Article 7 of the Saudi General Warehouses Law

This article defines the warehouse keeper's responsibility for the goods deposited with him, and has three elements:

1. The duty to guard and preserve: the warehouse keeper is considered responsible for the goods deposited with him, and he must guard and preserve them, exercising the utmost care in doing so. This is a high standard, so the usual degree of care is not enough.
2. The limit of liability: his liability is within the limit of the goods' value recorded in the deposit documents. The value written in the documents is the ceiling of liability.
3. Cases of exemption: the warehouse keeper is not liable for damage or shortage affecting the goods if it arises from:
   • force majeure, or
   • an inherent defect in the goods themselves.

This article is linked to Article 6, which obliges the depositor to give correct details of the goods' type, specifications and value, so the accuracy of the value given affects the limit of liability recorded in the documents. It is also linked to Article 8, which allows the warehouse keeper to ask the Board of Grievances for permission to sell goods threatened with rapid damage that he had no part in, if the depositor refuses to take delivery of them or dispose of them after being notified by registered letter.

Assessing whether the damage arose from force majeure or an inherent defect, or from a lack of care, depends on the facts of each case, and anyone needing such an assessment is best advised to consult a lawyer specializing in commercial matters or compensation claims.