Article 451 of the Saudi Civil Transactions Law
المادة 451 من نظام المعاملات المدنية · الفرع الأول: إنشاء عقد الإعارة
The article defines a loan for use as a contract in which the lender lets the borrower use a non-consumable thing for a period or a specific purpose, free of charge, on the condition that the borrower returns it.
Official text (Arabic)
This article has not been amended since the law was issued.
الإعارة عقد يمكِّن بمقتضاه المعيرُ المستعيرَ من الانتفاع بشيءٍ غير قابل للاستهلاك مدةً معينةً أو لغرضٍ معينٍ دون عوضٍ على أن يرده.
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 451 explained in plain English
This article gives the definition of the contract of loan for use, which people commonly describe as lending a thing to be used and then returned. The definition shows that a loan for use has two parties: the lender, the owner of the thing who allows it to be used, and the borrower, the person who uses it.
According to the text, the contract rests on the following elements:
- Use, not ownership: the borrower uses the thing and does not own it, and must return it.
- A non-consumable thing: something that remains after use and can be returned in itself, such as a car, a tool or a book, not something that is used up.
- A specific period or purpose: the use is for a defined period or a defined purpose.
- Free of charge: a loan for use is gratuitous, so the borrower pays nothing for the use.
This definition shows what distinguishes a loan for use from a lease, where use is in return for rent. Article 452 then adds a condition for a loan for use to come into being, which is taking possession of the thing lent; mere agreement is not enough. Knowing this definition matters because describing a relationship as a loan for use determines which rules apply to it. If a dispute arises about the nature of a particular arrangement, it is advisable to consult a lawyer specializing in civil matters.
Practical example
Khaled gave his neighbor Saad an electric drill to use for a week to put up shelves in his house, without asking for anything in return, on the basis that Saad would return it after the work. This arrangement is a loan for use: Khaled is the lender, and Saad is the borrower who uses the drill for a set period and a specific purpose and then returns it. Had Khaled asked for a sum for the use, the arrangement would not be a loan for use, because a loan for use is free of charge.
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 451 of the Saudi Civil Transactions Law
What is a loan for use under the Civil Transactions Law?
A contract in which the lender lets the borrower use a non-consumable thing for a specific period or purpose, free of charge, on the condition that the borrower returns it.
Can a loan for use be for payment?
No. The definition states that the use is free of charge.
Can a thing that is used up by use be lent?
The definition requires the thing lent to be non-consumable, because the borrower must return it.
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.