Civil Transactions Law
Art. 179Status unknownSaudi ArabiaRegulation
Issued by Ministry of Investment (misa.gov.sa)
1. A compensation that is contractually agreed upon by the parties shall not be
payable if the debtor proves that the creditor has sustained no harm.
2. The court may, upon a petition by the debtor, reduce the compensation if the
debtor establishes that the agreed-upon compensation was excessive or that
the original obligation was partially performed.
3. The court may, upon a petition by the creditor, increase the amount of
compensation to the extent necessary to cover the harm if the creditor
establishes that an act of fraud or gross negligence by the debtor is what
caused the harm to exceed the agreed-upon compensation.
4. Any agreement in violation of the provisions of this Article shall be null and
void.
The Arabic text is the legally binding version. The English translation is provided for guidance only.
Freshness not yet recorded