Article 511 of the Saudi Civil Transactions Law
المادة 511 من نظام المعاملات المدنية · الفرع الثاني: التزامات المودع لديه
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.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يجوز للمودع لديه أن يستعمل الوديعة أو يرتب عليها حقًّا للغير دون إذن المودع.
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 511 explained in plain English
This article sets out a basic rule in the deposit contract: the deposit stays with the depositary only for safekeeping, and is not for him to benefit from. The depositary is barred from two things:
- Using the deposit himself, such as using the car, the device, or the money deposited with him.
- Creating a right over it for a third party, such as leasing it, lending it, pledging it, or enabling another person to benefit from it.
The only exception the text mentions is the depositor's permission: if the owner of the deposit permits use or the creation of the right, it is allowed within the limits of his permission.
This article connects with Article 510, which bars the depositary from depositing the deposit with another person without the depositor's permission unless he is compelled to, with the duty to retrieve it once the reason ceases. Together the two articles confine the depositary's role to safekeeping, and make any act beyond that conditional on the owner's permission. Article 512 then moves on to the depositor's obligations, including paying the agreed fee if the deposit is paid.
This article does not itself state the penalty for breach. If a dispute arises about use of a deposit or the harm that resulted, it is best to consult a lawyer specializing in civil matters.
Practical example
Khaled traveled outside the Kingdom and left his car in trust with his friend in Jeddah to keep. The friend may not use the car for his errands or lend or lease it to anyone else, unless Khaled permits him to.
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 511 of the Saudi Civil Transactions Law
May the depositary use the deposit?
He may not use it except with the depositor's permission.
May the depositary lease or pledge the deposit?
He may not create a right over it for a third party without the depositor's permission, which includes enabling another person to have a right over it.
May the depositary deposit the deposit with someone else?
Article 510 bars this without the depositor's permission except in a case of compulsion, and he must retrieve it once the reason ceases.
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 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.
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.