UAE Civil Transactions Law

Article 800

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 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.

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