Article 370 of the Saudi Civil Transactions Law
المادة 370 من نظام المعاملات المدنية · الفرع الأول: إنشاء عقد الهبة
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.
Official text (Arabic)
This article has not been amended since the law was issued.
تصح هبة الدين للمدين، وتعد إبراء.
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 370 explained in plain English
This article deals with a special form of gift: where the gifted item is a debt, and the donee is the debtor himself.
The article sets out two rules:
- Validity: a gift of a debt to the debtor is valid. A creditor may give his debtor the debt that he owes him.
- Characterization: such a gift is treated as a release, that is, the debt is waived and the debtor is freed from it.
In practical terms, if a creditor tells his debtor that he is giving him the debt, this has the effect of releasing the debtor from the debt, and it is regarded as a release rather than merely an ordinary gift.
This article does not address a gift of a debt to a person other than the debtor; it is limited to a gift of the debt to the debtor himself.
The article is connected to Article 369, which provides that a gift of something the donor does not own does not take effect unless the owner approves it, and to Article 371, which allows a partner to give his share in jointly owned property to his partner or to someone else.
Because waiving a debt has important financial consequences, it is advisable to document it clearly, and to consult a lawyer who specializes in civil cases if there is a dispute over whether the creditor released the debtor.
Practical example
Badr lent his friend ten thousand riyals, and some time later told him that he was giving him this amount as a gift and did not want it back. This is a gift of a debt to the debtor, which is valid, and it is treated as a release of the friend from the debt.
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 370 of the Saudi Civil Transactions Law
Can a creditor give a debt to his debtor?
Yes. A gift of a debt to the debtor is valid.
What is the effect of giving a debt to the debtor?
It is treated as a release of the debtor from the debt.
Does the article cover giving a debt to someone other than the debtor?
No. The article is limited to a gift of the debt to the debtor himself.
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 367
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.
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.
- 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 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.