Article 567 of the Saudi Civil Transactions Law
المادة 567 من نظام المعاملات المدنية · الفرع الأول: أحكام عامة
The capital owner must enable the worker to work and the worker must use ordinary care and preserve the property; preservation costs fall on the capital owner and exploitation costs on the worker, who may hire helpers.
Official text (Arabic)
This article has not been amended since the law was issued.
1- يلزم رب المال تمكين العامل من العمل وفق المتفق عليه، ويلزم العامل بذل عناية الشخص المعتاد في العمل والمحافظة على المال.
2- تكون نفقات حفظ الأصل على رب المال، ونفقات استغلاله على العامل؛ وذلك كله ما لم يُتفق على خلافه.
3- للعامل أن يستأجر على نفقته أجراء ليستعين بهم على القيام بكل الأعمال أو بعضها.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 567 explained in plain English
This article sets out the obligations of the two parties to an output-sharing contract and how expenses are divided between them.
First: the basic obligations.
- On the capital owner: enabling the worker to work as agreed.
- On the worker: exercising the care of an ordinary person in the work, and preserving the property.
Second: dividing expenses.
- The expenses of preserving the asset fall on the capital owner.
- The expenses of exploiting it fall on the worker.
This division of expenses applies unless otherwise agreed; the parties may arrange it in another way.
Third: using hired helpers. The worker may hire, at his own expense, hired workers to help him with all or part of the work. Their wages are on the worker, not the capital owner.
This article is linked to Article 566, which defines the output-sharing contract as one in which the capital owner hands a non-consumable thing to a person who exploits it in return for a joint share of the output. It is also linked to Article 568, which explains when each party becomes entitled to his share of the output, and what is returned to each of them when the contract ends.
If there is a dispute about classifying a particular expense as preserving the asset or exploiting it, you can consult a lawyer who specializes in commercial contracts and civil cases.
Practical example
Yasser took over a fishing boat from its owner in Yanbu in return for a share of the catch. The boat's fuel and fishing nets are exploitation expenses, so they are on Yasser, while the expenses of preserving the boat itself are on the owner, unless they agreed otherwise. Yasser may hire sailors to help him at his own expense.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 567 of the Saudi Civil Transactions Law
Who bears the expenses of preserving the asset in an output-sharing contract?
The expenses of preserving the asset are on the capital owner, unless otherwise agreed.
Who bears the operating expenses?
The expenses of exploiting the asset are on the worker, unless otherwise agreed.
May the worker use other workers?
Yes. The worker may hire, at his own expense, hired workers to help him with all or part of the work.
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The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.