Article 69 of the Saudi Civil Transactions Law
المادة 69 من نظام المعاملات المدنية · الفرع الأول: أركان العقد أولًا: الرضى
The article defines inequity as an increase or decrease in consideration beyond the usual according to custom, and does not allow annulment for inequity alone except in specified cases, nor in auction contracts.
Official text (Arabic)
This article has not been amended since the law was issued.
1- الغبن زيادة العوض أو نقصه قدرًا خارجًا عن المعتاد. ويُرجع في تحديد الغبن إلى العرف.
2- ليس للمتعاقد طلب إبطال العقد لمجرد الغبن إلا في مال عديم الأهلية وناقصها وما تقضي به النصوص النظامية، وللمتعاقد الآخر توقي الإبطال إذا قدم ما تراه المحكمة كافيًا لرفع الغبن.
3- لا يجوز الطعن لمجرد الغبن في عقدٍ أُبرم بطريق المزايدة.
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 69 explained in plain English
This article deals with inequity in three paragraphs:
1- Definition of inequity: it is an increase or decrease in consideration by an amount beyond the usual, such as something being sold for much less or much more than usual. Custom is referred to in determining whether the difference is beyond the usual.
2- When annulment is allowed for inequity alone: the rule is that a contracting party may not seek annulment of the contract for inequity alone, except in two cases:
- where the inequity is in the property of a wholly or partially incapacitated person.
- what statutory texts provide.
Even in these cases, the other contracting party may avoid annulment by offering what the court considers sufficient to remove the inequity, that is, by making up the difference in a way that removes the harm.
3- Auction contracts: inequity alone may not be challenged in a contract concluded by auction, because the price in it is determined by open competition.
This differs from the rule in Article 68, which deals with inequity resulting from exploiting an evident weakness or pressing need, where the court may, at the request of the injured party, reduce his obligations, increase the other's obligations or annul the contract. This article deals with bare inequity without exploitation.
To assess whether a price difference is inequity according to custom, it is advisable to consult a lawyer who specializes in civil cases and contracts.
Practical example
A guardian in Riyadh sold land owned by a minor for a price much lower than the customary market price. Here annulment of the contract may be sought for inequity alone because it concerns the property of a partially incapacitated person, but the buyer may avoid annulment by offering what the court considers sufficient to remove the inequity.
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 69 of the Saudi Civil Transactions Law
Can I cancel a sale because I sold below the market price?
A contracting party may not seek annulment for inequity alone, except in the property of a wholly or partially incapacitated person and what statutory texts provide.
Can inequity be challenged at an auction?
No. The article provides that inequity alone may not be challenged in a contract concluded by auction.
How is inequity determined?
Inequity is an increase or decrease in consideration by an amount beyond the usual, and custom is referred to in determining it.
More articles on Elements of the Contract
- Article 11
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.