Civil Transactions Law
Art. 316Status 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.
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