Alqanoni

Civil Transactions Law

Art. 562
Status unknownSaudi ArabiaRegulation

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

1. If the term of the mudaraba contract is not specified, a contracting party may withdraw therefrom at any time, provided that he notifies the other party of his intention to withdraw within a reasonable period and provided that his withdrawal is not an act of fraud or made at an inappropriate time. 2. If the term of the mudaraba contract is specified, a contracting party may not withdraw therefrom prior to the expiration of such term. Said party may petition the court for withdrawal upon providing acceptable justification, provided that he compensates the other party for any harm he sustains as a result of the withdrawal.

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

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