A company filed a case against a defendant before the court. The company requested the court to order the defendant to pay an amount of money. The company said that they had signed a contract with the defendant in order to operate the schools owned by the latter. The company said that the defendant, however, failed to commit to their obligations

The court said that Decision No. 2826 regarding the cases considered by the commercial courts stipulated that the company could not be considered a merchant unless their activity was a commercial one.

The court said that the consideration of the case did not fall under the jurisdiction of the commercial courts according to Article 35 of Saudi Arabia Cabinet Decision No. 11/1435 because the two parties could not be considered as merchants because their activity was an educational one.

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