Article 19 of the Saudi Commercial Court Law
المادة 19 من النظام التجاري نظام المحكمة التجارية · الفصل الثالث: في الوكيل بالعمولة المعبر عنه بالقومسيون والأمناء المأمورين بنقل الأشياء برا وبحرا
The article gives the commission agent the right to be paid first, out of the value of goods sent to him for sale, what he spent on them, subject to conditions regarding their whereabouts.
Official text (Arabic)
This article has not been amended since the law was issued.
كل وكيل بعمولة له الحق أن يتقدم في استيفاء جميع ما صرفه على أمتعة مرسلة له من محل آخر برسم البيع لحساب موكله من نفس قيمتها إذا كانت موجودة لديه أو مودعة في مخزن الجمرك أو حملت إليه بموجب قائمة الإرسالية .
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 19 explained in plain English
This article establishes an important right for the commission agent defined in Article 18: he may be paid first all that he spent on goods sent to him from another place for sale for his principal's account, out of their very value.
"Be paid first" means the agent recovers his expenses from the value of those goods with priority, without waiting to claim them from the principal separately. But the text restricts this right to goods that are in one of the following situations:
- In his possession.
- Or deposited in the customs warehouse.
- Or carried to him under the consignment note.
The text also requires that the goods were sent to him from another place and for sale for his principal's account. The article does not specify the types of expenses in detail, but says "all that he spent" on them.
The text limits this right to goods sent for sale for the principal's account, and does not extend it to others. If a dispute arises between an agent and a principal about the expenses or the right of priority, it is best to consult a lawyer who specializes in commercial cases.
Practical example
A merchant from Jeddah sent a shipment of fabrics to a commission agent in Riyadh to sell for his account, and the agent paid storage and loading charges. As long as the fabrics are with him, under this article he may recover what he spent out of their value before others.
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 19 of the Saudi Commercial Court Law
Is a commission agent entitled to recover what he spent on the goods?
Yes. He may be paid first all that he spent on goods sent to him for sale, out of their very value.
When does this right arise?
If the goods are in his possession, or deposited in the customs warehouse, or carried to him under the consignment note.
More articles on Commission Agent and Carriage of Goods
- Article 18
The article defines the commission agent as a person who carries on trade on behalf of another, conducting his transactions in his own name or in the name of a company for the account of his principal.
الوكيل بالعمولة هو الذي يتعاطى التجارة بالوصاية والنيابة ويجري معاملاته باسمه أو بعنوان شركة ما لحساب موكله.
- Article 20
The article makes the agent liable for any damage if he transfers the carriage of goods to another without the original merchant's permission, and he is not liable if the transfer is by the merchant or with his permission.
إذا حول الوكيل أمر نقل البضاعة والأشياء المسلمة أو المرسلة له إلى غيره بغير إذن التاجر الأصلي يضمن كل ضرر يحصل بسبب ذلك. أما إذا كان التحويل إلى الوكيل الآخر من
- Article 21
The article requires every agent and trustee to record in the daybook the kind, quantity and prices of the goods ordered to be carried by land or sea.
يجب على كل وكيل وأمين أن يقيد بدفتر اليومية جنس ومقدار وأثمان البضائع المأمور بنقلها بحرا أو برا.
- Article 22
The article requires the agent and trustee to attach a consignment note to the goods when sending them, that is, a statement that meets the specified requirements.
يجب على الوكيل والأمين حين إرسال البضاعة أن يرفق بها قائمة الإرسالية ؛ أي كشفا مستوفيا للشرائط الآتية
- Article 23
The article sets the details that must appear in the consignment note, from the description of goods and the delivery time limit and the parties' names to the fee, compensation and signature.
يوضح في قائمة الإرسالية مقدار وجنس البضائع المنقولة ونوع الطرود ومهلة إيصالها مع بيان اسم وشهرة الوكيل والأمين المتعهد بنقلها والمكارى ، واسم وشهرة من تسلم إليه
- Article 24
The article binds the agent, trustee and carrier to ensure delivery of goods within the time limit set in the consignment note, and they are liable for damage from delay unless the obstacle was a force majeure.
تلزم الوكيل والأمين والمكارى ضمانة إيصال البضائع المسلمة إليه في داخل المهلة المعينة في قائمة الإرسالية فكل ضرر ينشأ من تأخيره يضمنه ما لم يكن المانع قاهرا يعجز
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.