SCA 172/2019

This case involved the breach of an investment contract. The contract had been signed with the company and not the defendant who was a manager of the company. A key issue was whether the manager should still pay..

Background

A claimant filed a case against a defendant before the court. He said that he had paid the defendant 5810000 Riyals in order to invest in exchange for 60% of the profits. He said that the defendant had failed to commit to his obligations. He requested the court to order the defendant to pay him the capital and the profits.

Decision

The court said that the case documents revealed that the defendant was an irrelevant party in the case. The court said that the claimant had signed the contract with a company managed by the defendant and not with the defendant himself.

The court dismissed the case.

The court of appeal then repealed the ruling and ruled that the defendant should pay the claimant the mentioned amount.