Article 458 of the Saudi Civil Transactions Law
المادة 458 من نظام المعاملات المدنية · الفرع الثاني: آثار عقد الإعارة
The article prevents the borrower from dealing with the thing lent in a way that creates a right in it or in its use for anyone, except with the lender's permission.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يجوز للمستعير أن يتصرف في الشيء المعار تصرفًا يرتب لأحدٍ حقًّا في عينه أو منفعته إلا بإذن المعير.
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 458 explained in plain English
This article puts an important restriction on the borrower: the borrower may not deal with the thing lent in a way that creates a right in it for anyone, except with the lender's permission.
The prohibition covers two kinds of rights mentioned in the text:
- A right in the thing itself: that is, in the thing as such.
- A right in its use: that is, in the benefit of using it, which includes the borrower letting another person use the thing under a dealing that gives that person a right in its use.
The reason for this rule is that the borrower uses the thing and does not own it, so the borrower neither owns the thing nor has the power to create rights in it for others by the borrower's will alone. If the lender permits, dealing is allowed within the limits of the permission.
This article follows Article 457, which requires the borrower to use the thing in the customary way and within the agreed restrictions, so it completes the limits of what the borrower may do with the thing. Article 459, which comes after it, turns to the end of the loan on the death of the lender or the borrower. The text does not set the consequence of breaching this prohibition, so if that happens it is advisable to consult a lawyer specializing in civil matters.
Practical example
Talal borrowed a rest-house apartment from a relative for a vacation, and then offered it for daily rental to others without his relative's knowledge. This is a dealing that creates a right in the use of the thing lent for the renters, and Talal may not do it except with the permission of his relative, the lender.
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 458 of the Saudi Civil Transactions Law
May a borrower rent out the thing borrowed?
The borrower may not deal with it in a way that creates a right in the thing itself or in its use for anyone, except with the lender's permission.
What if the lender gives permission for the dealing?
The prohibition applies only where there is no permission. If the lender permits, the dealing is allowed within the limits of the permission.
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.