The Theory of Emergency Circumstances and its Applications in the Saudi Civil Transactions Law (An Analytical Comparative Study)

Abstract

The theory of emergency circumstances emerged as an exception to the principle of the binding force of contracts, aiming to protect the debtors when the fulfillment of their obligations becomes excessively onerous, causing heavy loss due to an unforeseeable and extraordinary event that was not anticipated at the time of contracting. Undoubtedly, justice requires the amendment of the contract in a manner that alleviates the heavy loss that may be inflicted upon the debtor if they were to perform their obligations as originally stipulated. Accordingly, the Saudi Civil Transactions Law grants the judge the authority to amend the contract under specific legal conditions and mechanisms, with the goal of achieving justice between the contracting parties and restoring balance in the contractual obligations. This study seeks to shed light on the importance of judicial intervention in such cases, particularly in reducing excessively onerous obligations to a reasonable level. The research adopts a comparative analytical methodology. Among the key findings is that the impact of the theory of emergency circumstances is limited to amending the contract under certain constraints, excluding the option of terminating the contract. One of the principal recommendations of this study is the need to expand the judge’s discretion under the Saudi Civil Transactions Law to include the suspension of contract execution until the emergency circumstance ceases in order to achieve justice between the parties.