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Disputes · Legal glossary

SettlementIn Arabic: الصلح

Definition

A contract by which the parties end an existing dispute or avoid a potential one, each giving up part of their claim. In Arabic legal usage it is called sulh (الصلح). Some GCC states offer settlement through specialised centres or committees before or during litigation.

How it varies across the GCC

Saudi Civil Transactions Law article 391, Bahrain Civil Code article 496 and Oman Civil Transactions Law article 504 each define settlement in those terms. A release signed when employment ends is a different instrument.

The rules that apply to a specific matter depend on the state, any free zone involved and the current text of the law, so check the official source before relying on them.

Sources

Official texts for the points on this page. General information, not legal advice. An article number is cited only where it was verified.

  1. Saudi Civil Transactions Law, art. 391https://laws.boe.gov.sa/BoeLaws/Laws/LawDetails/655fdb42-8c96-422b-b8c4-b04f0095c94c/1
  2. Bahrain Civil Code, Decree-Law No. 19 of 2001, art. 496https://www.lloc.gov.bh/Legislation/HTM/L1901
  3. Oman Civil Transactions Law, Royal Decree 29/2013 (text on qanoon.om), art. 504https://qanoon.om/p/2013/rd2013029/

Related template

Settlement agreement template

The template records the sum, a payment schedule and a release for a commercial or civil dispute. It does not certify the settlement. In Saudi Arabia certification is a separate request through Taradhi.

Open the settlement agreement template

An end-of-service release for a worker, or a balance between two companies, is the final-settlement form. It is not this settlement of a described commercial dispute.

Open the final settlement and release

Related terms

  • Mutual rescission (iqala)الإقالة
  • Release and dischargeالمخالصة
  • Arbitrationالتحكيم
All glossary terms

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General information, not legal advice.

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