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31 May 2023

12 Thul-Qi'dah 1444

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Law No. 16 of 1971 issuing the Law of Civil and Commercial Articles

Law Summary Record Type: LawNumber: 16Date: 25/08/1971 Corresponding to 04/07/1391 HijriNumber of Articles: 477Status: In force

Official Gazette :Issue: 7Offcial Journal Issue Publication Date: 01/01/1971 Corresponding to 05/11/1390 HijriPage from: 3458

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Subchapter I: Parties to the Settlement

157 Article (Repealed)

Payment may be made by the debtor or its representative or by any other person having an interest in such payment such as the sponsor and consolidating debtor only if it was necessary to the debtor to pay the debt by himself, Payment may also be made by any person having no interest therein, even without the knowledge of the debtor or against its will, provided that the creditor may reject such payment by third parties if the debtor objects thereto and the creditor is notified of such objection.

6/30/2004

158 Article (Repealed)

Payment shall not be valid unless the payer is the owner of the thing paid for. However, if the debt become payable and paid for the owner or was damaged and he took instead, the creditor shall recourse by the debt against the debtor.

6/30/2004

159 Article (Repealed)

Where the debtor is a discriminating minor or lunatic adult or under interdiction due to foolishness or carelessness, and repaid his debt, such repayment shall be deemed valid unless damage is incurred on the payer.

6/30/2004

160 Article (Repealed)

The debtor shall not pay the debt of his creditors on his deathbed, if such payment causes damage to other creditors.
6/30/2004

161 Article (Repealed)

Where a person other than the debtor makes payment, the payer shall substitute the creditor by virtue of the law in any of the following cases:

a. Where the payer is obliged to pay the debt with or on behalf of the debtor.

b. Where the payer is a creditor and pays another creditor having preference to such creditor due to any security in kind, even if the payer holds no security.

c. Where the payer holds a thing and pays the debt to a creditor who had held such thing to secure its right.

d. Where a special provision grants the right of subrogation to the payer.

6/30/2004

162 Article (Repealed)

A creditor repaid its right by a person other than the debtor may agree with such third party to substitute the creditor, without the consent of the debtor. And the agreement shall be written on a formal paper that shall not be applicable where the agreement is made after the date of payment. Where the debtor borrows money to settle the debt, it may also substitute the relevant creditor by the lender, without the consent of such creditor, Subrogation agreement shall be written on a formal paper, provided that the loan agreement shall state that such money is designated to pay such debt and that, upon settlement, such money borrowed from the new creditor is applied to pay such debt.

6/30/2004

163 Article (Repealed)

164 Article (Repealed)

The creditor shall be held harmless if a non-debtor pays to the creditor part of his dues. Unless otherwise agreed, the right of the creditor in payment shall have priority over the identity of the payee.In case other person replaces the creditor with respect to his remaining dues, both the replacer together with the previous one shall recover and distribute entitlements as being debtors.

6/30/2004

165 Article (Repealed)

Where the creditor is not under interdiction, the debt may be paid to the creditor or his representative . Where the creditor is under interdiction, payment of debt shall not be made to such creditor, however he may be paid against right the guardian or trustee collects the debt thereof.

In case the debtor pays the debt to the creditor who is under interdiction, payment shall not be considered as effected and he shall not also be considered as discharged and he shall still be committed to the debt. Moreover, in case money paid by him is by any means lost or gone from the said creditor, who is under interdiction, the natural guardian, legal gaurdian or the trustee may recourse against the debetor for paying the debt.

6/30/2004

166 Article (Repealed)

In case payment is effected to a person other than the creditor or his representative, the debtor shall not be discharged unless creditor acknowledged such payment or such payment is made under good faith to a person who explicitly owns the debt as an apparent heir.

6/30/2004

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