Consumer Protection in Commercial Agency Contracts Under Saudi Law

Proceedings of the 9th International Academic Conference on Humanities and Social Sciences

Year: 2024

DOI:

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Consumer Protection in Commercial Agency Contracts Under Saudi Law

Dr. Shaya Abdullah Alshahrani

 

 

ABSTRACT: 

This study examines consumer protection provisions in commercial agency contracts to determine whether the applicable laws and regulations can entice consumers to the Saudi market, potentially propelling it to the top of the region’s markets. This study aims to extract the rights and obligations that result from a commercial agent concluding a contract with a consumer under Saudi legislation in order to identify legal gaps and offer workable solutions to fill them in a way that protects the interests of the contracting parties and helps to expand the economic base. The doctrinal approach was chosen to achieve this research purpose.   Several findings emerged from this study, the most notable of which are: The two main legal responsibilities of commercial agents to consumers are as follows: first, concluding a contract with the consumer in a good faith by providing the consumer with the information needed to make an informed decision, as well as conclude and implement the contract with honesty and integrity.  Moreover, the consumer must be provided with the necessary guarantees, which can be summarised as follows: a guarantee of defects, a guarantee of safety, and a guarantee of maintenance and replacement parts. Furthermore, the three primary consumer rights concerning the agent are the right of withdrawal, the right to a refund, and the right of remedies.   The study concludes with certain significant recommendations, one of which is that commercial agency contract provisions be consolidated into a single document containing adequate provisions to cover commercial agency contract aspects that, therefore, contracting parties can easily refer to them and be aware of their rights and obligations. It also emphasises the significance of defining and unifying consumer rights and the obligations of the commercial agents through regulatory intervention, regardless of the nature of the commercial agent contract.

Keywords: Commercial Agency, Consumer Rights, Commercial Contracts, Saudi Law