SCA 4245/2016

This case involved what was payable in a joint venture to undertake contracting work. A profit share had been agreed but rising materials cost meant the profit did not result.

Background

A company filed a case against a defendant before the court. They requested the court to order the defendant to pay 1636453 Riyals. They said that they finished along with the defendant contracting work for the Ministry of Water and Electricity and that the defendant had failed to commit to his obligations.

The defendant said that the two parties agreed that the company's profit would be 5% but the increase of the price of the raw materials did not result in the mentioned rate. The defendant had failed to prove his claim.

Decision

The court ruled that the defendant should pay the company the mentioned amount.

The defendant appealed the ruling before the court of appeal.

The court dismissed the appeal and upheld the appealed ruling