SCA 1358/2019
This dispute involved unreturned rental equipment. Under a reconciliation agreement it was agreed the rent would be paid in instalments. A key point was whether the supply of commercial papers as a guarantee was relevant.
Background
A company filed a case against a company before the court. It requested the court to order the other company to pay 816950 Riyals. It said that the other company had rented equipment for digging and failed to pay the rent. The company provided the court with a reconciliation agreement in which the other company agreed to pay the rent in instalments.
Decision
The court ruled that the other company should pay the company the mentioned amount.
The other company appealed the ruling before the court of appeal. The other company said that it gave the company three commercial papers valued at 400000 Riyals as guarantee. It said that it had requested the papers from the company after signing the agreement but the company reserved these papers.
The court of appeal said that the defence made by the other company was irrelevant to the case.
The court dismissed the appeal and upheld the appealed ruling.