The Application of the Good Faith Principle in the 2018 Commercial Lien Law: Toward a Better Performance

Abstract

Abstract The Saudi legislator requires the creditor to meet the requirements of the Good Faith Principle in commercial lien contracts to obtain legal protection against the debtor. Since this principle was originally a moral obligation, there are questions about applying it in the legal context. To identify potential obstacles and address them, this paper critically evaluates current applications of the Good Faith Principle in the context of the 2018 Commercial Lien Law (2018 CLL ). The assessment is made by considering the impact of such a principle on the interests of both contracting parties. Thus, this paper proposes practical solutions to improve the current regulatory framework of good faith within the 2018 CLL to achieve adequate protection for the creditor in a manner that does not harm the debtor’s interests.