Introduction Continuing the process of codification of laws and regulations with a view to have clarity vis-à-vis application and interpretation of different situations, conditions and circumstances by all parties including the judiciary, Saudi Arabia has promulgated Civil Transactions Law, the “Law” which will become effective on 21 December, 2023[1]. The Law will be applicable even to incidents, contracts and arrangements that were entered before the Law would become effective, with a few exceptions[2] . Compensation for Damages The Law reiterates the principle of making good the damages sustained by any party and extends this principle to situations where the parties have not agreed in advance in such regard or do not have any contract as well as incidents and acts of