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24 September 2023

09 Rabee' Al-Awwal 1445

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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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Subchapter III: Dissolution of the Contract

60 Article (Repealed)

In contracts binding on both parties (synallagmatic contracts), where one of the parties fails to perform his obligation, the other party may, upon formal notice to the former, demand the rescission with the indemnity.

The judge may determine a period of grace within which the obligor shall perform his obligation. The judge may also reject the application for rescission if the obligation not performed is insignificant compared with the obligations considered in their entirety.

6/30/2004

61 Article (Repealed)

The parties may agree that, in the case of a failure to perform the obligations arising from the contract, such contract shall be deemed to have been rescinded ipso facto without a court order. Such an agreement may not limit excuses, unless the parties agreed that was not necessary.

6/30/2004

62 Article (Repealed)

In contracts binding on both parties, where performance of an obligation is extinguished by reason of impossibility of its performance, such obligation and correlative obligations shall also be extinguished and the contract deemed rescinded ipso facto.

6/30/2004

63 Article (Repealed)

When a contract is rescinded, the contracting parties shall be reinstated to the position they were in prior to the date of the conclusion of the contract, if reinstatement is impossible, the court may grant indemnity.

6/30/2004

64 Article (Repealed)

The contracting parties may mutually agree to terminate the contract upon its conclusion.
6/30/2004

65 Article (Repealed)

The contracted thing shall be existed at the time of termination.

In the selling, the sold shall be existed, and if some of the sale has been damaged, the termination shall be in the remaining part to the value of its share from the price. But losing of the price shall not inhibit the termination.

6/30/2004

66 Article (Repealed)

Rescission shall be deemed termination of the contract between the contracting parties and a new contract in favor of third parties.
6/30/2004