Article 510 of the Saudi Civil Transactions Law
المادة 510 من نظام المعاملات المدنية · الفرع الثاني: التزامات المودع لديه
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.
Official text (Arabic)
This article has not been amended since the law was issued.
ليس للمودع لديه أن يودع الوديعة لدى الغير دون إذن المودع إلا إذا كان مضطرًّا، وعليه استعادتها بعد زوال السبب.
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 510 explained in plain English
This article bars the depositary from depositing the deposit with another person, because the depositor trusted him personally and chose him to keep it.
The article has three elements:
- The default is prohibition: The deposit may not be deposited with a third party without the depositor's permission.
- The two exceptions: It is allowed if the depositor gives permission, or if the depositary is compelled.
- Retrieval: If he deposited it with a third party out of necessity, he must retrieve it once the reason that compelled him ceases.
The article does not define compulsion or list its forms, so it is considered according to the circumstances of each case.
The article connects with those around it. The second paragraph of Article 509 allows the depositary to keep the deposit himself or through someone he trusts to keep his own property from among those he supports, unless the deposit is paid, whereas this article deals with depositing it with a third party. It is followed by Article 511, which bars the depositary from using the deposit or creating a right over it for a third party without the depositor's permission.
A depositary who is compelled to move the deposit would do well to document the reason. If there is a dispute about whether compulsion existed, a lawyer specializing in civil matters can be consulted.
Practical example
Adel deposited valuable devices with his friend in Riyadh. The friend's house then suffered a major water leak that threatened the devices, so he moved them temporarily to his neighbor's house. This is a case of compulsion that permits it, but the friend must retrieve them after his house is repaired and the reason ceases.
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 510 of the Saudi Civil Transactions Law
May the depositary hand the deposit to someone else?
Not without the depositor's permission unless he is compelled to.
What must the depositary do after the compulsion ends?
He must retrieve the deposit once the reason ceases.
May the depositary use the deposit?
Article 511 provides that the depositary may not use the deposit or create a right over it for a third party without the depositor's permission.
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 507
The depositary is not entitled to a fee for keeping the deposit unless otherwise agreed.
ليس للمودع لديه أجر على حفظ الوديعة؛ ما لم يتفق على خلاف ذلك.
- 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 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.