Article 403 of the Saudi Civil Transactions Law
المادة 403 من نظام المعاملات المدنية · الفصل السادس: عقد المسابقة
The article defines a contest as a contract in which a person undertakes to give a prize to whoever wins a race in which winning depends on the contestant's own work.
Official text (Arabic)
This article has not been amended since the law was issued.
المسابقة عقدٌ يلتزم بمقتضاه شخصٌ ببذل جُعلٍ لمن يفوز في سباقٍ يتوقف الفوز فيه على عمل المتسابق.
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 403 explained in plain English
This article sets out the definition of the contest contract in the Civil Transactions Law. The definition rests on specific elements:
- The person undertaking the prize: a person who undertakes to give a prize, that is, a reward or award.
- The person entitled to the prize: whoever wins the race.
- The nature of winning: winning must be dependent on the contestant's work, that is, on his effort, skill or performance.
The last element is what distinguishes a contest as the text defines it; winning in it is the result of work done by the contestant. Cases in which winning does not depend on the contestant's work are therefore not covered by this definition.
Article 404 explains who may undertake the prize, allowing it to be from some of the contestants or from others, and not allowing it to be from all of them. Article 406 also provides that any agreement on gambling is void.
If you are an organizer of, or a participant in, a contest with prizes and want to be sure its arrangements are sound, it is advisable to consult a lawyer who specializes in civil cases.
Practical example
A company in Riyadh announced a prize of 10,000 riyals for the fastest runner in a running race it is organizing. It is undertaking to give the prize to whoever wins, and winning depends on the contestant's performance, so this is a contest contract.
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 403 of the Saudi Civil Transactions Law
What is a contest contract under the Law?
It is a contract by which a person undertakes to give a prize to whoever wins a race in which winning depends on the contestant's work.
What is meant by the prize?
It is what the person undertakes to give to the winner of the race, that is, the award or reward.
Must winning depend on the contestant's effort?
Yes. The definition requires that winning depend on the contestant's work.
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.