Article 367 of the Saudi Civil Transactions Law
المادة 367 من نظام المعاملات المدنية · الفرع الأول: إنشاء عقد الهبة
The article allows the donor to impose a specific obligation on the donee, and makes the contract one for value if the donor requires consideration.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يصح أن يشترط الواهب التزامًا معيَّنًا على الموهوب له.
2- إذا اشترط الواهب عوضًا على الموهوب له فيكون العقد معاوضة تطبق عليه أحكام المعاوضات بحسب طبيعة العوض.
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 367 explained in plain English
Under Article 366, the basic rule is that a gift transfers ownership without consideration. This article deals with the case where the donor wants to attach a condition to his gift, and it distinguishes between two situations:
- Imposing a specific obligation: the donor may validly impose a specific obligation on the donee, and the contract remains a gift.
- Requiring consideration: if the donor requires consideration from the donee, the contract is a contract for value, and the rules on contracts for value apply according to the nature of the consideration. For example, if the consideration is money, the contract may come close to a sale, and if it is non-monetary property, it may come close to an exchange, depending on the nature of the consideration.
The article does not set out a detailed test for distinguishing between an "obligation" and "consideration"; this depends on how the condition is worded and on the circumstances of the contract. The difference matters, because it determines whether the rules on gifts apply or the rules on a contract for value.
Whether a gift is formed, conditional or not, remains subject to Article 368, which requires that a gift of real estate be documented in accordance with the legal provisions, and which accepts either documentation or delivery for movable property.
Anyone who wishes to make a conditional gift should word the condition clearly in the contract, and should consult a lawyer who specializes in civil cases if there is doubt about how the contract is to be characterized.
Practical example
Abu Mohammed gave his nephew a small farm and required him to take charge of watering the date palms of the village mosque. This is a condition imposing a specific obligation and is valid, and the contract remains a gift. If he had instead required him to pay a sum of money in return for the farm, the contract would be a contract for value to which its rules apply according to the nature of the consideration.
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 367 of the Saudi Civil Transactions Law
Can a donor set a condition for the donee?
Yes. The donor may validly impose a specific obligation on the donee.
What happens if the donor requires consideration?
The contract becomes a contract for value, and the rules on such contracts apply according to the nature of the consideration.
Does a conditional gift need to be documented?
Article 368 requires a gift of real estate to be documented in accordance with the legal provisions to be formed, and for movable property it accepts documentation or delivery, even without documentation.
More articles on Gift
- Article 293
The article subjects release to the substantive provisions on gifts and does not require a particular form for it.
تسري على الإبراء الأحكام الموضوعية للتبرعات، ولا يُشترط فيه شكل خاص.
- Article 366
The article defines a gift as a contract by which the donor, during his lifetime, transfers ownership of property to the donee without consideration.
الهبة عقد يُملِّكُ بمقتضاه الواهبُ حال حياته الموهوب له مالًا دون عوض.
- Article 368
The article requires that a gift of real estate be documented in accordance with the legal provisions to be formed, and accepts documentation or delivery for a gift of movable property, even without documentation.
1- إذا كان الموهوب عقارًا فلا تنعقد هبته إلا بتوثيقها وفق النصوص النظامية. 2- إذا كان الموهوب منقولًا فلا تنعقد هبته إلا بتوثيقها وفق النصوص النظامية أو بالقبض
- Article 369
The article provides that a gift of property the donor does not own does not take effect, unless the owner approves it.
لا ينفذ عقد الهبة إذا كان الموهوب غير مملوك للواهب إلا إذا أجازه المالك.
- Article 370
The article allows a creditor to give the debt to the debtor himself, and treats such a gift as a release of the debtor from the debt.
تصح هبة الدين للمدين، وتعد إبراء.
- Article 371
The article allows a partner to give his share in jointly owned property to his partner or to someone else, whether the property is real estate or movable, even if it is divisible.
تصح هبة الشريك حصته في المال الشائع لشريكه أو لغيره عقارًا كان أو منقولًا، ولو كان الموهوب قابلًا للقسمة.
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.