UAE Civil Transactions Law

Article 768

Book Two: Nominate Contracts · Section Two: Contracts of Usufruct · Chapter One: Lease Contract · Part Six: Certain Types of Leases · 2. Effects of the Musaqah Contract

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.

WAWhatsAppTGTelegram