UAE Civil Transactions Law

Article 796

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. 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.

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