Exploitation and Its Impact on Contracts in the Saudi Civil Transactions System

Abstract

This study examines the legal concept of the defect of exploitation delineating its constituent elements, distinguishing it from analogous legal constructs, and evaluating its contractual consequences and judicial implications under the Saudi Civil Transactions System. Employing a descriptive and comparative analytical methodology, the study offers a comparative analysis of provisions of the Saudi Civil Transactions System with the Kuwaiti and Egyptian Civil Codes to identify strengths and areas for improvement. The study comprises an introduction, three sections, and a conclusion. The first section explores the conceptual foundations of exploitation flaw. The second distinguishes it from similar legal concepts, highlighting evidentiary considerations. The third evaluates the legal sanctions imposed under the Saudi system when exploitation defect is proven. Findings showed that the Saudi Civil Transactions System does not specify the threshold of detriment required to establish the material element of exploitation. The system lacks provisions allowing the non-exploiting party to avert contract nullification by remedying the detriment caused by exploitation. It was concluded that the statute of limitations for claims based on exploitation under Saudi law is notably shorter compared to the Kuwaiti and Egyptian civil codes.