Article 583 of the Saudi Civil Transactions Law
المادة 583 من نظام المعاملات المدنية · الفرع الأول: إنشاء عقد الكفالة
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 كفالته بشرط إعلام الدائن برجوعه قبل ترتب الدين بوقت كافٍ.
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 583 explained in plain English
This article deals with suretyship for debts that have not yet arisen or whose existence is not yet certain, and contains two rules:
First: validity of suretyship for a future debt and a debt conditional on a condition
- Suretyship is valid for a future debt, provided that the amount guaranteed is fixed in advance, so the surety is not bound for an open-ended, unknown sum.
- Suretyship is valid for a debt conditional on a condition.
Second: the surety's right to withdraw from the suretyship
If the suretyship is for a future debt and no period is fixed for it, the surety may withdraw from his suretyship, provided that:
- he notifies the creditor of his withdrawal.
- this is sufficiently long before the debt arises.
The purpose of this condition is to protect the creditor, so that he is not surprised by the guarantee disappearing after he has relied on it in dealing with the debtor. The text does not specify the amount of "sufficient time", so it is assessed according to the circumstances of each case.
This rule is linked to Article 582, which allows suretyship to be for a limited period, conditional on a condition, or deferred to a term, and to Article 584, which limits suretyship to the amount of the debt owed by the debtor and its terms.
Anyone who wishes to withdraw from his suretyship, or wants to make sure the notification steps are sound, is advised to consult a lawyer who specializes in civil cases.
Practical example
Hamad stood surety for a start-up company for the dealings it would conduct in the future with a supplier, up to SAR 100,000, without fixing a period for the suretyship. After some months Hamad wanted to end his obligation, so he sent the supplier a notice of his withdrawal sufficiently long before any new debt arose. Hamad's withdrawal is valid under the article.
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 583 of the Saudi Civil Transactions Law
Is suretyship valid for a debt that has not yet arisen?
Yes. Suretyship is valid for a future debt if the amount guaranteed is fixed in advance.
Is the surety entitled to withdraw from the suretyship?
For a future debt, if no period is fixed for the suretyship, the surety may withdraw provided he notifies the creditor sufficiently long before the debt arises.
Is suretyship valid for a debt conditional on a condition?
Yes. The article provides that suretyship is valid for a debt conditional on a condition.
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 578
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.
الكفالة عقدٌ يلتزم بمقتضاه الكفيل للدائن بأن يفي بالتزام على المدين إذا لم يَفِ به المدين نفسه.
- 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.
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.