Article 94 of the Saudi Civil Transactions Law
المادة 94 من نظام المعاملات المدنية · الفرع الرابع: آثار العقد
The article provides that a valid contract may not be broken or modified except by agreement or a statutory text, that its rights arise as soon as it is concluded, and that it must be performed.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا تم العقد صحيحًا لم يجز نقضه أو تعديله إلا بالاتفاق أو بمقتضى نص نظامي.
2- تثبت الحقوق التي يُنشئها العقد فور انعقاده، دون توقفٍ على القبض أو غيره؛ ما لم يقض نص نظامي بخلاف ذلك، ويجب على المتعاقدين الوفاء بما أوجبه العقد عليهما.
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 94 explained in plain English
This article sets out the principle of the binding force of the contract, one of the most important rules of transactions. It contains two rules:
First: no breaking or modification except for a recognized reason. Once a contract is validly concluded, neither party may break it (cancel it) or modify it by his own will alone. Breaking or modification is possible only in two ways:
- Agreement between the contracting parties.
- A statutory text that permits it.
Second: rights arise as soon as it is concluded. The rights the contract creates arise as soon as it is concluded, and do not depend on taking possession (delivery) or anything else, unless a statutory text provides otherwise. The contracting parties must perform what the contract requires of them.
In practice this means that a person who signed a valid contract cannot withdraw from it merely because he changed his mind, and that the other party acquires his rights as soon as the contract is concluded, even before delivery, unless a statutory text provides otherwise.
Article 95 complements this principle by requiring that the contract be performed in good faith and by providing that the contract includes its necessary incidents. A person who wishes to end or modify a contract and has not agreed with the other party is advised to consult a lawyer who specializes in civil cases to check whether a statutory text permits it.
Practical example
Ahmed signed a contract to buy furniture from a store in Riyadh, then found a cheaper offer in another store and wanted to cancel the contract. He has no right to break the contract by his will alone; he needs an agreement with the store or a statutory text that permits it, and he remains bound by what the contract requires of him.
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 94 of the Saudi Civil Transactions Law
Can I cancel a contract after signing it?
Once a contract is validly concluded, it may not be broken or modified except by agreement of the parties or under a statutory text.
When do the rights arising from a contract arise?
They arise as soon as the contract is concluded, without depending on taking possession or anything else, unless a statutory text provides otherwise.
Can a contract be modified by agreement of the parties?
Yes. Agreement is one of the two ways by which the text permits a contract to be modified or broken.
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.