Article 406 of the Saudi Civil Transactions Law
المادة 406 من نظام المعاملات المدنية · الفصل السادس: عقد المسابقة
The article provides that any agreement on gambling is void.
Official text (Arabic)
This article has not been amended since the law was issued.
يقع باطلًا كلُّ اتفاقٍ على قمار.
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 406 explained in plain English
This article sets out a categorical rule: any agreement on gambling is void.
The text is general, since it uses the words "any agreement", so it covers any agreement whose subject is gambling, whatever its form or name.
The presence of this rule alongside the provisions on the contest contract has a practical significance: Article 403 defines a lawful contest as a contract in which a person undertakes a prize for whoever wins a race in which winning depends on the contestant's work, and Article 404 does not allow the undertaking of the prize to come from all of the contestants. An agreement on gambling, by contrast, is void.
What follows in practice:
- An agreement on gambling is not a valid contract, because the text provides that it is void.
- Calling the agreement a "contest" does not change its ruling if in reality it is an agreement on gambling.
The article does not define gambling and does not detail the consequences of invalidity; these are referred to the rules on invalidity in the Law.
To assess a particular situation, it is advisable to consult a lawyer who specializes in civil cases.
Practical example
Two persons in Riyadh agreed that each would put down 2,000 riyals and that whoever correctly predicts the result of a match would take the whole amount. If this agreement is gambling, it is void under the article, and no valid obligation arises from 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 406 of the Saudi Civil Transactions Law
What is the ruling on a gambling agreement under the Civil Transactions Law?
It is void, as the article provides that any agreement on gambling is void.
Does calling the agreement a contest change its ruling?
The text makes void any agreement on gambling, so what matters is the reality of the agreement, not its name.
Does the article define gambling?
No. It is limited to providing that any agreement on gambling is void.
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.