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24 January 2021

10 Jumaadaa al-Aakhirah 1442

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Law no (22) of 2004 Regarding Promulgating the Civil Code

Law Summary Record Type: LawNumber: 22Date: 30/06/2004 Corresponding to 13/05/1425 HijriNumber of Articles: 1188Status: In force

Official Gazette :Issue: 11Offcial Journal Issue Publication Date: 08/08/2004 Corresponding to 22/06/1425 HijriPage from: 364

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Subchapter One: Parties to the Settlement

354 Article

1. Payment may be made by the debtor or its representative or by any other person having an interest in such payment, subject to the provisions of Article 250.

2. Payment may also be made by any person having no interest therein, even without the knowledge of the debtor or against its will, provided that the creditor may reject such payment by third parties if the debtor objects thereto and the creditor is notified of such objection.

355 Article

1. Payment shall not be valid unless the payer is the owner of the thing paid for and has the capacity to dispose thereof.

2. However, payment by an incapacitated person for a thing payable by him shall be valid unless the payer suffers any damage due to such payment.

3. Where the debtor pays some of its creditors on his deathbed and his assets are not sufficient to pay all his debts, such payment shall not be effective against the other creditors, provided that such payment causes damage to such creditors.

356 Article

1. Where a third party pays a debt, such third party may have recourse against the debtor to reimburse the amount paid.

2. However, where a payment is made against the will of the debtor, the debtor may then prevent recourse by the payer in connection with the amount paid, in full or in part, if the debtor proves that it has an interest in objecting to such payment.

357 Article

Where a person other than the debtor makes payment, the payer shall substitute the creditor who collected its right in any of the following cases:

1. Where the payer is obliged to pay the debt with or on behalf of the debtor;

2. Where the payer is a creditor and pays another creditor having preference to such creditor due to any security in kind, even if the payer holds no security;

3. Where the payer holds a thing and pays the debt to a creditor who had held such thing to secure its right;

4. Where a special provision grants the right of subrogation to the payer.

358 Article

1. A creditor repaid its right by a person other than the debtor may agree with such third party to substitute the creditor, without the consent of the debtor. This shall not be applicable where the agreement is made after the date of payment.

2. Where the debtor borrows money to settle the debt, it may also substitute the relevant creditor by the lender, without the consent of such creditor, provided that the loan agreement shall state that such money is designated to pay such debt and that, upon settlement, such money borrowed from the new creditor is applied to pay such debt.

3. Subrogation against a third party shall not be effective unless the date of the agreement with the creditor, the loan agreement and the settlement agreement is fixed.

359 Article

Any party that, by agreement or by law, may substitute the creditor shall have the same rights as the creditor, including its benefits, attachments, securities and remedies. Such subrogation shall be limited to the payment on behalf of the debtor.

360 Article

1. Where a person other than the debtor pays to the creditor part of its right and replaces the creditor to such part, the creditor shall not be adversely affected by such subrogation, and payment of the balance of the right to such creditor shall have priority over the right of the payer, unless agreed otherwise.

2. Where another person substitutes the creditor to the balance of its right, the latter substitute and former substitute shall subrogate the creditor to the extent of the part of the right paid by each of them and shall divide such right on a back-to-back basis.

361 Article

Where the holder of the pledged property pays the debt in full and substitutes all the creditors, such person may not demand the holder of another property pledged on account of the same debt to pay such debt other than to the extent of the share of such other holder pro rata to the value of the property acquired by him.

362 Article

Payment may be made to the creditor or to its representative. Any person that may provide to the debtor a letter of subrogation issued by the creditor shall have the capacity to collect the debt, unless it is agreed to pay the debt to the creditor in person.

363 Article

Where payment may be made other than to the creditor or to its representative, the debtor shall not be discharged from liability unless the creditor accepts such payment or such payment is in the interest of the creditor, and to the extent of such interest, or if payment is made in good faith to a person in possession of such debt.

364 Article

1. Where the creditor rejects without good reason a duly proposed payment, or rejects works performed for such payment, or if the creditor declares that it rejects payment, the debtor may notify the creditor.

2. Upon such notification, the creditor shall bear the consequences of loss of or damage to the relevant asset. In such event, the debtor shall be entitled to deposit such asset at the expense of the creditor and demand indemnity, as applicable.

365 Article

Payment shall be deemed made if the debtor, having made an offer, deposits the corresponding sum or item in accordance with the provisions of the Pleadings Law or any other similar action, provided that the creditor accepts such an offer or a final judgment confirming the validity of such offer is issued.

366 Article

Payment shall also be deemed made if the debtor deposits the debt directly or takes any step in lieu of such deposit, in any of the following cases:

(a) Where the debtor is not aware of the identity and domicile of the creditor;

(b) Where the creditor is incapacitated and has no representative to accept such payment on behalf of such creditor;

(d) Where there are serious grounds that make it difficult to make a real offer of the debt prior to the deposit or alternative procedure.

367 Article

1. Where the debtor offers the debt and then deposits it or takes any similar action, the debtor may withdraw its offer if the creditor rejects it or if no final judgment confirming the validity of such offer is issued. In such event, the co-debtors and the guarantors of the debt shall not be discharged from liability and the securities to such debt shall survive.

2. However, where the debtor withdraws such offer after its acceptance by the creditor or after issuing a final judgment confirming its validity, and provided that the creditor accepts such withdrawal, the creditor may not hold to the securities of its right and the co-debtors and the guarantors of the debt shall be discharged from liability.

368 Article

Where payment is in the form of a specific asset which is required to be delivered, the debtor may, upon notifying the creditor to take delivery thereof, apply to the court for permission to deposit such asset. Where such asset is real property or a thing intended to remain where it is, the debtor may request it be held in custody.

369 Article

Where the asset of payment is liable to depreciate in value or its maintenance in custody may prove costly, the debtor may, with the consent of the court, or, in case of emergency without such consent, sell the asset. The debtor shall thereafter deposit the sale price with the creditor in lieu of the asset itself.

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