Civil Transactions System

First: The Civil Transactions System sets out a series of provisions that regulate contracts, starting with the conditions for contract formation, followed by contract invalidation, its effects, and even contract termination provisions. Below, we will highlight the most prominent of these provisions:

  1. The agreement must be realized through the offer and acceptance between the contracting parties.

  2. Both parties must possess the required capacity to act and contract.

  3. Both parties must have the intent to contract and achieve the intended purpose.

Second: A contract is established through the mutual intention of offer and acceptance from both parties. The Civil Transactions System has set standards for expressing intent, which include the following:

A. The offer and acceptance occur through any expression of intent.

B. The expression of intent can be made in several forms, including: (spoken words, writing, clear gestures, or conduct), unless the system, agreement, or the nature of the transaction requires otherwise.

C. The expression of intent may be either explicit or implicit, unless the system, agreement, or the nature of the transaction requires otherwise.

See Articles (33 to 56) of the Civil Transactions System.

Third: The role of the contract as a legal instrument in the Civil Transactions System:

The primary purpose of contracts is to establish an obligation between the parties, so that the contract becomes a means of fulfilling the obligations of the parties. It regulates legal relationships between the parties by specifying their rights and the obligations arising from them, clearly outlining the duties each party must fulfill. The contract grants the parties mutual rights and obligations, along with the rules for their enforcement.

The contract also determines the financial rights of the parties, the mechanisms for their execution, and the reasons and conditions for termination, as well as providing a framework for dispute resolution.

Fourth: Types of named contracts mentioned in the Civil Transactions System include:

  1. Sale Contract: A contract between a seller and a buyer, under which the seller transfers ownership of the sold item to the buyer in exchange for a cash price.

  2. Exchange Contract: A contract based on the exchange of one property for another, with neither being cash.

  3. Loan Contract: A contract under which money is lent to a borrower to be used, with the obligation to return an equivalent amount.

  4. Gift Contract: A contract under which the giver transfers property to the recipient without any compensation, provided this happens during the giver's lifetime.

  5. Lease Contract: A contract under which the lessor allows the lessee to use a non-consumable object (the leased property) in exchange for a fee, known as the rent.

  6. Construction Contract: A contract between a contractor and an employer, where the contractor is obligated to perform work or create something for the employer in exchange for a fee. The contractor is not considered an employee or agent of the employer.

  7. Partnership Contract: This contract is defined as an agreement between two or more partners who contribute money, work, or a combination of both to a project, with the purpose of sharing the resulting profits or losses.

See Chapter One: Contracts Related to Ownership in the Civil Transactions System.

Fifth: Contract Invalidity:

Any interested party has the right to request the invalidation of the contract, and the court may rule this on its own initiative. Invalidity cannot be waived through approval.

A claim for invalidity is not heard if ten years have passed since the contract date. However, any interested party may contest the contract's invalidity at any time.

If only part of the contract is invalid, only that part is void unless it is evident that the contracting party would not have agreed to the contract without that part, in which case they may request the entire contract to be invalidated.

See Articles (81 to 84) of the Civil Transactions System.

In conclusion, it is clear that the Civil Transactions System has established the legal framework for contracts, agreements, and legal dealings between individuals and different legal entities. It is essential to comply with and understand the provisions of the system to avoid contract invalidity.

Thus, if you need to review or draft a contract, you need a lawyer specializing in contracts. Dr. Mohamed Bin Abdulrahman Al-Jaber Law Firm is your best choice, with over 20 years of experience in providing legal services, particularly in commercial contracts. Don't hesitate to contact us.