Article 25 of the Saudi Commercial Court Law
المادة 25 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 and trustee liable for items lost or damaged after reaching them, with exceptions, and they are not liable for what is damaged on the road before reaching them.
Official text (Arabic)
This article has not been amended since the law was issued.
يضمن الوكيل والأمين كل ما ضاع أو تلف من الأشياء المرسلة بعد وصولها إليه ما لم يكن في قائمة الإرسالية شرط يدفع عنه الضمان أو كان التلف والضياع بسبب يعجز الوكيل والأمين عن دفعه أما إذا كان التلف والضياع في أثناء الطريق قبل وصولها إليه فلا ضمان عليه ويتبع مقتضى التعهدات والمقاولات الواقعة بينهم في هذا الشأن.
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 25 explained in plain English
This article regulates the agent's and trustee's liability for loss and damage, and distinguishes according to when it happens:
- After the items reach him: The agent and trustee are liable for everything that was lost or damaged, except in two cases:
- If the consignment note contains a condition that excludes his liability.
- Or the damage and loss were due to a cause he was unable to prevent.
- On the road before they reach him: He has no liability, and what the undertakings and contracts made between the parties on this matter require is followed.
So the basic criterion is the moment the items come into the agent's or trustee's possession. The importance of the consignment note appears here, because it may contain a condition that relieves him of liability.
This article differs from Article 24, which deals with delay, and from Article 26, which deals with the liability of the carrier specifically. If your goods are lost or damaged, the time the damage occurred and the conditions in the note are decisive, so consult a lawyer who specializes in commercial cases.
Practical example
A carrier trustee in Jeddah received a shipment of clothes, then part of it was stolen from his warehouse because of weak guarding. Under this article the trustee is liable for what was lost after the shipment reached him, unless the consignment note contains a condition excusing him, or the loss was due to a cause he was unable to prevent.
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 25 of the Saudi Commercial Court Law
Is the agent liable for goods that are lost with him?
Yes. He is liable for what was lost or damaged after it reached him, unless the consignment note contains a condition excluding his liability or the cause was one he was unable to prevent.
Who is liable for damage to goods on the road before they reach the agent?
The agent and trustee have no liability in this case, and what the undertakings and contracts made between the parties require is followed.
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 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
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.