Article 8 of the Saudi General Warehouses Law
المادة 8 من نظام الإيداع في المخازن العامة
The article allows the warehouse keeper to ask the Board of Grievances for permission to sell goods threatened with rapid damage he had no part in, if the depositor refuses to take them or dispose of them after being notified by registered letter.
Official text (Arabic)
This article has not been amended since the law was issued.
للخازن أن يطلب من ديوان المظالم الإذن له ببيع البضاعة إذا كانت مهددة بتلف سريع لا دخل له فيه ورفض المودع تسلمها أو التصرف فيها بعد إبلاغه بذلك بخطاب مسجل، ويحدد ديوان المظالم طريقة البيع، والتصرف في الثمن.
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 8 explained in plain English
This article deals with a special case: deposited goods threatened with damage while the depositor does not dispose of them.
Conditions for requesting permission to sell:
- The goods must be threatened with rapid damage.
- The warehouse keeper must have no part in this damage.
- The warehouse keeper must have notified the depositor of this by registered letter.
- The depositor must refuse to take delivery of them or dispose of them after being notified.
If these conditions are met, the warehouse keeper may ask the Board of Grievances for permission to sell the goods. The warehouse keeper does not sell on his own, but with the Board of Grievances' permission.
The role of the Board of Grievances: it determines the method of sale and the disposal of the proceeds. The article does not explain how the proceeds are disposed of, but leaves that to what the Board determines.
This article is linked to Article 7, which makes the warehouse keeper responsible for the goods with the utmost care within the limit of their value recorded in the deposit documents, and exempts him from liability for damage arising from force majeure or an inherent defect. Article 8 gives him a legal means to avoid damage to the goods instead of waiting. Article 9 then obliges the warehouse keeper to take out cooperative insurance on the deposited goods.
A warehouse keeper or depositor in such a situation is best advised to consult a lawyer specializing in commercial or administrative matters.
Practical example
A merchant in Riyadh deposited a quantity of fruit in a general warehouse, and it turned out to be threatened with rapid damage that the warehouse keeper had no part in. The warehouse keeper notified him by registered letter, and the merchant refused to take delivery of it or dispose of it. Under this article the warehouse keeper may ask the Board of Grievances for permission to sell it, and the Board determines the method of sale and the disposal of the proceeds.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentAdministrative Law lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Administrative Law (Board of Grievances) lawyers
Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Al-Safwa Law Office and Legal Consultancy
Frequently asked questions about Article 8 of the Saudi General Warehouses Law
May the warehouse sell the depositor's goods if they are going to spoil?
The warehouse keeper may ask the Board of Grievances for permission to sell them if they are threatened with rapid damage that he had no part in, and the depositor refused to take delivery of them or dispose of them after being notified by registered letter.
Who determines how goods threatened with damage are sold?
The Board of Grievances determines the method of sale and the disposal of the proceeds.
Is verbal notice to the depositor enough?
The article provides for notifying the depositor by registered letter.
More articles on Warehouse Keeper's Obligations and Liability
- Article 4
The article bars the warehouse keeper, whether an individual or a company, from commercial activity or speculating in goods of the type he keeps; the bar covers a partner owning 10% or more and exempts state-owned companies.
لا يجوز للخازن فردا كان أو شركة أن يمارس بأية صفة كانت سواء لحسابه أو لحساب غيره نشاطا تجاريا، أو يضارب على بضائع من نوع البضائع المرخص له بحفظها في مخزنه، وإصد
- Article 7
The article makes the warehouse keeper responsible for guarding the deposited goods with the utmost care, within the limit of their value recorded in the deposit documents, and not liable for damage or shortage caused by force majeure or an inherent defect.
يعد الخازن مسؤولا عن البضاعة المودعة لديه وعليه حراستها والمحافظة عليها وأن يبذل في ذلك العناية القصوى، وتكون مسؤوليته في حدود قيمتها المثبتة في مستندات الإيداع
- Article 9
The article obliges the warehouse keeper to take out cooperative insurance on the goods deposited with him.
على الخازن أن يقوم بالتأمين التعاوني على البضاعة المودعة.
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.