Article 460 of the Saudi Civil Transactions Law
المادة 460 من نظام المعاملات المدنية · الفرع الثالث: انتهاء عقد الإعارة
The article provides that a loan for use ends when the term expires or the use is exhausted, and requires the lender to accept the thing if the borrower returns it early, unless that would cause harm.
Official text (Arabic)
This article has not been amended since the law was issued.
1- ينتهي عقد الإعارة بانقضاء الأجل المتفق عليه أو باستيفاء المنفعة محل الإعارة.
2- إذا رد المستعير الشيء المعار قبل انقضاء مدة الإعارة؛ لزم المعير تسلمه؛ ما لم يترتب على ذلك ضرر.
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 460 explained in plain English
This article deals with the grounds on which a contract of loan for use ends and the rule on early return.
First: the end of the loan. The contract ends on one of two grounds:
- Expiry of the agreed term: if a period was set for the loan.
- Exhaustion of the use for which the thing was lent: if the loan was for a specific purpose and that purpose has been achieved.
These grounds add to what Article 459 provided, that a loan ends on the death of the lender or the borrower.
Second: return before the period expires. If the borrower wants to return the thing lent before the loan period expires, the lender must accept it. The logic is that a loan for use is essentially in the borrower's interest, so the borrower may give up the rest of the period. But the text excepts the case where the early return would cause harm, in which case the lender is not bound to accept it.
The text does not specify the forms of harm that prevent requiring the lender to accept, so assessing it depends on the circumstances of each case. In a dispute about the end of a loan or about early return, it is advisable to consult a lawyer specializing in civil matters.
Practical example
Nayef lent his friend camping equipment for two weeks, but the friend canceled his trip after three days and wanted to return it. Nayef must accept the equipment before the period expires, unless returning it at this time would cause harm. Had the friend completed the two weeks, the loan would end on the expiry of the agreed term.
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 460 of the Saudi Civil Transactions Law
When does a contract of loan for use end?
It ends on the expiry of the agreed term or when the use for which the thing was lent has been exhausted.
Must the lender accept the thing if it is returned before the period ends?
Yes, the lender must accept it, unless that would cause harm.
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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.