Article 656 of the Saudi Civil Transactions Law
المادة 656 من نظام المعاملات المدنية · الفرع الثاني: أسباب كسب الملكية أولًا: إحراز المباحات
The article distinguishes between a subject matter specified by its identity, whose ownership passes by the contract, and one specified by its kind, none of whose units passes in ownership until it is set apart.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا كان محل العقد معيَّنًا بالذات انتقلت ملكيته بالعقد.
2- إذا كان محل العقد معيَّنًا بالنوع لم تنتقل الملكية في أيٍّ من أفراده إلا بإفرازه.
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 656 explained in plain English
This article determines when ownership passes by contract, according to the type of thing the contract concerns.
Paragraph 1: Specified by identity
If the subject matter of the contract is specified by its identity, that is, a particular thing that nothing else can replace (such as a car with a particular plate and chassis number, or a specific plot of land), its ownership passes by the contract.
Paragraph 2: Specified by kind
If the subject matter of the contract is specified by its kind, that is, defined by its type and quantity without identifying its individual units (such as ten tons of rice, or one hundred bags of a particular type of cement), ownership does not pass in any of its units until it is set apart, that is, separated and distinguished from the rest.
The reason is that with a thing specified by kind, it is not known which of its units is meant until it is set apart, so it cannot be said that ownership of any particular unit has passed before that.
This article elaborates the general rule in Article 655, which provides that ownership and real rights pass by contract where it concerns a subject matter owned by the person making the disposition in accordance with the legal provisions. It is also related to Article 657, which provides that if a legal provision requires a procedure for ownership to pass, it does not pass until the procedure is completed.
Anyone with a dispute about when ownership of goods or something they bought passed can consult a lawyer who specializes in civil or commercial matters.
Practical example
A restaurant owner in Jeddah bought 50 bags of rice from a warehouse holding thousands of bags of the same type. Ownership of no bag passes to him merely by the contract, but when the fifty bags are set apart and distinguished from the rest of the stock. But if he bought a specific display refrigerator, its ownership passes to him by the contract.
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 656 of the Saudi Civil Transactions Law
When do I own goods I bought from a large stock?
If they are specified by kind, ownership does not pass in any of their units until they are set apart.
When does ownership of a specific, identified item pass?
If the subject matter of the contract is specified by its identity, its ownership passes by the contract.
What does setting apart mean?
Setting apart means separating the contracted quantity and distinguishing it from the rest of the same thing.
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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.