Article 20 of the Saudi Commercial Court Law
المادة 20 من النظام التجاري نظام المحكمة التجارية · الفصل الثالث: في الوكيل بالعمولة المعبر عنه بالقومسيون والأمناء المأمورين بنقل الأشياء برا وبحرا
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.
Official text (Arabic)
This article has not been amended since the law was issued.
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 نفس التاجر أو بإذنه فلا ضمان عليه
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 20 explained in plain English
This article deals with a common situation: an agent received goods or items to carry them, then transferred the matter of carrying them to another person. The article distinguishes between two cases:
- A transfer without the original merchant's permission: The agent is liable for any damage that occurs because of that transfer.
- A transfer to another agent of the merchant himself or with his permission: The agent has no liability because of the transfer.
The criterion is the permission of the merchant who owns the goods. If the merchant chose the other agent himself or permitted the transfer, the first agent's liability for this transfer falls away, but if the agent acted on his own, he bears the consequences of his act.
Note that the text ties liability to damage that occurs because of the transfer. Article 21 follows to require every agent and trustee to record in the daybook the kind, quantity and prices of the goods ordered to be carried.
To avoid dispute, it is advisable for the merchant's permission for the transfer to be clear. If damage occurs, it is advisable to consult a lawyer who specializes in commercial cases to assess liability.
Practical example
A merchant in Dammam handed a shipment of devices to an agent to carry to Hail, and the agent handed them to another carrier without asking the merchant's permission, and the devices were damaged. Under this article the agent is liable for the damage caused by this transfer. Had the merchant permitted the transfer, the agent would not be liable because of it.
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 20 of the Saudi Commercial Court Law
Is the agent liable if he hands the goods to another carrier?
If he transfers the carriage without the original merchant's permission, he is liable for any damage that occurs because of it.
When is the agent not liable on transfer?
If the transfer is to the other agent of the merchant himself or with his permission, he has no liability.
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 19
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.
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
- 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.