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16 April 2021

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Law No. 16 of 1971 issuing the Law of Civil and Commercial Articles

Law Summary Record Type: LawNumber: 16Date: 25/08/1971 Corresponding to 04/07/1391 HijriNumber of Articles: 477Status: In force

Official Gazette :Issue: 7Offcial Journal Issue Publication Date: 01/01/1971 Corresponding to 05/11/1390 HijriPage from: 3458

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Article 182 (Cancelled) (Repealed By 22 /2004)Text Before Cancelling
Starting Date : 01/01/1971 Expiry Date : 30/06/2004

Clearing can be mandatory (by force of the law) or optional (amicably by both parties; creditors and debtors).

Mandatory clearing is applied when the two debts are unified (i.e. of the same sort, description, place, strength and weakness) which is not conditional in the optional clearing. While, in case the two debts are different and vary (in description or deferred or one of them is due and the other is delayed or one is strong and the other is weak), they can not be compromised by clearing unless both parties accept such compromise (whether they have united or different reason).

6/30/2004

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