Saudi Arabia adopts World Drowning Prevention Day as national health priority    Saudi defense minister and Iranian FM discuss regional developments    GACA imposes SR2.8 million in fines for 87 civil aviation violations in Q2 2025    Desperate Gaza doctors cram several babies into one incubator as fuel crisis reaches critical point    ICC issues arrest warrants for Taliban leaders over women's rights violations    Syria issues appeal to EU for help battling massive wildfires along northwestern coast    Total e-messages sent to parties in lawsuits reach over 11.8 million during first half of 2025    3 arrested in assault case in Riyadh    New Property Ownership Law will take into effect in January 2026 Al-Hogail thanks King and Crown Prince for the updated law    Saudi, Iranian FMs discuss regional developments    Saudi Arabia sees 51% surge in blockchain business registrations by Q2 2025    SAMA announces launch of new e-commerce payments interface    HONOR returns to Esports World Cup as Official Smartphone Partner for 2025 The renewed commitment will see HONOR elevate mobile esports competition with cutting-edge AI technologies and industry-leading hardware    Riot Games responds to match-fixing allegations in VALORANT    BLAST responds to BESTIA Visa controversy ahead of CS2 Austin major    Christophe Galtier named NEOM SC head coach ahead of historic Saudi Pro League debut    Michael Madsen, actor of 'Kill Bill' and 'Reservoir Dogs' fame, dead at 67    BTS are back: K-pop band confirm new album and tour    Michelin Guide launches in Saudi Arabia with phased rollout in 2025    'How fragile we are': Roskilde Festival tragedy remembered 25 years on    Sholay: Bollywood epic roars back to big screen after 50 years with new ending    Ministry launches online booking for slaughterhouses on eve of Eid Al-Adha    Shah Rukh Khan makes Met Gala debut in Sabyasachi    Pakistani star's Bollywood return excites fans and riles far right    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Supreme Court: Coronavirus is an emergency situation regarding compliance with contractual obligations
Published in The Saudi Gazette on 17 - 01 - 2021

RIYADH — The General Assembly of Saudi Arabia's Supreme Court has accorded its approval to consider coronavirus pandemic as an emergency situation if it is not possible to fulfill a commitment or implement contractual obligation without incurring unusual loss, and force majeure if implementation becomes impossible.
Okaz/Saudi Gazette has learned from well-informed sources that the court has directed to write off delayed rents due to the pandemic and review contracting conditions.
The new regulations, issued by the Supreme Court, stipulated five conditions for applying the principle to affected contracts and obligations.
This will be applied if the contract was concluded before the start of the precautionary measures to stem the spread of coronavirus and continued implementing it after its occurrence.
Another condition is that there had been a direct impact of the pandemic on the contract and that was unavoidable. Similarly, the impact of pandemic on the contract is not dependent on anything else or not sharing with another reason.
The conditions also include that the affected person has not waived his right, and that the effects and damages of the pandemic cannot be dealt with a special law or a decision of the competent authority.
The Supreme Court affirmed that the court, upon the request of the plaintiff who suffered damage, and after balancing the two parties and looking into the circumstances surrounding the circumstances, shall undertake amendments in the contractual obligation that was impacted by the pandemic so as to deliver justice.
The court confirmed that the provisions for renting real estate and movable property affected by the pandemic will be applied in two circumstances. The first is the inability of the tenant to fully or partially use the leased property, and in such a circumstance the court will reduce the rent to the extent of the actual decrease in the usual intended benefit.
In the second circumstance, the landlord does not have the right to terminate the contract if the tenant delays in paying the rent for the period during which it was not possible to use in whole or in part due to the pandemic.
The Supreme Court's instructions also affirmed that four provisions are applied in contracting, supply and related agreements that were affected by the pandemic.
Firstly, if the effect of the pandemic results in an increase in the value of materials, labor supply or operation, then the court increases the value of the contract. In the event that the material price increase is temporary and it is about to disappear, then the court suspends the implementation of the commitment for a temporary period.
Secondly, if the impact of the pandemic results in the lack of goods from the market, then the court will decrease the quantity to the extent it deems sufficient to remove the unusual harm.
Thirdly, if the impact of the pandemic is on the temporary lack of materials from the market; the court suspends the commitment for a temporary period if the obligee is not seriously affected by this suspension.
If he is damaged then he has the right to request for annulment, but if the damage is absolute and this leads to the impossibility of implementing some or all of the contractual obligations, then the court shall terminate it at the request of one of the contracting parties.
Fourthly, if the subject of the contract is an obligation to perform a work and the pandemic causes it to be impossible to be implemented on time, then the court shall suspend the implementation of the commitment for a temporary period, and if the obligee suffers a serious damage, he may request the annulment.
The Supreme Court clarified that, subject to the previous provisions, a court —while examining lawsuits arising from contracts and obligations affected by the pandemic — is obligated not to apply the penalty clause or fines in whole or in part — depending on the case — or withdraw the project and implement the account contained in contracts and obligations, if the pandemic is the reason for delaying the implementation of the obligation.
If the contract includes a clause of exemption from liability for one of the parties to the contract when the emergency or force majeure occurs, then this condition has no effect, and the party who breached the obligation has the liability of proving that the pandemic caused this, the Supreme Court clarified.


Clic here to read the story from its source.