Explanation of Article 403
The article defines the contract of competition; it is a contract in which a person commits to offering a reward to whoever wins a race, where winning the race depends on the competitor's effort, not on luck. From this definition, the following can be deduced: First: The parties to the contract in a competition contract are: 1 - The one committed to the reward; there may be one or more. 2 - The competitor; there may be one, such as when the one committed to the reward sets a goal for him, and if he achieves it, he deserves the reward, or there may be multiple competitors, which is more common. In all cases, the parties to the contract must be specified in the competition contract, as in all contracts; if the race is directed to unspecified persons, it is a promise of a prize whose provisions are outlined in the first section; it is a unilateral act, not a competition contract. Second: The subject matter of the contract in the competition from both sides is as follows: 1 - The subject matter of the contract from the side of the one offering the reward is the commitment to offer the reward, and it must be possible, negotiable, and specified either by itself or by type and amount or capable of being specified. 2 - The subject matter of the contract from the side of the competitor is the race, and it must meet three conditions: The first condition: It must be possible in itself; it is not valid for a race that is usually impossible. The second condition: It must not be contrary to public order; it is not valid for the race to be in an unlawful matter, such as betting and gambling; the release of the race in the article indicates the permissibility of offering the reward in any permissible race, such as types of sports, shooting, running, horse and camel racing, and scientific and intellectual competitions. The article requires that the race's victory depends on the competitor's effort; thus, gambling is excluded; it is the amusement intended to obtain money based on luck, necessarily leading to one party's loss and the other's gain, including betting; it is a contest between two or more on predicting something that may or may not happen, and whoever's prediction is correct wins the bet. The third condition: The race must be specified or capable of being specified; the scope of the race, its system, how to win it, and other details must be determined. Third: The definition reveals the characteristics of the competition contract, which are: 1- It is a contract of exchange. 2- It is a contract binding on both sides. 3- It is a consensual contract; no specific form or condition is required for its conclusion. 4- It is a contract of ownership.
Related To
Article 403
Competition is a contract under which a person undertakes to award the winner a prize and where winning depends on the competitor’s effort.