The Juristic Rulings on Financing and Borrowing on Behalf of OthersA Comparative Jurisprudential Study

Abstract

Abstract

This study examines financing and borrowing on behalf of others. It aims to identify the forms of this transaction, clarify the contractual relationship between its parties, and examine the legal rulings and related issues concerning financing and borrowing on behalf of others. The study is divided into two chapters and nine sections.

This transaction occurs frequently, takes various forms, and has multiple implications, which highlights its significance and the need to examine it and clarify its legal rulings.

The study identifies three apparent forms of financing and borrowing on behalf of others. The form examined in this study involves a person entering into a financing or loan contract in his own name with a financing or lending institution, intending to act on behalf of another person as an agent without naming that person. Any proceeds obtained through the contract belong to the principal. According to the majority of jurists, this form is permissible in principle. The study examines its various issues and rulings, particularly the party responsible for the contractual obligations and the ruling concerning a creditor’s gift to or release of the agent from the debt. It also examines the different forms of repayment by the agent on behalf of the principal and the ways in which the agent may benefit from this transaction.