Article 476 of the Saudi Civil Transactions Law
المادة 476 من نظام المعاملات المدنية · الفرع الخامس: انتهاء عقد المقاولة
The article allows either party to a contracting contract to request its termination if a supervening excuse relating to performance arises for it, while compensating the other party for the harm of termination.
Official text (Arabic)
This article has not been amended since the law was issued.
لكل من المتعاقدين طلب فسخ عقد المقاولة إذا حدث له عذر طارئ يتعلق بتنفيذ العقد، ويلزمه تعويض المتعاقد الآخر عما ينشأ عن هذا الفسخ من 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 476 explained in plain English
This article gives both the contractor and the client the right to request termination of the contracting contract, but on a condition and in return for something:
- The condition: a supervening excuse relating to performance of the contract must arise for the party requesting termination. A mere change of wish is not enough, nor is an excuse unrelated to performance of the contract.
- The return: the party requesting termination must compensate the other contracting party for the harm arising from the termination.
The article thus balances two things: flexibility that allows leaving the contract on a supervening circumstance, and protection of the other party by compensating it for the harm caused by the termination. Note that the text speaks of "requesting" termination, and does not itself explain how compensation is assessed.
This article follows Article 475, which provides that a contracting contract ends when the agreed work is completed; it adds a way of ending the contract before completion. It is followed by Article 477, which deals with a different case, where the contractor starts performance and then is unable to complete it for a reason beyond the contractor's control, and is entitled to the value of what was done and what was spent on the unfinished work to the extent of the benefit to the client.
Whether an excuse is "supervening" and "relating to performance of the contract" depends on the circumstances of each case, so before requesting termination it is advisable to consult a lawyer specializing in civil matters or in contracting and real estate cases.
Practical example
A small contractor in Abha agreed to renovate a building, and then had an accident that kept him from work for a long time before starting performance, which is a supervening excuse relating to performance of the contract. He may request termination of the contract, but he must compensate the owner of the building for the harm arising from the 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 476 of the Saudi Civil Transactions Law
Can a contracting contract be terminated because of a supervening circumstance?
Yes. Either contracting party may request termination if a supervening excuse relating to performance of the contract arises for it.
Does the party requesting termination pay compensation?
Yes. That party must compensate the other contracting party for the harm arising from the termination.
Is this right only for the contractor?
No. The article gives it to both contracting parties, the contractor and the client.
More articles on Contracting (Construction) Contract
- Article 167
The article regulates performance of an obligation to perform work: the creditor's right to refuse performance by anyone but the debtor, performance at the debtor's expense with or without court permission when urgent, and a judgment standing in for the work.
إذا كان الالتزام بعمل فتسري على تنفيذه الأحكام الآتية: أ- إذا نص الاتفاق أو اقتضت طبيعة العمل أن ينفذ المدين الالتزام بنفسه جاز للدائن أن يرفض الوفاء من غير الم
- Article 461
The article defines the contracting (muqawala) contract as one in which the contractor undertakes to make a thing or perform work for a fee, without being subordinate to or an agent of the client.
المقاولة عقدٌ يلتزم بمقتضاه المقاول بصنع شيءٍ أو أداء عملٍ مقابل أجر دون أن يكون تابعًا لصاحب العمل ولا نائبًا عنه.
- Article 462
The article allows the contractor to carry out the work with materials supplied by the contractor or with materials supplied by the client.
يصح أن يكون التزام المقاول بتنفيذ العمل بمواد من عنده أو من صاحب العمل.
- Article 463
The article sets the contractor's obligations on materials: if the contractor supplies them, they must meet the specifications or be fit for the purpose by custom; if the client supplies them, the contractor must safeguard them, observe technical rules and return what is left.
1- إذا اشترط صاحب العمل أن يقدم المقاول المواد كلها أو بعضها؛ كان المقاول مسؤولًا عن توفر الشروط والمواصفات المتفق عليها إن وجدت، وإلا التزم بأن تكون وافيةً بال
- Article 464
The article puts the expenses of the machines and tools needed to complete the work on the contractor, unless the parties agree otherwise.
يتحمَّل المقاول نفقات ما يستلزمه إنجاز العمل من آلات وأدوات، ما لم يتفق على خلاف ذلك.
- Article 465
The article requires the contractor to complete the work according to the contract terms and within the agreed period, failing which according to the recognized standards and within the reasonable time the nature of the work requires.
يلتزم المقاول بإنجاز العمل وفقًا لشروط العقد وفي المدة المتفق عليها، فإن لم تكن هناك شروطٌ أو لم يُتفق على مدةٍ التزم بإنجازه وفقًا للأصول المتعارف عليها وفي ال
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.