SBG 840/2015
This case involved a seller who had confiscated a guarantee after a purchaser did not buy the full agreed amount of goods. The contract had not detailed the type of goods or a penalty clause, and there was no proof of violation of the agreement.
Background
A person claimed that he had bought a number of used pipes from the storages of the defendant and paid the full price. However, the delivered amount was less than the agreed amount so he filed the claim requesting the seller refund the extra amount.
The seller said that there was an amount of 300,000 riyals which was an insurance payment and that it has been agreed between the two sides to buy the entire amount available in the stores however the buyer did not honour this agreement and left some of the materials in the stores which resulted in losses for the seller. The seller therefore requested that the case was rejected.
Decision
The court said the basis of this dispute was commercial transactions and therefore it was under the jurisdiction of the Board of Grievances pursuant to the provisions of Article 443 of Saudi Arabia Royal Decree No. M32/1350.