COMPARATIVE ANALYSIS OF CONTRACT TERMINATION UNDER ISLAMIC LAW AND SAUDI ARABIA LAW: TOWARDS OPERATIONAL EFFICIENCY

Contract termination is a critical aspect of contract law, governing the conditions and consequences under which parties may lawfully exit contractual obligations. This study presents a comparative analysis of contract termination under Islamic law and Saudi Arabian law, with particular emphasis on their theoretical foundations, legal principles, and practical applications. The problem addressed is the lack of clarity and harmonization between traditional Islamic jurisprudence and the codified legal framework of Saudi Arabia, which often blends Shariah principles with modern statutory regulations. The objective of this research is to examine the points of convergence and divergence between classical Islamic legal doctrines and the Saudi legal system concerning contract termination, including conditions, types, and remedies. A qualitative content analysis method was employed, reviewing classical fiqh texts, judicial decisions, and statutory provisions from Saudi Arabia’s legal system. The findings show that while Islamic law emphasizes mutual consent, impossibility (ʿudhr), and breach (khilāf al-sharṭ) as grounds for termination, Saudi law incorporates these along with codified procedures under its Civil Transactions Law. The novelty of this study lies in its dual-lens approach that systematically bridges Shariah jurisprudence and codified statutory systems to enhance commercial predictability and legal coherence in modern Islamic governance. Its uniqueness is further demonstrated through the contextualization of legal practice in a modern Islamic state with a codified legal system influenced by Shariah. The study concludes that while Saudi law aligns with Islamic principles in many respects, practical implementation sometimes diverges due to legal modernization. Recommendations include developing unified guidelines that reconcile classical jurisprudence with statutory norms to enhance legal certainty and consistency in contract enforcement and termination.