Article 141 of the Saudi Commercial Court Law
المادة 141 من النظام التجاري نظام المحكمة التجارية · الفصل الحادي عشر: في العقوبات
This article prevents an agent or broker from buying his principal's property for himself without the owner's permission and knowledge, treats him as an embezzler, and punishes him with imprisonment from one month to one year or a fine.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يسوغ للوكيل بالعموم ولا للدلال أن يشتري من نفسه لنفسه مال موكله ما لم يكن بإذن المالك واطلاعه وإذا فعل ذلك بدون دراية صاحب المال أو المالك اختلاسا لترقي الأسعار أو نحو ذلك من الأسباب غير الشريفة يعد مختلسا ويجازى بالحبس من شهر واحد إلى سنة واحدة أو بغرامة من عشرة جنيه إلى خمسين جنيها
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 141 explained in plain English
This article deals with conflict of interest in agency and brokerage.
The rule: a general agent or a broker may not buy his principal's property from himself for himself, unless it is with the owner's permission and knowledge.
An agent or broker is charged with achieving the principal's interest, so if he buys the property for himself he becomes seller and buyer at the same time, and may prefer his own interest to the principal's. For this reason the text requires the owner's permission and knowledge.
The penalty: if he does so without the property owner's awareness, embezzling in anticipation of rising prices or for similar dishonorable reasons:
- he is considered an embezzler.
- and he is punished with imprisonment from one month to one year, or with a fine of ten pounds to fifty pounds.
The meaning of “embezzling in anticipation of rising prices” is that he buys the property for himself at the current price while expecting it to rise, so that he profits instead of his principal.
The fine is set in pounds, which reflects the time the law was issued. Before it, Article 140 punishes forgery of bonds and books. Article 142 follows, punishing the spreading of false news to affect prices.
If you discover that your agent or broker bought your property for himself without your knowledge, consult a lawyer who specializes in commercial and criminal cases.
Practical example
A merchant in Riyadh instructed a broker to sell a commercial plot of land, and the broker bought it for himself in the name of his relative without the merchant's knowledge, expecting its price to rise. Under this article, the broker is considered an embezzler and is punished with imprisonment from one month to one year or a fine.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentCriminal Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Criminal Law lawyers
Lawyers who handle this kind of case
Ibrahim Al Salem Law Firm
Active contributor
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Frequently asked questions about Article 141 of the Saudi Commercial Court Law
May an agent or broker buy his principal's property for himself?
He may not do so unless it is with the owner's permission and knowledge.
What is the penalty for doing this without the owner's knowledge?
He is considered an embezzler and is punished with imprisonment from one month to one year, or a fine of ten pounds to fifty pounds.
More articles on Commercial Penalties
- Article 5
The article requires every merchant to deal with integrity and honor, without fraud, deceit or swindling, or he deserves the penalty under the penalties in the law.
يجب على كل تاجر أن يسلك في كل أعماله التجارية بدين وشرف، فلا يرتكب غشا ولا تدليسا ولا احتيالا ولا غبنا ولا غررا ولا نكثا ولا شيئا مما يخالف الدين والشرف بوجه من
- Article 41
The article makes every money changer responsible for his work, books and employees, regulates the exchange of coins at the Finance request, and assigns the application of the money changer provisions to municipal councils where there is no Commercial Court.
كل صراف مسئول عن أعماله وانتظام دفاتره وأعمال الأشخاص المستخدمين عنده مما تترتب فيها عقوبة بمقتضى فصل العقوبات : أ- يجب على الطرفين أن يقوموا بكل أمر حكومي إذا
- Article 63
The article prohibits putting dates in transfers ahead of their true date, and treats that as forgery if it occurs.
تقديم التواريخ في التحاويل عن تاريخها الحقيقي ممنوع وإن حصل يعد ذلك تزويرا .
- Article 138
The article punishes a merchant who reneges on a valid sale after giving the release order, even in collusion with the warehouse keeper, by requiring delivery and imprisonment of one to three months.
كل تاجر باع شيئا من أمواله وأموال موكله التي هي تحت تصرفه بيعا صحيحا ثم أعطى للمشتري سند الفسح ( الستمى ) باستلامه من المخزن ثم نكث عن بيعه وعارض في تسليم المبي
- Article 139
The article punishes a merchant who tricks a discerning minor, exploiting his need, into giving a document, by imprisonment of three months to a year or a fine of fifty to one hundred pounds.
كل من أساء الاستعمال من التجار في احتياجات صبي مميز بأن احتال عليه لأخذ وثيقة منه على أي صورة كانت سواء تضمنت استقراض دراهم واستعارة أشياء أو إعطاء أوراق أو إبر
- Article 140
The article punishes anyone who changes words or inserts phrases in a signed or sealed bond or a commercial book through embezzlement and forgery by imprisonment of three months to a year or a fine.
من أساء الاستعمال في سند أو ورقة فيها ختم أو إمضاء أو في دفتر تجاري بتبديل كلمات أو إدخال عبارات تقضى تعهد أو إبراء على وجه الاختلاس والتزوير يعاقب بالحبس من ثل
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.