UAE Civil Transactions Law

Article 795

Book Two: Nominate Contracts · Section Two: Contracts of Usufruct · Chapter Two: Loan for Use ( Commodatum) · Part One: Definition and Effects of Loan for Use

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.

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