Sharecropping (muzara'a / musaqat) contract template

Sharecropping (Muzara'a / Musaqat) Contract

Contract no.: Contract number

Date: Contract date

Place: City of signing

Parties

First Party (Landowner): First party name, national ID / iqama no. First party ID, national address: First party address, e-mail: First party e-mail, mobile: First party mobile.

Second Party (Farmer): Second party name, national ID / iqama no. Second party ID, national address: Second party address, e-mail: Second party e-mail, mobile: Second party mobile.

Article 1: Recitals and definitions

1.1 Whereas the Landowner owns the land or trees below and wishes to work them, and the Farmer is able to do so, the parties agree this sharecropping, for a shared portion of the produce.

1.2 The recitals and schedules form an integral part of this Contract and are read with it. In a conflict, this Contract prevails, then the schedules in numerical order.

1.3 "Business Day" means any day other than Friday, Saturday and an official holiday in the Kingdom of Saudi Arabia. "Laws" means the laws and regulations in force in the Kingdom.

1.4 This Contract follows Islamic Sharia and the Civil Transactions Law, and contains no interest or stipulated increase on a debt. Any term to the contrary is void, without voiding the Contract unless it was the reason for it.

1.5 Each party confirms that it has legal capacity to contract, that its signatory is authorised, and that entering into this Contract breaches no other obligation binding on it.

Article 2: Land and work

| Item | Details |

| --- | --- |

| Location | Land location and boundaries |

| Area | Area |

| Deed | Deed number |

| Crop or tree type | Crop or tree type |

| Water source | Water source |

2.1 The Farmer ploughs, plants, waters, fertilises, pollinates and harvests, as good farming requires, with its workers and equipment: Farmer equipment.

2.2 Seed and fertiliser: Who supplies seed and fertiliser. Water and power: Who pays water and power. Water and environment permits: Agricultural permits, in line with environment and water rules.

Article 3: Term and produce

3.1 Term: Contract term, from Start date to End date, or until the season matures.

3.2 Produce is shared: Landowner share% to the Landowner and Farmer share% to the Farmer, as a shared portion of the actual produce. No fixed quantity or the produce of a given part may be stipulated for either party.

3.3 If the land yields nothing, neither gets anything, unless that results from the Farmer's misuse or neglect; it cannot claim the value of its work.

3.4 Harvest and sale: Harvest and sale method; the share-out is within Division time days, on a statement or in both parties' presence.

Article 4: Duties

4.1 The Landowner shall hand over the land and allow use, interfere only by ordinary inspection, not end the Contract before the season without excuse, and keep ownership of the land.

4.2 The Farmer shall take ordinary care, not change the crop, cut trees, dig a well or build anything fixed without consent, use no banned pesticide, and not subcontract.

4.3 Pest and disaster protection or insurance: Crop protection and insurance; loss from natural disasters falls on both according to their shares.

Article 5: Ending

5.1 The Contract ends at expiry, by agreement, or on material breach not cured within 30 days.

5.2 On death, the standing crop stays until harvest, and heirs may step in if willing and able. At the end all but the standing crop goes back to its owner, and the site is left clean.

Article 6: Representations and warranties

6.1 The Landowner and the Farmer each confirm the following at signing, and shall tell the other at once if any of it changes:

• the details and documents it has provided are true and complete on everything affecting the other's decision, and it has hidden nothing it knows to be material.

• no claim, seizure, disposal ban, bankruptcy or legal bar prevents performance of this Contract.

• the source of funds and purpose of contracting are lawful, and this Contract is no cover for any prohibited dealing.

• it holds the licences, approvals and legal capacity needed to sign and perform this Contract, and will keep them valid throughout.

6.2 An untrue material statement is a breach of this Contract, subject to its terms and the Civil Transactions Law; deliberately misleading information is deceit that allows annulment and compensation to be sought.

Article 7: Breach and its effects

7.1 A breach notice is in writing, states the obligation breached, what is needed to cure it and a reasonable time of at least 15 days, unless this Contract sets another period. No notice is needed if cure is impossible or the party at fault has said it will not perform.

7.2 Each party may withhold its corresponding obligation that has fallen due if the other has not performed its own, unless that would run against good faith or the failure is minor, under the Civil Transactions Law.

7.3 The injured party shall make reasonable efforts to limit its loss and is not compensated for what it could have avoided. Compensation follows proved loss. Nothing is charged as compensation or increase merely for lateness in paying a sum of money, and the actual costs awarded by the competent authority may be claimed.

7.4 On termination the parties are restored as far as possible, each answering for what it actually benefited from. This Contract does not affect statutory limitation periods or the terms that survive its end by their nature.

Article 8: Documents, correspondence and proof

8.1 Each party keeps a copy of this Contract, its schedules, payment receipts and handover reports for at least 5 years after it ends, or any longer statutory period.

8.2 Correspondence through the e-mail or mobile at the head of this Contract, and approved government platforms, is proof where it can be attributed to its sender, under the Electronic Transactions Law and the Evidence Law. Nothing said orally changes this Contract.

8.3 The party receiving money gives a receipt for each sum, stating what it covers. No payment is a final release unless that is stated in writing.

Article 9: Successors and third parties

9.1 This Contract binds the parties and their lawful successors, within the limits of any estate, unless a party's person was central to contracting. On death, the heirs or their representative shall tell the other party within a reasonable time, and rights are settled under Sharia and the Laws.

9.2 This Contract creates no right for anyone other than the parties unless stated. A party's dealing with what is its own does not affect the other's rights here, and nothing can be raised against a third party in good faith who did not know of it until it is documented or registered where that is required.

Article 10: Personal data protection

10.1 The parties shall comply with the Personal Data Protection Law and its regulations. Where the Farmer processes personal data for the Landowner, it acts as processor and processes it only on the Landowner's written instructions and for the purpose of this Contract.

10.2 The Farmer shall apply suitable security and technical measures, limit access to those who need it, and use a sub-processor only with the Landowner's prior written approval and on equivalent terms.

10.3 The Farmer shall notify the Landowner of any leak or unauthorised access without delay and within 24 hours of becoming aware, with the information the Landowner needs to report to the competent authority within the statutory 72 hours.

10.4 Data leaves the Kingdom only in line with the statutory controls. When the Contract ends, data is returned or securely deleted within 30 days unless a law requires it to be kept.

Article 11: Force majeure and exceptional circumstances

11.1 A party is not liable for delay or failure caused by an event beyond its control that was unforeseeable and unavoidable, provided it notifies the other within 7 days and makes reasonable efforts to limit the effect. Force majeure does not excuse paying what fell due before it occurred.

11.2 Affected obligations are suspended for the duration. If the event lasts more than 60 days, either party may terminate by written notice, with payment for work actually performed.

11.3 If unforeseeable general exceptional circumstances make performance so onerous as to threaten a heavy loss, the affected party may request renegotiation without delay while continuing to perform, as provided by the Civil Transactions Law.

Article 12: General provisions

12.1 Notices are in writing and sent to the addresses at the head of this Contract; the registered e-mail is valid, and a notice counts as received on the next Business Day. Each party shall report any change of address.

12.2 Neither party may assign this Contract or subcontract without the other's prior written approval, and it remains responsible for its subcontractors.

12.3 Delay in using a right does not waive it, and this Contract changes only by a signed written annex. If a provision is void the rest stays in force, unless that provision was the reason for contracting.

12.4 The parties shall comply with the rules against bribery, corruption and money laundering.

12.5 This Contract may be signed electronically under the Electronic Transactions Law, and electronic signatures and records have their legal force. It is made in two copies, one for each party.

Article 13: Governing law and disputes

13.1 This Contract is governed by the laws of the Kingdom of Saudi Arabia, including the Civil Transactions Law, and in a manner consistent with Islamic Sharia.

13.2 The parties shall try to settle any dispute amicably through their representatives within 30 days of notice, and may then use conciliation through the Taradhi platform.

13.3 If it remains unresolved, it shall be decided by: Forum: the competent courts in the city of ... / arbitration under the rules of the Saudi Center for Commercial Arbitration, seated in .... The parties shall keep performing whatever the dispute does not affect.

13.4 Where made in Arabic and English, the Arabic text prevails in any difference.

Schedules

• Schedule 1: copies of IDs and documents relating to the subject.

Signatures

The parties sign this Contract after reading and accepting all of its terms.

| First Party (Landowner) | Second Party (Farmer) |

| --- | --- |

| Name: First party name | Name: Second party name |

| Signature: First party signature | Signature: Second party signature |

| Date: Signing date | Date: Signing date |

| First witness | Second witness |

| --- | --- |

| Name: First witness name | Name: Second witness name |

| ID: First witness ID | ID: Second witness ID |

| Signature: First witness signature | Signature: Second witness signature |