Article 396 of the Saudi Civil Transactions Law
المادة 396 من نظام المعاملات المدنية · الفصل الخامس: عقد الصلح
The article allows a settlement over rights whether the defendant admitted them, denied them, or remained silent without admitting or denying.
Official text (Arabic)
This article has not been amended since the law was issued.
يصح الصلح عن الحقوق سواء أقر بها المدعى عليه أو أنكرها أو سكت ولم يبد فيها إقرارًا ولا إنكارًا.
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 396 explained in plain English
This article shows that the validity of a settlement does not depend on the defendant's position on the right claimed. A settlement is valid in three cases:
- Settlement with admission: where the defendant acknowledges the right and the parties then agree on a settlement.
- Settlement with denial: where the defendant denies the right yet accepts the settlement.
- Settlement with silence: where the defendant stays silent and neither admits nor denies.
The practical importance of this is that a person can end a dispute by settlement without being forced to admit that what is claimed against him is correct, and a claimant can accept a settlement without waiting for his opponent's admission.
This is consistent with the definition of a settlement in Article 391 as resolving an existing dispute or averting a potential one; a dispute may rest on a denial or on silence. Article 397 also sets out forms of settlement such as settling on part of what is claimed, or on postponing or accelerating it.
To assess a particular situation, it is advisable to consult a lawyer who specializes in civil cases.
Practical example
Khaled claimed that his former colleague owed him 15,000 riyals, and the colleague denied the debt, but wished to end the disagreement, so they agreed that he would pay him 7,000 riyals as a settlement. This settlement is valid even though the colleague denied 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 396 of the Saudi Civil Transactions Law
Is a settlement valid if the defendant denies the right?
Yes. The article provides that a settlement is valid whether the defendant admits the right or denies it.
Is a settlement valid if the defendant stays silent?
Yes. A settlement is valid even if the defendant stays silent and neither admits nor denies.
Does accepting a settlement mean admitting the right?
The article does not require admission for a settlement to be valid, so it is valid with denial or silence.
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.