At Faisal Al Faozan & Partners, we strive for accuracy and clarity when drafting and reviewing contracts, regulations and internal policies, and we work to keep them consistent with the provisions of Islamic Sharia and the applicable laws. This supports the continuity of contractual relationships, preserves the rights of all parties and reduces the scope for disagreement. We do this by drawing on our practical experience and on the situations we encounter in our professional practice.
Frequently Asked Questions
Paragraph (1) of Article 94 of the Civil Transactions Law provides that once a contract has been validly concluded, it may not be rescinded or amended except by agreement or under a statutory provision, and paragraph (2) requires the parties to perform their contractual obligations.
Article 95 of the Civil Transactions Law requires a contract to be performed in accordance with its terms and in good faith, and provides that a contract binds the parties not only to what it states but also to what is incidental to it under statutory provisions, custom and the nature of the contract.
Article 104 of the Civil Transactions Law provides that clear contract wording may not be departed from on the pretext of interpretation. Where interpretation is needed, the common intention of the parties must be sought without relying only on the literal meaning of the words. Doubt is resolved in favor of the party bearing the obligation or condition, and in adhesion contracts in favor of the adhering party.
Article 55 of the Law of Evidence gives proof by digital evidence the same status as written proof under the Law, and Article 57 makes unofficial digital evidence binding on the parties, unless proven otherwise, in certain cases, including where it is derived from a digital means specified in the disputed contract.
Paragraph (1) of Article 66 of the Law of Evidence requires any transaction exceeding one hundred thousand riyals, or its equivalent, or of unspecified value to be proven in writing, and witness testimony is not accepted to prove it unless there is an agreement or provision to the contrary, subject to the cases permitted by Article 68.