Saudi Cabinet chaired by Crown Prince Mohammed bin Salman approved in its meeting last week the Civil Transactions Law.
The details of the law, which included several chapters and 720 articles, were published by Umm Al-Qura newspaper. The law will be enforced after 180 days from the date of this publication.
According to the Law, the first article stipulates that the provisions of the Civil Transactions Law shall apply to all matters dealt with in their wording or content, but if there is no applicable provision is available, the overall rules contained in the final provisions shall apply, and if there is no applicable rule, the provisions derived from Shariah most appropriate to this Law shall be applied.
Article 38 of the Law clarifies that if the contracting parties are present in the same place or in two different places through direct means of communication, the contract shall be deemed to have been concluded at the time and place where the acceptance was issued, unless otherwise agreed. If the two contracting parties are absent, the contract shall be deemed to have been concluded at the time and place at which the offeror became aware of the acceptance, unless otherwise agreed.
According to article 40, the Law indicates that acceptance in contracts of adhesion is limited to mere delivery of prescribed conditions established by the offeror and is not subject to discussion.
Article 41 stipulates that if a contract is negotiated, this does not entail an obligation on the negotiating parties to conclude such a contract, however, a person who negotiates or terminates the negotiation in bad faith is liable for the damage suffered by the other party, and this does not include compensation for the loss of expected gain from the contract under negotiation.
Source : Argaam