Is it permissible, under Sharia law and Saudi regulations, to impose a penalty clause or a late payment fine for delays in settling outstanding debts?
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Radiif AI Legal Assistant
⚡ Quick Answer:
It is not permissible, under Sharia law and Saudi regulations, to impose a penalty clause or a late payment fine for delays in settling outstanding debts, as this is considered an increase in the debt upon delay, which is contrary to Sharia principles and established judicial precedents.
Legal References & Citations
المادة العاشرة في العقد (غرامة التأخير)
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