Article 399 of the Saudi Civil Transactions Law
المادة 399 من نظام المعاملات المدنية · الفصل الخامس: عقد الصلح
The article provides that a settlement does not create a new right in the rights it covers, whereas consideration from outside them does create a right, and the rules on contracts for value apply to it.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يُنشئ الصلح حقًّا جديدًا لأيٍّ من المتصالحين فيما يشمله من الحقوق، وأما عوض الصلح من غير هذه الحقوق فيُنشئ فيه الصلح حقًّا وتسري عليه أحكام المعاوضة بحسب طبيعة العوض والحق المتنازل عنه.
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 399 explained in plain English
This article distinguishes between two kinds of things the settling party obtains under the settlement:
- The rights covered by the settlement itself: that is, the rights that were the subject of the dispute. A settlement does not create a new right in them for either of the settling parties; a person who is left with a right from among these rights did not acquire it through the settlement as a new right.
- Consideration for the settlement from outside these rights: if one of the parties takes consideration that is not among the disputed rights, the settlement creates a right in it, and the rules on contracts for value apply to it according to the nature of the consideration and the nature of the right given up.
In practical terms, what is given in a settlement from outside the subject of the dispute is treated like what is acquired by a contract for value, so the rules appropriate to its type apply to it. The article does not specify the details of those rules; it ties them to the nature of the consideration and of the right given up.
Connected to this article are Article 400, which requires that statements of waiver in a settlement be interpreted narrowly, within the rights that were the subject of the dispute, and Article 398, which allows the parties to settle on each keeping what he has.
To assess a particular situation, it is advisable to consult a lawyer who specializes in civil cases.
Practical example
Nasser and his brother disputed over land in Taif, and they settled on the land remaining with Nasser and his giving his brother a car that he owns. The land was the subject of the dispute, so the settlement does not create a new right in it for Nasser; the car, however, is consideration from outside the disputed right, so the settlement creates a right in it for the brother and the rules on contracts for value apply to it.
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 399 of the Saudi Civil Transactions Law
Does a settlement create a new right in the disputed right?
No. The article provides that a settlement does not create a new right for either of the settling parties in the rights it covers.
What is the rule on consideration given in a settlement from outside the disputed right?
The settlement creates a right in it, and the rules on contracts for value apply to it according to the nature of the consideration and of the right given up.
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.