Discover 8 types of common business disputes between merchants
The Kingdom of Saudi Arabia is keen to facilitate judicial procedures for merchants and organize the process of commercial claims and disputes in a manner consistent with prevailing customs and the nature of commercial practices.
The Commercial Courts System and its executive regulations address commercial litigation procedures and specify the types of commercial disputes, the value of financial claims within the jurisdiction of commercial courts, the conditions for accepting a lawsuit, lawsuits requiring the appointment of a commercial lawyer, and cases of resorting to reconciliation or settlement.
What are commercial disputes?
These are disputes that arise between merchants as a result of disagreement between them, disagreement over the implementation of obligations, demands for rights agreed upon between them in commercial contracts, or compensation for damages.
Commercial disputes differ from civil disputes in that commercial disputes relate to commercial activities and profit, while civil disputes involve claims for personal, real estate, or family rights.
Discover 8 types of common business disputes between merchants
What are the conditions for filing a commercial lawsuit?
The following conditions are required to file a lawsuit before commercial courts:
- The plaintiff must be qualified to file the lawsuit whether an individual or a company.
- The existence of a direct interest or existing commercial dispute.
- The agent must have a certified power of attorney to represent the party in court.
What are the types of commercial disputes?
Article 16 of the Commercial Courts System stipulates the types of commercial disputes, including:
- Disputes between merchants over their business.
- Lawsuits filed against merchants in commercial contract disputes amounting to more than 100 thousand Saudi riyals.
- Disputes arising from participation contracts.
- Corporate issues.
- Intellectual property disputes.
- Bankruptcy cases.
- Disputes related to the judicial guard, secretary, liquidator, expert, etc.
- Damage compensation issues.
Discover 8 types of common business disputes between merchants
Does the Commercial Court hear cases worth less than 500,000 riyals?
Does the Commercial Court hear cases worth less than 500,000 riyals?
A distinction must be made between lawsuits in which both parties hold the status of a merchant and lawsuits filed against the merchant by an ordinary person who does not hold the status of a merchant.
- Dispute cases between merchants: Commercial courts have jurisdiction to consider dispute cases between merchants, regardless of their value.
- Dispute cases between a merchant and a natural person: Article 31 of the Executive Regulations of the Commercial Courts System stipulates that commercial courts have jurisdiction to consider cases filed by an ordinary person against a merchant in commercial contract disputes if the value of the claim exceeds only 500,000 Saudi riyals.
What business cases should be filed by a lawyer?
A competent commercial lawyer must be appointed to plead before commercial courts in the following cases:
- If the claim value exceeds 10 million Saudi riyals in lawsuits:
- Commercial disputes between merchants.
- Lawsuits filed against merchants in commercial contract disputes.
- Lawsuits related to the judicial guardian, the trustee, the liquidator, the expert, and the like.
- Compensation claims.
- If the value of the claim exceeds two million Saudi riyals in lawsuits:
- Participation contracts.
- Corporate issues.
- Intellectual property issues.
- Bankruptcy cases if the lawsuit is related to a request to open a financial reorganization procedure.
When should commercial dispute settlement be resorted to by alternative dispute resolution methods?
When should commercial dispute settlement be resorted to by alternative dispute resolution methods?
Article 58 of the Executive Regulations of the Commercial Courts System stipulates the necessity of resorting to reconciliation or mediation in the following commercial dispute cases:
- Participation contracts.
- Commercial disputes between merchants and lawsuits filed against the merchant in which the value of the claim does not exceed one million Saudi riyals.
- Issues that are between spouses or are related to them to the fourth degree.
- Contracts that include a requirement to settle the dispute through reconciliation or mediation before resorting to court.
Discover 8 types of common business disputes between merchants
It is important to seek the assistance of a specialized lawyer from the office of Lawyer Abdul Majeed Al Rashid in commercial cases to consider commercial disputes that require the presence of a specialized lawyer.
A commercial lawyer from the office of Attorney Abdul Majeed Al Rashid provides various legal services, including studying and analyzing the case, drafting commercial contracts, reviewing agreed terms and conditions, representing the client, and negotiating on his behalf when agreeing to
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