Article 9 of the Saudi Commercial Books Law
المادة 9 من نظام الدفاتر التجارية
The article presumes that all entries in a merchant's books were made with the merchant's knowledge and consent, unless evidence proves otherwise.
Official text (Arabic)
This article has not been amended since the law was issued.
يفترض أن جميع القيود المدونة في دفاتر التاجر قد دونت بعلمه ورضاه ما لم يقم الدليل على عكس ذلك.
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 9 explained in plain English
This article sets an important legal presumption: every entry recorded in a merchant's books is considered to have been recorded with their knowledge and consent.
What does this mean in practice?
- A merchant cannot disown an entry in their books merely by saying they did not know of it, or that an employee or accountant wrote it without their permission.
- The starting point is that what is in the books comes from the merchant and agrees with their will, even if someone else wrote it.
The exception: this presumption is not absolute; it stands unless evidence to the contrary is produced. If the merchant can prove that a particular entry was recorded without their knowledge or consent, the presumption falls for that entry. The article does not state what kind of evidence is required or how it is to be presented.
It follows that the burden of proof falls on the person who claims the opposite of what is in the books, not on the person who relies on them.
The importance of this article appears alongside Article 10, which allows the competent judicial authority to order the books to be produced so that the entries relating to the dispute can be examined, and Article 8, which requires the books to be kept for at least 10 years. A merchant should therefore monitor what is recorded in their books continuously, because it will be counted against them.
If you face a dispute concerning an entry in commercial books, it is best to consult a lawyer specializing in commercial and company cases.
Practical example
Majed owns a trading establishment in Riyadh and found in the journal an entry for an amount owed to a supplier, written by his accountant. It is not enough for Majed to say he did not know of this entry; the starting point is that it was recorded with his knowledge and consent, and if he wants to deny it he must produce evidence to the contrary.
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 9 of the Saudi Commercial Books Law
Are the entries in a merchant's books binding on them?
The article presumes that all entries in a merchant's books were recorded with their knowledge and consent, unless evidence to the contrary is produced.
Can a merchant deny an entry written by their accountant?
The starting point is that the entry was recorded with their knowledge and consent, but they may prove the contrary with evidence.
Who bears the burden of proving that the merchant did not know of the entry?
The person who claims the opposite of what is in the books, because the article presumes knowledge and consent until evidence to the contrary is produced.
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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.