Alqanoni

Civil Transactions Law

Art. 179
Status 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.

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