Article 365 of the Saudi Civil Transactions Law
المادة 365 من نظام المعاملات المدنية · الفصل الثاني: عقد المقايضة
The rules of the sale contract apply to the exchange contract to the extent they do not conflict with the nature of exchange.
Official text (Arabic)
This article has not been amended since the law was issued.
تسري على عقد المقايضة أحكام عقد البيع بما لا يتعارض مع طبيعته.
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 365 explained in plain English
The Law has set only a few articles for the exchange contract, so this article fills the gap with a general rule of reference: the rules of the sale contract apply to exchange.
But this reference is subject to an important condition: that applying the rule of sale does not conflict with the nature of exchange; a rule of sale that does not suit the nature of this contract is not applied to it.
In practice this means:
- the fallback reference for everything on which there is no specific provision for exchange is the rules of the sale contract in this Law;
- each rule of sale is examined to see whether it is consistent with the nature of exchange or conflicts with it, before it is applied;
- where there is a specific provision for exchange, that provision applies, such as Article 364, which divides the costs equally unless otherwise agreed.
This article does not specify a list of the rules that conflict with the nature of exchange; that depends on the rule sought to be applied and the circumstances of the contract.
To know whether a particular rule of sale applies to your exchange, it is advisable to consult a lawyer specialized in civil cases.
Practical example
A firm in Riyadh exchanged office equipment with another firm in return for furniture, and one of them then found a defect in what it received. In this case the rules of the sale contract in the Civil Transactions Law are consulted to determine its rights, to the extent they do not conflict with the nature of exchange.
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 365 of the Saudi Civil Transactions Law
What rules govern the exchange contract?
The provisions specific to exchange govern it, and the rules of the sale contract apply to it to the extent they do not conflict with its nature.
Do all the rules of sale apply to exchange?
No. The article limits their application to what does not conflict with the nature of exchange.
If a defect appears in something I took by exchange, what is the reference?
The rules of the sale contract in the Law, to the extent consistent with the nature of exchange.
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.