Гражданский кодекс ОАЭ, Книга 2 — поименованные договоры (ст. 445–1035)

Article 445

A sale is a contract whereby the seller undertakes to transfer to the purchaser ownership of the subject matter of the sale or any other financial right, in consideration of a monetary price.

Article 446

1. The purchaser shall have sufficient knowledge of the subject matter of the sale; failing which, they shall have the right to seek the annulment of the contract.

2. Knowledge shall be deemed sufficient if the purchaser has seen the subject matter of the sale, or if the contract includes a description thereof and its essential attributes in a manner that allows for its identification in a way that does not lead to a dispute.

3. If the contract of sale that the purchaser has sufficient knowledge of the subject matter of the sale, their right to seek the annulment of the sale on the grounds of lack of knowledge shall lapse, unless they prove that the seller has deceived them.

4. If the purchaser receives the subject matter of the sale and has not objected thereto within a reasonable period according to custom, this shall be deemed acceptance thereof.

Article 447

1. If the sale is by "sample or model", the subject matter of the sale shall conform thereto.

2. If it appears that the subject matter of the sale does not conform to the sample or model, the purchaser shall have the option to accept or reject it.

3. If the sample or model is damaged, destroyed, or lost while in the possession of one of the parties to the sale, the statement of the other party regarding conformity or non-conformity shall prevail, unless the opposing party proves otherwise.

Article 448

1. If the contracting parties disagree as to whether the subject matter of the sale conforms to the sample or model, and both the sample or model and the subject matter of the sale exist, the opinion of the experts shall prevail.

2. If the sample or model, by agreement of the parties, was in the possession of a third party of a third party and was damaged, destroyed, or lost, and the subject matter of the sale was specifically determined by its identity and agreed to be the subject matter of the contract, the seller's statement as to conformity shall prevail, unless the purchaser proves the contrary. If the subject matter of the sale was determined by kind, or was specifically determined by its identity but not agreed to be the subject matter of the contract, the purchaser's statement as to non-conformity shall prevail, unless the seller proves otherwise.

Article 449

1. In a sale subject to trial, the purchaser may accept or reject the subject matter of the sale, and the seller shall enable the purchaser to conduct the trial. If the purchaser rejects the subject matter of the sale, they shall declare the rejection within the agreed period. If no period is agreed upon, the rejection must be declared within a reasonable period to be determined by the seller. If this period expires and the purchaser remains silent despite being able to conduct the trial, their silence shall be deemed acceptance.

2. A sale subject to trial is deemed to be contingent upon a suspensive condition, namely the purchaser's acceptance of the subject matter of the sale, unless it is apparent from the agreement or the circumstances that the sale is subject to a resolutive condition.

3. If the subject matter of the sale perishes in the purchaser's possession after delivery, the purchaser shall be bound to pay the agreed price to the seller. If it perishes before delivery due to a cause not attributable to the purchaser, the loss shall be borne by the seller.

Article 450

In a sale on approval, the rules of sale shall apply as from the date of the sale.

Article 451

If the purchaser loses their legal capacity before they approve the sale, the guardian, tutor, curator, as the case may be, shall choose what is in their best interest, in compliance with the conditions and provisions stipulated by law.

Article 452

If the purchaser dies before choosing the subject matter of the sale, and a creditor whose debt exhausted all the purchaser’s property, the right of trial shall pass to the creditor. Otherwise, this right shall pass to the heirs. If the heirs agree on the approval or rejection of the sale, their agreement shall be binding. If some approve the sale and others reject it, rejection shall prevail.

Article 453

The purchaser may not use the subject matter of the sale during the trial period except to the extent required for the purpose of the trial according to custom. If they exceed such use in a manner not intended for trial, the sale shall become binding.

Article 454

The fruits of the subject matter of the sale during the trial period shall belong to the seller, and the expenses thereof shall be borne thereby, unless the fruits form part of the subject matter of the sale in which case they shall belong to the purchaser if the purchase is completed.

Article 455

The provisions of a sale subject to trial shall apply to a sale subject to tasting, provided that the option of tasting is not inheritable, and the sale becomes final and binding.

Article 456

The price is what the contracting parties have agreed upon in exchange for the subject matter of the sale, whether it exceeds or is less than its value. The value is the objective worth of the thing, assessed without increase or decrease.

Article 457

1. The determination of the price may be limited to stating the criteria according to which it shall be determined at a later stage.

2. If it is agreed that the price shall be the market price, it shall, in case of doubt, be the market price at the place and time at which the subject matter of the sale shall be delivered to the purchaser. If there is no market at the place of delivery, reference shall be made to the market price at the place whose prices are customarily considered applicable.

3. The contracting parties may entrust a third party with the task of determining the price according to certain criteria they agree upon or according to the criteria determined by that third party, and their determination in this case shall be binding on the contracting parties.

Article 458

If the contracting parties do not specify a price for the subject matter of the sale, this shall not result in the nullity of the sale if it is apparent from the circumstances that the contracting parties intended to adopt the price prevailing in trade or the price previously applied in their dealings.

Article 459

If the contracting parties declare a price different from what they actually agreed upon, the real price shall prevail.

Article 460

If the price is determined on the basis of weight, the net weight shall be taken into consideration, unless the two parties agree or custom dictates otherwise. Custom shall determine the tolerable amount of shortage in the goods resulting from transport or other reasons.

Article 461

1. A sale may be conducted by a Murabaha (cost-plus sale), Tawliya (sale at cost), or Wadi'a (sale at a loss).

2. Murabaha is a sale at the original purchase price paid by the seller, with a specified added profit. Tawliya is a sale at the original purchase price without addition or reduction. Wadi'a is a sale at the original purchase price with a specified reduction.

3. In these types of sales, the original purchase price must be known, in order to avoid deception and accusation.

4. If it appears that the seller has unjustifiably overstated the cost of acquiring the subject matter of the sale, the purchaser shall be entitled to deduct the excess.

5. If the cost of acquiring the subject matter of the sale was not known at the time of contracting, or if the seller concealed a matter affecting the subject matter of the sale or its acquisition cost, the purchaser shall have the right to rescind the contract upon becoming aware thereof. This right shall lapse if the subject matter of the sale perishes, is consumed, or is disposed of by the purchaser after delivery.

Article 462

1. If an immovable property owned by a person lacking or of limited legal capacity is sold, and the sale involves gross lesion, the seller may request completion of the price to the value of the like.

2. The assessment of whether the lesion is gross or not shall be made by appraising the immovable property according to its market value at the time of the sale.

Article 463

1. A claim for completion of the price due to gross lesion shall not be admissible after the lapse of three (3) years from the time of attaining legal capacity or from the day of the death of the owner of the sold immovable property.

2. The claim for completion of the price due to gross lesion shall not prejudice a third party acting in good faith who has acquired a real right (jus in rem) over the sold immovable property.

Article 464

1. An increase in the price by the purchaser after the contract shall attach to the original contract if accepted by the seller, and the agreed price together with the increase shall constitute the consideration for the entire subject matter of the sale.

2. A reduction of the agreed price by the seller after the contract shall likewise attach to the original contract if accepted by the purchaser, and the remainder shall thereafter constitute the agreed price.

Article 465

1. The price shall be due for immediate payment, unless the parties agree that it shall be deferred or paid in instalments over a specified term.

2. If the price is deferred or to be paid in instalments, the term shall commence from the date of delivery of the subject matter of the sale, unless the parties agree otherwise.

Article 466

1. The ownership of the subject matter of the sale shall be transferred to the purchaser as soon as the sale is concluded, unless the law or the agreement provides otherwise.

2. Each of the parties to the sale shall proceed to perform their obligations, except for those that are deferred.

3. The seller is obligated to do what is necessary to transfer ownership of the subject matter of the sale to the purchaser and to refrain from any act that would render such transfer of ownership impossible or difficult.

Article 467

If the sale is a lump-sum sale (Juzāf), ownership shall be transferred to the purchaser in the same manner as it is transferred in respect of a specifically designated thing. A sale shall be deemed lump sum even if the determination of the price is dependent on the measurement of the subject matter of the sale.

Article 468

1. If the price is deferred, the seller may stipulate that the transfer of ownership to the purchaser shall be suspended until full payment of the price, even if the subject matter of the sale has been delivered to the purchaser.

2. If the price is payable in installments, the contracting parties may agree that the seller shall retain a portion of the price as compensation in the event of rescission of the sale if all installments are not paid. Nevertheless, the court may, depending on the circumstances, reduce the agreed compensation.

3. If the purchaser has paid part of the price, they may not demand the delivery of the corresponding part of the subject matter of the sale if its division would result in a diminution in its value.

4. If all installments are paid, the transfer of ownership to the purchaser shall be deemed effective retroactively from the date of the sale.

Article 469

1. The seller shall deliver the subject matter of the sale to the purchaser free from any third-party right, unless the law or the agreement provides otherwise.

2. If the nature of the subject matter of the sale requires, by law or custom, the delivery of its documents evidencing ownership, the seller shall deliver them to the purchaser. If the seller refuses to deliver them, or alleges their loss and they later appear, the court shall compel them to deliver them. If they do not appear after a claim of loss, the purchaser shall have the option either to rescind the sale or to uphold it.

3. The seller shall deliver the subject matter of the sale in the condition it was in at the time of the sale.

4. Delivery includes the accessories of the subject matter of the sale, whatever is permanently affixed thereto, whatever has been prepared for its permanent use, and whatever custom considers to be appurtenant to the subject matter of the sale, even if not mentioned in the contract.

Article 470

A contract relating to a building or a tree includes the land on which the building stands and the land into which the tree's roots extend. A contract relating to land includes the buildings and trees thereon, unless a condition or custom provides otherwise in either contract. A contract relating to a house includes the immovable fixtures therein, but not the movable items, unless the purchaser stipulates their inclusion in the contract.

Article 471

The sale of land does not include the crops growing thereon, unless a condition or custom provides otherwise.

Article 472

The sale of a tree, whether independently or as appurtenant to the land, shall include the fruit born thereon if it has not been pollinated, or if it has not been set, in whole or for the most part. If it has been pollinated or has set, in whole or for the most part, it shall not be included in the contract, unless otherwise stipulated by a condition or established by custom as being appurtenant to the tree. Where the fruit has been pollinated or has set only as to one-half thereof, each part shall be governed by the foregoing rule applicable thereto.

Article 473

A contract for crops that are harvested by cutting does not include subsequent growth, unless a condition or custom provides otherwise.

Article 474

If the seller delivers the subject matter of the sale to the purchaser in a proper manner, they shall no longer be liable for any damage or loss occurring to the subject matter of the sale thereafter.

Article 475

If the quantity of the subject matter of the sale is specified in the contract and a shortage or surplus appears therein, and there is no agreement or custom in this regard, the following rules shall be followed:

1. If the subject matter of the sale is not adversely affected by division, any surplus shall belong to the seller, who is entitled to recover it in kind, and any shortage shall be borne by the seller, whether the price is determined per unit of measurement or for the total quantity sold.

2. If the subject matter of the sale is harmed by division, and the price is determined on the basis of the unit of measurement, the surplus is the right of the seller, and they are entitled to its price, and the shortage is at their expense. If the price is named for the whole subject matter of the sale, the surplus is for the purchaser, and the shortage is not compensated for by any part of the price.

3. If the surplus or shortage obliges the purchaser to take more than what they purchased or results in fragmentation of the transaction, they shall have the option to rescind the sale, unless the discrepancy is insignificant and the shortage does not affect the purchaser's intended purpose. If the purchaser takes delivery of the subject matter of the sale with knowledge of the shortage, their right to rescind the sale shall lapse.

Article 476

A claim for rescission of the contract, or reduction or completion of the price, shall not be admissible if one year has elapsed from the date of delivery of the subject matter of the sale.

Article 477

Delivery is effected by placing the subject matter of the sale at the disposal of the purchaser in such a way as to enable them to take possession of it and benefit from it without hindrance, even if actual possession does not occur, as long as the seller has informed them thereof. Delivery shall take place in a manner consistent with the nature of the subject matter of the sale, and in accordance with the agreement or established custom.

Article 478

1. If the contract does not specify a time for the delivery of the subject matter of the sale, the seller is obligated to deliver it immediately upon the conclusion of the contract.

2. If the two parties to the sale agree that delivery will take place at a time determined by the purchaser, the seller is obligated to deliver at that time, taking into account the timeframes required by the nature of the subject matter of the sale or by custom.

Article 479

1. The sale requires the delivery of the subject matter of the sale at the place where it is located at the time of the contract, unless there is an agreement between the parties or a custom to the contrary.

2. If the subject matter of the sale was not at the place of the contract at the time of contracting and the purchaser was unaware thereof, the seller is obligated to deliver the subject matter of the sale at the place of the contract, unless there is an agreement or a custom to the contrary.

3. If the contract or custom contemplates the dispatch of the subject matter of the sale to the purchaser, delivery shall not be completed until it reaches them, unless agreed otherwise.

Article 480

If the subject matter of the sale is in the possession of the purchaser before the sale, under any capacity or for any reason, such possession shall be deemed a delivery, unless otherwise agreed.

Article 481

Delivery shall be deemed to have taken place in the following cases:

1. If the seller retains the subject matter of the sale in their possession at the request of the purchaser.

2. If the seller notifies the purchaser to pay the price and take delivery of the subject matter of the sale within a specified period, failing which it shall be deemed delivered, and the purchaser fails to do so.

3. If the two parties to the sale agree to consider the purchaser as having taken delivery of the subject matter of the sale in a specific case, or if the law requires that certain cases be considered as delivery.

4. If the seller registers the subject matter of the sale in the name of the purchaser, when the law requires registration for the transfer of ownership.

Article 482

1. If the subject matter of the sale perishes in the purchaser's possession after delivery, the purchaser shall be obliged to pay the agreed price to the seller.

2. If the subject matter of the sale perishes before delivery due to a cause not attributable to the seller, the sale shall be rescinded, and the purchaser shall recover the price, unless the perishing occurs after the seller has notified the purchaser to take delivery of the subject matter of the sale.

3. If part of the subject matter of the sale perishes before delivery, the purchaser shall have the option to either rescind the sale or take the remaining part in proportion to their share of the price. In this case, the contract may also be upheld in respect to the entire subject matter of the sale at the named price, with recourse against the person who caused the loss of the value of what perished.

4. If the subject matter of the sale perishes before delivery, or part thereof is damaged, due to an act of the purchaser, the purchaser shall be deemed to have taken possession of the subject matter of the sale and shall be obliged to pay the price.

5. If the subject matter of the sale perishes or part thereof is damaged due to an act of the purchaser, and the seller has a right of withdrawal and elects rescission, the purchaser shall indemnify the seller by delivering a similar item or its value, and shall acquire ownership of what remains thereof.

Article 483

1. The seller warrants that the subject matter of the sale is free from any third-party right that may be asserted against the purchaser, if the cause of such entitlement claim predates the contract of sale.

2. The seller warrants the subject matter of the sale if the entitlement is based on a cause subsequent to the sale and arising from the seller’s own act.

Article 484

1. Any entitlement claim (rei vindicatio) concerning the subject matter of the sale brought before its delivery shall be directed against both the seller and the purchaser.

2. If an entitlement claim concerning all or part of the thing is brought against the purchaser after delivery, the purchaser shall notify the seller thereof, and the seller shall intervene in the proceedings in support of the purchaser or substitute themselves for the purchaser therein.

3. If the seller is notified in due time and fails to intervene in the claim, they shall be liable under the warranty, unless they prove that the judgment resulted from fraud or gross fault on the part of the purchaser.

4. If the purchaser fails to notify the seller of the claim in due time, and a final judgment having the force of res judicata is rendered against them, the purchaser's right to invoke the warranty shall lapse if the seller proves that their intervention would have led to the dismissal of the claim.

Article 485

The purchaser's right to the warranty shall be established even if they, acting in good faith, acknowledge the third party's right or conclude a settlement with them in respect thereof without awaiting a judicial ruling to be issued, provided that the purchaser had notified the seller of the claim in due time and called upon them to substitute for them therein, and the seller failed to do so.

Article 486

1. If the purchaser settles with the claimant of entitlement regarding the subject matter of the sale before a judgment is rendered in their favor, and the seller denies the claimant's right, the purchaser shall be entitled to prove that the claimant is well-founded in their claim. Upon such proof, the seller shall have the option to either pay the equivalent of the settlement amount or refund the price to the purchaser.

2. If the settlement is concluded after a judgment has been rendered in favor of the entitled party, the purchaser shall retain the subject matter of the sale and shall be entitled to recover the price from the seller.

Article 487

If the whole of the subject matter of the sale is subject to entitlement and the entitled party does not authorize the sale, the contract shall be rescinded, and the purchaser may claim the following from the seller:

1. The value of the subject matter of the sale at the time of the entitlement claim, unless the law provides otherwise.

2. The value of the fruits that the purchaser was compelled to return to the entitled party.

3. The value, as assessed at the time of the entitlement claim, of any useful improvements made by the purchaser to the subject matter of the sale.

4. Compensation for any loss sustained or profit lost as a result of the entitlement of the subject matter of the sale.

5. All expenses incurred in the warranty proceedings and the entitlement claim, except for those which the purchaser could have avoided if they had notified the seller of the claim.

Article 488

1. If part of the subject matter of the sale is subject to entitlement before the purchaser has taken possession of the whole thereof, the purchaser may return what they have possessed and recover the price, or accept the sale and claim the price corresponding to the entitled part.

2. If part of the subject matter of the sale becomes subject to entitlement after the purchaser has taken possession of the whole thereof, and the entitlement causes a defect in the remainder, the purchaser may return it and have recourse against the seller for the price, or retain the remainder for a proportionate part of the price. If no defect is caused and the entitled part is the lesser part, the purchaser shall have no right other than recourse for the proportionate value of the entitled part.

3. If it appears after the sale that the subject matter of the sale is subject to a third-party right, the purchaser shall have the option to either await the removal of such right or to rescind the sale and recover the price from the seller.

4. If judgment is rendered establishing entitlement to the subject matter of the sale, and the entitled party authorizes the sale, they may have recourse against the seller for the price and the subject matter of the sale shall be freed from the third-party right in favor of the purchaser.

5. With respect to easement, it shall be presumed that the seller has stipulated an exclusion of warranty if the easement was apparent or if the seller had disclosed it to the purchaser.

Article 489

1. The contracting parties may agree to increase the warranty against entitlement.

2. Any condition that excludes or reduces the warranty shall be void.

3. The purchaser's knowledge that the subject matter of the sale is not owned by the seller shall not prevent them from recovering the price in the event of entitlement.

Article 490

1. If the entitlement is established on the basis of the purchaser's admission or their refusal to take an oath, they may not have recourse against the seller.

2. The purchaser may have recourse against the seller under the warranty, even if entitlement is established by their admission or refusal to take an oath, provided that the purchaser acted in good faith and had notified the seller of the entitlement claim in due time and invited them to join the proceedings, and the seller failed to do so, unless they prove that the entitled party was not justified in their claim.

Article 491

1. If entitlement is claimed after the subject matter of the sale has perished while in the purchaser's possession, the purchaser shall be liable to the entitled party for its value as at the date of sale, and shall have recourse against the seller for the price.

2. If the value for which the purchaser is liable exceeds the agreed price, they shall be entitled to recover the difference, along with compensation for damages due under Clause (5) of Article (487) of this Law.

Article 492

The entitled party may claim from the purchaser the benefit derived from the fruits or yield of the subject matter of the sale, after deducting the production expenses required, and the purchaser shall have recourse against the seller for whatever they have paid to the entitled party.

Article 493

1. A sale is deemed to be concluded on the basis that the subject matter of the sale is free from defects.

2. The general rules governing the option for defect shall apply to the contract of sale, with due regard to the provisions of the following Articles.

Article 494

1. The defect giving rise to the purchaser's option for defect is the latent defect.

2. A defect is latent if it is old and existed in the subject matter of the sale before the sale, or arose thereafter while in the seller's possession and before delivery, and is of a kind that cannot be detected by ordinary inspection, is not apparent to an ordinary person, can only be discovered by an expert, or only appears through testing.

3. Any defect that appears after the purchaser has taken delivery of the subject matter of the sale shall likewise be deemed a latent defect if it is proven to have arisen from a cause existing in the subject matter of the sale before delivery.

Article 495

If a latent defect appears in the subject matter of the sale, the purchaser shall have the option to either return it or retain it and demand from the seller a reduction of the price proportionate to the defect, and the seller may avert this by providing a defect-free equivalent of the subject matter of the sale.

Article 496

The seller shall be liable under the warranty if, at the time of delivery, the subject matter of the sale lacks the qualities that the seller guaranteed to the purchaser to exist therein, or if the subject matter of the sale has a defect that diminishes its value or its utility for the intended purpose, as stated in the contract or as apparent from the nature of the thing or the purpose for which it was prepared. The seller shall be liable for this defect even if they are unaware of its existence.

Article 497

The seller shall not be liable for a defect in the following cases:

1. If the seller disclosed the defect to the purchaser at the time of sale.

2. If the defect is one that is customarily tolerated.

3. If the purchaser accepted the defect after having examined it or after becoming aware of it through another.

4. If the purchaser purchased the subject matter of the sale, knowing of the defect therein.

5. If the seller stipulates exclusion of liability for any defect or for a specific defect, unless the seller deliberately concealed the defect by way of fraud, or the purchaser was in a condition that prevents them from inspecting the defect.

6. If the defect arose after delivery, unless it is attributable to a cause existing in the subject matter of the sale before delivery.

7. If the sale is conducted by judicial or administrative auction.

Article 498

The seller shall not be liable for defects known to the purchaser at the time of the sale, or which the purchaser could have discovered by themselves had they inspected the subject matter of the sale with the care of an ordinary person, unless they prove that the seller affirmed that the subject matter of the sale was free from such defect, or proves that the seller deliberately concealed the defect by way of fraud.

Article 499

If the purchaser disposes of the subject matter of the sale as an owner after becoming aware of the latent defect, their option for defect shall be forfeited.

Article 500

If the subject matter of the sale perishes due to a latent defect while in the purchaser's possession or is consumed before they become aware of the defect, they may recover from the seller the reduction in price caused by the defect.

Article 501

1. If a new defect occurs in the subject matter of the sale while in the purchaser's possession, they may not return it on the basis of the latent defect, but may only demand from the seller a reduction in the price, unless the seller agrees to take it back with the new defect.

2. If the new defect ceases, the purchaser's right to return the subject matter of the sale to the seller on the basis of the latent defect shall be restored.

Article 502

1. If the seller warrants the fitness of the subject matter of the sale for use for a specified period and a defect appears in the subject matter of the sale during that period, the purchaser shall notify the seller of this defect within one month from its appearance, unless a longer period is agreed upon.

2. If the seller fails to repair the defect, the purchaser may request rescission of the contract with compensation, or retain the subject matter of the sale and claim compensation for the damage suffered due to the defect.

Article 503

1. If several things are sold in a single transaction and a defect appears in some of them before delivery, the purchaser shall have the option to accept them for the agreed price or to return them all.

2. If several things are sold in a single transaction and a latent defect appears in some of them after delivery, and their separation does not cause harm, the purchaser may return the defective thing for its proportionate share of the price, and shall have no right to return all of them without the seller's consent. If their separation does cause harm, the purchaser may return all the things sold or accept them for the full price.

Article 504

1. If the subject matter of the sale has a defect that requires its return, and the purchaser has, before becoming aware of the defect, encumbered it with a right in favor of a third party that does not divest them of ownership, the purchaser may return it to the seller on account of such defect after releasing it from such right, provided that the subject matter of the sale has not changed during this period.

2. If the purchaser encumbers the subject matter of the sale with a right in favor of a third party after becoming aware of the defect, their right to return it for that defect shall be forfeited. If the subject matter of the sale has changed, it shall be governed by the rules applicable to changes occurring to a subject matter of the sale affected by a pre-existing defect.

Article 505

The purchaser's right to return the subject matter of the sale for a defect shall not be forfeited solely due to a change in its value.

Article 506

1. The yield of a subject matter of the sale returned for a defect, which is not considered part thereof, shall belong to the purchaser from the date of taking possession of the subject matter of the sale until the date of rescission of the sale, and the purchaser may not claim from the seller the expenses incurred in relation thereon.

2. The yield of a subject matter of the sale returned for a defect, which is considered part thereof, shall belong to the seller.

3. The purchaser may recover from the seller the expenses incurred in respect of the subject matter of the sale returned for a defect that produced no yield.

Article 507

The risk of a subject matter of the sale returned for a defect shall pass from the purchaser to the seller upon the seller’s consent to take it back from the purchaser, even if actual delivery has not taken place, or upon the establishment before the court of the defect warranting return, even if no judgment ordering the return has been rendered, provided that the seller is present. If the seller is absent, the risk shall not pass thereto except upon the issuance of a judgment ordering the return of the subject matter of the sale.

Article 508

The warranty for a defect shall pass to the purchaser's heirs.

Article 509

The claim for warranty in respect of a defect subsists even if the subject matter of the sale has perished for any reason whatsoever.

Article 510

A claim for warranty in respect of a defect shall not be admissible upon the lapse of one year from the day following the delivery of the subject matter of the sale, unless the seller has undertaken to provide a longer warranty period. The seller may not rely on this period if it is established that the defect was concealed by fraud on their part.

Article 511

The purchaser shall pay the price upon conclusion of the contract and before taking delivery of the subject matter of the sale or demanding it, unless otherwise agreed.

Article 512

1. The seller may withhold the subject matter of the sale until they receive the price due to them, even if the purchaser has offered a pledge or a guarantee.

2. If the subject matter of the sale perishes while in the seller's possession while they are withholding it, the loss shall be borne by the purchaser, unless the perishing was caused by the act of the seller.

3. If the seller agrees to defer the price, their right to withhold the subject matter of the sale shall be forfeited, and they shall be obliged to deliver it to the purchaser.

Article 513

1. If the purchaser takes possession of the subject matter of the sale before paying the due price, in the presence of the seller and without objection on their part, this shall be deemed consent to delivery.

2. If the purchaser takes possession of the subject matter of the sale before paying the due price, without the seller's consent, the seller may recover the subject matter of the sale. If the subject matter of the sale perishes or becomes defective while in the purchaser's possession, they shall be deemed to have taken delivery, and the seller may recover the price and claim compensation from the purchaser, where applicable.

Article 514

The destruction of the subject matter of the sale by the purchaser, even without intent, shall be deemed to constitute taking possession thereof.

Article 515

If the purchaser was unaware of the location of the subject matter of the sale at the time of the contract and then becomes aware thereof, they shall have the option to either rescind the sale or to affirm it and take delivery of the subject matter of the sale at its place of existence.

Article 516

1. The purchaser shall be obliged to pay the immediate price at the location of the subject matter of the sale at the time of the contract, unless there is an agreement or custom to the contrary.

2. If the price is a deferred debt upon the purchaser and there is no agreement on its payment at a specific place, it shall be paid at the purchaser's domicile at the time the payment falls due.

Article 517

If the purchaser takes possession of an item on approval for purchase and it perishes or is lost while in their possession, and the price has been specified, they shall be bound to pay it. If the price has not been specified, the purchaser shall not be liable except in cases of transgression or negligence.

Article 518

1. If an entitlement claim (rei vindicatio) is brought against the purchaser in respect of the subject matter of the sale based on a right predating the sale or deriving from the seller, the purchaser may withhold the price until the seller provides a suitable guarantee or a solvent surety who ensures the return of the price to the purchaser upon establishment of the entitlement. The seller may request the court to order the purchaser to deposit the price with it instead of providing the guarantee or a surety.

2. The provision of Paragraph (1) of this Article shall apply if it becomes apparent to the purchaser that the subject matter of the sale has an old defect guaranteed by the seller.

Article 519

If a specific date for payment of the price is set in the sale, and it is stipulated therein that if the purchaser does not pay the price on that date, there shall be no sale between them, and the purchaser does not pay it while the subject matter of the sale is remains in the seller's possession, the sale shall be deemed to be legally rescinded.

Article 520

1. If the purchaser has taken possession of the subject matter of the sale and then dies bankrupt or insolvent before paying the price, the seller may not demand the return of the subject matter of the sale, and the price becomes a debt upon the estate, with the seller being pari passu with the other creditors.

2. If the purchaser dies bankrupt or insolvent before taking possession of the subject matter of the sale and paying the price, the seller has the right to retain the subject matter of the sale until the price is recovered from the purchaser's estate, and shall have priority over other creditors.

3. If the seller takes possession of the price and dies bankrupt or insolvent before delivering the subject matter of the sale, it shall be deemed a trust in their possession, and the purchaser shall have priority thereto over the other creditors.

Article 521

The purchaser shall bear the expenses of payment of the price, registration of the sale contract, and other expenses, and the seller shall bear the expenses of delivery of the subject matter of the sale and other costs, unless there is a provision of law, an agreement, or a custom to the contrary.

Article 522

Salam is a sale with deferred delivery for an advance price.

Article 523

1. The following conditions shall be met for a Salam sale to be valid:

a. The subject matter of the sale shall be of property that can be specified by description and quantity, and that is usually available at the time of delivery.

b. The contract shall include a statement of the genus, type, quality, quantity, and the time of delivery of the subject matter of the sale.

2. The Salam capital (the price) shall be known to the contracting parties, and payment shall be made at the time of contracting.

Article 524

The purchaser may dispose of the Salam subject matter before taking possession thereof.

Article 525

It shall not be valid for both the Salam capital and the subject matter of the Salam to consist of two foodstuffs or currencies; in cases other than foodstuffs, it shall be sufficient that they differ in genus and benefit.

Article 526

If the delivery date for the subject matter of the Salam arrives, it shall be delivered at the agreed-upon location. If the seller and purchaser differ on the place of delivery of the Salam subject matter, preference shall be given to the party who alleges delivery at the place where the contract was concluded. If neither of them alleges this, it shall be delivered in accordance with the custom prevailing in this matter.

Article 527

If the seller and the purchaser disagree on the quantity of the Salam subject matter, or on the term of its delivery, and neither has evidence, the statement of the one preference shall be given to the party who alleges the quantity prevailing among people shall be accepted. If no prevailing quantity exists, they shall be judged by the average quantity.

Article 528

The settlement of the Salam subject matter shall be made in its own genus. By way of exception, it may be agreed that settlement be effected in a different genus, subject to the following conditions:

1. The substitute consideration by which settlement is made shall be delivered immediately.

2. This substitute consideration shall be of a kind that may validly serve as the Salam capital.

3. The subject matter of the Salam shall not be foodstuff.

Article 529

1. If the Salam subject matter has a specific time of availability, and it becomes unavailable at the time it falls due before the purchaser takes possession thereof, the purchaser shall wait until it becomes available again. If the delay in taking possession is not due to a reason attributable to the purchaser, the purchaser shall have the option either to rescind the Salam contract or to wait until it becomes available.

2. If its availability ceases after the purchaser has taken possession of part thereof, waiting shall be required until the remainder becomes available, unless the parties agree to settle accounts in respect of the part already taken possession of.

Article 530

1. If delivery of the Salam subject matter becomes impossible due to a temporary supervening cause at the time it falls due, the purchaser shall have the option either to wait for its availability or to rescind the contract and recover the capital.

2. If the seller in a Salam contract dies before the maturity date of the subject matter of the sale, the purchaser shall have the option either to rescind the contract and recover the price from the estate, or to wait until maturity. In the latter case, an amount from the estate that covers the value of the subject matter of the sale shall be attached, unless the heirs provide an appropriate guarantee or a solvent surety who ensures the delivery of the subject matter of the sale upon its maturity.

Article 531

1. If a purchaser, in a Salam contract, exploits the need of a farmer and buys a future crop from them at a price or on terms that are manifestly grossly unfair, the seller shall, when the time for performance falls due, have the right to request the court to adjust the price or the terms in a manner that removes the unfairness. The court shall take into consideration the circumstances of time and place, the general level of prices, and their differences between the date of the contract and the date of delivery, in accordance with the prevailing custom.

2. The purchaser shall have the right not to accept the adjustment ordered by the court and to recover the actual price they actually paid to the seller, in which case the seller shall have the right to sell their crop to whomever they wish.

3. Any agreement or condition intended to waive this right shall be void, whether such condition is in the Salam sale contract itself or in the form of a separate obligation whatever its nature.

Article 532

If a person sells the property of another without their permission, the sale shall not be effective as against the owner except by their ratification.

Article 533

1. If the owner ratifies the sale, the contract shall become effective with respect thereto and binding with respect to the purchaser. The contract shall likewise become effective if ownership of the subject matter of the sale passes to the seller after the conclusion of the contract.

2. If the purchaser was unaware that the subject matter of the sale was not owned by the seller at the time the contract was concluded, the purchaser may demand the annulment of the contract and claim compensation, even if the seller was in good faith.

Article 534

Takhāruj is the sale by an heir of their share in an estate, after the death of the decedent, to one or more other heirs for a known consideration, even if the assets of the estate are not specified.

Article 535

1. Takhāruj shall transfer the seller's share in the estate to the purchaser who shall replace the seller in the entitlement to their share of the estate.

2. Takhāruj shall not include everything that appears to belong to the deceased after the contract and of which the contracting parties were unaware at the time of the contract.

3. Takhāruj shall not include the rights that the estate has against the parties to the Takhāruj or against any of them, nor the obligations that it has towards them or any of them.

Article 536

If the sale is effected without itemizing the components of the estate, the seller shall not warrant to the purchaser anything other than the existence of the estate and the confirmation of their hereditary share therein.

Article 537

1. The purchaser shall follow the procedures required by law for the transfer of each right included in the hereditary share subject to the Takhāruj.

2. Takhāruj shall not be effective against a third party until the purchaser has completed the procedures required by law for the transfer of each right included in the hereditary share subject to the Takhāruj.

Article 538

1. Death illness is the illness in which a person is unable to pursue their usual activities, and in which death is predominant, and which is connected with death.

2. Cases which a person is surrounded by a danger of death and in which death is the most likely outcome shall be deemed equivalent to death illness, even if the person is not suffering from a disease.

Article 539

1. A sale by a sick person to an heir or to another for the price of the like or with minor unfairness shall be effective and shall not require the ratification of the heirs.

2. A sale by a sick person to an heir or to another at a price below the value of the subject matter of the sale at the time of death shall be effective as against the heirs if the excess of the value thereof over the price does not exceed one-third of the estate, including the subject matter of the sale.

3. If the value of the subject matter of the sale exceeds the price by more than one-third of the estate, the sale shall not be effective unless ratified by the heirs or the purchaser completes two-thirds of the value of the subject matter of the sale; otherwise, the heirs shall have the right to rescind the sale.

Article 540

A sale by a sick person to a non-heir for less than the value of the like, even with minor unfairness, shall not be effective as against the creditors if the estate is fully encumbered with debts, and the purchaser may pay the price of the like, otherwise the creditors shall have the right to rescind the sale.

Article 541

The rescission of a sale by a sick person shall not be permitted if the purchaser has disposed of the subject matter of the sale in a manner that confers, for consideration, a right therein upon a good faith person. In this case, the creditors of the estate fully encumbered with debts may have recourse against the purchaser from the sick person for the difference between the price and the value of the subject matter of the sale, and the heirs shall have this right if the purchaser is one of them. If the purchaser is a non-heir, they shall return, to the estate, an amount completing two-thirds of the value of the subject matter of the sale.

Article 542

A person who acts as a representative for another by virtue of an agreement, a provision of law, or an order from the competent authorities may not, whether directly or under an assumed name, even by way of public auction, purchase for themself the property entrusted to them for sale by virtue of such representation, without prejudice to the applicable legislation.

Article 543

An intermediary or an expert, or any person in a similar capacity, may not buy in their name or under an assumed name, even by public auction, the properties that entrusted thereto for sale or for the valuation of their value.

Article 544

By way of exception to the provisions set forth in Articles (542) and (543) of this Law, the representative, intermediary, or expert may purchase for themselves if authorized by the principal or the relevant person.

Article 545

1. A right is considered disputed if a lawsuit has been instituted regarding its subject matter or if a serious dispute has arisen concerning it.

2. If a disputed right is sold, the person disputing with the seller may recover it from its purchaser if they refund them the price paid and the expenses incurred.

3. The right of recovery shall be extinguished upon the lapse of sixty (60) days from the date on which the recovering party became aware of the sale.

Article 546

The provisions of Article (545) of this Law shall not apply in the following cases:

1. If the disputed right is part of a group of properties sold en bloc for a single price.

2. If the disputed right is held in common among heirs or owners and one of them sells their share to another.

3. If a debtor assigns a disputed right to a creditor in settlement of a debt due therefrom.

4. If the disputed right encumbers an immovable property and the right is sold to the possessor of the property.

Article 547

1. Judges, members of the Public Prosecution, experts, court officials, or persons in a similar capacity, or their relatives up to the second degree, may not purchase, whether in their own names or in assumed names, all or part of a disputed right, if the consideration of the dispute falls within the jurisdiction of the court in whose division they perform their duties; otherwise, the sale shall be void.

2. Arbitrators, conciliators, or mediators, or their relatives up to the second degree, may not purchase, in their own names or in assumed names, all or part of a disputed right, if the consideration of the dispute falls within the tasks assigned to them; otherwise, the sale shall be void.

3. Lawyers may not deal with their clients concerning the disputed rights for which they are defending, whether the dealing is in their own names or in assumed names; otherwise, the contract shall be void.

Article 548

Barter is a contract by which each of the contracting parties undertakes to transfer to the other, by way of exchange, the ownership of property other than money.

Article 549

The addition of a sum of money to one of the two exchanged items for balancing purposes shall not remove from the barter its nature, if the exchanged items have different values in the estimation of the contracting parties.

Article 550

The expenses of the barter contract, delivery expenses, and any other expenses shall be borne equally by the two parties to the barter, unless there is an agreement or a custom to the contrary.

Article 551

The provisions of the sale contract shall apply to the barter contract to the extent permitted by the nature of the barter, and each of the two parties to the barter shall be deemed a seller of the thing they exchanged and a purchaser of the thing they received in exchange.

Article 552

A gift is a contract whereby the donor undertakes, during their lifetime, to transfer the ownership of the gifted property to the donee without consideration.

Article 553

1. If the donor stipulates a consideration from the donee, the contract shall be a commutative contract to which the provisions governing commutative contracts shall apply, according to the nature of the consideration.

2. The consideration in a gift subject to consideration shall be known, otherwise either party may rescind the contract, even after the donee has taken possession of the gifted property, unless the parties agree on specifying the consideration before rescission.

3. If the gifted property perishes or is disposed of by the donee before rescission, the donee shall be bound to return its value as of the date of taking possession.

Article 554

1. A gift is concluded by offer and acceptance and is completed by taking possession.

2. If the gifted property is immovable, its gift shall not be valid unless documented in accordance with the applicable legislation.

3. If the gifted property is movable, the gift shall not be valid unless documented in accordance with the applicable legislation, or by taking possession if such legislation does not so require.

Article 555

A contract of gift shall not be effective in the following cases:

1. If the gifted property is not owned by the donor, unless ratified by the owner.

2. A gift made by a debtor whose debt has encompassed their property, unless ratified by the creditor.

Article 556

A gift of a debt to the debtor is valid and shall be deemed a discharge (ibraʾ). A gift of a debt to a non-debtor is valid and shall take effect if the debtor pays the debt to the donee.

Article 557

A partner may validly gift their share in an undivided property to their partner or to a third party is valid, whether the gifted property is immovable or movable, and even if the gifted property is divisible.

Article 558

It shall be a condition for the validity of a gift that the donor is not legally interdicted from making the gift.

Article 559

Whoever mortgages a thing for a debt owed thereby and then gifts it to a person other than the mortgagee, and the mortgagee consents to the gift to another, the gift shall be valid and the debt shall remain without security, even if the mortgagor is insolvent. If the mortgagee does not consent to the gift of the mortgaged property to another and the mortgagor is insolvent, the gift shall be void. If the mortgagor is solvent, the gift shall be valid provided that the debt is paid immediately to the mortgagee or that adequate security is provided.

Article 560

If the mortgaged property is gifted to a person other than the mortgagee and then the donor dies before redeeming the mortgage, the gift shall be void.

Article 561

A gift shall be void if the donor's debts encompass their property before the donee takes possession of the gifted property, even if the debt arises after the gift.

Article 562

1. A gift of trees with the exclusion of their fruit for one year or more, on the condition that the donee undertakes their irrigation and maintenance during that period, shall not be permissible; if such a gift occurs, it shall be rescinded.

2. As a result of the rescission of the gift, the donee shall return the trees to the donor if they remain in the same condition.

3. If the condition of the trees has changed, the donee shall pay their value as of the day of taking possession thereof, and ownership shall pass to the donee from that date. In this case, the donee shall have recourse against the donor for the equivalent of what the donor has taken of their fruits, if the quantity thereof is known, or for their value if the quantity is not known.

Article 563

Whoever gifts a thing to a person and then gifts it, before possession, to a second person, and the second person takes possession before the first, it shall be adjudged to the second, and the donor shall not be bound to pay its value to the first.

Article 564

A gift of a deposit to the depositary, or a gift of a thing lent for use to the borrower, shall be void if the depositary or the borrower does not accept it except after the donor's death, whether they were aware of the gift before or after the donor's death.

Article 565

If a thing lent for use is gifted to a person other than the borrower, or a deposit is gifted to a person other than the depositary, and the donor dies before the expiry of the period of the loan for use or before the recovery of the deposit, the possession of the borrower of the thing lent for use, or of the depositary of the deposit, shall be deemed possession on behalf of the donee, and the gift shall be completed thereby, provided that the donor has had it witnessed. If the gift is not witnessed, the possession of each shall be deemed possession on behalf of the donor, and the gift shall be void.

Article 566

1. A gift by a minor or a prodigal without consideration shall be void.

2. The guardian of an interdicted person may not make a gift of any property of their ward, unless the guardian is the father, and the gift is made for consideration.

Article 567

If the leased property is gifted to someone other than the lessee and the donor dies before the expiry of the lease period, the possession of the lessee shall not, after the gift, be possession for the donee, unless the donor has also gifted the rent to the donee before receiving it from the lessee, in which case the lessee's possession shall be possession for the donee.

Article 568

If one spouse gifts property to the other where necessity requires their joint possession thereof, or the wife gifts the dwelling house to the husband, the completion of the gift does not depend on the independent possession of the gifted property by the donee. However, if one spouse gifts something to the other which necessity does not require their joint possession thereof, or the husband gifts the dwelling house to his wife, the gift is not completed except by the independent possession of the gifted property by the donee.

Article 569

A promise to make a gift shall not be valid, nor shall a gift of a future property be valid.

Article 570

If one of the parties to a gift dies, becomes bankrupt, or insolvent before the contract is documented or the gifted property is possessed, the gift shall be void, even if made without consideration.

Article 571

A gift after the donor's death is valid if the donee sought to document it or to take possession thereof during the donor's lifetime but was unable to do so until after their death.

Article 572

The provisions of a will shall apply to a gift made during a death illness.

Article 573

The donor is obliged to deliver the gifted property to the donee, and the provisions governing the delivery of the sold property shall be followed in this regard.

Article 574

1. If the gift is made without consideration, the donor does not guarantee the entitlement of the gifted property nor its freedom from defects, unless they intentionally conceal the cause of the entitlement or the defects. In this case, the court shall assess for the donee fair compensation for the damage they have suffered.

2. If the gift is made for consideration, the donor does not guarantee except to the extent of the consideration provided by the donee, and the parties may agree to modify the guarantee or to waive it.

Article 575

1. If the gifted property becomes subject to entitlement after it has perished while in the possession of the donee, and the entitled party chooses to have recourse against the donee for the guarantee, the latter may claim from the donor what they have guaranteed to the entitled party.

2. If the gifted property becomes subject to entitlement and the donee has made an addition to the gifted property that cannot be separated without damage, the entitled party may not recover it before paying the value of the addition.

Article 576

The donor does not guarantee a latent defect in the gifted property, even if the donor intentionally concealed it, unless the gift is made for consideration.

Article 577

The donee is obliged to perform what has been stipulated as consideration for the benefit of the donor, a third party, or the public interest.

Article 578

If it is found that the gifted property is of lesser value than the stipulated consideration, the donee is not obliged to pay more than the value of the gifted property.

Article 579

If the donor stipulates as consideration for the gift the payment of their debts, the donee is not obliged to pay except the debts that existed in the donor's liability at the time of the gift, unless otherwise agreed.

Article 580

If the donor stipulates that the donee shall provide maintenance for them or for another for life, the donee shall be bound by such stipulation. If the donee breaches this obligation, the donor may demand the performance of this obligation or the rescission of the gift.

Article 581

If the gifted property is encumbered with a real right (jus in rem) securing a debt owed by the donor or by another person, the donee is obliged to pay this debt, unless otherwise agreed.

Article 582

1. The donor may revoke the gift before taking possession thereof without the donee's consent.

2. The donor may revoke the gift after taking possession thereof with the donee's consent. If the donee does not consent, the donor may request the court to authorize the revocation if based on an acceptable excuse and no impediment to revocation exists.

Article 583

An acceptable excuse for rescinding and revoking a gift is considered to be:

1. That the donee fails to fulfill their obligation towards the donor or one of their relatives, such that it is considered ingratitude on their part.

2. That the donor becomes unable to provide for themselves in a manner consistent with their social standing, or becomes unable to discharge their legal obligation of maintenance towards others.

3. If the gift was made by one betrothed party to the other and the engagement was rescinded due to the withdrawal of the donee from the engagement.

4. If the donor had no child and is blessed with a child after the gift, who remains alive until the time of revocation, or if they had one child, whom they believed to be dead at the time of the gift, and it turns out that the child is alive.

Article 584

1. Either parent may recover what they have gifted to their child.

2. The right of either parent to recover what they have gifted to their child is forfeited in the following cases:

a. If the nature of the gifted property changes or is disposed of by the donee in a way that removes it from their ownership.

b. If a financial transaction arises with the donee because of the gift, and the revocation of the gift would cause harm to the donee or to a third party.

c. If the donee or the donor contracts a serious illness after the gift, unless such illness ceases, in which case the right of each parent to recover what they have gifted to their child shall revive.

Article 585

An impediment to the revocation of a gift is considered to be:

1. If the gifted property has had an attached addition that causes an increase in its value, and if the impediment ceases, the right of revocation shall revive.

2. If either of the parties to the contract of gift dies.

3. If the donee has disposed of the gifted property by a final disposition. If the disposition is limited to part of the gifted property, the donor may revoke the remainder.

4. If the gift is from one spouse to the other or to a mahram relative, unless it results in an unjustified preference among them.

5. If the gift is to either or both parents.

6. If the creditor gifts the debt to the debtor.

7. If the gifted property perishes while in the possession of the donee, whether the perishment is by their act or by an external event for which they are not responsible or due to use. If only part of it perishes, the revocation may be made for the remainder.

8. If the donee has provided consideration for the gift.

9. If the gift is a charity or an act of piety.

Article 586

If the donee intentionally and unlawfully kills the donor, any of their heirs has the right to invalidate the gift.

Article 587

1. The donor may recover the gifted property if they have stipulated in the contract that such recovery shall occur in the event the donee fails to fulfill certain obligations for the benefit of the donor or someone they care about.

2. If the gifted property has perished or the donee has disposed thereof, the donor is entitled to its value at the time of the disposition or perishment.

Article 588

1. Revocation results in the return of the gifted property to the ownership of the donor from the time the revocation is completed, without prejudice to the rules related to registration.

2. The donee shall not be required to return the fruits except from the time of agreement on the revocation or from the time of filing the lawsuit. They may have recourse for all necessary expenses they have incurred, while for beneficial expenses, recourse shall not exceed the value of the increase in the gifted property.

Article 589

1. If the donor recovers the gifted property without mutual consent or litigation, they shall be liable to the donee for the perishment of the thing, whether the perishment is by the donor's act, by an external event for which they are not responsible, or due to use.

2. If a judgment is issued revoking the gift and the thing perishes while in the possession of the donee after being notified to deliver it, they shall be liable for this perishment, even if it is due to an external event for which they are not responsible.

Article 590

The expenses and costs of the gift shall be borne by the donee, and the expenses and costs of the revocation shall be borne by the donor, unless otherwise agreed.

Article 591

1. A loan is a contract whereby the lender undertakes to transfer to the borrower the ownership of a sum of money or any other fungible thing, on the condition that the borrower returns to the lender at the end of the loan term an item of the same amount, type, and description.

2. If the loan contract stipulates an additional benefit exceeding the nature of the contract, other than securing the lender's right, the condition shall be void, and the contract shall remain valid.

Article 592

The subject matter of the loan shall be fungible and consumable.

Article 593

1. The lender shall be of full legal capacity, and the borrower shall be legally capable of assuming obligations.

2. The guardian, tutor, curator, or representative of an absentee may not borrow funds for the benefit of the person under their guardianship, except by permission of the court.

Article 594

1. The lender shall deliver the subject matter of the contract to the borrower upon completion of the contract, unless it is agreed to deliver it at another time.

2. If the item perishes before its delivery to the borrower, the loss shall be borne by the lender.

Article 595

If a third party is adjudged entitled to the property received under the loan while it is still in the possession of the borrower, the latter’s obligation to return a similar item shall lapse, and they may have recourse against the lender for any damage they may have suffered as a result of such entitlement, if the lender was acting in bad faith.

Article 596

1. If a latent defect appears in the property received under the loan, the borrower shall only be obliged to return its value in its defective condition.

2. If the lender intentionally concealed the defect, they shall be liable for the damage caused by the defect.

Article 597

If the loan is subject to a term, the lender may not demand repayment before the expiry of the term. If no term is agreed upon, or if it is agreed that repayment shall be made when the borrower is able to do so, the court shall determine a suitable time for repayment according to the circumstances.

Article 598

1. The borrower is obliged to return the same amount, type, and description of what they have received at the end of the loan period, and no regard shall be had to any change in its value, at the time and place agreed upon.

2. If it is impossible to return an item of the same kind as the borrowed item, the lender's right shall transfer to its value on the date of receipt.

Article 599

If several persons borrow funds and one of them receives the amount with the consent of the others, none of them may demand from that person more than their share of what was received.

Article 600

1. The borrower is obliged to repay at the place where the loan was concluded, unless expressly or implicitly agreed otherwise.

2. If the domicile of both parties moves to another country, whether the same or different, where the value of the property received under the loan differs from its value in the country of the loan, the lender's right shall transfer to the value at the place where the loan was contracted.

Article 601

The expenses of the loan and its repayment shall be borne by the borrower, unless otherwise agreed.

Article 602

The provisions set out in this Chapter shall not prejudice the provisions of any special laws.

Article 603

1. A company is a contract whereby two or more persons undertake to contribute to an enterprise by each providing a contribution of property or service, for the purpose of investing in that enterprise and sharing in any profits or losses resulting therefrom.

2. Notwithstanding Paragraph (1) of this Article and in accordance with the applicable legislation, any of the following shall be permissible:

a. The establishment or ownership of a company by a single person.

b. The reinvestment of the net profits of the company to achieve the purposes for which it was established.

Article 604

The company contract shall be in writing. The absence of writing shall not affect the rights of third parties, but as between the partners themselves, the contract shall be deemed valid, unless one of them requests that it be declared invalid, in which case such invalidity shall take effect in respect of the contract from the date the claim is instituted.

Article 605

A company shall acquire legal personality upon its formation. Such legal personality may not be relied upon against a third party except after completion of the procedures prescribed by law. However, third parties may rely on such personality notwithstanding the non-completion of the prescribed procedures.

Article 606

1. A company shall be civil if its activity is non-commercial.

2. A company shall be commercial if its activity is commercial, or if it adopts one of the forms of commercial companies, even if its activity is non-commercial, and in such case, it shall be subject to the Commercial Companies Law.

3. A company shall be subject to the provisions set out in this Chapter and the provisions of the special legislation regulating the activities it carries out.

Article 607

1. The capital of the company shall consist of cash contributions and in-kind contributions of assessed value. The contribution of a partner to the capital of the company may also be in the form of services.

2. The partners' contributions to the capital of the company may be equal or unequal.

3. The contribution of a partner to the capital of the company may not be limited to their influence or the financial standing they enjoy.

4. A debt owed by a third party may not constitute a contribution to the capital of the company.

Article 608

1. If the contribution of a partner in the company consists of a right of ownership, a right of usufruct, or any other real right (jus in rem), the provisions governing sale shall apply to the warranty of such contribution in the event of its perishing, entitlement thereto, or the appearance of a defect or deficiency therein. However, if the contribution is merely of the right of enjoyment of the property, the provisions governing lease shall apply in all such cases, unless the law provides otherwise.

2. If the contribution of a partner consists of services, such partner shall perform the services undertaken under the contract and shall render an account of their earnings from the date the company commenced carrying on the activity for which such services were contributed. In this case, the partner shall not be obliged to transfer to the partnership any intellectual property rights acquired thereby, unless otherwise agreed.

Article 609

1. Every company shall have a financial year to be determined in the company contract, provided that the first financial year of the company shall not exceed eighteen (18) months and shall not be less than six (6) months, calculated from the date of its registration with the competent authority.

2. The subsequent fiscal years shall be consecutive periods, each of twelve (12) months, commencing immediately after the end of the preceding fiscal year.

Article 610

1. Profits and losses shall be distributed in the manner set out in the company's contract.

2. If the company's contract does not specify the share of each partner in the profits and losses, they shall be distributed in proportion to each partner's share in the capital of the company.

3. If the contract only specifies the partner's share in the profit, their share in the loss shall be equal thereto.

4. If a partner's contribution is limited to their services, their share in the profit and loss shall be assessed in proportion to the benefit derived by the company from such services. If, in addition to their services, the partner contributes cash or any other property, they shall be entitled to a share in respect of their services and another share in respect of what they have contributed in addition thereto.

Article 611

If the partners agree in the contract that one of them shall receive a fixed sum of the profit, such condition shall be void, and the profit shall be distributed in proportion to each partner’s share in the capital.

Article 612

If it is agreed in the contract that one of the partners shall not benefit from the company's profits or shall not contribute to its losses, the company contract shall be void.

Article 613

1. If neither the law nor the company contract contains a specific provision on the method of management, each partner shall be deemed authorized by the others to manage the company and may carry out acts of management and acts of disposition falling within its objects without referring to the other partners. Such acts shall be effective against the company and all partners, provided they do not contravene the company contract or the law.

2. Any of the partners shall have the right to object to any act before it is completed, and the majority of the partners shall have the right to overrule this objection.

3. No partner may perform any act of disposition that does not fall within the objects of the company, unless approved by the unanimous consent of the partners.

Article 614

1. The partners may appoint, from among them or from third parties, a person to manage the company and act on their behalf under the company contract or under a separate contract, with or without remuneration.

2. The manager of the company shall have the authority to carry out acts of management and acts of disposition that fall within the purpose of the company and what is necessarily incidental thereto, provided that such acts and dispositions are free from fraud, breach of trust, gross fault, or negligence, and are consistent with the company contract.

3. If the manager of the company exceeds the powers specified in the contract, they shall be liable for any damage that befalls the company as a result of such act.

4. The manager of the company may delegate some of their management powers if authorized to do so under the company contract or a separate contract, provided that they shall remain liable towards the company for the acts of the person to whom such powers are delegated.

5. Any of the partners may object to acts of management and acts of disposition that exceed the objects of the company or violate the company contract or established custom. They may discuss the objection with the other partners and may also resort to the court.

Article 615

1. There may be multiple managers for the company, and the powers of each shall be determined in the company contract, a separate contract, or any subsequent agreement. Each manager shall be bound by the powers conferred thereupon and shall not encroach upon the powers of the other managers.

2. If there are multiple managers and the powers of each are not specified, and it is not stipulated that they shall act jointly, each may individually perform any act of management, provided that the others have the right to object to the act before completion thereof. In this case, the decision of the majority of the managers shall prevail. If the opinions are equal, the matter shall be referred to the partners for determination, and their decision shall be final.

3. If it is agreed that the decisions of the company's managers shall be taken unanimously or by majority, no departure from such agreement shall be permitted, except in urgent matters where failure to act would result in a serious loss that the company cannot compensate.

Article 616

If a decision is required to be taken by majority, the majority shall be calculated on the basis of the value of the partners’ shares, unless the law or the agreement provides otherwise.

Article 617

1. Partners who are not managers are prohibited from participating in management.

2. Partners who are not managers have the right to request a report on the acts of management and acts of disposition, and to personally inspect the company's books, records, and documents. This right may not be delegated, and any agreement to the contrary shall be void.

Article 618

A person appointed to manage the company or delegated with its management may not resign from management at a time where such resignation would cause harm to the company.

Article 619

The partner entrusted with the pursuit of the interests of the company shall refrain from any act that would cause damage to the company or contravene the purpose for which it was established, and shall, in pursuit of the company's interests, exercise the same degree of care as they exercise in their own affairs, unless they are appointed to act for remuneration, in which case they may not exercise a degree of care lower than that of an ordinary person.

Article 620

A partner may not appropriate to themselves any of the company's property. If they do so, they shall be liable for any damage that results therefrom.

Article 621

1. If a partner has personal creditors, they may not, during the existence of the company, claim their rights from the partner's share in the company's assets, but may claim them from that partner’s share in the profits. After the liquidation of the company, they may claim their rights from the debtor's share in the company's assets.

2. The personal creditor of a partner may levy a precautionary attachment in the hands of the liquidator over what will develop upon their debtor from the company's assets upon liquidation.

Article 622

A company shall be dissolved upon the expiry of its specified term or the completion of the work for which it was formed. The partners may extend this term after obtaining the approval of the competent authority.

Article 623

1. A company shall be dissolved by the loss of all its assets or of a substantial part thereof, such that there is no benefit in its continuation.

2. If one of the partners has undertaken to contribute a specific thing in kind and that thing perishes before being contributed, the company shall be dissolved with respect to all partners.

Article 624

A company shall be dissolved in the following cases:

1. Unanimous agreement of the partners to dissolve it.

2. Issuance of a judicial judgment ordering its dissolution.

3. Any other case provided by law.

Article 625

A company shall be dissolved upon the death of a partner, their interdiction, their insolvency, or their bankruptcy, with due regard to the following:

1. It may be agreed that, upon the death of any partner, the company shall continue with their heirs, even if they are minors, unless the law provides otherwise.

2. It may be agreed that the company shall continue among the remaining partners if one of them dies, is placed under interdiction, becomes insolvent, or is declared bankrupt. In such a case, this partner or their heirs shall only be entitled to their share in the company's assets. Such share shall be valued according to its value on the date of occurrence of the event that led to their exit from the company and shall be paid in cash. They shall have no share in any subsequent rights arising thereafter, except to the extent that such rights result from transactions prior to that event.

Article 626

A company shall be dissolved by the withdrawal of a partner if its term is not fixed, provided that the withdrawing partner notifies their intention to withdraw to the other partners before the withdrawal, and that their withdrawal is not tainted by fraud or made at a time that would cause harm to the company or the partners, with due regard to the following:

1. It may be agreed that the company shall continue among the remaining partners upon the withdrawal of one of them, and that a new partner may be introduced to replace the withdrawing partner, or that the remaining partners shall acquiring the share of the withdrawing partner, each in proportion to their share or contribution to the capital, unless otherwise agreed.

2. If the company consists of two partners, and in cases where the company is permitted to be formed by a single person, the remaining partner may continue the company after the withdrawal of the other partner, provided that the necessary procedures are taken to convert the company into the new form in accordance with the procedures followed by the competent authorities.

Article 627

The court may order the dissolution of a company at the request of any partner if another partner fails to fulfil their undertaking or for causes substantial harm to the company. Any agreement to the contrary shall be void.

Article 628

1. The partners holding a majority of the capital may request the court to order the exclusion of any partner where serious reasons justifying such exclusion exist.

2. Any partner may request the court to order their withdrawal from the company if the company is for a fixed term, where they provide reasonable grounds therefor.

3. In both of the preceding cases, the provisions of Paragraph (2) of Article (625) of this Law shall apply to the share of the excluded or withdrawing partner. Such share shall be valued according to its value on the date of filing the claim.

Article 629

The assets of the company shall be liquidated and divided in the manner agreed upon by the partners. If they do not agree, any interested party may request the court to appoint one or more liquidators to carry out the liquidation and division, in accordance with the provisions contained in the following Articles.

Article 630

The authority of the managers shall terminate upon the dissolution of the company, and they may not undertake any new act related to the company; otherwise, whoever participates in such act shall be personally and jointly liable with the participating managers, as the case may be.

Article 631

Upon dissolution, the company shall, during the liquidation phase, retain its legal personality to the extent necessary for the purposes of liquidation.

Article 632

1. The liquidation shall be carried out, where applicable, either by all the partners or by one or more liquidators appointed by a majority of the partners.

2. If the partners do not agree on the appointment of the liquidator, the court shall appoint one upon the request of one of them.

3. In cases where the company is void, the court shall appoint the liquidator and determine the method of liquidation upon the request of the interested parties.

4. The manager(s) of the company shall be deemed liquidators, vis-à-vis third parties, until a liquidator is appointed.

Article 633

1. The liquidator may not commence any new acts for the company, unless such acts are necessary for the completion of previous acts.

2. The liquidator shall carry out all liquidation acts, such as preparing an inventory of the company's assets, collecting its receivables, paying its debts, and selling its assets until they become ready for division. The liquidator may sell the company's movable or immovable property by public auction or by private sale, unless their instrument of appointment provides for a restriction on this power.

3. The liquidator, in their capacity as an agent for the partners, shall submit an account of the liquidation works, provide them with the information they request concerning the liquidation, and enable them to inspect the books, records, and documents related thereto.

4. If the liquidator is appointed by a majority of the partners, their remuneration shall be specified. If the liquidator is appointed by a judicial ruling, the appointment ruling shall determine their remuneration. In all cases, the liquidator shall have a first-ranking privilege over all the company's assets.

Article 634

1. The assets of the company shall be divided among all the partners after the creditors have been paid their rights, after deducting the amounts necessary for the settlement of debts that have not yet fallen due or are disputed, and after reimbursing any expenses or loans owed by the company to any of the partners.

2. Each partner shall be entitled to an amount equal to the value of the share contributed thereby to the capital, as stated in the contract, or equal to the value of such share at the time of its contribution if its value is not stated in the contract, unless the partner’s contribution was limited to the provision of services or was limited, in respect of what was contributed, to the mere right of use.

3. If any balance remains thereafter, it shall be divided among the partners in proportion to each partner’s share in the profits.

4. If the net assets of the company are insufficient to cover the partners’ shares, the loss shall be apportioned among them in accordance with the provisions of Article (610) of this Law.

Article 635

The rules governing the division of undivided property shall be followed in the division of companies.

Article 636

A business partnership is a contract whereby two or more persons undertake to perform a service and guarantee its performance to third parties, for remuneration, whether they are equal or unequal in the distribution of services, provided that the works are unified or interrelated.

Article 637

The partners shall be jointly liable for the performance of the services, and each of them shall be entitled to their share of the profit even if they did not perform the services.

Article 638

1. Each partner shall be bound to perform the services undertaken and agreed upon by any of them.

2. Each of them shall be entitled to claim the agreed remuneration, and the employer’s obligation is discharged by payment to any of them.

Article 639

A partner who has undertaken to perform the services may entrust its performance to another partner or to a third party, unless the employer has stipulated that the services must be performed personally by that partner.

Article 640

Profit shall be distributed among the partners in the proportion agreed upon in the partnership contract, without regard to the nature or extent of services performed by each partner. It may be agreed that profit be unequally distributed even if equality in the performance of services is stipulated, and profits shall be due even where an impediment prevents a partner from contributing to the services.

Article 641

Losses shall be apportioned among the partners in proportion to the services undertaken by each of them.

Article 642

If the thing in which the services are to be carried out perishes or becomes defective by the act of one of the partners, the owner of the services may hold any partner of their choice liable for the damage, and the loss shall be divided among the partners in proportion to the extent of each partner’s liability.

Article 643

In a business partnership, it is permissible for the premises to be provided by some partners and the machines and tools by others, just as it is permissible for the premises, machines, and tools to be provided by some of them and the services from others.

Article 644

1. The activity of a business partnership may be confined to carrying and transporting things, and no regard shall be had to any disparity in the means of transport owned by each partner, whether in type and carrying capacity, so long as each partner is liable for the performance of the services.

2. If the activity of the partnership is confined to leasing the means of transport themselves and dividing the fare, the partnership shall be voidable, and the rent of each means of transport shall belong to its owner. Whoever assisted in loading and transport shall be entitled to the remuneration of the like.

Article 645

A professional company is a company established by one or more persons licensed to practice a liberal profession, or thereby with others, and its purpose is to practice that profession, unless the law or the agreement provides otherwise.

Article 646

1. A professional company may be established by persons licensed to practice a liberal profession.

2. A professional company may be established in partnership between persons licensed to practice the profession and a foreign professional company, unless prohibited by the law or an agreement.

3. A professional company may be established in partnership between persons licensed to practice the profession and other natural or legal persons, unless there is a provision in the law or an agreement that prevents it.

Article 647

1. The company may be named after the name or names of its partners or by a distinctive name, with the approval of the Competent Authority.

2. In the event of the withdrawal or death of the partner after whom the company is named or whose name or surname is included in its name, the company's name shall be amended in the records of the Competent Authority; however, the professional company may continue to bear their name or include it in its name with their written consent or the written consent of their heirs, as the case may be.

Article 648

1. The professional company shall practice the profession that is its activity through the licensed partners.

2. The professional company may engage other persons licensed to practice the profession that constitutes its activity, provided that they are subject to the supervision of and responsibility of the company.

Article 649

A partner may not assign, sell, or pledge their shares in the professional company except with the approval of the majority of the partners.

Article 650

A partner may not be a founder or a partner in more than one professional company or be employed by another professional company.

Article 651

1. Each partner shall be personally liable for their professional faults towards the professional company and the rest of the partners, and the professional company shall be liable for the faults of the partners vis-à-vis third parties.

2. The professional company shall be liable for any act or conduct carried out by the manager or managers in the ordinary course of management, and shall also be liable for any act carried out by one of its employees or agents whenever such person has the authority to act on its behalf, and the third party has relied on such authorization in dealing with it.

3. Any provision contained in the articles of association of a professional company that permits the approval of the exemption of any person from any personal liability borne thereby in their capacity as a current or former manager in the professional company shall be void.

Article 652

If a partner in a professional company temporarily loses their license to practice the profession, or if a disciplinary or criminal judgment is issued against them preventing them from working for a temporary period, they shall refrain from working in the company until the end of the suspension period and the removal of the cause thereof.

Article 653

1. If a partner in a professional company loses their license to practice the profession on a permanent basis, they shall be deemed to have withdrawn from the professional company by operation of law, while retaining their share of the proceeds of the contracts concluded with the clients of the professional company until the issuance of the financial statements for the fiscal year following the loss of such license.

2. If one of the founding partners or shareholders in the professional company dies, or a judgment is rendered declaring their insolvency or bankruptcy, the professional company shall continue to exist among the remaining partners. The share of the partner shall devolve to their heirs after its valuation on the date of death, and the heirs shall also be entitled to any rights accruing to the company, if they result from contracts concluded prior to the death of their decedent, and up to a maximum of the issuance of the financial statements for the fiscal year following the date of death.

3. It may be provided in the articles of association of the professional company or in a special agreement between the heirs of the partner and the remaining partners in the professional company that one of the heirs shall replace the decedent in their share in the professional company, unless there is a provision that prevents it.

Article 654

In addition to the general reasons for the dissolution of companies contained in this Law, a professional company shall be dissolved by a decision of the Competent Authority if all partners cease to meet the conditions for practicing the profession.

Article 655

Mudaraba is a contract under which a capital provider delivers funds to another who undertakes to invest them in return for a proportional share of the profit.

Article 656

1. The Mudaraba capital may be a debt owed by the mudarib to the capital provider.

2. If the capital provided by the capital provider for the purposes of the mudaraba consists of assets other than cash, the capital shall be the value of what is contributed at the time of contracting, or such value as the contracting parties agree upon as appropriate basis for its valuation.

Article 657

The capital provider is obligated to deliver the Mudaraba capital to the mudarib and to enable them to manage and dispose thereof.

Article 658

The mudarib shall have the right of management and disposal after delivery of the capital, in accordance with the provisions set forth in this Law, subject to the terms of the Mudaraba contract.

Article 659

The mudarib shall provide the capital provider with information related to the Mudaraba activities and shall render an account thereof at the end of its term. If the contract is for an indefinite term, this information shall be provided at the end of each year, unless otherwise agreed.

Article 660

1. If the Mudaraba contract is restricted by time, place, type of work, or otherwise, the mudarib shall be bound by the restrictions imposed by the contract.

2. If the Mudaraba contract is unrestricted, the mudarib shall be authorized to carry out the work in accordance with the prevailing custom.

Article 661

1. The mudarib may not mix the Mudaraba capital with their own funds, nor entrust it to another for Mudaraba, unless the custom so permits or the capital provider has authorized them to act as they see fit.

2. In cases where the mudarib is permitted to mix the Mudaraba capital with their funds, the profit attributable to each capital shall be calculated in proportion to its ratio in the mixed funds, and the share due to the Mudaraba capital shall be distributed between the contracting parties according to the provisions of this chapter.

Article 662

1. The capital provider alone shall bear any loss of capital, and any condition to the contrary shall be void.

2. If the capital is diminished in the hands of the mudarib without any transgression or negligence on their part, they shall not be liable to compensate the capital provider for the loss.

3. If the mudarib commits any transgression or negligence, they shall be liable to compensate the capital provider for the loss of capital and for any damage resulting therefrom.

Article 663

1. The share of each of the contracting parties in the profit shall be determined according to the agreement.

2. If there is no agreement on determining the share of each of the contracting parties in the profit, it shall be determined in accordance with the prevailing custom, and either contracting party may, in this case, terminate the Mudaraba contract in accordance with Article (667) of this Law.

Article 664

1. It is not permissible in the Mudaraba contract to stipulate a fixed amount of profit for one of the contracting parties.

2. It is permissible to agree that the profit shall be shared between the contracting parties and that any amount exceeding a certain limit shall be allocated exclusively to one of them, or to agree that the share of each of them in the profit shall vary according to the profit realized by the Mudaraba, based on valid criteria for its determination.

3. It is permissible to agree that one of the contracting parties shall be entitled to a specific remuneration in return for a specific service, in addition to their entitlement to their share of the profit.

Article 665

1. A contracting party is entitled to their share of the profit upon the expiration of the Mudaraba, unless it is agreed to value the Mudaraba and determine the entitlement of each of the contracting parties at specific intervals while the Mudaraba continues, and it shall be presumed that what is distributed during the Mudaraba constitutes profit.

2. A contracting party may not take their share of the profit before it is due without the consent of the other.

Article 666

The Mudaraba contract expires upon the lapse of its term if the contract is for a fixed term, or upon the completion of the work for which the Mudaraba was contracted.

Article 667

1. If the Mudaraba contract is for an indefinite term, either contracting party may withdraw from it at any time, provided that they inform the other contracting party of their intention to withdraw a reasonable period in advance, and that the withdrawal is not in bad faith or at an inappropriate time.

2. If the Mudaraba contract is for a fixed term, a contracting party may not withdraw from it before the lapse of the term, but may request this from the court if they present acceptable reasons, provided that they compensate the other contracting party for any harm caused thereby.

Article 668

1. The mudarib shall, upon the termination of the Mudaraba contract, complete the works already commenced to a state in which the Mudaraba funds or their profits are not exposed to perishing or diminution.

2. The mudarib may not dispose of the Mudaraba funds after the termination of the Mudaraba contract. If they are other than cash, the mudarib shall convert them into cash, unless the agreement or the nature of the transaction requires otherwise.

Article 669

1. The mudarib is obligated, upon the termination of the Mudaraba contract, to return to the capital provider’s share of the Mudaraba funds.

2. If the mudarib delays the return without an acceptable justification and the capital decreases, they shall bear the loss; and if profit is realized, the capital provider shall be entitled to compensation equivalent to the capital would have earned until its return.

Article 670

1. The Mudaraba contract shall terminate upon the death of either of the contracting parties, their interdiction, insolvency, or the initiation of liquidation proceedings against them.

2. If the Mudaraba contract terminates upon the death of the mudarib, their heirs, if they have the legal capacity, or their representative, provided that they are aware of the Mudaraba, shall promptly inform the capital provider of the death of their decedent and take the measures required by the circumstances to preserve the capital.

Article 671

A settlement is a contract by which the two parties resolve an existing dispute or prevent a potential dispute, by each of them mutually waiving part of their claim.

Article 672

1. A person who concludes a settlement shall have the capacity to dispose, for consideration, of the rights covered by the settlement contract.

2. The capacity for donation is required if the settlement includes the waiver of any of the rights.

Article 673

The settlement made by an authorized discerning minor or an authorized person suffering from mental incapacity, shall be valid, provided that it does not involve manifest prejudice. The same rule applies to the settlement by guardians, tutors, and curators, taking into account the provisions of special laws.

Article 674

Settlement is not permissible in matters related to personal status or public order, but settlement is permissible in respect of financial rights arising from personal status, or arising from the commission of one of the crimes in accordance with the applicable laws.

Article 675

The proof of settlement shall be made in accordance with the general rules of evidence in the applicable legislation.

Article 676

1. It is required that the subject matter of the settlement be something in respect of which a consideration may lawfully be taken in exchange.

2. It is required that both the subject matter of the settlement and the consideration thereof be known.

3. If the consideration for the settlement is a specific thing or a usufruct owned by a third party, the effectiveness of the settlement depends on the ratification of that third party.

Article 677

1. A settlement in respect of rights is valid whether the defendant admits them, denies them, or remains silent and expresses neither admission nor denial.

2. If the settlement occurs in the case of an admission for a specific consideration paid by the admitting party, it shall be deemed a sale, and if it is for a usufruct, it shall be deemed a lease.

3. If the settlement occurs upon denial or silence, it is considered a commutative transaction with respect to the claimant, and with respect to the defendant a redemption from the oath and a termination of the dispute.

Article 678

If a person settles for part of the claim or for a portion of what they allege is owed by another, they shall be deemed to have waived their right to claim the remainder.

Article 679

1. If two persons settle, each claiming a specific thing in the possession of the other, on the condition that each retains the thing in their possession, the settlement shall be governed by the rules of barter, and its validity shall not depend on knowledge of the value of the two considerations.

2. The provisions of the contract most closely resembling the settlement in terms of its validity and the effects arising therefrom shall apply to the settlement.

Article 680

The settlement entails the transfer of the right of the settling party to the agreed consideration and the extinction of their right that was the subject of the dispute, and it is not permissible for either of them or their heirs thereafter to revoke it.

Article 681

The settlement terminates the disputes it covered, and it entails the extinction of the rights and of claims that either of the contracting parties has definitively waived.

Article 682

The effect of the settlement is limited to the rights it covered and the resolution of the dispute therein, and does not extend to any other matters.

Article 683

The two parties to a settlement may rescind it by mutual consent if it is in the nature of a commutative transaction, and it may not be mutually rescinded if it involves a waiver of some rights.

Article 684

A settlement is indivisible, so the invalidity of a part of it entails the invalidity of the entire contract, unless it is clear from the contract's expressions, or from the circumstances, that the contracting parties have agreed that the parts of the contract are independent of each other.

Article 685

A lease is a contract whereby the lessor undertakes to enable the lessee to benefit from a specific thing for a specific period in return for a known rent.

Article 686

The legal capacity of the contracting parties at the time of the contract is required for the conclusion of a lease.

Article 687

1. For a lease contract to be effective, the lessor or their representative shall have the right to dispose of what they lease.

2. A lease concluded by a negotiorum gestor is suspended pending ratification by the holder of the right of disposition, subject to the conditions required for such ratification.

Article 688

The subject matter of a lease is the usufruct, and its delivery is effected by the delivery of its subject matter.

Article 689

The usufruct which is the subject matter of the contract shall be subject to the following conditions:

1. It shall be capable of being enjoyed.

2. It shall be sufficiently known to resolve any dispute.

Article 690

The thing from which the usufruct is to be derived shall be known whether by inspection, by mentioning its designated location, or by a clear description; otherwise, the contract shall be void.

Article 691

The lease term shall commence from the date agreed upon in the contract. If the contracting parties do not specify such date, then from the date of the contract.

Article 692

1. The lease term shall be specified.

2. If a lease is concluded without an agreement on a term, or for an unspecified term, or if the claimed term cannot be proven, the lease shall be deemed concluded for the period specified for the payment of the rent, and it shall terminate upon the expiry of this period at the request of one of the contracting parties, provided that the contracting party has notified the other contracting party of his unwillingness to renew.

Article 693

If the lease contract expires and the lessee remains in enjoyment of the leased property with the knowledge of the lessor and without their objection, the lease shall be deemed renewed under its original terms and for a similar term.

Article 694

It is permissible to extend a lease to a future term, and it shall be binding by virtue of the contract, unless the leased property is an endowment property or belongs to a minor or a person of similar status, in which case its addition to a future term exceeding one year from the date of the contract shall not be valid.

Article 695

If the lease term expires and a pressing necessity for its extension is proven, the court may extend it to the extent of the necessity, provided that the lessee pays the rent of the like in respect thereof.

Article 696

1. The rent may be in cash, in kind, a debt, or a usufruct.

2. It is required that the rent be known, by specifying its type and amount if it is cash, and by stating its type, description, and specifying its amount if it is not cash.

3. If the rent is unknown, the lease may be rescinded, and the rent of the like shall be due for the period elapsed prior to rescission.

Article 697

It is permissible to agree on the advance payment, deferral, or payment of the rent in instalments to be paid at specified times.

Article 698

1. Rent shall become due upon enjoyment of the usufruct or upon the ability to enjoy it.

2. If the contract does not specify a time for payment of the rent, the rent specified for the usufruct shall be due absolutely after the enjoyment of the usufruct or after the realization of the ability to enjoy it.

3. The rent due for a time unit shall follow the custom regarding its payment dates; otherwise, the court shall determine them at the request of the interested party.

Article 699

Rent is not due for a period that has elapsed before the delivery of the leased property, unless the lessee was the cause thereof.

Article 700

1. The lessor shall deliver to the lessee the leased property and its appurtenances in a condition fit for the full enjoyment of the intended usufruct, in accordance with the agreement or the nature of the leased property.

2. Delivery shall be effected by enabling the lessee to take possession of the leased property without any impediment obstructing enjoyment thereof, with the property remaining continuously in their possession until the lease term expires.

Article 701

If the leased property is delivered in a condition that renders it unfit for the enjoyment for which it was leased, or if such enjoyment is substantially diminished, the lessee may request the rescission of the contract or a reduction of the rent in proportion to the diminished enjoyment, with compensation in both cases where justified.

Article 702

The lessor may refrain from delivering the leased property until the advance rent is paid.

Article 703

1. If a lease is concluded for a lump-sum rent and the number of units of the leased property is stated without specifying the rent for each unit, and the units are found to be more or fewer, the rent shall be the amount specified in the contract, with no increase or reduction. In the event of a deficiency, the lessee shall have the option to rescind the contract.

2. If the contract specifies a rent for each unit, the lessee shall be bound by the specified rent for the additional units, and the lessor shall be bound to reduce the specified rent for the missing units. The lessee shall have the option to rescind in both cases.

3. If the amount of the deficiency or excess is minor and has no effect on the intended usufruct, the lessee shall have no option.

Article 704

The provisions governing the obligation to deliver the sold property shall apply to the obligation to deliver the leased property and its appurtenances, unless otherwise agreed.

Article 705

1. The lessor shall be obligated to maintain the leased property so that it remains in a condition fit for the intended usufruct and shall, during the lease term, carry out all necessary repairs in accordance with custom, unless otherwise agreed.

2. If the lessor, after being notified, delays in performing the obligations set out in Paragraph

(1) of this Article, the lessee may obtain authorization from the court to carry out the repairs themselves and recover the amounts spent by deducting them from the rent, without prejudice to their right to request rescission or a reduction of rent.

3. The lessee may, without need for court authorization, carry out urgent or minor repairs for which the lessor is responsible, whether the defect existed at the commencement of enjoyment or occurred thereafter, if the lessor fails to perform this obligation within a reasonable time after being notified, on the condition that they recover what they have spent by deducting it from the rent.

Article 706

1. If the leased property perishes completely during the lease, the contract shall be rescinded ipso facto.

2. If the leased property perishes partially or becomes unfit for the usufruct for which it was leased, or if such enjoyment is substantially diminished and the lessee had no part therein, the lessee may, if the lessor does not, within a reasonable time, restore the property to its original condition, request from the court, according to the circumstances, either a reduction of rent or the rescission of the lease, without prejudice to their right to perform the lessor's obligation themselves in accordance with the provisions of Article (705) of this Law.

3. The lessee, in the two preceding cases, may not claim compensation if the perishing or damage is due to a cause for which the lessor is not responsible.

Article 707

1. The lessee may not prevent the lessor from carrying out repairs that are necessary for the preservation of the leased property, but if such repairs cause a total or partial impairment of the enjoyment of the property, the lessee may, according to the circumstances, request either the rescission of the lease or a reduction of rent.

2. If the lessee remains in the leased property until the repairs are completed, their right to request rescission shall lapse.

Article 708

1. The lessor shall be obligated to refrain from any act that would prevent the lessee from enjoying the leased property, and may not make any change to the property or its appurtenances that would impair such enjoyment.

2. The lessor's warranty is not limited to acts committed thereby or by their subordinates but extends to any disturbance or damage based on a legal cause committed by any other lessee or by any person who has received rights from the lessor.

Article 709

1. If the lessee, with the lessor's permission, carries out constructions or repairs for the benefit or maintenance of the leased property, they shall have recourse against the lessor for what they spent within the customary limits, even if no recourse was stipulated.

2. If what the lessee has carried out is for their personal benefit, they shall have no recourse against the lessor, unless otherwise agreed.

Article 710

1. If a third party claims a right that conflicts with the rights of the lessee under the lease contract, the lessee shall promptly notify the lessor thereof and may request to be removed from the lawsuit, in which case the legal proceedings shall be directed against the lessor.

2. If such claim results in depriving the lessee of the enjoyment of the leased property, they may, according to the circumstances, request the court to order either rescission or a reduction of the rent with compensation if justified.

Article 711

1. If there are multiple lessees for a single property, preference shall be given to the one who first took possession of it without fraud or collusion, unless one of the lessees' contracts has a fixed date and was concluded in good faith before another lessee took possession of the leased property or before the renewal of their lease, in which case such lessee shall be preferred.

2. If there is no reason to prefer one of the lessees, they shall have no recourse for their conflicting rights other than to claim compensation.

Article 712

If an act is issued by the competent authorities that prevents the lessee's enjoyment of the leased property wholly or partially in a manner that affects the intended usufruct, the lessee may request the rescission of the contract or a reduction of rent, without prejudice to the lessee's right to claim compensation from the lessor if the act of the competent authority was issued for a reason for which the lessor is responsible.

Article 713

1. The lessor does not warrant the lessee against material disturbance if it originates from a third party, as long as the disturber does not claim a right, and the lessee may bring, in their own name, a claim for compensation and possessory lawsuits against the disturber.

2. If the material disturbance is not attributable to the lessee and is of such gravity that it deprives the lessee of the enjoyment of the leased property, the lessee may, according to the circumstances, request the court to rescind the contract or reduce the rent.

Article 714

1. The lessor warrants the lessee against any defects in the leased property that prevent or substantially diminish its enjoyment, and does not warrant defects that are customarily tolerated.

2. If a defect results in depriving the lessee of the enjoyment of the leased property, they may request rescission or a reduction of rent, with a warranty for any damages incurred.

3. The lessor does not warrant a defect if the lessee was aware of it at the time of contracting or could have easily become aware thereof.

Article 715

Any agreement providing for exemption or limitation of the warranty against disturbance or defects is void if the lessor has fraudulently concealed the cause of such warranty.

Article 716

1. The leased property is a trust held by the lessee, who shall be liable for any deficiency, damage, or loss resulting from a cause attributable thereto, and they shall preserve it with the care of an ordinary person.

2. If there are multiple lessees, each shall be liable for damages arising from their own act, unless the law provides otherwise.

Article 717

The lessee is obligated to use the leased property in the manner agreed upon; if there is no agreement, the lessee is obligated to use the property according to the purpose for which it was prepared.

Article 718

1. The lessee may not make any change to the leased property without the lessor's permission, unless it is necessary for its repair and does not cause harm to it.

2. If the lessee exceeds this prohibition, they shall be obligated to restore the leased property to the original condition, with compensation where justified.

Article 719

1. The lessee is obligated to carry out minor repairs customarily required, unless otherwise agreed.

2. The lessee is obligated during the lease term to clean the leased property and remove any accumulated dust or waste, in accordance with custom.

Article 720

The lessee shall refrain from any act that leads to the destruction or alteration of the leased property or the placement of machines or equipment that harm it or diminish its value. Should the Lessee fail to so refrain, the lessor may apply to the court for the rescission of the contract and for compensation for the damage caused by such act.

Article 721

The lessee shall promptly notify the lessor of any matter that requires their intervention, such as if the property needs urgent repairs, a defect is discovered, an usurpation occurs, or a third party commits a disturbance or causes damage thereto, unless the lessee proves that the lessor knew or was necessarily presumed to have known thereof.

Article 722

The lessee shall pay the rent at the agreed times. If there is no agreement, the rent shall be paid at the times determined by custom.

Article 723

1. The lessor shall, as security for any right arising under the lease contract, have the right to retain the attachable movables that are present in the leased property, as long as they are encumbered by the statutory privilege of the lessor, even if they are not owned by the lessee. The lessor shall also have the right to object to their removal, and if they are removed despite the lessor’s objection or without their knowledge, they shall have the right to recover them from their possessor, even if acting in good faith, without prejudice to any rights such possessor may have.

2. The lessor may not exercise their right of retention or recovery if the removal of these items is required by the lessee's profession or by the ordinary course of life, or if the movables left in the leased property are sufficient to secure the rent.

Article 724

1. The lessee shall return the leased property upon the expiry of the lease. If they retain it under their possession without right, they shall be obligated to pay the lessor the rent of the like (ujrat al-mithl) for the period of use and shall also be liable for any harm to the leased property and for any expenses borne by the lessor that are chargeable to the lessee.

2. The leased property shall be returned in the state in which the lessee received it, except for what may have befallen it from destruction or damage due to a cause not attributable to them.

Article 725

1. If the lessee introduces to the leased property any construction, planting, or other improvements that increase its value, with the lessor's consent, the lessor shall be obligated to reimburse the lessee, upon the expiration of the lease, for the amount spent on such improvements or for the amount by which the value of the property has increased, unless otherwise agreed.

2. If such improvements were made without the lessor's knowledge or despite their objection, the lessor may require the lessee to remove them, together with compensation if justified.

Article 726

If the lessor requests a specific increase in the specified rent from the lessee after the expiry of the lease term, the lessee shall be deemed to have accepted the increase if the term expires and they remain in possession of the leased property without objection.

Article 727

If the lessee assigns the contract with the lessor's consent, the new lessee shall replace the original lessee in all rights and obligations arising under the original contract.

Article 728

If the lease pertains to a property in which a factory or a shop has been established, and necessity requires the lessee to sell this factory or shop, the court may order the continuation of the lease if the purchaser provides a sufficient security and the lessor suffers no actual harm therefrom.

Article 729

1. The lessee may not assign the lease contract or sublease the leased property, whether in whole or in part, except with the written consent of the lessor. The lessor's subsequent consent to the assignment of the lease contract or the subleasing of the leased property, whether express or implied, shall have the same effect as prior written authorization for the act.

2. The lessor may grant the lessee in the lease contract the right to assign the contract or sublease the leased property. In the case of subleasing, the terms of the sublease contract may differ from the terms of the original contract, provided they do not conflict therewith, and the term of the sublease contract shall not exceed the term specified in the original contract.

3. If the lessee subleases the leased property, the sublease contract shall govern the relationship between the lessee and the sublessee, and the sublease shall not affect the rights and obligations of the lessee toward the lessor under the original lease contract.

4. If the lease contract concluded with the original lessee is rescinded or terminated, the lessor shall have the right to terminate the contract concluded between the original lessee and the sublessee and to recover the leased property.

Article 730

The lease contract shall terminate upon the expiration of the period specified in the contract without the need for a notice to vacate, unless the law or the agreement provides otherwise.

Article 731

1. If the lease contract expires and the lessee continues to enjoy the leased property with the lessor's knowledge and without their objection, the lease shall be deemed to have been renewed under its original terms for a period of one year, unless the lease term was shorter than that.

2. This renewal shall be deemed a new lease, not merely an extension of the original lease. However, the real (in rem) securities that the lessee provided in the old lease shall transfer to the new lease. As for personal or real suretyship, it shall not transfer to the new lease unless the surety agrees thereto.

Article 732

1. If the lessor notifies the lessee of eviction, and the lessee nevertheless continues to benefit from the leased property after the expiration of the lease contract, renewal of the lease shall not be presumed unless proven otherwise.

2. If the lessor notifies the lessee to vacate unless the latter accepts a new rent or other new terms, and the lessee remains silent, such silence shall be deemed acceptance, and the lease shall be renewed implicitly under the new rent or terms.

Article 733

1. A lease shall not terminate upon the death of the lessor, nor upon the death of the lessee.

2. If the lessee dies, their heirs may request the termination of the contract if they prove that, due to the death of their decedent, the obligations of the contract have become beyond their financial capacity or that the lease exceeds their needs.

Article 734

If the lease was concluded only due to the lessee's profession or for other reasons related to their personal qualifications and they then die, their heirs or the lessor may request the termination of the contract.

Article 735

1. The insolvency or bankruptcy of the lessee shall not cause rent that is not yet due to become payable.

2. If the lessee becomes insolvent or bankrupt, the lessor may request the rescission of the lease contract if adequate security is not provided to secure the payment of rent that has not yet fallen due.

3. The lessee, if they become insolvent or bankrupt, and are not authorized under the lease contract to assign the contract or to sublet, may apply to the court for rescission of the lease contract. In this case, the lessor shall be entitled to fair compensation.

Article 736

1. If the ownership of the leased property is transferred to a particular successor, the lease shall not be effective against them, unless it is proven that they were aware of it, or that it had a fixed date prior to the cause that led to the transfer of ownership.

2. The person to whom ownership has been transferred may uphold the lease contract even if this contract is not effective against them.

Article 737

1. If the leased property is sold without the permission of the lessee, the sale is effective between the seller and the purchaser, but this does not affect the rights of the lessee.

2. If the lessee authorizes or approves the sale, the sale shall be effective against them and they shall be obligated to deliver the leased property, unless they have paid the rent in advance, in which case they shall have the right to retain possession of the leased property until they recover the equivalent of the rent for the remaining period during which they have not benefited.

Article 738

1. Either of the contracting parties may, for a supervening excuse relating thereto, request the termination of the lease contract, in which case they shall be liable for any damage arising from such termination to the other contracting party within the limits recognized by custom.

2. If the lessor is the one who requests the termination of the contract, the lessee shall not be compelled to return the leased property until they receive the compensation or obtain sufficient security.

Article 739

A lease contract shall be rescinded if the lessee uses the leased property in a manner that violates public order or public morals.

Article 740

1. Agricultural land may be leased, with a statement of what is to be cultivated therein, or by granting the lessee the option to cultivate whatever they wish.

2. A person who leases land to cultivate whatever they wish may cultivate it throughout all seasons of the year, unless otherwise agreed.

Article 741

It is not permissible to lease land occupied by immature crops to another party if it was lawfully planted, unless the lessee is the owner of the crops.

Article 742

A lease of land occupied by crops is permissible, and its owner shall be required to uproot and deliver it to the lessee in the following cases:

1. If it was lawfully planted and the crops are mature at the time of the lease.

2. If it was planted without right, whether the crops are mature or not.

Article 743

A lease of land occupied by crops is permissible as a deferred lease to a time when the land becomes vacant.

Article 744

1. If a person leases land for agriculture purposes, the lease shall include the land and its appurtenances and accessories.

2. The lease of agricultural land shall not include livestock, tools, and agricultural machinery, or anything not permanently affixed to the land, unless otherwise agreed.

3. If the contract includes the lease of livestock, tools, agricultural machinery, and other items, the lessee shall be obligated to care thereof and maintain them, and to use them in accordance with the ordinary practice.

Article 745

If the term of the lease of land expires before the crops have matured for a reason not attributable to the lessee, the contract shall be extended for a rent equivalent to the like until the crops mature and are harvested.

Article 746

The lessee shall exploit the agricultural land in accordance with the requirements of customary exploitation, and shall work to keep the land productive, and may not change the method of its use in a way the effect of which extends beyond the expiry of the lease contract.

Article 747

The lessor shall undertake the repairs upon which the realization of the intended benefit depends, and the lessee shall undertake the repairs required by the customary use of the land and the maintenance of irrigation equipment, drains, roads, culverts, and wells, unless there is an agreement or custom to the contrary.

Article 748

If the leased land is overcome by water to the extent that its cultivation becomes impossible, or if water is cut off therefrom and its irrigation becomes impossible or excessively costly, or if force majeure prevents its cultivation, the lessee may rescind the contract and shall not be liable for the rent, unless there is an agreement or custom to the contrary.

Article 749

1. If the crops perish before harvesting due to force majeure, the lessee shall be entitled to request remission of the rent.

2. If part of the crops perishes due to force majeure and such loss results in a substantial reduction in the yield of the land, the lessee shall be entitled to request a reduction of the rent.

3. The contract may not be rescinded, nor may the rent be remitted or reduced, if the lessee has been compensated for the damage sustained, whether by profits gained during the entire lease term, by insurance proceeds, or by any other means.

Article 750

1. Sharecropping is a contract under which agricultural land is exploited jointly between the provider of the land and another party who undertakes its cultivation, on the basis that the produce shall be shared between them in the agreed-upon shares.

2. Subject to the following provisions, the provisions governing lease contract shall apply to sharecropping, unless there is an agreement or custom to the contrary.

Article 751

In sharecropping, the cultivation period shall be specified; if it is not specified, the period shall be one agricultural cycle.

Article 752

For the validity of a sharecropping contract, the following shall be required:

1. The land shall be known, defined, and suitable for cultivation.

2. The type of crop and the genus of the seed shall be specified, or the option shall be left to the farmer to plant whatever they wish.

3. The share of each of the two parties in the produce shall be determined as an undivided proportional share.

Article 753

1. It is not permissible for the share of one of the contracting parties to be a specified quantity of the produce, or the produce of a specific part of the land, or anything other than the agricultural yields.

2. The yield shall be distributed between the two parties in the agreed-upon proportion or in the proportion determined by custom; if there is no agreement or custom, each of them shall have half of the yield.

3. If all or part of the yield perishes due to force majeure, both parties shall bear the risk of such loss, and neither shall have recourse against the other.

Article 754

The farmer may not substitute another in their place in the sharecropping contract, nor associate another with them therein, except with the consent of the landowner. If they breach this obligation, the landowner may rescind the contract or claim compensation from the farmer.

Article 755

1. The farmer shall bear the expenses of cultivation and preservation of the crop until its harvest, and shall be responsible for the maintenance of tools and the customary repairs to buildings, unless otherwise agreed.

2. The landowner shall bear the expenses of non-routine repairs and improvements necessary for the land, unless otherwise agreed.

3. Both parties shall bear, each according to their share in the yield, the costs of seeds, fertilizers, pesticides, and harvesting and what follows until division, unless otherwise agreed.

Article 756

1. A sharecropping contract shall not include the machinery, agricultural tools, and livestock present on the land at the time of contracting, unless it is so agreed.

2. If the farmer (sharecropper) takes delivery of the agricultural land, livestock, machinery, and agricultural equipment from the landowner, they shall care for and maintain them in accordance with the customary use.

Article 757

1. The farmer shall exercise in cultivation and in the preservation of the crop the care they exercise in managing their own property, and they shall be liable for any damage that befalls the land during the period of use, unless they prove that they exercised in its preservation and maintenance the care of an ordinary person.

2. The farmer (sharecropper) shall not be obliged to compensate the landowner for any livestock that perishes or any agricultural tools that wear out, provided that this occurs without any fault or negligence on the farmer’s part.

Article 758

1. The land provider shall deliver it fit for cultivation, with its appurtenances and accessories and what is designated for its exploitation, provided that such item is permanently affixed thereto.

2. The land provider is obliged to repair the agricultural tools that they shall deliver fit for work, if they require repair as a result of customary use.

Article 759

1. If the sharecropping land is subject to an entitlement after it has been planted and before the crops are harvested, and both contracting parties were acting in good faith and unaware of the cause of the entitlement, they may keep the land under sharecropping until the end of the season for what was planted, and the land provider shall owe a rent of the like to the entitled party.

2. If both were acting in bad faith, the entitled party may uproot the crops and take their land free of any encumbrance, and shall owe nothing to either of them.

3. If the land provider alone was acting in bad faith and the entitled party does not agree to leave the land thereto for a remuneration of the like until the end of the season, the following shall apply:

a. If the seeds were provided by the land provider, they shall be liable to pay the farmer (sharecropper) remuneration of the like, along with compensation equivalent to what they spent in money, remuneration for labourers, and similar expenses, to the customary extent, if the contract binds them to bear such expenditures. The land provider may avoid this liability by paying the farmer (sharecropper) the value of their share of the crops as standing, not uprooted, until ripening.

b. If the seeds were provided by the farmer (tenant farmer), they shall be entitled, as against the land provider, to the value of their share of the crops, valued as standing until ripening.

c. The farmer, in both cases, whether the seeds were provided thereby or by the land provider, may choose to take their share of the crops uprooted, in which case they shall have no further claim.

Article 760

A sharecropping contract shall not terminate upon the death of the landowner, but shall terminate upon the death of the farmer.

Article 761

1. If the sharecropping contract terminates before the end of its term, the farmer or their heirs shall be reimbursed for what they spent on the crops that have not yet been harvested, along with fair compensation for the work performed by the farmer.

2. If the sharecropping contract terminates upon the death of the farmer, their heirs may, in lieu of exercising their right to recover the aforesaid expenses, replace their decedent until the crops ripen, provided they are able to do so.

Article 762

1. If the sharecropping contract is rescinded, or is found to be void, or is annulled, all the produce shall belong to the owner of the seed. If the owner of the seed is the landowner, the farmer (sharecropper) shall be entitled to a remuneration of the like. If the owner of the seed is the farmer (tenant farmer), the landowner shall be entitled to a fair rent for the land.

2. In either case, such remuneration or rent shall not exceed the value of the owner's share of the produce.

Article 763

Musaqah is a contract between a laborer and an owner of trees or plants, whereby the laborer undertakes to tend to the trees or plants for a specific period in return for a shared portion of the yield.

Article 764

For a Musaqah contract to be valid, it is required that the share of each of the two contracting parties in the yield be determined as an undivided proportional share.

Article 765

1. If the term for the Musaqah is not specified in the contract, it shall extend to the first yield obtained in the first agricultural cycle, unless custom provides otherwise.

2. If a term is specified in the contract during which fruit is likely to appear but does not appear at all, neither of the contracting parties shall be entitled to anything from the other.

Article 766

The following provisions shall apply to the works and expenses required for the Musaqah, unless otherwise agreed:

1. The works required for tending to the trees, growing and enhancing the yield, and preserving it until ripening, such as irrigation, pollination, and pruning, shall be the responsibility of the Musaqi (worker). As for fixed works that are not repeated each year, such as digging wells and building storage facilities for preserving the yield, they shall be the responsibility of the owner of the trees or crops.

2. The financial expenses required for customary use and care, such as the price of fertilizer and pesticides for combating pests until the ripening of the yield, shall be borne by the owner of the trees or crops.

3. The expenses required after the ripening of the yield, such as picking and storage costs, shall be borne by both parties, each according to their share in the yield.

Article 767

The Musaqi may not substitute another in the Musaqah to another without the permission of the owner of the trees or crops. If they do so, the owner of the trees or crops shall have the option to either take all the yield and give the person who performed the work a rent for the like of their work, or leave the yield to them both and have recourse against the first Musaqi for a rent for the like of the Musaqah subject matter, and hold them liable for any damage they incurred due to their action.

Article 768

If the trees, fruit, or crops are subject to an entitlement, and the contracting parties in the Musaqah or one of them had expended or performed work that had an effect on the growth of the trees, fruit, or crops, the following shall apply as the case may be:

1. If the rightful owner ratifies the Musaqah contract, they shall replace the provider of the trees or crops vis-à-vis the Musaqi in all rights and obligations arising from the contract, and the rightful owner shall pay to the provider of the trees or crops the equivalent of what they spent in useful expenses according to custom.

2. If the rightful owner does not ratify the contract and the Musaqah was contracted in good faith without either party being aware of the cause of the entitlement, the rightful owner shall have the option to either take what they are entitled to and pay the Musaqi a rent for the like and pay to the provider of the trees or crops what they spent in useful expenses according to custom, or to leave the yield to them until the end of its season and take from the provider of the trees or crops fair compensation according to custom for what they missed in benefit due to this waiting period.

3. If the contracting parties in the Musaqah were acting in bad faith at the time of contracting, the rightful owner may take what they are entitled to and shall owe nothing to either of them.

4. If one of them was acting in bad faith and the other was of good faith, the one of good faith shall be entitled to fair compensation from the rightful owner according to custom for what the trees, fruit, or crops benefited from their expenditure or work.

Article 769

1. The Musaqah shall not extinct upon the death of the owner of the trees or crops, and their heirs may not prevent the Musaqi from continuing the performance their work in accordance with the contract.

2. If the Musaqi dies, their heirs shall have the option to rescind the contract or to continue the work. If they choose to rescind and the fruits have not yet ripened, they shall be entitled, upon their ripening, to their decedent's share in proportion to the work performed by the Musaqi until their death.

3. If it was stipulated that the Musaqi shall perform the work personally, the Musaqah shall be rescinded upon their death, and their heirs shall be entitled, upon the ripening of the fruits, to the share that their decedent would have been entitled to, in proportion to the work performed thereby.

Article 770

The owner of the trees or crops may rescind the contract if the Musaqi become unable to perform the work or is proven to be untrustworthy in relation to the fruits, and the Musaqi shall be entitled to a wage of the like for the period preceding the rescission.

Article 771

If the Musaqi fails to perform the work stipulated in the contract or customarily, required, their share in the yield shall be reduced in proportion to the extent of their failure to perform the work.

Article 772

The provisions of a sharecropping contract shall apply to a Musaqah contract in matters not expressly provided for in the preceding texts.

Article 773

Mugharasah is a contract whereby the owner of agricultural land agrees with another to deliver the land to them in order to reclaim it, plant it, cultivate the seedlings, care for them, and establish the necessary means for that, on the condition that thereafter the land, the planted trees, and the appurtenant constructions shall be shared between them as the agreement provides.

Article 774

For a Mugharasah contract to be valid, the following conditions shall be required:

1. The Mugharasah shall be in respect of permanent trees, not for crops planted annually.

2. The type of trees to be planted in the land shall be specified at the time of the contract.

3. The partnership in both the land and trees together shall be in a specific proportion.

4. The commencement of the partnership in the trees and land shall be determined by the tree reaching a certain degree of growth before bearing fruit.

Article 775

1. If the Mugharasah terminates without achieving its intended purpose, the owner of the land shall pay the planter compensation taking into account the value of the seedlings and a remuneration of the like.

2. The owner of the land may be relieved from paying the compensation referred to in Clause

(1) of this Article, and may oblige the planter to uproot the seedlings if they prove that the planting is of no benefit.

Article 776

The provisions of the Musaqah shall apply to the Mugharasah insofar as they do not conflict with its nature.

Article 777

The person who undertakes the administration of the endowment (Waqf) shall have the authority to lease it and collect the rent.

Article 778

The administrator (Mutawalli) of the endowment may not lease the endowment property to themselves or lease it to their ascendants or descendants, even for a rent of the like, except with the permission of the court.

Article 779

The beneficiary of a endowment may not lease it nor collect its rent, even if the entitlement is exclusively theirs, unless they are the administrator appointed by the founder (Waqif), or are authorized by the person vested with the authority to lease, or by the court.

Article 780

1. The condition stipulated by the founder shall be observed in the lease of the endowment; if a lease term is specified, it may not be violated.

2. If it is not possible to find a person willing to lease the endowment for the specified term, and the administrator has not been granted the right to lease it in a manner more beneficial to the endowment, the matter shall be referred to the court, which may authorize leasing it for the term it deems appropriate.

Article 781

1. If the founder has not specified the term, immovable property shall be leased for a term of one year and lands for a maximum term of three (3) years, unless the interest of the endowment requires otherwise and permission is granted by the court.

2. If the lease is concluded for a longer term, even through successive contracts, it shall be reduced to the term specified in Paragraph (1) of this Article.

3. If the endowment is in need of development and has no revenue with which to finance such development, the court may authorize its lease for a term sufficient to enable its development.

Article 782

1. The lease of an endowment for less than fair rent is not permissible, and the lessee shall be obligated to complete the fair rent and pay the shortfall for the past period of the contract, and they shall have the option to rescind or accept the rent of the like for the remaining period.

2. The rent of the like shall be assessed by experts, and consideration shall be given to the time the lease contract was concluded, and no regard shall be had to any subsequent change.

Article 783

If an improvement occurs in the location of the endowment property in itself, and this leads to a gross increase in the rent, and such increase is not attributable to what the lessee has spent or to any repair or development carried out thereby, the lessee shall have the option either to rescind or to accept the new rent of the like from the time of the improvement.

Article 784

1. If the lease term expires and the lessee has built or planted on the endowment property at their own expense with the permission of the person having authority to lease, they shall have priority over others for a future term at the rent of the like.

2. If the lessee does not accept the rent of the like, and the demolition of the building or the uprooting of the trees is detrimental to the endowment property, the endowment authority may acquire what has been constructed thereon for its value as standing, unless the law provides or the agreement stipulates otherwise.

3. The administrator of the endowment (Mutawalli) may lease the endowment property along with the building and plants with the permission of their owner, provided that the owner is given their share of ownership from the rent.

Article 785

If the lease term expires and the lessee had built or planted on the endowment property at their own expense without permission, they shall be ordered to demolish what they built and uproot what they planted if there is no harm to the endowment. If such demolition or uprooting would cause harm to the endowment, they shall be compelled to wait until the building or trees collapse, whereupon they may take the debris. In both cases, the endowment authority has the right to acquire what has been built or planted for a price not exceeding the lesser of its two values, its value as demolished or uprooted, or its value as standing, in either case.

Article 786

In matters requiring the court's permission, the opinion of the authority competent for endowment affairs shall be obtained regarding what is in the interest of the endowment before such permission is issued.

Article 787

The provisions of the lease contract shall apply to the lease of an endowment, insofar as they do not conflict with the preceding provisions.

Article 788

A loan for use is the granting of the usufruct of a thing to another without consideration for a specific period or for a specific purpose, to be returned after use. The loaned thing is whose usufruct is granted.

Article 789

A loan for use is effected by taking possession of the loaned thing, and it has no effect prior to such possession.

Article 790

It is a condition for the loaned thing to be specific and fit for use while its corpus remains.

Article 791

If the term of the loan for use is restricted by time or work, the lender may not recover the loaned thing from the borrower before the expiration of its term. If it is not restricted by time or work, the lender may not recover it before the expiration of the customary period for lending a similar thing.

Article 792

It is a condition for the borrower to be legally competent to receive a gratuitous benefit in respect of the loaned thing.

Article 793

The loaned thing is a trust held by the borrower. If it is destroyed or its value is diminished for a reason not attributable to them, they shall not be liable, unless agreed otherwise.

Article 794

It is not permissible for either of the spouses to lend a thing belonging to the other that is not customarily under their possession without their permission. If they do so and the loaned thing is destroyed or damaged, the owner has the option to seek recourse against the lender or the borrower for compensation.

Article 795

1. It is not permissible for anyone to lend for use a thing whose ownership and usufruct they do not own without the permission of its owner. If they do so, the owner has the right to:

a. Hold the lender and the borrower jointly liable to pay the rent of the like.

b. Seek recourse against the lender and the borrower jointly for compensation in the event of the perishing or damage of the loaned thing.

2. The borrower may seek recourse against the lender for what they are held liable for, if they prove they were acting in good faith and that the perishing or damage of the loaned thing was not due to their transgression or negligence.

3. The lender may not seek recourse against the borrower for the rent of the like if the borrower were acting in good faith, nor may the lender seek recourse for compensation if the loaned thing perishing or damage for a reason not attributable to the borrower.

4. The provisions of this Article shall apply to the guardian, curator, custodian, and the representative of an absentee if any of them lends a thing whose ownership belongs to the person under their guardianship or whose property they administer, without obtaining the permission of the court.

Article 796

1. If the borrower is compelled to incur expenses to preserve the loaned thing from damage or perishing during the loan for use, the lender shall be obligated to reimburse the borrower for the expenses incurred.

2. The lender shall be obligated to pay the beneficial expenses incurred by the borrower or the increase in value of the loaned thing resulting from such expenses. The lender may request the borrower to remove, at the borrower’s own expense, what the borrower has added, with compensation where justified, unless agreed otherwise.

Article 797

If any defect arises from the use of the loaned thing that results in a diminution in its value, the borrower shall not be liable for the value of that diminution unless it is due to use contrary to the customary practice.

Article 798

If a person borrows land to build or plant thereon for a period limited by stipulation or by custom, the lender shall, upon the expiration of this period, have the option to either require the borrower to demolish the building or uproot the trees and restore the land to its former condition, or to pay them the value of the building or the value of the trees uprooted, unless agreed otherwise.

Article 799

The lender shall not be entitled to claim rent from the borrower for the loaned thing after the use.

Article 800

1. If the loaned thing becomes subject to entitlement while in the possession of the borrower, the lender shall not be liable, unless otherwise agreed or unless the lender intentionally concealed the cause of the entitlement.

2. The lender shall be liable for any damage suffered by the borrower as a result of such entitlement.

3. If the entitlement occurs after the loaned thing has perished while in the possession of the borrower without any transgression or negligence on their part, and the entitled party chooses to hold the borrower liable, the borrower shall have recourse against the lender for whatever they have warranted to the entitled party.

4. The lender shall not be liable for latent defects unless the lender deliberately concealed the defect or warranted the thing to be free from defects.

Article 801

The borrower is obligated to use the loaned thing in the specified manner and to the extent specified, in accordance with the contract, accepted by the nature of the loaned thing, or determined by custom. The borrower shall not be liable for any change or damage that befalls the loaned thing due to its customary use.

Article 802

The borrower may not, without the lender's permission, dispose of the loaned thing in a manner that grants a right to another in its usufruct or substance by transferring it, pledging it, leasing it, or any other disposition.

Article 803

If the use of the loaned thing requires expenditure by the borrower, they are not entitled to recover it and are obliged to bear the necessary expenditure for the customary maintenance of the loaned thing. They may remove from the loaned thing whatever the borrower has added thereto, provided that they return the thing to its original state.

Article 804

1. The borrower shall exercise in preserving the loaned thing the care they exercise in preserving their own property, without falling below the care of an ordinary person.

2. The borrower shall be liable for the perishing of the loaned thing if the perishing arises from a force majeure and it was within their power to prevent it by using their own property, or if they could have saved either their own property or the loaned thing and chose to save their property.

Article 805

If the borrower exceeds the customary manner in using the loaned thing or uses it contrary thereto and it is destroyed or damaged, the borrower shall be liable to the lender for the damage sustained by the loaned thing.

Article 806

The borrower may deposit the loaned thing with a trustworthy person capable of preserving it, and shall not be liable if it is destroyed while in that person’s possession for a reason not attributable thereto.

Article 807

The contract of loan for use shall terminate in the following cases:

1. The death of the lender or the borrower; the loan shall not pass to the heirs, unless agreed otherwise.

2. Upon expiration of the agreed term or upon fulfilment of the usufruct, that is the subject of the loan for use.

3. Upon the declaration of the lender's insolvency or bankruptcy.

4. If the borrower returns the loaned thing before the expiration of the term of the loan for use, the lender shall be bound to accept it, unless harm results therefrom.

Article 808

1. The lender may request the termination of the loan for use in the following cases:

a. If an urgent and unforeseen need for the thing arises.

b. If the borrower misuses the loaned thing or fails to exercise the due care required to preserve it.

c. If the borrower becomes insolvent or bankrupt after the loan for use is concluded, or was insolvent or bankrupt before its conclusion without the lender's knowledge.

2. If there is a compelling necessity for the borrower to retain the loaned thing, they may do so until the state of necessity ceases, against payment of the rent of the like for the period following the return.

Article 809

If the borrower dies without disclosing the loan for use of the loaned thing, and it is not found in their estate, its value at the time of death shall constitute a debt on the estate.

Article 810

1. If the loan for use is rescinded or terminated, the borrower shall return the loaned thing to its owner and refrain from using it, unless the law permits its retention.

2. If the loan for use is terminated by the death of the borrower, their heirs shall be obliged to deliver it to the lender upon request.

Article 811

The loaned thing shall be returned at the place it was loaned, unless there is an agreement or custom to the contrary.

Article 812

A contracting agreement (Muqawala) is a contract whereby one of the contracting parties undertakes to manufacture a thing or to perform a work for a consideration to be paid by the other contracting party.

Article 813

The Muqawala contract shall specify its subject matter, indicating its nature and quantity, the method of performance, the period of completion, and the consideration payable in return therefor.

Article 814

1. It may be agreed in the Muqawala contract that the contractor is obligated to provide the work only, and that the employer shall provide the materials to be used by the contractor in performing their work.

2. It may also be agreed in the Muqawala contract that the contractor is obligated to provide all or part of the materials, in addition to their obligation to perform the work.

Article 815

If the contractor undertakes to provide all or part of the materials for the work, such materials shall be provided according to the terms of the contract, if any, and otherwise according to the prevailing custom. The contractor shall be responsible for their quality and shall warrant them to the employer.

Article 816

1. If the employer provides the materials for the work, the contractor shall preserve them with the care of an ordinary person, observe the technical standards in performing the work, and return to the employer what remains thereof. The contractor shall be liable for such materials, or what remains thereof, if they are destroyed, damaged, or lost while in their possession due to a reason attributable to the contractor.

2. If some or all of the materials provided by the employer become unusable due to the contractor's negligence, the contractor shall refund their value to the employer with compensation where justified.

3. If defects arise or appear during the execution of the work in the materials provided by the employer, or if other factors arose that would hinder the execution of the work in appropriate conditions, the contractor shall immediately notify the employer thereof. If the contractor fails to give such notice, they shall be liable for all consequences resulting from such failure.

Article 817

The contractor shall provide all additional machinery and tools necessary for the completion of the work at their own expense, unless the contract or prevailing custom provides otherwise.

Article 818

1. The contractor shall complete the work according to the terms of the contract and within the agreed period. If no terms are stipulated or no period is agreed, the contractor shall complete it according to the recognized professional standards and within a reasonable period required by the nature of the work.

2. If it becomes apparent during the work that the contractor is performing it in a defective manner or in violation of the contractual terms, the employer may serve notice requiring such terms and correction of the defective work within a reasonable period specified thereby. If this period expires without rectification, the employer may, after establishing the facts, rescind the contract or entrust another contractor with the completion or correction of the work at the expense of the first contractor.

3. The employer may request immediate rescission of the contract, without the need to grant a period, if rectification of the defects is impossible or inconsistent with the terms of the contract, if the contractor delays the commencement or completion of the work in such a manner that it is absolutely unlikely that they will be able to complete it within the agreed period, if the contractor adopts conduct indicating their intent not to perform their obligation, or if the contractor commits an act that renders performance of the obligation impossible.

Article 819

The contractor shall be liable for any damage or loss resulting from their act or workmanship, whether arising from their transgression or negligence, or otherwise. Liability shall be excluded if such damage or loss results from an unavoidable event.

Article 820

1. If the contractor's work has produced an effect on the thing, they may retain it until the due remuneration is paid. If the thing perishes while in their possession before payment of the remuneration, they shall bear no liability, nor shall they be entitled to the remuneration.

2. If the contractor's work does not produce an effect on the thing, they shall not have the right to retain it for the collection of the remuneration. If they do so and the thing perishes, they shall be liable as for usurpation.

Article 821

1. If the subject matter of a Muqawala contract is the construction of buildings or other fixed installations, for which the engineer has prepared the design to be executed by the contractor under the engineer’s supervision, they shall both be jointly liable for what occurs within a period of ten (10) years by way of total or partial collapse of the buildings they have constructed or the fixed installations they have erected, even if the collapse arises from a defect in the land on which they were erected or if the employer had authorized the erection of the defective structures, unless the contracting parties intended, in this case, for such installations or buildings to remain for a period shorter than ten (10) years.

2. The warranty stipulated in Paragraph (1) of this Article shall include any defects in the buildings and installations that threaten the structural integrity and safety of the construction.

3. The warranty period shall commence from the date the employer takes delivery of the work.

4. The provisions of this Article shall not apply to any right of recourse the contractor may have against subcontractors.

Article 822

1. If the engineer's work is limited to preparing the design for the building or installation, or a part thereof, they shall be liable for defects that are attributable to the design or construction they have prepared, but not for defects attributable to the method of execution.

2. If the engineer's work is limited to supervising the execution, or a part thereof, they shall be jointly liable, with the contractor, for execution defects that occur under their supervision.

Article 823

Any clause intended to exempt or limit the liability of the engineer or the contractor shall be void.

Article 824

A claim for warranty shall not be admissible after the lapse of three (3) years from the occurrence of the collapse or the discovery of the defect.

Article 825

The employer shall be obliged to take delivery of the completed work once the contractor completes it and places it at their disposal. If the employer refrains from doing so without a legitimate cause despite being served with a formal notice, and the work perishes or becomes defective while in the contractor's custody without any fault or negligence on their part, the contractor shall not be liable.

Article 826

The employer shall be obliged to pay the remuneration upon taking delivery of the work, unless otherwise agreed.

Article 827

If the work consists of several parts or the remuneration is determined on a unit basis, the employer shall be obliged to pay the contractor a portion of the remuneration in proportion to the work completed after its inspection and acceptance, provided that what has been completed is distinct or consists a part of significant importance in relation to the work as a whole, unless otherwise agreed.

Article 828

1. If the contract is concluded pursuant to a bill of quantities (BOQ) calculated on a unit-price basis, and it becomes apparent during the course of the work that, in order to execute the agreed design, it is necessary to exceed the estimated bill of quantities to a non-burdensome excess, the contractor shall notify the employer thereof, stating the expected increase in the consideration. If the contractor fails to do so, their right to recover the expenses exceeding the value of the estimated bill of quantities shall lapse.

2. If the excess required to execute the design is burdensome, the employer may be released from the contract and suspend the execution thereof, provided they do so without delay and compensate the contractor for the value of the works they have completed as estimated in accordance with the terms of the contract; alternatively, the employer may request the contractor to proceed with the execution, subject to the employer’s obligation to pay the value of the increase in the consideration.

Article 829

1. If a Muqawala contract is concluded based on an agreed design in exchange for a lump-sum remuneration, the contractor may not claim any increase in the remuneration, even if the prices of the materials used in the work or the remunerations of the workers or other expenses have increased.

2. The contractor may not claim any increase in the remuneration if a modification or addition is made to the design, unless this is due to a fault attributable to the employer or is made by their authorization and they have agreed with the contractor on the increase in remuneration.

3. If the contractual equilibrium between the obligations of both the employer and the contractor is disrupted due to general exceptional circumstances that could not have been foreseen at the time of contracting, thereby undermining the basis upon which financial assessment of the Muqawala contract was founded, the court may, depending on the circumstances and after balancing the interests of both parties, order the restoration of the contractual equilibrium, including the extension of the execution period, the increase or reduction of the remuneration, or may order the rescission of the contract.

Article 830

If the remuneration for the work is not specified in the contract, the contractor shall be entitled to the remuneration of the like, together with the value of the materials they have supplied as required by the work.

Article 831

1. The engineer shall be entitled to a separate consideration for preparing the design and preparing the bill of quantities, and another for managing the work and supervising its execution, unless otherwise agreed.

2. If the contract does not specify these considerations, the engineer shall be entitled to the remuneration of the like.

3. If the work is not completed in accordance with the design prepared by the engineer, the consideration shall be assessed based on remuneration of the like.

Article 832

A contractor may subcontract the execution of the work, in whole or in part, to a subcontractor, unless prohibited by a condition in the contract or unless the nature of the work requires that they perform it in person. The contractor shall remain liable to the employer for the subcontractor.

Article 833

A subcontractor may not claim from the employer any amount due to the original contractor unless the latter has referred the subcontractor to the employer.

Article 834

The Muqawala contract shall be extinguished upon the completion of the agreed work or upon its rescission by mutual consent or by a court order.

Article 835

If an excuse arises that prevents the execution of the contract or the completion thereof, either of the contracting parties may request its rescission or termination, as the case may be.

Article 836

1. The employer may be released from the contract and suspend its execution at any time before its completion, provided they compensate the contractor for all expenses incurred, the work completed, and the profit they would have earned if the work had been completed.

2. The court may reduce the compensation due in respect of the profit lost by the contractor if the circumstances render such reduction equitable. In particular, the court shall deduct therefrom what the contractor has saved as a result of the employer's release from the contract and what they have earned by employing their time in other work.

Article 837

1. If the thing perishes due to force majeure before its delivery to the employer, the contractor may not claim either the consideration for their work or the reimbursement of their expenses, and the loss of the material shall fall upon the party who supplied it from among the contracting parties.

2. If the thing perishes after the employer has formally summoned the contractor to take delivery thereof, or if the loss is attributable to the contractor's fault, the employer shall have the right to compensation.

3. If the thing perishes after the contractor has served a notice of default upon the employer requiring them to take delivery thereof, or if it is due to the employer's fault, the contractor shall be entitled to the consideration and to compensation, if applicable.

Article 838

1. A Muqawala contract shall terminate upon the death of the contractor if it has been agreed that they shall personally perform the work, or if their personal qualifications were taken into consideration in the contract.

2. If the contract contains no such stipulation, or if the personal qualifications of the contractor were not taken into consideration in the contract, the employer may request rescission of the contract if the contractor's heirs do not provide sufficient guarantees for the proper performance of the work.

Article 839

1. If the contract is extinguished by the death of the contractor, the employer shall be obliged to pay to the estate the value of the work completed and the expenses incurred for its execution, to the extent of the benefits accruing to the employer, in accordance with the terms of the contract and what is customary.

2. The provisions of Paragraph (1) of this Article shall apply if the contractor has begun the execution of the work and then becomes incapable of completing it for a cause not attributable thereto.

Article 840

In the absence of a specific provision in labour legislation, the provisions contained in this Chapter shall apply to the employment contract.

Article 841

The employment contract is a contract whereby one of the contracting parties undertakes to perform work for the benefit of the other contracting party under their management or supervision in return for a wage undertaken by the other contracting party.

Article 842

1. An employment contract may be concluded for the performance of a specific work or for a fixed term, and it may also be for an indefinite term.

2. If the employment contract is for the lifetime of the employee or the employer or for a term exceeding five (5) years, the employee may, after the lapse of five (5) years, terminate the contract without compensation, provided they notify the employer at least three (3) months prior to the date of termination.

3. The term of employment shall commence from the date specified in the contract. If no date is specified, it shall commence from the date of its conclusion, unless the custom or the circumstances of the contract indicate otherwise.

Article 843

1. The performance of work is presumed to be for a wage if it is not customary to perform such work gratuitously, or if the work falls within the profession of the person who performed it.

2. If no agreement is made on the wage, the person who performed the work shall be entitled to the remuneration of the like.

Article 844

1. The employee's wage is what they receive by virtue of the contract in money or in kind, in any form whatsoever.

2. If the wage is not specified in the contract, the employee shall be entitled to the wage of the like according to the prevailing custom. If there is no custom, the court shall assess it in accordance with the requirements of justice.

Article 845

The employee's wage shall include commissions, percentages, grants, in-kind benefits, and allowances granted to the employee, as well as payment for services in work where it is customary to grant them and where the employees have come to consider them as part of the wage, not as a donation, provided that these amounts are of a known value and are calculated when settling their rights or levying an attachment thereon.

Article 846

1. Gratuities shall not be deemed part of the wage except in an industry or trade where it is customary to pay them; provided that it is governed by rules that allow for its regulation.

2. A gratuity shall be deemed part of the wage if what is paid thereof by customers to the employees of a single commercial establishment or factory is collected in a joint fund or electronic system for the employer to then distribute it among them, by themselves or under their supervision.

3. In certain hotels, restaurants, and café occupations, an employee may have no wage other than what they receive in gratuities and what they consume in food.

Article 847

If the work involves teaching something the learning of which involves assistance rendered by the learner to the teacher, and the contract does not specify which party is entitled to a wage from the other, the prevailing custom of the persons concerned at the place of work shall be followed.

Article 848

The employee shall be obliged to:

1. Perform the work personally and exercise the care of an ordinary person.

2. Observe in their conduct the requirements of decency and public morals, and the relevant professional rules.

3. Obey the orders of the employer concerning the execution of the agreed work, provided such does not expose them to danger and does not violate the law or public morals.

4. Safeguard the things entrusted to them for the performance of their work, and return the entrusted property upon the termination of the contract.

5. Maintain the confidentiality of the employer's commercial secrets and undisclosed information, even after the termination of the contract, in accordance with what is required by the agreement or custom.

6. Not retain for their own benefit any originals or paper or electronic documents related to the secrets of the work without permission.

7. Perform what is customarily considered an ancillary to the work, even if not stipulated in the contract.

8. Provide all aid and assistance, without requiring additional remuneration, in cases of disasters and dangers that threaten the safety of the workplace or the persons working therein.

9. Undergo, at the employer's request, the medical examinations that the employer wishes to conduct on them before or during employment, to verify that they are free from occupational or communicable diseases.

Article 849

An employee may not engage, during working hours, in any other activity, nor may they work for another employer during the term of the contract. Otherwise, the employer may rescind the contract or reduce the wage in proportion to the employee's shortcomings in the performance of their work, unless otherwise agreed.

Article 850

The employee shall be liable for any deficiency, damage, or loss of the employer's property caused by their negligence or fault.

Article 851

1. If the work assigned to the employee allows them to know the employer's customers or to learn the secrets of their business, it may be agreed that the employee shall not compete with the employer or engage in any competing project after the termination of the contract.

2. For such an agreement to be valid, the employee shall be of full legal age at the time of concluding the contract, and the restriction shall be limited in time, place, and type of work to the extent necessary to protect the legitimate interests of the employer.

3. The employer may not invoke this agreement if they have rescinded the contract or refused to renew it without any act on the part of the employee justifying such rescission or refusal, nor may the employer invoke it if they have committed an act justifying the employee’s rescission of the contract.

Article 852

If a penalty clause is agreed upon in case of breach of the non-competition clause, and this clause is exaggerated to the extent that it becomes a means of compelling the employee to remain with the employer for a period longer than that agreed, the court may annul or amend the clause.

Article 853

1. If the employee succeeds in making a new invention while performing their work, the employer shall have no right to that invention, even if the employee has developed it on connection with the work they performed in the service of the employer, unless the nature of the work undertaken by the employee requires them to devote their efforts to inventive activity, or the employee reaches the invention by means of materials, tools, facilities or any other means placed at their disposal by the employer for the purpose of invention, or if the employer has expressly stipulated in the contract that they shall have the right to any inventions the employee may discover, and the court may verify that the employee has expressly accepted such stipulation.

2. If the invention is of serious economic significance, the employee may, in the cases stipulated in Paragraph (1) of this Article, claim special consideration to be assessed in accordance with the requirements of justice, taking into account the assistance provided by the employer and the use of their facilities for this purpose.

3. If the parties do not agree on the special consideration stipulated in Paragraph (2) of this Article, it shall be determined by the court. Any agreement depriving the employee of this special consideration shall be void.

Article 854

The employer shall pay the employee their wage at the time and place specified in the contract or determined by custom, when they have performed their work or made themselves available and devoted themselves thereto, even if no work has been assigned thereto.

Article 855

The employer shall be obliged to:

1. Provide all means of safety and security in their establishments, and furnish everything necessary to enable the employee to perform their obligations.

2. Ensure the proper condition of the machinery and equipment used for work so that no harm results therefrom.

3. Observe the requirements of decency and public morals in their relationship with the employee.

4. Provide the employee at the end of their service with a certificate stating the nature of their work, the date of its commencement and termination of service, and the amount of their wage and any additional benefits received.

5. Return to the employee their personal documents.

Article 856

If an employer requests another to perform work subject to the payment of remuneration, they shall be bound to pay the wage of the like, whether or not that person ordinarily works for a wage.

Article 857

The employer shall be obliged to provide clothing and food for the employee, or either, if custom so requires, whether this is stipulated in the contract or not.

Article 858

If the specified period for the work expires and circumstances require its extension, the contract shall continue to the extent necessary, and the employer shall be bound to pay the wage of the like for the additional period.

Article 859

If the employer terminates a fixed-term contract or a contract concluded for a specific work before the expiration of its term or completion of the work, without an excuse and without any act on the part of the employee justifying rescission, the employer shall be bound to pay the wage due to the employee for a period of three (3) months, calculated based on the last comprehensive wage received.

Article 860

Both the employer and the employee shall comply with the requirements imposed by special laws, in addition to the obligations set out in the preceding Articles.

Article 861

1. The employment contract shall terminate upon the expiry of its term or the completion of the work, unless it is agreed to renew it.

2. If the parties continue to perform the contract after the expiry of its term or after the completion of a work that is by its nature renewable, this shall be deemed an implied extension of the contract under the same conditions contained therein.

Article 862

1. If the employment contract is of an indefinite term or is not specified for the completion of a specific work, either party may terminate the contract at any time, provided that they notify the other party of their intention to terminate, and the notice period shall not be less than sixty (60) days, unless the law or the agreement provides otherwise.

2. If either party fails to notify the other of the termination of the contract or does not observe the expiry of the notice period, they shall be obligated to compensate the other party for the notice period or the remaining part thereof. The compensation shall be calculated based on the last wage received by the employee and all its fixed and specific allowances.

Article 863

1. The contract may be rescinded if an excuse arises that prevents its performance.

2. Either party may, in the case of an emergency related thereto, request the rescission of the contract.

Article 864

The employment contract shall be extinguished in the following cases:

1. Mutual written agreement of the parties to terminate it.

2. Expiry of the term specified in the contract, unless it is extended or renewed in accordance with the provisions of the law.

3. At the will of either party, provided that the provisions of the law regarding the termination of the employment contract and the notice period agreed upon in the contract are observed.

4. Death of the employer if the subject matter of the contract is related to their person.

5. Death of the employee or their total and permanent incapacity to work, as established by a certificate issued by a medical authority.

6. A final judgment against the employee imposing a custodial sentence for a period of not less than three (3) months.

7. Permanent closure of the establishment in accordance with the legislation in force in the State.

8. Bankruptcy or insolvency of the employer, or any economic or exceptional reasons that prevent the continuation of the project, in accordance with the conditions, controls, and procedures specified by the legislation in force in the State.

9. Failure of the employee to meet the conditions for renewing the work permit for any reason beyond the employer's control.

Article 865

1. Claims arising from an employment contract shall not be admissible after the lapse of two years from the date of termination of the work relationship, except in relation to commission, profit sharing, and percentages of gross revenue, in which case the period shall commence from the time the employer delivers to the employee a detailed statement of the final financial entitlements.

2. The period specified in Paragraph (1) of this Article shall not apply to claims related to the violation of the confidentiality of trade secrets and the employer’s undisclosed information.

Article 866

Agency is a contract between a principal and an agent whereby the agent undertakes to perform a legal act in the name and for the account of the principal.

Article 867

The agency shall be subject to the form required for the legal act that constitutes the subject matter of the agency, unless otherwise agreed.

Article 868

The following are required for the validity of an agency:

1. The principal shall have the right to dispose of the subject matter of the agency in their own capacity.

2. The agent shall be eligible to perform the act for which they are appointed.

3. The subject matter of the agency shall be known and capable of being delegated.

Article 869

An agency may be general, special, conditional, or deferred to a future time.

Article 870

1. Any act that is not an act of management and preservation requires a special agency specifying the type of act and the dispositions it entails, particularly in donations, sale, settlement, mortgage, acknowledgment, arbitration, administering and accepting an oath, and pleading before the court.

2. A special agency in a specific type of legal act shall be valid, even if the subject matter of this act is not specifically identified, unless the act is a donation.

Article 871

1. If the agency is expressed in general terms without specifying what is intended, it shall only grant the agent the power to perform acts of management.

2. Acts of management include leasing if its term does not exceed three (3) years, acts of preservation and maintenance, collection of rights, payment of debts, and any act of disposition required for management, such as the sale of crops, goods, or movables that are liable to rapid deterioration, and the purchase of what is necessary for the subject matter of the agency and for its preservation.

Article 872

The agency shall not grant the agent capacity except in the performance of the matters specified therein and their necessary appurtenances according to the nature of each matter, prevailing custom, and the common intention of the contracting parties.

Article 873

Subsequent ratification of a disposition shall be deemed equivalent to a prior agency.

Article 874

1. The agent shall be obligated to execute the agency contract without exceeding its prescribed limits, except for what is more beneficial to the principal.

2. The agent may exceed the limits of the agency if it is impossible to notify the principal in advance, and the circumstances suggest that the principal would approve of this act. The agent shall promptly notify the principal that they have exceeded the limits of the agency.

Article 875

1. If the agency is gratuitous, the agent shall exercise in its execution the care they exercise in their own affairs.

2. If the agency is for remuneration, the agent shall exercise in its execution the care of an ordinary person.

Article 876

The agent shall be obligated to provide the principal with the necessary information about the progress of the agency's execution and to render an account therefor, unless otherwise agreed.

Article 877

The agent may not use the principal's property for their own benefit; if they do, they shall be obligated to compensate the principal for any damage incurred as a result.

Article 878

1. If there are multiple agents, they shall be jointly and severally liable when the agency is indivisible, or the damage suffered by the principal is the result of a common fault.

2. The agents, even if jointly and severally liable, shall not be liable for the acts of one of them that exceed the limits of the agency or are abusive in its execution.

3. If the agents are appointed in a single contract without being authorized to act individually, they shall act jointly, unless the work is such that it does not require an exchange of opinion, such as collection or payment of a debt.

Article 879

1. An agent may not delegate the performance of the agency to another person, unless they are authorized to do so by the principal or permitted by law.

2. If an agent entrusts another with the execution of the agency without being authorized to do so, they shall be liable for the act of the second agent as if such act had been performed by them, and both the agent and the second agent shall be jointly and severally liable.

3. If an agent is authorized to appoint another without designating a person, the first agent shall not be liable except for their fault in choosing the second agent or for their fault in the instructions they issued thereto. In this case, both the principal and the second agent may have direct recourse against each other.

Article 880

Contracts of gift, loan for use, pledge, deposit, loan, partnership, Mudaraba, and settlement upon denial, shall not be valid if concluded by the agent unless they are expressly attributed to their principal.

Article 881

An agent authorized to receive does not have the capacity to conduct litigation, and an agent authorized to conduct litigation does not have the authority to receive except by special authorization from the principal.

Article 882

It is not required to attribute the contract to the principal in contracts of sale, purchase, lease, and settlement upon acknowledgment. If the agent attributes it to the principal within the limits of the agency, its rights shall be accrued to the principal. If they attribute it to themselves without declaring that they are contracting in their capacity as an agent, the rights of the contract shall accrue thereto. In both cases, ownership shall vest in the principal.

Article 883

Property received by the agent for the account of their principal shall be deemed to be held by way of deposit. If it is destroyed while in their possession without transgression or negligence, they shall bear no liability.

Article 884

An agent authorized to purchase a thing without specifying its price may purchase it at the price of the like or with a slight unfairness.

Article 885

1. A person appointed to purchase a specific thing may not purchase it for themselves, their ascendants, their descendants, their spouse, or for persons with whom the disposition would result in benefit or avoidance of harm to their own property or to the property of such persons, except with the permission of their principal. The purchase shall be for the principal even if the agent declares that they are purchasing it for themselves.

2. An agent authorized to purchase may not sell their own property to their principal, unless otherwise agreed.

Article 886

A purchase shall be for the agent if:

1. The principal specified the price and the agent purchases at a higher price.

2. The agent purchases with gross unfairness.

3. The agent declares the purchase of the property for themselves in the presence of the principal.

Article 887

If an agent authorized to purchase pays the price of the subject matter of the sale from their own property, they may have recourse against their principal for what they have spent in the execution of the agency within the usual limits, and they may retain what they have purchased until they receive the price.

Article 888

1. An agent authorized to sell the property of their principal may sell it at an appropriate price.

2. If the principal specifies the price of the sale, the agent may not sell it for a lower price. If the agent sells it at a lower price without the prior permission of the principal or subsequent ratification, and delivers it to the purchaser, the principal shall have the option to either recover the subject matter of the sale, ratify the sale, or hold the agent liable for the difference in value.

Article 889

An agent authorized to sell may not purchase for themselves what they are authorized to sell, nor may they sell it to their ascendants, descendants, spouse, or to persons with whom the disposition would result in benefit or avoidance of harm, unless the principal has authorized them to sell to whomever they wish and at the price they have specified. If no price is specified, the price shall not be less than the price of the like.

Article 890

1. If an agent authorized to sell is not restricted to a sale for immediate payment, they may sell the principal's property for cash or on deferred payment in accordance with custom.

2. If the agent sells on deferred payment, they may take a pledge or a surety from the purchaser for what they have sold, even if the principal has not authorized them to do so.

Article 891

1. The principal has the right to receive the price of the subject matter of the sale from the purchaser, even if the right to collect it falls within the authority of the agent, and the purchaser may refrain from paying it to the principal. If the purchaser pays it to the principal, the purchaser’s liability shall be discharged.

2. If the agent acts gratuitously, they shall not be obligated to collect or obtain the price of the sold thing, but they shall be required to authorize their principal to collect and obtain it.

3. If the agent acts for remuneration, they shall be obligated to collect and obtain the price.

Article 892

The principal shall be obligated to pay the agreed remuneration to the agent when the work is performed. If no remuneration is agreed upon and the agent is among those who customarily work for remuneration, they shall be entitled to the remuneration of the like; otherwise, the agent shall be deemed to have acted gratuitously.

Article 893

The principal shall be obligated to reimburse the agent for what they have spent in the execution of the agency within the customary limits.

Article 894

The principal shall be liable for any damage suffered by the agent as a result of the customary execution of the agency, unless the damage results from the agent's fault or from a foreign cause not attributable thereto.

Article 895

If multiple persons appoint a single agent for a joint work, all the principals shall be jointly and severally liable toward the agent, unless otherwise agreed.

Article 896

The provisions governing representation in contracting stipulated in this Law shall apply to the relationship between the principal and the agent vis-à-vis the third party dealing with the agent.

Article 897

An agency shall be extinguished in the following cases:

1. Completion of the work entrusted to the agent.

2. Expiry of the term specified for the agency.

3. Death of the principal or their loss of legal capacity, even if a right of a third party is attached thereto, except in an agency for the sale of a pledged item if the pledger has appointed the neutral custodian or the pledgee to sell the pledged property upon maturity.

4. Death of the agent or their loss of legal capacity, even if a right of a third party is attached thereto. However, if the heir or the guardian becomes aware of the agency and possesses the requisite legal capacity, they shall notify the principal of the agent's death and take such measures as the circumstances require to protect the principal’s interests.

Article 898

The principal may revoke or restrict the authority of their agent at any time, unless the agency involves a right of a third party or was issued in the interest of the agent, in which case the principal may not terminate or restrict it without the consent of the person in whose interest it was issued.

Article 899

The principal shall be obliged to compensate the agent for any damage suffered as a result of revoking the agency at an inappropriate time, or without an acceptable justification.

Article 900

1. The agent may withdraw from the agency if it does not relate to the interest of a third party, provided that the principal is notified of such withdrawal.

2. If the agency relates to the interest of a third party, the agent may not withdraw from the agency except if there are serious reasons justifying such withdrawal, provided that the third party is notified and granted sufficient time to take such measures as they deem appropriate to protect their interests.

3. In all cases, the agent shall continue to perform the acts already commenced until they reach a stage where no harm is feared for the principal; otherwise, they shall be obligated to compensate for the damage.

4. If the agency is for remuneration and the agent withdraws at an inappropriate time or without acceptable justification, the agent shall be obliged to compensate the principal for the damage they suffer as a result, even if the agent's withdrawal relates to an act not yet commenced.

Article 901

The agent authorized for litigation shall be deemed dismissed if they make an acknowledgment on behalf of their principal outside the court. They shall also be removed if the admission is excluded from the agency, and they make an admission in or out of court session.

Article 902

If the agent authorized for litigation acts within the scope of the agency after acquiring knowledge of their dismissal, they shall be liable. If they act before becoming aware, their act shall be effective.

Article 903

1. The sub-agent shall be dismissed by the death or bankruptcy of the original principal, and upon the dismissal by the principal or by the agent. However, the sub-agent shall not be dismissed by the dismissal or death of the agent.

2. In the event of the revocation of the principal agency, all sub-agencies derived therefrom shall be deemed revoked by virtue of law.

Article 904

A deposit is a contract whereby the depositary undertakes to take delivery of a property from the depositor, to safekeep it, and to return it in specie.

Article 905

For the contract to be valid, the deposited property shall be a property capable of being subject to possession.

Article 906

1. The depositary shall take delivery of the deposit, either actually or constructively.

2. A deposit is a trust (amānah) held by the depositary, and the latter shall be liable for it if it perishes due to a cause attributable thereto, unless otherwise agreed.

Article 907

The depositary may not request remuneration for the safekeeping of the deposit or rent for the place where it was placed, unless this was stipulated upon deposit or there is a special custom to that effect.

Article 908

The depositary shall exercise the care of an ordinary person in the safeguarding of the deposit and shall place it in a place of custody of the like. The depositary may safeguard it personally or through a person with whom they entrust the safeguarding of their own property from among their dependents.

Article 909

The depositary may not place the deposit with a third party without the permission of the depositor, unless compelled to do so by an urgent necessity. If they place it with a third party with the permission of the depositor, they shall be discharged from their obligations, and the third party shall become the depositary.

Article 910

The depositary may not use the deposit or create any right in favor of a third party over it without the permission of the depositor. If they do so and it perishes or its value diminished, they shall be liable.

Article 911

If the depositary travels with the deposit without the permission of the depositor, where it was possible to deposit it with a custodian, and it perishes or is damaged during the travel, they shall be liable for it. If the depositary travels with it due to the absence of a custodian with whom it could be deposited, and it perishes or is lost without negligence, they shall not be liable. If they return it to its place of deposit safely after the travel and it perishes or is lost thereafter without negligence, they shall not be liable.

Article 912

1. The depositary shall return the deposit and deliver it to the depositor at the place of deposit upon request, unless otherwise agreed.

2. If the deposit perishes or its value diminished without any transgression or negligence by the depositary, they shall deliver to the depositor whatever they may have obtained by way of guarantee, and shall assign to them any rights they may have against the third party on that account.

Article 913

The depositary shall return the benefits, fruits, and yields of the deposit to the depositor.

Article 914

If the depositary mixes the deposit with something that cannot be distinguished therefrom and is not similar thereto in type and quality, they shall be liable for it upon such mixing. If it can be distinguished therefrom but is similar thereto in type and quality, there shall be no liability. If some of the mixture perishes in this case, the loss shall be apportioned between them according to their respective shares until the perished part is identified, in which case its liability shall be borne by its specific owner.

Article 915

If the deposit is lost or stolen from the depositary due to their violation of the method of safekeeping agreed upon or that which is customary for the safekeeping of property of the like, or due to forgetting it at the place where it was kept, or by entering a place with it while they could have placed it at their residence or with a custodian before entering, the depositary shall be liable therefor in all these cases.

Article 916

If there are multiple depositaries and the deposit is indivisible; it may be kept with one of them with the consent of the others or by rotation between them. If it is divisible, it may be divided among them, and each depositary shall safekeep their share.

Article 917

If the depositor is untraceably absent, the depositary shall safekeep the deposit until their death or life is ascertained. If the deposit is liable to perish with the passage of time, they shall request permission from the court to sell it and keep its proceeds in trust in the court's treasury.

Article 918

If two persons deposit a joint property of theirs with another, and one of them requests the return of their share in the absence of the other, the depositary shall return it if the property is fungible, and shall refuse to return it if the property is non-fungible, unless with the consent of the other. If the deposit is the subject of a dispute between them, the depositary may not return it to either of them without the permission of the court.

Article 919

1. If the depositary dies and the deposit is found in kind in their estate, it shall be deemed a trust in the hands of the heirs, who shall return it to its owner.

2. If the heirs prove that the depositary had returned the deposit, or that it had perished or been lost from them without transgression or negligence before or after death, there shall be no liability on the estate.

3. If the depositary dies while concealing the deposit and it is not found in their estate, it shall be a debt due from the estate, and its owner shall rank with the other creditors.

Article 920

1. If the depositary dies and an heir disposes of the deposit by any act that effects a transfer of ownership and it perishes, its owner shall have the option to hold either the disposer or the transferee liable for its value at the time of disposition if it is non-fungible, or for its equivalent if it is fungible.

2. If the deposit is still in possession of the transferee, its owner shall have the option to take it or to ratify the disposition against the agreed consideration.

Article 921

The depositor undertakes to pay the agreed remuneration to the depositary if the deposit is for consideration.

Article 922

1. The depositor shall reimburse the depositary for what the latter has expended in the safekeeping of the deposit with the depositor's permission.

2. If the depositor is absent, the depositary may refer the matter to the court to order what it deems appropriate.

Article 923

1. If the depositary incurs expenses on the deposited property without the permission of the depositor or the court, they shall be deemed to have acted gratuitously.

2. The depositary may, in cases of urgency or necessity, incur expenses for the deposit to the customary extent, and shall have recourse for their expenditure against the depositor.

Article 924

The depositor shall bear the expenses of delivering and returning the deposit, and shall be liable for any damage suffered by the depositary as a result of the deposit, unless it arises from a cause attributable to the depositary.

Article 925

If the deposit becomes subject to entitlement and the depositary has been held liable in respect therefor; they have the right to recourse against the depositor for the amount paid.

Article 926

If the depositor dies, the deposit shall be delivered to their heirs with the permission of the court.

Article 927

If the deposit is a sum of money or any other thing that perishes by use, and the depositary is authorized to use it, the contract shall be deemed a loan.

Article 928

1. Proprietors of hotels and similar establishments shall, with respect to the duty of care incumbent upon them for the safekeeping of the property brought by travellers and guests, be liable even for acts committed by persons frequenting the establishment.

2. Proprietors of hotels shall not be liable in respect of money, negotiable instruments, or valuable items, unless they have received them for safekeeping, or have unjustifiably refused to receive them therefor, or unless the damage has occurred as a result of fault on their part or on the part of one of their employees.

Article 929

1. The guest shall notify the hotel proprietor or the person in charge of the theft, loss, or damage of the item immediately upon becoming aware thereof. If they delay the notification without excuse, their rights shall lapse.

2. The guest's claim against the hotel proprietor shall not be heard after the lapse of six (6) months from the date of departure.

Article 930

1. Either the depositor or the depositary may terminate the contract whenever they wish, provided that the termination does not occur at an inappropriate time.

2. If the deposit is for remuneration, neither party has the right to terminate before the expiry of the term, but the depositor may request the return of the deposit at any time if they pay the full remaining remuneration, unless otherwise agreed.

Article 931

Sequestration is a contract whereby the sequestrator undertakes to safekeep and manage a disputed asset and to return it with its proceeds to the person who is proven to be entitled thereto.

Article 932

If the parties agree to place the property in the hands of two or more persons, none of them may act alone in its safekeeping or management or in the disposition of its proceeds without the consent of the others.

Article 933

1. One of the parties in dispute over an asset may, in the absence of agreement, request the court, in order to avert an imminent danger or on the basis of a just cause, to appoint a sequestrator to take possession of such asset for its safekeeping and management and to authorize the sequestrator to exercise any right that the court deems to be in the interest of both parties.

2. The court may also order the appointment of a sequestrator in other cases provided for in the law.

Article 934

Judicial sequestration of endowment property is permissible in the following cases:

1. If the endowment is vacant or a dispute arises between its administrators, or if a lawsuit is instituted for the removal of the administrator, and this sequestration shall terminate in these cases if an administrator is appointed for the endowment, whether on a temporary or permanent basis.

2. If the endowment is indebted.

3. If one of the beneficiaries is an insolvent or bankrupt person, and the sequestration shall be limited to that beneficiary’s share alone if it can be segregated, otherwise it shall extend to the entire endowment, provided that the sequestration in both cases is the sole means to prevent the loss of creditors' rights due to mismanagement by the endowment administrator.

Article 935

If the parties to the dispute do not agree regarding the person of the sequestrator, the court shall appoint one.

Article 936

The property in the hands of the sequestrator is a trust, and they may not exceed the limits of the assigned mandate, otherwise they shall be liable.

Article 937

The agreement or the decision imposing the sequestration shall determine the rights and obligations of the sequestrator and the scope of their authority; otherwise, the provisions of the deposit contract and the agency contract shall apply to the extent that they do not conflict with the provisions set forth in this Chapter.

Article 938

1. The sequestrator is obliged to preserve the property entrusted to their sequestration and to manage this property, and shall exercise, in all such matters, the care of an ordinary person.

2. The sequestrator may not delegate to another person the performance of all or part of their duties without the consent of the relevant parties or the permission of the court, as the case may be.

3. The sequestrator is obliged to keep proper records related to the duties entrusted thereto.

Article 939

The sequestrator may not, in matters other than administration and preservation, act except with the consent of the parties to the dispute or with the permission of the court, unless there is an urgent necessity whereby the proceeds or movable property are at risk of perish or be damaged.

Article 940

The sequestrator shall provide the relevant parties and the court, as the case may be, with the necessary information, reports, statements of account, and documents related to the execution of their mission, and shall submit an account thereof at the times and in the manner agreed upon by the parties or ordered by the court.

Article 941

The sequestrator may recover the amounts spent in performing their duties to the extent customary.

Article 942

The sequestrator is entitled to a wage for the like of their work if the agreement or appointment decision so provides. If there is no provision in this regard, they are entitled to a remuneration of the like, unless it is clear from the circumstances that they have waived this remuneration.

Article 943

The sequestrator may withdraw from their mission at any time, provided they notify the concerned parties and continue performing the acts already commenced until they reach a stage at which no harm is caused to the parties to the dispute.

Article 944

If the sequestrator dies, becomes incapable of performing the duties entrusted thereto, or a dispute arises between them and one of the interested parties, the court shall appoint another sequestrator upon the request of either party to continue the performance of the duties, unless the parties agree to choose someone else.

Article 945

The sequestration shall end by agreement of the interested parties, by a court decision, or upon the expiry of its term if it was for a limited period. The sequestrator shall then promptly return the property entrusted to their custody, along with its proceeds, to the person agreed upon by the concerned parties or designated by the court.

Article 946

1. A competition is a contract whereby a person undertakes to offer a prize to whoever wins a race in which winning depends on the performance of the competitor.

2. It is valid in a competition for the commitment to the prize to be from some of the competitors or from a third party. It is not valid if it is from all competitors.

3. If the competition is between two teams, each team shall be considered as a single person in the commitment to the prize.

4. Any agreement on gambling or wagering shall be void.

Article 947

The validity of a competition contract is subject to the following conditions:

1. The prize shall be known, and the obligor shall be specifically identified.

2. The prize may be cash, in-kind, a due or deferred debt, or part thereof due and part deferred.

3. The subject of the contract shall be described in a manner that precludes uncertainty, and all its conditions and procedures shall be specified.

Article 948

1. A person may undertake to pay a periodic life annuity without consideration.

2. If the obligation relates to education, treatment, or maintenance, it shall be fulfilled according to custom practice, unless the commitment provides otherwise.

Article 949

The disposition establishing the obligation to pay an annuity for life shall not be valid unless it is made in writing, without prejudice to any special form required by the law for contracts of donation.

Article 950

1. The obligation for an annuity may be for the life of the obligor, the obligee, or any other person.

2. The obligation is deemed to be established for the life of the obligor, unless otherwise agreed.

3. The obligation shall be extinguished by the death of the obligor, or their bankruptcy or insolvency.

Article 951

If the obligor fails to fulfill their obligation, the other party may seek specific performance of the contract.

Article 952

If the annuity is established for the life of the obligor and they die before the obligee, the obligee shall be entitled to a portion of the annuity that is proportionate to the period that has elapsed until the death of the obligor, within the customary limits, and may claim it from the estate by way of a bequest, unless otherwise agreed.

Article 953

The provisions of this Chapter shall apply without prejudice to the provisions of special laws.

Article 954

Any agreement that contravenes the provisions of this Chapter shall be void, unless it is to the benefit of the insured or the beneficiary.

Article 955

Insurance is a contract whereby the insurer undertakes to pay the insured or the beneficiary a sum of money, a periodic income, or any other financial consideration in the event of an accident, the occurrence of a condition, or the risk specified in the contract, in consideration for a specified amount or periodic premiums paid by the insured to the insurer.

Article 956

The subject of insurance may be any legitimate interest a person has in the non-occurrence of a specified risk.

Article 957

Anything that contravenes public order or public morals may not be the subject of insurance.

Article 958

The following conditions in an insurance policy shall be void:

1. The condition that provides for the forfeiture of the right to insurance due to a violation of laws, unless the violation involves an intentional crime.

2. The condition that provides for the forfeiture of the right of the insured due to their delay in reporting the insured event to the authorities required to be notified or in submitting documents, if it is proven that the delay was for a valid excuse.

3. Any printed condition that is not prominently displayed and relating to a case that leads to nullity or forfeiture.

4. The arbitration clause if it is included in the printed general conditions of the policy and not as a special agreement separate from the general conditions.

5. Any other unfair condition the breach of which had no effect on the occurrence of the insured event.

Article 959

1. An agreement may be made to exempt the insurer from indemnity if the beneficiary acknowledges liability for the occurrence of the insured risk or pays compensation to the injured party without the insurer's consent.

2. An agreement to exempt the insurer from liability may not be made if the beneficiary's acknowledgment is limited to a material fact or if it is proven that the payment of compensation was in the interest of the insurer.

Article 960

The insurer who has paid compensation for damage shall be subrogated to the rights of the insured in claims against the person who caused the damage for which the insurer is liable, up to the amount of compensation paid, unless the person who caused the unintentional damage is one of the insured's ascendants or descendants, their spouse, or a person for whose acts the insured is legally responsible.

Article 961

The insured is obligated to:

1. Pay the agreed amounts within the period specified in the contract.

2. Disclose, at the time of concluding the contract, all information that the insurer requests for the purpose of assessing the risks it undertakes.

3. Notify the insurer of any matters that occur during the contract period that would lead to an increase in the insured risks.

Article 962

1. If the insured, in bad faith, conceals a matter or provides an incorrect statement in a manner that diminishes the materiality of the insured risk or leads to a change in its subject matter, or if they fraudulently breach their undertakings, the insurer may demand the termination of the contract and may claim the premiums due before such demand.

2. If fraud or bad faith is absent, the insurer, upon demanding rescission, shall return to the insured the premiums they have paid or the portion thereof in respect of which no risk was borne.

Article 963

The insurer shall only be liable to indemnify the insured for damage resulting from the occurrence of the insured risk, provided that it does not exceed the sum insured.

Article 964

The insurer is obligated to pay the compensation or the amount due to the insured or the beneficiary in the manner agreed, upon the occurrence of the risk or upon the maturity of the term specified in the contract.

Article 965

The insurer's obligation under civil liability insurance shall not arise unless the injured party asserts a claim against the beneficiary after the occurrence of the event giving rise to such liability.

Article 966

Claims arising from an insurance contract shall not be admissible after the lapse of three (3) years from the date of the event giving rise to such claims, unless the law provides otherwise. However, this period shall not apply in the following cases:

1. Concealing data related to the insured risk or providing incorrect or inaccurate data about this risk, in which case the period shall run from the date on which the insurer became aware thereof.

2. The occurrence of the insured event, in which case the period shall run from the date on which the concerned parties became aware thereof.

3. When the cause of the insured's lawsuit against the insurer arises from recourse by a third party against the insured, in which case the period shall run from the date on which the third party institutes proceedings against the insured, or from the date on which the third party recovers compensation from the insured.

Article 967

1. Several persons may engage in cooperative Takaful (solidarity) insurance operations through their participation with cash contributions for the purpose of achieving Takaful and cooperation among a group of participants in facing specific risks, whereby each of them pays a monetary amount called a "contribution," which is deposited into a Takaful insurance fund to achieve its objectives in accordance with the applicable legislations.

2. Each member of the Takaful insurance system is considered insured on a Takaful basis.

3. An agreement may be made to invest these funds, and the investment proceeds shall be distributed to the members according to the agreement.

Article 968

1. The insurer in fire insurance is liable for all damages arising directly from the fire, whatever its cause, or from an incipient fire that may develop into a full fire, or from a fire risk that may materialize.

2. The insurer's obligation includes damages that are an inevitable result of the fire, especially damage to the insured items due to measures taken for rescue or to prevent the spread of the fire.

3. The insurer is liable for the loss or disappearance of the insured items during the fire, unless it is proven that this was the result of theft.

Article 969

1. The insurer is liable for fire damage that occurs due to the non-intentional fault of the insured or the beneficiary.

2. The insurer is not liable for damages caused intentionally or through gross fault by the insured or the beneficiary, even if otherwise agreed.

Article 970

The insurer is liable for fire damage caused by the insured's dependents, whatever the type and extent of their fault.

Article 971

The insurer is liable for damages resulting from the fire, even if the fire arose from an inherent defect in the insured item.

Article 972

1. Any insured who insures an item or an interest with more than one insurer shall notify each of them of the other insurance contracts, the value of each, and the names of the other insurers.

2. The aggregate sum insured, if there are multiple insurers, shall not exceed the value of the insured item or interest.

Article 973

If an item or interest is insured with more than one insurer for amounts that in total exceed the value of the insured item or interest, each insurer shall be obligated to pay a share proportionate to the ratio between the value of the insured item or interest and the total sum insured, without the total amount paid to the insured exceeding the value of the damage they sustained from the fire.

Article 974

Fire insurance that is contracted on the insured's movables as a whole and which are present at the time of the fire in the places they occupy shall extend to items belonging to members of the insured’s family and to persons residing with them who provide them with services.

Article 975

1. If the insured item is encumbered by a pledge, mortgage, or other security in rem, such rights shall attach to the insurance proceeds payable to the insured under the insurance contract.

2. If these rights referred to in Paragraph (1) of this Article are registered or notified to the insurer, the insurer may not pay what they are obligated to pay to the insured except with the consent of those creditors.

3. If the insured item is seized or placed under sequestration, the insurer, upon being notified, may not make any payment to the insured of what they are obligated to pay.

Article 976

The insurer shall be subrogated by operation of law for what they have paid as compensation for the fire in the claims that the insured may have against the person who caused the damage from which the insurer's liability arose, unless the person who caused the damage is a spouse, relative, or in-law of the insured with whom they live in one household, or a person for whose acts the insured is responsible.

Article 977

The insurer in life insurance is obligated to pay to the insured or the beneficiary the amounts agreed upon the occurrence of the insured event or upon the expiry of the term stipulated in the contract, without the need to prove any damage suffered by the insured or the beneficiary.

Article 978

The conclusion of a life insurance contract on the life of a third party requires their written consent before the contract is concluded. If they lack legal capacity, the contract shall not be validly concluded without the consent of their legal representative.

Article 979

1. The insurer shall not be bound to pay the insurance amount if the insured commits suicide. However, the insurer shall return to the beneficiary an amount equal to the value of the insurance reserve, unless the beneficiary proves that the suicide was not intended to result in the payment of the insurance amount, in which case the beneficiary shall be entitled to the premiums paid, less any amount deductible for expenses.

2. If the suicide was not committed of free will or conscious choice, or for any reason leading to a loss of will, the insurer is obligated to pay the full agreed insurance amount, and the beneficiary shall prove that the person whose life was insured was deprived of free will at the time of suicide.

Article 980

1. The insurer is released from their obligations if the insurance is on the life of another person and the insured intentionally causes the death of that person or the death occurs at the instigation of the insured.

2. If the insurance is for the benefit of a person other than the insured and this person intentionally causes the death of the insured or the death occurs at their instigation, they shall be deprived of the insurance amount. If what occurred was merely an attempt to cause death, the insured shall have the right to substitute another beneficiary.

Article 981

1. The insured may stipulate that the insurance amount be paid to specific persons in the contract or to such persons as they may designate later.

2. If the insurance is for the benefit of the insured's spouse, children, descendants, or heirs, the insurance amount shall be due to whoever holds this capacity at the time of the insured's death. If the heirs are the beneficiaries, the insurance amount shall be divided among them according to the statutory shares of inheritance.

Article 982

The insured who has undertaken to pay periodic premiums may terminate the contract at any time by giving written notice to the insurer of their wish, and they shall be discharged from liability for subsequent premiums.

Article 983

1. Incorrect statements regarding the age of the person on whose life the insurance is taken, or any mistake therein, shall not result in the nullity of the insurance contract, unless the true age of the insured exceeds the maximum age specified under the insurance legislation.

2. If, as a result of incorrect statements or a mistake, the premium is less than what should be paid, the insurance amount shall be reduced in proportion to the ratio between the agreed premium and the premium that should have been paid on the basis of the true age.

3. If the agreed premium is greater than what should be paid on the basis of the true age of the person on whose life the insurance is taken, the insurer shall refund the excess paid and reduce the subsequent premiums to the level that corresponds to the true age.

Article 984

If the insurer pays the insurance amount in a life insurance policy, they shall not have the right of subrogation to the rights of the insured or the beneficiary against the person who caused the insured event or the person responsible for it.

Article 985

The amounts agreed to be paid upon the death of the insured shall not form part of the estate of the insured.

Article 986

Suretyship is a contract whereby a person adds their patrimony to that of a debtor for the performance of an obligation, by undertaking, to the creditor, to perform it if the debtor fails to do so.

Article 987

1. Suretyship is concluded by the term "suretyship" and by terms denoting guarantee.

2. For the conclusion and enforceability of a suretyship, the offer of the surety is sufficient, unless rejected by the creditor.

Article 988

Suretyship for a debtor without the debtor’s knowledge is permissible, and it is permissible even despite their opposition.

Article 989

For a suretyship to be concluded, it is required that the surety be legally competent to make a donation.

Article 990

A suretyship is not valid unless the obligation under suretyship is valid.

Article 991

A suretyship shall be void if the surety stipulates an option of recission for themselves.

Article 992

1. A suretyship may be absolute, restricted by a valid condition, suspended upon a suitable condition, deferred to a future time, or temporary.

2. For a suretyship suspended upon a suitable condition, the surety may withdraw their suretyship before the debt arises, provided that the creditor is notified of such withdrawal.

3. If the surety for a future debt has not specified a duration for the suretyship, the surety may withdraw therefrom at any time, as long as the debt under suretyship has not arisen.

4. If the suretyship is for a limited period, the surety shall be liable only for the obligations arising during the term of the suretyship.

Article 993

Whoever stands surety for an obligation of a person of a limited capacity, where the suretyship is due to such limited capacity, and the debtor's obligation is invalidated due to said limited capacity, the surety shall be obliged to perform the obligation vis-à-vis the creditor as a principal debtor.

Article 994

1. Suretyship of a commercial debt shall be deemed a civil act, even if the surety is a merchant.

2. A suretyship arising from an aval in respect of commercial instruments shall always be deemed a commercial act.

Article 995

For a suretyship to be valid, it is required that the guarantee be secured by the principal, and its delivery shall be possible by the surety.

Article 996

A suretyship for the maintenance of the wife and relatives shall be valid, even before it is judicially adjudicated or amicably settled.

Article 997

It shall not be permissible for a seller's agent to stand surety for the purchaser's payment of the price of what they were entrusted to sell, nor for a guardian to stand surety for the price of what they sold from the minor’s property, nor for the administrator of endowment to stand surety for the price of what they sold from the endowment property.

Article 998

1. A suretyship by a person suffering from a terminal illness shall not be permissible if they are indebted by a debt exhausting their entire property.

2. A suretyship by a person suffering from a terminal illness shall not be permissible if their debt does not exhaust their property, and the provisions governing wills shall apply thereto.

Article 999

A suretyship subject to the release of the principal shall constitute an assignment (Hawala), and an assignment subject to the non-release of the assignor shall constitute suretyship.

Article 1000

A suretyship may not be for an amount exceeding that due from the debtor, nor on more onerous conditions than those of the secured debt. However, it may be for an equal or lesser amount and on identical or more lenient terms.

Article 1001

The suretyship shall include the accessories of the debt, the expenses of the first procedural step taken to claim the debt, and any subsequent expenses arising after notifying the surety, unless otherwise agreed.

Article 1002

The surety shall perform their obligation upon maturity. If their obligation is subject to a condition, performance shall become due upon the fulfilment of the condition.

Article 1003

1. The surety shall be discharged upon the discharge of the debtor, and they may invoke all the defences that the debtor may raise.

2. If the defence raised by the debtor is their lack of capacity, and the surety was aware of this at the time of contracting, they may not invoke this defence.

Article 1004

If the creditor receives something else in lieu of their debt, the liability of the principal and the surety shall be discharged, unless that thing becomes subject to entitlement (rei vindicatio).

Article 1005

1. The surety's liability shall be released to the extent of the value of the securities lost by the creditor.

2. Securities are intended to mean any security allocated to guarantee the debt, even if established after the suretyship, and any security established by law.

Article 1006

The surety shall be released from the suretyship if the creditor does not initiate judicial proceedings to claim the debt against the debtor and the surety within six (6) months commencing from the day following the date of maturity of the debt.

Article 1007

If the debtor becomes bankrupt or insolvent, the creditor shall file their claim. Otherwise, their right of recourse against the surety shall lapse to the extent of the damage incurred due to the creditor's delay.

Article 1008

If the surety pays the debt, the creditor shall, at the time of payment, perform the following:

1. Deliver to the surety the necessary documents to enable them to exercise their right of recourse against the debtor.

2. Assign to the surety any movable pledged or retained as security for the debt.

3. Where the debt is secured by a real (in-rem) security over immovable property, take the necessary measures to transfer such real security to the surety, provided that the surety bears the expenses of such measures and is entitled to recover them from the debtor.

Article 1009

1. The creditor may not have recourse against the surety alone except after having recourse against the debtor.

2. The creditor may not levy execution against the surety’s property until after exhausting all the debtor's property, unless the surety is jointly and severally liable with the debtor, or unless the law or the agreement provides otherwise.

3. The surety shall raise the defence before the court as stipulated in this Article.

Article 1010

1. If the surety requests exhaustion of the debtor's property, they shall, at their own expense, direct the creditor to the debtor's property.

2. No regard shall be given to property indicated by the surety if such property is located outside the State or is subject to a dispute.

Article 1011

The surety may be restricted to the payment of the debt from the debtor's funds deposited with the surety, provided that the debtor’s consent is obtained.

Article 1012

If the suretyship is absolute, the surety’s obligation shall follow the obligation of the principal debtor, whether the debt is due immediately or deferred.

Article 1013

If a person stands surety for an immediately due debt by a deferred suretyship, the debt shall be deferred in respect of both the surety and the principal debtor, unless the surety limits the deferment to themselves or the creditor stipulates the deferment for the surety, in which case the debt shall not be deferred in respect of the principal debtor.

Article 1014

If the surety indicates the debtor's assets, the creditor shall be liable towards the surety for the debtor's insolvency or bankruptcy if the creditor fails to take the necessary measures in due time.

Article 1015

If the debt is secured by a real security for the debt and a suretyship is provided after or together with this security, and the surety is not jointly and severally liable with the debtor, execution may not be levied against the property of the surety except after execution against the property allocated to such security.

Article 1016

1. If there are multiple sureties for a single debt, each of them may be claimed for the entire debt, unless they all stood surety in a single contract and did not stipulate joint and several liability therein, in which case none of them shall be claimed except to the extent of their share.

2. Where the sureties have bound themselves by successive contracts, each of them shall be liable for the entire debt, unless they have reserved for themselves the right of division.

Article 1017

A joint and several surety may invoke the defenses related to the debt that a non-joint surety may invoke.

Article 1018

A suretyship stipulated by operation of law or by virtue of a judicial ruling entails joint and several liability among the sureties.

Article 1019

A suretyship of a surety shall be permissible, and in such a case, the creditor may not have recourse against the surety's surety before having recourse against the surety, unless the surety's surety is jointly and severally liable with the surety.

Article 1020

If the sureties are jointly and severally liable among themselves and one of them pays the debt upon its maturity, they shall have the right of recourse against each of the others for their share of the debt and for their portion of the share of any insolvent or bankrupt surety among them.

Article 1021

1. If the principal pays the debt before the surety does, or becomes aware of any reason that prevents the creditor from claiming, they shall inform the surety. If they fail to do so and the surety pays the debt, the surety shall have the option of recourse against the principal or the creditor.

2. If a claim is instituted against the surety, they shall be required to join the principal therein. If they fail to do so, the principal may, as against the surety, invoke any defense by which the creditor’s claim could have been resisted.

Article 1022

If the surety pays the debt, they may subrogate the creditor in all their rights against the debtor. However, if the surety pays only part of the debt, they shall not have recourse for what they paid until the creditor has received their rights from the debtor.