Law No (22) of 2004 Regarding Promulgating The Civil Code

31.08.
2015
Lawno(22)of2004RegardingPromulgatingtheCivilCode
QatarLegislations
Lawno(22)of2004RegardingPromulgatingthe
CivilCode22/2004
NumberofArticles:1188
TableofContent
IssuanceArticles(12)
IntroductoryPart(163)
ChapterOne:ApplicationofLawandTemporalandSpatialJurisdiction(1
38)
SubchapterOne:ApplicationofLaw(12)
SubchapterTwo:TemporalJurisdiction(39)
SubchapterThree:SpatialJurisdiction(1038)
ChapterTwo:Persons(3955)
SubchapterOne:NaturalPerson(3952)
SubchapterTwo:JuridicalPerson(5355)
ChapterThree:ThingsandProperty(5661)
ChapterFour:UseofRight(6263)
SECTION1:PersonalRightsorObligations(64836)
BOOK1:ObligationsinGeneral(64418)
Part1SourcesofObligation(64240)
ChapterOne:Contracts(64191)
SubchapterOne:ElementsofContract(6464)
1ST:Consent(65147)
ExpressionofIntention(6568)
Offer(6971)
http://www.almeezan.qa/LawView.aspx?opt&LawID=2559&language=en
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Acceptance(7274)
CorrespondenceofOfferandAcceptance(7580)
AgencyinContracting(8190)
FormofContract(9195)
CertainParticularFormsofContracting(96107)
PromisetoContract(9699)
ContractingbyEarnestMoney(100102)
ContractingbyAuction(103104)
ContractingbyAdhesion(105107)
ValidityofConsent(108108)
Competency(109129)
DefectsofConsent(130147)
Mistake(130133)
Fraud(134136)
Coercion(137139)
Exploitation(140142)
Injustice(143147)
2nd:SubjectMatter/Object(148154)
3rd:Cause(155157)
SubchapterTwo:Nullity(158168)
1st:VoidableContracts(158162)
2nd:VoidContracts(163163)
3rd:EffectsofNullity(164168)
SubchapterThree:EffectsoftheContract(169182)
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1st:InterpretationoftheContractandDeterminationofitsContent(169
170)
2nd:BindingForceofContracts(171174)
3rd:ProportionalEffectsoftheContract(175182)
SubchapterFour:DissolutionoftheContract(183191)
ChapterTwo:UnilateralDisposition(Intention)(192198)
ChapterThree:ResponsibilityforUnlawfulacts(199219)
ResponsibilityforPersonalActs(199207)
ResponsibilityforThirdPartysActs(208211)
ResponsibilityforDamageCausedbyObjects(212213)
CompensationforDamageresultingfromUnlawfulActs(214219)
ChapterFour:UnjustEnrichment(220221)
ReceiptofUnduePayments(222228)
OfficiousPerformance(229239)
ChapterFive:Law(240240)
Part2:EffectsofObligations(241284)
ChapterOne:PerformanceofObligations(241268)
CompulsoryPerformance(241244)
SpecificPerformance(245255)
CompensatoryPerformance(256268)
ChapterTwo:CreditorsGeneralGuaranteeandMeansofItsProtection(269
284)
CreditorsGeneralGuarantee(269269)
CreditorsUseofDebtorsRights(IndirectSuits)(270271)
ActionsforInvalidationofaDebtor(Acts)(272279)
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RightofRetention(280284)
Part3ModificationofObligationEffects(285323)
ChapterOneConditionandTerm(285296)
Condition(285290)
Deferment(291296)
ChapterTwo:MultipleObjectsoftheObligation(297301)
OptionalObligations(297300)
SubstitutionalObligation(301301)
ChapterThree:MultiplePartiestotheObligation(302323)
1JointObligation(302302)
JointActionofCreditors(303306)
JointLiabilityofDebtors(307320)
1Indivisibility(321323)
Part4TransferofObligations(324353)
ChapterOne:TransferofRights(324336)
ChapterTwo:TransferofDebts(337353)
Part5:TerminationoftheObligation(354418)
ChapterOne:Settlement(354378)
SubchapterOne:PartiestotheSettlement(354369)
SubChapterTwo:ObjectofSettlement(370378)
ChapterTwo:SatisfactionofObligationbyValuableConsideration(379
399)
SubchapterOne:SettlementwithAgreedConsideration(379380)
SubchapterTwo:Novation(381386)
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SubchapterThree:DelegationforSettlement(387389)
SubchapterFour:Setoff(390397)
SubchapterFive:CombinedObligations(398399)
ChapterThree:TerminationofObligationwithoutSatisfaction(400418)
SubchapterOne:Discharge(400401)
SubchapterTwo:ImpossibilityofFulfilment(402402)
SubchapterThree:Limitations(403418)
BOOKTWO:SpecificContracts(419836)
PartI:ContractsrelatingtoOwnership(419573)
ChapterOne:Sale(419487)
SubchapterOne:SaleinGeneral(419420)
1st:ElementsofSale(421428)
2nd:EffectsofSale(429431)
ObligationsofSeller(432465)
ObligationsofthePurchaser(466473)
SubChapterTwo:CertainTypesofSale(474487)
1st:Pledging(474474)
2nd:SaleofOtherPersonsProperties(475476)
3rd:SaleofLitigiousRights(477479)
4th:SalebyaRepresentativetoHimself(480481)
5th:SaleofInheritance(482485)
6th:SaleMadeonaPersonsDeathbed(486487)
ChapterTwo:Barter(488491)
ChapterThree:Gift(492492)
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1st:ElementsofGift(493497)
2nd:EffectsofGift(498504)
ObligationsoftheDonor(498501)
ObligationsoftheRecipient(502504)
3rd:RetractionofaGift(505512)
ChapterFour:Company(513514)
1st:ElementsoftheCompany(515523)
2nd:CompanyManagement(524528)
3rd:EffectsofCompany(529533)
4th:TerminationofCompany(534539)
5th:LiquidationandPartitionoftheCompanyAssets(540545)
CertainTypesofCompanies(546563)
1st:BusinessCompanies(546550)
2nd:SpeculativeVentureCompanies(551553)
3rd:MudarabaCompanies(554563)
ChapterFive:Loans(564572)
ChapterSix:Reconciliation(573573)
1st:ElementsofReconciliation(574576)
2nd:EffectsofReconciliation(577580)
3rd:NullityofReconciliation(581581)
Part2:ContractsrelatingtoUtilizationofThings(582670)
ChapterOne:Lease(582669)
SubchapterOne:Leaseingeneral(582582)
1st:ElementsofLease(583589)
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2nd:EffectsofLease(590619)
ObligationsoftheLessor(590606)
ObligationsoftheLessee(607619)
3rd:AssignmentofLeaseandSublease(620624)
4th:TerminationofLease(625637)
SubchapterTwo:CertainTypesofLease(638669)
1st:LeaseofAgriculturalLands(638647)
2nd:FarmLease(648660)
3rd:LeaseofWaqfProperty(661669)
ChapterTwo:Commodation(670670)
1st:EffectsofCommodation(671678)
ObligationsoftheLender(671673)
ObligationsoftheBorrower(674678)
2nd:TerminationofCommodation(679681)
Part3:EmploymentContracts(682762)
ChapterOne:ContractAgreements(682715)
SubchapterOne:GeneralRulesforContractualAgreements(682682)
1st:ProvisionofMaterials(683686)
2nd:ContractorsObligations(687691)
3rd:ObligationsoftheEmployer(692700)
4th:Subcontracts(701702)
5th:TerminationoftheContractualAgreement(703707)
Subsection2:SpecialProvisionsRelatingtoBuildingandConstructionContracts
(708715)
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ChapterTwo:Agency(716716)
1st:ElementsofAgency(717721)
2nd:EffectsofAgency(722733)
ObligationsoftheAgent(722728)
ObligationsofthePrincipal(729733)
3rd:TerminationofAgency(734737)
ChapterThee:DepositContract(738738)
1st:EffectsofDeposit(739743)
ObligationsoftheDepositary(739741)
ObligationsoftheDepositor(742743)
2nd:TerminationofDeposit(744749)
3rd:CertainTypesofDeposits(750753)
ChapterFour:Receivership(754762)
Part4:AleatoryContract(763771)
ChapterOne:GamingandBetting(763764)
ChapterTwo:LifeAnnuities(765770)
ChapterThree:InsuranceContract(771771)
1st:ConclusionofInsuranceContracts(772780)
2nd:ObligationsoftheInsured(781789)
3rd:ObligationsoftheInsurer(790794)
4th:TransferandLapseofRightsandObligationsArisingfromInsurance
Contract(795802)
5th:FireInsurance(803807)
Part5:Suretyship(808836)
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ChapterOne:ElementsofSuretyship(808816)
ChapterTwo:EffectsofSuretyship(817836)
SuretyCreditorRelationship(817832)
SuretyDebtorRelationship(833836)
SECTIONTWO:Rightsinrem(8371174)
BOOKONE:PrincipalRightsinrem(8371057)
Part1:RightofOwnership(8371014)
ChapterOne:GeneralProvisions(837903)
SubChapterOne:ScopeofRightofOwnership(837840)
SubchapterTwo:RestrictiveCovenantsonOwnership(841851)
SubchapterThree:CommonOwnership(852903)
ProvisionsrelatingtoCommonOwnership(852862)
TerminationofCommonOwnershipbyPartition(863872)
UsufructofDivisionofCommonProperty(873877)
ObligatoryCommonOwnership(878878)
FamilyOwnership(879883)
OwnershipofFloorsandApartments(884892)
AssociationofOwners(893900)
LowerFloorsandUpperFloors(901903)
ChapterTwo:CausesforAcquisitionofOwnership(9041014)
SubchapterOne:InitialAcquisitionofOwnership(Appropriation)(904
908)
SubchapterTwo:AcquisitionofOwnershipamongLivingPersons(909
972)
Accession(909918)
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LegalAcquisition(919919)
Preemption(920934)
Possession(935972)
DefinitionandElementsofPossession(935941)
ProofofPossession(942944)
GoodandBadFaithofPossessors(945947)
TransferofPossession(948952)
LossofPossession(953954)
ProtectionofPossession(ThreeActionsofPossession)(955959)
AcquisitionofFruitsbyPossession(960961)
RecoveryofExpenses(962964)
LiabilityforLoss(965965)
PossessionServesasEvidenceofOwnership(966969)
PossessionofMovables(970972)
SubchapterThree:AcquisitionofOwnershipthroughDeath(9731014)
Inheritance&LiquidationofEstate(973980)
TakingInventoryoftheEstate(981988)
DischargeoftheDebtsoftheEstate(989996)
DeliveryandDivisionoftheEstateProperty(9971011)
ProvisionsApplicabletoEstatesthathavenotbeenliquidated(1012
1012)
Wills(10131014)
Part2:RightsAncillarytotheRightofOwnership(10151057)
ChapterOne:Usufruct,RightofUseandRightofOccupation(1015
1028)
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Usufruct(10151025)
TheRightofUseandRightofOccupation(10261028)
ChapterTwo:TheRightofHekr(10291042)
ChapterThree:Easements(10431057)
BOOKTWO:AncillaryRights(RealSecurities(10581174)
Part1:Mortgage(10581115)
ChapterOne:ConstitutionofMortgages(10581070)
ChapterTwo:EffectsofaMortgage(10711087)
SubchapterOne:EffectsofaMortgageasbetweentheParties(1071
1080)
SubchapterTwo:EffectsofMortgagewithregardtoThirdParties(1081
1087)
1st:RightofPreference(10881091)
2nd:RightofTracing(10921112)
ChapterThree:ExtinguishmentofMortgage(11131115)
Part2:Lien(11161127)
Part3:Pledge(11281164)
ChapterOne:CreationofPledge(11281133)
ChapterTwo:TheEffectsofPledge(11341145)
ChapterThree:TerminationofPledge(11461147)
ChapterFour:CertainTypesofPledge(11481164)
SubchapterOne:PledgeofanImmovable(11481150)
SubchapterTwo:PledgeofMovables(11511156)
SubchapterThree:PledgeofDebts(11571164)
Part4:Privileges(11651174)
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ChapterOne:GeneralProvisions(11651173)
ChapterTwo:KindsofPrivileges(11741174)
SubchapterOne:GeneralPrivilegesandSpecialPrivilegesoverMovables(1175
1183)
SubchapterTwo:SpecialPrivilegesoverImmovable(11841186)
We,HamadBinKhalifaAlThani,theEmirofStateofQatar,
AfterreviewingtheamendedinterimConstitution,inparticularArticles1,23,34
and51thereof
TheCivilandCommercialLawpromulgatedbyLawNo.16of1971,asamended
byLawNo.10of1982
TheCivilandCommercialProceduresLawpromulgatedbyLawNo.13of1990,
asamendedbyLawNo.7of1995
DecreebyLawNo.14of1991regulatingtheMinistryofJusticeanddetermining
itsjurisdictions,asamendedbyLawNo.11of2002
TheJudicialAuthorityLawpromulgatedbyLawNo.10of2003
TheproposalmadebytheMinisterofJustice
ThedraftlawpresentedbytheCabinetand
UponconsultationwiththeShuraCouncil,
HaveissuedthefollowingLaw:
IssuanceArticles
Article1Introduction
TheprovisionsoftheCivilLawattachedheretoshallcomeintoforce.TheIntroductoryPartandBook
One(Articles1to208)oftheaforesaidLawofCivilandCommercialArticlesareherebyrepealed.
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Article2Introduction
All competent authorities, each within its jurisdiction, shall implement the present Law which shall be
publishedintheOfficialGazette.
IntroductoryPart
ChapterOne:ApplicationofLawandTemporalandSpatialJurisdiction
SubchapterOne:ApplicationofLaw
Article1
1. The statutory provisions shall apply, expressly or impliedly, to relevant issues dealt with by the
provisionsherein.
2. Wherethereisnostatutoryprovision,theJudgeshallruleaccordingtotherelevantprovisionof
theIslamicShariah,ifany.OtherwisetheJudgeshallruleaccordingtothecustomarypractice.In
the absence of such customary practices the Judge shall rule in accordance with the rules of
justice.
Article2
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1. A provision of a law can only be repealed by a subsequent law expressly providing for such
repeal,orcontainingaprovisionprejudicingaprovisionoftheformerlaw.
2. Whereanewlawregulatesanewmatterpreviouslyregulatedbyaformerlaw,thenewlawshall
revokealltherelevantprovisionsoftheformerlaw.
SubchapterTwo:TemporalJurisdiction
Article3
1. Saveasotherwiseprovided,thenewlawshallapplytoallcasesfromsuchtimeasitcomesinto
force.
2. Theconsequencesofactionsordispositionsshallremainsubjecttothelawapplicableatthetime
ofconclusionofsuchactionsordispositions,unlesstheprovisionsofthenewlawrelatetopublic
order,inwhichcasetheprovisionsofthenewlawshallapplytosuchconsequences.
Article4
1. Provisionsregardingthelegalcapacityofpersonsshall,fromsuchtimeassuchprovisionscome
intoforce,beapplicabletoallpersonswhofallundersuchprovisions.
2. Changeincapacityinaccordancewiththeprovisionsofthenewlawshallhavenoeffectonany
dispositionspriortotheeffectivedateofthenewlaw.
Article5
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1. New legislative provisions regarding prescription shall apply from such time as they come into
forceinallcasesinwhichtheperiodofprescriptionhasnotbeencompleted.
2. Former legislative provisions, however, shall apply as regards the date of commencement of
prescription,itscessationanditsinterruptioninrespectoftheperiodpriortotheapplicationofthe
provisionsofthenewlaw.
Article6
Wherethenewlawprovidesforextensionofanyincompleteprescription,thepartofsuchperiodprior
totheeffectivedateofthenewlawshallbetakenintoaccount.
Article7
1. When the new law provides for a period of prescription shorter than that provided for in the
formerlaw,thenewperiodshallapplyfromthedateonwhichthenewlawcameintoforce.
2. If,however,theremainingperiodstilltorunundertheformerlawisshorterthanthatfixedbythe
new law, the prescription shall be completed upon the expiry of the remaining period under the
formerlaw.
Article8
Theprovisionsoftheexistinglawshallapplytotheconclusivenessofevidenceeffectivefromthetime
ofoccurrenceofanyincidentsoractsthatrequiretobeprovedbyevidence.
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Article9
TimesshallbecalculatedaccordingtotheGregoriancalendar,unlessthelawprovidesotherwise.
SubchapterThree:SpatialJurisdiction
Article10
Where a dispute arises in the application of different laws to any particular case, the dispute shall be
resolvedbyreferencetoQatarilaw.
Article11
1. The status and legal capacity of persons are governed by the law of the country to which they
belongbyreasonoftheirnationality.
2. Where, however, in a transaction of a financial nature, concluded and effective in Qatar, one of
thepartiesisanincapacitatedforeignerandsuchincapacityisduetoacauseneitherapparentto
nor easily detected by the other party, such cause shall have no effect on the legal capacity of
suchforeigner.
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Article12
1.Thelegalstatusofforeignjuristicpersons,suchascompanies,associationsandcorporations,
shall be subject to the law of the State where such juristic persons have established their
respectiveheadquarters.
1. Where, however, a juristic person conducts its main activity in Qatar, even if its actual
headquartersisoutsideQatar,theQatarilawshallneverthelessapply.
Article13
1. Conditions for the validity of a marriage, such as capacity, acceptance and lack of Sharih
impediments,shallbegovernedbythelawofjurisdiction(nationallaw)ofeachspouseatthetime
ofmarriage.
2. If one of the two spouses is Qatari at the time of the conclusion of the marriage, the Qatari law
aloneshallapplyexceptasregardsthelegalcapacitytomarry.
Article14
Formalities of marriage, such as registration and religious ceremonies, shall be in accordance with the
lawofjurisdictionwherethemarriageisconcluded,orthenationallawofeitherspouse,orthelawof
commondomicileofbothspouses.
Article15
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Uponconfirmingamarriage,itshallbereferredtothelawgoverningtheformalitiesofsuchmarriage.
Article16
1. The personal and financial consequences of marriage, including termination of cohabitation,

submission,mourning,alimonyanddowry,shallberegulatedbythelawofthecountrytowhich
thehusbandbelongsatthetimeofconclusionofthemarriage.
2. If the spouses adopt the same nationality following matrimony, the law of such nationality shall
applytothepersonalandfinancialconsequencesofthemarriage.
Article17
Thelawofcommonnationalityofthespousesatthetimeofdivorce,oratthetimeoffilingfordivorce
orseparation,shallapplytoboth.Ifthenationalityofthespousesisdifferent,thelawofnationalityof
thehusbandatthetimeofmarriageshallapply.
Article18
EngagementshallbegovernedbytheprovisionsoftheprecedingArticlesinconnectionwithmarriage.
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Article19
Thelawofnationalityofthefatheratthetimeofbirthshallapplytoanychildrenbornofthemarriage,
andshallalsoapplytotheadmissionordenialofpaternity.Ifthefatherdiespriortosuchbirth,hislaw
ofnationalityatthetimeofhisdeathshallapply.
Article20
Thelawofnationalityofthefathershallapplytothesubstantiveissuesrelatingtotheguardianshipand
custodyofanychildren.
Article21
Theobligationtopayalimonybetweenrelativesandinlawsshallbegovernedbythelawofnationality
ofthepersonobligedtopaysuchalimony.
Article22
Substantivematters,suchasnaturalandlegalguardianship,trusteeship/receivership,andcustodianship,
andsystemsestablishedtoprotectminors,incapacitatedpersonsandabsentpersons,shallbegoverned
bythelawofnationalityofthepersonrequiringprotection.
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Article23
1. Inheritanceshallbegovernedbythelawofnationalityofthedeceasedatthetimeofdeath.
2. LegaciesinQatarwithoutanylegateeshallbegovernedbytheQatarilaw.
Article24
1. A testament and all other dispositions taking effect after death shall be governed by the law of
nationalityofthetestator.
2. However, the form of the testament and all other dispositions taking effect after death shall be
governedbythelawofnationalityofthepersonatthetimeofsuchdispositionor,orbythelawof
thecountryinwhichsuchdispositionismade.
Article25
1. Possession, ownership, and other real rights in kind as regards immovable property, and the
methodsofacquisition,transferorterminationthereof,shallbegovernedbythelawoftheplace
inwhichtheimmovablepropertyissituated.
2. Thelawofthejurisdictionwherethepropertyislocatedshalldeterminewhethersuchpropertyis
immovableormovable.
Article26
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Acquisition,titleandassociatedrightsinkindofamovableassetandthemethodsofacquisition,transfer
or termination thereof such rights shall be governed by the jurisdiction where such movable asset is
locatedatthetimeofitsacquisition.
Article27
1. In terms of the substantive conditions to be imposed and the effects thereof, a contract shall be
governedbythelawofthejurisdictionofthedomicilecommontothecontractingparties.Ifthe
domicile of one party is different from that of the other party, the law of jurisdiction where the
contract is concluded shall be applied, unless the contracting parties agree otherwise or the
circumstancesindicatethatanotherlawisintendedtobeapplied.
2. Contracts relating to immovable property, however, shall be governed by the law of the
jurisdictioninwhichtheimmovablepropertyissituated.
Article28
Employment contracts between employers and employees shall be governed by the law of jurisdiction
where the head office of the employer is located. If the head office is located abroad, but particular
contractsareconcludedbyofficesbasedinQatar,thenQatarilawshallapplytothosecontracts.
Article29
1. The form of contracts shall be governed by the law of jurisdiction of the country where such
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contractsareconcluded.
2. The law governing the contract in its substantive provisions, the law of the domicile of the
contractingparties,ortheircommonnationallaw,mayalsoapply.
Article30
1. Noncontractual obligations shall be governed by the law of the State in whose territory the act
thatgaverisetotheobligationtookplace.
2. The provisions of the preceding paragraph shall not apply to acts which occurred abroad and
which,althoughconsideredunlawfulunderthelawofthecountryinwhichthetortoccurred,are
consideredlawfulinQatar.
Article31
Obligations arising from unjust enrichment, payment of amounts not yet due, or officiousness shall be
governedbythelawofjurisdictionwheretheactcreatingsuchobligationsoccurs.
Article32
Inlegalrelationshipsinvolvingaforeignelement,Qataricourtsshallapplytherulesofjurisdictionand
procedureasdeterminedbyQatarilaw.
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Article33
The provisions of the preceding Articles shall apply only when no provisions to the contrary are
includedinaspeciallaworinanInternationalConventioninforceinQatar.
Article34
The principles of private international law shall apply in the case of a conflict of laws for which no
provisionismadeintheprecedingArticles.
Article35
1. In the case of persons of unknown nationality or of a person of simultaneous plural nationality,

thelawtobeappliedshallbedecidedbyajudge.
2. Qatarilawshallapply,however,ifaperson,inrespectofQatar,provestohaveQatarinationality
andisatthesametimedeemedbyoneormoreforeignstatestobeanationalofthosestates.
Article36
WheneveritappearsfromtheprovisionsoftheprecedingArticlesthattheapplicablelawisthelawofa
particularstatewithmultiplestatutes,theinternallawofsuchstateshalldeterminewhichstatuteshallbe
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applied.
Article37
Whereitisresolvedthataforeignlawisapplicable,onlytheinternalprovisionsofsuchforeignlawshall
apply,andtheprovisionsrelatingtoprivateinternationallawshallbeexcluded.
Article38
TheprovisionsofaforeignlawapplicablebyvirtueoftheprecedingArticlesshallnotbeappliedifthey
conflictwiththepublicorderormoralsinQatar.Insuchevent,theQatarilawshallapply.
ChapterTwo:Persons
SubchapterOne:NaturalPerson
Article39
1. The personality of a human being shall commence upon being born alive and shall cease upon
death.
2. Missing, absent and foundling persons shall be subject to the provisions prescribed in special
laws.Intheabsenceofsuchspeciallaws,theprovisionsoftheIslamicSharihshallapply.
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Article40
Afetusinuteroshallbecapableofrights,providedthatitissubsequentlybornalive.
Article41
The domicile of a person is his place of habitual residence. Such person may have more than one
domicilesimultaneously.
Article42
Theplacewhereapersonexercisesatradeorprofessionshallbeconsideredhisdomicileinconnection
withsuchtradeorprofession.
Article43
1. Thedomicileofanincapacitated,missingorabsentpersonorofaminorshallbethedomicileof
hislegalrepresentative.
2. However, the minor or incapacitated person shall nevertheless retain his special domicile in
respectofanyactsthatheislegallyqualifiedtoperform.
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Article44
1. Achosendomicilemaybeelectedforaspecificlegalact.
2. Thechosendomicileshallapplyunlessexpresslylimitedtocertainacts.
3. Thechosendomicilemustbeprovedinwriting.
Article45
1. Thefamilyofapersonshallconsistoftheperson'sspouseandrelatives.
2. Personshavingacommonancestoraredeemedtoberelatives.
Article46
1. Linealconsanguinityistherelationinadirectlinebetweenpersonswhodescendfromthesame
ancestor.
2. Collateral consanguinity is the relationship between persons who are related by a common
ancestorbutdonotdescendfromeachother.
Article47
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1. Thedegreeoflinealconsanguinityshallbedeterminedonthebasisthateachdescendantisrelated
byadegree,withoutcountingtheancestor.
2. Thedegreeofcollateralconsanguinityshallbedeterminedbythenumberofdescendantsupfrom
onedescendanttothecommonancestorandthendownfromsuchcommonancestortotheother
descendant,withoutcountingthatancestor.
Article48
Thedegreeofaffinityshallbedeterminedbythedegreeofrelationshiptothespouse.
Article49
1. Anypersonwhoattainstheageofmajorityandisinpossessionofhismentalfacultiesshallhave
fulllegalcapacitytoperformlegalacts,unlessguardianshiporcustodyofhispropertyisdecided
tobecontinuedorunlesssuchpersonisincapacitated.
2. Theageofmajorityshallbe18years.
Article50
1. Nopersonwholacksdiscretionbyreasonofyouthorimbecilityorinsanityshallbecompetentto
exercisehiscivilrights.
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2. Apersonundertheageofsevenyearsshallbedeemednottohavereachedtheageofdiscretion.
Article51
Any person who has reached the age of discretion, but has not reached the age of majority, and any
person who has reached the age of majority but is prodigal or negligent, shall be deemed to lack
capacityunderthelaw.
Article52
Personsofnoordefectivecapacityshallbegovernedbytheprovisionsofnaturalorlegalguardianship
orcuratorshipoverpropertyasprovidedforbyspeciallaws.
SubchapterTwo:JuridicalPerson
Article53
Juridicalpersonsare:
1. Thestate,administrativeunitsthereofhavinglegalentityrecognisedbylaw,andmunicipalities
2. Publicauthoritiesandestablishments
3. Awqaf
4. Civilandtradingcompanies,saveasexcludedbyaspecialprovision
5. Privateassociationsandfoundations,otherthanasprovidedbylaw.
6. Any grouping of persons or properties having a juridical personality under the provisions of the
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law.
Article54
Within the limits established by law, a juridical person shall enjoy all rights except those which
presupposeintrinsicallyhumanattributes.
1. Ajuridicalpersonshallhave:
1. Aseparatepatrimonium.
2. Legalcapacitywithinlimitsdefinedbyitsfoundingconstitutionorasprovidedbylaw.
3. Therighttosue
4. A separate domicile located at its head office. The location of any branch of a juridical
personmaybedeemeditsdomiciletotheextentoftheactivityofsuchbranch.
5. Itsownnationality.
2. Ajuridicalpersonshallhaveitsownrepresentative(naturalperson)toexpressitswill.
Article55
Where a juridical person engages in activity in Qatar but maintains its head office abroad, such head
officeshallbedeemeditsdomicileinconnectionwithitsactivityinQatar.
ChapterThree:ThingsandProperty
Article56
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1. Anythingthatisnotoutsidetheambitoftradebyitsnatureorbyvirtueofthelawmaybecome
thesubjectmatterofproprietaryrights.
2. Things that by their nature fall outside the ambit of trade are those things that no person can
exclusively possess. Things that by law fall outside the ambit of trade are those things not
authorisedbylawtobethesubjectmatterofproprietaryrights.
Article57
1. Allimmovableormovablepropertyofthestateorpublicjuristicpersonsallocated,eitherinfact
orbylaw,forapublicbenefitshallbedeemedtobepublicfunds.
2. Inallevents,suchpublicfundsmaynotbedisposedof,attachedoracquiredbyprescription.
Article58
Public property shall cease to be such upon the termination of its allocation for a public benefit. Such
allocation shall terminate by fact or by law or upon the removal of the public benefit for which such
propertyhasbeenallocated.
Article59
1. Any asset of property that is fixed to the Earth and cannot be moved without destroying or
alteringitshallbedeemedrealpropertyotherwiseitshallbedeemedamovableasset.
2. However,anymovableassetplacedinrealpropertybytheownerthereoftoserveortobeutilised
fortheserviceorexploitationofsuchrealpropertyshallbedeemedimmovablebyreasonofits
intendeduse.
3. Every real right attached to immovable property shall be deemed real property and all other
proprietaryrightsshallbedeemedmovableproperty.
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Article60
1. Fungiblesaregoodsorcommoditiesthatarereplaceablebyanotheridenticalitem,andwhichare
assessedintradebynumber,quantity,weightormeasure.
2. Ad valorem things are those things whose individual value or qualities may customarily vary
significantlyandwhicharerarelytraded.
Article61
1. Consumablesarethosethingswhosebenefitisonlyrealisedbyconsumption,wasteorspending.
2. Allthingsintendedforsaleincommercialstoresaredeemedtobeconsumable.
ChapterFour:UseofRight
Article62
Anypersonwholawfullyexerciseshisrightsshallnotbeliableforanyharmarisingtherefrom.
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Article63
Theexerciseofarightshallbeunlawfulinanyofthefollowingcircumstances:
1. Ifthedesiredinterestbysuchuseisunlawful
2. Ifsuchuseisintendedsolelytocausedamagetoothers
3. Iftheinterestsdesiredaredisproportionatetotheharmthatwillbesufferedbyothersor
4. Ifsuchusemaycauseunusuallygrossdamagetothirdparties.
SECTION1:PersonalRightsorObligations
BOOK1:ObligationsinGeneral
Part1SourcesofObligation
ChapterOne:Contracts
SubchapterOne:ElementsofContract
Article64
Without prejudice to any special formalities that may be required by law for the conclusion of certain
contracts, a contract shall be concluded from the moment an offer and its subsequent acceptance have
beenexchangedifthesubjectmatterandcauseofsuchcontractaredeemedlegal.
1ST:Consent
ExpressionofIntention
Article65
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1. An intention shall be expressed orally or in writing, by a commonly used sign, by actual

consensualexchange,andalsobyconductthat,inthecircumstances,leavesnodoubtastoitstrue
meaning.
2. Adeclarationofintentionmaybeimpliedwhenneitherthelaw,northeagreement,northenature
ofthetransactionrequiresthatsuchdeclarationbeexpressed.
Article66
1. An expression of intention shall become effective once uttered. However, the expression shall
havenoeffectunlessitcomestothenoticeoftheintendedrecipient.
2. Subject to proof to the contrary, the intended recipient shall be deemed to have notice of the
declarationofintentionfromthetimethatitreacheshim.
Article67
The expression of intention shall have no effect if a retraction thereof reaches the intended recipient
beforeoratthesametimeastheexpressionreacheshim.
Article68
1. Wheretheexpressionofintentiondiffersfromtheactualintentoftheofferor,theintentshallbe
paramount.
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2. However, the offeree may rely on such expression even though it contradicts the intent of the
offeror if he proves that he believed the expression conformed, without ambiguity, with the true
intentoftheofferor.
Offer
Article69
1. Anoffermaybeaddressedtounidentifiedpersonsaslongastheidentityofthedesiredoffereeis
notdeemedessentialtothecontract.
2. The offer of goods accompanied by an indication of their prices shall be regarded as an offer
subjecttotherulesoftrade.
3. Savewheretheconditionsofthesituationshowotherwise,publications,advertisements,sending
or distributing price lists used in current trading, as well as any other statement connected with
offersorordersaddressedtothepublicorparticularindividuals,shallnotberegardedasanoffer.
Article70
1. Theofferorshallhavetheoptiontoretracthisofferaslongasitisnotaccepted.
2. Where,however,theofferorhasfixedatimelimitforacceptance,orsuchtimelimitisrequiredby
the circumstances or the nature of the transaction, the offer shall remain open throughout such
timelimitandlapseuponitsexpiry.
Article71
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Thedeathorlossoflegalcapacityoftheofferorshallterminatetheoffer.
Acceptance
Article72
1. Theacceptancemustbeinconformitywiththeofferforconcludingthecontract.
2. Anacceptancethatgoesbeyondtheoffer,orthatisaccompaniedbyarestrictionormodification,
shallbedeemedtobearejectioncomprisinganewoffer.
Article73
1. No statement shall be attributed to a person who remains silent, but silence in circumstances
requiringastatementshallbedeemedanacceptance.
2. Silence in particular shall be deemed an acceptance where there have been previous dealings
between the two contracting parties and the offer is related to such dealings or if it appears to
benefittheofferee.
3. Abuyer'ssilenceafterreceivingpurchasedgoodsshallberegardedasacceptanceofthetermsof
asale.
Article74
Acceptanceshallbeterminatedbytheofferee'sdeathorlossoflegalcapacityifthisoccursbeforethe
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acceptancereachesthenoticeoftheofferor.
CorrespondenceofOfferandAcceptance
Article75
Wheretheofferismadeduringthecontractsessionwithoutcontainingatimelimitforacceptance,both
parties shall retain the option until the session ends. Where the offeror retracts his offer or the session
endswithoutacceptance,theoffershallbeconsideredterminated.
Article76
Saveasotherwiseagreedorrequiredbylaworcustomaryusage,thecontractshallbedeemedtohave
beenconcludediftheofferisaccepted.
Article77
Acontractconcludedbycorrespondenceshallbedeemedtohavebeenmadeatthetimeandplacewhen
andwhereacceptancereachestheofferor'snotice,unlessotherwiseagreedorrequiredbylaworusage.
Article78
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Acontractmadebytelephone,overtheinternet,orbyanyothersimilarmeansshall,inrespectoftime,
be regarded as having been concluded between present contracting parties. Such contract shall, in
respectofplace,beregardedashavingbeenconcludedbetweenabsentcontractingparties.
Article79
1. Wherethecontractingpartieshaveagreedonalltheessentialtermsofthecontractandhaveleft
certain details to be agreed at a later date without stipulating that, failing agreement on these
details,thecontractshallnotbeconcluded,thecontractshallbedeemedtohavebeenconcluded.
2. In the event of a dispute regarding those details not yet agreed upon, the court shall resolve the
disputeaccordingtothenatureofthetransaction,theprovisionsofthelawandcustom,andthe
rulesofjustice.
Article80
1. Where the contracting parties agree that their affairs shall be governed by the provisions of a
standardcontractorstandardregulations,suchprovisionsshallapplyunlessanypartyprovesthat
they had no notice of such provisions or had no opportunity to discover them at the time of the
agreement.
2. Where such provisions of which no notice has been taken are essential, the contract shall be
invalid. If the provisions are auxiliary, the judge shall resolve any dispute arising therefrom in
accordancewiththenatureofthetransaction,currentusageandtherulesofjustice.
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AgencyinContracting
Article81
Unlessthelawrequiresitbeconcludedpersonallybytheprincipal,acontractmaybeconcludedbyan
agentontheprincipal'sbehalf.
Article82
1. Thescopeofthepowerandauthorityoftheagentshallbedeterminedbythedeedofhispowerof
attorney.
2. However, if the power of attorney arises under an agreement and the principal announces his
agent'spowerandauthorityandnotifiesthirdparties,anypersonwhoreceivestheannouncement
or notice may contract with the agent pursuant to such power and authority even if they exceed
thatsetforthinthedeedofpowerofattorney.
Article83
1. Where a contract is entered into by an agent without the necessary authority, he and not the
principalshallbeliableforallactsrelatingtovicesofconsent.
2. Where, however, the agent acted in accordance with the principal's authority and precise
instructions, the principal may not plead the ignorance of his agent of circumstances which the
principalkneworshouldhaveknown.
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Article84
When a contract is concluded by an agent within the scope of authority conferred by the principal,
liabilityresultingtherefromshallbeincurredbytheprincipal.
Article85
Whereapersonconcludesacontractwithanagentwhodoesnotdisclosehiscapacityasanagent,the
contract shall be deemed to have been concluded between the agent personally and the contractee,
unlessthecontracteeknowsorshouldhaveknownoftheagent'scapacity,oritmakesnodifferenceto
himwhetherheconcludedthecontractwiththeagentortheprincipal,inwhichcasethecontractshall
operateinfavouroforbindtheprincipal.
Article86
Where the agent concludes a contract on behalf of the principal after the agent's authority has
terminated,thecontracteemayrelyonorpleadtothecontractonthebasisofthevalidityoftheagency
if he and the agent were unaware at the time of concluding the contract that the agent's authority had
terminated,ortheycouldnothaveknownaboutsuchterminationiftheyhadmutatismutandisexercised
reasonablecareanddiligenceasrequiredbythecircumstances.
Article87
1. Where a person concludes a contract for another without being his agent, or if he exceeds the
scopeofhisagency,theeffectsofsuchcontractshallnotbebindingontheprincipalunlessthe
agent'sactshavebeenratifiedpursuanttothelaw.
2. Where the agents acts have not been authorized, the other contracting party may claim
compensation from the person who assumed the capacity of agent or exceeded the scope of his
agency, except if the other contracting party knew or should have known that there was no
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agencyorthatthescopeoftheagencyhadbeenexceeded.
Article88
Save as otherwise provided for by law or by customary rules, no agent shall be permitted to
conclude a contract with himself in the name of the principal, even for the account of a third
party, without the express permission of his principal. The agent's acts shall not be binding on
theprincipalunlessheratifiesthem.
Article89
No agent may delegate his power of attorney to another person without being authorise d to do so
pursuanttotheagreementorthelaw.
Article90
Where the power of attorney has expired and the agent is in possession of the evidentiary deed, the
agentshallsurrenderthedeedimmediatelyuponitsexpiry.
FormofContract
Article91
1. Unlessotherwiserequiredbylaw,noparticularformofconsentshallberequiredforconcluding
thecontract
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2. Ifthelawimposesaparticularformforconcludingthecontractandsuchformisnotobserved,the
contractshallberenderedinvalid.
Article92
Wherethecontractingpartiesstipulateaparticularformfortheconclusionofthecontract,neithermay,
withouttheconsentoftheother,pleadtheconclusionofthecontractunlessittakestheagreedform.
Article93
Wherethelawrequires,orthecontractingpartiesagreeon,aparticularformofcontract,andadispute
arisesoverwhethersuchformisrequired,itshallnotberegardedasarequirementforthecontract.
Article94
Wherethelawortheagreementrequiresaparticularformforconcludingthecontract,suchformshall
be observed in the promise contract thereof and the subsequent agreed amendments, but not in the
supplementaryconditionswhichdonotcontradictitscontents,unlessotherwisestipulatedbylaw.
Article95
Where the contract concerns an object, the delivery thereof shall not be required for concluding the
contractunlessotherwiserequiredbylaw,agreementorusage.
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CertainParticularFormsofContracting
PromisetoContract
Article96
WithoutprejudicetoArticle94above,thecontractbywhicheitherorbothcontractingpartiespromiseto
concludeaspecificcontractinthefutureshallonlybebindingifalltheessentialtermsofthecontract
envisagedandthetimewhenthecontractshouldbeconcludedarestated.
Article97
1. Where the promise contract is binding on both parties, each shall conclude such contract in its
finalformandunderthesameconditionswithinthetimelimitdeterminedthereby.
2. Amendmentstothepromisecontractshallbepermittedbyagreementorwheredeemednecessary
bythecircumstancesandnatureofthetransaction.
Article98
1. Wherethepromisecontractisbindingononeparty,itshallbeconcludedifacceptedbytheparty
favoured by the promise and his acceptance reaches the notice of the promisor within the time
limitprescribedforthepromise.
2. The promisor's death or loss of legal capacity shall not preclude the conclusion of the promised
contractifitisacceptedinaccordancewiththeprecedingparagraph.
3. In the event of the promisee's death, the option to accept the promised contract shall pass to his
successorsunlesshispersonalpresenceisintegralorparamounttothepromise.
Article99
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1. Where either party breaches their obligation to conclude the promised contract, the other party
may, if not in breach, claim a judgment against the party in breach for the validity and
enforceabilityofthepromisecontract.
2. The judgment recognizing the promise contract as valid and enforceable shall replace the
promisedcontractwithoutprejudicetotherequirementsofthelawforregisteringsuchacontract.
ContractingbyEarnestMoney
Article100
Anearnestpaymentmadeattheconclusionofthecontractshallserveasapresumptionthatbothparties
have the option to withdraw, unless it transpires that they intended otherwise or customary usage
prescribesotherwise.
Article101
1. Thepartywhohaspaidtheearnestmoneybutwithdrawsfromthecontractshallforfeittheearnest
money.
2. Thepartywhohasreceivedtheearnestmoneybutwithdrawsfromthecontractshallrepaydouble
theamountreceived,evenifthewithdrawalcausesnoprejudice.
Article102
1. Wheretheagreementorusagespecifiesnotimelimitforexercisingtheoptiontowithdraw,such
optionshallcontinueuntilthecontractingpartyindicateshisdesiretoconcludethecontract.
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2. Whereonepartyfailstoperformhisobligationswithinthespecifiedtimelimitorisunreasonably
dilatory,theotherpartymayconsidersuchfailureordelayasawithdrawalfromthecontract.
ContractingbyAuction
Article103
1. Thebidderatanauctionshallremainboundbyhisbiduntilanotherbidderoffersahigherbidor
untiltheauctioncloseswithoutawinningbid.
2. The failure of a bid because of an outbid shall not preclude the nullification or rejection of the
latter bid. The contract shall be concluded when the auction is adjudicated. However, if the
conditions of the auction require that such adjudication should be authenticated, such
authentication shall be obtained for the conclusion of the contract from the date of adjudication,
unlessotherwisestatedbythelaworindicatedbytheintentofthecontractingparties.
Article104
As an exception to the provisions of the preceding Article, a bid shall not fail because of a higher bid
offeredinanenvelope.Thebiddermayacceptthebidhedeemsthemostappropriateunlessotherwise
statedbythelaworindicatedbytheintentofthecontractingparties.
ContractingbyAdhesion
Article105
Conceding to a standard contract set by the offeror for all his clients, the conditions of which are not
negotiable,shallnotprecludeitsconclusionbytheadhesionofonepartytothewilloftheother.
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Article106
Ifacontractismadebyadhesionandcontainsarbitraryconditions,thejudgemayattherequestofthe
adheringpartyamendsuchconditionssoastoexpungethemfully,eveniftheadheringpartyprovesto
haveknownthereofasprescribedbyjustice.Anyagreementtothecontraryshallbeinvalid.
Article107
Incontractsofadhesion,doubtshallbeinterpretedinfavouroftheadheringparty.
ValidityofConsent
Article108
Consenttocontractshallbevalidonlyifgivenbyalegallycompetentperson.
Competency
Article109
Everypersonwhohasnotbeendeclaredbythelawtobeoftotalorpartiallegalincapacityshallhave
thelegalcapacitytoconcludeacontract.
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Article110
Dispositionsofpropertybyaminorlackingdiscretionshallbedeemedvoid.
Article111
1. Dispositions of property by a minor possessing discretion shall be valid when wholly to his
advantageandvoidwhenwhollytohisdisadvantage.
2. Subject to the following provisions, dispositions of property by a minor capable of discretion,
which may be simultaneously profitable and detrimental, may be liable to invalidation in his
interest unless immediately ratified, mutatis mutandis, by the guardian authorise d to carry out
such disposals or by the court, as the case may be, or by the minor after attaining the age of
majorityinaccordancewiththelaw.
Article112
Where a discerning minor has attained the age of sixteen years and has been authorise d to take
possessionofhispropertyinordertomanageit,orhastakenpossessionofhispropertybyvirtueofthe
law,actsperformedbytheminorshallbevalidwithinthelimitsofthelaw.
Article113
Adiscerningminorwhoreceivespropertyforadministrationshallbelegallycompetenttoperformthe
disposalsrequiredfortheadministrationofsuchproperty.However,suchdiscerningminorshallnotbe
legallycompetenttoleasethepropertyforaperiodlongerthanoneyear.
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Article114
A discerning minor shall be legally competent to dispose of the property delivered to him or placed
under his disposal for the purposes of his maintenance. The minor's obligations concerning such
maintenanceshallbevalidonlyinrelationtosuchproperty.
Article115
1. Adiscerning minormay conclude an individualemploymentcontractpursuanttothe provisions

of the law. The court may, at the request of the guardian, trustee or any interested person,
terminate the contract for the benefit of the minor's interests or future or for another apparent
benefit.
2. Fromtheageoffifteenyears,adiscerningminorshallbelegallycompetenttodisposeofthewage
or other income he earns, and his obligations shall be valid only in relation to such money.
However, subject to the minor's interests, the court may place restrictions upon the minor's
competence to dispose of the money, and in such cases the provisions for guardianship or
trusteeshipshallbemutatismutandis.
Article116
A discerning minor who attains sixteen years of age shall, with the permission of the court, be legally
competenttoconcludewills.
Article117
1. Where a person of incomplete competence claims to be legally competent, such claim shall not
preventhimfrominsistingonhisincompletecompetenceinaccordancewiththelaw.
2. However, where a minor, for the purpose of concealing his lack of competence, acts in a
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fraudulentmannerthatleadstothereasonablebeliefthatheislegallycompetent,heshallbeliable
to compensate a party with whom he contracts for any damages arising from such contract. In
suchcase,thejudgemaydismisstheinvalidationactionforthecompensation.
Article118
1. The courts shall interdict a person suffering from insanity, imbecility, inattentiveness or
prodigality,inaccordancewiththerulesandproceduresprescribedbylaw.
2. Requestsforinterdictsanddecisionsthereonshallberecordedinregistersspeciallypreparedfor
suchpurposes.
Article119
EffectiveDate:08/08/2004
1. Any contract concluded by a person suffering from insanity or dementia after the registration of
theinterdictionapplicationshallbenullandvoid.
2. A contract concluded before the registration of the interdiction application shall not be deemed
nullandvoidunlesstheconditionofinsanityordementiawasamatterofcommonknowledgeat
thetimethecontractwasconcludedoriftheotherpartyhadknowledgethereof.
Article120
1. Contractsconcludedbyapersonplacedunderinterdictionforprodigalityorinattentivenessafter
theregistrationoftheinterdictionapplicationshallbegovernedbytheprovisionsofArticle111
regulatingdispositionofpropertybyminorspossessingdiscretion.
2. Actsoccurringbeforetheregistrationoftheinterdictionapplicationshallnotbevoidorvoidable
unlesstherehasbeenfraudulentcollusiontoavoidtheinterdiction.
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Article121
Thedisposalofawakf(endowment)ortheexecutionofawillbyapersonplacedunderinterdictionfor
prodigalityorforinattentivenessshallbevalidiftheinterdictedpersonhasreceivedauthorizationfrom
thecourt.
Article122
Managementactscarriedoutbyapersonplacedunderinterdictionforprodigalityorforinattentiveness
but authorise d to take possession of his property shall be valid according to the rules and procedures
prescribedbythelawwithinthelimitsofArticle112concerningdiscerningminors.
Article123
A person placed under interdiction for prodigality or inattentiveness shall be legally competent to
performdisposalsrequiredforadministeringpropertydeliveredtohim.
Article124
A person interdicted for prodigality or inattentiveness and who has been authorise d to manage his
property shall be legally competent to manage the property assigned to him within the limits provided
forinArticle114concerningdisposalofpropertybydiscerningminors.
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Article125
Apersonplacedunderinterdictionforprodigalityorinattentivenessshallbelegallycompetenttoenter
intoanemploymentcontractanddisposeofwhatheearnsforsuchemploymentwithinthesamelimits
inArticle115concerningdiscerningminors.
Article126
Actsbynaturalguardians,legalguardiansorcuratorsshallbevalidwithinthelimitsprescribedbythe
law.
Article127
Whereapersonisseverelyphysicallydisabled,particularlydeafanddumb,blindanddeaf,orblindand
dumb, and cannot understand the contents or surrounding circumstances of a contract, or cannot
effectivelycommunicatehiswill,thecourtmayappointajudicialassistanttoassistsuchpersonasmay
benecessaryinhisbestinterests.
Article128
Unless the court has permitted the judicial assistant to perform an act unilaterally, any act for which
judicialassistancehasbeenorderedshallbeliableforinvalidationifperformedbythedisabledperson
withoutassistanceaftertheregistrationofthedecisionprovidingforsuchassistance.
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Article129
Where a person cannot, due to severe debilitating illness, conclude a disposal even with judicial
assistance,orifthepersonabstainsfromdoingso,thecourtmaypermitthejudicialassistanttoconclude
thedisposalunilaterallyiffailuretoconcludeitmayendangertheconcernedperson'sinterests.
DefectsofConsent
Mistake
Article130
1. Whereacontractingpartycommitsamistakewithoutwhichhewouldhavenotgivenhisconsent
to the terms of the contract, such contracting party may demand voidance of the contract if the
other contracting party commits the same mistake, or knows of its occurrence, or could easily
havedetectedsuchmistake.
2. However,voidanceofacontractinrespectofgiftsmayberequestedwithouttakingintoaccount
theothercontractingparty'sparticipationinthemistakeorhisknowledgethereof.
Article131
Theeffectofthemistakeshallbeenforcedevenwhereitappliestotheruleoflawconcerninganymatter
ofthecontract.
Article132
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Apartywhoseconsentwastheresultofamistakemaynotinsistonsuchmistakeinamannercontrary
totheprinciplesofgoodfaith.Theotherpartymay,inparticular,insistonorpleadtotheconclusionof
theintendedcontract,providedthatsubstantialharmisnotcaused.
Article133
Thevalidityofthecontractshallnotbeaffectedbymerearithmeticalorwritingmistakes.Theseerrors
must,however,besimplycorrectedbymutualagreementbetweentheparties.
Fraud
Article134
1. A contract may be declared void on the grounds of fraudulent misrepresentation by the person
whohasgivenhisconsentasaresultofdeception,ifitcanbeprovedthatthecontractwouldnot
havebeenconcludedbytheotherpartyhadhehadknowledgethereof
2. Lyingandintentionalsilenceastothefactsorastotheaccompanyingcircumstancesinrelationto
thecontractand/orkeepingsilentaboutsalientpointsshallberegardedassubterfuge.
Article135
1. Voidanceofacontractonthegroundsoffraudulentmisrepresentationshallrequireproofthatthe
subterfugewasduetotheconductoftheothercontractingparty,hisrepresentativeoroneofhis
subordinates,thebrokerheempoweredtoconcludethecontract,orofthepartyinwhoseinterest
thecontractwasconcluded.
2. Where the fraudulent misrepresentation is caused by a third party, the deceived party may only
demandvoidanceofthecontractifitisestablishedthattheothercontractingpartywas,orshould
necessarilyhavebeen,awareofthefraudulentmisrepresentation.
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Article136
Inrespectofacontractoragift,voidancethereofmayberequestedifconsenttoitstermswasgivenasa
resultoffraud,evenifcausedbyathirdparty.
Coercion
Article137
1. A contract may be voidable as a result of duress if one of the parties has contracted under the
stressofajustifiablefearunlawfullyinstilledinhim.
2. Fear is deemed to be justified when the affected contracting party was confronted by
circumstancesthatledhimreasonablytobelievethatagrievousandimminentdangertolife,limb,
honourorpropertythreatenedhimorothers.
3. In determining the extent of the duress, the gender, age, knowledge or ignorance, and health of
the affected contracting party, as well as any other circumstance that might have aggravated the
duress,shallbetakenintoaccount.
Article138
1. Voidance of a contract on the basis of duress shall be justified where the duress emanated from
theconductofthecontractingpartyorhisrepresentative,oroneofhissubordinates,orthebroker
he empowered to conclude the contract, or of the party for whose interest the contract was
concluded.
2. Wheretheduressiscausedbyathirdparty,theaffectedpartymaynotdemandvoidanceofthe
contract unless it is established that the other contracting party had, or should necessarily have
had,knowledgethereof.
Article139
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In contracts relating to gifts, voidance thereof may be requested if consent to its terms was given as a
resultofduress,evenifcausedbyathirdparty.
Exploitation
Article140
Where a person exploits another person out of need, obvious frivolity, visible vulnerability, or sudden
heat of passion, or his moral influence over the other person causes that other person to conclude a
contractinhisownorathirdparty'sfavour,andsuchcontractcontainsanexcessiveimbalancebetween
theobligationshemustperformandthematerialormoralbenefitsheshallobtainfromthecontract,the
judgemay,attherequestoftheaffectedparty,reducehisobligations,orincreasetheobligationsofthe
otherparty,orvoidthecontract.
Article141
Inrespectofcontractsofgiftconcludedasaresultofexploitation,thejudgemay,attherequestofthe
donor, mutatis mutandis annul the contract or reduce the amount of the fund donated, taking into
considerationdueprocessandfairness.
Article142
1. Actions filed for exploitation shall prescribe after the lapse of one year from the date of the
conclusionofthecontract.
2. However, where the defect from which exploitation arises continues, the oneyear period shall
onlycommencefromthedatewhensuchdefectdisappears.
3. Inanycase,theactionshallfallawayafteraperiodoffifteenyearshaselapsedfromthedateof
theconclusionofthecontract.
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Injustice
Article143
Injustice that does not result from mistake, fraud, duress or exploitation shall not affect the contract,
exceptinthespecialcasesdeterminedbythelaw.
Article144
1. Where the contract causes excessive injustice to the State, other public juridical persons, an
incompetentorsemicompetentperson,ortheendowment(Waquf)authority,theaggrievedparty
may request an amendment to his or its own obligation, or to that of the other party, in order to
redresssuchexcessiveinjustice.
2. Injustice shall be considered excessive if it exceeds onefifth at the time of concluding the
contract.
3. Injustice may be objected to even where the contract is concluded by the legal representative of
theaggrievedpersononhisbehalf,orwherethecourtsopermits.
Article145
Thepartyenteringintoacontractwithanaggrievedpersonmayavoidanamendmenttotheobligations
underthecontractbyrequestingtheterminationofthecontract,unlessotherwisestipulatedbythelaw.
Article146
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Contractsconcludedbyauctionortendermaynotbeobjectedtoforinjusticeiftheywereconcludedin
accordancewiththelaw.
Article147
1. Actionstocompensateinjusticeshallbecomeinvalidifnotinstitutedwithinoneyear.
2. InthecaseoftheState,otherjuridicalpublicpersons,andtheendowment(Waquf)authority,the
oneyearperiodshallcommencefromthedateoftheconclusionofthecontract.
3. In the case of legally incompetent and semiincompetent persons, the oneyear period shall
commencefromthedateofconferraloffulllegalcompetenceorfromthedateofdeath.
4. Inanyevent,theactionshallfallawayafteraperiodoffifteenyearshaselapsedfromthedateof
theconclusionofthecontract.
2nd:SubjectMatter/Object
Article148
Where the subject matter/object of an obligation is something impossible in itself, the contract shall be
invalid.
Article149
1. Thesubjectmatterofacontractmaybeafuturething,providedthatthecontractisnotaleatory.
2. However,anagreementrelatingtotheestateofalivingpersonshallbevoid,notwithstandingthe
consentofsuchperson,saveincasesprovidedforbylaw
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Article150
1. The subject matter of the obligation shall be expressly and diligently identified, otherwise the
contractshallbeinvalid.
2. Where the obligation relates to some material object, such thing shall be identified in its kind,
quantityandquality.
3. Where, however, a thing is identified by its type, it shall be sufficient to include in the contract
such provision as may be required to identify the quantity of such thing. Where there is no
agreementonthedegreeofqualityandsuchqualitycannotbeascertainedbyuseorbyanyother
circumstances,theobligeemustsupplyanarticleofaveragequality.
Article151
Acontractshallbevoidifthesubjectmatteroftheobligationbreachespublicorderormorality.
Article152
Where the subject matter of the obligation is an amount of money, the obligor shall pay such amount
withouteffectinganychangeinitsvalue,evenifthepartiesagreeotherwise.
Article153
1. Where the object of an obligation is to pay a sum of money, payment shall be made in Qatari
Riyals.
2. However,wherethepartiesagreetomakesuchpaymentinaforeigncurrency,paymentshallbe
madeinsuchcurrency.
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Article154
1. Thecontractmayincludeanyprovisionagreedtobythecontractingparties,unlesssuchprovision
isprohibitedbylaworinbreachofthepublicorderormorality.
2. Whereaprovisioninthecontractisillegal,however,suchprovisionshallbeinvalid,evenifthe
contractisvalid,unlesseitherpartyprovesthatitwouldnothaveagreedtoenterintothecontract
withoutsuchprovision,inwhicheventthecontractshallberevoked.
3rd:Cause
Article155
1. Acontractshallberevokedwheretheobligationofacontractingpartyiswithoutgoodcauseor
unlawful.
2. In the determination of good cause, the motive for concluding the contract shall be taken into
accountiftheothercontractingpartywasawareormusthavebeenawarethereof.
Article156
The obligation shall be deemed to be lawful and with good cause, even if not stated in the contract,
unlessevidencetothecontraryisprovided.
Article157
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1. Thecauseofthecontractshallbeitstruecauseuntilevidencetothecontraryisprovided.
2. Wherethecauseisfictitious,anypartyallegingthattheobligationhasanotherlawfulcauseshall
provideevidencetosupportthisallegation.
SubchapterTwo:Nullity
1st:VoidableContracts
Article158
A voidable contract shall be effective unless revoked. Where revoked, such contract shall be deemed
voidabinitio.
Article159
1. Where the law recognises the right of one of the contracting parties to revoke the contract, the
otherpartycannotavailhimselfofthisright.
2. Where the right of revocation is available and the holder thereof requests its enforcement, the
courtshallsoenforceit,unlessthelawprovidesotherwise.
Article160
Whereavoidablecontractisauthorisedbythepartyholdingtherightofrevocation,whetherexpressor
implied,suchrightshallnotbeapplicabletothedefect,thecauseofsuchauthorization.
Article161
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1. Unless the law provides otherwise, the right to demand the revocation of a contract shall
prescribedifnotinvokedwithinthreeyearsfromthedateonwhichtherightarose.
2. Prescription shall run: in the case of legal incapacity, from the date of the cessation of such
incapacity in the case of mistake or fraudulent misrepresentation, from the date on which the
mistakeormisrepresentationisdiscoveredinthecaseofduress,fromthedateithasceased.
3. In all cases, the right to demand the revocation of a contract as a result of mistake, fraudulent
representationorduressshalllapseafteraperiodoffifteenyearshaselapsedfromthedateofthe
Article162
1. Anyconcernedpartymaynotifythepartyholdingtherightofrevocationtodeclareitsintentionto
authoriseorrevokesuchcontractnolaterthanthreemonthsfromthedateofsuchnotice.
2. A notice shall not be effective unless given during the time limit before the right of revocation
lapses.
3. Wheretheperiodofthenoticeexpireswithoutadeclarationofauthorizationorrevocationofthe
contracthavingbeenmade,suchomissionshallbedeemedauthorizationofthecontract,provided
thatthenoticeisgiventosuchpartyinperson.
2nd:VoidContracts
Article163
1. Aninvalidcontractshallhavenoeffect,andeveryconcernedpartymayholdtosuchinvalidity.
Thecourtmayexofficioruleonsuchinvalidity.
2. Aninvalidcontractmaynotbecorrectedbyauthorizationthereoforbylapseoftime.
3. An invalidity suit shall prescribe after a period of 15 years has elapsed from the date of the
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3rd:EffectsofNullity
Article164
1. Whereacontractisvoidorannulled,thecontractingpartiesshallbereinstatedtothepositionthey
wereinpriortotheconclusionofthecontract.Wheresuchreinstatementisimpossible,damages
equivalenttoanylossincurredmaybeawarded.
2. Where, however, a contract concluded by a person without legal capacity or with deficient
capacity is invalid or annulled by reason of such lack of capacity or deficient capacity, such
personshallonlybeliabletorefundanyprofitsherealisedfromtheperformanceofthecontract.
Article165
1. The invalidity of titletransferring contracts shall not be effective against a special successor that
may receive a right in kind from either contracting party, provided that such successor received
suchrightasindemnityingoodfaith.
2. A special successor shall be considered a bona fide party if, at the time of transfer thereto, this
successorwasnotawareofthereasonforrevokingthecontractofitspredecessor,andcouldnot
haveknownofsuchreasonifthesuccessorexercisedprudentandreasonablejudgement.
Article166
Whereanyprovisionofthecontractisinvalidorvoidable,suchprovisiononlyshallberevoked,unless
itisevidentthatthecontractwouldnothavebeenconcludedwithoutsuchprovision,inwhicheventthe
contractshallberevokedinfull.
Article167
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Where a void or voidable contract contains the elements of another contract, the contract shall be
deemed valid to the extent of the other contract, whose elements are available if the intention of the
contractingpartiesindicatesthattheywishtoconcludesuchothercontract.
Article168
1. Whereacontractisinvalidorrevokedduetoamistakecommittedbyeitherpartytheotherparty
or any third party may claim indemnity for any damage that may arise from such invalidity or
revocation.
2. Indemnity shall not be applicable if the party suffering damage due to such invalidity or
revocationmayhavecontributedtosuchdamage,orkneworshouldhaveknownofthecauseof
suchdamage.
3. TheprovisionsofthisArticleshallbesubjecttotheprovisionsofArticle117ofthisLaw.
SubchapterThree:EffectsoftheContract
1st:InterpretationoftheContractandDeterminationofitsContent
Article169
1. Wherethewordingofthecontractisclear,itshallnotbecapableofdeviatingfromorconstruing
theintentofthecontractingparties.
2. Whereacontractmustbeconstrued,thecommonintentionofthepartiesshallbesoughtwithout
restrictiontotheliteralmeaningofthewords,takingintoaccountthenatureofthetransactionas
well as the honesty and confidence that should prevail between the parties in accordance with
commercialcustom.
Article170
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1. Anydoubtinthewordingofthecontractshallbeinterpretedinfavouroftheobligor.
2. However, where the contract contains a clause discharging a party from liability, such provision
shallbeconstruednarrowly.
2nd:BindingForceofContracts
Article171
1. Pacta sunt servanda i.e., a contract duly and properly concluded between the parties must be
kept,andnonfulfilmentoftherespectiveobligationsisabreachofthatcontract.Suchacontract
may be revoked or altered only by mutual consent of the parties or for reasons provided for by
law.
2. Where, however, as a result of exceptional and unforeseeable events, the fulfilment of the
contractual obligation, though not impossible, becomes excessively onerous in such a way as to
threatentheobligorwithexorbitantloss,thejudgemay,accordingtothecircumstancesandafter
taking into consideration the interests of both parties, reduce the excessive obligation to a
reasonablelevel.
3. Anyagreementtothecontraryshallbevoid.
Article172
1. A contract shall be performed in accordance with its provisions and in such manner consistent
withtherequirementsofgoodfaith.
2. A contract shall not be limited only to binding a party to its provisions but shall also cover
whateverisrequiredbylaw,customarypracticeandjustice in accordance with the nature of the
obligationscontainedinthecontract.
Article173
Whereanominalcontractisconcluded,theconcealedcontractandnottheapparentcontractshallbind
thecontractingpartiesandthegeneralsuccessorofeachparty.
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Article174
1. The creditors of the contracting parties and the special successor of each party may hold to the
concealed contract and may prove by all means that the contract, which caused damage to such
creditors, is not real. Such creditors may, if they are bona fide creditors, hold to the nominal
contract.
2. Where the interests of the concerned parties are in conflict, such that some hold to the nominal
contractandotherstotheconcealedcontract,theformershallprevail.
3rd:ProportionalEffectsoftheContract
Article175
Subject to the provisions of inheritance, the effects of a contract shall be binding on the contracting
parties and the general successor, unless such effects are not applicable to the general successor in
accordancewiththecontract,thenatureofthetransactionoraprovisionofthelaw.
Article176
1. Whereacontractcreatespersonalrightsandobligationsinconnectionwithspecificproperty,and
such rights and obligations are deemed to identify or complement such property, and such
propertyistransferredtoaspecialsuccessor,suchrightsandobligationsshallalsobetransferred
tosuchsuccessoratthetimeoftransferofsuchproperty.
2. Suchobligationsshallbebindingonthespecialsuccessoronlyifsuchsuccessoris,orcouldhave
been,awareofsuchobligationsatthetimeoftheproperty'stransfer.
3. Theaboveprovisionsshallapplyintotounlessthelawprovidesotherwise.
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Article177
Acontractshallnotcreateanyobligationsbindinguponthirdpartiesbutmaygrantrightsinsuchthird
parties'favour.
Article178
1. A person who binds himself to another person in order to commit a third party to an obligation
shallhimselfbeboundbysuchobligation.
2. Where the third party rejects the performance of the obligation, the person who made the
undertakingshallbeliabletoindemnifytheothercontractingpartyagainstanydamageduetothe
breach of such undertaking, unless the party who made the undertaking fulfils the obligation
himself, provided that this party can do so without causing any damage to the other contracting
party.
3. Where,however,thethirdpartyacceptstheundertaking,itshallbeboundtheretoandtherelevant
contracting party shall be discharged from such undertaking. The third party shall be bound by
such undertaking from the time of acceptance thereof, unless it is indicated expressly or by
implicationthattheconsentisretroactivefromthedateoftheagreementbetweenthecontracting
parties
Article179
1. Wherehecontractsonhisownbehalf,apersonmaystipulateparticularobligationsontheother
contractingpartyinfavourofanythirdparty,providedthatsuchpersonhasamaterialormoral
interestinsuchobligations.
2. Intheeventofsuchastipulationinfavourofathirdparty,thebeneficiarymaybeaprospective
personorapersonnotparticularlyidentifiedinsuchstipulationifsuchpersoncanbeidentifiedat
thetimeofperformingtherelevantobligation.
Article180
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1. Unlessotherwiseagreed,thestipulationinfavourofathirdpartyshallberequiredtoprovethat
thebeneficiaryhasapersonaldirectrighttobedemandedandmaycalluponthecontractingparty
todoso.
2. A stipulating party may demand the other contracting party to confer the relevant right on the
beneficiary,unlessthecontractindicatesthatsuchademandislimitedtothebeneficiary.
Article181
The obligor may plead against the beneficiary to all the pleadings arising from the contract which he
mayhaveclaimedagainstthestipulatingparty.
Article182
1. The stipulating party, but not his heirs or creditors, may revoke the stipulation before the
beneficiary notifies the stipulator or the undertaking party of his intention to revoke such
stipulation,unlesstherevocationwascontrarytothespiritofthecontract
2. Upon revocation of such stipulation, the obligor shall not be discharged from liability but shall
remain obliged towards the stipulating party, unless agreed otherwise or the nature of the
obligationrequiresotherwise.
3. Uponrevocationofsuchstipulation,thestipulatormaysubstituteanewbeneficiaryfortheformer
beneficiary,ormayretainforhimselfthebenefitofthestipulation.
SubchapterFour:DissolutionoftheContract
Article183
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1. Incontractsbindingonbothpartiesandimposingreciprocalobligations(synallagmaticcontracts),
whereoneofthepartiesfailstoperformhisobligation,theotherpartymay,uponformalnoticeto
the former, demand performance of the contract or its rescission, and may claim any damages
causedbysuchfailuretoperform.
2. The judge may, mutatis mutandis, determine a period of grace within which the obligor shall
performhisobligation.Thejudgemayalsorejecttheapplicationforrescissioniftheobligation
notperformedisinsignificantcomparedwiththeobligationsconsideredintheirentirety.
Article184
1. The parties may agree that, in the case of a failure to perform the obligations arising from the
contract,suchcontractshallbedeemedtohavebeenrescindedipsofactowithoutacourtorder.
2. Such an agreement may not limit the authority of the judge to terminate the contract, unless the
wordingofthecontractexpresslyindicatesthatthisistheparties'mutualintention.
3. Otherthanincommercialtransactions,anagreementtodeemacontractrescindedipsofactoshall
notreleasethepartiesfromtheobligationofservingaformalnotice.Anyagreementbetweenthe
partiestothecontraryshallbevoid.
Article185
Whenacontractisrescinded,thecontractingpartiesshallbereinstatedtothepositiontheywereinprior
to the date of the conclusion of the contract. If reinstatement is impossible, the court may grant
indemnity.
Article186
1. Theterminationoftitletransferringcontractsshallnotbeeffectiveagainstaspecialsuccessorthat
may receive a right in kind from either contracting party, provided that such successor received
suchrightasindemnityandingoodfaith.
2. A special successor shall be considered a bona fide party if, at the time of transfer to it, such
successor is not aware of the reason for revoking the contract of its predecessor and could not
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haveknownofsuchreasonifthesuccessorusedreasonablecareinthecircumstances.
Article187
1. Incontractsbindingononeparty,whereperformanceoftheobligationbecomesimpossibledue
toforcemajeurebeyondthecontroloftheobligor,thecontractshallterminateautomatically.
2. Wheresuchimpossibilityispartial,theobligeemayenforcethecontracttotheextentofsuchpart
oftheobligationthatcanbeperformed.
Article188
1. In contracts binding on both parties, where performance of an obligation by one party is

extinguishedbyreasonofimpossibilityofperformanceduetoforcemajeurebeyondthecontrol
of the obligor, such obligation and correlative obligations shall also be extinguished and the
contractdeemedrescindedipsofacto.
2. Where such impossibility is partial, the obligee may either enforce the contract to the extent of
suchpartoftheobligationthatcanbeperformedordemandterminationofthecontract.
Article189
1. Thecontractingpartiesmaymutuallyagreetoterminatethecontractuponitsconclusion,provided
thatthesubjectmatterofthecontractremainsinthepossessionofeitherparty.
2. Wherethesubjectmatterofthecontractislost,damagedordisposedofinpartinfavourofathird
party,thecontractmayberescindedtotheextentoftheremainingpartandtheshareoftheparty.
Article190
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In terms of its correlative effects, rescission shall be deemed termination of the contract between the
contractingpartiesandanewcontractinfavourofthirdparties.
Article191
1. In contracts binding on both parties, where corresponding obligations are due for performance,
eitherpartymaydeclinetoperformhisobligationiftheotherpartyfailstoperformhisobligation,
unlessthepartiesagreeotherwiseormutuallyacceptedpracticeprovidesotherwise.
ChapterTwo:UnilateralDisposition(Intention)
Article192
1. A legal act by sole will shall not create any obligation or amend or terminate any existing
obligation,otherthanwhereprovidedbylaw.
2. Ifthelawprovidesthatanobligationiscreated,amendedorterminatedbysuchlegalactmadeby
sole will, such act shall extend to the provisions of the law that govern the contract in general,
otherthanthoseinconflictwithactingbysolewill.
Article193
Any person who makes a promise to the public of a reward in consideration for the performance of a
job,suchpartyshallbeboundtodelivertherewardtothepersonwhoperformssuchjobaccordingto
theagreedconditions,evenwheresuchpersonperformedthejobpriortoreceivingpromise,orwithout
thoughtofthepromiseofreward,orwithoutknowledgethereof.
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Article194
1. Wherethepartyofferingthepromisedeterminesatimeframeforitsdelivery,hemaynotwithdraw
thepromiseduringsuchperiod.Thepromiseshall,however,lapseaftertheexpiryofthisperiod.
2. However, where the party offering the promise has not determined a timeframe for delivery of
suchpromise,hepartymaywithdrawitbynoticetothepublicinthesamemannerasthepromise
wasoffered,orinasimilarmannerthroughothermedia.
Article195
1. Withdrawalofapromisetogiveaprizeshallbeeffectiveonlyfromthedateofitbeingdeclared
tothepublic,withoutprejudicetotherighttosuchprizeofthepersonwhoperformedtherequired
jobbeforesuchdeclaration.
2. Wherethejobisnotperformed,anypersonwhohascommencedbutnotcompleteditpriortothe
withdrawal of the promise may demand the party offering the promise to pay him, within the
limitsoftheprize,anyexpensesincurredtherein.Provided,however,thatsuchpersoncanprove
hecouldhavecompletedthejobinatimelymanner.
Article196
Thepartyofferingthepromiseshalldecidewhethertheprizeispayableornotwithinsixmonthsfrom
theexpirydateoftheperiodsetoutinthenotice,unlesssuchnoticecontainsanotherdate.
Article197
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Thepromisetogiveaprizeorgivingittothepersonentitledtoitshallnotestablishtherightoftheparty
givingthepromisetothebenefitofthejob,unlesstheconditionsofthepromiseprovideotherwise.
Article198
The suit to claim a prize or other rights arising from the promise shall prescribe after a period of six
months from the date of the decision referred to Article 196 above, or from the date of declaring the
withdrawalofthepromise,asthecasemaybe.
ChapterThree:ResponsibilityforUnlawfulacts
ResponsibilityforPersonalActs
Article199
Anypersonwhocommitsanactthatcausesdamagetoanotherpartyshallbeliabletoindemnifysuch
damage.
Article200
1.Apersonoftheageofdiscretionshallbeliableforthecommissionofunlawfulacts.
2.However,wheredamageiscausedbyapersonwhohasnotreachedtheageofdiscretionandsuch
personcannotbeheldliabletoindemnifysuchdamage,thecourtmayrequiresuchpersontopayafair
indemnity,takingintoaccountthepositionoftheparties.
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Article201
1.Damagespayablebyapersonresponsibleforanyunlawfulactshallbelimitedtothelossincurred
andprofitforfeitedbytheaggrievedparty,providedthatthelossresultedfromtheunlawfulact.
2.Suchlossorforfeitedprofitshallbedeemedanaturalresultoftheunlawfulactifitcouldnothave
beenavoidedbyusingreasonableeffortsasrequiredinthecircumstancesbyareasonableperson.
Article202
1.Indemnityagainsttheunlawfulactshallcoverdamagesevenwheresuchdamagesaremoral.
2.However,indemnityagainstmoraldamagesarisingfromdeathmaynotbegrantedotherthanto
the spouse and relatives up to the second of kin for physical, mental or psychological suffering they
sustainedduetosuchdeath.
Article203
The right to indemnity for moral damages may not be transferred to a third party unless their value is
fixedbylaworbyagreement,oriftheobligeeclaimssuchindemnitybeforethecourt.
Article204
Where a person proves that damages have arisen from a cause beyond his control, such as force
majeure,unforeseenincidentorthefaultofthevictimorathirdparty,suchpersonshallnotbeliablefor
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suchdamages,unlessthereisaprovisiontothecontrary.
Article205
1.Whereapersoncausesdamageinlawfuldefenceofhimself,hisreputationorhisproperty,orin
lawful defence of another person or his reputation or property, such person shall not be liable for
damages incurred by such defence, provided that such defence shall not exceed the extent reasonably
necessarytopreventharm.
2.Wherethedefenceexceedsreasonablebounds,suchpersonshallbeliablefordamagesincurred
accordingtotherequirementsofjustice.
Article206
Anypersonwhocausesdamagetothirdpartiesinordertoavoidmoreseriousdamagetohimselforto
anotherpersonshallnotbeliablefordamagesincurredotherthanthosedeemedfitbythecourt.
Article207
Apublicofficialshallnotbeliablefordamagestothirdpartiescausedbyhisactsunlessheactedunder
instructionsissuedbyhissuperior,providedthatcompliancewithsuchinstructionswasobligatoryorthe
officialreasonablybelievedittohavebeenobligatory,andprovidedthatsuchofficialprovesthathehad
reasonablegroundstobelievethathisactswerelawfulandthatheusedreasonablecareanddiligencein
theperformanceofsuchacts.
ResponsibilityforThirdPartysActs
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Article208
1. Any person obliged by law or by agreement to guard a person by reason of age or mental or
physical condition shall indemnify any damage caused by such other person to third parties by his
unlawfulact.Thisobligationshallapplyevenwheresuchpersonwhocommitstheunlawfulacthasnot
reachedtheageofdiscretion.
2.Aminorshallbeguardedifyoungerthan15yearsor,if15yearsold,isstillinthecustodyofhis
guardian.
3. Guardianship of a minor shall be transferred to his teacher at school or to his trainer in a craft,
providedthattheminorshallremainunderthesupervisionofsuchteacherortrainer.
4.Guardianshipofaminorwifeshallbetransferredtoherhusbandortoanypersoninchargeofthe
guardianshipofthehusband.
5. A person in charge of such guardianship may be discharged from liability for damages if such
person can prove that he properly performed his duty of guardianship and that the damage was
inevitable.
Article209
1.Anemployershallbeliablefordamagescausedbyitsemployeeduetotheunlawfulactofsuch
employee,providedthatsuchactoccurredduringthecourseandscopeofhisemployment.
2.Theemploymentrelationshipshallbeestablishedwheretheactivitiesoftheemployeethatarein
furtheranceofdutiesthatareowedtotheemployerandwheretheemployeris,orcouldbe,exercising
somecontrol,directlyorindirectly,overtheactivitiesoftheemployee.
Article210
1. A personresponsiblefor the acts ofa thirdparty may recourseagainstsuchathirdparty tothe

extent of the amount paid by such person to the victim as indemnity against the unlawful act of such
thirdparty.
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2.However,thestateorownerofaprivateschoolorprivateinstitutemaynotrecourseagainstthe
teacherinconnectionwiththeindemnitytothevictim,evenifsuchindemnitycannotbecollectedfrom
themoneyofthestudenthimself,unlesstheteacherhascommittedapersonalerror.
Article211
Anypersonwhooccupiesaplaceforaccommodationorotherwiseshallbeliableforanydamagesthat
may be suffered by a third party due to things being dropped or falling from such place, unless the
damageoccurredduetoacausebeyondthecontrolofsuchperson.
ResponsibilityforDamageCausedbyObjects
Article212
1.Anypersonincustodyofthingsthatrequirespecialcaretopreventtheoccurrenceofdamageshall
be liable to indemnify the damage caused by such things, unless such damage occurs due to a cause
beyondthecontrolofsuchperson.
2.Thingsthatrequirespecialcaretopreventtheoccurrenceofdamageshallincludecars,airplanes,
ships and other vehicles, mechanical machines, weapons, electric wires and equipment, animals,
buildingsandanyotherthingthatmay,byitsnatureorcondition,beconsidereddangerous.
3.Custodyofananimalshallremaintheresponsibilityofthecustodian,eveniftheanimalislostor
escapes. However, the custodian shall not be liable if damage occurs in such places where livestock
animalsareallowedtograzefreelywithoutbeingunderanyperson'scontrol.
Article213
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1.Anypersonconfrontedbytheriskofdamagecausedbyaparticularthingmaydemandthatthe
ownerorcustodianofsuchthingtaketherequiredmeasurestoavoidsuchrisk.
2. Where the owner or custodian of a thing fails timeously to take the required measures to avoid
such risk, any person threatened by such risk may obtain permission from the court to take such
measures.
3.Intheeventofanemergency,anypersonthreatenedbysuchriskmay,withoutpermissionfrom
thecourt,takeanymeasurestoavoidsuchriskattheexpenseoftheownerorcustodian.
CompensationforDamageresultingfromUnlawfulActs
Article214
Where the parties fail to agree on the amount of indemnity against damage that may arise from any
unlawfulact,thecourtshallfixsuchamount.
Article215
1.Thecourtshallassesstheamountofindemnityincash.
2.Thecourtmay,accordingtothecircumstancesandattherequestoftheaggrievedparty,orderthat
the parties be restored to their original position or that they make any other payment by way of
indemnity.
Article216
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1. The court, in its sole discretion, shall determine the amount of indemnity to the extent that it
properlycompensatesthedamage,inaccordancewiththeprovisionsofArticles201and202andtaking
intoconsiderationthesurroundingcircumstances.
2.Wherethecourtisunable,duetotimeconstraints,tofinallydeterminetheamountofindemnity,it
may reserve to the aggrieved party the right to request reconsideration of the determination within a
specifiedperiodoftime.
Article217
Thecourtmayrulethattheindemnitybepaidininstalmentsorintheformofaspecificpaymentfora
fixedperiodoftimeorforlife.Insuchevent,thecourtmayrequiretheobligortoprovideanadequate
guarantee.
Article218
Thecollectionofbloodmoneyassecurityforpersonalharmshallbewithoutprejudicetotheaggrieved
party's right to demand, in accordance with the provisions of liability for unlawful acts, indemnity
againstanyotherdamages,unlesstheaggrievedpartywaivessuchright.
Article219
1.Thefilingofaclaimfordamagescausedbyanunlawfulactshallprescribeafteraperiodofthree
yearshaselapsedfromthedateonwhichtheaggrievedpartyandtheliablepartybecameawareofthe
damage,orafteraperiodoffifteenyearshaselapsedfromthedateoftheoccurrenceoftheunlawfulact,
whicheveroccursfirst.
2. Where liability for an unlawful act is based on a criminal act, the filing of a claim for damages
causedbysuchcriminalactshallnotprescribeforaslongasthecriminalcaseremainsunresolved,even
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wherethetimeperiodssetforthintheprecedingclausehaveexpired.
ChapterFour:UnjustEnrichment
Article220
Any person, even where such person has not reached the age of discretion, who is enriched for no
lawful reason at the expense of another person, shall indemnify the other person against the loss
suffered,totheextentofsuchenrichment.Thisobligationshallcontinue,evenwheresuchenrichment
hasceased.
Article221
The filing of a claim for unlawful enrichment shall prescribe after a period of three years has elapsed
fromthedateonwhichtheaggrievedpartybecameawareofhisrighttoindemnity,orafteraperiodof
fifteenyearshaselapsedfromthedateonwhichsuchrightarose,whicheveroccursfirst.
ReceiptofUnduePayments
Article222
1.Anypersonwhoreceivespaymentofanyamountnotlegallyduetohimshallrepaysuchamount.
2.Repaymentshallnotberequiredwherethepersonmakingthepaymentisfullyawarethatheisnot
obliged to make such payment, except where such person is incapacitated or has been coerced into
makingsuchpayment.
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Article223
An amount not payable may be recovered if payment is made in the performance of any obligation
whose purpose has not been achieved, or of an obligation whose purpose ceased to exist after it has
beenachieved.
Article224
Wherepaymentismadeintheperformanceofanobligationthatisnotyetdueandtheobligorhasno
knowledgeofwhethertheduedatehasoccurredornot,theobligeeshallrepayonlytheamountofthe
prepaymentthathehasusedandwhichconstitutestheextentofthedamagessufferedbytheobligor.
Article225
Prepaymentmaynotberecoveredifmadebyapersonotherthantheobligor,providedthattheobligee,
acting in good faith, has released the debt instrument or security for such debt or allowed his claim
againsttheobligortoprescribe.Insuchevent,theobligorshallreimbursesuchthirdparty.
Article226
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1.Wherethepersonwhoreceivesaprepaymentactsingoodfaith,suchpersonshallnotberequired
torepayanyamountotherthanthatwhichwasprepaid.However,wheresuchpersonactsinbadfaith,
heshallalsorepayanybenefitsthathereceivesfromthedateofreceivingsuchprepaymentorfromthe
dateonwhichheactsinbadfaith.
2. In any event, any person who receives a payment not yet due shall repay the benefits received
fromsuchpaymentfromthedatethattheclaimtorepayarises.
Article227
Wherethepersonwhoreceivesapaymentnotyetduelacksthecapacitytocontract,suchpersonshall
beliabletorepayonlythebenefitsreceivedfromsuchprepayment.
Article228
Aclaimforrecoveryofanyunduepaymentshallprescribeafteraperiodofthreeyearshaselapsedfrom
thedateonwhichtheclaimantbecameawareofhisrighttorecoversuchprepayment,orafteraperiod
offifteenyearshaselapsedfromthedateonwhichsuchrightarose,whicheveroccursfirst.
OfficiousPerformance
Article229
1. Officiousness is the objectionably aggressive offering of a person's unrequested and unwanted

services,help,oradvice.
2. Officiousness shall be present even where the officious person, while performing his own act,
performsatthesametimeanactforanotherpersonduetotheinseparabilityofbothacts.
Article230
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Whereanemployeracceptsworkperformedbytheofficiousperson,therulesofagencyshallapply.
Article231
An officious person shall complete the work until the employer is able to perform it by himself. The
officiouspersonshallnotifytheemployerofhisinterferenceassoonaspossible.
Article232
1. An officious person shall use reasonable care in the performance of the work, failing which he
shallbeliabletoindemnifyanydamagesarisingfromsuchfailure.
2.However,thecourtmaydecreaseordischargetheindemnityforsuchfailureifthecircumstances
sorequire.
Article233
Whereanofficiouspersonassignstoanotherpersonallorpartofthework,theformershallbeliablefor
the acts of his representative without prejudice to the employer's right of direct recourse against such
representative.
Article234
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Wheremorethanoneofficiouspersonperformsasinglejob,theyshallbejointlyliabletotheemployer.
Article235
Anofficiouspersonshallreturntotheemployeranythinghehastakenduetohisinterferenceandshall
prepareareportofwhathehastaken,inthesamemannerasanagentshallpreparesuchreportforthe
principal.
Article236
1.Whereanofficiouspersondies,hisheirsshallbeobligatedtotheemployerinthesamemanneras
theheirsofanagentshallbeobligatedtotheprincipal.
2.Iftheemployerdies,theofficiouspersonshallremainobligedtotheheirsoftheemployertothe
sameextent.
Article237
1. An officious person shall be deemed the representative of the employer where the former uses
reasonablecareintheperformanceofthework,evenwheretheexpectedresultisnotachieved.Insuch
event,theemployershallbeboundbytheundertakingsgivenbytheofficiouspersonfortheaccountof
theemployer,andshallindemnifytheofficiouspersonforsuchundertakingsandreimbursehimforall
necessary and reasonable costs incurred by him in the circumstances, and shall indemnify him against
anydamagessufferedduetosuchwork.
2. An officious person shall not be entitled to payment of wages for work performed unless such
workconstitutestheusualactivityofhisprofession.
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Article238
1.Whereanofficiouspersonlacksthecapacitytocontract,heshallnotbeliablebeyondtheextentto
whichhehasbenefittedfromthework,unlesssuchliabilityarisesfromanunlawfulact.
2.Theemployershallremainfullyliable,evenwherehelacksthecapacitytocontract.
Article239
Thefilingofaclaimforofficiousnessshallprescribeafteraperiodofthreeyearshaselapsedfromthe
dateonwhichtheplaintiffbecameawareofhisrighttoindemnity,orafteraperiodoffifteenyearshas
elapsedfromthedateonwhichsuchrightarose,whicheveroccursfirst.
ChapterFive:Law
Article240
Obligationsthatmaydirectlyarisefromthelawshallbegovernedbythelegalprovisionscreatingsuch
obligations.
Part2:EffectsofObligations
ChapterOne:PerformanceofObligations
CompulsoryPerformance
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Article241
1.Wheretheobligorfailstoperformhisobligationsvoluntarily,suchobligationshallbeenforced.
2.However,wheretheobligationisnatural,itmaynotbeenforced.
Article242
Intheabsenceofanexpressprovision,thecourtshalldeterminewhetheranobligationisnaturalornot.
Inallcases,anaturalobligationshallnotbreachthepublicorder.
Article243
An obligor may not recover any voluntary payment made by him in the performance of a natural
obligation,norshallsuchpaymentbeconsideredavoluntarycontribution.
Article244
Anaturalobligationmay,dependingonthecircumstances,besufficienttofoundacivilobligation.
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SpecificPerformance
Article245
1.Upontheobligorbeingnotified,theobligationshallbeenforcedinkind,assoonaspossible.
2. However, where enforcement in kind is extremely onerous to the obligor, the court may, at the
request of the obligor, limit the right of the obligee to indemnity, provided that he suffers no serious
prejudicethereby.
Article246
Theobligationtotransfertitleoranyotherrightinkindshallautomaticallytransfersuchright,provided
that the subjectmatter of the obligation is a selfidentified thing held by the obligor and subject to the
rulesinconnectionwithregistration.
Article247
1.Wheretheobligationrelatestothetransferofarightinkindtoathingidentifiableonlybyitskind,
suchrightshallnotbetransferreduntilsuchthingisapportioned.
2.Wheretheobligorfailstoperformhisobligation,theobligeemay,withthepermissionofthecourt,
orwithoutitspermissioninthecaseofanemergency,obtainathingofthesamekindattheexpenseof
theobligor.Theobligeemayalsodemandthevalueofthething,withoutprejudiceineithereventtohis
righttoindemnity.
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Article248
Theobligationtotransferarightinkindtoathingshallincludetheobligationtomaintainsuchthingin
safecustodyuntilitisdelivered.
Article249
1.Wheretheobligorundertakesdeliveryofathingbutfailstodosoafterhavingbeennotified,he
shall be liable for any loss caused by such failure, even where the liability for such loss lies with the
obligeepriortothenotification.
2.Theobligorshall,however,notbeliableforthelossevenwherehewasnotified,providedthathe
provesthatthethingwouldalsohavebeenlostinthepossessionoftheobligeeifithadbeendelivered
totheobligee,unlesstheobligoracceptsliabilityforforcemajeureorunforeseenincident.
3.Whereathingthathasbeenstolenislostordamagedinanymannerwhatsoever,thethiefshallbe
liableforsuchlossordamage.
Article250
Wherethetermsoftheagreementorthenatureofthedebtrequiresperformanceoftheobligationbythe
obligorhimself,theobligeemayrejectpaymentbyanythirdparty.
Article251
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1.Wheretheobligorfailstoperformhisobligation,theobligeemayapplytothecourtforpermission
toenforcetheobligationattheexpenseoftheobligor,ifsuchenforcementispossible.
2.Intheeventofanemergency,theobligeemayenforcetheobligationattheexpenseoftheobligor
withoutpermissionfromthecourt.
Article252
Thecourtjudgmentshallbeconsideredasperformanceifthenatureoftheobligationsopermits.
Article253
1.Wheretheobligorisrequiredtomaintainormanageathingortoactcarefullyintheperformance
of his obligation, he shall have performed his obligation if he uses reasonable care, even where the
intendedpurposeisnotachieved,unlessthelaworagreementprovidesotherwise.
2.Atalltimes,theobligorshallbeliableforanyfraudorgrossnegligencecommittedbyhim.
Article254
Wheretheobligorundertakesnottodosomethingandthenbreachessuchobligation,theobligeemay
petitionthecourttoremedysuchbreachattheexpenseoftheobligor,withoutprejudicetotheobligee's
righttoindemnity.
Article255
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1.Wheretheperformanceofanobligationinkindisnotpossibleorappropriateunlesstheobligor
executes it, the obligee may obtain a judgment to require the obligor to perform such obligation or
otherwisetopayadisciplinarypenalty.
2. Where the court believes that the amount of the penalty is insufficient to force the obligor to
performtheobligation,thecourtmayincreasetheamountasnecessary.
3.Intheeventofperformanceinkind,orwheretheobligorinsistsonrejectingtheperformance,the
court may determine the amount of indemnity against the obligor's nonperformance or delay in
performance,takingintoaccountthedamagessufferedbytheobligee.
CompensatoryPerformance
Article256
Wheretheobligorfailstoperformtheobligationinkindordelayssuchperformance,heshallindemnify
anydamagessufferedbytheobligee,unlesssuchnonperformanceordelaythereinwasduetoacause
beyondhisthecontrol.
Article257
The court may decrease the amount of indemnity or reject any request for indemnity where the
negligenceoftheobligeecontributedtooraggravatedthedamage.
Article258
Thepartiesmayagreethattheobligorshallbearliabilityforforcemajeureorunforeseenincident.
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Article259
1.Thepartiesmayagreetodischargetheobligorfromanyliabilityarisingfromhisfailureordelayto
performhiscontractualobligation,exceptforhisfraudorgrossnegligence.
2. The parties may also agree to discharge the obligor from liability for fraud or gross negligence
committedbypersonsemployedbytheobligortoperformhisobligation.
3.Anyagreementconcludedpriortotheliabilityfortheunlawfulactarisingshallberescindedand
theobligorshallbedischargedfromsuchliabilityinwholeorinpart.
Article260
Indemnityshallnotbepayableuntiltheobligorisnotified,unlessthepartiesagreeorthelawprovides
otherwise.
Article261
Anobligormaybenotifiedbyawarningorbyanyotherofficialpaperinlieuofthewarning.Anotice
maybegivenbyregisteredmailorbyanyothermeansasagreed.
Article262
Anoticeshallnotbenecessaryinanyofthefollowingcases:
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1. Where it is agreed that the obligor be considered notified immediately upon the maturity of the
debt
2. Where the performance of the obligation in kind is not possible or futile due to the act of the
obligor
3.Wheretheobligationisanindemnityarisingfromanyunlawfulact
4.Wheretheobligationrequiresthereturnofathingthattheobligorknowstohavebeenstolen,or
thedeliverytotheobligorofathingtowhichheknowinglyhasnoright
5.Wheretheobligorexpresslystatesinwritingthatheshallnotperformhisobligation.
Article263
1.Thecourtshallcalculatetheindemnityunlesssuchcalculationisprovidedinthecontractorbythe
law.
2.Indemnityshallcoverdamagesincurredbytheobligee,includinglossofprofit,providedthatsuch
damages or loss of profit are a natural consequence of the obligor's failure or delay to perform the
obligation. Damages shall be deemed consequential if they were reasonably foreseeable or within the
contemplationofthepartiesatthetimeoftheconclusionofthecontract.
Article264
IndemnityshallincludemoraldamagesandshallbegovernedbytheprovisionsofArticles202and203.
Article265
Where the obligation is the payment of money, the contracting parties may calculate the amount of
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indemnityinadvanceinthecontractorinanysubsequentagreement.
Article266
No agreed indemnity shall be payable if the obligor proves that the obligee has suffered no damages.
The court may decrease the agreed amount of indemnity if the obligor proves that the calculation is
exaggerated or if the obligation has been performed in part. Any agreement to the contrary shall be
invalid.
Article267
Wherethedamagesexceedtheagreedamountofindemnity,theobligeemaynotclaimahigheramount
unlessheprovestheobligor'sfraudorgrossnegligence.
Article268
Wheretheobligationisthepaymentofmoneyandtheobligorfailstomakesuchpaymentafterbeing
notified to do so, and provided that the obligee proves he has incurred damages due to such non
payment,thecourtmayordertheobligortopayindemnity,subjecttotherequirementsofjustice.
ChapterTwo:CreditorsGeneralGuaranteeandMeansofItsProtection
CreditorsGeneralGuarantee
Article269
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1.Alltheassetsofadebtorshallsecureitsdebts.
2.Allcreditorsrankparipassuinsuchsecurity,unlessanycreditorhaspreferencerightsbylaw.
CreditorsUseofDebtorsRights(IndirectSuits)
Article270
1.Evenwhereadebtisnotpayable,everycreditormayuseinthenameofitsdebtorthefinancial
rightsofsuchdebtor,otherthansuchrightsrelatingtothedebtorinpersonorwhicharenotattachable,
if the creditor proves that the debtor has not used such rights and that such omission to use them will
causetheinsolvencyofthedebtororaggravatesuchinsolvency.
2.Uponuseoftherightsofitsdebtor,thecreditorshallnotberequiredtonotifythedebtor.Such
debtorshallbejoinedintheclaimotherwiseitshallnotbeadmissible.
Article271
Uponuseoftherightsofitsdebtor,thecreditorshallbedeemedtoactasanagentofthedebtor.Any
benefit from the use of such rights shall be added to the funds of the debtor and shall secure all its
creditors.
ActionsforInvalidationofaDebtor(Acts)
Article272
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Any creditor whose debt is payable and whose debtor commits any harmful act to the creditor may
demandtheinvalidationofsuchactagainstthecreditorifsuchactdecreasestherightsofthedebtoror
increases its obligations and results in the insolvency of the debtor or aggravates such insolvency,
providedthattheconditionsassetforthinthefollowingArticles273and274aresatisfied.
Article273
1.Wherethedisposalofthedebtoriswithconsideration,suchdisposalshallnotbeeffectiveagainst
thecreditorintheeventoffraudbythedebtorandwherethecounterpartyisawareofsuchfraud.Fraud
by the debtor shall be presumed if the creditor proves that the debtor knew at the time of the disposal
thatitwasinsolvent.Thecounterpartytothedisposalshallbepresumedtohaveknownofsuchfraud
bythedebtorifthecreditorprovesthatthecounterpartyknewatthetimeofthedisposalthatthedebtor
wasinsolvent.
2.Wherethedisposalbythedebtoriswithoutconsideration,suchdisposalshallbeeffectiveagainst
thecreditorirrespectiveoffraudbythedebtororbadfaithofthecounterparty.
Article274
1. Where the disposal of the debtor is with consideration, and the successor disposes of the right
transferredtoittoanothersuccessorwithconsideration,thecreditormaynotclaimthatsuchdisposalis
ineffectiveunlessthecreditorprovesthatbothsuccessorswereawareofthedebtor'sfraud.
2.Wherethedisposalbythedebtoriswithoutconsideration,andthesuccessordisposesoftheright
transferredtoittoanothersuccessorwithconsideration,thecreditormaynotclaimthatsuchdisposalis
ineffectiveunlessthecreditorprovesthatthelattersuccessorwasawareofthedebtor'sfraudatthetime
ofdisposalbythedebtorinfavourofthefirstsuccessor.
Article275
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Where the creditor alleges that the debtor is insolvent, the creditor shall only be obliged to prove the
amount of the debt payable by such debtor. Where the debtor alleges solvency, the debtor shall prove
moneyatleastequaltoorinexcessofthedebtsaccrued.
Article276
Where it is resolved that the disposal is not effective, all creditors who suffered damages from such
disposalshallbenefittherefrom.
Article277
Thecounterpartytoadisposalmayavoidtrialifsuchpartypaysintothecourttreasuryanamountequal
tothevalueofthedisposedasset.
Article278
1.Wherethedisposalofaninsolventdebtorinvolvespreferenceofacreditorwithoutgoodreason,
theothercreditorsmayrequestthatthedisposalbeinvalidatedagainstthem,subjecttotheprovisionsof
Articles272and275.
2.Wheretheinsolventdebtorpaysthedebtofanyofitscreditorspriortotheagreedmaturitydateof
such debt, the other creditors may request not to enforce such payment against them. However, where
thedebtorpayssuchdebtafteritsmaturitydate,theothercreditorsmaynotrequestinvalidationofthe
payment against them unless such payment is made in collusion between the debtor and the creditor
whosedebtissettled.
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Article279
Theclaimtoinvalidateadisposalshallprescribeafteraperiodofthreeyearshaselapsedfromthedate
on which the creditor knew that the disposal was not effective against the creditor. In any event, such
claimshallprescribeafteraperiodoffifteenyearshaselapsedfromthedateofsuchdisposal.
RightofRetention
Article280
1.Apersonwhoundertakestoperformanyobligationmaydeclineperformancethereofwherethe
obligee has not offered to perform the corresponding obligation or has not provided adequate security
fortheperformancethereof.
2.However,aholderoracquirerofathingmayrefusetoreturnituntilallamountsowingthereon
have been paid, including such appropriate or necessary expenses incurred by such person in
connectionwithsuchthing,unlesstheobligationtoreturnsuchthingarisesfromanyunlawfulact.
Article281
1. The person in possession shall maintain such thing in safe custody in accordance with the
provisionsofmortgageandshallaccountfortherevenuesofsuchthing.
2.Wherethethingisfearedlostordamaged,thecustodianmayapplytothecourtforpermissionto
sellitinaccordancewithsuchproceduresasdeterminedbythecourt,andmaysellsuchthingwithout
priorpermissionfromthecourtintheeventofanemergency.
3.Titletothethingshallremainvestedinthesellerandshallnotpasstothebuyeruntilthepurchase
pricehasbeenpaidinfullandreceivedbytheseller.
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Article282
Therighttoretainathingshallnotgrantalienthereon.
Article283
Where the retained thing is lost or damaged, the right to retain shall be transferred to any consequent
considerationorindemnity.
Article284
1.Therighttoretainshallceasewhentheretainedthingisnolongerinthepossessionoftheretainer.
2.However,wheresuchthingistakenfromthecustodyofsuchretainerwithouthisknowledgeor
despitehisobjection,theretainermaydemanditsreturnwithinthirty(30)daysofthedateonwhichhe
becameawarethereofand,inanyevent,withinoneyearfromthedatethereof.
Part3ModificationofObligationEffects
ChapterOneConditionandTerm
Condition
Article285
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Anobligationshallbeconditionalwhereitsexecutionissuspendedbyaconditionwhichhasnotbeen
accomplished.
Article286
1. Where the condition is in breach of the public order or morals, or is impossible to meet, the
obligationshallnotexistiftheconditionissuspensive.
2. However,ifsuchaconditionisrescissible,suchconditionshallbevoidandshallhavenoeffect
ontheenforceabilityoftheobligation.
Article287
Noobligationshallbeeffectivewhereitisbasedonthesuspensiveconditionthattheexistenceofsuch
obligationshallbedependentontheabsolutediscretionoftheobligor.
Article288
1.Noobligationbasedonasuspensiveconditionshallbeeffectiveunlessthatconditionismet.
2.However,beforesuchconditionismet,theobligeemaytakeanyactiontopreserveitsright.
Article289
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1.Anobligationbasedonarescissibleconditionshallbeeffectiveimmediately.Wherethecondition
ismet,theobligationshallcease,andtheobligeeshallreturnwhathehasreceived.Wheremeetingthe
conditionisrenderedimpossiblebyanyactattributabletotheobligee,heshallpayindemnity.
2.However,actspertainingtomanagementperformedbytheobligeeshallremainvalidandbinding
notwithstandingsuchconditionhavingbeenmet.
Article290
1.Whereasuspensiveorrescissibleconditionismet,itseffectshallapplytothetimeofexecutionof
thecontract,unlesstheintentionofthecontractingpartiesorthenatureofthecontractindicatesthatthe
existenceornonexistenceoftheobligationrelatesonlytothetimeatwhichtheconditionismet.
2.However,suchaconditionshallhavenoretroactiveeffectwheretheperformanceoftheobligation
beforemeetingsuchaconditionbecomesimpossibleduetoanycausebeyondthecontroloftheobligor.
Deferment
Article291
An obligation shall persist for a fixed time if its validity or termination depends on a definite future
event,evenwherethetimeoftheoccurrenceofsucheventispresentlynotknown.
Article292
1. Where the obligation is attached to a suspensive period, such obligation shall be effective only
fromthetimesuchperiodexpires.
2.However,theobligeemay,priortotheexpiryofsuchperiod,takesuchactiontoreserveitsright
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and, in particular, may demand security if the obligee has reasonable grounds to anticipate the
insolvencyorbankruptcyoftheobligor.
Article293
1. A suspensive period shall be presumed to be intended for the benefit of the obligor, unless a
provisionofthelaworofthecontractortheparticularcircumstancesindicatethatitisintendedforthe
benefitoftheobligeeorbothparties.
2.Wheresuchperiodbecomesforthebenefitofeitherparty,eachmaywaiveit.
Article294
Therightoftheobligortosuchsuspensiveperiodshallbeextinguishedinanyofthefollowingcases:
1.Whereajudgmentdeclarestheobligor'sbankruptcy
2. Where the obligor substantially impairs the security given by the obligor to the obligee, even
wheresuchsecurityisgivenunderasubsequentcontractorbylaw,unlesstheobligeeelectstocomplete
such security. However, where such security is impaired due to a cause beyond the control of the
obligor, the time limit prescribed in the suspensive period shall lapse if the obligor fails to provide
adequatesecuritytotheobligee
3.Wheretheobligeefailstoprovidesuchsecuritiesasrequiredunderthecontract.
Article295
Wheretheobligationindicatesthattheobligorshallperformitsobligationonlywhencapableorsolvent,
thecourtshallfixanappropriatetimeforthefulfillmentoftheobligation,takingintoaccountthecurrent
and future resources of the obligor and assuming that the obligor shall use reasonable care in the
performanceofsuchobligation.
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Article296
An obligation attached to a rescissible time shall be effective immediately. However, where such time
expires,theobligationshallterminatewithoutanyretrospectiveeffectofsuchtermination.
ChapterTwo:MultipleObjectsoftheObligation
OptionalObligations
Article297
1.Optingoutofanobligationshallbepossibleifcertaincriteria,agreedbybothparties,aremet.
2. Where the option of designation is absolute, it shall be granted to the obligor, unless the law or
agreementbetweenthepartiesprovidesthatthisoptionbegrantedtotheobligee.
Article298
1.Theperiodofvalidityofthedesignationoptionshallbedetermined.However,wheretheoptionis
indefinite,thecourtshalldeterminetheappropriateperiodfollowingthepetitionofeitherparty.
2.Wheretheoptionisgrantedtotheobligoranditdeclinestoexercisesuchoptionor,intheeventof
multipleobligors,theyfailtoagreeamongthemselves,theobligeemayapplytothecourttodesignate
the obligation. However, where such option is granted to the obligee and it declines to exercise such
option or, in the event of multiple obligees, they fail to agree among themselves, the option shall be
transferredtotheobligor.
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Article299
1. Where the designation option is granted to the obligor and either thing is lost while in its
possession, the obligor may bind the obligee by the other thing. Where both things are lost, the
obligationshallceasetoexist.
2.Wheretheobligorisliableforthelossofeitherthing,theobligorshallpaythevalueofthelast
thingtobelost.
Article300
Thedesignationoptionshallbevestedintheheir.
SubstitutionalObligation
Article301
1.Anobligationshallbesubstitutiveifitssubjectmatterisasingleitem.However,theobligorshall
bedischargedofhisresponsibilitiesifheprovidesanotheritemasasubstitutefortheoriginalitem.
2.Theoriginalitemandnotthesubstituteitemshallbethesubjectmatteroftheobligation.
ChapterThree:MultiplePartiestotheObligation
1JointObligation
Article302
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Consolidation among the debtors or the creditors shall not be presumptive but in accordance with an
agreementoraprovisionofthelaw,subjecttotherulesoftrade.
JointActionofCreditors
Article303
1. Subject to a description amending the relationship of each creditor to the effect of the debt,
consolidatedcreditorsmay,jointlyorseverally,demandthatthedebtorpaythedebtinfull.
2.Wherethedebtorisrequestedbyoneoftheconsolidatingcreditorstopayadebt,hemaynotraise
anobjectionbasedongroundsspecifictoanothercreditor.Thedebtormay,however,raiseanobjection
basedongroundsthatarespecifictothatcreditorandcommontoallofthecreditors.
Article304
1.Thedebtormayrepaythefulldebttoanyoftheconsolidatingcreditors,unlessanothercreditor
notifiesthedebtornottodoso.
2. However, consolidation shall not prevent the division of the debt among the heirs of the
consolidatingcreditors,unlessthedebtisindivisible.
Article305
1. Where the debtor is discharged from liability to any of the consolidating creditors for a reason
other than payment, its liability to the other creditors shall be discharged only to the extent of the
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creditor'sshareforwhichthedebtorisdischarged.
2. Where any of the consolidating creditors performs an act that may cause damage to the other
creditor,suchactshallnotbeeffectiveagainstsuchothercreditors.
Article306
Anypartofthedebtcollectedbyanyoftheconsolidatingcreditorsshallbetherightofallthecreditors
andshallbedividedamongthemequally,unlessotherwiseprovidedbyagreementorbylaw.
JointLiabilityofDebtors
Article307
1.Thecreditormaydemandtheconsolidatingdebtorstopaythedebtjointlyorseverally,subjectto
such description of the connection of each debtor adjusting the effect of the debt. Where a creditor
initiallydemandsonedebtortopaythedebt,thisshallnotpreventthecreditorfromdemandingtheother
debtorstopaythesamedebt.
2. No debtor, demanded by any creditor to pay a debt, may invoke the aspects of payment in
connectionwiththeotherdebtors.However,suchdebtormayinvoketheaspectsofpaymentofsucha
debtorandbythecommonaspectsofpaymentamongallthedebtors.
Article308
Paymentbyaconsolidatingdebtorofthedebtinkindorwithconsiderationshalldischargesuchdebtors
oftheirrepaymentobligations.
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Article309
Renewal of a debt between the creditor and any of the consolidating debtors shall discharge the other
debtorsunlessthecreditorreservesitsrightagainstthem.
Article310
No consolidating debtor may invoke the setoff between the creditor and another consolidating debtor
otherthantotheextentoftheshareofsuchotherdebtor.
Article311
1. Where one of the consolidating debtors is discharged, the other debtors shall not be discharged
unlessthecreditorsodeclares.
2. Where no such declaration is made by the creditor, such creditor may demand the other
consolidatingdebtorstopaythebalanceofthedebtsubsequenttothedeductionoftheshareowedby
the discharged debtor. However, the creditor may reserve the right to demand that such other debtors
pay the debt in full, in which case the debtors may have recourse against the discharged debtor to the
extentofhisshareofthedebt.
Article312
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Unless agreed otherwise, where the creditor discharges any of the consolidating debtors from joint
liability,thecreditorshallreservetherighttodemandthattheotherdebtorspaythedebtinfull.
Article313
1.Inallcaseswherethecreditordischargesanyoftheconsolidatingdebtors,whethersuchdischarge
isfromthedebtorfromconsolidation,theotherdebtorsmay,ifnecessary,haverecourseagainstsuch
debtortotheextentoftheshareofanyinsolventdebtorinaccordancewiththeprovisionofArticle319.
2. Where the creditor discharges a debtor from all liability for the debt, the creditor shall bear the
shareoftheinsolventdebtor'sdebt.
Article314
1. Where the debt in connection with any of the consolidating debtors has prescribed, the other
debtorsshallbedischargedonlytotheextentoftheshareofsuchdebtor.
2.Wheretherunningofprescriptionissuspendedoritsperiodceasestobecalculatedinrespectof
anyoftheconsolidatingdebtors,thecreditormaynotholdtheretoagainsttheotherdebtors.
Article315
1. A consolidating debtor shall not be liable other than for its own act in connection with the
performanceoftheobligation.
2.Wherethecreditornotifiesorlitigatesagainstaconsolidatingdebtor,suchnotificationorlitigation
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shallnotbeeffectiveagainsttheotherdebtors.However,whereanyoftheconsolidatingdebtorsnotifies
thecreditor,alltheotherdebtorsshallbenefitfromsuchnotice.
Article316
Where the debtor reconciles with any of the consolidating debtors and such reconciliation involves
dischargefromthedebt,eitherdirectlyorindirectly,theotherdebtorsshallbenefitfromsuchdischarge.
However,wheresuchreconciliationcreatesanewobligationorincreasestheirexistingobligations,such
reconciliationshallonlyapplyshouldtheotherdebtorsacceptit.
Article317
1.Whereanyoftheconsolidatingdebtorsacknowledgesthedebt,suchacknowledgementshallnot
extendtotheotherdebtors.
2.Otherdebtorswillnotbeadverselyaffectedshouldanyoftheconsolidatingdebtorsfalselyswear
orputthecreditorunderoath.
3.Wherethecreditorrequestsanyoftheconsolidatingdebtorstoswear,andsuchdebtorswearsin
fact,thenalltheconsolidatingdebtorsshallbenefitfromsuchact.
Article318
1. Where a judgment is issued against any of the consolidating debtors, such judgment shall not
affecttheotherdebtors.
2.Whereajudgmentisissuedinfavourofanyoftheconsolidatingdebtors,theotherdebtorsshall
benefit from such judgment unless it is substantiated on grounds specifically relating to the debtor in
whosefavouritisissued.
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Article319
1.Whereanyoftheconsolidatingdebtorspaysthedebtinfullorinexcessofitsshare,ordischarges
suchdebtbyanycorrespondingmeansofsettlement,thedebtormayhaverecourseagainstanyofthe
otherdebtorsonlytotheextentofsuchdebtor'sshareofthedebt,evenwheresuchrecourseisunderthe
creditor'sclaimonthebasisofitsrightofsubrogation.
2.Whereanyofthedebtorspaysthedebt,itshallbedividedinequalsharesamongallthedebtors,
unlessotherwiseagreedorprovidedbylaw.
3.Whereanyoftheconsolidatingdebtorsbecomesinsolvent,thedebtorwhopaysthedebtandall
the other debtors shall bear such liability pro rata to their respective shares, without prejudice to their
rightofrecourseagainsttheinsolventdebtorwhensuchdebtorbecomessolvent.
Article320
Whereonlyoneoftheconsolidatingdebtorshasaninterestinthedebt,suchdebtorshallbearliability
forthedebtinfull.
1Indivisibility
Article321
Anobligationshallnotbedivisibleineitherofthefollowingcases:
1.Wheretheobligationrelatestoathingthatcannotbyitsnaturebedivided.
2.Wheretheintentionofthecontractingpartiesindicatesthatsuchobligationmaynotbeperformed
individedparts.
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Article322
Where there are multiple obligors in any indivisible obligation, each shall be liable to perform the
obligation in full. The obligor that performs such obligation shall have a right of recourse against the
otherobligorstotheextentoftheirrespectiveshareoftheobligation,unlessthecircumstancesrequire
otherwise.
Article323
1. Where there are multiple obligees in any indivisible obligation, or multiple heirs of the obligee,
eachobligeeorheirmaydemandtoperformtheobligationinfull.Whereanyoftheotherobligeesor
heirsobjectsthereto,theobligorshallbeliabletoperformtheobligationinfavourofalltheobligeesor
todepositthethingwhichisthesubjectmatteroftheobligation,asrequiredbylaw.
2.Theobligeesshallhaverecourseagainsttheobligeethathadtheobligationperformed,proratato
theirrespectivesharethereof.
Part4TransferofObligations
ChapterOne:TransferofRights
Article324
1.Theobligeemaytransfertoathirdpartyitsrightagainsttheobligor,unlessthelaworagreement
betweenthepartiesprovidesotherwiseorunlessthenatureoftheobligationrequiresotherwise.
2.Theconsentoftheobligorshallnotberequiredinordertoeffectsuchatransfer.
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Article325
Thetransferofrightshallbeeffectiveonlytotheextentthatitmaybeattached.
Article326
Suchtransfershallbeeffectiveagainsttheobligororathirdpartyonlywheresuchobligoracceptsoris
notified of such transfer, provided that such transfer shall be effective against a third party with the
consentoftheobligorwheresuchconsentisfixedbydate.
Article327
Prior to the notification or acceptance of such transfer, the obligor may take any steps necessary to
protectthesubjectright.
Article328
Therightshallbevestedinthetransfereeinitsdescriptions,attachmentsandsecurities.
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Article329
The transferor shall provide the transferee with the deed of transfer and such means to confirm it, and
anynecessarystatementstobeabletocollectandenforcesucharight.
Article330
1. Where the transfer is with consideration, the transferor shall only warrant the existence of the
transferredrightatthetimeofsuchtransfer,unlessagreedotherwise.
2.Wherethetransferiswithoutconsideration,thetransferorshallnotbeliableforanything,eventhe
existenceofsuchright.
Article331
1. The transferor shall not secure the solvency of the obligor unless there is an agreement to this
effect.
2.Wherethetransferorsecuresthesolvencyoftheobligor,suchsecurityshallapplytothesolvency
atthetimeoftransferonly,unlessagreedotherwise.
Article332
1.WherethetransfereeenforcesthesecurityinaccordancewithArticles330and331,thetransferor
shallrepaytheamountpaidbythetransfereeplusexpenses,evenwherethereisanagreementtopaya
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higheramount.
2. However, where the transferor is aware that there is no such right against the obligor, he shall
indemnifythebonafidetransfereeforanydamagesuffered.
Article333
1.Thetransferorshallbeliabletoindemnifythetransfereeforanydamageincurredbythelatterdue
tothepersonalactsofthetransferor,evenifthetransferiswithoutconsideration.
2.Anyprovisiontothecontraryshallbevoid.
Article334
The obligor may hold against the transferee the same pleadings that such obligor has against the
transferorontheeffectivedateofthetransfer.Theobligormayalsoholdtosuchpleadingsarisingfrom
thedeedoftransfer.
Article335
In the event of multitransfers of a single right, the transfer that first applies to third parties shall take
precedence.
Article336
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1.Intheeventofanyattachmentagainsttheobligorbeforethetransferbecomesvalidagainstthird
parties,thetransfershall,inrespectoftheattachmentcreditor,beconsideredasasecondattachment.
2.Insuchevent,whereanotherattachmentoccursafterthetransferbecomeseffectiveagainstthird
parties, the debt shall be divided between the former attachment creditor, the transferee and the latter
attachmentcreditoronabacktobackbasis,providedthattheshareofthelatterattachmentcreditorshall
beappliedtocompletethetransferredright.
ChapterTwo:TransferofDebts
Article337
1. The debt may be transferred by mutual agreement between the debtor and another person to
transferthedebtofthedebtortothetransferee.
2.Suchtransfershallbelimitedwheretheperformancethereinislimitedtoaparticularpropertyor
debt to the debtor by the transferee. Such transfer shall be absolute where such performance is not
limited by anything, even where the debtor is entitled to any debt or property in the possession of the
transfereethatmaybeappliedforsettlement.
Article338
1.Notransfershallbeeffectiveagainstthecreditorunlessthecreditoracceptsit.
2.Wheretheoriginaldebtororthetransfereenotifiesthecreditorofsuchtransferandareasonable
time is fixed for acceptance thereof by the creditor, and such time expires without any declaration of
acceptancebythecreditor,suchnondeclarationshallbeconsideredasarejectionofthetransfer.
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Article339
The transferee shall be obliged to the original debtor to pay the transferred debt to the creditor in due
time,unlessagreedotherwise.Thisprovisionshallapplyevenwherethecreditorrejectsthetransfer.
Article340
The debt may be transferred under an agreement between the creditor and the transferee. However,
where the original debtor rejects the transfer, the transferee shall have no right of recourse against the
debtor,otherthaninaccordancewiththerulesofunlawfulenrichment,ifavailable.
Article341
Where the creditor is a party to, or accepts, the transfer deed, the original debtor shall be discharged
fromthedebt.
Article342
The original debtor shall secure the solvency of the transferee at the time of acknowledgement by the
creditorofthetransfer,unlessagreedotherwise.
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Article343
1.Thedebtshallbevestedinthetransfereeinitsdescriptions,attachmentsandsecurities.
2.However,theguarantor,whetherinkindorinperson,shallremainliabletothecreditoronlyifthe
creditoracceptsthetransfer.
Article344
The transferee may hold the creditor to all the pleadings of the original debtor in connection with the
samedebtandmayholdtosuchpleadingsderivedfromthetransferdeed.
Article345
1.Wherethedebt,beingthesubjectmatterofthetransfer,isterminatedforanyurgentreasonupon
the conclusion of such transfer, such termination shall not affect the transfer. The transferee may have
recourseagainsttheoriginaldebtortotheextentoftheamountpaidtothecreditor.
2. Where the debt is terminated for any urgent reason not attributable to the transferee prior to the
conclusionofsuchtransfer,thetransfershallberenderedinvalid.
Article346
In any event, where payment for the thing transferred becomes due, the transfer debtor who paid the
priceshallhavearightofrecourse,eitheragainstthetransferororagainstthetransfereepaid.
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Article347
Wherethedebtortransfersitsdebtunderatransferlimitedtothepropertyinthecustodyofthetransfer
debtor and such propertyislost prior to deliverythereoftothecreditor, butnotduetothe fault ofthe
transferdebtor,thetransfershallbeterminated.However,wheresuchpropertyincustodyispayabletoa
thirdparty,thetransfershallbevoid.
Article348
Wherethedebtorrefersitscreditortothepersoninwrongfulpossessionunderatransferlimitedtothe
wrongfully seized property, and the property is lost while in the custody of such person in wrongful
possessionpriortoitsdeliverytothecreditor,thetransfershallnotbeaffectedthereby.However,where
suchpropertyincustodyispayabletoathirdparty,thetransfershallbevoid.
Article349
The creditor may not have recourse against the original debtor unless the transfer provides that the
originaldebtormaybedemandedtopaythedebtifitcannotberecoveredfromthetransferdebtor,orif
the limited transfer is terminated or becomes void upon the termination of the debt, or the loss or
maturityofthepropertyoccursinaccordancewiththeprecedingfourArticles.
Article350
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Wheretheoriginaldebtortransfersitsdebtunderanabsolutetransferandsuchdebtorholdsnodebtor
propertyinthecustodyofthetransferdebtor,thetransferdebtorshalluponpaymentofthedebthavea
rightofrecourseagainsttheoriginaldebtortotheextentofthetransferreddebt.
Article351
1.Wheretheoriginaldebtortransfersitsdebtunderanabsolutetransferandsuchdebtorholdsany
debtorpropertyheldintrustorwrongfullyseizedbythetransferdebtor,theoriginaldebtorshallupon
suchtransferhavetherighttoclaimsuchdebtorpropertyfromthetransferdebtoruntilthetransferred
debtispaidtothecreditor.
2.Wherethetransferdebtorpayssuchdebttothecreditor,thedebtpayablebysuchtransferdebtor
shallbedischargedtotheextentpaid.
Article352
Where a transfer limited by a debt or property is concluded, the original debtor shall have no claim
againstthetransferdebtor,andthelattershallhavenoobligationtopaysuchdebttotheoriginaldebtor.
Article353
1. Upon the sale of any property officially pledged, the debt secured by such pledge shall not be
effectiveagainstthepurchaserunlessotherwiseagreed.
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2.Ifthesellerandthepurchaseragreetotransferthedebt,andthesaleagreementisregistered,the
creditorshall,promptlyuponbeingnotifiedofthetransfer,eitheracceptorrejectsuchtransfernolater
thansix(6)monthsofsuchnotification.Upontheexpiryofsuchperiodwithoutanyresponsefromthe
creditor,suchsilenceshallbedeemedacceptancebythecreditor.
Part5:TerminationoftheObligation
ChapterOne:Settlement
SubchapterOne:PartiestotheSettlement
Article354
1.Paymentmaybemadebythedebtororitsrepresentativeorbyanyotherpersonhavinganinterest
insuchpayment,subjecttotheprovisionsofArticle250.
2.Paymentmayalsobemadebyanypersonhavingnointeresttherein,evenwithouttheknowledge
ofthedebtororagainstitswill,providedthatthecreditormayrejectsuchpaymentbythirdpartiesifthe
debtorobjectstheretoandthecreditorisnotifiedofsuchobjection.
Article355
1.Paymentshallnotbevalidunlessthepayeristheownerofthethingpaidforandhasthecapacity
todisposethereof.
2.However,paymentbyanincapacitatedpersonforathingpayablebyhimshallbevalidunlessthe
payersuffersanydamageduetosuchpayment.
3.Wherethedebtorpayssomeofitscreditorsonhisdeathbedandhisassetsarenotsufficienttopay
allhisdebts,suchpaymentshallnotbeeffectiveagainsttheothercreditors,providedthatsuchpayment
causesdamagetosuchcreditors.
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Article356
1. Where a third party pays a debt, such third party may have recourse against the debtor to
reimbursetheamountpaid.
2. However, where a payment is made against the will of the debtor, the debtor may then prevent
recoursebythepayerinconnectionwiththeamountpaid,infullorinpart,ifthedebtorprovesthatit
hasaninterestinobjectingtosuchpayment.
Article357
Where a person other than the debtor makes payment, the payer shall substitute the creditor who
collecteditsrightinanyofthefollowingcases:
1.Wherethepayerisobligedtopaythedebtwithoronbehalfofthedebtor
2.Wherethepayerisacreditorandpaysanothercreditorhavingpreferencetosuchcreditordueto
anysecurityinkind,evenifthepayerholdsnosecurity
3.Wherethepayerholdsathingandpaysthedebttoacreditorwhohadheldsuchthingtosecureits
right
4.Whereaspecialprovisiongrantstherightofsubrogationtothepayer.
Article358
1. A creditor repaid its right by a person other than the debtor may agree with such third party to
substitute the creditor, without the consent of the debtor. This shall not be applicable where the
agreementismadeafterthedateofpayment.
2.Wherethedebtorborrowsmoneytosettlethedebt,itmayalsosubstitutetherelevantcreditorby
the lender, without the consent of such creditor, provided that the loan agreement shall state that such
money is designated to pay such debt and that, upon settlement, such money borrowed from the new
creditorisappliedtopaysuchdebt.
3.Subrogationagainstathirdpartyshallnotbeeffectiveunlessthedateoftheagreementwiththe
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creditor,theloanagreementandthesettlementagreementisfixed.
Article359
Any party that, by agreement or by law, may substitute the creditor shall have the same rights as the
creditor,includingitsbenefits,attachments,securitiesandremedies.Suchsubrogationshallbelimitedto
thepaymentonbehalfofthedebtor.
Article360
1.Whereapersonotherthanthedebtorpaystothecreditorpartofitsrightandreplacesthecreditor
to such part, the creditor shall not be adversely affected by such subrogation, and payment of the
balance of the right to such creditor shall have priority over the right of the payer, unless agreed
otherwise.
2. Where another person substitutes the creditor to the balance of its right, the latter substitute and
formersubstituteshallsubrogatethecreditortotheextentofthepartoftherightpaidbyeachofthem
andshalldividesuchrightonabacktobackbasis.
Article361
Where the holder of the pledged property pays the debt in full and substitutes all the creditors, such
personmaynotdemandtheholderofanotherpropertypledgedonaccountofthesamedebttopaysuch
debt other than to the extent of the share of such other holder pro rata to the value of the property
acquiredbyhim.
Article362
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Paymentmaybemadetothecreditorortoitsrepresentative.Anypersonthatmayprovidetothedebtor
aletterofsubrogationissuedbythecreditorshallhavethecapacitytocollectthedebt,unlessitisagreed
topaythedebttothecreditorinperson.
Article363
Wherepaymentmaybemadeotherthantothecreditorortoitsrepresentative,thedebtorshallnotbe
dischargedfromliabilityunlessthecreditoracceptssuchpaymentorsuchpaymentisintheinterestof
the creditor, and to the extent of such interest, or if payment is made in good faith to a person in
possessionofsuchdebt.
Article364
1. Where the creditor rejects without good reason a duly proposed payment, or rejects works
performedforsuchpayment,orifthecreditordeclaresthatitrejectspayment,thedebtormaynotifythe
creditor.
2. Upon such notification, the creditor shall bear the consequences of loss of or damage to the
relevant asset. In such event, the debtor shall be entitled to deposit such asset at the expense of the
creditoranddemandindemnity,asapplicable.
Article365
Paymentshallbedeemedmadeifthedebtor,havingmadeanoffer,depositsthecorrespondingsumor
item in accordance with the provisions of the Pleadings Law or any other similar action, provided that
thecreditoracceptssuchanofferorafinaljudgmentconfirmingthevalidityofsuchofferisissued.
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Article366
Paymentshallalsobedeemedmadeifthedebtordepositsthedebtdirectlyortakesanystepinlieuof
suchdeposit,inanyofthefollowingcases:
(a)Wherethedebtorisnotawareoftheidentityanddomicileofthecreditor
(b)Wherethecreditorisincapacitatedandhasnorepresentativetoacceptsuchpaymentonbehalfof
suchcreditor
(c)Wherethedebtisdisputedor
(d)Wherethereareseriousgroundsthatmakeitdifficulttomakearealofferofthedebtpriortothe
depositoralternativeprocedure.
Article367
1.Wherethedebtoroffersthedebtandthendepositsitortakesanysimilaraction,thedebtormay
withdrawitsofferifthecreditorrejectsitorifnofinaljudgmentconfirmingthevalidityofsuchofferis
issued.Insuchevent,thecodebtorsandtheguarantorsofthedebtshallnotbedischargedfromliability
andthesecuritiestosuchdebtshallsurvive.
2.However,wherethedebtorwithdrawssuchofferafteritsacceptancebythecreditororafterissuing
a final judgment confirming its validity, and provided that the creditor accepts such withdrawal, the
creditormaynotholdtothesecuritiesofitsrightandthecodebtorsandtheguarantorsofthedebtshall
bedischargedfromliability.
Article368
Wherepaymentisintheformofaspecificassetwhichisrequiredtobedelivered,thedebtormay,upon
notifying the creditor to take delivery thereof, apply to the court for permission to deposit such asset.
Wheresuchassetisrealpropertyorathingintendedtoremainwhereitis,thedebtormayrequestitbe
heldincustody.
Article369
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Where the asset of payment is liable to depreciate in value or its maintenance in custody may prove
costly,thedebtormay,withtheconsentofthecourt,or,incaseofemergencywithoutsuchconsent,sell
theasset.Thedebtorshallthereafterdepositthesalepricewiththecreditorinlieuoftheassetitself.
SubChapterTwo:ObjectofSettlement
Article370
Payment shall be limited to the particular outstanding debt. The creditor may not be coerced into
acceptinganalternative,evenifofgreatervalue.
Article371
1.Adebtormaynotcoercethecreditorintoacceptingpaymentinpart,unlesstheagreementorthe
lawprovidesotherwise.
2.Wherethedebtisdisputedinpartandthecreditoracceptstheundisputedpart,thedebtormaynot
rejectsuchacceptance.
Article372
Wherethedebtorisobligedtopaywiththedebtanyexpensesorcompensationsincurredbyadelayin
payment, and where the payment by the debtor is not sufficient to settle such expenses or
compensations,suchpaymentshallfirstbeappliedtotheexpenses,thereaftertothecompensations,and
finallytotheinitialdebt,unlessagreedotherwise.
Article373
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Intheeventofmultipledebtsofthesamekindowedtoonecreditor,andwherepaymentbythedebtoris
notsufficienttosettleallsuchdebts,thedebtormay,atthetimeofpayment,designatethedebtproposed
tobepaid,unlessthereisanylegalorconsensualimpedimenttosuchdesignation.
Article374
WherethedebtpaidisnotdesignatedassetforthintheprecedingArticle,thepaymentshallbeapplied
tothematuredebt.Wheremorethanonedebtbecomesmature,thelargestdebtshallbepaidfirst.Where
theamountofeachdebtisthesame,paymentshallbeappliedtothedebtdesignatedbythecreditor.
Article375
1.Paymentshallbemadeimmediatelywhentheobligationbecomesfinallyestablishedagainstthe
debtor,unlessotherwiseprovidedbyagreementorbylaw.
2. However, the court may, in exceptional cases and unless otherwise provided by law, afford the
debtor an adequate time to make payment, or order payments in instalments, provided that no gross
damageissufferedbythecreditor.
Article376
1.Wheretheformoftheobligationisaspecificthing,itshallbedeliveredfromitslocationasatthe
timewhensuchobligationarises.
2. The fulfilment of other obligations shall be made according to the law of the debtor's domicile
jurisdiction,orthejurisdictionwheretheheadofficeofthedebtor'sbusinessislocatediftheobligation
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relatestosuchbusiness.
3.Theaboveprovisionsshallapply,unlessotherwiseprovidedbyagreementorbylaworunlessthe
natureoftheobligationrequiresotherwise.
Article377
Unlessotherwiseprovidedbyagreement,laworpractice,thecostsofsuchperformanceshallbepayable
bythedebtor.
Article378
1.Anypersonthatpaysadebtinpartmaydemandadischargetotheextentpaidbymarkingsuch
payment on the debenture. Where the debt is paid in full, the person may recover or demand
cancellationofthedebenture.However,wheresuchdebentureislost,thepersonmaydemandthatthe
creditoracknowledgeinwritingthelossofsuchdebenture.
2.Wherethecreditorrefusestoactinaccordancewiththeprecedingclause,thedebtormaydeposit
therelevantthinginaccordancewiththeprovisionsofthelaw.
ChapterTwo:SatisfactionofObligationbyValuableConsideration
SubchapterOne:SettlementwithAgreedConsideration
Article379
Where the creditor accepts payment by a thing other than the thing receivable by the agreement, such
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paymentshallbeavaliddischarge.
Article380
1.Intheeventoftransferoftitleofathinggiveninconsiderationofthedebt,theprovisionsofthe
sale,particularlythoserelatingtothecapacityofthecontractingpartiesandthesecurityoftherightsand
intrinsicdefectsliability,shallapplytothepaymentbyconsideration.
2.Theprovisionsofpayment,particularlythoserelatingtothedesignationoftherepaiddebtandthe
expiryofsecurities,shallalsoapplyassuchpaymentbyconsiderationsettlesthedebt.
SubchapterTwo:Novation
Article381
Obligationsshallberenewedwhere:
1.Thedebtischangedbyvirtueoftheparties'agreementtoreplacetheinitialobligationbyanew
anddifferentobligation
2.Thedebtorischangedbyvirtueofthecreditor'sagreementwithathirdpartytoreplacetheoriginal
debtor,providedthattheoriginaldebtorisdischargedfromliabilitywithoutitsconsentoriftheoriginal
debtoragreeswiththecreditortobereplacedbyathirdpartyasthenewdebtor
3. The creditor is changed by virtue of an agreement between the creditor, the debtor and a third
partytodesignatesuchthirdpartyasthenewcreditor.
Article382
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1.Anobligationshallberenewedonlywheretheoriginalobligationandthenewobligationareboth
freeofanygroundsforinvalidity.
2.Wheretheoriginalobligationarisesfromanirrevocablecontract,thenewobligationshallnotbe
validunlessitisintendedtoauthoriseandreplacethecontract.
Article383
1. Renewal shall not be presumptive but shall be expressly agreed or clearly concluded from the
circumstances.
2. In particular, renewal shall not be concluded by issuing a debenture of an existing debt, or any
variation of the obligation limited to the place and time and method of payment, or any other
amendmentlimitedtothesecurities,unlessotherwiseagreed.
Article384
1.Uponsuchrenewal,theoriginalobligationanditseffectsshallexpireandanewobligationshall
comeintoexistence.
2. The securities of the original obligation shall not be automatically vested in the new obligation
unlessotherwiseprovidedbylaw,oritisevidentthatthecontractingpartiessointend.
Article385
1. Where the original obligation is secured by securities in kind provided by the debtor, such
securitiesmaybeagreedtobevestedinthenewobligation,subjecttothefollowingprovisions:
(a)Intheeventofrenewalbyachangeofthedebt,thecreditorandthedebtormayagreetotransfer
thesecuritiestosuchextentthatcausesnodamagetothirdparties
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(b)Intheeventofrenewalbyachangeofthedebtor,thecreditorandthenewdebtormayagreeto
keepthesamesecuritieswithouttheconsentoftheoriginaldebtor
(c)Intheeventofrenewalbyachangeofthecreditor,thethreepartiesmayagreetokeepthesame
securities.
2. In all events, such agreement to transfer the securities in kind to a new obligation shall not be
effective against any third party before the time of agreement to renew the obligation, subject to the
registrationprovisions.
Article386
Noguarantee,whetherinkindorpersonal,andconsolidationshallbetransferredtothenewobligation
withouttheconsentoftheguarantorsandtheconsolidatingdebtors.
SubchapterThree:DelegationforSettlement
Article387
1. Assignment shall be valid if the debtor obtains the consent of the creditor to a third party to
undertakethepaymentofthedebtinlieuofthedebtor.
2.Assignmentshallnotbeconditionaluponanypreviousindebtednessbetweenthedebtorandsuch
thirdparty.
Article388
1.Wherethepartiesagreetotheassignment,providedthattheassigneereplacestheassignor,such
assignment shall be deemed a renewal of the obligation with a change of the debtor. As a result, the
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assignorshallbedischargedfromliabilitytothecreditor,providedthattheassigneeisnotinsolventat
thetimeofassignment.
2. However, renewal shall not be presumed in assignment. Where there is no such agreement to
renewal,thenewobligationshallarisesidebysidewiththeoriginalobligation.
Article389
Theassigneeshallbeproperlyobligedagainstthecreditor,evenwheretheassignee'sobligationtothe
assignorisinvalidorsubjecttoanyremedy.Unlessotherwiseagreed,theassigneeshallhavearightof
recourseagainsttheassignoronly.
SubchapterFour:Setoff
Article390
1. The debtor shall have the right to set off the amount payable to its creditor against the amount
payablebythecreditortosuchdebtor,evenwherethebasisofeachdebtisdifferent,providedthatthe
subjectmatterofeitherdebtiscashorfungiblethingsofthesametypeorqualityandthatbothdebtsare
freeofanyoutstandinglegaldispute.
2.Setoffshallnotbeaffectedwherethetimeforpaymentisadjournedaccordingtoanextension
grantedeitherbythecourtorvoluntarilybythecreditor.
Article391
Setoffmaybemadeeveniftheplaceofpaymentofeachdebtisdifferent.Insuchevent,thepartythat
holdstosuchsetoffshallindemnifytheotherpartyforanydamagesufferedbysuchotherpartydueto
its inability to recover its right in full or to pay its debt at the place designated for such purpose as a
resultofsuchsetoff.
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Article392
Debtsofanysourcewhatsoevermaybesetoff,otherthananyofthefollowing:
1. Where the form of either debt is the return of a thing dispossessed without any right from its
owner
2.Wheretheformofeitherdebtisthereturnofadepositedorlentthing
3.Whereeitherdebtisanonattachablerightor
4.Whereeitherdebtisanalimonydebt.
Article393
1.Setoffshallnotbeapplicableunlesstheconcernedpartyholdsthereto,anditmaynotbewaived
untiltherightisestablished.
2.Asaresultofsuchsetoff,thedebtsshallexpiretotheextentofthelowerdebtatsuchtimewhen
bothdebtsarecapableofsetoff.
3. In the event of a debtor having multiple debts, designation of setoff shall be the same as the
designationuponrepaymentofsuchmultipledebts.
Article394
Wherethedebtisprescribedatthetimeofholdingtosetoff,suchdebtmaybesetoffdespiteholding
to such prescription, provided that prescription shall not be effective at the time when setoff becomes
possible.
Article395
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1.Nosetoffthatmayprejudicetherightsofthirdpartiesmaybemade.
2. Where a third party imposes an attachment on a thing in the possession of the debtor and the
debtorbecomesacreditorofitsowncreditorbyadebtthatcanbesetoff,suchdebtormaynotholdto
suchsetofftothedetrimentoftheattachmentcreditor.
Article396
1.Wherethecreditortransfersitsrighttoathirdpartyandthedebtoracceptssuchtransferwithout
anyreservation,thedebtormaynotholdthetransfereetoanyrightofsetoffthatthedebtorcouldhave
exercisedpriortoacceptingthetransfer.Thedebtorshallhavearightofrecourseagainstthetransferor
only.
2.However,wherethedebtorhasnotacceptedthetransferbuthasbeennotifiedofit,suchtransfer
shallnotpreventthedebtorfromholdingtosetoff,unlesstherightofsetoffofthedebtorisestablished
againstthetransferoruponbeingnotifiedofsuchtransfer.
Article397
Whereadebtorrepaysadebteventhoughithastherighttosetoffsuchdebt,thedebtormaynotholdto
thesecuritiestoitsrighttothedetrimentofthirdparties,unlessthedebtorhasnotpreviouslybeenaware
ofsuchright.
SubchapterFive:CombinedObligations
Article398
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Where a single person is simultaneously a creditor and a debtor in respect of a single debt, such debt
shallexpiretotheextentofsuchunity.
Article399
Where the grounds for such unity of liability cease to exist with retrospective effect, the debt and its
attachments shall beresurrectedinrespectofallthe concernedparties.Insuchevent,unity of liability
shallbedeemedvoid.
ChapterThree:TerminationofObligationwithoutSatisfaction
SubchapterOne:Discharge
Article400
1. Anobligationshallexpireifthecreditordischargesthedebtor.Dischargeshallbeeffectivewhen
thedebtorbecomesawarethereof.
2. Where the discharge is rejected, the obligation and all its terms, securities and remedies shall
becomeeffectiveonceagain.
Article401
Thesubstitutiveprovisionsofvoluntarycontributionshallapplytosuchdischarge.Dischargeshallnot
berequiredtohaveaspecialform,evenifitrelatestoanobligationthatrequiresaparticularformtobe
valid,asprovidedbylaworbyagreementbetweentheparties.
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SubchapterTwo:ImpossibilityofFulfilment
Article402
Obligations shall cease if the debtor can prove that their fulfilment has become impossible due to a
foreigncausebeyondthecontrolofthedebtor.
SubchapterThree:Limitations
Article403
Theclaimofanypersonalrightshallprescribeafterthelapseofaperiodoffifteenyears,exceptwhere
anotherperiodisprovidedforeitherbylaworbytheeventsdescribedinthefollowingArticles.
Article404
1. The claim of every renewing periodical right, such as the rental of buildings and agrarian lands,
salaries,wages,fixedincomesandpensions,shallbesubjecttoprescription.
2. The claim of the revenues payable by a holder acting in bad faith and a claim to the revenues
payable by the trustee of the Waqf to the concerned parties shall prescribe after the lapse of a
periodoffifteenyears.
Article405
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The claims of the rights of doctors, pharmacists, advocates, engineers, experts, administrators of
bankruptcy, brokers, teachers and freelancers shall prescribe after the lapse of a period of five years,
providedthatsuchrightsarepayabletotheminconsiderationfortheirprofessionalservicesorexpenses
incurred.
Article406
1. Claimsofchargesandtaxespayabletothestateshallprescribeafterthelapseofaperiodoffive
years. This period shall commence from the end of the year for which the annual charges and
taxes are payable and, in the event of legal costs in connection with court papers, such period
shall commence from the closure of the verbal pleading in the claim, the subject matter of such
papers,or,ifnosuchpleadingismade,fromthedateofissueofsuchpapers.
2. The above provision shall also apply if the claim relates to the repayment of charges and taxes
collected without any good reason. In such event, the period shall commence from the date of
paymentofsuchchargesandtaxes.
3. Theaboveprovisionsshallbewithoutprejudicetotheprovisionsofanyspeciallaws.
Article407
1. Aclaimshallprescribeafteroneyearifitrelatestoanyofthefollowingrights:
1. Therightsoftradersandcraftsmenforthingssuppliedtopersonsnottradingtherein
2. The rights of owners of hotels and restaurants in connection with costs of board and
lodging,mealcharges,andallotherexpensesfortheircustomers'account
3. The rights of home servants and the like, including daily and other wages and the cost of
theirsuppliesandservicestotheirmasters.
2. AnypersonwhoholdstoprescriptionofaclaiminaccordancewiththeprovisionsofthisArticle
shallswearunderoaththatheactuallyrepaidthedebt.Wheresuchpersonisanheirofthedebtor
or a legal representative of such debtor or heir, he shall swear under oath that he had no
knowledgeofthedebtorpayment.Thecourtshallexmeromotuputhimunderoath.
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Article408
1. InrespectoftherightsdescribedinArticles405and407herein,theperiodofprescriptionshall
commencefromthedateonwhichthecreditorshavedeliveredtheirinitialsupplies,evenifthey
makesubsequentdeliveries.
2. Whereadeedofanyofsuchrightsismade,therelevantclaimshallprescribeafterthelapseofa
periodoffifteenyears.
Article409
Theperiodofprescriptionshallbecalculatedindays,nothours.Thefirstdayshallnotbecountedand
the period shall be completed upon the expiry of the last day thereof, unless such day is an official
holiday,inwhicheventsuchperiodshallextendtothenextworkingday.
Article410
1. Theperiodofprescriptionshallnotcommenceuntilthematuritydateofthedebt,unlessthelaw
providesotherwise.
2. In particular, such period shall not apply to a debt based on a suspensive condition other than
fromthetimewhensuchconditionismetandinrespectofthesecuritytomaturity,fromthedate
on which maturity is established and in respect of a deferred debt, from the time when such
periodexpires.
3. Wherethedeterminationofthedateforpaymentisatthesolediscretionofthecreditor,theperiod
ofprescriptionshallcommencefromthedatewhenthecreditorisabletoexercisesuchdiscretion.
Article411
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1. The period of prescription shall not apply where a creditor is prevented from claiming his right,
even if such prevention is moral nor shall it apply to the relationship between the principal and
hisagent.
2. Lack or absence of capacity of the creditor, or a penalty ruled against him, shall be deemed a
preventiontoclaimaright,unlessthecreditorislegallyrepresentedbyanagent.
Article412
Whereanyreasonexiststosuspendthecalculationoftheperiodofprescriptioninrespectofsomeheirs
ofthecreditor,suchsuspensionshallnotapplytotheotherheirs.
Article413
The period of prescription shall be suspended by a judicial claim, even if the claim is made before a
court of noncompetent jurisdiction, and it shall be suspended by notification of the executive deed,
attachmentandsuchrequesttoacceptone'srightinbankruptcyordistribution,andanyotherprocedure
takenbythecreditortoholdtohisrightduringtheprogressofanyclaim.
Article414
1. Theperiodofprescriptionshallbesuspendedifthedebtorexpresslyorimpliedlyacknowledges
therightofthecreditor.
2. Such acknowledgement shall be deemed implied if the debtor leaves in the possession of the
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creditoranyassetthatismortgagedassecurityforadebt,orifthecreditorretainssuchasseton
thebasisofhisrighttorejectthereturnofsuchassettothedebtoruntilthedebtisrepaid.
Article415
1. Wheretheperiodofprescriptionisinterrupted,anewperiodshallbegintorunfromthetimeof
expiryoftheeffectarisingfromthecauseofsuchinterruption,andsuchnewperiodshallbethe
sameastheoriginalperiod.
2. Wheretherightisawardedandthejudgmenthasbecomeresjudicata,ortheclaimofsuchrightis
prescribed after five years in accordance with the provisions of Article 405, or after one year in
accordance with the provisions of Article 407, and such prescription is interrupted by
acknowledgementfromthedebtor,thenewperiodofprescriptionshallbefifteenyears,unlessthe
judgmentprovidesforperiodicrenewedobligationsthatmatureonlywhenthejudgmentisissued.
Article416
Where the claim of the right is subject to prescription, the claim of its effects shall also be subject to
prescription,eveniftheperiodofprescriptionofthelatterclaimisnotcompleted.
Article417
1. Thecourtmaynotexmeromoturuleonprescriptionbutonlyupondemandbythedebtororits
creditors,orbyanyconcernedparty,evenifthedebtorhasnotpreviouslyheldtoit.
2. The debtor may be held to prescription at any stage of the claim, even before the filing of an
appealtothecourt.
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Article418
1. Prescriptionmaynotbewaivedbeforetherighttheretoisestablished.Theperiodforprescription
shallbeestablishedbylawonly.
2. A person having the capacity to dispose of his rights may not under any circumstances waive
prescriptionaftertherighttheretoisestablished,providedthatsuchwaivershallnotbeeffective
againstthecreditorstotheextentthattheymaysufferdamagefromsuchwaiver.
BOOKTWO:SpecificContracts
PartI:ContractsrelatingtoOwnership
ChapterOne:Sale
SubchapterOne:SaleinGeneral
Article419
Asaleshallbedefinedasacontractintermsofwhichthesellerundertakestotransfertothepurchaser
thetitletoathingoranyotherfinancialrightinexchangeformoney.
Article420
Asaleshallincludealltherightsattachedtothesaleassetandanythingpreparedonapermanentbasis
for the use of such asset, according to the nature of things, practice and the intent of the contracting
parties.
1st:ElementsofSale
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Article421
1. Thesaleitemshallbefullydescribedtothepurchaser,failingwhichthepurchasermaywithdraw
fromthesale.
2. Thecontractshallcontainadescriptionofthesaleitemanditsbasicidentifyingelements.
3. Where the contract states that the purchaser is aware of the sale item, he may not demand
cancellationofthesalebyclaimingnottobeawareoftheitem,unlessthepurchasercanprovethe
sellerhasactedfraudulently.
4. Wherethepurchasertakesdeliveryofthesaleitemandfailstoobjecttheretowithinareasonable
time,suchfailureshallbedeemedacceptanceoftheitem.
Article422
1. Wherethesaleisbysample,thesaleitemshallbeidenticaltothesample.
2. Wherethesampleislostordamagedwhileinthepossessionofeithercontractingparty,without
anyfaultontheirpart,thesellerorthepurchasershallprovethatthesaleitemmatchesthesample.
Article423
Article423
1. Insalesbytrial,thesellershallenablethepurchasertotryanitemandthepurchasermayaccept
or reject it. Where the purchaser rejects the sale item, he shall notify the seller of such rejection
within an agreed time period, or within such reasonable time period as the seller determines.
Expiryofsuchperiodwithoutthepurchaser'snotificationshallbedeemedacceptanceofthesale
item.
2. Asalebytrialshallbeconditionalupontheacceptanceofthesaleitembythepurchaser,unless
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theagreementorthecircumstancesindicatethatthesaleisbasedonarescissiblecondition.
Article424
Article424
Wherethesaleofathingissubjecttotheconditionoftasting,thepurchasermayacceptthesaleathis
sole discretion. However, the purchaser shall notify the seller of his acceptance within such period as
providedbyagreementorpractice,andthesaleshallbeeffectiveonlyfromthetimeofsuchnotification.
Article425
Article425
Thesalepriceshallbedeterminedonlyonthebasisofappropriatemeansusedtoassesssuchprice.
Article426
Article426
1. Wherethesalepriceisnotexpressedinthecontract,thesaleshallnotbeinvalidiftheagreement
or circumstances indicate that the contracting parties intended to apply either the trading price
betweenthemorthemarketprice.
2. Where the parties agree that the price shall be the market price, such price shall be the market
price at the time and place of delivery of the sale item to the purchaser. Where no market is
available, the market price shall be that prevailing in the place whose prices are applicable in
accordancewithpractice,unlessotherwiseagreed.
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Article427
Article427
Wherethesalepriceisassessedonthebasisoftheitem'sweight,thenetweightonlyshallbetakeninto
consideration,unlessotherwiseagreedbythepartiesorunlesspracticeprovidesotherwise.Suchpractice
shalldeterminethetolerantdeficiencyinthecargoduetocarriage,etc.
Article428
Article428
1. Asalemaybewithorwithoutprofit,acontribution,orwithdecrease.
2. Asalewithprofitshallentailtheitembeingsoldattheinitialpricepaidbythesellerplusafixed
sum.Salewithoutprofitshallentailtheitembeingsoldatthesameinitialpricepaidbytheseller
withoutanincreaseordecrease.Salebycontributionshallentailpartoftheitembeingsoldatpart
oftheprice.Salewithdecreaseshallentailtheitembeingsoldattheinitialpricepaidbytheseller
lessafixedsum.
3. Wherethepricepaidbythesellerislowerthanthatstated,thepurchasermayholdtotheactual
price.
4. The omission by the seller to disclose the circumstances of his purchase of the item shall be
deemed fraudulent, provided that such nondisclosure may have affected the acceptance of the
salebythepurchaser.
2nd:EffectsofSale
Article429
2 nd:EffectsofSale
(Articles429to431)
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Article429
Ifthesaleishaphazardorrandom,thetitleshallbetransferredtothepurchaserinthesamemanneras
the specified contractual sale.Asaleshall bedeemedhaphazard orrandomif thedetermination ofthe
priceisconditionalupontheestimationorassessmentofthesaleitem.
Article430
Article430
1. Where the sale price is deferred, the seller may be required to collect the price in full as a
conditionforthetransferoftitletothepurchaser,evenifthesaleitemhasbeendelivered.
2. Wherethepriceispaidininstalments,thecontractingpartiesmayagreethatthesellerretainpart
ofthepriceasindemnityagainstrescissionofthesaleintheeventthatalltheinstalmentsarenot
paid.However,thecourtmay,wherenecessary,reducetheagreedamountofindemnity.
3. Uponpaymentofthesaleprice,transferoftitletothepurchasershallbeeffectivefromthedateof
thesale.
4. Theprovisionsofparagraphs1,2and3aboveshallapplyevenwherethecontractingpartieshave
referredtothesaleasalease.
Article431
Article431
Thepurchasershallhavetherighttotherevenuesandbenefitsofthegoodssoldandshallpaythecosts
thereoffromthetimeofsale,unlessotherwiseagreedorprovidedbypractice.
ObligationsofSeller
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Article432
(a)ObligationsoftheSeller
(Articles432to465)
Article432
The seller shall undertake to do all things necessary to transfer the right to the goods sold to the
purchaser,andtoabstainfromanyactsthatmightrenderthistransferimpossibleordifficult.
Article433
Article433
Thesellershallbeobligedtodeliverthegoodssoldtothepurchaserinthesameconditionastheywere
atthetimeofthesale.
Article434
Article434
1. The seller shall provide the purchaser with all necessary details on the goods sold and the
documentsrelatedthereto.
2. Where the use of the goods sold requires specific precautions to be undertaken, the seller shall
notify the purchaser thereof and draw his attention to the proper method of such use. If no
notificationisgiven,thesellershallbeobligedtocompensatethepurchaser.
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Article435
Article435
1. Where the contract specifies the quantity of the goods sold, the seller shall, subject to any
agreementtothecontrary,beliableforanyshortfallinsuchquantityinaccordancewithcustom.
2. Thepurchasershallnot,however,havetherighttodemandcancellationofthecontractbyreason
of such shortfall, unless he establishes (a) that the shortfall has placed a greater obligation upon
him and (b) the shortfall is sufficiently severe such that he would not have entered into the
contracthadheknownoftheshortfallatthetimeofthesale.
Article436
Article436
1. Wherethequantityofthesoldgoodsexceedsthequantityfixedinthecontract,andthepriceis
fixed per unit, the excess shall belong to the seller if the sold goods can be divided, unless the
purchaserdecidestotaketheexcessattheircorrespondingprice.Ifthesoldgoodsarenotcapable
of being divided, the purchaser shall pay the price of the excess unless it is gross, or he may
rescindthecontract.
2. Where the price has been fixed for the goods as a lot, the excess shall belong to the purchaser,
unlessitissogrossthatthesellerwouldnothaveconcludedthecontractifhehadbeenawareof
it.In this case,thepurchaser shall have theoptioneithertoincrease thepriceproportionatelyto
theexcessortorescindthesale.
3. Alloftheaboveprovisionsshallapplyunlessthereisanagreementorcustomtothecontrary.
Article437
Article437
Anactionforrescindingthecontract,orforreducingorcompletingthepurchaseprice,orforreturning
the excess, shall prescribe upon the expiry of one year from the time of actual delivery of the sold
goods.
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Article438
Article438
1. Deliveryshallconsistofplacingthegoodssoldatthedisposalofthepurchaserinsuchawaythat
he can take possession of and enjoy them without hindrance, even if he does not take effective
delivery thereof, provided that the seller shall inform the purchaser that the goods are at his
disposal.
2. Deliveryshallbemadeinaccordancewiththenatureofthegoodssold.
Article439
Article439
Delivery may be completed by mere agreement between the parties where the goods sold were in
possessionofthepurchaserpriortothesale,orwherethesellerretainsthegoodssoldinhispossession
afterthesalebyvirtueofareasonotherthanthatofownership.
Article440
Article440
Delivery shall be made at the time fixed in the contract. If no time is fixed, the seller shall deliver the
goods immediately following the conclusion of the contract, having due regard to the nature of the
goodsorthecircumstancesoftheiruse.
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Article441
Article441
1. Thegoodssoldshallbedeliveredattheplacespecifiedatthetimeofconclusionofthecontract,
unlessotherwiseagreed.
2. Wheretheplacefordeliveryisnotspecified,thegoodsshallbedeliveredattheseller'splaceof
residence.
Article442
Article442
Where the seller undertakes to deliver the goods to a specific place, no delivery shall have occurred
unlessthegoodsarriveatsuchplace,unlessotherwiseagreed.
Article443
Article443
Thesellershallbearthecostsofdelivery,unlessotherwiseagreedorrequiredbycustom.
Article444
Article444
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Wherethegoodssoldperishbeforedeliveryasaresultofacausebeyondthecontroloftheseller,the
sale shall be invalidated and the purchaser refunded, unless he was summoned to take delivery before
thelossoccurred.
Article445
Article445
1. Where the goods sold are partially destroyed or have deteriorated before delivery for a reason
beyondthecontrolofthecontractingparties,thepurchasershallhavetherighttoreducetheprice
totheextentofthereductioninthevalueofthegoodssold.
2. Where the destruction or damage occurred before conclusion of the contract and is so
considerablethatthesalewouldnothavetakenplace,thepurchasershallhavetherighttocancel
thesale.
3. Theaboveshallapplywherethedestructionordamageoccurredbeforethesellergavenoticeto
thepurchasertotakedeliveryofthegoodssold.
Article446
Article446
1. Wherethegoodsaredestroyedordamagedbyanactofthepurchaser,heshallremainliablefor
paymentofthefullpricethereof.
2. Where the destruction or damage is attributed to the seller, the purchaser shall have the option
eithertocancelthesaleortoreducethepricetotheextentofthediminutionofthevalueofthe
goods,withoutprejudicetohisrighttoclaimcompensationifgroundsexist.
Article447
Article447
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Thesellershallwarrantthatthepurchaserenjoyexclusiveandundisturbedpossessionofthegoodssold,
eitherinwholeorinpart,evenifthereisanagreementtothecontrary.
Article448
Article448
1. The seller shall warrant that the purchaser enjoy exclusive and undisturbed possession of the
goodssold,eitherinwholeorinpart,ifsuchdisturbanceiscausedbytheactofanythirdparty
claimingarighttothegoodssoldatthetimeofthesaleandenforceableagainstthepurchaser.
2. Thepurchasershallbeboundbyhiswarrantyevenifthethirdpartyclaimsthathehasacquireda
rightfromthesellerafterthesale.
Article449
Article449
1. Where an action to reclaim the goods sold is brought against the purchaser (rei vindicatio), the
seller,uponreceiptofnoticeoftheaction,shall,accordingtothecircumstancesandinconformity
with the provisions oftheCodeof Procedure,joinasacodefendantwiththe purchaser, ortake
hisplaceasdefendantintheaction.
2. Wherenoticeisgiventimeously,thesellerwhohasnotjoinedintheactionshallbeliableunder
hiswarranty,unlessheprovesthatthejudgmentgivenintheactionistheresultoffraudorgross
negligenceonthepartofthepurchaser.
3. Wherethepurchaserdoesnottimeouslynotifytheselleroftheactionbroughtagainsthimandis
dispossessed by a judgment that has become final, he shall be deprived of his right of recourse
under the warranty if the seller establishes that, had he joined in the action, he would have
succeededinobtainingthedismissaloftheactiontoreclaimthegoodssold.
Article450
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Article450
1. Inthecaseoftotaldispossessionofthegoodssold,thepurchasermayclaimfromthesellerand
haverecourseagainsthiminrespectofthevalueofthelosssustainedandlossofprofitbecauseof
thedispossession.
2. However,theseller'sobligationshallbelimitedtocompensatingthepurchaserforthepricehehas
paidifthesellerprovesthathewasnotawareofthedispossessionatthetimeofthesale.
Article451
Article451
1. Inthecaseofpartialdispossession,orifthegoodssoldareencumberedwithalieninfavourofa
thirdparty,thepurchasershall,ifthelossisofsuchanaturethat,hadhebeenawarethereof,he
wouldnothaveenteredintothecontract,returnthegoodssoldandthebenefitgained.
2. Where the purchaser opts to retain the goods sold or where the loss sustained by him does not
reach the degree of gravity defined in paragraph (1) above, he shall have only the right to seek
compensation.
3. Inbothcases,theprovisionsofArticle450(2)hereinshallbeobserved.
Article452
Article452
Thesellershallnotwarrantthepurchaseragainstservitudeifitwasdisclosedbytheselleratthetimeof
entering into the contract or if this right is an obvious easement or arises from a legal restriction on
ownership.
Article453
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Article453
1. Thecontractingpartiesmaybyspecialagreementincreasethewarrantyagainstdispossession,or
restrictit,orstipulatethatthesaleisfreeofanywarranty.
2. Aclausestatingthatthesaleisfreeofanywarrantyorthatthewarrantyagainstdispossessionis
restrictedshallbenullandvoidifthesellerintentionallyconcealsthegroundsfordispossession.
Article454
Article454
Notwithstandingaclauseexcludingawarranty,thesellershallremainliabletorefundthesalepriceand
anyexpensesincurredbythedispossession,unlessheprovesthatthepurchaserknewatthetimeofthe
saleofthegroundsfordispossessionorthathepurchasedthegoodswiththeriskofdispossession.
Article455
Article455
ThesellershallbeliableunderhiswarrantyaccordingtotheprovisionsofArticle451hereinwherethe
goodssoldhave,atthetimeofdelivery,defectsthatdiminishtheirvalueorrenderthemunfitfortheir
purposeeitherasdefinedinthecontractorasaresultoftheirnatureorintendeduse.Thesellershallbe
liableforsuchdefects,evenifhewasunawareoftheirexistence.
Article456
Article456
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Thesellershallnotliablefordefectswhicharecustomarilytolerated.
Article457
Article457
1. Thesellershallnotbeliableforadefectofwhichthepurchaserwasawareatthetimeofthesale
orwhichhecouldhavediscoveredhimselfhadheexaminedthegoodswithreasonablecare.
2. The seller shall, however, be liable for such defect where the purchaser proves that the seller
declared to him that the goods were free of any defects or that the seller fraudulently concealed
them.
Article458
Article458
1. Where the purchaser has taken delivery of the goods sold, he shall ascertain their condition as
soonasispracticable.Ifthepurchaserdiscoversadefectforwhichthesellerisaccountable,the
purchaser must give reasonable notice thereof to the seller, failing which the purchaser shall be
deemedtohaveacceptedthegoodssold.
2. Where, however, the defect cannot be discovered by reasonable inspection, the purchaser shall,
upondiscoverythereof,informtheseller,failingwhichheshallforfeithisrighttothewarranty.
Article459
Article459
An action on a warranty shall exist even where the goods sold have perished due to any cause
whatsoever.
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Article460
Article460
Wherethepurchaserbecomesawareoftheexistenceofadefectandthendisposesofthegoodssoldas
ifheweretheownerthereof,heshallhavenorecourseagainstthewarranty.
Article461
Article461
1. Thecontractingpartiesmaybyspecificagreementincrease,restrictorabolishthewarranty.
2. A clause abolishing or restricting the warranty shall be void if the seller intentionally and
fraudulentlyconcealsdefectsinthegoodssold.
Article462
Article462
1. An action on a warranty shall prescribe after a period of one year has elapsed from the date of
delivery of the goods sold, even if the purchaser discovers the defect after the expiration of this
period,unlesstheselleragreestobeboundbythewarrantyforalongerperiod.
2. The seller, however, cannot avail himself of the prescription period if it is proved that he
fraudulentlyconcealedthedefectfromthepurchaser.
Article463
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Article463
Nowarrantyshallexistagainstdefectsincasesofajudicialsaleoradministrativesalemadebyauction.
Article464
Article464
Wherethegoodssolddonot,atthetimeofdelivery,possessthecharacteristicsguaranteedbytheseller
tothepurchaser,thepurchasermayreturnthegoodsinadditiontodemandingcompensationwithinthe
limits set forth in Article 451 (1) herein. Otherwise, he may retain the goods sold and claim
compensationforanydamagesarisingfromtheabsenceofsuchguaranteedcharacteristics.
Article465
Article465
1. Whereasellerhaswarrantedtheproperoperationofthegoodssoldforanagreedperiodoftime,
and they develop a defect within this period, the purchaser shall notify the seller of such defect
withinonemonth.
2. Wherethesellerfailstorepairthedefect,thepurchasermayreturnthegoodssoldorretainthem,
andclaimcompensationinbothcasespursuanttotheprovisionsoftheprecedingArticle.
3. Any action in this regard may be filed within six months from the date of notification of the
defect,failingwhichthepurchasershallforfeithisrighttoclaimcompensation.
4. Alloftheaboveshallapplyunlessotherwiseagreed.
ObligationsofthePurchaser
Article466
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(b)ObligationsofthePurchaser
(Articles466to473)
Article466
1. Unlessotherwiseagreedorrequiredbycustom,thepurchasepriceshallbepayableupondelivery
ofthegoodssold.
2. Where the purchaser's possession and enjoyment of the goods is disturbed by a third party
invoking a right existing prior to the sale or derived from the seller, or where he is in danger of
beingdispossessedofthegoodssold,hemay,subjecttoanagreementtothecontrary,retainthe
purchasepriceuntilsuchdisturbanceordangerofdispossessionhasceased.Inthiscasetheseller
may,however,demandpaymentofthepurchasepriceuponprovisionofanappropriatesecurity.
3. Theprovisionsoftheprecedingparagraphshallalsoapplywherethepurchaserhasdiscovereda
defectinthegoodssold.
Article467
Article467
1. Saveasotherwiseagreedorrequiredbycustom,thepriceshallbepayableattheplacewherethe
deliveryofthegoodssoldismade.
2. Wherethepriceisnotpayableatthetimeofdeliveryofthegoodssold,paymentshallbemadeat
thedomicileofthepurchaserontheduedate.
Article468
Article468
Wherethepurchaserfailstopaythepurchasebytheduedateorbreachesothercontractualobligations,
thesellermayopteithertoapplyforspecificperformanceortoterminatethecontract.
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Article469
Article469
Wherethefullpriceorpartthereofispayableimmediately,thesellermay,unlesshegrantsthepurchaser
adelayforpaymentafterthedateofthesale,retainthegoodssolduntilheobtainspayment,evenifthe
purchaserhasofferedamortgageorsecurity.
Article470
Article470
Wherethegoodssoldperishwhileinpossessionoftheseller,thepurchasershallbeliablefortheloss
unlesssuchlossiscausedbytheseller.
Article471
Article471
Inthecaseofasaleofmovables,wherethetermsforpaymentanddeliveryareagreed,thesellershall
be entitled to consider the sale terminated without the need for notice if the purchaser fails to make
paymentbytheduedate,unlessthereisanagreementtothecontrary.
Article472
Article472
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Intheabsenceofagreementorcustomindicatingtheplaceandtimeofdelivery,thepurchasershallbe
boundtotakedeliveryofthegoodssoldattheplacewheretheywerelocatedatthetimethesalewas
concludedandtoremovethemassoonasreasonablypossible.
Article473
Article473
Intheabsenceofagreementorcustomtothecontrary,allcostsrelatingtothesalecontract,registration,
payment of the price, delivery of the goods sold, and any other expenses, shall be borne by the
purchaser.
SubChapterTwo:CertainTypesofSale
1st:Pledging
Article474
SubchapterII:CertainTypesofSale
1 st:Pledging
(Article474)
Article474
Where, at the time of sale, the seller reserves the right to recover the sale item, the contract shall be
invalid.
2nd:SaleofOtherPersonsProperties
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Article475
2 nd:SaleofOtherPerson'sProperty
(Articles475to476)
Article475
1. Where a person sells a specific thing which is not his property, the purchaser may demand
rescissionofthesale.Thisshallalsoapplyintheeventofthesaleofrealestateproperty,whether
thecontractisregisteredornot.
2. In any event, such sale shall not be effective against the owner of the sold property, even if the
purchaseracceptsthecontract.
Article476
Article476
1. Wheretheowneracceptsthesale,thecontractshallbeeffectiveagainsthimandvalidagainstthe
purchaser.
2. The contract shall also be valid against the purchaser if the title to the property is vested in the
sellerafterthedateofthecontract.
3. Where the purchaser is awarded a judgment that the sale is invalid in accordance with the
precedingArticle,andthepurchaserisnotawarethatthesaleitemisownedbyathirdparty,the
purchasermaydemandthesellerpayindemnity,eveniftheselleractsingoodfaith.
3rd:SaleofLitigiousRights
Article477
3 rd:SaleofLitigiousRights
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(Articles477to479)
Article477
1. Whereadisputedrightissold,thepartyindisputewiththesellermayrecoversuchrightfromthe
purchaserifthepricepaidandtheexpensesincurredbythepurchaserarerepaidbysuchpartyto
thepurchaser.
2. Arightshallbedeemeddisputedifaclaimismadeinconnectionwithsuchrightorifthereisa
seriousdisputeoversuchright.
3. Recovery of such right shall prescribe after the lapse of a period of sixty days from the date on
whichtherelevantpartybecameawareofthesale.
Article478
Article478
TheprovisionsoftheprecedingArticleshallnotapplytoanyofthefollowingevents:
1. Wherethedisputedrightispartofanumberofassetssoldhaphazardlyforasingleprice
2. Wherethedisputedrightisheldincommonandeitherpartnersellshissharetoanotherpartner
3. Where the disputed right is disposed of by its holder in settlement of a debt payable by the
creditor
4. Wherethedisputedrightissecuredbyamortgageonrealpropertyandsuchrightissoldtothe
holderofsuchrealproperty.
Article479
Article479
Judges, members of the public prosecution, advocates, court clerks and bailiffs may not purchase any
disputedright,evenunderafalsename,otherwisethecontractshallbeinvalid.
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4th:SalebyaRepresentativetoHimself
Article480
4 th:SalebyaRepresentative/AgenttoHimself
(Articles480to481)
Article480
1. No person representing another person by virtue of the law, an agreement or an order from the
competentauthoritiesmaypurchase,inhisownnameorunderanyfalsename,notevenbypublic
auction,anypropertywhichsuchpersonisauthorizedtosellinsuchcapacity,withoutpermission
fromthecourt,subjecttotheprovisionsprovidedforinanyotherlaw.
2. Acontractshallbevalidifacceptedbythepersonforwhoseaccountthesaleismade.
Article481
1. Brokers and experts may not purchase, even under a false name, such assets which they are
authorizedtosellortoassesstheirvalueortoprovideexpertservicesinconnectiontherewith.
2. Insuchevent,thesaleshallbevalidifacknowledgedbythepersonforwhoseaccountthesaleis
made.
5th:SaleofInheritance
Article482
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Where a person sells any estate or part thereof without stating the details thereof, such person shall be
liabletoprovehisinheritance,unlessagreedotherwise.
Article483
1. Wheretheestateissoldinfullorinpart,thesaleshallnotbeeffectiveagainstthirdpartiesunless
thepurchasersatisfiesallproceduresrequiredtotransfereveryrightinvolvedintheestate.
2. Where the law provides for procedures to transfer the right as between the contracting parties,
suchproceduresshallalsobesatisfied.
Article484
Wherethesellerexercisesanyrightsoftheestateorsellsorconsumesanypartoftheestate,theseller
shall return to the purchaser any right or item retained and shall indemnify any part consumed by the
seller,unlessthereisnoprovisiontothiseffectinthesalecontract.
Article485
Thepurchasershallrepaytotheselleranydebtsoftheestatesettledbythesellerandshallpayforallthe
rightsofthesellerintheestate,unlessotherwiseagreed.
6th:SaleMadeonaPersonsDeathbed
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Article486
1. Whereapersononhisdeathbedsellstoanheirorotherwiseatapricelessthanthevalueofthe
saleitematthetimeofdeath,thesaleshallbeeffectiveagainsttheheirsifthedifferencebetween
thetruevalueofthesaleitemandthepricepaiddoesnotexceedonethirdoftheestate,including
thesaleitemitself.
2. However,wherethedifferencebetweenthetruevalueofthesaleitemandthepricepaidexceeds
onethirdoftheestate,thesaleinexcessofonethirdshallnotbeeffectiveagainsttheheirsunless
they accept the sale or unless the purchaser returns such excess to balance the estate to become
twothirds.
3. TheprovisionsofArticle1014hereinshallapplytothesalebyapersononhisdeathbed.
Article487
TheprovisionsoftheprecedingArticleshallnotapplytotheextentofcausingdamagetoabona fide
thirdpartyifsuchthirdpartyacquireswithconsiderationarightinkindonthesoldproperty.
ChapterTwo:Barter
Article488
Bartershallbedefinedasacontractunderwhicheitherpartyundertakestotransfertotheotherparty,by
wayofexchange,thetitletoanypropertyotherthanmoney.
Article489
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Where the value of the exchanged thing is different as assessed by the parties, the difference may be
settledincash.
Article490
Theprovisionsofsaleshallapplytothebartertosuchextentaspermittedbythenatureofsuchbarter.
Eachpartytothebartershallbedeemedasellerandapurchaseroftheitemsexchanged.
Article491
The costs and expenses of the barter agreement and the registration fees shall be borne equally by the
parties,unlessotherwiseagreed.
ChapterThree:Gift
Article492
1. A gift shall be defined as the granting of property or any other financial right to another person
withoutconsiderationwhiletheownerisstillalive.
2. Thedonormaystillrequirethedoneetoperformaparticularobligation,whichobligationshallbe
deemedaconsideration.
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1st:ElementsofGift
Article493
1. Giftshallbevalidbyconsentandacceptanceandshallbecompletedbycollection.
2. Consent shall be sufficient if the donor is the parent or guardian of the donee and the donated
propertyisinhispossession.Thisshallalsoapplywherethedoneeisaminorraisedbythedonor.
3. The enforceability of a gift agreement shall depend on any procedure to transfer title in
accordancewithanylaws.Eitherpartymaycompletetherequiredprocedures.
Article494
Giftmaynotbeagreedonacontingentfutureasset.
Article495
Thegiftagreementshallnotbevalidifthedonatedassetisnotownedbythedonor,unlesstheowner
authorizessuchagreementandthecollectionofsuchassetismadewithhisconsent.
Article496
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Anyassetheldincommonmaybedonated,evenifthisassetisdivisible.
Article497
Theprovisionsoftestamentarysuccessionshallapplytothegiftonaperson'sdeathbed.
2nd:EffectsofGift
ObligationsoftheDonor
Article498
1. The donor shall deliver the donated asset unless the donee has already collected such asset. In
thisevent,theprovisionsrelatingtothedeliveryofsaleitemsshallapply.
2. Wherethedonatedassetislostorsuffersanychangeordeficiencypriortoitsdelivery,thedonor
shall not be liable unless such loss or change or deficiency is due to his wilful act or gross
negligence.
Article499
Adonorshallnotbeliableforanyclaimotherthanduetohisownact,andshallnotbeliableunlesshe
concealsthecauseoftherightclaimedorunlessthegiftischarged,unlessotherwiseagreedorprovided
bylaw.
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Article500
1. Wherethedonatedasset/giftisoutstanding,andthedonordeliberatelyconcealsthecauseofthe
rightclaimed,thecourtshallestimateafairindemnitytothedonee.
2. Wherethegiftisattachedtoacommitment,thedonorshallnotbeliabletoindemnifythedonee
otherthantotheextentoftheamountpaidbythelatterfromsuchcommitment.Thedoneeshall
subrogatethedonorinallitsrightsandremediesinthisrespect.
Article501
The donor shall not be liable for any defect in the donated item unless otherwise agreed or unless the
donor wilfully conceals such defect. In such event, the donor shall be liable to indemnify the donee
againstthedamagecausedbysuchdefect.Thedonorshallalsobeliabletopayindemnityifthegiftis
attachedto a commitment, provided thatindemnityinsucheventshallnotexceedtheamountpaid by
thedoneefromsuchcommitment.
ObligationsoftheRecipient
Article502
Thedoneeshallundertaketocomplywithanycommitmentunderthecontract,whethersuchcontractis
forthebenefitofthedonororathirdpartyorthepublicinterest.
Article503
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Wherethevalueofthegiftatthetimeofdeliveryislessthanthevalueoftheattachedcommitment,and
thedoneeisnotawarethereof,thelattershallnotbeliabletoperformthecommitmentotherthanwithin
thelimitofthevalueofthegift.
Article504
1. Where the gift involves the commitment of the donee to pay the debts of the donor, the former
shallnotbeliabletopayanydebtsotherthanthoseexistingatthetimeofthegift,unlessagreed
otherwise.
2. Wherethegiftinvolvesarightinkindassecurityforadebtpayablebythedonororbyanyother
person,thedoneeshallpaysuchdebt,unlessagreedotherwise.
3rd:RetractionofaGift
Article505
1. Adonormaynotrevokehisgiftunlessthedoneeacceptssuchrevocationorifthegiftisfromthe
parentstotheirchild.
2. However,agiftmayberevokedbyacourtorderifthedonorhasagoodreasontodoso.
3. Inallevents,theprovisionsofArticles507and508hereinshallbetakenintoaccount.
Article506
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Inparticular,thefollowingshallbeconsideredasgoodreasontorevokethegift:
1. Wherethedoneebreacheshisobligationtothedonortosuchanextentthatthismayreasonably
bedeemedconsiderableingratitude.
2. Wherethedonorbecomesunabletoprovidealivelihoodforhimselfaccordingtohissocialstatus
orbecomesunabletopaythelivingcostsofthirdpartiesasrequiredbylaw.
3. Where a child is born to the donor after such gift and such child remains alive until the time of
revocation, or the donor believes such child to be dead at the time of the gift but is thereafter
foundtobealive.
Article507
Revocationofgiftisprohibitedinanyofthefollowinginstances:
1. Wherethedonoristhemotherandherchildisanorphanatthetimeofrevocation
2. Wherethegiftisgrantedbyonespousetotheothersolongasthemarriagecontinues
3. Wherethedonororthedoneedies
4. Where the donee finally disposes of the gift, and such disposal is limited to the gift in part, the
donormayrevoketheotherpart
5. Wherethegiftislostinthecustodyofthedonee,whethersuchlossisduetotheactofthedonee
ortoacausebeyondhiscontrolortouse,andifonlypartthereofislost,revocationshallapplyto
theremainingpart
6. Whereanychangeaffectsthenatureofthegiftoranyincreasethereinnecessitatesanincreasein
itsvalue.Therightofrevocationshallbevalidagainwhentheprohibitionexpires
7. Wherethegiftisattachedtoacommitmentthatisalreadymet
8. Wherethegiftisforacharitablepurpose.
Article508
InadditiontotheprohibitionssetforthintheprecedingArticle,parentsmaynotrevoketheirgifttotheir
childinanyofthefollowinginstances:
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1. Where the donee deals with third parties on the basis that the gift exists, and such revocation
causesdamagetothedoneeoranythirdparty.
2. Wherethedonorordoneeisontheirdeathbed.Ifthediseaseiscured,therighttorevocationshall
bevalidagain.
Article509
Wherethedoneemurdersthedonor,anyofthedonor'sheirsmaydemandthegiftberevoked.
Article510
1. Withoutprejudicetotherulesofregistration,therevocationofagiftshallresultinthereturnofits
ownershiptothedonoratthetimeofcompleterevocation.
2. The donee shall not be liable to repay the revenues of the gift other than from the time of the
agreementtorevokeorfromthetimeoffilingthesuit.Thedoneemaydemandthatthedonorpay
thenecessaryexpensesincurredbyhim.Inthecaseofexpensesbenefitingthedonee,theclaimed
expensesatthetimeofrevocationshallnotexceedthevalueofthegift.
Article511
1. Wherethedonorrecoversthegiftwithouttheconsentofthedoneeorthecourt,heshallbeliable
foritslossifsuchlossisduetohisownact,ortoaforeigncausebeyondhiscontrol,ortouse.
2. Whereajudgmentofrevocationofagiftisissuedandthegiftislostinthecustodyofthedonee
afterhewasnotifiedtodeliverit,heshallbeliablefortheloss,evenwheresuchlossisduetoa
foreigncause.
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Article512
Thedoneeshallbeartheexpensesofthegiftandthedonorshallbeartherevocationcosts,unlessagreed
otherwise.
ChapterFour:Company
Article513
Acompanyisacontractbetweentwoormorepersonstocontributemoneyorworktoafinancialproject
andtodividetheprofitorlossthatmayarisetherefrom.
Article514
1. Acompanyshallbeconsideredalegalentityonceithasbeenestablished,butsuchentityshallnot
beeffectiveagainstanythirdpartyuntilthecompletionofthepublicationproceduresasprovided
forbylaw.
2. However, if the company fails to complete the prescribed publication procedures, third parties
mayholdtothepersonalityofthecompany.
1st:ElementsoftheCompany
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Article515
1. Thecontractofthecompanyshallbeinwriting,otherwiseitshallbeinvalid.Anyamendmentsto
thecontractnotreflectedonsuchformasapplicableinthecontractshallalsobeinvalid.
2. However, such invalidity may not be held thereto by the shareholders against third parties and
suchinvalidityshallnotbeeffectiveasbetweentheshareholdersthemselves,otherthanfromthe
timeashareholderdemandsthatinvalidityberuled.
Article516
Thesharesoftheshareholdersshallbeequalinvalueandshallapplytotheownershipofthecapitalnot
onlybyvirtueofmerebenefittingfromit,unlessotherwiserequiredbyagreementornorm.
Article517
The share of a shareholder may not be granted on the bases of the shareholder influence or financial
worthiness.
Article518
Where a shareholder undertakes to contribute his share in the company in cash and fails to pay such
amount, the company may, in addition to demanding such shareholder to perform his obligation,
demandtheshareholdertopayindemnityagainstthedamagesufferedduetolatepayment.
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Article519
1. Wheretheshareofashareholderisatitle,usufructoranyotherrightinkind,thesaleprovisions
shall apply in connection with the indemnity against such share if it is lost, becomes mature, or
possessesanydefectordeficiency.
2. However,wheretheshareismerelyausufructinaproperty,theprovisionsofleaseshallapply.
Article520
1. Where a shareholder undertakes to contribute to the company in the form of work, he shall
provide the undertaken services and shall account for his profits from the time of incorporation
uponperformingsuchwork.
2. However,suchshareholdershallnotbeobligedtoprovidetothecompanyanybenefitsobtained
byhimfromapatent,unlessagreedotherwise.
Article521
Wherethesharecontributedisadebtoftheshareholderduefromathirdparty,thisobligationshallnot
be discharged until the debt is paid. In addition, the shareholder shall be liable to indemnify the
consequentdamageifthedebtisnotrepaidtimeously.
Article522
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1. The profits shall be distributed among the shareholders as set out in the contract. If no such
agreementisavailableinthecontract,theprofitsshallbedistributedproratatothecontributions
bytheshareholdersinthesharecapital.
2. Losses shall be distributed pro rata to the respective shares of the shareholders in the share
capital,unlessagreedotherwise.
3. Where the contribution by a shareholder is limited to his work, his share of the profits shall be
assessedtotheextentthatthecompanybenefitsfromsuchwork.Hisshareofthelossesshallbe
limitedtohiswork.
4. Wheretheshareholdercontributesanadditionalinterestbeyondsuchworkormoney,hisshareof
theprofitshallbecommensuratewiththislabour.
Article523
Where it is agreed that a shareholder shall not contribute to the profits or losses of the company, the
contractofthecompanyshallbeinvalid.
2nd:CompanyManagement
Article524
1. A shareholder nominated for management under a special provision in the contract of the
companymay,despitetheobjectionofalltheothershareholders,conductthemanagementofthe
company and such acts within the purpose of the company, provided that such acts are free of
fraud.Suchshareholdermaynotberemovedfrommanagementwithoutgoodcausesolongasthe
companycontinuesinexistence.
2. Where a shareholder is nominated for management following the date of the contract of the
company,suchnominationmaybecancelledwhereapplicableintheeventoftheordinarypower
ofattorney.
3. Managerswhoarenotshareholdersmayberemovedatanytime.
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Article525
1. Where more than one shareholder is nominated for management without the designation of
theirrespectivepowers,andthereisnoprovisionthatanyofthemmaynotindividuallymanage
thecompany,suchshareholdersmayindividuallyconductanyofthemanagementaffairsofthe
company.
1. Theothermanagingshareholdersmayobjecttosuchactpriortoitscompletionandthemajority
ofthemanagingshareholdersmayrejectsuchobjection.Intheeventofparity,themajorityofall
theshareholdersmayobject.
2. Wherethepartiesagreethattheresolutionsoftheshareholdersshallbepassedunanimouslyorby
majority, such agreement shall be honoured, unless for any urgent matter where the omission to
honoursuchagreementshallcausegrosslossthatthecompanycannotrecover.
Article526
Where a resolution is agreed to be passed by majority, the numerical majority shall be considered,
unlessagreedotherwise.
Article527
Shareholderswhoarenotmanagersshallnotmanagethecompany,buttheymayinspectthebooksand
documentsofthecompany.Anyagreementtothecontraryshallbevoid.
Article528
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Where there is no provision on the method of management, each shareholder shall be deemed
authorized by the other shareholders to manage the company and to conduct the business of the
company without reference to the other shareholders, provided that any of those shareholders may
objecttoanyactpriortoitscompletion.Themajorityoftheshareholdersmayrejectsuchobjections.
3rd:EffectsofCompany
Article529
1. In the management of the company's affairs, a shareholder shall use such level of care as he
would in the conduct of his own affairs, unless such shareholder is nominated for management
withconsideration,inwhicheventhemayuselessthanreasonablecare.
2. Suchshareholdermaynotconductanyactivitythatmaycausedamagetothecompanyormaybe
contrarytothecompany'sfoundingpurpose.
Article530
1. A shareholder may not retain for himself any of the company's money otherwise he shall
indemnifythecompanyforanydamagethatmayarisefromsuchretention.
2. Where a shareholder contributes his own money to the company or pays expenses on behalf of
the company in good faith and discreetly, the company shall be bound to indemnify the
shareholderforanyconsequentdamage.
3. Ineithercase,theindemnityshallbepayablewithoutpriornotice.
Article531
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Wherethecompanyfailstorepayitsdebts,theshareholdersshallbeliabletosettlesuchdebtsfromtheir
ownmoney,eachproratatohisshareofthecompany'slosses.Anyagreementthatmaydischargethe
shareholderfromliabilityforthecompany'sdebtsshallbevoid.
Article532
1. Unlessagreedotherwise,theshareholdersshallnotbejointlyliableforthecompany'sdebt.
2. However,whereashareholderisinsolvent,hisshareofthedebtshallbedistributedtotheother
shareholdersproratatotheirrespectiveshareofthelosses.
Article533
1. Where any shareholder has personal creditors, they may not, while the company is in existence,
collect their rights from that shareholder's contribution to the share capital of the company, but
theymaysettlesuchrightsfromhisshareoftheprofit.
2. Where the company is liquidated, the creditors may collect their rights from the share of their
debtor in the assets of the company after deduction of the company's debts. However, prior to
suchliquidation,theymayimposeaninterdictontheshareofsuchdebtor.
4th:TerminationofCompany
Article534
1. The company shall be dissolved upon the expiry of its term or upon the completion of its
objectives. If prior to such date the shareholders agree to the continuation of the company, the
contractshallbeextended.
2. Wheretheagreedtermexpiresortheobjectivesarecompleted,andtheshareholderscontinueto
conductanyoftheactivitiesforwhichthecompanyisformed,thecontractshallberenewedyear
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byyearunderthesameconditions.
3. The creditor of any shareholder may object to such extension or renewal, in which case such
extensionorrenewalshallnotbeeffectiveagainstsuchcreditor.
Article535
1. Thecompanyshallbedissolveduponthelossofallorasubstantialpartofitssharecapital,sothat
itscontinuationshallnotbeeconomicallyviable.
2. Where a shareholder undertakes to contribute a specific portion of his share in the share capital
andsuchportionislostpriortoitscontribution,thecompanyshallbedissolvedasbetweenallthe
shareholders.
Article536
1. Thecompanyshallbedissolveduponthedeath,interdictionorinsolvencyofashareholder.
2. However,itmaybeagreedthatifashareholderdies,thecompanyshallcontinuewithhisheirs,
eveniftheyareminors.
3. Itmayalsobeagreedthat,inaccordancewiththeprovisionsofArticle537herein,thecompany
shallcontinueasbetweentheremainingshareholdersuponthedeath,interdiction,insolvencyor
withdrawal of a shareholder. In such event, such shareholder or his heirs shall be entitled to his
shareintheassetsofthecompanyonly.Suchshareshallbeassessedaccordingtoitsvalueonthe
date of the cause of the withdrawal of such shareholder from the company. Such share shall be
paid in cash, whereafter such shareholder shall have no further share in any subsequent rights,
otherthantotheextentthatsuchrightsarisefromprevioustransactions.
Article537
1. Thecompanyshallbedissolveduponthewithdrawalofanyofitsshareholdersifitstermisnot
fixed,providedthatsuchshareholdernotifiestheothershareholdersinadvanceofhisintentionto
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withdraw.Suchwithdrawalmaynotbeforfraudoratanyinconvenienttime.
2. Thecompanyshallalsobedissolvedbytheunanimousconsentofitsshareholders.
Article538
1. The court may order the dissolution of a company on the demand by a shareholder due to the
failurebyanothershareholdertoperformhisobligationorforanyotherreasonnotrelatedtothe
shareholders. The court shall assess the extent of the risk associated with such reason and the
justificationforsuchdissolution.
2. Anyagreementtothecontraryshallbevoid.
Article539
1. Anyshareholdermayrequestthecourttoordertheremovalfromthecompanyofanyshareholder
whose presence may raise any objection to the extension of its term, or whose acts may be
deemedgoodcauseforthedissolutionofthecompany,orforanyotherseriousreasons,provided
thatthecompanycontinuesinexistenceasbetweentheothershareholders.
2. Wherethetermofthecompanyisfixed,anyshareholdermayrequestthecourttopermithisexit
fromthecompanyonreasonablegrounds.Insuchevent,thecompanyshallbedissolvedunless
theothershareholdersagreetoitscontinuance.
3. In either case, the provisions of Article 536 (3) herein shall apply to the shares of a shareholder
whoisremovedorwhowithdrawsfromthecompany.Suchshareshallbeassessedaccordingto
itsvalueonthedateoffilingthesuit.
5th:LiquidationandPartitionoftheCompanyAssets
Article540
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Theassetsofthecompanyshallbeliquidatedanddividedinthemannerprovidedforinthecontract.In
theabsenceofanyspecialprovision,theprovisionsofthefollowingArticlesshallapply.
Article541
Upon liquidation of the company, the authority of the managers shall terminate. However, the
personalityofthecompanyshallsurvivetotheextentrequiredforliquidationanduntilsuchliquidation
iscomplete.
Article542
1. The liquidation shall be conducted by all the shareholders or, as applicable, by one or more
liquidatorsappointedbythemajorityoftheshareholders.
2. Where the shareholders disagree on the appointment of the liquidator, the court may appoint a
liquidatoronthedemandbyanyshareholder.
3. Intheeventthatthecompanyisinvalid,thecourtshall,onthedemandbyanyconcernedparty,
appointaliquidatoranddeterminethemethodofliquidation.
4. Untilaliquidatorisappointed,themanagersshallbedeemedliquidatorstothirdparties.
Article543
1. Withoutprejudicetoallthelimitationsassetoutintheorderofappointment,theliquidatorshall
conduct all liquidation procedures, including the inventory of the assets of the company, the
collection of its rights, the payment of its debts and the sale of its assets by auction or practice,
untilthefundsaredivisible.
2. The liquidator shall not perform any acts other than those required in the liquidation process. In
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particular,theliquidatormaynotcommenceanynewworksofthecompanyunlessnecessaryto
completepreviousworks.
Article544
1. Theassetsofthecompanyshallbedividedamongalltheshareholdersuponpaymentofdebtors'
rights,upondeductionoftheamountsrequiredtorepaytheoutstandinganddisputeddebts,and
uponrepaymentoftheexpensesandloansgrantedbyashareholderinfavourofthecompany.
2. Eachshareholdershallbeallocatedanamountequaltohiscontributiontothesharecapitalofthe
company as set out in the contract, or equal to the value of such contribution at the time of
deliverythereoftothecompanyifsuchvalueisnotstatedinthecontract,unlessthecontribution
bytheshareholderislimitedtohisworkortotherightofusufructorutilizationonly.
3. Anyremainingassetsshallbedividedamongtheshareholdersproratatotheirrespectiveshares
oftheprofits.
4. Where, however, the net assets of the company are not sufficient to pay the shares of the
shareholders, the loss shall be divided among the shareholders pro rata according to their
respectivecontributionstothesharecapitalofthecompany.
Article545
Inthedistributionofcompanyassets,therulespertainingtothedivisionofcommonassetsshallapply.
CertainTypesofCompanies
1st:BusinessCompanies
Article546
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A Work Partnership shall be defined as a contract under which two or more persons agree to accept
workfromthirdpartiesandtocarryoutsuchworksforafee,andtodivideanyconsequentprofitorloss
amongthemselves.
Article547
Partners shall be jointly liable for the performance of work accepted by any of them, and any partner
maycollectwagesfromtheemployer.
Article548
A partner who accepts any work may assign it to another partner or third party, unless the employer
demandsthatsuchpartnerperformtheworkinperson.
Article549
Profits shall be divided among the partners at such percentages as agreed in the memorandum of
associationofthepartnership,withoutconsiderationforthetypeorquantityoftheworkperformedby
each partner. Profit shall be payable even if there is a prohibition against a contribution by the
shareholdertothework.
Article550
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Thelossshallbedividedamongthepartnersproratatotheworkperformedbyeachpartner.
2nd:SpeculativeVentureCompanies
Article551
ATrustPartnershipshallbedefinedasacontractunderwhichtwoormorepersonsagreetopurchasean
assetatadeferredpriceduetotheirpositionandthereaftertosellandsplittheconsequentprofitorloss.
Article552
Thepartnersshallbejointlyliabletopaythepurchaseprice,whethertheypurchaseanassetjointlyor
individually.Anypartnerwhopayssuchpriceshallhavetherighttorecoveritfromtheotherpartners
proratatotheirrespectivesharesofthedebt.
Article553
Profit and loss shall be distributed among the partners pro rata to their respective shares of the
purchasedasset.Anyagreementtothecontraryshallbevoid.
3rd:MudarabaCompanies
Article554
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ASpeculationPartnershipshallbedefinedasacontractunderwhichtheholderofthecapitalundertakes
toprovideittothespeculatorandthelatteraimstomakeaprofit.
Article555
Bothpartiesshallhavethecapacitytoact.
Article556
Speculationmaybeabsoluteorlimitedbytime,placeoranytypeofbusinessorbyanyotherrestrictive
conditions.
Article557
Wherethespeculationisabsolute,thespeculatormayperformallsuchactsandworksrequiredbythe
natureoftheinvestmentaccordingtotheapplicablepractice.
Article558
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Where the speculation is limited, the speculator shall comply with the agreed conditions, failing which
heshallbeliableforanylossordamagetothespeculatedcapitalandshallindemnifytheholderofthe
capitalforanyconsequentdamage.
Article559
1. A speculator may not mix the speculated capital with his own funds or delegate a third party to
speculate such capital, unless otherwise required by practice, or unless the circumstances of
speculationauthorizethespeculatortoactathisowndiscretion.
2. Atnotimeshallthespeculatordonateorlendthespeculatedcapitalorborrowtosuchextentthat
thedebtbecomesgreaterthanthecapital,withouttheexpressconsentoftheholderofthecapital.
Article560
1. The holder of the capital and the speculator shall be entitled to the prorata profit at an agreed
percentage.Wherenosuchpercentageisstatedinthecontractofthecompany,theprofitshallbe
dividedaccordingtotheapplicablepractice,andifnosuchpracticeisapplicable,theprofitshall
bedividedequally.
2. Wherethespeculatormixesthespeculatedcapitalwithhisownfunds,theprofitshallbedivided
proratato the capital. The speculator shall receive the profit from his funds, while the profit of
thespeculatedcapitalshallbedividedaccordingtotheprecedingclause.
Article561
1. Theholderofthecapitalshallbeartheloss.Anyagreementtothecontraryshallbevoid.
2. Wherethespeculatedcapitaldecreasesduetolossordamage,suchdecreaseshallbecompleted
from the profits. Where such decrease exceeds the amount of the profit, such excess shall be
deductedfromthecapital,withoutanyliabilityonthespeculator.
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Article562
1. Either contracting party may terminate the speculation if open, provided that such termination is
made at a proper time, otherwise such party shall indemnify the other party against any
consequentdamagesufferedbyhim.
2. Such termination shall be effective only from the time of notifying the other contracting party
thereof.
3. Wherethespeculationisterminatedinsuchmanner,thespeculatorshallavoidanydisposalofthe
speculated capital if in cash otherwise, the speculator may sell and collect the price of the
speculatedcapital.
Article563
1. Irrespectiveofthemannerinwhichthespeculationisterminated,thespeculatorshallcompletethe
workcommencedbyhiminsuchawaythatthespeculatedcapitalshallnotbelostordamaged.
2. Where the speculation is terminated by the death of the speculator, the heirs or their
representativesshallnotifytheholderofthecapitalofsuchdeathandshalltakesuchmeasuresas
requiredtoprotectthespeculatedcapital.
ChapterFive:Loans
Article564
Aloanshallbedefinedasacontractunderwhichthelenderundertakestotransferthetitletoacertain
amount of money to the borrower, or anything similar, provided that such amount or thing shall be
returnedtotheformerinthesametype,conditionandquantity.
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Article565
1. Thelendershalldelivertheagreeditemtotheborroweratthetimeofconclusionofthecontract,
unlessanothertimeisagreed.
2. Wheresuchitemislostpriortodelivery,thelendershallbeartheconsequencesofsuchloss.
Article566
Thelendershallnotbeheldliablefortheentitlementtotheborroweditem,unlessthereisanagreement
tosuchliabilityorthelenderhasdeliberatelyconcealedthecauseofsuchentitlement.
Article567
1. Whereaconcealeddefectisdetectedintheborroweditemandtheborroweroptstoretainit,the
borrowershallbeliabletorepaythevalueofsuchiteminitsdefectivecondition.
2. Where the lender has deliberately concealed the cause of such defect, he shall be liable for any
damagecausedbyit.
Article568
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Wheretheloancontractprovidesforabenefitgreaterthantheamountagreedinthecontract,otherthan
thesecuritytotherightofthelender,theprovisionshallbeannulledwhilethecontractshallbevalid.
Article569
1. Aborrowershallreturnasimilaritemontheagreedmaturitydateorimmediatelywhenitbecomes
outstanding.
2. Wheresuchdateisnotagreed,orwhereitisagreedtoreturnsuchitemwhencapableorsolvent,
thecourtshallfixanappropriatedateforthereturnoftheitemaccordingtothecircumstances.
Article570
Wheretheplaceforthereturnofsuchsimilaritemisnotagreed,itshallbereturnedatthedomicileof
thelender.
Article571
1. Wherethevalueofasimilaritemchangesatthetimeofreturningit,suchchangeshallhaveno
effect.
2. Wheretheborroweditemisnotavailableinthemarket,thelendershallhavetheoptioneitherto
waituntilsuchitemisavailableagaininthemarketandthenhaveitreturnedbytheborrower,or
todemandthattheborrowerpaythevalueofsuchitematthetimeandplaceasagreed.
Article572
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The costs pertaining to the loan and its repayment shall be borne by the borrower, unless agreed
otherwise.
ChapterSix:Reconciliation
Article573
Reconciliationisacontractunderwhichthepartiessettleadisputebetweenthem,oravoidacontingent
disputebyeachpartywaivingthecorrespondingpartoftheirclaim.
1st:ElementsofReconciliation
Article574
A party entering into reconciliation shall have the capacity to act with surety regarding the rights
containedinthereconciliationagreement.
Article575
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Issues relating to personal matters or public order may not be reconciled. However, financial rights
arising from such personal matters or that may arise from the commission of any crime may be
reconciled.
Article576
Reconciliationshallnotbeeffectiveunlessinwritingorrecordedinformalminutes.
2nd:EffectsofReconciliation
Article577
1. Reconciliationsettlestherelevantdisputesonly.
2. Asaresultofreconciliation,rightsandclaimsfinallywaivedbythepartiesshalllapse.
Article578
1. Reconciliationshallhavearevealingeffectinconnectionwiththedisputedrightstotheexclusion
ofanyotherrights.
2. Thewordingofthewaivercontainedinreconciliationshallbenarrowlyconstrued.Inanyevent,
the waiver shall apply to such rights that are clearly the subject matter of the dispute settled by
suchreconciliation.
Article579
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1. Any benefit or damage from reconciliation shall be limited to its parties, even if reconciliation
relatestoanindivisibleitem.
2. However,consolidatingparties,whethercreditorsordebtors,mayholdtothereconciliationmade
byanyofthemiftheybelievethatsuchreconciliationisintheirinterest.
Article580
Whereapersonreconcileshisrightorarightreceivedforaparticularreasonandthenreceivesthesame
rightfromanotherpersonorforanotherreason,suchnewlyacquiredrightshallnotbeconnectedwith
thepreviousreconciliation.
3rd:NullityofReconciliation
Article581
1. Reconciliationbeingindivisible,wherepartthereofisorbecomesinvalid,thewholecontractshall
becomeinvalid.
2. The above provision shall not apply where the wording of the contract or the circumstances
indicates that the contracting parties considered each part of the reconciliation separate and
independentfromtheotherparts.
Part2:ContractsrelatingtoUtilizationofThings
ChapterOne:Lease
SubchapterOne:Leaseingeneral
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Article582
Lease is a contract under which the landlord enables the tenant to benefit from a particular item for a
fixedperiodoftimeinreturnforafinancialcompensation.
1st:ElementsofLease
Article583
Apersonwhoserightislimitedtomanagementmaynotenterintoanyleaseforaperiodexceedingthree
years without the permission of the owner of the property. Unless there is a provision to the contrary,
wheresuchpersonentersintoaleaseforalongerperiod,thetermofsuchleaseshallexpirewithinthree
years.
Article584
1. A lease granted by a person holding the right of usufruct shall not be effective after such right
lapses against the owner of the property unless the latter accepts it, provided that the dates for
notification to vacate and the time required for the existing produce to become ripe and to be
removedaretakenintoconsideration.
2. However, any person who holds only the right of use or accommodation may not grant a lease
withoutexpressauthorizationorstrongjustification.
Article585
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Therentagreedtointheleasecontractmaybeintheformofcashorotherfinancialconsideration.
Article586
Where the contracting parties do not fix the rent amount or the method of its assessment, or such rent
cannotbequantified,thecomparativerentofasimilarpropertyassessedonthedateofthecontractshall
apply.
Article587
Where the contracting parties fail to state the commencement date of the payment of the rent, it shall
commencefromthedateofthecontract.
Article588
1. Wheretheleasecontractdoesnotstipulatethelengthofitsterm,orthecontractisforanindefinite
periodorsuchperiodcannotbeconfirmed,theleaseshallbedeemedtocommencefromthedate
fixedforthepaymentoftherent.
2. The lease shall terminate upon the expiry of such period if either contracting party notifies the
otherpartytovacatepriortothecommencementofthesecondhalfofsuchperiod,providedthat
suchnoticeshallnotexceedthreemonths.
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Article589
Theperiodofleasemaynotexceedtwentyfiveyears.Wheresuchperiodislongerorindefinite,itshall
be limited to that term, unless the lease is valid for the lifetime of the landlord or the tenant, in which
eventthecontractshallcontinueforsuchperiod,evenifsuchperiodexceedstwentyfiveyears.
2nd:EffectsofLease
ObligationsoftheLessor
Article590
The landlord shall deliver to the tenant the leased property and its annexes in a condition fit for its
intendeduse,eitherasagreedoraccordingtothenatureoftheproperty.
Article591
1. Wheretheleasedpropertyisdeliveredinaconditionunfitforitsintendeduse,orifsuchcondition
may considerably affect such use, the tenant may demand termination of the lease contract or a
reduction in the rent to the extent that the property is so affected, and in either case payment of
indemnity,asapplicable,withoutprejudicetothetenant'srighttobindthelandlordtoperformall
necessaryrepairstorendertheleasedpropertyintoaconditionfitforitsintendeduse.
2. Wheretheconditionoftheleasedpropertymayhighlyendangerthehealthofthetenant,orthose
who live with him, or his employees or workers, the tenant may demand termination of the
contract,evenifsuchrighthasalreadybeenwaived.
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Article592
Theprovisionsapplicabletothedeliveryofasoldpropertyshallalsoapplytotheobligationtodelivera
leased property, particularly in connection with the time and place of delivery, the description of the
leasedpropertyanditsannexes,oranydeficiencyorexcesstherein,unlessthelawprovidesotherwise.
Article593
The landlord shall undertake to maintain the leased property in good condition by performing all
necessary repairs during the term of the lease in accordance with common practice, unless agreed
otherwise.
Article594
1. Where the landlord, upon receiving notice, fails to perform the necessary repairs in accordance
with the provisions of Articles 591 and 593 herein, the tenant may obtain permission from the
court to perform such repairs personally and to deduct the cost incurred from the rent, without
prejudice to the tenant's right to demand termination of the lease or a reduction in the rent as
providedforbylaw.
2. Thecourt'spermissionshallnotbenecessaryiftherepairsareurgentoroflowcost.
Article595
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1. The landlord shall perform all urgent repairs as may be necessary to maintain the safety of the
leasedproperty,evenifthetenantobjectsthereto,providedthatthelandlordnotifiesthetenantof
hisintentiontoperformsuchrepairsatanappropriatetimepriortodoingso.
2. Where such repairs cause any breach, either in whole or in part, of the proposed use, the tenant
maydemandterminationoftheleaseorareductionintherent.
3. However, where the tenant remains on the leased property until such repairs are completed, his
righttodemandterminationoftheleaseshalllapse.
Article596
1. Where the leased property is totally demolished during the term of lease, the contract shall
terminateautomatically.
2. Where such demolition, for which the tenant is not liable, is partial, or if the property becomes
unfitforitsintendeduse,andunlessthelandlordrestoresthepropertytoitsoriginalconditionat
suchappropriatetime,thetenantmaydemandeitherareductionintherentorterminationofthe
lease,withoutprejudicetohisrighttorepairtheleasedpropertybyhimselfandtorestoreittoits
originalconditioninaccordancewiththeprovisionofArticle593herein,unlesssuchrepairsarea
burdentothelandlord.
3. Inboththeaforementionedcases,thetenantmaynotdemandindemnityifthelossisattributable
toacausebeyondthecontrolofthelandlord.
Article597
1. Thelandlordmaynotinterferewiththetenant'suseoftheleasedpropertythroughoutthetermof
thelease,ormakeanychangeintheleasedpropertyoritsannexeswhichmayimpingeonsuch
use.
2. Any interference by any of the subordinates of the landlord shall be deemed interference by the
landlordhimself.
Article598
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The landlord shall not indemnify the tenant against any interference by third parties unless such
interferenceisbasedonlegalgrounds.
Article599
1. Whereathirdpartyclaimsarightinconflictwiththerightsofthetenantundertheleasecontract,
thetenantshallnotifythelandlordthereofandwithdrawfromthelawsuit.Insuchevent,theclaim
shallbeaddressedtothelandlord.
2. Where,asaresultofsuchclaim,thetenantisdeprivedofusingthepropertyasauthorizedunder
the lease contract, the tenant may demand termination of the contract or a reduction in the rent
withindemnity,asapplicable.
Article600
1. The landlord shall not be liable for any material interference caused by a third party so long as
suchpartyhasnotclaimedanyright,withoutprejudicetothetenant'srighttofileinhisnamethe
indemnitysuitandalltheacquisitionsuitsagainstsuchthirdparty.
2. Wheresuchmaterialinterferenceisduetoacausebeyondthecontrolofthetenantandwhichhe
cannot avoid, and such interference is so considerable that it may fully or substantially prevent
himfromusingtheproperty,thetenantmaydemandterminationoftheleaseorareductioninthe
rent.
Article601
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Wheremorethanonetenantleasesasingleproperty,preferenceshallbegiventothetenantwhotakes
possessionofthepropertyingoodfaith.Intheabsenceofsuchgoodfaithpossession,preferenceshall
begiventothefirsttocontract.
Article602
1. Whereanyactbythepublicauthoritycausesconsiderabledeficiencyintheuseofthepropertyby
thetenant,thetenantmaydemandterminationoftheleaseorareductionintherent,unlesssuch
actisattributabletothetenant.
2. The tenant shall have no right to indemnity against the landlord unless such act by the public
authorityisforareasonforwhichthelandlordmaybeliable.
3. Theaboveprovisionsshallapplyunlessotherwiseagreed.
Article603
1. The landlord shall undertake to the tenant that the leased property is free from defects that may
preventorconsiderablyimpairtheuseoftheproperty.
2. However,thelandlordshallnotbeliableforanydefectpermissiblebypracticeoranydefectthat
wasknowntothetenantatthetimeofcontractingorwhichthetenantcouldhavedetectedifhe
hadinspectedtheleasedpropertywithreasonablecare,unlessthetenantprovesthatthelandlord
hasconfirmedthattheleasedpropertyisfreeofsuchdefectorthathefraudulentlyconcealedit.
3. Theaboveprovisionsshallapplyunlessotherwiseagreed.
Article604
1. Where a latent defect is found in the leased property, which the landlord knew or should have
knownaboutuponareasonableinspection,thetenantmaydemandthatthedefectberepairedby
thelandlordorhemayrepairsuchdefectpersonallyatthecostofthelandlord.
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2. Theaboveshallbewithoutprejudicetothetenant'srighttodemandterminationofthecontractor
areductionintherentwithindemnity,asapplicable.
Article605
Any provisions to discharge or limit the liability for a defect or for interference shall be invalid if the
landlorddeliberatelyconcealsthereasonforsuchliability.
Article606
Where the leased property lacks the specifications that the landlord had previously specified to the
tenant,thetenantmaydemandterminationofthecontractorareductionintherent,subjecttohisright
toindemnity,asapplicable.
ObligationsoftheLessee
Article607
1. Thetenantshallpaytherentontheagreeddates.Wherenosuchdatesareagreed,therentshallbe
paidonsuchdatesasdeterminedbypractice.
2. Unless otherwise required by agreement or practice, the rent shall be payable at the domicile of
thetenant.
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Article608
Paymentofrentforaspecificperiodshallbedeemedevidenceofpaymentofrentforthatperiod,unless
thelandlordprovesotherwise.
Article609
1. As security for his rights under the lease contract, the landlord may retain all such attachable
movablesintheleasedproperty,solongasheholdsalienthereon,includingsuchmovablesnot
ownedbythetenant.Thelandlordshallhavetherighttoobjecttotheremovalofsuchmovables.
Where such movables are removed despite such objection or without the knowledge of the
landlord,thelandlordshallhavetherighttorecoversuchmovablesfromthenewholderthereof,
evenifthenewholderactsingoodfaith,withoutprejudicetotherightsofsuchholder.
2. The landlord may not use his right to retention or recovery if the removal of such things is
requiredeitherbythetenant'sprofessionalorpersonalaffairs,orifthemovablesleftintheleased
propertyorthoserecoveredaresufficienttosecurethepaymentoftherentinfull.
Article610
Thetenantshallusetheleasedpropertyasagreed.Intheabsenceofsuchagreement,thetenantshalluse
itaccordingtoitsintendedpurposeandasapplicablebypractice.
Article611
The tenant may not, without the consent of the landlord, make any change in the leased property that
maycausedamagetothelandlord.
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Article612
1. Thetenantmayaffixintheleasedpropertysuchfittingsorinstallationsaswillensuretheintended
use thereof, provided that such fittings or installations are affixed in a manner consistent with
properpractice,unlesssuchfittingsorinstallationsmaycausedamagetothepropertyordecrease
itsvalue.
2. Whereinterferencebythelandlordisrequiredtodoanyoftheforegoing,thetenantmayrequest
thelandlordtodoit,providedthatthetenantshallbearthecostsincurredbythelandlord.
Article613
1. Thetenantshallexercisereasonablecareintheuseandprotectionoftheleasedproperty.
2. The tenant shall be liable for any loss or damage that may be suffered by the leased property
arisingfromitsimproperusebythetenant.
Article614
The tenant shall notify the landlord of anything that requires the interference of the landlord, such as
urgentrepairsrequiredfortheleasedpropertythediscoveryofadefectwrongfulseizureachallenge
tothetenant'suseoranydamagetherein.
Article615
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Thetenantshallexecuteallsuchminorrepairsasarerequiredfortheproperuseoftheleasedproperty
andasapplicablebypractice,unlessagreedotherwise.
Article616
Thetenantshallvacatetheleasedpropertyanditsannexesupontheexpiryofthelease.However,ifthe
tenant continues to occupy the property without right, he shall, in addition to delivery of the property,
payindemnitytothelandlord,takingintoconsiderationuponassessmentofsuchindemnitytherentand
thedamagesufferedbythelandlord.
Article617
1. Thetenantshallreturntheleasedpropertyinthesameconditionasitwaswhenheinitiallytook
occupation,exceptforanylossordamagenotcausedbyhim.
2. Where the leased property is delivered without a description of its condition, the tenant shall be
presumedtohavetakendeliveryofthepropertyingoodconditionuntilevidencetothecontrary
isprovided.
Article618
The tenant shall bear the expenses incurred in the return of the leased property, unless required
otherwisebyagreementorbypractice.
Article619
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1. Saveasotherwiseagreed,wherethetenantcreatesintheleasedpropertyanybuilding,plantation
orotherimprovementsthatmayincreaseitsvalue,thelandlordshallpaytothetenantuponexpiry
of the lease the costs of such improvements or the amount in excess of the value of the real
property,whicheverisless.
2. Where such improvements are made without the knowledge of the landlord or despite his
objection,hemayalsodemandthatthetenantremovesuchimprovementsandpayindemnityfor
anydamagetotheleasedpropertyduetosuchremoval,asapplicable.
3. Where the landlord effects to keep such improvements in consideration of any of the above
values,thecourtmaygrantthelandlordtimetopaytheircorrespondingvalue.
3rd:AssignmentofLeaseandSublease
Article620
The tenant may assign or sublease the leased property in whole or in part, unless agreed otherwise or
unlessthepersonalityofthetenantistakenintoaccountatthetimeofconcludingthecontract.
Article621
1. Preventingthetenantfromassigningtheleaseshallincludepreventinghimfromsubleasing,and
viceversa.
2. However,wheretheleaserelatestorealpropertyonwhichafactoryorstoreisconstructedandit
the tenant is required to sell such factory or store, the court may, despite such preventive
condition, order the continuation of the lease if the tenant provides sufficient security and no
ascertainabledamageissufferedbythelandlord.
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Article622
Where the lease is assigned, the assignee shall substitute the original tenant in all his rights and
obligations arising from the lease contract. However, the original tenant shall remain liable to the
assigneetoperformhisobligations.
Article623
1. Intheeventofsublease,therelationshipbetweentheoriginaltenantandthelandlordshallremain
governedbytheprovisionsoftheleasecontract.However,theprovisionsofthesubleasecontract
shallgoverntherelationshipbetweentheoriginaltenantandthesublessee.
2. However, the sublessee shall directly pay to the landlord such amount payable by the original
tenanttothelandlordwhenthelatternotifiesthetenanttodoso.Thelandlordmaynotrequirethe
sublessee to pay such rent that the landlord may demand the original tenant to pay in advance,
unlesssuchadvancepaymentisrequiredpriortothedateofthenoticeunderaninstrumentwhose
dateisfixed.
Article624
Thetenantshallbedischargedfromliabilitytothelandlord,whetherinconnectionwithhisliabilityto
theassigneeintheeventofassignmentoftheleaseorwithsuchobligationsundertheleaseintheevent
of sublease, provided that the landlord grants an express or implied consent of such assignment or
sublease.Impliedconsentshallbedeemedifthelandlorddirectlycollectstherentfromtheassigneeor
thesublesseewithoutanyreservationofhisrightsagainsttheoriginaltenant.
4th:TerminationofLease
Article625
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Theleaseshallterminateupontheexpiryofitstermasstatedthereinwithoutnoticetovacate,unlessit
isagreedtoextendtheleaseforafixedorothertermifnospecificdateisstated.
Article626
1. Where the lease contract terminates and the tenant continues to occupy the leased property
without objection by the landlord, the lease shall be deemed renewed under its initial conditions
foranindefiniteperiodoftime.Insuchevent,theprovisionsofArticle588hereinshallapplyto
thelease.
2. Securitiesinkindthattheoriginaltenantmayhaveprovidedassecurityfortheinitialleaseshall,
subjecttotherulesofregistration,applytothenewlease.However,securitiesprovidedbythird
partiesshallnotextendtothenewleasewithouttheirconsent.
Article627
1. Whereeitherpartynotifiestheotherofvacatingorthetenantcontinuestousetheleasedproperty
upon expiry of the lease, it shall not be deemed renewed unless evidence to the contrary is
provided.
2. Where the landlord notifies the tenant that he shall not renew the lease other than for a specific
rentorunderotherspecificconditionsandthetenantremainssilent,suchsilenceshallbedeemed
renewaloftheleaseatsuchrentorundersuchnewconditionsasnotifiedbythelandlord.
Article628
1. Where the title to the leased property is vested in a special successor, the lease shall not be
effectiveagainstsuchsuccessorunlessitisprovedthatheisawarethereoforunlessthedateof
theleaseispriortotheeffectivedateofsuchtransferoftitle.
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2. However,anypersontowhomsuchtitleistransferredmayholdtothelease,evenifsuchleaseis
noteffectiveagainsthim.
Article629
Even if the lease is not effective against him, any person to whom title to the leased property is
transferredmaynotforcethetenanttoreturntheleasedpropertywithoutpriornoticeinaccordancewith
theprovisionofArticle588herein,andafterthetenantreceivesanindemnityfromthelandlorddueto
thereturnofthepropertypriortotheexpiryoftheleaseorafterthetenantobtainssufficientsecurityto
paysuchindemnity.
Article630
1. Wheretheleaseiseffectiveagainstthepersontowhomsuchtitleistransferred,heshallsubstitute
thelandlordinallhisrightsandobligationsunderthesubcontract.
2. However,thetenantmaynotholdtoanyrentpaidtosuchpersonif,atthetimeofpayment,such
personprovesthatthetenantwas,orshouldhavebeen,awareofsuchtransfer.Ifsuchpersonfails
toprovidesuchevidence,heshallhaverecourseagainstthelandlordonly.
Article631
Where it is agreed that the landlord may terminate the lease for personal reasons, he shall, upon using
this right, notify the tenant to vacate on such dates as set forth in Article 588 herein, unless agreed
otherwise.
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Article632
1. Where any unforeseen circumstances arise in connection with either party which make the
continuation of the lease unduly burdensome to such party, the court may, on demand by such
party and upon a comparison of the interests of both parties, terminate the lease and fairly
indemnifytheotherparty.
2. Wherethelandlorddemandsterminationofthelease,thetenantshallnotbeforcedtoreturnthe
leasedpropertyuntilindemnityispaidoruntilasufficientsecurityisprovided.
Article633
1. Theleasecontractshallnotterminateonthedeathofthelandlordorthetenant.
2. However,ifthetenantdies,hisheirsmaydemandterminationoftheleaseiftheyprovethat,due
tosuchdeath,theobligationsofthecontracthavebecomemoreburdensomethantheirresources
canbearorthattheleaseexceedstheirneeds.
Article634
Wherethetenantdiesandtheleaserelatestohisprofessionalorpersonalaffairs,hisheirsorthelandlord
maydemandterminationofthelease.
Article635
Wheretheworkofthetenantrequireschanginghisplaceofresidence,hemaydemandterminationof
theleaseofhisaccommodation.
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Article636
ThepartywhodemandsterminationoftheleaseunderArticles632to635hereinshallcomplywiththe
dateofgivingnoticeasprovidedbyArticle588herein.
Article637
1. Where the tenant fails to use the leased property, either fully or in part, and such failure is
attributedtohiserrorortosomethingrelatingtohisperson,heshallremainliabletopaytherent
andtoperformhisobligationsunderthelease,solongasthelandlordhasputtheleasedproperty
atthedisposalofthetenantinaconditionthatisfitforitsintendedpurpose.
2. Insuchanevent,thelandlordshalldeductfromtherentanycostssavedandanyprofitsmadedue
tothefailurebythetenanttousetheleasedproperty.
SubchapterTwo:CertainTypesofLease
1st:LeaseofAgriculturalLands
Article638
Theprovisionsofleaseshallapplytotheleaseoffarminglands,subjecttothefollowingArticles,unless
otherwiserequiredbyagreementorbypractice.
Article639
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1. Leaseoffarminglandsshallnot,unlesstheleasecontractprovidesotherwise,includethecattle,
toolsandequipmentassociatedwithfarming.
2. Wheretheleaseincludestheforegoing,thetenantshalltakegoodcarethereofandattendtotheir
propermaintenance.
Article640
Wheretheleasetermisforoneormoreyears,thisshallmeanoneormoreannualcroprotations.
Article641
1. Leasedlandsshallbeutilizedasagreed.Intheabsenceofsuchagreement,thetenantshallutilize
them according to their nature and as required by farming practice and, in particular, he shall
ensurethatsuchlandsremainproductive.
2. Without the consent of the landlord, the tenant may not make to the applicable means of
utilizationthereofanymaterialchangethatmaysurvivethelease.
Article642
1. Thetenantshallmakesuchrepairsasrequiredfortheusualutilizationoftheleasedlandand,in
particular, he shall undertake the usual maintenance of the wells, waterways and buildings
allocatedforaccommodationorutilization.
2. Thelandlordshallundertakesuchrepairsasmaybenecessaryfortheproperty'sintendeduse.
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Article643
1. Wherethetenantcannotpreparethelandforcultivationortheseedsarelost,eitherinwholeorin
part,duetoaforeigncausebeyondhiscontrol,heshallbedischargedfrompayingtherentinfull
orinpart,asthecasemaybe.
2. Wherethecropislostinfullpriortoitsharvestduetoaforeigncausebeyondthecontrolofthe
tenant,hemaydemandtobedischargedfrompayingtherent.
3. Wherethecropislostinpart,andsuchlossresultsinconsiderabledeficiencyintherevenuesof
theland,thetenantmaydemandareductionintherentinproportiontosuchdeficiency.
Article644
The tenant may not demand cancellation of or a reduction in the rent as provided by the preceding
Articleifheisindemnifiedagainstthedamagehehassufferedbytheprofitsmadebyhimthroughout
thetermoftheleaseorbyanyotherway.
Article645
The tenant may not demand cancellation of or a reduction in the rent if the crop is lost after harvest,
unlessitisagreedthatthelandlordhasafixedrighttothecrop.Insuchevent,thelandlordshallbearhis
shareofsuchloss,providedthatsuchlossisnotduetothefaultofthetenantoritoccursuponhisbeing
notifiedtodeliverthecrop.
Article646
Wherethecropisnotyetripeuponexpiryofthelease,thetenantshallremainontheleasedpropertyat
thesamerentuntilthecropisripeandharvested.Wherethecropisunripeduetothetenant'sfault,he
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shallalsoindemnifythelandlord.
Article647
Thetenantmaynotdoanythingthatlimitsordelaystheuseofthelandbyhissuccessor.Inparticular,
and within a reasonable time prior to vacating the property, the tenant shall permit such successor to
cultivateandsowthelandwithoutanyconsequentdamage.
2nd:FarmLease
Article648
Farmingandtreeplantedlandsmaybeleasedtothetenantonacropsharingbasisinconsiderationof
partofthecroptothelandlord.
Article649
Unless otherwise required by agreement or by practice, the provisions of lease shall apply to crop
sharing,subjecttothefollowingArticles.
Article650
Wherethetermofcropsharingisnotdetermined,itstermshallbesuchperiodasrequiredtoharvestthe
agreedcrop,ifany,oranannualcroprotation.
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Article651
Cattleandfarmingtoolsownedbythelandlordwhicharefoundonthelandatthetimeofcontracting
shallformpartofthecropsharingcontract.
Article652
The tenant shall, in farming and keeping the crop, use such care as he would for his own affairs and
shalluseallreasonablecareinmaintainingthelandandanythingthereonortherein.
Article653
Thetenantmaynot,withouttheconsentofthelandlord,assigntheleasetoorshareitwithanyother
person.
Article654
1. Thetenantshallbearthecultivationexpensesandprotectthecropuntilitisripe.Thetenantshall
alsomaintainandmakeminorrepairstothetools,equipmentandbuildings.
2. Thetenantshallbeartheexpensesofotherrepairsandallnecessaryimprovementstotheland.
3. Thepartiesshall,proratatotheirrespectivesharesinthecrop,bearallcostsrelatingtoseedand
fertilization,pesticides,harvesting,andanyothercostsincurreduntilthedivisionofthecrop.
Article655
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1. The crop shall be divided between the parties as agreed or according to the practice. In the
absenceofsuchagreementorpractice,thecropshallbedividedequally.
2. Noagreementmaybemadeintermsofwhichtheshareofeitherpartyisafixedamountofthe
croporthecropofaparticularpartoftheland.
Article656
Where the crop is lost, either in whole or in part, due to a foreign cause beyond the control of either
party,suchlossshallbeborneequallybybothparties.
Article657
TheprovisionsofArticle646hereinshallapplywherethecropisnotyetripeupontheexpiryofthe
cropsharing contract. However, the tenant shall not be liable to pay an equivalent rent other than pro
ratatohisshareofthecrop.
Article658
Wherethetenantfailstocultivatethelandduetoillnessorforanyotherreasonanditisnotpossiblethat
hebesubstitutedbyanyofhisfamilymembers,eitherpartymaydemandterminationofthecontract.
Article659
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Cropsharing shall not terminate on the death of the landlord but it shall terminate on the death of the
tenant.
Article660
1. Where cropsharing is terminated prior to the expiry of its term, the landlord shall repay to the
tenant or to his heirs such costs paid by the tenant for the crop not yet ripe at such termination,
plus an indemnity equal to the wage of a similar work, provided that such amounts shall not
exceedtheshareofthetenantinthecrop.
2. However, where cropsharing is terminated by the death of the tenant, his heirs shall have the
optioneithertocollecttheaboveamountsorsubstitutethetenantintheworkuntilthecropisripe,
providedthatsuchheirscanperformtheworkproperly.
3rd:LeaseofWaqfProperty
Article661
1. Thetrusteeofthewaqfshallhavetheauthoritytoleaseit.
2. Eveniftheentitlementislimitedtohim,thebeneficiaryofthewaqfshallhavenoauthorityunless
heisauthorizedbythecreatorofthewaqforbyanyotherpersonwhomayhavetheauthorityto
lease,suchasthetrusteeorthejudge.
Article662
Theauthoritytocollecttherentshallbevestedinthetrusteebutnotthebeneficiary,unlessthetrustee
authorizeshimtocollectsuchrent.
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Article663
Thetrusteeofthewaqfmaynotleaseawaqfpropertyforhisownaccountorforhiswife,childrenor
relatives.
Article664
1. No waqf lease shall be valid in the event of gross injustice unless the landlord is the only
beneficiarythatmayhavetheauthoritytodisposeofthewaqf,inwhicheventthewaqfmaybe
leasedbygrossinjusticeagainsthimselfbutnotagainstsuccessivebeneficiaries.
1. Where the trustee leases the waqf at gross injustice, the tenant shall complete the rental to the
rentalofasimilarpropertyotherwisethecontractshallberevoked.
Article665
1. Wherethecreatorofthewaqfdeterminesthetermoflease,suchdeterminationshallapplyandthe
trusteemaynotcontradictsuchdeterminationunlessauthorizedtoleaseinthebestinterestofthe
waqf.
2. Ifnopersonwishestoleasethewaqfforthetermasdeterminedbythecreatorofthewaqforif
theleaseforalongerperiodisinthebestinterestofthewaqf,thetrusteemayleasethewaqffora
longertime,subjecttothecourt'spermission.
Article666
Otherthanwaqfpropertiesformingpartofthegeneraltrusteeshipbythecompetentauthoritybylaw,the
trusteemaynot,unlessthecreatorofthewaqfdeterminestheperiodofthelease,leaseahouse,ashop
andthelikeformorethanoneyearorleasethelandforlessthanthreeyears,unlesstheinterestrequires
therentofsuchhouseandshopbeincreasedortherentofthelandbedecreased.
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Article667
1. Other than waqf properties forming part of the general trusteeship by the competent legal
authority, the trustee may not, without permission from the court, lease the waqf for more than
threeyears,evenundersuccessivecontracts.Ifthetermoftheleaseislonger,suchtermshallbe
shortenedtothreeyears.
2. However, if the trustee is the creator of the waqf or the only beneficiary, he may not, without
permission from the court, lease the waqf for more than three years, subject to the right of the
successortrusteetodemandadecreaseofsuchtermtothreeyears.
Article668
Thewaqfleaseshallnotterminateonthedeathorremovalofthetrustee.
Article669
Theprovisionsoftheleasecontractshallapplytothewaqflease,subjecttotheaboveprovisions.
ChapterTwo:Commodation
Article670
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Lending shall be defined as a contract under which the lender undertakes to deliver to the borrower a
nonconsumable thing to be used without consideration for a specific period of time or for a specific
purpose,providedthatsuchthingshallbereturnedtothelenderafterthespecifiedperiodorpurposehas
expired.
1st:EffectsofCommodation
ObligationsoftheLender
Article671
Thelendershalldelivertheborrowedthingtotheborrowerinthesameconditionitwasatthetimeof
conclusionofthelendingcontract.
Article672
1. Where the borrower incurs costs in maintaining the borrowed thing, the lender shall reimburse
thesecosts.
2. Expenses beneficial to the borrower shall be governed by the provisions concerning expenses
paidbyaholderofathingwhoactsinbadfaith.
Article673
1. The lender shall not be liable for the entitlement to the borrowed thing, unless there is an
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agreementtosuchliabilityorthelenderhasdeliberatelyconcealedthecauseofsuchentitlement.
2. The lender shall not warrant that the borrowed thing is free from defects unless the lender
deliberately conceals a defect or warrants to secure such defect, in which event the lender shall
indemnifytheborrowerforthedamagethatmayarisefromsuchdefect.
ObligationsoftheBorrower
Article674
1. Where lending is limited by time, place or type of use, the borrower may not use the borrowed
thing other than at such time and place as determined, or use the borrowed thing other than as
permitted.
2. Wherelendingisnotrestrictedbyanylimitation,theborrowermayusetheborrowedthingatany
timeorplaceorforanypurposeathisdiscretion,providedthatheshallnotexceedtheusualuse
ofsuchthing.
3. Ineithercase,theborrowershallnotbeliableforanychange,lossordeficiencyduetotheuseof
athingauthorizedbysuchlending.
Article675
Aborrowermaynotleaseorlendtheborrowedthingwithouttheconsentofthelender.
Article676
Theexpensesarisingfromtheuse,usualmaintenanceandreturnofaborrowedthingshallbeborneby
theborrower.
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Article677
1. Theborrowershalluseallreasonablecaretoprotecttheborrowedthing.
2. In all events, the borrower shall be liable for the loss of a thing if such loss arises from an
unforeseenincidentorforcemajeure,providedthattheborrowercouldhaveavoidedsuchlossby
using a thing of his own, or had the choice to save either his own property or the borrowed
propertyandchosetosavehisownproperty.
Article678
1. Upontheexpiryoflending,theborrowershallreturnthethinginitsoriginalconditionatthetime
ofborrowing,subjecttohisliabilityforlossordamage.
2. Such thing shall be returned to the place from where the borrower collected it, unless otherwise
agreed.
2nd:TerminationofCommodation
Article679
1. Lending shall terminate upon the expiry of the agreed date or otherwise upon the completion of
thepurposeforwhichtheborrowedthinghasbeenlent.
2. Wherethetermoflendingcannotbedetermined,thelendermayterminateitatanytime.
3. In all events, the borrower may return the borrowed thing prior to the expiry of lending, but if
suchreturnmaycausedamagetothelender,heshallnotbeforcedtoacceptsuchthing.
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Article680
Thelendermay,atanytime,terminatethelendingcontractinanyofthefollowingcases:
1. Whereanurgentunforeseenneedtoterminatethelendingcontractarisesatanytime.
2. Wheretheborrowermisusesathingorfailstoprotectit.
3. Wheretheborrowerbecomesinsolventupontheconclusionoflendingorifhehasalreadybeen
insolventwithouttheknowledgeofthelender.
Article681
Unlessagreedotherwise,lendingshallterminateonthedeathoftheborrower.
Part3:EmploymentContracts
ChapterOne:ContractAgreements
SubchapterOne:GeneralRulesforContractualAgreements
Article682
A contracting agreement shall be defined as a contract under which either party undertakes to make a
thing or perform any work for the other party in consideration of a wage, without being an agent or
representativeofsuchparty.
1st:ProvisionofMaterials
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Article683
1. Theobligationofthecontractormaybelimitedtotheperformanceoftheagreedwork,provided
thattheemployerprovidestherequiredmaterials.
2. Thecontractormayprovidealloranyofthematerialsinadditiontohisobligationtoperformthe
work.
Article684
1. Wherethecontractorprovidesalloranyoftheworkmaterials,suchmaterialsshallbecompliant
withtheagreedspecifications,ifany,orshallbeadequatefortheirintendedpurpose.
2. Thecontractorshallbeliableforanydefectsinsuchmaterialsinaccordancewiththeprovisions
ofliabilityfordefectsinasoldthing.
Article685
1. Where the work materials are provided by the employer, the contractor shall use all reasonable
care to protect such materials, comply with the technical practices for the proper use of such
materials,accountforthematerialstotheemployer,andreturntotheemployeranyremainingpart
ofsuchmaterials.
2. Where such materials are not fit for use, either in whole or in part, due to the negligence or
technicalinefficiencyofthecontractor,heshallpaythevalueofsuchmaterialstotheemployer,
togetherwithindemnity,asapplicable.
Article686
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1. Where, during the progress of the work, any defects in the materials provided by the employer
ariseorappear,orthereareotherfactorsthatmayobstructtheperformanceoftheworkinproper
conditions,thecontractorshallnotifytheemployerofsuchdefectsimmediately.
2. Where the contractor neglects to notify the employer, the contractor shall be liable for the
consequencesofsuchnegligence.
2nd:ContractorsObligations
Article687
1. The contractor shall perform the work in accordance with the conditions as set out in the
contractingagreementandwithinsuchperiodasagreed.Wherenosuchconditionsaresetoutor
nosuchperiodisagreed,thecontractorshallperformtheworkinaccordancewiththeapplicable
practices and within such reasonable period as required for the nature of the work, subject to
establishedstandardsofworkmanship.
2. Unless otherwise required by agreement or practice, the contractor shall provide at his cost any
labour,toolsandsuppliesrequiredtoperformthework.
Article688
1. Where,duringtheprogressofthework,itappearsthatthecontractorisperformingtheworkina
defective manner or in breach of the contract the employer may notify the contractor to correct
the method of performance within such reasonable time as determined by the employer. Where
suchperiodexpireswithoutremedyofsuchbreach,theemployermaydemandterminationofthe
contractorobtainalicensefromthecourttoperformtheworkatthecostofthecontractorifthe
natureoftheworksopermits.
2. The employer may demand termination of the contract without notice or time limit if the
correctionorremedyofthebreachisimpossible.
3. In any event, the court may reject the request for termination if the defect in the method of
performancehasnotdecreasedtoalargeextentthevalueoftheworkoritsutilityfortheintended
purpose,withoutprejudicetotherighttoindemnity,asapplicable.
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Article689
Wherethecontractordelaysincommencingoraccomplishingtheworktosuchanextentthathecannot
possiblydelivertheworkwithintheagreedperiod,orifhisactionsindicatehisintentionnottoperform
his obligation or make the performance of his obligation impossible, the employer may demand the
immediateterminationofthecontract.
Article690
Whereathingislostordamagedduetoanunforeseenincidentorforcemajeurepriortoitsdeliveryto
theemployer,thecontractormaynotdemandpaymentoftheagreedwageorthevalueofthematerials
providedbyhimunlesstheemployerisinbreachofhisobligationtotakeovertheworkatthetimeof
lossordamage.
Article691
1. Where the materials are provided by the employer and the thing is lost or damaged prior to its
deliveryduetoanyunforeseenincidentorforcemajeure,theemployermaynotdemandthatthe
contractorpaythevalueofsuchmaterialsunlessatthetimeofsuchlossordamagethecontractor
is in breach of his obligation to deliver the work, provided that the contractor fails to prove that
such thing would have been lost or damaged in the possession of the employer if it had been
deliveredtotheemployer.
2. Theworkmaterialsshallbedeemedprovidedbytheemployeriftheirvaluehasbeenpaidbythe
employertothecontractororanamountpaidonaccount,includingsuchvalue,tothecontractor.
3rd:ObligationsoftheEmployer
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Article692
1. Where performance of the work requires a specific action within a specific time period by the
employerbuthefailstoactwithinsuchtimeperiod,thecontractormaydemandtheemployerto
actwithinsuchreasonabletimeasdeterminedbythecontractor.
2. Where such time period expires without the employer's action, the contractor may demand
terminationofthecontractwithoutprejudicetohisrighttoindemnity,asapplicable.
Article693
Where the contractor completes the work and puts it at the disposal of the employer after notification
thereof,theemployershalltakeovertheworkaccordingtothefamiliarproceduresoftransaction.Ifthe
employerwithoutanygoodreasonrejectstakingovertheworkdespitebeinginvitedtodosoundera
formalnotice,theworkshallbedeemedtohavebeendeliveredtotheemployer.
Article694
1. The employer may reject taking over the work if any defect therein or breach of the agreed
conditionsrenderstheworkunfitforitsintendedpurpose.
2. Where such defect or breach has not rendered the work unfit for its intended purpose, the
employermayonlydemandareductioninthesumowedtothecontractortotheextentconsistent
withthesignificanceofsuchdefectorbreachor,wherearemedyisavailableatreasonablecost,
he may require the contractor to remedy such defect or breach within such reasonable time as
determinedbytheemployer.
Article695
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TheemployermaynotholdtotherightsprovidedintheprecedingArticleifhehascausedthedefect,
whetherbyissuingorderscontrarytotheopinionofthecontractororbyanyotherway.
Article696
1. Whenever the work is taken over actually or virtually, the contractor shall not be liable for any
apparentdefectorbreachoftheconditionsofthecontract.
2. Where the defects or breach are invisible, and the employer detects such defects or breach after
takingoverthework,heshallnotifythecontractorthereof,subjecttotherulesofworkmanship,
failingwhichtheemployershallbedeemedtohaveacceptedthework.
Article697
Theemployershallpaytheduesofthecontractorupontakingoverthework,unlessotherwiserequired
byagreementorbypractice.
Article698
1. Where the work consists of distinct parts or if the price is determined by unit price, either
contracting party may demand inspection upon the completion of each part that may be
adequatelysignificanttotheworkasawhole.Insuchevent,thecontractormaycollecthisduesto
theextentoftheworkcompleted,unlessagreedotherwise.
2. Itshallbepresumedinconnectionwithanyworkforwhichthecontractor'sduesarepaidthatit
hasbeeninspectedandaccepted,unlessintheeventofpaymentonaccount.
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Article699
Wherethecontractor'sduesarenotagreed,suchduesshallbedeterminedwithreferencetothevalueof
similar work at the time of the contract and the value of the materials provided by the contractor as
requiredforthework.
Article700
Subjecttotheprovisionsofclause2ofArticle171herein,theriseinthepricesofrawmaterials,labour
forcewagesandothercostsshallnotaffectthescopeoftheobligationsunderthecontract.
4th:Subcontracts
Article701
1. Thecontractormaydelegateallorpartofhisworktoasubcontractorunlessotherwiseprovided
bythecontract,orunlessthepersonalityofthecontractorisconsideredinthelightofthenature
ofthework.
2. However, the obligations of the main contractor to the employer shall remain effective and the
contractorshallbeliabletotheemployerfortheworksperformedbythesubcontractor.
Article702
1. The subcontractor and labourers working for the account of the main contractor to perform the
workshallbeentitledtodirectlydemandtheemployertopaytheirduestotheextentpayableby
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the main contractor at the time of the claim. The employees of the subcontractor shall have the
samerightagainstthemaincontractorandtheemployer.
2. Thesubcontractorandlabourersmay,atthetimeofimposingattachmentagainsttheemployeror
themaincontractor,holdalienontheamountsduetothemaincontractorfromthesubcontractor
atthetimeoftheattachment,proratatotherightofeachofthem.Suchamountsmaybepaidto
thesubcontractororlabourers.
3. TherightsofthesubcontractorandlabourersasprovidedunderthisArticleshallhavepriorityto
therightsofanypartytowhomthecontractormayassignhisrightagainsttheemployer.
5th:TerminationoftheContractualAgreement
Article703
Where the contractor performs the maintenance of a thing or any other refurbishing works within a
specificperiodunderthecontractingagreement,suchagreementshallterminateupontheexpiryofthat
period.
Article704
Thecontractingagreementshallterminateiftheagreedworkisimpossibletoperformduetoaforeign
causebeyondthecontrolofeitherparty.Insuchevent,thecontractorshallhavetherighttodemandthe
employer to reimburse any costs incurred by the contractor and such wages payable to him,
commensuratewiththebenefitobtainedbytheemployerfromsuchwork.
Article705
Thecontractingagreementshallterminateuponthedeathofthecontractorifhispersonalqualifications
or capabilities are taken into consideration upon making the contract, otherwise the contract shall not
terminateautomatically.However,theemployermaydemandterminationofthecontractifnoadequate
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securitiestoperformtheworkproperlyareavailableintheheirsofthecontractor.
Article706
1. Where the contracting agreement terminates on the death of the contractor, his heirs shall be
entitled to the value of the works completed by him and such costs incurred by the contractor
therein,tosuchextentthattheemployermaybenefitfromsuchworksandcosts.
2. Theemployermaydemanddeliveryofallmaterialsanddrawingsrelatingtothework,provided
thathepaysafairconsideration.
3. These provisions shall also apply where the contractor has commenced the work but becomes
unabletocompleteitduetoaforeigncausebeyondhiscontrol.
Article707
1. The employer may withdraw from the contract and stop the work at any time prior to its
completion,providedthatthecontractorshallbeindemnifiedforallexpensesincurred,allworks
completed,andanyprofithecouldhavemadehadtheworkbeencompleted.
2. The court may reduce the indemnity payable for the profit missed by the contractor if the
circumstancesmakesuchreductionfair.Inparticular,thecourtshallreducesuchindemnitytothe
extent of the costs saved by the contractor due to the withdrawal from the contract by the
employerandtheprofitmadebythecontractorbyapplyingsuchtimetootherwork.
Subsection2:SpecialProvisionsRelatingtoBuildingandConstructionContracts
Article708
1. Where the contract is made on an estimated measurement basis and, during the progress of the
workitisdeemednecessarytoexceedtheassessedmeasurementstoexecutetheagreeddesign,
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thecontractorshallnotifytheemployerthereof,statingtheextentoftheincreaseincosts.Failure
todososhallresultinthecontractorlosingtherighttoreimbursementfortheextracostsincurred.
2. Wheresuchextracostsrequiredfortheexecutionofthedesignaresubstantial,theemployermay
withdrawfromthecontractandstopsuchexecutionwithoutdelay,providedthatthecontractoris
paidfortheworkscompletedbyhim,assessedinaccordancewiththeconditionsofthecontract,
withoutanyindemnityagainstthecontingentprofitofthecontractorintheeventofcompletionof
thework.
Article709
Where the contract is made for a lump sum on the basis of a design agreed with the employer, the
contractor may not demand any increase in his dues as a result of any amendment or addition to such
design, except if caused by or on behalf of the employer, and the employer shall agree with the
contractorontheextraamountinconnectionwithsuchamendmentoraddition.
Article710
Where a building or other structure is constructed on land owned by the employer and there are
substantialdefectsthereintotheextentasdescribedinclause1ofArticle694herein,andtheremovalof
suchbuildingorstructuremayresultinseriousdamage,theemployermayonlydemandareductionin
the dues of the contractor or require him to repair such damage in accordance with the provision of
clause2ofthesaidArticle,subjecttotheemployer'srighttoindemnity,ifany.
Article711
1. Thecontractorandtheengineershallbejointlyliableforanycollapseordefect,eitherinwholeor
in part, of the buildings or other fixed structures constructed by them, even if such collapse or
defect arises from a defect in the land itself or the employer has authorized such defective
buildingsorstructures.Suchliabilityshallincludeanydefectsthatmayappearinthebuildingsor
otherstructureswhichmaythreatenthesafetyandstabilitythereof.
2. Wherethepartiesintendthatthebuildingsorstructuresremainonthelandforlessthanten(10)
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years, liability shall be valid during any shorter period. In all events, the term shall commence
fromthedatetheworkwasawarded.
3. TheprovisionsofthisArticleshallnotapplytoanyrightofrecoursebythecontractoragainstthe
subcontractors.
Article712
1. Wheretheworkoftheengineerislimitedtothedesignofthebuildingorstructureinwholeorin
part, the contractor shall be liable for such defects that may arise from the design but not for
defectsduetothemethodofconstructionandexecution.
2. Where the employer assigns the engineer to supervise the execution in whole or in part, such
engineer shall also be liable for such defects that may arise from the method of execution
supervisedbyhim.
Article713
1. Thecontractorshallbeliableonlyfordefectsofexecutiontotheexclusionofdefectsfromfaulty
design,unlesssuchdefectscanbereasonablydetectedbythecontractoraccordingtoprofessional
practice.
2. However, the contractor shall be liable for defects arising from the design if the engineer who
preparedthedesignisemployedbythecontractor.
Article714
Anactionforliabilityshallprescribeaftertheexpiryofthreeyearsfromthetimeofthecollapseofthe
buildingorstructureorthedetectionofadefecttherein.
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Article715
Anyprovisionintendedtodischargethecontractorortheengineerfromliabilityortolimitsuchliability
shallbevoid.
ChapterTwo:Agency
Article716
Agency shall be defined as a contract under which the agent undertakes to do any legal act for the
accountoftheprincipal.
1st:ElementsofAgency
Article717
The agency contract shall not be valid unless the principal has the capacity to do the act, the subject
matteroftheagency.
Article718
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The agency contract shall have such form as required to be available in the subject matter of the legal
act.
Article719
Agencyingeneral,withoutspecificdesignationofthesubjectmatteroftheagency,shallnotgrantthe
agentanycapacityotherthaninadministrativeacts.Thetermadministrativeactsshallincludelease,
provided that it does not exceed three years maintenance and safekeeping works collection of rights
andrepaymentofdebts.Thisexpressionshallalsoincludeanydispositionasrequiredformanagement.
Article720
The agency contract shall not grant the agent any capacity other than to do such acts as stated therein
andanyancillarythingsinaccordancewiththenatureofsuchactsandtheapplicablepractice.
Article721
1. Anyactotherthantheadministrativeactsshallrequireaspecialagency,particularlyforgifts,sale,
reconciliation, mortgage, acknowledgement, arbitration, putting to oath and pleading before the
courtsoflaw.
2. Aspecialagencyshallbevalidinaparticulartypeoflegalact,evenifthesubjectmatterofsuch
actisnotspecificallydetermined,unlessitisanactofgift.
2nd:EffectsofAgency
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ObligationsoftheAgent
Article722
1. Theagentshallbeboundbytheagencycontractwithoutexceedingitslimits.
2. The agent may exceed the limits of the agency contract where it is impossible to notify the
principal in advance and the circumstances most probably indicate that the principal will have
agreedtosuchact.Insuchevent,theagentshallnotifytheprincipalofsuchexcess.
Article723
1. Wheretheagencycontractiswithoutconsideration,theagentshallusethesamestandardofcare
ashewouldinhisownacts,butnotbeyondthatofareasonableperson.
2. Wheretheagencyiswithconsideration,theagentshallusethecareofareasonablepersonatall
times.
Article724
Theagentshallprovidehisprincipalwithallnecessaryinformationinconnectionwithperformanceof
theagencyandprovideareportthereofsupportedbydocuments,unlesstheagreementorthenatureof
thetransactionrequiresotherwise.
Article725
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The agent may not use the assets of his principal for his own account without the consent of the
principal otherwise the principal may demand that the agent pay indemnity as assessed by the court
accordingtotherequirementsofjusticeandtheprevailingcircumstances.
Article726
1. In the event of multiple agents, where each agent is assigned under a separate contract, each of
themmayindividuallyperformtherequiredactsunlesstheprincipalauthorisestheagentstoact
jointly.
2. Wheresuchagentsareassignedunderasinglecontractwithoutanyauthoritytoactindividually,
theyshallactjointly,unlesstheexchangeofopinionisnotrequiredforaspecificact.
Article727
1. Multiple agents shall be jointly liable where the agency is indivisible or where the damage
sufferedbytheprincipalarisesfromacommonmistakeoftheagents.
2. However,theagentsshallnotbejointlyliableforanyactofeachagentwhichexceedsthelimits
oforabusestheagency.
Article728
1. Whereanagentdelegatesathirdpartytoperformtheagencywithoutauthoritytodoso,theagent
shallbeliablefortheactofsuchthirdpartyasifsuchactistheactoftheagenthimself.Insuch
event,theagentandhisdelegateshallbejointlyliable.
2. Where the agent is authorized to delegate performance of the agency but no delegate is
designated, the agent shall be liable only for his mistake in nominating or giving instructions to
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thedelegate.
3. In both events, the principal and the representative of the agent may have recourse against each
otherdirectly.
ObligationsofthePrincipal
Article729
1. Theagencyshallbewithoutconsiderationunlessotherwiseagreedorunlessotherwiseimplicitly
understoodbytheagent.
2. Wherethepartiesagreeonafee,suchfeeshallbeassessedatthediscretionofthecourt,unless
voluntarilypaidbytheprincipalupontheperformanceoftheagency.
Article730
1. Theprincipalshallreimbursetheagentallcostsincurredbyhiminthenormalperformanceofthe
agency,irrespectiveofhowsuccessfultheagentisinsuchperformance.
2. Where performance of the agency requires that the principal provide to the agent amounts to be
spent on the affairs of the agency, the principal shall provide such amounts on demand by the
agent.
Article731
The principal shall be liable for any damage suffered by the agent in the normal performance of the
agency,excludingdamagearisingfromtheagent'smistakes.
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Article732
Where more than one principal appoints a single agent to perform a common act, all such principals
shallbejointlyliableagainsttheagentfortheperformanceoftheagency,unlessagreedotherwise.
Article733
The provisions of Articles 83 to 87 herein concerning representation in contracts shall apply to the
relationshipbetweentheprincipalandtheagentwiththirdpartiesdealingwithsuchagent.
3rd:TerminationofAgency
Article734
Theagencyshallterminateuponthecompletionoftheactsdescribedthereinorupontheexpiryofits
term. The agency shall also terminate on the death of the agent or the principal unless it is granted in
favour of the agent or a third party or unless it is intended to be completed upon the death of the
principal.
Article735
1. Theprincipalmayatanytimeterminateorlimittheagency,evenifthereisanagreementtothe
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contrary.
2. However,wheretheagencyisissuedinfavouroftheagentorathirdparty,theprincipalmaynot
terminateorlimitsuchagencywithouttheconsentofsuchagentorthirdparty.
3. Inallevents,theprincipalshallindemnifytheagentforanydamagesufferedbytheagentdueto
hisremovalatanyimpropertimeorwithoutgoodcause.
Article736
1. The agent may at any time withdraw from the agency, even if there is an agreement to the
contrary,bygivingnoticetotheprincipal.Theagentshallbeobligatedtoindemnifytheprincipal
against any damage suffered by the principal due to such withdrawal at any improper time or
withoutgoodcause.
2. Unless he has compelling reasons, the agent may not withdraw from the agency if a third party
hasaninteresttherein,providedthatsuchthirdpartyshallbenotifiedofsuchwithdrawalinorder
togivehimadequatetimetodecidewhatisinhisbestinterest.
Article737
1. Irrespective of the manner of termination of the agency, the agent shall complete the acts
commencedtosuchstagewherenodamagemaybesufferedbytheprincipal.
2. Where the agency is terminated due to the death of the agent, his heirs shall, provided that they
havethecapacityandareawareoftheexistenceoftheagency,notifytheprincipalofsuchdeath
ortakesuchappropriatestepsonbehalfoftheprincipal.
ChapterThee:DepositContract
Article738
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Deposit shall be defined as a contract whereby a person undertakes to receive a thing from another
personforsafekeepingandtoreturnitinkind.
1st:EffectsofDeposit
ObligationsoftheDepositary
Article739
Thedepositeeshallreceivethedepositedthingandmaynotuseitwithouttheconsentofthedepositor.
Article740
1. Wherethedepositedthingiswithoutconsideration,thedepositeeshallusethesamecareasinhis
ownacts,butnotbeyondthecareofareasonableperson.
2. Where the deposited thing is with consideration, the depositee shall use the care of a reasonable
personatalltimes.
Article741
Thedepositeemaynot,withouttheconsentofthedepositor,delegateanyotherpersontosafekeepthe
depositedthing,unlessduetourgentnecessity.
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ObligationsoftheDepositor
Article742
The deposit shall be without consideration. Unless required otherwise by agreement or by practice,
wherethepartiesagreeonafeethedepositorshallpaysuchfeeontheterminationdateofthedeposit.
Article743
Thedepositorshallreimbursethedepositeeforanycostsincurredbyhiminsafekeepingthedeposited
thingandshallindemnifyhimagainstanydamageduetosuchdeposit.
2nd:TerminationofDeposit
Article744
Thedepositcontractshallterminateupontheexpiryoftheagreedterm.Wheresuchtermisnotmutually
agreed,expresslyorimpliedly,eitherpartymayterminatethedepositcontractuponnoticetotheother
partyattheappropriatetime.
Article745
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The depositor may at any time demand return of the deposited thing. Where the term of the deposit is
determined in favour of the depositee or the depositee is authorized to use the deposited thing, the
depositorshallindemnifythedepositeefortheprofitlostduringtheremainingperiod.
Article746
Wherethetermofdepositisdeterminedinfavourofthedepositorandthedepositeeisunableforurgent
reasons to continue safekeeping the deposited thing, the latter may demand termination of the deposit
contractpriortotheexpiryoftheagreedperiod,providedthatthedepositorisnotifiedtoacceptreturn
ofthedepositedthingatsuchappropriatetime.
Article747
Thedepositcontractshallterminateuponthedeathofthedepositee,unlessagreedotherwise.
Article748
1. Upon termination of the deposit contract, the depositee shall return the deposited thing and its
revenues to the depositor, who shall indemnify the depositee against any loss arising from the
deposit.
2. The deposited thing shall be returned to its place of safekeeping and the costs of return shall be
bornebythedepositor.
3. Alloftheaboveshallapplyunlessagreedotherwise.
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Article749
1. Where the heir of the depositee sells the deposited thing in good faith and the depositor cannot
recoveritfromthepurchaser,theheirshallbeliableonlytoreturnthesalepricetothedepositor
ortotransfertothedepositoranyrightsoftheheiragainstthepurchaser.
2. Wherethedepositedthingisdonated,theheirshallbeliableonlytorepayitsvalueatthetimeof
thedonation.
3rd:CertainTypesofDeposits
Article750
Wherethedepositedthingisanamountofmoneyoraconsumablethingandthedepositeeisauthorized
touseit,thecontractshallinsteadbedeemedaloan.
Article751
1. Ownersofhotelsandthelikewhoarerequiredtoexercisecareinsafelykeepingthingsbrought
byguests,shallbeliable,evenfortheactsofthosewhofrequentlyvisitsuchenterprises.
2. However,suchownersshallnot,inrespectofmoney,securitiesandvaluablethings,beliablefor
anyindemnityinexcessofQR10,000(tenthousand)unlesssuchownersundertaketokeepsuch
things safely or refuse without good cause to accept such things for safekeeping while they are
awareofthevalueofsuchthings.
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Article752
1. Guests of hotels and the like who have deposited things with the owner for safekeeping shall
notifyhimofanytheft,lossordamageimmediatelyuponbecomingawarethereof.Whereaguest
fails without good cause to notify the owner immediately, he shall forfeit any right to demand
indemnityfromtheowner.
2. Aclaimbyaguestagainsttheownershallprescribeafterthelapseofaperiodofsixmonthsfrom
thedateofhisdeparturefromthehotel.
Article753
Anyprovisiontodischargeorlimittheliabilityoftheownerofahotelandthelikeshallbevoid.
ChapterFour:Receivership
Article754
Custodianshipshallbedefinedasacontractunderwhichtheconcernedpartiesassigntoanotherperson
adisputedmovableasset,realproperty,oracombinationthereofforsafekeepingandsubsequentreturn,
togetherwithitsrevenues,tothepartyforwhomtherightisestablished.
Article755
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Thecourtmayorderappointmentofacustodian:
1. InanyoftheeventssetforthintheprecedingArticle,unlesstheconcernedpartiesmutuallyagree
onacustodian.
2. Where the holder of an interest in a movable asset or real property has good cause to fear
imminentriskoflossordamagetoitifitremainsinthepossessionoftheassignedperson.
Article756
Whether custodianship is consensual or judicial, the custodian shall be appointed by the unanimous
agreementofallconcernedparties.Intheeventofdisagreement,thecourtshallappointsuchcustodian.
Article757
Theagreementorjudgmentappointingthecustodianshalldeterminetherights,powersandobligations
ofthecustodian,otherwisetheprovisionsofdepositandagencyshallapplytotheextentnotinconflict
withtheprovisionsofthefollowingArticles.
Article758
1. The custodian shall maintain the asset or property in his custody and management and shall use
thecareofareasonablepersoninsodoing.
2. The custodian may not delegate any of his powers to any of the concerned parties without the
consentoftheotherpartiesorunderacourtorder.
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Article759
Thecustodianmaynot,otherthanasrequiredformanagement,performanyactwithouttheunanimous
agreementofalltheconcernedpartiesorunderacourtorder.
Article760
1. Thecustodianshallkeepregularaccountingbooksandrecords.
2. Thecustodianshall,atleastonceayear,provideareportonthethingsdeliveredtohimandthe
associated costs reflected in supporting documents and receipts. If appointed by the court, the
custodianshallprovideacopyofhisreporttothecourtclerk'soffice.
Article761
1. Unlesscustodianshipisacceptedascontribution,thecustodianshallreceiveafee.
2. Thecustodianmayrecoveranyexpensesincurredbyhiminmaintainingandmanagingtheasset
entrustedtohim.
Article762
1. Custodianshipshallterminatebyunanimousagreementoftheconcernedpartiesorbycourtorder.
Custodianshipshallalsoterminateupontheexpiryofitsterm,ifany.
2. Insuchevent,thecustodianshallreturntheassetinhiscustodytoanypersonnominatedbythe
concernedpartiesordeterminedbythecourt.
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Part4:AleatoryContract
ChapterOne:GamingandBetting
Article763
1. Anyagreementongamblingorwagershallbevoid.
2. Anypersonwholosesabetorwagermayrecoversuchlosswithinthreeyearsfromthetimeof
suffering such loss, even if agreed otherwise. Such person may prove such loss by supporting
documentation.
Article764
1. NotwithstandingtheprovisionsoftheprecedingArticle,sportingcompetitionsorcompetitionsof
strengthshallbeexcluded.
2. Themoneymaybeprovidedbyasinglecompetitor.Wheresuchmoneyisprovidedbymorethan
onecompetitor,atleastoneotherpersonwhohasnotcontributedtosuchmoneyshallparticipate
in the competition, provided that such other person is as well qualified in that discipline as the
othercompetitors.
3. Such money may be paid by a person other than the competitors, provided that it is not a bet
betweenthemonthewinningcompetitor.
4. Thecompetitorsmaynotagreethatanymoneybepaidbytheloser.
ChapterTwo:LifeAnnuities
Article765
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1. Apersonmayundertaketopayaregularsalaryforlifetoanotherpersonwithoutconsideration.
2. Suchobligationtopaythesalarymaybeeffectiveimmediatelyoruponthedeathoftheobligor.
Article766
TheprovisionsoftheprecedingArticleshallnotapplytosuchsalaryforlifeasprovidedbysecurityand
pensionregulationsagainstsuchinstalmentspaidbythebeneficiaries.
Article767
1. Salarymaybeapplicablethroughoutthelifeoftheobligee,theobligororanyotherperson.
2. Unlessotherwiseagreed,salaryshallbedeemedapplicablethroughoutthelifeoftheobligee.
Article768
Nodispositioncreatingtheobligationtopaysuchsalaryshallbevalidunlessmadeinwriting,subjectto
anyspecialformforvoluntarycontributioncontractsasrequiredbylaw.
Article769
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Itmaybeagreednottoattachsuchsalary.
Article770
1. Thebeneficiaryshallnotbeentitledtosalaryotherthanfortheperiodofthelifeoftheobligee.
2. Wherepaymentismadeinadvance,thebeneficiaryshallbeentitledtothematureinstalment.
ChapterThree:InsuranceContract
Article771
Insuranceshallbedefinedasacontractunderwhichtheinsurerundertakestopaytotheinsuredorthe
beneficiaryasum,afixedsalaryoranyotherfinancialconsiderationupontheoccurrenceofaninsured
incident as set out in the contract, in consideration of a premium or other financial payment to the
insurer.
1st:ConclusionofInsuranceContracts
Article772
Insuranceagainstdamageshallnotbevalidunlessbasedonlawfulinterest.
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Article773
Insurance shall not be valid where the insured risk ceases to exist or if such risk occurs prior to the
elaborationofandmutualagreementtothecontract.
Article774
1. Thecontractshallnotbeconcludedunlesstheinsurersignstheinsurancepolicyandthispolicyis
delivered to the insured. Where the contract is concluded, the request for insurance with the
representationsandwarrantiescontainedthereinshallformpartoftheinsurancecontract.
2. Even prior to the delivery of the insurance policy to the insured, the contract shall be deemed
concludediftheinsurerrespondstotherequestforinsurancebythedeliverytotheinsuredofa
temporary coverage memorandum which includes the substantial provisions of the insurance
contractandtheobligationsofbothpartiestoeachother.
3. However, where the insured provides a receipt confirming payment of part of the insurance
consideration,hemayprovebyallmeansofevidencethatthecontracthasbeenconcluded,even
ifhehasnotreceivedatemporarycoveragememorandum.
Article775
Theconditionsconcerninginvalidityorextinguishmentmaynotbeheldagainsttheinsuredunlessthey
are expressly stated, nor the arbitration clause unless in the form of a special agreement separate from
thegeneralconditions.
Article776
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Noprovisionthattherightoftheinsuredshalllapseduetothelatenotificationoftheinsuredincidentto
therequiredauthoritiesorentities,orthelateprovisionofnecessarydocuments,shallbevalidunlessthe
circumstancesindicatethatthedelayisbasedongoodcauseshown.
Article777
1. Anyconditionintheinsurancepolicythatmayexcludefromthescopeofthepolicysuchactsthat
are in violation of the governing laws and regulations shall be invalid, unless such exclusion is
specific
2. Any arbitrary condition, the breach of which proves to have no effect on the occurrence of the
insuredrisk,shallbeinvalid.
Article778
Otherthanininsurancecontractsnotprovidedforbylaw,theinsurerandtheinsuredmay,ifthetermof
insurance exceeds five years, demand termination of the contract at the end of every five years of the
termofinsurance,bygivingnoticetotheotherpartybyregisteredletteratleastsix(6)monthspriorto
theexpiryofsuchterm.Suchprovisionshallbestatedintheinsurancepolicy.
Article779
1. Other than in insurance contracts not provided for by law, it may be agreed under a condition
expressly contained in the insurance policy to extend the contract automatically, unless the
insured notifies the insurer at least thirty (30) days prior to the expiry date of the contract of his
intentionnottorenewit.
2. Such extension shall be on a yeartoyear basis and any agreement that the insurance may be
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extendedformorethanoneyearshallbevoid.
Article780
1. Anyapplicationdispatchedbytheinsuredtotheinsurerbyregisteredletterinconnectionwiththe
extension or amendment of the contract or its validity after being suspended shall be acceptable
unlesstheinsurerrejectssuchapplicationwithintwenty(20)daysfromthedateofreceivingsuch
application.
2. However,wheretheconsentbytheinsurerdependsonamedicalexaminationortheapplication
relates to the increase in the insurance amount, only the express consent of the insurer shall be
effective.
2nd:ObligationsoftheInsured
Article781
Theinsuredshall:
1. Clearlystateatthetimeofenteringintotheinsurancecontractallsuchinformationknowntohim
whichtheinsurermayrequireforassessingtheriskstobeinsured.Inparticular,factsintheform
ofanswerstoquestionsprintedbytheinsureraresignificant
2. Immediately upon becoming aware thereof, notify the insurer of any circumstances that may
increasetherisks,unlessthelawprovidesotherwiseregardinganytypeofinsurance.
3. Paytheconsiderationofinsuranceonitsmaturitydate.
4. Notifytheinsurerofeveryincidentthatmaymaketheinsurerliable.
Article782
1. The insurance contract may be revoked in favour of the insurer if the insured omits or
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misrepresents any information, provided that such omission or misrepresentation may, in the
opinion of the insurer, adversely affect the subject matter of the risk or decrease the gravity or
contingenciesofitsoccurrence.
2. Whereafactisrevealedpriortotheoccurrenceoftherisk,theinsurermayconsiderthecontract
invalid after ten (10) days from the date of a notice given by the insurer to the insured by
registered letter unless the insured accepts an increase in the premium pro rata to the increased
risk. In the event of revocation of the contract as above, the insurer shall repay the insurance
amounttotheinsuredorrepaysuchpartoftheinsuranceamountwherenocorrespondingriskis
bornebytheinsurer.
Wherethefactisrevealedaftertheoccurrenceoftherisk,theinsurermayreducetheinsuranceamount
proratato the amount of premiums actually paid compared with the amount of premiums that should
havebeenpaidiftheriskhadbeenproperlynotifiedtothe
Article783
1. Other than in insurance contracts not provided for by law, where the insured risks increase, the
insurer may notify the insured in such manner as provided in the preceding Article that the
contract is deemed revoked, unless the insured accepts, within such time as determined by the
insurer,anincreaseintheinsurancepremiumproratatosuchincreaseoftherisk.
2. However, the insurer may not insist on such increase of the risk if the insurer, after becoming
awareofsuchincreaseinanyway,expresseshisintentiontomaintainthecontractinforceor,in
particular,continuestocollectthepremiumsorpaysindemnityupontheoccurrenceoftheinsured
risk.
Article784
The insurance contract shall remain valid without any increase in premiums if the risk occurs or the
possibilityofitsoccurrenceincreases:
1. Duetoanyactintendedtoprotecttheinterestoftheinsureror
2. Duetosuchactsincompliancewithahumanitariandutyorforthepublicinterest.
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Article785
Wheretheinsurancepremiuminvolvesconsiderationsthatmayincreasetheinsuredriskandthensuch
considerations cease to exist or are impaired during the term of the contract, the insured may,
notwithstandinganyagreementtothecontrary,demandterminationofthecontractwithoutclaimingany
indemnity whatsoever, or a reduction in the premium for the next period pro rata to the cessation of
suchconsiderations,inaccordancewiththeapplicationoftheinsurancetariffonthedateofthecontract.
Article786
1. Eachpremiumshallbepayableatthebeginningoftherelevantperiod,unlessagreedotherwise.
Theterm"insuranceperiod"shallmeansuchperiodforwhichthepremiumiscalculated.Forthe
avoidanceofdoubt,theinsuranceperiodshallbeoneyear.
2. Noinsurerthatmayhavedeliveredtheinsurancepolicypriortothepaymentofthefirstpremium
may hold to any condition of the policy that the contract shall not come into force until the
paymentofsuchpremium.
Article787
1. Unless agreed otherwise, all premiums other than the first shall be paid at the domicile of the
insured. However, the premium shall be payable at the domicile of the insurer if, upon being
notifiedtodoso,theinsurerfailstopaysuchpremiumonitsmaturitydate.
2. Anyconditionthatpremiumsaretobepaidattheheadofficeoftheinsurershallbeinvalidifthe
insurerhasusuallycollectedthepremiumsatthedomicileoftheinsured.
Article788
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1. Whereapremiumisnotpaidonitsmaturitydate,theinsurermaynotifytheinsuredbyregistered
lettertopaythepremiumandoftheconsequencesofsuchlatepayment.
2. Upon giving such notice, the running of prescription of the claim on the premium shall be
suspended.
Article789
1. Other than in insurance contracts not provided for by law, where the insured fails to pay a
premiumdespitebeingnotifiedtodoso,theinsurancecontractshallbesuspendedafterthirty(30)
daysfromthedateofsuchnotice.
2. Upontheexpiryofsuchsuspension,theinsurermayapplytothecourttoenforcethecontractor
notify the insured in such manner as set forth in the preceding Article that the contract is
terminated.
3. Suspensionshallceasewheretheinsureromitstoterminatethecontractbythematuritydateofthe
newpremium.
4. Where, prior to such termination, the outstanding premiums together with any other accrued
expensesarepaid,thevalidityofthecontractshallresumeonthedayfollowingsuchpayment.
5. Anyagreementtodischargetheinsurerfromhisobligationtonotifytheinsuredortoshortenthe
timesasprovidedunderclauses1and2ofthisArticleshallbevoid.
3rd:ObligationsoftheInsurer
Article790
Upontheoccurrenceoftheinsuredriskorthematurityofthepremiumunderthecontract,theinsurer
shall pay the insurance amount due within thirty (30) days from the date on which the beneficiary
providestherequiredstatementsanddocumentsinsupportofhisright.
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Article791
Ininsuranceagainstdamage,theinsurershallcommittoindemnifytheinsuredagainst
damagearisingfromtheoccurrenceoftheinsuredrisk,providedthatsuchindemnitydoesnotexceed
theinsuranceamount.
Article792
1. Intheeventofmultipleinsurancecontractsonasinglethingorasingleinterestforanaggregate
amount in excess of the value of the insured thing or interest, each insurer shall pay such part
equaltotheratiooftheinsuredamountbornetotheaggregatevalueofallinsurances,provided
thattheamounttobereceivedbytheinsuredshallnotexceedthevalueofsuchdamage.
2. Whereanyofsuchinsurersbecomesinsolvent,theotherinsurersshallbearhisshareproratato
theinsuranceamountundertakenbyeachinsurer,providedthattheamountpaidbyeachinsurer
shallnotexceedtheamountinsuredbysuchinsurer.
3. Itmaybeagreedtodistributeliabilityamongtheinsurersonanyotherbasis.
Article793
1. Ininsuranceagainstdamage,theinsurermaybylaw,totheextentoftheindemnitypaidbyhim,
subrogate the insured in such claims that the insured may have against the person liable for the
insureddamage,unlesssuchpersonisarelativeorasoninlawoftheinsuredlivingtogetherwith
him,orapersonforwhomtheinsurerisliable.
2. Theinsurershallnotbeliabletotheinsuredforthepaymentoftheinsuranceamountoranypart
thereofifsuchsubrogationisimpossibleduetotheinsured.
Article794
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In any event that the insurer may reinsure with third parties such risks insured with the insurer, the
insureraloneshallremainliabletotheinsuredorthebeneficiary.
4th:TransferandLapseofRightsandObligationsArisingfromInsuranceContract
Article795
1. Rightsandobligationsarisingfromtheinsurancecontractshallbevestedinsuchpersontowhom
title to the insured thing is transferred upon disposition thereof, subject to the consent of the
insurer. In the event of death of the insured, such rights and obligations shall be vested in his
heirs,subjecttotheprovisionsofinheritance.
2. However, the insurer and such heir may each at their sole discretion terminate the contract by
registeredlettertotheotherparty.
3. Theinsurershallexercisehisrighttoterminatethecontractwithinthirty(30)daysfromthedate
onwhichtheheirmaydemandtransferoftheinsurancepolicytohim.
Article796
Wheretitletotheinsuredthingistransferred,thetransfereeshallremainliabletopaythepremiums,but
not any future premiums, as of the date on which the insurer is notified by registered letter of such
transferoftitle.
Article797
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Wherethereismorethanonetransfereeorheir,andtheinsurancecontractisapplicabletoallofthem,
theyshallbejointlyliableforthepaymentofthepremiums.
Article798
1. Where the insured thing is charged by a mortgage, pledge or other security in kind, such right
shallbetransferredtotheindemnitypayabletothedebtorundertheinsurancecontract.
2. Where such rights are registered or notified to the insurer, even by registered letter, the insurer
maynotpaytheindemnitytotheinsuredwithouttheconsentofthecreditors.
3. Where the insured thing is attached or a receiver appointed thereon, the insurer may, if duly
notifiedassetoutintheprecedingclause,payanyamountduebyhimtotheinsured.
Article799
1. Wheretheinsuredbecomesbankruptpriortotheexpiryofthetermofthecontract,theinsurance
shall remain valid in favour of the number of creditors who may become liable directly to the
insurertopayallthepremiumspayablebythedateofthebankruptcyjudgment.
2. Either party may by registered letter terminate the contract within three months from the date of
suchjudgment.Insuchevent,theinsurershallrepaytosuchcreditorsanypartofthepremiumin
considerationofwhichnointerestisborne.
3. Wheretheinsurerbecomesbankrupt,thecontractshallceasetobeeffectivefromthedateofthe
bankruptcyjudgment.Insuchevent,theinsuredmayrecoversuchpartofthepremiumpaidfor
theperiodofsuchsuspension.
Article800
1. Claimsarisingfromtheinsurancecontractshallprescribeafterthelapseofaperiodofthreeyears
fromtherelevantincidentsthatmayhavecreatedsuchclaims.
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2. Notwithstandingtheabove,suchperiodshallnotapply:
1. Intheeventofnotdisclosinginformationrelatingtotheinsuredriskorprovidinginaccurate
informationabouttherisk,otherthanthedayonwhichtheinsurerbecomesawareofsuch
risk.
2. In the event of the occurrence of the insured risk, other than from the date on which the
concernedpartiesbecomeawarethereof.
3. Wherethegroundoftheclaimmadebytheinsuredagainsttheinsurerarisesfromrecourse
by a third party against the insured, other than from the date of such claim by such third
party against the insured, or from the date on which such third party receives indemnity
fromtheinsured,asthecasemaybe.
Article801
1. No agreement may be concluded in violation of the provisions of this Chapter or that amends
theseprovisionsotherthaninthebestinterestoftheinsuredorthebeneficiary.
2. No agreement may be concluded to extend or shorten the applicable period of prescription as
provided under the preceding Article, even where such extension or shortening is in the best
interestoftheinsuredorthebeneficiary.
Article802
TheprovisionsofthisChaptershallapplytoalltypesofinsurance,subjecttotheprovisionsofthelaws
concerningeachtype.
5th:FireInsurance
Article803
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1. The insurer shall be liable for all damage that may arise from fire and for all damage arising
subsequenttothestartthereof.
2. Such liability shall not be limited to direct damage from the fire, but shall also extend to such
damagethatmaybeaninevitableresultofsuchfire,particularlyanydamagetotheinsuredthings
aftertakingstepstorescuethemortopreventthespreadoffire.
3. Theinsurershallbeliableforthelossordisappearanceoftheinsuredthingsduringthefire,unless
suchlossordisappearanceislaterprovedtobeduetotheft.
Article804
The insurer shall be liable to indemnify any damage to an insured thing arising from the fire, even if
suchfireoccursduetoadefectintheinsuredthing.
Article805
1. Theinsurershallbeliableforsuchdamagethatmayarisefromanynondeliberatemistakebythe
insured,andforsuchdamagearisingfromasuddenaccidentorforcemajeure.
2. Unless otherwise agreed, the insurer shall not be liable for any loss or damage caused by the
insuredactingdeliberatelyorfraudulently.
Article806
The insurer shall be liable for damage caused by such persons for whom the insured is responsible,
irrespectiveofthetypeandextentthereof.
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Article807
Where the insurance contract against fire relates to the movable assets of the insured as a whole, such
contractshallextendtosuchthingsownedbythemembersoftheinsured'sfamilyandthosesupported
byhim,iftheylivetogether.
Part5:Suretyship
ChapterOne:ElementsofSuretyship
Article808
A guarantee shall be defined as a contract under which a person undertakes to the creditor to accept
responsibilityfortheperformanceofanobligationbythedebtorwherethedebtorfailstoperformsuch
obligation.
Article809
Aguaranteeshallbemadeinwriting,eveniftheoriginalobligationmaybeestablishedbyevidence.
Article810
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1. Wherethedebtorundertakestoprovideaguarantor,suchguarantormustbesolventandresident
inQatarandthedebtorshallprovideasufficientsecurityinkind.
2. Where, after providing the guarantee, the guarantor becomes insolvent or ceases to have a
domicileinQatar,anotherguarantororasufficientsecurityinkindshallbeprovided.
Article811
Thedebtormaybeguaranteedwithouthisknowledgeorwithouthisconsent.
Article812
1. A future obligation may be guaranteed if the extent of the obligation of the guarantor is
determinedinadvance.Aconditionalobligationmayalsobeguaranteed.
2. Where the term of the guarantee is not determined by the guarantor in a future obligation, the
guarantormayatanytimewithdrawsuchguaranteesolongastheguaranteedobligationhasnot
arisen, provided that the guarantor shall notify the creditor of such withdrawal at an appropriate
time.
Article813
1. Aguaranteeshallnotbevalidunlesstheoriginalobligationisvalid.
2. Where the guarantee is provided due to a lack of capacity of the debtor and his obligation is
annulled,theguarantorshallbeliabletothecreditortopaytheguaranteeddebt.
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Article814
1. Itmaynotbeagreedtoguaranteeanamounthigherthanthedebt,andthetermsofsuchguarantee
maynotbemorerigorousthantheconditionsoftheguaranteeddebt.
2. However,alesseramountatmoregenerousconditionsmaybeguaranteed.
Article815
Theguaranteeshallincludetheancillarycostsoftheguaranteedobligationandtheexpensesofthefirst
claimandanynewexpensesuponnotificationoftheguarantor,unlessagreedotherwise.
Article816
1. Theguaranteeofacommercialdebtshallbedeemedacivilact,eveniftheguarantorisatrader.
2. A guarantee arising from a backing guarantee of commercial papers or from endorsing such
papersshallalwaysbedeemedacommercialact.
ChapterTwo:EffectsofSuretyship
SuretyCreditorRelationship
Article817
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Aguarantorshallbedischargedupondischargeofthedebtor.
Article818
1. Theguarantormayholdtoallsuchaspectstowhichthedebtormayhold.
2. Theguarantormaynotholdtothedebtor'slackofcapacitytoact,providedthattheguarantoris
awarethereofatthetimeofcontracting.
Article819
Where the creditor accepts to collect from a person other than the guarantor another thing in
considerationofthedebt,theguarantorshallbedischarged,evenifsuchthingbecomesdue,unlessthe
creditorreservestherightofrecourseagainsttheguarantor.
Article820
1. Theguarantorshallbedischargedtotheextentofthesecuritiesmissedbythecreditor'smistake.
2. InthisArticle,theterm"securities"shallmeaneverysecurityallocatedtosecurethedebt,evenif
decideduponprovidingtheguarantee,andeverysecurityasprovidedbylaw.
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Article821
1. Aguarantorshallnotbedischargedmerelyduetothefailurebythecreditortotaketherequired
proceduresagainstthedebtoronthematuritydateofthedebt,orduetohisdelayintakingsuch
procedures.
2. The guarantor shall be discharged if, within six months from the date of notification by the
guarantor, the creditor fails to take such procedures, unless the debtor provides an adequate
securitytotheguarantor.
3. Theguarantorshallnotbepreventedfromholdingtohisdischargefromliabilitybyanyextension
grantedbythecreditortothedebtorwithouttheconsentoftheguarantor.
Article822
Where the debtor becomes bankrupt and the creditor fails to claim his debt in the bankruptcy
proceedings,hisrightofrecourseagainsttheguarantorshalllapsetotheextentsuchcreditorcouldhave
recoveredifhehadclaimedhisdebttherein.
Article823
1. Where multiple guarantors under a single contract guarantee the same debt and the same debtor
andtheyarenotjointlyliable,thedebtshallbedividedequallyamongthem,unlesstheamount
securedbyeachofthemisstatedinthecontract.
2. Wheretheguarantorsenterintosuccessivecontracts,eachguarantorshallbeliableforthedebtin
full,unlesstheguarantorreservestherighttodividesuchdebt.
Article824
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1. Thecreditormaynotdemandpaymentofthedebtbytheguarantoralonewithoutfirstdemanding
thatthedebtorpaythisdebt.Thecreditormaynotseekseizureoftheassetsoftheguarantoruntil
the assets of the debtor have been depleted, and only if the guarantor is jointly liable with the
debtor.
2. Ineitherevent,theguarantorshallholdtohisrightthereto.
Article825
1. Wheretheguarantordemandsdepletionoftheassetsofthedebtor,theguarantorshall,atitsown
expense,directthecreditortothoseassetsofthedebtorthatmaysettlethedebtinfull.
2. No assets that the guarantor may indicate shall be effective if disputed or outside the State of
Qatar.
Article826
In such cases where the guarantor leads the creditor to the assets of the debtor, the guarantor shall be
dischargedtotheextentofthedebtappliedtosuchassetsbythecreditorandtotheextentoftheamount
ofthedebtthatthecreditorisunabletorecoverfromsuchassetsduetothefailuretotaketherequired
proceduresinduetime.
Article827
Where there is a security in kind on the assets of the debtor securing the debt and a guarantee is
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providedafterorconcurrentlywithsuchsecurity,theguarantormay,ifnotjointlyliablewiththedebtor,
demandenforcementoftheassetschargedbyanysecurityinkindpriortotheenforcementoftheassets
oftheguarantor.
Article828
1. Thecreditorshalldelivertotheguarantoratthetimeofrepaymentofthedebtsuchdocumentsas
arerequiredtoasserthisrightofrecourse.
2. Wheretheguaranteeddebtissecuredbyapledgedordistrainedmovableasset,thecreditorshall
assignittotheguarantor.
3. Wherethedebtisguaranteedbyarealestatesecurity,thecreditorshalltakesuchproceduresas
requiredtotransfersuchsecuritytotheguarantor.Theguarantorshallbeartheexpensesofsuch
procedures,providedthattheguarantormaydemandthatthedebtorpaysuchexpenses.
Article829
The guarantor may be guaranteed. In such event, the guarantor of the original guarantor may hold
against the creditor to the right of recourse against the guarantor prior to recourse against the original
guarantor,unlesstheguarantoroftheoriginalguarantorisjointlyliablewiththeguarantor.
Article830
Inlegal,judicialorcommercialguarantee,guarantorsshallalwaysbejointlyliable.
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Article831
A joint guarantor may hold to the same pleadings concerning the debt as the nonjoint guarantor may
holdthereto.
Article832
Wheretheguarantorsarejointlyliableortheirguaranteeisundersuccessivecontracts,andanyofsuch
guarantors repays the debt on its maturity date, such guarantor may demand that the other guarantors
repaythedebtproratatotheirrespectivesharesofthedebtandtheshareofsuchguarantorintheshare
ofanyinsolventguarantor.
SuretyDebtorRelationship
Article833
1. Theguarantorshallnotifythedebtorpriortothepaymentofthedebt,failingwhichtheguarantor
shall lose his right of recourse against the debtor if the debtor has settled the debt or has such
reasonsonthematuritydatetobelievethatthedebtisinvalid.
2. Wherethedebtorhasnotobjectedtothepayment,theguarantorshallhavetherightofrecourse
againstthedebtor,evenifthedebtorhaspaidthedebtorhassuchreasonsonthematuritydateto
believethatthedebtisinvalidorextinguished.
Article834
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1. A guarantor that may have settled the debt may demand that the debtor pay such debt if the
guaranteeismadeinfavourofsuchdebtor,whethersuchguaranteeismadewithorwithoutthe
knowledgeofthedebtororwithouthisobjection.
2. Theguarantorshallhavetherighttodemandthatthedebtorpaytheinitialamountofthedebt,the
ancillary costs and the expenses of the first claim, together with any expenses at the time of
notificationofthedebtorbytheguarantoroftheprocedurestakenagainsttheguarantor.
Article835
Where the guarantor pays the debt, he may subrogate the creditor in all rights against the debtor.
However,wheretheguarantorpayspartofthedebtonly,theguarantormaynotdemandthatthedebtor
repaysuchpartuntilthecreditorhasrecoveredtherestofhisrightfromthedebtor.
Article836
Intheeventofmultipledebtorsofasingledebt,theyshallbejointlyliableforsuchdebt.Theguarantor
ofallsuchdebtorsmaydemandthatanyofthemrepaythedebt.
SECTIONTWO:Rightsinrem
BOOKONE:PrincipalRightsinrem
Part1:RightofOwnership
ChapterOne:GeneralProvisions
SubChapterOne:ScopeofRightofOwnership
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Article837
Theexclusiveownerofathingshall,withinsuchlimitsasprovidedbylaw,havetherighttouse,utilize
anddisposeofsuchthing.
Article838
Titletoathingshallincludeitsparts,revenues,productsandancillarycosts,unlessthereisanagreement
tothecontrary.
Article839
1. Titletothelandshallincludethesurfaceofthegroundandaboveorinthegroundtosuchextent
usefultoenjoysuchlandupwardanddownwardasapplicable.
2. Itmaybestipulatedbylaworbyagreementthatthetitletothesurfaceofthegroundisseparate
fromthetitletoanythingaboveorintheground.
Article840
No person may be deprived of his property other than in such events as provided by law and in such
mannerascontainedtherein,inconsiderationofafairindemnity.
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SubchapterTwo:RestrictiveCovenantsonOwnership
Article841
1. The owner shall not abuse his right to such extent that may cause damage to a neighbouring
property.
2. A neighbour may not demand that his neighbour indemnify such shared damage that cannot be
avoided,butsuchneighbourmaydemandthatthedamageberemediedtotheextentinexcessof
the shared limit, taking into account the applicable practice, the nature of the real estate, the
location of each real property in connection with the other real property, and the proposed
purposeofeachproperty.Nolicenseissuedbythecompetentauthoritiesmaypreventtheuseof
suchright.
Article842
1. Wheretheowneroflandwithoutaccesstoahighwayorwithinsufficientaccesstheretoisunable
to gain access to it without incurring high costs or experiencing considerable difficulty, such
owner shall, in consideration of a fair compensation, have the right of way in the neighbouring
lands to such extent as required to use the land in a shared manner, so long as the land is not
accessiblethroughthehighway.Suchrightmaynotbeexercisedotherthaninsuchrealproperty
whereaccessshallcausetheleastdamageandthroughsuchlocationthatmayachievethis.
2. However,ifsuchinaccessibilitytothehighwayarisesfromthedivisionofarealpropertyonthe
basisofalegalactandanadequatepassagecanbemadeinparts,norightofwaymaybeclaimed
otherthaninthoseparts.
Article843
Any owner may force his neighbour to demarcate the boundaries of their adjacent properties. Both
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ownersshallbearthecostsofdemarcationequally.
Article844
1. Theownerofacommonwallmayuseitfortheintendedpurposeandmayresttheceilingonsuch
wallwithoutoverloadingitorpreventingtheotherpartnerfromusingit.
2. Wherethecommonwallisnotfitforitsintendedpurpose,thecostofitsrepairorrefurbishment
shallbebornebythepartnersproratatotheirrespectiveshares.
Article845
1. The owner may raise a common wall where there is a compelling interest in doing so, provided
thatnogrossdamageissustainedbytheotherpartner.Onlytheownererectingthewallshallbear
the costs of raising and maintaining the wall, and he shall ensure its construction is sufficient to
renderitsound.
2. Wherethewallcannotbearanyadditionalheight,anyofthepartnersmayrebuildthewallathis
costandinsuchmannerthatanyadditionalthicknessshallbemadefromthesideofthepartner
who initiated the wall's construction. The rebuilt wall, excluding the raised part, shall remain
common,withoutanyrightofindemnitytotheneighbourwhoraisedthewall.
Article846
Aneighbourwhohasnotcontributedtothecostsoftheraisedwallmaybecomeapartnerintheraised
partifhepaysfifty(50)percentofsuchcostsandfifty(50)percentofthevalueofthelandwheresuch
additionalthickness,ifany,ismade.
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Article847
Unless evidence to the contrary is presented, a wall separating two buildings at the time of its
constructionshallbedeemedcommontoboth.
Article848
1. Aneighbourmaynotforcehisneighbourtobuildawallaroundhiswallortowaivepartofthe
wallorthelandonwhichthewallisbuilt,otherthanwhereprovidedbylaw.
2. However, the owner of a wall may not demolish it voluntarily without good cause if such
demolitionmaycausedamagetoaneighbourwhosepropertyliesbehindsuchwall.
Article849
Noownermayhaveopeningsorholesinhiswalloverlookingthepropertyofhisneighbourotherthan
withinsuchlimitsasprovidedbylaw.
Article850
1. Wherethecontractortestamentincludesaconditionnottodisposeofaproperty,suchcondition
shallnotbevalidunlessbasedonlawfulmotiveandlimitedtoareasonableperiodoftime.
2. Amotivemaybelawfulifsuchpreventionofdisposalisintendedtoprotectalawfulinterestof
thedisposer,orofthepersondisposedto,orofathirdparty.
3. Areasonabletimemaybeforaslongasthelifetimeofthedisposer,orofthepersondisposedto,
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orofathirdparty.
Article851
1. Wheretheconditionpreventingsuchdisposalisvalidandtheconditiondebtordisposesinbreach
of such condition, the condition creditor and the party benefiting from such condition may
demandannulmentofthedisposalinbreach.
2. Adisposalinbreachshallbevalidifauthorizedbytheconditioncreditor.Apartyinwhosefavour
theconditionisissuedmayauthorizesuchdisposalaswell,unlessinconflictwiththemotiveon
whichtheconditionisbased.
SubchapterThree:CommonOwnership
ProvisionsrelatingtoCommonOwnership
Article852
Wherearightinkindinathingisheldbymorethanoneperson,andtheshareofeachofthemisnot
divided,theyshallbepartnersincommonandshallholdequalshares,unlessevidencetothecontraryis
presented.
Article853
1. Anypartnerincommonshallholdhisshareinfullandshallhavetherighttousesuchshareand
disposethereof,providedthatnodamageisincurredbytheotherpartners.
2. Wheresuchdisposalisbasedonadividedpartofthepropertyheldincommon,andatthetimeof
divisionsuchpartisnotwithintheshareofthetransferor,therightofthetransfereeatthetimeof
such disposal shall be transferred to such part allocated to the transferee by division. The
transferee shall be entitled to annul the disposal if such transferee has no knowledge that the
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transferorisnottheownerofthedividedshare.
Article854
Allthepartnersshallhavetherighttomanagethepropertyheldincommon,unlessagreedotherwise.
Article855
1. The majority partners may, on the basis of the value of the shares, conduct any of the usual
management activities and may appoint from the number of partners or from third parties a
manager to conduct such activities. The majority partners may lay down a constitution for
management.
2. Resolutions issued by the majority partners shall apply to all the partners and their successors,
whetherthesuccessorisgeneralorspecial.
Article856
Where the required majority as provided by the preceding Article is not available, the court may, on
demandbyanypartner,takesuchmeasuresasnecessaryandmay,ifrequired,appointsuchpersonto
managethecommonproperty.
Article857
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Where a partner undertakes any of the usual management activities without any objection by the
majority partners at such appropriate time, such partner shall be deemed a representative of all the
partners.
Article858
1. Partners holding at least seventyfive (75) percent of the common property may, in order to
facilitatetheutilizationofsuchproperty,resolveanysubstantialchangesandamendmentstothe
intendedpurposeofsuchpropertywithinthelimitsofusualmanagement,providedthattheother
shareholders are notified of such resolution in writing prior to making such amendments or
changes.Anypartneropposingsuchresolutionmayrefersuchobjectiontothecourtwithinthirty
(30)daysfromthedateofthenotice.
2. Wherethecourtadoptstheresolutionofthemajoritypartners,itcourtmayordersuchmeasuresas
itmaydeemappropriate.Inparticular,itmayordertheopposingpartnerbegivenaguaranteeby
the other partners to ensure payment of any compensation that may become payable to such
opposingpartners.
Article859
A partner shall have the right to implement all necessary measures to safely maintain the common
propertywithouttheconsentoftheotherpartners.
Article860
Thecostsofmaintainingandmanagingthecommonpropertyandallcostsresultingtherefromshallbe
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bornebyallthepartnersproratatotheirrespectiveshares,unlessallthepartnersagreeotherwiseorthe
Article861
Partners holding at least seventyfive (75) percent of the common property may resolve to dispose
thereofonthebasisthatdivisionthereofmayadverselyaffecttheinterestsofthepartners,providedthat
the other partners are notified of such resolution in writing. Any opposing partner may refer his
objectiontothecourtwithinsixty(60)daysfromthedateofthenotice.Thecourtshalleitherauthorize
orrejectthedisposalaccordingtothecircumstances.
Article862
1. Apartnerinanycommonpropertyorcombinationofpropertymayrecover,priortothedivision,
such common share sold by another partner to a third party other than by public auction in
accordance with the procedures as provided by law, within thirty (30) days from the date on
which such partner becomes aware of such sale or is notified thereof. Such recovery shall be
affectedbysuchnoticetoboththesellerandthepurchaser.Therecoveringpartnershallsubstitute
thepurchaserinallhisrightsandobligationstotheextentofthecostsincurredbythepurchaser.
2. Where there is more than one recovering partner, each may recover such common share to the
extentofhisshareinthecommonproperty.
TerminationofCommonOwnershipbyPartition
Article863
1. Anypartnermaydemanddivisionofthecommonpropertyunlessforcedtokeepitincommonby
laworbyagreement.Theretentionofapropertyincommonshallnotbeenforceableforaperiod
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longerthanfiveyears.Wheresuchperioddoesnotexceedfiveyears,theagreementshallapplyto
suchpartnerandhissuccessor.
2. However,thecourtmay,ondemandbyapartner,orderthepropertytobekeptincommonfora
periodasdeterminedbythecourt,evenifsuchperiodexceedstheagreedperiodor,wherethere
is no agreement to keep the property in common, whenever any urgent division is not in the
interestofthepartners.Thecourtmayordersuchdivisionpriortotheexpiryoftheagreedperiod
ongoodcauseshown.
Article864
1. Allofthepartnersmayagreetodividethecommonpropertyinsuchamannerastheydeemfit,
unlessotherwiseprovidedbylaw.
2. Divisionbyagreementmaynotbemadewhereapartnerisincapacitated,unlesssuchpartnerhas
aguardian,orwhereapartnerisabsentandsuchabsenceisconfirmed.
Article865
1. A partner may request annulment of an agreed division if such partner suffers an injustice
exceedingtwenty(20)percentinvalue.Valuationshallbemadeaccordingtothevalueofthings
atthetimeofdivision.
2. The annulment claim shall prescribe after a period of one year has elapsed from the date of
division.
3. The defendant may avoid a judgment of annulment if the claimant completes in cash or in kind
anydeficiencyinhisshare.
Article866
1. Wherethepartnerscontestdivisionofthecommonproperty,anypersonwillingtowithdrawfrom
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suchcommunityshallfileaclaimfordivisionbeforethecourtoffirstinstance.
2. The courtmay in its sole discretion appointone ormore expertstoassess thecommonproperty
andtodividetheshares,ifthepropertyisdivisibleinkind,withoutaconsiderabledecreaseinits
value.
Article867
1. Portionsshallbebasedonthesmallestshare,evenifdivisionispartial.
2. Eachpartnershallbeallocatedhisshareifthepartnerssoagreeorifdivisiononthebasisofthe
smallestshareisnotpossible.
3. Whereapartnercannotbeallocatedhisshareinkind,heshallbecompensatedinlinewithsuch
deficiency.
Article868
1. Uponsettlementofdisputesinconnectionwiththeformationofportionsandanyotherdisputes,
andifsuchportionsareassignedbywayofallocation,thecourtmayruletogiveeachpartnerhis
shareasdividedandassignedtohim.
2. Whereportionsareformedonthebasisofthesmallestshare,thecourtshallmakethedivisionby
ballot and shall confirm such division in its minutes, and shall give each partner his allocated
shares.
Article869
1. Where division in kind is not possible or may cause a considerable decrease in the value of the
propertyproposedtobedivided,thecourtmayorderthesaleofsuchpropertyinaccordancewith
theProceduralLaw.
2. Thecourtmayorderlimitationofthebiddingtothepartnersastheymayunanimouslydemand,
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unlessanyofthemisincapacitatedandwithoutaguardianorisconfirmedabsent.
Article870
1. Thecreditorsofanypartnermay,whetherthedivisionisconsensualorjudicial,objecttodivision
inkindorthesaleofthepropertybyauctioncarriedoutwithouttheirinvolvement.Suchobjection
shallbedispatchedtoeachpartnerbyregisteredletter.Intheeventofobjection,thepartnersshall
beobligedtoinvolvetheobjectingcreditorsatallstagesandproceduresofdivision.
2. In all cases where rights are registered prior to such division or to the filing of the claim, the
creditorsshallbeinvolved.
3. Division shall not be effective against creditors who may object or whose rights are registered
wheresuchcreditorshavenotbeeninvolvedinthestagesandproceduresofdivision.
4. Uponsuchdivision,creditorswhohavenotobjectedandwhoserightsarenotregisteredmaynot
objecttosuchdivisionotherthanintheeventoffraud.
Article871
Apartnertodivisionshallbedeemedastheownerofasharetransferredtosuchpartnerfromthetimeof
holdingthepropertyincommonandnothingoftheothersharehavingbeenacquiredbysuchpartner.
Article872
1. The parties to division shall be liable among them for any liability or entitlement in connection
withashareallocatedtoanypartyforsuchreasonarisingpriortothedivision.
2. Wheretheshareofapartnerisdueinfullorinpart,suchpartnermaydemandcancellationofthe
divisionandthemakingofanewdivisionifthiscausesnodamagetoanyofthepartnerstothe
divisionortothirdparties.Wherecancellationisnotdemandedoranewdivisioncannotbemade,
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each of the partners shall be obliged pro rata to his share to indemnify any person entitled to
compensationonthebasisofthevalueofthedividedpropertyatthetimeofdivision.Whereany
partner becomes insolvent, his share toward such compensation shall be divided among the
personentitledtothecompensationandalltheothersolventpartners.
3. However, compensation shall not apply where there is an express agreement to be discharged
from such compensation in connection with the relevant event. Compensation shall also not be
applicablewhereentitlementisattributabletothemistakeofthepartnertothedivisionitself.
UsufructofDivisionofCommonProperty
Article873
1. Allofthepartnersmayagreetoallocatetoeachofthemadividedpartequaltohisshareofthe
commonpropertyandmayassigntohispartnersinconsiderationthereoftherightofusufructto
theotherparts.Suchagreementmaynotexceedfiveyears.
2. Where no such term is determined or the agreed period expires without any new agreement and
thepartnerscontinuetoutilizethepartsallocatedtothemrespectively,withoutanyobjectionby
any of them, such term shall be one year, to be renewed for a similar term unless any partner
notifiestheotherpartnersatleastthreemonthspriortotheexpiryofthecurrentyearthatheisnot
willingtorenewtheusufructdivisionofcommonproperty.
Article874
Where the usufruct division of common property as provided in the preceding Article lasts for fifteen
(15) years, the division shall be final unless the partners agree otherwise. Where a partner in common
acquires any divided part of the common property for fifteen (15) years, it shall be assumed that his
acquisitionofsuchpartreliesonausufructdivisionofcommonproperty.
Article875
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Allofthepartnersmayagreethattheusufructdivisionofcommonpropertyandtheirutilizationthereof
shallbebasedonrotation,eachforsuchperiodproratatotheirshare.
Article876
1. During the final division, the partners may agree to divide the common property by usufruct
division.Suchdivisionshallremainuntilthefinaldivision.
2. Where usufruct division of common property is not agreed by the partners, the court may on
demand by any partner order such division upon seeking the assistance of an expert, as
applicable.
Article877
Thecapacity,rightsandobligationsofthepartiestousufructdivisionofcommonproperty,andholding
tosuchcapacity,rightsandobligationsagainstthirdparties,shallbegovernedbytheprovisionsofthe
leasecontract,unlesssuchprovisionsareinconflictwiththenatureofsuchdivision.
ObligatoryCommonOwnership
Article878
Wheretheproposedpurposeofthecommonpropertyistoremainheldincommon,thepartnersmaynot
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demanddivisionofsuchproperty,andnopartnermaydisposeofhisshareinamannercontrarytothat
proposedpurpose.
FamilyOwnership
Article879
Members of a single family united by a common business or interest may agree in writing to create a
familyproperty.Suchpropertyshallbeeitheranestateinheritedbytheminwhichtheyagreetomake
thewholeoranypartofsuchestateafamilyproperty,oranyotherpropertyheldbythemwhichthey
agreetomakepartofsuchfamilyproperty.
Article880
1. Itmaybeagreedtocreateafamilypropertyfornolongerthanfifteen(15)years,providedthata
partner may request the court to authorize such partner to dispose of his share in such property
priortotheexpiryoftheagreeddate,providedthatsuchrequestisfoundtobewellreasonedand
justified.
2. Wherethelifespanofsuchpropertyisnotdeterminedforaparticularlengthoftime,eachpartner
maywithdrawfromsuchpropertyaftersixmonthsfromthedateofgivingnoticetohispartnersof
hisintentiontodisposeofhisshare.
Article881
1. Partners may not demand division so long as the family property continues to exist. No partner
may dispose of his share to a third party to the family without the unanimous agreement of the
partners.
2. Where a third party to the family becomes a holder of the share of a partner voluntarily or
compulsorily, such third party shall not be a partner to a family property without such partner's
consentandthatoftheotherpartners.
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Article882
1. Partners holding the majority shares may appoint from their number one or more managers.
Unlessagreedotherwise,amanagermaymakechangestothepurposeofthefamilypropertyto
improvethemethodsofbenefitingfromsuchproperty.
2. The manager may be removed in the same manner as appointed, even if otherwise agreed. The
courtmayalsoremovesuchmanagerondemandbyanypartnerifsuchremovaliswellreasoned
andjustified.
Article883
Notwithstanding the preceding provisions, the rules of common property and the rules of agency on
familypropertyshallapply.
OwnershipofFloorsandApartments
Article884
1. Wheretherearemultipleownersofthedifferentfloorsorapartmentsofabuilding,suchowners
shallbedeemedpartnersintheownershipofthecommonparts,particularly:
2. Theplotonwhichthebuilding,yards,externalwalkways,gardensandparkinglotsarelocated
3. Thefoundations,ceilings,columnsandmainwalls
4. Entrances,corridors,stairsandlifts
5. Placesallocatedforservices,securityandotherutilitiesofthebuilding
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6. Alltypesofpipingandinstallations,otherthanthoseinsidethefloororapartmentfortheuseof
theownerofsuchpartonly.
7. Alloftheaboveshallapplyunlessotherwiseprovidedforinthetitledeeds.
Article885
1. Common parts to be used by some owners only shall be the common property of such owners
only.
2. In particular, partitions between two parts of a floor shall be deemed common property between
theirowners.
Article886
Theshareofanyownerofthecommonpartsshallbeproportionaltoitsdividedpartofthebuilding.The
valueofsuchpartshallbeassessedonthebasisofitsareaandlocationatthetimeofconstructionofthe
building.
Article887
Commonpartsshallbeindivisible.Theownermaynotdisposeofsuchpartsseparatelyfromthedivided
part allocated to him. Any disposal of such divided part shall include the share of such owner in the
commonparts.
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Article888
Every owner may, in order to use the part allocated to him by division, use the common parts as
determined,subjecttotherightsofotherowners.
Article889
1. Novariationtothecommonpartsmaybemadewithouttheconsentofalltheowners,evenatthe
timeofrefurbishmentofthebuilding.
2. However,anyownermay,uponapprovalbytheownersholdingthemajorityshares,makesuch
variation of the common parts at his own cost, provided that such variation may improve the
utilizationofsuchpartswithoutchangingtheirpurposeandwithoutcausingdamagetotheother
owners.
3. Wheretheholdersofthemajoritysharesdonotgrantsuchapproval,theownermaypetitionthe
courtforpermissiontocarryoutthevariation,unlessthelawprovidesotherwise.
Article890
Noownermaydoanythingthatmaythreatenthesafetyofthebuildingorchangeitslayoutorexternal
appearance.
Article891
1. Thecostsofprotection,maintenance,managementandrefurbishmentofthecommonpartsshall
bebornebyalltheownersproratatotheirrespectiveshareinsuchparts.
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2. However,thecostsofcommonservicesthatbelongtosomeownersorareclearlynotusedbythe
owners to the same extent shall be distributed pro rata to the benefit derived by each floor or
apartmentfromsuchservices.
3. Alloftheaboveshallapplyunlessotherwiseagreed.
Article892
Noownermaywaivehisshareofthecommonpartstoavoidcontributiontothecostsasprovidedbythe
precedingArticle.
AssociationofOwners
Article893
1. Whereacommontitletoarealpropertyisdividedintofloorsorapartments,theownersholding
themajoritysharesmayformanassociationamongthem.
2. Theobjectivesoftheassociationmayincludetheconstructionorpurchaseofrealpropertiesand
thedistributionoftheirunitstothemembersoftheassociation.
3. Theassociationshallhaveacorporatepersonality.
Article894
The association may establish a constitution to ensure good use and management of the common
property. All of the owners shall be invited by registered letter to attend a meeting for this purpose.
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Resolutionsshallbepassedwiththeconsentoftheholdersofseventyfive(75)percentoftheshares.
Article895
Wherethereisnosuchconstitutionformanagement,orwherecertainissuesarenotcontainedtherein,
theassociationshallbeentitledtomanagethecommonpartsanditsresolutionsshallbebindingonthe
owners,providedthattheyareinvited,asprovidedbytheprecedingArticle,toattendthemeeting.Such
resolutionsshallbepassedwiththeconsentoftheholdersofseventyfive(75)percentoftheshares.
Article896
The association may, subject to the consent of the holders of majority shares, impose any common
insuranceagainstsuchrisksthatmaythreatentherealpropertyorallthemembers.Theassociationmay
also authorize the performance of any works or installations that may increase the value of the real
property,inwholeorinpart,atthecostofsuchownerswhomayrequiresuchworksorinstallations,in
accordancewithsuchconditions,compensationsandotherobligationsinfavourofthemembers.
Article897
1. Anyloangrantedbytheassociationtoanyofthememberstobeabletoperformhisobligations
shallbesecuredbyalienonsuchpartallocatedtosuchmemberandonhisshareofthecommon
partsoftherealproperty.
2. Theclassofsuchlienshallbecalculatedfromthedateofitsregistration.
Article898
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1. Theassociationshallhaveasecretary,appointedbyamajorityvoteofshareholders,toexecuteits
resolutions.Wheresuchmajorityisnotavailable,thesecretaryshallbeappointedunderanorder
issued by the chairman of the court of first instance on demand by any of the members, upon
notification of the other owners, to hear their statements. The secretary shall, where applicable,
takeanyinitiativesrequiredtomaintain,repairandprotectallthecommonparts,andmaydemand
any concerned party to perform any obligations pertaining thereto, unless otherwise provided in
theconstitutionoftheassociation.
2. Thesecretaryshallrepresenttheassociationbeforethecourts,eveninsuitsagainsttheowners,as
applicable.
Article899
1. Thefeeofthesecretaryshallbedeterminedintheresolutionororderappointinghim.
2. Thesecretarymayberemovedbyaresolutionissuedbytheholdersofmajoritysharesorunder
anorderissuedbythechairmanofthecourtoffirstinstanceuponnotificationofthemembersto
heartheirstatementsonsuchremoval.
Article900
1. Where a building is destroyed by fire or any other cause, the members shall comply with
resolutionspassedbytheholdersofmajoritysharesregardingitsrenovation.
2. Where the association resolves to renovate the building, any indemnity payable due to its
destructionshallbesubjecttotherightsoftheholdersofregistereddebts.
LowerFloorsandUpperFloors
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Article901
1. Theownerofalowerfloorshallperformsuchmaintenanceandrepairsasrequiredtopreventthe
upperfloorsfromcollapsing.
2. Wheretheownerofthelowerfloorrefusestoperformsuchworks,thecourtshallorderthesaleof
thelowerfloororauthorizetheowneroftheupperfloortoperformsuchworksattheexpenseof
theownerofthelowerfloor.
Article902
1. Where the building collapses, the owner of the lower floor shall rebuild that area. Where he
refuses to do so, the court may order the sale of the lower floor, unless the owner of the upper
floorrequeststherebuildingofthelowerfloorathisowncost.
2. Where the owner of the upper floor has built the lower floor, he may prevent the owner of the
lowerfloorfromusingorlivinginsuchflooruntilsuchownerpayswhateveramountisduetothe
owneroftheupperfloor.Theowneroftheupperfloormayalsoobtainpermissionfromthecourt
toleaseoroccupythelowerfloorinordertorecoverhisright.
Article903
Theowneroftheupperfloormaynotincreasetheheightofhisbuildingsothatitcausesdamagetothe
lowerfloor.
ChapterTwo:CausesforAcquisitionofOwnership
SubchapterOne:InitialAcquisitionofOwnership(Appropriation)
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Article904
Apersonwhoholdsamovableassetforthepurposeofacquisitionshallbecometheownerthereof.
Article905
1. A movable asset shall be free for acquisition where its owner abandons it for the purpose of
waivinghisownership.
2. Wildanimalsshallbefreeforacquisitionsolongastheyremainloose.Whereanysuchanimalis
caughtandthensetfree,itshallbecomefreeforacquisitiononceagainifitsownerfailstofollow
itimmediatelyorstopsfollowingit.
3. Tame animals shall become free for acquisition where they had previously been accustomed to
returntotheirusualplacebutsubsequentlylostthishabit.
Article906
Wherenopersonisabletoprovetheoriginofburiedorhiddentreasure,onefifthofsuchtreasureshall
bepaidtothepersonwhofindsitandthebalanceeithertotheownerofthepropertyonorinwhichthe
treasureisfound,ortotheholderoftitletotheproperty,ortothecreatorofthewaqforhisheirs.
Article907
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Therightstohuntonlandandtofishintheocean,andtherightstowaif,toarchaeologicalthingsandto
anymetalsintheground,shallberegulatedbyspeciallaws.
Article908
AnyrealpropertywithoutanownershallbethepropertyoftheState.
SubchapterTwo:AcquisitionofOwnershipamongLivingPersons
Accession
Article909
Anythingonorovertheground,includingbuildingsorotherconstructionsorcultivatedareas,shallbe
deemedconstructedorplantedbytheownerofthelandatitscostandshallbedeemedastheproperty
ofsuchowner,unlessevidencetothecontraryispresented.
Article910
1. The owner ofaplot shall be theownerofany building, plantationorotherconstruction thereon

thathasbeencreatedwithmaterialsownedbyathirdparty,ifsuchmaterialscannotberemoved
withoutgrossdamagetotheplotorsuchconstructions,orcanberemovedbutnoclaimtorecover
suchmaterialshasbeenmadebytheirownerwithinoneyearfromthedateonwhichhebecame
awarethatsuchmaterialshavebeenincorporatedintheplotorsuchconstructions.
2. Wheretheowneroftheplotacquiressuchmaterials,heshallpaytheirvalueatthetimetheyare
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incorporatedintheplot.However,wheresuchmaterialsarerecoveredbytheirowner,theyshall
beremovedatthecostoftheowneroftheplot.Ineitherevent,theownerofthematerialsshallbe
entitledtoindemnity,asapplicable.
Article911
1. Whereapersonuseshisownmaterialstobuildconstructionsonaplotownedbyanotherperson
butwithouthisconsent,theownermaydemandtheirremovalattheexpenseofthebuilderwith
indemnity,asapplicable,withinoneyearfromthedateonwhichsuchownerbecomesawareof
theexistenceofsuchconstructions,orkeepsuchconstructionsagainstpaymentoftheirvalueas
removed,orpayfortheincreasedvalueoftheplotduetosuchconstructions.
2. A person who builds constructions may demand their removal if this causes no damage to the
plot,unlesstheownerthereofelectstoretaintheconstructionsinaccordancewiththeprovisions
oftheprecedingclause.
Article912
1. WhereapersonwhobuildsconstructionsasprovidedforintheprecedingArticlebelievesingood
faiththathehastherighttodoso,theownerofthelandmaynotdemandtheirremovalbutshall
have the option to pay the value of the materials and the labour wages or to pay any increased
valueinthelandduetosuchconstructions.
2. However,ifsuchconstructionsaresolargethattheownerofthelandcannotaffordeitherofthe
paymentsdescribedabove,hemaydemandtransferofthetitletothelandtotheownerofthenew
constructionsinconsiderationofafaircompensation.
Article913
The provision of the preceding Article shall apply if a third party builds constructions with his own
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materialswiththepriorconsentoftheowneroftheplot,unlessagreedotherwise.
Article914
1. Where a partner builds constructions for himself on an apportioned part of the common land
without the consent of the other partners, such partner shall be the absolute owner of such
constructionsiftheyfallinhisshareupondivision.
2. However,wheresuchconstructionsfallintheshareofanotherpartner,suchpartnermaynothave
therighttodemandremovaloftheconstructionsandshall,iftheowneroftheconstructionsdoes
notdemandtheirremoval,paytosuchownereitheramountassetforthinclause1ofArticle912
herein.
Article915
Thecourtmay,attherequestofanypersonwhoundertakestopaytheconsiderationorcompensationin
accordance with the preceding four Articles, decide the appropriate steps to execute its judgment. In
particular, the court may order the payments be made by regular instalments, provided that adequate
securitiesareprovided.
Article916
Wheretheowneroftheland,uponconstructionofabuildingthereon,trespassesonaminorpartofthe
adjacentland,thecourtmayorderacquisitionofthatpartoccupiedbysuchbuildinginconsiderationof
afaircompensation.
Article917
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1. Where a person builds constructions on another person's land using materials owned by a third
party,theownerofsuchmaterialsmaydemandthatthepersonwhoacquiressuchmaterialspay
indemnity.Theownerofsuchmaterialsmaydemandthattheownerofthelandpayindemnitynot
exceeding the balance amount payable by the owner of the land from the value of such
constructions.
2. Wherethepersonwhohasmadesuchconstructionsactsingoodfaith,theownerofthematerials
maydemandthattheconstructionsberemoved,providedthatnodamageiscausedtotheland.
Article918
Where the movable assets of different owners are so connected that they cannot be separated without
causingdamage,andunlessthereisanagreementbetweentheowners,thecourtmaydecidethedispute,
takingintoconsiderationsuchdamagethatmayoccur,theconditionofthepartiestothedispute,andthe
goodorbadfaithofeachofthem.
LegalAcquisition
Article919
As in the case ofother rightsinkind,titleto amovableassetand realpropertyshallbetransferred by

any legal act, provided that the disposing party is the owner of the disposed right, subject to the
provisionsofArticles246and247herein.
Preemption
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Article920
Preemption is a right that authorizes, upon the sale of real property, subrogation of the purchaser in
sucheventsandonsuchtermsasprovidedinthefollowingArticles.
Article921
Thepreemptionrightshallbeavailableto:
1. Theownerofthepropertyiftheattachedrightofusufructissoldinfullorinpart.
2. Apartnerincommonifacommonshareofacommonpropertyissoldtoathirdparty.
3. Theholderoftherightofusufructifthepropertyattachedwithsuchrightissoldinfullorinpart.
4. Theownerofrentedlandifalltherighttosuchrentedlandissoldinfullorinpartandtheholder
ofsuchrightifallorpartofthelandattachedwithsuchrightissold.
5. Aneighbouringownerinanyofthefollowingcases:
6. Wheretherealpropertyisabuildingorlandpreparedforbuilding.
7. Wherethesoldlandhasarightofusufructontheneighbouringlandorviceversa.
8. Where the neighbouring land is adjacent to the sold land from two directions and its value is at
leastfifty(50)percentofthepriceofthesoldland.
Article922
1. Where more than one person uses the right of preemption, this right shall be exercised in the
orderasprovidedbytheprecedingArticle.
2. Wheremorethanonepersonofthesameclassusestherightofpreemption,eachofthemmay
exercisesuchrightproratatohisshare.However,asbetweenneighbours,theholderofahigher
rightofpreemptionthantheothersshallcomefirst.
3. Wherethepurchasermeetssuchconditionstoexercisethepreemptionrightinaccordancewith
the provision of the preceding Article, such purchaser shall have priority to exercise his pre
emptionrightaheadoftheholdersofthepreemptionrightofthesameorlowerclass,butthoseof
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ahigherclassshallhavepriorityaheadofsuchpurchaser.
Article923
1. Therightofpreemptionmaynotbeexercisedinanyofthefollowingcases:
1. Wherethesaleismadeatapublicauctioninaccordancewithsuchproceduresasprovided
bylaw
2. Where the sale is between parents and their children, spouses, relatives up to the fourth
degree,orbetweensonsinlawuptotheseconddegree
3. Wherethesoldpropertyisintendedasaplaceforworshiportobeannexedtoaplaceof
worship.
2. Thetrusteeofwaqforthebeneficiarytheretomaynotusetherightofusufructwithouttheconsent
ofthecreatorofthewaqftomergetheproperty,thesubjectmatterofsuchpreemptionright,in
thewaqf.
Article924
Whereapersonpurchasesapropertyoverwhichthepreemptionrightmaybeexercisedandthensells
thispropertypriortoregisteringtheintentionoftheholderofsucharighttoexerciseit,therightofpre
emptionmaybeexercisedonlybythesecondpurchaserandonlyonthetermsofthepurchase.
Article925
Wherearealpropertyissoldtomanypersonsincommon,thepreemptionrightmaynotbeexercised
other than over the whole property. However, if in the contract a share allocated to each of them is
determined, the person that may exercise such right shall have the right to exercise it over the whole
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property or one or more shares thereof, subject to the applicable rules demanding the exercise of the
rightofpreemption.
Article926
1. Either the seller or the purchaser may give an official notice to the holder of the right of pre
emptionofsuchsale.
2. Suchnoticeshallincludethefollowinginformation,failingwhichitshallbeinvalid:
3. Thename,surnameanddomicileofthesellerandthepurchaser
4. Anadequatedescriptionofthesoldpropertyand
5. Adescriptionoftheprice,officialchargesandthetermsofsale.
Article927
1. Any person who proposes to exercise the right of preemption shall notify the seller and the
purchaser of his intention within fifteen (15) days from the date of becoming aware of the sale,
otherwisehisrightshalllapse.Thetimefordistance,asapplicable,maybeaddedtosuchterm.
2. The notice of intention to exercise the right of preemption shall be formal, otherwise it shall be
invalid.Suchnoticeshallnotbeconsideredasevidenceagainstanythirdpartyunlessregistered.
Article928
The holder of a preemption right may file a preemption claim against the seller and the purchaser
within thirty (30) days from the date of notice of such intention, after such holder lodges the real sale
pricewiththecourttreasuryinwhosejurisdictionthepropertyislocated,otherwisehisrightshalllapse.
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Article929
A final judgment confirming the preemption right shall be deemed a title deed for the holder of such
right,subjecttotherulesconcerningregistration.
Article930
1. Theholderofthepreemptionrightshall,asagainsttheseller,subrogatethepurchaserinallhis
rightsandobligations.
2. However, the holder of the preemption right may not benefit from the time granted to the
purchasertopaythepricewithouttheconsentoftheseller.
3. Where a third party becomes entitled to any sold property upon exercising the right of pre
emption,theholderofthepreemptionrightshallhaverecourseagainsttheselleronly.
Article931
1. Wherethepurchaserconstructsanybuildingsorcultivatesanareaonaplotpriortobeingnotified
by the holder of the preemption right of his intention to exercise such right, the holder thereof
shallbeliable,atthediscretionofthepurchaser,topayeithertheamountsspentbythepurchaser
on the construction or cultivation or the increased value of the real property due to such
constructionorcultivation.
2. Where the purchaser builds such constructions after being notified by the holder of the pre
emption right of his intention to exercise such right, the holder thereof may demand removal of
the constructions. However, where the holder of the preemption right elects to keep such
constructions, he shall pay only the amounts spent by the purchaser on the constructions or the
increasedvalueoftherealpropertyduetosuchconstructions.
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Article932
No official mortgage or right of jurisdiction against the purchaser or any right in kind created by or
againstthepurchasershallapplytotheholderofthepreemptionright,providedthatsuchmortgageor
right is created upon registering the declaration of the intention to exercise the right of preemption.
However, the registered creditors shall maintain their priority rights in connection with the price of the
realpropertyrepaidtothepurchaser.
Article933
Therightofpreemptionshalllapseinanyofthefollowingcases:
1. Wheretheholderofthepreemptionrightwaiveshisright,whetherexpresslyorimpliedly,even
priortothesale.
2. Wheretheholderofthepreemptionrightfailstonotifyhisintentiontoexercisesuchrightwithin
sixmonthsfromthedateofregistrationofthesaleagreement.
3. Inanyothereventsasprovidedbylaw.
Article934
Therightofpreemptionshallnotlapseonthedeathofitsholderbutshallbevestedinhisheirs.
Possession
DefinitionandElementsofPossession
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Article935
Acquisition shall be a material position under which a person controls an exercisable right by
commencingworksusuallyperformedbytheholderoftitle.
Article936
Acquisitionbythirdpartiesofthefundsofthestateorotherpubliccorporatepersons,orofcharitable
waqforanyrightinkindtherein,shallnotbeeffectiveotherthaninsucheventsandonsuchtermsas
providedbylaw.
Article937
Acquisitionshallnotapplytoanyactbyapersonwhichismerelyapermissiblepracticeoronetolerated
byathirdparty.
Article938
Acquisition by brokerage shall be valid whenever the broker acquires in the name of the concerned
partyandwasconnectedtotheholderinawaythatdeemsthebrokerliabletocomplywiththeholder's
instructionsinconnectionwithsuchacquisition.
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Article939
A person without capacity or with deficient capacity may acquire property through legallyrecognized
representation.
Article940
A person acquiring in the name of another person may not claim acquisition to the contrary, as this
personmaynotchangebyhimselfforhimselfthecapacityofsuchacquisition,butsuchcapacityshall
changebytheactofathirdpartyorbytheactoftheacquirerdeemedanobjectiontotherightofthe
personinwhosenameacquisitionismade.Acquisitioninitsnewformshallbeeffectiveonlyfromthe
timeoftheactthatbringsaboutsuchachange.
Article941
Acquisition shall not apply to disingenuous acts. Where an acquisition is based on coercion, is made
secretlyorinvolvesambiguity,itshallnotbeeffectiveagainstthepersoncoerced,orfromwhomsuch
acquisition is concealed, or to whom it is ambiguous, other than from the time such defects are
remedied.
ProofofPossession
Article942
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Whereitisestablishedthatacquisitionhasarisenatanyparticularpriortimeandexistsatpresent,itshall
bedeemedvalidduringtheperiodbetweenbothdates,unlessotherwiseestablished.
Article943
Anyacquirerofarightshallbedeemeditsowner,unlessotherwiseestablished.
Article944
Where several persons dispute the acquisition, it shall be assumed that the person who may first have
materialcontrolshallbetheacquirer,unlessotherwiseestablished.Wheresuchcontrolistransferredby
aformeracquirer,itshallbeassumedthatsuchacquisitionisfortheaccountofsuchtransferor.
GoodandBadFaithofPossessors
Article945
1. Anyacquirershallbedeemedbonafideifnotawareofthetrespassofathirdpartyright,unless
suchignorancearisesfromhisgrossnegligence.
2. Where the acquirer is a corporate person, the intention of its representative shall be the decisive
issue.
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3. Goodfaithshallalwaysbepresumedunlessevidencetothecontraryisprovided,andunlessthe
Article946
1. An acquirer shall become mala fides from the time of becoming aware that his acquisition
constitutestrespassagainstthirdpartyrightsorfromthetimehegivesnotificationofthedefectsin
hisacquisitioninthestatementofclaim.
2. Apersonwhomakesanacquisitionbycoercionmayalsobedeemedmalafides.
Article947
Acquisitionshallmaintainitsinitialpossessorycapacityuntilevidencetothecontraryisprovided.
TransferofPossession
Article948
Acquisitionshallbetransferredtothegeneralsuccessorinitsdescriptions,providedthatiftheoriginal
acquirer acted in bad faith and the successor proves that his acquisition is in good faith, the successor
mayinsistonhisgoodfaith.
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Article949
Acquisition shall be transferred from the acquirer to another person if they agree to it, and such other
personshallbeabletocontroltheright,thesubjectmatterofacquisition,evenwithoutphysicaldelivery
ofthething,thesubjectmatteroftheright.
Article950
Acquisitionmaybetransferredwithoutphysicaldeliveryiftheacquirercontinuestobeinpossessionfor
the account of his successor in acquisition or the successor continues in possession but for his own
account.
Article951
Thedeliveryofdocumentsinconnectionwiththegoodsentrustedtothecarrierorstoredinwarehouses
shall be as effective as the delivery of the goods themselves, provided that if a person receives such
documentsandanotherpersonreceivesthegoods,andbothactingoodfaith,thepersonwhoreceived
thegoodsshallhavepriority.
Article952
Aspecialsuccessormayconsolidateinhisownacquisitiontheacquisitionofhispredecessorwithallthe
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effectsofsuchacquisitionbylaw.
LossofPossession
Article953
Acquisitionshallbelostiftheacquirerwaiveshisactualcontroloftherightorlosesitinanyotherway.
Article954
1. Acquisitionshallnotbelostifactualcontrolisdelayedbyatemporaryprohibition.
2. Where acquisition relates to real property and the acquirer is deprived and then recovers such
acquisition, or files a claim within one year from the loss of such acquisition to recover it, such
acquisitionshallbedeemedasnothavingbeenlostatall.
3. Acquisition shall cease where such prohibition continues for one year, which arises from a new
acquisitionagainstthewilloftheacquirerorwithoutitsknowledge.Suchyearshallbecalculated
fromthetimeofcommencementofsuchacquisitionifinpublic,orfromthetimethefirstacquirer
becomesawarethereofifinsecret.
ProtectionofPossession(ThreeActionsofPossession)
Article955
1. The acquirer of real property shall, within one year from the loss of such acquisition, demand
reacquisition thereof. Where such loss of acquisition is for a secret reason, such year shall
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commencefromthedateofdisclosureofsuchreason.
2. Anypersoninacquisitiononbehalfofanotherpersonmayalsorecoversuchacquisition.
Article956
1. Where a period of less than one year has expired from the time of loss of acquisition, only a
person not relying on a preferred acquisition may recover such acquisition. The expression
"preferred acquisition" shall mean an acquisition based on a legal instrument. If none of the
acquirersholdssuchinstrument,oriftheyhaveequalinstruments,preferredacquisitionshallbe
thefirstinsequence.
2. Where loss of acquisition is by trespass, the acquirer may in all events recover such acquisition
withinoneyearfromsuchtrespass.
Article957
Withinthetimelimitprovidedbylaw,theacquirermayfiletherecoveryclaimagainstthenewacquirer
oftherealproperty,evenifactingingoodfaith.
Article958
Wheretheacquirerofrealpropertycontinuesinsuchacquisitionforoneyearandthensuchacquisition
is trespassed, such acquirer may file a claim to prevent such trespass within one year from its
occurrence.
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Article959
1. Theacquirerofrealpropertymay,ifhisacquisitioncontinuesforonefullyearandhejustifiably
fears that new works may threaten or damage his acquisition, file an action to stop such works
withinoneyearfromtheircommencement,unlesstheyarealreadycompleted.
2. The court may order that such works be stopped or continued. In either case, it may order the
provisionofadequatesecurityforanydamagethatmayoccurupontheexecutionofitsjudgment.
AcquisitionofFruitsbyPossession
Article960
1. Theacquirershallbeentitledtoanyrevenuescollectedandanybenefitobtainedbyhim,provided
thatheactsingoodfaith.
2. Natural or new revenues shall be deemed collected from the date of collection, while civil
revenuesandbenefitsshallbedeemedcollecteddaybyday.
Article961
Anacquirershallbeliablefromthetimeofbecomingmalafidesbothinrespectofthebenefitobtained
andtherevenuescollectedbyhimandofthosehefailstocollect.Theacquirermayrecoveranycosts
incurredbyhiminproducingsuchrevenues.
RecoveryofExpenses
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Article962
1. The owner whose property is returned to him shall pay to the acquirer all necessary expenses
incurredbytheacquirer.
2. TheprovisionsofArticles912and913hereinshallapplytosuchnecessaryexpenses.
3. Where such expenses are unnecessary, the acquirer may not claim such expenses. However, he
may remove any constructions built by him, provided that he shall restore the property to its
originalcondition,unlesstheownerelectstokeepsuchconstructionsonpaymentoftheirvalueas
removed.
Article963
The owner whose property is returned to him shall pay to the new acquirer all such expenses paid by
suchnewacquirertotheformeracquirertosuchextentastheownermaybeliabletopayinaccordance
withtheprecedingArticle.
Article964
The court may, on demand by the owner, determine as it deems fit, payment of such expenses as
provided by the preceding Articles 962 and 963. The court may order payment of such expenses by
regularinstalment,providedthatadequatesecuritiesaremadeavailable.
LiabilityforLoss
Article965
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1. Abona fide acquirer shall not be liable to the person entitled to a thing for any loss or damage
otherthantotheextentofthebenefitobtainedbytheacquirerfromsuchlossordamage.
2. Amalafide acquirer shall be liable for the loss or damage of a thing, even where such loss or
damagearisesfromforcemajeureorsuddenaccident,unlesstheacquirercanprovethatsuchloss
ordamagewouldhaveoccurredevenifsuchthingwasinthepossessionofitsowner.
PossessionServesasEvidenceofOwnership
Article966
1. Where a person holds real property or a movable asset, apparently acting as the owner or holder of
anyrightinkind,andhecontinuesinsuchacquisitionforfifteenyears,suchacquisitionshallbedeemed
evidenceofsuchright.
2.Suchrightshallbeconfirmedbylegaljudgmentiftheacquirerdeniestherightofthirdpartiestosuch
real property or movable asset and claims that he holds the right thereto, even if the reason for such
acquisitionisnotstated.
Article967
The provisions of the preceding Article shall apply to the domestic waqf where such acquisition
continuesforthirtythreeyears.
Article968
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Intheeventofdenial,theclaimofinheritancerightsshallprescribewithinthirtythree(33)years.
Article969
The rules of prescription shall apply to the required period for considering acquisition as evidence to
title, in connection with the calculation of such period and its suspension and cessation, and to the
agreementtoamendit,totheextentthatsuchrulesarenotinconflictwiththenatureoftheacquisition.
PossessionofMovables
Article970
1. Anypersonwhomayforgoodreasonacquireamovableasset,oranyrightinkindonamovable
assetorbearerdeed,shallbecometheownerofsuchmovableassetifheactsingoodfaithatthe
timeofsuchacquisition.
2. Wheretheacquisitionismadeingoodfaithandforgoodreasonandthepropertyisfreeofliens
andchargesinkind,theacquirershallhavefreeholdtenureintheproperty.
Article971
Acquisition in itself shall be deemed evidence of the presence of good reason and good faith, unless
contraryevidenceisprovided.
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Article972
1. Theownerofamovableassetorbearerdeed,ortheholderofarightinkind,may,ifsuchassetis
lost or stolen, recover it from its acquirer for good reason and in good faith within three years
fromthetimeofsuchlossortheft.
2. Where the acquirer has purchased the thing in a market or public auction or from a person who
tradesinsuchthing,hemaydemandpromptrepaymentofthepricepaidbyhimfromanyperson
whorecoverssuchthing.
SubchapterThree:AcquisitionofOwnershipthroughDeath
Inheritance&LiquidationofEstate
Article973
The provisions of the Islamic Shariah and the relevant laws shall apply to the heirs and the
determinationoftheirsharesoftheestateandthetransferoftheassetsoftheestatetosuchheirs.
Article974
1. Where the testator fails to appoint an executor, and any of the concerned parties requests
appointment of a liquidator of the estate, the court shall, as applicable, appoint such person as
unanimously agreed by the heirs. Where such heirs fail to agree on a liquidator, the court shall
appointtheliquidatorafterhearingstatementsfromasmanyoftheheirsaspossible.
2. The provisions of the special laws shall apply if the heirs include an unborn child, a person
withoutcapacityorwithdeficientcapacity,orapersonwhoisabsent.
Article975
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1. The appointed liquidator may reject his assignment or withdraw upon its commencement in
accordancewiththeprovisionsofagency.
2. The court may, with or without a demand by any concerned party, remove the liquidator and
appointanewliquidator,providedthatsuchremovalandsubstitutioniswellreasoned.
Article976
.Wherethetestatorappointsanexecutor,thecourtshallconfirmsuchappointment .1
2. Theprovisionsapplicabletoaliquidatorshallapplytotheexecutor.
Article977
1. The secretary of the court shall enter on a daily basis in a general register such orders issued to
appoint liquidators and to confirm the appointment of executors, including the names of the
testatorsinalphabeticalorder,asapplicable.Themarginoftheregistershallbemarkedwithevery
ordermadefortheremovalandwithdrawalofliquidatorsandexecutors.
2. Theentryofanordertoappointaliquidatorshallbeeffectiveagainstthirdpartiesdealingwiththe
heirsinconnectionwiththeassetsoftheestateasprovidedforinArticle1012herein.
Article978
1. The liquidator shall, immediately upon his appointment, receive and liquidate the assets of the
estate under control by the court. The liquidator may demand a fair fee from the court upon
completionofhisassignment.
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2. Theliquidationcostsshallbeappliedtotheestateandshalltakeprecedenceoverlegalcosts.
Article979
The court may, as applicable, take all such urgent precautions to preserve the estate, with or without
demandbyanyoftheconcernedparties.Inparticular,thecourtmayordersealsbeaffixedandmoney,
securitiesandvaluablethingsbedeposited.
Article980
Theliquidatorshallimmediatelyusethemoneyoftheestatetopaythecostsofthefuneralandburialof
the dead testator according to such person's social position. The liquidator shall also obtain an order
fromthecourtofsummaryaffairstopaysuchreasonableamountoftheestatetothoseheirssupported
by the testator until the completion of the liquidation process, provided that such amount shall be
deductedfromtheshareoftheconcernedheir.
TakingInventoryoftheEstate
Article981
1. Asofthetimeofentryoftheorderappointingaliquidator,thecreditorsmaynottakeanyaction
againsttheestateandmaynotcontinuewithanyactiontaken,otherthanagainsttheliquidator.
2. Ondemandbyanyoftheconcernedparties,anydistributionopenedagainstthetestatorbutnot
yetfinallyclosedshallbestoppeduntilallthedebtsoftheestatehavebeensettled.
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Article982
An heir may not, prior to receipt of the certificate of succession as provided by Article 999 herein,
disposeoftheassetsoftheestateandmaynotcollectthedebtsduetotheestateorsetoffhisowndebt
withthedebtoftheestate.
Article983
1. Duringtheliquidationprocess,theliquidatorshalltakesuchprecautionsasrequiredfortheassets
of the estate and for management acts. The liquidator shall also represent the estate in legal
proceedingsandcollectanyoutstandingdebtsoftheestate.
2. Unless paid for his work, the liquidator shall be responsible as a paid agent. The court may that
demandsuchliquidatoraccountforhismanagementonspecificdates.
Article984
1. The liquidator shall notify the creditors and debtors of the estate, inviting them to provide a
statementoftheirrightsandobligations,withintwomonthsfromthedateoffinalpublicationof
suchnotice.
2. Such notice shall be posted on the bulletin board of the court in whose jurisdiction the last
domicileofthetestatorwasandofthecourtinwhosejurisdictionareatheassetsoftheestateare
located,eitherinwholeorinpart,andshallalsobepublishedinadailynewspaper.
Article985
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The liquidator shall, within three months of his appointment, file with the clerk's office of the court a
statementoftherightsandliabilitiesoftheestate,includingavaluationthereof.Theliquidatorshall,by
registeredletter,alsonotifyeveryconcernedpartyofsuchfilingwithinsuchperiod.Theliquidatormay
requestthecourttoextendsuchperiodifcircumstanceswarrantsuchasextension.
Article986
1. The liquidator may appoint an expert or a person with special knowledge to assist him in the
inventoryandtheassessmentofthevalueoftheestate.
2. Theliquidatorshallconfirmsuchrightsanddebtsasrevealedbythepapersofthetestatorandthe
public registers and by any other means whatsoever. The heirs shall notify the liquidator of any
informationabouttherightsanddebtsoftheestate.
Article987
Any person, including an heir, who fraudulently seizes part of the estate, shall be punished by the
penaltyforbreachoftrust.
Article988
Any dispute on the validity of the inventory, particularly in connection with the omission of any real
propertyorrightsorobligationsoftheestate,orthefailuretoconfirmtheforegoing,shallbereferredto
thecourtondemandbyanyconcernedpartywithinthirty(30)daysofthedateofthenoticeoffilingthe
inventorylistwiththecourt.
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DischargeoftheDebtsoftheEstate
Article989
Upon expiry of the prescribed time period for referring inventoryrelated disputes, the liquidator shall,
subjecttotheconsentofthecourt,settletheundisputeddebtsoftheestate.Disputeddebtsshallbepaid
uponfinalresolutionofthedispute.
Article990
Intheeventofactualorprobableinsolvencyoftheestate,theliquidatorshallstopthesettlementofany
debt,eventhosenotdisputed,untilthefinalresolutionofallthedisputesinconnectionwiththedebtsof
theestate.
Article991
1. Theliquidatorshallsettlethedebtsoftheestateagainsttherightscollected,thecashavailable,and
the price of the movable assets and securities of the estate. If such amounts are not sufficient to
settlethedebts,therealpropertyoftheestateshallbesoldtosettlesuchdebts.
2. Themovableassetsandrealpropertyoftheestateshallbesoldatapublicauctionaccordingto
such procedures and on such dates as determined for compulsory sales in the Pleadings Law,
unlessalltheheirsagreetomakethesaleinanyothermannerorbypractice.Wheretheestateis
insolvent, the unanimous consent of the creditors shall also be required. In all events, the heirs
shallhavetherighttoparticipateintheauction.
Article992
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At the request of all the heirs, the court may rule that a deferred debt is immediately payable and
determinetheamountpayabletothecreditor.
Article993
1. Where the heirs fail unanimously to request the court to consider a deferred debt immediately
payable,thecourtshalldistributethedeferreddebtsandtheassetsoftheestatesothateachheir
shall be allocated part of the total debts and total assets of the estate in accordance with his net
shareoftheestate.
2. The court shall arrange for an adequate security on a real property or movable asset for each
creditor of the estate, provided that any creditor holding a special security shall keep the same
security.Wherethisisnotpossible,evenbyacollateralsecurityprovidedbytheheirsfromtheir
ownmoneyorbyagreementonanothersettlement,thecourtshallarrangeforsecurityonallthe
assetsoftheestate.
3. In all cases, where the security relates to real property not previously registered, such security
shallberegisteredinaccordancewiththeapplicableprovisionsforregisteringtherightoflien.
Article994
Upon distribution of the deferred debts, each heir may pay such amount allocated to him prior to its
maturitydate.
Article995
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Thecreditorsoftheestatewhohavenotcollectedtheirrightsfornotappearingontheinventorylist,and
whohavenosecuritiesontheassetsoftheestate,maynotclaimtheirrightsfromanypersonwhomay
ingoodfaithacquirearightinkindtosuchassets,buttheymayclaimsuchrightsfromtheheirsdueto
theirenrichment.
Article996
Uponsettlementofthedebtsoftheestate,theliquidatorshallexecutethetestamentsandothercharges.
DeliveryandDivisionoftheEstateProperty
Article997
Uponperformanceoftheobligationsoftheestate,thebalanceoftheassetsshallbedividedamongthe
heirsproratatotheirrespectivesharebyShariah.
Article998
Upon the expiry of the prescribed time period for referring inventoryrelated disputes, the heirs may
demand to receive on a temporary basis the money and things not required for the liquidation of the
estate,whetherinfullorinpartandwithorwithoutaguarantee.
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Article999
The court shall give every heir a certificate of succession, or its equivalent, confirming his right to the
estateandhissharethereofandshalldeterminesuchassetsoftheestateallocatedforsuchheir.
Article1000
Every heir may demand that the liquidator deliver to him his part of the estate as apportioned, unless
suchheirisobligedtocontinueincommonpropertybyagreementorbylaw.
Article1001
1. Wheretherequestfordivisionisacceptable,theliquidatorshallmakethedivisioninanequitable
manner,providedthatsuchdivisionshallnotbefinaluntilunanimouslyapprovedbytheheirs.
2. Where the heirs fail to agree thereon, the liquidator may file at the cost of the estate a claim for
division in accordance with the provisions of the law. The costs of the claim shall be deducted
fromthesharesoftheheirs.
Article1002
Theprovisionsofdivisionshallapplytothedivisionoftheestate,particularlythoseprovisionsrelatedto
thesecurityagainstinterference,entitlement,injusticeandlienofpartnerindivision.
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Article1003
Wheretheheirsdisagreeonthedivisionoffamilypapersorthingsholdingsentimentalvalueforthem
towardtheirtestator,thecourtshallordereitherthesaleorgiftofsuchthingstoanyoftheheirs,withor
without deduction of their value from the share of such heir in the estate, subject to the applicable
practiceandthepersonalcircumstancesoftheheirs.
Article1004
1. Where the assets of the estate include a farming, industrial or commercial project that constitutes a
selfsustainedeconomicunit,andtheheirsfailtoagreeunanimouslytokeepsuchprojectheldbythem
incommon,itmayinthecircumstancesbeallocatedinfulltoanyoftheheirswhomaydemandsuch
allocation,providedthatsuchheiristhebestsuitedtoundertakesuchproject.
2.Thepriceofsuchprojectshallbeassessedaccordingtoitstruevalueandshallbedeductedfromthe
share of such heir in the estate. If the ability of the heirs to undertake such project is equal, it shall be
allocatedtothehighestbidder,providedthatitspriceshallnotbelessthanthepriceofasimilarproject.
Article1005
Where,atthetimeofdivision,adebtoftheestateisallocatedtoanyoftheheirs,theotherheirsshallnot
securethedebtorintheeventofhisinsolvencyuponthedivision,unlessotherwiseagreed.
Article1006
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Atestamentshallbevalidiftheassetsoftheestatearedividedamongtheheirsofthetestator,sothat
each heir or number of heirs is allocated his or their share. Where the value of such share allocated to
anyheirexceedshisentitlement,suchexcessshallbedeemedatestament.
Article1007
Division added to after death may always be cancelled. Such division shall become binding upon the
deathofthetestator.
Article1008
Where,atthetimeofhisdeath,thedivisionisnotinclusiveofalltheassetsofthetestator,theundivided
assetsshallbeheldincommonbytheheirsinaccordancewiththerulesofinheritance.
Article1009
Whereanyofthecontingentheirswhoparticipatedinthedivisiondiespriortothedeathofthetestator,
thedividedshareofsuchdeceasedheirshallbeheldincommonbytheremainingheirsinaccordance
withtherulesofinheritance.
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Article1010
The provisions of division in general, excluding the provisions of injustice, shall apply to the division
addedtoafterdeath.
Article1011
Wheredivisionisexclusiveorinclusiveofthedebtsoftheestatebutthecreditorshavenotagreedon
theirdivision,eachheirmay,uponnonsettlementofthedebtsinagreementwiththecreditors,demand
divisionoftheestateinaccordancewiththeprovisionsofArticle993herein,providedthatthedivision
asstatedinthetestamentandtherelevantconsiderationsaretakenfullyintoaccount.
ProvisionsApplicabletoEstatesthathavenotbeenliquidated
Article1012
WheretheestatehasnotbeenliquidatedinaccordancewiththeprovisionsoftheprecedingArticles,the
ordinary creditors ofthe estatemay enforcetheir rights asgranted to them underthetestament against
the real property of the estate which is disposed thereof or against which rights in kind are created in
favourofthirdparties,providedthatsuchdebtsareenteredinaccordancewiththeprovisionsofthelaw.
Wills
Article1013
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TheprovisionsoftheIslamicShariahandtherelevantlawsshallapplytothetestament.
Article1014
1. Everylegalactbyapersononhisdeathbed,intendedtobeanactofgift,shallbeanactadded
after his death, and the provisions of testament shall apply to such act irrespective of the
descriptionthereof.
2. Theheirsshallprovebyallevidentiarymeansthatsuchlegalactwasmadebytheirtestatoronhis
deathbed.
3. Wheretheheirsprovethatsuchactbytheirtestatorwasmadeonhisdeathbed,itshallbedeemed
madebywayofvoluntarycontributionunlessthebeneficiarytosuchactcanprovideevidenceto
thecontrary.
4. Alloftheaboveshallapplyunlesstherearespecialprovisionstothecontrary.
Part2:RightsAncillarytotheRightofOwnership
ChapterOne:Usufruct,RightofUseandRightofOccupation
Usufruct
Article1015
1. The right of usufruct may be acquired by a legal disposition or preemption, and its acquisition
shallbedeemedevidenceofitsownershipaccordingtoArticle966herein.
2. Usufructmaybebequeathedbywilltosuccessivepersonsiftheyarealiveatthemomentofthe
bequest,anditmayalsobebequeathedtoafetusinutero.
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Article1016
Therightsandobligationsofausufructuaryshallbegovernedbytheconditionsimposedbythedeedby
whichtheusufructiscreatedandbytheprovisionscontainedinthefollowingArticles.
Article1017
The fruits of the property subject to the usufruct shall revert to the usufructuary in proportion to the
periodofhisusufruct,subjecttotheprovisionsofparagraph2ofArticle1023herein.
Article1018
1.Theusufructuarymustusethepropertyinthestateinwhichhereceiveditandaccordingtotheobject
forwhichitwasintended,andhemustobservetherulesofgoodmanagement.
2.Thebareownermayobjecttoanyuseofthepropertythatisunlawfulorunsuitabletothenatureof
theproperty.
3. Where the owner proves that his rights are endangered, he may demand security and, if the
usufructuaryfailstoprovidesuchsecurityorif,inspiteoftheobjectionsoftheowner,hecontinuesto
usethepropertyunlawfullyorinamannerunsuitabletoitsnature,thejudgemayorderconfiscationof
the property and its entrustment to a third party for its management. The judge may also, in
circumstances of a serious nature, declare the usufruct extinguished, without prejudice to the rights of
thirdparties.
Article1019
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1. The usufructuary shall, during the continuance of his enjoyment, be liable for all normal charges in
respectofthepropertysubjecttotheusufructandallexpensesforrepairsincidentaltoitsmaintenance.
2.Theownershallbeobligedtopayabnormalexpensesandthecostofheavyrepairswhichdonotarise
fromanyfaultonthepartoftheusufructuary,buttheusufructuaryshallbeboundtopaytotheowner
interest on the amount expended by him in this respect. Where the usufructuary has himself advanced
the cost, he shall be entitled to claim repayment of the capital amount paid by him when the usufruct
terminates.
Article1020
The usufructuary must preserve the thing with the diligence usually expected of a reasonable man. He
shall be responsible for loss of the property even if, through no fault of his own, he has delayed
returningthepropertytoitsowneraftertheterminationoftheusufruct.
Article1021
Theusufructuarymustgivenoticetotheownerwithoutdelayif:
1. Thepropertyperishes,deterioratesorrequiresmajorrepairs,thecostofwhichshallbeborneby
theowner,
2. Itisnecessarytotakeprotectivemeasuresagainstanunforeseendanger.
3. Athirdpartyclaimstohavearightovertheproperty.
Article1022
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1. Wherethepropertysubjecttotheusufructisamovable,aninventorymustbemadethereofand
the usufructuary must give security in respect thereof. Where no security is given, the movable
shall be sold and the proceeds invested in public funds and the income thereof paid to the
usufructuary.
2. Ausufructuarywhohasgivensecuritymayusesuchthingsasareconsumable,providedthathe
replaces them when his usufruct comes to an end. The usufructuary is entitled to the natural
increase of flocks and herds after he has replaced those animals from such flocks and herds as
haveperishedaccidentallyorduetoforcemajeure.
Article1023
1. The usufruct shall terminate at the end of the period for which it was fixed. Where no period is
fixed,itshallbedeemedtohavebeencreatedforthelifetimeoftheusufructuary.Itshallceasein
anycaseuponthedeathoftheusufructuary,evenwherethisoccursbeforetheendofthefixed
period.
2. Wheretherearestandingcropsonthelandsubjecttotheusufructattheendoftheperiodfixed
fortheusufructoruponthedeathoftheusufructuary,suchlandshallbeleftinthepossessionof
theusufructuaryorhisheirsuntilthecropsareripeforharvesting,providedthattheusufructuary
orhisheirsshallpayrentforthatperiod.
Article1024
Usufruct shall be extinguished by the loss of the property but shall be transmitted to any property
obtainedinlieuofthepropertydestroyed.
Article1025
1. In case of denial, any action for a usufruct shall be extinguished if such usufruct has not been
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usedforaperiodoffifteenyears.
2. The use of the usufruct by one of the coowners shall, where such usufruct is exercisable by
several coowners, interrupt the prescription period for the other coowners. Similarly, the
suspension of the prescription period in favour of one of the coowners shall suspend it for the
others.
TheRightofUseandRightofOccupation
Article1026
Subjecttotheconditionslaiddowninthedeedbywhichtherightiscreated,theextentoftherightsof
use and of occupation shall be determined by the personal requirements of the beneficiary and of his
family.
Article1027
Therightofuseandtherightofoccupationmayonlybetransferredtothirdpartiesbyvirtueofaformal
provisiontothateffectorforsoundandcompellingreasons.
Article1028
Subjecttotheprecedingprovisions,therulesasregardstherightofusufructshallapplytotherightof
useandtherightofoccupation,iftheyarenotincompatiblewiththenatureofthesetworights.
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ChapterTwo:TheRightofHekr
Article1029
Thehikrshallbedefinedasacontractunderwhichthetenantholdsarightinkindinawaqflandthat
authorizes him to utilize the land by construction of a building, plantation or other installation in
considerationofaparticularfee.
Article1030
Suchcontractmaynotbeconcludedotherthanoutofnecessityorinterest,subjecttotheconsentofthe
competentcourtinwhosejurisdictionallorsubstantiallyallofthelandislocated.Thiscontractshallbe
issuedbythechairmanofthecourtorbynominatedjudgesorattestationofficersandshallberegistered
inaccordancewiththeprovisionsofrealestateregistration.
Article1031
1. Norightofhikrmaybearrangedotherthanonawaqfland,subjecttotheprovisionsofclause3
ofArticle1039herein.
2. TheprovisionsofthefollowingArticles,includingthedeterminationofamaximumperiodforthe
hikr,shallapplytoalltheotherprovisions,eventhoseexistingontheeffectivedateofthepresent
Law.
Article1032
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Ahikrcontract may not be longer than sixty (60) years. Where a longer period is agreed or no such
periodisdetermined,thetermofthehikrcontractshallbesixty(60)years.
Article1033
1. Nohikrcontractmaybeconcludedforanamountlessthantherentofasimilarland.
2. Such rent may be increased or decreased whenever the variation of the rent of a similar land
exceedsonefifth,upwardordownward,providedthatthelastassessmentwasmadeeightyears
earlier.
Article1034
1. Theassessmentofanincreaseordecreaseintherentofasimilarlandshalldependontherentof
the land at the time of the assessment, taking into account the specifications of the land and the
demandonitbypeople,irrespectiveofwhetherthereisabuildingorplantationonorinsuchland
andwithouttakingintoconsiderationthedevelopmentordamagebythetenanttothelanditself
or any modification to its specifications, and without affecting the right of decision held by the
tenantconcerningtheland.
2. Goodassessmentshallapplyonlyfromthedateonwhichthepartiesagreetosuchassessment,or
otherwisefromthedateoffilingtheclaim.
Article1035
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Thetenantofsuchlandmaydisposeofhisright,andsuchrightmaybeinherited.
Article1036
The tenant shall be the absolute owner of any building, plantation or other installation in such rented
landandmaydisposeofitindividuallyorjointlywiththehikrright.
Article1037
1. Thetenantshallpaytheagreedrenttotheownerofthehikrland.
2. Rentshallbepayablebytheendofeveryyear,unlessthehikrcontractprovidesotherwise.
Article1038
The tenant shall do all things necessary to make the land usable, subject to the agreed conditions, the
natureoftheland,theproposedpurposethereofandtheapplicablepractice.
Article1039
1. Thehikrcontractshallterminateupontheexpiryofitsterm.
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2. However,suchcontractshallterminatepriortotheexpiryofitstermifthetenantdiesbeforeany
constructionorplantationoccurs,unlessallofhisheirsdemandcontinuationofthehikrcontract.
3. Suchcontractshallalsoterminatepriortotheexpiryofitstermifthesubjectlandceasestobea
waqf land, unless such cessation is due to the cancellation or shortening of the period of such
waqfbyitscreator.Insuchcase,thehikrcontractshallcontinueuntiltheexpiryofitsterm.
Article1040
In the event of nonpayment of the rent for three consecutive years, the owner of the waqf land may
demandterminationofthecontract.
Article1041
1. Upontheexpiryorterminationofthehikrcontract,theownermaydemandeithertoremovethe
constructions or plantation or to keep them against payment of the value thereof as removed or
kept,unlessagreedotherwise.
2. Thecourtmaygrantanextensiontotheownerforpaymentifthereareexceptionalcircumstances
justifyingsuchextension.Insuchcase,theownershallissueaguaranteetosecurethepaymentof
theamountdue.
Article1042
In the event of denial, the claim of the hikrright shall prescribe after a period of fifteen years if such
rightisnotused.Suchtermshallbethirtythreeyearsifthehikrrightrelatestoawaqfproperty.
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ChapterThree:Easements
Article1043
Easementshallbedefinedasarightthatlimitstheuseofarealpropertyforthebenefitofanotherreal
propertyheldbyanotherperson.
Article1044
1. Therightofeasementshallbeacquiredbyalegalact,bypreemptionorbyinheritance.
2. Acquisition shall not be considered as evidence in accordance with the provision of Article 966
hereinotherthanintheeventofapparenteasements,includingtherightofway.
Article1045
1. Apparenteasementsmaybearrangedbyallocationbytheoriginalowner.
2. Where it is established by evidence that the owner of two separate real properties has made an
apparentdemarcationbetweenthem,therebycreatingarelationshipofsubordinationbetweenthe
properties that may indicate the presence of easement if the properties were owned by two
differentpersons,andthenthepropertiesbecomeheldbytwodifferentownerswithoutachange
intheircondition,therightofeasementshallapplytobothproperties,unlessthereisanexpress
provisiontothecontrary.
Article1046
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1. Wherethereareparticularlimitationsagainsttherightoftheownerofrealpropertytoconstructa
building thereon, such as an injunction preventing him from erecting a building exceeding a
particularheight,orfromconstructingitonthewholeareaoftheproperty,suchlimitationsshall
actaseasementsonsuchpropertyinfavouroftherealpropertiesuponwhichsuchlimitationsare
imposed,unlessagreedotherwise.
2. Any breach of such limitations may be demanded to be remedied in kind. However, only
indemnitymaybeorderedifthecourtbelievesthatsuchanorderisreasonable.
Article1047
Rights of easement shall be governed by the instrument creating them, the applicable practice and the
provisionsofthefollowingArticles.
Article1048
1. Theownerofthedominantpropertymayperformsuchworksthereonasnecessarytobeableto
use and preserve his right of easement, and he shall use such right in a manner that causes the
leastpossibledamage.
2. Themergingneedsofthedominantpropertymaynotincreasetheburdenofeasement.
Article1049
The owner of the servient property shall not be obliged to carry out any work for the benefit of the
dominantproperty,unlesssuchadditionalworkisrequiredfortheproperuseoftheeasement.
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Article1050
1. The costs of the works required to use and preserve the right of easement shall be borne by the
ownerofthedominantproperty,unlessprovidedotherwise.
2. Wheretheowneroftheservientpropertyisobligedtocarryoutsuchworksathisownexpense,
hemayalwaysavoidsuchobligationbyassigningtheservientproperty,eitherinwholeorinpart,
totheownerofthedominantproperty.
3. Wheresuchworksarealsousefultotheowneroftheservientproperty,thecostsofmaintenance
shallbedividedbetweenthepartiesproratatothebenefitobtainedbyeitherparty.
Article1051
1. Theowneroftheservientpropertymaynotdoanythingthatmayimpairorburdentheuseofthe
rightofeasement.
2. Wherethelocationinitiallyidentifiedfortheuseoftherightofeasementincreasestheburdenof
easement,ortheeasementpreventsthemakingofanyimprovementstotheservientproperty,the
owneroftheservientpropertymaydemandthattheeasementbemovedtoanotherlocationonthe
propertyortoanotherpropertyheldbyhimorbyathirdparty,providedthatsuchpartiesagree
thereto.Provided,however,thattheuseoftheeasementinitsnewlocationshallbeaseasyforthe
ownerofthedominantpropertyasitwasatitsformerlocation.
Article1052
1. Where the dominant property is divided, the right of easement shall remain valid for each part
thereof, provided that such division shall not increase the burden of easement on the servient
property.
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2. However, where the right of easement in fact serves a single part of the dominant property, the
owneroftheservientpropertymaydemandterminationofsuchrightrelatingtotheotherparts.
Article1053
1. Where the servient property is divided, the right of easement shall remain valid for each part
thereof.
2. However,wheretherightofeasementisinfactnotexercisableonsomepartsonlyoftheservient
property,orcannotbeexercisedtherewith,theownerofthatotherpartmaydemandtermination
ofthisrightinconnectionwiththepartheldbysuchowner.
Article1054
Therightofeasementshallterminateupontheexpiryoftheapplicableterm,thetotallossoftheservient
propertyorthedominantproperty,orwhenbothpropertiesareheldbyasingleperson.However,ifthe
unityoftitletobothpropertiesterminatesandthepropertiesarerehabilitatedtotheiroriginalcondition,
thevalidityoftherightofeasementshallresume.
Article1055
1. Intheeventofdenial,theclaimoftherightofeasementshallprescribeafterfifteenyearsifthat
rightisnotexercised.Suchtermshallbethirtythreeyearsiftherightrelatestoawaqfproperty.
Upon the expiry of this thirtythree year period, the method of exercising the right of easement
maybeamended.
2. Wheretherightofeasementisgrantedtoseveralpartnersincommon,theuseofsuchrightbyany
ofthemshallsuspendtheperiodofprescriptioninfavouroftheotherpartners.Thesuspensionof
such period in favour of one partner shall also, by default, suspend it in favour of the other
partners.
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Article1056
The right of easement shall terminate if circumstances or conditions have changed so that the right
cannotbeused.Thevalidityoftherightshallresumewhensuchcircumstancesorconditionspermitthe
exerciseoftheright,unlessitisterminatedowingtoitscontinuednonuse.
Article1057
Theowneroftheservientpropertymayreleasesucheasementinwholeorinpartifsuchrightisofno
benefittothedominantpropertyorisoflimitedbenefitinconsistentwiththecorrespondingburdenson
theservientproperty.
BOOKTWO:AncillaryRights(RealSecurities
Part1:Mortgage
ChapterOne:ConstitutionofMortgages
Article1058
An official mortgage shall be defined as a contract in which the creditor acquires a right over real
property for the settlement of a debt owed to him by the debtor. This right entitles the creditor to take
precedenceoverordinarycreditorsandovercreditorswhoarelowerinranktohiminthesettlementof
hisrightoutoftheproceedsofthesaleofsuchproperty,nomatterwhopurchasesit.
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Article1059
1. Official mortgage shall not be established unless made under an official paper reviewed and
signedaccordingtothelaw.
2. The mortgagor shall bear the costs of the mortgage contract unless there is an agreement to the
contrary.
Article1060
1. The mortgagor may be the debtor himself or a surety who is offering a real security for the
advantageofthedebtor.
2. In both cases, the mortgagor shall be the owner of mortgaged real property and shall have the
capacitytodisposethereof.
Article1061
1. Wherethemortgagorisapersonotherthantheownerofmortgagedrealproperty,themortgage
contractshallbecomevalidifacknowledgedbytheactualownerunderanofficialpapernotarized
in accordance with the law. Where such acknowledgement is not issued, the right of mortgage
overrealpropertyshallbevalidonlyfromthetimeatwhichsuchpropertybecomesownedbythe
mortgagor.
2. Themortgageofsumsofmoneyexpectedtobereceivedinthefutureshallbevoid.
Article1062
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Amortgageissuedbytheownerwhosedeedoftitleisinvalidated,annulled,ornullifiedforanyreason
shall remain in existence in favour of the mortgagee if such creditor was bona fide while concluding
suchmortgage.
Article1063
1. Anofficialmortgageshallonlyexistoverrealpropertyunlessthereareprovisionstothecontrary.
2. Real property shall be separately saleable in an auction and its nature and location shall be
accurately described. This description shall be elaborated in the mortgage contract itself or in a
subsequentofficialcontract,failingwhichthemortgageshallbeinvalid.
Article1064
1. Officialmortgageshallincludetheextensionsthataredeemedrealproperties.
2. Such extensions shall include, in particular, buildings and trees, easements, allocated real
properties, improvements and edifices that may be profitable for the owner, whether such
extensions were present at the time of mortgage or created afterwards. This shall be the case
unlessotherwiseagreedandwithoutprejudicetotheprivilegeoftheamountsduetocontractors
orengineers.
Article1065
Registration of attachment shall include with real property the returns and the revenues for the period
followingtheregistration.Distributionofsuchreturnsshallbesimilartodistributionofthepriceofreal
property.
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Article1066
Theownerofbuildingssituatedonanotherperson'slandmaymortgagesuchbuildingsofficially.Inthis
case, the mortgagee shall have the right to receive the debt from the price of the wreckage if the
buildings were demolished and from the consideration paid by the owner of the land if he spared the
building.
Article1067
1. Amortgageconcludedbyallownersofajointpropertyshallremainvalidwhatevertheresultof
divisionorsaleofsuchrealpropertyduetoitbeingindivisible.
2. Where a joint proprietor has mortgaged his share in joint property or a specified part thereof,
eitherinwholeorinpart,andupondivisionsharesotherthanthemortgagedshareareattributed
tohim,themortgageshallcoverpartofsuchsharesequaltothevalueoftheoriginallymortgaged
real property. Such share shall be by an order on application. The mortgagee shall make a new
registration showing the amount of the share to which the mortgage is entered within sixty days
from the date of being informed by any concerned party of the result of division. Mortgages
transferredbysuchmethodshallaffectneitheramortgageconcludedbyallthejointproprietors
northeprivilegeofthepartiestothedivision.
Article1068
A mortgage may only be concluded either as a security for a conditional debt, a future debt, or a
promised debt or as a security for an open credit, or for opening a current account, provided that a
mortgagecontractshallspecifytheamountoftheguaranteeddebtorthemaximumlimittowhichsuch
debtmayreach.
Article1069
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Everypartofthemortgagedrealpropertyshallconstituteasecurityforthewholedebtandeverypartof
thedebtguaranteedbyallthemortgagedrealproperty,unlessthelawprovidesfor,oritwasagreedto,
thecontrary.
Article1070
1. Amortgageshallbesubjecttothesecureddebtinvalidityorterminationunlessthelawprovides
otherwise.
2. Where the mortgagor is a person other than the debtor, such mortgagor may, in addition to his
righttoholdtohisownaspectofpleading,holdtothedebtor'saspectsofpleadingregardingthe
debt.Suchrightshallpersistevenifthedebtorhashimselfwaivedsucharight.
ChapterTwo:EffectsofaMortgage
SubchapterOne:EffectsofaMortgageasbetweentheParties
Article1071
The mortgagor may alienate his mortgaged real property, and any act by him shall have no effect
whatsoeverontherightsofthemortgagee.
Article1072
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Themortgagormaymanagethemortgagedrealpropertyandreceiveitsyielduntilsuchyieldisattached
torealproperty.
Article1073
1. A lease concluded by the mortgagor shall not be applicable to the mortgagee unless the date of
suchleaseisfixedbeforetheregistrationofattachment.Iftheleaseisdatedassaidorconcluded
aftertheregistrationofattachmentandtherentisnotadvanced,suchleaseshallnotbeeffective
unlessitisincludedintheworksofthebonafidemanagement.
2. Wherethetimebetweentheconclusionoftheleaseandtheregistrationofattachmentismorethan
tenyears,itshallnotbeeffectiveagainstthemortgageeformorethantenyearsunlesssuchlease
wasregisteredbeforetheregistrationofthemortgage.
Article1074
1. Neither the discharge of the rent in advance for a period of more than three years, nor the
subrogation thereof, shall be effective against the mortgagee unless registered on a date prior to
thedateofregisteringtheattachment.
2. Wherethedischargeortheletterofsubrogationorclearanceisforaperiodexceedingthreeyears,
itshallnotbeeffectiveagainstthemortgageeunlessregisteredbeforethemortgage,otherwisethe
periodshallbereducedtothreeyearssubjecttotheprovisionsofthepreviousArticle.
Article1075
Themortgagorshallguaranteethesafetyofmortgagedrealproperty,andthemortgageemayobjectto
anyactionordefaultthatmaymateriallyreducethesaidguarantee.Themortgageemayintheeventof
urgency take all measures of preservation and may have recourse against the mortgagor for expenses
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incurredinsodoing.
Article1076
1. Whererealpropertyisdamagedordestroyedduetothemortgagor'sfault,themortgageeshallbe
entitledtorequestimmediatepaymentofhisdebtorthatasufficientsecurityforthesettlementof
hisdebtbeprovided.
2. However,wherethedamageordestructionisnotimputabletothemortgagorandthemortgagee
does not accept the debt without security, the mortgagor shall have the option either to offer a
sufficientsecurityforthedebtortosettlethedebtbeforeitsmaturity.
3. Inallevents,wheresomeactsareperformedandcausedamagetoordestructionofthemortgaged
real property or cause the security to become insufficient, the mortgagee shall be entitled to
requestthecourttostopsuchactsandtoordermeasurestopreventsuchdamageordestruction.
Article1077
Where the mortgaged real property is damaged or destroyed for any reason whatsoever, the mortgage
shall transfer to the property that which is substituted to it, such as the compensation or the insurance
amountortheindemnityofexpropriationforpublicbenefit.
Article1078
1. Themortgageemayobtainfulfilmentofhisrightsfromsuchmortgagedrealpropertyaccordingto
theapplicableprocedures.
2. Where such real property does not fulfil the mortgagee's debt, he may have recourse for the
remainderofthedebtagainstotherassetsofthemortgagorasanormaldebtor.
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Article1079
1. Where the mortgagor is a person other than a debtor, attachment shall not be imposed on the
mortgagor's assets except the mortgaged assets, and he may not plead to dispossess the debtor
fromhispropertiesunlessthereisanagreementtothecontrary.
2. Themortgagormayavoidanyprocedureagainsthimifhewaivedthemortgagedrealpropertyin
accordancewiththesituationandinaccordancewiththeprovisionsthatthepossessorshallfollow
intransferringrealproperty.
Article1080
Anyconditionthatmaygivethemortgageetheright,whenthedebtisnotsettledatthematuritydate,to
possessrealpropertymortgagedinconsiderationofthedebtoranyotherpriceortosellsuchproperty
without following the procedures provided by the law, shall be invalid even if such condition is
stipulatedaftertheconclusionofthemortgage.
SubchapterTwo:EffectsofMortgagewithregardtoThirdParties
Article1081
1. Amortgageshallnotbeeffectiveagainstthirdpartiesunlessitisregisteredbeforethethirdparty
acquires any real right over the mortgaged real property without prejudice to the provisions of
bankruptcy.
2. It shall not be valid to hold against third parties to transfer a right guaranteed by a registered
mortgage,nortoholdtotherightarisingfromthesubrogationofthedebtorbyanotherpersonfor
suchrightunderthelaworbyagreement.Inaddition,itshallbeinvalidtoholdtothetransferof
therankofthemortgageinfavourofanothermortgageeunlessthesameisenteredinthemargin
oftheoriginalregistration.
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Article1082
Theeffectofamortgageshallberestrictedtothesumspecifiedintheattachedlistofinformationorthe
dueamount,whicheverislesser.
Article1083
Amortgageshalllapseifnotrenewedwithinten(10)yearsfromthedateofitsconclusion,providedthat
themortgageeshallconcludeanothermortgageifpossibleunderthelaw,whichrankshallbefromthe
date of concluding the same, and every renewal thereof shall be effective only for ten years from the
datethereof.
Article1084
A mortgage shall be renewed even during the procedures of attaching the mortgaged real property.
However, it shall not be necessary to renew a mortgage if the right has expired or real property is
discharged and, in particular, if real property is sold under a judgment and the date for increasing the
tenyearperiodhasexpired.
Article1085
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A mortgage may not be cancelled unless under a final judgment or with the consent of the mortgagee
accordingtoanofficialdecisionbyhim.
Article1086
Where the cancellation is subsequently invalidated, the mortgage shall regain its original rank even
though the cancellation shall have no retroactive effect in respect of the entries and registrations made
duringtheperiodbetweenthemortgage'scancellationanditsinvalidation.
Article1087
The mortgagor shall bear the expenses of the mortgage, its renewal and cancellation unless agreed
otherwise.
1st:RightofPreference
Article1088
Mortgageesobtaintheirrightsfromthenormaldebtorsundermortgagefromtheproceedsofmortgaged
real property or from the property which has been substituted to it, according to the rank of each of
them,eveniftheyhaveperformedtheirregistrationonthesamedate.
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Article1089
Therankofmortgageshalltakeeffectfromthedateofitsregistration,evenifthedebtguaranteedbythe
mortgageisconditionalorisafutureorapromiseddebt.
Article1090
The registration of the mortgage shall require the incorporation of the expenses of the contract, its
registrationandrenewalinthedistributionandinthesamerankofthemortgage.
Article1091
A mortgagee may assign the rank of his mortgage within the limits of the debt guaranteed by this
mortgagetoanothermortgageeregardingthesamemortgagedrealproperty.Itshallbepermittedtohold
againstsuchmortgageeallthepleadingwhichthedebtormayholdagainsttheoriginalmortgagee.All
the exceptions which may be opposed to that other creditor may also be opposed to the first creditor
save for those that relate to the lapse of the right of the first creditor if the said lapse has occurred
subsequenttotheassignmentofhisrank.
2nd:RightofTracing
Article1092
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1. Whenthedebtismature,themortgageemayexecutethemortgagedrealpropertyinpossessionof
the possessor thereof unless the possessor elects to settle the debt or discharge the real property
frommortgageorassignsuchmortgagedproperty.
2. Anypartytowhomtheownershipofsuchpropertyoranymortgageablerightinkindinrespect
thereofistransferredforanyreasonwhatsoevershallbedeemedthepossessorofthemortgaged
realpropertywithoutbeingpersonallyresponsibleforthedebtguaranteedundersuchmortgage.
Article1093
Thepossessormay,uponthematurityofthedebtguaranteedunderthemortgage,dischargesuchdebt
and its supplements, including the expenses of the procedures from the date of being notified to settle
thedebt.Thisrightshallremainuntilthedateofsaleandinsucheventthepossessorshallhavetheright
to claim all the amounts paid by him from the debtor and the former owner of the mortgaged real
property.Thepossessormayinrespectofhisrightssubrogatethecreditorwhoobtainedthedebtsave
fortherightsrelatingtosecuritiessubmittedbyapersonotherthanthedebtor.
Article1094
The possessor shall keep the registration of the mortgage in which he subrogated the mortgagee and
renew such registration whenever required until the registrations on real property at the time of
registrationofthepossessor'stitleofdeedarecancelled.
Article1095
1. Wherethereisanamountsufficienttofulfilallthedebtsofthedebtorswhoserightsareregistered
inrespectofrealpropertyandsuchamountisduefromthepossessorbecauseofpossessingthe
mortgagedrealproperty,eachcreditormayrequirethepossessortorepayhisdebtprovidedthat
suchcreditor'stitledeedisregistered.
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2. Wherethedebtduefromthepossessorisnotmatureimmediately,oritislessthanthedebtsdue
tothecreditorsoritisdifferentfromsuchdebts,thecreditorsmay,ifinagreement,demandthat
the possessor pay his debts to the extent of the amounts due to them. Payment shall be in
accordance with the conditions under which the possessor assumed in his original covenant for
paymentandwithintheagreedperiodinwhichthepaymentshouldbesettled.
3. In both events, the possessor may not dispose of his obligation by waiving real property.
However,wherethepossessorrepaidhisdebts,realpropertyshallbedeemeddischargedofevery
mortgage. The possessor shall hold the right to request the cancellation of any attachments
regardingthemortgage.
Article1096
1. Wherethepossessorhasregisteredhistitledeed,hemaydischargerealpropertyofanymortgage
thatwasregisteredbeforetheregistrationofsuchdeed.
2. Thepossessormayusesuchrightevenbeforethecreditorssubmitanapplicationforattachment
ofrealpropertyorserveanoticeonthepossessor.Suchrightshallremainuntilthedateofissuing
thelistofthesaleconditions.
Article1097
Wherethepossessorwishestodischargerealproperty,heshallserveanoticeoneachofthecreditors
whoserightsareregistered.Thesaidnoticeshallincludethefollowinginformation:
1. Anextractfromhistitledeed,includingthekindanddateofdisposalinadditiontoanaccurate
description of real property and the name of the previous owner thereof. If such disposal was a
sale,thepriceanditssupplementsshallalsobestated.
2. Thedateandregistrationnumberofthepossessor'stitle.
3. Rights which were registered on real property before registering its title deed, the date of such
registrations,theamountsofsuchrightsandthenamesofthecreditors.
4. Theamountwhichthepossessorestimatesasthepriceoftherealproperty.Suchamountshallnot
belessthanthepricewhichistakenasabaseforestimatingthepriceintheeventofdispossessing
real property for public interest. This amount shall not be less than the remaining amount of the
price being due from the possessor if such a disposal is a sale. If the parts of real property are
associatedwithdifferentmortgages,thevalueofeachpartshouldbeestimatedseparately.
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Article1098
ThepossessorshallstateinthenoticeprovidedforinthepreviousArticlethatheisreadytosettlethe
registered debts to the extent of the property's valuation. The possessor shall not be obliged to
accompany the offer with the cash amount. However, the offer shall be restricted to expressing the
willingnesstosettlethedueamountimmediately,whatsoeverthedateofmaturityoftheregistereddebts.
Article1099
1. Everycreditormayregisterhisright,andeveryguarantorofaregisteredrightmayapplyforthe
sale of real property requested to be discharged. Such right may be exercised within thirty (30)
daysfromthedateofthelastofficialnotice.
2. Suchapplicationshallbeunderanoticetobeaddressedtothepossessorortothepreviousowner.
Theapplicantshalldepositwiththecourt'streasuryanamountsufficienttocovertheexpensesof
thesaleinanauction.Theapplicantmaynotrefundtheexpensespaidbyhimiftheauctionwas
notclosedwithapricehigherthantheamountofferedbythepossessor,andtheapplicationshall
beinvalidiftheseconditionsarenotfulfilled.
3. Theapplicantmaynotwaivehisapplicationunlesswiththeconsentofalltheregisteredcreditors
andalltheguarantors.
Article1100
Whereanapplicationforsaleofrealpropertyissubmitted,theapplicableproceduresofcompulsorysale
shallbefollowedandthesaleconductedpursuanttotherequestofthepartyinterestedintheurgentsale,
whether an applicant or possessor. The person commencing the procedures shall state in the notice of
saletheestimatedvalueoftherealproperty.
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Article1101
Where the sale of the real property is not requested by the specified date and under the applicable
situations,orifthesaleisappliedforbutthepriceofferedinanauctionisnothigherthantheamount
offered by the possessor, the ownership of the real property, free from any registered right shall be
grantedfinallytosuchpossessor.Thisshallbethecaseifhepaidtheestimatedpriceofsuchpropertyto
the creditors whose rank allows them to receive their right from such owner, or if he deposited such
amountwiththecourt'streasury.
Article1102
1. Themortgagedrealpropertyshallbevacatedunderareporttobesubmittedbythepossessorto
thecompetentcourt'sclerk'soffice,andheshallrequestthatthesamebenotedinthemarginof
theattachmentregistration.Thecreditorinitiatingtheproceduresshallbenotifiedofsuchvacation
withinfivedaysfromthedateofdecidingthereon.
2. Any person who has an interest in urgent procedures may apply before the competent court of
summaryaffairsfortheappointmentofareceiveragainstthoseattachmentprocedureswhichare
tobeexecutedandthepossessormaybeappointedasareceiverifherequestedthesame.
Article1103
Where the possessor did not elect to fulfil the registered debts or to discharge real property from the
mortgage or to vacate such property, the creditormortgagee may not execute attachment procedures
againstthepossessorunlesshehasfirstnotifiedhimtopaytheduedebtortovacatesuchproperty.Such
noticemaybeaddressedafteroratthesametimeastheregistrationofattachment.
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Article1104
1. Thepossessorwhoregisteredhistitledeed,andwhoisnotalitigantinthesuitinwhichthedebtor
isthejudgmentdebtor,mayholdtotheaspectsofpleadingwhichthedebtormayhaveheldtoif
thejudgmentforthedebtwassubsequenttotheregistrationofthepossessor'stitledeed.
2. Thepossessormayinalleventsholdtothepleadingswhichthedebtormaystillhavetherightto
holdtheretofollowingthejudgment.
Article1105
The possessor may enter the auction provided that he shall not offer a price less than the remaining
amountduefromhimoffthepriceofsuchpropertyundersale.
Article1106
Wherethemortgagedrealpropertywassoldcompulsorily,evenaftertakingthedischargingorvacation
proceduresandtheauctionwasknockeddowntothepossessor,heshallbedeemedtheownerofsuch
property by virtue of his original title deed. In such case, the real property shall be discharged of any
registeredrightifthepossessorpaidthepricewhichtheauctionknockeddownordepositeditwiththe
court'streasury.
Article1107
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Where the auction in the situations provided for under the previous Article was knocked down to a
person other than the possessor of such property, such person shall receive his right on behalf of the
possessorofthepropertypursuanttothejudgmentofsale.
Article1108
Wheretheproceedsofthepropertysoldintheauctionexceededtheamountduetothecreditorswhose
rightsareregistered,suchexcessshallbepayabletothepossessorandhiscreditorsmortgageesshallbe
entitledtorecovertheirdebtsfromit.
Article1109
Thepossessorshallhavetherightofeasementandotherrightsinkindwhichhehadbeforethetransfer
ofrealpropertytohim.
Article1110
Thepossessorshallreturntheproceedsofrealpropertyfromthetimehewasnotifiedofthepaymentor
vacation.Iftheprocedureswereabandonedforthreeyears,theproceedsshallbecalculatedonlyfrom
thedateofaddressinganewnoticetohim.
Article1111
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1. The possessor shall have recourse for the claim for guarantee against the previous owner within
thelimitsoftherightofrecoursegrantedtothesuccessoragainsthispredecessorfromwhomhe
acquiredownershipeitherbycommutationorgratuitously.
2. The possessor shall also have recourse against the debtor for any excess amount he may have
paid,foranyreasonwhatsoever,inadditiontowhatwasduefromhimaccordingtohistitledeed.
Thepossessorshallalsobesubstitutedtothecreditorswhoserightshehassettledandheshall,in
particular,besubrogatedtothesecuritiesprovidedtothembythedebtortotheexclusionofany
securitiesprovidedbyanypersonotherthanthedebtor.
Article1112
The owner shall be personally responsible to the creditors for any destruction or damage which may
occurtothepropertyduetohisfault.
ChapterThree:ExtinguishmentofMortgage
Article1113
Theofficialmortgageshallterminateupontheexpiryofthesecureddebt.Ifthecauseofterminationof
the debts vanishes, the mortgage shall recover its validity without any infringement upon the rights of
any bona fide third party, which he may have acquired between the expiration of the debt and the
recoveryofitsvalidity.
Article1114
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Where the procedures of discharge are fulfilled, the right of the official mortgage shall expire finally
eveniftheownershipofthepossessorwhodischargedthepropertyhasterminated.
Article1115
Wherethemortgagedrealpropertyissoldbyacompulsorysaleatauction,whetheragainsttheowner,
its possessor, or the receiver who received such property upon vacation, the rights of mortgage
registered on such property shall terminate upon the deposition of the price offered in the auction or
uponthepaymentthereoftotheregisteredcreditorswhoserankauthorizesthemtoreceivetheirrights
fromsuchprice.
Part2:Lien
Article1116
1. Each creditor who obtains an enforceable judgment issued in the subject matter of the suit and
whichbindsthedebtortosomethingmayingoodfaithobtainalienonthepropertyofhisdebtor
asasecurityfortheoriginaldebtandexpenses.
2. Thecreditormaynot,afterthedeathofthedebtor,obtainalienonanypropertyoftheestate.
Article1117
Thelienmaynotbeobtainedunderajudgmentissuedbyaforeigncourtorunderanawardissuedby
arbitrators,unlesssuchjudgmentorawardbecomesenforceable.
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Article1118
The lien may be obtained under a judgment confirming a compromise or an agreement between the
adversaries. However, such lien may not be obtained under a judgment confirming the authenticity of
suchsignature.
Article1119
Thelienmaynotbeobtainedexceptonspecificpropertyorassetsownedbythedebtoratthetimeof
obtainingandenteringanorderoflienpermittingthesaleofsuchpropertybyauction.
Article1120
1. The creditor who wishes to obtain a lien on the property of his debtor shall file an application
beforethecourtoffirstinstanceinwhosejurisdictionthepropertiesforwhichthecreditorwishes
toobtainsuchlienaresituated.
2. Such application shall be accompanied by an official copy of the judgment or a certificate from
the clerk's office of the court, including the pronouncement of such judgment and the following
information:
1. Thenameofthecreditor,histitle,profession,andoriginaldomicileorchosendomicileas
hemayspecifyifhisoriginaldomicileisnotsituatedinthecourt'sjurisdiction.
2. Thenameofthedebtor,histitle,professionanddomicile.
3. Thedateofthejudgmentandthecourtwhichissuedit.
4. Theamountofthedebt.Wherethedebtstatedinthejudgmentisnotdefined,thechairman
ofthecourtshallassessanddeterminetheamountforwhichthelienshallbeordered.
5. Theexactdescriptionandlocationoftheproperties,togetherwiththepapersconfirmingthe
valuethereof.
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Article1121
1. Thechairmanofthecourtshallrecordhisorderoflienatthebottomoftheapplication.
2. Afteranorderoflienisissued,theamountofthedebtandthevalueofthepropertyassetoutin
the application shall be assessed on an approximate basis. The chairman of the court may, if
necessary,limitthelientocertainpropertyortoonepartthereof,ifhedecidesthatsuchlimitation
issufficienttosecurethepaymentoftheoriginaldebtandtheexpensespayabletothecreditors.
Article1122
Theclerk'sofficeofthecourtshallserveonthedebtorthenotificationoftheorderoflienonthesame
day on which such order is issued, and shall also affix such order on the copy of the judgment or the
certificate attached to the application for the lien, and shall further serve a notice on the court which
issuessuchjudgmentinordertoendorsesuchorderoneachcopyoranothercertificatedeliveredtothe
debtor.
Article1123
1. The debtor may apply for grievance against the order of lien before the judge who issues such
order.Hemayalsofilesuchapplicationbeforethecourtoffirstinstance.
2. Eachorderorjudgmentrevokingtheorderoflienshallbereferredtoinanentryinthemargin.
Article1124
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Wherethechairmanofthecourtrejectstheapplicationforlienfiledbythecreditor,whetheratthefirst
instanceorafterthegrievancefiledbythedebtor,thecreditormayfilegrievanceagainstsuchrejection
beforethecourtoffirstinstance.
Article1125
Wherethedebtorisinsolventwhentheorderoflienisissued,thecreditorwhoobtainssuchlienmaynot
holdthereto,notwithstandinghisgoodfaith,againstanyothercreditorthedateofwhoserightisfixed
andprecedestheentryoftheorderoflien.
Article1126
1. Any interested party may request that the lien be reduced to the proper limit if the value of the
propertyforwhichsuchlienischargedexceedstheamountsufficientforthesecurityofthedebt.
2. The reduction of the lien shall be made either by limiting it to part of the property or assets for
which such lien is charged or by transferring it to another property whose value is sufficient to
providesecurityforthedebt.
Article1127
The creditor who obtains an order of lien shall have the same rights of the creditor who obtains an
officialmortgage.Theprovisionsapplicabletotheofficialmortgageshallapplytothelien,particularly
in connection with the entry, renewal, cancellation and subdivision of the lien, and its effects and
expiration,withoutprejudicetothespecificprovisionsherein.
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Part3:Pledge
ChapterOne:CreationofPledge
Article1128
Possessorypledgeshallbedefinedasacontractbywhichapersonundertakes,byprovidingsecurityfor
adebtowedbyhimorbyathirdparty,todelivertothecreditorortoastakeholderappointedbytwo
contractors,apropertywhichentailsamaterialrighttothecreditorwhoistherebyauthorizedtoretain
the property until the debt is fully paid, and to have priority over normal creditors and creditors of a
lowerrankafteracquiringhisrightfromthepriceofthisproperty,nomatterunderwhosecontrolitmay
be.
Article1129
Nothingshallbesubjecttopossessorypledgesaveformovableorrealestatepropertiesthatcanbesold
independentlybyauction.
Article1130
The provisions of Articles 1061, 1062, 1066, 1068, 1069 and 1070 herein regarding the official
mortgageshallapplytopossessorypledge.
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Article1131
Ajointlyownedpropertymaybepledgedbypossessorypledge,andtheprovisionsofArticle1067shall
applytosuchpledge.
Article1132
Unless agreed otherwise, possessory pledge shall include all the accessories annexed to the property
pledged.
Article1133
Apledgedpropertymaybeasecurityforseveraldebtsifthepersonreceivingsuchpropertyagreesto
retainitforthepersonowingsuchdebts.
ChapterTwo:TheEffectsofPledge
Article1134
1. The pledgor shall deliver the pledged property to the creditorpledgee or the stakeholder
appointedbythetwocontractorsforsuchpurpose.
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2. Theprovisionsregardingtheobligationtodeliverasoldpropertyshallapplytotheobligationto
deliverthepledgedproperty.
Article1135
Where the pledged property returns to the possession of the pledgor, the pledge shall be terminated
unlessthepledgeeprovesthatsuchreturnwasforapurposeotherthantermination,withoutprejudicein
alleventstotherightsofthirdpartiesactingingoodfaith.
Article1136
Thepledgorshallbeanswerableforthesafetyofthepledgedpropertyandtheeffectofthepledge,and
hemaynotperformanyactwhichmayreducethevalueofthepledgedpropertyorpreventthepledgee
fromexercisinghisrightarisingfromthecontract.Thepledgeemay,inurgentcasesandatthecostof
thepledgor,takeallactionsrequiredtomaintainthepledgedproperty.
Article1137
The provisions of Articles 1076 and 1077 herein regarding the damage or destruction of the officially
mortgagedpropertyandthetransferofthemortgageerightfromthemortgagedpropertytotheproperty
thatsubstituteditshallapplytopossessorypledge.
Article1138
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Where the pledgee receives the pledged property, he must exercise the care of a reasonable person to
keep and maintain it. He shall be liable for its loss or destruction unless he proves that such loss or
destructionwasduetoacausebeyondhiscontrol.
Article1139
1. Thepledgeemaynotenjoytheuseofthepropertypledgedwithoutconsideration.
2. Unless agreed otherwise, the pledgee must fully invest the pledged property depending on its
nature.
3. Any net revenues and benefits the pledgee might receive from the use of the pledged property
shallbedeductedfromtheamountsecuredbythepledge,evenifnotyetdue.Thedeductionshall
bemadefirstfromcostsincurredbythepledgeeinmaintainingandrepairingtheproperty,then
fromanyindemnities,thenfromanyexpenses,andfinallyfromtheoriginaldebt.
Article1140
1. Thepledgeeshallmanagethepledgedpropertyandmustexercisethecareofareasonableperson.
Hemaynotmodifythemannerinwhichthepropertyisusedwithouttheconsentofthepledgor,
andheshallnotifythepledgorofanymatterthatrequireshisintervention.
2. Where the pledgee misuses such right or mismanages the property or is grossly negligent, the
pledgor may demand that the property be put under receivership or that he retrieve it against
payingallamountspayablebyhim.
Article1141
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The pledgee shall return the pledged property to the pledgor upon receiving all his rights and relevant
accessories,expensesandindemnities.
Article1142
TheprovisionsofArticle1079hereinregardingtheliabilityofthemortgagorwhoisnotthedebtor,and
theprovisionsofArticle1080hereinregardingthepossessionconditionwhenthedebtisnotsettledand
sellingwithoutprocedures,shallapplytopossessorypledge.
Article1143
Apledgeinfavourofathirdpartyshallbeeffectivewherethepledgedpropertyisunderthecontrolof
thepledgeeorthestakeholderagreeduponbybothcontractors.
Article1144
1. Thepledgeshallentitlethepledgeetoretainthepledgedproperty,withoutprejudicetotherights
ofthirdpartiesunderthelaw.
2. Wherethepledgeelosescontrolofthepropertyagainsthiswillorwithouthisknowledge,heshall
beentitledtoregainitaccordingtotheprovisionsofacquisition.
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Article1145
Thepledgeisnotlimitedtothesecurityoftheoriginalright,butisalso,andsimilarly,asecurityfor:
1. Thenecessaryexpensesincurredinmaintainingtheproperty.
2. Theindemnitiesarisingfromdefectsintheproperty.
3. The expenses relating to the contract creating the debt, the pledge contract and registration
thereof,whennecessary,andtheexpensesofexecutingthepledge.
ChapterThree:TerminationofPledge
Article1146
Thepossessorypledgeshallexpireupontheexpiryofthedebtsecuredtherewith,andshallbeeffective
againifthereasonfortheexpiryofthedebtceasestoexist,withoutprejudicetotherightsofbonafide
thirdpartieswhicharisebetweentheexpiryofthepledgeanditsreeffectiveness.
Article1147
Thepossessorypledgeshallalsoexpirefortothefollowingreasons:
1. Where the pledgee, being competent to discharge the pledgor of the debt, waives the pledge. A
waivermaybeimplicitlyinferredwhenthepledgeechoosestosurrenderthepledgedpropertyor
agrees to dispose of it without reservations. However, if the secured debt is due to third parties,
such waiver by the pledgee shall not be valid in relation to the rights of third parties unless it is
approvedbysuchthirdparties.
2. Wherethepropertyisdestroyedorthepledgedrighthasexpired.
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3. Wherethepledgeandpossessionarevestedinthesameperson.
4. Uponthecompulsorysaleofthepledgedpropertybyauction.
ChapterFour:CertainTypesofPledge
SubchapterOne:PledgeofanImmovable
Article1148
Possessorypledgeofarealpropertyshallonlybeeffectivetowardsanythirdpartywhenthepossession
of the real property passes to the pledgee and the pledge is registered. The provisions relating to the
registrationoftheofficialmortgageshallapplytotheregistrationofsuchpossessoryapledge.
Article1149
1. Thecreditorpledgeemaylendorleasethepledgedpropertytothepledgorwithoutaffectingthe
validityofthepledgevisvisanythirdparties.
2. Wheresuchleaseisagreedtointhepledgecontract,itmustbeenteredintheregister.However,
where such lease is agreed at a later date, it must be stated in the margin of the register. Such
statement,however,shallnotbenecessarywheretheleaseisautomaticallyrenewed.
Article1150
1. A creditorpledgee shall be required to maintain the real pledged property and pay the expenses
necessaryforsuchmaintenanceaswellastheannualtaxesandchargeslevied,providedthatthey
shallthenbedeductedfromtheyieldofthepropertypledgedorfromtheproceedsuponitssale
andaccordingtotherankofthecreditorpledgee'sdebt.
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2. Thecreditorshallbedischargedofsuchobligationsifhewaivesthepledge.
SubchapterTwo:PledgeofMovables
Article1151
Possessory pledge of a movable property shall only be effective towards any third party where the
possessionoftherealpropertypassestothepledgeeandthepledgecontractisreducedtowritingand
reflects a fixed date and the amount secured by the pledge and pledged movable property. Such fixed
dateshalldeterminetherankofthedebt.
Article1152
1. Theprovisionsrelatingtotheeffectsofthepossessionofmovablepropertiesandtheinstruments
giventosuchownershallapplytothepossessorypledgeofmovables.
2. Thepledgeinparticular,ifactingingoodfaith,mayholdtohisrighttothepledgedpropertyeven
ifthepledgormaynotdisposethereof.Ontheotherhand,anypossessoractingingoodfaithmay
holdtohisrightinthepledgedproperty,evenafterthedateofthepledge.
Article1153
1. Wherethepledgedpropertyisattheriskofdamage,destructionorlossofvaluesuchthatthereis
areasonablefearthatitwillbeinsufficienttosecuretherightofthepledgee,andthepledgordoes
not request that it be substituted for something else, the pledgee or the pledgor may request the
courtforauthorizationtosellitbyauctionoratitsmarketprice.
2. Whereheauthorizesthesale,thejudgeshalldecideupondepositingtheproceeds.Therightofthe
pledgeeshallthenbetransferredfromthepropertytotheproceeds.
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Article1154
The pledgor may request the court to authorize the sale of the pledged property, even before the debt
becomes due, if a favourable opportunity presents itself. In such a case, if the court grants the
authorization,itshallalsodeterminetheconditionsofsaleandshalldecideuponhowtheproceedsare
dispersed.
Article1155
The creditor may, if his right is not granted, request the court for an authorization to sell the property
pledgedbyauctionoratitsmarketprice.
Article1156
The preceding provisions shall apply in so far as they do not contradict the provisions of the Laws of
Commerceandparticularlythelawsprovidingforpossessorypledgesofmovables.
SubchapterThree:PledgeofDebts
Article1157
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1. Thepledgeofadebtshallonlybeeffectivetowardsthedebtorifhehasbeennotifiedthereofor
hehasgivenhisconsentthereto.
2. Suchpledgeshallonlybeeffectivetowardsanypersonotherthanthedebtorwherethepledged
debt instrument is received by the pledgee or the stakeholder. The rank of the debt shall be
determinedbythedateonwhichthedebtorwasnotifiedorhasgivenhisconsent.
Article1158
Nominalbondsorpromissorynotesmaybepledgedaccordingtothespecialproceduresprovidedforin
thelawregulatingtheirassignment,providedthatitisstatedthattheassignmentisperformedbywayof
pledge.Notificationthereofshallnotberequired.
Article1159
Debtswhichmaynotbethesubjectofassignmentorattachmentmaynotbepledged.
Article1160
Settlement,renewal,setoff,unityofdisclosureordischargeofapledgeddebtshallnotbevalidtowards
thecreditorpledgeewithouthisconsent.Similarly,nomodificationinthedebtthatmaycausedamage
tothepledgorshallbevalidwithouthisconsent.
Article1161
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1. Apledgeemayreceivesumsonaperiodicbasisrelatedtothepledgeddebtandmust,insucha
case, deduct all such sums from the expenses and from the principal amount of the debt, unless
otherwiseagreed.
2. Thecreditorpledgeeshallberequiredtopreservethedebtpledgedand,whereanypaymentsare
tobesettledfromthesaiddebtwithouttheinterferenceofthepledgorherein,hemustpayitinthe
place and at the time determined for the settlement and he must also notify the pledgor
accordingly.
Article1162
1. Inthecaseofapledgeddebt,thedebtormayavailhimselftowardthecreditorpledgeeofallthe
pleasconnectedwiththevalidityoftherightsecuredbythepledge,aswellasallthepleaswhich
hemayopposetohisinitialcreditor.
2. Alloftheaboveshallbewithintherestrictionsimposedonthedebtorregardingthepleaswhich
hemayopposetotheassigneeinthecasesofassignment.
Article1163
1. Thedebtor,inthecaseofapledgeddebt,shallberequiredtosettlethedebtofthepledgorandthe
pledgeetogether,ifitfallsduepriortothematurityofthedebtsecuredbythepledge.Thepledgor
and the pledgee may request the debtor to deposit the amounts paid, and the right to the pledge
shallthenbetransferredtothedepositedamounts.
2. The pledgor and the pledgee may cooperate in using that which the debtor paid in the method
mostbeneficialtothepledgor,withoutcausingdamagetothepledgee,andmakeanewpledgefor
thebenefitofthedebtor.
Article1164
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Whereboththepledgeddebtandthedebtssecuredwithapledgefalldueandthepledgeeisnotpaid,he
mayreceivefromthepledgeddebtthatwhichisduetohimorrequestthesaleofthisdebtaccordingto
Article1155herein.
Part4:Privileges
ChapterOne:GeneralProvisions
Article1165
1. Preferenceshallbeaprioritygrantedbylawforaparticularrightaccordingtoitsdescription.
2. Arightshallhavenopreferenceotherthanunderaprovisionofthelaw.
Article1166
1. Theclassofpreferenceshallbedeterminedbylaw.Unlessexpresslyprovidedinapreferredright
toitsclassofpreference,sucharightshallbedeemedaninferiorclasstoanypreferencewhose
classisdetermined.
2. Where preferred rights are of the same class, they shall be entitled to a pro rata value, unless
providedotherwise.
Article1167
Generalpreferredrightsshallapplytoallthemovableassetsandrealpropertiesofthedebtor.However,
specialpreferredrightsshallbelimitedtoaparticularmovableassetorrealproperty.
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Article1168
1. Even if relating to real property, general preferred rights shall not be required to be registered.
Such registration shall also not be required for real preferred rights securing amounts payable to
theTreasury.
2. All such preferred rights shall have priority over any other real preferred right or any formal
mortgage right, irrespective of the date of its registration. However, as between them, real
preferredrightssecuringamountspayabletotheTreasuryshallprevailoverthegeneralpreferred
rights.
Article1169
General preferred rights shall not create a right of succession, subject to the provisions of the law
concerningtherealpreferredrightssecuringamountspayabletotheTreasury.
Article1170
Special preferred rights applicable to a real property shall be governed by the provisions of formal
mortgage to such extent not in conflict with the nature of such rights. In particular, the provisions of
endorsementandregistration,andtheeffectsofregistrationandrenewalordeletioninconnectionwith
suchregistration,shallapply.
Article1171
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1. Therightofpreferencemaynotbeheldtheretoagainstsuchpersonthatmayacquireamovable
assetingoodfaith.
2. WithinthemeaningofthisArticle,theterm"acquirer"shallincludethelandlordofarealproperty,
in connection with the movable assets in the leased property, and the owner of a hotel, in
connectionwiththeluggageofhisguests.
3. Where the creditor for good reason fears the loss of the movable asset charged with a right of
preferenceinitsfavour,thecreditormayapplytoappointareceiverforsuchasset.
Article1172
Preference shall be governed by the same provisions applicable to the formal mortgage in connection
withthelossordamageofathing.
Article1173
Therightofpreferenceshallterminateinthesamemannerastherightofformalmortgageandtheright
ofpledge,tosuchextentthatthisisnotinconflictwiththenatureoftherightofpreference,unlessthere
isanyprovisiontothecontrary.
ChapterTwo:KindsofPrivileges
Article1174
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The rights as provided by the following Articles, in addition to any preferred rights as contained in
specialprovisions,shallbeconsideredaspreferredrights.
SubchapterOne:GeneralPrivilegesandSpecialPrivilegesoverMovables
Article1175
1. Legalcostsincurredinfavourofallthecreditorstopreserve,sellanddistributetheassetsofthe
debtorshallhavealienonsuchassets.
2. Such costs shall be payable prior to any other right, even when preferred or secured by a
mortgage.
3. Legalcostspaidforthepreservationandsaleofsuchassetsshallhaveprecedenceoverthecosts
inconnectionwiththedistributionprocedures.
Article1176
1. AmountspayabletotheTreasury,includingtaxes,feesandchargesofanykindwhatsoever,shall
havealienundersuchconditionsasprovidedbytherelevantlaws.
2. Suchamountsshallbeappliedtothepriceoftheassetschargedwithsuchlieninthepossessionof
anyperson,priortoanyotherright,evenifsuchrightispreferredorsecuredbymortgage,other
thanlegalcosts.
Article1177
1. Amountsincurredtopreserveamovableassetandtomakeanyrepairstheretoshallhavealienon
suchassetinfull.
2. Suchamountsshallbeappliedtothepriceofthemovableassetupondeductionofthelegalcosts
andthoseamountspayabletotheTreasury.Asbetweensuchamounts,theyshallhavepriorityto
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eachotheraccordingtothedateofpaymentthereofinreverseorder.
Article1178
1. Totheextenttheyaredueandpayableinthelastsixmonths,thefollowingrightsshallhaveright
oflienonallthemovableassetsandrealpropertiesofthedebtor:
1. Such amounts payable to servants, workers and any other wage labourers, including their
wagesandsalariesofanykindwhatsoever.
2. Such amounts due in connection with food, clothing and other supplies to the debtor and
hisdependents.
3. Amountspayablebythedebtortothosewhomthedebtorisobligedtosupport.
2. Upondeductionofthelegalcosts,theamountspayabletotheTreasuryandthepreservationand
repair costs, such amounts shall be recovered. As between them, such amounts shall be payable
prorata.
Article1179
1. Amountspaidforseed,fertilizerandotherfertilizationmaterials,pesticidesandinsecticides,and
amounts paid incultivation andharvestworks, shall havealienontherelevantcropor harvest.
Suchamountsshallbeofoneandthesameclass.
2. Suchamountsshallbeappliedtothepriceofthecroporharvestonlyuponcollectionoftherights
asprovidedundertheprecedingArticles.
3. Amountspaidinconnectionwithfarmingmachineryandtoolsshallhavetherightoflienofthe
sameclassonsuchmachineryandtools.
Article1180
1. Therentalofbuildingsandlandsforaperiodoftwoyears,orforthetermoftheleaseifshorter,
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andanyotherrightofthelandlordundertheleasecontract,shallallhavealienonanyattachable
movableassetorproduceofthelandcontainedintheleasedpropertybelongingtothetenant.
2. Unlessanythirdpartyprovidesevidencetohistitlethereto,assetsintheleasedpropertyshallbe
deemedtobelongtothetenant.
3. A lien shall also apply to movable assets, crops and harvests that belong to the subtenant,
provided that the landlord explicitly prohibits the tenant from subleasing. Where no such
condition is provided in the lease contract, the lien shall apply only to such amounts payable to
the original tenant by the subtenant at such time when the landlord notifies the subtenant not to
paysuchamountstotheoriginaltenant.
4. Where, despite the objection of the landlord or without his knowledge, a lien against charged
assetsisremovedfromtheleasedpropertyandthereareinsufficientassetsintheleasedproperty
tosecurepreferredrights,thelienonsuchremovedassetsshallremainvalidwithoutprejudiceto
the title of such bona fide third party to such assets. The lien shall remain valid, even if it may
prejudicetherightofanythirdparty,forthreeyearsfromthedateofsuchremoval,providedthat
the landlord enforces an attachment on such assets in due time by law. However, where such
assetsaresoldtoabonafidepurchaserinapublicmarketorapublicauctionorbyapersonwho
tradesinsimilarassets,thelandlordshallrepaythesalepricetothepurchaser.
5. Suchpreferredrightsshallbeappliedtothepriceofsuchlienonchargedassetsuponsettlement
oftherightsasprovidedintheprecedingArticles,otherthansuchrightsnoteffectiveagainstthe
landlordinhiscapacityasabonafideacquirer.
Article1181
1. Amountspayableforboardandlodgingbyaguesttotheownerofahotelshallhavealienonthe
luggageoftheguestinthehotelorinitsfacilities.
2. Luggage in the hotel shall be deemed the property of the guest unless any third party provides
evidencetothecontrary.Theownerofthehotelmayobjecttothetransferoftheluggagefromhis
hotel where he has not received full payment for board and lodging from the guest. Where,
despitetheowner'sobjectionorwithouthisknowledge,theluggageisremovedortransferred,the
right of lien shall remain valid without prejudice to the rights acquired by third parties in good
faith..
3. Alienoftheownerofahotelshallrankparipassuwiththelienofthelandlord.Intheeventofa
conflict,theformerrightintimeshallprevail,unlesssucharightisnoteffectiveagainsttheother.
Article1182
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1. Thesellerofamovableassetshallhavealienonthesoldassettotheextentofthesalepriceand
other ancillary costs payable to the seller. Such lien shall remain valid so long as the sold asset
maintainsitsdescription,withoutprejudicetotherightsofthirdpartiesingoodfaith,subjecttothe
provisionsconcerningcommercialtransactions.
2. Such lien shall rank second in connection with the rights as provided in the preceding Articles.
However,suchlienshallhaveprecedenceoverthelienofthelandlordandthelienoftheowner
ofahotelifitisestablishedthatthelandlordandtheownerofthehotelhavebeenawareofsuch
lienatthetimeofplacingthesoldassetintheleasedpropertyorinthehotel.
Article1183
1. Wherepartnersdivideamovableasset,theyshallhavearightoflienthereonassecurityfortheir
respectiverightsofrecourseduetosuchdivision,andarighttocollecttheirrespectivesharesof
suchasset.
2. Alienofsuchapartnershallrankparipassuwiththelienofaseller.Intheeventofaconflict,the
formerlienintimeshallhaveprecedence.
SubchapterTwo:SpecialPrivilegesoverImmovable
Article1184
1. Thesellerofrealpropertyshallhavealienonthesoldrealpropertytotheextentofthesaleprice
andancillarycostspayabletotheseller.
2. Thelienshallberegisteredevenifthesaleisregistered,anditshallbeeffectivefromthetimeof
suchregistration.
Article1185
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1. Amounts payable to contractors and engineers instructed to construct, reconstruct, repair or

maintainbuildingsandotherconstructions,shallhavealienonsuchbuildingsandconstructions
totheextentofsuchextravalueoftherealpropertyatthetimeofitssaleduetosuchworks.
2. Suchlienshallberegisteredanditshallbeeffectivefromthetimeofsuchregistration,subjectto
theprovisionsofArticle1064herein.
Article1186
1. Where partners divide any real property held in common by them, the right of each of them to
have recourse against the others due to such division and to collect his share from such real
propertyshallbesecuredbyalienonallthedividedsharesallocatedtotheotherpartners.
2. Suchlienshallberegisteredanditshallbeeffectivefromthetimeofsuchregistration.
EmiroftheStateofQatar
HamadBinKhalifaAlThani
PleasedonotconsiderthematerialpresentedaboveOfficial
AlMeezanQataryLegalPortal
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Law No (22) of 2004 Regarding Promulgating The Civil Code

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Law No (22) of 2004 Regarding Promulgating The Civil Code

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31.08.

1. The personal and financial consequences of marriage, including termination of cohabitation,

1. In the case of persons of unknown nationality or of a person of simultaneous plural nationality,

1. An intention shall be expressed orally or in writing, by a commonly used sign, by actual

1. Adiscerning minormay conclude an individualemploymentcontractpursuanttothe provisions

1. In contracts binding on both parties, where performance of an obligation by one party is

1. A personresponsiblefor the acts ofa thirdparty may recourseagainstsuchathirdparty tothe

1. Officiousness is the objectionably aggressive offering of a person's unrequested and unwanted

1. The owner ofaplot shall be theownerofany building, plantationorotherconstruction thereon

As in the case ofother rightsinkind,titleto amovableassetand realpropertyshallbetransferred by

1. Amounts payable to contractors and engineers instructed to construct, reconstruct, repair or

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