THE NATIONAL
ASSEMBLY
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SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No:
33/2005/QH11
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Ha Noi, day
14 month 06 year 2005
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CIVIL CODE
Pursuant to the 1992 Constitution of the Socialist
Republic of Vietnam, which was amended and supplemented under Resolution No.
51/2001/QH10 of December 25, 2001, of the 10th National Assembly, the 10th
session;
This Code provides for civil affairs.
PART ONE
GENERAL PROVISIONS
Chapter I
TASKS AND EFFECT OF
THE CIVIL CODE
Article 1.- Tasks and
governing scope of the Civil Code
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The Civil Code has the tasks of protecting
legitimate rights and interests of individuals and organizations, State
interests and public interests; ensuring legal equality and safety in civil
relations, contributing to the creation of conditions for meeting the material
and spiritual demands of people, and to the promotion of socio-economic development.
Article 2.- Effect of
the Civil Code
1. The Civil Code shall apply to civil relations
established from the effective date of this Code, unless otherwise provided for
by this Code or the National Assembly's resolution.
2. The Civil Code shall apply in the territory
of the Socialist Republic of Vietnam.
3. The Civil Code shall apply to civil relations
involving foreign elements, unless otherwise provided for by treaties to which
the Socialist Republic of Vietnam is a contracting party.
Article 3.- Application
of practices, analogy of law
In cases where it is neither provided for by law
nor agreed upon by the parties, practices can be applied; if practices are
unavailable, analogy of law may be applied. Practices and analogy of law must
not contravene the principles provided in this Code.
Chapter II
BASIC PRINCIPLES
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The right to freely undertake or agree on the
establishment of civil rights and obligations shall be guaranteed by law, if such
undertaking or agreement is not banned by law and/or not contrary to social
ethics.
In civil relations, the parties shall act
entirely voluntarily and neither party may impose, prohibit, coerce, threaten
or hinder the other party.
Lawful undertakings or agreements shall be
binding on the parties and must be respected by individuals, legal persons and
other subjects.
Article 5.- The
principle of equality
In civil relations, the parties shall be equal
and shall not invoke differences in ethnicity, gender, social status, economic
situation, belief, religion, educational level and occupation as reasons to
treat each other unequally.
Article 6.- The
principle of goodwill and honesty
In civil relations, the parties must act in
goodwill and honesty in establishment and performance of civil rights and
obligations; neither party shall deceive the other party.
Article 7.- The
principle of bearing civil liability
The parties shall strictly perform their own
civil obligations and shall themselves be liable for the non-performance or the
incorrect performance of obligations; if a party does not voluntarily perform,
it shall be forced to perform its obligations in accordance with the provisions
of law.
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The establishment and performance of civil
rights and obligations must ensure the preservation of national identities,
respect and promote good customs, practices and traditions, solidarity, mutual
affection and cooperation, the principle of every individual for the community
and the community for every individual and the noble ethical values of
ethnicities living together on Vietnamese soil.
Ethnic minority people shall be given favorable conditions
in civil relations so as to step by step improve their material and spiritual
life.
The task of assisting elderly persons, young
children and persons with disabilities in the performance of civil rights and
obligations shall be encouraged.
Article 9.- The
principle of respect for, protection of, civil rights
1. All the civil rights of individuals, legal
persons or other subjects shall be respected and protected by law.
2. When the civil rights of a subject are
infringed upon, he/she/it shall have the right to protect such rights by
him/her/itself in accordance with the provisions of this Code or request
competent agencies or organizations to:
a/ Recognize his/her/its civil rights;
b/ Order the termination of the act of
violation;
c/ Order a public apology and/or rectification;
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e/ Order compensation for damage.
Article 10.- The
principle of respect for State interests, public interests and legitimate
rights and interests of other persons
The establishment and performance of civil
rights and obligations must not infringe upon State interests, public interests
and legitimate rights and interests of other persons.
Article 11.- The
principle of compliance with law
The establishment and performance of civil rights
and obligations must comply with the provisions of this Code and other
provisions of law.
Article 12.- The
principle of conciliation
In civil relations, conciliation between the
parties in accordance with the provisions of law shall be encouraged.
No one may use force or threaten to use force
when participating in civil relations and/or resolving civil disputes.
Article 13.- Bases for
establishment of civil rights and obligations
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1. Lawful civil transactions;
2. Decisions of courts or other competent state
agencies;
3. A legal event which is specified by law;
4. Creation of spiritual values which are
intellectual property objects;
5. Legitimate possession of property;
6. Damage caused by an illegal act;
7. Performance of a task without authorization;
8. Illegal possession and use of assets or
illegal gain therefrom;
9. Other bases specified by law.
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INDIVIDUALS
Section 1. CIVIL LEGAL
CAPACITY, CIVIL ACT CAPACITY OF INDIVIDUALS
Article 14.- Civil
legal capacity of individuals
1. The civil legal capacity of an individual is
his/her capability to have civil rights and civil obligations.
2. All individuals shall have the same civil
legal capacity.
3. The civil legal capacity of an individual
shall exist from the time he/she is born and terminate when he/she dies.
Article 15.- Contents
of the civil legal capacity of an individual
An individual shall have the following civil
rights and obligations:
1. Personal rights not associated to property,
and personal rights associated to property;
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3. Rights to participate in civil relations and
to assume obligations arising out of such relations.
Article 16.- No
restrictions on the civil legal capacity of an individual
The civil legal capacity of an individual shall
not be restricted, unless otherwise provided for by law.
Article 17.- The civil
act capacity of an individual
The civil act capacity of an individual is
his/her capability to establish and perform civil rights and obligations
through his/her acts.
Article 18.- Adults
and minors
Persons who are full eighteen years old or older
are adults. Persons who are not yet full eighteen years old are minors.
Article 19.- The civil
act capacity of an adult
An adult shall have full civil act capacity,
except the cases specified in Article 22 and Article 23 of this Code.
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1. Persons who are between full six years old
and under full eighteen years old must have the consents of their
representatives at law when establishing and performing civil transactions,
except those transactions to meet their daily-life needs suitable to their age
group or otherwise provided for by law.
2. In cases where a person who is between full
fifteen years old and under full eighteen years old has his/her own property to
ensure the performance of obligations, such person may establish and perform
civil transactions by him/herself without the consent of his/her representative
at law, unless otherwise provided for by law.
Article 21.- Persons
without civil act capacity
Persons who are under full six years old shall
not have civil act capacity. All civil transactions of persons under full six
years of age must be established and performed by their representatives at law.
Article 22.- Loss of
civil act capacity
1. When a person is incapable of cognizing or
controlling his/her acts due to mental disease or other ailments, the Court
may, at the request of the person(s) with related rights or interests, issue a
decision to declare such a person as having lost his/her civil act capacity,
based on the conclusion of a competent medical examination body.
When there is no longer a basis for declaring a
person as having lost his/her civil act capacity, the Court shall, at the
request of such person him/herself or of a person with related rights or
interests, issue a decision to revoke the decision declaring the loss of civil
act capacity.
2. Civil transactions of persons who have lost
their civil act capacity shall be established and performed by their
representatives at law.
Article
23.- Restrictions on civil act capacity
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2. The at-law representatives of persons with a
restricted civil act capacity and the scope of such representation shall be
decided by the Court. Civil transactions related to the property of persons
with a restricted civil act capacity must have the consents of their
representatives at law, except for transactions to meet their daily-life needs.
3. When there is no longer a basis for declaring
that a person has a restricted civil act capacity, the Court shall, at the
request of such person him/herself or a person with related rights or
interests, make a decision to revoke the decision having declared the
restriction on his/her civil act capacity.
Section 2. PERSONAL RIGHTS
Article 24.- Personal
rights
Personal rights specified in this Code are civil
rights inherent to each individual, which cannot be transferred to other
persons, unless otherwise provided for by law.
Article
25.- Protection of personal rights
When a personal right of an individual is
infringed upon, such person shall have the right to:
1. Make rectification him/herself;
2. Request the infringer or request competent
agencies, organizations to order the infringer to terminate the infringement
and make a public apology and/or rectification;
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Article 26.- The right
with respect to family and given names
1. Each individual has the right to have a
family name and a given name. The family and given names of a person shall be
the family and given names in the birth certificate of such person.
2. An individual shall establish and exercise
civil rights and perform civil obligations in his/her family and given names
which have been recognized by a competent state agency.
3. The use of pseudonyms and pen names must not
cause damage to the rights and interests of other persons.
Article 27.- The right
to change family and given names
1. Individuals shall have the right to request
competent state agencies to recognize the change of their family and/or given
names in the following cases:
a/ Where it is so requested by the person who
has a family or given name the use of which causes confusion or affects the
feelings of his/her family, the honor, legitimate rights and interests of such
person;
b/ Where an adoptive father or mother requests
to change the family and/or given name of an adopted child or when an adopted
child ceases to be an adopted child and he/she or his/her biological father or
mother requests to reclaim the family and/or given name which was given to
him/her by the biological father or mother;
c/ Where it is so requested by the biological
father or mother or the child when identifying the father and/or mother of the
child;
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e/ Where there is a change of the family name
and/or given name of a person who was lost from his/her childhood and has
discovered the origin of his/her bloodline;
f/ Where there is a change of the family name
and/or given name of a person whose gender has been re-determined;
g/ Other cases specified by law on civil status.
2. The change of the family name and/or given
name of a person who is full nine years or older must be consented by that
person.
3. The change of the family name and/or given
name of an individual shall neither change nor terminate the civil rights and
obligations which have been established under the former family name and/or
given name.
Article 28.- The right
to determine ethnicity
1. An individual upon his/her birth may have
his/her ethnicity determined in accordance with the ethnicity of his/her
biological mother and father. In cases where the biological father and mother
belong to two different ethnicities, the ethnicity of the child shall be
determined as the ethnicity of the father or the ethnicity of the mother in
accordance with practices or in accordance with the agreement of the biological
father and mother.
2. A person who has attained adulthood, the
biological father and mother or guardian of a minor may request competent state
agencies to re-determine his/her ethnicity in the following cases:
a/ To re-determine his/her ethnicity in
accordance with the ethnicity of the biological father or mother, if the father
and mother belong to two different ethnicities;
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3. Where the biological father or mother or the
guardian of a minor requests the re-determination of the ethnicity of a minor
who is full fifteen years or older under the provisions of Clause 2 of this Article,
the consent of such minor is required.
Article 29.- The right
to registration of birth
Individuals, when born, shall have the right to
have their births registered.
Article 30.- The right
to registration of death
1. When a person dies, his/her next of kin, the
house owner or the agency or organization to which the dead person belonged
must register the death of such person.
2. If a newborn infant dies after birth, the
infant's birth and death must be registered; if the infant dies before or
immediately upon birth, the infant's birth and death must not be registered.
Article 31.- The right
of an individual with respect to his/her picture
1. An individual shall have the right with
respect to his/her picture.
2. The use of a picture of an individual must
have his/her consent; where such person has died, lost his/her civil act
capacity or is under full fifteen years old, the consent of his/her father,
mother, husband, wife, adult children or representative is required, unless it
is for State interests, public interests or otherwise provided for by law.
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Article 32.- The right
to safety of life, health and body
1. Individuals shall shave have the right to
safety of life, health and body.
2. When a person discovers another person who
has got an accident or is sick whereby his/her life is threatened, the person
who discovers him/her shall have the responsibility to deliver such person to a
medical establishment; the medical establishment must not refuse to provide
treatment to the person and shall have to utilize all available means and
capabilities to cure him/her.
3. The application of new curative methods on
the body of a person and the anesthetization, surgery, amputation, implantation
and grafting of body organs must have his/her consent; if the person is a
minor, has lost the civil act capacity or is an unconscious patient, the
consent of his/her father, mother, guardian or next of kin is required; in
cases where there is a threat to the life of a patient which cannot wait for
the opinions of the above-said persons, a decision of the head of the medical
establishment is required.
4. A post-mortem operation shall be performed in
the following cases:
a/ Where it is so consented by the decedent
before his/her death;
b/ Where it is so consented by the decedent's
father, mother, wife, husband, adult children or guardian when there is no
opinion of the decedent before he/she dies;
c/ Where it is so decided by a competent medical
organization or a competent state agency in case of necessity.
Article 33.- The right
to donation of body organs
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The donation and use of body organs shall comply
with the provisions of law.
Article 34.- The right
to donation of corpses, body organs after death
Individuals shall have the right to donate their
corpses, body organs after they die for the purpose of medical treatment of
other persons or scientific research.
The donation and use of corpses, body organs of
dead persons shall comply with the provisions of law.
Article 35.- The right
to receive body organs
Individuals shall have the right to receive body
organs of other persons for their medical treatment.
It is strictly forbidden to receive and use body
organs of other persons for commercial purposes.
Article 36.- The right
to re-determination of gender
Individuals shall have the right to the
re-determination of their gender.
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The re-determination of gender shall comply with
the provisions of law.
Article 37.- The right
to protection of honor, dignity and prestige
Individuals' honor, dignity and prestige shall
be respected and protected by law.
Article 38.- The right
to personal secrets
1. An individual's rights to personal secrets
shall be respected and protected by law.
2. The collection and publication of information
and materials on the private life of an individual must be consented by that
person; in cases where that person has died, lost his civil act capacity or is
under full fifteen years, the consent of his/her father, mother, wife, husband,
adult children or representative is required, except for cases where the
collection and publication of information and materials are made by decision of
a competent agency or organization.
3. Letters, telephones, telegrams, other forms
of electronic information of individuals shall be safely and confidentially
guaranteed.
The inspection of an individual's letters,
telephones, telegrams and/or other forms of electronic information may be
performed only in cases where it is so provided for by law and decided by
competent state agencies.
Article 39.- The right
to marriage
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The freedom of marriage between persons
belonging to different ethnicities and/or religions, between religious and
non-religious persons and between Vietnamese citizens and foreigners shall be
respected and protected by law.
Article 40.- The right
to equality between husband and wife
Husband and wife are equal to each other, shall
have the same rights and obligations in all respects in family and in civil
relations and shall together build a plentiful, equitable, progressive, happy
and lasting family.
Article 41.- The right
to enjoy mutual care among family members
The members of a family shall have the right to
enjoy mutual care and assistance in accordance with the fine moral traditions
of the Vietnamese family.
Children and grandchildren who are minors shall
benefit from the care and upbringing of the mother, father and grandparents;
children and grand-children shall have the duty to respect, care for and
support their parents and grandparents.
Article 42.- The right
to divorce
A wife or husband or both the wife and the
husband shall have the right to request the Court to solve their divorce.
Article 43.- The right
to recognize or not to recognize a father, mother or child
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2. A person who is recognized as a father,
mother or child of another person shall have the right to request a competent
state agency to determine him/her as not being father, mother or child of that
person.
Article 44.- The right
to adopt a child and the right to be accepted as an adoptive child
An individual's right to adopt a child and right
to be accepted as an adoptive child shall be recognized and protected by law.
The adoption of a child and the process of being
accepted as an adoptive child shall comply with the provisions of law.
Article 45.- The right
to citizenship
An individual shall have the right to have a
citizenship.
The recognition of, change to, the
naturalization or relinquishment of the Vietnamese citizenship shall comply with
the provisions of law on citizenship.
Article 46.- The
inviolable right to place of residence
Individuals shall have the inviolable right to
their places of residence.
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The search of a place of residence of a person
shall be performed only in cases where it is so provided for by law and where
there is a warrant from a competent state agency; the search must comply with
the order and procedures specified by law.
Article 47.- The right
to freedom of belief and religion
1. Individuals shall have the right to freedom
of belief and religion, and to adhere to or not to adhere to a religion.
2. No one may infringe upon the freedom of
belief and religion, or abuse beliefs or religions to infringe upon State
interests, public interests or legitimate rights and interests of other
persons.
Article 48.- The right
to freedom of movement, freedom of residence
1. Individuals shall have the right to freedom
of travel and freedom of residence.
2. An individual's freedom of travel and/or
freedom of residence may be restricted only by decision of a competent state
agency and in accordance with the order and procedures specified by law.
Article 49.- The right
to work
Individuals shall have the right to work.
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Article 50.- The right
to freedom of business
Individuals' right to freedom of business shall
be respected and protected by law.
Individuals shall have the right to choose the
forms, areas and lines of business, to establish enterprises, to freely enter
into contracts and hire labor, and other rights in accordance with the
provisions of law.
Article 51.- The right
to freedom of research, creation
1. Individuals shall have the right to freedom
of scientific and technical research, inventions, innovations to improve
techniques and rationalize production; the right to literary and art creation
and critique, and to participation in other activities of research and/or
creation.
2. The right to freedom of research and/or
creation shall be respected and protected by law. No one shall have the right
to hinder or restrict an individual's right to freedom of research and
creation.
Section 3. PLACE OF
RESIDENCE
Article 52.- Place of
residence
1. The place of residence of an individual is
the place where such person permanently lives.
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Article 53.- Place of
residence of minors
1. The place of residence of a minor is the
place of residence of his/her parents; if the parents have separate places of
residence, the place of residence of the minor shall be the place of residence
of the father or mother with whom the minor permanently lives.
2. A minor may have a place of residence
separate from the place of residence of his/her father and mother, if it is so
agreed by his/her parents or so provided for by law.
Article 54.- Place of
residence of wards
1. The place of residence of a ward is the place
of residence of his/her guardian.
2. A ward may have a place of residence separate
from the place of residence of his/her guardian, if it is so agreed by the
guardian or so provided for by law.
Article 55.- Place of
residence of husband and wife
1. The place of residence of a husband and a
wife is the place where the husband and the wife permanently live together.
2. A husband and a wife may have separate places
of residence, if they so agree upon.
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1. The place of residence of military personnel
currently performing his/her military obligations is the place where the
military personnel's unit is stationed.
2. The place of residence of an army officer,
professional military personnel, defense worker or official is the place where
his/her unit is stationed, except in cases where he/she has a place of
residence as specified in Clause 1, Article 52 of this Code.
Article 57.- Place of
residence of persons performing itinerant occupations
The place of residence of a person performing an
itinerant occupation on a ship, boat or other means for itinerant work is the
place of registration of such ship, boat or means, except for cases where
he/she has a place of residence specified in Clause 1, Article 52 of this Code.
Section 4. GUARDIANSHIP
Article
58.- Guardianship
1. Guardianship is a task whereby an individual
or organization (hereinafter referred collectively to as guardian) is required
by law or appointed to take care of and protect legitimate rights and interests
of a minor or a person who has lost his/her civil act capacity (hereinafter
referred collectively to as ward).
2. Wards include:
a/ Minors who have lost their mothers and
fathers, whose parents are unidentifiable, or whose parents have both lost
their civil act capacity or have had their capacity for civil acts restricted,
whose parents have had their parental rights restricted by the Court, or whose
parents are still alive but have no conditions to take care of and to educate
such minors, and if their parents so request;
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3. Persons who are under full fifteen years old
as provided for at Point a, Clause 2 of this Article and persons defined at
Point b, Clause 2 of this Article must have guardians.
4. A person may be a guardian for more than one
person, but a person may be a ward of only one guardian, except in cases where
the guardian is his/her father, mother or grandfather, grand-mother as
specified in Clause 2 of Article 61 or Clause 3 of Article 62 of this Code.
Article
59.- Supervision of guardianship
1. The next of kin of wards shall have the
responsibility to appoint their representatives to supervise the guardianship
in order to monitor, urge, inspect the guardians in the performance of their
guardianship, consider and settle in time the guardians' proposals and/or
petitions related to the guardianship.
The wards' next of kin are their spouses,
parents, children; if none of these people is available, the wards' next of kin
shall be their grandparents, siblings; if none of these persons is available,
the wards' next of kin shall be their uncles and ants.
2. In cases where a ward has none of his/her
next of kin or his/her next of kin cannot nominate any one to supervise the
guardianship as provided for in Clause 1 of this Article, the People's
Committee of the commune, ward, or district township where the guardian resides
shall appoint a person to supervise the guardianship.
3. The persons who supervise the guardianship
must be those who have full civil act capacity.
Article
60.- Requirements for individuals to be guardians
Persons who meet all of the following
requirements may act as guardians:
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2. Having good virtues; being not examined for
penal liability or having had their criminal records written off after having
been sentenced for one of the crimes of intentionally infringing upon the life,
health, honor, dignity or property of other persons;
3. Having necessary conditions to ensure the
performance of the guardianship.
Article 61.- The
natural guardian of a minor
The natural guardian of a minor who has lost
both his/her mother and father, whose parents are unidentifiable, or whose
parents have both lost their civil act capacity or have had their civil act capacity
restricted, whose parents have had their parental rights restricted by the
Court, or whose parents do not have conditions to take care of and to educate
the minor, and if the parents so request, shall be determined as follows:
1. In cases where it is not otherwise agreed
upon by the biological siblings, the eldest brother or sister shall be the
guardian for his/her younger siblings who are minors; if the eldest brother or
sister does not fully meet the conditions for being a guardian, the next eldest
brother or sister shall be the guardian;
2. In cases where there are no biological
siblings or where the biological siblings do not fully meet the requirements to
be a guardian, the paternal grandfather, grandmother or the maternal
grandfather, grandmother shall be the guardian; if none of these persons fully
meet the conditions to be a guardian, the uncle or ant of that person shall be
the guardian.
Article 62.- The
natural guardian of a person who has lost his/her civil act capacity
1. In cases where the wife has lost her civil
act capacity, her husband shall be her guardian; if the husband has lost his
civil act capacity, his wife shall be his guardian.
2. In cases where the father and mother have
both lost their civil act capacity or where either of them has lost the civil
act capacity while the other does not fully meet the requirements to be a
guardian, the eldest child shall be the guardian; if the eldest child does not
fully meet the requirements to be a guardian, the next eldest child shall be the
guardian.
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Article
63.- Appointment of a guardian
In cases where a minor or a person who has lost
his/her civil act capacity does not have a natural guardian as provided for in
Article 61 and Article 62 of this Code, the People's Committee of the commune,
ward or district township where the ward resides shall have the responsibility
to appoint a guardian or propose an organization to assume the guardianship.
Article
64.- Procedures for appointing a guardian
1. The appointment of a guardian must be made in
writing, clearly stating the reason for appointing the guardian, the specific
rights and obligations of the guardian and the status of the ward's property.
2. The appointment of a guardian must be
consented by the person who is appointed to be a guardian.
Article 65.- Obligations
of guardians towards wards aged under full fifteen years
The guardian of a person aged under full fifteen
years shall have the following obligations:
1. To take care of and educate the ward;
2. To represent the ward in civil transactions,
except where it is provided for by law that wards aged under full fifteen years
can establish and perform civil transactions by themselves;
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4. To protect legitimate rights and interests of
the ward.
Article 66.- Obligations
of guardians towards wards aged between full fifteen years and under full
eighteen years
The guardian of a person aged between full
fifteen years and under full eighteen years shall have the following
obligations:
1. To represent the ward in civil transactions,
except where it is provided for by law that wards who are aged between full
fifteen years and under full eighteen years can establish and perform civil
transactions by themselves;
2. To manage the property of the ward;
3. To protect legitimate rights and interests of
the ward.
Article
67.- Obligations of guardians towards wards who have lost their civil act
capacity
The guardian of a person who has lost his/her
civil act capacity shall have the following obligations:
1. To take care of and ensure the medical
treatment for the ward;
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3. To manage the property of the ward;
4. To protect legitimate rights and interests of
the ward.
Article 68.- Rights of
guardians
A guardian shall have the following rights:
1. To use the property of the ward in order to
take care of and pay for the needs of the ward;
2. To be paid for all expenses necessary for the
management of the ward's property;
3. To represent the ward in the establishment
and performance of civil transactions in order to protect legitimate rights and
interests of the ward.
Article
69.- Management of property of wards
1. Guardians must manage the property of their
wards as if it were their own property.
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Guardians must not donate the property of their
wards to other persons.
3. Civil transactions between guardians and
their wards in connection with the latter's property shall be invalid, except
for cases where such transactions are performed in the interests of the wards
and agreed upon by the guardianship supervisors.
Article
70.- Replacement of guardians
1. A guardian may be replaced in the following
cases:
a/ The guardian no longer meets all of the
requirements specified in Article 60 of this Code;
b/ The guardian being an individual dies or has
been declared missing by the Court or being an organization which has
terminated its operation;
c/ The guardian seriously violates a guardian's
obligations;
d/ The guardian proposes his/her replacement and
another person agrees to assume the guardianship.
2. In case of changing a natural guardian, the
persons defined in Article 61 and Article 62 of this Code shall assume the role
of a natural guardian; if there is no natural guardian, the appointment of a
guardian shall comply with the provisions of Article 63 of this Code.
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Article 71.- Transfer
of the guardianship by the appointed guardian
1. Upon the change of an appointed guardian, the
person who has performed the guardianship shall have to transfer the
guardianship to his/her replacement within fifteen days as from the date a new
guardian is found.
2. The transfer of guardianship must be made in
writing, clearly stating the reason for the transfer and the status of the
ward's property at the time of transfer. The person who appointed the guardian
and the person who supervises the guardianship shall witness the transfer of
guardianship.
3. In case of change of a guardian for the
reason that the guardian being an individual has died, or been declared by the
court as having his/her civil act capacity restricted, losing his/her civil act
capacity or as missing; or that the guardian being an organization has
terminated its operation, the person who appointed the guardian shall make a
record thereon, clearly stating the status of the ward's property and the
rights and obligations which have arisen in the course of performing the
guardianship for transfer to the new guardian to the witness of the
guardianship supervisor.
4. The transfer of guardianship must be
recognized by the People's Committee of the commune, ward or district township
where the new guardian resides.
Article
72.- Termination of guardianship
A guardianship shall be terminated in the
following cases:
1. The ward has obtained full civil act
capacity;
2. The ward has died;
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4. The ward has been adopted.
Article
73.- Consequences of the termination of guardianship
1. When a guardianship is terminated, the guardian
must settle up the property with the ward or with the mother and/or father of
the ward within three months from the time the guardianship terminates.
In cases where the ward dies, the guardian must
settle up the property with the ward's heirs within three months as from the
time the guardianship terminates; if the ward's heirs are unidentifiable upon
the expiry of such time limit, the guardian shall continue to manage the
property of the ward until the property has been settled in accordance with the
provisions of law on inheritance and shall notify such to the People's
Committee of the commune, ward or district township where the ward resides.
The settlement of property shall be carried out
under the supervision of the guardianship supervisors.
2. The rights and obligations arising from civil
transactions in the interest of a ward shall be performed by the guardian as
follows:
a/ To transfer them to the ward when the ward
has obtained full civil act capacity;
b/ To transfer them to the ward's father and/or
mother in cases specified in Clause 3 and Clause 4, Article 72 of this Code;
c/ To transfer them to the ward's heir(s) when
the ward dies.
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Article 74.- Request
for notice of search for persons who are absent from their places of residence
and the management of their property
When a person has disappeared for six
consecutive months or more, the person with related rights or interests shall
have the right to request the Court to issue a notice of search for the person
absent from his/her place of residence under the provisions of civil procedure
law and may request the Court to apply measures for management of the property
of the absent person in accordance with the provisions of Article 75 of this
Code.
Article
75.- Management of the property of a person who is absent from his/her
place of residence
1. At the request of the person with related
rights or interests, the Court shall hand over the property of a person absent
from his/her place of residence to one of the following persons for management:
a/ The person who has been authorized by the
absent person to manage the latter's property shall continue to manage such
property;
b/ For a common property, the remaining
co-owner(s) shall manage such property;
c/ The property being currently managed by the
wife or the husband shall continue to be managed by the wife or the husband; if
the wife or the husband dies or loses her/his civil act capacity or has her/his
civil act capacity restricted, a child who has attained adulthood or the father
and/or mother of the absent person shall manage the latter's property.
2. In cases where there are none of the persons
defined in Clause 1 of this Article, the Court shall appoint a person among the
next of kin of the absent person to manage his/her property; if the absent
person does not have any next of kin, the Court shall appoint another person to
manage the property.
Article 76.- Duties of
the persons managing the property of persons absent from their places of
residence
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1. To keep and preserve the property of the absent
persons as if it were their own property;
2. To immediately sell the property being
subsidiary food crops or other products being in danger of decay;
3. To perform the absent persons' obligations to
support their dependents and/or to pay due debts with such persons' property
under the Court's decisions;
4. To hand back the property to the absent
persons upon their return and to notify the Court thereof; if they are at fault
in the management of property thereby causing damage, they must pay compensations
therefor.
Article 77.- Rights of
the persons managing the property of persons absent from their places of
residence
The persons managing the property of persons
absent from their places of residence shall have the following rights:
1. To manage the property of the absent persons;
2. To deduct a portion from the property of the
absent persons in order to perform the latter's obligations to support their
dependents and/or obligations to pay due debts;
3. To be paid for all expenses necessary for the
management of the property.
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1. When a person has disappeared for two
consecutive years or more and there is no reliable information on whether such person
is still alive or dead even though notification and search measures have been
fully applied in accordance with the civil procedure law, the Court may, at the
request of a person with related rights or interests, declare such person
missing. The two-year time limit shall be counted from the date the last
information on such person is obtained; if the date of the last information
cannot be determined, this time limit shall be counted from the first day of
the month following the month when the last information is received; if the
date and month of the last information cannot be determined, this time limit
shall be counted from the first day of the year following the year when the
last information is received.
2. In cases where the wife or the husband of a
person who has been declared missing files for a divorce, the Court shall grant
the divorce.
Article
79.- Management of the property of persons who have been declared missing
The persons currently managing the property of
the persons who are absent from their places of residence as provided for in
Clause 1, Article 75 of this Code shall continue to manage the property of such
persons when they are declared missing by the Court and have the rights and
duties specified in Article 76 and Article 77 of this Code.
In cases where a Court has resolved to permit
the wife or the husband of the person who has been declared missing to divorce,
the property of the missing person shall be handed over to the child(ren) who
has/have attained adulthood or to the mother and/or father of the missing
person for management; if there is no such person, the property shall be handed
over to the next of kin of the missing person for management; if there is no
next of kin, the Court shall appoint another person to manage the property.
Article 80.- Annulment
of the decision declaring a person missing
1. When a person who has been declared missing
returns or when there is reliable information that such person is still alive,
the Court shall, at the request of such person or a person with related rights
or interests, issue a decision to annul the decision declaring a person
missing.
2. A person who has been declared missing shall,
upon his/her return, be permitted to take back his/her property handed to
him/her by the property manager after paying the management expenses.
3. In cases where the wife or the husband of a
person who has been declared missing has been granted a divorce, the decision
permitting the divorce shall still be legally effective, despite the return of
the person who has been declared missing or the reliable information that such
person is still alive.
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1. A person with related rights or interests may
request the Court to issue a decision declaring that a person is dead in the
following cases:
a/ After three years as from the date the
Court's decision declaring a person missing takes legal effect there is still
no reliable information that such person is alive;
b/ The person has disappeared during a war and
five years from the end of the war, there is still no reliable information that
such person is alive;
c/ The person was hit by an accident,
catastrophe or a natural disaster and one year from the end of such accident,
catastrophe or natural disaster, there is still no reliable information that
such person is alive, unless otherwise provided for by law;
d/ The person has disappeared for five
consecutive years or more and there is no reliable information that such person
is still alive; this time limit shall be counted in accordance with the
provisions of Clause 1, Article 78 of this Code.
2. The Court shall, on a case-by-case basis,
determine the date of death of a person who has been declared dead, based on
the cases specified in Clause 1 of this Article.
Article 82.- Personal
relations and property relations of persons who have been declared dead by the
Court
1. When a decision of the Court declaring that a
person is dead becomes legally effective, all marriage and family relations and
other personal relations of such person shall be resolved as if a person had
died.
2. The property relations of a person whom the
Court has declared dead shall be resolved as if such person had died; the
property of such person shall be settled in accordance with the law on
inheritance.
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1. When a person who has been declared dead
returns or when there is reliable information that such person is still alive,
the Court shall, at the request of such person or of a person with related
rights or interests, issue a decision to annul the decision which declared that
such person was dead.
2. The personal relations of the person who has
been declared dead shall be restored when the Court issues a decision to annul
the decision which declared that such person was dead, except for the following
cases:
a/ Where the wife or the husband of the person
who has been declared dead was permitted by the Court for her or his divorce in
accordance with the provisions of Clause 2, Article 78 of this Code, the
decision permitting the divorce shall remain legally effective;
b/ Where the wife or the husband of the person
who has been declared dead has married another person, such marriage shall
remain legally effective.
3. A person who has been declared dead but is
still alive shall have the right to demand that the persons who received
his/her inheritance to return the property that still remains.
In cases where the heir of a person whom the
Court has declared dead is aware that such person is still alive, but
deliberately conceals such for the purpose of enjoying the inheritance, he/she
must return the entire property which he/she has received, including yields and
profits; if causing damage, he/she must pay compensation therefor.
Chapter IV
LEGAL PERSONS
Section 1. GENERAL
PROVISIONS ON LEGAL PERSONS
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An organization shall be recognized as a legal
person when it meets all the following conditions:
1. Being established lawfully;
2. Having a well-organized structure;
3. Possessing property independent from that of
individuals and other organizations, and bearing its own liability with such
property;
4. Independently entering into legal relations
in its own name.
Article
85.- Establishment of legal persons
A legal person may be established on the
initiative of an individual or an organization, or under a decision of a
competent state agency.
Article 86.- The civil
legal capacity of legal persons
1. The civil legal capacity of a legal person is
its capability to have civil rights and obligations consistent with the purpose
of its operation.
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3. The representative at law or the authorized
representative of a legal person shall act in the name of the legal person in
civil relations.
Article 87.- The name
of a legal person
1. A legal person must have its own name in the
Vietnamese language, which shall clearly indicate the legal person's
organizational form and distinguish it from other legal persons operating in
the same domain.
2. A legal person must use its own name in civil
transactions.
3. The name of a legal person shall be
recognized and protected by law.
Article 88.- The
charter of a legal person
1. In cases where it is provided for by law that
a legal person must have a charter, the charter of the legal person must be
approved by the founding members or the members' congress; the charter of the
legal person must be recognized by a competent state agency, if it is so
provided for by law.
2. The charter of a legal person shall have the
following principal contents:
a/ Name of the legal person;
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c/ Its head-office;
d/ Its charter capital, if any;
e/ Its organizational structure, the procedures
for nomination, election, appointment, relief from office and dismissal; duties
and powers of the positions in the managing body and other bodies;
f/ Rights and obligations of the members;
g/ Procedures for amending and supplementing the
charter;
h/ Conditions for consolidating, merging,
dividing, separating or dissolving the legal person.
3. Amendments and supplements to the charter of a
legal person must be recognized by a competent state agency, if it is so
provided for by law.
Article 89.- The
managing body of a legal person
1. A legal person must have its managing body.
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Article 90.- The
head-office of a legal person
The head-office of a legal person is the place
where its managing body is located.
The contact address of a legal person shall be
the address of its head-office. The legal person may select another place as
its contact address.
Article 91.- The
representative of a legal person
1. The representative of a legal person may be a
representative at law or an authorized representative. The representative of a
legal person must abide by the provisions on represen-tation in Chapter VII,
Part One of this Code.
2. The representative at law of a legal person
shall be provided in the legal person's charter or the decision on the
establishment of the legal person.
Article
92.- Representative offices and branches of legal persons
1. Legal persons may establish representative
offices and/or branches at places other than their head- offices.
2. Representative offices are dependent units of
legal persons, having the tasks of representing under authorization the
interests of the legal persons and protecting such interests.
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4. Representative offices and branches are not
legal persons. The heads of representative offices or branches shall perform
tasks under authorization of their legal persons within the authorization scope
and duration.
5. Legal persons shall have civil rights and
obligations arising from civil transactions established and performed by their
representative offices and/or branches.
Article 93.- Civil
liability of legal persons
1. A legal person shall bear civil liability for
the exercise of its civil rights and performance of its civil obligations
established and performed by its representative in the name of the legal
person.
2. A legal person shall bear civil liability
with its own property; shall not bear civil liability for its members with
respect to civil obligations established and performed by such members not in
the name of the legal person.
3. Members of a legal person shall not bear
civil liability for the legal person with respect to civil obligations
estab-lished and performed by the legal person.
Article
94.- Consolidation of legal persons
1. Legal persons of the same type may
consolidate with one another to form a new legal person under the provisions of
the charters, the agreement among such legal persons or under the decision of a
competent state agency.
2. After the consolidation, the former legal
persons shall terminate; the civil rights and obligations of such legal persons
shall be transferred to the new legal person.
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1. A legal person may be merged (hereinafter
referred to as the merged legal person) into another legal person of the same
type (hereinafter referred to as the merging legal person) under the provisions
of the charter, the agreement among such legal persons or under the decision of
a competent state agency.
2. After the merger, the merged legal person
shall terminate; the civil rights and obligations of such legal person shall be
transferred to the merging legal person.
Article 96.- Division
of legal persons
1. A legal person may be divided into many legal
persons under the provisions of its charter or the decision of a competent
state agency.
2. After division, the divided legal person
shall terminate; the civil rights and obligations of such legal person shall be
transferred to the new legal persons.
Article
97.- Separation of legal persons
1. A legal person may be separated into many
legal persons under the provisions of its charter or the decision of a
competent state agency.
2. After separation, the separated legal person
and the separating legal persons shall perform their rights and obligations in
accordance with the purposes of their respective operations.
Article
98.- Dissolution of legal persons
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a/ Under the provisions of its charter;
b/ By the decision of a competent state agency;
c/ Upon the expiration of the term of operation
stated in its charter or in the decision of a competent state agency.
2. Before being dissolved, a legal person must
fulfill its property obligations.
Article
99.- Termination of legal persons
1. A legal person shall terminate in the
following cases:
a/ Being consolidated, merged, divided or
dissolved under the provisions of Articles 94, 95, 96 and 98 of this Code;
b/ Being declared bankrupt under the provisions
of law on bankruptcy.
2. A legal person shall terminate from the time
its name is deleted from the legal person register or from the time determined
in the decision of a competent state agency.
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Section 2. TYPES OF LEGAL
PERSON
Article 100.- Types
of legal person
1. State agencies, units of the armed forces;
2. Political organizations, socio-political
organizations;
3. Economic organizations;
4. Socio- political and professional
organizations; social organizations, socio-professional organizations
5. Social funds, charity funds;
6. Other organizations which meet all the conditions
specified in Article 84 of this Code.
Article 101.- Legal
persons being state agencies or armed force units
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2. State agencies or armed force units shall
bear civil liability related to the performance of their functions and tasks
with funds allocated from the State budget.
3. In cases where state agencies or armed force
units engage in activities generating revenues in accordance with the
provisions of law, they shall bear civil liability for revenue-generating
activities with the property obtained from such activities.
Article 102.- Legal
persons being political organizations or socio-political organizations
1. Political organizations or socio-political
organizations, which manage, use or dispose of property under their respective
ownership for the purpose of achieving the political or social objec-tives in
accordance with their respective charters, shall be legal persons when
participating in civil relations.
2. The property of a political organization or socio-political
organization cannot be divided to its members.
3. Political organizations or socio-political
organizations shall bear civil liability with their own property, except those,
which, according to the provisions of law, cannot be used for bearing civil
liability.
Article 103.- Legal
persons being economic organizations
1. State enterprises, co-operatives, limited
liability companies, joint-stock companies, foreign-invested enterprises and
other economic organizations which meet all the conditions stipulated in
Article 84 of this Code shall be legal persons.
2. Economic organizations must have their own
charters.
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Article 104.- Legal
persons being socio-political and professional organizations, social
organizations or socio-professional organizations
1. Socio-political and professional
organizations, social organizations or socio-professional organizations, which
are permitted to be established and have their charters recognized by competent
state agencies, and have members being individuals or organizations that
voluntarily contribute property or membership fees with a view to serving the
purposes of the organizations and the common needs of the members, shall be
legal persons when participating in civil relations.
2. Socio-political and professional
organizations, social organizations or socio-professional organizations shall
bear civil liability with their own property.
3. Where socio-political and professional
organizations, social organizations or socio-professional organizations
terminate their operation, their property must not be divided to their members
but be settled according to the provisions of law.
Article 105.- Legal
persons being social funds or charity funds
1. Social funds or charity funds, which are
permitted to be established and have their charters recognized by competent
state agencies and operate for the purpose of promoting cultural and/or
scientific development, charity and other social and humanitarian purposes,
which do not aim to gain profits, shall be legal persons when participating in
civil relations.
2. The property of the social funds or charity
funds shall be managed, used and disposed of in accordance with the provisions
of law and in conformity with such funds' operation purposes specified by their
respective charters.
3. Social funds and charity funds shall be
permitted to carry out only activities stipulated in their respective charters
recognized by competent state agencies and within the limit of their property
and must bear civil liability with such property.
4. The organization which estab-lishes a social
fund or a charity fund shall not bear civil liability with the property under
its ownership for the activities of the fund and must not divide up the
property of the fund in the course of the fund's operation.
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Chapter V
FAMILY HOUSEHOLDS AND
COOPERATIVE GROUPS
Section 1. FAMILY
HOUSEHOLDS
Article 106.- Family
households
Family households in which members have common
property and jointly contribute their efforts and labor to their common
economic activities in agricultural, forestry or fishery produc-tion or in a
number of other production and/or business domains defined by law shall be
subjects when participating in civil relations in such domains.
Article
107.- Representatives of family households
1. The head of a family household shall be the
representative of the household in civil transactions for the common interests
of the household. The father, mother or another adult member may be the head of
the household.
The head of a family household may authorize
another adult member to represent the household in civil relations.
2. Civil transactions established and performed
in the common interest of a family household by the representative of the
household shall give rise to the rights and obligations of the entire family
households.
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The common property of a family household shall
comprise land use rights, the forest and/or planted forest use rights of the
family household, the property contributed or jointly created by household
members or presented as a common gift, or jointly inherited and other property
which the members agree to be the common property of the household.
Article
109.- Possession, use, disposal of the common property of family households
1. Family household members shall possess and
use the common property of their households by mode of agreement.
2. The disposal of property being means of
production, common property of great value of family households must be agreed upon
by members aged full fifteen years or older; for other common property, the
disposal thereof must be agreed upon by the majority of members aged full
fifteen years or older.
Article 110.- Civil
liability of family households
1. Family households must bear civil liability
for the exercise of civil rights and the performance of civil obligations,
which are established and performed in the name of the family households by
their respective representatives.
2. Family households shall bear civil liability
with their common property; if the common property is insufficient to fulfill
their respective common obligations, their members must bear joint liability
with their own property.
Section 2. COOPERATIVE
GROUPS
Article
111.- Cooperative groups
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Cooperative groups, which meet all the
conditions to become legal persons in accordance with the provisions of law,
shall register their activities in the capacity of legal persons at competent
state agencies.
2. A cooperation contract shall have the
following principal contents:
a/ The purpose and term of the cooperation
contract;
b/ The full names and places of residence of the
head and other members of the group;
c/ The levels of property contribution, if any;
the mode of distributing the yields and profits among the group members;
d/ The rights, obligations and responsibilities
of the head and the members of the group;
e/ The conditions for accepting new group
members or leaving the cooperative group;
f/ The conditions for terminating the
cooperative group;
g/ Other agreements.
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Cooperative group members shall be individuals
who are full eighteen years or older and have full civil act capacity.
Cooperative groups shall have the right to enter
into labor contracts with persons who are not their members to perform certain
tasks.
Article
113.- Representatives of cooperative groups
1. The representatives of cooperative groups in
civil transactions shall be their heads appointed by the group members.
The heads of cooperative groups may authorize
group members to perform certain tasks necessary for the groups.
2. Civil transactions established and performed
by the representatives of cooperative groups for the purpose of the groups'
operations under decisions of a majority of the group members shall give rise
to the rights and obligations of the entire cooperative groups.
Article
114.- Property of cooperative groups
1. The property contributed or jointly created
by group members and the property donated to the whole groups shall be the
common property of such cooperative groups.
2. The group members shall manage and use the
property of the cooperative groups in accordance with the agreed mode.
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Article 115.- Obligations
of group members
Group members shall have the following
obligations:
1. To implement cooperation on the principles of
equality, mutual benefit, mutual assistance and assurance of the common
interests of the cooperative group;
2. To compensate for damage caused to their
cooperative group as a result of their own fault.
Article 116.- Rights
of group members
Group members shall have the following rights:
1. To enjoy yields and profits gained from the
operations of their cooperative group as agreed upon;
2. To participate in deciding on matters
relevant to the operations of their cooperative group and in inspecting the
operations of the cooperative group.
Article 117.- Civil
liability of cooperative groups
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2. Cooperative groups shall bear civil liability
with their common property; if the common property is insufficient to perform
their common obligations, their group members must jointly bear civil liability
with their own property proportional to their respective contributions.
Article
118.- Acceptance of new group members
Cooperative groups may accept new group members,
if so consented by a majority of the group members, unless otherwise agreed
upon.
Article 119.- Leaving
cooperative groups
1. Group members shall have the right to leave
their cooperative groups under the agreed conditions.
2. Group members leaving their cooperative
groups shall have the right to request the return of the property which they
have contributed to the cooperative groups and to be distributed their share of
the property in the common property and must discharge their obligations
towards the cooperative groups as agreed upon; if the distribution of property
in kind affects the continuation of the groups' operation, the property shall
be valued in money for distribution.
Article
120.- Termination of cooperative groups
1. A cooperative group shall terminate in the
following cases:
a/ Upon the expiry of the term stated in the
cooperation contract;
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c/ The group members agree to terminate the
cooperative group.
In case of termination, cooperative groups must
report thereon to the commune/ward/township People's Committees which
authenticated the cooperation contracts.
2. Cooperative groups shall terminate under
decisions of competent state agencies in cases specified by law.
3. Upon their termination, cooperative groups
must settle their debts; if the common property is insufficient to repay the
debts, the group members' own property must be used for the settlement in
accordance with the provisions of Article 117 of this Code.
In cases where all debts have been repaid and
the group is still left with common property, such property shall be divided to
the group members in proportion to each person's contribution, unless otherwise
agreed upon.
Chapter VI
CIVIL TRANSACTIONS
Article 121.- Civil
transactions
A civil transaction is a contract or unilateral
legal act which gives rise to, changes or terminates civil rights and/or
obligations.
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1. A civil transaction shall be effective when
it meets all the following conditions:
a/ The persons participating in the transaction
have the civil act capacity;
b/ The purpose and contents of the transaction
do not violate prohibitory provisions of law and are not contrary to social
ethics;
c/ The persons participating in the civil
transaction act completely voluntarily;
2. The forms of civil transactions shall be the
conditions for such transactions to be effective in cases where it is so
provided for by law.
Article
123.- Objectives of civil transactions
The objectives of civil transactions are
legitimate interests which the parties wish to obtain when establishing such
transactions.
Article 124.- Forms
of civil transactions
1. A civil transaction shall be expressed
verbally, in writing, or through specific acts.
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2. In cases where it is provided for by law that
a civil transaction must be expressed in writing, notarized, authenticated,
registered or permitted, such provisions must be complied with.
Article
125.- Conditional civil transactions
1. In cases where the parties have agreed on the
conditions which shall give rise to or cancel a civil transaction, the civil
transaction shall arise or be cancelled upon the occurrence of such conditions.
2. In cases where the conditions which give rise
to or cancel a civil transaction cannot occur due to the act of intentional
hindrance of one party or a third person, such conditions shall be considered
having occurred; if one party or a third person exerts impacts to deliberately
promote the occurrence of conditions so as to give rise to or cancel the civil
transaction, such conditions shall be considered having not occurred.
Article
126.- Interpretation of civil transactions
1. In cases where a civil transaction may be
understood in different ways, such transaction must be interpreted in the
following order:
a/ According to the true aspirations of the parties
when the transaction is established;
b/ According to the meaning consistent with the
objective of the transaction;
c/ According to the practices of the locality
where the transaction is established.
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Article 127.- Invalid
civil transactions
Civil transactions which fail to satisfy one of
the conditions specified in Article 122 of this Code shall be invalid.
Article 128.- Civil
transactions which are invalid due to violation of prohibitory provisions of
law or contravention of social ethics
Civil transactions with purposes and contents
violating prohibitory provisions of law or contravening social ethics shall be
invalid.
Prohibitory provisions of law mean the
provisions of law which do not permit subjects to perform certain acts.
Social ethics are common standards of conduct
among people in social life, which are recognized and respected by the
community.
Article 129.- Civil
transactions invalid due to falsity
When the parties falsely establish a civil
transaction in order to conceal another transaction, the false transaction
shall be invalid and the concealed transaction remains valid, except in cases
where it is also invalid under the provisions of this Code;
In cases where a false transaction is
established with a view to shirking the responsibility toward a third person,
such transaction shall also be invalid.
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When a civil transaction is established or
performed by a minor or by a person who has lost his/her civil act capacity or
whose civil act capacity is restricted, the Court shall, at the request of the
representative of that person, declare such transaction invalid, if it is
provided for by law that such transaction must be established and performed by
the representative of that person.
Article 131.- Civil
transactions invalid due to mistakes
When a party has established a transaction due
to its misunderstanding of the contents of the transaction due to unintentional
mistakes made by the other party, it shall have the right to request the other
party to change the contents of such transaction; if the other party does not
accept such request, the mistaken party shall have the right to request the
Court to declare the transaction invalid.
The cases where a party has intentionally made
mistakes, thus making the other party misunderstand the contents of the
transaction shall be settled in accordance with the provisions of Article 132
of this Code.
Article 132.- Civil
transactions invalid due to deception or intimidation
When a party participates in a civil transaction
due to being deceived or intimidated, it shall have the right to request the
Court to declare such civil transaction invalid.
Deception in a civil transaction means an
intentional act of a party or a third person, aiming to induce the other party
to misunderstand the subject, the nature of the object or the content of the
civil transaction and thus to agree to enter into such transaction.
Intimidation in a civil transaction means an
intentional act of a party or a third person, thus compelling the other party
to perform the civil transaction in order to avoid damage to the life, health,
honor, reputation, dignity and/or property of his/her own or of his/her father,
mother, wife, husband or children.
Article 133.- Civil
transactions invalid due to establishment by persons incapable of being aware
of and controlling their acts
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Article 134.- Civil
transactions invalid due to non-compliance with the prescribed forms
In cases where it is provided for by law that
the forms of civil transactions are conditions for civil transactions to be
valid but the parties fail to comply therewith, the Court or another competent
state agency shall, at the request of one or all of the parties, compel the
parties to comply with the provisions on forms of transactions within a given
period of time; past that time limit, if they still fail to comply with such
provisions, the transactions shall be invalid.
Article
135.- Partially invalid civil transactions
A civil transaction shall be partially invalid
when one part of the transaction is invalid, provided that such part does not
affect the validity of the remaining parts of the transaction.
Article 136.- The
statute of limitations for requesting the Court to declare a civil transaction
invalid
1. The statute of limitations for requesting the
Court to declare a civil transaction invalid as specified in Articles 130 thru
134 of this Code shall be two years, counting from the date the civil
transaction is established.
2. For civil transactions specified in Articles
128 and 129 of this Code, the statute of limitations for requesting the Court
to declare such civil transactions invalid shall not be restricted.
Article 137.- Legal
consequences of invalid civil transactions
1. Invalid civil transactions shall not give
rise to, change or terminate any civil rights and obligations of the parties
from the time of establishment thereof.
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Article
138.- Protection of the interests of a bona fide third party when a civil
transaction is invalid
1. In cases where a civil transaction is invalid
but the transacted property being a moveable not subject to ownership
registration has already been transferred to a bona fide third party through
another transaction, the transaction with the third party shall still be valid,
except for the case specified in Article 257 of this Code.
2. In cases where the transacted property being
an immoveable or a moveable subject to ownership registration has already been
transferred to a bona fide third party through another transaction, the
transaction with the third party shall be invalid, except for cases the bona
fide third party receives such property through auction or transaction with a
person who, under court judgment or decision of a competent state agency, was
the owner of the property, but later is not the owner of the property as the
court judgment or decision is cancelled or modified.
Chapter VII
REPRESENTATION
Article
139.- Representation
1. Representation is the act of a person
(hereinafter referred to as the representative) to establish and perform a civil
transaction in the name and interests of another person (hereinafter referred
to as the represented person) within the scope of representation.
2. Individuals, legal persons or other subjects
may establish and/or perform civil transactions through their representatives.
Individuals must not allow other persons to represent them, if the law provides
that they must establish and perform the transactions themselves.
3. Representation relations shall be established
under law or under authorization.
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5. The representatives must have full civil act
capacity, except for the cases specified in Clause 2, Article 143 of this Code.
Article
140.- Representation at law
Representation at law is the representation
provided for by law or decided by a competent state agency.
Article
141.- Representatives at law
Representatives at law shall include:
1. Fathers and/or mothers with respect to
children who are minors;
2. Guardians with respect to wards;
3. Persons appointed by the Court with respect
to persons with a restricted capacity for civil acts;
4. Heads of legal persons as prescribed by the
charters of the legal persons or decided by competent state agencies;
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6. Heads of cooperative groups with respect to
cooperative groups;
7. Other persons as specified by law.
Article
142.- Representation under authorization
1. Representation under authorization is the
representation established under an authorization between the representative
and the represented person.
2. Forms of authorization shall be agreed upon
by the parties, except for cases where it is provided for by law that authorization
must be made in writing.
Article
143.- Representatives under authorization
1. Individuals, representatives at law of legal
persons may authorize other persons to establish and/or perform civil
transactions.
2. Persons aged between full fifteen years and
under eighteen years may be representatives under authorization, except for
cases where it is provided for by law that civil transactions must be
established and/or performed by persons aged full eighteen years or more.
Article 144.- Scope
of representation
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2. The scope of representation under
authorization shall be established in accordance with the authorization.
3. Representatives may only perform civil
transactions within the scope of representation.
4. Representatives must inform the third party
in civil transactions of the scope of their representation.
5. Representatives must not establish and/or
perform civil transactions with themselves or with the third party whom they
also represent, unless otherwise provided for by law.
Article
145.- Consequences of civil transactions established and/or performed by
persons without the authority of representation
1. Civil transactions established and/or
performed by persons without the authority of representation shall not give
rise to rights and obligations of the represented persons, except in cases where
the representatives or the represented persons give consent thereto. The
persons who effected transactions with the persons having no authority of
representation must notify such to the represented persons or their
representatives in order to get their replies within the prescribed time limit;
upon the expiry of such time limit, if no reply is given, such transactions
shall not give rise to rights and/or obligations for the represented persons,
but the persons having no authority of representation must still fulfill the
obligations towards the persons with whom they have effected the transactions,
except in cases where such persons knew or should have known about the
unauthorized representation.
2. Persons who effected transactions with
persons having no authority of representation shall be entitled to unilaterally
terminate the performance of, or annul, the established civil transactions and
to demand compensation for damage, except in cases where such persons knew or
should have known about the unauthorized representation and still effected the
transactions.
Article
146.- Consequences of civil transactions established and/or performed
ultra vires by representatives
1. Civil transactions established and/or
performed ultra vires by representatives shall not give rise to rights and/or
obligations of the represented persons for the portions of transactions
performed ultra vires, except in cases where the represented persons give
consent thereto or know but do not oppose it; if consent is not given, the representatives
shall have to fulfill the obligations towards the persons with whom they have
effected the transactions for the portions of the civil transaction beyond the
scope of their representation.
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3. In cases where the representatives and the
persons involved in the transactions with the representatives intentionally
establish and/or perform civil transactions ultra vires, thereby causing damage
to the represented persons, the representatives and such persons shall be
jointly liable for compensation.
Article
147.- Termination of representation of individuals
1. The representation at law of an individual
shall terminate in the following cases:
a/ The represented person has attained adulthood
or has had his/her civil act capacity restored;
b/ The represented person dies;
c/ Other cases specified by law.
2. The representation under authorization of
individuals shall terminate in the following cases:
a/ The authorization time limit has expired or
the authorized work has been completed;
b/ The authorizing persons revoke the
authorization, or the authorized persons refuse the authorization;
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Upon the termination of the authorized representation,
the representatives must fulfill the property obligations towards the
represented persons or the heirs of the represented persons.
Article
148.- Termination of representation of legal persons
1. The representation at law of legal persons
shall terminate when such legal persons cease to exist.
2. The representation under authorization of
legal persons shall terminate in the following cases:
a/ The authorization time limit has expired or
the authorized work has been completed;
b/ The representatives at law of the legal
persons revoke the authorization or the authorized persons refuse the
authorization;
c/ The legal persons cease to exist or the
authorized persons die, have been declared by the Court as having lost their
civil act capacity, having their civil act capacity restricted, having been
missing or dead.
Upon the termination of representation under
authorization, the representatives must fulfill the property obligations
towards the authorizing legal persons or inheriting legal persons.
Chapter VIII
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Article 149.- Time
limit
1. A time limit is a period of time determined
from one point of time to another point of time.
2. A time limit may be determined by the minute,
hour, day, week, month, year or by an event which may occur.
Article
150.- Application of the method of calculating a time limit
1. The method of calculating a time limit shall
comply with the provisions of this Code, unless otherwise agreed upon or
provided for by law.
2. Time limits shall be calculated according to
the solar calendar.
Article
151.- Provisions on time limits and the point of time for calculating a
time limit
1. In cases where the parties have agreed that
the time limit shall be one year, half a year, a month, half a month, a week, a
day, an hour or a minute and where the lengths of time do not take place
consecutively, such time limit shall be calculated as follows:
a/ One year means 365 days;
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c/ One month means 30 days;
d/ Half a month means 15 days;
e/ One week means 7 days;
f/ One day means 24 hours;
g/ One hour means 60 minutes;
h) One minute means 60 seconds.
2. In cases where the parties have agreed on the
point of time to be at the beginning of a month, the middle of a month, or the
end of a month, such point of time shall be defined as follows:
a/ The beginning of a month is the first day of
the month;
b/ The middle of a month is the 15th day of the
month;
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3. In cases where the parties have agreed on the
point of time to be at the beginning of a year, the middle of a year, or the
end of a year, such point of time shall be defined as follows:
a/ The beginning of a year is the first day of
January;
b/ The middle of a year is the last day of June;
c/ The end of a year is the last day of
December.
Article 152.- The
point of time at which a time limit commences
1. When a time limit is determined by the minute
or hour, such time limit shall begin from the pre-determined point of time.
2. When a time limit is determined by the day,
week, month or year, the time limit must not be counted from the first day but
shall be counted from the day following the determined date.
3. When a time limit begins from the occurrence
of an event, the day on which the event occurs shall not be counted, and the
time limit shall be counted from the day following the date of occurrence of
the event.
Article 153.- The end
of a time limit
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2. When a time limit is calculated by the week,
the time limit shall end at the moment which ends the corresponding day of the
last week of the time limit.
3. When a time limit is calculated by the month,
the time limit shall end at the point of time which ends the corresponding day
of the last month of the time limit; if the month in which the time limit ends
does not have a corresponding day, the time limit shall end on the last day of
such month.
4. When a time limit is calculated by the year,
the time limit shall end at the moment which ends the corresponding day and
month of the last year of the time limit.
5. When the last day of a time limit falls on a weekend
or a public holiday, the time limit shall end at the moment which ends the
working day following such holiday.
6. The point of time which ends the last day of
a time limit shall be at exactly twelve o’clock at night on that day.
Chapter IX
STATUTE OF LIMITATIONS
Article 154.- Statute
of limitations
A statute of limitations is a time limit
specified by law upon the expiration of which a subject may enjoy civil rights,
be released from civil obligations or lose the right to initiate a civil
lawsuit or the right to request the settlement of civil matters.
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1. The statute of limitations for enjoying civil
rights is the time limit upon the expiration of which the subject shall enjoy
civil rights.
2. The statute of limitations for release from
civil obligations is the time limit upon the expiration of which the person
with the civil obligations shall be released from performing such obligations.
3. The statute of limitations for initiating a
lawsuit is the time limit within which a subject shall have the right to
initiate a lawsuit in order to request a Court to settle a civil case for the
protection of legitimate rights and interests which are infringed upon; after
such time limit expires, the right to initiate a lawsuit shall be lost.
4. The statute of limitations for requesting a
civil matter is the time limit within which a subject shall have the right to
request a Court to settle a civil matter for the protection of legitimate
rights and interests of individuals, agencies or organizations, public
interests, or the State's interests; after such time limit expires, the
requesting right shall be lost.
Article 156.- Method
of calculating a statute of limitations
A statute of limitations shall be calculated
from the point of time which begins the first day of the statute of limitations
and shall end at the point of time which ends the last day of the statute of
limitations.
Article
157.- Effectiveness of the statute of limitations for enjoyment of civil
rights and for release from civil obligations
1. Where it is provided for by law that a
subject may enjoy civil rights or be released from civil obligations under the
statute of limitations, such enjoyment of civil rights or release from civil
obligations shall take effect only after the statute of limitations ends.
2. The statute of limitations for enjoyment of
civil rights shall not be applicable in the following cases:
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b/ The enjoyment of personal rights which are
not associated with property.
3. The statute of limitations for release from
civil obligations shall not be applicable to the performance of civil
obligations towards the State, unless otherwise provided for by law.
Article 158.- Continuity
of the statute of limitations for enjoyment of civil rights or for release from
civil obligations
1. The statute of limitations for enjoyment of
civil rights or for release from civil obligations shall be continuous from its
beginning to its expiration; if there is an event which causes an interruption,
the statute of limitations must be re-calculated ab initio, after the
event which caused the interruption terminates.
2. The statute of limitations for enjoyment of
civil rights or for release from civil obligations shall be interrupted upon
the occurrence of one of the following events:
a/ There is a resolution from a competent state
agency with respect to the civil rights or obligations to which the statute of
limitations currently applies;
b/ The civil rights or obligations to which the
statute of limitations currently applies are disputed by a person with related
rights or obligations.
3. The statute of limitations shall run
continuously in cases where the enjoy-ment of civil rights or the release from
civil obligations is legally transferred to another person.
Article
159.- Commencement of the statute of limitations for initiating a civil
case, the statute of limitations for requesting the settlement of a civil
matter
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2. The statute of limitations for requesting the
settlement of a civil matter shall be counted from the date on which the
requesting right arises, unless otherwise provided for by law.
Article
160.- Non-application of the statute of limitations for initiating civil
cases
The statute of limitations for initiating civil
cases shall not apply in the following cases:
1. Requesting to restitute property under the
state ownership;
2. Requesting to protect personal rights which
are infringed upon, unless otherwise provided for by law;
3. Other cases specified by law.
Article 161.- A
period of time not calculated into the statute of limita-tions for initiating
civil cases, the statute of limitations for requesting the settlement of civil
matters
A period of time which shall not be calculated
into the statute of limitations for initiating a civil case or the statute of
limitation for requesting the settlement of a civil matter is a period of time
within which one of the following events occurs:
1. A force majeure or an objective
hindrance, which renders a subject with the right to initiate a lawsuit or to
request unable to exercise this right within the statute of limitations.
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Objective hindrances means obstacles created
under the impacts of objective circumstances, which render the persons with
related civil rights or civil obligations unable to know that their legitimate
rights and/or interests have been infringed upon or unable to exercise their
civil rights or perform their civil obligations.
2. The unavailability of a representative in
cases where the person with the right to initiate a lawsuit or the person with
the right to request has not yet attained adulthood, lost his/her civil act
capacity or has his/her civil act capacity restricted.
3. The unavailability of a new representative
for replacement, or discontinuity of representation for plausible reasons in
cases where the representative of a minor or of a person who has lost his/her
civil act capacity or has his/her civil act capacity restricted dies.
Article
162.- Re-commencement of the statute of limitations for initiating civil
cases
1. The statute of limitations for initiating a
civil case shall re-commence in the following cases:
a/ The obligor has acknowledged a part or all of
his/her/its obligations towards the person initiating the lawsuit;
b/ The obligor has fulfilled a portion of
his/her/its obligations towards the person initiating the lawsuit;
c/ The parties have reconciled with each other.
2. The statute of limitations for initiating a
civil case shall re-commence from the date following the date upon which an
event specified in Clause 1 of this Article occurs.
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PROPERTY AND OWNERSHIP
RIGHTS
Chapter X
GENERAL PROVISIONS
Article
163.- Property
Property comprises tangible things, money,
valuable papers and property rights.
Article
164.- Ownership rights
Ownership rights comprise an owner’s rights to
possession, to use and to disposition of his/her property in accordance with
the provisions of law.
Owners are individuals, legal persons or other
subjects, having all three rights which are the right to possession, the right
to use and the right to disposition of their property.
Article 165.- The
principle for exercising ownership rights
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Article 166.- Bearing
of risks with respect to property
Owners must bear risks when their property is
destroyed or damaged due to force majeure events, unless
otherwise agreed upon or otherwise provided for by law.
Article
167.- Registration of property ownership rights
Ownership rights to immoveables shall be
registered in accordance with the provisions of this Code and the law on
registration of immoveables. Ownership rights to moveables must not be
registered, unless otherwise provided for by law.
Article 168.- Time of
transferring property ownership rights
1. The transfer of ownership rights to
immoveables shall take effect from the time of registering the ownership
rights, unless otherwise provided for by law.
2. The transfer of ownership rights to moveables
shall take effect from the time the moveables are transferred, unless otherwise
provided for by law.
Article
169.- Protection of ownership rights
1. Ownership rights of individuals, legal
persons or other subjects shall be recognized and protected by law.
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Owners shall have the right to protect their
ownership rights by themselves, to prevent any person from infringing upon
their ownership rights, to search for and reclaim the property which has been
possessed, used or disposed of by other persons without legal bases.
3. In case of extreme necessity for reasons of
national defense, security or national interests, the State shall effect a
compulsory purchase or requisition with compensation of the property of
individuals, legal persons or other subjects in accordance with the provisions
of law.
Article 170.- Bases
for establishing ownership rights
Ownership rights to property shall be
established in the following cases:
1. Through labor or lawful production and
business activities;
2. Ownership rights are transferred under an
agreement or a decision of a competent state agency;
3. Yields and profits gained;
4. A new thing created from merger, mixture or
processing;
5. Inheritance of property;
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7. Possession of a property without a legal
basis but in good faith, continuously and openly in accordance with the statute
of limitations specified in Clause 1, Article 247 of this Code;
8. Other cases specified by law.
Article 171.- Bases
for termination of ownership rights
Ownership rights shall terminate in the
following cases:
1. The owner transfers his/her ownership rights
to another person;
2. The owner renounces his/her ownership rights;
3. The property is destroyed;
4. The property is disposed of for the discharge
of the owner's obligations;
5. The property is compulsorily purchased;
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7. Where other persons have established their
ownership rights under the conditions specified by law of things which have
been let drop on the ground or have been left over out of inadvertence; stray
domestic animals or poultry or raised aquatic animals which naturally move in;
the property over which other persons have established their ownership rights
in accordance with the provisions of Clause 1, Article 247 of this Code;
8. Other cases specified by law.
Article 172.- Forms
of ownership
On the basis of the regime of ownership by the
entire people, collective ownership and private ownership, the forms of
ownership shall include state ownership, collective ownership, private
ownership, common ownership, ownership by political organizations or
socio-political organizations, and ownership by socio-political-professional
organizations, social organizations or socio-professional organizations.
Article 173.- Rights
of non-owners of property
1. Non-owners of property shall only have the
right to possess, use and dispose of the property which is not under their
ownership when it is so agreed upon by the owners of such property or provided
for by law.
2. The rights of non-owners of property shall
include:
a/ Land use rights;
b/ The right to the restricted use of adjacent
real estates;
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3. The transfer of property ownership rights by
owners to other persons does not constitute a basis for termination of the
property non-owners' rights specified in Clause 2 of this Article.
4. The property non-owners' rights shall be
protected under the provisions of Article 261 of this Code.
5. The property non-owners' rights which must be
registered shall include land use rights, the right to restricted use of
adjacent real estates under agreement and other rights specified by law.
Chapter XI
TYPES OF PROPERTY
Article
174.- Immovables and movables
1. Immovables shall include:
a/ Land;
b/ Houses and constructions annexed to the land,
including properties attached to such houses and constructions;
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d/ Other properties specified by law.
2. Movables are properties other than
immovables.
Article 175.- Yields
and profits
1. Yields are natural products which property
generates.
2. Profits are incomes derived from the
exploitation of property.
Article 176.- Primary
objects and auxiliary objects
1. A primary object is an independent object of
which the utility can be exploited according to its functions.
2. An auxiliary object is an object, which directly
serves the exploitation of the utility of a primary object, is a part of the
primary object but can be separated from the primary object.
When performing an obligation to transfer a
primary object, the auxiliary object must also be transfered, unless otherwise
agreed upon.
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1. A divisible object is an object which still
retains its original properties and functions when it is divided.
2. An indivisible object is an object which
cannot retain its original properties and functions when it is divided.
When an indivisible object needs to be divided,
such object must be valued in money for the division.
Article
178.- Expendable objects and non-expendable objects
1. An expendable object is an object which,
after having been used once, loses or no longer retains its original
properties, shape and functions.
An expendable object cannot be the object of a
lease contract or a lending contract.
2. A non-expendable object is an object which
still essentially retains its original properties, shape and functions after it
has been used many times.
Article
179.- Fungible objects and distinctive objects
1. Fungible objects are objects which have the
same shape, properties and functions and which can be determined by units of
measurement.
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2. A distinctive object is an object which is
distinguishable from other objects by its own characteristics regarding symbol,
shape, color, material, properties or position.
When performing an obligation to transfer a
distinctive object, none other than such object must be transferred.
Article
180.- Integrative objects
An integrative object is an object comprising
components or parts which fit together and are connected with each other to
form a complete whole in which if any component or part is missing, or if the
components or parts are not of the right specifications or the same category,
it cannot be used or its utility value will be decreased.
When performing the obligation of transfering an
integrative object, all the components or parts of the object must be
transferred, unless otherwise agreed upon.
Article
181.- Property rights
A property right is a right which can be valued
in money and may be transferred in civil transactions, including intellectual
property rights.
Chapter XII
CONTENTS OF OWNERSHIP
RIGHTS
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Article 182.- The right to
possession
The right to possession is the right to keep and
manage the property.
Article 183.- Possession
with a legal basis
Possession with a legal basis is the possession
of a property in the following cases:
1. The owner possesses the property;
2. A person is authorized by the owner to manage
the property;
3. A person to whom the right to possession has
been transferred through a civil transaction in accordance with the provisions
of law;
4. A person who discovers and keeps derelict
property, property with unidentified owners, property which has been let drop
on the ground, left over out of inadvertence, buried or sunken in accordance
with the conditions specified by law;
5. A person who discovers and keeps stray
domestic animals, poultry or raised aquatic animals in accordance with the
conditions specified by law;
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Article 184.- Owner's
right to possession
In cases where an owner possesses property under
his/her ownership, he/she may conduct all acts on his/her own will to keep and
manage the property, provided that such acts are not contrary to law or social
ethics.
An owner's possession shall not be restricted or
interrupted in terms of time, except in cases where he/she transfers the
possession to another person or otherwise provided for by law.
Article 185.- The
right to posse-ssion of a person who is authorized by the owner to manage the
property
1. When an owner authorizes another person to
manage his/her property, the authorized person shall exercise the right to
possession of such property within the scope and in accordance with the method
and time limit specified by the owner.
2. The person authorized to manage a property
cannot become owner of the transferred property by virtue of the statute of
limitations specified in Clause 1, Article 247 of this Code.
Article 186.- The
right to posse-ssion of a person to whom a property is handed over through a
civil transaction
1. When an owner hands over a property to
another person through a civil transaction which does not include the transfer
of ownership rights, the person to whom the property is handed over must
possess such property according to the purpose and contents of the transaction.
2. The person to whom the property is handed
over shall have the right to use such property and to transfer the right to
possession and use of the property to another person if the owner so agrees.
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Article 187.- The
right to possession of property which has been let drop on the ground, left
over out of inadvertence, buried or sunken, and property the owners of which
are unidentifiable
1. A person who discovers a property which has
been let drop on the ground, left over out of inadvertence, buried or sunken
must immediately notify or return it to the owner; if the owner is unknown,
such person must notify or hand over the property to the People's Committee of
the commune, ward or township or the nearest police station or another
competent state agency in accordance with the provisions of law.
A person who discovers a property the owner of
which cannot be identified, or a property which has been let drop on the
ground, left over out of inadvertence, buried or sunken shall be entitled to
possess such property from the time of discovery to the time the property is
returned to its owner or handed over to a competent state agency.
2. With respect to a property which has been
dispersed by another person in order to hide an act of violation of law or to
evade the performance of a civil obligation, the person who discovers it must
forthwith notify or hand over the property to a competent state agency defined
in Clause 1 of this Article.
Article 188.- The right to possession of
stray domestic animals, poultry, raised aquatic animals
Persons who discover and keep stray domestic
animals, poultry or raised aquatic animals must immediately notify or return
them to their owners; if the owners cannot be identified, they are entitled to
possess such property from the time of discovery to the time of returning them
to their owners.
Article
189.- Possession without legal bases but in good faith
A possession of property which does not comply
with the provisions of Article 183 of this Code is a possession without a legal
basis.
A person who possesses a property without a
legal basis but in good faith means a possessor who does not know or could not
have known that the possession of such property is without a legal basis.
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The possession of property which takes place
within a period of time without dispute over such property means a continuous
possession, even when this property is transferred to another person for
possession.
Article 191.- Overt
possession
A possession is regarded as overt when it is
performed in an explicit manner, without concealment; the property being
currently possessed is used in accordance with its functions and utility and is
preserved and kept by the possessor as if it were his/her own property.
Section 2. THE RIGHT TO
USE
Article 192.- The
right to use
The right to use means the right to exploit the
utility of, and to enjoy the yields and profits from, the property.
Article 193.- Owner's
right to use
In cases where the owner directly exercises the
right to use a property under his/her ownership, he/she may exploit the utility
of, and enjoy the yields and profits from, the property in accordance with
his/her will, but must not cause damage to, or affect State interests, public
interests or legitimate rights and interests of other persons.
Article
194.- Non-owner's right to use
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A non-owner of a property shall have the right
to use the property in accordance with its functions, utility and mode.
2. A possessor without a legal basis but in good
faith may also have the right to exploit the utility of, and enjoy the yields
and profits from, the property in accordance with the provisions of law.
Section 3. THE RIGHT TO
DISPOSITION
Article 195.- The
right to disposition
The right to disposition means the right to
transfer property ownership rights or to renounce such ownership rights.
Article
196.- Conditions for disposition
The disposition of property must be performed by
persons having the civil act capacity in accordance with the provisions of law.
In cases where the order and procedures for
disposition of property are specified by law, such order and procedures must be
complied with.
Article 197.- Owner's
right to disposition
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Article
198.- Non-owner's right to disposition
Property non-owners shall only have the right to
dispose of property under owners' authorization or under the provisions of law.
Persons who are authorized by owners to dispose
of the latter's property must effect the disposition in accordance with the
will and interests of the owners.
Article
199.- Restrictions on the right to disposition
1. The right to disposition shall be restricted
only in cases where it is so provided for by law.
2. When the property put up for sale is a
historical or cultural relic, the State shall have the pre-emptive right to
purchase such property.
In cases where legal persons, individuals or
other subjects have the pre-emptive right to purchase with respect to a certain
property in accordance with the provisions of law, the owners, when selling the
property, must reserve such right for those subjects.
Chapter XIII
FORMS OF OWNERSHIP
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Article
200.- Property under state ownership
Property under state ownership shall include
land, natural forests, forests planted with the source of state budget capital,
mountains, rivers, lakes, water sources, underground natural resources,
resources from the sea, continental shelf and airspace, and the capital and
property invested by the State in enterprises and facilities in the branches
and fields of economy, culture, social affairs, science, technique, foreign
affairs, national defense and security, and other properties specified by law.
Article
201.- Exercise of owner's rights to property under state ownership
1. The Socialist Republic of Vietnam State shall
exercise owner's rights to property under state ownership.
2. The Government shall perform the unified
management of the property under state ownership and ensure its efficient and
thrifty use for the defined purposes.
Article
202.- Management, use and disposition of property under state ownership
The management, use and disposi-tion of property
under state ownership shall be performed within the scope and according to the
order specified by law.
Article
203.- Exercise of state ownership rights to property invested in state
enterprises
1. When a property under state ownership is
invested in a state enterprise, the State shall exercise owner's rights over
such property in accordance with the provisions of law on enterprises.
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Article
204.- Exercise of state ownership rights to property allocated to state
agencies, armed force units
1. When the property under state ownership is
assigned to state agencies or armed force units, the State shall exercise the
right to inspect and supervise the management and use of such properties.
2. State agencies or armed force units shall
have the right to manage and use the State-allocated property for the defined
purposes and in accordance with the provisions of law.
Article 205.- Exercise
of state ownership rights to property assigned to political organizations,
socio-political organizations, socio-political-professional organizations
1. When the property under state ownership is
allocated to political organizations, socio-political organizations or
socio-political-professional organizations, the State shall exercise the right
to inspect and supervise the management and use of such property.
2. Political organizations, socio-political
organizations and socio-political-professional organizations shall have the
rights to manage and use the State-allocated property for the defined purposes,
according to the scope, mode and order provided for by law in accordance with
the functions and tasks specified in their respective charters
Article 206.- Rights
of enterprises, households, cooperative groups and individuals to use and
exploit property under state ownership
In cases where it is so provided for by law and
so permitted by competent state agencies, enterprises, households, cooperative
groups or individuals may use land, exploit aquatic resources and other natural
resources under state ownership and must use, exploit them efficiently and for
the defined purposes, and fulfill their obligations towards the State in
accordance with the provisions of law.
Article
207.- Property under state ownership which has not been allocated to
organizations or individuals for management
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Section 2. COLLECTIVE
OWNERSHIP
Article
208.- Collective ownership
Collective ownership means ownership by
cooperatives or other stable economic entities in which individuals and/or
households jointly contribute capital and labor for production and business
cooperation to achieve common goals stated in their charters and on the
principles of voluntariness, equality, democracy and joint management and
mutual benefit.
Article
209.- Property under collective ownership
Property constituted from the contributions of
members, legitimate income from production and business, supports from the
State or other sources that accord with the provisions of law shall be property
under the ownership of such collectives.
Article
210.- Possession, use and disposition of property under collective
ownership
1. The possession, use and disposition of
property under collective ownership must comply with law, accord with the charters
of the collectives and ensure the stable development of collective ownership.
2. Property under collective ownership may be
assigned to members for exploitation of the utility thereof by their labor in
production and business activities in order to serve the common need for
production expansion and economic development as well as the interests and
needs of the members.
3. The members of a collective shall have the
pre-emptive right to purchase, lease or package- lease property under
collective ownership.
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Article 211.- Private
ownership
Private ownership means ownership of individuals
over their lawful property.
Private ownership comprises personal ownership by
individuals, ownership by small business owners and private capitalist
ownership.
Article
212.- Property under private ownership
1. Legitimate income, savings, residential
houses, means of daily life, means of production, capital, yields and profits
and other lawful properties of an individual constitute property under private
ownership.
Lawful property under private ownership shall
not be limited in quantity and value.
2. An individual cannot be the owner of a
property which cannot, as provided for by law, come under private ownership.
Article
213.- Possession, use and disposition of property under private ownership
1. Individuals shall have the right to
possession, use and disposition of property under their respective ownership to
meet the needs of daily life, consumption or production and business and other
purposes in accordance with the provisions of law.
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Section 4. COMMON
OWNERSHIP
Article 214.- Common
ownership
Common ownership means ownership of property by
more than one owner.
Common ownership comprises common ownership by
shares and common ownership by integration.
A property under common ownership is a common
property.
Article
215.- Establishment of common ownership right
A common ownership right is established under
the agreement of the owners, under the provisions of law or in accordance with
practices.
Article 216.- Common
ownership by shares
1. Common ownership by shares means common
ownership in which each owner's share of the ownership right to the common
property is determined.
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Article 217.- Common
ownership by integration
1. Common ownership by integration means common
ownership in which each owner's share of the ownership right to the common
property is not determined.
Common ownership by integration comprises
divisible common ownership by integration and indivisible common ownership by
integration.
2. Owners of property under common ownership by
integration shall have equal rights and obligations to the property under
common ownership.
Article 218.- Mixed
common ownership
1. Mixed common ownership means ownership over
the property contributed as capital by owners of different economic sectors for
production and/or business to gain profits.
2. Property created from the sources of
contributed capital of owners, lawful profits from production and/or business
activities or from other sources in accordance with the provisions of law is
the property under mixed common ownership.
3. The possession, use and disposition of
property under mixed common ownership must comply with the provisions of
Article 216 of this Code and relevant provisions of law on capital
contribution, organization, production and/or business operation, management,
administration, property liability and profit division.
Article 219.- Common
ownership by husband and wife
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2. Husband and wife who jointly establish and
develop the common property through the efforts of each shall have equal rights
in the possession, use and disposition of such property.
3. Husband and wife shall discuss, agree or
authorize each other to the possession, use and disposition of the common
property.
4. The common property of husband and wife may
be divided by their agreement or by a decision of the Court.
Article 220.- Common
ownership by a community
1. Common ownership by a community means ownership
by a family line, hamlet, village, mountain village, religious community or
other population communities over the property estab-lished in accordance with
practices and the property jointly contributed and raised by community members
or given to the whole community or from other sources in accordance with the
provisions of law for meeting the common legitimate interests of the entire
community.
2. The members of a community shall jointly
manage, use and dispose of the common property for the interests of the
community as agreed upon or according to practices, but not in contravention of
law and social ethics.
3. The common property of a community is the
property under common ownership by integration.
Article
221.- Possession of common property
Owners of property under common ownership shall
jointly manage the common property according to the principle of unanimity,
unless otherwise agreed upon or provided for by law.
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1. Each owner of property under common ownership
by shares shall have the right to exploit the utility of, and enjoy the yields
and profits from, the common property corresponding to his/her share in the
ownership right, unless otherwise agreed upon or provided for by law.
2. Owners of property under common ownership by
integration shall have equal rights to exploit the utility of, and enjoy the
yields and profits from, the common property, unless otherwise agreed upon.
Article
223.- Disposition of common property
1. Each owner of property under common ownership
by shares shall have the right to dispose of his/her own share in the ownership
right as agreed upon or provided for by law.
2. The disposition of property under common
ownership by integration shall be performed in accordance with the agreement of
the co-owners or the provisions of law.
3. In cases where an owner of property under
common ownership sells his/her share in the ownership right, the other
co-owners shall have the pre-emptive right to purchase such share. If within
three months from the date they are notified of the sale and conditions of the
sale, for an immovable property or one month for a movable property none of the
co-owners wants to buy it, then such owner shall have the right to sell his/her
share to other persons.
In cases where the sale of ownership right
shares violates the pre-emptive right to purchase, any of the co-owners of the
property under common ownership by shares shall, within three months from the
date of detecting the violation of the pre-emptive right to purchase, have the
right to request the Court to transfer to him/her the rights and obligations of
the purchaser; the party at fault in causing damage must pay compensation
therefor.
4. In cases where one of the co-owners renounces
his/her share in the ownership right or where such person dies without any
heir(s), such share of the ownership right shall belong to the State, except
for the case of common ownership by community where such share shall come under
common ownership of the remaining co-owners.
Article 224.- Division
of property under common ownership
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2. In cases where a person requests one of the
co-owners to discharge his/her payment obligations when the latter has no
private property or his/her private property is not enough for payment, the
requesting person shall have the right to request a division of the common
property so as to receive monetary payment and to participate in the division
of the common property, unless otherwise provided for by law.
If the ownership right share in kind cannot be
divided or such division is protested against by the remaining co-owners, the
requesting person shall have the right to request the obligator to sell his/her
ownership right share for the performance of his/her payment obligations
Article 225.- Common
ownership in a condominium
1. The areas, equipment and furnishings, which
are for common use, in a condominium are under common ownership of all the
apartment owners in that condominium and cannot be divided, unless otherwise
provided for by law or otherwise agreed upon by all owners.
2. The apartment owners in a condominium shall
have equal rights and obligations in the management and use of common areas and
equipment.
3. In cases where a condominium is destroyed,
the apartment owners in the condominium shall have the right to use the ground
area of the condominium in accordance with the provisions of law.
Article
226.- Termination of common ownership
A common ownership shall terminate in the
following cases:
1. The common property has been divided;
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3. The common property no longer exists;
4. Other cases specified by law.
Section 5. OWNERSHIP BY
POLITICAL ORGANIZATIONS, SOCIO-POLITICAL ORGANIZATIONS
Article
227.- Ownership by political organizations, socio-political organizations
Ownership by political organizations or
socio-political organizations means ownership by such organizations for the
purpose of achieving the common objectives specified in their charters.
Article
228.- Property under ownership by political organizations, socio-political
organizations
1. Property constituted from the sources of
contributions of members, property donated or presented to the whole
organizations and property from other sources in accordance with the provisions
of law is the property under ownership by political organizations or
socio-political organizations.
Property under state ownership, over which the
ownership has been transferred to political organizations or socio-political
organizations, shall be the property under ownership by such organizations.
2. Property under state ownership which has been
assigned to political organizations or socio-political organizations for
management and use shall not come under ownership by such organizations.
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Political organizations or socio-political
organizations shall exercise the rights to possession, use and disposition of
property under their respective ownership in accordance with the provisions of
law and the operation purposes stipulated in their charters.
Section 6. OWNERSHIP BY
SOCIO-POLITICAL-PROFESSIONAL ORGANIZATIONS, SOCIAL ORGANIZATIONS,
SOCIO-PROFESSIONAL ORGANIZATIONS
Article
230.- Ownership by socio-political- professional organizations, social
organizations, socio-professional organizations
Ownership by socio-political-professional
organizations, social organizations or socio-professional organizations means
ownership by such organizations for the purpose of achieving the common
objectives of members as specified in their respective charters.
Article
231.- Property under ownership by socio-political-professional
organizations, social organizations, socio-professional organizations
Property constituted from the sources of
contributions by members, property donated or presented to the whole
organizations or from other sources in accordance with the provisions of law
shall be the property under ownership by such socio-political-professional
organizations, social organizations or socio-professional organizations.
Article
232.- Possession, use, disposition of property under ownership by
socio-political-professional organizations, social organizations,
socio-professional organizations
Socio-political-professional organizations shall
exercise their rights to possession, use, disposition of property under their
respective ownership in accordance with the provisions of law and the operation
purposes specified in their respective charters.
Chapter XIV
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Section 1. ESTABLISHMENT
OF OWNERSHIP RIGHTS
Article
233.- Establishment of ownership rights to property acquired from labor,
lawful business and/or production activities
Workers or persons who conduct lawful production
and/or business activities shall have the rights of ownership over property
acquired from their labor or lawful production and/or business activities as
from the time such property is acquired.
Article
234.- Establishment of ownership rights by an agreement
A person to whom a property has been transferred
through a contract for purchase and sale, donation, exchange or lending shall
have the right to own such property as from the time of transferring the
property, unless otherwise agreed upon by the parties or provided for by law.
Article
235.- Establishment of ownership rights to yields and profits
Property owners and/or users shall have the
rights of ownership over the yields and profits as from the time such yields and
profits are obtained, as agreed upon or provided for by law.
Article
236.- Establishment of ownership rights in case of merger
1. In cases where the property of different
owners is merged together to form an indivisible object which is impossible to
determine whether the merged property is primary or auxiliary object, the newly
formed object shall be the property under common ownership of such owners; if
the merged property is primary object and auxiliary object, the newly formed
object shall belong to the owner of the primary object from the time the new
object is formed; the owner of the new property must pay to the owner of the
auxiliary object for the value of the such auxiliary object, unless otherwise
agreed upon.
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a/ To request the person who merges the property
to hand over to him/her the new property, and pay to that person the value of
that person's property;
b/ To request the person who merges the property
to pay the value of the portion of his/her own property and to compensate for
any damage, if he/she refuses to take the new property.
3. When a person merges the movable property of
another person into his/her own immoveable property even though he/she knew or should
have known that such property is not his/her own and also does not have the
consent of the owner of the property being merged, the owner of the property
being merged shall have the right to request the person who merges the property
to pay the value of the portion of his/her own property and compensate for
damage.
Article
237.- Establishment of ownership rights in case of mixture
1. In cases where the property of various owners
are mixed together to form a new indivisible object, the new object shall be
the property under common ownership of such owners as from the time of mixture.
2. When a person mixes the property of another
person into his/her own property even though he/she knew or should have known
that such property is not his/her own, and does not have the consent of the
owner of the property which has been mixed, then the owner of the property
which has been mixed shall have one of the following rights:
a/ To request the person who has mixed the
property to hand over to him/her the new property and to pay to the person who
has mixed the property the value of that person's property;
b/ To request the person who has mixed the
property to pay the value of the portion of his/her own property and to
compensate for any damage, if he/she refuses to take the new property.
Article
238.- Establishment of ownership rights in case of processing
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2. A bona fide user of materials and/or raw
materials owned by another person for processing shall become owner of the new
property, but must pay the value of materials and/or raw materials and
compensate for any damage to the owner of such materials and/or raw materials.
3. In cases where the processor does not act in
good faith, the owner of materials and/or raw materials shall have the right to
request the hand-over of the new object; if there are many owners of materials
and/or raw materials, they shall be the co-owners of the newly created object
by shares, corresponding to the value of the materials and/or raw materials of
each person. The owners of materials and/or raw materials which have been
processed not in good faith shall have the right to request the processor to
compensate for any damage.
Article
239.- Establishment of ownership rights to derelict objects and objects
whose owners are unidentifiable
1. A derelict object is an object the owner of
which has renounced his/her ownership rights to it.
The person who has discovered a derelict object
which is a movable property shall have the right to own such property in
accordance with the provisions of law; if the discovered object is an immovable
property, it shall belong to the State.
2. A person who has discovered an object the
owner of which is unidentifiable must notify or submit it to the People's
Committee of the commune, ward or township, or the nearest police station for
public announcement so that the owner may be aware of such and reclaim it.
The submission of the object must be recorded in
an official report, which shall clearly state the full names and addresses of
the submitter and the receiver, and the conditions, quantity and volume of the
property submitted.
The People's Committee or the police station,
which received the object must notify the discoverer of the results of the
effort to identify its owner.
In cases where the object the owner of which is
unidentifiable is a movable property and its owner remains unidentifiable after
one year from date of public announcement, such movable property shall belong
to the discoverer as provided for by law; if the object is an immovable
property and its owner remains unidentifiable even after five years from the
date of public announcement, such immovable property shall belong to the State;
the discoverer shall be entitled to enjoy a monetary reward as provided for by
law.
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Ownership rights to a discovered, buried or
sunken object without an owner or with its owner being unidentifiable, after
deducting expenses for search and preservation, shall be determined as follows:
1. The found object, which is a historical or
cultural relic, shall belong to the State; the person who found such object
shall be entitled to a monetary reward as provided for by law.
2. The found object, which is not a historical
or cultural relic but has the value of up to ten months' minimum salary set by
the State, shall come under ownership of the discoverer; if the found object is
valued higher than ten months' minimum salary set by the State, the discoverer
shall be entitled to a value equal to ten months' minimum salary set by the
State and 50% of the value of the portion in excess of ten months' minimum salary
set by the State, and the remainder shall belong to the State.
Article
241.- Establishment of ownership rights to objects which have been let
drop on the ground or left over out of inadvertence by other persons
1. A person who finds an object which another
person has let drop on the ground or left over out of inadvertence and knows
the latter's address must notify or return the object to such person; if he/she
does not know the address of the latter, he/she must notify or submit such
object to the People's Committee of the commune, ward or township or the
nearest police station in order to make a public announcement for the owner to
be aware thereof and reclaim it.
The local People's Committee or the police
station, which has received the object, must notify the person who has
submitted it of the results of identification of the owner.
2. If after one year from the date of public
announcement of the found object, it is not possible to identify the owner or
the owner does not come to reclaim the object, such object shall belong to the
finder, if the object has the value of up to ten months' minimum salary set by
the State; if the object's value is greater than ten months' minimum salary set
by the State, after deducting the expenses for preserva-tion, the finder shall
be entitled to a value equal to ten months' minimum salary set by the State and
50% of the value of the portion in excess of ten months' minimum salary set by
the State, and the remaining value shall belong to the State.
3. If the object which has been let drop on the
ground or left over out of inadvertence is a historical or cultural relic and
its owner is unidentifiable or no one comes to reclaim the object, the object
shall belong to the State; the finder of the object shall be entitled to a
monetary reward as provided for by law.
Article
242.- Establishment of ownership rights to stray domestic animals
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If after six months from the date of public
announcement no one comes to reclaim it, the animal shall belong to the person
who captured it; if the captured animal is a free-ranging animal according to
practices, this time limit shall be one year.
During the period of caring for the stray
domestic animal, the person who captured it shall be entitled to half of the
number of offsprings born, if any, and must compensate for any damage if he/she
is at fault in intentionally causing the death of the stray animal.
Article
243.- Establishment of ownership rights to stray poultry
In cases where a person's poultry has strayed
and is captured by another person, the person who captured the poultry must
make a public announcement for the owner to be aware thereof and reclaim it.
The owner who reclaims the stray poultry must pay a remuneration for the care
therefore and other expenses to the person who captured the poultry.
If after one month from the date of public
announcement no one comes to reclaim the stray poultry, it shall belong to the
person who captured it.
During the period of caring for the stray
poultry, the person who captured it shall be entitled to the yields generated
from the stray poultry and must compensate for any damage if he/she is at fault
in intentionally causing the death of the poultry.
Article
244.- Establishment of ownership rights to raised aquatic animals
When a person's raised aquatic animal moves
naturally into the field, pond or lake of another person, it shall belong to
the person having such field, pond or lake. Where an aquatic animal has
specific marks which make it possible to determine that it does not belong to
him/her, the person having such field, pond or lake must make a public
announcement for the owner to be aware thereof and reclaim it. If after one
month from the date of public announcement no one comes to reclaim the raised
aquatic animal, it shall belong to the person having such field, pond or lake.
Article
245.- Establishment of ownership rights from inheritance
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Article
246.- Establishment of ownership rights in accordance with judgments or
decisions of Courts or decisions of other competent state agencies
Ownership rights may be established based on
judgments or decisions of Courts or decisions of other competent state
agencies.
Article
247.- Establishment of ownership rights by virtue of a statute of
limitations
1. A person who possesses or a person who enjoys
benefits from a property without a legal basis but in good faith and in an
overt and continuous manner for a period of ten years with respect to a movable
property or thirty years with respect to an immovable property, shall become
owner of such property from the time of commencement of possession, except for
the cases specified in Clause 2 of this Article.
2. A person who possesses a property under state
ownership without a legal basis shall not become owner of such property, even
if it is in good faith, continuous and overt possession regardless of the
duration of possession.
Section 2. TERMINATION OF
OWNERSHIP RIGHTS
Article
248.- Transfer by owners of ownership rights to other persons
When an owner transfers his/her ownership rights
to another person through a purchase and sale, exchange, donation or loan
contract or through bequeathal, the former's rights of ownership over the
property shall terminate as from the time the ownership rights of the
transferee arise.
Article
249.- Renunciation of ownership rights
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The renunciation of ownership rights to property
must comply with the provisions of law if such renunciation may cause harm to
social order and safety or environmental pollution.
Article
250.- Property to which another person has established ownership rights
When another person has established ownership
rights to an object which has been let drop on the ground or left over out of
inadvertence, a stray domestic animal or poultry, or a naturally moving raised
aquatic animal in accordance with the provisions of Articles from 241 to 244 of
this Code, the ownership rights of the person who previously owned such
property shall terminate.
When the ownership rights of a possessor have
been established according to the provisions of Clause 1, Article 247 of this Code,
the ownership rights of the person whose property is being possessed shall
terminate.
Article
251.- Disposal of property to fulfill the obligations of owners
1. The rights of ownership over a property shall
terminate when such property is disposed of to fulfill its owner's obligations
by a decision of the Court or another competent state agency, unless otherwise
provided for by law.
2. The disposal of property to fulfill its
owner's obligations shall not be applicable to property not subject to distrainment
as provided for by law.
3. The rights of ownership over a property which
is disposed of to fulfill its owner's obligations shall terminate at the time
the ownership rights of the recipient of such property arise.
4. The disposal of land use rights shall comply
with the provisions of land law.
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When a property is destroyed, the ownership
rights to such property shall terminate.
Article
253.- Property which is compulsorily purchased
When a property is compulsorily purchased under
decision of a competent state agency for defense or security reasons and for
national interests, the owner's ownership rights to such property shall
terminate as from the time the decision of the competent state agency takes
legal effect.
Article
254.- Property which is confiscated
When a property of an owner is confiscated and
placed in the State fund due to his/her criminal conviction or administrative
violation, his/her rights of ownership over such property shall terminate as
from the time the judgment or decision of a Court, or the decision of another
competent state agency takes legal effect.
Chapter XV
PROTECTION OF OWNERSHIP
RIGHTS
Article
255.- Measures for protection of ownership rights
Lawful owners and possessors shall have the
right to request Courts or other competent agencies or organizations to compel
the persons infringing upon their ownership rights or possession rights to
return the property and terminate the acts of illegally obstructing the
exercise of their ownership rights or possession rights, and to request
compensation for any damage.
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Article 256.- The
right to reclaim property
Lawful owners and/or possessors shall have the
right to request the persons possessing, using or receiving benefits from the
property under their lawful ownership or possession rights without a legal basis
to return such property, except for the cases specified in Clause 1, Article
247 of this Code. In cases where the property is in the possession of a bona
fide possessor, Articles 257 and 258 of this Code shall apply.
Article 257.- The
right to reclaim movable property not subject to ownership right registration
from bona fide possessors
Owners may reclaim movable property not subject
to ownership right registration from bona fide possessors in cases where such
bona fide possessors have acquired such property through unindemifiable
contracts with persons who have no right to dispose of the property; in case of
indemifiable contracts, the owners may reclaim the movable property if such
movable property has been stolen, lost or other cases of possession against the
owners' will.
Article 258.- The
right to reclaim movable property subject to ownership right registration or
immovable property from bona fide possessors
Owners may reclaim their movable property
subject to ownership right registration and immovable property, except for
cases where the third party possessing the property in good faith has received
such property through auctions or transactions with the persons who, under
judgments of courts or decisions of competent state agencies, were owners of
the property but later are not owners as such judgments or decisions have been
cancelled or modified.
Article 259.- The
right to request the prevention or termination of acts of illegally obstructing
the exercise of lawful ownership rights and possession rights
When exercising their ownership rights or
possession rights, lawful owners or possessors shall have the right to request
persons committing acts of illegally obstructing the exercise of their lawful
ownership rights or possession rights to terminate such acts; if the offenders
do not willingly terminate such acts, the owners or possessors shall have the
right to request the Court or other competent agencies or organizations to
compel such persons to terminate their violation acts.
Article 260.- The right
to request compensation for damage
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Article
261.- Protection of rights of possessors who are not owners
The rights defined in Articles from 255 thru 260
of this Code shall also belong to the persons who, though being not owners,
possess the property on the basis of land use rights, the right to restricted use
of adjacent immovable property or on other bases provided for by law or agreed
upon.
Chapter XVI
OTHER PROVISIONS ON
OWNERSHIP RIGHTS
Article
262.- Obligations of owners in emergency circumstances
1. An emergency circumstance is a circumstance
where in order to avert a danger actually and directly threatening the
interests of the State or of a collective, or the legitimate rights or
interests of their own or of other persons, a person has no alternative but to
take an act which would cause lesser damage than the damage to be prevented.
2. In an emergency circumstance, the owner of a
property must not hinder another person from using his/her own property or
hinder another person from causing damage to such property in order to prevent
or abate the greater danger or damage that threatens to happen.
3. The causing of damage in an emergency
circumstance is not the act of infringing upon ownership rights. The owners
shall be compensated for damage in accordance with the provisions of Clause 3,
Article 614 of this Code.
Article
263.- Obligations of owners in the protection of the environment
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Article
264.- Obligations of owners to respect and ensure social order and safety
When exercising his/her rights to possession,
use or disposition of his/her own property, an owner must respect and ensure
social order and safety and must not abuse his/her ownership rights to cause
social disorder or unsafety, causing damage to the State interests, public
interests or legitimate rights and interests of other persons.
Article 265.- The
obligation to respect the boundaries between immovable properties
1. The boundaries between adjoining immovable
properties shall be determined under the agreement between the owners or the
decisions of competent state agencies.
The boundaries may also be determined in
accordance with practices or the boundaries which have existed for thirty years
or more without disputes.
2. A person with land use rights may use the air
space and underground area perpendicular to the boundaries of the land area in
accordance with the construction planning specified by a competent state
agency, and without affecting the use of the adjoining land of other persons.
A land user may plant trees and conduct other
activities only within the land area under his/her own use rights and within
the boundaries which have been determined; if tree roots and/or branches extend
beyond the boundaries, he/she must clip the extending roots and/or prune the
extending branches, unless otherwise agreed upon.
3. In cases where the boundary is a canal,
irrigation ditch, trench, gutter or the boundary of a rice field, the land user
shall have the obligation to respect and maintain the common boundary; he/she
must not encroach upon the boundary or change the boundary markers.
Article
266.- Ownership rights to boundary markers separating immovable properties
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In cases where a boundary marker is put up on
the boundary by only one party and with the consent of the owner of the
adjoining immovable property, such boundary marker shall be under common
ownership and the construction expenses shall be borne by the party who puts up
the marker, unless otherwise agreed upon; if the owner of the adjoining
immovable property does not give his/her consent for justifiable reasons, the
owner who has put up the boundary stake, fence or partition wall must remove
it.
With respect to trees as common boundary
markers, the parties shall all have the obligation to protect them; the yields
from the trees shall be shared equally, unless otherwise agreed upon.
2. With respect to common house walls as
boundary markers, the owner of the adjoining immovable property shall not
install a window or air ventilating hole or drill the wall in order to install
building structures, except where it is so consented by the owner of the
adjoining immovable property.
In cases where houses are separately built but
have adjoining walls, an owner may drill and install building structures only
up to his/her boundary wall.
Article 267.- The
obligation to respect building codes
1. When constructing a project, the project owner
must comply with the law on construction, ensure safety, must not build beyond
the height and distance specified by the law on construction and must not
infringe upon legitimate rights and interests of owners of adjoining and
surrounding immovable properties.
2. When there is a danger of an incident
occurring to the construction project, which would affect the adjoining and
surrounding immovable properties, the project owner must immediately stop the
construction and make repairs or dismantle the construction at the request of
owners of adjoining and surrounding immovable properties or at the request of a
competent state agency; if damage is caused, compensation must be made.
3. When building a sanitation project, a toxic
chemical storehouse or another project the use of which may cause environmental
pollution, the owner must build it at a reasonable site and distance from the
boundaries, and must ensure sanitation and safety and not affect owners of
adjoining and surrounding immovable properties.
Article 268.- The
obligation to ensure safety for adjoining construction projects
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In cases where the projects are in danger of
threatening the safety of adjoining and surrounding immovable properties, the
project owners must immediately take remedial measures; if damage is caused to
owners of adjoining and surrounding properties, compensation must be made.
Article
269.- Obligations of owners in draining rainwater
House owners must install water drainage conduits
so that rainwater from their house roofs will not run down onto the immovable
properties of owners of adjoining immovable properties.
Article
270.- Obligations of owners in draining waste water
House owners must install under-ground drains or
water drainage sewers to discharge waste water to the prescribed location, so
that the waste water will not spill onto the immovable property of owners of
adjoining immovable property or onto public roads or public places, thus
causing environmental pollution.
Article
271.- Restrictions on the right to install doors/windows
1. House owners shall only install doors and/or
windows swinging over to adjacent houses or opposite houses and common paths in
accordance with the provisions of law on construction.
2. The awnings above doors or windows swinging
into common paths must be at least 2.5m above the ground.
Article 272.- The
right to request the repair or removal of adjoining immovable property
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The owner of an adjoining immovable property
shall have the right to request the owner of the tree or the construction
project, which is in danger of collapsing, to cut down the tree, or demolish
the construction project; if the latter does not cut down the tree or demolish
the construction project, the owner of an adjoining immovable property shall
have the right to request a competent state agency to permit the cutting down
of the tree, or demolition of the construction project. The expenses for
cutting down the tree or demolishing the construction project shall be borne by
the owner of the tree or the construction project.
Article 273.- The
right to an easement over adjoining immovable property
A house owner or a land user shall have the
right to use in a reasonable manner an adjoining immovable property under the
ownership of another person for his/her own needs for passageway, water supply
and drainage, gas supply, electricity transmission wires, communication lines
and other necessary needs, but must compen-sate, unless otherwise agreed upon.
Article
274.- Establishment of the right to an easement over adjoining immovable
property
1. The right to an easement over adjoining
immovable property shall be established as agreed upon or provided for by law.
2. In cases where the right to an easement over
an adjoining immovable property has been established for the house owner or
land user, the successive house or land use right transferee shall also be
entitled to such right.
Article 275.- The
right regarding the passageway through adjoining immovable property
1. The owner of an immovable property surrounded
by immovable properties of other owners from which there are no exits shall
have the right to request one of the owners of the adjoining immovable
properties to reserve for him/her a convenient and reasonable passageway
leading to a public path; the requested person shall have the obligation to
meet such request. The person for whom a passageway is reserved must compensate
the owner of the adjoining immovable property, unless otherwise agreed upon.
The passageway shall be opened on the adjoining
immovable property which is considered most convenient and reasonable, with the
specific characteristics of the locations and interests of the surrounded
immovable property being taken into account, and with the least damage caused
to the immovable property on which the passageway is opened.
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3. In cases where an immovable property is
divided into different parts to different owners and/or users, upon such
division, a necessary passageway must be reserved for the person(s) in the
interior in accordance with the provisions of Clause 2 of this Article, without
any compensation.
Article 276.- The
right to install electricity transmission wires and communication wires through
adjoining immovable property
An owner of an immovable property shall have the
right to install electricity transmission wires and communication wires in a
reasonable manner through the immovable property of other owners, but must
ensure the safety and convenience for such owners; if damage is caused,
compensation must be made.
Article 277.- The
right regarding the water supply and drainage through adjoining immovable
property
In cases where due to the natural position of an
immovable property the water supply and drainage pipes must run through another
immovable property, the owner of the immovable property through which the water
flows must reserve an appropriate channel for the water supply and drainage and
must not hinder or prevent the flow of water. The user of the water supply and
drainage channel must minimize to the lowest possible extent any damage to the
owner of the immovable property through which the water flows when installing
water conduits; if damage is caused, compensation must be paid. In cases where
the water flowing naturally from a higher position to a lower position causes
damage to the owner of the immovable property through which the water flows,
the user of the water supply and drainage channel shall not have to compensate
for any damage.
Article 278.- The
right regarding irrigation and water drainage in cultivation
A person who is entitled to use land for
cultivation shall have the right to request persons using the surrounding land
to reserve for him/her a channel suitable and convenient for irrigation and
water drainage; the requested person shall have the obligation to meet such
request; if the user of the water channel causes damage to the neighboring land
users, he/she must pay compensation therefore.
Article
279.- Termination of the right to easement over adjoining immovable
property
The right to easement over adjoining immovable
property shall terminate in the following cases:
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2. The house owner or land user no longer needs
an easement over the adjoining immovable property.
PART THREE
CIVIL OBLIGATIONS AND
CIVIL CONTRACTS
Chapter XVII
GENERAL PROVISIONS
Section 1. CIVIL OBLIGATIONS
Article 280.- Civil
obligations
A civil obligation is a task under which a
subject or more than one subject (hereinafter referred collectively to as the
obligors) must transfer an object, transfer rights, pay money or return
valuable papers, perform other tasks or refrain from doing certain tasks in the
interest of one or a number of other subjects (hereinafter referred
collectively to as the obligees).
Article 281.- Bases
upon which civil obligations arise
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1. A civil contract;
2. A unilateral legal act;
3. Performance of a task without authorization;
4. Possession and use of property or enjoyment
of benefits from property without a legal basis;
5. Causing damage by performing an illegal act;
5. Performance of a task without authorization;
6. Other bases specified by law.
Article 282.- Objects
of civil obligations
1. An object of a civil obligation may be a
property or a task which must or must not be performed.
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3. Only those property which are be alienable
and tasks which can be performed but are not prohibited by law and not contrary
to social ethics may be objects of civil obligations.
Section 2. PERFORMANCE OF
CIVIL OBLIGATIONS
Article 283.- The
principle for performance of civil obligations
An obligor must perform his/her obligation in an
honest manner, in the spirit of cooperation, in a manner faithful to his/her
commitment and not contrary to law and social ethics.
Article 284.- Places
for performance of civil obligations
1. The place for the performance of a civil
obligation shall be agreed upon by the parties.
2. In cases where there is no agreement, the place
for performance of a civil obligation shall be determined as follows:
a/ It is the location of the immovable property,
if the object of the civil obligation is an immovable property;
b/ It is the place of residence or head office
of the obligee, if the object of the civil obligation is not an immovable
property.
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Article 285.- Time
limit for performance of civil obligations
1. The time limit for performing a civil
obligation shall be agreed upon by the parties or provided for by law.
The obligor must perform his/her civil
obligation on time; may perform the civil obligation before the specified time
limit only if the obligee so consents; if the obligor has performed the
obligation before the specified time limit at his/her own will and the obligee
has accepted such performance, the obligation shall be considered to have been
performed on time.
2. In cases where the time limit for the
performance of a civil obligation has not been agreed upon by the parties or
specified by the law, the parties may perform the obligation or request the
performance of the obligation at any time, but must notify each other in
advance within a reasonable period of time.
Article 286.- Delay
in performance of civil obligations
1. The delay in performance of a civil
obligation means the obligation has not been performed yet or has been
partially performed upon the expiration of the time limit for performance of
the obligation.
2. The party that delays the performance of a
civil obligation must immediately notify the obligee of the non-performance of
the obligation on time.
Article
287.- Postponement of performance of civil obligations
1. When it is impossible to fulfill a civil
obligation on time, the obligor must immediately inform the obligee thereof and
propose the postponement of the performance of the obligation.
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2. The obligor may postpone the performance of
an obligation if the obligee so agrees. The postponed performance of a civil
obligation shall still be considered a timely performance.
Article 288.- Delay
in acceptance of performance of civil obligations
1. The delay in acceptance of the performance of
a civil obligation means that, upon the expiration of the time limit for the
fulfillment of the civil obligation, the obligor has already fulfilled the
civil obligation as agreed upon, but the obligee does not accept the
performance of such obligation.
2. In case of delay in accepting the civil
obligation's object being a property, the obligor must take necessary measures
to preserve the property and shall be entitled to request the reimbursement of
reasonable expenses.
3. With respect to a property which is in
imminent danger of decay, the obligor shall have the right to sell such
property and return the proceeds from the sale of such property to the obligee
after deducting necessary expenses for the preservation and sale of such
property.
Article
289.- Performance of the obligation to hand over objects
1. The person obliged to hand over an object
must preserve and maintain the object until the hand-over thereof.
2. When the object to be handed over is a
distinctive object, the obligor must hand over the exact object in the exact
conditions as committed; if the object to be handed over is a fungible object,
it must be handed over in the exact quality and quantity as agreed upon. If
there is no agreement regarding the quality, the object to be handed over must
be of average quality; if it is an integrative object, it must be handed over
in sets.
3. The obligor must bear all expenses related to
the hand-over of the object, unless otherwise agreed upon.
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1. The obligation to pay money must be performed
in full amount, on time, at the right place and by the right mode agreed upon.
2. The obligation to pay money shall cover the
payment of interests on principals, except otherwise agreed upon.
Article 291.- The
obligation to perform or not to perform a task
1. The obligation to perform a task is the
obligation under which the obligor is obliged to perform that very task.
2. The obligation not to perform a task is the
obligation under which the obligor is obliged not to perform that very task.
Article
292.- Periodic performance of a civil obligation
A civil obligation can be performed
periodically, if so agreed upon or provided for by law.
The delay in periodic performance of a civil obligation
shall also be considered the delay in performance of the civil obligation.
Article
293.- Performance of a civil obligation through a third party
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Article
294.- Conditional performance of a civil obligation
In cases where the conditions for the performance
of a civil obligation are agreed upon by the parties or provided for by law,
the obligor must perform the obligation when such conditions arise.
Article
295.- Performance of a civil obligation with optional objects
1. A civil obligation with an optional object
means an obligation with an object being one of many different properties or
tasks, which the obligor may choose at his/her/its free will, unless where it
is agreed upon or it is provided for by law that the right of choice is
reserved for the obligee.
2. The obligor must notify the obligee of the
property or task selected for the performance of the obligation. Where the
obligee has determined the time limit for performance of the selected
obliga-tion, the obligor must fulfill it on time.
3. In cases where only one property or one task
is left, the obligor must hand over such property or perform such task.
Article
296.- Performance of a substitutable civil obligation
A substitutable civil obligation is an
obligation whereby if the obligor cannot perform the original obligation,
he/she/it may perform another obligation accepted by the obligee as a
substitute for such civil obligation.
Article
297.- Separate performance of a civil obligation
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Article
298.- Performance of a joint civil obligation
1. A joint civil obligation is an obligation
which must be performed by many obligors and the obligee may request any one of
the obligors to perform the entire obligation.
2. In cases where an obligor has fulfilled the
entire obligation, he/she/it shall have the right to request the other joint
obligors to fulfill their respective parts of the joint obligation towards
him/her/it.
3. In cases where the obligee has already
designated one of the joint obligors to perform the entire obligation, but
later exempts that obligor from performing that obligation, the remaining
obligors shall also be exempted from performing the obligation.
4. In cases where the obligee exempts only one
of the joint civil obligors from performing his/her/its own part of the
obligation, the remaining obligors shall still have to fulfill their own parts
of the obligation.
Article
299.- Performance of a civil obligation for joint obligees
1. A civil obligation for many joint obligees is
an obligation whereby each obligee may request the obligor to perform the
entire obligation.
2. The obligor may perform his/her/its own
obligation toward any of the joint obligees.
3. In cases where one of the joint obligees
exempts the obligor from performing the part of the obligation toward
him/her/it, the obligor must still perform the remainder of the obligation
toward the other joint obligees.
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1. A divisible civil obligation is an obligation
whereby the object of the obligation is a divisible thing or a task which can
be divided into parts for performance.
2. The obligor may perform the obligation part
by part, unless otherwise agreed upon.
Article
301.- Performance of indivisible civil obligations
1. An indivisible civil obligation is an
obligation whereby the object of the obligation is an indivisible thing or a
task which must be performed simultaneously.
2. In cases where many obligors must jointly
perform an indivisible obligation, they must perform the obligation
simultaneously.
Section 3. CIVIL LIABILITY
Article 302.- Civil
liability for breach of civil obligations
1. An obligor that fails to perform or performs
improperly his/her/its obliga-tion must bear civil liability to the obligee.
2. In cases where an obligor cannot perform a
civil obligation due a force majeure event, he/she/it shall not have
to bear any civil liability, unless otherwise agreed upon or provided for by
law.
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Article 303.- Civil
liability for failure to perform the obligation to hand over objects
1. When the obligor fails to perform the
obligation to hand over a distinctive object, the obligee is entitled to demand
the obligor to hand over that exact object; if the object no longer exists or
is damaged, the obligor must pay for the value of the object.
2. When the obligor fails to perform the
obligation to deliver a fungible object, he/she/it must pay for the value of
the object.
3. Where the obligor cannot perform the
obligation as provided for in Clauses 1 and 2 of this Article and cause damage
to the obligee, apart from paying for the value of the object, he/she/it must
also pay compensation for damage to the obligee.
Article 304.- Civil
liability for failure to perform an obligation to perform or not to perform a
task
1. In cases where the obligor fails to perform a
task he/she/it must perform, the obligee may request the obligor to keep
performing it or perform the task him/her/itself or assign another person to
perform such task and demand the obligor to pay for the reasonable expenses
incurred and to pay compensation for damage.
2. When the obligor is not allowed to perform a
task but still performs such task, the obligee is entitled to demand the
obligor to terminate such performance, restore the initial condition and pay
compensation for damage.
Article
305.- Civil liability for delayed performance of civil obligations
1. When the performance of a civil obligation is
delayed, the obligee may extend the time limit so that the obligor can fulfill
the obligation; if this time limit has expired and the obligation remains
unfulfilled, the obligor must, at the request of the obligee, still perform the
obligation and pay compensation for damage; if the performance of the
obligation is no longer necessary to the obligee, the obligee shall have the
right to refuse to accept the performance of the obligation and demand
compen-sation for damage.
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Article 306.- Civil liability
for delayed acceptance of the performance of civil obligations
The obligee that delays accepting the
performance of a civil obligation, thus causing damage to the obligor, must
compensate the obligor for the damage and bear all the risks arising as from
the time of delaying the acceptance, unless otherwise agreed upon or provided
for by law.
Article
307.- Liability to compen-sate for damage
1. The liability to compensate for damage
includes the liability to compen-sate for material damage and the liability to
compensate for mental damage.
2. The liability to compensate for material
damage is the liability to make up for the actual material losses caused by the
breaching party, which can be calculated in money and include the loss of
property, reasonable expenses incurred in preventing, mitigating and/or
redressing the damage and the actual loss or reduction of income.
3. A person causing mental damage to another
person by infringing upon the life, health, honor, dignity or prestige of such
person shall have to pay pecuniary compensation to the victim in addition to
stopping the infringement, offering an apology and making public rectification.
Article 308.- Fault
in civil liability
1. A person who does not perform or performs
improperly a civil obligation must bear civil liability if he/she is at fault
either intentionally or unintentionally, unless otherwise agreed upon or
provided for by law.
2. Intentionally causing damage means a
situation in which a person is fully aware that his/her act will cause damage
to another person and still performs the act, thereby allowing the damage to
occur whether intentionally or unintentionally.
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Section 4. TRANSFER OF THE
RIGHT TO DEMAND AND TRANSFER OF CIVIL OBLIGATIONS
Article
309.- Transfer of the right to demand
1. An obligee having the right to demand the
improperly of a civil obligation may transfer that right to a transferee under
agreement, except for the following cases:
a/ The right to demand support payment and to
demand compensation for damage caused by infringement upon his/her life,
health, honor, dignity or prestige;
b/ The obligee and the obligor have agreed not
to transfer the right to demand;
c/ Other cases provided for by law.
2. When an obligee transfers the right to demand
to a transferee, the later shall become the obligee holding the right to
demand.
The transferor of the right to demand must
notify the obligor in writing of the transfer of the right to demand. The
transfer of the right to demand does not require the consent of the obligor,
unless otherwise agreed upon or provided for by law.
Article 310.- Forms
of transfer of the right to demand
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2. In cases where it is provided for by law that
the transfer of the right to demand must be expressed in writing, notarized, or
authenticated, registered or permitted, such provisions must be complied with.
Article 311.- The
obligation to provide information and transfer papers
1. The transferor of the right to demand must
provide necessary information and transfer the relevant papers to the
transferee.
2. The transferor of the right to demand who
breaches the obligation provided for in Clause 1 of this Article and causes
damage shall have to compensate for the damage.
Article
312.- Non-liability after transferring the right to demand
The transferor of the right to demand shall not
have to bear liability for the obligor's capability to perform the obliga-tion,
unless otherwise agreed upon.
Article
313.- Transfer of the right to demand with measures to secure the
performance of civil obligations
In cases where the right to demand the
performance of civil obligations involves security measures, the transfer of
the right to demand shall also include such security measures.
Article 314.- The
obligor's right of refusal
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2. In cases where the obligor is not notified of
the transfer of the right to demand and has already performed the obligation
toward the transferor of the right to demand, the transferee must not demand
the obligor to perform the obligation toward him/her/it.
Article
315.- Transfer of civil obligations
1. The obligor may transfer a civil obligation
to a substitute obligor, if it is so consented by the obligee, except in cases
where the obligation is connected with the personal identity of the obligor or
where it is provided for by law that such obligation must not be transferred.
2. When being transferred an obligation, the
substitute obligor shall become the obligor.
Article 316.- Forms
of transfer of civil obligations
1. The transfer of a civil obligation shall be
expressed either in writing or orally.
2. Where it is provided for by law that the
transfer of obligation must be expressed in writing, notarized or
authenticated, registered or permitted, such provisions must be complied with.
Article
317.- Transfer of civil obligations with security measures
In cases where a secured civil obligation is
transferred, the security measures shall terminate, unless otherwise agreed
upon.
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I. GENERAL PROVISIONS
Article
318.- Measures to secure the performance of civil obligations
1. The measures to secure the performance of civil
obligations include:
a/ Pledge of property;
b/ Mortgage of property;
c/ Deposit;
d/ Security collateral;
e/ Escrow account;
f/ Guaranty;
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2. In cases where the security measures are
agreed upon by the parties or provided for by law, the obligor must implement
those security measures.
Article 319.- Scope
of security for the performance of a civil obligation
1. A civil obligation may be partially or fully
secured as agreed upon or as provided for by law; if the scope of security is
not agreed upon or provided for by law, the obligation shall be regarded as
fully secured, including the obligation to pay interests and compensation for
damage.
2. The parties may agree on measures to secure
the performance of civil obligations in order to secure the performance of
assorted obligations, including current obligations, future obligations or
conditional obligations.
Article 320.- Objects
used to secure the performance of civil obligations
1. Objects used to secure the performance of
civil obligations must be under the ownership rights of the securing party and
be permitted for transaction.
2. Objects used to secure the performance of
civil obligations are the existing objects or objects to be formed in the
future. Objects to be formed in the future are movable property or immovable
property under the ownership of the securing party after the time the
obligations are established or the security transactions are entered into.
Article 321.- Monies,
valuable papers used to secure the performance of civil obligations
Monies, bonds, shares, promissory notes and
other valuable papers can be used to secure the performance of civil
obligations.
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1. Property rights owned by the securing party,
including property rights arising from copyrights, industrial property rights,
rights to plant varieties, the right to claim debts, the right to receive
insurance indemnities for secured objects, property rights to capital amounts
contributed to enterprises, property rights arising from contracts and other
property rights of the securing party, may all be used to secure the
performance of civil obligations.
2. Land use rights may be used to secure the
performance of civil obligations in accordance with the provisions of this Code
and the law on land.
3. The right to exploit natural resources shall
be used to secure the performance of civil obligations in accordance with the
provisions of this Code and the law on natural resources.
Article 323.- Registration
of secured transactions
1. Secured transactions are civil transactions
for which, as agreed upon by the parties or provided for by law, the
application of security measures defined in Clause 1, Article 318 of this Code,
is required.
2. The registration of secured transactions
shall be carried out in accordance with the provisions of law on registration
of secured transactions. The registration shall constitute a condition for
secured transactions to be effective only in cases where it is so provided for
by law.
3. Where secured transactions are registered
under the provisions of law, such secured transactions shall be legally valid
for a third party as from the time of registration.
Article
324.- Property used to secure the performance of many civil obligations
1. A property can be used to secure the
performance of many civil obligations, if its value at the time of
establishment of the secured transaction is greater than the total value of all
secured obligations, unless otherwise agreed upon or provided for by law.
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3. In cases where property must be disposed of
to secure the performance of a due obligation, the other obligations, though
being undue, shall be considered being due and all the secures are entitled to
participate in the disposal of the property. The secure that has notified the
disposal of the property shall have to dispose of the property, unless
otherwise agreed upon by the secures.
In cases where the parties wish to continue performing
the undue obligations, they may reach agreement on the use of other property by
the securing party to secure the performance of undue obligations.
Article
325.- Priority order of payment
The payment priority order under the disposal of
security property shall be determined as follows:
1. In cases where the secured transactions are
registered, the payment priority order upon the disposal of security property
shall be determined according to the registration order;
2. In cases where one property is used to secure
the performance of many civil obligations with registered secured transactions
and unregistered secured transactions as well, priority shall be given to the
payment of registered secured transactions;
3. In cases where one property is used to secure
the performance of many civil obligations with all secured transactions being
unregistered, the payment priority order shall be determined according to the
order of establishment of secured transactions.
II. PLEDGE OF PROPERTY
Article 326.- Pledge
of property
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Article 327.- Forms
of pledge of property
The pledge of property must be established in
writing, either in a separate document or incorporated in a principal contract.
Article 328.- Effect
of pledge of property
A pledge of property shall take effect as from
the time of handing over the property to the pledgee.
Article
329.- Duration of pledge of property
The duration of a pledge of property shall be
agreed upon by the parties. In the absence of such agreement, the pledge
duration shall be counted till the termination of the obligation secured by the
pledge.
Article
330.- Obligations of the property pledgor
The property pledgor shall have the following
obligations:
1. To hand over the pledged property to the
pledgee as agreed upon;
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3. To pay the pledgee reasonable expenses
incurred for maintaining and preserving the pledged property, unless otherwise
agreed upon.
Article 331.- Rights
of the property pledgor
The property pledgor shall have the following
rights:
1. To demand that the pledgee suspend the use of
the pledged property in the cases specified in Clause 3, Article 333 of this
Code, if such use puts the pledged property in danger of loss or depreciation
of its value;
2. To sell the pledged property, if so agreed by
the pledgee;
3. To replace the pledged property with another
property, if so agreed upon;
4. To demand that the pledgee that keeps the
pledged property return the pledged property when the obligation secured by the
pledge has terminated;
5. To demand that the pledgee compensate for
damage caused to the pledged property.
Article
332.- Obligations of the property pledgee
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1. To maintain and preserve the pledged property;
if causing loss of, or damage to, the pledged property, to pay compensation for
damage to the pledgor;
2. Not to sell, exchange, donate, lease, or lend
the pledged property; not to use the pledged property to secure the performance
of another obligation;
3. Not to exploit the utility of, or enjoy the
yields and/or profits from, the pledged property, if not so consented by the
pledgor;
4. To return the pledged property upon the
termination of the obligation which is secured by the pledge or when it is
replaced by another security measure.
Article 333.- Rights
of the property pledgee
The property pledgee shall have the following
rights:
1. To demand that the person unlawfully
possessing or using the pledged property return the property;
2. To demand that the pledged property be
disposed of in the manner as agreed upon or provided for by law for the
performance of an obligation;
3. To exploit the utility of, and enjoy the
yields and/or profits from, the pledged property, if so agreed upon;
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Article 334.- Pledge
of many properties
In cases where many properties are pledged to
secure the performance of one civil obligation, each property shall be
determined as securing the performance of the entire obligation. The parties
may also agree that each property secures the performance of a part of the
obligation.
Article
335.- Cancellation of pledge of property
The pledge of a property may be cancelled, if so
consented by the pledgee.
Article
336.- Disposal of pledged property
In cases where the time for performing the civil
obligation becomes due and the pledgor has failed to perform or has performed
the obligation not in accordance with the agreement, the pledged property shall
be disposed of by the mode agreed upon by the parties or be auctioned under the
provisions of law for the performance of the obligation. The pledgee shall be
given priority to receive payment from the proceeds of the sale of the pledged
property.
Article
337.- Disposal of pledged property involving many objects
In cases where a pledged property comprises many
objects, the pledgee may choose specific property for disposal, unless
otherwise agreed upon. The pledgee may only handle a number of necessary
property corresponding to the value of the secured obligation; in case of
disposal in excess of the number of necessary property, causing damage to the
pledgor, the pledgee must pay compensation therefor to the pledgor.
Article 338.- Payment
of proceeds from the sale of pledged property
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Article
339.- Termination of pledge of property
The pledge of property shall terminate in the
following cases:
1. The obligation secured by the pledge has
terminated;
2. The pledge of property has been cancelled or
substituted by another security measure;
3. The pledged property has been disposed of;
4. It is so agreed by the parties.
Article 340.- Return
of pledged property
When the pledge of property is terminated as
provided for in Clauses 1 and 2 of Article 339 of this Code, the pledged
property and ownership right certificates shall be returned to the pledgor.
Yields and profits received from the pledged property shall also be returned to
the pledgor, unless otherwise agreed upon.
Article 341.- Pledge
of property at pawn shops
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III. MORTGAGE OF PROPERTY
Article
342.- Mortgage of property
1. The mortgage of property means the use by a
party (hereinafter referred to as the mortgagor) of his/her/its own property to
secure the performance of a civil obligation toward the other party
(hereinafter referred to as the mortgagee) without transferring such property
to the mortgagee.
In cases where an entire immovable or movable
property containing an auxiliary object is mortgaged, the auxiliary object of
such immovable or immovable property shall also belong to the mortgaged
property.
In cases where only part of the immovable or
movable property containing an auxiliary object is mortgaged, the auxiliary
object shall belong to the mortgaged property, unless otherwise agreed upon by
the parties.
The mortgaged property can also be the property
to be formed in the future.
2. The mortgaged property shall be held by the
mortgagor. The parties may agree to let a third party keep the mortgaged property.
3. The mortgage of land use rights shall comply
with the provisions of Articles 715 thru 721 of this Code and other relevant
provisions of law.
Article 343.- Forms
of property mortgage
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Article
344.- Duration of mortgage
The parties shall agree on the duration of a
mortgage of property; in the absence of such agreement, the mortgage shall last
until the termination of the obligation secured by the mortgage.
Article
345.- Mortgage of property currently being leased
A property that is being leased may also be
mortgaged. Yields and profits received from the lease of property shall belong
to the mortgaged property, if it is so agreed upon or provided for by law.
Article
346.- Mortgage of insured property
1. In cases where a mortgaged property is
insured, the insurance coverage shall also belong to the mortgaged property.
2. The mortgagee must notify the insurance
organization that the insured property is being used as mortgage. The insurance
organization shall pay the insurance indemnities directly to the mortgagee upon
the occurrence of an insured incident. In cases where the mortgagee fails to
notify the insurance organization that the insured property is being used as
mortgage, the insurance organization shall pay indemnities under the insurance
contract and the mortgagor is obliged to make payment to the mortgagee.
Article
347.- Mortgage of many properties to secure the performance of one civil
obligation
In cases where many properties are mortgaged to
secure the performance of one civil obligation, each property shall be
determined as securing the performance of the entire obligation. The parties
may also agree that each property secures the performance of part of the
obligation.
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The property mortgagor shall have the following
obligations:
1. To preserve and maintain the mortgaged
property;
2. To apply necessary remedial measures,
including the cessation of the exploitation of the utility of the mortgaged
property, if due to such exploitation the mortgaged property is in the danger
of loss or depreciation of its value;
3. To notify the mortgagee of a third party's
rights to the mortgaged property, if any; in case of non-notification, the
mortgagee may cancel the property mortgage contract and demand compensation for
damage or maintain the contract and accept the third party's rights to the
mortgaged property;
4. Not to sell, exchange or donate the mortgaged
property, except for the cases specified in Clauses 3 and 4, Article 349 of
this Code.
Article 349.- Rights
of the property mortgagor
The property mortgagor shall have the following
rights:
1. To exploit the utility of, and enjoy the
yields and profits from, the property, except in cases where the yields and
profits also belong to the mortgaged property as agreed upon;
2. To invest so as to increase the value of the
mortgaged property;
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In case of sale of the mortgaged property being
a commodity circulated in the process of production and/or business, the right
to demand the purchaser pay the money, the sale proceeds or the property formed
from the sale proceeds shall become the mortgaged property in replacement of
the sold property;
4. To sell, exchange or donate the mortgaged
property other than a commodity circulated in the process of production and/or
business, if so agreed by the mortgagee;
5. To lease, lend the mortgaged property but
with the notification to the lessee or the borrower that the leased or lent
property is being mortgaged, and to have to notify such to the mortgagee;
6. To reclaim the mortgaged property held by a
third party, when the obligation secured by the mortgage is terminated or
secured by another measure.
Article 350.- Obligations
of the property mortgagee
The property mortgagee shall have the following
obligations:
1. To return to the mortgagor the papers on the
mortgaged property upon termination of the mortgage in cases where the parties
agree that the mortgagee keeps the papers on the mortgaged property;
2. To request a state agency competent to
register secured transactions to delete the registration in the cases specified
in Articles 355, 356 and 357 of this Code.
Article 351.- Rights
of the property mortgagee
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1. To demand that the lessee or the borrower of
the mortgaged property in the case specified in Clause 5, Article 349 of this
Code terminate the use of the mortgaged property, if such use causes the loss
or decrease of the value of such property;
2. To directly check and inspect the mortgaged
property but not to hinder or cause difficulty to the use or exploitation of
the mortgaged property;
3. To demand that the mortgagor supply
information on the actual conditions of the mortgaged property;
4. To demand that the mortgagor apply necessary
measures to preserve the property, the property value in cases where exists the
danger of causing the loss or decrease of value of the property due to the
exploitation and use thereof;
5. To demand that the mortgagor or a third party
that keeps the mortgaged property return such property for disposal in cases
where the time for fulfillment of the obligation becomes due while the
obligagor fails to perform or improperly performs the obligation;
6. To supervise and inspect the process of
property formation in case of mortgaging the property to be formed in the
future;
7. To request the disposal of the mortgaged
property in accordance with the provisions of Article 355 or Clause 3 of
Article 324 of this Code and to be given priority in the settlement of
payments.
Article
352.- Obligations of a third party holding mortgaged property
A third party holding the mortgaged property
shall have the following obligations:
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2. To discontinue the exploitation of the
utility of the mortgaged property, in the case specified in Clause 1, Article
353 of this Code, if the continued exploitation thereof may put the mortgaged
property in the danger of losing or decreasing its value;
3. To hand back the mortgaged property to the
mortgagee or the mortgagor as agreed upon.
Article 353.- Rights
of the third party holding mortgaged property
The third party holding the mortgaged property
shall have the following rights:
1. To exploit the utility of, and enjoy the
yields and profits from, the mort-gaged property, if it is so agreed upon;
2. To be paid the remuneration and the expenses
for maintenance and preservation of the mortgaged property, unless otherwise
agreed upon.
Article
354.- Replacement and repair of mortgaged property
1. The mortgagor may replace the mortgaged property
only when it is so consented by the mortgagee, unless otherwise agreed upon,
except for the case specified in Clause 3, Article 349 of this Code.
2. In case of mortgage of a warehouse, the
mortgagor may replace commodities in the warehouse, but must strictly ensure
the value of the ware-housed commodities as agreed upon.
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Article
355.- Disposal of mortgaged property
In cases where the time for performing a civil
obligation becomes due and the obligor has failed to perform or has improperly performed
the obligation, the mortgaged property shall be disposed of in accordance with
the provisions of Articles 336 and 338 of this Code.
Article
356.- Cancellation of property mortgage
A property mortgage may be cancelled if the
mortgagee so consents, unless otherwise provided for by law.
Article
357.- Termination of property mortgage
A property mortgage shall terminate in the
following cases:
1. The obligation secured by the mortgage has
been terminated;
2. The property mortgage is cancelled or replaced
with another security measure;
3. The mortgaged property has been disposed of;
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IV. DEPOSITS
Article 358.- Deposit
1. Deposit is an act whereby one party transfers
a sum of money or precious metals, gems or other valuable things (hereinafter
referred to as the deposited property) to another party for a specified time
limit to secure the entry into, or the performance of, a civil contract.
Deposit must be established in writing.
2. In cases where a civil contract is entered
into or performed, the deposited property shall be returned to the depositor or
deducted for the performance of a payment obligation; if the depositor refuses
to enter into or perform the civil contract, the deposited property shall
belong to the depositary; if the depositary refuses to enter into or perform
the civil contract, he/she/it must return the deposited property and pay a sum
of money equivalent to the value of the deposited property to the deposi-tor,
unless otherwise agreed upon.
V. SECURITY COLLATERAL
Article
359.- Security collateral
1. Security collateral is an act whereby a
lessee of a movable property transfers a sum of money or precious metals, gems
or other valuable things (hereinafter referred to as security collateral
property) to the lessor for a specified time limit to secure the return of the
leased property.
2. In cases where the leased property is
returned, the lessee shall be entitled to reclaim the security collateral
property after deducting the rental; if the lessee does not return the leased
property, the lessor shall be entitled to reclaim the leased property; if the
leased property is no longer available for the return, the security collateral
property shall belong to the lessor.
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Article 360.- Escrow account
1. Escrow account is an act whereby an obligor
deposits a sum of money, precious metals, gems or valuable papers into a
blocked bank account to secure the performance of a civil obligation.
2. In cases where the obligor has failed to
perform or has improperly performed an obligation, the obligee shall be
entitled to receive payment and compensation for damage caused by the obligor
from the bank where the escrow account is effected, after deducting the bank
service charges.
3. The procedures for deposit and payment shall
be specified by the law on banking.
VII. GUARANTY
Article 361.- Guaranty
Guaranty is an act whereby a third party
(hereinafter referred to as the guarantor) commits with the obligee (hereinafter
referred to as the guarantee) to perform an obligation for the obligor
(hereinafter referred to as the guaranteed), when the obligation becomes due
and the guaranteed has failed to perform or has improperly performed the
obligation. The parties may also agree that the guarantor shall only be liable
to perform the obligation when the guaranteed is incapable of performing its
obligation.
Article 362.- Forms
of guaranty
The guaranty must be made in writing, either in
a separate document or incorporated in the principal contract. Guarantee
documents must be notarized or authenticated in cases where it is so provided
for by law.
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A guarantor may undertake to guarantee a part or
whole of the obligation for the guaranteed.
The guaranty obligation includes interest on the
principal, fines and damages, unless otherwise agreed upon.
Article
364.- Remuneration
The guarantor shall be entitled to remuneration
if so agreed upon between the guarantor and the guaranteed.
Article 365.- Joint
guarantors
When more than one person undertake to guarantee
an obligation, they must perform jointly the guaranty, except in cases where
they agree or it is provided for by law that the guaranty shall be in
independent shares; the obligee may demand that anyone of the joint guarantors
perform the entire obligation.
When one of the joint guarantors has performed
the entire obligation for the guaranteed, he/she/it shall have the right to
demand that the other guarantors perform their shares of the obligation to
him/her/it.
Article
366.- Relationship between the guarantor and the guarantee
1. The guarantee must not demand that the
guarantor perform an obligation for the guaranteed when the obligation has not
become due.
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Article 367.- The
guarantor's right to demand
When the guarantor has fulfilled his/her/its
obligation, he/she/it shall have the right to demand the guaranteed to perform
his/her/its obligation towards guarantor within the scope of the guaranty, if
not otherwise agreed upon.
Article 368.- Waiver
of the performance of guaranty
1. In cases where the guarantee exempt the
guarantor from the performance of obligation, the guaranteed shall still have
to perform the obligation towards the guarantee, except in cases where it is
agreed upon or provided for by law that the guaranty must be performed jointly.
2. In cases where one of the joint guarantors is
exempted from performing his/her/its part of the guaranty, the other joint
guarantors shall still have to perform their parts of the guaranty.
Article
369.- Disposal of the property of the guarantor
In cases when the time limit for performing the
obligation for the guaranteed becomes due and the guarantor has failed to
perform or has improperly performed the obligation, the guarantor must use
his/her/its own property to make payments for the guarantee.
Article
370.- Cancellation of guaranty
A guaranty may be cancelled if the guarantee so
consents, unless otherwise provided for by law.
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A guaranty shall be terminated in the following
cases:
1. The obligation secured by the guaranty is
terminated;
2. The guaranty is cancelled or is replaced by
another security measure;
3. The guarantor has performed the guaranty
obligation;
4. It is so agreed upon by the parties.
VIII. PLEDGE OF TRUST
Article 372.- Pledge
of trust guaranty by socio-political organizations
Local socio-political organizations may
guarantee by way of pledge of trust for poor individuals and households to
borrow sums of money from banks or other credit institutions for production,
business or provision of services in accordance with regulations of the
Government.
Article 373.- Forms
of pledge of trust guarantee
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Section 6. TERMINATION OF
CIVIL OBLIGATIONS
Article 374.- Bases
for termination of a civil obligation
A civil obligation shall terminate in the following
cases:
1. The obligation is fulfilled;
2. It is so agreed upon by the parties;
3. The obligee waives the performance of the
obligation;
4. The obligation is replaced by another civil
obligation;
5. The obligation is offset;
6. The obligee and the obligor merge;
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8. The obligor being an individual dies or the
obligor being a legal person or other subject ceases to exist while that
obligation must be performed by that very individual or legal person;
9. The obligee being an individual dies and
whose right to demand does not belong to the inheritance or the obligee being a
legal person ceases to exist and the right to demand must not be transferred to
another legal person or subject;
10. A distinctive object, as the object of the
obligation, ceases to exist and is replaced by another civil obligation.
11. Other cases provided for by law.
Article
375.- Fulfillment of civil obligations
A civil obligation shall be deemed completed
when the obligor has performed the entire obligation or part of the obligation
but the remaining parts are exempted by the obligee from the performance.
Article
376.- Fulfillment of a civil obligation in cases where the obligee delays
accepting the object of the obligation
1. When the obligee delays accepting the object
of an obligation, which is an object, the obligor must preserve the object or
may deposit it for safekeeping at a place of bailment and must immediately
notify the obligee thereof. The party delaying the acceptance must bear all
risks and expenses relating to its bailment.
The obligation to deliver an object shall be
completed at the time it is bailed in accordance with the quantity, quality and
other conditions agreed upon by the parties.
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Article
377.- Termination of civil obligations by agreement
The parties may agree to terminate a civil
obligation at any time, provided that such does not harm State interests,
public interests or legitimate rights and interests of other persons.
Article
378.- Termination of civil obligations due to waiver of the performance of
obligations
1. A civil obligation shall terminate when the
obligee waives the performance of obligation for the obligor, unless otherwise
provided for by law.
2. When a secured obligation is waived, the
security arrangement shall also terminate.
Article
379.- Termination of a civil obligation by substitution with another civil
obligation
1. In cases where the parties agree to
substitute the original civil obligation with another civil obligation, the
original civil obligation shall terminate.
2. The civil obligation shall also terminate if
the obligee has accepted another property or another task as a substitute for
the property or the task previously agreed upon.
3. In cases where the civil obligation is an
obligation to provide support payment, to pay compensation for damage due to
infringement on the life, health, honor, dignity and reputation, or other
personal obligation which cannot be transferred to other person, then it shall
not be substituted with another obligation.
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1. In cases where two parties have reciprocal
obligations with respect to properties of the same type and both of which are
due, they shall not have to perform obligations to each other and the
obligations shall be deemed terminated, except otherwise provided for by law.
2. In cases where the values of the properties
or the tasks are different, the parties shall pay the difference in value to
each other.
3. Objects which can be valued in money may be
used to offset the payment obligation.
Article 381.- Cases
where civil obligations must not be offset
A civil obligation must not be offset in the
following cases:
1. The civil obligation is in dispute;
2. The obligation is to compensate for damage to
life, health, dignity, honor or reputation;
3. The obligation is to provide support payment;
4. Other obligations provided for by law.
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When the obligor becomes the obligee with
respect to that particular obligation, the civil obligation shall terminate.
Article 383.- Termination
of civil obligations due to expiration of the statute of limitations for
exemption from civil obligations
When the statute of limitations for exemption
from civil obligations expires, the obligations shall terminate.
Article
384.- Termination of civil obligations when the obligor being an
individual dies or being a legal person, or another subject ceases to exist
When it is agreed upon by the parties or
provided for by law that the obligation must be performed by the obligor
him/her/itself, but such individual has died or the legal person or other
subject has ceased to exist, then that obligation shall terminate.
Article
385.- Termination of civil obligations when the obligee being an
individual dies or being a legal person or other subject ceases to exist
When it is agreed upon by the parties or
provided for by law that the obligation shall be performed only for the
individual, the legal person or the other subject, that is the obligee, but
such individual has died or such legal person or other subject has ceased to
exist, then that obligation shall also terminate.
Article
386.- Termination of civil obligation when distinctive objects no longer
exist
The obligation to hand over an object shall
terminate in cases where the object to be handed over is a distinctive object
which no longer exists.
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Article
387.- Termination of civil obligations in case of bankruptcy
In case of bankruptcy, civil obligations shall
terminate in accordance with the provisions of law on bankruptcy.
Section 7. CIVIL CONTRACTS
I. ENTRY INTO CIVIL
CONTRACTS
Article
388.- Definition of civil contracts
A civil contract is an agreement between the parties
to establish, change or terminate civil rights and/or obligations.
Article
389.- Principles for entering into civil contracts
The entry into a civil contract must adhere to
the following principles:
1. Freedom to enter into the contract, provided
that it is not contrary to law and social ethics;
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Article
390.- Offering to enter into civil contracts
1. Offering to enter into a contract means the
expression of the intention to enter into the contract and to be bound on this
offer of the offering party to the other specified party.
2. In cases where the offer to enter into a
contract clearly state the time limit for reply and the offer or enters into
the contract with a third party within such time limit, he/she/it must pay
compensation for damage to the offeree and must not enter into the contract if
damage is caused.
Article 391.- Time
when an offer to enter into a civil contract takes effect
1. The time when an offer to enter into a civil
contract takes effect shall be determined as follows:
a/ It is fixed by the offeror;
b/ If the offeror does not fix such time, the
offer to enter into a civil contract shall take effect from the time the
offeree receives such offer.
2. An offer to enter into a contract shall be
considered having already been received in the following cases:
a/ The offer is transferred to the place of
residence, if the offeree is an individual; to the headquarters, if the offeree
is a legal person;
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c/ When the offeree knew the offer to enter into
the contract by another mode.
Article
392.- Modification, revocation of offers to enter into civil contracts
1. The offeror may modify or revoke his/her
offer to enter into a contract in the following cases:
a/ If the offeree receives the notice on
modification or revocation of offer before or simultaneously with the time of
receiving the offer;
b/ The conditions for modification or revocation
of the offer arise in cases where the offeror has clearly stated the
eligibility for modification or revocation of the offer when such conditions
arise.
2. When the offeror changes the contents of the
offer, such offer shall be considered a new offer.
Article
393.- Cancellation of offers to enter into contracts
Where the offeror exercises the right to cancel
the offer as such right has been clearly stated in the offer, he/she/it must
notify the offeree thereof and such notification shall take effect only when it
is received by the offeree before the offeree replies to accept the offer to
enter into the contract.
Article
394.- Termination of offers to enter into contracts
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1. The offeree replies not to accept the offer;
2. The time limit for reply of acceptance has
expired.
3. When the notice on modication or revocation
of the offer takes effect;
4. When the notice on cancellation of the offer
takes effect;
5. It is so agreed upon by the offeror and the
offeree within the time limit for reply by the offeree
Article 395.- Offer
modification proposed by the offeree
When the offeree accepts to enter into a
contract but states the conditions therefore or modifies the offer, he/she/it
shall be considered having made a new offer.
Article
396.- Acceptance of offers to enter into contracts
The acceptance of an offer to enter into a
contract is the offeree’s reply to the offeror on the acceptance of the whole
contents of the offer.
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1. When the offeror fixes a time limit for
reply, the reply of acceptance shall be effective only when it is made within that
time limit; if the offeror receives the reply when the time limit for reply has
expired, the acceptance shall be considered a new offer of the party late in
replying.
In cases where the notice on acceptance of an
offer to enter into a contract arrives late for objective reasons which the
offeror knew or would have known, such notice on acceptance of the offer to
enter into the contract remains effective, except for cases where the offeror
immediately replies not to agree with such acceptance of the offeree.
2. When the parties are in direct contact,
including contacts via telephone or other means, the offeree must immediately
reply whether to accept the offer or not, except for cases where there in an
agreement on the time limit for reply.
Article 398.- Cases
where offerors die or lose their civil act capacity
In cases where the offeror dies or loses his/her
civil act capacity after the offeree accepts to enter into the contract, the
offer to enter into the contract remains valid.
Article 399.- Cases
where offerees die or lose their civil act capacity
In cases where the offeree dies or loses his/her
civil act capacity after making his/her reply to accept the offer to enter into
the contract, the reply of acceptance to enter into the contract remains valid.
Article
400.- Revocation of notice on acceptance to enter into contracts
The offeree may revoke his/her notice on
acceptance to enter into a contract if such notice arrives before or
simultaneously with the time the offeror receives the reply of acceptance.
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1. A civil contract can be made orally, in
writing or by specific acts, unless a specific form for such type of contract
is provided for by law.
2. In cases where it is provided for by law that
a contract must be expressed in writing with notarization or authentication,
must be registered or permitted, such provisions shall be complied with.
Contracts shall not be invalidated in case of
form-related breaches, unless otherwise provided for by law.
Article 402.- Contents
of civil contracts
Depending on each type of contract, the parties
may agree on the following contents:
1. Object of the contract, which is a property
to be handed over, or a task to be performed or not to be performed;
2. Quantity and quality;
3. Price and mode of payment;
4. Time limit, place and mode of performing the
contract;
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6. Liability for breach of contract;
7. Sanction against breach of contract;
8. Other contents.
Article 403.- Places
of entry into civil contracts
The place where a civil contract is entered into
shall be agreed upon by the parties; in the absence of such agreement, the
place of entry into a civil contract shall be the place of residence of the
individual or the head-office of the legal person that has made the offer to
enter into the contract.
Article 404.- Time of
entry into civil contracts
1. A civil contract shall be entered into at the
time when the offeror receives the reply of acceptance to enter into the contract.
2. A civil contract shall also be considered
having been entered into when the time limit for reply has expired and the
offeree remains silent, if it is agreed upon by the parties that silence means
the reply of acceptance.
3. The time of entry into an oral contract shall
be the time at which the parties have agreed on the contents of the contract.
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Article 405.- Effect
of civil contracts
Contracts that are legally entered into shall
take effect from the time they are entered into, unless otherwise agreed upon
or provided for by law.
Article 406.- Main
types of civil contract
Contracts shall have the following main types:
1. Bilateral contract, which is a contract under
which a party has the obligation to the other;
2. Unilateral contract, which is a contract
under which only one party has the obligation;
3. Principal contract, which is a contract the
effect of which does not depend on the auxiliary contract;
4. Auxiliary contract, which is a contract the
effect of which depends on the principal contract;
5. Contract for the benefit of a third party,
which is a contract under which the contracting parties must perform their
obligations and the third party shall enjoy benefits from the performance of
such obligations;
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Article
407.- Standardized contracts
1. A standardized contract is a contract which
contains provisions prepared by one party according to a standard contract and
given to the other party for reply within a reasonable period of time; if the
offeree gives its reply of acceptance, he/she/it shall be considered having
accepted the entire content of the standardized contract offered by the
offeror.
2. In cases where a standardized contract
contains ambiguous provisions, the offeror of the standardized contract shall
bear adverse consequences of the interpretation of such provisions.
3. In cases where a standardized contract
contains provisions exempting the liability of the offeror of the standardized
contract, while increasing the responsibility or abolishing legitimate
interests of the other party, such provisions shall not be valid, unless
otherwise agreed upon.
Article
408.- Appendices to contracts
1. Appendices may be attached to a contract to
detail some provisions of the contract. Appendices shall be as effective as the
contract. The contents of appendices shall not be contrary to the contents of
the contract.
2. In cases where appendices contain provisions
contrary to the contractual provisions, such provisions shall not be valid,
unless otherwise agreed upon. In cases where the parties accept appendices with
provisions contrary to contractual provisions, such contractual provisions
shall be considered having been amended.
Article
409.- Interpretation of civil contracts
1. When a contract contains ambiguous
provisions, the interpretation of such provisions shall be based not only on
the wording of the contract but also on the mutual intentions of the parties.
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3. When a contract contains wordings that may be
construed in different meanings, such wordings must be interpreted according to
the meaning which is most appropriate to the nature of the contract.
4. When a contract contains a provision or
wording that is difficult to understand, such provision or wording must be
interpreted according to practices at the place where the contract is entered
into.
5. When a contract lacks some provisions, such
provisions may be supplemented according to practices at the place where the
contract is entered into.
6. The provisions of a contract must be
interpreted in relation to each other, so that the meanings of such provisions
conform to the whole contents of the contract.
7. In case of contradiction between the mutual
intentions of the parties and the contractual wordings, the mutual intentions
of the parties shall be used for interpretation of the contract.
8. In cases where the advantageous party
includes in the contract the contents unfavorable for the disadvantageous
party, the interpretation of the contract must be made along the direction of
benefiting the disadvantageous party.
Article 410.- Invalid
civil contracts
1. The provisions on invalid civil transactions
in Articles 127 thru 138 of this Code shall also apply to invalid contracts.
2. The invalidation of principal contracts shall
terminate the auxiliary contracts, except in cases where the parties agree that
the auxiliary contracts can replace the principal contracts. This provision
shall not apply to the security measures for performance of civil obligations.
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Article 411.- Civil
contracts invalidated due to the existence of objects which cannot be realized
1. In cases where a contract, right at the time
it is entered into, contains an object which cannot be realized for objective
reasons, such contract shall be invalidated.
2. In cases where a contract is entered into and
a party knew or would have known that the contract contains an object which
cannot be realized but fails to notify such to the other party that has,
therefore, entered into the contract, the former must pay damages to the other
party, except for cases where the other party knew or would have known the
object which cannot be realized.
3. The provisions of Clause 2 of this Article
shall also apply to cases where a contract contains one or many parts of an
unrealizable object, while the remaining part of the contract remains legally
valid.
II. PERFORMANCE OF CIVIL
CONTRACTS
Article
412.- Principles for the performance of civil contracts
The performance of a civil contract must conform
to the following principles:
1. It must be performed in accordance with the
agreement on the object, quality, quantity, category, time limit, methods and
other agreements;
2. It must be performed honestly and in the
spirit of cooperation and in a manner that best benefits the parties and
ensures mutual trust;
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Article
413.- Performance of unilateral contracts
With respect to unilateral contracts, the
obligor must perform the obligation strictly as agreed upon and may only
perform the obligation prior to or after the time limit, if the obligee so
consents.
Article
414.- Performance of bilateral contracts
1. With respect to bilateral contracts where the
parties have agreed upon the time limit for performing the obligations, each
party must perform its obligations when they become due; must not delay the
performance for the reason that the other party has not yet performed its
obligations to the former, except for cases provided for in Article 415 and
Article 417 of this Code.
2. In cases where the parties have no agreement
on which party should perform his/her/its obligation first, the parties must
concurrently perform their obligations to each other; if the obligations cannot
be performed concurrently, the obligation the performance of which takes more
time than others shall be performed first.
Article 415.- The
right to post-pone the performance of civil obligations in bilateral contracts
1. The party that must perform its obligations
first shall have the right to postpone the performance of such obligations, if
the other party’s property has seriously depreciated to the extent that the
obligations cannot be performed as committed until the other party has the
capability to perform its obligations or has a guarantor.
2. The party that must perform its obligations
later shall have the right to postpone the performance of due obligations if
the party that must perform its obligations first has not yet performed its
obligations when they are due.
Article 416.- Lien on
property in bilateral contracts
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2. The lienor shall have the following rights
and obligations:
a/ To retain the whole or part of the property
in the cases defined in Clause 1 of this Article;
b/ To enjoy yields from the property subject to
a lien and use them to offset the obligations;
c/ To keep and preserve the property subject to
a lien;
d/ To request the owner of the property subject
to a lien to pay necessary expenses for the keeping and preservation of such
property.
3. A lien shall terminate in the following
cases:
a/ It is so agreed upon by the parties;
b/ The lienor violates the obligation to keep
and preserve the property subject to a lien;
c/ The owner of the property subject to a lien
has fulfilled their obligations.
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When a party to a bilateral contract is unable
to perform its obligations due to the fault of the other party, the former
shall have the right to demand that the other party still perform its
obligations toward the former or to cancel the contract and demand compensation
for damage.
Article
418.- Non-performance of obligations but not due to the faults of the
parties
When a party to a bilateral contract is unable
to perform its obligations but the parties are not at fault, the non-performer
of the obligations shall have no right to demand that the other party perform
its obligations toward him/her/it. In cases where a party has performed part of
the obligations, it shall have the right to demand the other party perform the
corresponding part of the obligations toward it.
Article
419.- Performance of a contract for the benefit of a third party
When a contract is performed for the benefit of
a third party, the third party shall have the right to directly request the
obligor to perform the obligation toward it; if there appears a dispute between
the parties over the performance of the contract, the third party shall not
have the right to demand the performance of the obligation until the dispute is
settled.
The obligee may also demand that the obligor
perform the contract for the benefit of the third party.
Article 420.- A third
party's right to refuse
In cases where a third party refuses to enjoy
its benefits before the obligor performs his/her/its obligations, the obligor
shall not have to perform his/her/its obligations, but must notify the obligee
thereof, and the contract shall be considered having been rescinded; the
parties shall have to return to each other what they have received; if the
third party refuses to enjoy its benefits after the obligor has performed
his/her/its obligations, the obligations shall be considered having been
fulfilled and the obligee must still fulfill his/her/its commitments toward the
obligor.
Article 421.- No
amendment or rescission of contracts for the benefits of a third party
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Article
422.- Performance of contracts with agreement on sanction against
violations
1. Sanction against violation means an agreement
between the contractual parties that the party violating the obligation must
pay a sum of money to the violated party.
2. The sanctioning level shall be agreed upon by
the parties.
3. The parties may agree that the violating
party shall only pay a fine for the violation but not have to pay compensation
for damage or shall have to pay both the fine for the violation and
compensation for damage; in the absence of prior agreement on the level of
compensation for damage, the compensation for the whole damage must be paid.
In cases where the parties have no agreement on
compensation for damage, the violating party shall have to pay only the fine
for the violation.
III. AMENDMENT AND
TERMINATION OF CIVIL CONTRACTS
Article
423.- Amendment of civil contracts
1. The parties may agree to amend their
contracts and resolve the consequences of such amendment, unless otherwise
provided for by law.
2. In cases where a contract has been made in
writing, notarized or authenticated, registered or permitted, the amendment of
the contract must also conform to such form.
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A contract shall terminate in the following
cases:
1. The contract has been fulfilled;
2. It is so agreed upon by the parties;
3. The individual entering into the contract
dies, or the legal person or other subjects entering into the contract cease to
exist while the contract must be performed by that very individual, legal
person or subjects;
4. The contract is rescinded or unilaterally
suspended from performance;
5. The contract cannot be performed because its
object no longer exists, and the parties may agree to substitute such object
with another object or compensate for damage;
6. Other cases provided for by law.
Article
425.- Rescission of civil contracts
1. A party shall have the right to rescind a
contract without having to compensate for damage if the breach of the contract
by the other party is a condition for rescission, as agreed by the parties or
provided for by law.
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3. When a contract is rescinded, it shall cease
to be valid ad initio and the parties must return to each other the
property they have received; if the property cannot be returned in kind, then
it shall be paid for in money.
4. The party at fault in the rescission of the
contract shall have to compensate for damage.
Article
426.- Unilateral termination of performance of civil contracts
1. A party shall have the right to unilaterally
terminate the performance of a contract if so agreed upon by the parties or
provided for by law.
2. The party that unilaterally terminates the
performance of the contract must immediately notify the other party of the
termination; if failing to give notification, thereby causing damage, it shall
have to pay compensation therefore.
3. When the performance of a contract is
unilaterally terminated, the contract shall terminate as from the time the
other party receives the termination notice. The parties shall not have to
continue to perform their obligations. The party that has already performed its
obligations shall have the right to demand payment from the other party.
4. The party at fault in the unilateral
termination of a contract must compensate for damage.
Article 427.- Statute
of limitations for initiating lawsuits related to civil contracts
The statute of limitations for initiating
lawsuits to request the courts to settle disputes over civil contracts shall be
two years counting from the date legitimate rights and interests of
individuals, legal persons or other subjects are infringed upon.
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COMMON CIVIL CONTRACTS
Section 1. CONTRACTS FOR
PROPERTY SALE AND PURCHASE
I. GENERAL PROVISIONS ON
CONTRACTS FOR PROPERTY SALE AND PURCHASE
Article
428.- Contracts for property sale and purchase
A contract for property sale and purchase is an
agreement between the parties whereby the seller has the obligation to hand
over the property to the purchaser and receive payment, while the purchaser has
the obligation to accept the property and make payment to the seller.
Article 429.- Objects
of sale and purchase contracts
1. The object of a sale and purchase contract
shall be a property permitted for transaction.
2. In cases where the object of a sale and purchase
contract is an object, that object must be clearly defined.
3. In cases where the object of a sale and
purchase contract is a property right, there must be documents of title or
other evidence proving such right of the seller.
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1. The quality of the objects for sale and
purchase shall be agreed upon by the parties.
2. In cases where the quality of objects has
been announced or provided for by competent state agencies, the quality of the
objects shall be determined in accordance with the announced standards or the
regulations of the competent state agencies.
3. When the quality of objects is not agreed
upon between the parties or not provided for by law, then the quality of the
objects for sale and purchase shall be determined according to the use purposes
and the average quality of objects of the same kind.
Article 431.- Price
and mode of payment
1. The price shall be agreed upon by the parties
or determined by a third party at the parties' request.
In cases where the parties agree to make
payments at market prices, the price shall be determined at the place and time
of payment.
With respect to the property in civil
transactions, for which the State has set a price frame, the price shall be
agreed upon by the parties in accordance with that price frame.
2. The parties may agree to apply inflation
coefficients upon the fluctuation of prices.
3. The agreed price may be a specific price
level or a method of determining the price. In cases where the agreement on the
price level or the price-determining method is not clear, the price of the
property shall be determined, based on the market price at the place and time
the contract is entered into.
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Article 432.- Time
limit for performance of sale and purchase contracts
1. The time limit for the performance of a sale
and purchase contract shall be agreed upon by the parties. The seller shall
have to hand over the property to the purchaser at the time agreed upon; the
seller may hand over the property before or after the time limit, only if the
purchaser so agrees.
2. When there is no agreement between the
parties on the time limit for handing over the property, the buyer shall have
the right to demand that the seller hand over the property and the seller shall
also have the right to demand that the purchaser receive the property at any
time, but the parties must notify each other thereof in advance within a
reasonable period of time.
3. When there is no agreement between the
parties on the time limit for payment, the buyer must make payment upon receipt
of the property.
Article 433.- Places
for handing over property
The place for handing over the property shall be
agreed upon by the parties; in the absence of such agreement, the provisions of
Clause 2, Article 284 of this Code shall apply.
Article 434.- Modes
of handing over property
The property shall be handed over by the mode
agreed upon by the parties; in the absence of such agreement, the property shall
be handed over in one installment by the seller directly to the purchaser.
Article
435.- Liability for handing over objects in an incorrect quantity
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2. In cases where the seller hands over the
object in a quantity smaller than that agreed upon, the purchaser shall have
one of the following rights:
a/ To receive the portion already handed over
and demand compensation for damage;
b/ To receive the portion already handed over
and set a time limit for the seller to hand over the deficit portion;
c/ To cancel the contract and demand
compensation for damage.
Article
436.- Liability for handing over objects in incomplete sets
1. In cases where the object is handed over in
an incomplete set, thereby making the use purpose of the object unachievable, the
purchaser shall have one of the following rights:
a/ To receive the object and demand that the
seller hand over the remaining part, demand compensation for damage and
postpone the payment for the part received until the complete set is handed
over;
b/ To cancel the contract and demand
compensation for damage.
2. In cases where the purchaser has made payment
but not yet received the object due to the hand-over of an incomplete set,
he/she/it shall be paid interests on the paid amount at the basic interest rate
set by the State Bank and demand that the seller compensate for damage due to
the hand-over of the incomplete set, starting from the time the contract must
be performed to the time the complete set is handed over.
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In cases where the object handed over is of a
wrong kind, the purchaser shall have one of the following rights:
1. To receive the object and make the payment at
the price agreed upon by the parties;
2. To demand the hand-over of object of the
right kind and compensation for damage;
3. To cancel the contract and demand
compensation for damage.
Article 438.- The
duty to pay
1. The purchaser must pay in full at the time
and place agreed upon; in the absence of such agreement, he/she/it must make
full payment at the time and place of handing over the property.
2. The purchaser must pay interests starting
from the date of late payment as specified in Clause 2, Article 305 of this
Code, unless otherwise agreed upon or provided for by law.
Article 439.- Time
for transfer of ownership rights
1. The rights to ownership over a property for
purchase and sale shall be transferred to the purchaser as from the time the
property is handed over, unless otherwise agreed upon by the parties or provided
for by law.
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3. In cases where the property for sale and
purchase has not yet been handed over while yields and/or incomes are
generated, such yields and/or incomes shall belong to the seller.
Article 440.- Time
for bearing risks
1. The seller shall bear the risks to the
property for purchase and sale until the property is handed over to the
purchaser; while the purchaser shall bear risks to such property from the time
of receiving it, unless otherwise agreed upon.
2. With respect to a contract for purchase and
sale of property to which the ownership rights must, as provided for by law, be
registered, the seller shall bear risks to such property until the registration
procedures are completed, and the purchaser shall bear the risks from the time
the registration procedures have been completed even when it has not yet
received the property, unless otherwise agreed upon.
Article
441.- Transportation costs and costs related to the transfer of ownership
rights
In cases where there is no agreement between the
parties or no legal provision on transportation costs and costs relating to the
transfer of ownership rights, the seller must bear the costs of transportation
to the place of handing over the property and the costs related to the transfer
of ownership rights.
Article 442.- The
obligation to provide information and use instructions
The seller is obliged to provide necessary
information on the property for purchase and sale, and instructions on the use
of such property; if the seller fails to perform this obligation, the purchaser
shall be entitled to request the seller to perform it; if the seller still
declines to perform it, the purchaser shall be entitled to cancel the contract
and demand compensation for damage.
Article
443.- Security of the purchaser's ownership rights to the property for
purchase and sale
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2. In cases where the property is disputed by a
third party, the seller must take side with the purchaser in order to protect
the latter's interests; if the third party is entitled to own part or the whole
of the property for purchase and sale, the purchaser shall be entitled to cancel
the contract and demand that the seller compensate for damage.
3. In cases where the purchaser knew or must
have known that the property for purchase and sale is under the ownership of a
third party, but still purchases it, he/she/it must return the property to its
owner and shall not be entitled to demand compensation for damage.
Article
444.- Security of the quality of objects for purchase and sale
1. The seller must secure the use value or
properties of an object for purchase and sale; if after the purchase, the
purchaser discovers a defect that devaluates or reduces the use value of the
object already purchased, he/she/it must promptly notify the seller of the
defect upon the detection thereof and is entitled to request the seller to
repair or change the defective or devalued object and compensate for damage,
unless otherwise agreed upon.
2. The seller must secure that the object for
sale conforms to the descriptions on its pack, trademark or to the sample that
has been selected by the purchaser.
3. The seller shall not be liable for defects of
the object in the following cases:
a/ Defect that the purchaser knew or must have
known when purchasing the object;
b/ The object auctioned or object sold at a
second-hand shop;
c/ The purchaser is at fault in causing the
defects of the object.
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The seller shall have the obligation to provide
warranty for a sold object for a period of time called warranty time limit, if
the warranty is agreed upon by the parties or provided for by law.
The warranty time limit shall be counted from
the time the purchaser has the obligation to receive the object.
Article 446.- The
right to demand warranty
Within the warranty time limit, if the purchaser
discovers a defect in the purchased object, he/she/it shall be entitled to
request the seller to repair it free of charge, reduce its price, exchange the
defective object for another one, or return the object and get back the money.
Article 447.- Repair
of objects within the warranty time limit
1. The seller must repair the object and secure
that the object meets all the quality standards or has all the properties as
committed.
2. The seller shall bear the expenses for repair
and transportation of the object to the place of repair and from the place of
repair to the place of residence or the head- office of the purchaser.
3. The purchaser shall be entitled to request
the seller to complete the repair within the time limit agreed upon by the
parties or within a reasonable period of time; if the seller cannot repair or
complete the repair within such time limit, the purchaser shall be entitled to
demand a price reduction, an exchange of the defective object for another one,
or return the object and get back the money.
Article 448.- Compensation
for damage within the warranty time limit
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2. The seller shall not have to compensate for
damage if he/she/it can prove that the damage was caused due to the purchaser's
fault. The seller shall be entitled to a reduction of damages if the purchaser
has not applied the necessary measures within his/her/its capacity to prevent
or limit the damage.
Article
449.- Purchase and sale of property rights
1. In case of purchase and sale of property
rights, the seller must transfer all documents of title and carry out the
procedures for transfer of ownership rights to the purchaser, whereas the
purchaser must pay money to the seller.
2. In cases where the property rights are rights
to claim debts and the seller warrants the debtor's solvency, the seller shall
be jointly liable for the payment if the debtor fails to pay the debt when it
is due.
3. The time for transferring the ownership of
property rights shall be the time at which the purchaser receives the papers
certifying the ownership of such property rights or from the time of
registration of the transfer of ownership rights, if so provided for by law.
II. CONTRACTS FOR PURCHASE
AND SALE OF HOUSES
Article 450.- Forms
of contracts for purchase and sale of residential houses
A contract for the purchase and sale of a
residential house shall be made in writing, with notarization or
authentication, unless otherwise provided for by law.
Article
451.- Obligations of the residential house seller
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1. To notify the purchaser of any restrictions
on ownership rights to the house, if any;
2. To maintain the residential house already
sold pending its transfer to the purchaser;
3. To transfer to the purchaser the residential
house in the same conditions as described in the contract and all the documents
on the house;
4. To strictly carry out all procedures for
purchase and sale of a residential house in accordance with the provisions of
law.
Article 452.- Rights
of the residential house seller
The residential hose seller shall have the following
rights:
1. To request the purchaser to receive the house
within the agreed time limit;
2. To request the purchaser to make payment
within the agreed time limit and by the agreed mode of payment;
3. To request the purchaser to complete all the
procedures for purchase and sale of residential houses within the agreed time
limit;
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Article
453.- Obligations of the residential house purchaser
The residential house purchaser shall have the
following obligations:
1. To pay the purchase money in full, on time
and by the agreed mode; if there is no agreement on the time limit and place of
payment, the purchaser must make the payment at the time when the seller hands
over the house and at the place where the house is located;
2. To receive the house and the documents on the
house within the agreed time limit;
3. In case of purchasing the house currently on
lease, the purchaser must secure the rights and interests of the lessee as
agreed upon in the lease contract when the lease remains in effect.
Article 454.- Rights
of the residential house purchaser
The residential house purchaser shall have the
following rights:
1. To receive the house in the same conditions
as agreed upon together with all the documents on the house;
2. To request the seller to complete all the
procedures for the purchase and sale of residential house within the agreed
time limit;
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Article
455.- Purchase of houses to be used for other purposes
Unless it is otherwise provided for by law, the
provisions of Articles 450 thru 454 of this Code shall also apply to the
purchase of houses to be used for other purposes other than the purchase of
residential houses.
III. SPECIFIC REGULATIONS
ON PROPERTY PURCHASE AND SALE
Article 456.- Auction
A property may be sold by auction at the will of
its owner or as provided for by law.
When a common property is to be sold by auction,
the consent of all co-owners must be obtained, unless otherwise agreed upon or
provided for by law.
Article 457.- Auction
notices
1. The auctioneer must make a public announcement
at the place of auction and on the mass media regarding the time, place,
quantity and quality and the list of property to be auctioned, at least seven
days for movables and thirty days for immovables before the date of auction.
2. Persons related to the property to be
auctioned must be notified of the auction for their participation in
determining the reserve price, unless otherwise agreed upon.
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1. At an auction, the auctioneer shall announce
the reserve price.
2. The person who offers the highest bid, which
is at least equal to the reserve price shall be the person entitled to purchase
the auctioned property and be considered having accepted to enter into a
contract.
3. The auction shall be recorded in writing with
the signatures of the purchaser, the seller and two witnesses.
4. The time limit for handing over the auctioned
property, the mode and time limit of payment shall comply with the regulations
on auction.
5. The auctioneer shall not be liable for the
value and quality of the auctioned property.
6. In cases where the announced highest bid is
lower than the reserve price, the auction shall be considered having failed.
The Government shall specify the organization
of, and the procedures for, property auction.
Article 459.- Auction
of immovable property
1. The auction of an immovable property shall be
held at the locality where the immovable property is located or at a place
determined by the auctioneer.
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3. In case of success in the purchase of the
auctioned property, the advance deposit shall be deducted from the purchase
price; if the successful bidder refuses to purchase, he/she shall not be
refunded with such money.
4. The auctioneer must refund the advance
deposits to other persons who have registered to purchase but could not
purchase the auctioned property.
5. The purchase and sale of an auctioned
immovable property must be recorded in writing with notarization or
authentication or must be registered, if so provided for by law.
Article
460.- Purchase after trial use
1. The parties may agree on a trial use by the
purchaser of the purchased objects for a period of time called the trial use
period. During the trial use period, the purchaser may reply to purchase or not
to purchase them; if the purchaser does not reply after the trial use period
expires, he/she shall be considered as having accepted the purchase on the
terms agreed upon prior to the receipt of the objects for trial use.
2. During the trial use period, the objects
still belong to the seller. The seller must bear all risks that may occur to
the objects, unless otherwise agreed upon. Within the trial use period, the
seller must not sell, donate, lease, exchange, mortgage or pledge the property,
pending the purchaser's reply.
3. In cases where the trial user gives the reply
of non-purchase, he/she must return the objects to the seller and compensate
the seller if he/she has caused the loss of, or damage to, the objects in trial
use. The trial user shall not be liable for ordinary wear caused by trial use,
and shall not have to return any yields gained from the trial use.
Article
461.- Purchase by deferred payment or installment payment
1. The parties may agree on the deferred payment
or installment payment by the purchaser within a time limit after receiving the
purchased objects; the seller shall have the right to reserve his/her ownership
rights to the sold objects until the purchaser has paid in full, unless
otherwise agreed upon.
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Article 462.- Redemption
of property already sold
1. The seller may agree with the purchaser on
the right to redeem the sold property within a time limit called the redemption
period.
The redemption period shall be agreed upon by
the parties, but shall not exceed one year for movables, and five years for
immovables, as from the time of handing over the property. Within this period,
the seller shall be entitled to redeem the property at any time, but must
notify the purchaser in advance within a reasonable period of time. The
redemption price shall be the market price at the time and place of redemption,
unless otherwise agreed upon.
2. Within the redemption period, the purchaser
must not sell, exchange, donate, lease, mortgage or pledge the property and
must bear risks to the property.
Section 2. CONTRACTS FOR
PROPERTY EXCHANGE
Article
463.- Contracts for property exchange
1. A contract for property exchange is an
agreement between the parties whereby the parties shall transfer their property
and ownership rights to such property to each other.
2. A contract for property exchange must be made
in writing, notarized or authenticated or registered, if so provided for by
law.
3. In cases where one party exchanges with the
other party a property not under its ownership rights or without authorization
of the owner, the other party shall be entitled to cancel the contract and
demand compensation for damage.
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Article 464.- Payment
for differences in value
In cases where the exchanged property has differences
in value, the parties must pay each other for such differences, unless
otherwise agreed upon or provided for by law.
Section 3. CONTRACTS FOR
DONATION OF PROPERTY
Article
465.- Contracts for donation of property
A contract for donation of property is an
agreement between the parties whereby the donor shall transfer his/her property
and ownership rights to the donee without demanding any compensation while the
donee agrees to receive it.
Article
466.- Donation of movables
A contract for donation of a movable property
shall take effect when the donee receives the property; with regard to a
movable property to which the ownership rights must be registered as provided
for by law, the contract for donation of such property shall take effect from
the time of registration.
Article
467.- Donation of immovables
1. The donation of an immovable property must be
made in writing, with notarization or authentication or must be registered, if
the ownership rights to such immovable must be registered as provided for by
law.
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Article
468.- Liability for intentional donation of property not under one's
ownership
In cases where the donor intentionally donates a
property not under his/her ownership while the donee does not know or cannot
know such, the donor must pay the donee the expenses for increasing the value
of the property when the owner recovers the property.
Article
469.- Notification of defects of donated property
The donor shall have the obligation to notify
the donee of the defects of the donated property. In cases where the donor
knows the defects of the donated property but fails to give notification
thereof, he/she must pay compensation for damage caused to the donee; if the
donor does not know the defects of the donated property, he/she shall not have
to pay compensation for damage.
Article
470.- Conditional donation of property
1. The donor may request the donee to perform
one or more than one civil obligation before or after the donation. The
conditions for the donation must not be contrary to law and social ethics.
2. In cases where the obligations must be
performed before the donation, if the donee has fulfilled his/her obligations
and the donor still has not handed over the property, the donor must pay for
the obligations already performed by the donee.
3. In cases where the obligations must be
performed after the donation and the donee has failed to perform them, the
donor shall be entitled to reclaim the property and demand compensation for
damage.
Section 4. CONTRACTS FOR
PROPERTY LOAN
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A contract for property loan is an agreement
between the parties whereby the lender transfers the property to the borrower;
when the loan is due, the borrower must return to the lender the property of
the same type in the same quantity and of the same quality, and shall have to
pay the interest only if so agreed upon or provided for by law.
Article
472.- Ownership rights to loaned property
The borrower shall become owner of the loaned
property from the time of receiving such property.
Article
473.- Obligations of the lender
The lender shall have the following obligations:
1. To hand over to the borrower the property in
full, of the right quality and in the right quantity at the time and place
agreed upon.
2. To compensate for damage to the borrower if
the lender is aware that the property is not of the required quality but fails
to notify the borrower thereof, except in cases where the borrower is aware
thereof but still receives such property;
3. Not to request the borrower to return the
property ahead of time, except for the cases specified in Article 478 of this
Code.
Article
474.- Borrowers' obligation to repay debts
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2. In cases where the borrower cannot return the
object, he/she may repay a sum of money equivalent to the value of the loaned
object at the place and time of repaying the debt, if so agreed by the lender.
3. The place for repayment of debts shall be the
place of residence or the head- office of the lender, unless otherwise agreed
upon.
4. In case of an interest-free loan, if the
borrower fails to repay or has not repaid fully the debt when it becomes due,
he/she must pay the interest on the amount of overdue debt at the basic
interest rate announced by the State Bank corresponding to the duration of late
payment at the time of repayment of the debt, if so agreed upon.
5. In case of a loan with interest, if the
borrower fails to repay or has not repaid fully the debt, he/she must pay the
interest on the principal and the interest thereon at the basic interest rate
announced by the State Bank corresponding to the borrowing term at the time of
repayment of the debt.
Article 475.- Use of
loaned property
The parties may agree that the loaned property
must be used for the right borrowing purpose; the lender shall be entitled to
inspect the use of the property and reclaim the loaned property ahead of time,
if the borrower still uses the property for other than the agreed purpose even
though he/she has been warned not to.
Article
476.- Interest rate
1. The lending interest rate shall be agreed
upon by the parties, but must not exceed 150% of the basic interest rate
announced by the State Bank for loans of the corresponding type.
2. In cases where the parties have agreed on the
payment of interest for a loan but have not clearly determined an interest rate
or have a dispute over an interest rate, the basic interest rate announced by
the State Bank corresponding to the borrowing term at the time of repayment of
the debt shall be applied.
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1. With respect to a contract for an
interest-free loan without a fixed term, the lender shall be entitled to
reclaim the property and the borrower shall be entitled to repay the debt at
any time, provided that they must notify each other thereof in advance within a
reasonable period of time, unless otherwise agreed upon.
2. With respect to a contract for a loan without
a fixed term and with interest, the lender shall be entitled to reclaim the
property at any time but must notify the borrower thereof in advance within a
reasonable period of time and be paid the interest up to the time of receiving
back his/her property, while the borrower shall also be entitled to return the
property at any time and pay only the interest up to the time of repaying the
debt but also must notify the lender thereof in advance within a reasonable
period of time.
Article
478.- Performance of fixed-term loan contracts
1. With respect to a contract for an
interest-free fixed-term loan, the borrower shall be entitled to return the
property at any time but must notify the lender thereof in advance within a
reasonable period of time, and the lender shall only be entitled to reclaim the
property ahead of time, if the borrower so agrees.
2. With respect to a contract for a fixed-term
loan with interest, the borrower shall be entitled to return the property ahead
of time, but must pay the interest for the whole term, unless otherwise agreed
upon.
Article 479.- Tontine
1. Tontine is a form of property transaction,
which is carried out according to practices and on the basis of agreement of a
group of people rallying together to determine the number of people, time,
money amounts or other property, mode of contributing and receiving annuities
and the rights and obligations of members.
2. The form of tontine for the purpose of mutual
assistance among people shall comply with the provisions of law.
3. It is strictly prohibited to organize
tontines in the form of usury.
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I. GENERAL PROVISIONS ON
CONTRACTS FOR PROPERTY LEASE
Article
480.- Contracts for property lease
A contract for property lease is an agreement
between the parties whereby the lessor shall hand over the property to the
lessee for use for a specified period of time, and the lessee must pay a rent.
Article 481.- Leasing
prices
The property-leasing prices shall be agreed upon
by the parties.
In cases where the leasing price frames are
provided for by law, the parties may only agree on leasing prices within such
price frames.
Article 482.- Leasing
terms
1. Leasing terms shall be agreed upon by the
parties; in the absence of such agreement, they shall be determined according
to the leasing purposes.
2. In cases where the parties have not agreed on
a leasing term or where the leasing term cannot be determined according to the
leasing purpose, the leasing contract shall expire when the lessee has achieved
the leasing purpose.
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The lessee shall be entitled to sublease the
property he/she/it has leased, if the lessor so agrees.
Article
484.- Hand-over of leased property
1. The lessor must hand over the property to the
lessee in the right quantity, quality, type, condition and at the time and
place agreed upon, and provide information necessary for the use of the
property.
2. In cases where the lessor delays the
hand-over of the property, the lessee may extend the time limit for the
hand-over or rescind the contract and demand compensation for damage; if the
quality of the leased property does not conform to the agreement, the lessee
shall be entitled to request the lessor to repair the property, reduce the
leasing price or to rescind the contract and demand compensation for damage.
Article 485.- The
obligation to ensure the use value of leased property
1. The lessor must ensure that the leased
property is in the condition as agreed upon, in accordance with the leasing
purpose throughout the leasing term; and must repair all damage and defects of
the leased property, except for minor damage which must, according to
practices, be fixed by the lessee himself/herself/itself.
2. In cases where the leased property is
decreased in use value but not due to the lessee's fault, the lessee shall be
entitled to request the lessor to:
a/ Repair the property;
b/ Reduce the leasing price;
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3. In cases where the lessor has been given a
notice but does not repair or make untimely repair, the lessee shall be
entitled to repair the leased property by himself/herself/itself, but must
notify the lessor thereof and shall be entitled to request the lessor to pay
the repair expenses.
Article 486.- The
obligation to ensure the lessee's right to use the property
1. The lessor must ensure the lessee's right to
a stable use of the property.
2. In case of a dispute over the ownership
rights to the leased property, which disallows the stable use of the property
by the lessee, the lessee shall be entitled to unilaterally terminate the
performance of the contract and demand compensation for damage.
Article 487.- The
obligation to preserve leased property
1. The lessee must preserve the leased property
as if it were his/her/its own, maintain it and make minor repairs; if causing
loss or damage, he/she/it must pay compensation therefor.
The lessee shall not be liable for natural wear
resulting from the use of the leased property.
2. The lessee may repair and add value to the
leased property, if the lessor so agrees, and shall be entitled to request the
lessor to pay the reasonable expenses.
Article 488.- The
obligation to use leased property according to its utility and for the right
purpose
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2. In cases where the lessee has used the leased
property not for the right purpose and not in accordance with its utility, the
lessor shall be entitled to unilaterally terminate the performance of the
contract and demand compensation for damage.
Article 489.- Payment
of rent
1. The lessee must pay in full the rent within
the time limit as agreed upon; where there is no agreement on the time limit
for rent payment, the time limit for rent payment shall be determined according
to practices at the place of payment; if the time limit for payment cannot be
determined according to practices, the lessee must pay the money when he/she/it
returns the leased property.
2. In cases where the parties have agreed on
periodic payments of the rent, the lessor shall be entitled to unilaterally
terminate the performance of the contract if the lessee does not pay the rent
for three consecutive periods, unless otherwise agreed upon or provided for by
law.
Article 490.- Return
of leased property
1. The lessee must return the leased property in
the same condition as when received, except for natural wear, or in the
condition agreed upon in the contract; if the value of the leased property has
decreased as compared with its condition upon receipt, the lessor shall be
entitled to demand compensation for damage, except for natural wear.
2. In cases where the leased property is a
movable, the place for returning the leased property shall be the place of
residence or the head office of the lessor, unless otherwise agreed upon.
3. In cases where the leased property is a
domestic animal, the lessee must return both the leased domestic animal and its
offsprings born in the leasing term, unless otherwise agreed upon. The lessor
must pay the expenses for caring for the offsprings to the lessee.
4. In cases where the lessee delays the return
of the leased property, the lessor shall be entitled to request the lessee to
return the leased property and pay the rent for the property for the delayed period
and compensate for damage; the lessee must also pay a fine for violation by
delaying the return of the leased property, if so agreed upon.
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Article 491.- Termination
of property lease contracts
A contract for property lease shall terminate in
the following cases:
1. The leasing term has expired;
2. The parties agree to terminate the contract
ahead of time; for a leasing contract without a definite term, if the lessor
wishes to terminate the contract, he/she/it must notify the lessee thereof in
advance within a reasonable period of time, if there is no agreement on an
advance notice period;
3. The contract is rescinded or the performance
of the contract is unilaterally terminated;
4. The leased property no longer exists.
II. CONTRACTS FOR RENTING
HOUSES
Article 492.- Form of
contracts for renting residential houses
A contract for renting a residential house must
be made in writing; if the renting term is six months or longer, the contract
must be notarized or authenticated and registered, unless otherwise provided
for by law.
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The residential house lessor shall have the
following obligations:
1. To hand over the house to the lessee in
accordance with the contract;
2. To ensure the stable use of the house by the
lessee in the renting term;
3. To maintain and repair the house periodically
or as agreed upon; if the lessor does not maintain and repair the house, thus
causing damage to the lessee, he/she/it must pay compensation therefore.
Article 494.- Rights
of the residential house lessor
The residential house lessor shall have the
following rights:
1. To receive the rent in full and on schedule
as agreed upon;
2. To unilaterally terminate the performance of
the house-renting contract under the provisions in Clause 1 and Clause 3,
Article 498 of this Code;
3. To renovate and upgrade the leased house when
so consented by the lessee, but not to cause inconveniences to the lessee in
using the accommodation;
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Article
495.- Obligations of the residential house lessee
The residential house lessee shall have the
following obligations:
1. To use the house for the right agreed
purpose;
2. To pay rent in full and on schedule as agreed
upon;
3. To preserve the house and repair damage
caused by himself/herself/itself;
4. To observe the regulations on public life;
5. To return the house to the lessor as agreed
upon.
Article 496.- Rights
of the residential house lessee
A residential house lessee shall have the following
rights:
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2. To be entitled to exchange the house being
rented to another lessee, if it is so consented in writing by the lessor;
3. To sublease the rented house, if it is so
consented in writing by the lessor;
4. To continue the rent under the conditions
agreed upon with the lessor in case of changing the house owner;
5. To request the lessor to repair the currently
leased house in cases where the house is heavily damaged;
6. To unilaterally terminate the performance of
the house-renting contract as provided for in Clause 2 and Clause 3, Article
498 of this Code.
Article 497.- Rights
and obligations of all the lessee's persons named in the contracts for renting
residential houses
All persons of the lessee who are named in the
house-renting contracts shall have equal rights and obligations toward the
lessor and must jointly perform the obligations of the lessee toward the
lessor.
Article
498.- Unilateral termination of performance of contracts for renting
residential houses
1. The lessor shall be entitled to unilaterally
terminate the performance of a house-renting contract when the lessee commits
one of the following acts:
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b/ Using the house not in accordance with the
renting purpose;
c/ Intentionally causing serious damage to the
house;
d/ Repairing, exchanging or subleasing the house
wholly or partially to another person without the written consent of the
lessor;
e/ Repeatedly disturbing public order and
seriously affecting the normal life of the people in the neighborhood;
f/ Causing serious impacts on environmental
sanitation.
2. The lessee shall be entitled to unilaterally
terminate the performance of a house-renting contract when the lessor commits
one of the following acts:
a/ Failing to repair the house when its quality
deteriorates seriously;
b/ Increasing the renting price unreasonably.
c/ Restricting the lessee's right to use the
house for the interests of a third party.
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Article
499.- Termination of contracts for renting residential houses
A residential house-renting contract shall
terminate in the following cases:
1. The renting term has expired; if the contract
does not specify the renting term, it shall terminate after six months from the
date the lessor notifies the lessee of the need of retaking the house;
2. The rented house no longer exists;
3. The lessee dies without leaving any
co-habitant;
4. The rented house must be demolished due to
severe damage that may cause the house to collapse or due to the implementation
of the State construction planning.
Article 500.- Renting of houses for
other purposes
Unless it is otherwise provided for by law, the
provisions of Articles 492 thru 499 of this Code shall also apply to the
renting of houses for non-residential purposes.
III. CONTRACTS FOR PACKAGE
LEASES OF PROPERTY
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A contract for a package lease of property is an
agreement between the partie whereby the package lessor hands over the property
to the lessee for the exploitation of its utility and the enjoyment of the
yields and profits gained from such property and the lessee has the obligation
to pay the rent.
Article 502.- Objects
of package lease contracts
Objects of a contract for a package lease of
property may be land, forest, unexploited water surface, animals, production
and/or business establishments, other means of production as well as necessary
equipment and facilities for exploiting the utility, enjoying the yields or
profits, unless otherwise provided for by law.
Article 503.- Package
lease term
The package lease term shall be agreed upon by
the parties according to the production and/or business cycle consistent with
the characteristics of the object of the package lease.
Article 504.- Package
lease price
The package lease price shall be agreed upon by
the parties; if a package lease is made through bidding, the package lease
price shall be determined by bidding.
Article
505.- Hand-over of package lease property
Upon the hand-over of the package lease property,
the parties must make record, evaluating the conditions of the package lease
property and determining the value of the package lease property.
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Article 506.- Payment
of package rent and mode of payment
1. Rent may be paid in kind, in cash or by
performing a task.
2. The package lessee must pay the package rent
in full even though he/she/it does not exploit the utility of the package lease
property.
3. When entering into a package lease contract,
the parties may agree on the conditions for reduction of the rent; if the
yields or profits are lost at least by one third due to a force
majeure event, the package lessee shall be entitled to demand a rent
reduction or exemption, unless otherwise agreed upon.
4. In cases where the package lessee has to pay
the rent in kind according to the season or the cycle of exploitation of the
utility of the package lease property, he/she/it must pay the rent at the end
of the season or the cycle of exploitation, unless otherwise agreed upon.
5. In cases where the lessee has to perform a
task, he/she/it must perform that very task.
Article
507.- Exploitation of package lease property
The package lessee must exploit the package
lease property in accordance with the agreed purpose and must notify the lessor
periodically of the conditions and exploitation of the property; if the package
lessor requests or needs unexpected notification, the package lessee must give
a notice in time. When the package lessee exploits the utility of the package
lease property at variance with the agreed purpose, the package lessor shall
have the right to unilaterally terminate the performance of the contract and
demand compensation for damage.
Article
508.- Preservation, maintenance and disposition of package lease property
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2. The package lessee may replace or improve the
package lease property by himself/herself/itself, if so agreed upon, and must
preserve its value.
The package lessor must reimburse to the lessee
the reasonable expenses for replacing or improving the package lease property
as agreed upon.
3. The package lessee shall not be allowed to
sublease, unless so consented by the package lessor.
Article
509.- Enjoyment of yields and incurring of damage to package lease animals
During the term of a package lease of animals,
the package lessee shall be entitled to enjoy half of the born offsprings and
incur half of the damage to the leased animals due to a force
majeure event, unless otherwise agreed upon.
Article
510.- Unilateral termination of performance of package lease contracts
1. In cases where a party unilaterally
terminates the performance of a contract, it must notify the other party thereof
in advance within a reasonable period of time; if the package lease is
contracted according the season or cycle of exploitation, the period of advance
notification must correspond to the season or cycle of exploitation.
2. In cases where the package lessee breaches
his/her/its obligations while the exploitation of the leased object is the sole
source of his/her/its livelihood and the continuation of the package lease does
not seriously affect the interests of the package lessor, the package lessor must
not unilaterally terminate the performance of the contract; the package lessee
must commit with the package lessor not to further breach the contract.
Article 511.- Return
of package lease property
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Section 6. CONTRACTS FOR
PROPERTY BORROWING
Article
512.- Contracts for property borrowing
A contract for property borrowing is an
agreement between the parties whereby the lender hands over the property to the
borrower for use in a specified time limit free of charge, and the borrower
must return such property when the borrowing term ends or the borrowing purpose
has been achieved.
Article 513.- Objects
of property-borrowing contracts
Everything that is non-expendable may be object
of a contract for borrowing a property.
Article
514.- Obligations of the property borrower
The property borrower shall have the following
obligations:
1. To preserve and maintain the borrowed
property as if it were his/her/its own property; not to change the conditions
of the borrowed property on his/her/its own will; if the property suffers
normal damage, it must be repaired;
2. Not to sub-lend the borrowed property without
the lender's consent;
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4. To compensate for damage if he/she/it causes
any damage to, or loss of, the borrowed property.
Article 515.- Rights
of the property borrower
The property borrower shall have the following
rights:
1. To use the borrowed property in accordance
with its utility and the agreed purpose;
2. To request the lender to reimburse the
reasonable expenses for any repair or for increasing the value of the borrowed
property, if so agreed upon.
3. Not to be liable for natural wear of the
borrowed property.
Article
516.- Obligations of the property lender
The property lender shall have the following
obligations:
1. To provide necessary information on the use
of the property and defects of the property, if any;
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3. To compensate the borrower for any damage, if
the lender knows about the defects of the property but does not inform the
borrower thereof, thus causing damage to the borrower, except for the defects
which the borrower knew or should have known.
Article 517.- Rights
of the property lender
The property lender shall have the following
rights:
1. To reclaim the property immediately after the
borrower has achieved his/her purpose, if there is no agreement on the
borrowing period; if the lender has urgent and unexpected needs to use the lent
property, he/she/its shall be entitled to reclaim the property even if the
borrower has not yet achieved his/her/its purpose, but must notify the borrower
thereof in advance within a reasonable period of time;
2. To reclaim the property when the borrower does
not use the property for the right purpose, in accordance with its utility or
the agreed method or the borrower sublends the property without the lender's
consent;
3. To demand compensation for damage caused to
the property by the borrower.
Section 7. SERVICE
CONTRACTS
Article 518.- Service
contracts
A service contract is an agreement between the
parties whereby the service provider shall perform a task for the service
hirer, and the service hirer must pay service charges to the service provider.
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The object of a service contract must be a
feasible task not prohibited by law and not contrary to social ethics.
Article
520.- Obligations of the service hirer
The service hirer shall have the following
obligations:
1. To supply the service provider with necessary
information, documents and means for the performance of the task, if so agreed
upon or so required by the performance of the task;
2. To pay service charges to the service
provider as agreed upon.
Article 521.- Rights
of the service hirer
The service hirer shall have the following
rights:
1. To request the service provider to perform
the task in accordance with the agreed quality, quantity, time limit, location
and other agreements;
2. In cases where the service provider violates
its obligations, the service hirer shall have the right to unilaterally
terminate the performance of the contract and demand compensation for damage.
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The service provider shall have the following
obligations:
1. To perform the task in accordance with the
agreed quality, quantity, time limit, location and other agreements;
2. Not to assign other persons to perform the
task without the service hirer's consent;
3. To preserve and return to the service hirer
the supplied documents and means after fulfillment of the task;
4. To immediately notify the service hirer of
any inadequacy of information and documents and poor quality of the means for
fulfilling the task;
5. To keep secret the information which
he/she/it has come to know during the time of providing the service, if so
agreed upon or provided for by law;
6. To compensate the service hirer for damage,
if he/she/it causes the loss of, or damage to, the supplied documents and/or
means or discloses secret information.
Article 523.- Rights
of the service provider
The service provider shall have the following
rights:
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2. To change the service conditions in the
interests of the service hirer without necessarily having to wait for the
opinion of the service hirer, if such wait may cause damage to the service
hirer, but the service provider must immediately notify the service hirer
thereof;
3. To request the service hirer to pay the
service charges.
Article 524.- Payment
of service charges
1. The service hirer must pay the service
charges as agreed upon.
2. When a contract is entered into without agreement
on the service charges, the method of determining the service charges or
without any other instructions on service charges, the service charges shall be
determined based on the market price of the service of the same kind at the
time and place the contract is entered into.
3. The service hirer must pay the service
charges at the place where the task is performed and when the service is
accomplished, unless otherwise agreed upon.
4. In cases where the service is provided below
the agreed level or the task is not accomplished on time, the service hirer
shall have the right to reduce the service charges and demand compensation for
damage.
Article
525.- Unilateral termination of performance of service contracts
1. In cases where the continued performance of a
task does not benefit the service hirer, the service hirer shall have the right
to unilaterally terminate the performance of the contract, but must notify the
service provider thereof in advance within a reasonable period of time; the
service hirer must pay the service charges for the service portion performed by
the service provider and compensate for damage.
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Article
526.- Continuation of service contracts
If after the expiry of the service period, the
task has not yet been accomplished and the service provider continues to
perform the task while the service hirer knows but does not object, the service
contract shall automatically continue to be performed in accordance with the
agreed contents until the task is accomplished.
Section 8. CONTRACTS FOR TRANSPORTATION
I. CONTRACTS FOR
TRANSPORTATION OF PASSENGERS
Article
527.- Contracts for transportation of passengers
A contract for transportation of passengers is
an agreement between the parties whereby the carrier shall transport the passenger
and his/her luggage to the specified destination as agreed upon, and the
passenger shall have to pay the transportation fare.
Article 528.- Forms
of contract for transportation of passengers
1. A contract for transportation of passengers
may be made in writing or orally.
2. Tickets shall be the evidence of the entry
into a contract for transportation of passengers between the parties.
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The carrier shall have the following
obligations:
1. To transport the passengers from the place of
departure to the place of destination on time, in a civilized and courteous
manner and safely by the agreed means and prescribed route; provide sufficient
seats for passengers and not transport in excess of the prescribed load;
2. To buy civil liability insurance for
passengers as provided for by law;
3. To ensure the departure time as notified or
agreed upon;
4. To transport luggage and return them to the
passengers or to the persons entitled to receive such luggage at the agreed place
and time along the route as agreed upon;
5. To reimburse the transportation fare to the
passengers as agreed upon or provided for by law.
Article 530.- Rights
of the carrier
The carrier shall have the following rights:
1. To request passengers to pay in full the
transportation fares and charges for the transport of accompanied luggage in
excess of the prescribed limit.
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a/ Where the passenger fails to comply with the
regulations of the carrier or commits acts of causing public disorder,
hindering the work of the carrier, threatening the life, health or property of
other persons or commits other acts threatening the safety of the journey; in
this case. the passenger shall not be refunded the transportation fare and must
be fined for violation, if so provided for by the transport regulations;
b/ Where the carrier clearly sees that due to
the health condition of the passenger, the transportation may cause danger to
the passenger him/herself or others during the journey;
c/ To prevent the spread of epidemics.
Article
531.- Obligations of the passenger
The passenger shall have the following
obligations:
1. To pay fully the passenger transportation fare
and the charge for the transport of luggage in excess of the prescribed limit,
and take care of his/her luggage by him/herself;
2. To be present at the place of departure on
the agreed time;
3. To respect and strictly observe the
regulations of the carrier and other regulations on traffic safety.
Article 532.- Rights
of the passenger
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1. To demand that he/she be transported by the
agreed means of transport, in the class commensurate with the value of the ticket
and along the agreed route;
2. To be exempt from the transport charges for
unaccompanied luggage and hand luggage within the limits agreed upon or
specified by law;
3. To demand the reimbursement of expenses
incurred or compensation for damage, if the carrier is at fault in failing to
conduct the transport according to the agreed time schedule and place;
4. To be entitled to the reimbursement of the
whole or part of the transportation fare in cases specified at Points b and c,
Clause 2, Article 530 of this Code and other cases specified by law or agreed
upon;
5. To receive the luggage at the agreed place,
on time and along the agreed route;
6. To request the temporary stop of the travel
within the time limit and according to the procedures specified by law.
Article
533.- Liability to compensate for damage
1. In cases of loss of human life and/or damage
to the health and luggage of passengers, the carrier must compensate therefore
in accordance with the provisions of law.
2. The carrier shall not have to compensate for
the loss of human life, and/or damage to the health and luggage of passengers
if such loss and/or damage is entirely due to the fault of the passengers,
unless otherwise provided for by law.
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Article
534.- Unilateral termination of performance of contracts for passenger
transportation
1. The carrier shall be entitled to unilaterally
terminate the performance of contracts in the cases specified in Clause 2,
Article 530 of this Code.
2. The passengers shall be entitled to
unilaterally terminate the performance of contracts in cases where the carrier
breaches the obligations specified in Clauses 1, 3 and 4, Article 529 of this
Code.
II. CONTRACTS FOR
TRANSPORTATION OF PROPERTY
Article
535.- Contracts for transportation of property
A contract for transportation of property is an
agreement between the parties whereby the carrier shall have the obligation to
carry the property to the specified place as agreed upon and hand over such
property to the person entitled to receive it and the transport hirer shall
have the obligation to pay the freight.
Article 536.- Forms
of contract for transportation of property
1. A contract for transportation of property
shall be made orally or in writing.
2. The bill of lading or other equivalent
transportation documents shall be the evidence of the entry into contracts
between the parties.
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1. The transport hirer shall have the obligation
to hand over the property to the carrier at the agreed time and place, to pack
the property in accordance with the agreed packing specifications; and to bear
the cost of loading/unloading his/her property onto/from the means of
transport, unless otherwise agreed upon.
2. In cases where the transport hirer does not hand
over the property at the agreed time and place, he/she must pay the carrier any
expenses incurred for the time of waiting and the cost of transportation of the
property to the place agreed in the contract or pay a fine for breach as agreed
upon; if the carrier delays the receipt of the property at the agreed place,
he/she/it must bear the cost incurred by the delay.
Article 538.- Freight
rates
1. The freight rates shall be agreed upon by the
parties; if the freight rates are provided for by law, such rates shall be
applied.
2. The transport hirer must pay in full the
freight once the property has been loaded onto the means of transport, unless
otherwise agreed upon.
Article
539.- Obligations of the carrier
The carrier shall have the following obligations:
1. To ensure that the property is transported in
full and safely to the designated place and on time;
2. To hand over the property to the person
entitled to receive it;
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4. To buy civil liability insurance as provided
for by law;
5. To compensate the transport hirer in cases
where the carrier causes the loss of, or damage to, the property due to the
carrier’s fault, unless otherwise agreed upon or provided for by law.
Article 540.- Rights
of the carrier
The carrier shall have the following rights:
1. To check the authenticity of the property and
the bill of lading or other equivalent transport documents;
2. To refuse to carry any property of types
other than those agreed upon in the contracts;
3. To request the transport hirer to pay freight
in full and on schedule;
4. To refuse to carry the property banned from
transaction, dangerous and/or noxious property, if the carrier knows or should
have known such;
5. To demand compensation for damage from the
transport hirer.
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The transport hirer shall have the following
obligations:
1. To pay the carrier the freight in full, on
schedule and by the agreed mode;
2. To take care of the property during the
transportation, if so agreed upon. In cases where the transport hirer takes
care of the property and the property is lost or damaged, the transport hirer
shall not be compensated therefore.
Article 542.- Rights
of the transport hirer
The transport hirer shall have the following
rights:
1. To request the carrier to transport the
property to the agreed place and at the agreed time;
2. To personally receive back or appoint a third
party to receive back the property the transport of which is hired;
3. To demand compensation for damage from the
carrier.
Article
543.- Delivery of property to the consignee
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2. The carrier must deliver the property to the
consignee in full, on schedule, at the agreed place and by the agreed mode.
3. In cases where the property has been
transported to the place of its delivery on time but there is no consignee, the
carrier may entrust such property to the place of bailment and must immediately
notify the transport hirer or the consignee thereof. The transport hirer or the
consignee shall have to bear all reasonable expenses arising from the bailment.
The obligation to deliver the property shall be
fulfilled when the bailed property satisfied the agreed conditions and the
transport hirer or the consignee has been notified of the bailment.
Article
544.- Obligations of the consignee
The consignee shall have the following
obligations:
1. To produce to the carrier a bill of lading or
other equivalent transport documents and receive the property on time and at
the agreed place;
2. To bear the costs of loading and/or unloading
the transported property, unless otherwise agreed upon or provided for by law;
3. To pay reasonable expenses arising from the
delay in receiving the property;
4. To notify the transport hirer of the receipt
of the property and other necessary information at his/her/its request; if not,
the consignee shall not have the right to request the transport hirer to
protect his/her/its rights and interests related to the transported property.
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The consignee shall have the following rights:
1. To check the quantity and quality of the
delivered property;
2. To receive the delivered property;
3. To request the carrier to pay reasonable
expenses arising from the waiting for the receipt of the property if the
carrier delays the delivery;
4. To personally request or ask the transport hirer
to request the carrier to compensate for loss of, or damage to, the property.
Article
546.- Liability to compensate for damage
1. The carrier must compensate the transport
hirer for damage, if causing loss of, or damage to, the property, except for cases
specified in Clause 2, Article 541 of this Code.
2. The transport hirer must compensate the
carrier and a third party for any damage caused by the dangerous or toxic
nature of the transported property if he/she/it fails to apply measures to pack
the property and/or to ensure safety during the transportation.
3. In case where a force majeure event
results in a loss, damage or destruction of the property during the
transportation, the carrier shall not be liable for compensating for any
damage, unless otherwise agreed upon or provided for by law.
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Article
547.- Processing contracts
A processing contract is an agreement between
the parties whereby the processor performs a task to make a product at the
processee's request and the latter shall receive the product and pay
remuneration therefore.
Article 548.- Objects
of processing contracts
The objects of a processing contract shall be
items which are pre-determined with the models and standards agreed upon by the
parties or provided for by law.
Article
549.- Obligations of the processee
The processee shall have the following
obligations:
1. To supply the processor with materials and/or
raw materials in accordance with the quantity, quality, time limit and place as
contracted, unless otherwise agreed upon; supply the necessary documents
related to the processing work;
2. To instruct the processor in performing the
contract;
3. To pay remuneration as agreed upon.
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The processee shall have the following rights:
1. To receive the processed products in
accordance with the agreed quantity, quality, mode, time limit and place;
2. To unilaterally terminate the performation of
the contract and demand compensation for any damage when the processor
seriously breaches the contract;
3. In cases where the products fail to meet the
quality and the processee agrees to accept them and demand repairs but the
processor cannot repair them within the agreed time limit, then the processee
shall be entitled to rescind the contract and demand compensation for damage.
Article
551.- Obligations of the processor
The processor shall have the following
obligations:
1. To preserve the materials and/or raw
materials supplied by the processee;
2. To notify the processee to replace the
materials and/or raw materials, if they fail to meet the quality; refuse to
perform the processing if the use of such materials and/or raw materials may
create products harmful to society; if the processor does not give such
notification or refusal, he/she shall be liable for the products turned out;
3. To deliver the products to the processee in
accordance with the agreed quantity, quality, mode, time limit and place;
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5. To take responsibility for the product
quality, except for cases where the poor quality of the products is attributed
to the materials and/or raw materials supplied by the processee or to
unreasonable instructions of the processee;
6. To return to the processee the remaining
materials and/or raw materials after the contract is completed.
Article 552.- Rights
of the processor
The processor shall have the following rights:
1. To request the processee to supply materials
and/or raw materials in accordance with the agreed quality, quantity, time
limit and place;
2. To reject any unreasonable instruction by the
processee if deeming that such instruction may reduce the product quality, but
must immediately notify the processee thereof;
3. To request the processee to pay the
remuneration in full, on schedule and by the agreed mode.
Article
553.- Liability to bear risks
Owners of materials and/or raw materials shall
bear all risks to their materials and/or raw materials and/or products made
therefrom until the products are delivered to the processee, unless otherwise
agreed upon.
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When the processor delays delivering the
products, thus causing risks to the processed products, he/she/it must
compensate for damage to the processee.
Article
554.- Hand-over and receipt of processed products
The processor shall have to hand over the
processed products and the processee shall have to receive them at the agreed
time and place.
Article 555.- Delay
in hand-over and receipt of processed products
1. In cases where the processor delays delivering
the processed products, the processee may extend the time limit; if past this
time limit the processor still has not accomplished the work, the processee
shall be entitled to unilaterally terminate the performance of the contract and
demand compensation for damage.
2. In cases where the processee delays receiving
the products, the processor may entrust such product to a place of bailment and
must immediately notify the processee thereof. The obligation to hand over
products is fulfilled once all the agreed conditions have been met and the
processee has been notified thereof. The processee shall bear all expenses
arising from the bailment.
Article
556.- Unilateral termination of processing contracts
1. Either party shall be entitled to
unilaterally terminate the performance of the processing contract if the
continued performance thereof does not benefit him/her/it, unless otherwise
agreed upon or provided for by law, but must notify the other party thereof in
advance within a reasonable period of time; if the processee unilaterally
terminates the performance of the contract, he/she/it must pay remunera-tion
corresponding to the performed work; if the processor unilaterally terminates
the performance of the contract, he/she/it shall not be paid any remuneration,
unless otherwise agreed upon.
2. The party that unilaterally terminates the
performance of the contract, thus causing damage to the other party must
compensate therefor.
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1. The processee must fully pay the remuneration
at the time of receipt of the processed products, unless otherwise agreed upon.
2. In cases where there is no agreement on the
remuneration rate, the average rate for making products of the same type at the
place of processing and at the time of payment shall apply.
3. The processee shall not be allowed to reduce
the remuneration, if the products do not meet the agreed quality due to the
materials and/or raw materials supplied by him/herself/itself or due to his/her/its
unreasonable instructions.
Article
558.- Liquidation of materials and raw materials
When a processing contract is terminated, the
processor must return the remaining materials and/or raw materials to the
processee, unless otherwise agreed upon.
Section 10. CONTRACTS FOR
BAILMENT OF PROPERTY
Article
559.- Contracts for bailment of property
A contract for bailment of property is an
agreement between the parties whereby the bailee agrees to keep in custody the
property entrusted to him/her/it by the bailor and shall return it to the
bailor upon the expiration of the contractual term, while the bailor shall have
to pay remuneration to the bailee, except for cases of free-of-charge bailment.
Article
560.- Obligations of the bailor
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1. To immediately notify, upon the hand-over of
property, the bailee of the conditions of the property and the appropriate
measures to preserve the bailed property; if failing to do so and the bailed
property is destroyed or damaged because of inappropriate preservation, the
bailor shall bear the loss or damage by him/herself/itself; if damage is
caused, he/she/it must compensate therefor.
2. To pay the remuneration in full, on schedule
and by the agreed mode.
Article 561.- Rights
of the bailor
The bailor shall have the following rights:
1. To reclaim his/her/its property at any time,
if the contract for bailment does not specify the time limit, but must notify
the bailee thereof in advance within a reasonable period of time;
2. To demand compensation for damage, if the
bailee causes the loss of, or damage to, the bailed property, except
for force majeurecases.
Article
562.- Obligations of the bailee
The bailee shall have the following obligations:
1. To preserve the property as agreed upon, and
return it to the bailor in the same condition as at the time of receipt for
bailment;
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3. To immediately notify the bailor in writing
of any risk of damage or destruction to his/her/its property due to the nature
of such property and request the latter to find a remedy within a certain time
limit; if such time limit has expired and the bailor does not reply, the bailee
shall be entitled to take necessary measures for preservation of the property
and demand the bailor to reimburse the expenses therefore;
4. To compensate for damage if causing the loss
of, or damage to, the bailed property, except for force
majeure cases.
Article 563.- Rights
of the bailee
The bailee shall have the following rights:
1. To request the bailor to pay the remuneration
as agreed upon;
2. To request the bailor to reimburse the
reasonable expenses for preserving the property in case of free-of-charge
bailment;
3. To request the bailor to take back
his/her/its property at any time, but must notify the bailor thereof in advance
within a reasonable period of time, in case of bailment for an indefinite
period of time;
4. To sell the bailed property which is in
danger of degeneration or destruction in order to ensure the bailor's
interests, notify the bailor thereof, and return the sale proceeds to the bailor
after deducting the reasonable expenses for the sale of property.
Article 564.- Return
of bailed property
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The place for return of the bailed property is
the place of bailment; if the bailor requests to have his/her/its property
returned at a place other than the place of bailment, then he/she/it must bear
the expenses for transporting the property to such place, unless otherwise agreed
upon.
2. The bailee must return the property on
schedule and shall be entitled to request the bailor to take back the property
ahead of schedule only if there is a plausible reason.
Article 565.- Delay
in hand-over, reception of bailed property
In cases where the bailee delays in the hand
over of property, he/she/it shall not be entitled to request the bailor to pay
remuneration and preservation expenses as from the time of hand-over delay and
must bear risks to the property during the period of delay in hand-over of the
property.
In cases where the bailor delays in the
reception of property, he/she/it must pay the preservation expenses and
remuneration to the bailee for the period of reception delay.
Article 566.- Payment
of remuneration
1. The bailor must pay remuneration in full when
taking back the bailed property, unless otherwise agreed upon.
2. In cases where the parties have no agreement
on the remuneration level, the average remuneration level at the place and time
of remuneration payment shall apply.
3. When the bailor takes back his/her/its
property ahead of schedule, he/she/it still has to pay the remuneration in full
and necessary expenses arising from the early return of the property by the
bailee, unless otherwise agreed upon.
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Section 11. INSURANCE CONTRACTS
Article
567.- Insurance contracts
An insurance contract is an agreement between
parties, whereby the insurance buyer must pay the insurance premium and the
insurer must pay a sum of insurance indemnity to the insured upon the occurence
of an insured event.
Article 568.- Types
of insurance contract
The insurance contracts include contracts for
human insurance, contracts for property insurance and contracts for civil
liability insurance.
Article 569.- Objects
of insurance
Objects of insurance include humans, property,
civil liability and others as specified by law.
Article 570.- Forms
of insurance contract
Insurance contracts must be made in writing. The
written insurance requests signed by insurance buyers constitute inseparable
parts of insurance contracts. The insurance certificates or applications shall
be the evidence of the entry into insurance contracts.
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An insured event is an objective event agreed
upon by the parties or specified by law, upon the occurrence of which the
insurer must pay an insurance indemnity to the insured, except for the cases
specified in Clause 2, Article 346 of this Code.
Article
572.- Insurance premium
1. The insurance premium is a sum of money paid
by the insurance buyer to the insurer.
The time limit for payment of insurance premium
shall be agreed upon or prescribed by law. The insurance premium may be paid in
lump sum or periodically.
2. In cases where the insurance buyer delays in
periodic payment of insurance premium, the insurer may set a time limit for the
insurance buyer to pay such premium; if upon the expiration of such time limit
the insurance buyer still fails to pay the insurance premium, the contract
shall terminate.
Article 573.- The
obligation of the insurance buyer to provide information
1. Upon entering into an insurance contract, the
insurance buyer must provide the insurer at the latter's request with the full
information concerning the objects of insurance, except for information which the
insurer already knew or should have known.
2. In cases where the insurance buyer
intentionally provides false information in order to enter into the contract
for enjoying the insurance indemnity, the insurer shall be entitled to
unilaterally terminate the performance of such contract and collect the
insurance premium up to the time of termination of the contract.
Article 574.- The
obligation to prevent damage
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2. In cases where the insured is at fault,
failing to take measures to prevent damage as contracted, the insurer may set a
time limit for the insured to take such measures; if such preventive measures
are not taken upon the expiration of this time limit, the insurer shall be
entitled to unilaterally terminate the performance of such contract or refuse
to pay the insurance indemnity upon the occurence of the damage due to the
insured's failure to take such preventive measures.
Article
575.- Obligations of the insurance buyer, the insured and the insurer when
insured events occur
1. Upon the occurence of an insured event, the
insurance buyer or the insured must immediately notify the insurer thereof and
take all necessary measures within his/her/its capacity to prevent or limit the
damage.
2. The insurer must pay all necessary and
reasonable expenses incurred by a third party to prevent or limit the damage.
Article 576.- Payment
of insurance indemnity
1. The insurer must pay the insurance indemnity
to the insured within the agreed time limit; if there is no agreement on such
time limit, the insurer must pay the insurance indemnity within fifteen days
from the date of receipt of the complete and valid dossier requesting the
payment of insurance indemnity.
2. In cases where the issurer delays the payment
of insurance indemnity, he/she/it must also pay the interest on the late paid
amount at the basic interest rate set by the State Bank at the time of payment
of insurance indemnity corresponding to the duration of the delayed payment.
3. In cases where the insured intentionally lets
the damage occur, the insurer shall not have to pay the insurance indemnity; if
such damage occurs due to the insured's negligence, the insurer shall not have
to pay the part of the insurance indemnity corresponding to the extent of the
insured's negligence.
Article
577.- Transfer of claim for reimbursement of indemnity
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2. In cases where the insured has received from
the third party the damages less than the amount of insurance indemnity payable
by the insurer, the insurer shall have to pay the insured only the difference
between the insurance indemnity and the amount paid by the third party, unless
otherwise agreed upon; if the insured has received the insurance indemnity less
than the damage caused to him/her/it by the third party, the insured shall
still have the right to request the third party to pay the difference between
the insurance indemnity and the damages.
The insurer shall have the right to demand the
third party to reimburse the amount of money he/she/it has paid to the insured.
Article 578.- Life
insurance
In case of life insurance, when the insured
event occurs, the insurer must pay the insurance indemnity to the insured or his/her
authorized representative; if the insured dies, the insurance indemnity shall
be paid to his/her heir(s).
Article
579.- Property insurance
1. The insurer must compensate for any damage
caused to the insured property in accordance with the agreed terms or the
provisions of law.
2. In cases where the ownership rights to the
insured property are transferred to another person, the new owner of such
property shall automatically substitute the former owner in the insurance
contract, as from the time such ownership rights are transferred. The former
owner who is the insurance buyer shall have to notify the new owner that the
property has been insured and notify the insurer in time that the ownership
rights to the property have been transferred.
Article 580.- Civil
liability insurance
1. In case of insurance of civil liability
toward a third party as agreed upon or provided for by law, the insurer must
pay indemnity to the insurance buyer or to the third party at the insurance
buyer's request for the damage caused to the third party by the insurance buyer
at the level of insurance as agreed upon or provided for by law.
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Section 12. MANDATE
CONTRACTS
Article 581.- Mandate
contracts
A mandate contract is an agreement between the
parties whereby the mandatary shall have the obligation to perform a task on
behalf of the mandator, and the mandator shall only have to pay remuneration,
if so agreed upon or provided for by law.
Article 582.- Time limit
of mandate
The time limit of mandate shall be agreed upon
by the parties or provided for by law; if there is no agreement or no legal
provisions theron, the mandate contract shall be effective for one year as from
the date the mandate is established.
Article
583.- Sub-mandate
The mandatary shall be entitled to submandate a
third party only if so consented by the mandator or so provided for by law.
The form of a submandate contract must also
conform to the form of the original mandate contract.
The submandate must not go beyond the scope of
the original mandate.
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The mandatary shall have the following
obligations:
1. To perform the task in accordance with the
mandate and notify the mandator of the performance thereof;
2. To notify a third party concerned with the
performance of the mandate of the mandate time limit and scope as well as any
amendments or additions to the scope of mandate;
3. To preserve and maintain the documents and
instruments entrusted to him/her for performing the mandate;
4. To keep secret the information which he/she
knew while performing the mandate;
5. To return to the mandator the property
received and benefits obtained in the process of performing the mandate as
agreed upon or provided for by law;
6. To compensate for any damage arising from any
breach of the obligations specified in Clauses 1, 2, 3, 4 and 5 of this
Article.
Article 585.- Rights
of the mandatary
The mandatary shall have the following rights:
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2. To be entitled to remuneration and
reimbursement of reasonable expenses he/she has paid for the performance of the
mandated task.
Article
586.- Obligations of the mandator
The mandator shall have the following
obligations:
1. To provide necessary information, documents
and means for the mandatary to perform the task;
2. To take responsibility for the commitments
performed by the mandatary within the scope of mandate;
3. To reimburse reasonable expenses paid by the
mandatary for the performance of the mandated task and pay remuneration to the
mandatary, if so agreed upon.
Article 587.- Rights
of the mandator
The mandator shall have the following rights:
1. To request the mandatary to fully notify the
performance of the mandated task;
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3. To be compensated for damage, if the mandatary
breaches the obligations specified in Article 584 of this Code.
Article
588.- Unilateral termination of performance of mandate contracts
1. In case of a mandate with remuneration, the
mandator may unilaterally terminate the perfomance of the contract at any time,
but must pay the mandatary a remuneration corresponding to the task already
performed by the mandatary and compensate for damage; if it is a mandate
without remuneration, the mandator may unilaterally terminate the performance
of the contract at any time, but must notify the mandatary thereof in advance
within a reasonable period of time.
The mandator must notify in writing a third
party of his/her unilateral termination of the performance of the contract; if
not, the contract with the third party shall remain in effect, except in cases
where the third party knew or must have known about the termination of the
mandate contract.
2. In case of a mandate without remuneration, the
mandatary may unilaterally terminate the performance of the contract at any
time, but must notify the mandator thereof in advance within a reasonable
period of time; if it is a mandate with remuneration, the mandatary may
unilaterally terminate the performance of the contract at any time, but must
compensate for any damage to the mandator.
Article
589.- Termination of mandate contracts
A mandate contract shall terminate in the
following cases:
1. The mandate contract has expired;
2. The mandated task has been fulfilled;
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4. The mandator or the mandatary dies, or is
declared by the court as losing his/her civil act capacity, having his/her
civil act capacity restricted, missing or dead.
Section 13. PROMISE OF
REWARD AND COMPETITION FOR PRIZES
Article 590.- Promise
of reward
1. A person who has publicly made a promise for
a reward shall have to give the promised reward to the person who has performed
the task at the request of the reward promisor.
2. The task for which the reward is promised
must be specific and feasible, and is neither prohibited by law nor contrary to
social ethics.
Article
591.- Withdrawal of the promise of reward
Before the time set for starting the performance
of the task, the reward promisor shall be entitled to withdraw his/her promise
of reward. The withdrawal of such promise of reward must be conducted in the
manner and by the medium in which the promise of reward was announced.
Article 592.- Grant
of reward
1. In cases where a task with a promise of
reward is performed by a person, such person shall be entitled to receive the
reward once the task is fulfilled.
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3. In cases where many persons fulfill a task
with a promise of reward at the same time, the promised reward shall be equally
shared among such persons.
4. In cases where many persons collaborate with
one another in performing a task with a promise of reward at the reward
promisor's request, then each person shall receive one part of the reward
corresponding to his/her contribution.
Article
593.- Competition for prizes
1. Organizers of cultural, artistic, sport,
scientific, technical competitions and other competitions which are not
contrary to law and/or social ethics shall have to announce the conditions for
participation, the scale of evaluation points, the prizes and the value of each
prize.
2. Any change to the conditions for
participation in a competition must be made in accordance with the announced
manner within a reasonable period of time before the competition begins.
3. A prize winner shall be entitled to demand
the organizer of the competition to grant the prize exactly of the announced
value.
Chapter XIX
PERFORMANCE OF TASKS
WITHOUT MANDATE
Article
594.- Performance of tasks without mandate
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Article
595.- Obligations to perform tasks without mandate
1. The person who performs a task without
mandate shall have the obligation to perform the task in accordance with to
his/her capacity and conditions.
2. The person who performs a task without
mandate shall have to perform such task as if it were his/her own; if he/she
knows or can guess the intention of the person for whom the task is performed,
he/she must perform the task in accordance with that intention.
3. The person who performs a task without
mandate must notify the person for whom the task is performed of the progress
and results of the performance of that task, if requested, except for cases
where the latter already knew or the person who performs the task without
mandate does not know the latter's place of residence.
4. In cases where the person for whom the task
is performed dies, the person who performs the task without mandate shall have
to continue the performance of that task until the heir or the representative
of the person for whom the task is performed takes over it.
5. If for justifiable reasons, the person who
performs the task without mandate is unable to continue the performance of the
task, he/she must notify the person for whom the task is performed or his/her
representative or next of kin thereof, or he/she may ask another person to
assume the task in his/her place.
Article 596.- Payment
obligation of the person for whom the task is performed
1. The person for whom a task is performed must
take over the task from the person who performs the task without mandate and
reimburse the reasonable expenses already paid by the latter for the
performance of the task, even in cases where the performance of the task has
not yielded the result desired by the former.
2. The person for whom a task is performed must
pay remuneration to the person who performs the task if the latter has
performed the task dutifully to the former's benefit, except in cases where the
person who performs the task without mandate refuses to receive it.
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1. When the person who performs a task without
mandate intentionally causes damage while performing the task, he/she shall
have to compensate the person for whom the task is performed.
2. If the person who performs a task without
mandate unintentionally causes damage while performing the task, then based on
the circumstances under which he/she assumed that task, such person may enjoy a
reduction of compensation.
Article 598.- Termination
of the performance of tasks without mandate
The performance of a task without mandate shall
terminate in the following cases:
1. At the request of the person for whom the
task is performed;
2. The person for whom the task is performed,
his/her heir or representative takes over the task;
3. The person who performs a task without
mandate is unable to continue the performance of the task according to the
provisions in Clause 5, Article 595 of this Code;
4. The person who performs the task without
mandate dies.
Chapter XX
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Article 599.- The
obligation to return
1. The possessor or user of another person's
property without a legal basis shall have to return such property to its lawful
owner or possessor; if the lawful owner or possessor cannot be found, the
property shall be handed over to a competent state authority, except for the
cases specified in Clause 1, Article 247 of this Code.
2. The person who benefits from a property
without a legal basis thus causing damage to another person shall have to
return these benefits to the damage sufferer, except for the cases specified in
Clause 1, Article 247 of this Code.
Article
600.- Property to be returned
1. A possessor or user of a property without a
legal basis must return the entire property he/she has acquired;
2. In cases where the property to be returned is
a distinctive object, he/she must return that exact object; if that distinctive
object is lost or damaged, he/she must pay pecuniary compensation therefore,
unless otherwise agreed upon;
3. In cases where the property to be returned is
a fungible object which has been lost or damaged, he/she must return object of
the same type or pay pecuniary compensation therefore, unless otherwise agreed
upon.
4. The person who enjoys benefits from a
property without a legal basis shall have to return these benefits in kind or
in money to the person who has sustained the loss of benefits.
Article 601.- The
obligation to return yields or profits
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2. The person who possesses, uses or enjoys
benefits from a property without a legal basis but in good faith shall have to return
the yields or profits gained as from the time he/she knew or should have known
that such possession or use of the property, or such enjoyment of benefits from
the property lacked a legal basis, except for the cases specified in Clause 1,
Article 247 of this Code.
Article 602.- The
right to demand return of property from a third person
In cases where the possessor or user of a
property without a legal basis has transferred the property to a third person,
when the lawful owner or possessor of the property demands the return of the
property, the third person shall have to return such property, unless otherwise
provided for by this Code; if the property has been paid for in money, or in
compensation, the third party shall be entitled to demand the transferor to
compensate for damage.
Article 603.- Payment
obligation
If the lawful owner, possessor or the damage
sufferer recovers the property, he/she shall have to reimburse the necessary
expenses paid by the possessor, user or beneficiary of the property without a
legal basis but in good faith for preserving or increasing the value of the
property.
Chapter XXI
LIABILITY TO COMPENSATE
FOR DAMAGE OUTSIDE CONTRACT
Section 1. GENERAL
PROVISIONS
Article 604.- Grounds
for liability to compensate for damage
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2. In cases where the law provides that the
persons who cause damage must compensate even when they are not at fault, such
provision shall apply.
Article
605.- Principles for damage compensation
1. Damage must be compensated in full and in
time. The parties may agree on the compensation levels, the form of
compensation either in cash, in kind, or by the performance of a task, and on
the mode of compensation either in lump sum or in installment, unless otherwise
provided for by law.
2. Persons who cause damage may be entitled to
reduction of compensation levels, if they unintentionally cause the damage
which is too great for their economic capabilities at present and in the
future.
3. When the compensation levels are no longer
suitable to reality, the persons who suffered from damage or the persons who
caused the damage may request the Court or other competent state agencies to
change the compensation levels.
Article
606.- Liability capacity of individuals to compensate for damage
1. Persons aged full eighteen years or older who
cause damage shall have to compensate by themselves.
2. If a minor under fifteen years old, whose
father and/or mother are/is still alive, causes damage, his/her father and/or
mother shall have to compensate the whole damage; if the property of his/her
parents is not enough for compen-sation while the minor who causes the damage
has his/her own property, this property shall be used to make up for the
deficit, except for the cases specified in Article 621 of this Code.
If persons aged between full fifteen years and
under eighteen years cause damage, they must compensate for the damage with
their own property; if their property is not enough for compensation, their
parents shall have to make up for the deficit with their own property.
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Article 607.- Statute
of limitations for initiating lawsuits to demand for damage compensation
The statute of limitations for initiating
lawsuits to demand for damage compensation shall be two years counting from the
date the legitimate rights and interests of individuals, legal persons or other
subjects are infringed upon.
Section 2. DETERMINATION
OF DAMAGE
Article 608.- Damage
caused by infringement upon property
In case of infringement upon property, the
damage to be compensated for shall cover:
1. The lost property;
2. The destroyed or damaged property;
3. The interests associated with the use or
exploitation of such property;
4. The reasonable expenses for preventing,
limiting and remedying the damage.
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1. Damage caused by infringement upon health
shall cover:
a/ Reasonable expenses for treatment, nursing
and the rehabilitation of health and/or lost or impaired functions of the
victims;
b/ The loss or reduction of the victims' actual
incomes; if the victims' actual incomes are not stable, thus being unable to be
determined, the average income earned for the same type of work shall be
applied;
c/ Reasonable expenses and the loss of actual
incomes of the persons who take care of the victims during the time of
treatment; if the victims lose their working capacity and need people to care
for them permanently, the damage shall also cover the reasonable expenses for
caring for the victims.
2. The persons who infringe upon the health of
others must compensate for damage as provided for in Clause 1 of this Article
and pay another sum of money as compensation for their mental sufferings, which
shall be agreed upon by the parties; if there is no such agreement, the maximum
level shall not exceed thirty months' minimum salary set by the State.
Article 610.- Damage
caused by infringement upon life
1. Damage caused by infringement upon life shall
cover:
a/ Reasonable expenses for the treatment,
nursing and taking care of the victims before they die;
b/ Reasonable expenses for funeral;
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2. The persons who infringe upon the lives of
others shall have to compensate for damage as provided for in Clause 1 of this
Article and pay a sum of money as compensation for the mental sufferings to the
victims's next of kin in the first rank of inheritance; if these persons are
not available, the persons who the victims have directly nurtured or the
persons who have directly nurtured the victims shall enjoy this sum of money.
The levels of compensation for mental sufferings shall be agreed upon by the
parties; in the absence of such agreement, the maximum compensation level shall
not exceed sixty months' minimum salary set by the State.
Article 611.- Damage
caused by infringement upon honor, dignity or prestige
1. Damage caused by infringement upon the honor,
dignity or prestige of individuals or damage caused by infringement upon the
honor or prestige of legal persons or other subjects shall cover:
a/ The reasonable expenses for limiting and/or
remedying the damage;
b/ The actually lost or reduced income.
2. The persons who infringe upon the honor,
dignity or prestige of others must compensate for damage as provided for in
Clause 1 of this Article and pay a sum of money as compensation for mental
sufferings caused to such persons. The levels of compensation for mental
sufferings shall be agreed upon by the parties; if there is no such agreement,
the maximum compensation level shall not exceed ten months' minimum salary set
by the State.
Article
612.- Duration for enjoyment of compensation for damage caused by
infringement on life or health
1. In cases where the victims have completely
lost their working capacity, they shall be entitled to enjoy compensation until
they die.
2. In cases where a victim dies, the persons who
were supported by the victim during his/her lifetime shall be entitled to the
support money for the following time limit:
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b/ Adults who have no working capacity shall be
entitled to the support money until they die.
Section
3. COMPENSATION FOR DAMAGE IN A NUMBER OF SPECIFIC CASES
Article
613.- Compensation for damage caused by acts beyond the limits of
legitimate self-defense
1. Persons causing damage in case of legitimate
self-defense shall not have to compensate the victims.
2. Persons acting beyond the limits of
legitimate self-defense and causing damage must compensate the victims.
Article 614.- Compensation
for damage caused by acts beyond the requirements of emergency circumstances
1. Persons causing damage in emergency
circumstances shall not have to compensate the victims.
2. In cases where damage is caused by acts beyond
the requirements of an emergency circumstance, the persons causing such damage
must compensate the victims.
3. Persons causing emergency circumstances that
resulted in damage must compensate the victims.
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1. A person who, due to the consumption of
alcohol or the use of other stimulants, falls into a state where he/she is
unable to cognize and control his/her own acts and thereby causes damage to
another person shall have to compensate.
2. When a person who intentionally uses alcohol
or other stimulants to make another person fall into a state of being unable to
cognize and control his/her own acts, and thereby causes damage, shall have to
compensate the victim.
Article 616.- Compensation
for damage caused by more than one person
In cases where many persons jointly cause
damage, they shall have to jointly compensate the victim. The compen-sation
liability of each of the persons who have jointly caused the damage shall be
determined correspon-dingly to each person's fault; if the extent of fault
cannot be determined, they shall have to equally pay compensation for the
damage.
Article
617.- Compensation for damage in cases where victims are at fault
When a victim is also at fault in causing the
damage, the person who causes the damage shall have to pay only the
compensation corresponding to his/her fault; if the victim is totally at fault,
the person who causes the damage shall not have to compensate.
Article
618.- Compensation for damage caused by personnel of a legal person
Legal persons must compensate for damage caused
by their personnel while performing their assigned tasks; if the legal
persons have already compensated for the damage, they shall have the right to
request the persons who are at fault in causing the damage to refund the
amounts of compensation they have already paid to the victims as provided for
by law.
Article
619.- Compensation for damage caused by public servants
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Agencies or organizations shall have the
responsibility to request public servants under their management to refund the
amount of money they have paid in compensation to the victims as provided for
by law, if the public servants are at fault while performing their public
duties.
Article
620.- Compensation for damage caused by competent personnel of agencies
conducting legal proceedings
Agencies conducting legal proceedings must
compensate for damage caused by their competent personnel while performing
tasks in the process of conducting legal proceedings.
Agencies conducting legal proceedings shall have
the responsibility to request their competent persons who have caused damage to
refund the amounts of money they have paid in compensation to the victims as
provided for by law, if that competent persons are at fault while performing
their tasks.
Article
621.- Compensation for damage caused by persons under fifteen years old,
or persons having lost their civil act capacity while under the direct
management of schools, hospitals or other organizations
1. For persons aged under fifteen years who
cause damage while at schools, the schools must compensate for the damage
caused.
2. For persons having lost their civil act
capacity who cause damage to others while being under the direct management of
hospitals or other organizations, the hospitals or such organizations shall
have to compensate for the damage caused.
3. In the cases specified in Clause 1 and Clause
2 of this Article, if the schools, hospitals or other organizations can prove
that they are not at fault in the management thereof, the fathers, mothers or
guardians of such under-fifteen persons or persons having lost their civil act
capacity shall have to compensate.
Article
622.- Compensation for damage caused by employees or apprentices
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Article
623.- Compensation for damage caused by sources of extreme danger
1. Sources of extreme danger include motorized
means of transport, power transmission systems, industrial factories in
operation, weapons, explosives, inflammables, poisons, radioactive substances,
wild beasts and other sources of extreme danger specified by law.
The owner of a source of extreme danger must
comply with the regulations on maintenance, keeping, transportation and use of
sources of extreme danger in accordance with the provisions of law.
2. The owner of a source of extreme danger shall
have to compensate for damage caused by such source of extreme danger; if
he/she has assigned the possession or use of such source of extreme danger to
another person, such person shall have to compensate, unless otherwise agreed
upon.
3. The owner of, or the person assigned by the
owner to possess or use, a source of extreme danger shall have to compensate
for damage even if he/she is not at fault, except for the following cases:
a/ Where the damage occurred totally due to the
intentional fault of the victim;
b/ Where the damage occurred due to force
majeure or emergency circumstance, unless otherwise provided for by law.
4. In cases where a source of extreme danger is
illegally possessed or used, the illegal possessor or user shall have to compensate
for the damage.
If the owner of, or person assigned by the owner
to possess or use, a source of extreme danger is also at fault in letting the
source of extreme danger be illegally possessed or used, he/she shall have to
jointly compensate for the damage.
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Individuals, legal persons or other subjects who
pollute the environment and thereby cause damage shall have to compensate as
provided for by law, even in cases where the environment polluters are not at
fault.
Article
625.- Compensation for damage caused by animals
1. The owner of an animal shall have to
compensate for damage caused by the animal to another person; if the victim is
completely at fault in letting the animal cause the damage to him/her, the
owner of the animal shall not have to compensate.
2. In cases where a third party is completely at
fault for the damage caused by an animal to another person, such third party
shall have to compensate for damage; if the third party and the owner of the
animal are both at fault, they shall have to jointly compensate for the damage.
3. In cases where an animal which is illegally
possessed or used causes damage, the illegal possessor or user shall have to
compensate.
4. In cases where the animal is allowed to range
freely according to practices and causes damage, the owner of such animal shall
have to compensate according to practices but not in contravention of law
and/or social ethics.
Article
626.- Compensation for damage caused by trees
The owners of trees shall have to compensate for
damage caused by their falling or broken trees, except in cases where the
damage is caused completely by the victim's fault or a force
majeure circumstance.
Article
627.- Compensation for damage caused by houses or other construction works
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Article
628.- Compensation for damage caused by infringement upon corpses
1. Individuals, legal persons or other subjects
that infringe upon corpses shall have to compensate for circumstance.
2. The damage caused by infringement upon
corpses shall cover reasonable expenses for limiting or remedying the damage.
3. Persons infringing upon corpses must pay a
pecuniary compensation as provided for in Clause 2 of this Article and another
sum of money to make up for the mental sufferings caused to the decedents' next
of kin in the first rank of inheritance; if these people are not available, the
persons who have directly nurturned the decedents shall be entitled to enjoy
these sums of money. The levels of compensation for mental sufferings shall be
agreed upon by the parties; if there is no such agreement, the maximum level
shall not exceed thirty months' minimum salary set by the State.
Article
629.- Compensation for damage caused by infringement upon tombs
Individuals, legal persons or other subjects
that cause damage to tombs of others shall have to compensate for the damage.
The damage caused by infringement upon tombs shall cover reasonable expenses
for limiting or remedying the damage.
Article
630.- Compensation for damage caused by infringement upon consumers'
interests
Individuals, legal persons or other subjects
that undertake production and business without ensuring the quality standards
of goods, thus causing damage to any consumer, shall have to compensate.
PART FOUR
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Chapter XXII
GENERAL PROVISIONS
Article
631.- Inheritance right of individuals
Every individual shall have the right to make a
testament to dispose of his/her property; to bequeath his/her property to
his/her heir(s) at law; and to inherit property under a testament or according
to law.
Article
632.- Individuals' right of equality in inheritance
Every individual shall be equal in the right to
bequeath his/her property to another person and the right to inherit property
under a testament or according to law.
Article 633.- Time
and place for opening inheritance
1. The time for opening inheritance is the time
the owner of property dies. In cases where the Court declares that a person is
dead, the time for opening the inheritance shall be the date specified in
Clause 2, Article 81 of this Code.
2. The place for opening inheritance is the last
place of residence of the estate leaver; if such place cannot be identified,
the place for opening inheritance shall be the place where all or most of
his/her estate is located.
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Estate includes the decedent's own property and
his/her shares in property in common with others.
Article 635.- Heirs
If an heir is an individual, he/she must be
alive at the time of opening the inheritance, or must be born and still alive
after the time of opening the inheritance, but must be conceived before the
death of the estate leaver. In cases where a testamentary heir is an agency or
organization, such agency or organization must be in existence at the time of
opening the inheritance.
Article 636.- Time at
which the heir's rights and obligations arise
As from the time of opening the inheritance, the
heirs shall have the property rights and obligations left by the decedents.
Article
637.- Performance of property obligations left by the decedent
1. The persons enjoying the inheritance shall
have the responsibility to perform the property obligations within the limit of
estate left by the decedent, unless otherwise agreed upon.
2. In cases where the estate has not yet been
divided, the property obligations left by the decedent shall be performed by
the estate administrator in accordance with the agreement among the heirs.
3. In cases where the estate has already been
divided, then each of the heirs shall perform the property obligations left by
the decedent, which correspond to, but not exceed, the portion of property he/she
has received, unless otherwise agreed upon.
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Article 638.- Estate
administrators
1. An estate administrator is the person who is
appointed in the testament or appointed under the agreement among the heirs.
2. In cases where the testament does not appoint
an estate administrator and the heirs have not yet appointed an administrator,
the person who possesses, uses, or administers the estate shall continue to
administer it until the heirs appoint an administrator of the estate.
3. In cases where the heir(s) has/have not been
identified and there is still no administrator of the estate, such estate shall
be managed by a competent State agency.
Article
639.- Obligations of the estate administrator
1. The estate administrator defined in Clause 1
and Clause 3, Article 638 of this Code shall have the following obligations:
a/ To draw up the list of estate; recover the
property of the decedent, which is being possessed by other persons, unless
otherwise provided for by law;
b/ To preserve the estate; not to sell,
exchange, donate, mortgage, pledge or dispose of it in any other manners, if
not so consented in writing by the heirs;
c/ To notify the heirs of the estate;
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e/ To hand back the estate at the request of the
heir(s).
2. The person who currently possesses, uses or
administers the estate as specified in Clause 2, Article 638 of this Code shall
have the following obligations:
a/ To preserve the estate; not to sell,
exchange, donate, mortgage, pledge or dispose of it in any other manners;
b/ To notify the heirs of the estate;
c/ To compensate for damage, if he/she breaches
his/her obligations, thereby causing damage;
d/ To hand back the estate as agreed upon with
the estate leaver in a contract or at the request of the heir(s).
Article 640.- Rights
of the estate administrator
1. The estate administrator defined in Clause 1
and Clause 3, Article 638 of this Code shall have the following rights:
a/ To represent the heirs in their relations
with a third party concerning the estate;
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2. The persons who currently possess, use or
administer the estate as defined in Clause 2, Article 638 of this Code shall
have the following rights:
a/ To continue using the estate as agreed upon
in the contract with the estate leaver or consented to by the heirs.
b/ To enjoy remuneration as agreed upon with the
heirs.
Article
641.- Inheritance by persons entitled to mutually inherit each other's
estate who die simultaneously
In cases where the persons who have the right to
inherit each other's estate die simultaneously or are considered to have died
simultaneously because it is impossible to determine who dies first, then they
shall not have the right to inherit each other's estate and the estate of each
person shall be inherited by his/her respective heir(s), except for case of
inheritance by substitution as provided for in Article 677 of this Code.
Article
642.- Disclaimer of inheritance
1. An heir shall have the right to disclaim an
estate, except for cases where such disclaimer is aimed at shirking his/her
property obligations toward another person.
2. A disclaimer of estate must be made in
writing; the person who disclaims must notify other heirs, the person tasked to
divide the estate, the Notary Public Office or the People's Committee of the
commune, ward or township, where such inheritance is opened, of the disclaimer
of estate.
3. The time limit for disclaiming an estate
shall be six months counting from the date of opening the inheritance. After
six months counting from the date of opening the inheritance, if there is no
disclaimer of estate, the heirs are considered having accepted the inheritance.
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1. The following persons shall not be entitled
to enjoy estate:
a/ Persons who are convicted of having
intentionally infringed upon the life or health of the estate leavers, or of
having maltreated, or physically or mentally abused the estate leavers, or of
having seriously infringed upon the honor or dignity of such persons;
b/ Persons who seriously breach their
obligations to support the estate leavers;
c/ Persons who are convicted of having
intentionally infringed upon the life of other heirs for the purpose of
acquiring part or all of the portion of the estate to which such heirs are
entitled;
d/ Persons who deceive, coerce or hinder the
estate leavers while the latter make their testaments; persons who forge,
modify or destroy the testaments in order to acquire part or all of the estates
against the will of the estate leavers.
2. The persons defined in Clause 1 of this
Article shall still be entitled to enjoy the estate, if the estate leavers,
though aware of their acts, still allow them to enjoy the estate under the
testaments.
Article 644.- Estates
without heirs shall belong to the State
In cases where there is no heir under the
testament or at law or where there is an heir who is, however, not entitled to
enjoy estate or disclaims his/her estate, the estate left after fulfilling the
property obligations and without any heir shall belong to the State.
Article 645.- Statute
of limitations for initiating inheritance-related lawsuits
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The statute of limitations for initiating a
lawsuit to demand an heir to fulfill the property obligations left by the
decedent shall be three years counting from the time of opening the
inheritance.
Chapter XXIII
TESTAMENTARY
INHERITANCE
Article
646.- Testaments
A testament is the expression of an individual's
will to transfer his/her own property to other person(s) after his/her death.
Article
647.- Testators
1. A person who has attained adulthood is
entitled to make a testament, except in cases where such person is affected by
a mental disease or other ailment, which prevents him/her from being aware of,
or controlling his/her acts.
2. A person aged between full fifteen years and
under eighteen years may make a testament, if his/her father, mother or
guardian so agrees.
Article 648.- Rights
of the testator
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1. To designate his/her heirs(s); to disinherit
an heir;
2. To divide his/her estate for each of his/her
heirs;
3. To set aside part of his/her estate for
donation and/or worship;
4. To assign obligations to his/her heir(s);
5. To designate a person to keep the testament,
the administrator of his/her estate and the distributor of the estate.
Article 649.- Forms
of testament
A testament must be made in writing; if the
testament cannot be made in writing, it can be made orally.
Ethnic minority people shall be entitled to make
their testaments in their own ethnic minority scripts or languages.
Article 650.- Written
testaments
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1. A written testament made without witnesses;
2. A written testament made in the presence of
witnesses;
3. A notarized written testament;
4. An authenticated written testament.
Article 651.- Oral
testaments
1. In cases where a human life is threatened by
a disease or other causes, which prevent him/her from making a written
testament, he/she may make an oral testament.
2. After three months counting from the time the
oral testament is made, if the testator is still alive and clear-minded, such
oral testament shall be automatically annulled.
Article 652.- Lawful
testaments
1. A testament shall be considered lawful when
it meets all the following conditions:
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b/ The content of the testament is not contrary to
law and/or social ethics; the form of testament is not contrary to the
provisions of law.
2. The testament of a person aged between full
fifteen years and under eighteen years must be made in writing and such person
must get the consent of his/her parents or guardian.
3. The testament of a person who is physically
handicapped or who is illiterate must be put into writing by a witness and
notarized or authenticated.
4. A written testament without notarization or
authentication shall be considered lawful only if it satisfies the conditions
specified in Clause 1 of this Article.
5. An oral testament shall be considered lawful
if the oral testator expresses his/her last will before at least two witnesses
and immediately after that the witnesses write such down and jointly sign or
press their fingerprints. Within five days as from the date the oral testator
expresses his/her last will, the testament must be notarized or authenticated.
Article
653.- Contents of written testaments
1. A testament must contain:
a/ Day, month, year, on which the testament is
made;
b/ Full name and place of residence of the
testator;
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d/ The inheritance estate bequeathed and the
location of such estate;
e/ The person(s) appointed to perform the
obligations and the contents of such obligations.
2. No abbreviations or symbols shall be used in
testaments; if a testament comprises many pages, then each page must be
ordinally numbered and signed or fingerprinted by the testator.
Article
654.- Witnesses to the making of testaments
Every person may serve as a witness to the
making of a testament, except the following persons:
1. Heirs under the testament or at law of the
testator;
2. Persons with property rights and obligations
related to the contents of the testament;
3. Persons who have not yet reached full
eighteen years or persons having no civil act capacity.
Article 655.- Written
testaments made without witnesses
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The making of written testaments without
witnesses must comply with the provisions of Article 653 of this Code.
Article 656.-Written
testaments made in the presence of witnesses
In cases where a testator is unable to write the
testament by himself/herself, he/she may ask another person to write it, but in
the presence of at least two witnesses. The testator must sign or fingerprint
the testament in the presence of the witnesses; the witnesses shall certify the
signature or fingerprint of the testator and sign the testament.
The making of testaments must comply with the
provisions of Article 653 and Article 654 of this Code.
Article 657.- Testaments
notarized or authenticated
Testators may request the notarization or
authentication of their testaments.
Article
658.- Procedures for making testaments at public notary offices or
People's Committees of communes, wards or townships
The making of testaments at public notary
offices or People's Committees of communes, wards or townships must comply with
the following procedures:
1. The testators shall announce the contents of
their testaments before the public notaries or persons of commune/ward/township
People's Committees, who are competent to authenticate them. The public
notaries or the persons competent to authenticate must record in writing the
contents stated by the testators. The testators shall sign or fingerprint the
testaments after certifying that their testaments have been accurately recorded
and correctly express their will. The public notaries or the persons competent
to authenticate of commune/ward/township People's Committees then sign the
testaments;
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Article 659.- Persons
not allowed to notarize or authenticate testaments
The public notaries or competent persons of
commune/ward/township People's Committees must not notarize or authenticate
testaments if they are:
1. Testamentary heirs or at-law heirs of the
testators;
2. Persons whose fathers, mothers, spouses or
children are testamentary heirs or at-law heirs;
3. Persons having their property rights and
obligations related to the testaments' contents.
Article 660.- Written
testaments are as valid as notarized or authenticated testaments
Written testaments which have the same validity
as notarized or authenticated testaments shall include:
1. Testaments of army men in active service,
certified by commanders of army units of the company or higher level, if such
army men cannot request the notarization or authentication;
2. Testaments of persons traveling on board
sea-going vessels or aircraft, certified by the commanders of such means of
transport;
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4. Testaments of persons conducting survey,
exploration or research work in mountainous areas or on islands, certified by
the persons in charge of their units;
5. Testaments of Vietnamese nationals residing
abroad, certified by Vietnamese consular offices or diplomatic missions in
those countries;
6. Testaments of persons being held in custody,
serving their prison sentences or administrative handling measures at
re-education camps or medical establishments, certified by the persons in
charge of such establishments.
Article
661.- Testaments made by public notaries at places of residence
1. Testators may request public notaries to come
to their places of residence to make their testaments.
2. The procedures for making testaments at
places of residence shall comply with the procedures for making testaments at
public notary offices under the provisions in Article 658 of this Code.
Article
662.- Amendment, supplementation, substitution and annulment of testaments
1. Testators may amend, supplement, substitute
or annul their testaments at any time.
2. In cases where a testator makes any
supplement to his/her testament, the already made testament and the supplement
shall have equal legal effect; if a part of the already made testament and the
supplement are contradictory, only the supplement shall have legal effect.
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Article 663.- Joint
testament of husband and wife
Husband and wife may make a joint testament to
dispose of their common property.
Article
664.- Amendment, supplementation, substitution and annulment of joint
testaments
1. Husband or wife may amend, supplement,
substitute or annul their joint testament at any time.
2. When a wife or husband wishes to amend,
supplement, substitute or annul their joint testament, she or he must get the
consent of the other; if one of them has already died, the other can only amend
or supplement the testament related to his/her own part of property.
Article 665.- Custody
of testaments
1. A testator may request a public notary office
or another person to keep his/her testament in its/his/her custody.
2. In cases where the public notary office keeps
the testament, it must maintain and preserve the testament in accordance with
the provisions of law on notary public.
3. The individual entrusted to keep the testament
shall have the following obligations:
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b/ To safeguard and preserve the testament; if
the testament is lost or damaged, he/she must immediately notify the testator
thereof;
c/ To hand back the testament to the testator's
heir(s) or to the person competent to announce the testament upon the
testator's death. The hand-over of the testament must be made in writing with
the signatures of the person who hands it over and the recipient, and in the
presence of two witnesses.
Article 666.- Lost or
damaged testaments
1. If from the time of opening the inheritance,
a testament is lost or damaged to such an extent that it does not fully express
the will of the testator nor is there any evidence to demonstrate the true wish
of the testator, the testament shall be deemed non-existent and the provisions
of law on inheritance at law shall apply.
2. In cases where the testament is found out
before the estate is divided, then the estate shall be divided according to the
testament.
Article 667.- Legal
effect of testaments
1. A testament shall take effect as from the
time of opening the inheritance.
2. A testament shall be considered invalid
wholly or partially in the following cases:
a/ The testamentary heirs die before or at the same
time with the testator;
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In cases where there are more than one
testamentary heir and one of them dies before or at the same time with the
testator, or one of the agencies or organizations designated as heirs is no
longer in existence at the time of opening the inheritance, then only the part
of the testament that relates to the person who died before or simultaneously
with the testator, or such defunct agency or organization shall be legally
ineffective.
3. A testament shall have no legal effect if the
estate left to the heir(s) is no longer in existence at the time of opening the
inheritance; if only part of such estate is still in existence, then the
testamentary part related to the remaining part of the estate shall remain
effective.
4. If a part of the testament is unlawful but
does not affect the validity of the rest of the testament, then only such part
shall have no legal effect.
5. If a person leaves more than one testament
regarding a property, then only the latest testament shall take legal effect.
Article 668.- Legal
effect of joint testament of husband and wife
A joint testament of husband and wife shall take
effect as from the time the last of them dies or at the time both the husband
and wife die simultaneously.
Article 669.- Heirs
independent from contents of testaments
The following persons shall still be entitled to
an estate portion which is equivalent to two-thirds of the portion given to an
heir at law, if the estate is divided according to law, in cases where they are
not allowed by the testator to enjoy the estate or are allowed to enjoy only a
portion less than two-thirds of their due part, unless they disclaim the estate
according to the provisions of Article 642 or they are not entitled to the
estate according to the provisions of Article 643 of this Code:
1. Minor children, father, mother, wife or
husband;
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Article 670.- Estate
used for worshiping
1. In cases where a testator has allocated part
of the estate for worshiping, that part of his/her estate shall not be divided
for inheritance, but shall be entrusted to a person designated in the testament
for management to service the worship; if the designated person fails to comply
with the testament or with the heirs' agreement, the heirs shall be entitled to
entrust such part of the estate to another person for management and use
thereof for worshiping.
In cases where the estate leaver does not
designate an administrator of the worship estate, the heirs shall designate a
person to manage the worship estate.
In cases where all the testamentary heirs have
died, the estate portion reserved for worshiping shall belong to the current lawful
administrator of such estate among people entitled to inheritance at law.
2. In cases where the whole property of the
decedent is not enough for fulfillment of his/her property obligations, no part
of the estate shall be reserved for worshiping.
Article
671.- Testamentary donation
1. A testamentary donation means the reserve of
part of an estate by a testator as gift to another person. The testamentary
donation must be clearly stated in the testament.
2. The testamentary donee shall not have to fulfill
any property obligation related to the testamentary donation, except in cases
where the whole estate is not enough for performance of the property
obligations of the donor, the testamentary donation shall be also used to
perform the remaining part of the obligations of such person.
Article
672.- Announcement of testaments
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2. In cases where the testator appoints a testament
announcer, the latter shall have the obligation to announce the testament; if
the testator does not appoint or has appointed a testament announcer but the
appointee refuses to announce the testament, the surviving heirs shall agree to
appoint the testament announcer.
3. After the time of opening the inheritance,
the testament announcer must send copies of the testament to all concerned
persons related to the contents of the testament.
4. The persons who receive copies of the
testament shall be entitled to request the comparison thereof with the
original.
5. In cases where the testament is made in a
foreign language, it must be translated into Vietnamese and must be notarized.
Article
673.- Interpretation of testaments
In cases where the contents of a testament are
unclear leading to different interpretations, then the testament announcer and
the heirs must together interprete the testament contents, based on the true
will of the decedent before his/her death, taking into consideration the
relationship between the decedent and his/her testamentary heir(s). Where such
persons fail to agree on the interpretation of the contents of the testament,
such testament shall be deemed non-existent and the estate shall be divided in
accordance with the provisions of law on inheritance at law.
In cases where a part of the testament cannot be
interpreted but does not affect the rest of the testament, only the
uninterpretable part shall be invalid.
Chapter XXIV
INHERITANCE AT LAW
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Inheritance at law is inheritance in accordance
with the ranks, conditions and order of inheritance provided for by law.
Article 675.- Cases
of inheritance at law
1. Inheritance at law shall apply in the
following cases:
a/ There is no testament;
b/ The testament is unlawful;
c/ All the testamentary heirs die before or at
the same time with the testator; the agency or organization designated as
testamentary heir is no longer in existence at the time of opening the
inheritance;
d/ The persons designated as testamentary heirs
shall not have the right to inherit or have disclaimed their inheritance
rights.
2. Inheritance at law shall also apply to the
following parts of the estate:
a/ Part of the estate, which is not disposed of
in the testament;
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c/ Part of the estate, which is related to a
testamentary heir, who, however, does not have the right to inherit or who has
disclaimed his/her inheritance rights, or who dies before or at the same time
with the testator; or related to an agency or organization which is designated
as testamentary heir, which is, however, no longer in existence at the time of
opening the inheritance.
Article 676.- Heirs
at law
1. Heirs at law are classified in the following
order:
a/ First rank of inheritance shall include wife,
husband, biological father, biological mother, adoptive father, adoptive
mother, biological children and adopted children of the decedent;
b/ Second rank of inheritance shall include
paternal grandfather, paternal grandmother, maternal grandfather, maternal
grandmother, natural brother(s) and sister(s) of the decedent; grand-children
of whom the decedent is the paternal grandfather or grand-mother, maternal
grandfather or grandmother;
c/ Third rank of inheritance shall include
paternal and maternal great-grandparents; paternal and maternal uncles and
aunts by blood of the decedent; nephews and nieces of whom the decedent is the
paternal or maternal uncle or aunt by blood; great grand-children of whom the
decedent is the paternal or maternal great grandparents.
2. Heirs belonging to the same rank of
inheritance shall be entitled to equal portions in the estate.
3. Heirs belonging to the subsequent rank of
inheritance shall be entitled to inheritance only if none of the heirs of the
preceding rank of inheritance is left as they have died, are not entitled to
the estate, are disinherited or disclaim the estate.
Article
677.- Inheritance by substitution
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Article
678.- Inheritance relation-ship between adopted children and their
adoptive fathers, adoptive mothers and their biological parents
An adopted child and his/her adoptive father
and/or mother shall be entitled to inherit each other's estate and also inherit
the estate in accordance with the provisions of Articles 676 and 677 of this
Code.
Article
679.- Inheritance relation-ship between stepchildren and their stepfathers
and/or stepmothers
If a stepchild and his/her stepfather and/or
stepmother have a relationship of mutual care and support as between a
biological father and a biological child or between a biological mother and a
biological child, they shall be entitled to inherit each other's estate and
also inherit the estate in accordance with the provisions of Articles 676 and
677 of this Code.
Article
680.- Inheritance in cases where wife and husband have divided their
common property, are applying for divorce or have married another person
1. In cases where husband and wife have divided
their common property while their marriage still exists and one of the spouses
thereafter dies, then the survivor shall still be entitled to inherit the
other's estate.
2. In cases where wife and/or husband have/has
applied for divorce but the divorce has not yet been approved or has already
been approved by a court through a judgment or decision which is not legally
effective yet, and one of the spouses thereafter dies, then the survivor shall
still be entitled to inherit the other's estate.
3. A person who was still wife or husband of the
decedent at the time the latter dies shall still be entitled to inherit the
decedent's estate even if he/she later has married another person.
Chapter XXV
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Article 681.- Meeting
of heirs
1. After the notice on the opening of the
inheritance is made or the testament is announced, the heirs may hold a meeting
to agree on the following issues:
a/ The appointment of an administrator of the
estate, a distributor of the estate and the determination of the rights and
obligations of these people, if the estate leaver has failed to make such
appointments in the testament;
b/ The method of dividing the estate.
2. Any agreement among the heirs must be made in
writing.
Article 682.- Estate
distributors
1. The estate distributor may also be the estate
administrator designated in the testament or appointed by the heirs under their
agreement.
2. The estate distributor must divide the estate
in strict accordance with the testament or as agreed upon by the heirs at law.
3. The estate distributor is entitled to
remuneration, if so allowed by the estate leaver in the testament or so agreed
upon by the heirs.
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Property obligations and expenses related to the
inheritance shall be paid in the following order:
1. Reasonable funeral expenses in accordance
with practices;
2. Unpaid support allowance;
3. Support allowances for dependents of the
decedent;
4. Labor wage;
5. Compensation for damage;
6. Taxes and other debts owed to the State;
7. Fines;
8. Other debts owed to any individuals, legal
persons or other subjects;
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10. Other expenses.
Article
684.- Division of estates in accordance with testaments
1. The estate shall be divided according to the
will of the testator; if the testament does not clearly determine the share of
each heir, then the estate shall be divided equally among the persons indicated
in the testament, unless otherwise agreed upon.
2. In cases where the testament specifies the
division of an estate in kind, the heirs shall be entitled to receive their
shares in kind together with the yields or profits gained therefrom or must
bear any depreciation in value of such shares in kind up to the time of the
division of the estate; if the shares in kind have been destroyed due to
another person's fault, the heirs shall be entitled to demand compensation for
such damage.
3. In cases where the testament only specifies
the division of the estate by percentages of the total value of the estate, then
such percentages shall be calculated on the basis of the estate value remaining
at the time of estate division.
Article
685.- Division of estate by law
1. If at the time of estate division, an heir of
the same rank of inheritance has been conceived but not yet born, then a part
of the estate equal to the share which another heir of the same rank is
entitled to shall be set aside for inheritance by the unborn heir if he/she is
born alive; if this heir is still-born, then the other heirs shall be entitled to
his/her share.
2. The heirs shall have the right to demand that
the estate be divided in kind; if the estate cannot be divided equally in kind,
the heirs may agree on the evaluation of the assets in kind and on the persons
who shall receive them; if no agreement can be reached, the assets in kind
shall be sold for division.
Article
686.- Restrictions on division of estate
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In cases where the estate division is requested
and will seriously affect the life of the living spouse and his/her family, the
living spouse shall have the right to request the Court to determine the estate
shares to be enjoyed by the heirs but not to allow the estate division within a
certain time limit which, however, shall not exceed three years as from the
time of opening the inheritance; if the time limit set by the Court has expired
or the living spouse has married another person, the other heirs may request
the Court to permit the division of the estate.
Article
687.- Division of estates in cases where new heirs appear or where heirs
are disinherited
1. In cases where an estate has been already
divided and a new heir has appeared, the estate in kind shall not be re-divided
but the heirs who have received their respective shares of estate must pay the
new heir a sum of money corresponding to his/her share of estate at the time of
estate division in proportion to the received share of estate, unless otherwise
agreed upon.
2. In cases where an estate has been already
divided and an heir is disinherited, such heir must return his/her share of
estate or pay a sum of money corresponding to the value of the estate he/she
has enjoyed at the time of dividing the estate to the heirs, unless otherwise
agreed upon.
PART FIVE
PROVISIONS ON THE
TRANSFER OF LAND USE RIGHTS
Chapter XXVI
GENERAL PROVISIONS
Article 688.- Bases
for establishment of land use rights
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2. Land use rights of individuals, legal
persons, households and other subjects shall be established upon the land
assignment or lease or the land use right recognition by the State.
3. Land use rights of individuals, legal
persons, households and other subjects shall also be established upon the
transfer thereof by other persons in accordance with the provisions of this
Code and the land law.
Article 689.- Forms
of transfer of land use rights
1. The transfer of land use rights shall be
carried out through contracts, except for the case specified in Clause 3 of
this Article.
2. The contracts on land use right transfer must
be made in writing, notarized or authenticated in accordance with the
provisions of law.
3. The inheritance of land use rights shall
comply with the provisions of Articles 733 thru 735 of this Code.
Article 690.- Price
for transfer of land use rights
The price for a transfer of land use rights
shall be agreed upon by the parties or provided for by law.
Article
691.- Principles for transfer of land use rights
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2. When transferring the land use rights, the
parties shall be entitled to agree on the contents of the contract for the
transfer of land use rights but must comply with the provisions of this Code
and the land law.
3. The transferee of the land use rights must
use the land for the right purposes and within the duration stated in the land
use right certificates and in compatibility with land use plannings or plans in
the localities at the time of land use right transfer.
Article 692.- Effect
of transfer of land use rights
The transfer of land use rights shall take
effect as from the time the land use rights are registered in accordance with
the provisions of land law.
Chapter XXVII
CONTRACTS FOR EXCHANGE
OF LAND USE RIGHTS
Article
693.- Contracts for exchange of land use rights
A contract for exchange of land use rights is an
agreement between parties whereby the parties transfer land and land use rights
to each other in accordance with the provisions of this Code and the land law.
Article
694.- Contents of contracts for exchange of land use rights
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1. Names and addresses of the parties;
2. Rights and obligations of the parties;
3. Category, grade, acreage, location, code
number, boundaries and conditions of the land;
4. Time for the transfer of land;
5. The land use term of the exchanger; the
remainder of the land use term for the exchange;
6. The difference in land use right value, if
any;
7. Rights of a third party to the exchanged
land, if any;
8. The parties' liabilities for breach of the
contract.
Article
695.- Obligations of parties to the exchange of land use rights
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1. To transfer land to each other in strict
accordance with the land acreage, grade, category, location, code number and
conditions as agreed upon;
2. To use the land for the right purposes and
within the prescribed duration;
3. To pay fees for the exchange of land use
rights with respect to the area of land received and perform the obligations of
a land user as provided for by this Code and the land law;
4. To pay the difference, if the value of the
exchanged land use rights of one party is higher than that of the other, unless
otherwise agreed upon.
Article 696.- Rights
of parties to the exchange of land use rights
The parties to an exchange of land use rights
shall have the following rights:
1. To request the other party to transfer the
land in strict accordance with the land acreage, grade, category, location,
code number and conditions as agreed upon;
2. To request the other party to hand over all
the valid papers related to the land use rights;
3. To be granted a land use right certificate
for the exchanged land;
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Chapter XXVIII
CONTRACTS FOR
ASSIGNMENT OF LAND USE RIGHTS
Article
697.- Contracts for assignment of land use rights
A contract for the assignment of land use rights
is an agreement between parties whereby the land use right assignor transfers
the land and land use rights to the assignee and the assignee shall pay money
to the assignor in accordance with the provisions of this Code and the land
law.
Article
698.- Contents of contracts for assignment of land use rights
A contract for the assignment of land use rights
shall include the following contents:
1. Names and addresses of the parties;
2. Rights and obligations of the parties;
3. Category, grade, acreage, location, code
number, boundaries and conditions of the land;
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5. Assignment price;
6. Mode and time of payment;
7. Rights of a third party to the assigned land;
8. Other information related to the land use
rights;
9. The parties' liabilities for breach of the
contract.
Article
699.- Obligations of the land use right assignor
The land use right assignor shall have the
following obligations:
1. To transfer the land to the assignee in
strict accordance with the land acreage, grade, category, location, code number
and conditions as agreed upon;
2. To hand over the papers related to the land
use rights to the assignee.
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The land use right assignor shall have the
rights to receive money for the assignment of land use rights; in cases where
the assignee is late in making the payment, the provisions of Article 305 of
this Code shall apply.
Article 701.- Obligations
of the land use right assignee
The land use right assignee shall have the
following obligations:
1. To pay money to the land use right assignor
in full, on time and by the agreed mode;
2. To register the land use rights as provided
for by the land law;
3. To ensure the rights of the third party to
the assigned land;
4. To perform other obligations as provided for
by the land law.
Article 702.- Rights
of the land use right assignee
The land use right assignee shall have the
following rights:
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2. To request the land use right assignor to
transfer the land in strict accordance with the land acreage, grade, category,
location, code number and conditions as agreed upon;
3. To be granted a land use right certificate
for the assigned land;
4. To use land in accordance with the right
purposes and duration.
Chapter XXIX
CONTRACTS FOR LAND USE
RIGHT LEASE, SUBLEASE
Section 1. CONTRACTS FOR
LAND USE RIGHT LEASE
Article
703.- Contracts for land use right lease
A contract for land use right lease is an
agreement between parties whereby the lessor shall transfer the land to the
lessee for use in a period of time, and the lessee must use such land for the
right purpose, pay the rent and return the land when the lease term expires as
provided for by this Code and the land law.
Article
704.- Contents of contracts for land use right lease
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1. Names and addresses of the parties;
2. Rights and obligations of the parties;
3. Category, grade, acreage, location, code
number, boundary and conditions of the land;
4. Lease term;
5. Lease price;
6. Mode and time of payment;
7. Rights of a third party to the leased land;
8. The parties' liabilities for breach of the
contract;
9. Remedy of consequences when the land use
right lease contract expires.
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The land use right lessor shall have the
following obligations:
1. To register the lease of land use rights;
2. To transfer land to the lessee in accordance
with the land acreage, location, code number, category and conditions as agreed
upon;
3. To lease land use rights within the term of
land allocation or lease;
4. To check and remind the lessee to protect,
preserve and use the land for the right purpose;
5. To pay land use tax, unless otherwise agreed
upon;
6. To inform the lessee of the rights of the
third party to the leased land.
Article 706.- Rights
of the land use right lessor
The land use right lessor shall have the
following rights:
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2. To request the lessee to immediately stop the
use of land not for the right purpose, the destruction of land or the reduction
of its use value; if the lessee fails to immediately stop such violations, the
lessor shall be entitled to unilaterally terminate the performance of the
contract and request the lessee to return such land and compensate for damage;
3. To request the lessee to return the land upon
expiration of the lease term.
Article
707.- Obligations of the land use right lessee
The land use right lessee shall have the
following obligations:
1. To use land for the right purpose, within the
boundary and the lease term;
2. Not to destroy the land or reduce its use
value and to fulfill other requirements as agreed upon in the land use right
lease contract;
3. To pay the rent in full, on time, at the
right place and by the agreed mode; in the event the use of land fails to
generate profits, the lessee shall still be obligated to pay the rent in full,
unless otherwise agreed upon;
4. To comply with the regulations on
environmental protection; not to cause damage to the legitimate rights and
interests of the surrounding land users;
5. To return the land in the same conditions as
when it was received upon the expiration of the lease term, unless otherwise
agreed upon.
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The land use right lessee shall have the
following rights:
1. To request the lessor to transfer the land in
strict accordance with the land acreage, location, code number, grade, category
and conditions as agreed upon;
2. To use the leased land in a stable manner
within the agreed duration;
3. To enjoy the yields and profits from the use
of land;
4. To unilaterally terminate the performance of
the contract as provided for in Article 426 of this Code;
5. To request the lessor to reduce or exempt the
rent in cases where the yields and/or profits are lost or reduced due
to force majeurecircumstances.
Article 709.- Delay
in payment of rent
When the lessee delays in paying the rent for
the lease of land use rights as agreed upon, the lessor may grant an extension;
if such extension has expired and the lessee fails to fulfill his/her
obligations, the lessor shall be entitled to unilaterally terminate the
performance of the contract and request the lessee to return the land. The
lessor shall be entitled to request the lessee to make the full payment for the
time during which the land use rights were leased, including the interest on
the amount of delayed payment at the basic interest rate set by the State Bank
corresponding to the period of delayed payment at the time of payment.
Article
710.- Compensation for damage caused by recovery of land
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2. In cases where the contract for the land use
right lease is still valid, but for the national security, defense
requirements, national interests, public interests and economic development,
the State recovers the land, then the contract for the land use right lease
shall terminate ahead of time.
In cases where the lessee has paid the rent
fully in advance, the lessor must reimburse the lessee the remaining rent
corresponding to the period of time when the land has not been used; if the
lessee has not yet paid the rent, he/she/it must pay only an amount
corresponding to the period of time when the land has been used.
The lessor shall be compensated by the State for
the damage caused by the recovery of land in accordance with provisions of law,
and the lessee shall be compensated by the State for the loss of yields from
such land.
Article 711.- The
right to continue leasing land use rights when one party dies
1. In cases where the land use right lessor
being an individual dies, the lessee shall be entitled to continue leasing land
use rights until the lease term expires.
2. In cases where the land use right lessee
being an individual dies, the members of his/her household shall be allowed to
continue leasing land use rights until the lease term expires, but must notify
a competent state agency thereof.
Article
712.- Assignment of land use rights during the term of a land use right
lease
When term of a land use right lease remains in
effect, the lessor is still entitled to assign land use rights to another
person, if so permitted by a competent state agency, but must inform the lessee
thereof so that the latter performs his/her obligations to the land use right
assignee.
The lessee shall still be entitled to continue
the lease until the contractual term of the land use right lease expires.
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1. A contract for land use right lease shall
terminate in the following cases:
a/ The lease term expires and is not extended;
b/ It is so agreed upon by the parties;
c/ The State recovers the land;
d/ One of the parties unilaterally terminates
the performance of the contract or cancels the contract as agreed upon or
provided for by law;
e/ The land use right lessee being an individual
dies without any other members of his/her household or with other members of
his/her household but they do not have demand for continued lease;
f) The leased land area is no longer in
existence due to a natural calamity;
g) Other cases specified by law.
2. When a land use right lease contract
terminates, the lessee must restore the land to its conditions as when it was
received, unless otherwise agreed upon or provided for by law. The property
attached to the land shall be settled under the parties' agreement.
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Article
714.- Contracts for land use right sublease
Unless otherwise provided for by law, the
provisions of Articles 703 thru 713 of this Code shall also apply to contracts
for land use right sublease.
Chapter XXX
CONTRACTS FOR LAND USE
RIGHT MORTGAGE
Article 715.-Contracts for
land use right mortgage
A contract for land use right mortgage is an
agreement between the parties whereby the land user (hereinafter referred to as
the mortgagor) shall use his/her land use rights to secure the performance of
civil obligations toward the other party (hereinafter referred to as the
mortgagee). The mortgagor may continue to use the land during the mortgage
term.
Article 716.- Scope
of land use right mortgage
1. Land use rights may be mortgaged in part or
in whole.
2. In cases where a land user mortgages his/her
land use rights, his/her houses, other construction works, planted forests,
tree gardens and other assets which are attached to land, shall belong to the
mortgaged property only when it is so agreed upon.
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The land use right mortgagor shall have the
following obligations:
1. To hand over the land use right certificate
to the mortgagee;
2. To fill the mortgage registration procedures;
to cancel the mortgage registration when the mortgage contract terminates;
3. To use the land for the right purpose, not to
destroy or reduce the value of the mortgaged land;
4. To repay the loan on time and by the mode
agreed upon in the contract.
Article 718.- Rights
of the land use right mortgagor
The land use right mortgagor shall have the
following rights:
1. To use the land within the mortgage term;
2. To receive the loan from the land use right
mortgage by the agreed mode;
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4. To exchange, assign, lease or sublease the
mortgaged land use rights if so consented by the mortgagor;
5. To receive back the land use right
certificate after the mortgage obligations have been fulfilled.
Article
719.- Obligations of the land use right mortgagee
The land use right mortgagee shall have the
following obligations:
1. To register the mortgage together with the
mortgagor;
2. To return the land use right certificate when
the mortgagor has fulfilled the obligations secured by the mortgage.
Article 720.- Rights
of the land use right mortgagee
The land use right mortgagee shall have the
following rights:
1. To examine and remind the land use right
mortgagor to protect and preserve the land and use it for the right purpose;
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Article 721.- Handling
of mortgaged land use rights
When the term for the performance of the
obligations secured by the mortgage of land use rights is due, and the
mortgagor has still failed to perform or performed improperly his/her obligations,
the mortgaged land use rights shall be handled as agreed upon; if there is no
such agreement or the mortgaged land use rights cannot be handled as agreed
upon, the mortgagee shall be entitled to initiate a lawsuit at the court.
Chapter XXXI
CONTRACTS FOR LAND USE
RIGHT DONATION
Article
722.- Contracts for land use right donation
A contract for the donation of land use rights
is an agreement between the parties whereby the donor transfers his/her land
use rights to the donee without requesting any compensation, and the donee
agrees to receive them in accordance with the provisions of this Code and the
land law.
Article
723.- Contents of contracts for land use right donation
A contract for land use right donation shall
contain the following contents:
1. Names and addresses of the parties;
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3. The rights and obligations of the parties;
4. The land category, grade, acreage, location,
code number, boundary and conditions;
5. The remaining land use duration of the donor;
6. A third party's rights to the donated land;
7. The parties' liabilities for breach of the
contract.
Article
724.- Obligations of the land use right donor
The land use right donor shall have the
following obligations:
1. To transfer the land in strict accordance
with the agreed land acreage, grade, category, location, code number and
conditions;
2. To hand over the papers related to the land
use rights to the donee for carrying out the procedures for land use right
registration.
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The land use right donee shall have the
following obligations:
1. To register the land use rights at a
competent state agency defined by the land law;
2. To ensure a third party's rights to the
donated land;
3. To perform other obligations as provided for
by the land law.
Article 726.- Rights
of the land use right donee
The land use right donee shall have the
following rights:
1. To request the donor to transfer the land in
strict accordance with the agreed land acreage, grade, category, location, code
number and conditions;
2. To use the land for the right purpose and
within the set time limit;
3. To be granted the land use right certificate.
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CONTRACTS FOR CAPITAL
CONTRIBUTION WITH LAND USE RIGHT VALUE
Article
727.- Contracts for capital contribution with the land use right value
A contract for capital contribution with the
land use right value is an agreement between the parties whereby the land user
(hereinafter referred to as the capital contributor) contributes his/her
capital with the land use right value for production and/or business
cooperation with other individuals, legal persons, family households and/or
other subjects under the provisions of this Code and the land law.
Article 728.- Contents
of the contracts for capital contribution with the land use right value
A contract for capital contribution with the
land use right value shall contain the following contents:
1. Names and addresses of the parties;
2. Rights and obligations of the parties;
3. The land category, grade, acreage, location,
code number, boundary and conditions;
4. The remaining land use duration of the
capital contributor;
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6. The land use right value contributed as
capital;
7. A third party's rights to the land
contributed as capital;
8. The parties' liabilities for breach of the
contract.
Article
729.- Obligations of parties contributing capital with the land use right
value
A party contributing capital with the land use
right value shall have the following obligations:
1. To transfer the land in strict accordance
with the time limit, the land acreage, grade, category, location, code number
and conditions as agreed upon in the contract;
2. To register the land use rights at a competent
state agency as provided for by the land law.
Article 730.- Rights
of parties contributing capital with the land use right value
A party contributing capital with the land use
right value shall have the following rights:
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2. To assign, bequeath the capital portion
contributed with the land use right value, unless otherwise agreed upon or
provided for by law;
3. To receive back the land use rights contributed
as capital as agreed upon or upon the expiration of the capital contribution
time limit;
4. To cancel the contract and demand
compensation for damage if the party receiving the contributed capital fails to
pay the profits on time or fails to make full payment thereof.
Article
731.- Obligations of parties receiving capital contributed with the land
use right value
A party receiving capital contributed with the
land use right value shall have the following obligations:
1. To pay profit portion to the party
contributing capital with the land use right value on time and by the mode
agreed upon in the contract;
2. To ensure a third party's rights to the land
contributed as capital;
3. To fulfill other obligations provided for by
the land law.
Article 732.- Rights
of parties receiving capital contributed with the land use right value
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1. To request the party contributing capital
with the land use right value to transfer the land in strict accordance with
the time limit, the land acreage, grade, category, location, code number and
conditions as agreed upon in the contract;
2. To use the land for the right purposes and
within the agreed time limit;
3. To be granted a land use right certificate in
cases where the contributed capital-receiving party is a legal person, except
for cases of capital contribution in business cooperation contracts.
Chapter XXXIII
INHERITANCE OF LAND USE
RIGHTS
Article 733.- Inheritance
of land use rights
The inheritance of land use rights means the
transfer of land use rights from the decedent to his/her heir(s) under the
provisions of this Code and the land law.
Article
734.- Individuals entitled to bequeath land use rights
Individuals who are assigned or leased land by
the State or are transferred the land use rights shall have the right to
bequeath the land use rights as provided for in Part Four of this Code and the
land law.
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If a member of a family household assigned land
by the State dies, such member's land use rights shall be left to his/her heirs
in accordance with the provisions of Part Four of this Code and the land law.
PART SIX
INTELLECTUAL PROPERTY
RIGHTS AND TECHNOLOGY TRANSFER
Chapter XXXIV
COPYRIGHT AND RELATED
RIGHTS
Section 1. COPYRIGHT
Article 736.- The
author
1. A person who has created a literary, artistic
or scientific work (hereinafter referred collectively to as works) is the
author of such work.
In cases where two or more persons jointly
create a work, such persons are co-authors.
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Article 737.- Objects
of copyright
Objects of copyright shall include all works
created in the literary, artistic or scientific field and expressed in any form
and by any means, regardless of their contents and value, and without depending
on any procedures.
Article
738.- Contents of copyright
1. Copyright shall include personal rights and
property rights to works.
2. Personal rights in copyright shall include
the rights:
a/ To name the works;
b/ To put real names or pen names in the works;
to have real names or pen names mentioned when the works are publicized, used;
c/ To publicize or to permit other persons to
publicize the works;
d/ To protect the integrity of the works, not to
permit other persons to amend, garble or distort the works.
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a/ To duplicate the works;
b/ To permit the creation of derivative works;
c/ To distribute, import the originals and
copies of the works;
d/ To disseminate the works to the public;
e/ To lease the originals or copies of computer
programs.
Article 739.- Time at
which copyright arises and the effect of copyright
1. Copyright shall arise from the date a work is
created and expressed in a given material form.
2. Personal rights in copyright shall exist
indefinitely, except the right to publicize or to permit other persons to
publicize the works as provided for by the law on intellectual property.
3. Property rights in copyright shall exist
within the time limit specified by the law on intellectual property.
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1. Personal rights belong to the authors.
2. In cases where works are created not on the
basis of the performance of assigned tasks or job assignment contracts, the
property rights shall belong to the authors.
3. In cases where works are created on the basis
of the performance of assigned tasks or job assignment contracts, property
rights shall belong to agencies or organizations which have assigned the tasks
or the parties that have assigned the contractual jobs, unless otherwise agreed
upon.
In cases where property rights do not belong to
the authors, the authors shall have the right to receive remuneration or
royalties to be paid by the property right owners in accordance with the law on
intellectual property.
Article
741.- Division of rights of co-authors
In cases where a work is created by co-authors,
in which each part created by each co-author can be separated for independent
use, the provisions of Article 740 of this Code shall apply to each part of the
work, which is used independently, unless otherwise agreed upon by the
co-authors.
Article
742.- Transfer of copyright
1. Personal rights provided for at Points a, b
and d, Clause 2, Article 738 of this Code cannot be transferred.
Personal rights specified at Point c, Clause 2,
Article 738 of this Code can be transferred under the conditions set by the law
on intellectual property.
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Article
743.- Contracts for transfer of property rights in copyright
The transfer of part or whole of the property
rights in copyright shall be effected on the contractual basis. The contracts
for transfer of copyright must be made in writing.
Section 2. RIGHTS RELATED
TO COPYRIGHT
Article 744.- Objects
of copyright-related rights
Objects of copyright-related rights (hereinafter
referred to as the related rights) shall include performances by performers;
audio records, video records; broadcasts by broadcasting organizations and
satellite signals carrying coded programs.
Article 745.- Owners
and contents of the rights to performances
1. The rights to performances shall include
personal rights of performers and property rights of investors for realization
of the performances.
2. Personal rights of performers shall include
the right to have their names mentioned in the performances or transmission of
audio records, video records of the performances and the right to protect the
integrity of the image of the performances.
3. Property rights of investors for realization
of performances shall include the right to perform and to forbid other persons
to perform the following acts:
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b/ Duplicating, distributing originals or copies
of the audio records or video records of the performances;
c/ Broadcasting or transmitting in other ways
the performances to the public.
Article 746.- Owners
and contents of the rights to audio records, video records
1. The rights to audio records, video records
shall belong to investors in the creation of such audio records or video
records.
2. The rights to audio records, video records
shall include the right to perform and to forbid other persons to perform the
following acts:
a/ Duplicating in whole or part of the audio
records, video records;
b/ Distributing, importing the originals or
copies of the audio records, video records;
c/ Leasing the originals or copies of audio
records, video records for commercial purposes.
Article 747.- Owners
and contents of the rights to broadcasts
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2. The rights to broadcasts shall include the
rights to perform or forbid other persons to perform the following acts:
a/ Recording, duplicating the records;
broadcasting, re-broadcasting part or whole of a broadcast;
b/ Distributing the records or duplicates of the
records of broadcasts.
Article 748.- Owners
and contents of the rights to satellite signals carrying coded programs
1. The rights to satellite signals carrying
coded programs shall belong to the persons who are the first to transmit the
satellite signals carrying such coded programs.
2. The rights to satellite signals carrying
coded programs shall include the rights to perform, to permit or forbid other
persons to perform the following acts:
a/ Producing, assembling, modifying, importing,
selling, leasing equipment or systems for decoding the coded satellite signals;
b/ Receiving, redistributing decoded signals
when not so permitted by the holders of the rights to the coded satellite
signals.
Article
749.- Transfer of related rights
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2. The transfer of related rights shall be made
in writing under contracts.
Chapter XXXV
INDUSTRIAL PROPERTY
RIGHTS AND THE RIGHTS TO PLANT VARIETIES
Article 750.- Objects
of industrial property rights and the rights to plant varieties
1. Objects of industrial property rights shall
include inventions, industrial designs, semi-conductor integrated circuit
layout designs, business secrets, trademarks, trade names, geographical
indications.
2. Objects of the rights to plant varieties are
propagating materials and plant varieties.
Article
751.- Contents of industrial property rights and the rights to plant
varieties
1. Industrial property rights to inventions,
industrial designs, semi-conductor integrated circuit layout designs, and the
rights to plant varieties shall include the personal rights and the property
rights, which are provided for as follows:
a/ Personal rights to inventions, industrial
designs, semi-conductor integrated circuit layout designs, plant varieties
shall belong to the persons who have directly created their inventions,
industrial designs, semi-conductor integrated circuit layout designs or plant
varieties with their creative labor, including the right to be named as authors
in the protection titles issued by the State, in documents publicizing or
introducing such inventions, industrial designs, semi-conductor integrated
circuit layout designs or plant varieties;
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2. Industrial property rights to business
secrets shall belong to the organizations or individuals that obtain the
information to be lawfully formed into business secrets and keep confidential
such information, including:
a/ Exploiting, using business secrets;
b/ Permitting or forbidding other persons to
approach, use or disclose the business secrets.
3. Industrial property rights to trademarks or
trade names shall belong to the owners of such trademarks or trade names,
including:
a/ Using trademarks, trade names in business;
b/ Permitting or forbidding other persons to use
trademarks which are so coincident or similar to the extent of causing
confusion with their own trademarks; forbidding other persons to use trade
names which cause confusion with their own business activities.
4. The rights to own geographical indications
shall belong to the State. The rights to use geographical indications aiming to
indicate origins, sources of products shall belong to organizations or
individuals that satisfy the conditions set by the law on intellectual
property.
5. The rights to fight unfair competition shall
belong to organizations or individuals that conduct business activities under
competitive conditions.
Article 752.- Bases
for establishing industrial property rights and the rights to plant varieties
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2. Industrial property rights to trade names
shall be established on the basis of lawful use of such trade names.
3. Industrial property rights to business
secrets shall be established on the basis of acquiring the information to be
lawfully formed into business secrets and keeping confidential such
information.
4. The rights to fight unfair competition shall
be established on the basis of competitive activities in business.
Article
753.- Transfer of industrial property rights and the rights to plant
varieties
1. Industrial property rights to inventions,
industrial designs, semi-conductor integrated circuit layout designs, business
secrets, trademarks, and the rights to plant varieties can be transferred in
whole or in part under contracts or be bequeathed or inherited.
2. The rights to trade names can only be
transferred together with the transfer of the entire business establishments
and business activities under such trade names.
3. The rights to geographical indications must
not be transferred.
4. For contracts on transfer of industrial
property rights arising on the basis of registration, only when such contracts
are registered shall they have the legal validity for a third party.
Chapter XXXVI
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Article
754.- Technology transfer rights
The following organizations and individuals
shall be entitled to transfer the rights to use, the rights to own
technologies:
1. Technology owners;
2. Organizations or individuals that are
permitted by technology owners to transfer the right to use and the right to
own the technology.
Article 755.- Objects
of technology transfer
1. The objects of technology transfer shall
include technical know-hows; technical knowledge of technology in the form of
technological schemes, technical solutions, formulas, technical para-meters,
technical diagrams or drawings, computer programs, data information on the
transferred technologies; solutions to rationalization of production,
technological renewal, exclusive business licensing and other objects specified
by the law on technology transfer.
2. In cases where technology is an object
entitled to intellectual property right protection, the transfer of such
technology must be carried out simultanously with the transfer of intellectual
property rights in accordance with the provisions of law on intellectual
property.
Article
756.- Technologies which must not be transferred
1. Technologies which do not meet the provisions
of law on labor safety, labor hygiene, assurance of people's health and
environmental protection.
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Article
757.- Contracts for technology transfer
1. Technology transfer shall be carried out on
the basis of written contracts.
2. Technology transfer contracts must be
registered at competent state agencies, if so provided for by law.
3. The amendment, supplementation, extension,
cancellation of technology transfer contracts must be made in written
contracts; for technology transfer contracts defined in Clause 2 of this
Article, the amendment, supplementation, extension, cancellation thereof must
be registered at competent state agencies.
PART SEVEN
CIVIL RELATIONS
INVOLVING FOREIGN ELEMENTS
Article 758.- Civil
relations involving foreign elements
Civil relations involving foreign elements mean
civil relations in which at least one party is a foreign agency, organization
or individual or overseas Vietnamese or civil relations between the parties
being Vietnamese citizens, organizations but the bases for establishing,
altering or terminating those relations are foreign laws, arise overseas or
assets related to such relations are located overseas.
Article
759.- Application of civil law of the Socialist Republic of Vietnam,
treaties, foreign laws and international practices
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2. In cases where a treaty to which the
Socialist Republic of Vietnam has signed or acceded contains provisions
different from the provisions of this Code, the provisions of such treaty shall
apply.
3. In cases where the application of foreign
laws is referred to by this Code and other legal documents of the Socialist
Republic of Vietnam or by the treaties to which the Socialist Republic of
Vietnam is a contracting party, such foreign laws shall apply, provided that
such application or the consequence thereof is not contrary to the basic
principles of the law of the Socialist Republic of Vietnam; in cases where such
foreign laws refer back to the law of the Socialist Republic of Vietnam, then
the law of the Socialist Republic of Vietnam shall apply.
Foreign laws shall also apply in cases where the
parties have so agreed upon in contracts, if such agreement is not contrary to
the provisions of this Code and other legal documents of the Socialist Republic
of Vietnam.
4. In cases where the civil relations involving
foreign elements are not governed by this Code and other legal documents of the
Socialist Republic of Vietnam, the treaties to which the Socialist Republic of
Vietnam is a contracting party or civil contracts between the parties, the
international practices shall apply, provided that such application or the
consequence thereof is not contrary to the basic principles of the law of the
Socialist Republic of Vietnam.
Article 760.- Bases
for the application of laws to stateless persons or foreigners with two or more
foreign nationalities
1. In cases where this Code or other legal
documents of the Socialist Republic of Vietnam refer to the application of the
laws of foreign countries of which the foreigners are citizens, the laws
applicable to stateless persons shall be the laws of the countries where such
persons permanently reside; if such persons have no permanent residences, the
law of the Socialist Republic of Vietnam shall apply.
2. In cases where this Code or other legal
documents of the Socialist Republic of Vietnam refer to the application of laws
of countries of which the foreigners are citizens, the laws applicable to foreigners
with two or more nationalities shall be the laws of the countries of which such
persons bear the nationalities and where they reside at the time when the civil
relations arise; if such persons do not reside in one of the countries of which
they bear the nationalities, the laws of the countries of which such persons
bear their respective nationalities and have the closest relations regarding
the civil rights and duties shall apply.
Article 761.- Civil
legal capacity of foreigners
1. The civil legal capacity of a foreigner shall
be determined according to the law of the country of which he/she bears the
nationality.
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Article 762.- Civil
act capacity of foreigners
1. The civil act capacity of a foreigner shall
be determined according to the law of the country where he/she is a citizen,
except in cases where the law of the Socialist Republic of Vietnam otherwise
provides for.
2. In cases where a foreigner establishes and/or
performs civil transactions in Vietnam, his/her civil act capacity shall be
determined according to the law of the Socialist Republic of Vietnam.
Article
763.- Determination of persons as having no, having lost or having been
restricted in, civil act capacity
1. The determination of persons as having no,
having lost or having been restricted in, civil act capacity must comply with
the laws of the countries of which such persons bear the nationalities.
2. In cases where foreigners reside in Vietnam,
the determination of such persons as having no, having lost or having been
restricted in, civil act capacity must comply with the law of the Socialist Republic
of Vietnam.
Article
764.- Determination of persons as missing or dead
1. The determination of a person as missing or
dead must comply with the law of the country of which such person bears the
nationality at the time before acquiring the last information on his/her
missing or death.
2. In cases where a foreigner resides in
Vietnam, the determination of such person as missing or dead must comply with
the law of the Socialist Republic of Vietnam.
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1. The civil legal capacity of a foreign legal
person shall be determined according to the law of the country where such
foreign legal person has been established, except for the case specified in
Clause 2 of this Article.
2. In cases where a foreign legal person
establishes and/or performs civil transactions in Vietnam, the civil legal
capacity of such foreign legal person shall be determined in accordance with
the law of the Socialist Republic of Vietnam.
Article
766.- Property ownership rights
1. The establishment, implementation, alteration
and termination of property ownership rights and the contents of such rights
shall be determined according to the law of the country where such property is
located, except for the cases specified in Clauses 2 and 4 of this Article.
2. The ownership rights to movable property on
the way of transportation shall be determined according to the law of the
country of destination, unless otherwise agreed upon.
3. The differentiation between movable and
immovable property shall be deter-mined in accordance with the law of the
country where such property is located.
4. The determination of the ownership rights to
civil aircraft and sea-going vessels in Vietnam must comply with the law on
civil aviation and the maritime law of the Socialist Republic of Vietnam.
Article 767.- At-law
inheritance involving foreign elements
1. The inheritance at law must comply with the
laws of the countries of which the estate leavers bear the nationalities before
their death.
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3. Heirless estates being immovables shall
belong to the States of the countries where such immovables are located.
4. Heirless estates being movables shall belong
to the States of the countries of which the estate leavers bear the
nationalities.
Article
768.- Testamentary inheritance
1. The capacity to make, change and cancel
testaments must comply with the laws of the countries where the testators are
citizens.
2. Forms of testament must comply with the laws
of the countries where the testaments are made.
Article 769.- Civil
contracts
1. The rights and obligations of the parties to
a civil contract shall be determined in accordance with the law of the country
where the contract is performed, unless otherwise agreed upon.
A civil contract entered into and performed
entirely in Vietnam must comply with the law of the Socialist Republic of
Vietnam.
In cases where a civil contract does not specify
the place of performance, the determination of the place of performance of the
contract must comply with the law of the Socialist Republic of Vietnam.
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Article 770.- Forms
of civil contract
1. Forms of a contract must comply with the law
of the country where the contract is entered into. Where a contract is entered
into in a foreign country, which violates the regulations on contractual forms
under the law of that country but is not contrary to the contractual form
provided for by the law of the Socialist Republic of Vietnam, the form of the
contract entered into in the foreign country shall still be recognized in
Vietnam.
2. The forms of contracts related to the
construction of works or transfer of ownership rights to works, houses and
other immovables in the Vietnamese territory must comply with the law of the
Socialist Republic of Vietnam.
Article 771.- Civil
contracts entered in absentia
In cases where a contract is entered in
absentia, the determination of the place where the contract is entered into
must comply with the law of the country where the individual resides or where
the legal person is headquartered, that has proposed the entry into the
contract.
The time for entry into a contract in absentia
shall be determined in accordance with the law of the party proposing the entry
into the contract if this party receives the reply of acceptance from the party
to which the entry is proposed.
Article
772.- Unilateral civil transactions
In unilateral civil transactions, the rights and
obligations of the party that voluntarily performs the unilateral civil
transactions shall be determined in accordance with the law of the country
where such party resides or conducts principal operations.
Article
773.- Compensation for damage outside contract
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2. Compensation for damage caused by an aircraft
flying in international airspace or by a sea-going ship sailing in
international waters shall be determined in accordance with the law of the
country of which such aircraft or ship bears the nationality, unless otherwise
provided for by the maritime or aviation law of the Socialist Republic of
Vietnam.
3. In cases where the act causing damage occurs
outside the territory of the Socialist Republic of Vietnam and the person who
causes the damage and the victim are both Vietnamese citizens or legal persons,
the law of the Socialist Republic of Vietnam shall apply.
Article
774.- Copyright involving foreign elements
The copyright of foreign individuals and/or
legal persons over the work that is publicized and disseminated for the first
time in Vietnam, or created and performed in a certain form in Vietnam, shall
be protected under the provisions of the law of the Socialist Republic of
Vietnam and treaties to which the Socialist Republic of Vietnam is a
contracting party.
Article
775.- Industrial property rights and the rights to plant varieties, which
involve foreign elements
Industrial property rights or the rights to
plant varieties of foreign individuals or legal persons to the objects of
industrial property rights or objects of the rights to plant varieties that
have been granted protection titles or recognized by the Vietnamese State shall
be protected under the provisions of the law of the Socialist Republic of Vietnam
and treaties to which the Socialist Republic of Vietnam is a contracting party.
Article
776.- Technology transfer involving foreign elements
Technology transfer between Vietnamese
individuals or legal persons and foreign individuals or legal persons, and
technology transfer from any foreign country into Vietnam and from Vietnam to
any foreign country, must comply with the provisions of this Code and other
legal documents of Vietnam on techno-logy transfer and with treaties to which
Vietnam is a contracting party or the laws of the foreign countries, if the
application or the consequence thereof is not contrary to the basic principles
of the law of the Socialist Republic of Vietnam.
Article 777.- Statute
of limitations for lawsuits
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This Code was passed on June 14, 2005, by the
10Ith National Assembly of the Socialist Republic of Vietnam, at its 7th
session.
THE NATIONAL
ASSEMBLY
CHAIRMAN
Nguyen Van An