Article 31 of the Saudi Commercial Maritime Law
المادة 31 من النظام البحري التجاري · الفصل الأول: بناء السفينة وملكيتها
The article requires a ship construction contract, and any amendment to it, to be proved in writing, and the contract is valid only if signed by its parties.
Official text (Arabic)
This article has not been amended since the law was issued.
يثبت عقد بناء السفينة وأي تعديل يطرأ عليه بالكتابة، ولا يكون صحيحاً إلا بتوقيع أطرافه 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 31 explained in plain English
This article sets two formal requirements for a ship construction contract:
1. Writing: a ship construction contract is proved in writing, as is any amendment to it. An oral agreement to build is not enough, nor is one to later change the specifications, price or schedules.
2. Signature: the contract is valid only if its parties sign it.
In practical terms, the party ordering the ship and the builder need a written contract signed by both, and every change they agree on during construction should also be put in writing. The wording of the text is explicit that an amendment is subject to the same rule of writing.
The wording of the article distinguishes the effect of writing from that of the signature: writing is the means of proving the contract and its amendments, while signature is a condition of the contract's validity. The article does not specify the details the contract must contain.
This article comes among the provisions on the construction and ownership of ships, alongside Article 32, under which ownership of the ship remains with the builder until delivery is accepted after trials, unless agreed otherwise. A person concluding a contract to build a ship can consult a lawyer specializing in commercial cases to draft it.
Practical example
A fishing company in Jazan agrees with a shipyard to build a ship, then they agree orally to change the engine. Under the article, this amendment is proved in writing like the original contract.
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 31 of the Saudi Commercial Maritime Law
Must a ship construction contract be in writing?
Yes. A ship construction contract, and any amendment to it, is proved in writing.
When is a ship construction contract valid?
It is valid only if its parties sign it.
More articles on Ship Construction and Co-Ownership
- Article 32
The article provides that ownership of the ship remains with the builder and passes to the party ordering it only on accepting delivery after trials, unless agreed otherwise.
تبقى ملكية السفينة لمتعهد البناء، ولا تنتقل ملكيتها إلى طالب البناء إلا بقبول تسلمها بعد تجربتها، ما لم يتفق على غير ذلك.
- Article 33
The article makes the ship builder guarantee that the ship is free of hidden defects, even if the party ordering it accepted delivery after trials.
يضمن متعهد بناء السفينة خلوها من العيوب الخفية، وإن قبل طالب البناء تسلم السفينة بعد تجربتها.
- Article 34
The article provides that a suit for guarantee of hidden defects is not heard after one year from the date of learning of the defect.
لا تسمع دعوى ضمان العيوب الخفية بعد مضي سنة من تاريخ العلم بالعيب.
- Article 35
The article extends the hidden-defect guarantee and the one-year period from learning of the defect, set in Articles 33 and 34, to ship repair contracts.
تسري أحكام المادتين (الثالثة والثلاثين) و(الرابعة والثلاثين) على عقود إجراء إصلاحات السفينة.
- Article 36
The article requires acts creating, transferring or ending ownership of a ship or other real rights in it to be proved by an official document, otherwise void, and they are effective against third parties only once entered in the ship's register.
1- تُثبت التصرفات التي يكون موضوعها إنشاء حق الملكية أو نقله أو انقضاءه، أو غير ذلك من الحقوق العينية على السفينة؛ بمحرر رسمي، وإلاَّ كانت باطلة. وإذا وقعت هذه
- Article 37
The article provides that the majority view, meaning owners of more than half the shares, governs decisions on operating a jointly owned ship, and lets the dissenting minority ask a court to annul a decision within 15 days.
1- يُتَّبع رأي الأغلبية في كل قرار يتعلق باستغلال سفينة مملوكة على الشيوع، ما لم ينص النظام أو يتفق المالكون على غير ذلك. 2- تتوافر الأغلبية لمالكي أكثر من نصف
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.