SCA 34346580/2013
Type
Case
Court
Saudi Arabian Court of Appeal
Jurisdiction
Saudi Arabia
Taxonomy
Lending & Security
Copyright
LexisNexis
Decision date
8 Sept 2013
Catchwords
Loan – Guarantee – Conditions
This case involved a request the court to order a debtor to pay money he had borrowed. The debtor refused saying that he agreed to repay the debt on the grounds that the creditor dropped charges against him so he could be released from prison. The court ruled that guarantees should not be limited to time and/or condition and therefore dismissed the case.
Background
A man filed a case before Riyadh General Court (Case Number: 3434238 Folder Number: 34280018 on 04/06/2013) claiming that he had given another man 550,000 Riyals which the debtor had promised to pay back and he had promised to transfer the ownership of a number of residential units to the man as a guarantee for the debt until he paid back the full amount. The man claimed that the debtor failed to return the money.