Article 481 of the Saudi Civil Transactions Law
المادة 481 من نظام المعاملات المدنية · الفرع الأول: إنشاء عقد الوكالة
The article allows an agency to be unrestricted or restricted, and to be made conditional on a condition or deferred to a term.
Official text (Arabic)
This article has not been amended since the law was issued.
يصح أن تكون الوكالة مطلقةً أو مقيدةً أو معلقةً على شرط أو مضافةً إلى أجل.
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 481 explained in plain English
This article sets out the forms an agency may take, an agency being the contract by which the principal puts the agent in the principal's own place in a legal act as Article 480 defines it. The Law leaves the parties wide flexibility in shaping the agency according to their needs.
The article mentions four forms:
- Unrestricted agency: given without restrictions imposed by the principal on how the act is carried out.
- Restricted agency: in which the principal sets restrictions that the agent must observe, such as fixing a price, place or particular method.
- Agency conditional on a condition: its effect begins only if something the principal specifies occurs.
- Agency deferred to a term: its effect is postponed to a future time the principal specifies.
With this flexibility, the article must be read with Article 482, which does not allow an agency in general terms that do not specify the type of legal act the agency covers. An agency being unrestricted does not mean it may be vague about the type of act; the type of work authorized must be specified.
In practice, a person issuing an agency should draft it clearly: specify the type of act, and state any restrictions, conditions or dates wanted. To draft an agency suited to a particular case it is possible to consult a lawyer specializing in civil matters.
Practical example
Ahmed is traveling to study, so he appoints his brother as agent to renew the lease of his apartment in Jeddah, and makes the agency begin only from the date of his travel. This is an agency deferred to a term, and it is valid under the article. Had he said, "if I do not return before the end of the contract, renew it", it would have been an agency conditional on a condition.
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 481 of the Saudi Civil Transactions Law
Is an agency conditional on a condition valid?
Yes. The article provides that an agency may be conditional on a condition.
What is the difference between an unrestricted and a restricted agency?
The article allows both. A restricted agency is one in which the principal sets restrictions on the act, and an unrestricted one has none, while the requirement to specify the type of act under Article 482 remains.
Can an agency begin at a later date?
Yes. An agency may be deferred to a term, meaning its effect is postponed to the specified time.
More articles on Agency Contract
- Article 87
The article permits contracting through representation unless statutory texts require otherwise, and divides representation into agreed, judicial and statutory.
1- يصح التعاقد بالنيابة؛ ما لم تقتض النصوص النظامية خلاف ذلك. 2- تكون النيابة في التعاقد اتفاقيةً أو قضائيةً أو نظاميةً.
- Article 88
The article prohibits a representative from exceeding the limits of his representation as set in the instrument creating it, whether a contract, a court judgment or a statutory text.
ليس للنائب أن يتجاوز حدود نيابته المعيَّنة في سند إنشائها، سواء أكان السند عقدًا أم حكمًا قضائيًّا أم نصًّا نظاميًّا.
- Article 90
If the representative contracts within the limits of his representation and in the principal's name, the rights and obligations arising from the contract are attributed to the principal.
إذا تعاقد النائب في حدود نيابته باسم الأصيل فإن ما ينشأ عن العقد من حقوقٍ والتزاماتٍ يُضاف إلى الأصيل.
- Article 152
The article provides that when the beneficiary approves what the volunteer agent did, the rules of agency apply to that work.
تسري أحكام الوكالة إذا أجاز المنتفع ما قام به الفضولي.
- Article 356
A representative may not buy for himself what he was entrusted to sell, even at auction or in another's name, without permission; the same applies to an intermediary, expert and the like.
مع مراعاة النصوص النظامية؛ ليس للنائب أن يشتري لنفسه باسمه أو اسم غيره ولو بطريق المزاد ما عهد إليه بيعه بمقتضى نيابته ما لم يكن مأذونًا له بذلك، كما لا يحق ذلك
- Article 357
A sale by a representative, intermediary or expert to himself does not take effect against the owner unless he approves it, while a good-faith specific successor who acquired a real right for consideration is protected.
إذا تمَّ البيع في الأحوال المنصوص عليها في المادة (السادسة والخمسين بعد الثلاثمائة) من هذا النظام، لم ينفذ في حق من تم لحسابه إلا إذا أجازه، وليس له أن يحتج بعد
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.