SCA 364/2019
This case involved a company's liability for money paid to invest in it. An employee had signed the contract and left the country with the money.
Background
A claimant filed a case against a company before the court. He requested the court to order the company to pay 66000 Riyals. He said that he had paid the company this amount to invest but they failed to commit to their obligations. He requested the court to order the company to pay him the capital and the profits.
The company said that they were an irrelevant party in the case because the claimant ha dealt with one of their employees. The company said that the employee had left the country with the money.
Decision
The court said that the case documents revealed that the contract was stamped with the company's stamp. The court said that the company should be responsible for the actions which were taken by their employees.
The court ruled that the company should pay the claimant the amount.
The court of appeal upheld the ruling based on the same grounds.