Questions on proving commercial claims

1. 01Are electronic chats evidence in commercial disputes?

   Yes. Digital correspondence, including email and messaging, is a form of digital evidence, and proof by digital evidence is treated as proof in writing. As a rule it carries the weight of an ordinary (unofficial) written document. It binds the parties to the dealing, unless the contrary is proved, where it came through a digital channel named in the contract in dispute or through an authenticated or publicly available digital channel; a party who then disputes its validity must prove that claim. What matters most is showing who sent the messages and that they have not been altered.

   SourceEvidence Law, Arts. 54, 55, 57, 58 and 59 (Ministry of Justice legal portal)

   Read moreWhatsApp and email as evidence: how to preserve digital proof

   Ask about your own case

2. 02Does a bank transfer on its own prove that the money was a loan that must be repaid?

   Not necessarily. A transfer proves that money moved from one account to another, but not, by itself, that it was a loan; it may have been payment of a debt, the price of a sale or something else. Where the reason for the transfer is disputed, the court looks at the relationship between the parties and the rest of the evidence, such as messages, account statements and what the recipient admits. The basic rule is that the claimant must prove the right he claims.

   SourceEvidence Law, Arts. 2 and 63 (Ministry of Justice legal portal)

   Read moreCommercial financial claims: which documents make the file stronger?

   Ask about your own case

3. 03Is a balance confirmation between two companies evidence of a debt?

   Yes, if it was issued by someone with authority to represent the company and clearly acknowledges the debt. It is an ordinary written document, treated as issued by its signatory and binding on him unless he expressly denies the signature or seal attributed to him. An acknowledgement can be made in writing, and one made outside court is an extra-judicial admission. Its weight is governed by the rules of evidence, depending on its content, the circumstances in which it was issued and any dispute raised about it.

   SourceEvidence Law, Arts. 14, 16 and 29 (Ministry of Justice legal portal)

   Read moreCommercial financial claims: which documents make the file stronger?

   Ask about your own case

4. 04Can several different commercial claims be combined in one statement of claim?

   Yes, if they are connected. The Commercial Courts Law prohibits combining unrelated claims in one statement of claim, and where there are several claims the statement must explain how they are connected. If it contains unrelated claims, the court rules the case inadmissible unless the claimant limits it to one of them.

   SourceCommercial Courts Law, Art. 20 (Ministry of Justice legal portal)Commercial Courts Law Implementing Regulation, Art. 77 (Ministry of Justice legal portal)

   Read moreA commercial claim: what to prepare before registration, and when it is too late to plead

   Ask about your own case

5. 05If the court refuses an application for a payment order, does the creditor lose the right to claim?

   No. A refusal of a payment order is final, but it does not affect the creditor's right to bring an ordinary claim under the usual rules, provided its conditions are met. The court records the refusal in the minutes with a brief note of its reasons, which are worth reading before you file the claim.

   SourceCommercial Courts Law, Art. 70 (Ministry of Justice legal portal)Commercial Courts Law Implementing Regulation, Art. 192 (Ministry of Justice legal portal)

   Read moreCollecting a debt with no enforcement instrument: from demand letter to payment order to claim

   Ask about your own case

6. 06How many days does the commercial court take to decide a payment order application?

   Ten days from the date the application is registered. The court decides it without hearing the parties. A deadline does not mean the order will be granted: the right must be proved in writing, the debt must be due and of a fixed amount, and the creditor must have given the debtor written notice demanding payment at least five days before applying.

   SourceCommercial Courts Law, Arts. 67, 68 and 70 (Ministry of Justice legal portal)Commercial Courts Law Implementing Regulation, Art. 191 (Ministry of Justice legal portal)

   Read moreCollecting a debt with no enforcement instrument: from demand letter to payment order to claim

   Ask about your own case

7. 07Does the Evidence Law apply to commercial cases?

   Yes. Article 1 of the Evidence Law applies it to civil and commercial transactions. The Evidence Law also repealed Part Seven of the Commercial Courts Law, which dealt with evidence, so those provisions can no longer be relied on as if they were in force. Where the Evidence Law is silent on a procedural point of proof, the Law of Procedure before Sharia Courts or the Commercial Courts Law applies, as the case may be.

   SourceEvidence Law, Arts. 1, 125 and 128 (Ministry of Justice legal portal)

   Read moreA commercial claim: what to prepare before registration, and when it is too late to plead

8. 08Must chats and digital messages be produced in their original form?

   Not necessarily. Digital evidence is produced in its original form or by any other digital means, and the court may ask for its content in writing where its nature allows. Extracts, such as printouts, carry the same weight as the evidence itself to the extent that they match its digital record. Keep the original all the same: a party who, without an acceptable excuse, fails to provide what the court asks for to verify digital evidence loses the right to rely on it, or it may be held against him, as the case may be.

   SourceEvidence Law, Arts. 60, 61 and 63 (Ministry of Justice legal portal)

   Read moreWhatsApp and email as evidence: how to preserve digital proof

   Ask about your own case

9. 09Can the opposing company be ordered to produce documents it holds?

   Yes, within limits. In commercial cases a party may ask for its opponent to produce, or allow inspection of, a document relevant to the case. The court orders this if the document is identified specifically or by type, relates to the commercial dealing in dispute or helps reveal the truth about it, is not confidential under a specific provision or agreement, and its inspection would not breach any trade-secret right. If the opponent fails to produce what the court has ordered, the court may treat the refusal as a presumption.

   SourceEvidence Law, Art. 36 (Ministry of Justice legal portal)

   Read moreCommercial financial claims: which documents make the file stronger?

   Ask about your own case

10. 10Can the other side's commercial books be used to prove a debt?

    Yes. A merchant's mandatory books, whether properly kept or not, are evidence against him on any point his opponent, merchant or not, relies on; but the entries in his favour then count for him as well. If a merchant relies on his merchant opponent's books, accepting their contents in advance, and the opponent refuses without justification to produce them or allow them to be inspected, the court may put the supplementary oath to the party relying on the books to confirm his claim.

    SourceEvidence Law, Art. 31 (Ministry of Justice legal portal)

    Read moreCommercial financial claims: which documents make the file stronger?

    Ask about your own case

11. 11Is written proof required for a commercial contract worth more than SAR 100,000?

    As a rule, yes. Any transaction worth more than SAR 100,000 (or the equivalent), or of undetermined value, must be proved in writing, and witness testimony is not accepted to prove that it exists or has been discharged unless an agreement or a legal provision says otherwise. The value is assessed at the time of the transaction, without adding accessory amounts to the principal. Digital evidence, such as electronic correspondence, counts as writing. A judicial admission, a decisive oath, or a beginning of proof in writing supported by another means of proof can also take the place of writing.

    SourceEvidence Law, Arts. 51, 55 and 66 (Ministry of Justice legal portal)

    Read moreCollecting a debt with no enforcement instrument: from demand letter to payment order to claimWhatsApp and email as evidence: how to preserve digital proof

    Ask about your own case

12. 12Can the unpaid balance of a large debt be proved by witnesses if it is below SAR 100,000?

    As a rule, no. Witness testimony is not allowed, even for SAR 100,000 or less, where what is claimed is the balance or part of a right that can only be proved in writing. In proving part-payment, what counts is the value of the original obligation, not the remaining balance. Where a claim combines several demands arising from different sources, however, each demand of SAR 100,000 or less may be proved by witnesses even if together they exceed that amount. The statutory exceptions, such as a beginning of proof in writing, still apply.

    SourceEvidence Law, Arts. 66, 67 and 68 (Ministry of Justice legal portal)

    Read moreCollecting a debt with no enforcement instrument: from demand letter to payment order to claim

    Ask about your own case

13. 13Can a commercial transaction that must be proved in writing be proved by witnesses if the creditor has lost his document?

    Yes, if he proves that he lost his written evidence for a reason beyond his control. Witness testimony is also allowed where writing would otherwise be required if there is a beginning of proof in writing, meaning any writing from the opponent that makes the alleged transaction likely, or if a material or moral obstacle prevented obtaining written proof, such as marriage, or kinship or relation by marriage up to the fourth degree.

    SourceEvidence Law, Arts. 51 and 68 (Ministry of Justice legal portal)

    Read moreCollecting a debt with no enforcement instrument: from demand letter to payment order to claim

    Ask about your own case

14. 14Can commercial custom be relied on to prove an obligation between two companies?

    Yes. Custom, or an established practice between the parties, may be used as proof in matters not governed by a specific provision or by agreement between the parties, provided it does not conflict with public order. Whoever relies on a custom or practice must prove that it existed at the time of the events, and the other party may dispute that it existed or counter it with stronger evidence. Where they conflict, practice between the parties and special custom prevail over general custom. The court may appoint an expert to establish the custom or practice where needed.

    SourceEvidence Law, Arts. 88, 89, 90 and 91 (Ministry of Justice legal portal)

    Read moreA commercial claim: what to prepare before registration, and when it is too late to plead

    Ask about your own case

These answers are brief general information. They are no substitute for a review of the facts and documents of a particular matter.