Saudi Arabia
JordanTHE LAW FIRM OF HAZIM AL MADANI ATTORNEYS AND LEGAL CONSULTANTS
Prominent Contracts in the New Civil Transactions Law
The new Civil Transactions Law in the Kingdom is one of the most significant modern legislations aimed at regulating civil relations between individuals and entities. This Law includes several prominent contracts that govern various aspects of transactions. These contracts respect the freedom of will of the contracting parties, protect their rights and obligations, and ensure swift and easy execution.
Among these contracts, the sales contract stands out. This contract defines the provisions and conditions that regulate the relationship between the seller and the buyer in the fields of commerce, industry, and services. It aims to achieve justice and balance between the two parties, protecting their rights and interests. The sales contract requires mutual agreement on the sold item, its price, payment method, and delivery. Furthermore, the item sold must be present, specified, and suitable for use. The two parties are allowed to agree on any additional conditions related to the sales contract, as long as they do not violate Sharia law, the Law, or public morals. If a dispute arises between the two parties in interpreting or implementing the sales contract, they resort to the judiciary to resolve it.
Here we refer to the concept of the sales contract. It is a contract through which ownership is transferred from the seller to the buyer for a cash price, based on the text of Article 307 of the Civil Transactions Law.
We want to clarify what are the most important conditions that must be met for the sold item according to the text of the Civil Transactions Law:
The sold item must be known to the buyer by seeing it or by stating its distinctive characteristics.
If the sales contract includes that the buyer is knowledgeable about the sold item, he has no right to request cancellation of the contract except if he proves the seller deceived him, based on the text of Article 308.
Additionally, we would like to mention a type of contract approved by the new Civil Transactions Law, which is the sale by sample. This contract allows the sale of a specific commodity based on a sample that represents its characteristics, quality, and price, without the seller being obligated to deliver the same sample to the buyer. This type of sale is legitimate in Islamic law.
Here we clarify the conditions of the sale by sample as stipulated by the Law:
If the sale is by sample, the sold item must match it.
If the sample is lost or damaged in the hands of one of the contractors, even without a fault from him, and they disagree on the sold item’s match to the sample, the say is for the other contractor, unless it is proven that the sample was lost or damaged in his hands to the contrary, based on the text of Article 309.
Furthermore, the Law approves another type of contract, which is the sale with a trial condition. This contract allows the seller and buyer to agree that the sale is conditional upon trial. That means the buyer has the right to return the sold item to the seller if it does not suit him or does not achieve the agreed-upon purpose. This contract is subject to the general provisions of named contracts in the new Civil Transactions Law in the Kingdom.
We want to mention here that it is permissible to sell with a trial condition for a specific period. If the two sellers do not specify the period, the usual trial period will be considered, and the seller must enable the buyer to try it. The buyer has the right to terminate the sale, even if he did not try the sold item, provided that he informs the seller of the termination within the trial period, based on the text of Article 310.
In this article, we have covered some of the prominent contracts in the new Civil Transactions Law in the Kingdom, aimed at regulating legal relations between parties and protecting their rights and interests. We also highlighted the importance of the new Civil Transactions Law, which plays a significant role in developing the investment and commercial environment in the Kingdom
Among these contracts, the sales contract stands out. This contract defines the provisions and conditions that regulate the relationship between the seller and the buyer in the fields of commerce, industry, and services. It aims to achieve justice and balance between the two parties, protecting their rights and interests. The sales contract requires mutual agreement on the sold item, its price, payment method, and delivery. Furthermore, the item sold must be present, specified, and suitable for use. The two parties are allowed to agree on any additional conditions related to the sales contract, as long as they do not violate Sharia law, the Law, or public morals. If a dispute arises between the two parties in interpreting or implementing the sales contract, they resort to the judiciary to resolve it.
Here we refer to the concept of the sales contract. It is a contract through which ownership is transferred from the seller to the buyer for a cash price, based on the text of Article 307 of the Civil Transactions Law.
We want to clarify what are the most important conditions that must be met for the sold item according to the text of the Civil Transactions Law:
The sold item must be known to the buyer by seeing it or by stating its distinctive characteristics.
If the sales contract includes that the buyer is knowledgeable about the sold item, he has no right to request cancellation of the contract except if he proves the seller deceived him, based on the text of Article 308.
Additionally, we would like to mention a type of contract approved by the new Civil Transactions Law, which is the sale by sample. This contract allows the sale of a specific commodity based on a sample that represents its characteristics, quality, and price, without the seller being obligated to deliver the same sample to the buyer. This type of sale is legitimate in Islamic law.
Here we clarify the conditions of the sale by sample as stipulated by the Law:
If the sale is by sample, the sold item must match it.
If the sample is lost or damaged in the hands of one of the contractors, even without a fault from him, and they disagree on the sold item’s match to the sample, the say is for the other contractor, unless it is proven that the sample was lost or damaged in his hands to the contrary, based on the text of Article 309.
Furthermore, the Law approves another type of contract, which is the sale with a trial condition. This contract allows the seller and buyer to agree that the sale is conditional upon trial. That means the buyer has the right to return the sold item to the seller if it does not suit him or does not achieve the agreed-upon purpose. This contract is subject to the general provisions of named contracts in the new Civil Transactions Law in the Kingdom.
We want to mention here that it is permissible to sell with a trial condition for a specific period. If the two sellers do not specify the period, the usual trial period will be considered, and the seller must enable the buyer to try it. The buyer has the right to terminate the sale, even if he did not try the sold item, provided that he informs the seller of the termination within the trial period, based on the text of Article 310.
In this article, we have covered some of the prominent contracts in the new Civil Transactions Law in the Kingdom, aimed at regulating legal relations between parties and protecting their rights and interests. We also highlighted the importance of the new Civil Transactions Law, which plays a significant role in developing the investment and commercial environment in the Kingdom
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