Article 478 of the Saudi Civil Transactions Law
المادة 478 من نظام المعاملات المدنية · الفرع الخامس: انتهاء عقد المقاولة
The article provides that contracting terminates on the contractor's death if the contractor was required to work personally or the contractor's person was relied on, and otherwise allows the client to request termination if the heirs' guarantees are insufficient.
Official text (Arabic)
This article has not been amended since the law was issued.
1- ينفسخ عقد المقاولة بموت المقاول إذا اشتُرط أن يعمل المقاول بنفسه أو كان العقد قد أبرم بناءً على اعتبارات تتعلق بشخصه.
2- إذا خلا العقد من الشرط الوارد في الفقرة (1) من هذه المادة، ولم يكن شخص المقاول محل اعتبار في التعاقد؛ فلصاحب العمل طلب فسخ العقد إذا لم تتوفر في الورثة الضمانات الكافية لتنفيذ العمل.
3- يستحق الورثة في الحالتين الواردتين في الفقرتين (1) و(2) من هذه المادة؛ قيمة ما تم من الأعمال وما أنفق في العمل الذي لم يتم بقدر ما عاد على صاحب العمل من نفع.
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 478 explained in plain English
This article shows the effect of the contractor's death on the contracting contract, and distinguishes two cases:
First case (paragraph 1): automatic termination. The contract terminates on the contractor's death if:
- The contractor was required to work personally, or
- The contract was made on the basis of considerations personal to the contractor, such as skill or reputation.
Second case (paragraph 2): a right to request termination. If the contract has no condition that the contractor work personally, and the contractor's person was not relied on, the contract does not terminate automatically, but the client may request its termination if the heirs do not provide sufficient guarantees for performing the work.
The heirs' rights (paragraph 3): in both cases the heirs are entitled to:
- The value of the work done.
- What was spent on the unfinished work, to the extent of the benefit to the client.
This financial rule is similar to what Article 477 gave a contractor unable to complete for a reason beyond the contractor's control. The text does not set a detailed standard for "sufficient" guarantees, so assessing them depends on the circumstances of each case. When a death occurs, the client or the heirs should consider consulting a lawyer specializing in civil matters or in contracting and real estate cases.
Practical example
Adel contracted with a well-known calligrapher to execute Arabic calligraphy panels on the walls of his reception room in Riyadh, choosing him for his personal skill. The calligrapher died after half the work was done. The contract terminates because the contractor's person was relied on, and his heirs are entitled to the value of the work done, and to what he spent on the unfinished work to the extent of the benefit to Adel.
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 478 of the Saudi Civil Transactions Law
Does a contracting contract end on the contractor's death?
It terminates if the contractor was required to work personally or the contract was made on the basis of considerations personal to the contractor; otherwise the client may request termination if the heirs do not provide sufficient guarantees for performing the work.
What are the contractor's heirs entitled to?
They are entitled to the value of the work done, and what was spent on the unfinished work to the extent of the benefit to the client.
May the client terminate the contract if the contractor's person was not relied on?
Yes. The client may request termination if the heirs do not provide sufficient guarantees for performing the work.
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.