Article 454 of the Saudi Civil Transactions Law
المادة 454 من نظام المعاملات المدنية · الفرع الثاني: آثار عقد الإعارة
The article provides that the lender does not warrant that the thing lent is free from third-party entitlement or defects, unless the lender deliberately concealed them or warranted that it was free of them.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يضمن المعير استحقاق الشيء المعار ولا خلوه من العيوب، ولكنه مسؤولٌ عما يلحق المستعير من ضرر بسبب الاستحقاق أو العيب إذا تعمد إخفاء أي منهما أو ضمن خلو الشيء المعار منهما.
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 454 explained in plain English
This article sets the limits of the lender's liability for the thing lent. The rule is that the lender does not warrant two things:
- Eviction by a third party's entitlement: that is, another person turning out to have a right in the thing lent.
- Defects: that is, that the thing is free of defects.
This rule is understood in light of the fact that a loan for use is use free of charge, so a lender who gave the use of property gratuitously is not burdened with a full warranty like the one required of someone who is paid.
But the article makes two exceptions in which the lender is liable for the harm suffered by the borrower because of the third-party entitlement or the defect:
- If the lender deliberately concealed the entitlement or the defect.
- If the lender warranted that the thing lent was free of them.
The mere existence of a defect is therefore not enough to hold the lender liable; there must be deliberate concealment or an undertaking by the lender that the thing is free of defect or entitlement. In contrast, Article 455 sets the borrower's duty to look after the thing lent. Because proving deliberateness or a warranty is a matter of fact, in a dispute it is advisable to consult a lawyer specializing in civil and compensation matters.
Practical example
Majed borrowed a metal ladder from a friend to clean the front of his house. The friend knew that one of its rungs was broken and deliberately hid this, and Majed fell and was injured. Here the friend is liable for the harm because he deliberately concealed the defect. Had he not known of the defect and not undertaken that the ladder was safe, the rule is that he does not warrant 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 454 of the Saudi Civil Transactions Law
Does the lender warrant the defects of the thing lent?
The rule is that the lender does not warrant that the thing lent is free of defects, unless the lender deliberately concealed the defect or warranted that the thing was free of it.
When is the lender liable for harm suffered by the borrower?
If the harm results from a third-party entitlement or a defect that the lender deliberately concealed, or that the lender warranted the thing lent was free of.
What is meant by warranty against third-party entitlement in a loan for use?
It is the warranty that no other person will turn out to have a right in the thing lent. The lender gives it only if the lender deliberately concealed the entitlement or undertook that the thing was free of it.
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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
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- 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
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1- يصح أن يكون المأجور عينًا أو منفعةً أو حقًّا؛ سواء كان معيَّنًا بالذات أو بالنوع. 2- يصح أن يكون المأجور حصَّةً شائعة.
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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
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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.