherwise; for example, they may agree that notice is required despite the clause.
In a related context, Article 349 permits the buyer to withhold the price if a claim for entitlement is brought against him based on a right predating the sale or one that passed to the claimant from the seller, or if a warranted defect appears to him, until the seller provides suitable security. Article 351 obliges the buyer to receive the item at the place where it is at the time of the sale and to remove it without delay.
When drafting this clause, or in a dispute over its application, it is advisable to consult a lawyer specialized in civil cases.
Practical example
Yousef sold his car to a person in Jeddah, and the contract provided that the price must be paid before the end of the month, otherwise there is no sale between them. The month ended and the buyer had not paid. Yousef may treat the sale as rescinded without sending a warning, or instead hold to the sale and claim the price.
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 350 of the Saudi Civil Transactions Law
Is the sale rescinded automatically if the buyer does not pay by the stipulated date?
It counts as rescinded if the seller chooses that; rescission is the seller's option and does not happen automatically.
Must the seller warn the buyer before rescinding?
No. If the clause exists and the price is not paid by the date, no notice is needed, unless otherwise agreed.
What are the conditions for applying this article?
A specific date for payment of the price, the seller's stipulation that there is no sale if the buyer does not pay it by then, and the buyer's non-payment.
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.