Article 364 of the Saudi Civil Transactions Law
المادة 364 من نظام المعاملات المدنية · الفصل الثاني: عقد المقايضة
The costs of an exchange contract are shared equally between its two parties unless they agree on another division.
Official text (Arabic)
This article has not been amended since the law was issued.
تكون نفقات عقد المقايضة مناصفة بين طرفي العقد 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 364 explained in plain English
This article deals with a practical matter that often causes disputes: who bears the costs of an exchange contract?
The ruling it sets:
- The rule: the costs of the contract are shared equally between the parties, that is, each bears half.
- The exception: if the parties agree on a different division, such as one bearing them in full or in another proportion, their agreement applies.
This article is linked to Article 363, which provides that adding cash to make up a difference in value does not take the contract out of being an exchange unless the consideration is of less value than the cash added, in which case it becomes a sale; the equal-sharing rule here is specific to the exchange contract.
The article does not list the types of costs meant; it speaks of the costs of the exchange contract in general. It helps the parties to state expressly in the contract how costs are divided if they want something other than equal shares, to avoid later disputes.
Article 365 provides that the rules of the sale contract apply to exchange to the extent they do not conflict with its nature, but on the matter of costs this specific provision for exchange has been laid down.
In a dispute over particular costs, it is advisable to consult a lawyer specialized in civil cases.
Practical example
Abdullah and Nasser exchanged two plots of land in Qassim, and did not state in the contract who bears the costs. Under this article the costs of the exchange contract are shared equally between them; had they agreed beforehand that Abdullah alone would bear them, their agreement would apply.
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 364 of the Saudi Civil Transactions Law
Who bears the costs of an exchange contract?
They are shared equally between the parties unless they agree otherwise.
May it be agreed that one party bears the costs?
Yes. The article makes equal sharing the rule unless the parties agree otherwise.
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.