Civil Transactions Law (contracts dated before 1 June 2026) · Federal Law 5 of 1985
Article 879
Section 3: Contracts of work > Chapter One: Muqawala (contract to make a thing or to perform a task) > Part 2: Effects of a muqawala > 1- Obligations of the contractor
This law is repealed. The article applies to contracts dated before 1 June 2026; later contracts fall under the 2025 Civil Transactions Law.
English translation
(1) If the work of the contractor produces (a beneficial) effect on the property in question, he may retain it until the consideration due is paid, and if it is lost in his hands prior to payment of the consideration, he shall not be liable to the loss, nor shall he be entitled to the consideration.
(2) If his work produces no (beneficial) effect on the property, he shall not have the right to retain it pending payment of the consideration, and if he does so and the property is lost, he shall be liable in the same manner as if he had misappropriated it.
Official translation, as published by the portal.
Official Arabic text
1 - إذا كان لعمل المقاول أثر في العين جاز له حبسها حتى يستوفي الأجرة المستحقة وإذا تلفت في يده قبل سداد أجره فلا ضمان عليه ولا أجر له. 2 - فإذا لم يكن لعمله أثر في العين فليس له أن يحبسها لاستيفاء الأجرة فإن فعل وتلفت كان عليه ضمان الغصب.
What it means when you sign
This article deals with a contractor who holds property while waiting to be paid. If the contractor's work has produced an effect on the property, the contractor may keep it until the due payment is made. If it is lost while in the contractor's hands before payment, the contractor is not liable for the loss, but also is not entitled to the payment. If the work has produced no effect on the property, the contractor has no right to keep it pending payment. If the contractor keeps it anyway and it is lost, the contractor is liable in the same way as for misappropriation.
When you are about to sign a contract where property is handed over for work, this article means that the right to hold the item until payment depends on whether the work changed it. Clauses on retention of the item, lien, storage, risk and payment on delivery are the ones to read against it. A clause giving the contractor wider or narrower rights to hold the property may differ from the position in this article.
Not yet cited in a Fahm report; shown because it sits in the same chapter as one that is.
Related articles
- Article 876This article says who supplies the additional equipment and tools needed to complete a job under a contract to make a thing or perform a task.
- Article 877Cited in Fahm reportsThis article requires the contractor to complete the work in accordance with the conditions of the contract.
- Article 878This article makes the contractor liable for any loss or damage resulting from the contractor's own act or work, whether or not it came about through the contractor's wrongful act or default.
- Article 880Cited in Fahm reportsThis article covers buildings and other fixed installations where an architect makes the plans and the contractor carries them out under the architect's supervision.
- Article 881This article deals with an architect whose work is limited to making the plans and does not include supervising how they are carried out.
- Article 882Cited in Fahm reportsThis article makes void any agreement whose purpose is to exempt the contractor or the architect from liability, or to limit that liability.