With the entry into force of the new Civil Code on 16 December 2023, the previously applied Islamic jurisprudence (Sharia) has been replaced and the Saudi legal system has been fundamentally modernized as a result.
Image source: Pixabay
Among other things, the codified body of law regulates some key features that a binding contract between several parties must have. In addition, the law, which consists of 720 articles, contains comprehensive regulations regarding contract and property law.
For example, it is now possible to contractually stipulate lump-sum compensation in advance in order to assert claims for damages in the event of non-compliance with contractual obligations. This follows the model of other civil codes from countries in the Middle East.
Further information can be found in the GTAI article in German language published on 20 July 2023.
Source: GTAI (German)