Article 97 of the Saudi Civil Transactions Law
المادة 97 من نظام المعاملات المدنية · الفرع الرابع: آثار العقد
The article lets a debtor burdened by exceptional, unforeseeable general circumstances invite the other party to negotiate, and lets the court reduce the burdensome obligation to a reasonable level if no agreement is reached.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا طرأت ظروف استثنائيةٌ عامَّةٌ لم يكن في الوسع توقعها وقت التعاقد وترتب على حدوثها أن يصير تنفيذ الالتزام التعاقدي مرهقًا للمدين بحيث يهدده بخسارةٍ فادحةٍ؛ فله -دون تأخرٍ غير مسوغ- دعوة الطرف الآخر للتفاوض.
2- طلب التفاوض لا يخول المدين الامتناع عن تنفيذ الالتزام.
3- إذا لم يُتوصل إلى اتِّفاقٍ خلال مدَّةٍ معقولةٍ؛ فللمحكمة تبعًا للظروف وبعد الموازنة بين مصلحة الطرفين أن ترد الالتزام المرهق إلى الحد المعقول.
4- يقع باطلًا كل اتفاق على خلاف أحكام هذه المادة.
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 97 explained in plain English
This article deals with what is known as changed circumstances: events that occur after a contract is concluded and make it extremely difficult for the debtor to perform.
Conditions for applying the rule (paragraph 1):
- That exceptional general circumstances arise.
- That it was not possible to foresee them when the contract was made.
- That performing the obligation becomes burdensome for the debtor, such that it threatens him with a heavy loss.
If these conditions are met, the debtor may invite the other party to negotiate, provided he does so without unjustified delay.
Continuing performance (paragraph 2): a request to negotiate does not entitle the debtor to refrain from performing his obligation; he must continue performing while negotiating.
Role of the court (paragraph 3): if no agreement is reached within a reasonable period, the court may, depending on the circumstances and after balancing the interests of both parties, reduce the burdensome obligation to a reasonable level. The power the text mentions is reducing the obligation to the reasonable level.
Mandatory rule (paragraph 4): any agreement contrary to the provisions of this article is void; a debtor may not waive this protection in advance in the contract.
The text does not specify how long a reasonable period is or what standard defines a heavy loss; these are left to assessment in each case. Anyone facing this situation should consider consulting a lawyer who specializes in civil or commercial cases before taking any step.
Practical example
A contracting firm in Dammam agreed to supply materials at a fixed price. Exceptional general circumstances that could not have been foreseen then arose and raised the cost of the materials to the point of threatening the firm with a heavy loss. The firm may invite the other party to negotiate without delay while continuing to supply; if they do not agree within a reasonable period, the court may reduce the obligation to a reasonable level.
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 97 of the Saudi Civil Transactions Law
Can I stop performing a contract because of changed circumstances?
No. A request to negotiate does not entitle the debtor to refrain from performing the obligation.
What are the conditions for applying the changed circumstances rule?
Exceptional general circumstances must arise that could not have been foreseen when the contract was made, and they must make performance burdensome for the debtor so that it threatens him with a heavy loss.
What does the court do if the negotiation fails?
If no agreement is reached within a reasonable period, the court may, depending on the circumstances and after balancing the interests of both parties, reduce the burdensome obligation to a reasonable level.
Can a contract exclude this article?
No. Any agreement contrary to its provisions is void.
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.