Commercial Act According to Legislation and «Qiyas»: Critical Study of the Second Article of the Saudi Commercial Court Law

Dr. Abdul Razzak Jajan
Associate professor of Commercial Law
Faculty of Law – University of King Abdul Aziz
Jeddah – KSA


The second article of the Commercial Court Law is the backbone of the Saudi Commercial Law. The article presents both types of basic commercial acts, i,e single and enterprise. It also briefly refers to the accessory commercial acts.
However, since this law had been issued for several decades, the wording of the article, as well as most other articles in the law, becomes vague, ambiguous and inadequate to the extent that it becomes unable to meet the requirements of the Saudi Commercial needs.
Thus, this paper investigates and analyses the shortcoming, weaknesses and ambiguity, which have been mentioned above, of the form and contents of the article. The broad aim of this paper is to find an alternative formulation of the article in order to make it more clear and able to fulfill the expectations of all beneficiaries. The study also aims to address some implicit acts that could be considered by the court as commercial acts, through comparing them with the basic ones. To achieve the objectives of this paper, I have adopted the critical analytical approach. The paper finds that it is necessary to reform the article in order to modernize and improve it to the extent that it fulfils the expectations of all beneficiaries.

Keywords: Saudi commercial law, commercial acts by nature, single acts, commercial enterprise, commercial acts by comparison.

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