Article 489 of the Saudi Civil Transactions Law
المادة 489 من نظام المعاملات المدنية · الفرع الثاني: التزامات الوكيل
The article sets the rules for an agent appointing another agent, the first agent's liability for the second, and the right to dismiss the second agent.
Official text (Arabic)
This article has not been amended since the law was issued.
1- لا يجوز للوكيل أن يوكل غيره فيما وكل فيه أو في بعضه إلا إذا كان مأذونًا له بذلك من قبل الموكل، ويعد الوكيل الثاني وكيلًا عن الموكل الأصلي.
2- الوكيل المأذون له بتوكيل الغير دون تعيين لشخصه لا يكون مسؤولًا تجاه موكله إلا عن خطئه في اختياره للوكيل أو فيما أصدره من تعليمات كانت سببًا في الضرر.
3- لكل من الموكل ووكيله أن يعزل الوكيل الثاني الذي عينه الوكيل، ويترتب على عزل الوكيل الأول انعزال الوكيل الثاني.
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 489 explained in plain English
This article regulates what is known as an agent appointing another agent, and sets out three rules:
- Prohibition as the default: An agent may not appoint another person to do all or part of what he was authorized to do, unless the principal has allowed it. If the appointment is made with permission, the second agent is treated as an agent of the original principal.
- Limits on the first agent's liability: If the agent is allowed to appoint another without a specific person being named, he is answerable to his principal only for fault in choosing the second agent, or for the instructions he gave that caused the harm.
- Dismissal: Both the principal and the first agent may dismiss the second agent appointed by the agent. If the first agent is dismissed, the second agent is dismissed along with him.
Anyone issuing an agency should therefore state clearly whether the agent may appoint another, and whether a specific person is required.
The article follows Article 488, which regulates multiple agents and their liability, and precedes Article 490, which bars an agent who is authorized to buy without a price being stated from paying more than the fair market price. If there is a dispute about the validity of an appointment of another agent or liability for it, it is advisable to consult a lawyer specializing in civil matters.
Practical example
Saud appointed a lawyer to handle a commercial case and allowed him to appoint others without naming anyone. The lawyer appointed a colleague. The colleague is an agent of Saud, and the first lawyer is answerable only for fault in choosing his colleague or for instructions that caused harm. If Saud dismissed the first lawyer, the colleague would be dismissed along with him.
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 489 of the Saudi Civil Transactions Law
May an agent appoint someone else?
Not unless the principal has allowed it.
Whose agent is the second agent?
The second agent is treated as an agent of the original principal.
What happens to the second agent if the first agent is dismissed?
Dismissal of the first agent results in dismissal of the second agent.
When is the first agent liable for the second agent's mistakes?
If he was allowed to appoint without naming a person, he is answerable only for fault in the choice or for instructions that caused the harm.
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.