breach of trust in the UAE`s legislation | ABC Law Firm | 0543137555

Breach of trust

Breach of trust

breach of trust crime: It is a temporary crime that occurs and ends once the trustee embezzles money, and it is a crime that requires a men’s rea of the accused and the intention of taking possession of the delivered money to be held in trust.  breach of trust 

The UAE legislator punished for committing a crime of breach of trust, as article 404 of the Federal Penal Code No. 3 of 1987 stipulates: Shall be sentenced to detention or to a fine, whoever embezzles, uses or dilapidates amounts, bills or any other movable property to the prejudice of those entitled whenever the. said movable property are delivered to him on bases of deposit, lease, pledge, loan for consumption or proxy. breach of trust 

In the application of this provision shall be considered as a proxy, the partner in joint property, the officious on the property of the interested owner, and whoever received something to be used in a specific matter for the benefit of its owner or of others.

We will discuss the following points: breach of trust 

Firstly: The elements of the crime of breach of trust. breach of trust 

Secondly: What are the contracts of trust? (deposit, rent, pledge, loan for use, or proxy) breach of trust 

firstly: The elements of the crime of breach of trust:

• Physical element: The physical element requires that the offender to commit a material act of embezzlement, use, or squandering movable property owing by a third party which he possesses it by one of the contracts of trust Referred to in article 404 of the Federal Penal Code and the act that it has been done has been harmed the rights holders.
• psychological element: achieving the psychological element of the breach of trust crime requires that the accused must possess the men’s rea where the accused shall know that the money is owned by a third party. And that his possession of that money is imperfect, not a full one, and to seize the object and to dispose of it as the owner is.

the men’s rea of the breach of trust crime is not achieved merely the accused disposed of the delivered money or mix the money with his money, but This requires a proven intention to possess the money and to deprive the money`s owner of it. moreover, the men’s rea of the crime of breach of trust is not achieved merely the accused refrains to return the money, but also required proven intention to possess and deprive the owner of it, where the offender changes its possession from incomplete to complete possession.

secondly: (deposit, rent, pledge, loan for use, and proxy)

these contracts have named a contract of trust, we will shed the light on these contracts:

• deposit: it is a contract in which a person when receiving an object from another person and shall commit to save this object and deliver it in kind.
• rent: it is a contract in which the lessor is obligated to enable the tenant to use the property for a certain purpose, for a certain period, and a certain allowance (rent amount).
• pledge: a legal contract made between two parties where the first party grants to the second party his own property while retaining his ownership under certain conditions, in exchange for obtaining (the first party) a sum of money from the second party.
• loan for use: it is a contract in which the lender is bound to hand over the borrower, something that is non-expendable, to be used, without compensation, for a certain period or for a particular purpose, to be reimbursed after use.
• proxy: it is a contract under which the proxy undertakes to do legal work for the client’s account.

Should the offense of breach of trust be reported within a certain period?

article 10 of the Code of Criminal Procedure No. 35 of 1992 in UAE stipulates that:   The criminal action may not be lodged, in the following cases, except upon a written or verbal complaint of the victim or his legal representative:

1) Theft, swindling, breach of trust, as well as concealment of objects obtained therefrom, in case the victim is a spouse of the perpetrator or one of his ascendants or descendants and these objects are not seized judicially or administratively or encumbered by a lien in favor of another person.

Unless otherwise provided by law, the complaint shall not be accepted after the lapse of three months as of the victim’s knowledge of the crime and its perpetrator.

Thus, the complaint must be lodged within three months from the day of the victim’s knowledge of the crime in case (the victim is a spouse of the perpetrator or one of his ascendants or descendants) But in other cases, the victim’s right will not be forfeited even if a period of more than three months passed after his knowledge of the crime.