Article 82 of the Saudi Civil Transactions Law
المادة 82 من نظام المعاملات المدنية · الفرع الثاني: إبطال العقد وبطلانه أولًا: حق الإبطال
When a contract is annulled or void, the contracting parties return to their position before contracting, and if that is impossible compensation may be awarded.
Official text (Arabic)
This article has not been amended since the law was issued.
في حالتي إبطال العقد أو بطلانه، يعود المتعاقدان إلى الحالة التي كانا عليها قبل التعاقد، وإذا استحال ذلك جاز أن يُقضى بالتعويض.
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 82 explained in plain English
This article sets out the consequences of a contract being annulled or void, and it applies to both cases: a contract annulled at the request of the holder of the right, and a contract void from the outset.
The rule: restoring the previous position
The contracting parties return to the position they were in before contracting. In practice this means each party returns what he took under the contract, so the price is returned to the buyer and the thing sold to the seller, for example, as if the contract had never been.
The exception: compensation when it is impossible
If it is impossible to return the contracting parties to their previous position, such as where the thing has perished or been consumed or the benefit has been used, compensation may be awarded. The article says "may", meaning compensation is permissible, not mandatory, and depends on the assessment of the case.
This article is linked to Article 81, which provides that any interested person may rely on nullity, that the court may rule on it of its own motion, and that nullity is not removed by ratification. Article 83 also sets a special rule for a person who is wholly or partially incapacitated: if the contract is annulled or void for that reason, he is not bound to return more than the considerable benefit he obtained by reason of performance of the contract.
To determine what must be returned or the extent of entitlement to compensation in a particular case, it is advisable to consult a lawyer who specializes in civil cases and contracts.
Practical example
Faisal bought a car from a showroom in Jeddah for SAR 80,000, and the contract was then annulled. The parties return to their former position, so Faisal returns the car and recovers the amount. But if the car was totally destroyed in an accident so that returning it is impossible, compensation may be awarded.
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 82 of the Saudi Civil Transactions Law
What happens after a contract is annulled?
The contracting parties return to the position they were in before contracting.
What if it is not possible to return what was delivered?
If it is impossible to return the contracting parties to their previous position, compensation may be awarded.
Does the effect of nullity differ from the effect of annulment?
The article makes the effect the same in both cases: the contracting parties return to what they were before contracting.
More articles on Voidness and Termination of Contracts
- Article 49
The transactions of a minor unable to discern are void.
تصرفات الصغير غير المميز باطلة.
- Article 50
The purely beneficial transactions of a minor able to discern are valid and the purely harmful ones void; those between benefit and harm are valid, and his guardian, executor or he after majority may seek to annul them.
1- إذا كانت تصرفات الصغير المميز نافعةً نفعًا محضًا فهي صحيحة، وإذا كانت ضارةً ضررًا محضًا فهي باطلة. 2- إذا كانت تصرفات الصغير المميز دائرةً بين النفع والضرر ف
- Article 53
The transactions of a spendthrift and of a person of impaired judgment after interdiction are treated like those of a minor able to discern; before interdiction they are valid unless they resulted from exploitation or collusion.
تصرفات السفيه وذي الغفلة بعد الحجر عليهما في حكم تصرفات الصغير المميز، أما تصرفاتهما قبل الحجر فصحيحةٌ إلا إذا كانت نتيجة استغلالٍ أو تواطؤٍ.
- Article 56
If a partially incapacitated person resorts to fraudulent means to conceal his incapacity, he must compensate the other contracting party for the harm caused by the annulment of the contract.
إذا لجأ ناقص الأهلية إلى طرقٍ احتياليَّةٍ لإخفاء نقص أهليته لزمه التعويض عن الضرر الذي أصاب المتعاقد معه بسبب إبطال العقد.
- Article 57
A contracting party may seek annulment of the contract if he made a material mistake without which he would not have agreed to the contract, particularly a mistake in a quality of the subject matter, in the other party's person or quality, or in a statutory ruling.
للمتعاقد طلب إبطال العقد إذا وقع في غلط جوهري لولاه لم يرض بالعقد، وبخاصة إذا كان الغلط الجوهري في صفة المحل أو شخص المتعاقد معه أو صفته أو الحكم النظامي.
- Article 58
A contracting party's mistake is taken into account only if the other party made the same mistake, knew he had made it, or could easily have discovered it.
لا يُعتد بغلط المتعاقد إلا إذا كان المتعاقد الآخر قد وقع معه في الغلط نفسه أو علم بوقوعه فيه أو كان من السهل عليه أن يتبينه
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.