When a contract is breached in Saudi Arabia, the non-defaulting party has five legal remedies under the Saudi Civil Transactions Law (2023): specific performance, monetary compensation, contract termination, enforcement of liquidated damages clauses, and court injunctions. Three elements must be proven to succeed in any claim, fault, harm, and a causal link between the two. For commercial disputes, the statute of limitations is five Hijri years under the Commercial Court Law 2020. For general contract claims, Article 295 of the Civil Transactions Law sets a three-year window from the date of awareness, with a ten-year absolute bar.
