SCA 1384/2019

This case involved a failure to pay for purchased goods. The customer argued that they could not pay as they had passed the goods onto a third party who had not yet paid them. That was irrelevant as the third had not been party to the contract between these two parties.

Background

A company filed a case against another company before the court. The company requested the court to order the other company to pay 246600 Riyals. The company said that they had supplied the other company with goods but the latter had failed to pay for them.

The other company said that they had supplied the goods to a third party and had not received the amount due.

The court said that the case documents revealed that the company provided the court with the documents that prove theirr claim. The court said that the contract was signed between the two parties and that the third party had nothing to do with the contract.

Decision

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

The Court of Appeal – Jeddah upheld the ruling based on same grounds.