Article 147 of the Saudi Commercial Court Law
المادة 147 من النظام التجاري نظام المحكمة التجارية · الفصل الحادي عشر: في العقوبات
This article punishes any merchant who violates the requirement of Article 5 with imprisonment from ten days to three months or a fine of ten to fifty pounds, according to his offense and circumstances.
Official text (Arabic)
This article has not been amended since the law was issued.
كل تاجر يخالف مقتضى المادة (5) يجازى بالحبس من عشرة أيام إلى ثلاثة أشهر أو بغرامة مالية من عشرة جنيهات إلى خمسين جنيها على حسب مقتضى جريمته وحاله.
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 147 explained in plain English
This article sets the penalty to which Article 5 refers.
Article 5 requires every merchant to conduct all his commercial dealings with religion and honor, so that he commits no fraud, deceit, trickery, unfair advantage, uncertain dealing or breach of agreement, nor anything that contradicts religion and honor in any way, and it provides that if he does so he deserves a deterrent penalty under the penal code contained in this law.
The penalty in this article:
- Imprisonment from ten days to three months,
- or a fine of ten pounds to fifty pounds.
The standard of assessment: according to the requirements of his offense and his circumstances. The penalty is not fixed; it is assessed according to the gravity of the act and the merchant's circumstances.
This article is therefore the general penalty for violating the duty of commercial honesty, while other articles in the chapter on penalties deal with particular forms carrying particular penalties, such as the penalty for a money changer who deals in counterfeit coins in Article 146 before it.
The fine is set in pounds, which reflects the time the law was issued. Article 148 follows, punishing carriers, sales agents and custodians for trickery or betrayal of trust in destroying or losing goods entrusted to them.
If you have been subjected to fraud or deceit by a merchant, or an accusation of that has been made against you, consult a lawyer who specializes in criminal and commercial cases.
Practical example
A merchant in Jeddah sells honey mixed with sugar as pure natural honey. This is fraud that violates Article 5, so under this article he is punished with imprisonment from ten days to three months or a fine, according to his offense and circumstances.
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 147 of the Saudi Commercial Court Law
What is the penalty for a merchant who cheats or deceives?
Imprisonment from ten days to three months, or a fine of ten pounds to fifty pounds, according to the requirements of his offense and circumstances.
What acts does Article 5 cover?
Fraud, deceit, trickery, unfair advantage, uncertain dealing, breach of agreement, and anything that contradicts religion and honor in any way.
Articles this article refers to
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.