Article 578 of the Saudi Civil Transactions Law
المادة 578 من نظام المعاملات المدنية · الفرع الأول: إنشاء عقد الكفالة
The article defines suretyship as a contract in which the surety undertakes to the creditor to perform an obligation owed by the debtor if the debtor himself does not perform it.
Official text (Arabic)
This article has not been amended since the law was issued.
الكفالة عقدٌ يلتزم بمقتضاه الكفيل للدائن بأن يفي بالتزام على المدين إذا لم يَفِ به المدين نفسه.
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 578 explained in plain English
This article sets out the definition of the suretyship contract, one of the most widely used contracts in daily life, for example in guaranteeing loans, leases and commercial transactions.
The definition involves three parties:
- The creditor: the holder of the right.
- The debtor: the person who owes the obligation in the first place.
- The surety: the person who undertakes to the creditor to perform the debtor's obligation.
The essential element in the definition is that the surety's obligation is secondary; he undertakes to perform if the debtor himself does not perform. The debtor remains the primary obligor, and the surety is an additional guarantee for the creditor.
Note that the contract is concluded between the surety and the creditor, which Article 579 sets out in more detail by providing that suretyship is concluded between the surety and the creditor, and its conclusion does not depend on the debtor's acceptance.
The definition relates to an obligation owed by the debtor in general terms, so on the face of the text it is not limited to monetary debts.
Before you stand surety for anyone, it is important to understand that you may be required to perform if the debtor does not. To learn the effects of suretyship in your case, you are advised to consult a lawyer who specializes in civil cases.
Practical example
Saad bought a car on installments from a showroom in Jeddah, and the showroom asked for a surety, so his brother Faisal signed a suretyship contract. If Saad does not pay the installments, Faisal is obliged to the showroom to perform them, because he undertook to perform the debtor's obligation if the debtor himself does not perform 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 578 of the Saudi Civil Transactions Law
What is suretyship?
A contract under which the surety undertakes to the creditor to perform an obligation owed by the debtor if the debtor himself does not perform it.
Is the surety obliged to pay even if the debtor pays?
No. Under the definition, the surety's obligation is to perform if the debtor himself does not perform.
Between whom is the suretyship contract concluded?
The surety undertakes in it to the creditor, and Article 579 provides that suretyship is concluded between the surety and the creditor.
More articles on Suretyship
- Article 222
The Article provides that solidarity among debtors is not presumed and arises only by agreement or legal provision.
لا يكون التضامن بين المدينين إلا باتفاق أو بنص نظامي.
- Article 579
Suretyship is concluded between the surety and the creditor, the creditor's silence counts as acceptance, and it does not depend on the debtor's acceptance, so it is valid without his knowledge and despite his objection.
1- تنعقد الكفالة بين الكفيل والدائن، ويعد سكوت الدائن إذا وجه إليه الإيجاب قبولًا للكفالة. 2- لا يتوقف انعقاد الكفالة على قبول المدين، وتجوز دون علمه، وتجوز أيض
- Article 580
The article requires the surety to have full capacity, limits a suretyship by a person on his deathbed to one third of the estate unless the heirs approve, and a suretyship to or for an heir takes effect only with their approval.
1- يجب في عقد الكفالة أن يكون الكفيل كامل الأهلية. 2- الكفالة من المريض مرض الموت لا تنفذ في حق الورثة فيما زاد على (ثلث) التركة إلا بإجازتهم، وإذا كانت الكفالة
- Article 581
The article provides that suretyship is valid only if the obligation guaranteed is valid.
لا تكون الكفالة صحيحة إلا إذا كان الالتزام المكفول به صحيحًا.
- Article 582
The article allows suretyship to be immediate, conditional, for a limited period, or deferred to a term.
يصح أن تكون الكفالة منجزةً أو معلقةً على شرط أو مؤقتةً أو مضافةً إلى أجل.
- Article 583
Suretyship is valid for a future debt if the amount guaranteed is fixed in advance, and for a debt conditional on a condition; for a future debt with no fixed period the surety may withdraw by notifying the creditor.
1- تصح الكفالة في الدين المستقبل إذا حدد مقدمًا مقدار المكفول به، وتصح في الدين المعلق على شرط. 2- للكفيل في الدين المستقبل إذا لم يعين مدة للكفالة أن يرجع عن ك
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.