Article 574 of the Saudi Civil Transactions Law
المادة 574 من نظام المعاملات المدنية · الفرع الثاني: عقد المشاركة الزراعية
If the term of an agricultural sharing contract is not fixed, or is too short for harvest or picking, its term is one agricultural cycle in muzara'a and a period sufficient for the first output in musaqah.
Official text (Arabic)
This article has not been amended since the law was issued.
إذا لم تُعين مدة عقد المشاركة الزراعية أو عُيِّنت مدة لا تحتمل بلوغ الحصاد أو الجذاذ؛ تعيَّنت مدة العقد بدورة زراعية واحدة في المزارعة، وبمدة تحتمل حصول أول ناتج في المساقاة.
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 574 explained in plain English
This article addresses two cases in which there is a defect in the term of an agricultural sharing contract:
- the parties do not fix a term for the contract at all.
- they fix a short term that is not enough to reach the harvest (gathering the crop) or the picking (picking the fruit of trees such as dates).
In these two cases the contract is not void; instead the Law fixes its term as follows:
- In muzara'a: the term is one agricultural cycle.
- In musaqah: the term is as long as is sufficient for the first output of the trees.
The purpose of this rule is that neither party be deprived of the fruit of the contract because the contract is silent on the term or fixes it too short, since the sharing rests on dividing the output and has no meaning if it ends before the output appears or is gathered.
Linked to this article are Article 573, which requires each party's share to be a joint share of the output, and Article 575, which explains the capital owner's right if the worker refuses to complete the work.
To avoid dispute, it is advisable to fix a clear and sufficient term in the contract. Anyone with a dispute about the term of his contract can consult a lawyer who specializes in civil cases.
Practical example
Abdullah agreed with a farmer to plant his land with tomatoes in return for half the crop, without fixing a term. Under the article, the term of the contract is one agricultural cycle, and the contract ends when it ends.
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 574 of the Saudi Civil Transactions Law
What is the term of a muzara'a contract if the parties did not fix one?
Under the article, its term is one agricultural cycle.
What if the term of a musaqah is fixed shorter than the time the fruit appears?
If the term is not enough to reach the picking, the term of the contract is fixed as a period sufficient for the first output.
Is an agricultural sharing contract void if its term is not stated?
The article does not provide for voidness; it fixes the term as one agricultural cycle in muzara'a and a period sufficient for the first output in musaqah.
More articles on Partnership and Mudaraba
- Article 528
The article requires partnership contracts and their amendments to be in writing or be void, while barring reliance on the voidness against third parties and limiting its effect between the contracting parties to the period after a voidness claim is filed.
1- يجب أن تكون عقود المشاركة الواردة في هذا الباب مكتوبة، وإلا كانت باطلة، ولا يجوز أن يحتج المتعاقد بالبطلان تجاه الغير، ولا يكون للبطلان أثر فيما بين المتعاقد
- Article 529
The article defines the partnership as a contract under which two or more partners contribute a share of money, work, or both to a project in order to divide its profit or loss, and excludes partnerships governed by special legal provisions.
1- الشركة عقد يسهم بمقتضاه شريكان أو أكثر بتقديم حصة من مال أو عمل أو منهما معًا في مشروع لاقتسام ما ينشأ عنه من ربح أو خسارة. 2- لا تسري أحكام هذا الفصل على ال
- Article 530
The article bars a partner's influence, reputation or financial credibility from being his share, explains how a non-cash share is valued, and says when a partner's obligation ends if his share is a debt owed by a third party.
1- لا يصح أن تكون الحصة أو بعضها ما للشريك من نفوذ أو سمعة أو ثقة مالية. 2- إذا كانت حصة الشريك غير نقدية، قُدرت الحصة بقيمتها عند التعاقد أو بما يتفق عليه الشر
- Article 531
The article allows a partnership to be based on the partners' joint liability for what they undertake in their obligations for its benefit, makes each partner's share in the capital equal to what he undertook unless otherwise agreed, and allows partners to differ in their obligations.
1- يصح أن تقوم الشركة على أساس تضامن الشركاء فيما يلتزمون به في ذممهم من مال أو عملٍ لمصلحة الشركة، وتكون حصة كل منهم في رأس مال الشركة بقدر ما التزم به في ذمته
- Article 532
The article provides that each partner's share is determined by what he undertook in the partnership contract, and that he may not increase it except with the consent of the other partners.
تتحدد حصة كل شريك بالحصة التي التزم بها في عقد الشركة، ولا يجوز للشريك زيادة حصته عن الحصة المحددة في عقد الشركة إلا بموافقة باقي الشركاء.
- Article 533
The article subjects the guarantee of a partner's share to the rules of sale if it is a right of ownership or another real right, and to the rules of lease if it is merely the use of property.
إذا كانت حصة الشريك حق ملكية أو أي حق عينيّ آخر فإن أحكام البيع هي التي تسري على ضمان الحصة إذا هلكت أو استحقت أو ظهر فيها عيب، وإذا كانت الحصة مجرد الانتفاع با
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.