Article 577 of the Saudi Civil Transactions Law
المادة 577 من نظام المعاملات المدنية · الفرع الثاني: عقد المشاركة الزراعية
The worker may ask to terminate the agricultural sharing contract for a sudden excuse before the output appears relating to performing the contract, and is entitled to the fair wage for his work and the value of what he spent, to the extent the capital owner benefited.
Official text (Arabic)
This article has not been amended since the law was issued.
للعامل طلب فسخ عقد المشاركة الزراعية إذا حدث له عذر طارئ قبل ظهور الناتج يتعلق بتنفيذ العقد، ويستحق أجر مثل عمله وقيمة ما أنفقه وذلك بقدر ما عاد على رب المال من نفع، وذلك دون إخلال بتعويض رب المال إن كان له مقتضٍ.
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 577 explained in plain English
This article gives the worker in an agricultural sharing contract the right to request termination of the contract, on specific conditions:
- that a sudden excuse occurs to him.
- that this is before the output appears.
- that the excuse relates to performing the contract.
If the contract is terminated for this reason, the worker does not leave with nothing, but is entitled to:
- the fair wage for his work, that is, the usual wage for the kind of work he performed.
- the value of what he spent.
However, this entitlement is limited to the extent of the benefit the capital owner gained, so the worker does not take more than the owner of the land or trees benefited from his work and expenditure.
It also provides that this does not prejudice compensation of the capital owner where there is a ground for it, that is, if there is something that requires compensating him, his right to it remains.
This rule differs from what Article 576 provides, that the term expiring before the output appears gives neither party anything against the other; Article 577 deals with termination requested by the worker for a sudden excuse, not the end of the term.
To assess whether the excuse permits termination and what each party is entitled to, you can consult a lawyer who specializes in civil cases.
Practical example
Majed contracted to cultivate land in Jazan for a third of the crop, and before the crop appeared an excuse relating to performing the contract arose for him, so he asked for termination. Majed is entitled to the fair wage for his work and the value of what he spent, to the extent the landowner benefited, and the landowner keeps his right to compensation if there is a ground for it.
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 577 of the Saudi Civil Transactions Law
Is the farmer entitled to terminate a muzara'a contract?
Yes, if a sudden excuse relating to performing the contract arises for him before the output appears.
What is the farmer entitled to if he terminates the contract for an excuse?
The fair wage for his work and the value of what he spent, to the extent the capital owner benefited.
Is the landowner entitled to compensation if the farmer terminates for an excuse?
The text provides that the worker's entitlement does not prejudice compensation of the capital owner where there is a ground for it.
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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.