Article 502 of the Saudi Civil Transactions Law
المادة 502 من نظام المعاملات المدنية · الفرع الرابع: انتهاء عقد الوكالة
The article lists the causes by which an agency contract ends: completion of the work, expiry of its term, the death of the principal or agent, or loss of capacity by either of them.
Official text (Arabic)
This article has not been amended since the law was issued.
ينتهي عقد الوكالة بإنجاز العمل الموكل فيه، أو بانقضاء الأجل المعين للوكالة، أو بموت الموكّل أو الوكيل، أو بفقد أحدهما أهليته.
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 502 explained in plain English
This article answers a common question: when does an agency end? It lists four causes by which an agency contract ends:
- Completion of the work entrusted: Once the agent completes what he was authorized to do, such as selling the property or delivering the goods, the agency ends.
- Expiry of the set term: If a term was set for the agency, it ends when the term expires.
- Death of the principal or agent: The agency rests on the person of each party, so it ends with the death of either.
- Loss of capacity by either of them: If the principal or the agent loses capacity, the agency ends.
In practice, an agency document held by a person does not remain valid for acting after, for example, the principal's death, even if it was not formally cancelled. Anyone dealing under an agency should therefore make sure it is still in force.
These causes are not the only ways an agency ends. Article 503, which follows, allows the principal to dismiss his agent or restrict the agency whenever he wishes, except where the agency was issued in favor of the agent or of a third party, in which case this is not permitted without the consent of the person in whose favor it was issued, and he must in all cases notify the agent. Before it, Article 501 subjects the parties' relationship with third parties to the rules on representation in contracting.
If there is doubt whether an agency has ended, or about the effect of that on an act already done, it is advisable to consult a lawyer specializing in civil matters.
Practical example
Abdulrahman appointed his nephew to sell land of his in Riyadh, and then Abdulrahman died before the sale was completed. With his death the agency ends, so the nephew has no authority to complete the sale on the strength of it.
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 502 of the Saudi Civil Transactions Law
Does the agency end with the principal's death?
Yes, an agency contract ends with the death of the principal or the agent.
Does the agency end once the work is done?
Yes, an agency contract ends on completion of the work entrusted.
What are the causes by which an agency ends?
Completion of the work, expiry of the set term, the death of the principal or agent, or loss of capacity by either of them, in addition to dismissal, which is regulated by Article 503.
Does the agency end if the agent loses capacity?
Yes, an agency contract ends when either party loses capacity.
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.