Article 493 of the Saudi Civil Transactions Law
المادة 493 من نظام المعاملات المدنية · الفرع الثاني: التزامات الوكيل
If a purchasing agent pays the price from his own money, he may recover it from his principal together with what he spent in carrying out the agency to the usual extent.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا دفع الوكيل في الشراء ثمن المبيع من ماله فله الرجوع به على موكله مع ما أنفقه في سبيل تنفيذ الوكالة بالقدر المعتاد.
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 493 explained in plain English
This article protects a purchasing agent who pays the price of the purchased item from his own money. The rule is that the purchase is for the principal, who must bear its price, so the agent is entitled to recover from his principal:
- The price of the item that he paid from his own money.
- What he spent in carrying out the agency, provided this was to the usual extent.
The important limit here is the usual extent: expenses beyond the usual are not covered by this article. This balances the agent's right not to lose his own money because of a service he performed against the principal's right not to be charged with excessive expenses.
The article follows Article 492, which sets out the rule for buying at an unfair price or above the set price; in those cases the contract may pass to the agent if the principal does not ratify it. It is followed by Article 494, which moves on to the selling agent and bars him from selling for less than the set price or the fair market price.
The agent should keep proof of what he paid and spent. If there is a dispute over the amounts due, a lawyer specializing in civil matters can be consulted.
Practical example
Badr appointed his relative to buy equipment for his shop in Taif. The relative paid its price of SAR 12,000 from his own money, and paid the usual cost of transporting it to the shop. The relative is entitled to recover from Badr the price and the usual transport cost.
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 493 of the Saudi Civil Transactions Law
Is the agent entitled to recover what he paid from his own money in a purchase?
Yes, he may recover from his principal the price of the purchased item that he paid from his own money.
Does the agent recover the expenses of carrying out the agency?
He recovers from his principal what he spent in carrying out the agency to the usual extent.
Does the agent recover everything he spent, however much?
The article limits recovery of expenses to the usual extent.
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.