SCA 230/2019
This case involved an investment agreement where an agreed profit share was not paid out. Although the company had now been sold to a new company the profits had been made before the sale and the defendant was still liable to pay the profit share.
Background
A claimant filed a case against a defendant before the court. He requested the court to order the defendant to pay an amount of money. He said that he had agreed with the defendant to invest in goods for trading and that that the defendant had failed to pay him his share in the profits.
The defendant said that he had transferred the ownership of the company to a new owner.
Decision
The court said that the case documents revealed that the defendant had admitted that he made profits of 40650 Riyals. The court said that the defendant had also admitted that he had gained these profits before the transfer of the ownership of the company to the new owner.
The court ruled that the defendant should pay the claimant 40650 Riyals.
The court of appeal has upheld the ruling based on the same grounds.