Explanation of Article 568
The first paragraph clarified the time considered for each contracting party to deserve their share of the output, which is the time of its realization and not the time of its distribution. Once the output is realized, the contracting party deserves their share of it, even if it has not been delivered to them in fact. The contracting parties may agree otherwise by setting dates when the contracting party deserves their share of the output other than the time of its realization, whether at the end of the participation period or during it. They may also agree on the method of calculating the output by specifying the criteria on which it is calculated.
The second paragraph explained how to divide the assets of the participation in the output upon the termination of the contract and the liquidation of the participation. These assets consist of four matters:
The first matter: the output, which is the subject of participation between the contracting parties, is distributed between them according to their agreed shares.
The second matter: the principal provided by the capital owner and any expenses related to this principal spent by the capital owner are returned in kind to the capital owner because it remains in their ownership.
The third matter: the increments detached from the principal; these are returned to whoever paid their expenses, whether the capital owner or the worker.
The fourth matter: the beneficial expenses connected to the principal spent by the worker; these are returned to the worker unless their separation harms the principal. For example, if the worker in an agricultural participation contract made a beneficial construction on the agricultural land that would be harmed by its separation, the capital owner, upon retrieving the principal, has the choice between compensating the worker for the value of what they spent on these increments or the amount by which the principal's value increased, applying the principle of enrichment without cause.
The end of the paragraph indicated that the rules outlined therein are considered supplementary rules, and the parties may agree otherwise, whether by explicit or implicit agreement, such as if custom or the dealings of the contracting parties differ from what is mentioned, it shall be applied.
Related To
Article 568
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Each contracting party shall be entitled to his share of the output upon realization thereof. An agreement may be made on the method of calculating the output and on its due dates.
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If an output sharing contract expires, the capital owner shall recover his original capital, and the worker shall recover the expenses he incurred for items that are not connected to the original capital and which did not contribute towards the output as well as the useful expenses he incurred for items connected to the original capital the separation of which from such capital would cause damage thereto; in such case, the capital owner may acquire such items and pay to the worker the expenses he incurred or the amount of any increase in the value of the original capital, unless agreed otherwise.