SCA 3437543/2012

A landlord claimed a company renting his property had violated the renting agreement by separating the building to train male and female students. Points considered were whether the business activity was the same, whether the activity was legitimate and that there was no gender stipulation in the agreement. The tenant was in line with the contract on these points.

Background

A landlord rented a building consisting of two floors, an annex, and car parks to a company for ten years at an annual rent of 350,000 Riyals. However, the company violated the conditions of the rental agreement which stipulated that the building was to be used to train male trainees but the company divided the building into two sections and allocated one to male trainees and the other to female trainees without seeking permission from the landlord first. Therefore, the landlord filed a case against the company before Dammam General Court (Case Number 4958 Folder Number: 33469025 on 04/10/2013) requesting the company vacate the building or double the rent paid.