Case Background
In Case No. 2023/175, a foreign corporation sued a Saudi-based company over breach of contract. The plaintiff argued that the defendant failed to deliver contracted goods, while the defense cited force majeure due to supply chain disruptions.[1]
Court’s Ruling
The Commercial Court rejected the force majeure defense, ruling that:
- The defendant had failed to prove an unavoidable disruption.
- Contractual obligations must be honored unless explicitly stated otherwise.
This decision strengthens contractual enforceability and increases investor confidence in Saudi commercial law.[2]
Footnotes:
[1] XYZ Corp. v. ABC Trading, Riyadh Commercial Court, 2023.
[2] Saudi Ministry of Justice, Recent Commercial Rulings (2023).
