Alqanoni

Civil Transactions Law

Art. 316
Status unknownSaudi ArabiaRegulation

Issued by Ministry of Investment (misa.gov.sa)

1. If the seller’s capital is used as a basis to set the price of an item sold by way of Murabaha (cost-plus sale), Wadhi’ah (sale at a price lower than the actual cost), or Tawliyah (at-cost sale), the seller must indicate any effect on his capital. The buyer may demand nullification of the contract if the seller conceals a matter that has an effect on said capital. 2. If the capital is not set at the time of concluding the contract and the price is proven to be extremely unconscionable to the buyer, the buyer may demand nullification of the contract. The seller may avoid such nullification if he takes measures the court deems sufficient to eliminate unconscionability.

The Arabic text is the legally binding version. The English translation is provided for guidance only.

Freshness not yet recorded

Related articles

Citing judgments

No judgments citing this article have been indexed yet.

Amendment timeline

No amendment history recorded.