Judgment details
- Court
- General Court, Jeddah
- Outcome
- Upheld on appeal
- Year
- 1435H
- Area
- Contracts & Transactions
- Official collection
- Collection of Judicial Rulings 1435H, Ministry of Justice (Research Center)
- Location
- Vol. 4 · p. 6
Summary
A contractor agreed to build a warehouse, received part of the price and stopped work. In absentia, the court rescinded the contract, ordered the excess payment returned and set the penalty at one tenth of the contract value; the Court of Appeal upheld it after its remarks were answered.
Principle
A penalty clause is permissible in obligations other than debts, the judge may adjust its amount, and harm must be removed.
Text of the judgment as officially published
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These summaries are general information to help you understand how courts approach issues. The judgments predate later laws such as the Civil Transactions, Evidence and Personal Status laws; every case turns on its facts and a past judgment is no substitute for a lawyer's advice.
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