The Nature of Trust Contracts Resulting in the Crime of Breach of Trust

Breach of trust generally occurs as a result of either party violating a trust contract, which will be detailed in this article.

According to Qatari legislator in the Penal Code No. 11 of 2004, any person who embezzles, uses, or dissipates any funds, securities, or movable property with the intent to harm the rightful owner or the possessor of those funds, where such property was entrusted to him under a contract of lease, deposit, commodatum, agency, or mortgage, is considered to have committed the crime of breach of trust.

The Qatari legislator, therefore, limits the contracts of trust that may lead to the crime of breach of trust to: (lease contract, deposit contract, commodatum contract, agency contract, mortgage contract).

Lease Contract: A contract by which the lessor commits to allowing the lessee to use the leased property for a specified period in exchange for a known rent. The lessor also commits to delivering the leased property and its accessories as described in the contract. 
(Law No. 4 of 2008 concerning Real Estate Leasing)

Deposit Contract: A contract under which money is deposited with a bank or any entity licensed to accept deposits, where the entity may use the deposited money but must return an equivalent amount to the depositor in the same currency. 
(Law No. 22 of 2004 issuing the Civil Code)

Commodatum Contract: A contract by which one party delivers an item to another for use within a specified period or for a specific purpose, under the condition that it is returned in its original form. In a commodatum, the lender retains ownership and legal possession of the item, while the borrower has only the right to use it. 
(Law No. 22 of 2004 issuing the Civil Code)

Agency Contract: A contract by which the agent commits to performing a legal act on behalf of the principal. In commercial agency, unless expressly agreed otherwise, any general power of attorney extends only to commercial acts. 
(Law No. 27 of 2006 issuing the Commercial Law)

Mortgage Contract: A contract concluded between the provider of the security and the creditor for the establishment of a mortgage right.

Finally, it is emphasized that the crime of breach of trust cannot occur without the presence of one of the aforementioned trust contracts, as outlined exclusively in this article.

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