Article 395 of the Saudi Civil Transactions Law
المادة 395 من نظام المعاملات المدنية · الفصل الخامس: عقد الصلح
The article allows a settlement even if the right is unknown, provided the uncertainty does not prevent delivery and it is impossible to learn the right within a short period, given its nature, amount and location.
Official text (Arabic)
This article has not been amended since the law was issued.
يصح الصلح ولو كان الحق الذي يشمله مجهولًا إذا كانت الجهالة لا تمنع التسليم وكان الحق مما يتعذّر العلم به في مدة قريبة بحسب طبيعة الحق ومقداره ومكانه.
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 395 explained in plain English
The general rule is that the subject of a contract must be known, but this article allows a settlement over an unknown right, under two conditions that must both be met:
- The uncertainty does not prevent delivery: not knowing the right precisely does not prevent it from being delivered.
- The right is one that cannot be learned within a short period: this is assessed according to the nature of the right, its amount and its location.
The practical reasoning is that in some disputes it is hard to determine the right precisely until after a long time, so the Law allows the parties to end the dispute by settlement rather than wait, as long as both conditions are met.
If the uncertainty prevents delivery, or the right can be learned within a short period, the article does not cover that case.
This article is connected to Article 394, which requires that the right being settled be one for which taking consideration is permitted, so that condition must also be met.
To assess a particular situation, it is advisable to consult a lawyer who specializes in civil cases.
Practical example
Two former partners in a business in Qassim have old, complex accounts between them that are hard to count except after a long review of ledgers in several places. They may settle on a sum that resolves the dispute even though the right is not precisely known, if the uncertainty does not prevent delivery.
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 395 of the Saudi Civil Transactions Law
Is a settlement valid over a right whose amount is unknown?
Yes, if the uncertainty does not prevent delivery and the right is one that cannot be learned within a short period, given its nature, amount and location.
Is one of the two conditions enough for a settlement over an unknown right?
No. The text requires both: the uncertainty must not prevent delivery, and the right must be impossible to learn within a short period.
More articles on Settlement Contract
- Article 117
The article binds a person who promises the public a specified reward for a particular act to give it to whoever does the act under the announced conditions, and regulates withdrawal of the promise and the claim period.
1- من وجه للجمهور وعدًا بجائزةٍ محددةٍ على عملٍ معيَّنٍ، التزم بإعطاء الجائزة لمن قام بهذا العمل وفقًا للشروط المعلنة، ولو قام به دون نظر إلى الوعد بالجائزة أو
- Article 232
The Article provides that a settlement between one jointly liable debtor and the creditor takes effect against the others, except where it imposes a new obligation or an increase on them, in which case it takes effect only with the approval of the one affected.
ينفذ الصلح الذي يعقده أحد المدينين المتضامنين مع الدائن على باقي المدينين، ما لم يرتب في ذمتهم التزامًا جديدًا أو زيادةً في التزامهم؛ فإنه لا ينفذ في حق أي منهم
- Article 333
If the buyer settles with the entitlement claimant for money before judgment, the seller may escape the consequences of the warranty by repaying the settlement sum and its costs.
إذا تصالح المشتري مع مدعي الاستحقاق على مال قبل صدور حكم قضائي له، فللبائع أن يتخلص من نتائج الضمان بأن يرد للمشتري ما يعادل بدل الصلح ونفقاته.
- Article 391
The article defines a settlement as a contract by which two parties end an existing dispute or avert a potential one, each giving up his claim or part of it in return for the other's giving up his.
الصلح عقدٌ يحسم بمقتضاه المتصالحان نزاعًا قائمًا أو يتوقيان نزاعًا محتملًا، بأن ينزل كلٌّ منهما على وجه التَّقابل عن مُطالبته أو جزءٍ منها.
- Article 392
The article requires the settling party to have the capacity to dispose of the rights covered by the settlement for consideration, and requires a person who gives up some of his rights without consideration to have full legal capacity.
1- يجب أن يكون المتصالح أهلًا للتصرف بعوضٍ في الحقوق التي يشملها عقد الصلح. 2- إذا تضمن الصلح إسقاط شيءٍ من الحقوق دون مقابل وجب أن يكون من أسقط حقه كامل الأهلي
- Article 393
The article excepts from the capacity requirement in Article 392 the settlement of an authorized discerning minor, which is not valid if it causes him clear harm.
استثناءً من حكم الفقرة (1) من المادة (الثانية والتسعين بعد الثلاثمائة) من هذا النظام؛ لا يصح صلح الصغير المميز المأذون له، إذا ألحق الصلح به ضررًا بيّنًا.
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.