Article 402 of the Saudi Civil Transactions Law
المادة 402 من نظام المعاملات المدنية · الفصل الخامس: عقد الصلح
The article limits the effect of a settlement to the rights it covered and resolved the dispute over, so it does not extend to any others.
Official text (Arabic)
This article has not been amended since the law was issued.
يقتصر أثر الصلح على الحقوق التي شملها وحسم النزاع فيها دون غيرها.
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 402 explained in plain English
This article sets the scope of the effect of a settlement: it is limited to the rights that the settlement covered and resolved the dispute over, and does not extend to other rights.
If two persons have more than one right or more than one disagreement, and they settle only some of them, the other rights remain as they were, and their holder may still claim them, because the settlement did not cover them.
This article complements closely related provisions:
- Article 401 provides that a settlement extinguishes the rights and claims given up by the settling parties and prevents withdrawal from it; this article makes clear that this is confined to the rights the settlement covered.
- Article 400 requires that statements of waiver be interpreted narrowly, within the rights that were the subject of the dispute.
The practical benefit is that the parties should take care, when writing the settlement, to specify precisely the rights it covers; if they want to end everything between them, they should say so clearly, and if they want to resolve only one matter, other matters are not affected.
To assess a particular situation, it is advisable to consult a lawyer who specializes in civil cases.
Practical example
Omar settled with a contractor in Abha over a dispute about the delay in delivering his house annex. After the settlement, another dispute arose over the quality of the plumbing work, which was not the subject of the settlement. The effect of the settlement is limited to the dispute over the delay, and does not prevent Omar from making a claim about the plumbing.
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 402 of the Saudi Civil Transactions Law
Does a settlement cover all the rights between the parties?
No. Its effect is limited to the rights it covered and resolved the dispute over, and no others.
Can a right that the settlement did not cover still be claimed?
The article limits the effect of a settlement to what it covered, so its effect does not extend to other rights it did not cover.
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.