Sources reviewed
The Saudi legal rule
A party to a bilateral contract may withhold performance while the other withholds a reciprocal obligation, provided both are due. Separate the current batch price from debts on unrelated orders. [1]
What the records establish
Map shipment triggers, payment dates and inspection periods for each batch. If shipment falls due before payment, identify the clause supporting any demand for advance payment. If the supplier relies on a jointly held acceptance record to trigger payment, identify the record, the fact it proves and the evidence of possession when requesting court-ordered production. [4]
Likely defence and next step
Payment may be stalled because the supplier omitted required clearance documents. Identify the missing document, propose a documented simultaneous exchange and specify the shipment restart date.
Applicability on 2026-10-30
Published on 19 June 2023, the law took effect on 17 December 2023. [2][3] It applies to commercial transactions where compatible with their nature and no special commercial provision governs. For earlier events, check whether a party invokes a conflicting applicable provision or judicial principle, or a time bar had already begun to run before commencement. [2]
Sources
- نظام المعاملات المدنية | Saudi Civil Transactions Law 114
- مرسوم الإصدار ونفاذ النظام | Promulgation and commencement Royal Decree M/191, clauses V–VI; Civil Transactions Law, art. 721
- أم القرى | Official Gazette Cabinet Resolution 820, publication on 1444-12-01 AH
- نظام الإثبات | Evidence Law 34
Related guides
- What should a cure notice identify before termination?
- When does a cost shock justify renegotiation?
- What happens if only part of a supply obligation becomes impossible?