Alqanoni

Civil Transactions Law

Art. 557
Status unknownSaudi ArabiaRegulation

Issued by Ministry of Investment (misa.gov.sa)

1. The capital owner shall solely bear any loss in the mudaraba capital, and any condition to the contrary shall be deemed invalid. 2. If a loss in the mudaraba capital occurs while in the custody of the mudaraba agent without any transgression or negligence on his part, he shall not be required to compensate the capital owner. 3. In the event of any transgression or negligence on the part of the mudaraba agent, he shall compensate the capital owner for any loss in the mudaraba capital and any resulting harm.

The Arabic text is the legally binding version. The English translation is provided for guidance only.

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