Article 89 of the Saudi Civil Transactions Law
المادة 89 من نظام المعاملات المدنية · الفرع الثالث: النيابة في التعاقد
In contracting through representation, the representative's person is what counts for defects of consent and the effect of knowledge, but a principal who gave specific instructions may not rely on his representative's ignorance of what he knows or is presumed to know.
Official text (Arabic)
This article has not been amended since the law was issued.
1- في التعاقد بالنيابة يكون شخص النائب هو المعتبر في عيوب الرضى، وفي أثر العلم بالأمور التي يختلف فيها حكم العقد بين علم المتعاقد بها أو جهله.
2- إذا كانت النيابة اتفاقية ووضع الأصيل للنائب تعليمات محددة لإبرام العقد؛ فليس للأصيل أن يتمسك بجهل نائبه بالأمور التي يؤثر العلم أو الجهل بها في العقد ما دام الأصيل يعلمها أو يفترض علمه بها.
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 89 explained in plain English
This article answers an important question: when contracting through representation, whose person is looked to in assessing defects of consent and knowledge of material matters: the representative or the principal?
Paragraph 1: the general rule
The representative's person is what counts in two matters:
- Defects of consent: if the representative falls into a defect of consent when contracting, what counts is what happened to him.
- The effect of knowledge: in matters where the rule on the contract differs according to the contracting party's knowledge or ignorance of them, the representative's knowledge or ignorance is looked to.
Paragraph 2: the exception
If the representation is agreed, and the principal gave the representative specific instructions for concluding the contract, the principal may not rely on his representative's ignorance of matters whose knowledge or ignorance affects the contract, so long as the principal himself knows them or is presumed to know them. A principal may not shelter behind his representative's ignorance when he knows the matter.
This article is linked to Article 88, which prohibits the representative from exceeding the limits of his representation as set in the instrument creating it, and Article 90, which provides that if the representative contracts within the limits of his representation in the principal's name, the rights and obligations arising from the contract are attributed to the principal.
To apply these rules to a particular case, it is advisable to consult a lawyer who specializes in civil cases and contracts.
Practical example
Fahd appointed his friend to buy a specific piece of land in Dammam with clear instructions, and Fahd knew of a matter affecting the contract relating to the land, which the friend did not know. After the purchase, Fahd cannot rely on his friend's ignorance of this matter, because he himself knew it and gave the representative specific instructions.
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 89 of the Saudi Civil Transactions Law
In contracting by power of attorney, is the agent or the principal looked to for defects of consent?
The representative's person is what counts for defects of consent, and for the effect of knowledge in matters where the rule on the contract differs according to the contracting party's knowledge or ignorance of them.
Can the principal rely on his agent's ignorance?
If the representation is agreed and the principal gave specific instructions, he may not rely on his representative's ignorance of matters he knows or is presumed to know.
More articles on Effects and Interpretation of Contracts
- 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 40
In adhesion contracts, acceptance is limited to mere submission to fixed terms set by the offeror that are not open to discussion.
القبول في عقود الإذعان يقتصر على مجرد التسليم بشروط مقررة يضعها الموجب ولا يقبل مناقشة فيها.
- Article 45
A framework agreement is a contract in which the parties set the basic terms of the contracts they create between them under its provisions, and it is treated as part of those contracts.
الاتفاق الإطاري عقدٌ يُحدد المتعاقدان بمقتضاه البنود الأساسية التي تخضع لها العقود التي ينشئها المتعاقدان بينهما وفقًا لأحكام هذا الاتفاق، ويُعد ذلك الاتفاق جزء
- Article 46
If the contracting parties, expressly or impliedly, refer in the contract to a model document, specified rules or any other document, it is treated as part of the contract.
إذا أحال المتعاقدان صراحةً أو ضمنًا في العقد إلى أحكام وثيقةٍ نموذجيَّةٍ أو قواعد محددة أو أي وثيقة أخرى عُدَّت جزءًا من العقد.
- Article 73
If the parties do not specify the quantity of the subject matter and the contract contains what allows it to be determined, the court determines it; if they do not agree on quality and there is no custom or indication, an item of medium quality must be delivered.
1- إذا لم يحدِّد المتعاقدان مقدار المحل وتضمن العقد ما يمكن للمحكمة تحديده به؛ حددته بناءً على ذلك. 2- إذا لم يتفق المتعاقدان على درجة جودة الشيء ولم يوجد عرف أ
- Article 87
The article permits contracting through representation unless statutory texts require otherwise, and divides representation into agreed, judicial and statutory.
1- يصح التعاقد بالنيابة؛ ما لم تقتض النصوص النظامية خلاف ذلك. 2- تكون النيابة في التعاقد اتفاقيةً أو قضائيةً أو نظاميةً.
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.