Disadvantages of satisfaction in the civil transactions system

Disadvantages of satisfaction in the civil transactions system

The importance of contracts lies in the fact that they help facilitate and document transactions between parties and encourage trade exchange, as they are an integral part of our daily lives, such as sales, lease, loan, partnership contracts, etc.

The consent of both parties to the contract is an essential element in the formation of the contract. However, this consent may be subject to defects that affect its validity and lead to the termination and invalidation of the contract, including error, fraud, coercion, exploitation, and injustice.

What is contract satisfaction?

Satisfaction is considered one of the most important pillars of contracts in the Saudi civil transactions system, as satisfaction is defined as the agreement of the wills of two contractors who have the capacity to contract, and this will is expressed in a way that indicates it.

Consent shall be by mutual consent between the two parties to conclude a contract or perform an act, and this shall be expressed explicitly or implicitly through offer and acceptance, whether through writing, pronunciation, or conventional reference.

An example of this is if the seller agrees to sell a car and the buyer accepts it explicitly, such as saying, “I accept to buy it”, or he pays the value of the car directly.

Disadvantages of satisfaction in the civil transactions system

What are the disadvantages of satisfaction in the civil transactions system?

What are the disadvantages of satisfaction in the civil transactions system?

The basic principle is that the contract is concluded by agreement of both parties, with their knowledge of the details of the contract, such as the type, form, and location of the sale. However, satisfaction may be marred by some defects that affect the validity of the contract and lead to its invalidation or termination.

The Civil Transactions Law stipulates the most important defects of consent in Saudi law, which are:

mistake

One of the defects of consent is the error in contracts, which is the belief of one of the contracting parties that there is an essential characteristic in the subject of the contract, or the person of the contracting party, or someone else, that prompts him to contract, and then it appears to him that he has made a mistake.

The following conditions must be met for a mistake to be considered as affecting the validity of the consent:

• The error must be material: meaning that without it, the contracting party would not have been satisfied with the contract due to the existence of this error, and this does not include a material error such as an error in writing or calculation.
• That the other contracting party made the same mistake, knew about this mistake, or found it easy to notice.
• It does not conflict with what good faith requires.

Article 57 of the Civil Transactions Law stipulates the forms of error in the contract, which are:

• Error in the contract: An example of this is if the buyer thinks that he bought a car from the seller in a certain model and then finds out that he bought a car of a different model.
• Error in the person contracted with: such as error in the agent.
• A mistake in the character of the person being contracted with: An example of this in a contracting contract is if a person contracts with a certain, famous engineer to build his house, and then it becomes clear to him that he is not the engineer he is referring to and that he is different from him.

Deception

It is when one contractor deceives the other using fraudulent methods with the aim of pushing the contractor to conclude this contract.

One of the forms of deception or fraud is deliberately remaining silent to hide a defect in the commodity that the person who was deceived “the contractor” would not have concluded the contract if he had known about this defect.

Coercion

Coercion is defined as unlawfully threatening a person with a material or moral means that frightens him and prompts him to conclude a contract or take a certain action.

According to Article 65 of the Law, coercion must meet the following conditions:

• The threat must be a serious danger that exposes the person to danger, whether to himself, his honor, or his money.
• That this threat forces the person to contract.
• Issuance of coercion by the other contractor.

Exploitation

Exploitation occurs when one contractor exploits an apparent weakness or urgent need in the other contractor in order to force him to conclude the contract.

Article 68 of the Civil Transactions Law stipulates that the exploitation lawsuit must be filed within 180 days from the date of the contract, otherwise it will not be heard before the court.

Ghabn

Is injustice a defect of contentment?

Is injustice a defect of contentment?

Ghabn is one of the defects of satisfaction in the sales contract, which is an increase or decrease in compensation in an unusual way, such as buying a car worth 160 thousand Saudi riyals, and the basic principle is that its price does not exceed 80 thousand Saudi riyals.

Article 69 of the system stipulates that the contractor may request the annulment of the contract from the court examining the case if injustice occurs in the money of an incompetent person.

Contracts concluded through bidding are not included in fraud.

Disadvantages of satisfaction in the civil transactions system

Do satisfaction defects invalidate the contract?

The competent court is competent to consider defects of consent and verify the validity of their occurrence, and based on that, the court decides, according to each case, whether it is possible to continue the contract while changing some clauses or not, or decides to invalidate the contract in order to preserve the rights of the parties to the contract.

The person claiming a defect must prove this before the competent court and request annulment of the contract and compensation for the damages he suffered as a result.

Disadvantages of satisfaction in the civil transactions system

Contracts require a specialized lawyer from the office of Attorney Abdul Majeed Al Rashid, an expert in the civil transactions system and pleading before judicial courts to preserve rights and return them to their owners.

The lawyer from Abdul Majeed Al Rashid’s office provides a variety of legal services, including case study and analysis, drafting contracts and reviewing clauses, representing clients before the relevant authorities, providing legal advice on contract terms and agreements before signing them, attending sessions before relevant courts, and advocating on behalf of clients, among other services.