Article 605 of the Saudi Civil Transactions Law
المادة 605 من نظام المعاملات المدنية · الفرع الثالث: انتهاء عقد الكفالة
If the debtor or the surety transfers the creditor to another by a valid transfer (hawala), they are discharged within its limits, and if the transfer stipulates the surety's discharge alone, he is discharged without the debtor.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا أحال المدين أو الكفيل الدائن بالدين المكفول به أو بجزء منه على آخر حوالةً صحيحةً برئ المدين والكفيل في حدود هذه الحوالة.
2- إذا اشترط في الحوالة براءة الكفيل فقط برئ وحده دون المدين.
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 605 explained in plain English
This article explains the effect of a transfer (hawala) on the guaranteed debt, that is, where the debtor or the surety refers the creditor to another person to collect from him.
Paragraph (1): if the debtor or the surety refers the creditor, for the whole guaranteed debt or part of it, to another, and the transfer is valid, the debtor and the surety are both discharged within the limits of this transfer. If the transfer is for part of the debt, the discharge is limited to that part, and the rest remains as it was.
Paragraph (2): if the transfer stipulates the discharge of the surety only, the surety alone is discharged, and the debtor remains bound.
The text shows two conditions for discharge under the first paragraph:
- that the transfer is valid.
- that the discharge is limited to the amount transferred.
The conditions for the validity of the transfer itself are not mentioned in this article, and are referred to the provisions on transfer in the Law. The article is linked to Article 604 on the creditor accepting a substitute for the debt, and to Article 606, which provides that suretyship does not end by death. To draft a transfer that achieves the desired effect, you are advised to consult a lawyer who specializes in civil cases.
Practical example
Abdullah owed an establishment in Riyadh a debt of SAR 50,000 and his brother stood surety for him. Abdullah made a valid transfer of the establishment to a person who owed him SAR 20,000. Abdullah and his brother are discharged within the limit of SAR 20,000, and the rest remains guaranteed by the suretyship.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentA question about Article 605 of Civil Transactions Law?
Describe what happened and specialist lawyers answer. You can write in English.
- Completely free
- Lawyers from the directory answer
- Your name stays hidden
Civil Litigation & Compensation lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Civil Litigation & Compensation lawyers
Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Active contributor
Unwan Law Firm
Frequently asked questions about Article 605 of the Saudi Civil Transactions Law
Does a transfer discharge the surety from the debt?
If the debtor or the surety transfers the creditor to another by a valid transfer, the debtor and the surety are discharged within the limits of the transfer.
Can the surety be discharged without the debtor through a transfer?
Yes. If the transfer stipulates the discharge of the surety only, he alone is discharged and not the debtor.
If the transfer is for part of the debt, what is its effect?
The discharge is within the limits of the part transferred only.
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.