Article 11 of the Saudi Electronic Transactions Law

This article deals with automated contracting, that is, contracts concluded by programmed electronic systems without a human being intervening at the moment of conclusion. An "electronic data system", according to Article 1, is one or more electronic devices or programs used to create, send, receive or process data and the like.

First case: between two or more systems. Contracting may take place through automated electronic data systems, or directly between two or more systems, that are prepared and programmed in advance to carry out these tasks as representatives of the two parties to the contract. The contract is valid, enforceable and produces its legal effects even though no natural person directly intervenes in concluding it.

Second case: between an automated system and a human being. Contracting may take place between an automated system and a natural person, provided that this person knows, or is presumed to know, that they are dealing with an automated system that will conclude or perform the contract.

In practice, the article covers situations such as automated ordering systems between a company and its suppliers, or buying from an online store that processes the order automatically. It complements Article 10, which allows offer and acceptance electronically, and Article 12, which attributes a record sent by an automated system programmed by the originator to the originator.

Anyone who designs an automated contracting system for dealing with individuals would do well to make clear to them that they are dealing with an automated system, since their knowledge of that, or the presumption of it, is a condition of valid contracting in the second case.