Article 63 of the Saudi Civil Transactions Law
المادة 63 من نظام المعاملات المدنية · الفرع الأول: أركان العقد أولًا: الرضى
If the misrepresentation came from a person other than the contracting parties, the deceived party may not seek annulment unless it is proven that the other contracting party knew of it or was presumed to know.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا صدر التغرير من غير المتعاقدين فليس للمغرر به أن يطلب إبطال العقد؛ ما لم يثبت أن المتعاقد الآخر كان يعلم بالتغرير أو كان من المفترض أن يعلم به.
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 63 explained in plain English
This article deals with a special case of misrepresentation, where the deception comes from a third person who is not a party to the contract, such as an intermediary, a relative of one of the parties or any other person.
The rule in this case is that the deceived party may not seek annulment of the contract, because the deception did not come from the other contracting party. This rule protects the party who contracted without having a hand in the misrepresentation.
However, the article makes an exception for two cases in which annulment may be sought even though the misrepresentation came from a third party, namely if it is proven that the other contracting party:
- actually knew of the misrepresentation, or
- was presumed to know of it.
The phrase "unless it is proven" means that the deceived party who wants annulment must prove the other contracting party's knowledge or presumed knowledge.
This article complements Article 62, which gives the deceived party the right to seek annulment of the contract if the misrepresentation concerned a material matter without which he would not have agreed to the contract. If the misrepresentation came from a third party, the requirement of proving the other contracting party's knowledge or presumed knowledge is added to that.
Because proving knowledge or presumed knowledge depends on the facts, a person in this position is advised to consult a lawyer who specializes in civil cases and contracts.
Practical example
Khalid bought land after a real estate broker gave him false information about its proximity to a government project. If the seller did not know the broker was lying and was not presumed to know, Khalid may not seek annulment of the contract. But if Khalid proves that the seller knew what the broker did, he may seek annulment.
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 63 of the Saudi Civil Transactions Law
Can the contract be annulled if someone who is not a party deceived me?
As a rule, no, unless it is proven that the other contracting party knew of the misrepresentation or was presumed to know of it.
Who must prove the other contracting party's knowledge of the misrepresentation?
The article provides that annulment may not be sought unless knowledge or presumed knowledge is proven, so that falls on the person seeking annulment.
More articles on Elements of the Contract
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The article allows a chosen domicile to be adopted for a particular act, serving as the domicile for everything relating to it unless expressly limited, and requires writing to prove it.
1- يجوز اتخاذ موطنٍ مختارٍ لعملٍ معيَّن، ويكون هو الموطن لكل ما يتعلق بهذا العمل؛ ما لم يُشترط صراحةً قصر هذا الموطن على أعمالٍ دون أخرى. 2- لا يجوز إثبات وجود
- Article 30
The article provides that the rules of the contract chapter apply to named and unnamed contracts, without prejudice to the legal provisions that regulate contracts of a special nature.
تطبق الأحكام الواردة في هذا الفصل على العقود المسماة وغير المسماة، وذلك دون إخلال بالأحكام الواردة في النصوص النظامية التي تنظم عقودًا ذات طبيعة خاصة.
- Article 31
A contract arises when one party's offer is joined to the other's acceptance to produce a legal effect, subject to the particular forms the legal provisions set for the formation of certain contracts.
ينشأ العقد بارتباط الإيجاب بالقبول لإحداث أثر نظامي، مع مراعاة ما تقرره النصوص النظامية من أوضاعٍ معيّنةٍ لانعقاد العقد.
- Article 32
Consent in a contract is achieved when the wills of two or more contracting parties who have capacity to contract coincide and the will is expressed by what indicates it.
يتحقق الرضى إذا توافقت إرادتا متعاقدين (أو أكثر) لديهما أهلية التعاقد وعُبِّر عن الإرادة بما يدل عليها.
- Article 33
Offer and acceptance may be by anything that indicates the will: words, writing, an understood gesture or mutual exchange, explicit or implicit, unless the legal provisions, the agreement or the nature of the transaction require otherwise.
1- يكون الإيجاب والقبول بكل ما يدل على الإرادة. 2- يجوز أن يكون التعبير عن الإرادة باللفظ أو بالكتابة أو بالإشارة المفهومة أو بالمعاطاة، وأن يكون صريحًا أو ضمني
- Article 34
Displaying goods and services with their price stated is an offer, and an advertisement with the prevailing prices is not an offer, unless there are indications to the contrary in either case.
1- يعد عرض البضائع والخدمات مع بيان ثمنها إيجابًا، إلا إذا قامت دلائل تفيد خلاف ذلك. 2- لا يعدُّ الإعلان مع بيان الأسعار المتعامل بها إيجابًا، إلا إذا قامت دلائ
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.