Article 404 of the Saudi Civil Transactions Law
المادة 404 من نظام المعاملات المدنية · الفصل السادس: عقد المسابقة
The article allows the undertaking of the prize in a contest to come from some of the contestants or from others, and does not allow it to come from all the contestants.
Official text (Arabic)
This article has not been amended since the law was issued.
يصحُّ في المسابقة أن يكون الالتزام بالجُعل من بعض المتسابقين أو من غيرهم، ولا يصحُّ أن يكون من جميعهم.
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 404 explained in plain English
This article specifies who may undertake the prize in the contest contract defined in Article 403.
The article sets out three cases:
- The prize from non-contestants: such as an organizing or sponsoring body or a person who is not taking part in the race; this is permitted.
- The prize from some of the contestants: such as one or some of the contestants undertaking the prize without the others; this is also permitted.
- The prize from all the contestants: such as each participant paying a sum and the winner taking the total; this is not valid under the text of the article.
The deciding factor is therefore that the contest has at least one contestant who does not undertake the prize, or that the prize comes from outside them.
Article 405 completes this rule for contests between teams, treating each team as one person in undertaking the prize. Article 406 provides that any agreement on gambling is void.
To assess the arrangements of a particular contest, it is advisable to consult a lawyer who specializes in civil cases.
Practical example
A sports club in Khobar organized a cycling race, and one of the contestants donated a prize of 3,000 riyals for the winner, which is permitted. But if all the contestants agreed that each would pay 500 riyals and the winner would take the total, this would not be valid under the article.
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 404 of the Saudi Civil Transactions Law
Who may pay the prize of a contest?
The undertaking of the prize may come from some of the contestants or from others.
Can all the contestants pay the prize?
No. The article provides that the undertaking of the prize may not come from all the contestants.
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.