Breach of Contract
Synonyms: Contract Violation، Lease Default، Contract Breach
Last updated: 2026-10-05
Short Definition
Failure of either party to comply with contract terms, like non-payment or property misuse, giving the affected party right to claim compensation or termination.
Overview
Legal Basis
Breach of contract is regulated by the Civil Transactions Law issued by Royal Decree No. (M/191) of 1444 AH in articles related to breach effect on the contract. The Enforcement Law also applies to lessee breach (payment delay). Depending on the nature of a material breach, the injured party may sue at the General Court via Najiz or, where the unified lease is documented on Ejar, file an execution request at the Execution Court; under the unified residential lease, termination can be sought in court if the other party does not remedy the breach within 30 days of it, upon notice sent through Ejar.
Practical Example
An owner of a commercial office in Riyadh discovered that the tenant (a company) sublet part of the office to another company without his consent — a clear breach of the 'no subletting' clause. The owner documented the breach with photos and emails between the companies. He sent an official notice via Ejar requesting subletting termination within 14 days or it would be considered material breach. The company didn't respond. The owner filed a termination and eviction claim at the competent court via Najiz. The court ruled: contract termination, property eviction, owner compensation of two months rent (SAR 16,000) as damages, and full deposit retention (SAR 5,000).
Common Mistakes
- ✗Waiting long before acting on breach — each day adds to your loss; quick action limits damage.
- ✗Not documenting the breach with evidence (photos, emails, witnesses) — difficult to prove later before judiciary.
- ✗Attempting personal retaliation (cutting electricity, threats) — turns the situation from victim to perpetrator.
- ✗Sending verbal notice instead of formal via Ejar — not legally recognized.
- ✗Assuming any breach automatically leads to contract termination — termination needs material breach and judicial decision, except in rare cases.
International Differences
In the UAE, breach is examined via the Dispute Resolution Center. In Turkey, breach is subject to the Code of Obligations and referred to courts. In the UK, 'Breach of Contract' is a fundamental concept in commercial law. The Saudi advantage: unified leases documented on Ejar can be enforced as executive instruments at the Execution Court without a lawsuit.
