Article 420 of the Saudi Civil Transactions Law
المادة 420 من نظام المعاملات المدنية · الفرع الثاني: التزامات المؤجر
The article provides that the lease contract terminates of its own accord if the leased item is totally destroyed during the lease period.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا هلك المأجور أثناء مدة الإيجار هلاكًا كليًّا انفسخ العقد من تلقاء نفسه.
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 420 explained in plain English
This article deals with the case of total destruction of the leased item, and provides that the lease contract terminates of its own accord if two conditions are met:
- The destruction is total: that is, the whole of the leased item is gone, not just part of it.
- It occurs during the lease period: that is, after the period has begun and before it has ended.
"Terminates of its own accord" means that the contract ends by operation of law as soon as the total destruction occurs, without either party needing to request termination. The reasoning is that a lease, as defined in Article 407, rests on enabling the lessee to benefit from the leased item for a specified period, and if the whole of the leased item is destroyed, this benefit is no longer possible.
This rule differs from the case of partial destruction dealt with in Article 421: if the leased item is partially destroyed or comes to be in a condition that reduces the benefit for which it was leased, and that is not due to the lessee, he may request termination of the contract or a reduction of the rent; the contract there does not terminate automatically.
This article does not address the question of responsibility for the cause of the destruction or compensation for it.
To assess a particular situation, it is advisable to consult a lawyer who specializes in real estate or civil cases.
Practical example
A company leased a warehouse in Jeddah for three years, and in the second year a fire destroyed the whole warehouse. The lease contract terminates of its own accord because of the total destruction, without any need for a request for termination.
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 420 of the Saudi Civil Transactions Law
What happens to the lease contract if the leased property is completely destroyed?
The contract terminates of its own accord if the destruction is total and occurs during the lease period.
Does the lessee need to request termination in case of total destruction?
No. The contract terminates of its own accord.
What is the rule if the destruction is partial?
Article 421 provides that the lessee may request termination or a reduction of the rent if the destruction is not due to him.
More articles on Lease Contract
- Article 287
The article prevents set-off between a depositary's debt against the depositor and the deposit, or between a borrower's debt against the lender and the loaned item, except by agreement of the parties.
إذا كان للمودع لديه دينٌ على المودع أو كان للمستعير دين على المعير، فلا تقع المقاصة بين الدين والوديعة أو بين الدين والشيء المعار ولو كان الدين من نوع أي منهما
- Article 296
The article sets a period of 5 years after which a claim is not heard against a party who denies it, for the rights of the liberal professions and recurring periodic rights, with an exception of 10 years for the proceeds owed by a bad-faith possessor and endowment proceeds.
دون إخلال بالنصوص النظامية، لا تُسمع الدعوى على المنكر بانقضاء (خمس) سنوات في الحقوق الآتية: أ- حقوق أصحاب المهن الحرة، كالأطباء والمحامين والمهندسين عما أدوه م
- Article 407
The article defines a lease as a contract by which the lessor enables the lessee to benefit from a non-consumable thing for a specified period in return for rent.
الإيجار عقد يُمَكِّنُ بمقتضاه المؤجر المستأجر من الانتفاع مدةً معينةً بشيءٍ غير قابل للاستهلاك مقابل أجرةٍ.
- Article 408
The article allows the leased item to be a thing, a usufruct or a right, specified individually or by type, and also allows it to be an undivided share.
1- يصح أن يكون المأجور عينًا أو منفعةً أو حقًّا؛ سواء كان معيَّنًا بالذات أو بالنوع. 2- يصح أن يكون المأجور حصَّةً شائعة.
- Article 409
The article allows it to suffice to state sound bases for determining the rent, and allows the rent to be a specified sum together with a known percentage of the output or profit.
يصح أن يقتصر تقدير الأجرة على بيان أسسٍ صالحةٍ تتحدد بمقتضاها، ويصح أن تكون بمبلغٍ معيَّنٍ مع نسبةٍ معلومةٍ من الناتج أو من الربح.
- Article 410
The article allows a lease contract to require that the rent be paid in advance, deferred or paid in installments.
يصح اشتراط تعجيل الأجرة أو تأجيلها أو تقسيطها.
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.