Article 507 of the Saudi Civil Transactions Law
المادة 507 من نظام المعاملات المدنية · الفرع الأول: إنشاء عقد الإيداع
The depositary is not entitled to a fee for keeping the deposit unless otherwise agreed.
Official text (Arabic)
This article has not been amended since the law was issued.
ليس للمودع لديه أجر على حفظ الوديعة؛ ما لم يتفق على خلاف ذلك.
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 507 explained in plain English
This article establishes that the default in a deposit is that it is unpaid: the depositary is not entitled to a fee for keeping the deposit.
This default is not a binding rule that cannot be departed from, however, since the article allows agreement otherwise. If the parties agree on a fee for keeping, the depositary is entitled to it.
In practice, this means:
- If the parties are silent about a fee, the depositary is not entitled to one.
- Anyone who wants a fee for keeping must agree on it with the depositor.
The distinction between a paid and an unpaid deposit matters in other articles. Article 508, which follows, provides that an unpaid deposit is formed only by taking possession, that is, by the depositary receiving the deposit. Before it, Article 506 defines deposit as a contract under which the depositary keeps the depositor's property on the basis that he will return it in kind.
To avoid disputes, any agreement on a fee should be put in writing. If there is a dispute about entitlement to a keeping fee, a lawyer specializing in civil matters can be consulted.
Practical example
Fahd left his car with his friend in Taif for the duration of his trip without agreeing on any compensation, so the friend is not entitled to a fee for keeping it. But if he had deposited it with someone with whom he agreed on a monthly sum for keeping it, that person would be entitled to the agreed sum.
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 507 of the Saudi Civil Transactions Law
Is someone who keeps a deposit entitled to a fee?
He is not entitled to a fee for keeping the deposit unless otherwise agreed.
May a fee be agreed for keeping a deposit?
Yes, the article allows agreement otherwise than the default.
What is the practical difference between a paid and an unpaid deposit?
Among other things, an unpaid deposit is formed only by taking possession, under Article 508.
More articles on Deposit and Sequestration
- Article 287
The article prevents set-off between a depositary's debt against the depositor and the deposit, or between a borrower's debt against the lender and the loaned item, except by agreement of the parties.
إذا كان للمودع لديه دينٌ على المودع أو كان للمستعير دين على المعير، فلا تقع المقاصة بين الدين والوديعة أو بين الدين والشيء المعار ولو كان الدين من نوع أي منهما
- Article 506
The article defines deposit as a contract under which the depositary keeps the depositor's property on the basis that he will return it in kind.
الإيداع عقد يحفظ بمقتضاه المودع لديه مال المودع على أن يرده بعينه.
- Article 508
If the deposit is unpaid, the contract is formed only when the depositary takes possession of the deposit.
إذا كان الإيداع بلا أجرٍ فلا ينعقد إلا بالقبض.
- Article 509
The article sets the care owed by the depositary in keeping the deposit depending on whether it is paid or unpaid, and who may keep it.
1- يلتزم المودع لديه بأن يبذل في حفظ الوديعة العناية التي يبذلها في حفظ ماله الخاص دون أن يكلف في ذلك أزيد من عناية الشخص المعتاد، فإن كان الإيداع بأجر فعليه أن
- Article 510
The depositary may not deposit the deposit with a third party without the depositor's permission unless he is compelled to, and he must retrieve it once the reason ceases.
ليس للمودع لديه أن يودع الوديعة لدى الغير دون إذن المودع إلا إذا كان مضطرًّا، وعليه استعادتها بعد زوال السبب.
- Article 511
The article bars the depositary from using the deposit or creating any right over it for a third party except with the depositor's permission.
لا يجوز للمودع لديه أن يستعمل الوديعة أو يرتب عليها حقًّا للغير دون إذن المودع.
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.