Law No (22) of 2004 Promulgating the Civil Code

Law No (22) of 2004

Promulgating the Civil Code
We, Hamad Bin Khalifa Al Thani, Emir of Qatar,
After perusal of the amended provisional constitution, particularly
Articles (1), (23), (34) and (51) thereof; and
Law of Civil and Commercial Matters promulgated by Law No. (16) of
1971 as amended by Law No. (10) of 1982; and
Law of Civil and Commercial Procedure promulgated by Law No. (13)
of 1990 as amended by Law No. (7) of 1995; and
Decretal Law No. (14) of 1991 organizing the Ministry of Justice and
designating its jurisdictions as amended by Law No (11) of 2002; and
The Judicial Authority law promulgated by Law No. (10) of 2003; and
The proposal of the Minister of Justice and the draft law submitted by
the Council of Ministers; and
After consulting the Shura Council;
Have decreed the following law:
Article (1)
The provisions of the civil code accompanying this law shall be
applied, while the introductory part and Book I (Articles 1 to 208) of
the Civil and Commercial Matters referred to above shall be repealed.
Article (2)
All competent authorities shall, their respective spheres of competence,
implement this law. This law shall be published in the official gazette.
Hamad bin Khalifa Al Thani
Emir of the State of Qatar
Issued at the Amiri Diwan on 12/5/1425 A.H. corresponding to
30/6/2004 A.D.

Civil Code
Introductory Part General Provisions
Chapter I- Application of Law in terms of Time and Place
Section I Application of Law
Article 1
1. Legislative provisions shall apply to the matters covered by such
provisions in text and purport.
2. In the absence of a legislative provision, the judges shall rule in
accordance with the Islamic Sharia. If no principle exits, he shall rule in
accordance with natural rule, or with the rules of justice.
Article 2
1. No legislative provision shall be repealed except by virtue of a
subsequent legislation expressly providing for this repeal or containing
a provision contradictory to the previous legislation provision.
2. In case of issuing a legislation governing anew a subject governed by
a previous legislation, the new legislation shall repeal all the provisions
of the previous one.
Section II - Application of Law in terms of Time
Article 3
1. The new law shall apply to all matters occurring from the date of its
application unless it contains a provision to the contrary.
2. The effects of disposals shall remain subject to the law in force at the
time of their conclusion unless the provisions of the new law concern
the general order, in which case they shall apply to the effects resulting
after applying the law.
Article 4
1. Provisions relating to legal capacity shall apply to all persons they
cover from the time of their application.

2. Subject to the provisions of the new law, no change in the legal

capacity shall affect the disposals preceding its application.
Article 5
1. The new provisions relating to limitations shall apply from the time
of their application to any period of limitation which has not expired.
2. However, the old provisions shall apply to questions relating to the
commencement, suspension and cessation of limitation In respect of the
period preceding the application of the new provisions.
Article 6
If the new law prolongs a period of limitation that has not expired, the
part of limitation that elapses before applying this law shall be
reckoned.
Article 7
If the new law shortens the period of limitation, the new period shall
apply from the time of applying this law unless the remaining part of
the limitation period is shorter according to the old law, in which case
limitation shall terminate upon expiry of the remaining part.
Article 8
Evidence and its determinative effect shall be subject to the provisions
of the law operative at the time the facts and disposals to be proved
occur.
Article 9
Time limits shall be shall be calculated according to the Gregorian
calendar unless the law provides otherwise.
Section III - Application of Law in terms of Place
Article 10
The Qatari law shall be the reference for the characterization of legal
relations when it is required to determine the nature of such relations in
a case of conflicting laws as regards which of such laws should be
applicable.

Article 11
The civil status and competence of persons shall be subject to the law of
the state of which they are nationals. However, In respect of financial
disposals concluded in Qatar and producing results therein, if one of the
parties is a foreigner lacking legal capacity due to a hidden cause that is
no easy for the other party to discover, such cause shall have no effect
on his capacity.
Article 12
With regard to the legal regulation of foreign juridical persons
including companies, associations, establishments and otherwise, the
law of the state in which such bodies have their actual head
administrative office shall apply. If such bodies carry on their main
activity in Qatar without having their actual head administrative office
therein, the Qatari law shall apply.
Article 13
Substantive conditions for the validity of marriages such as eligibility,
valid consent and freedom from legal impediments shall be governed
by the nationality law of each of the spouses applied at the time the
marriage was contracted.
If one of the spouses is Qatari at the time of concluding the marriage
contract, only the Qatari law shall apply with the exception of the
competence clause.
Article 14
Formalities of marriage such as legalization and religious ceremonies
shall be governed by the law of the country where marriage takes place,
or the nationality law of each spouse or their common domicile law.
Article 15
The law governing the formalities of marriages shall be the reference
for proving such marriages.

Article 16
1. The husbands nationality law applied at the time of contracting the
marriage shall be the reference In respect of the personal and financial
effects of marriage such as permitted cohabitation, obedience, waiting
period, alimony and dowry.
2. If the spouses unite in nationality after marriage, their nationality law
shall apply to the effects of marriage.
Article 17
(2) Divorce, forced divorce and separation shall be governed by the
spouses common nationality law applied at the time of divorce or filing
the action for a forced divorce or separation. If the spouses are different
in nationality, the husbands nationality law applied at the time of
contracting the marriage shall apply.
Article 18
Engagement shall be governed by the provisions set forth in the Articles
above concerning marriage.
Article 19
The fathers nationality law applied at the time of birth shall apply at to
matters concerning filiation, recognition and denial of filiation. If the
father dies before the birth of his child, his nationality law applied at the
time of death shall apply.
Article 20
The fathers nationality law shall apply to substantive matters
concerning guardianship of the person and custody.
Article 21
Obligations to support relatives shall be governed by the nationality law
of the person having such obligation.
Article 22
Substantive matters relating to guardianship, trusteeship, maintenance
and other systems laid down for the protection of minors, interdicts,

absent persons shall be governed by the law of the person to be

protected.
Article 23
1. Inheritance shall be governed by the decedents nationality law at
the time of his death.
2. Legacies located in Qatar for which there is no inheritor shall be
governed by the provisions of the Qatari law.
Article 24
1. Wills and disposals effective after death shall be governed by the
nationality law of the disposer at the time of his death.
2. However, the forms of wills and other disposals taking effect
after death shall be governed by the nationality law the disposer
at the time of the disposal, or the law of country where the
disposal is made.
Article 25
1. The lex situs shall apply to the possession and ownership of the
property, the in kind rights resulting in respect of the property,
the methods of acquisition, transfer and forfeiture of such rights.
2. The lex situs shall determine whether such property is real or
moveable.
Article 26
Possession, ownership, other in kind rights resulting in respect of
movable property, the methods of acquisition, transfer and forfeiture of
such rights shall be governed by the law of the place where such
moveable property is situated at the time when the cause resulting in the
acquisition or loss of possession, ownership or other rights arose.
Article 27
The formal conditions of and the effects resulting from the contract
shall be governed by the law of the state in which the contracting
parties have their common domicile. If they are different in domicile,

the law of the state where the contract is concluded shall apply unless
otherwise agreed by the contracting parties or if it transpires from
circumstances that another law is to be applied.
However, the lex situs shall apply to contracts made in respect of the
property.
Article 28
Labor contracts concluded by owners of businesses with their workers
and employees shall be governed by the law of the state where the head
office of the business is situated shall apply. If the head office of such
business is situated aboard and the branches of such business in Qatar
conclude such contracts, the Qatari law shall be applicable.
Article 29
The form of the contract shall be governed by the law of the state where
it is concluded. The law governing the substantive provisions of the
contract, the law of the country of the contracting parties or their
common national law may also apply.
Article 30
Obligations arising from illegitimate work shall be governed by the law
of the country in which the act giving rise to the obligation took place.
The provisions of the foregoing paragraph shall not apply to obligations
that arise abroad and are legitimate in Qatar even if they are considered
illegitimate in the country of occurrence.
Article 31
Obligations arising from enrichment without legal cause, payment of
undue amount and officious performance shall be governed by the law
of the country in which the act giving rise to the obligation occurs.
Article 32
The Court of Qatar shall apply the rules of jurisdiction and all
procedural matters prescribed by the Qatari law to legal relations
involving foreigners.

Article 33
The provisions of the foregoing Articles shall not apply to cases where
there is a contrary provision in a special law or in an international
convention in force in Qatar.
Article 34
Matter concerning which the above Articles contain no special
provision In respect of the conflict of laws shall be governed by the
principles of private international law.
Article 35
1. The judge shall determine the law to be applied to the case of persons
of unknown nationality, or persons who prove to have several
nationalities at the same time.
2. However, the Qatari law shall apply to persons who prove to have the
Qatari nationality and that of another state at the same time.
Article 36
If it transpires from the provisions of the foregoing Articles that the law
to be applied is the law of a particular state having various legal
systems, the domestic law of such state shall determine which legal
system is to be applied.
Article 37
If it is decided that a foreign law is to be applied, only the domestic
provisions thereof shall be applied exclusive of those provisions
relating to private international law.
Article 38
No provisions of a law specified by the preceding Articles may be
applied if such provisions are contrary to the public order or morals
observed in Qatar. In such case, the Qatari law shall be applied.

Chapter II - Persons
Section I - Natural Persons
Article 39
1. Mans personality shall begin with his complete live birth and end
with his death.
2. Missing and absent persons and foundlings shall be governed by the
provisions prescribed in special laws or those of the Islamic Sharia in
the absence of such provisions.
Article 40
Dormant pregnancy shall be valid as proof of the rights the cause of
which doe not require acceptance subject to complete live birth.
Article 41
A persons domicile is the place where he usually resides. Any person
may have more than one domicile at the same time.
Article 42
The place in which a person carries on a trade or a craft shall be deemed
his domicile In respect of such trade or craft.
Article 43
1. The domicile of a minor, an interdict and an absent person shall be
the domicile of their legal representative.
2. However, minors and interdicts and absent persons shall have a
special domicile In respect of the acts and disposals they are legally
considered competent to undertake.
Article 44
1. A chosen domicile may be established for particular legal activity.
2. The chosen domicile shall be recognized In respect of the legal
activity for which it is established including procedures of forced
execution unless such domicile is restricted to certain matters
exclusively by an express stipulation.

Article 45
1. A persons family is composed of his wife and relatives.
2. Relative are those combined by a common ancestor.
Article 46
1. Direct affinity is the relations between ancestors and descendents.
2. Collateral affinity is the relations between persons combined by a
common ancestor without any of them being the descendant of the
other.
Article 47
1. The direct affinity degree shall be determined by regarding each
ancestor as a degree without reckoning the ancestor.
2. The collateral affinity degree shall be determined by the number of
descendents in an ascending order from the descendent to the common
ancestor, then in a descending order from such common ancestor to the
other descendant without reckoning such ancestor.
Article 48
The degree of marriage connections shall be determined by the degree
of relation to the husband.
Article 49
1. Each person attaining the age of maturity shall be legally competent
to undertake legal disposals unless there is a decision for continuing
guardianship or trusteeship over his property or interdicting him.
2. The age of maturity shall be eighteen years in full.
Article 50
1. No person lacking in discretion because of his young age, imbecility
or insanity shall be competent to exercise his legal disposals.
2. Persons under the age of seven years shall be deemed lacking in
discretion.

Article 51
Any person who has reached the age of discretion without reaching the
age of maturity and any person who has reached the age of maturity but
is prodigal or unmindful shall be lacking in legal capacity as prescribed
by the law.
Article 52
Persons of no legal capacity or of defective legal capacity shall be
subject to the conditions of property guardianship prescribed in special
laws.
Section II - Juridical Persons
Article 53
Juridical persons shall include:
1. The State and its administrative units granted the capacity of a
juridical personality by the law and municipalities.
2. Authorities and corporations.
3. Waqfs (endowments).
4. Civil and trade companies, save as excluded by a special provision.
5. Private societies and establishments as prescribed by the law.
Any group of persons or property granted the capacity of a juridical
personality by the law.
Article 54
1. A juridical person shall enjoy all rights, with the exception of
those concomitant to the capacity of being a natural person,
within the limits laid down by law.
2. A juridical person shall have:(a) An independent patrimony
(b) A legal capacity within the limits laid down by the
document of institution or as prescribed by the law.
(c) The right of litigation

(d) A separate domicile, the place where the head

administration office is situated. The place where a branch
of the juridical person is situated may be considered the
judicial persons domicile In respect of the matters
pertaining to the activities of such branch.
(e) A nationality.
Article 55
As to the juridical person having its head office abroad but having an
activity in Qatar, the place where its local administration is situated
shall be considered its domicile In respect of such activity.
Chapter III- Things and Property
Article 56
1. Any thing falling outside the scope of dealings by nature or the
rule of law may become an object of financial rights.
2. Things falling outside the scope of dealing are by nature those
that no one can possess exclusively, but things falling outside the
scope of dealing by the rule of law are those that the law does not
allow to become an object of financial rights.
Article 57
1. Realties and movables belonging to the state or public juridical
persons shall be considered public property if they are allocated
for public utility or virtually by the law.
2. In all cases, such property may not be disposed of, attached or
acquired by prescription.
Article 58
Public property shall lose its public property with the termination its
allocation for public utility.
Such allocation shall be terminated virtually, by virtue of the law or
upon the termination of the purpose for which such property was
allocated for public utility.

Article 59
1. Anything settled and fixed it its place and cannot be moved
therefrom without damaging or changing its appearance shall be a
realty; all other things shall be considered movables.
2. However, any movable placed by its owners in a property this
owner possesses to serve such property or exploit it shall be a
movable by allocation
3. Any real right accruing in respect of a realty shall be a real
property. All other financial rights shall be considered movable
properties.
Article 60
1. Fungible things are things of such a similar or close nature that
some of them replace the others by custom without any
significant distinction, and which are calculated in dealing by
number, measurement, capacity or weight.
2. Things of value are things that vary in characteristics or value
significantly by custom or that are rarely traded.
Article 61
1. Consumable things are those that cannot be used without
consumption or spending.
2. All items prepared for sale in trading stores shall be consumable
things.
Chapter IV Use of Right
Article 62
Whoever used his right licitly shall not be held accountable for
whatever damage that may arise therefrom.
Article 63
Using the right shall illicit in the following cases:
1. If the intended interest of use is illicit.

2. If the intent is to cause harm to others only.

3. If the intended interest is completely inconsistent with the harm
caused to others.
4. If the use of the right is liable to cause unusually exorbitant harm
to others.
Section I Personal Rights or Obligations
Book I Obligations in General
Part 1 Sources of Obligation
Chapter I Contracts
Section I Elements of Contract
Article 64
A contract shall be concluded by the mere confluence of offer and
acceptance if the object of and reason of the contract are legally
acceptable without prejudice to any special formalities the law may
require for the conclusion of certain contracts.
I: Consent
Article 65
1. Will may be expressed verbally, in writing, a commonly used
sign, an actual interchange indicating consent or by adopting any
other attitude in respect of the connotation or intended fact the
conditions of the situation do not admit of doubting.
2. Will may be also expressed implicitly unless the law, the
agreement or the nature of the transaction does not require that
such expression be explicit.
Article 66
1. Expressing the will shall occur at the time it emanates from the
expresser. However, the expression shall produce its effects only
when it reaches the addressees knowledge.

2. When the expression of will reaches the addressee, it shall be

evidence of his knowledge thereof unless evidence to the
contrary is produced.
Article 67
The expression of will shall have no effect if a retraction of such
expression reaches the addressee before or at time such expression
reaches him.
Article 68
1. If the expression of will differs from the actual intent of the
expresser, the intent shall be the criterion.
2. However, the addressee of the expression of will may count on
such expression even though it contradicts the intent of the
expresser if he proves that he believed that the expression was
coincident with the true will and that the conditions of the
situation did not raise doubt over such coincidence.
Offer
Article 69
1. An offer may by addressed to unidentified persons as long as the
identity of the desired contractee is not considered essential for
the contract.
2. The offer of goods accompanied by an indication of their prices
shall be regarded as an offer subject to the rules of trade.
3. Publications, advertisements, sending or distribution of price lists
used in trading, any other statement connected with offers or
orders addressed to the public or particular individuals shall not
be regarded as an offer as long as the conditions of the situation
do not show otherwise.
Article 70
1. The offerer shall have the option to retract his offer as long as it
is not coupled with acceptance.

2. However, if the offerer has fixed a time limit for acceptance or

such time limit is required by the conditions of the situation or
the nature of the transaction, the offer shall remain existent
throughout such time limit and lapse upon its expiry.
Article 71
The offerers death or loss of legal capacity shall terminate the offer.
Acceptance
Article 72
1. The acceptance must coincide with the offer for concluding the
contract.
2. If the reply exceeds, restricts or otherwise varies the subject
matter of the offer, such reply shall be regarded as rejection
containing a new offer.
Article 73
1) No statement shall be ascribed to a person who remains silent,
but silence in the case requiring a statement shall be regarded as
acceptance.
2) The buyers silence after receiving the good he has bought shall
be regarded as acceptance of the terms contained in the price list.
Article 74
Acceptance shall be terminated by the acceptors death or loss of legal
capacity before it reaches the offerers knowledge.
Confluence of Offer and Acceptance
Article 75
If the offer is made at the contract session without containing a time
limit for acceptance, both parties shall retain the option to retract from
the time the offer is made until the session ends. If the offerer retracts
his offer or if the session ends without acceptance, the offer shall be
rejected.

Article 76
If the offer is accepted, the contract shall be concluded unless otherwise
agreed or required by the law or usage.
Article 77
A contract concluded by correspondence shall be deemed to have been
made at the time and place when and where acceptance reaches the
offerers knowledge unless otherwise agreed or required by the law or
usage.
Article 78
A contract made by telephone or in any similar way shall be regarded,
in respect of time, as if it had been made between present contracting
parties and between absent contracting parties with regard to place.
Article 79
If the contracting parties agree on all the essential elements of the
contract and leave matters of detail to be agreed upon later on without
stating that the contract shall not be valid if such matters are not agreed
upon, the contract shall be regarded to have been made.
If a dispute arises over the matters which have not been agreed upon,
the court shall decide thereon in accordance with the nature of the
transaction, the provisions of the law and rules of justice.
Article 80
1. If the contracting parties agree that their affairs shall be governed
by the provisions of a standard contract or regulations, such
provisions shall apply unless any of them proves that he did not
learn about such provisions or have the chance to learn about
them at the time of the agreement.
2. If the provisions of the standard contract or regulations of which
no knowledge has been taken are essential, the contract shall be
invalid. If the provisions are auxiliary, the judge shall decide the
dispute concerning them in accordance with the nature of the
transaction, current usage and rules of justice.

Agency for Contracting

Article 81
A contract may be made by agency unless the law requires it to be
made by the concerned party in person.
Article 82
1. The agents authority shall be determined by the deed of his
agency.
2. However, if the agency arises under an agreement and the
principal announces his agents authorities and notifies them to
third parties, any one who receives the announcement or notice
may contract with the agent pursuant to such authorities even if
they exceed those set forth in the deed of agency.
Article 83
1. If a contract is made by agency, the person of the agent not that
the principal shall be the criterion for considering the defects of
consent or the effect of actual or presumed knowledge or
ignorance of certain circumstances.
2. Nevertheless, if the agency arises by an agreement and the agent
disposes according to specific instructions from the principal, the
principal may not within the executive limits of his instructions
plead the ignorance of the agent of circumstances of which the
principal knew himself or which he should have known,
whereupon the defects of the principals consent shall be
considered.
Article 84
If within the limits of his agency the agent makes a contact in the name
of the principal, all the effects resulting from such contract shall
directly devolve upon the principal.
Article 85
If a person makes a contract with an agent who does not disclose his
capacity, the contract shall be regarded to have been made between the

agent in person and the contractee unless the contractee knows or

should have known of such capacity, or it makes no difference for him
to enter into a contract with the agent or the principal, in which case the
effects of the contract shall devolve upon the principal.
Article 86
In cases of agreed agency, if the agent enters into a contract in the
principals name after the termination of his agency, the contractee may
plead the contract on the basis of the agency if he and the agent dont
know at the time of contracting about such termination or if they could
not have known about such termination if they had used ordinary care
and diligence as required by the conditions of the situation.
Article 87
1. If one person enters into a contract for another without being his
agent or if he exceeds the limits of his agency, the effects of such
contract shall not be binding on the principal unless he ratifies the
disposals pursuant to the law.
2. If the disposal is not ratified, the other contracting party may
claim compensation from the person assuming the capacity of the
agent or exceeding the limits of his agency unless he learns or
should have learnt that there is no agency or about exceeding the
limits of the agency.
Article 88
No agent may enter into a contract with himself in the principals name
even for another persons account without the principals permission,
otherwise the disposal shall not be binding on the principal unless he
ratifies it, as long as the law or usage requires otherwise.
Article 89
No agent may delegate his agency to another person without being
authorized to do so by an agreement or the law.

Article 90
If the agency expires and the agent has received the evidentiary deed
thereof, he shall return such agency immediately upon expiry; he may
not retain it in his possession for any reason whatsoever.
Forms of Contracts
Article 91
1. No particular form of consent shall be required for concluding
the contract unless otherwise required by the law.
2. If the law imposes a particular form for concluding the contract
and such form is not observed, the contract shall be invalid.
Article 92
If the contracting parties stipulate a particular form for the formation of
the contract, neither of them may, without the consent of the other,
plead the formation of the contract unless it takes the agreed form.
Article 93
If the law requires a particular form or the contracting parties agree on
it as necessary and doubt arises over whether the form is required for
forming the contract or otherwise, it shall not be regarded as a
requirement for such formation.
Article 94
If the law or the agreement requires a particular form for creating the
contract, such form shall be observed in the promise contract thereof
and the subsequent agreements amending its effects, not in the
supplementary or detailed conditions added thereto without
contradicting its contents, unless otherwise stipulated by the law or
permitted by the nature of the transaction.
Article 95
If the contract concerns an object, the delivery of such object shall not
be required for creating the contract unless otherwise required by the
law, the agreement or usage.

Certain Particular Forms of Contracts

Promise to Contract
Article 96
Without prejudice to Article 94, the contract under which both or either
of the contracting parties promise or promises to conclude a specific
contract in the future shall not be valid unless it specifies all the
essential matters of the contract to be concluded and the period within
which it shall be concluded.
Article 97
1. If the promise contract is binding on both parties, each party shall
conclude it in its final form within the time limit determined by the
promise contract.
2. The promised contract shall be concluded on the same conditions of
the promise contract unless it is agreed to amend them or such
amendment is entailed by the nature of the transaction or the conditions
of the situation.
Article 98
1. If the promise contract is binding on one party, the promised contract
shall be concluded if accepted by the party favored by the promise and
his acceptance reaches the promisors knowledge within the time limit
set for the promise.
2. The promisors death or loss of legal capacity shall not preclude the
creation of the promised contract if it is accepted as prescribed by the
preceding paragraph.
3. If the promisee dies, the option to accept the promised contract shall
pass to his successors unless the personality of the promisee is
considered in the promise.
Article 99
1. If either party to the promise contract breaches its obligation to
conclude the promised contract, the other party may, if not in breach of

its obligations, claim a judgment against the party in breach for the
validity and enforceability of the promise contract.
2. The judgment recognizing the promise contract as valid and
enforceable shall replace the promised contract without prejudice to the
requirements of the law for registering such contract.
Contracting by Earnest Money
Article 100
Paying an earnest money at the time of concluding the contract shall
serve as a presumption that both of its parties have the option to retract
therefrom unless it transpires that they intended otherwise or usage
prescribes otherwise.
Article 101
If the payer of the earnest money refrains from concluding the contract,
he shall forfeit it, if the receiver refrains, he shall return it and pay an
amount equal to such earnest money if no damage results from
refrainment.
Article 102
1. If the agreement or usage does not specify a time limit for exercising
the option of refrainment, such option shall continue till the time the
contracting party gives an indication of his desire to confirm the
creation of the contract.
2. If one of the contracting parties fails to perform his obligations
within the specified time limit or delays in this regard for an unusual
period, the other contracting party may consider such failure or delay a
refrainment from the contract.
Contracting by Auction
Article 103
In respect of auctions, the auctioneer shall remain bound by his bid till
another auctioneer offers a better bid or till the auction closes without
being adjudicated to any one.

The failure of a bid because of a better one shall not preclude the nullity
or rejection of the latter bid. The contract shall take place when the
auction is adjudicated. However, if the conditions of the auction of
require that such adjudication should be authenticated, such
authentication shall be obtained for the creation of the contract, upon
which the contract shall be considered concluded from the date of
adjudicating the auction, unless otherwise stated by the law or indicated
by the intent of the contracting parties.
Article 104
By way of exception to the provisions of the preceding Article, the
auctioneers bid shall not fail because of a better bid at the auctions
offered in envelopes. The inviter to the auction may accept the bid he
deems the most appropriate from among the bids offered unless
otherwise stated by the law or indicated by the intent of the contracting
parties.
Contracting by Adhesion
Article 105
Conceding to a project already designed by the offerer for all his clients
shall not preclude the creation of the contract in adhesion by one of its
parties to the will of the other without discussing its conditions.
Article 106
If a contract is made by adhesion and contains arbitrary conditions, the
judge may at the request of the adhering party amend such conditions
so as to remove their injustice from him or relieve him thereof totally
even if he proves to have known thereof as prescribed by justice. Any
agreement to the contrary shall be invalid.
Article 107
In contracts of adhesion, doubt shall be interpreted in favor of the
adhering party be he a creditor or debtor.

B Validity of Consent
Article 108
Consent shall be valid only if it emanates from a legally competent
person and is devoid of defects.
Competence to Contract
Article 109
Every person shall be legally competent to enter into contracts unless
the law decides the absence of or detracts from such competence.
Article 110
Financial disposals carried out by a youngster incapable of discretion
shall be invalid.
Article 111
1. Financial disposals by a youngster capable of discretion shall be
valid if purely beneficial to him, but they shall be invalid if purely
detrimental to him.
2. Subject to the following provisions, financial disposals carried out by
a youngster capable of discretion and ranging between benefit and
detriment shall be liable to invalidation for his interest unless
immediately ratified by the guardian authorized to carry out such
disposals on the youngsters behalf or by the court according to
conditions, or by the youngster himself after attaining the age of
maturity in accordance with the law.
Article 112
If a discerning youngster attains sixteen years of age and is permitted to
receive his property to administer or receives it by the rule of law, the
acts performed by him shall be valid within the limits defined by the
law.

Article 113
A discerning youngster who receives his property for administration
shall be legally competent to perform the disposals required for the
administration of such property. However, he shall not be legally
competent to lease the property for over one year.
Article 114
A discerning youngster shall be legally competent to dispose of the
property delivered to him or placed under his disposal for the purposes
of his maintenance. The youngsters obligations concerning such
purposes shall be valid within the limits of such property only.
Article 115
1. A discerning youngster may conclude an individual labor contract
pursuant to the provisions of the law. The court may at the request of
the guardian, trustee or any interested person terminate the contract for
the youngsters interest or future or another apparent benefit.
2. A discerning youngster who attains fifteen years of age shall be
legally competent to dispose of the wage or any other income he earns,
and his obligations shall be valid within the limits of such money only.
However, the court may if the interest requires restrict the youngsters
competence of disposal of the said money, in which case the provisions
of guardianship or trusteeship, according to conditions, shall apply.
Article 116
A discerning youngster who attains sixteen years of age shall be legally
competent to conclude wills with the permission of the court.
Article 117
1. If a person having incomplete competence claims that he is legally
competent, such claim shall not prevent him from insisting on his
incomplete competence.
2. However, if a minor resorts for the purpose of concealing his
competence to fraudulent ways liable to lead to the belief that he is
legally competent, he shall be bound to compensate the person he

contracts with for the damage resulting from the contract. In such case,
the judge may decide to dismiss the invalidation action as
compensation.
Article 118
1. Insane, demented or unmindful persons shall be interdicted and disinterdicted by the court in accordance with the rules and procedures
prescribed by the law.
2. Interdiction requests shall be recorded in registers that are prepared
for such purpose and in which the content of the relevant decisions shall
be noted.
Article 119
1. Disposals occurring from insane and demented person interdicted by
a decision shall be invalid as long as the disposal occurs after recording
the interdiction request.
2. If the disposal occurs before recording the interdiction request, it
shall not be void unless the condition of insanity or dementia is
common at the time of contracting or the other party is aware of it.
Article 120
1. Disposals occurring from persons interdicted for prodigality or
absence of mind after recording the interdiction request shall be
governed by the provisions concerning the disposals of the discerning
youngster provided for in Article 111.
2. Disposals occurring before recording the interdiction request shall
not be void or liable to voidance unless concluded by conspiracy to
avoid the interdiction.
Article 121
The disposal by endowment or will occurring from a person interdicted
for prodigality or absence of mind shall be valid if the court convicts
him of his action.

Article 122
Administrative acts taken by a person interdicted for prodigality or
absence of mind but permitted to receive his property shall be valid in
according with the rules and procedures prescribed by the law within
the limits provided for in article 112 concerning the discerning
youngster.
Article 123
A person interdicted for prodigality or absence of mind shall be legally
competent to perform the disposals required for administering the
property delivered to him.
Article 124
A person interdicted for prodigality or absence of mind shall be legally
competent to dispose of the property assigned to him for his
maintenance within the same limits provided for in Article 114 in which
the competence of disposal by the discerning youngster of his property
is proved.
Article 125
A person interdicted for prodigality or absence of mind shall be legally
competent to enter into a labor contract and dispose of what he earns for
his work be it a wage or otherwise within the same limits prescribed by
Article 115 concerning the discerning youngster.
Article 126
Disposals occurring from guardians, trustees and curators shall be valid
with the limits prescribed by the law.
Article 127
If a person has such a physical disability that he cannot familiarize
himself with the circumstances of the contract or express his will,
especially if he is deaf-dumb, blind-deaf, or blind-dumb, the court shall
appoint a judicial assistant for him to assist him in the disposals for
which his interest requires assisting him in the courts opinion.

Article 128
The disposal for which judicial assistance is decided shall be liable to
invalidation if it occurs from the person after the registration of the
assistance decision without the help of the assistant unless the court has
permitted him to conclude it individually.
Article 129
If due to his physical or morbid condition a person cannot conclude a
disposal even with the assistants help, or if the person abstains from
doing so, the court may permit the judicial assistant to conclude the
disposal individually on his behalf if failure to conclude it is liable to
endanger the concerned persons interests.
C Defects of Consent
Error
Article 130
1. If a contracting party falls in an error without the occurrence of
which he would not have given his consent, he may request invalidating
the contract if the other contracting party falls in the same error or
knows of its occurrence, or it is easy for him to discover such error.
2. However, invalidation may be requested in respect of donations
without considering the other contracting partys participation in the
error of his knowledge about it.
Article 131
The effect of the error shall be enforced even if it is directed to the rule
of law concerning any matter of the contract.
Article 132
The person who gives his consent to an error may not insist on that
matter inconsistently with the requirements of good faith. The other
party may in particular insist on completing the contract he intended to
conclude without causing much damage as a result.

Article 133
The validity of the contract shall not be affected merely by material
arithmetical or writing errors, but such error shall be corrected.
Fraudulence
Article 134
1. Nullifying the contract for fraudulence may be requested by the
person who has given his consent as a result of subterfuges directed to
him in order to deceive and drive him to enter into the contract if he
proves that he would not have agreed to the contract if had not been
deceived by such subterfuge.
2. Lying in giving information concerning the facts of the contract and
its surrounding circumstances or keeping silent about them shall be
regarded as a subterfuge.
Article 135
1. Nullifying the contract on the grounds of fraudulence shall require
that the subterfuge must occur from the other contracting party, his
representative or one of his followers, the broker he empowered to
conclude the contract or from the person concluding the contract in his
interest.
2. If the subterfuge occurs from a third party, the deceived victim may
insist on nullification unless the other contracting party is aware of such
subterfuge at the time of concluding the contract or he should have been
aware of eventually.
Article 136
In respect of contracts of donations, nullifying the contract may be
requested of consent is given as a result of fraudulence even if
fraudulence occurs from a third party.
Coercion

Article 137
1. Nullifying the contract may be requested for coercion reasons
by a party who concludes it under the force of fear implanted
unjustifiably in him/her.
2. The fear shall be considered based on virtual grounds if the
contracting party faces means of coercion that make him feel
afraid of an impending grievous danger threatening his person
or others spiritually, physically, morally, and ones property
and funds.
3. In assessing the degree of coercion, the sex of the persons
falling under its influence, and his age, health conditions, and
all other conditions that are bound to affect the gravity of
coercion shall be taken into the consideration
Article 138
1. To request nullifying the contract on the basis of coercion,
coercion must emanate from the act of the contracting party, his
representative, one of his subordinates or a broker he uses for
concluding the contract or from the party for whose interest the
contract is concluded.
2. If coercion occurs due to the act of a third party, the coerced
contracting party may not insist on nullification unless the other
party learns about coercion at the time contracting or if he should
have eventually learned about it.
Article 139
In contracts of donations, nullifying the contract may be requested if it
is consented to as a result of coercion even if coercion emanates from a
third party.

Exploitation
Article 140
If one person exploits in another urgency, a plain frivolity, an evident
weakness, an indomitable passion or his moral dominance and makes
him conclude a contract in his own or another persons favor that
involves at the time of conclusion an exorbitant imbalance between
the obligations he shall perform and the material or moral benefit he
shall obtain from the contract, the judge may at the request of the
party victimized by exploitation reduce his obligations, increase the
obligations of the other party or nullify the contract.
Article 141
In respect of contracts of donation concluded as a result of
exploitation, the judge may at the donors request nullify the contract
or reduce the amount of the money donated according to the
conditions of the situation, requirements of justice and human
considerations.
Article 142
1. Actions filed for exploitation shall become time-barred with the
elapse of one year from the time of concluding the contract.
2. However, if the defect from which exploitation arises continues, the
one year period shall begin only from the date such defect disappears.
In any case, the action shall abate with elapse of fifteen years from the
date of concluding the contract.
Injustice
Article 143
Injustice that does not result from an error, fraudulence, coercion or
exploitation shall affect the contract only in the special cases
determined by the law.
Article 144
1. If the contract causes rank injustice to the state, other public
juridical persons, an incompetent or semi-competent person or

the endowment authority, the aggrieved person may request

amending the obligation of the other party or his own
obligation so as to remove the rank injustice he suffers.
2. Injustice shall be considered rank if exceeds one-fifth at the
time of concluding the contract.
3. Injustice may be objected to even if the contract is concluded
by the legal representative of the aggrieved person on his behalf
or if the court so permits.
Article 145
The party entering into a contract with an aggrieved person may avoid
the amendment to the contract effect by calling for terminating the
contract unless otherwise stipulated by the law.
Article 146
The contract concluded by auction or tender may be objected to for
injustice if it occurs as required by the law.
Article 147
Actions for injustice shall become time-barred if not instituted within
a year. Such year shall commence in respect of the state, other public
juridical persons and the endowment authority from the time of
concluding the contract, and in respect of incompetent and semiincompetent persons from the date of having full competence or death.
In any event, the action shall abate upon the elapse of fifteen years
from the time of concluding the contract.
II: Object
Article 148
If the object of the obligation is something impossible in itself, the
contract shall be null and void.
Article 149
1. The contract may concern something taking place in the future
if there is no deception.

2. However, dealing in the estate of a living person shall be null

and void even with his consent except in the cases stipulated by
the law.
Article 150
1. The object of an obligation must be sufficiently defined or the
contract shall be null and void.
2. If the obligation concerns an object, such object must be
defined by ifself, its kind, quantity, and degree of quality.
However, if the object is to be exclusively by its kind, it shall be
adequate if the contract comprises something to enable defining its
quantity. If the two contracting parties fail to agree on the quality
grade that it is not possible to deduct from usage or any other
condition, the debtor shall deliver an object of a medium type.
Article 151
If the object of the obligation constitutes a violation of public order or
morals, the contract shall be null and void.
Article 152
If the object of obligation is the payment of an amount of money, the
debtor shall be bound by the figure mentioned in the contract and no
change in its value shall have any effect even if it is otherwise agreed.
Article 153
1. In respect of an obligation to pay an amount of money, payment
shall be made in the Qatari currency.
2. However, if it is agreed to pay in a foreign currency, payment
shall be made in such currency.
Article 154
1. The contract may contain any condition acceptable to the two
parties unless it is legally prohibited or inconsistent with public
order or morals.

2. If the condition contained in the contract is illegitimate, the

condition shall be invalid while the contract shall be valid. If
either party proves that he would not have accepted the contract
without such condition, the contract shall be invalid.
Third: Cause
Article 155
1. The contract shall be null and void if a contracting party
commits himself for no cause or illegitimate cause.
2. The cause shall be valid depending on the motive for
concluding the contract if the other contracting party knows or
should inevitably have known of such cause.
Article 156
There should be a legitimate cause for any obligation even if it no
mentioned in the contract unless there is no evidence to the contrary.
Article 157
1. The cause mentioned in the contract shall be considered the real
cause until evidence to the contrary emerges.
2. If the simulation of the cause is proved, the party calming that
there is another legitimate cause for the obligation shall provide
evidence for the validity of his claim.
Section II Nullity
I: Voidable Contracts
Article 158
A voidable contract shall produce its effects unless its nullity is
decided. If it is decided that the contract is void, it shall be considered
as if had not been concluded.
Article 159
1. If the law vests one of the contracting parties with the right to
nullify the contact, the other party may not insist on such right.

2. If the cause of nullification exists and the party in whose favor

such cause is granted, the court shall decide nullification unless
otherwise prescribed by the law.
Article 160
The explicit or implicit approval of the voidable contract by the party
having the right to request voiding it shall extinguish such right in
respect of the defect approved.
Article 161
1. The right to request voiding the contract shall become timebarred if its holder fails to plead it within three years unless
otherwise prescribed by the law.
2. In case of short competence, the abatement period shall take
effect from the date of its completion, in case of error or
fraudulence from the date of emergence, and in case of coercion
from the day of removal.
3. In all cases, the right to request voiding the contract shall abate
with the elapse of fifteen years from the date of conclusion.
Article 162
1. Any interested party may serve a notice on the party having the
right to void the contract to express his desire in respect of
approving or voiding the contract within at least three months
from the date of the notice.
2. The notice shall be valid only if served after the prescription
period of the right of voidance takes effect.
3. If the notice time limit expires without the party having the
right of voidance expresses his desire in respect of approving or
voiding the contract provided that the notice is served oh his
person, the contract shall be considered approved.

II: Void Contracts

Article 163
1. No void contract shall produce any effect. Any interest party may
insist on such voidance. The court may decide such voidance at its
own discretion.
2. Neither approval nor the elapse of time shall render the void
contract valid.
3. Actions for voidance shall abate with the elapse of fifteen years
from the date of the contract.
III: Effects of Voidance
Article 164
1. In the cases of contract nullification and invalidity, the two
contracting parties shall return to their pre-contract condition, failing
which an equivalent compensation may by adjudged.
2. However, no incompetent or semi-competent shall be forced, in
case the contract is void or voided, to restitute other than the benefit
that has accrued to him from the implementation of the contact.
Article 165
1. Voidance of the contracts transferring the ownership may not
pleaded vis--vis the special successor who receives a real right from
either of the contracting parties if such successor has received his
right commutatively and in good faith.
2. The special successor shall be considered good faithed if he is not
aware at the time of disposal of the cause of voidance of his ancestors
contract and he was unable to be aware of it if he is as diligent as
required by the conditions of the situation of the ordinary person.
Article 166
If a part of the contract is void or voidable, such party alone shall
alone be voided. Unless it transpires that the contract would not have
been completed without such part, the whole contract shall be voided.

Article 167
If the contract is void or voidable, and yet it fulfils the elements of
another contract, it shall be considered valid as the contract the
elements of which are fulfilled if it transpires that the intention of the
contracting parties was aimed at concluding that contract.
Article 168
1. If the contract becomes void or is voided due to an error of
either of the contracting parties, the other contracting party or
third parties may claim compensation from him for any damage
resulting from both cases.
2. However, no compensation shall be due if the party suffering
the damage as a result of voidance or invalidation has
contributed to the causes of such damage or was or should have
been aware of its cause.
3. However, all the forgoing shall be in accordance with the
provisions of Article 117.
Section III Effects of the Contract
I: Interpretation and Determination of Content
Article 169
1. If the statement of the contract is vivid, they shall not be
diverted from by interpretation to recognize the will of the
contracting parties.
2. However, if there is room for interpretation of the contract, the
common intention of the contracting parties shall be sought
without pausing at the literal meaning words in the light of the
nature of dealing and trust and honesty prevailing between the
contracting parties, according to the current usage in dealings.

Article 170
Doubt shall be interpreted in the debtors interest.
However, if the contract contains a condition for relief of
responsibility, doubt shall be narrowly interpreted.
II: Binding Force of Contracts
Article 171
The contract is the law of the contracting parties. It shall not be
revoked or amended without the agreement of the two parties,
or for the reasons prescribed by the law.
However, if general unforeseen and exceptional events crop up and
their occurrence results in rendering the implementation of the
contractual obligation, though not impossible, an exhausting
factor that threatens the debtor with an enormous loss, the judge
shall, according to conditions of the case and after balancing the
interests of the two parties, reduce the exhaustive obligation
reasonably. Any agreement to the contrary shall be void.
Article 172
The contract shall be executed according to its provisions and in a
way compatible with the requirements of good faith.
The contract shall not be confined to committing the contracting
party to its contents, but shall also deal with its requisites
pursuant to the law, usage and justice according to the nature of
the obligation.
Article 173
If a simulated contract is concluded, the latent not the apparent
contract shall apply to the contracting parties and their respective
general successors.
Article 174
1. The creditors of the contracting parties and their respective
special successors may plead the latent contract and prove all

means the simulation of the contract causing harm to them.

They may also plead the simulated contract if they are of good
faith.
2. In case of a conflict among the interests of the concerned
parties because some of them plead the simulated contract
while the others plead the latent contract, the formers shall take
precedence.
III: Proportional Effects of the Contract
Article 175
The effects of the contract shall extend to the contracting parties and
the general successor subject to the provisions of succession unless it
transpires from the contract, the nature of the dealing or the text of the
law that such effects shall not extend to the general successor.
Article 176
If the contract creates personal obligations and rights connected
with particular property that are considered definitive thereof or
supplementary thereto, and such property passes afterwards to a
special successor, such obligations and rights shall devolve to
such successor at the same time as the property.
As a condition for the production of such effect in respect of said
obligations, the special successor must or should be able to be
aware of them at the time the property passes to him.
All the above shall apply unless otherwise prescribed by the law.
Article 177
The contract shall not place any third party under an obligation but it
may vest a right in him.
Article 178
If a persons undertakes to make a third party commit
himself/herself to performing some act, such undertaking shall
be binding on him not on the third party.

If the third party refuses to bear the obligation, the undertaker shall
compensate the undertakee for any damage suffered due to his
breach of such undertaking unless he himself performs the
object of the undertaking if he can without causing damage to
the undertakee.
If the third party accepts such undertaking, he shall be liable
therefore and the undertaker shall be discharged therefrom
from the time of his consent unless it proved that he intends to
ascribe the effect of such consent to the time of giving the
undertaking.
Article 179
In concluding a contract with himself, the person may stipulate that
his contractee shall perform particular obligations for a third
party if the stipulator has a material or moral interest in
performing such obligations.
In the stipulation made in favor of a third party, the beneficiary
may be a future person or a person not yet defined on
concluding the contract if it is possible to appoint him at the
time of fulfilling the stipulated obligation.
Article 180
1. The stipulation in favor of a third party shall result in proving
that the beneficiary is entitled to a personal right from the
undertaker that he may charge immediately unless otherwise
agreed.
2. The stipulator may require the undertaker to perform the
stipulated right to the beneficiary unless it transpires from the
contract that such matter is confined to the beneficiary alone.
Article 181
The undertaker may, vis--vis the beneficiary, assert all the pleas that
vest in him from the contract and that he could have pleased vis--vis
the stipulator.

Article 182
The stipulator, without his creditor or successors, may revoke the
stipulation before the beneficiary announces to the undertaking
party or the stipulator his wish to benefit from the stipulation
without contravening the contract requirements.
Revoking the stipulation shall not result in discharging the
undertaker vis--vis the stipulator, unless otherwise agreed or
required by the nature of the obligation.
When revoking the stipulation, the stipulator may replace the
original beneficiary by another one or avail of the special
benefit exclusively.
Section IV Dissolution of the Contract
Article 183
1. In contracts binding on the two parties, if a party fails to fulfill
his obligations, the other party may, after serving him a notice,
ask for executing the contract or revoking it and claim
compensation if necessary.
2. The judge may respite the debtor to an appointed term if
conditions so necessitate. He may also refuse the rescission of
the contract if the part the debtor fails to fulfill is insignificant
in relation to the aggregate obligations.
Article 184
It may be agreed that the contract shall be considered automatically
revoked without the need for any adjudication in case of failure
to fulfill the obligations arising therefrom.
Such condition or agreement shall not result in restricting the
judges authority in respect of rescission unless the contract
statement indicates explicitly that it was the intention of the
contracting parties.

The condition considering the contract automatically revoked in

other than commercial matters shall not exempt the concerned
party from serving the notice. No agreement by the parties to
the contrary shall be valid.
Article 185
Revoking the contract shall restore the two contracting parties to their
pre-contract condition, failing which compensation may be adjudged.
Article 186
Voidance of the contracts transferring the ownership may not
pleaded vis--vis the special successor who receives a real right
from either of the contracting parties if such successor has
received his right commutatively and in good faith.
The special successor shall be considered good faithed if he is not
aware at the time of disposal of the cause that led to voiding his
ancestors contract and he was unable to be aware of it if he is
as diligent as required by the conditions of the situation of the
ordinary person.
Article 187
1. In respect of contracts binding on one party only, the contract
shall be automatically revoked if it has become impossible to
perform the obligations for an extraneous cause beyond the
debtors control.
2. In case of partial impossibility, the creditor may plead the
contract in respect of the performable part of the obligation.
Article 188
In respect of contracts binding on the two parties, if it has become
impossible for one of the contracting to perform his obligation
for an extraneous cause beyond his control, such obligation as
well as the counter-obligations shall abate. The contract shall
also terminate automatically.

In case of partial impossibility, the creditor may, as appropriate,

plead the contract in respect of the performable part of the
obligation or request abrogating the contract.
Article 189
Both contracting parties may mutually revoke the contract with
their consent after its conclusion as long as the abject of the
contract is existent and available in the possession of either of
them.
If the object of the contract is partially lost, damaged or transferred
to a third party, the contract may be revoked in respect of the
remaining part proportionately to their respect shares of the
contracting parties.
Article 190
As regards its effect, revocation shall amount to cancellation in
respect of the contracting parties and a new contract in respect of third
parties.
Article 191
In respect of contracts binding on the two parties, if counter
obligations are due for settlement, each contracting party may refrain
from discharging his obligation if the other contracting party fails to
discharge his unless otherwise agreed or customarily required.
Chapter II Individual Will
Article 192
Legal disposals occurring with an individual will shall not create
any obligation, change or terminate any existent obligation
except in the special cases prescribed by the law.
If the law decides the creation, change or termination of an
obligation by virtue of the legal disposal occurring with the
individual will, such disposal shall be governed in general by
the provisions of the law, except for those inconsistent with
reliance of the disposal on the individual will.

Article 193
Whoever issues to the public a promise to grant a prize for a specific
work shall give such prize to the one who has performed such work,
even if the latter has done the work before or without regard to or
being aware of the promise.
Article 194
1. If the promisor sets a time limit for his promise, he shall not
retract it and the promise shall abate with the elapse of such
time limit.
2. If the promisor does not set a time limit from his promise, he
may retract it by making an announcement the public in the
way he addresses the promise or in any similar informational
way.
Article 195
Retracting the promise of the prize shall be effective only from the
date it is announced to the public. Retraction shall not affect the
right to reward the person who has done the work before such
date.
If no one has done the work, the person who starts the work before
announcing the retraction of the promise without completing
such work may claim from the promisor within the limits of the
prize the value of the expenses he has incurred or the effort he
has used if he proves that he was doing the work in time.
Article 196
The promisor shall determine the eligibility for the prize within six
months from the date of expiry of the time limit set in the
announcement unless the announcement sets another time limit.

Article 197
Neither promising nor giving the prize to the eligible person shall
result in proving the promisors right to the fruit of the work unless
the promisors conditions contain clauses to the contrary.
Article 198
Actions for claiming the prize or any other rights resulting from the
promise shall abate with the elapse of six months from the expiry of
the time limit set for determining the eligibility for the prize or from
the date of announcing the retraction of the promise according to
conditions.
Chapter III Responsibility of Unlawful acts
A. Responsibility for Personal Acts
Article 199
Any error causing damage to others shall hold its committer to
compensation.
Article 200
1. A person shall be responsible for his unlawful acts if they occur
from him while he is capable of discretion.
2. However, if damage is caused by an undiscerning person without
having anyone responsible for him or no compensation can be
obtained from the responsible person, the judge may hold the person
who causes the damage to equitable compensation with due regard to
his adversaries.
Article 201
1. The damage for which the person responsible for an unlawful act is
bound to pay compensation shall be determined according to the
extent of the loss that occurs and the profit that is lost as long as it
results naturally from such unlawful act.
2. The loss occurring or the profit lost shall be considered resulting
from the unlawful act if they can not be avoided by using the

reasonable effort required by the conditions of the situation of the

ordinary person.
Article 202
1. Compensation for the unlawful act shall include the damage
even if it is moral.
2. However, no compensation may be decided for the moral
damage resulting from death except for the spouses and
relatives as far as the second degree for any pain that may befall
them due to the casualtys death.
Article 203
The right to compensation for the moral damage shall not pass to a
third party except if its value is determined by the law or an
agreement or if only the creditor claims it before the judiciary.
Article 204
If the person establishes that the damage originated from an
extraneous cause he has nothing to do with, such as a surprise
accident, an event of force majeur, an error from the affected person,
or an error from a third party, he shall not be committed to pay
compensation for such damage unless otherwise prescribed.
Article 205
Whoever causes damage while in a state of legal self defense, or in
defense of his property or funds, or of a third partys life or funds and
property shall not be held responsible for such damage provided that
he does not exceed the necessary extent for warding off the harm,
otherwise he shall be responsible for paying compensation subject to
the exigencies of justice.
Article 206
Whoever causes damage to a third party in order to avoid an
impending bigger damage to himself or a third party shall not be
bound to pay other than the compensation the judge considers suitable.

Article 207
A public official shall not be responsible for an act by which he
causes injury to another person, if he acted in pursuance of an order
received from a superior, which order he had to obey or thought he
had to obey, and if he shows that he believed that the act he performed
was lawful, that he had reasonable grounds for such belief and that he
had acted with care and caution.
Article 208
Whoever, legally or by agreement, is bound to exercise control
over a person in need of supervision due to his minor age, or his
mental or physical condition shall compensate for the damage
that person causes to the third party by his illegal act. Such
obligation shall ensue even if the person causing the harmful
act is bereft of discretion.
A minor shall be considered in need of supervision if he has not
attained fifteen years of age, or has attained that age but is in
the care of the person in charge of rearing him.
Supervision over the minor shall transfer to his tutor at school or
his craft supervisor as long as the minor is under the
supervision of the tutor or the supervisor.
Supervision over a minor wife shall pass to her husband or to the
person assuming control over the husband.
A person entrusted with control may relieve himself of the
responsibility if he establishes that he has duly performed the
duty of supervision or that harm would inevitably occur even if
he performed that duty.
Article 209
1. The supervisor shall be responsible for the harm his subordinate
causes by his illegal act as long as it occurs thereby while
performing his job or because of it.

2. The supervisor-subordinate bond shall arise even if the

supervisor is not free to select his subordinate as long as the
task assigned to the subordinate is liable to prove that the
supervisor has actual authority to supervise or guide him.
Article 210
1. A person responsible for the act of a third party may claim from
him whatever he pays to an affected party in compensation for
his unlawful act.
2. However, neither the state nor the owner of the private school
or institute may claim from the tutor whatever the owner pays
to the affected party even it is impossible to recover it from the
property of the schoolboy in person unless the tutor proves to
have made a personal mistake.
Article 211
Whoever occupies a place for dwelling or another purpose shall be
responsible for paying compensation for any damage caused to a third
party due to the things that may be thrown or fall from such places
unless he proves that the damage has occurred due to an extraneous
cause beyond his control, without prejudice to his right of claiming
whatever he may pay from the person who throws or drops the thing
through his fault.
C. Responsibility for the Damage Caused by Objects
Article 212
1. Whoever assumes the charge of guarding objects requiring
particular care to prevent any damage that may be caused by
such objects shall be responsible for paying compensation for
such damage unless he proves that the damage is due an
extraneous reason beyond his control.
2. Objects requiring special care to prevent any damage that may
be caused by them shall include cars, planes, ships, other
vehicles, machinery, weapons, electric wires, animals,

buildings and any other object considered dangerous by nature

or position.
3. The guard shall remain liable for the animal he guards even if
the animal goes astray or sneaks away.
4. However, the guard shall not be responsible if the damage
occurs at the places where the animal is freed to braze without
control.
Article 213
1. Whoever is endangered by any object may ask its owner or
guard to take the necessary measures to avert its danger.
2. If the owner or the guardian fails to take the necessary measures
for averting the danger in time, the person in danger may obtain
permission from the court to take such measures at the owners
or guards expenses.
3. In cases of urgency, the person in danger may take any
necessary measures for averting the danger at the owners or
guards expenses without the need for the judges permission.
Compensation for damage resulting from unlawful acts
Article 214
If no compensation is determined for the damage resulting from an
unlawful act, the judge shall determine compensation.
Article 215
1. The judge shall assess the compensation in money.
2. The judge may according to conditions and at the request of the
affected person may order restoring the situations to their
former state or any other settlement as compensation.
Article 216
1. The judge shall estimate the compensation to the extent he
deems proper for repairing the damage in accordance with

Articles 201 and 202 taking into consideration the surrounding

conditions.
2. If it is uneasy for the judge when passing the judgment to
estimate the extent of the compensation finally, he may reserve
the right for the harmed person to request within a specified
period reconsidering the estimation of the compensation.
Article 217
The judge may order the compensation to be paid by installments or in
the form of a stipend within a specified period or forever, in which
cases the debtor shall be obligated to submit a sufficient guarantee if
necessary.
Article 218
Recovering the blood money as a guarantee for harm shall not prevent
the harmed person from having the right to claim compensation for
any other harm from the obligor in accordance with the provisions of
responsibility for unlawful acts unless it is proved that he has waived
his right therein.
Article 219
1. Actions in respect of responsibility for unlawful acts shall
become time-barred with the elapse of three years from the day
the affected party learns about the damage and the person
responsible for it, or fifteen years from the date the unlawful act
occurs, whichever is sooner.
2. However, if the action in respect of the responsibility for
unlawful acts arises from a crime, it shall not abate as long as
the penal action exists even if the time limits specified in the
foregoing articles expire.
Chapter IV Gains without Cause at the Expense of Others
Article 220
Any person, even if bereft of discretion, who gains without legal
cause at the expense of another person shall within the limits of his

gains compensate that person for the loss he has sustained. This
liability shall remain unchanged, even if that gain later disappears.
Article 221
Actions in respect of gains without legal cause shall abate with the
lapse of three years from the day the person sustaining the loss learns
of his right to compensation, or fifteen years from the day that
compensation right arises, whichever is sooner.
A. Receipt of Undue Payments
Article 222
1. Whoever receives, for settlement, what is not due to him, shall
have to refund it.
2. However, there shall be no ground for refund if the person who
makes the payment is aware that he is not obliged to do so
unless he is legally incompetent or has been forced to make
such payment.
Article 223
Payments unduly made may be recovered if such payment is made in
execution of an obligation the cause of which is absent or in execution
of an obligation the cause of which disappears after it was present.
Article 224
If settlement is made in execution of an obligation that has not fallen
due because the settler is unaware of the due date, the creditor may
refund only the interest he realizes due to such early settlement within
the limits of the damage caused to the debtor.
Article 225
There shall be no ground for recovering undue payments if payment is
made by another person that the debtor, thereby causing the bona fide
creditor to be stripped of the deed of debt or the deposit payments he
has received, or to let his action vis--vis the actual debtor abate by
limitation. The actual debtor shall in this case compensate the third
party who has made the payment.

Article 226
1. If the person receiving undue payments has been acting in good
faith, he shall only refund the payments he has received. If he
has acted in bad faith, he shall also refund the interest and the
profits he has earned or failed to earn from the object he has
unduly received from the day of receiving the object or as
appropriate from the day he acted in bad faith.
2. In any case, the person receiving undue payments shall refund
the interests and the yield as of the day he is sued for refunding.
Article 227
If the person receiving undue payments is not legally competent to
contract, he shall be only obligated to refund the amount within the
limits of the benefits he gains therefrom.
Article 228
Actions for recovering undue payments shall abate with the lapse of
three years from the day the person who has made the undue payment
learns of his right to recover the same or fifteen years from the day
this right ensues, whichever is sooner.
B. Officious Performance
Article 229
1. Officious performance is that a person volunteers to perform an
urgent service for another person without being obligated to do
so.
2. Officious performance is realized even if the officious person,
while assuming the performance of a matter for himself,
assumes the performance of another persons matter because
the two matters are so correlated that they can not be performed
separately from each other.
Article 230
If the business owner ratifies the service performed by the officious
person, the agency rules shall apply.

Article 231
The officious person shall prosecute the service he has started on till
the business owner can undertake himself. He shall also inform the
business owners to interfere when it is possible for him to do so.
Article 232
1. The officious person shall exert an ordinary care in performing
the service, failing which he shall be obliged to pay
compensation for the damage that may result from his fault.
2. However, the judge the compensation resulting from the
officious persons fault or relieve him if so justified by
circumstances.
Article 233
If the officious person delegates all or some of the service to another
person, shall be responsible for the acts of his attorney without
prejudice to the business owners right of direct recourse against this
attorney.
Article 234
If the same service is performed by several officious persons, they
shall be jointly responsible to the business owner.
Article 235
The officious person shall return to the business owner all what he
takes on account of his officious performance. He shall also submit to
him an account statement of the services he has performed as in the
agent-principal obligations.
Article 236
1. If the officious person dies, his heirs shall be bound to the
business owner by the obligations binding the agent to his
principal.

2. If the business owner dies, the officious person shall remain

bound to his heirs by the same obligations he was bound by to
the business owner.
Article 237
The officious person shall be considered an attorney for the business
owner if he exerts an ordinary care even without achieving the desired
result. In this case, the business owner shall fulfill the undertakings
concluded by the officious person for his account, compensate him for
the obligations he commits himself to, reimburse him for the
necessary and useful expenses justified by circumstances and pay him
compensation for the damage caused to him due to the performance of
the service.
Article 238
1. If the officious person is not legally competent to contract, he
shall be responsible in performing his service only to the extent
of the benefit he gains unless his responsibility arises from an
unlawful act.
2. The business owner shall remain fully responsible even if he is
not legally responsible to contract.
Article 239
Actions in respect of officious performance shall abate with the lapse
of three years from the day the concerned party learns of the ensuing
right, fifteen years from the day such right ensues, whichever is
sooner.
Chapter V Law
Article 240
Obligations directly ensuing from the law shall be governed by the
legal provisions creating them.

Part 2 Effects of Obligations

Chapter I Performance of Obligations
A. Compulsory Performance
Article 241
1. If the debtor fails to perform his obligation willingly, it shall be
compulsorily enforced.
2. However, if the obligation is natural, it shall not be enforced
compulsorily.
Article 242
In the absence of legal provisions, the judge shall determine whether
there is a natural obligation. In all cases, no natural obligation
contrary to the public order shall ensue.
Article 243
No debtor shall recover what he voluntarily pays with the intention of
performing a natural obligation, nor shall the payment made by him
be considered a donation.
Article 244
A natural obligation shall be considered valid reason for a civil
obligation.
B. Specific Performance
Article 245
1. The debtor shall be compelled to carry out a specific
performance of his obligation whenever possible after he is
served a notice demanding such performance.
2. However, if the specific performance constitutes exhaustion to
the debtor, the court may at his request confine the creditors
right paying compensation if it does not cause an enormous
harm to the creditor.

Article 246
An obligation to transfer the ownership or any other in kind right shall
transfer this right automatically if the object of the obligation is a
thing specified by its kind and is owned by the obligor subject to the
registration rules.
Article 247
1. If the obligation concerns the transfer of any in kind right on an
object that is specified by its kind only, such right shall not be
extraneousated except by sorting out such object.
2. If the debtor fails to fulfill his obligation, the creditor may
obtain an object of the same kind at the debtors expense after
obtaining the judges permission or without such permission in
urgency cases. He may also claim the value of the object
without prejudice to his right to compensation.
Article 248
An obligation to transfer an in kind right shall include the obligation
to deliver and protect the object till delivery.
Article 249
1. If the debtor binds himself to deliver any object but he fails to
deliver it after receiving a notice demanding him to execute his
work, he shall be responsible for the perishing of the object. If
the object perishes before the notice is served, responsibility
shall rest with the creditor.
2. However, the debtor shall not be responsible for the perishing
of the object even if he is served a notice if he proves that the
object would have perished with the creditor if it had been
delivered to him unless the debtor accepts to sustain the
consequences of force majuer or surprise incidents.
3. However, if a stolen object perishes or is lost in any shape
whatever, the thief shall sustain the consequences.

Article 250
In respect of an obligation to perform certain work, if the agreement
provides or the nature of the debt necessitates that the debtor shall
execute the obligation in person, the creditor may refuse any
fulfillment by any other person than the debtor.
Article 251
1. In respect of an obligation to perform certain work, if the debtor
fails to fulfill and perform his obligation the creditor may
request the judge to permit him to perform the obligation at the
debtors expense if such performance is possible.
2. In cases of urgency, the creditor may execute the obligation at
the debtors cost of the debtor without any judicial permission.
Article 252
In respect of an obligation to perform certain work, the judges ruling
shall stand for execution if so allowed by the nature of the obligation.
Article 253
1. If the debtor is required to maintain or manage an object, or
take due precautions in carrying out his obligations, he shall
have fulfilled his obligation if he has exerted all ordinary care
in performing it even if the desired purpose has not been
realized, unless otherwise prescribed in the law or the
agreement.
2. In all cases, the debtor shall remain liable for all fraud or
serious error he may commit.
Article 254
If the debtor commits himself to refrain from performing certain work
and then he violates this obligation, the creditor may demand
removing the work done in violation of the obligation or request the
judge permit him to carry out this removal at the debtors cost without
prejudice to his right to compensation.

Article 255
1. If the specific performance of the obligation is not possible or
unfitting unless it is carried out by the debtor himself, the
creditor may then obtain a court ruling binding the debtor to
effect such performance and pay a fine if he refrains.
2. If the court considers the amount of the fine adjudged
inadequate to compel the debtor into performance, the court
may increase the fine whenever it deems such increase
necessary.
3. If the specific performance takes place or the debtor insists on
refusing to perform the obligation, the court shall then
determine the amount of compensation to be imposed on the
debtor for failure to perform or delay, taking into consideration
the harm caused to the creditor and the pertinacity shown by the
debtor.
C. Execution by Compensation
Article 256
If the debtor fails to perform or delays performing the obligation
specifically, he shall be bound to compensate the creditor for the
damage he suffers unless he proves that the failure to perform or delay
is due an extraneous cause beyond his control.
Article 257
The court may reduce the amount of or decide no compensation if the
creditor if the creditor contributes to or aggravates the damage
through his fault.
Article 258
It may be agreed that the debtor shall sustain the consequences of
surprise accidents or a force majeure.

Article 259
1. It may also be agreed that the debtor shall be relieved of any
liability resulting from his failure to execute or delay in
executing his contractual obligation except for his fraudulence
or serious errors.
2. It may also be agreed that the debtor shall be relieved of the
liability for any cheat or serious errors committed by persons
used by him for executing his obligation.
3. Any agreement made before determining the responsibility for
unlawful acts and liable to relieve any party of it totally or
partially shall be void.
Article 260
No compensation shall be due except after serving a notice on the
debtor unless otherwise agreed by both parties or provided by the law.
Article 261
The debtor shall be forewarned by serving him a notice or by an
official paper in place of the notice. He may also be forewarned by
registered mail or any other agreed means.
Article 262
Forewarning shall not be required in the following cases:
1. If it is agreed that the debtor shall be considered forewarned as
soon as the debt falls due.
2. If it becomes impossible or useless to execute the obligation
due to the detbors act.
3. If the object of the obligation is compensation resulting from an
unlawful act.
4. If the obligation concerns returning an object known as stolen
to the debtor or something he receives unduly while being
aware of it as such.

5. If the debtor states in writing that he will not carry out his
obligation.
Article 263
1. The court shall estimate the compensation if it can not be
estimated by the contract or any legal provision.
2. The compensation comprise the loss sustained by the creditor
and the gain he lost as a natural result from the failure to fulfill
the obligation or the delay in its fulfillment. The damage shall
be considered a natural result if the creditor was unable to avoid
it by exerting a reasonable effort.
3. However, if the obligation originates from the contract, the
debtor who has committed no cheat or serious error shall not be
committed to pay compensation except for the damage that
could usually be expected the time of signing the contract.
Article 264
The compensation shall extend to the moral damage to which Articles
202 and 203 shall apply.
Article 265
If the object of the obligation does not concern an amount of money,
the contracting parties may define in advance the amount of the
compensation in the contract or in a subsequent agreement.
Article 266
No agreed compensation shall be due if the debtor establishes that no
damage has been caused to the creditor. The court may reduce that
compensation if the debtor establishes that the compensation was
greatly overestimated or the original obligation has been partially
executed. Any agreement to the contrary shall be null and void.
Article 267
If the damage exceeds the amount of the agreed compensation, the
creditor may not claim any sum in excess of this amount except if he
establishes that the debtor has committed fraud or a serious error.

Article 268
If the object of the obligation concerns an amount of money which the
debtor fails to pay after being forewarned and the creditor proves that
he has suffered damage as a result, the court may order the debtor to
pay compensation observing the exigencies of justice.
Chapter II Creditors General Guarantee and Means of Its
Protection
A. Creditors General Guarantee
Article 269
1. All the debtors assets shall guarantee the settlement of his
debts.
2. All creditors shall be equal in respect of this guarantee with the
exception of those enjoying precedence right according to the
law.
B. Use by Creditors of Debtors Rights (Indirect Suits)
Article 270
Every creditor, even if his right is not due for settlement, may use in
the name of his debtor all the rights of that debtor save those related to
his particular person or his non-distrainable rights if he establishes
that his debtor has not used these rights and that the failure to use
them is liable to cause or increase his insolvency.
The creditors use of his debtors rights shall not require forewarning
this debtor. The debtor shall also be involved as a litigant in the case
or it shall be dismissed.
Article 271
In using his debtors rights, the creditor shall be considered the
debtors attorney, and all benefits resulting from using these rights
shall form part of the debtors assets and a guarantee for all his
creditors.

C. Actions for Invalidating Disposals

Article 272
Any creditor whose rights are due for settlement and whose debtor
commits an act detrimental to him may request invalidating such act
in relation to his rights if this act has reduced the creditors rights or
increased his obligations and resulted in or increased the creditors
insolvency subject to the provisions prescribed in the following article:
Article 273
If the debtors disposal is made for some consideration, such disposal
shall be invalid if the debtor resorts to cheat and the disponee is aware
of such consideration. The debtor shall be supposed to have restored
to cheat if the creditor proves at the time of the disposal that the
debtor was aware of his insolvency and the disponee shall be
supposed to be unaware of the consideration if the creditor proves that
the disponee was aware at the time of the disposal that the creditor
was insolvent.
If the debtors disposal is made as for donation, its invalidity shall not
require proving that the debtor resorted to cheat or that the disponee
acted in good faith.
Article 274
1. If the debtors disposal is made for some consideration and then
the successor to whom the disposed of right passed transfers it
another successor for consideration, the creditor may not plead
the disposal as invalid except if he proves that the second
successor was aware of the debtors cheat and that the first
successor was also aware of such cheat.
2. If the debtors disposal is made for donation and then the
successor to whom the disposed of right passed transfers it
another successor for consideration, the creditor may not plead
the disposal as invalid except if he proves that the second
successor was aware of the debtors cheat at the time when the
disposal was made in favor of the first successor.

Article 275
If the creditor claims that the debtor is insolvent, he shall only prove
the amount of debts due from him and the debtor shall prove that he
has assets equal to or exceeding the amount of debts.
Article 276
If it is decided that the disposal invalid, all creditors prejudiced by
such disposal shall benefit by this decision.
Article 277
The disponee may red himself of the action if he deposit at the court
treasury an amount equal to the value of the disposed of property, but
no less than a standard price.
Article 278
1. If the insolvent debtor makes a disposal to unlawfully prefer
one creditor to another, all other creditors may request
invalidating the disposal subject to the provisions of articles
272 to 275.
2. If the insolvent debtor settles his debt to one of his creditors
before expiry of the term originally set for settlement, the other
creditors may request invalidating such payment. If the debtor
settles his debts after the expiry of the fixed term, those
creditors may not request invalidating the settlement if it has
been made by conspiracy between the debtor and the settled
creditor.
Article 279
Actions for invalidating disposals shall become time-barred upon the
lapse of three years from the day the creditor knows about the
invalidity of the disposal against him. In call cases, actions shall abate
with the lapse of fifteen years from the date the disposal is made.

Article 280
1. Whoever commits himself to perform something may refrain
from fulfilling his obligation as long as the creditor has not
offered to fulfill an obligation due and related to the debtors
obligation, or as long as the creditor has not submitted an
adequate security for fulfilling his obligation.
2. However, the possessor or holder of the object may refrain from
returning the object till he recovered any necessary or useful
expenses he has spent on the object except if his obligation to
return the object has resulted from an unlawful act.
Article 281
1. The distrainer shall preserve the object in his possession in
good shape according to the provisions governing the
possession mortgage and submit an account on its yield.
2. If it is feared that the object distrained may be lost or damaged,
the distrainer shall have the right to obtain an authorization
from the court to sell it according to the provisions prescribed
by the court. He may also sell it without the court permission in
cases of urgency in which case the right to distrain shall move
from the object to its price.
Article 282
The mere right to distrain an object shall not grant the distrainer any
lien thereon.
Article 283
If the object distrained is lost or damaged, the right to distrain shall
move to any due consideration or compensation as a result.
Article 284
1. The right to distrain shall abate if the object removes from the
distrainers hand.
2. However, if the object removes from the distrainers hand
without his knowledge or despite his objection, he may request

redeeming it within thirty days from the date he learns of

removal from his hands, and before the lapse of one year from
the date of its removal.
Modifying Descriptions of Obligation Effects
Chapter 1
Condition and Term
A. Condition
Article 285
An obligation shall not be conditional if its existence or disappearance
depends on a future matter of uncertain occurrence.
Article 286
If the condition whereon the obligation is dependant is contrary to the
public order or morals, or is impossible, the obligation shall not arise
if the condition is suspensive. If the condition is resolutory, it shall not
ensue or affect the validity of the obligation.
However, an obligation dependant on a resolutory condition that is
contrary to morals or the public order shall not be valid if that
condition is the motive for the obligation.
Article 287
No obligation shall ensue if it is made dependant on a suspensive
condition rendering the obligation contingent upon the obligators
mere will.
Article 288
1. The obligation dependant on a suspensive condition shall not be
valid unless that condition is materialized.
2. However, the creditor may, before the realization of that
condition, take such measures as enable him to maintain his
right.

Article 289
1. The obligation dependant on a resolutory condition shall take
immediate effect. If the condition exists, the obligation shall
abate and the creditor shall turn over what he has received. If it
is impossible for him to return it for a reason attributable to him,
he shall then pay compensation.
2. However, the creditors acts of management shall remain valid
despite the realization of that resolutory condition.
Article 290
1. If the suspensive or resolutory condition is realized, its effect
shall go back to the time the contract is made unless it
transpires from the contracting parties will or the nature of the
contract that the existence or absence of the obligation shall
revert to the time the condition is realized.
2. However, the condition shall not have a retroactive effect if the
execution of the obligation it becomes impossible for the debtor
to perform the obligation before the condition exists for an
extraneous cause beyond his control.
B. Term
Article 291
The obligation shall a term one if its execution or termination is
consequential upon a future matter of certain occurrence even if the
time of occurrence cannot be foreseen.
Article 292
If the obligation is coupled with a suspensive term, it shall not be
valid except at the time of expiry of that term.
However, the creditor may, even before the expiry of the term, take
such measures as will maintain his right, and may in particular
demand a security deposit if he fears on reasonable grounds that the
debtor may become bankrupt or insolvent.

Article 293
1. The suspensive term is supposed to have been fixed in the
debtors interest unless it is provided in the law or found out
from the contract or circumstances that it is fixed in the
creditors interest or that of both parties together.
2. If it transpires that the term is fixed in either partys interest, it
may be waived.
Article 294
A debtors right to a term shall abate in the following cases:
If he is adjudged bankrupt.
If he by his deed enormously impairs the special security deposit
he gives to the creditor even if that security was given is given
by a subsequent contract or by virtue of the law unless the
creditor prefers to demand the security to be completed. If the
security deposit is impaired due to a reason beyond the debtors
will, the term shall abate unless the debtor gives an adequate
security deposit to the creditor.
If the debtor fails to submit to the creditor the security deposit he
promised in the contract to give.
Article 295
If it transpires from the obligation that the debtor does not fulfill it
except in case of his ability or solvency, the court shall determine a
suitable time limit for maturity of settlement on the basis of the
debtors current and future resources and the assumption that he shall
exert diligent care for fulfilling his obligation.
Article 296
The obligation coupled with a resolutory term shall take immediate
effect, but the expiry of the term shall terminate the obligation without
any retroactive effect for such termination.

Chapter II Multiple Objects of the Obligation

A. Optional Obligations
Article 297
An obligation shall be optional if the object thereof involves
multiple things that clear the debtors liability if he discharges
one of them. Either the debtor or the creditor shall have the
option to specify such object.
If the option to specify the object is absolute, it shall rest with the
debtor to specify unless it is prescribed in the law or agreed by
the two contracting parties that the creditor shall have such
option.
Article 298
The specification option shall determine the period within which
such the object is to be specified. If no period is decided, the
court shall determine a suitable period at the request of either
party.
If the option is granted to the debtor and he refrains from opting, or
in case of multiple debtors who fail to agree among themselves,
the creditor may request the court shall define the obligation
object itself. If it is for the creditor to opt and he refrains from
opting, or in case of multiple creditors who fail to agree among
themselves, the option shall pass to the debtor.
Article 299
If the specification option is granted to the debtor and one of the
objects in his possession perishes, he may hold the creditor
liable for the other. If they both perish, the obligation shall
abate.
If the debtor is responsible for perishing even if in respect of eight
thing, he shall be bound to pay the value of the last one that
perishes.

Article 300
The specification option shall pass to the successor.
B. Substitutional Obligation
Article 301
An obligation shall be substitutional if its object does not cover except
one thing, but the debtor shall be discharges if he fulfills another thing
in lieu thereof.
The original not the substitutional thing shall alone be the object of
the obligation.
Chapter III Multiple Parties to the Obligation
1. Solidarity
Article 302
Solidarity among creditors or debtors shall not be presumable, but it
shall be based on an agreement or legal provision in accordance with
the rules of trade.
A. Solidarity among Creditors
Article 303
Joint creditors, collectively or individually, may require the debtor
to discharge the debt in full subject to the quality attached to
each creditors bond that modifies the effect of the debt.
The debtor required by a joint creditor to discharge the debt may
not invoke the other creditors' pleas against that creditor, but he
may invoke that claming creditors pleas as well as the pleas
shared by all creditors.
Article 304
The debtor may discharge the full debt of any joint creditor unless he
is warned by another creditor to refrain.
However, solidarity shall not prevent dividing the debt among a joint
creditors successors unless the debt is indivisible.

Article 305
If a debtor is discharged vis--vis a joint creditor for another
reason than settlement, he shall not be discharged vis--vis the
rest of creditors except to the extent of the share of the creditor
who discharges him.
However, if a joint creditor carries out an act liable to prejudice the
other creditors, such act shall not be valid against them.
Article 306
Any amount received by a joint creditor in settlement of the debt shall
become a right to all creditors who shall share it equally unless there
is an agreement or provision to the contrary.
B. Solidarity among Debtors
Article 307
The creditor may require joint debtors collectively or individually
to discharge the debt subject to the quality attached to each
debtors bond that modifies the effect of the debt. If the creditor
requires a joint debtor to discharge the debt immediately, he
may claim the same from the other debtors.
The debtor required by the creditor to discharge the debt may not
invoke the other debtors pleas, but he may invoke his own
pleas as well as the pleas shared by all debtors.
Article 308
The settlement by a joint debtor of the debt in kind or for
consideration shall result in discharging him and the other debtors.
Article 309
Renewing the debt between the creditor and one of the joint debtors
shall result in discharging the other debtors unless the creditor
reserves his right of recourse against them.
Article 310

No joint debtor may not plead any offset taking place between the
creditor and another joint debtor except to the extent of the share of
the other debtor.
Article 311
If the creditor discharges a joint debtor, other debtors shall not be
discharged unless the creditor so confirms.
If no such confirmation is made, the creditor may claim from the other
joint debtors the debt balance after deducting the discharged debtors
share. However, the creditor may claim all the debt from the debtors if
he reserves such right, in which case such debtors shall have the right
of recourse against the debtor in whose favor the discharge decision is
made to the extent of his share in the debt.
Article 312
If the creditor discharges one of the joint debtors for the joint
obligation, he shall reserve the right to claim the whole debt from the
remaining debtors unless otherwise agreed.
Article 313
In all cases where the creditor discharges a joint debtor whether from
the debt or the joint obligation, the remaining debtors shall have the
right of recourse against that debtor, if necessary, to the extent of his
share in the portion of the insolvent debtor among them according to
article 319.
However, if the creditor relieves the debtor he has discharged from his
liability for the debt, the creditor shall himself sustain the share of
such debtor in the portion of the insolvent debtor.
Article 314
If the debt abates by limitation in respect of a joint debtor, the
remaining debtors shall benefit only to the extent of such debtors
share.

If the period of limitation discontinues or its validity is terminated in

relation to one of the joint debtors, the creditor may not invoke the
same vis--vis the remaining debtors.
Article 315
The joint debtor shall be responsible only for his own act in respect of
the performance of the obligation.
If the creditor forewarns or sues one of the joint debtors, such
procedure shall have no effect in relation to the remaining debtors.
However, if one of the joint debtors forewarns the creditor, the
remaining creditors shall benefit by such warning.
Article 316
If the debtor compounds with one of the joint creditors, and the
composition comprises clearance from the debt, or discharge from the
debt by any other method, the remaining debtors shall benefit thereby.
If such composition is likely to generate an obligation on them or
increase their obligations, it shall not be valid against them unless it is
acceptable to them.
Article 317
If one of the joint debtors acknowledges the debt, such
acknowledgment shall not be valid vis--vis the other debtors.
If one of the joint debtors abstains from the oath, or directs to the
creditor an oath he took, the other debtors shall not be prejudiced.
If the debtors act is confined to directing the oath to one of the joint
debtors and this debtor takes the oath, the other debtors shall benefit
thereby.
Article 318
If a court ruling is passed against one of the joint debtors, such ruling
shall not be pleaded against the other debtors.
If a court ruling is passed in favor of one of them, the remaining
debtors shall benefit from it unless the ruling is based on a special

cause concerning only the debtor who has received such ruling in his
favor.
Article 319
If one of the joint debtors settles the whole debt or more than his share
therein or performs it by an equivalent method of settlement, he may
not have recourse against any of the other debtors except to the extent
of his share in the debt even though his recourse is based on the right
of substitution.
If the debt is settled by one of the debtors, it shall be divided into
equal shares among them all unless otherwise agreed or prescribed by
a legal provision.
If a joint debtor becomes insolvent, the consequences of such
insolvency shall be sustained by the debtor who has discharged the
debt and all the other debtors proportionately to their respective shares
without prejudice to the right of recourse against the insolvent debtor
if he becomes solvent.
Article 320
If one of the joint debtors has an exclusive interest in the debt, he shall
sustain the whole debt in his relation with the other debtors.
2. Indivisibility
Article 321
The obligation shall be indivisible:
If it covers an object that is indivisible by nature.
If it transpires from the objective of the two contracting parties that
the obligation may not be executed if divided or if such was the
intention of the contracting parties.
Article 322
In case of multiple debtors in an indivisible obligation, each one of
them shall be liable for performing the obligation in full. The debtor
who discharges the debt shall have the right of recourse against the

others to the extent of their respective shares unless otherwise

revealed by conditions.
Article 323
In case of multiple creditors or multiple successors in an indivisible
obligation, each creditor or successor may ask for settling the
obligation in full. If a creditor or a successor objects, the debtor shall
be liable for discharging the obligation to the creditors combined, or
depositing the object of the obligation as legally required.
Creditors shall have the right of recourse against the creditor who
receives settlement of the obligation, to the extent of their respective
shares.
Part 4 Transfer of Obligations
Chapter I Transfer of Rights
Article 324
The creditor may transfer his debt to another person, unless such
transfer is prevented by a legal provision, an agreement of the
contracting parties, or the nature of the obligation. The debt shall be
transferred without the need for the debtors consent.
Article 325
The debt may be transferred only to the extent of the distrainable
portion distrainable of the debt.
Article 326
The transfer of debt shall not be valid vis--vis the debtor or a third
party unless it is accepted by or announced to the debtor. However, its
validity vis--vis third parties, with the acceptance of the debtor shall
require this acceptance to have a fixed date.
Article 327
Before announcing or accepting the transfer of the debt, the transferee
creditor may take any necessary procedures to protect the transferred
debt.

Article 328
The debt shall be transferred to the transferee inclusive of its qualities,
ancillaries and securities.
Article 329
The transferor shall deliver to the transferee the deed of the
transferred claim, the evidentiary means and any necessary details to
enable him to recover the debt.
Article 330
If the transfer is made against consideration, the transferor shall only
guarantee the existence of the transferred debt at the time of
transferring unless otherwise agreed.
If the transfer is made for no consideration, the transferor shall not
guarantee even the existence of the claim.
Article 331
The transferor shall not guarantee the debtors solvency unless there is
a special agreement on such guarantee.
If the transferor guarantees the debtors solvency, such guarantee shall
only apply to solvency at the time of transferring unless otherwise
agreed.
Article 332
1. If the transferee claims the guarantee from the transferor in
accordance with the two previous articles, the transferor shall refund
only what he has taken from the transferee together with the expenses
even if there is an agreement prescribing otherwise.
2. However, if the transferor learns that the obligation is due from the
debtor, he shall compensate the bona fide transferee for any damage
he may suffer.

Article 333
1. The transferor shall be liable for compensating the transferee for
any damage he may suffer due the transferors personal acts even if
the transfer is made without consideration.
2. Any condition to the contrary shall be void.
Article 334
The debtor may invoke vis--vis the transferee the pleas he had the
right to invoke vis--vis the transferor at the time when the transfer is
valid. The debtor may also invoke the pleas derived from the deed of
the transfer.
Article 335
If multiple transfers involve one right, precedence shall be given to
the transfer that is enforceable before the other transfers in respect of
third parties.
Article 336
If an attachment is levied in the debtors hand before the transfer of
claim becomes enforceable vis--vis third parties, the transfer shall
become tantamount to another attachment for the distrainer.
In this case, if another attachment is levied after the transfer becomes
enforceable vis--vis third parties, the debt shall be divided pro rata
between the earlier distrainer, the transferee and the late distrainer,
providing that there shall be taken from the late distrainers share a
portion to enable the transferee to supplement the amount of the
transferred right.
Chapter II Transfer of Debts
Article 337
1. The debt shall be transferred under an agreement between the
debtor and other person for transferring the debt from the debtors
liability to that of the transferee.

2. The transfer shall be restrictive if its settlement is restricted by

some realty or debt due from the transferee, while it shall be
unconditional if its settlement is not restricted by a realty or debt even
if some realty or debt is due to the debtor from the transferee from
which settlement can be made.
Article 338
1. The transfer of debt shall not be enforceable vis--vis the creditor
unless he approves it.
2. If the original debtor or the transferee announces the transfer to the
creditor, and sets him a reasonable term to approve the transfer and
then the term lapses without the creditor's approval is issued, the
creditor's silence shall then be considered refusal of the transfer.
Article 339
The transferee shall be liable vis--vis the original debtor for settling
the transferred debt to the creditor in time unless otherwise prescribed
by an agreement. This provision shall be valid even if the creditor
refuses the transfer.
Article 340
The transfer of debt may also take place by agreement between the
creditor and the transferee. However, if the original debtor refuses to
approve the transfer, the transferee shall have the right of recourse
against the creditor only pursuant to the rules relative to gains without
cause if the transfer conditions are fulfilled.
Article 341
If the creditor is a party to or approves the transfer, the original debtor
shall be discharged from the debt.
Article 342
The original debtor shall guarantee the transferee to be solvent at the
time the creditor approves the transfer unless otherwise agreed.

Article 343
1. The debt shall transfer to the transferee including its qualities,
ancillaries and securities.
2. However, however, the surety, whether corporeal or personal, shall
not remain committed vis--vis the creditor unless except if he
approves the transfer.
Article 344
The transferee may invoke vis--vis the creditor the pleas the original
debtor had concerning the same debt. He may also invoke the pleas
ensuing from the transfer contract.
Article 345
1. If the debt restricting the transfer abates for an incidental reason
after being concluded, the creation of the transfer shall not be
affected, and the transferee may have recourse against the original
debtor to the extent of the amount paid to the creditor.
2. If the debt restricting the transfer for a reason prior to its
conclusion, the tranfer shall be void.
Article 346
In all cases where the price of the sold object falls due, the transferee
having paid the price shall have the right of recourse either against the
transferor or the other transferee he has paid.
Article 347
If the debtor transfers his debt to the depositee by a transfer limited by
the realty deposited with him and the deposit perishes before being
made to the creditor through no fault by the depositee, the transfer
shall be rescinded as a result. If the deposit is due to a third party, the
transfer shall be void.
Article 348
If the debtor transfers his debt to the usurper by a transfer limited by
the usurped realty and the realty perishes in the usurpers possession

before being made to the creditor, the creation of the transfer shall not
be affected. If the usurped realty is due to a third party, the transfer
shall be void.
Article 349
The creditor may not recourse against the original debtor unless he
stipulates such right of recourse in the transfer if the debt can not be
recovered from the transferee, or if the restricted transfer is rescinded
or becomes void upon the settlement of the debt or if the realty
perishes or becomes due in accordance with the four Articles above.
Article 350
If the original debtor transfers his debt by an unlimited transfer
without being entitled to any debt or realty from the transferee, the
transferee may recourse against the original debtor after the debt is
settled to the extent of the transferred debt.
Article 351
If the original debtor transfers his debt unlimitedly where he is
entitled to a debt or a deposited or usurped realty, he shall have the
right after the transfer is made to claim the debt or realty from the
transferee till the transferred debt is discharged to the creditor. If the
transferee discharges the debt to the creditor, he shall be discharged of
the debt to the extent of the amount he has paid.
Article 352
If the concluded transfer is restricted by a debt or realty, the original
debtor may not make any claims against the transferee and the
transferee shall not be bound to make any payment to the debtor.
Article 353
Selling an officially mortgaged realty shall not result in transferring
the debt guaranteed by the mortgage to the estate of the buyer, unless
such is agreed.
2. If the vendor and the buyer agree on transferring the debt, and the
deed of sale is registered, the creditor, once he is officially notified

about the transfer shall approve or refuse it within a time limit not
exceeding six months. If this period lapses without the creditor taking
a final decision, his silence shall be taken for approval.
Part 5 Termination of the Obligation
Chapter I Settlement
Section I Parties to the Settlement
Article 354
Settlement by the debtor, his deputy, or any other person having an
interest in settlement shall be valid, subject to the provisions of Article
250.
Settlement by a person having no interest in such settlement may also
be valid, even if made without the debtors knowledge and in spite of
his will. However, the creditor may refuse settlement by a third party
if the debtor objects and notifies the creditor of his objection.
Article 355
As a condition for the validity of a settlement, the debtor settling the
debt must be the owner of the object with which he has made the
settlement and legally competent to dispose thereof.
However, a settlement made by a person lacking in legal capacity with
an object due from him shall be valid if the settlement causes no
damage to the settler .
If the debtor settles the debt of some creditors while in his last illness
and his assets are not sufficient for settling the whole debt, such
settlement shall not be valid in respect of other creditors if it causes
them damage.
Article 356
1. If a third party settles the debt, he may claim the amount he has
paid for settlement from the debtor.
2. However, the debtor without whose will the settlement is made may
prevent the settler from claiming the amount he has paid for

settlement in whole or in part if he proves that he had has an interest

in objection to the settlement.
Article 357
If another person than the debtor settles the debt, the settler shall
replace the creditor who receives a settlement of his dues in the
following cases:
If the settler is obligated together with the debtor to settle the debt, or
is obligated to settle the debt for the debtor.
If the settler is another creditor having precedence over him due to his
in kind security for the debt even though the settler does not have any
security deposit.
If the settler had bought some realty and paid its price in settlement of
a debt due to creditor for whom he appropriated the realty to
guarantee his right.
If a special text entitles the settler to replace the debtor.
Article 358
1. The creditor who receives settlement of his right from another
person than the debtor may agree with that person to replace him even
if the debtor does not accept. Such agreement may not take place later
than the time of settlement.
2. The debtor may, if he borrows money to settle his debt, replace the
creditor who has received his dues by the lender even without the
creditors consent providing that the deed of loan specifies the money
that has been appropriated for settlement of the debt, and that the
acquittance indicates that the settlement of the debt has been made
with that money borrowed from the new creditor.
3. The agreement concluded with the creditor and both of the load
deed and acquittance must be dated so that the right of replacement
can be valid.
Article 359

Whoever legally or consensually replaces the creditor shall have the

right granted to such creditor, with its attributes, ancillaries and
security deposits, as well as its relevant rebuttals. Such replacement
shall be to the extent of the amount paid by the person replacing the
creditor.
Article 360
If another person than the debtor settles part of the creditors claim
and replaces the debtor, the creditor shall not be prejudiced by such
replacement, and shall have precedence in respect of recovering the
remaining part of his dues over the person who settles it, unless
otherwise agreed.
Article 361
If the holder of the mortgaged realty settles all the debt and replaces
the creditors, he shall not, by virtue of such replacement, have
recourse against the holder of another mortgaged realty in respect of
the same debt except to the extent of the share of such holder
according to the value of the portion he holds of the realty.
Article 362
Settlement of the debt shall be made to the creditor or his deputy. Any
person producing to the debtor an acquittance issued by the creditor
shall be qualified to receive such settlement of the debt, unless it is
agreed that the settlement shall be made to the creditor in person.
Article 363
If settlement is made to another person than the creditor or his deputy,
the debtor shall not be discharged except if the creditor approves such
settlement, or if he gains benefit therefrom in which case he shall be
discharged to the extent of such benefit, or if the settlement is made in
good faith to a person holding the debt in his possession.
Article 364
1. If the creditor unjustifiably refuses to accept the settlement validly
offered to him, or perform the works without which the settlement

will not be made, or if he announces he refuses the settlement, the

debtor may serve him a warning and record such refusal against him.
2. If the warning is served on the creditor, he shall sustain the
consequences if the object perishes or gets damaged, in which case the
debtor shall have the right to deposit the object at the creditors
expense and claim compensation if required.
Article 365
A real offer by the debtor (for settlement) shall stand for settlement if
followed by a deposit made in accordance with the provisions of the
procedural law or by another similar proceeding if it is acceptable to
the creditor, or a final judgment validating the procedure is
pronounced.
Article 366
The direct deposit by the debt directly deposited or any alternative
procedure taken for the deposit by the debtor shall stand for settlement
in the following cases:
1. If the debtor ignores the creditors personality and domicile
2. If the creditor is legally incompetent or semi-incompetent and has
no proxy to accept the settlement on his behalf.
3. If the debt is disputable litigious
4. If there are serious reasons for which it is impossible to take the
procedures of a real offer for the debtor before carrying out the
procedure or the alternative procedure.
Article 367
If the debtor offers to settle the debt and his offer is followed by a
deposit or a similar procedure, he may retract his offer as long as the
creditor has not accepted it, or a final ruling validating it has not been
pronounced. If he goes back on his offer, neither his partners in the
debt shall nor shall his guarantors shall be discharged and the
guarantees by which the debt is secured shall not abate.

If the debtor goes back on his offer to pay the debt after the creditor
accepts it, or after a final ruling validating it is passed and the creditor
accepts his retraction, this creditor shall not thereafter plead the
securities that were guaranteeing his rights, and neither his partners
nor his guarantors shall be discharged.
Article 368
If the object of settlement is defined by itself and should have be
delivered at the place where it exists, the debtor may, after serving a
warning on the creditor to receive it, obtain a judicial authorization to
deposit it. If such object is realty or something prepared to stay where
it exists, the debtor may ask for placing it under custody.
Article 369
If the object of settlement gets damaged quickly or shall cost
exorbitant expenses if deposited or placed under custody, the debtor
may, after obtaining the judges permission or without obtaining such
permission if necessary, sell such object at its known price on the
market, or, if impossible, by public auction. Depositing the price shall
stand for the deposit of the object itself.
Section II Object of Settlement
Article 370
Settlement shall be made with the due object. The creditor shall not be
forced to accept another object even if such object is equivalent to it
in value, or higher in value.
Article 371
The debtor may not force the creditor to accept a partial settlement of
his claim, unless there is an agreement or a provision to the contrary.
2. If the debt is partially litigious and the creditor accepts to receive
settlement of the recognized part, the debtor may not refuse to make
the settlement of that part.
Article 372

If the debtor is obliged to pay together with the debt expenses and
delay interests and the part he has paid does not fulfil the debt with,
the amount he has paid shall be deducted from the expenses,
compensations and the original debt respectively unless otherwise
agreed.
Article 373
If the debtor is indebted by several debts that are due to the same
credits and of the same genre and the settlement made by the debtor
does not fulfil such debts entirely, the debtor may specify at the time
of settlement the debt he desires to fulfil, unless a legal or consensual
impediment prevents him from such specification.
Article 374
If the debt settled is not specified as defined in the previous article,
deduction shall be made from the account of the debt that falls due for
settlement. If multiple debts fall due for settlement, deduction shall be
made from the account of the debt that costs the debtor most. If the
debts are of an equal cost, deduction shall be made from the debt
account to be defined by the creditor
Article 375
Settlement shall be made immediately once the debtor's obligation
finally accrues, unless there is an agreement or a provision to the
contrary.
However, the judge may in exceptional cases unless prevented by a
legal provision respite the debtor till a reasonable term, or allow him
to pay the debt in installments if so required by his condition without
causing serious damage to the creditor.
Article 376
If the object of the obligation is defined by itself, it shall be delivered
at the place where it exists at the time the obligation ensues.
In respect of other obligations, settlement shall be made at the place
where the debtors domicile exists at the time of settlement, or the

place where the head office of the debtor's business is located if the
obligation is connected with such business.
All unless otherwise required by an agreement, the law or the nature
of the obligation.
Article 377
The debtor shall be liable for the costs incurred for the settlement
unless otherwise required by an agreement, law or usage.
Article 378
1. A person settling part of the debt may request an acquittance for the
part he has settled along with an annotation on the debt instrument
confirming such settlement. If he settles the whole debt, he shall then
ask for returning or canceling the debt instrument. If this document is
lost, he shall ask the creditor to declare in writing that the document
has been lost.
2. If the creditor refuses the requirement imposed by the previous
clause, the debtor may deposit the object due for settlement as
required by the law.
Chapter II Termination of Obligation by Valuable
Consideration
Section I Settlement with Agreed Consideration
Article 379
If the debtor accepts another consideration for settlement of his claim
than the due one, such consideration shall stand for settlement.
Article 380
1. Settlement with consideration if by transferring the ownership of an
object shall be governed by the provisions of sale especially those
connected with the legal competence of the contracting parties, the
debt maturity guarantee, and hidden flaw guarantee.
2. The provisions of settlement shall apply to settlement with
consideration if such settlement concerns the termination of debt,

particularly those connected with defining the debt settled and the
extinction of security deposits.
Section II Novation
Article 381
An obligation shall be renewed:
1. By changing the debt if the two parties agree on replacing the
original obligation by a new obligation different in its object or
source.
2. By changing the debtor if the creditor agrees with an alien to
become a debtor in place of the original debtor, providing the
obligation of the original debtor shall be cleared without need for his
consent, or if the debtor obtains the creditor's acceptance of an alien
person before the latter becomes the new debtor.
3. By changing the creditor, if the creditor, the debtor, and an alien
person agree that this alien shall become the new creditor.
Article 382
Renewal shall not take place unless the old and new obligations have
each been clear of invalidation factors.
However, if the old obligation results from a contract liable to
nullification, renewal shall not be valid unless the new obligation is
meant to validate and replace the contract.
Article 383
Renewal is not presumable; it shall be explicitly agreed upon, or shall
be vividly deduced from conditions.
In particular, renewal shall not be inferred from drawing up an
instrument of a debt that existed before, or from a change occurring in
the obligation, involving only the time, place and mode of settlement,
or even from a change in the obligation affecting the security deposits
only unless otherwise prescribed by agreement.

Article 384
If the original debt is secured by real security deposits submitted by
the debtor, agreement on transferring such security deposits to the
new obligation shall observe the following provisions:
If the renewal covers the change of the debt, the creditor and the
debtor may agree on transferring the security deposits to the new
obligation within the limits that cause no harm to third parties.
If the renewal covers the change of the debtor, the creditor and the
new debtor may agree on fulfilling the in kind security deposits,
without need for the consent of the original debtor.
If the renewal covers the change of the creditor, all the three
contracting parties shall agree on retaining the security deposits.
2. In all cases, the agreement on transferring the real security deposits
shall not be valid vis--vis third parties unless it takes place at the
time of agreeing on the renewal subject to the provisions concerning
registration.
Article 385
The in kind or personal guarantee, or the solidarity in debt shall not be
transferred to the new obligation unless the guarantors and joint
debtors consent thereto.
Article 386
Neither the in kind or personal guarantee nor solidarity in debt shall
be transferred to the new obligation unless the guarantors and joint
debtors consent thereto.
Section III Delegation for Settlement
Article 387
Delegation shall take place if the debtor obtains the creditor's
acceptance for an alien person to be bound to settle the debt in lieu of
the debtor.

2. Delegation shall not necessitate the existence of a previous

indebtedness between the debtor and the alien person.
Article 388
If in the delegation for settlement the contracting parties agree on
substituting the obligation of the delegatee by that of the delegator,
such delegation shall be a renewal of the obligation by changing the
debtor. The renewal shall result in clearing the obligations of the
delegator vis--vis the person he is delegated to provided that the
delegatee is not insolvent at the time of delegation.
2. However, renewal is not presumable in respect of delegation. If
there is no agreement on renewal, the new obligation shall stand
alongside the first obligation.
Article 389
The obligation of the delegatee toward the person he is delegated to
shall be valid, even though his obligation vis--vis the delegator is
invalid subject to rebuttal and nothing is left for the delegatee except
the right of recourse against the delegator, unless otherwise agreed.
Section IV Debt Clearance
Article 390
The debtor shall have the right of clearance between what is due by
him to his creditor, and what is due to him from that creditor even
though the cause of the two debts differs if the subject of each of debt
is money or fungibles or of the same quality and quantity and each of
them is not litigious and due for payment and valid for claim in courts.
Clearance shall not be prevented by delaying the date of settlement for
a period granted by the judge or awarded by the creditor.
Article 391
Clearance may take place even if even if the place of settlement
differs in the two debts. However, the party who insists on clearance
shall compensate the other party fro the damage caused to him due to

his inability because of the clearance to receive settlement of his

claims or fulfill his debt at the place defined for such purpose.
Article 392
Clearance in debts, whatever their source, shall take place except in
the following cases:
If the object of either debt is to return something unrightfully usurped
from its owner.
If the object of either debt is to return something deposited or lent.
If the object of either debt is a non-distrainable claim.
If the object of either debt is maintenance debt.
Article 393
Clearance shall not take place unless insisted on by the party having
an interest therein, in which case it may not be waived before
establishing the right thereto.
Clearance shall result in extinguishing the two debts to the extent of
the lower one from the time they become valid for clearance.
If the debtor is indebted by several debts, the place of payment, in
clearance, shall be determined in the same way it is determined in
debt settlement.
Article 394
If the limitation period has lapsed for the debt at the time of insistence
on clearance, this shall not prevent clearance from taking place
despite the insistence on limitation, as long as this period has not been
completed when clearance became possible.
Article 395
Clearance may not take place in a way detrimental to the rights of
third parties.
If a third party levies a garnishment with the debtor, then the debtor
becomes creditor of his creditor by a debt valid for clearance, he shall
not insist on clearance in a way harmful to the garnisher.

Article 396
If the creditor assigns his right to a third party and the debtor accepts
this transfer unreservedly, this debtor shall not cling, vis--vis the
assignee, to the right of clearance which he could use before accepting
the transference, and he may claim his right from the assignor only.
2. If the debtor has not accepted the assignment but was notified of it,
such transference shall not prevent him from insisting on clearance
except if it proved after the notification of the transference that the
debt with which he wants to set off the debt is due from the transferor.
Article 397
If the debtor settles a debt, while having the right to ask for clearance
to fulfill one of his claims, he may not hold fast to the security
deposits warranting his claim in a way prejudicial to third parties,
unless he has been ignoring the existence of such right.
Section V Combined Obligations
Article 398
If one person combines the capacities of the creditor and debtor in
respect of the same debt, this debt shall terminate to the extent the
obligations combine therein.
Article 399
If the reason that led to combining the obligations disappears with a
retroactive effect, the debt shall exist again with its ancillaries in
respect of all parties concerned and the combination of obligations
shall be considered as if it had never existed.
Chapter III Termination of Obligation without Settlement
Section I Remittal of Debt
Article 400
1. An obligation shall abate if the creditor remits his debtor of his
debt. Remittal shall take place once the debtor learns of it, and shall
revert by rejection.

2. Rejection shall result in restituting the obligation including its

attributes, securities and rebuttals.
Article 401
Remittal of debt shall be governed by the provisions applicable to
donation. It shall not require a particular form, even if it involves an
obligation that requires for its establishment the fulfillment of a form
imposed by the law or agreed by the two contracting parties.
Section II Impossibility of Fulfillment
Article 402
An obligation shall terminate if the debtor establishes that it has
become for him to settle it for an extraneous reason beyond his
control.
Section III Prescription
Article 403
Actions for claiming personal rights shall prescribe with the lapse of
fifteen years save the cases where the law sets another prescription
period and the cases stipulated in the following articles.
Article 404
Actions for claiming any renewable periodical right such as the rental
of buildings and agricultural lands, salaries, wages, fixed revenues and
pensions shall prescribe with the lapse of five years.
Actions for claiming a yield due from an ill-intentioned holder, as
well as the yield due for payment to beneficiaries by the trustee of an
endowment shall not prescribe except with the lapse of fifteen years.
Article 405
Actions for claiming the rights of physicians, pharmacies, lawyers,
engineers, experts, bankruptcy administrators, brokers, teachers and
other practitioners of free profession shall prescribe with the lapse of
five years, providing such rights and are due to them in return for
performing jobs duties or the expenses incurred by them

Article 406
Actions for claiming taxes and dues payable to the state shall
prescribe with the lapse of five years. The prescription period for
annual taxes and dues shall take effect from the end of the year they
are payable for, and form, for the dues payable on judiciary papers,
the closing date of pleadings in the action for which these papers were
drawn up, or from the date of drawing them up if no pleadings have
taken place.
The above provision shall also apply if the action is for claiming the
refund of taxes or dues unduly paid. The period of prescription shall
take effect from the day such taxes or dues are paid.
The foregoing provisions shall not derogate the provisions prescribed
in any special laws.
Article 407
Actions shall prescribe with the lapse of one year if the claim
concerns one of the following rights:
A.
The rights of merchants and manufacturers for objects they
supplied to persons not trading in them, and the rights of hotel and
restaurant owners for stay charges, the price of meals, and all
expenses they spent for account of their clients.
B.
The rights of workers, servants, and persons receiving daily
and non-daily wages and the prices of supplies delivered by them to
their masters.
A person who insists on the prescription of the action in accordance
with this article shall take the oath that he has actually paid the debt. If
he is a successor or legal representative of the debtor or his
successors, he shall swear that he is unaware of the existence of the
debt or the settlement. The court shall ask for this oath at its own
discretion.

Article 408
1. The prescription period in respect of the rights stipulated in
Articels 405 and 407 take effect from the time creditors complete their
offers, even if they continue to submit other offers.
2. If a document is drawn up in acknowledgement of one of these
rights, this right shall not lapse by prescription except with the lapse
of fifteen years.
Article 409
The prescription period shall be calculated by days and not by hours.
The first day shall not be counted, and the period shall be complete
upon the lapse of the last day of it unless it falls on a public holiday,
in which case it shall be extended to the first working day thereafter.
Article 410
The prescription period shall take effect only from the day the debt
becomes due for payment unless otherwise stipulated by the law.
The said period shall take effect with regard to a debt dependent on a
suspensive condition only from the time this condition is realized, and
from, with regard to guaranteeing the relevant maturity, the time such
maturity is established. With respect to differed debts, the prescription
period shall take effect only from the time the time limit expires.
If determining a time limit for settlement depends on the will of the
creditor, the prescription period shall inure from the time the creditor
is able to announce his will.
Article 411
The prescription period shall not insure whenever an impediment
makes it impossible for the creditor to claim his right, even though
such impediment is moral. It shall not inure either between the
principle and his representative.
2. Lack of legal capacity of the creditor or his absence or sentencing
him to a criminal penalty shall be considered an impediment that
precludes claiming the right if the creditor has no legal representative.

Article 412
If there exists a reason discontinuing the validity of the prescription
period decided for some of the creditors successors, such period shall
not cease for the other successors.
Article 413
The prescription period shall be interrupted by a judiciary claim, even
though the case is brought before a court of incompetent jurisdiction.
The period shall be also interrupted by serving an executive writ,
levying an attachment or if the creditor requests accepting his claim in
a bankruptcy or a distribution, and any other act the creditor performs
to maintain his right in the course of procedures in an action.
Article 414
The prescription period shall be interrupted if the debtor
acknowledges the right of the creditor implicitly or explicitly.
2. It shall be considered an implicit acknowledgement if the debtor
leaves a property in the creditors possession if the property is
possessorily pawned as security for settlement of his debt, or if the
creditor retains such property based on his right to refrain as security
for settlement of his debt, or if the creditor retains the property based
on his right to refuse to return it pending the settlement of the debt
involved.
Article 415
If a Prescription period is interrupted, a new period of Prescription
shall begin to inure from the time the effect caused by the interruption
is removed. Its period shall be same as the first Prescription period.
2. However, if a res judicata judgment is pronounced for the debt, or if
the debt is one that prescribes with the lapse of five years in
accordance with article 405 or one year in accordance with article 407
and its Prescription period is interrupted by the debtor's
acknowledgement, the new Prescription period shall be fifteen years,
unless the judgement comprises periodical and renewable obligations
that shall not be payable except after issuing the judgement.

Article 416
The Prescription period of the action filed for claiming the right shall
result in terminating the ancillaries of this right even if the
Prescription period prescribed for the action has not expired.
Article 417
1. The court may not decide the prescription of a right at its own
discretion, but upon the request of the debtors, his creditors, or any
person having an interest in it, even if the debtor does not cling to it.
2. Prescription may be invoked in any condition of the case even if
for the first time before the court of appeal.
Article 418
Prescription may not be waived before the right thereto has been
established. It may be agreed that prescription shall occur within a
period different from the one defined by the law.
However, any person having the authority to dispose of his rights may
renounce even implicitly the right to prescription after that right has
been established. However, such renouncement shall not be valid vis-vis the creditors if any damage is caused to them.
Book II: Specific Contracts
Part I: Contracts relating to Ownership
Chapter I: Sale
Subsection I: Sale in General
Article 419
Sale is a contract whereby the vendor binds himself to transfer to the
purchaser the ownership of a thing or any other propriety right in
consideration of a price in money.
Article 420
The sale includes all its accessories and whatever is prepared for its
permanent use, according to the nature of things, local custom and the
intent of the contracting parties.

I: Elements of Sale
Article 421
1. The purchaser must have a sufficient acquaintance with the thing
sold, otherwise he has the right to ask for nullifying the sale.
2. This acquaintance will be deemed sufficient if the contract contains
the description of the thing sold and its essential qualities that allow
for identifying it.
3. The statement in a deed of sale that the purchaser is acquainted with
the thing, deprives him of the right to claim annulment of the sale on
the ground of want of acquaintance with the thing, unless he proves
fraud on the part of the vendor.
4. If the purchaser receives the thing sold without objecting to it
within a reasonable period, this will be deemed acceptance by his part.
Article 422
1. When the sale is made according to sample, the thing sold should
conform to the sample.
2. If the sample deteriorates or perishes while in custody of one of the
contracting parties, even if it was not his fault, it is incumbent upon
that party, whether he is vendor or buyer, to establish that the thing is
or is not in conformity with the sample.
Article 423
1. In a sale upon trial, the purchaser has the option either to accept or
to refuse the thing sold, but the vendor is bound to allow the purchaser
to make the trial. If the purchaser refuses the thing sold, he must give
notice of his refusal within the time agreed or, in the absence of
agreement, within a reasonable time to be fixed by the vendor. When
this time has elapsed the silence of the purchaser who had the
opportunity to try the thing sold, is equivalent to acceptance.
2. A sale upon trial is deemed to have been made subject to a

suspensive condition of acceptance of the thing sold, unless it appears

from the agreement or from the circumstances that the sale was made
subject to a resolutory condition.
Article 424
In a sale made subject to tasting, the purchaser may accept the thing
sold if he sees fit, but he must declare his acceptance within the time
fixed by the agreement or by custom. The sale will be considered
complete only from the date of such declaration.
Article 425
The method of establishing the price may be confined to the
indication of the basis on which the price will be ultimately fixed.
Article 426
1.
Failure to mention the price will not nullify the sale, if it is
found from the agreement or conditions that the contracting parties
intended to deal on the basis of their prevailing price or the market
price.
2.
If the parties agree on the market price as the price of sale, the
price will be the market price at the place and time at which the thing
sold is to be delivered to the purchaser. If there is no market at the
place of delivery, the reference will be the market price at the place
whose prices should be the prevailing prices as required by custom,
unless otherwise agreed.
Article 427
If the price is estimated on the basis of weight, the net weight will be
considered, unless otherwise agreed by the parties or permitted by
usage.
Usage will derermine the toleratble shortage in goods arising from
carriage or otherwise.
Article 428
1.

Sale may be made by murabaha, tawliya, ishrak or wadhiah.

2.
Murabaha is a sale made for the former price seller has paid
plus a definite proft. Tawliya is a sale made for the former price
without increase of decrease. Ishrak is a sale involving part of the
object of sale for part of the price. Wadhiah is a sale for the former
price with a definite reduction.
3.
If it is proved that the price the seller has paid is less than the
price he mentions, the purachser will have the right to insist on the
real price.
4.
Concealment by the seller of the purchase circumstances will
constitute fraud if they are likey to affect the purchasers satisfaction.
II: Effects of Sale
Article 429
When goods are sold in bulk, ownership is transferred to the purchaser
in the same way as ownership of a definite and ascertained thing.
There is sale of goods in bulk even when the amount of the price
depends on the extent, weight or measure of the goods sold being
ascertained.
Article 430
1. In a credit sale the vendor may stipulate that the transfer of
ownership to the purchaser is subject to integral payment of the
price, even if the thing sold has been delivered.
2. If the price is payable by installments, the contracting parties
may agree that the vendor may retain a part of the price by way
of damages should the sale be cancelled for non-payment of all
the installments. The judge may, however, according to
circumstances, reduce the amount of damages agreed.
3. When all the installments have been paid, the transfer of the
ownership of the thing sold shall be deemed to have taken place
as from the date of sale.
4. The provisions of the three preceding paragraphs are applicable
even if the contracting parties have described the contract of
sale as a contract of lease.

Article 431
The purchaser will be entitled to the yield of the object of sale and
shall bear its costs from the time of sale, unless otherwise agreed or
required by usage.
(A) Obligations of Seller
Article 432
The vendor is bound to perform everything necessary to transfer the
right to the thing sold to the purchaser, and to abstain from all acts
that might render this transfer impossible or difficult.
Article 433
The vendor is bound to deliver the thing sold to the purchaser in the
state in which it was at the time of the sale.
Article 434
1.
The seller shall provide the purchaser with all necessary details
on the object of sale and the documents related to it.
2.
If the use of the object of sale requires in particular specific
precautions to be taken, the seller shall notify the purchaser of same,
and draw his attention to the proper method of its use, failing which
he shall be liable to compensation
Article 435
When the quantity of the thing sold is fixed in the contract, the vendor,
subject to any agreement to the contrary, is liable for any deficiency in
such quantity in accordance with custom. The purchaser has not,
however, the right to demand cancellation of the contract by reason of
such deficiency, unless he establishes that the deficiency is so great
that if he had known of it he would not have entered into the contract.
Article 436
1.
If is found that the amount of the object of sale exceeds the
amount fixed in the contract, and the price is estimated on a unit basis,
the excess will go to the seller if the object of sale can be divided,

unless the purchaser decides to take the excess for a corresponding

price. If the object of sale can not be divided, the purchaser shall pay
the price of the excess unless it is huge, or he may rescind the contract.
2.
If the price is estimated as a lumpsum, the purchaser shall be
entitled to the excess, unless it is so huge that the seller would not
have concluded the contract if had been aware of it. In this case, the
purchaser shall have the option to increase the price proptionately
with the excess or rescind the sale.
3.
All this shall apply unless otherwise agreed or permitted by
usage.
Article 437
The action for rescinding the contract, reducing or completing the
price, or returning the excess shall abate upon elapse of one year from
the time of actual delivery of the object of sale.
Article 438
Delivery consists in placing the thing sold at the disposal of the
purchaser in such a way that he can take possession of and enjoy it
without hindrance, even if he does not take effective delivery thereof,
provided the vendor informs him that the thing is at his disposal.
Delivery is effected in accordance with the nature of the thing sold.
Article 439
Delivery may be completed by the mere fact of agreement between
the parties when the thing sold was in possession of the purchaser
prior to the sale or if the vendor retains the thing sold in his possession
after the sale by virtue of some reason other than that of ownership.
Article 440
Delivery shall be made at the time fixed in the contract. If no time is
fixed, the seller shall deliver the object of sale immediately following
conclusion of the contract, having due regard to the periods
necessitated by the nature of the object of sale or required by usage.

Article 441
1.
The object of sale shall be delivered at the place where it exists
at time of conclusion of the contract, unless otherwise agreed.
2.
If the object of sale is a movable, but the place where it exists is
not speicified, it hsall be delivered in the sellers domicile.
Article 442
If the seller undertakes to send the object of sale to a specific place, no
delivery shall be made except if he arrives at this place, unless
otherwise agreed.
Article 443
The seller shall bear the costs of delivery, unless otherwise agreed or
required by usage.
Article 444
If the thing sold perishes before delivery as a result of a cause beyond
the control of the vendor, the sale shall be dissolved and the price
refunded to the purchaser, unless he was summoned to take delivery
before the loss.
Article 445
If the thing sold is partially destroyed or deteriorated before delivery
for a reason beyond the control of the contracting parties, the
purchaser shall have the right to reduce the price to the extent of the
reduction in the value of the thing sold. If the destruction or damage is
so great that the sale would not have taken place if the destruction or
damage had happened before the contract was concluded, he will have
the right to dissolve the sale. The above shall take place if the
destruction or damage occurred before giving notice to the purchaser
to take delivery of the thing sold
Article 446
1. If the thing is destroyed or damaged by an act of the purchaser, he
shall remain liable for payment of the full price thereof.

2. If the destruction or damage is attributed to the vendor, the

purchaser shall have the option either to dissolve the sale or to reduce
the price to the extent in the diminution of the value without prejudice
to his right to claim a compensation if there are grounds therefor.
Article 447
The vendor warrants the purchaser against disturbance in his
enjoyment of the thing sold both totally and partially even if there is
an agreement to the contrary.
Article 448
The vendor warrants the purchaser against disturbance in his
enjoyment of the thing sold both totally and partially if such
disturbance is caused by the act of any third party claiming a right to
the thing sold at the time of the sale enforceable against the purchaser.
Further, the purchaser is bound by his warranty even if the third party
claims that he has acquired a right from the vendor after sale.
Article 449
1. When an action for revendication in respect of the thing sold is
brought against the purchaser, the vendor, upon receipt of
notice of the action, shall, according to the circumstances and in
conformity with the provisions of the Code of Procedure, join
as a co-defendant with the purchaser, or take his place as
defendant in the action.
2. If notice is given in due time, the vendor who has not joined in
the action, is liable under his warranty, unless he proves that the
judgment given in the action is the result of fraud or of gross
negligence on the part of the purchaser.
3. If the purchaser does not notify the vendor of the action brought
against him in due time and is dispossessed by a judgment that
has become final, he shall be deprived of his right of recourse
under the warranty, if the vendor establishes that, had he joined
in the action, he would have succeeded in obtaining the
dismissal of the action for revendication.

Article 450
1. In case of total dispossession, the purchaser may claim from the
vendor and have recourse against him in respect of the value of the
loss sustained and loss of profit because of the dispossession of the
thing sold.
2. However, the vendorso bligation shall be limited to compesnating
the purchaser for the price he has paid if the vendor proves that he was
not aware of the dispossession at the time of sale.
Article 451
1. In case of partial dispossession, or if the thing sold is encumbered
with a lien in favour of a third party, the purchaser, shall if the loss is
of such a nature that had he been aware thereof, he would not have
entered into the contract, return the thing sold and the benefit gained.
2. If the purchaser prefers to retain the thing sold or when the loss
sustained by him does not reach the degree of gravity defined in the
first paragraph, he has only the right to apply for compensation.
3. In both cases, the provision in item (2) of the preceding article shall
be observed.
Article 452
The vendor shall not warrant the purchaser against servitude if it was
disclosed by him at the time of entering into the contract or if this
right is an obvious easement or arising from a legal restriction on
ownership.
Article 253
1. The contracting parties may, by special agreement, increase the
warranty against dispossession, restrict it or stipulate that the sale is
without warranty.
2. A clause that the sale is without warranty or restricting the warranty
against dispossession is null and void if the vendor intentionally
conceals the ground of dispossession.

Article 454
Notwithstanding a clause excluding warranty, a vendor remains liable
for refunding the price and expenses unless he proves that the
purchaser knew at the time of the sale of the ground of dispossession
or that he purchased the thing with the risk of dispossession
Article 455
The vendor shall be liable under his warranty according to the
provisions of Article 451, when, at the time of delivery, the thing sold
has defects diminishing its value or usefulness for the purpose for
which it was intended as shown by the contract or resulting from the
nature or the destined use of the thing. The vendor is answerable for
these defects, even if he was ignorant of their existence.
Article 456
The vendor is not liable for defects which are customarily tolerated.
Article 457
The vendor is not answerable for the defect of which the purchaser
was aware at the time of the sale or which he could have discovered
himself had he examined the thing with the care of an ordinary person,
unless the purchaser proves that the vendor has affirmed to him the
absence of these defects or fraudulently concealed them from him.
Article 458
1. When the purchaser has taken delivery of the thing sold, he shall
ascertain its condition as soon as he is able to do so in accordance
with common custom. If he discovers a defect for which the vendor is
answerable, he must give a reasonable notice thereof to the vendor,
failing which he will be deemed to have accepted the thing sold.
2. In the case, however, of defects that cannot be discovered by means
of normal inspection, the purchaser shall, upon the discovery of the
defect, at once give notice thereof to the vendor, failing which he will
forfeit his right to the warranty.

Article 459
An action on a warranty exists even if the thing sold has perished,
whatever may be the cause.
Article 460
If the purchaser becomes aware of the existence of the defect and then
disposes of the thing sold as would an owner thereof, he shall not have
recourse against the warranty.
Article 461
1. The contracting parties may, by specific agreement, increase,
restrict or abolish the warranty.
2. A clause abolishing or restricting the warranty is void if the vendor
intentionally and fraudulently conceals the defects of the thing sold.
Article 462
1. An action on a warranty is prescribed in one year from the time of
delivery of the thing sold, even if the purchaser discovers the defect
after the expiration of this delay, unless the vendor agrees to be bound
by
the
warranty
for
a
longer
period.
2. The vendor, however, cannot avail himself of the prescription of
one year if it is proved that he has fraudulently concealed the defect
from the purchaser.
Article 463
No warranty exists against defects in the case of a judicial sale or
administrative sale made by auction.
Article 464
If the thing sold does not have at the time of delivery the
characteristics guaranteed by the vendor to the purchaser, the
purchaser may demand cancellation of the sale in addition to
compensation within the limits set forth in item (1) of article (451) or
retain the thing sold while claiming compensation for the damage
sustained because of the lack of such characteristics

Article 465
1. When a vendor has warranted the proper working of the thing sold
for an agreed period of time and then the thing sold develops a defect
within this period, the purchaser shall notify the vendor of such defect
within one month.
2. If the vendor fails to repair the defect, the purchaser may return the
thing sold or retain it while claiming compensation in both cases,
pursuant to the provision of the preceding article.
3. Any action in this regard may be filed within six months from the
date of notification of the defect, failing which the purchaser shall
forfeit his right to claim compensation.
4. All this shall apply unless otherwise agreed.
(B) Obligation of the Purchaser
Article 466
1.
Unless otherwise agreed or required by custom, the price is
payable at the time delivery of the thing sold is made.
2.
When the purchaser is disturbed in his enjoyment by a third
party invoking a right existing prior to the sale or derived from the
vendor, or if he is in danger of being dispossessed of the thing sold, he
may, subject to an agreement to the contrary, retain the price until the
disturbance in his enjoyment or the danger of dispossession has
ceased. The vendor may, however, in such a case, demand payment of
the price upon his supplying security.
3.
The provisions of the preceding paragraph will also apply if the
purchaser has discovered a defect in the thing sold.
Article 467
Unless otherwise agreed or required by custom, the price is payable at
the place where the delivery of the thing sold is made. If the price is

not payable at the time of delivery of the thing sold, payment shall be
made at the domicile of the purchaser on due date
Article 468
If the purchaser fails to pay the price when it becomes due or commits
a breach of the other obligations arising from the sale contract, the
vendor shall have the option between applying for compelling the
purchaser to perform such obligations or seek termination of the sale
contract.
Article 469
When the whole or part of the price is payable immediately, the
vendor, unless he grants the purchaser a delay for payment after the
date of the sale, may retain the thing sold until he obtains payment of
the amount due, even if the purchaser has offered a mortgage or
security.
Article 470
If the thing sold perishes while in possession of the vendor while
exercising his right of retention, the purchaser is liable for the loss
unless the thing sold perishes as a result of an act of the vendor.
Article 471
In the case of a sale of movables, when a term is agreed for payment
of the price and for taking delivery, the vendor shall be entitled to
consider the sale terminated without the need for notice if the
purchaser fails to pay the amount payable of the price on due date
unless there is agreement to the contrary.
Article 472
In the absence of agreement or custom indicating the place and time
of delivery, the purchaser is bound to take delivery of the thing sold at
the place where it was at the time of the sale and to remove it without
delay, subject to the time necessary for such removal.
Article 473

In the absence of an agreement or usage to the contrary, the costs of

the sale contract, registration fees, costs of payment of the price, costs
of delivering the thing sold and such other expenses shall be borne by
the purchaser.
Subsection II: Certain Kinds of Sale
I: Sale with a Right of Redemption
Article 474
When a vendor reserves to himself at the time of the sale the right to
take back the thing sold, within a fixed time, the sale will be void.
II: Sale of a Thing Belonging to Another
Article 475
1. When a person sells a definite thing of which he is not the owner,
the purchaser may demand the annulment of the sale. This rule also
applies when the thing sold is a realty, whether or not the deed thereof
has been registered.
2. In any case, such sale shall not have any effect as against the owner
of the thing sold, even if the purchaser has ratified the contract.
Article 476
1. If the owner ratifies the sale, the contract will become binding on
him and valid as regards the purchaser.
2. The sale will also become valid as regards the purchaser if the
ownership of the thing sold devolves upon the vendor subsequently to
the conclusion of the contract.
3. When the annulment of the sale has been pronounced in court in
favor of a purchaser who was unaware that the thing sold did not
belong to the vendor, he shall be entitled to claim damages even if the
vendor acted in good faith.
III: Sale of Litigious Rights
Article 477

1. If a litigious right is sold, the person who is in dispute with the

vendor shall recover it from its purchaser if he refunds thereto the
price and expenses incurred.
2. A right shall be deemed litigious if a case has been filed in respect
of the issue thereof or the latter is subject to a serious dispute.
3. The right to recovery shall abate upon elapse of two years from the
date the recoverer becomes aware of the sale.
Article 478
The provision of the preceding Article shall not apply in the following
cases:
1. if the litigious right forms part of a group of properties sold in bulk
for a single price;
2. if the litigious right is indivisible amongst several heirs or coowners and one sells his share to another;
3. if a debtor has assigned to his creditor the litigious right in payment
of his debt;
4. if the litigious right is a right burdening an immovable and such
right is sold to a third party in possession of the immovable.
Article 479
No judge, public prosecution member, lawyer, court clerk, or
enforcement commissioner may purchase, even under an
intermediarys name any litigious rights, or the contract shall be void.
IV: Sale by a Representative to Himself
Article 480
1. Without prejudice to the provisions of other laws, it is not
permissible for any person representing another under a provision of
law, agreement or order of a competent authority to purchase, either in
his own name or in the name of an intermediary, even by public
auction, property entrusted to him for sale in his representative
capacity, unless he has been authorized to do so by permission of the
court.

2. The contract shall be valid if ratified by the person for whom the
sale is made.
Article 481
1. No broker or expert may purchase, in his name or in the name of an
intermediary, goods which he has been entrusted to sell or to appraise,
or exercise expertise in respect thereof.
2. The sale shall be valid in these cases if ratified by the person for
whom it is made.
V: Sale of Inheritance
Article 482
A person who sells an inheritance without giving particulars thereof
only warrants that he is an heir, unless otherwise agreed.
Article 483
In the sale of an inheritance, the transfer of rights comprised therein
will have no effect as regards third parties, unless the necessary
formalities for the transfer of each of these rights have been fulfilled.
If the law provides for specific formalities for the transfer of these
rights between the parties, such formalities should also be fulfilled.
Article 484
The vendor, if he has received debts or sold any of the property
forming part of the inheritance, must reimburse the purchaser up to
the amount he has received, unless the contract of sale provides for
non-reimbursement.
Article 485
The purchaser must reimburse the vendor whatever he may have paid
in respect of the debts of the inheritance and pay him anything that is
due to him by the estate, subject to any agreement to the contrary.
VI: Sale Made During a Person's Last Illness

Article 486
1. A sale made by a person during his last illness, to an heir or to a
person who is not an heir, at a price inferior to the value of the thing
sold at the time of his death, is valid against the heirs if the difference
between the value of the thing sold and the price paid does not exceed
one third of the value of the inheritance, including the thing sold.
2. If this difference exceeds one third of the value of the inheritance,
the sale is only valid against the heirs with regard to the excess over
one third of the value, if the heirs ratify the sale or if the purchaser
pays to the estate the amount necessary to make up the two thirds.
3. The provisions of Article (1014) apply to a sale made a during a
person's last illness.
Article 487
The provisions of the preceding articles do not apply to the prejudice
of a third party acting in good faith who has acquired for valuable
consideration a right in rem over the property sold.
Chapter II: Barter
Article 488
Barter is a contract by which the contracting parties mutually bind
themselves to transfer to the other by way of exchange the ownership
of a thing other than money.
Article 489
If the values of the two bartered items are different in the estimation
of the contracting parties, the difference may be compensated by the
payment of an equivalent sum of money.
Article 490
Barter shall be subject to the provisions of sale to the extent allowed
by the nature of barter and each of the contracting parties shall be
deemed as a vendor of the thing given by him in exchange and the
purchaser of the thing received in exchange

Article 491
In the absence of an agreement to the contrary, the expenses of a
barter contract and incidental expenses shall be borne by the parties in
equal shares.
Chapter III: Gift
Article 492
1. A gift is the passing of property or a right in property to another
person during the period of the lifetime of the owner, without
consideration.
2. It is permissible for the donor, while still intending to make a gift,
to make it a condition that the donee should perform a specified
obligation, and such obligation shall be regarded as consideration.
I: Elements of Gift
Article 493
1. A gift shall be concluded upon acceptance and offer, and shall be
deemed perfected upon receipt.
2. Mere offer shall be sufficient for a gift if the donor is the guardian
or protector of the donee and the property given is in his possession,
and the same shall apply notwithstanding that the donee is a minor of
whom the donor has charge of the upbringing.
3. The effect of a gift contract shall be dependant on any procedure
on which laws suspend the transfer of ownership, and the parties to
the contract may complete the necessary procedures.
Article 494
No gift in respect of prospective property shall be valid.
Article 495
A contract of gift shall not be effective if the property given is not
owned by the donor, unless affirmed by the owner, and receipt is
taken by his consent
Article 496

A gift involving common property shall be permissible even if such

property is divisible.
Article 497
Terminal death gifts shall be subject to the provisions of wills.
II: Effects of Gift
(A) Obligations of the Donor
Article 498
1.
The donor shall deliver the thing donated if it has not been
received by the donee. This shall be subject to the provisions relating
to the delivery of the objects of sale.
2.
If the thing donated before delivery or is changes or undergoes
shortage, the donor shall be liable only for his intentional act or
serious fault.
Article 499
The donor shall guarantee the exposure arising from his act only, and
the maturity of the thing donated except if he intentionally conceals
the reason for maturity, or if the gift is coupled with an entrustment,
unless otherwise required by law or an agreement.
Article 500
1.
If the date of maturity of the thing donated falls and the donor
intentionally conceals the reason for maturity, the judge may award
the donee fair compensation.
2.
If the gift is coupled with an entrustment, the donor shall be
liable for guaranteeing maturity only within the limits of the amount
discharged by the donee of such entrustment. The donee shall replace
the donor in rights and actions.
Article 501
The donor does not warrant that the thing donated is free of defects,
unless otherwise agreed, or if the donor has intentionally hidden a
defect. In this case, he shall be liable for compensating the donee for

the damage caused by this defect. He shall also be liable for

compensation if the gift is coupled with an entrustment, in which case
the compensation shall not however exceed the amount paid by the
donee of such entrustment.
(B) Obligations of the Donee
Article 502
The donee shall perform any entrustment imposed upon him by the
contract, whether such entrustment is conditional for the donors
interest, a third partys interest, or public interest.
Article 503
If it appears that the value of the thing donated at the time of making
the gift is less than that of the entrustment it is coupled with and the
donee is aware of same, he shall be bound to perform the entrustment
only within the limits of the value of the thing donated.
Article 504
1. If the gift is coupled with entrusting the donee to pay the
donors debts, he shall be bound to pay only the debts existing
at the time of making the gift, unless otherwise agreed.
2. If the thing donated is burdened with a right in rem securing a
debt due by the donor or by a third party, the donee shall be
liable, unless otherwise agreed, to pay this debt.

III: Recovery of Gift

Article 505
1.
The donor may not recover his gift except if the donee so agrees,
or the gift involves something donated by parents to their child.
2.
However, a gift may be recovered with judicial permission if
the donor invokes an acceptable excuse.

3.

In all cases, articles 507 and 508 shall be observed.

Article 506

The following shall, in particular, be deemed as acceptable excuses

for
recovering
a
gift:
1. that the donee has failed in his duties towards the donor or one of
his relatives, and such failure constitutes serious ingratitude on his
part;
2. that the donor has become unable to maintain himself in
accordance with his social position or to meet an obligation to pay
alimony which he is legally bound to pay to another person;
3. that the donor has, after making the gift, a child who remains alive
till the time of revocation, or if the donor has a child who, having been
believed to be dead, turns out to be alive.
Article 507
Recovering a gift shall be impermissible in the following cases:
1.
if the gift is made by a mother whose child is an orphan at the
time of revocation.
2.
if the gift is made by one spouse to the other as long as their
conjugal relation is existent.
3.

if the donor or the donee dies.

4.
if the donee disposes, on a final basis, of the thing donated in
such a way that he losses the possession thereof. If the disposition is
limited to part of the thing donated, the donar may retract the
remainder.
5.
if the thing donated gets destroyed or lost while in the donees
possession, whether such destruction or loss occurs due his act, or due
to a cause beyond his control, or because of use. In case of partial
destruction or loss, the donor may retract the remainder.
6.
if the thing donated undergoes a change that makes it abnormal
or undergoes an increase entailing its value to be increased. If the
impediment ceases, the right of revocation shall accrue again.

7.
if the gift is coupled with an encumberance that has been
enforced.
8.

if the gift is for a charitable purpose.

Article 508

Apart from the revocation impediments provided in the preceding

article, parents may not recover the gift made for their child in the
following cases:
1. if the donee effects a transaction with a third party as a result of
the gift, and the revocation of the gift would cause harm to the donee
or to the third party; or
2. if the donee or the donor is affected by a disease that may cause
death. If this disease disappears, the right of revocation shall accrue
again.
Article 509
If the donee deliberately and unjustifiably kills the donor, his heirs
shall have a right to annul the gift.
Article 510
1.
Without prejudice to the rules of registration, recovering a thing
donated shall result in returning it to the donors possession from the
time of completion of revocation.
2.
The donee is only liable for returning the yields only as from
the date of agreement on revocation or from the date of
commencement of legal proceedings. He also has the right to claim
repayment of all necessary expenses that he has incurred and also of
sums usefully spent by him but only up to the amount of any increase
in value of the thing donated.
Article 511
1. If, without consent of the donee or without a decision of the
court, the donor takes back the thing donated, he shall be
responsible to the donee for the loss of that thing whether such

loss occurs from his act, from a cause beyond his control which
is not attributable to him or as a result of the use of the thing.
2. If a judgement recovering the gift is passed and the thing
donated perishes while in the possession of the donee, after he
has been warned to hand it back, the donee shall be responsible
for the loss even if it results from a cause beyond his control.
Article 512
Unless otherwise agreed, the expenses of the gift shall be borne by the
donee while the expenses of recovery shall be borne by the donor.
Chapter IV: Company
Article 513
A company is a contract by which two or more persons undertake to
contribute jointly to an undertaking of a pecuniary nature by the
provision of contributions of property or business, with the object of
sharing in the profits or losses of the undertaking.
Article 514
1. A company is deemed, by the fact of its constitution, to be a
juristic person; such juristic personality is however acquired, as
regards third parties, only upon completion of the formalities of
publication required by law.
2. Third parties may, however, if the company has not completed
the prescribed formalities of publication, avail themselves of
the juristic personality of the company.
I: Elements of the Company
Article 515
1. A company deed must be in writing under pain of nullity. All
modifications to the company deed are also void if they are not
executed in the same form as the deed.

2. Such nullity cannot, however, be pleaded by the partners

against third parties and has no effect on the relationship of the
partners between themselves until a demand for such nullity has
been made in court by one of the partners.
Article 516
In the absence of agreement or custom to the contrary, the
contributions of the partners are presumed to be equal and to consist
of the ownership of the property brought in and not merely of its
enjoyment.
Article 517
The influence or the credit of a partner cannot alone constitute his
contribution.
Article 518
A partner who has undertaken to contribute a sum of money against
his share in the company but fails to pay this sum may be demanded
by the company to compsensate it for the damage it suffers due to his
late fulfillment, besides fulfilling his obligation.
Article 519
1. If the contribution of a partner consists of a right of ownership, of a
usufruct, or of any other real right, the provisions as to sale shall apply
as regards warranties against loss, dispossession, hidden defects or
deficiencies.
2. If, however, the contribution consists merely of the use of the
property, the provisions as to lease apply as regards the above
warranties.
Article 520
1.

If the contribution of a partner consists of his services, he

shall carry out the services he has undertaken to perform and
render an account of the profits realized from the date of the
formation of the company as a result of the services he has
undertaken as his contribution.

2.

In the absence of an agreement to the contrary, he is not

bound, however, to contribute to the company patents which
he has obtained.
Article 513

If the contribution of a partner consists of debts due by third parties,

his obligation to the company is only extinguished by the recovery of
these debts. He is also liable for damages if the debts are not paid
when they fall due.
Article 522
1. Profits shall be allocated to partners as set forth in the
parternship deed. If the deed contains no agreement in this
regard, they shall be allocated according to their respective
contributions in the capital of the company.
2. Losses shall be shared by partners according to their respective
contributions in the capital of the company. Any agreement to
the contrary shall be void.
3. If the contribution of one of the partners consists only of his
services, his share in the profits and the losses is estimated in
accordance with the profits that the company realizes as a result
of his services. If, in addition to his services, a partner has made
a contribution in money or in kind, he will be entitled to a share
in respect of his services and another share in respect of the
contribution he has made in addition to his services.

Article 523
If it is agreed that one of the partners shall not participate in the profits
or losses of the company, the company deed shall be void.
II: Company Management
Article 524

1. A partner entrusted with the management of the company by a

special clause in the company deed is entitled, notwithstanding
objections by the other partners, to perform acts of management
and acts of disposition coming within the objects of the
company, provided that these administrative acts and acts of
disposition are not tainted with fraud. Such partner cannot,
without legitimate reason, be discharged from his post as
managing partner so long as the company exists.
2. If the appointment of a managing partner is made subsequent to
the company deed, such an appointment may be revoked in the
same manner as an ordinary mandate.
3. Managers who are not partners may be discharged at any time.
Article 525
1. When several partners are entrusted with the management of
the company without their respective attributions being defined
and it is not provided that anyone of them cannot act alone,
each partner may separately perform any act of management,
subject to the right which each of the other managing partners
has to object to such an act before it has been completed, and to
the right of the majority of the managing partners to override
such an objection; in the case of equal voting by the managing
partners, the rights to override the objection belongs to the
majority of all the partners.
2. If it is provided that decisions of managing partners shall be
taken unanimously or by a majority, such a provision cannot be
departed from, except in the case of an urgent matter in which
failure to take action would involve the company in serious and
irreparable loss.
Article 526
When a decision must be taken by the majority, it will, in the absence
of an agreement to the contrary, be decided by the numerical majority.

Article 527
Partners who are not managing partners are excluded from the
management. They are entitled, however, personally to examine the
books and documents of the company. Any agreement to the contrary
is void.
Article 528
In the absence of any special provisions as to the form of management,
each partner is deemed to have been authorized by the other partners
to manage the company, and may carry out the management without
consulting the other partners, subject to the right of such other
partners or of anyone of them to object to any act of management
before it has been finally completed and to the right of the majority of
the partners to override such objection.
III: Effects of Company
Article 529
1. Each partner shall watch over the interests of the company as if
they were his own, unless he has been appointed a manager on
remuneration, in which case he shall not exercise less care than would
a prudent man.
2. Each partner shall also abstain from any activity prejudicial to the
interests of the company or contrary to the object for which the
company was formed.
Article 530
1. No partner may take or retain for himself a sum of money
belonging to the company, failing which he shall be liable for
indemnifying the company for any consequential damage.
2. A partner who advances money to the company from his private
funds or incurs in good faith and with prudence useful expenses for
the benefit and on behalf of the company, is entitled to be indemnified
by the company for any consequential damage.
3. No prior notice shall be required for deserving the indemnity in
both cases

Article 531
If the assets of the company do not cover its debts, the partners shall,
in the absence of an agreement providing for another division, be
liable for these debts from their own property, each in proportion to
his share in the losses of the company. Any agreement relieving a
partner from liability in respect of the company's debts is void.
Article 532
1. In the absence of an agreement to the contrary, the partners are
not jointly and severally liable as regards their respective shares
in the debts of the company.
2. If, however, one of the partners becomes insolvent, his share in
the debts of the company is apportioned among all the others in
proportion to their respective shares in the losses.
Article 533
Personal creditors of a partner cannot, during the continuance of a
company, obtain payment of their claims out of such partner's share in
the capital but only out of his share in the profits. Such creditors may,
upon liquidation of the company, enforce their rights on their debtor's
share in the company assets after payment of the company debts, and
may, before the liquidation of the company, make a protective
attachment (saisic conservatoire) on his share.

IV: Termination of Company

Article 534
1. A company comes to an end upon the expiration of its term or
by the achievement of the object for which it was formed.

2. If, notwithstanding the expiration of the term or the

achievement of the object for which the company was formed,
the partners continue to carry on work of the same nature as that
for which the company was formed, the company deed is
extended from year to year on the same conditions.
3. A creditor of a partner may oppose this extension. His
opposition will suspend the effect of the extension of the
company so far as such creditor is concerned.
Article 535
1. A company comes to an end upon the total loss of its capital or
upon its partial loss to such an extent as to render the
continuation of the company useless.
2. If one of the partners has undertaken to contribute by way of a
definite and specific thing which perishes before it is brought
into the company, the company is dissolved as regards all
partners.
Article 536
1. A company is terminated by the death, interdiction, insolvency
or bankruptcy of one of the partners.
2. It may be agreed, however, that in the event of the death of one
partner, the company will continue with his heirs, even if they
are minors.
3. It may also be agreed that, in case of death, interdiction,
insolvency, bankruptcy or retirement of one of the partners in
accordance with the provisions of the following article, the
company will continue between the other partners. In such a
case, such partner or his heirs will only be entitled to his share
in the assets of the company. This share will be estimated in
accordance with its value at the date of the event, which
resulted in the partner ceasing to be a partner, and must be paid
in money. Such partner will share in subsequent rights only to

the extent that such rights arise from operations prior to the
event which resulted in his ceasing to be a partner.
Article 537
1. A company comes to an end by the retirement of one of the partners
when its duration has not been fixed, provided that such partner gives
previous notice to his other co-partners of his intention to retire and
that his retirement is free of fraudulent intent and not at an unsuitable
time.
2. It comes to an end also by the unanimous agreement of the partners.
Article 538
1. The court may, on the demand of any one of the partners, order
the dissolution of a company for non-performance by a partner
of his obligations, or for any other reason not attributable to the
partners; the judge will decide whether such reason is
sufficiently serious to justify dissolution.
2. Any agreement to the contrary is void.
Article 539
1. A partner may apply to the court for the exclusion of any one for
the partners whose presence in the company has given rise to
objections to the extension of the duration of the company, or
whose actions might be held to provide good grounds for the
dissolution of the company, while the company continues between
the other partners.
2. A partner may also, if the duration of the company is fixed, apply
to the court to authorize his retirement from the company if he
gives adequate reasons for his application. In such case, unless the
other partners agree to continue the company, it will be dissolved.
3. In the above two cases, the provisions of item (3) of article (536)
shall apply to the share of the removed or withdrawing partner, and
this share shall be estimated according to its value on the date of
commencement of an action.
V: Liquidation and Partition of the Company Property:

Article 540
The liquidation and the partition of the company property is carried
out in the manner laid down by the company deed. When the
company deed is silent, the following provisions will be applied:
Article 541
The powers of the managers shall cease upon the dissolution of the
company, but the juristic personality of the company shall continue, in
so far as is necessary, for and up to the end of the liquidation.
Article 542
1. The liquidation will be carried out either by all the partners or
by one or more liquidators appointed by the majority of the
partners, as the case may be.
2. If the partners do not agree on the appointment of a liquidator,
such liquidator will, upon the application of one of the partners,
be appointed by the judge.
3. In case of nullity of company, the court will appoint a liquidator
and will decide upon the method of liquidation upon the
application of any interested party.
4. Until a liquidator is appointed, the managing partners shall be
deemed, as far as third parties are concerned, to be the
liquidators.

Article 543
1. The liquidator shall carry out all the acts of liquidation
including taking an inventory of the assets of the company,
getting in its rights, paying its debts, and selling its assets until
the property is ready for distribution, having regard in all of the
foregoing to the restrictions laid down in the order appointing
him.

2. He may not do any act not required by the liquidation or start

on new business of the company except if it is necessary for
completing previous business.
Article 544
The company assets are divided between all the partners after
payment of the creditors, deduction of amounts required to
cover debts that have not fallen due or are subject to litigation
and repayment of disbursements or loans that may have been
made by one of the partners for the benefit of the company.
Each partner shall take a sum equal to the value of his contribution
to the capital of the company, as recorded in the company deed,
or, if not recorded in the company deed, at its value at the time
the contribution was brought to the company, unless he has
only contributed his services, the usufruct or the mere use of the
thing that he has brought to the company.
The balance, if any, will be distributed between the partners
proportionally to each partner's share in the profits.
If the company assets are not sufficient to cover the repayment of
the partners' contributions, the loss is shared among the partners
according to their respective shares in the capital.
Article 545
The rules laid down with reference to the partition of property held in
common, apply to partitions between partners.
Certain Types of Companies
I: Business Companies
Article 546
A business company is a contract whereby two or more persons
accept work from a third party and undertake to perform it for a price
and share any resulting profit and loss.

Article 547
Partners shall be jointly liable for performing the work any of them
accepts, and any of them may receive the price from the work owner.
Article 548
A partner who accepts the work may assign it to another partner or a
third party, unless the work owner requires him to perform in person.
Article 549
Profit shall be allocated to partners according to the percentage agreed
in the company contract, regardless of the type or amount of the work
performed by each partner. Profits shall be payable even if a partner is
prevented from participating in the work.
Article 550
Losses shall be shared by partners according to the portion of work
undertaken by each of them.
II: Speculative Venture Company
Article 551
A speculative venture partnership is a contract whereby two or more
persons agree to purchase property on credit in accordance with the
standing each of them has, then to sell it, and to participate in the
profits and losses.
Article 552
The partners shall be liable for the price of the property purchased
each according to his share in it, whether they carry out the purchase
jointly or singly. A partner who pays his share shall have the right of
recourse against the other partners according to their respective
shares.
Article 553
Profits and losses shall be shared by partners according to their
respective shares in the purchased property. Any agreement to the
contrary shall be void.

III: Mudaraba Company

Article 554
A Mudaraba contract is a contract whereby the person owning
property puts in the capital, and the mudarib puts in effort or work,
with a view to making a profit.
Article 555
Both of the capital owner and the mudarib must be legally competent.
Article 556
A Mudaraba may be absolute or limited by time, a place, a type of
business, or by any other condition.
Article 557
If a Mudaraba is absolute, the mudarib may perform all acts and deeds
required by the nature of investment according to prevailing custom.
Article 558
If a Mudaraba is limited, the mudarib must observe the conditions
agreed, failing which he shall be liable for the loss of the Mudaraba
capital, and compensating the capital owner for any damage he suffers
as a result.
Article 559
1.
No mudarib may mix a Mudaraba capital with his own capital
or give to a third party for a Mudaraba, unless this is permitted by
custom, or is authorized to handle the Mudaraba matters as he deems
fit.
2.
In no case, may the mudarib donate or lend the Mudaraba
capital or borrow to such an extent increasing debt above the capital,
without the permission of the capital owner.
Article 560
1.
Both of the capital owner and the mudarib shall be entitled to a
portion of the profit according to the percentage agreed. If the
company contract does not specify their respective share, the profit

shall be shared according to established custom. If there is no custom,

the profit shall be shared equally.
2.
If the mudarib is allowed to mix the Mudaraba capital with his
own, the profit shall be shared according to the capital percentage,
whereupon the mudarib shall receive his capital profit, while the
Mudaraba capital profit shall be distributed as set forth in the
preceding item.
Article 561
1.
The capital owner shall bear the loss of the capital alone, and
any agreement to the contrary shall be void.
2.
If a shortage occurs in the Mudaraba capital due to a loss or
damage, it shall be completed from the profit. If the shortage exceeds
the profit, the excess shall be calculated from the capital, without
attaching any liability to the mudarib.
Article 562
1.
Any contracting party may terminate the Mudaraba if it is
absolute, provided that the time for termination is suitable, failing
which he shall compensate the other party for any damage he suffers.
2.
This termination shall take effect only from the time the other
party is served a notice thereof.
3.
If the Mudaraba so terminates, the mudarib shall abstain from
disposing of the mubaraba capital if it is in the form of money. If it is
in another form, he may sell it and receive its price.
Article 563
1.
Regardless of the way of termination of the mubaraba, the
mudarib shall complete the transaction he has commenced to a
condition with which the mudarib capital is not exposed to loss or
damage.
2.
In case the mubaraba terminates due to the mudaribs death,
his heirs or their representatives shall promptly notify the capital

owner of the death of their legator, and take such measures as required
by circumstances to safeguard the Mudaraba capital.
Chapter V: Loans
Article 564
A loan is a contract by which the lender undertakes to transfer to the
borrower the ownership of a sum of money or other fungible upon
condition that the borrower returns a thing equal in amount, kind and
quality.
Article 565
1. The lender shall deliver to the borrower the thing, which is the
object of the contract unless it is agreed that its delivery shall take
place at another time.
2. If the thing perishes before its delivery to the borrower, the loss
shall fall on the lender
Article 566
The lender shall not be liable for indemnity in respect of the maturity
of the thing borrowed, unless indemnity is agreed, or if the lender
intentionally conceals the reason for maturity.
Article 567
1. If a defect appears in the borrowed thing and the borrower elects to
keep it, he shall only be under obligation to repay the value of the
defective thing.
2. If the borrower deliberately conceals the defect, he shall be liable
for the damage caused by the defect.
Article 568
If the loan contract provides for an interest in excess of the
requirements of the loan contract, excluding the lenders right, the
provision shall be void but the contract shall be valid.
Article 569

1. The borrower shall repay the valuable consideration when the

agreed date falls or upon the lapse of the time limit.
2. If no fixed date is agreed or if it is agreed that repayment shall take
place when repayment is possible, the judge shall fix a suitable date of
repayment according to circumstances.
Article 570
If there is no agreement on a venue for repayment, the repayment
shall take place at the borrowers domicile.
Article 571
1. No consideration shall be given to the change in similar value at the
time of repayment.
2. If the borrowed thing is no longer available in the market, the
lender will have the option to either wait until the thing becomes
available in the market so that the borrower will be able to return it in
a similar kind or to demand the borrower to pay the value of such
thing at the time and place of the required return.
Article 572
The borrower shall incur the costs of the loan and repayment unless
there is an agreement to the contrary.

Chapter VI: Compromise

Article 573
Compromise is a contract by which two parties put an end to a dispute
that has arisen, or prevent a dispute that is expected to arise, by the
mutual surrender of part of their respective claims.
I: Elements of Compromise
Article 574

In order to effect a compromise, the parties must have legal capacity

to dispose for valuable consideration of the rights which are the
objects of the compromise.
Article 575
A compromise cannot be made on any question touching the status of
individuals or public policy, but a compromise may be made with
regard to proprietary interests arising out of the status of individuals
or out of a penal offence.
Article 552
A compromise can only be established by a written document or by an
official procs-verbal.
II: Effects of Compromise
Article 577
1. Compromise terminates the disputes in respect of which the
compromise
is
made.
2. It extinguishes the rights and claims which either of the parties have
finally renounced.
Article 578
1. Compromise has a declaratory effect only as regards the litigious
rights.
2. The wording of the renunciation contained in the compromise must
be strictly interpreted. The renunciation, no matter how worded,
applies to those rights only which form the precise object of the
dispute settled by the compromise.
Article 579
1.
No benefit or gain shall ensue from compromise except to its
parties, even if it relates to an indivisible object.
2.
However, the parties, be they creditors or debtors, may invoke
the compromise concluded by any of them, if they deem it beneficial.
Article 580

Whoever compromises a personal right, or an automatic right based

on a specific reason and then acquires such right from another person
or for another reason, the new right he has acquired shall not be
connected with the previous compromise.
III: Nullify of Compromise
Article 581
1.
A compromise is indivisible. The nullity of one part of a
compromise involves the nullity of the whole contract.
2.
This rule does not apply, however, when it follows, from the
wording of the contract or from the circumstances, that the parties
agreed that the various parts of the compromise are independent one
of the other
Part II: Contracts relating to Utilization of Things
Chapter I: Lease
Subsection I: Lease in general
Article 582
A lease is a contract by which the lessor undertakes to enable the
lessee to enjoy a specific thing for a certain time in return for a fixed
rent.
I: Elements of Lease
Article 583
In the absence of a provision of the law to the contrary, a person who
has only a right of management cannot, without the consent of the
competent authority, enter into a lease for a term exceeding three
years. If the lease is granted for a longer term, it will be reduced to
three years.
Article 584

1. A lease granted by a usufructuary, unless ratified by the bare owner,

ends when the usufruct is extinguished, subject to the delay provided
for giving notice of evacuation and the time required for the maturity
and carriage of the existing crop.
2. Persons entitled only to use or occupy the leased object may not
rent it except with explicit permission or cogent justification.
Article 585
Rent may consist either of money or of any other prestation.
Article 586
If the parties have not agreed the amount of the rent or the manner in
which the rent shall be fixed, or if the amount of the rent cannot be
established, it must be based on the current rent for other similar
properties.
Article 587
If the parties have not agreed on a start date of lease, it shall start from
the date of the lease contract.
Article 588
1. If a lease contract is concluded without any agreement as to term,
or for an undetermined period, or if the term cannot be established, it
shall be deemed to have been made for the term fixed for payment of
the rent.
2. The lease shall expire at the end of the term in question, at the
request of one of the parties, subject to notice being given by him to
the other by a registered letter for vacating the property before the end
of the latter part of the lease term. The notice period shall not be more
than three months.
Article 589
The lease term may not exceed twenty five years. If the lease contract
is concluded for a longer term, or for life, its term shall be reduced to
this limit, unless the lease is concluded for the lessors or lessees life,

in which case the lease contract shall continue for this period, even if
it exceeds twenty five years.
II: Effects of Lease
(A) Obligations of the Lessor
Article 590
The lessor is bound to deliver to the lessee the leased property and its
accessories in a condition suitable for the purpose for which it is
intended, in accordance with the agreement between parties or with
the nature of the property.
Article 591
1. If the leased property is delivered to the lessee in such a condition
that it is unfit for the use for which it is leased, or if its usefulness is
appreciably diminished, the lessee may demand either the resiliation
of the lease or a reduction of the rent equivalent to the loss of use; in
both cases he is entitled to claim compensation, if compensation is
due.
2. If the leased property is in such a condition that it constitutes a
serious danger to the health of the lessee, or those who live with him,
or his employees or workmen, the lessee may demand resiliation of
the lease, even if he has renounced the right to do so beforehand.
Article 592
The rules laid down as regards the obligation of delivery of the thing
sold, especially as to time and place of delivery, as to the extent,
deficiency or excess thereof unless there is a provision in the law that
provides to the contrary.
Article 593
The lessor is bound to maintain the leased property to keep it in a
condition allowing making use of the intended benefit. He shall make,
during the continuance of the lease, all repairs which may become
necessary according to the prevailing practice unless there is
agreement to the contrary.

Article 594
1. If the lessor having been summoned, delays the performance of the
repair obligations mentioned in Articles 513 and 515, the lessee may
without prejudice to his right to claim revocation of the lease or a
reduction of rent, obtain authority of the Court to carry them out by
himself without prejudice to his right to seek revocation or reduction
of the rent as provided for in the law.
2. The Court authority shall not be necessary if the repair are of an
urgent nature or can be carried out at a modest cost.
Article 595
1. The Lessor shall carry out all the urgent repairs that are necessary
for the preservation of the leased property even in spite of the lessees
objection, provided that the latter shall be given a reasonable notice of
the intention to carry them out.
2. If such repairs result in total or partial breach of enjoying the
intended benefit, the lessee may demand termination of the lease
agreement or reduction of the rent.
3. However, if the lessee remains in the leased property until
completion of the repairs, his right to demand termination of the
agreement shall be forfeited.

Article 596
1. If, during the course of the lease, the leased property is totally
destroyed for a cause beyond the control of either of the contracting
parties, the lease is ipso facto determined.
2. If, as a result of a cause not imputable to the lessee, the leased
property is only partially destroyed or deteriorates to such an extent
that it becomes unfit for the use for which it was leased, or if such a
use is appreciably diminished, the lessee may, if the lessor, does not

restore the leased property to its original condition within a reasonable

time, claim according to the circumstances either a reduction of the
rent or revocation of the lease agreement without prejudice to his right
to carry out the repairs by himself and restore the leased property to
its original condition in accordance with the provisions of Article 516
unless this is burdensome to the lessor.
3. In the preceding two cases, the lessee cannot claim compensation if
the loss or deterioration arises from a cause not imputable to the lessor.
Article 597
1. It is not permissible for the lessor to molest the lessees enjoyment
during the lease period, or make any alteration in the leased property
or its annexes that may prevent or upset such enjoyment.
2. Any molestation by a lessors servant shall be deemed a
molestation by the lessor himself.
Article 598
The lessor shall not be liable for any molestation by a third party
unless it is based on a legal reason.
Article 599
1. If a third party claims to have rights incompatible with those
derived by the lessee from the agreement of lease, the lessee shall
forthwith give notice to the lessor of such a claim and shall be entitled
to demand that he be dismissed from the case. In which event
proceedings will be taken solely against the lessor.
2. If, as a result of such a claim, the lessee is effectively deprived of
the enjoyment to which he is entitled in accordance with the
agreement of lease, he may, in accordance with the circumstances,
claim resiliation of the lease or a reduction of rent together with
payment of damages, if damages are due.
Article 600
1. The lessor does not warrant the lessee against trespass by a third
party who does not claim a right over the leased property. This shall
not, however, affect the right of the lessee to file an action in his name

against such third party for damages and to file all other possessory
actions.
2. If, however, the trespass is not in any way attributed to the lessee
and is sufficiently serious to deprive him of the enjoyment of the
leased property, the lessee may, in accordance with the circumstances,
claim revocation of the lease or a reduction of the rent.
Article 601
When there are several lessees of the same property, preference shall
be given to the lessee who enters into the possession of the property
first. If no lessee entered into possession without fraud, preference
shall be given to the lessee who concludes the lease contract first.
Article 602
1. If, as a result of an act lawfully done by a public authority, the
enjoyment of the property leased is appreciably diminished, the lessee
may claim revocation of the lease or a reduction of rent unless the act
of the public authority is for a cause for which he is liable.
2. If the grounds for the act of such public authority are the result of
an act attributed to the lessor, the lessee may claim payment of
damages.
3. All the above shall apply unless there is agreement to the contrary.
Article 603
1. The lessor warrants to the lessee the freedom of the leased property
from all defects which prevent or appreciably diminish enjoyment of
the property.
2. However, the lessor does not warrant those defects that are
customarily tolerated, or any defect of which the lessee was informed
or of which he was aware at the time of the conclusion of the contract
or could be aware thereof had he inspected the property with due
diligence, unless the lessee proves that the lessor has confirmed that
the leased property had no such defects or deliberately concealed them
out of fraud.

3. All the above shall apply unless there is agreement to the contrary.
Article 604
If the leased property is found to have a defect against which the
lessee has been warranted by the lessor, the lessee may, in this case
ask for repair of defect at the expense of the lessor where such repair
is not excessive thereto without prejudice to the right of the lessee to
claim revocation of the lease or reduction of the rent in addition to
damages where there are grounds therefor.
Article 605
Any agreement excluding or limiting the warranty against disturbance
or defects is void if the lessor has fraudulently hidden the cause of
such warranty.
Article 606
If the leased property does not possess the qualities the lessor warrants,
the lessee may seek termination of the lease contract or reduction of
the rent, without prejudice to his right to compensation if required.
(B) Obligations of the Lessee
Article 607
1. The lessee must pay the rent at the agreed times and, in the absence
of
agreement,
at
times
established
by
custom.
2. In the absence of agreement or a custom to the contrary, the rent
will be paid at the domicile of the lessee.

Article 608
Unless the lessor proves the contrary, payment of rent for a specific
period shall serve as presumption of payment of rent for the preceding
period.
Article 609

1. The lessor has, as warranty for all amounts due to him under the
lease agreement, a lien on all the attachable movables kept in the
leased property, while they are subject to the lessors right of privilege,
even when they do not belong to the lessee. The lessor has the right to
object to their removal and, if they are removed notwithstanding his
objections or without his knowledge, to claim their recovery from
their possessor even in good faith, subject always to the rights of such
possessor thereon.
2. The lessor shall not exercise his rights of retention or of recovery
when the movables have been removed to meet the professional
requirements of the lessee or in accordance with customary
requirements of daily life, or if the movables remaining on the leased
property or already recovered are sufficient fully to cover the rent.
Article 610
The lessee shall use the leased property in the manner agreed. In the
absence of any agreement, he shall use the property in accordance
with the purpose for which it is designed subject to compliance with
the prevailing practice.
Article 611
The lessee may not, without the permission of the lessor, make any
alteration to the leased property if such alteration would cause damage
to the lessor.
Article 612
1. The lessee may put in the leased property any systems or
installations that guarantee the intended use of the property as long as
they are fixed in a manner consistent with proper standards, and such
installations or systems would not cause damage to the property or
reduce it value.
2. If the intervention of the lessor is necessary for the completion of
any of these installations, the lessee may call upon the lessor to
intervene, on condition that he undertakes to pay the expenses
incurred by the lessor in this connection.

Article 613
1. The lessee shall exercise ordinary care in the use and preservation
of the leased property.
2. The lessee shall be responsible for any deterioration of or loss to the
leased property during his enjoyment thereof which is not the result of
normal use
Article 614
The lessee shall forthwith notify the lessor of all matters that require
his intervention, such as urgent repairs, the discovery of defects,
encroachments and disturbances or damage by third parties to the
leased property.
Article 615
Unless otherwise agreed, the lessee shall incur the minor repairs
required by the normal use of the leased property and custom.
Article 616
The lessee shall be bound, upon the expiration of the lease, to restitute
the leased property and its annexes. If he retains it unlawfully, he must
pay compensation to the lessor on the basis of the rental value of the
property and of the damage suffered by the lessor.
Article 617
1. The lessee is bound to restitute the leased property in the condition
in which it was at the time he took delivery thereof, subject to loss or
deterioration due to a cause not imputable to him.
2. If no procs-verbal or inventory setting out particulars of the
property was drawn up at the time of delivery, the lessee is presumed,
subject to proof to the contrary, to have received the property in good
condition.
Article 618
The costs of restitution of the leased property shall be incurred by the
lessee unless the agreement or prevailing custom otherwise provides.

Article 619
1. If the lessee has erected buildings, planted trees or made other
improvements which have increased the value of the property, the
lessor is, subject to an agreement to the contrary, bound at the end of
the lease to repay him the expenses incurred by him or the increase in
value
of
the
property.
2. If such improvements were made without the knowledge of the
lessor or notwithstanding his objections, the lessor may claim their
removal and may in addition call on the lessee to pay compensation, if
compensation is due, for any damage to property resulting from such
removal.
3. If the lessor prefers to keep these improvements and pay one of the
two amounts indicated above, the court may give him time for
settlement.
III: Assignment of Lease and Sublease
Article 620
The lessee has the right to assign the lease or sublease all or any part
of the leased property, unless otherwise agreed, or if it is found that
the lessees personality was considered at the time of conclusion of
the contract.
Article 621
1. A prohibition of sub-lease implies a prohibition of assignment and
vice
versa.
2. When, in the case of a lease of an immovable property in which an
industrial or commercial establishment has been created,
circumstances have compelled the lessee to sell such industrial or
commercial establishment, the court may, notwithstanding the
condition prohibiting sub-letting, decide to maintain the lease in force
if the purchaser furnishes adequate security and the lessor suffers no
real prejudice thereby.
Article 622

When a lease is assigned, the principal lessee remains guarantor for

the performance of all the assignees rights and obligations arising
from the lease agreement.
Article 623
1. In the case of sub-lease, the relationship between the original lessee
and lessor shall be subject to the provisions of the lease agreement
concluded between them. As for the relationship between the original
lessee and sub-lessee, it shall be subject to the provisions of the sublease agreement.
2. However, a sub-lessee is answerable directly to the lessor for the
amounts that he, the sub-lessee, owes to the original lessee as from the
time is served on him by registered mail by the lessor. A sub-lessee
cannot set up against the lessor payments made by him in advance to
the principal lessee, unless they were made before the summons, in
accordance with a formal agreement showing the date prior to the
time of sub-lease
Article 624
A lessee ceases to be answerable to the lessor, either as guarantor of
the assignee in case of the assignment of the lease agreement, or as
regards his obligations arising from the principal lease agreement in
the case of a sub-lease if the lessor has expressly or implicitly agreed
to the assignment of lease or to the sub-lease. The lessors receipt of
the rent directly from the assignee or sub-lessee shall be deemed as an
implicit acceptance without making any reservations with respect to
his rights towards the original lessee.

IV: Termination of Lease

Article 625

A lease terminates upon the expiry of the agreed term without it being
necessary to give notice of evacuation unless there is agreement to
extending the lease for a further fixed or unspecified term in case no
notice is given for evacuation on a certain date.
Article 626
1. If, after the lease has expired, the lessee continues to enjoy the
leased property to the knowledge of and without objection on the part
of the lessor, the lease is deemed to be renewed upon the same
conditions but for an indefinite duration. The lease renewed in this
manner shall be governed by the provisions of Article 588.
2. Subject to the rules of registration applicable to real property, the
real securities supplied by the lessee in guarantee of the old lease shall
be transferred to the new lease. The securities provided by third
parties shall not be transferred to the new lease unless the surety
consents thereto.
Article 627
1. When notice of evacuation has been given by one party to the other
and the lessee, notwithstanding the notice, continues to enjoy the
property after the expiry of the lease, the lease will not, subject to
proof to the contrary, be deemed to have been renewed.
2. However, if the lessor gives notice to the lessee by a registered
letter without cover of non-renewal of the lease except for a specific
rent or under certain other conditions for which the lessee remains
silent, his silence shall be deemed as a renewal of the lease at the rent
or conditions notified thereto by the lessor.
Article 628
1. If title to the leased property is transferred to a special successor,
the rent shall not be effective towards him except with his consent
unless he proves that he was aware thereof or has an established date
prior to the cause that resulted in transfer of title thereto.

2. However, the person to whom title has been transferred may invoke
the lease agreement as though such agreement is not effective towards
him
Article 629
A person acquiring title to the leased property, who is not bound by
the lease, can only evict the lessee by giving him notice as provided
for in Article 588, and after obtaining compensation from the lessor
for surrendering the leased property before expiry of the lease term, or
sufficient security for payment of such compensation.
. Article 630
1. If the lease becomes effective towards a person acquiring title to the
property, the latter shall replace the lessor in respect of all rights and
obligations created by the lease agreement.
2. However, the lessee may not set up rent paid in advance against a
new owner, if the new owner proves at the time of payment that the
lessee knew or should necessarily have known of the transfer of
ownership. Failing proof thereof, the new owner has only a recourse
against the lessor.
Article 631
When it has been agreed that the lessor may terminate the contract if
he becomes personally in need of the property, he shall, if he exercises
his right, give the lessee notice of termination within the periods
specified in Article 588, unless otherwise agreed.
Article 632
1.
If any party to the contract encounters unexpected conditions
that would make the continuation of the lease encumbersome for him,
the judge may, at his request, concile the two parties and awarding fair
compensation to the other party.
2.
If the lessor seeks termination of the contract, the lessee shall
not be forced to surrender the leased property till he receives the
compensation or sufficient security.

Article 633
1. A lease agreement is not terminated either by the death of the lessor
or of the lessee.
2. In the event of the death of the lessee, however, his heirs may claim
the termination of the lease if they establish that, as a result of the
death of the person whose estate they inherited, the burden of the
lease has become too heavy for their resources or that the lease
exceeds their needs.
Article 634
If the lessee dies and the contract has been concluded solely on
account of his calling or of other considerations relating to his person,
his heirs or the lessor may, on his death, seek termination of the lease.
Article 635
If the lessees employment obliges him to change his place of
residence, he may claim termination of the lease of his residence.
Article 636
A party that seeks termination of the lease in the cases provided for in
articles (632) to (635) shall observe the period of notice provided for
in article (588).
Article 637
1.
If the lessee does not start using the leased property or uses it
incompletely dues to his fault or a personal matter, he shall remain
liable for paying the rent and discharging the obligations imposed by
the contract, as long as the lessor has put the leased property at his
disposal in a usable condition as agreed.
2.
In this case, the lessor shall deduct the expenses he has saved
and the value of the benefit he has realized due to the leased property
having not been used by the lessee.

Subsection II: Certain Types of Lease

I: Lease of Agricultural Lands
Article 638
The provisions of leases shall be applicable to leases of agricultural
land subject to compliance with the provisions of the following
articles unless there is agreement or custom to the contrary.
Article 639
1. A lease of agricultural land shall not include cattle and implements
kept therein unless there is a specific provision to this effect in the
lease.
2. If the lease involves the things mentioned above, the lessee shall
take proper care of them and maintain them in the manner required for
their customary use.
Article 640
If the contract provides that the lease is made for one or several years,
it is deemed to be for one or several annual rotation of crops
Article 641
1. An agricultural land shall be exploited in the mutually agreed
manner, failing which the lessee shall exploit the land according to the
nature thereof and the prevailing agricultural custom. In particular, he
shall
ensure
that
it
remains
fit
for
production.
2. The lessee shall not, without the consent of the lessor, make any
substantial change in the established method of cultivating the land,
the effects of which might extend beyond the period of the lease.
Article 642
1. The lessee is bound to carry out the repairs necessary for the normal
enjoyment of the leased land. In is responsible in particular for the
normal maintenance duties for the water wells, drains and buildings
intended for residential purposes or other kinds of enjoyment.

2. The repairs vital for ensuring the intended enjoyment of the

property shall be the responsibility of the lessor.
Article 643
1. If the lessee has, as a result of force majeure, been prevented from
preparing or sowing the land, or if the whole or the greater part of the
seed has been destroyed thereby, he is relieved from payment of the
whole or part of the rent, as the case may be.
2. If for a force majeur the crop perishes before harvest, the lessee
may seek exemption from the rent.
3. If the crop perishes partially and this causes significant shortage in
the yield of the land, the lessee may request the lessor to reduce the
rent proportionately to the shortage.
Article 644
The lessee may not seek exemption from, or reduction of the rent
according to the preceding article if he has been compensated for the
damage he suffered from the profits he has gained during the entire
lease period, or in any other way.
Article 645
The lessee may not seek exemption from, or reduction of the rent if
the crop perishes after harvest, unless it has been agreed on a specific
share of the crop for the lessor, in which case the lessor shall be liable
for his perished share, provided that perishment occurs through a fault
of the lessor or after he is served a notice for delivery.
Article 646
If upon expiry of the lease contract the crop does not mature, the
lessee shall retain the leased land for a standard rent till crop maturity
and harvest. If non-maturity is due a fault of the lessee, he shall
compensate the lessor.
Article 647
An outgoing lessee shall do nothing of a nature to diminish or retard
the enjoyment of the land by an incoming lessee. He is bound, in

particular, just before vacating the land, to allow the incoming lessee
to prepare the land and to sow, if he does not sustain any injury
thereby.
II: Amodiation
Article 648
Agricultural land and land planted with trees may be granted in
amodiation to a lessee in consideration of the lessor taking a fixed
share in the crop.
Article 649
In the absence of agreement or custom to the contrary, the conditions
governing leases apply to amodiation.
Article 650
If no period is fixed for amodiation, its period shall be the period
required for harvesting the crop agreed. If no crop has been agreed,
the period shall be one annual rotation.
Article 651
The lease in case of amodiation includes agricultural implements and
cattle belonging to the lessor which are on the land at the time of the
agreement.
Article 652
The lessee must use for cultivation and preservation of the crop the
same care as uses for his own affairs, and preserve the land and its
appurtenances with ordinary care.
Article 653
In amodiation, the lessee cannot assign the lease or sub-let the land
amodiated without the consent of the lessor.
Article 654
1.
The lessee shall incur the expenses of cultivation, preservation
of the plant till maturity, and maintain implements and carry out
minor repairs for buildings.

2.
The lessor shall incur the other expenses of irrigation and the
necessary land reclamations.
3.
The two parties shall, according to their respective shares in the
crop, incur the costs of seeds, fertilization, price of pesticides,
expenses of harvest and subsequent expenses till division.
Article 655
1.
The crop shall be shared by the two parties according to the
percentage agreed, or, if no percentage has been agreed, a customary
percentage. If no agreement or custom exists, each shall be entitled to
half the crop.
2.
It may not be agreed that a party shall be entitled to a specific
amount of the crop, or the crop of a specific part of the land.
Article 656
If the crop perishes totally or partially due to a force majeur, this
perishment shall affect the two parties together.
Article 657
The provisions of article (646) shall apply if the crop does not mature
upon expiry of the amodiation period. The lessee shall, however, be
liable for the standard rent only to an extent proportionate to his share
in the crop.
Article 658
If due to illness or any other reason the lessee becomes unable to
cultivate the land and can not be replaced by a family member, the
two parties may seek termination of the contract.
Article 659
The amodiation does not determine on the death of the lessor, but
determines on the death of the lessee.
Article 660
1. If the amodiation ceases before the end of its term, the lessor must
reimburse the lessee or his heirs for any expenditure made in respect

of crops which have not ripened, and pay equitable compensation for
his work , provided that all this does not exceed the lessees share of
the
crop.
2. If, however, the amodiation is dissolved by the death of the lessee,
his heirs may choose to claim reimbursement of the expenses
mentioned above or take the place of their legator until the crop has
ripened, as long as they are in a position to do so satisfactorily.
III: Lease of Wakf Property
Article 661
1. A Nazir has the right to let wakf property.
2. A beneficiary, even if he is the sole beneficiary, cannot grant a
lease unless the right to do so has been given to him by the constituent
of the wakf or unless he is authorized to do so by a person who has
power to grant a lease, whether he be the Nazir or the judge.
Article 662
The Nazir is the person entitled to receive the rent, and payment must
not be made to the beneficiary without the consent of the Nazir.
Article 663
The Nazir is not entitled to take the Waqf property on lease nor may
he lease the said property to his spouse nor to one of his ancestors or
descendants.
Article 664
1. A lease of Waqf property is not valid if the rent is grossly
inadequate, unless the lessor is the sole beneficiary with power to
administer the Waqf. In such a case, the lease, notwithstanding the
gross inadequacy of the rent, will bind the lessor, but will not bind
beneficiaries who succeed him.
2. If the Nazir leases the Waqf at a grossly inadequate rent, the lessee
is bound, under penalty of revocation of the contract, to make up the
rent to the rent for similar properties.

Article 665
1. If the maker of the Waqf fixes a lease term, he shall comply with
the provisions thereof and the Nazir shall not oppose it unless he is
authorized to grant a lease for achieving a better benefit for the Waqf.
2. If there is no one to take a lease of the Waqf property for the period
fixed by the founder of the Waqf or if the lease for more than that
period is more beneficial to the Waqf, the Nazir may after seeking the
permission of the Nazir, grant a lease for a longer period
Article 666
Excluding the wakfs under to the general nizarah for the competent
legal authority, the nazir may not, if the wakf owner does not specify
the lease term, rent the house, the shop, etc. for more than one year, or
lease the land for less than three years, unless interest requires the
lease of the house or the shop to be increased, and the lease of the land
to be reduced.
Article 667
1. The Nazir cannot, without authority of the judge, lease wakf
property for a period exceeding three years, even by successive
contracts. Any lease entered into for a longer period shall be
reduced to three years.
2. If, however, the Nazir is also either the owner or the sole
beneficiary, he may, without the authority of the judge, lease
the wakf property for more than three years, subject to the right
of the Nazir succeeding him to claim the reduction of the period
to three years.
Article 668
The lease of a Waqf property shall not be terminated upon the Nazirs
death or removal.

Article 669
The provisions relating to lease contracts apply to the lease of wakf
property, insofar as they are not incompatible with the preceding
provisions.
Chapter II: Commodation
Article 670
A commodation use is a contract by which the lender undertakes to
hand over to the borrower without valuable consideration, a nonconsumable thing for his use during a specific time or for a specific
purpose, which thing the borrower undertakes to restitute after having
used it.
I: Effects of Commodation
(A) Obligations of the Lender
Article 671
The lender is bound to hand over to the borrower the thing lent in the
condition in which it was at the time of the conclusion of the contract
of loan for use, and to leave him in possession of the thing lent during
the period of the contract.
Article 672
1. If, during the period of loan, the borrower is obliged to incur
expenses necessary for the preservation of the thing, the lender
must reimburse him his expenses.
2. In the case of moneys usefully spent, the provisions with regard
to expenses incurred by a possessor in bad faith will be
applicable.
Article 673
1. The lender shall not warrant dispossession of the thing loaned
unless there has been an agreement for such warranty or the
lender has deliberately concealed the cause of dispossession.

2. Similarly, the lender does not warrant hidden defects. If,

however, he has deliberately concealed such defects, or has
warranted that the thing is free from defects, he is bound to
compensate the borrower for any loss he has suffered as a result
thereof.
(B) Obligations of the Borrower
Article 674
1. If the commodation is restricted in its use by a time, place or
type of use, the borrower may only use the commodation at the
designated time and place nor shall he act contrary to the
permitted use so as to cause damage thereto.
2. However, if the commodation is not subject to any restriction,
the borrower may use the commodation at any time and place
and for any type of use he wishes, provided that the use shall be
according to the nature of the thing or in accordance with
custom.
3. In both cases, the borrower is not responsible for changes to,
damage or deterioration of the commodation resulting from its
use in accordance with the lending contract.
Article 675
The borrower may not lease the thing lent nor shall he lend it to
another person except with the permission of the lender.
Article 676
The borrower shall incur the costs of the normal use and maintenance
of the commodation as well as the costs of its delivery and return.
Article 677
1. The borrower is bound to take such care for the preservation of
the thing lent as he would take for the preservation of his own
property; provided that the care he takes is not less than that
which a reasonable person would take.

2. The borrower is, in any event, responsible for the loss of the
thing lent arising from a fortuitous event or force majeure if it
was possible for him to avoid such loss by using his own
property, or if he could only preserve his own property or the
thing lent and he preferred to preserve his own property.
Article 678
1. The borrower must, at the end of the commodation, restitute the
thing received in its state at that time, without prejudice to his
responsibility
for
loss
or
deterioration.
2. In the absence of an agreement to the contrary, the borrower must
restitute the thing at the place that he received it.
II: Termination of Commodation
Article 679
1. The loan for use comes to an end upon the expiration of the
term agreed and, in default of such term being fixed, when the
thing has served the purpose for which it was lent.
2. If there is no way by which the term of the loan for use can be
fixed, the lender may demand its termination at any time.
3. The borrower may, in all cases, restitute the thing lent before
the end of the loan. If, however, such restitution is prejudicial to
the lender, he cannot be compelled to accept the thing.
Article 680
The lender may put an end to a loan for use at any time in the
following cases:
1. if the lender has suddenly an urgent and unforeseen need of the
thing;
2. if the borrower uses the thing improperly or neglects to take the
necessary precautions for its preservation; and
3. if the borrower becomes insolvent after the conclusion of the
loan or if his insolvency before the conclusion of the loan was
not known to the lender.

Article 681
In the absence of an agreement to the contrary, a loan for use ends
with the death of the borrower.
Part III: Work Contracts
Chapter I Contract Agreements
Section I General Rules for Contract Agreements
Article 682
A contract agreement is a deed whereby one party undertakes to make
something or perform work for another party in return for a charge
without being a subordinate or representative of such other party.
I: Provision of Materials
Article 683
1. A contractors obligation may be confined to performing the agreed
work, provided that the work owner supplies the required materials.
2. The contractor may also undertake to provide all or some of the
materials besides performing the work.
Article 684
1. If the contractor undertakes to supply all or some of the materials
required for work, such materials shall conform to the agreed
specifications. If no specifications are agreed upon, they shall serve
the intended purpose.
2. The contractor shall guarantee the defects such materials may
develop in accordance with the provisions on guaranteeing the defects
of sold objects.
Article 685
If materials are supplied by the work owner, the contractor shall use
ordinary care to protect them and use them in conformity with
technical standards and submit an account of the parts he has used and
return remaining to the work owner.

If the material or some of them become unfit for use due to the
neglect of his technical inability, he shall refund the value of the unfit
materials to the work owner.
Article 686
1. If during the performance of work defects occur or develop in the
materials supplied by the work owner, or if other factors hinder the
performance of work in suitable conditions, the contractor shall notify
the work owner to that effect.
2. If the contractor neglects such notification, he shall be responsible
for the consequences of his neglect.
Second: Contractors Obligations
Article 687
1. The contractor shall perform the work according to the conditions
of the contract agreement within the agreed period. If no conditions or
period is agreed, the contractor shall perform the work according to
the generally accepted standards within a reasonable period as
required by the nature of work with due observance to the usage of
workmanship.
2. The contractor shall also provide at his expense the any labor, tools
and equipment required for performing the work unless otherwise
stipulated by the agreement or usage.
Article 688
If during the progress of work it is established that the contractor is
performing the work defectively or contrarily to the contract, the work
owner may warm him to correct the method of execution within a
reasonable period he defines for the contractor. If this period expires
and the contractor fails to use the right method, the work owner may
then request abrogating the contract or obtain a judicial authorization
to execute the work at the contractors expense if the nature of work
so permits.

Abrogating the contract may be requested without notice or fixing a

time limit for correction if correcting the defect or violation is
impossible.
In all cases, the judge may reject the abrogation request if the
execution defect is not likely to greatly reduce the value of work or its
fitness for the intended use without prejudice to the right to
compensation if necessary.
Article 689
If the contractor delays commencing the execution of work or
completing it to an extent that he is not expected at all to complete it
within the agreed period or if he resorts to a course of action
indicating that he does not intend to fulfill his obligation or commits
an act liable to render the fulfillment of such obligation impossible,
the work owner may request abrogating the contract without waiting
for the term fixed for delivery to fall due.
Article 690
If the object is lost or damaged due to a sudden accident or force
majeur before being delivered to the work owner, the contractor may
not claim the agreed charge or the value of the materials he has
supplied unless at the time of loss or damage the work owner is not in
breach of his obligation in respect of delivering the work.
Article 691
1. If the materials supplied by the work owner are lost or damaged
before delivery to the contractor due to a sudden accident or force
majeur, the work owner may not claim the value of such materials
from the contractor unless at the time of loss or damage the contractor
is in breach of his obligation in respect of delivering the work and
unless the contractor proves that the object would have been lost or
damaged in the possession of the work owner if he had delivered to
the contractor.

2. Work materials shall be considered to have been supplied by the

work owner if he has paid the value of such materials to the contractor
or paid him an advance payment including such value.
Third: Obligations of the Work Owner
Article 292
1. If the performance of work requires the work owner to take a
particular action that he fails to take in time, the contractor may assign
him to take such action within a reasonable time limit.
2. Is the time limit expires without such action having been taken by
the work owner, the contractor may request abrogating the contract
without prejudice to his right to compensation if required.
Article 693
Once the contractor completes his work and places it at the disposal of
the work owner, the latter shall promptly receive the work according
to familiar dealings. If the work owner refuses to receive the work
without legal causes after being served an official warning, the work
shall be considered to have actually been delivered to him.
Article 694
1. The work owner may refrain from taking over the work if the work
is so defective or contrary to conditions that it is inadequate for the
intended purpose.
2. If the defect or violation does not reach that gross extent, the work
owner may either only request reducing the dues of the contractor to
the extent proportionate to the importance of the defect or violation or
force the contractor to repair the same within a reasonable time limit
he determines if such repair is possible and does not require exorbitant
costs.
3. In all cases, the contractor may carry out the repair within a
reasonable period if the repair is possible and does not cause valuable
costs to the work owner.

Article 695
The work owner may not insist on the rights prescribed by the
preceding article if he is responsible for causing the defect whether by
issuing orders contradicting the contractors opinion or otherwise.
Article 396
1. Once the work is taken over actually or by a judgment, the
contractor shall not be responsible for any apparent defect of the work
or any violation of the contract conditions.
2. If defects or violations are hidden and then they are discovered by
the work owner after takeover, he shall promptly notify them to the
contractor in conformity of professional usage or he shall be
considered to have accepted the work.
Article 697
The work owner shall pay the contractors dues when he receives the
work unless otherwise stipulated by agreement or usage.
Article 698
1. If the work is composed of distinctive parts or the price is fixed by
the unit price, each of the contracting parties may perform an
inspection following the completion of each part or section that is
sufficiently significant for the aggregate work. The contractor may in
such case charge a portion of his dues proportionate to the work he
has performed unless otherwise agreed.
2. In respect of the part of works for which the contractors dues have
been paid, it shall be presumed that such part has been inspected and
accepted unless it is proved the amount has been paid an advance
payment.
Article 699
If the contractors dues have not been agreed upon, they shall be
determined by reference to a similar value of work at the time of
signing the contract and the value of the materials supplied by the
contractor and required by the work.

Article 700
In accordance with the provisions of clause 2 of Article 171, the rise
in the prices of primary materials or the wages of labor and other costs
shall have no effect on the obligations resulting from the contract.
Fourth: Subcontracts
Article 701
1. The contractor may delegate the execution of work in whole or in
part to a subcontractor if no condition in the contract prevents him, or
if the contractors character is not essential according to the nature of
work.
2. However, the original contractor shall remain responsible for his
obligations and the works of the subcontractor before the work owner.
Article 702
The subcontractor and the workers working for the original contractor
for carrying out the work shall have the right to claim from the work
owner directly the payment of no more than the amount for which he
is indebted to the original contractor from the time of initiating the
action. The workers of the subcontractors shall have a similar right
vis--vis both of the original contractor and the work owner.
In case a garnishment is levied by any one of the workers in the hand
of the work owner or the original contractor, the workers shall have a
lien on the amounts due to the original contractor or the subcontractor
at the time of levying the garnishment. Workers shall be entitled to
such lien in proportion to their respective amounts which may be paid
directly to them.
The rights of the subcontractor and workers as prescribed by virtue of
this article shall have precedence over the rights of the person to
whom the contractor assigns his rights in respect of the work owner.

Fifth: Termination of the Contract Agreement

Article 703
If the contract agreement requires the contractor to carry out
maintenance for something or other renewable works within a
specified period, the contract agreement shall expire with the lapse of
such period.
Article 704
The contract agreement shall terminate if it becomes impossible to
perform the agreed work for any reason beyond the control of either
party, in which case the contractor shall have the right to claim from
the work owner any amounts he has spent and any charge he is
entitled to within the limits of the benefit gained by the work owner.
Article 705
The contract agreement shall expire with the decease of the
contractor, if his personal qualifications or capabilities were taken into
consideration at the time of signing the contract. If they were not, the
contract shall not terminate spontaneously, but the work owner may
request rescinding it if the successors of the contractor do not fulfill
adequate guarantees for the proper execution of the work.
Article 706
1. If the contract agreement terminates with the death of the
contractor, his successors shall be entitled to the value of the works
performed and the expenses the contractor has incurred for the works
that have been performed yet to the extent of the benefit gained by the
work owner from such works or expenses.
2. The work owner may request delivering the other materials
prepared and the drawings the execution of which is started provided
that he pays fair consideration.

3. These provisions shall also apply if the contractor has started

executing the work and becomes unable to complete it afterwards due
to a reason independent of his will.
Article 707
1. The work owner may disengage himself from the contract and
discontinue executing the contract at any time before completing it,
provided that he indemnifies the contractor for all the expenses he has
incurred, and the works he has accomplished, as well as the gain the
contractor would have realized had he completed the work.
2. However, the court may reduce the indemnification due for the gain
the contractor has lost, if conditions render such reduction equitable.
The court shall in particular deduct from the compensation the portion
saved by the contractor as a result of the work owner's disengagement
from the contract, and the gain he might have earned from using his
time for another work.
Section II Provisions Relating to Building and Construction
Contracts
Article 708
If the contract is concluded on the basis of an estimate value but it
transpires during the progress of work that it is necessary to tangibly
exceed the estimate value to execute the agree design, the contractor
shall serve an immediate notice on the work owner indicating the
expected increase in expenses or he shall forfeit his right to claim such
increase.
If the extra cost required for executing the design is enormous, the
work owner may disengage himself from the contract at which point
the execution of work shall be discontinued without delay, provided
that the contractor is paid an estimated value of the works he has
accomplished on the conditions of the contract, without any indemnity
for the gain the contractor could have realized had he completed the
work.

Article 709
1. If the contract is concluded for a lumpsum amount on the basis of a
design agreed upon with the work owner, the contractor may not
claim any increase in his dues due to a change or addition to the
design except if such change or addition is due to or authorized by the
action of the work owner and the cost is agreed upon with the
contractor.
Article 710
If a building or structure is erected on a land owned by the work
owner and such building or structure is as defective as stipulated in
clause 1 of article 694 and results in enormous if removed, the work
owner may only request reducing the contractors dues or hold him to
carry out the necessary repair in accordance with clause 2 of the said
article without prejudice to the work owners right to compensation if
required.
Article 711
The engineer and the contractor shall jointly guarantee the buildings
or fixed installations they have erected against any whole or partial
demolition or defect for a period of ten years, even if the demolition
or defect results from a defect in the land itself, or the establishment
of the faulty buildings has been approved by the work owner. This
guarantee shall cover any defects developed by the buildings and
installations and resulting in threatening their strength and safety.
If the contracting parties intend to keep the buildings or installations
standing for less than ten years, the guarantee shall insure during the
less period. In all cases, this period shall start from the date the work
is received.
The provisions of this article shall not apply to the contractors right
of recourse against subcontractors.
Article 712
1. If the engineers job is confined to creating a design for the building
or structure or any part thereof, he shall be liable only for the defects

attributable to the design he has created not for the defects attributable
to the method of execution.
2. If the work owner assigns the engineer to supervise the execution or
any part thereof, the engineer shall also be liable for the defects
attributable to the method of execution he has been assigned to
supervise.
Article 713
1. The contractor shall be liable only for the defects of execution not
those resulting from an error in framing the design unless such defects
are known according to professional codes.
2. However, the contractor shall be liable for the defects attributable
to the design if the design is developed by his engineer.
Article 714
Actions in respect of the above guarantee shall become time-barred
with the lapse of three years from the time of demolition or
discovering the defect.
Article 715
Any condition intended for relieving the engineer or the contractor of
or limiting the guarantee shall be void.
Chapter II: Mandate
Article 716
Mandate is a contract whereby a mandatary binds himself to perform
a judicial act on behalf of a mandator.
I: Elements of Mandate
Article 717
For a mandate to be valid, a mandator must be legally qualified to
perform the acts act in respect of which the mandate is given.

Article 718
A mandate must be executed in the same form as that required for the
execution of the legal act in respect of which the mandate is given.
Article 719
A mandate given in general terms, which does not specify the nature
of the legal act in respect of which it is given, only confers on the
mandatary the power to perform acts of management.
Granting of leases of not more than three years duration, acts of
preservation and of maintenance, the recovery of rights and discharge
of debts, as well as any disposition required by management are
deemed acts of management.
Article 720
A mandate only confers on the mandatary a power to act in matters
specified therein and in matters necessarily incidental thereto in
accordance with the nature of each matter and prevailing custom.
Article 721
1. A special mandate, in respect of any act which is not an act of
management, is required, and in particular for a sale, a mortgage, an
admission, arbitration, the tendering of an oath and representation
before the Courts.
2. A special mandate to carry out a certain category of legal acts is
valid, save as regards gratuitous acts, even though the object of such
acts is not specified.
II: Effects of Mandate
(A) Obligations of the Mandatary
Article 722
1. The mandatary is bound to perform the mandate without exceeding
the limits fixed therein.
2. He may, however, exceed these limits if he finds himself unable to
notify the mandator thereof beforehand and if the circumstances are

such that it can be assumed that the mandator could not have failed to
approve the act. In such a case, the mandatary is bound to inform the
mandator immediately that he has exceeded the limits of the mandate.
Article 723
1. If the mandate is gratuitous, the mandatory must exercise in its
performance the degree of care that he gives to his own affairs,
without, however, being bound to exercise more diligence than that
shown by a normal person.
2. If the mandate is given for remuneration, the mandatary must
always exercise in its performance the diligence of a normal person.
Article 724
The mandatory shall give to his mandator all necessary information in
connection with the execution of his mandate and render him an
account thereof unless the agreement or the nature of the transaction
otherwise requires.
Article 725
The mandatary may not use the property of the mandator for his own
benefit without permission, otherwise he shall be liable to pay the
mandator a fair compensation to be determined by the judge taking
into account the requirements of justice and circumstances.
Article 726
1. When several mandataries are appointed by a separate contract,
each of them shall be empowered to act unless the mandator requires
him to act jointly with the others.
2. When they are appointed by the same contract without one of them
being authorized to act on his own, they must act jointly except in
cases where an exchange of views is not essential.
Article 727
1. When several mandataries are appointed, they are jointly and
severally liable if the mandate is indivisible or if the damage sustained
by the mandator is the result of their common fault.

2. Mandataries, however, even if joint and several, are not responsible

for the acts done by one of their co-mandataries in excess of the limits
of the mandate or by a wrongful use of the mandate.
Article 728
1. A mandatary who nominates a substitute to perform his mandate
without being authorized to do so, is responsible for the acts of the
substitute as if they were his own acts: in such a case, the mandatary
and his substitute are jointly and severally responsible.
2. When a mandatary is authorized to appoint a substitute without
specifying the person, he is only liable for a faulty choice of the
substitute or for faulty instructions that he gives to him.
3. In the two preceding cases, the mandator and the substitute of the
mandatary have a direct right of action against each other
(B) Obligations of the Mandator
Article 729
1. A mandate is deemed to be gratuitous in the absence of agreement
which may be express or result by implication from the position of the
mandatary.
2. When the remuneration is agreed, it is still subject to the assessment
of the judge, unless it has been voluntarily paid after the performance
of the mandate.
Article 730
1.
Whatever result the mandatary may have achieved in the
performance of the mandate, the mandator must repay to the
mandatary any expenses incurred by him for the normal performance
of the mandate with interest from the date when such expenses were
incurred.
2.
When the performance of the mandate requires the mandator to
supply to the mandatary sums of money for expenditure in respect of

the mandate, the mandator must advance such amounts, if requested

by the mandatary so to do.
Article 731
The mandator is responsible for injury sustained by the mandatary,
without fault on his part, in the normal performance of the mandate.
Article 732
When several persons appoint a sole mandatary for a common
purpose, they are, in the absence of agreement to the contrary, jointly
and severally liable to the mandatary as regards the consequences of
the performance of the mandate.
Article 733
Articles (83) to (87), with regard to representation, apply to the
relationship of a mandator and of a mandatary with third parties
dealing with the mandatary.
III: Termination of Mandate
Article 734
The mandate will terminate by the completion of the act delegated
therein, expiry of the term thereof, or upon the death of the mandator
or the mandatary, except if it is decided that the mandate is granted for
the interest of the mandatary or a third party, or if it is required to be
consummated after the mandators death.
Article 735
1. The mandator may, at any time and notwithstanding any agreement
to the contrary, remove the mandatary or restrict the mandate.
2. When, however, the mandator has been given in the interests of a
mandatary or of a third party, the mandator is not entitled to revoke or
restrict the mandate without the consent of the person in whose
interest the mandate was granted.

3. In any case, the mandator shall indemnify the mandatary for any
damage suffered by the latter as a result of his removal at an
inopportune time or without a justifiable excuse.
Article 736
1. The mandatary may, at any time and notwithstanding an agreement
to the contrary, renounce his mandate even though there is agreement
to the contrary. In this case, the mandatary must indemnify the
mandator for the damage resulting from the renunciation at an
inopportune time or without an acceptable excuse.
2. However, the mandatary shall not have the right to renounce a
mandate given in the interests of a third party, unless there are serious
reasons justifying such renunciation and unless he notifies the third
party and gives him enough time to take such action as may be
necessary to safeguard his interests.
Article 737
1. The mandatary is bound, irrespective of the manner in which the
mandate is terminated, to carry through any work he has commenced
to such a condition that it is not exposed to deterioration.
2. When the mandate is extinguished by the death of the mandatary,
his heirs, if they have the necessary legal capacity and knowledge of
the mandate, are bound to inform the mandator immediately of the
death of the mandatary and to take such steps as circumstances
demand in the mandator's interests.
Chapter III: Deposit
Article 738
Deposit is a contract whereby one person agrees to take delivery from
another person of a thing which he undertakes to keep in safe custody
and return in kind.

I: Effects of Deposit
(A) Obligations of the Depository
Article 739
The depository is bound to take delivery of the thing deposited. He is
not entitled to make use of the thing deposited without the authority of
the depositor.
Article 740
1. When the deposit is gratuitous, the depository is bound to exercise,
in the custody of the thing, the care which he employs in his own
affairs, without, however, being bound to exercise a degree of
diligence exceeding that of a normal person.
2.When the deposit is for remuneration, the depository must exercise
in the custody of the thing deposited the diligence of a normal person.
Article 741
The depository may not, without the express authority of the depositor,
appoint a substitute to take over the custody of the thing deposited,
unless he is compelled to do so by reason of urgent and absolute
necessity.
(B) Obligations of the Depositor
Article 742
A deposit is deemed to be gratuitous. When, however, remuneration
is stipulated, the depositor, in the absence of agreement to the contrary,
is bound to pay such remuneration at the time the deposit ends.
Article 743
A depositor must repay the depository any expenses incurred for the
preservation of the thing deposited and indemnify him against any
loss he may incur as a result of the deposit.

II: Termination of Deposit

Article 744
A deposit contract shall end upon the expiry of the agreed term. If the
term is not agreed explicitly or implicitly, either of the contracting
parties may terminate the deposit after giving a reasonable notice to
the other party.
Article 745
The depositor may at any time demand the deposit back. If the term of
deposit is fixed for the depositorys interest, or if he permitted to use
the deposit, the depositor shall compensate him for the profit he would
have gained for the remaining period.
Article 746
If the deposit term is fixed for the depositors interest and the
depository can not hold the deposit any longer for emergent reasons,
he may seek termination of the deposit before the agreed term,
provided that he serves a sommation on the depositor to receive the
deposit within a suitable period.
Article 747
The deposit shall end upon the death of the depository unless
otherwise agreed upon.
Article 748
1. The depository is bound to return to the depositor the thing
deposited as soon as the deposit contract is terminated together with
the yields thereof. The depositor shall also compensate the depository
for the loss it sustains because of the deposit.
2. The deposit shall be returned at the place where it should have been
kept, and the costs of such return shall be incurred by the depositor.
3. All this shall apply unless otherwise agreed.

Article 749
1. When the heir of a depository sells the thing deposited in good faith,
he is only liable to refund to the owner the price which he has
received or to assign to the owner his rights against the purchaser.
2. If the disposal was gratuitous, he is liable to pay the value of the
thing deposited at the time of disposal.
III: Certain Types of Deposit
Article 750
When the object of the deposit is a sum of money or another thing of a
consumable nature and the depository has been authorized to make
use of it, the contract is deemed to be a loan contract.
Article 751
1. Owners of hotels and similar establishments are responsible, in the
performance of their obligation to keep safely the effects brought in
by guests, for the acts of casual frequenters of their establishments.
(b) They are, however, liable, as regards sums of money, securities
and articles of value, only up to a limit of BD2,000, unless they have
caused the damage by their gross negligence or by one of their
employees while being aware of their value, or unless they have
undertaken to keep them in custody or refused, without just cause, to
take them in their charge
Article 752
1. A guest must, as soon as he has knowledge of the theft, loss of, of
damage to the thing, inform the hotel owner or the person regarded as
such. Where reporting the loss is delayed without reasonable cause,
the hotel owner or the person regarded as such shall not be liable.
2. A guests right of action against the hotel owner or the person
regarded as such is prescribed after six months from the date of his
leaving the hotel.

Article 753
Every condition exempting the hotel operator or similar officer from
liability or diminishing it shall be null and void.
Chapter IV: Judicial Custody
Article 754
Judicial custody is a contract whereby the interested parties entrust to
a third party a movable or an immovable or a property comprising
both movables or immovables which is the subject of litigation or of
legal rights that have not been established, which such third party
undertakes to safeguard, manage and return, together with fruits
collected thereon, to the person whose right thereto shall be
established.
Article 755
The court may order judicial custody:
1. In the cases provided for in the preceding article, unless the
interested parties agree on the custody.
2. If a party with an interest in a movable or an immovable has
reasonable grounds to fear imminent danger to the property as a
result of its remaining in the hands of its possessor.
Article 756
The appointment of a receiver, whether by agreement or judicially,
must be made with the unanimous consent of all the interested parties.
Failing such consent, the receiver will be appointed by the judge.
Article 757
The obligations of the receiver, his rights and powers, shall be defined
in the agreement or in the judgment ordering the custody. In the
absence of such definition, the provisions relating to deposit and
mandate shall apply in so far as they do not conflict with the
following provisions:

Article 758
1. The receiver is bound to ensure the preservation and administration
of the property entrusted to him with the diligence of a normal person.
2. The receiver may not appoint one of the interested parties in his
place to carry out all or part of his duties, without the consent of the
other parties.
Article 759
Apart from administrative duties, a receiver must not act without the
consent of all interested parties or authority of the Court.
Article 760
1. The receiver must keep regular books of accounts.
2. The receiver is bound to render to the interested parties, at least
once in every year, an account of the receipts and expenditure with
supporting documents. If the receiver is appointed by the Court, he
must also deposit a copy of his account at the said Court.
Article 761
1. The receiver may be remunerated unless he has renounced all
remuneration.
2. The receiver may be reimbursed for the expenses incurred towards
the preservation and management of the property entrusted to him.
Article 762
1. Custody shall come to an end either by agreement of all the
interested parties or by a decision of the Court. It shall also end upon
the expiry of its term if it is for a definite term.
2. The receiver must then forthwith restitute the property entrusted to
him to the person chosen by the interested parties or designated by the
Judge.

Part IV: Aleatory Contract

Chapter I: Gaming and Betting
Article 763
1. Any agreement relating to a game of chance or a bet is void.
2. A person who loses in a game of chance or on a bet may,
notwithstanding any agreement to the contrary, reclaim what he has
paid within three years from the time when he made the payment. He
may prove such payment by all available means.
Article 764
1.
The provision of the preceding article shall not apply to any
competition earmarking a prize for a winner of a specific goal.
2.
The prize may be earmarked by a competitor. If it is earmarked
by several competitors, the race shall be shared by at least one racer
with them, provided that he is as equally competent for the race.
3.
The prize may be earmarked by a non-competitor, provided that
it is not a bet among them on the competitor who will win the race.
Chapter II: Life Annuities
Article 765
1. It is permissible for a person to undertake to pay to another a
periodical annuity so long as he lives, without consideration.
2. The obligation to pay the annuity may be immediately payable or
payable after the obligors death.
Article 766
The provision of the preceding article shall not apply to life annuities
prescribed by insurance and pension regulations for the contributions
paid by beneficiaries.
Article 767
1. A life annuity may be granted for the life of the beneficiary of
the grantor or of a third party.

2. In the absence of an agreement to the contrary, a life annuity is

presumed to have been settled for the duration of the
beneficiary's life.
Article 768
The act creating the obligation to pay the annuity shall not be valid
unless it is written, without prejudice to the special forms required by
law for donation contracts.
Article 769
It is permissible to stipulate that the life annuity is not attachable.
Article 770
1. A beneficiary is only entitled to the annuity for the number of days
for which the person on whose life the annuity has been settled lives.
2. When, however, it is provided that the annuity is payable in
advance, the beneficiary will be entitled to the installment which has
fallen due.
Chapter III: Insurance Contract
Article 771
If the grantor does not fulfill his obligation, the beneficiary may
demand due performance of the contract. He may also, if the contract
is for valuable consideration, apply for the resiliation of the contract
together with such damages as may be due.
I: Conclusion of Insurance Contracts
Article 772
Insurance against damages shall become null and void unless it is
based upon a legitimate interest.
Article 773
Insurance shall be invalid if it is found that the insured risk no longer
exists or if it occurs before concluding the contract.
Article 774

1. The insurance contract shall not be deemed to have been concluded

except if the insurer signs the insurance policy. If the contract is
concluded, the insurance application and its contents of particulars
and declarations shall be deemed as an integral part of the contract.
2. Meanwhile, the contract shall be deemed to have been concluded
even before signing the policy if the insurer delivers, in response to
the insured's request, a temporary cover note containing the basic
conditions and requirements of this contract.
3. However, if the insured produces a receipt confirming payment of a
part of the insurance premium, he shall be empowered by all means of
proof that the contract has been concluded even though he has not
received a temporary cover note.
Article 775
It is not permissible to invoke against the insured the conditions
relating to invalidity, forfeiture unless they are prominently
highlighted by printing or to arbitration unless they are mentioned in a
special separate agreement from the general conditions.
Article 776
The condition stipulating the forfeiture of the insured's right by reason
of delaying the reporting of the accident by the insured to the
authorities or in the submission of the document where it is proved by
the circumstances that the delay is attributed to an acceptable excuse.
Article 777
Any of the following conditions included in the policy shall be
deemed null and void:
1. The condition which excludes from the scope of insurance the
business activities that contravene the laws and regulations unless the
exclusion is specific.
2. Every arbitrary condition that is found that its breach has had no
effect upon occurrence of the insured risk

Article 778
Excluding insurance contracts concerning which a particular provision
is mentioned in the law, both the insurer and insured may where the
insurance term is more than five years request the termination of the
contract upon the expiry of every five years of its term if a notice with
acknowledgment of receipt is given to this effect to the other party at
least six months prior to the expiry of such term. This particular
provision shall be stated in the insurance policy.
Article 779
Excluding insurance contracts concerning which a particular provision
is mentioned in the law, a highlighted clause in the policy may
provide for agreeing on the extension of the insurance contract
automatically if the insured fails at least thirty days prior to the expiry
of its term to give notice to the insurer expressing his desire not to
extend the contract. Such extension shall only apply from year to year,
and any agreement for extending the insurance for a longer period
shall be deemed null and void.
Article 780
1. A request sent by the insured by a registered letter with note of
delivery to the insurer for the extension, amendment of the contract or
rendering it effective after ceasing to be valid, shall be deemed
accepted if the insurer does not reject such request within twenty days
from the date of the arrival of the letter thereto.
2. However, if the insurer's decision is dependent upon a medical
check-up or if the request relates to increasing the insured amount, the
insurer's express approval shall be the decisive factor in this respect.
II: Obligations of the Insured
Article 781
The insured shall undertake the following:
1. To clearly mention at the time of concluding the contract all the
circumstances of which he is aware and which are important for the
insurer to know to enable the latter to assess the risks assumed. Facts

which the insurer makes subject to specific written questions shall be

of particular significance.
2. To notify the insurer of any circumstances occurring during the
continuance of the contract so as to result in increasing the risks when
he becomes aware thereof, unless otherwise provided by law in
respect of the type of insurance.
3. To pay the insurance premiums on the due date.
4. To proceed with notifying the insurer of every incident that is likely
to render the insurer liable.
Article 782
1. An insurance contract shall be voidable in favour of the insurer if
the insured remains silent in respect of a certain matter or submits an
improper statement that is likely to change the issue of the risk or its
significance is undermined in the insurer's opinion.
2. If the truth is revealed before occurrence of the risk, the insurer
may request the invalidation of the contract ten days after the date of
giving notice to the insured by a registered letter unless the latter
accepts an increase of the premium proportionate to the increase in
risk. In such case, invalidation of the contract shall result in the
insurer's refund of the insurance consideration or the proportion
thereof for which no risk has been assumed.
3. However, if the truth is revealed after occurrence of the risk, the
insured amount shall be reduced pro rata the premiums which have
actually been paid to the level of premiums which must have been
paid had the risks been properly declared to the insurer.
Article 783
1. Excluding insurance contracts covered by a special provision in law,
if the insured risks increase, the insurer may notify the insured as
indicated in the preceding article that the contract is terminated,
except if the insured accepts, during the period fixed by the insurer, to
pay an insurance consideration increase proportionate to the emergent
increase in risks.

2. The insurer may not, however, invoke the increase in risks, if he,
having become aware thereof in any way, expressed his desire to
continue the contract, or continues to receive the premiums, or if he
pays the compensation after the insured risk has occurred.
Article 784
The insurance contract shall remain effective without any increase in
the consideration thereof if the risk occurs or if there is an increased
risk of its occurrence:
1. as a result of an action intended to protect the insured's interest, or
2. as a result of acts done for a humanitarian duty or for realizing the
public interest.
Article 785
If the determination of the insurance consideration takes into account
such considerations as the increase in the insured risk, then such
considerations ceased to exist or their significance is reduced during
the continuance of the contract, the insured shall have the right
notwithstanding any agreement to the contrary to request the
termination of the contract without claiming any compensation or to
request a reduction of the agreed insurance consideration for the
subsequent period to the extent of the elimination of such
considerations according to the applicable insurance tariff on the date
of concluding the contract
Article 786
1. The first insurance premium shall be payable at the time of
concluding the contract unless otherwise agreed. An insurance period
means the period for which the premium is calculated. In case of
doubt, the insurance period shall be one year.
2. The insured who has delivered the insurance policy before payment
of the first premium may not invoke what is stated in this policy with
respect to postponing the effectiveness of the contract to a date
subsequent to the payment of such premium.

Article 787
1. Unless otherwise agreed, insurance premiums, except for the first
premium, shall be paid at the insured's domicile. However, the
premium shall be payable at the insured's domicile if the insured
delays payment thereof after giving him notice to this effect.
2. Any condition that premiums must be paid at the insurers
management office shall be invalid if it is proved that the insurer
usually receives he premiums at the insureds domicile.
Article 788
1. If one of the premiums is not paid on its due date, the insurer may
give notice by registered letter with recorded delivery to the insured
requiring payment of the premium and informing him of the
consequences arising from delay in payment.
2. The notice given shall result in interrupting the prescribed period of
prescription of the claim for premium payment.
Article 789
1. Excluding the special provisions relating to insurance contracts, if
the insured fails to pay the premium despite having been given notice
to this effect, the insurance contract shall cease to be effective after
the expiry of thirty days from the date of notice.
2. The insured may after the expiry of thirty days from the date of
cessation request a judgment for implementing or terminating the
contract.
3. If the outstanding premiums and any due expenses are paid before
termination, the contract shall become effective from the beginning of
the day following the date of payment.
4. Any agreement exempting the insurer from giving notice to the
insurer or reducing the time limits provided for in the above
Paragraphs 1 and 2, shall be null and void.

III: Obligations of the Insurer

Article 790
Upon occurrence of the insured risk or if the date fixed in the contract
falls due, the insurer shall pay the payable insured amount within 30
days from the date on which the entitled person submits the necessary
details and documents confirming his right
Article 791
In insurance against damages, the insurer shall compensate the insured
against damages arising from the occurrence of the insured risk,
provided that such compensation shall not exceed the insured amount.
Article 792
1. If there are several insurance contracts in respect of a single item or
a single interest without any intent of fraud, whether they take place
on a single date or on different dates, at amounts the total of which are
in excess of the value of the insured item or interest, each insurer shall
be liable to pay a part of the compensation equivalent to the
proportion of the insured amount to the total amount of the insurances
but the total amount reinsured shall not exceed the value of the
damages suffered by him.
2. If one of the insurers is declared insolvent, the others shall assume
his share each pro rata the insurance amount assumed, provided that
the total payments to be made by them shall not exceed the amount
for which he took the insurance.
3. It is permissible to agree on dividing the liability between the
insurer and the insured on another basis.
Article 793
1. In insurance against damages, the insurer shall legally replace the
insured, on the ground of compensation paid, in the claims that the
insured may have against the person who is legally liable for the
insured damages, unless this person is a relative or an in-law of the
insured sharing with him the same household or a person for whose
acts the insured is liable.

2. The insurer shall be discharged of liability towards the insured for

all or some of the insured amount if novation is impossible due to a
reason attributed to the insured.
Article 794
In all cases where the insurer re-insures with third parties the insured
risks, the insurer shall remain solely liable towards the insured or the
beneficiary.
IV: Transfer and Lapse of Rights and Obligations Arising from
Insurance Contract
Article 795
1. Rights and obligations arising from an insurance contract shall be
transferred to whoever acquires title to the insured property upon
disposal thereof. In case of the insured's death, such rights and
obligations shall be transferred to his heirs subject to complying with
the inheritance provisions.
2. However, the insurer and the persons to whom title has been
transferred or have acquired title by way of inheritance may
unilaterally terminate the contract by sending a registered letter with
acknowledgment of receipt to the other party.
3. Then, the insurer shall have the right to exercise its right of
termination within 30 days from the date on which the person
acquiring the title by inheritance is notified to transfer the insurance
policy.
Article 796
If the ownership of the insured property is transferred, the person to
whom it has been transferred shall remain liable for payment of the
due installments and shall be discharged from liability for future
premiums with effect from the date on which the insurer is notified by
a registered letter of the occurrence of the action resulting in transfer
of such ownership.

Article 797
If there are several heirs or assignees and the insurance contract
becomes applicable to them, they shall be jointly liable for payment of
the premiums.
Article 798
1. If the insured property is encumbered by a mortgage,
hypothecation or any other pledge, such rights shall be
transferred to the compensation payable to the debtor pursuant
to the insurance contract.
2. If such rights are registered or declared to the insurer even by
virtue of a registered letter, it may not pay the amount owed to
the insured except with the creditors' consent.
3. If an attachment is placed upon the insured property or if it is
seized, the insured shall not where a declaration is made thereto
as indicated in the preceding paragraph pay anything owed to
the insured.
Article 799
1. If the insured is declared bankrupt before the expiry of the contract
term, the insurance shall remain valid in favour of the group of
creditors which becomes directly indebted to the insurer for the total
premiums that become due from the date of handing down the
judgement for declaration of bankruptcy. Each of the two sides shall
have the right to terminate the contract within a three-month period
commencing from such date. In case of termination, the insurer shall
refund to the group of creditors that part of the premium in respect of
which no risk has been assumed.
2. If the insurer is declared bankrupt, the contract shall cease to be
effective from the date of handing down the judgement for
adjudication of bankruptcy. The insured shall have the right to a
refund of the part of the premium that he may have paid for the period
of the contract's cessation without prejudice to the provisions relating
to life insurance.

Article 800
1. Cases arising from the insurance contract shall not be heard
upon the lapse of three years from the occurrence of the
incident from which such cases arise unless the law otherwise
provides. However, this time limit shall not be applicable:
(a) In case of withholding information relating to the insured
risk or providing untrue or inaccurate details about such
risk except from the date on which the insurer becomes
aware thereof.
(b) In case of the occurrence of the insured accident except
from the date on which the concerned persons became
aware of its occurrence.
(c) When insured's cause of action against the insurer arises
from recourse by third parties except from the date of
filing the legal action by such third party against the
insured or from the date on which the third party
receives compensation from the insured.
Article 801
1. No agreement may be entered into with respect to the nonapplicability of the provisions set forth in this Chapter or the
alteration thereof unless that is in the interest of the insured or
the beneficiary.
2. However, no agreement may be concluded on extending the
prescribed time limit for non-hearing of the cases indicated in
the preceding Article or reducing them even if this is in the
interest of the insured or the beneficiary.
Article 802
The provisions in this chapter shall apply to all types of insurance,
without prejudice to any special legislation regarding any type.

V: Fire Insurance
Article 803
803. The insurer shall be responsible for all damages arising from the
fire or from the start of a fire that can become a complete fire or for a
fire risk that can occur.
2. The insurers liability shall not be limited to the damages arising
directly from the fire but also covers the damages that arise as an
inevitable result thereof, particularly the damages caused to insured
property by reason of using methods of rescue or of prevention of the
extension of fire.
3. The insurer shall also be liable for loss or disappearance of insured
items during the fire unless it proves that this has taken place as a
result of a theft.
Article 804
The insurer shall ensure providing compensation for the damages
arising from the fire even if such fire arises from a defect in the
insured property.
Article 805
1. The insurer shall be liable for damages arising from an inadvertent
fault of the insured and shall also be liable for damages arising from a
sudden accident or a force majeure.
2. As for losses and damages caused by the insured deliberately or
fraudulently, the insured shall not be liable therefor even if there is an
agreement to the contrary.
Article 806
The insurer shall be liable for damages caused by persons for whom
the insured is liable irrespective of the nature or extent of their fault.

Article 807
If a fire insurance contract is concluded in respect of the insureds
movables as a whole, its effect shall extend to the things owned by his
family members and his servants, if they share the same household.
Part V : Suretyship
Chapter I: Elements of Suretyship
Article 808
Suretyship is a contract whereby a person guarantees the performance
of an obligation by giving an undertaking to the creditors to fulfil such
obligation should the debtor fail to do so.
Article 809
Suretyship can only be established by writing, even if the principal
obligation can be established by oral evidence.
Article 810
If a debtor undertakes to offer a surety, he is bound to produce a
solvent person residing in Qatar or an adequate real security instead of
the surety.
1.
If the surety is declared insolvent after conclusion of the
suretyship contract or if he does not have a domicile in Qatar any
more, he shall offer another surety or adequate real security.
Article 811
Suretyship may be given without the knowledge and even in spite of
the opposition of the debtor.
Article 812
1. Suretyship may be entered into in respect of a future debt, if the
amount for which the guarantee is given is fixed beforehand.
Suretyship may also be entered into in respect of a conditional
liability.
2. A surety, however, who has given his guarantee for a future
debt, but has not fixed the duration of such guarantee, may

revoke his guarantee at any time provided that the guaranteed

debt has not been created.
Article 813
1. Suretyship is valid only if the obligation to which it applies is
valid.
2. If the suretyship is given because of the debtor's lack of
capacity, the surety is bound to perform the obligation if the
guaranteed debtor fails to do so himself.
Article 814
1. Suretyship cannot be entered into in respect of a sum greater
than that due by the debtor, nor can it be subject to more
onerous conditions than the debt guaranteed.
2. Suretyship may be entered into in respect of a smaller sum and
subject to less onerous conditions
Article 815
A surety shall include the guaranteed obligation and its related
elements. It shall also include the expenses of the first claim and
whatever other costs arising after giving notice to the surety unless
there is agreement to the contrary.
Article 816
1. Suretyship entered into in respect of a commercial debt is
deemed to be a civil act, even if the surety is a trader.
2. The suretyship resulting from backers' signatures and
endorsements on negotiable instruments is always deemed to be
a commercial act.
Chapter II: Effects of Suretyship
(A) Surety-Creditor Relationship
Article 817
A surety is discharged simultaneously with the debtor.

Article 818
1. A surety is entitled to avail himself of all the defenses that are
open to the debtor.
2. The surety may not, however, raise defense based on the debtors
lack of legal capacity, if the surety was cognizant thereof at the
time of conclusion of the contract.
Article 819
When the creditor has accepted a thing of another kind in payment of
the debt, the surety is discharged, even if the thing given in payment is
revendicated unless the creditor has maintained the right of recourse
against the surety.
Article 820
1. A surety is discharged to the extent of the value of any
warranties which the creditor has lost by his own fault.
2. The warranties referred to in this Article are the securities
assigned to guarantee the debt, even if they were provided after
the suretyship was entered into; also any securities provided in
accordance with the law.
Article 821
1. A surety is not discharged merely by reason of the creditors
failure in taking proceedings or of the creditors delay in taking
proceedings.
2. However, if the surety gives notice to the creditor by a
registered letter for taking proceedings against the debtor, the
surety may request a discharge if the creditor does not take
proceedings against the debtor within six months from the date
of the summons served on him by the surety, unless the debtor
himself provides an adequate guarantee to the surety.
3. A surety may invoke his discharge if the creditor gives a grace
period to the debtor without the suretys consent.

Article 822
When a debtor becomes bankrupt, the creditor is bound to prove his
debt in the bankruptcy, under penalty of being deprived of his remedy
against the surety to the extent of the loss suffered by the surety as a
result of the creditor's failure to prove his debt.
Article 823
1. When there are several sureties for the same debt and the same
debtor by one contract and it does not provide for their joint and
several liability, the debt is apportioned between them unless
the contract determines his share in the suretyship.
2. If several sureties have undertaken to guarantee the same debt
by successive contracts, each surety is liable for the whole debt,
unless he has reserved the right to apportion the liability
amongst the co-sureties.
Article 824
A creditor shall not have the right to take proceedings against the
surety alone, unless he has first taken proceedings against the
debtor. He may only levy execution on the property of the
surety after he has distrained all the property of the debtor
unless the surety is jointly liable with the debtor.
In both cases, it is for the surety to claim this right.
Article 825
1. When a surety demands that the debtor's property shall first be
distrained, he must at his own expense indicate to the creditor
property of the debtor sufficient to satisfy the whole debt.
2. Property so indicated by the surety will not be taken into
account if it is situated outside Qatari territory, or if it is the
subject of a dispute.

Article 826
When the surety has indicated property belonging to the debtor, the
creditor will be responsible to the surety for the debtor's insolvency if
the creditor fails to take the necessary proceedings in due time.
Article 827
When a real security is assigned either by law or by agreement as
guarantee of a debt, and suretyship is also entered into subsequently or
at the same time, without a stipulation that the surety is jointly and
severally liable with the debtor, the surety's property can only be
seized and sold after the real security assigned as guarantee has been
realized.
Article 827
1. A creditor is bound to hand over to the surety at the time of
discharge of the debt, all documents that are necessary to enable
him to exercise his right of action.
2. When the debt is secured by a pledge of a movable or by a right
of retention on a movable, the creditor must surrender such
securities to the surety or to a justice officer if the debtor
objects to the surrender thereof.
3. However, when the debt is secured by a charge on real property,
the creditor must comply with the formalities required for the
transfer of such security. The expenses of such transfer shall be
borne by the surety, subject to the right of action against the
debtor.
Article 829
A surety may be guaranteed by another surety. In such a case, the
creditor may not call upon the principal surety's guarantee until he has
taken action against the principal surety, unless the two sureties are
themselves jointly and severally liable.

Article 830
Judicial and legal sureties are always jointly and severally liable.
Article 831
A surety who has jointly and severally guaranteed the debtor may
avail himself of all defenses which a surety who is not jointly and
severally liable may invoke with regard to the debt.
Article 832
When there are several sureties jointly and severally liable, a surety
who has paid the whole debt on maturity may call upon each of the
other sureties to pay his share of the debt as well as a proportional part
in the share of any joint and several surety who is insolvent.
2. Surety-Debtor Relationship
Article 833
1. A surety must give the debtor notice before paying, on pain of
forfeiture of his right of action against the debtor, if the latter
has himself paid the debt or has grounds, at the date of maturity,
for having the debt declared void or extinguished.
2. If the debtor does not object to the payment, the surety retains
his right of action against him, even though the debtor had
himself paid the debt or had grounds for having the debt
declared void or extinguished.
Article 834
1. A surety who has paid the debt has a right of action against the
debtor whether the suretyship was entered into with or without
the knowledge of the debtor.
2. This right of action includes the right to claim the capital
amount of the debt, interest and expenses. The surety, however,
only has a right of action in respect of those expenses which he
has incurred from the date he has notified the principal debtor
of the proceedings taken against him.

Article 835
A surety who has paid the debt is subrogated to all the rights of the
creditor against the debtor; if however, he pays only part of the debt,
the surety can only exercise such rights in respect of that part he has
paid after the creditor has recovered from the debtor the whole of the
debt due.
Article 836
When there are several debtors jointly and severally liable for one and
the same debt, a surety who has guaranteed them all, has a remedy
against each of them for all that he has paid in respect of the debt.
Section II: Rights in rem
Book I: Principal rights in rem
Part I: Right of Ownership
Chapter I: General Provisions
Subsection I: Scope of Right of Ownership
Article 837
The owner of a thing has alone, within the limits of the law, the right
to use, enjoy and dispose of it.
Article 838
In the absence of a provision of the law or of an agreement to the
contrary, ownership carries with it the right to all fruits, products and
accessories of the thing owned.
Article 839
1. The ownership of land includes that which is above and below,
as far as it can be usefully enjoyed in height and depth.
2. The ownership of the surface of the land may, by law or by
agreement, be separated from that which is above it and that
which is below it.

Article 840
No one can be deprived of his property except in the cases and in the
manner provided for by law and upon payment of fair compensation.
Subsection II: Restrictions on the Right of Ownership
Article 841
1. The owner must not exercise his rights in an excessive manner
detrimental to his neighbor's property.
2. The neighbor has no right of action against his neighbor for the
usual unavoidable inconveniences resulting from neighborhood,
but he may claim the suppression of such inconveniences if
they exceed the usual limits, taking into consideration in this
connection custom, the nature of the properties, their respective
situations and the use for which they are intended. A license
issued by a competent authority is not a bar to the exercise of
such a right of action.
Article 842
1. An owner whose land is cut off from, or has no adequate exit
on to, a public road, shall, if he cannot obtain an exit to the
public road without great expense or great difficulty, have a
right of way over the neighboring land as may be necessary for
the normal working and use of his land and as long as his land
continues to be so cut off, subject to payment of fair
compensation. This right of way must be exercised over land
and at the place where the passage causes the least possible
damage.
2. If the land is cut off from the public road as a result of the
property having been divided in consequence of a legal
disposition, and it is possible to provide an adequate right of
way over parts of the land so divided, the right of way can be
claimed only over those parts.

Article 843
Every owner has the right to compel his neighbor to place boundary
marks along the boundaries of their adjoining properties.
Article 844
1. An owner of a party wall has the right to make use of it for the
purpose for which it was intended and to use it for the support
of beams to carry his own roof, provided that the wall has not to
support too great a weight for its strength.
2. When a party wall becomes unfit for the purpose for which it is
normally intended, the cost of repairs or reconstruction will be
borne by the co-proprietors in proportion to their respective
shares.
Article 845
1. An owner may, if he has good reason to do so, heighten a party
wall, provided that he does not thereby cause serious prejudice
to his co-owner. He alone must bear the cost of heightening as
well as of the maintenance of the part so heightened and carry
out the necessary work, so that the wall may support the extra
weight due to the heightening without its strength being
diminished.
2. If the party wall is not able to support the heightening, the coowner who desires to heighten the wall must reconstruct the
wall entirely at his own cost, in such a way as the thickening
shall, as far as possible, abut on his side. The reconstructed wall
remains, apart from the heightened parts, a party wall, but the
neighbor who has re-heightened the wall cannot claim any
compensation whatever.
Article 846
A neighbor who has not contributed to the expenses of heightening
may become a co-proprietor of the heightened part if he pays half the
cost thereof and the value of half of the ground covered by the
increased thickness, if any.

Article 847
In the absence of proof to the contrary, a wall which at the time of its
construction separated two buildings is deemed to be a party wall up
to the point at which it ceases to be a common wall to the two
buildings.
Article 848
1. An owner cannot compel his neighbors to walk in his property
or to assign to him part of a wall or of the land on which the
wall is constructed, except in a case provided for in Article 816.
2. An owner of a wall may not, however, demolish the wall on his
own initiative if the demolition injures his neighbor whose
property is closed in by it, unless he has good reason for so
doing.
Article 849
A landlord shall not have access to his neighbors property except
within the limits prescribed by law.
Article 850
1. If a contract or a will contains a clause stipulating the
inalienability of a property, such a clause will only be valid if
based on a legitimate reason and limited to a reasonable
duration.
2. The reason is deemed to be legitimate if the inalienability is
stipulated with a view to protecting a lawful interest of the
person disposing of the property or of the person in whose favor
the property is disposed of, or of a third party.
3. A reasonable duration may extend for the life of the person
disposing of, or the person in whose favor the property is
disposed of, or of a third party.

Article 851
1. When the clause as to inalienability in the contract is valid and
where the person subject to such clause acts violation thereof,
the person laying down the condition and the person in whose
favour it is made may act with a view to invalidating such
disposal.
2. However, a disposal that is contrary to the clause shall be valid
if it is ratified by the person introducing it unless the clause is
introduced in favour of a third party.
Subsection III: Joint Ownership
A. Provisions relating to Joint Ownership
Article 852
When two or more persons are owners of the same thing but their
respective shares are not divided, they are co-owners and, in the
absence of proof to the contrary, their shares are deemed to be equal.
Article 853
1. Every co-owner in common is the absolute owner of his share.
He may alienate his share and collect the fruits thereof and
make use of his share provided he does not injure the rights of
the other co-owners.
2. If, however, the alienation relates to a specific part in the
property held in common, and such part does not come within
the share of the settler when a partition is made, the right of the
acquirer is transferred to the part that has devolved on the
settler as a result of the partition with effect from the moment of
the alienation. If the acquirer did not know that the settler was
not the owner of the specific part of property which he has
alienated, he shall have the right to demand the cancellation of
the alienation.

Article 854
In the absence of an agreement to the contrary, the management of a
property held in common belongs jointly to all the owners in common.
Article 855
1. The majority of co-owners shall, on the basis of the value of their
shares, shall have the right to undertake ordinary acts of management.
Such majority shall be entitled to appoint from amongst the Partners
or others a manager who shall undertake the management. They shall
also draw up the rules governing such management.
2. The decisions adopted by the majority shall be applicable upon all
the Partners including their successors in title whether such successors
in title are universal or particular.
Article 856
If the majority provided for in the preceding Article is not available,
the Court may upon the request of any partner take the necessary
measures deemed necessary or in the general interest. If required, it
may appoint a manager of the jointly owned property.
Article 857
A co-owner who conducts the management of the joint property,
without any objection being raised by the other co-owners, is
considered to be their mandatory. If the majority raise an objection,
such acts of management shall not be effective towards the remaining
co-owners.
Article 858
1. Co-owners who possess at least three quarters of the property in
common may decide, with a view to obtaining greater
enjoyment of the property, to make essential modifications or
changes, in the use for which the property was intended, which
exceed the normal scope of management, provided that these
decisions are notified to the other co-owners. Dissenting coowners have a right of action in the Courts within two months
from the date of notification.

2. The Court before which such an action is brought may, if it

approves the decision taken by the majority, also order
measures of expediency. The Court may, in particular, order
that security be given to the dissenting co-owners so as to
guarantee any compensation that may become due to him.
Article 859
Every co-owner may also, even without the consent of the other coowners, take measures necessary for the preservation of the property
in common.
Article 860
In the absence of any provision to the contrary, the cost of the
management of a property held in common, as well as the cost of its
preservation, the taxes payable thereon, and all other charges resulting
from the common holding or connected with the property held in
common, shall be borne by all the co-owners each proportionally to
his share.
Article 861
Co-owners who possess three-quarters at least of the property held in
common may decide to alienate the property, provided that their
decision is founded on serious grounds and that the decision is
notified to the other co-owners. A dissenting co-owner has a right of
action before the court within a delay of two months from the date of
notification. The court will decide, in accordance with the
circumstances, in a case where the partition of the property held in
common is contrary to the interests of the co-owners, whether the
alienation of the property should be carried out.
Article 862
1. A co-owner of a movable or of a property consisting of
movables and immovables may, before partition, repurchase
any undivided share which has been sold by another co-owner
to a third person. Such repurchase must be made within a delay
of thirty days from the day on which he had knowledge of the

sale or from the day on which the sale was notified to him. The
right of repurchase is exercised by means of a summons
notified to both the vendor and the purchaser. The co-owner
who has repurchased the share sold will be subrogated into all
the rights and obligations of the purchaser if he compensates
him for all that he has spent.
2. If several co-owners exercise their right to repurchase, each of
them shall have the right to repurchase a part proportional to his
share.
B. Cessation of Joint Ownership by Partition
Article 863
1. Every co-owner may demand the partition of property held in
common, unless he is bound to remain a co-owner in common by
reason of a provision of the law or of an agreement. It is not
permitted, by a legal disposal, to prohibit partition for a period
exceeding five years. When the period stipulated does not exceed
five years the agreement shall bind a co-owner and his successors
in title.
2. However, the Court may upon an application from one of the coowners order that the joint ownership be maintained for a
subsequent term after the conditional duration once it is felt that
the urgent partition is detrimental to the co-owners interests.
Further, it shall be empowered to order partition prior to the
expiry of the conditional duration if it finds a strong reason
justifying such action.
Article 764
1. Unless there is a provision of the law to the contrary, co-owners
may, if they are all in agreement, divide the property held in common
in whatever manner they deem fit.
2. If one of them is subject to legal incapacity, absent or missing, the
formalities laid down by law in this respect will have to be observed.

Article 865
1. Partition by agreement may be rescinded if one of the copartitioners succeeds in proving that he has been injured to the
extent of more than on-fifth of his share, on the basis of the value
of the property at the time of the partition.
2. The action for rescission must be commenced within the year
following the partition.
3. The defendant can stop the action and prevent the new partition,
by giving the plaintiff the amount by which his share is short in
money or in kind.
Article 866
1. If co-owners are not in agreement as regards the partition of the
property held in common, the co-owner who wishes to
withdraw from the joint ownership shall summon his co-owners
to appear before the Summary Court.
2. The court shall delegate, if need be, one or more experts to
proceed with the valuation of the property held in common and
to divide it into separate parts if the property can be divided
into separate parts in kind without materially decreasing its
value.
Article 867
1. The partition shall be on the basis of the smallest share, even where
the partition is only a partial one.
2. Each co-owner shall be allotted his share if the co-owners so agree
or if the partition cannot be effected on the basis of the smallest share.
3. If one of the co-owners cannot obtain all his share in kind, he shall
be compensated by the person who obtains the biggest share by
making payment equal to the shortage in his share.
Article 868
1. Upon the disputes being disposed of and the separate lots
allocated directly, the Summary Court will give judgment

allocating to each owner the divided part which devolves on

him.
2. If there has been no direct allotment of the separate lots, the
partition of the property will be effected by drawing lots.
The court will draw up a proces-verbal thereof and give
judgment allocating to each co-owner his divided part.
Article 869
1. When a property cannot be divided in kind or when such
partition involves a serious diminution in the value of the
property it shall be sold in the manner laid down by the
Code of Procedure.
2. Sale by auction will be restricted to the co-owners in
common if they ask for it unanimously, unless none of them
is imperfectly competent, or has a guardian or is proved to
be absent or lost.
Article 870
The personal creditors of any co-owner may oppose a partition in kind
or a sale by auction without their intervention in the proceedings.
Such opposition must be notified to all co-owners and has the effect of
compelling the co-owners to join the opposing creditors in every stage
of the proceedings: otherwise the partition will be without effect as
regards such opposing creditors. In any case, inscribed creditors must
be joined before an action for partition is introduced.
If the partition has already taken place, the creditors who have not
intervened cannot attack it unless there has been fraud.
Article 843
Each co-partitioner is deemed to have been owner of the part of the
property that falls to him from the day that he became co-owner in
common and never to have been owner of the other parts.

Article 872
1. The co-partitioners warrant each other against interference or
eviction due to a cause that existed previous to the partition.
Each one of them is liable, in proportion to his share, to
indemnify a co-partitioner entitled to such indemnity, on the
basis of the value of the property at the moment of partition. If
one of the co-partitioners happens to be insolvent, the share
falling on him will be borne by the co-partitioner entitled to the
indemnity and all the solvent co-partitioners.
2. No such warranty, however, exists when there is an express
agreement waiving the warranty in the particular case which
would have given rise to the warranty. The warranty also ceases
to be binding if the eviction is due to a fault of the copartitioner himself.
C. Provisional Partition
Article 873
1. By a provisional partition, co-owners agree to allot to each
other the enjoyment of a divided part of the property equal to
each of their shares in the property held in common in
consideration of a renunciation in favor of each other of the
right of enjoyment of the other parts. Such an agreement cannot
be entered into for a duration of more than five years.
2. If no duration has been fixed, or the agreed period has expired,
and no new agreement has been entered into, the period of the
provisional partition will be for a year renewable, unless one of
the co-owners gives notice of termination to his co-owners
three months before the end of the current year.
Article 874
If such a provisional partition remains in force for fifteen years it is
converted into a final partition, unless otherwise agreed by the coowners. If one of the co-owners remains in possession of a divided

share for fifteen years, such possession is presumed to have taken

place as a result of a provisional partition.
Article 875
A provisional partition also takes place when the co-owners agree that
each of them shall, the one after the other, enjoy all the property held
in common for a period corresponding to his share.
Article 876
1. The co-owners may agree, during the process of a final partition, to
enter into a provisional partition. Such provisional partition will
remain in force until the conclusion of the final partition.
2. If the co-owners cannot reach an agreement for a provisional
partition, such a partition may, upon the application of one of the coowners, be ordered by the Summary Judge upon the advice, if
necessary, of an expert.
Article 877
A provisional partition is governed, as regards its validity as against
third parties, the capacity of co-partitioners, their rights and
obligations, and means of proof, by the provisions of the law relating
to contracts of lease, in so far as they are not incompatible with the
nature of such a partition.
D. Obligatory Joint Ownership
Article 878
The co-owners of a property held in common cannot demand its
partition if it follows, from the use to which the property is intended,
that it should always remain in common. Likewise, he may not
dispose of his share in a manner that is contrary to the object thereof.
E. Family Joint Ownership
Article 879
The members of the same family who have a common occupation or
interest may agree in writing to create a family joint ownership. This

joint ownership consists either of an inheritance which the members

of a family agree to leave wholly or partly in joint ownership or of any
other property belonging to them which they agree to place in family
joint ownership.
Article 880
1. A family joint ownership may be created by agreement for a period
not exceeding fifteen years. Each one of the co-owners may, however,
if there are serious grounds to do so, apply to the court for authority to
withdraw his share of the joint property before the end of the agreed
term.
2. When no period is fixed for such joint ownership, each one of the
co-owners may withdraw his share after six months from the day he
gives notice to this effect to the other co-owners
Article 881
1. Co-owners cannot demand partition so long as the family joint
ownership continues, and no co-owner can dispose of his share
in favor of a person who is not a member of the family without
the consent of all the co-owners.
2. If a person who is not a member of the family acquires, as a
result of a voluntary or forced alienation, the share of one of the
co-owners, he only becomes a partner in the family joint
ownership if he and the other co-owners consent thereto.
Article 882
1. Co-owners who own the majority in value of the shares, may
appoint amongst themselves one or more managers. Subject to
any agreement to the contrary, the manager may introduce such
changes in the intended use of the property held in common as
may ensure a better enjoyment of the property.
2. A manager may be discharged in the same manner as he was
appointed, notwithstanding any agreement to the contrary. The

court may also, upon the demand of any owner, discharge him
if there are serious grounds to do so.
Article 883
Subject to the preceding provisions, family joint ownership will be
governed by the provisions of the law relating to joint property and to
mandate.
F. Ownership of Floors and Apartments
Article 884
1. If the different floors or various apartments of a building belong
to different owners, such owners are considered co-owners of
the parts intended for common use, particularly:
a) The land upon which the buildings are erected, passages,
gardens and car parks.
b) Foundations, ceilings, floor supports and main walls.
c) Entrances, corridors, stairs and lifts.
d) Areas intended for the security guards and other workers
employed in the service of the building.
e) All kinds of pipes and apparatus except for these that are
inside one of the divided parts and its benefit is limited to
the co-owner of such part.
2. All the above shall be unless contradicted by the title deeds.
Article 885
1. These parts of the building whose benefit is limited to some owners
only shall be the common property of such co-owners.
2. In particular, the inner walls which separate two parts of the same
storey shall belong as common party property to the owners of these
two parts.

Article 886
The share of each owner in the common parts shall be in proportion to
the value of the divided part which he owns. The value of such part
shall be estimated on the basis of its area and location at the time of
constructing the building.
Article 887
The common parts shall not be divided. An owner shall not dispose of
a share thereof independently from the divided part he owns. Disposal
in respect of a divided part shall include the share of the party making
such disposal in the common parts.
Article 888
For the use of his divided part, each owner shall be entitled to use the
common parts for the purpose for which they are intended subject to
complying with the rights of other co-owners.
Article 889
1. No change may be made in the common parts without the consent
of all owners, even when the building is renovated.
2. Having obtained the consent of the owners owning the majority of
shares, each owner may, however, carry out, at his expense, a
modification to the parts held in common if this is likely to improve
the enjoyment of such parts without changing their intended use or
cause damage to the other owners. If such approval is not obtained,
he may apply to the Court seeking permission for carrying out the said
modification, unless otherwise required by law.
Article 890
No owner may do any act that is likely to threaten the safety of the
building nor alter its design or external appearance.
Article 891
1. Every owner must participate in the cost of the preservation,
maintenance, management and reconstruction of the parts held
in common each pro rata the share owned by each.

2. The share of every owner in the costs of common services

made to the benefit of some owners or where the enjoyment
thereof varies will be calculated in proportion to the value of
the benefit enjoyed by each storey or apartment.
3. All the above shall apply unless there is agreement to the
contrary.
Article 892
No owner may assign his share in the common parts
G. Association of Owners
Article 893
1. When a building, divided into floors or apartments, belongs to
several owners, such owners may form an association amongst
themselves.
2. An association may also have for its object the construction or
the acquisition of buildings with a view to allocating the
ownership of parts of such buildings to members of the
association.
3. The association shall have a juristic personality.
Article 894
The association may set a management system to ensure proper use
and management of the common property. The association shall invite
all owners by a registered letter with recorded delivery to attend the
meetings of the association, and pass its resolutions by a two-third
majority of share owners.
Article 895
In the absence of a management system, or if such system does not
provide for certain matters, the right to manage the parts held in
common shall belong to the association whose decisions shall be, in
this respect, binding, provided that all owners have been invited to
attend the meeting as set forth in the preceding article, and that the
decisions are passed by a two-third majority of share owners.

Article 896
The association may, with the consent of the majority prescribed in
the preceding article, take out collective insurances against risks to the
building or to the co-owners jointly and may authorize, at the expense
of the owners who so demand, all works or installations which
increase the value of all or part of the building, upon the conditions
and subject to such compensation and other obligations as may be laid
down by the association, in the interests of the co-owners.
Article 897
1. Any loan made by the association to one of the co-owners, in
order to assist him to carry out his obligations, will be secured
by a privileged charge on his divided part as well as on his
undivided share in the parts of the building held in common.
2. The rank of this privilege will date from its registration.
Article 898
1. A representative shall be appointed by the majority of the
owners, as provided for in Article 864, to carry out the
decisions of the association. If the required majority is not
obtained, a representative of the Association will be appointed,
at the request of one of the co-owners and upon the other
owners being called to give their views, by the President of the
Court of First Instance within whose jurisdiction the building is
situate. The representative of the Association shall, if need be,
upon his own initiative, take all necessary measures for the
preservation, protection and maintenance of all parts held in
common. He shall be entitled to call on any party concerned to
perform these obligations. These provisions shall apply in the
absence of any provision to the contrary in the rules of the
Association.
2. The representative of the Association shall represent the
Association before the courts, even against the owners if need
be.

Article 899
1. The remuneration of the representative of the Association will
be fixed in the decision or order appointing him.
2. The representative of the association may be discharged by a
decision taken by the majority of the co-owners, or by an order
of the President of the Court of First Instance, after the coowners have been summoned to be heard on the question of his
discharge.
Article 900
1. If the building is destroyed by fire or otherwise, the co-owners
are bound to conform to the decision of the association as to its
reconstruction taken by the majority.
2. If the association decides to reconstruct the building, any
amount due as compensation on account of the destruction of
the building shall, without prejudice to the rights of the
registered creditors, be set aside for the costs of reconstruction.
H. Lower Floors and Upper Floors
Article 901
1. The owner of a lower storey is bound to execute works and
repairs necessary to prevent the higher storey from falling.
2. If he refuses to execute the necessary repairs, the judge may
order the sale of the lower storey. In any case, the Judge des
Referes may order the execution of urgent repairs.
Article 902
1. If the building falls down, the owner of the lower storey is
bound to rebuild his storey, failing which, the judge may order
the sale of the lower storey, unless the owner of the upper
storey offers to rebuild the lower storey himself at the cost of
the owner of the lower storey.
2. In this latter event, the owner of the upper storey may refuse to
allow the owner of the lower storey to occupy or make use of

his storey until he has repaid the amount of his debt. He may
also obtain authority to let or to occupy the lower storey in
repayment of the amount due to him.
Article 903
The owner of the upper storey shall not heighten the building in such
a way as to injure the lower storey.
Subsection I: Acquisition of Ownership (by Appropriation)
Article 904
Whoever takes possession of a movable which has no owner, with the
intention of its appropriation, acquires the ownership thereof.
Article 905
1. A movable is deemed to have no owner when its owner abandons
possession of it with the intention of renouncing his ownership thereto.
2. Animals, other than domestic animals, are deemed to have no
owner as long as they are at liberty. If one of such animals, after
losing its liberty, regains its freedom, it becomes without an owner if
the owner does not seek for it immediately or ceases to seek for it.
3. An animal that has become tame and is accustomed to return to the
same place becomes again without an owner if it loses this habit.
Article 906
As regards a buried or hidden treasure to which no one can establish
ownership, one fifth thereof shall belong to the founder while the
remainder shall be belong to the owner or the bare owner of the
property on which it is discovered. A treasure discovered on a wakf
property shall belong to the founder of the wakf or his heirs.
Article 907
Rights of fishing and hunting and rights to things found and to
antiquities are governed by special legislation.
Article 908
Any ownerless property shall belong to the state.

Subsection II
Acquisition of ownership among living persons
Accession
Article 909
All buildings, plantations and other works existing above or below the
ground are deemed to have been carried out by the owner of the land
at his own expense and belong to him unless otherwise proved.
Article 910
1. Constructions, plantations and other works carried out with
materials belonging to another, become the exclusive property
of the owner of the land when the removal of these materials is
not possible without seriously damaging the works, or even
when it is possible to do so but proceedings to recover the
property are not commenced within one year from the date on
which the owner of the materials knew of their incorporation in
the works.
2. When the owner of the land acquires the property of the
materials, he must pay their value together with an indemnity,
if indemnity is due. When, however, the owner of the materials
recovers the materials, their removal must be affected at the
cost of the owner of the land. In both cases, the owner of the
materials shall be entitled to claim compensation if justified.
Article 911
1. When a third party caries out works with his own materials on
land which he knows is not his property, without the consent of
the owner of the land, the owner of the land may, within a year
from the day on which he learns of the execution of the works,
demand either their removal at the cost of the third party who
erected them, together with an indemnity, if indemnity is due,
or their retention against payment of their break-up value or of
a sum equal to the increased value they have given to the land.

2. A third party who carried out the works may claim the right to
remove them if he does not cause any damage to the land in so
doing, unless the owner of the land chooses to keep the works
in accordance with the provisions of the preceding article.
Article 912
1. If the third party who carried out the works mentioned in the
preceding article honestly believed that he was entitled to do so,
the owner of the land has not the right to demand their removal,
but he may, at his option, and provided the third party does not
claim their removal, pay the third party either the value of the
materials and the cost of the work or a sum equal to the
increased value that the works have given to the land.
2. If, however, the works are so extensive that the payment of the
amount due in respect thereof is onerous for the owner of the
land, he may claim the conveyance of the ownership of the land
to the third party against payment of adequate compensation.
Article 913
The provisions of the preceding article shall apply if a third party
constructs facilities using materials of his own procurement without
permission of the land owner, unless otherwise agreed.
Article 914
1. If without the consent of other partners a partner constructs
works for himself on a divided part of a jointly owned land, he
shall be the exclusive owner of such works if he is allocated
this part upon division.
2. If the part whereon works have been constructed is allocated to
another partner, this partner may not demand removal of such
works. If the owner of works does not demand the removal
thereof, he shall pay to the relevant partner either of the values
provided for in clause (1) of article (912).

Article 915
The Court may, upon an application by whoever is liable to pay a
consideration or compensation according to the preceding four articles,
decide what it deems fit for amount of the judgement. In particular, it
may judge that payment be made by regular installments provided that
adequate securities are submitted.
Article 916
If during the construction of a building on his own land, an owner
encroaches in good faith on part of an adjoining land, the court may,
within its discretion, compel the owner of the adjoining land to
transfer to his neighbor the ownership of that part which is occupied
by the building, against payment of adequate compensation.
Article 917
1. If a third party carries out building works, plantation or
construction works with materials belonging to another party,
the owner of the materials can claim compensation from the
third party, and also from the owner of the land up to the
amount remaining due by him in respect of the value of the
works.
2. If the works of building, plantation or construction are carried
out by the said third party in good faith, the owner of the
materials may demand the removal thereof without causing any
damage to the land.
Article 918
If movables belonging to different owners are attached so as the
removal thereof cannot take place without causing damage and if
there is no agreement between the owners, the Court shall rule in
respect of this matter taking into account the damage that occurred,
condition of the parties and good or bad faith thereof.

Legal Acquisition
Article 919
The ownership of movables and immovables and other real rights are
transferred by contract, when the contract refers to an object
belonging to the person disposing of it, in accordance with Articles
(246) and (247).
Preemption
Article 920
Preemption is the opportunity that a person has to substitute himself in
a sale of immovable property in the place of the purchaser, in the
cases and subject to the conditions laid down in the following articles:
Article 921
The right of preemption belongs to:
1. the bare owner, in the case of a sale of all or part of the usufruct
attached to a bare property;
2. the co-owner in common, in case of a sale to a third party of a
part of the property held in common;
3. the usufructuary, in case of a sale of all or part of the bare
property which produces his usufruct;
4. in case of hekr, to the bare-owner if the sale relates to the right
of hekr; and to the beneficiary of the hekr if the sale relates to
the bare property; and
5. the neighboring owner in the following cases:
a) in the case of buildings or building land whether situated in a
town or in a village;
b) if the land enjoys a right of servitude over the land of a
neighbor, or if a right of servitude exists in favor of the land
of a neighbor over the land sold; and
c) if the land of a neighbor is adjacent to the land sold on two
sides and the value is at least half of the value of the land sold.

Article 922
1. When several persons preempt, the right of preemption will be
exercised in the order set out in the preceding article.
2. If several persons of the same degree exercise the rights of
preemption, the right of preemption will belong to each one of
them in proportion to his share.
3. If a purchaser is, in accordance with the provisions laid down in
the preceding article, entitled to exercise the right of preemption,
he will be preferred to other preemptors of the same degree or of a
lower degree, but those of a higher degree will have priority over
him.
Article 923
1.

Preemption cannot be exercised:

a) if the sale is made by public auction in accordance with the
procedure prescribed by law;
b) if the sale is made between ascendants and descendants,
between spouses or between relatives to the fourth degree, or
between relatives by marriage to the second degree; and
c) if the sale is made for using the property sold as, or annexing it
to a place of worship.

2.

No wakf nazir or beneficiary may exercise the right of

preemption unless the wakf founder so permits for annexing the
property subject of the preemption right to wakfs.
Article 924

If a person acquires a property which may be subject to preemption

and sells it prior to the transcription of the intentions to exercise
preemption, preemption can only be exercised against the second
purchaser and subject to the conditions on which he has purchased the
property.

Article 925
If the property is sold to several persons as a common property, it may
be subject to preemption only when it is complete. If the contract
specifies their respective divided shares, the preemptor shall be
entitled to claim the property upon completion, or the share of one
partner or more, subject to the rules governing the exercise of
preemption.
Article 926
1.

Both of the vendor and the purchaser may serve the preemptor a
formal notice of sale.

2.

The notice must contain the following details, failing which it

shall be invalid:
A. The respective names, titles and domiciles of the vendor and
the purchaser.
B. An adequate description of the object of sale.
C. The price, formal expenses and conditions of sale.
Article 927
1. Whoever desires to exercise the right of preemption must, on
pain of forfeiture of his right, notify both the vendor and the
purchaser of his intention within a period of fifteen days from
the date of a formal summons served on him either by the
vendor or by the purchaser. This period is increased, if
necessary, by the time allowance for distance.
2. Notification of intention to exercise the right of preemption
must, on pain of nullity, be made through the court. It is not
valid as against third parties unless it is transcribed
Article 928

The preemptor shall, within thirty days from the date of notification of
his intention, bring a preemption case against the vendor and the
purchaser, after he has paid the price of sale in full to the treasury of

the court having within its jurisdiction the property, failing which he
shall forfeit the right of preemption.
Article 929
Without prejudice to the rules with regard to transcription, the
judgment which finally establishes the right to preemption will
constitute the title of ownership of the preemptor.
Article 930
1. The preemptor is, vis-a-vis the vendor, substituted for the
purchaser in all his rights and obligations.
2. The preemptor is not, however, entitled to benefit from
the delay granted to the purchaser for payment of the
price unless he obtains the consent of the vendor.
3. If, after preemption, the property is claimed by a third
party, the preemptor will only have a right of action
against the vendor.
Article 931
1. If, before the notification of preemption, the purchaser has built
or planted on the property preempted, the preemptor is bound,
at the option of the purchaser, to pay to the purchaser either the
amount spent by him or the amount of the increase in value of
the property as a result of such constructions or plantations.
2. When, however, such constructions or plantations have been
made after the notification of preemption, the preemptor may
claim their removal. If he prefers to retain them, he is only
bound to pay the expenses incurred by the purchaser, or the
excess in the property value arising from constructions.
Article 932
Mortgages and charges registered against the purchaser, and any sale
made by him and any real right granted by or registered against him
after the date of transcription of the notification of preemption, are not
valid as against the preemptor. Registered creditors, however, will

retain their rights of preference on that part of the price of the property
which reverts to the purchaser.
Article 933
The right of preemption is forfeited in the following cases:
1. if the preemptor renounces his right, even before the sale;
2. if four months have elapsed since the date of the registration of
the deed of sale; and
3. in all other cases prescribed by law.
Article 934
The right to pre-emption shall not be forfeited upon the death of the
pre-emptor but shall be transferred to his heirs.
Possession
Article 935
Possession is defined as the control by one person, personally or
through another person, of a material thing giving the impression that
he is the owner or holder of another right in kind to as to do the acts
normally done by the holder of title thereto.
Definition and Elements of Possession
Article 936
Possession by a third party or another public juristic person of a state
property or of a property endowed for charity, or of any right in rem
thereover shall not result except in the cases and on the conditions
prescribed by law.
Proof of Possession
Article 937
Possession does not result from acts that are done by permission or
merely tolerated.

Good and Bad Faith of Possessors

Article 938
Possession may be exercised by an intermediary, provided that he
exercises it in the name of the possessor and that his relationship to
the possessor is such that he is obliged to obey his instructions as
regards the possession.
Acquisition of Possession
Article 939
A person who lacks legal capacity or is imperfectly competent may
acquire possession by the intervention of his legal representative.
Loss of Possession
Article 940
No one possessing a property in the name of another person may
claim possession contrary to the title, whereupon he can not change on
his own for his own interest the cause of his possession, but such
cause can be changed by the act of another person or by the act of the
possessor if such person sets up an adverse claim against the owner; in
which case the cause of the new possession shall run only from the
date of such change.
Protection of Possession (Three Actions of Possession)
Article 941
Possession may not be based on intermittent acts. If is exercised by
duress, secretly or ambiguously, it shall not be effective against the
affected party, except from the time of cessation of such defects.
Acquisition of Fruits by Possession
Article 942
Present possession, whose existence can be proved to have existed at
an ascertained previous time, is presumed to have existed during the
intervening time unless the contrary is proved.

Recovery of Expenses
Article 943
Unless the contrary is proved, a person who possesses a right shall be
deemed the owner of such right.
Liability of Loss
Article 944
When several persons claim possession of the same right, the person
who has actual possession is presumed to be provisionally the
possessor unless it is established that he acquired possession in a
wrongful manner. The possessor of a right is presumed, until the
contrary is proved, to be the rightful owner.
Article 945
1. The possessor of a right who is unaware that he infringes the
right of another is presumed to be of good faith, unless his
ignorance was the result of a serious mistake.
2. If the possessor is a juristic person, it is the good or bad faith of
its representative that will be taken into account.
3. Unless the law provides to the contrary, good faith is always
presumed in the absence of proof to the contrary.
Possession of Movables
Article 946
1. The good faith of a possessor ceases only from such time as he
becomes aware that his possession infringes the rights of
another. Good faith ceases as soon as the defects of the
possession have been notified to the possessor in the writ by
which legal proceedings are commenced.
2. A person who has usurped the possession of another by
coercion is deemed to have acted in bad faith.

Article 947
Subject to proof to the contrary, possession continues to have the
same character that it had at the time it was acquired.
Article 948
Possession is transmitted with all its features to a universal successor
in title. When the original possessor was of bad faith, his success or in
title may, however, if he establishes his good faith, avail himself
thereof.
A successor in title holding under a special title may add to his
possession that of the original possessor for the legal effect of
possession.
Article 949
Possession is transmitted by a possessor to another person by mutual
agreement, without actual delivery of the thing which is the object of
possession being made, provided the person to whom the possession
has been transmitted is able to assume control of the right over the
thing forming the object of possession.
Article 950
Possession may be transmitted without actual delivery if the possessor
continues the possession on behalf of his successor in title or if the
successor in title continues the possession for his own account.
Article 951
The handing over of documents issued in respect of goods entrusted to
a carrier or deposited in store, is equivalent to the handing over of the
goods themselves. If, however, the documents are handed over to one
person and the goods to another, both being in good faith, the person
who receives the goods has the preference.
Article 952
A successor in title holding under a special title may add to his
possession that of the original possessor for the legal effect of
possession.

Article 953
Possession ceases when the possessor abandons his actual control
over the right or when he loses it in any other way.
Article 954
1. Possession does not cease if a temporary obstacle prevents the
possessor from exercising his actual control over the right.
2. However, possession does not cease if a temporary obstacle
prevents the possessor from exercising his actual control over
the right.
3. Possession ceases, however, if this obstacle continues for a
whole year and is the result of a new possession exercised
against the wish or without the knowledge of the possessor. The
period of one year runs from the moment from which the new
possession commences, if it takes place openly, or from the day
on which the former possessor knew of it, if it commences
secretly.
Article 955
A person who is in possession of an immovable and who loses
possession thereof may, during the year which follows his loss of
possession, claim to be reinstated in possession. If the loss of
possession was secret, the delay of one year commences from the
day on which the loss of possession is discovered.
A person who exercises possession on behalf of another person may
also claim to be reinstated in possession.
Article 956
A person losing possession after having been in possession for less
than a year, can claim to be reinstated if the person
dispossessing him has not a better possession than his own. The
possession is better if founded on a legal title. If neither
possessor has a title nor both possessors have titles of equal
value, the better possession is that which commenced first.

If the loss of possession takes place by violence, the possessor may

always claim restitution within a year following the loss of
possession.
Article 957
A person who has been dispossessed may take proceedings, within the
time allowed by law, for recovery of possession against the person
who has possession of the property of which he was dispossessed,
even if such person acted in good faith.
Article 958
A person who remains in possession of an immovable for a whole
year may, if he is disturbed in his possession, take proceedings during
the year which follows the disturbance for the discontinuance of the
disturbance.
Article 959
A person who remains in possession of an immovable for two
years may, if he has good grounds to fear disturbance as a result
of new works which threaten his possession, file proceedings
within the following two years, to order the suspension of such
works, provided that they have not been finished.
The Court may either stop or authorize the continuance of the
works. In both cases it may order the provision of an adequate
guarantee to cover compensation for damage caused by the
suspension
Article 960
A possessor acquires all fruits collected so long as he is of good
faith.
Natural or industrial fruits are deemed to be collected from the
moment that they are separated. Legal fruits are deemed
collected day by day. Obtaining the benefit is deemed
tantamount to receiving the legal fruits.

Article 961
A possessor in bad faith is responsible for all the fruits that he has
collected or that he has failed to collect, from the moment he became
of bad faith. He may, however, claim refund of his expenses in
connection with the production of the fruits.
Article 962
1. The owner to whom the property is restituted must pay to the
possessor all expenditure of a necessary kind that he has
incurred.
2. The provisions of Articles (912) and (913) shall apply as
regards expenditure of an advantageous kind.
3. If the expenditure is of a luxurious nature, the possessor cannot
claim repayment of any of such expenditure. He may, however,
remove works he has made, provided he restores the property to
its original condition, unless the owner prefers to keep the
works upon payment of their break up value.
Article 963
The owner to whom the property is restituted must refund to the
possessor who took possession from a previous possessor, the
expenditure incurred by such possessor within the limit that the owner
is obliged to pay according to the preceding Article.
Article 964
The court may, at the request of the owner, select the method which
he considers suitable for the repayment of the expenses referred to in
the two preceding articles. It may also order repayment by periodical
installments, provided that the necessary security is supplied.
Article 965
1. A possessor in good faith who has enjoyed the thing in
accordance with his presumed rights, is not liable to pay any
compensation on this account to the person to whom he must
restitute the thing.

2. He is only liable for the loss or deterioration of the thing up to

the amount of profit he has received in consequence of such
loss or deterioration.
Possession serves as evidence of Ownership
Article 966
In respect of a person possessing a property or a movable as an
apparent owner or as an owner of another real right, his possession
shall be evidence of his ownership of this right, and he shall be
awarded a supporting judgment, in case of denial by another party
claiming this right for himself, even if the reason for acquisition is not
mentioned.
Article 967
The provisions of the preceding article shall apply to any property
classified as a state wakf if the possession thereof lasts thirty three
years.
Article 968
In case of denial, any action for an inheritance right shall abate upon
elapse of thirty three years.
Article 969
Rules of prescription applicable to the necessary period fixed for
deeming possession as evidence of ownership shall apply, as far as
such rules are not contrary to the nature of possession, in respect of
calculation, interruption and agreement for the amendment of such
period.
Article 970
1. A person in possession of a movable, of a real right over a
movable or of a bearer warrant by virtue of a just title becomes
the owner thereof if he was of good faith at the moment he
acquired possession.
2. If he enters into possession in good faith and by virtue of a just
title, in the belief that the thing is free of charges and

encumbrances, he acquires the thing free of such charges and

encumbrances.
Article 971
Subject to proof to the contrary, mere possession is a presumption of a
just title and good faith.
Article 972
1. A person who has lost or has been robbed of a movable or a
bearer warrant, can, within three years from the date of the loss
or the theft, bring an action to recover it from a third party in
possession, even if such third party is of a just title and good
faith.
2. When the thing lost or stolen is found in possession of a third
party who bought it on the market, at a public sale or from a
merchant selling similar articles, such third party is entitled to
recover from the person claiming restitution the price he paid
for the thing.
Section III: Acquisition of Ownership by Death
Inheritance & Liquidation of Estate
Article 973
The establishment of the heirs or their hereditary shares and of the
devolution of the property of the estate on them is governed by the
provisions of Islamic Sharia and relevant laws.
Article 974
1. In the absence of the appointment of a testamentary executor by
the deceased, the court may, at the request of an interested party,
if it considers it necessary to do so, appoint as administrator of
the estate a person chosen unanimously by the heirs. In the
absence of such unanimity, the court will, after having heard the
heirs, choose an administrator, if possible from among the heirs.
2. Special provisions shall apply if none of the heirs is a child en
ventre sa mere incompetent, imperfectly competent or absent.

Article 975
1. A person appointed administrator may decline to act or may,
after having acted as administrator, renounce the appointment
in accordance with the provisions of the mandate.
2. The court may also, for adequate reasons, either at the request
of any of the interested parties or of his own initiative,
discharge an administrator and replace him by another.
Article 976
1. The appointment of a testamentary executor by the deceased
must be confirmed by the judge.
2. The rules applicable to an administrator of an estate apply
equally to a testamentary executor.
Article 977
1. The greffier of the court must enter, day by day, the court
orders as to the appointment of administrators and the
confirmation of testamentary executors, in a public register,
recording the names of the deceased person in accordance with
the form prescribed for alphabetical indexes. He must enter in
the margin of the register all orders of revocation and all
renunciations.
2. The entry of the order as to the appointment of an administrator
will, as regards third parties dealing with the heirs in connection
with immovable property belonging to the estate, have the same
effect as the entry provided for in Article 1012.
Article 978
1. An administrator shall, upon his appointment, take possession
of the property of the estate and proceed with the winding up of
the estate under the control of the court. He may apply to the
court for remuneration commensurate with the duties performed
by him.

2. The estate shall bear the costs of the winding up. These costs
will have a privilege in the same preferential rank as legal
expenses.
Article 979
The court must, at the request of any interested party or on its own
initiative, take, if need be urgent, necessary measures for the
preservation of the property of the estate. The court may, in particular,
order that the property be placed under seal and that cash, securities
and articles of value be placed in deposit.
Article 980
The administrator must immediately pay, out of the assets of the estate,
burial and funeral expenses in accordance with the social standing of
the deceased. He must also obtain an order from the judge of
summary matters authorizing him to make, pending the final winding
up, an adequate alimentary allowance to such heirs as were supported
by the deceased and to deduct such payments from the share in the
estate of each heir to whom such alimentary allowance is made.
Taking inventory of the estate
Article 982
No heir may prior to receiving the allotment certificate provided for
in article (999) dispose of the assets of the estate, or demand any
debts due to the estate or create a debt against it by way of set-off for
a debt owed by it.
Article 983
1. An administrator is bound, during the winding up, to take the
necessary measures to preserve and administer the property of
the estate. He must also represent the estate before the courts
and proceed with the recovery of debts due to the estate.
2. An administrator is, even if he is not remunerated, responsible
to the same extent as a paid mandatory. The judge may call on
him to render an account of his administration at periodical
intervals.

Article 984
1. An administrator must publish a notice calling on the creditors
and debtors of the estate to submit particulars of their claims
and of their debts within a delay of two months from the last
publication of the notice.
2. This notice must be posted on the main door of the residence of
the notice board of the court having within it jurisdiction the
last domicile of the deceased and the court having within its
jurisdiction all or some of estate property. The notice must also
be published in a daily newspaper.
Article 985
An administrator must, within four months from the date of his
appointment, file with the registry of the court a statement of the
assets and liabilities of the estate with an estimate of their value. He
must also, within the same time, inform every interested party by
registered letter of the filing of the statement. An administrator may
apply to the court for an extension of time, if this extension is justified
by circumstances.
Article 986
1. An administrator may employ, for the preparation of the
inventory and for the estimation of the value of the property of
the estate an expert or a person with the necessary special
experience.
2. An administrator must record claims and debts disclosed by the
papers of the deceased, shown in public registers or coming to
his knowledge in any other way. The heirs must also advise the
administrator of all debts and claims of the estate known to
them.
Article 987
Any person, including an heir, who fraudulently appropriates a part of
the assets of the estate, is liable to the penalties for misappropriation.

Article 988
Any dispute as to the accuracy of the inventory, particularly as regards
the omission of assets, claims or debts of the estate, or as to the entry
in the records, should be submitted to the court by petition at the
request of any interested party within the thirty days following the
notice of the filing of the inventory.
Discharge of the Debts of the Estate
Article 989
Upon the expiration of the delay fixed for the submission of disputes
arising on the inventory, the administrator will proceed upon the
authority of the court, with the payment of those debts of the estate
which are uncontested. Debts which are contested will be settled after
the final decision of the court on the litigation.
Article 990
In the event of the estate being insolvent or of the possibility of it
being insolvent, the administrator must suspend the discharge of any
debt, even uncontested, pending final decisions in respect of all
disputes arising as to debts of the estate.
Article 991
1. The administrator will discharge the debts of the estate with
funds derived from claims recovered, cash in hand, proceeds of
the sale of securities at market prices, proceeds of the sale of
movables and, if the funds so obtained are insufficient, with the
proceeds of the sale of immovable property of the estate.
2. The sale of movable and immovable property of an estate will
be made by public auction in the manner and subject to the
delays laid down for forced sales, unless all the heirs agree the
sale shall be carried out by negotiation or in any other manner.
If the estate is insolvent, the approval of all the creditors is also
necessary. The heirs are always entitled to take part in the
auction.

Article 992
The court may, at the request of all heirs, pronounce the immediate
exigibility of a debt not yet due for payment, and fix the amount
payable to the creditor.
Article 993
1. If the heirs do not unanimously agree to demand the immediate
exigibility of a debt not yet due for payment, the court will
proceed with the distribution of the debts not yet due for
payment and of the assets of the estate, so that each heir takes
from such debts and assets a portion corresponding to the net
value of his share in the inheritance.
2. The court will give each creditor of the estate an adequate
guarantee on a movable or immovable property, reserving,
however, to any creditor who had a special security that same
security. When this is not possible, even by additional security
given by the heirs on their own property, or by any other
arrangement, the court will charge all the estate assets to
provide such security.
3. In all these cases, if security has been given on a property and
has not already been registered, such security must be registered
in accordance with the provisions laid down as to the
publication of judgment charges on real property.
Article 994
Any heir may, after the distribution of the debts not yet due for
payment, pay the amount allocated to him before the due date.
Article 995
Creditors of the estate, whose debts have not been paid because they
were not shown in the inventory and were not secured by a charge on
the property of the estate, have no remedy against third parties who
have acquired, in good faith, a real right on this property, but have a
right of action against the heirs to the extent to which the heirs have
benefited.

Article 996
An administrator shall, after discharge of the debts of the estate,
proceed with the payment of the legacies and other charges.
Delivery and Division of the Estate Property
Article 997
The residue of the property of the estate, after settlement of the
liabilities, devolves on the heirs in proportion to their shares in the
inheritance.
Article 998
The heirs may, immediately upon the expiration of the period laid
down for disputes relating to the inventory of the estate, demand that
the property and money not requiring to be liquidated, or part thereof,
be delivered to them, by way of a provisional arrangement against
submission of a guarantee, or without a guarantee
Article 999
The court will give to each heir who produces a doctrinal notice, or
any other equivalent document as to the inheritance, a certificate
establishing his rights to the inheritance, the extent of his share therein
and the estate property devolving on him.
Article 1000
An heir may call upon the administrator to deliver to him his share in
the estate as a divided part, unless such an heir is obliged to remain an
owner in common by reason of an agreement or a provision of the law.
Article 1001
1. When a demand for division should be admitted, the administrator
will proceed with the division amicably, but this division will only
become final upon the unanimous approval of the heirs.
2. If the heirs do not unanimously approve the division, the
administrator must bring an action for the division in accordance with

the provisions of the law; the costs of this action will be charged to the
estate and deducted from the hereditary shares of the co-sharers.
Article 1002
The rules laid down for partition of property held in common,
especially those as regards warranty against disturbances and eviction,
lesion and the preferential rights of a partitioner, shall apply to the
division of estates, as well as the following provisions
Article 1003
In the absence of an agreement between the heirs as to the division of
family papers or articles having a sentimental value for the heirs
owing to their relationship to the deceased, the court shall order either
the sale of these articles or their allocation to one of the heirs, with or
without deduction of their value from his share in the estate, taking
into account both custom and the personal circumstances of the heirs.
Article 1004
If there is, amongst the property of an estate, an agricultural, industrial
or commercial enterprise constituting a distinct economic unity, it
must be allotted as a whole to such one of the heirs who applies for it
if he is the most capable of the heirs to carry on the enterprise. The
price of such an enterprise will be fixed in accordance with its value
and will be deducted from his share in the estate. If the heirs are all
equally capable of carrying on the enterprise, it shall be allocated to
the heir who offers the highest price, provided that this price shall not
be less than the price for similar enterprises.
Article 1005
If, at the time of division, a debt due to the estate is allocated to one of
the heirs, the other heirs are not, in the absence of an agreement to the
contrary, guarantors of the debtor, if he becomes insolvent subsequent
to the division.
Article 1006
A will dividing the property of the estate between the heirs of the
testator and setting out the share of each heir or of certain of the heirs

is valid. If the value of the share so given to one of them exceeds his
hereditary share, the excess is deemed to be a legacy by will.
Article 1007
A division deferred until after death may be revoked, and such
division shall become binding upon the death of the testator.
Article 1008
If such a division does not include all the property of the deceased at
the date of his death, that property which has not been included in the
division devolves in common on the heirs in accordance with the rules
as to inheritance.
Article 1009
If one or more of the contingent heirs included in the division
predecease the deceased, the divided part allotted to him or them
devolves in common on the other heirs in accordance with the rules as
to inheritance.
Article 1010
The rules governing division generally shall apply to divisions
deferred until after the death, with the exception of the rules relating
to cheating.
Article 1011
If the debts of the estate are not included in the division, or if these
debts are included and the creditors do not agree to the division, any
heir may, if these debts are not settled in agreement with the creditors,
call for a division of the estate in accordance with Article 895. In this
case, account must be taken, as far as possible, of the division made
by the deceased and the considerations which guided him as regards
such division.

Provisions Applicable to Estates that have not been Wound Up

Article 1012
When an estate has not been wound up in accordance with the
preceding provisions, the unsecured creditors of the estate may take
action, in respect of their claims or their legacies, on the immovable
property of the estate which has been alienated or which has been
charged with real rights to the benefit of third parties, provided that
they have recorded such claims in accordance with the provisions of
the law.
Wills
Article 1013
Wills are governed by the provisions of Islamic Sharia and by laws on
Wills.
Article 1014
1. Every legal disposition made by a person during an illness
immediately preceding his death, with the object of making a
gift, is deemed to be a testamentary disposition and must be
governed by the rules applicable to wills, no matter what
description has been given to such an act.
2. The heirs of the person who has made such a legal disposition
are the persons on whom falls the onus of proving that it was
made by the deceased during an illness immediately preceding
his death. This proof may be tendered in any way and the date
of the legal instrument establishing the disposition cannot be
invoked against the heirs, unless it is an established date.
3. If the heirs establish that the legal disposition was made by the
deceased during an illness immediately preceding his death, the
act is deemed to be a gift, (i.e. a testamentary disposition),
unless the beneficiary proves that the contrary was the case.
The above provisions are subject to any special provisions to
the contrary.

Part II
Rights ancillary to the right of ownership
Chapter I
Usufruct, Right of Use and Right of Occupation
1. Usufruct
Article 1015
1. The right of usufruct may be acquired by a legal disposition or
preemption, and its acquisition shall be deemed as evidence of
its ownership according to article (966).
2. Usufruct may be bequeathed by will to successive persons if
they are alive at the moment of the bequest; it may also be
bequeathed to a child en ventre.
Article 1016
The rights and obligations of a usufructuary are governed by the
conditions imposed by the deed by which the usufruct is created and
by the provisions contained in the following articles.
Article 1017
The fruits of the property which is subject to the usufruct revert to the
usufructuary, in proportion to the period of his usufruct, subject to the
provisions of paragraph 2 of Article (1023).
Article 1018
The usufructuary must use the property in the state in which he has
received it and according to the object for which it was intended;
he must observe the rules of good management.
The bare owner may object to any use of the property that is
unlawful or unsuitable to the nature of the property. If the
owner proves that his rights are endangered, he may demand
security and if the usufructuary does not provide such security
or if, in spite of the objections of the owner, he continues to use
the property unlawfully or in a manner unsuitable to its nature,

the judge may take the property from him and entrust it to a
third party for its management; the judge may also, in
circumstances of a serious nature, declare the usufruct
extinguished, without prejudice to the rights of third parties.
Article 1019
The usufructuary is liable, during the continuance of his enjoyment,
for all normal charges in respect of the property subject to the
usufruct and all expenses for repairs incidental to its
maintenance.
The owner is obliged to pay abnormal expenses and the cost of
heavy repairs which do not arise from any fault on the part of
the usufructuary, but the usufructuary is bound to pay to the
owner interest on the amount expended by him in this respect.
If the usufructuary has himself advanced the cost, he is entitled
to obtain repayment of the capital amount paid by him when the
usufruct terminates.
Article 1020
The usufructuary must preserve the thing with the usual diligence
of a normal man.
He is responsible for the loss of the property even through no fault
on his part, if he has delayed to restitute the property to its
owner after the termination of the usufruct.
Article 1021
The usufructuary must give notice to the owner without delay if the
property perishes, deteriorates or requires major repairs the cost of
which should be borne by the owner, or if it is necessary to take
protective measures against an unforeseen danger. The usufructuary
must also advise the owner if a third party claims to have a right over
the property.
Article 1022
1. When the property subject to the usufruct is a movable, an
inventory must be made thereof and the usufructuary must give

security in respect thereof; if no security is given, the movable

in question shall be sold and the proceeds invested in public
funds and the income thereof paid to the usufructuary.
2. A usufructuary who has given security may use such things as
are consumable provided that he replaces them when his
usufruct comes to an end. The usufructuary is entitled to the
natural increase of flocks and herds, after replacing therefrom
such animals as have perished accidentally or a force majeur
event.
Article 1023
The usufruct terminates at the end of the time for which it was
fixed. If no time is fixed, it is deemed to have been created for
the lifetime of the usufructuary. It ceases in any case upon the
death of the usufructuary even before the end of the fixed time.
When there are standing crops on the land which is subject to the
usufruct, at the end of the time fixed for the usufruct or upon
the death of the usufructuary, such land shall be left in
possession of the usufructuary or of his heirs until the crops are
ripe for harvesting, but the usufructuary or his heirs shall pay
rent for that period
Article 1024
Usufruct is extinguished by the loss of the property, but the usufruct is
transmitted to any property obtained in lieu of the property destroyed.
Article 1025
1. In case of denial, any action for a usufruct shall extinguish if
such usufruct has not been used for a period of fifteen years.
2. The use of the usufruct by one of the co-owners shall, in case
such usufruct is exercisable by several co-owners, interrupt the
prescription period for the other co-owners. Likewise, the
suspension of prescription period in favour of one of those coowners shall suspend it for the others.

The Right of Use and right of Occupation

Article 1026
Subject to the conditions laid down in the deed by which the right is
created, the extent of the right of use and of the right of occupation is
determined by the personal requirements of the beneficiary and of his
family.
Article 1027
The right of user and the right of occupation may only be transferred
to third parties by virtue of a formal provision to that effect or for
serious reasons.
Article 1028
Subject to the preceding provisions, the rules as regards the right of
usufruct apply to the right of user and to the right of occupation, if
they are not incompatible with the nature of these two rights
Chapter II
The Right of Hekr
Article 1029
Hekr is a contract granting the beneficiary a right in rem over a wakf
land to use it for erecting a building, cultivation or any other purpose
for a specific charge.
Article 1030
Hekr can only be concluded for reasons of necessity or expediency
and with the permission of the Court of First Instance in the district in
which the land or that part of the land which is most valuable is
situated. It must be established by virtue of a deed drawn up by the
President of the court, or by a judge or by a notary delegated by him
for the purpose, and must be published in accordance with the
provisions of real estate registration.

Article 1031
1.

Subject to the provision of clause (3) of article (1039), no hekr

right may be created over a non-wakf land.

2.

The provisions of the following articles, including the

determination of a ceiling hekr period, shall apply to all hekrs
even the existing hekrs on the date of application of this code.
Article 1032

No hekr may exceed sixty years. If a longer period is fixed, or if no

period is fixed, the hekr contract shall be deemed concluded for sixty
years.
Article 1033
1. No hekr may be concluded for a rent less than that paid for
similar lands.
2. This rent is increased or diminished at the rental value of
similar lands rises or falls by more than one fifth, provided that
eight years have passed since the last valuation.
Article 1034
1. The estimation of this rise or fall is made on the basis of the
rental value of the land at the time of valuation, taking into
account its marketable value and the demand for it, and
regardless of any constructions or plantations on it.
Improvements or deteriorations caused to the land or to the
value of the neighboring land by the grantee of the hekr, as well
as his surface rights over the land, should be disregarded
2. The new estimate applies only from the time agreed between
the parties, or, in the absence of an agreement, from the date of
the commencement of the legal proceedings.

Article 1035
The grantee of a hekr may dispose of his right; this right is
transmissible by inheritance
Article 1036
Constructions, plantations and other works carried out by the grantee
of the hekr belong to him absolutely. He may dispose of them
separately or together with the right of hekr.
Article 1037
1. A grantee of the hekr must pay the agreed rent to the grantor of
the
hekr.
2. Unless otherwise provided by the hekr contract, the hekr rent
shall be payable at the end of each year.
Article 1038
The grantee of the hekr must take the necessary measures to make the
land suitable for exploitation, taking into account the agreed
conditions, the nature of the soil, the use to which it is intended and
local custom.
Article 1039
1. The right of hekr terminates at the end of the period fixed.
2. The right terminates, however, before the end of the period
fixed, if the grantee of the hekr dies before having built on or
planted the land, unless all the heirs ask for the maintenance of
the hekr.
3. The right of hekr also terminates before the end of the period
fixed, if the land burdened with the hekr ceases to be wakf
property, unless this cessation results from the revocation of the
wakf or the reduction of the period of wakf by the founder, in
which case the hekr is maintained until the end of its period.

Article 1040
The grantor of the hekr may demand the resiliation of the contract if
the rent is not paid to him for three consecutive years.
Article 1041
1. In the absence of an agreement to the contrary, the grantor of
the hekr may, upon resiliation or termination of the contract,
claim either the removal of the buildings and plantations or
their maintenance against payment of the value of the buildings
and plantations in their existing state or their value if removed,
whichever is the lesser.
2. The court may accord the grantor of the hekr a time for
payment if exceptional circumstances exist that justify such a
delay, in which case the grantor must furnish security to
guarantee the payment of the amount due by him.
Article 1042
In case of denial, the action for a hakr right is extinguished by nonuser during a period of fifteen years, which period shall be thirty years
if the right of hekr is constituted in wakf.
Chapter III
Right to Servitude
Article 1043
Servitude is a right which limits the enjoyment of a property for the
benefit of another property belonging to another owner.
Article 1044
1. The right to servitude is acquired by a legal disposition,
preemption or by inheritance.
2. Possession is not deemed evidence of the right pursuant to
article (966) except in respect of apparent servitudes, including
the right of way.

Article 1045
1. Apparent servitudes may also be created by the intention of the
original owner.
2. An intention of the original owner is deemed to exist when it is
established, by any means of proof, that the owner of two
separate properties has made between the two properties an
apparent distinction, thereby creating a relationship of
subordination between them which would indicate the existence
of a servitude if the two properties belonged to different owners.
If, in such a case, the two properties pass into the hands of
different owners without any change in their condition, a
servitude is deemed, in the absence of a clear condition to the
contrary, to have been constituted to the benefit of or has as a
burden on the two properties respectively
Article 1046
1. In the absence of an agreement to the contrary, if specific
restrictions have been imposed limiting the right of the owner
of a property to build freely thereon, such as the prohibition to
build above a certain height or on an area in excess of a specific
area, such restrictions constitute servitudes which are burdens
one the property concerned in favor of properties to whose
benefit these restrictions have been imposed.
2. Any breach of these servitudes gives rise to a claim for material
redress. The court may, however, only grant damages if it
considers that there are reasons for so doing.
Article 1047
Servitudes are governed by rules laid down in the deed by which they
are created, by local custom and by the following provisions.
Article 1048
1. The owner of the dominant tenement is entitled to carry out any
works necessary to use and preserve his right of servitude; he
must use his right in the least harmful manner possible.

3. No requirements of the dominant tenement cannot entail any

increase in the burden of the servitude.
Article 1049
The owner of the servient tenement is under no obligation to carry out
work for the benefit of the dominant tenement, unless it is accessory
work necessitated by the normal use of the servitude.
Article 1050
1. Unless otherwise provided, the cost of the necessary works for
the use and preservation of the servitude must be borne by the
owner of the dominant tenement.
2. If the owner of the servient tenement is responsible for carrying
out these works at his own cost, he has always the right to free
himself of this burden by abandoning the servient tenement
wholly or in part to the owner of the dominant property.
3. If the works also benefit the owner of the servient tenement, the
cost of upkeep falls on the two parties in proportion to the profit
derived by each of them.
Article 1051
1. The owner of the servient tenement has no right to do anything
which will tend to diminish the use made of the servitude or to
make it more inconvenient.
2. When, however, the place originally fixed has become such as
to increase the burden of the servitude or to cause the servitude
to hinder the owner of the servient tenement making
improvements to the servient tenement, he may demand that the
servitude be transferred to another part of the property or to
another property belonging to him or to a third party who
consents thereto, provided that the owner of the dominant
tenement is able to exercise his rights of servitude in these new
conditions as easily as he was able to do before the change.

Article 1052
If the dominant tenement is divided, the servitude continues to benefit
each part thereof, provided that the burden on the servient property is
not increased.
If, however, the servitude only benefits one of the divided parts of the
dominant tenement, the owner of the servient tenement may demand
that it ceases as regards the other parts.
Article 1053
3. If the servitude tenement is divided, the servitude continues to
subsist in respect of each part thereof.
4. If, however, the servitude is not actually used and cannot be
used on certain of these divided parts, the owner of each of
them may demand that it ceases as regards the part belonging to
him.
Article 1054
Rights to a servitude cease to exist by the expiration of the period for
which they were created, by the total loss of the servient tenement or
of the dominant tenement and by the acquisition of the two properties
by the same owner; the rights to the servitude are, however, revived if
the two properties cease, with retroactive effect, to be held jointly by
the same owner.
Article 1055
1. The rights to servitude are extinguished by non-user for a
period of fifteen years; if the servitude is created for the benefit
of a wakf property, this period shall be thirty three years. The
manner of the exercise of a right of servitude may, as the
servitude itself, be modified by prescription.
2. The user of the servitude by one of the co-owners in common
of a dominant tenement interrupts the prescription in favor of
the other co-owners; in the same way, the suspension of

prescription in favor of one of these co-owners, suspends

prescription in favor of the others.
Article 1056
The servitude ceases to exist if conditions so change that the right can
no longer be used. The servitude is revived if conditions are
reestablished in such a way that the right can again be used, unless the
right of servitude has been extinguished by non-user.
Article 1057
The owner of a servient tenement may free himself wholly or partially
of the servitude, if the servitude has lost all its utility for the dominant
tenement or if its actual utility has been reduced out of proportion to
the burden imposed on the servient tenement.
Part I: Mortgage
Chapter I: Constitution of Mortgages
Article 1058
Mortgage is a contract by which a creditor acquires, over an
immovable appropriated to the payment of his debt, a real right by
which he obtains preference, over ordinary creditors and creditors
following him in rank, for the payment of his claim out of the price of
the immovable, no matter into whose hands the immovable has passed.
Article 1059
1. A mortgage can only be constituted by an authentic document.
2. The costs of this authentic document are, in the absence of an
agreement to the contrary, borne by the mortgagor.
Article 1060
1. The mortgagor may be the debtor himself or a third party who
consents to mortgage his property in the interests of the debtor.
2. In both cases, the mortgagor must be the owner of the
mortgaged property and must have legal capacity to dispose of
it.

Article 1061
1. If the mortgagor is not the owner of the mortgaged property, the
mortgage contract becomes valid if ratified by the true owner of
the property by an official deed. In the absence of ratification,
the mortgage is only effective from the time that the immovable
becomes the property of the mortgagor.
2. A mortgage on property in expectancy is void.
Article 1062
A mortgage constituted by an owner whose title to the property is
subsequently annulled, resiliated, abolished or ceases to exist for any
other reason, remains a valid mortgage in favor of the mortgagee
creditor if he has acted in good faith at the time of the conclusion of
the mortgage.
Article 1063
1. In the absence of any provision of the law to the contrary, a
mortgage can only be constituted on immovable property.
2. The mortgaged property must be marketable and capable of
being sold by public auction; it must be specifically and
precisely described both as regards its nature and situation, and
such description must be contained either in the deed
constituting the mortgage or in a subsequent authentic
document, otherwise the mortgage is void.
Article 1064
1. A mortgage extends to the accessories of the mortgaged
property which are considered to be immovable accessories..
2. In the absence of an agreement to the contrary and without
prejudice to the privileges of sums due to contractors or
architects, a mortgage includes particularly, buildings and trees
that exist in the mortgaged property at the time of the mortgage
or erected thereafter, servitudes and properties created by
allotment, all the improvements and other constructions in the
mortgaged property.

Article 1065
From the date of the transcription of the formal summons to pay, the
fruits and revenues of the mortgaged property shall be assimilated to
the immovable and distributed in the same way as the price of the
property.
Article 1066
The owner of constructions erected on land belonging to a third party
may grant a mortgage on these constructions. In such a case, the
mortgage shall have a preferential claim for recovery of his debt on
the price of the break up value of the constructions if they are
demolished, and on the compensation paid by the owner of the land if
he keeps the constructions in accordance with the rules of accession.
Article 1067
1. A mortgage granted by all the co-owners of an immovable held
in common remains effective whatever may be the ultimate
result of a partition of the immovable or if its sale by auction
owing to impossibility of partition.
2. If one of the owners grants a mortgage on his undivided share
or on a divided part of an immovable and, as a result of the
partition, a property other than the mortgaged property is
attributed to him, the mortgage will be transferred, with its
degree of priority, to a portion of this property equivalent in
value to the value of the property formerly mortgaged. This
portion will, upon petition, be fixed by an order of the judge.
The mortgagee shall be bound, within ninety days of the
notification of the transcription of the partition made to him by
any interested party, to proceed with a new inscription
describing the portion of the property to which the mortgage
has been transferred. The mortgage so transferred shall not have
any prejudicial effect on a mortgage already granted by all the
co-owners or on the privileges of co-partitioners.

Article 1068
A mortgage may be granted to secure a conditional, future or
contingent debt, and may also be granted to secure an opened credit or
the opening of a current account, provided that the amount of the debt
secured, or the maximum amount which such debt may attain, is fixed
in the mortgage deed.
Article 1069
In the absence of a provision of the law or of an agreement to the
contrary, every part of the mortgaged immovable or immovables shall
secure the whole of the debt, and each part of the debt is secured by
the whole of the mortgaged immovable or immovables.
Article 1070
1. In the absence of a provision of the law to the contrary, the
mortgage cannot be separated from the debt that it secures, but
depends both as regards its validity and as regards its extinction,
upon the debt itself.
2. If the mortgagor is a person other than the debtor, he may, in
addition to the defenses that are personal to him, avail himself
of those which belong to the debtor as regards the debt: he
keeps this right notwithstanding the renunciation of the debtor.
Chapter II: Effects of a Mortgage
Subsection I. Effects of a Mortgage as between the Parties
Article 1071
A mortgagor may dispose of the mortgaged property, but any disposal
of the property by him does not affect the right of the mortgagee
creditor.
Article 1072
The mortgagor may carry on the management of the mortgaged
property and collect the fruits thereof until such time as they become
incorporated in the immovable property.

Article 1073
1. A lease entered into by a mortgagor cannot have effect against a
mortgagee unless such lease has been given an established date
before the transcription of the formal summons to pay. A lease
that has not an established date before this transcription or that
has been entered into after the transcription of the summons,
without payment of the rent having been made in advance, will
not have effect as against a mortgagee, unless it may be
considered to fall within the category of acts of good
management.
2. If the duration of the lease entered into before the transcription
of the summons exceeds nine years, the lease has effect against
the mortgagee only for nine years, unless it was transcribed
before the inscription of the mortgage.
Article 1074
1. A receipt or an assignment of rent in advance for a period not
exceeding three years is not valid as against a mortgagee unless
it has an established date prior to the transcription of the
summons to pay.
2. If the payment of the assignment of rent is made for a period
exceeding three years, it will only be valid as against a
mortgagee if it has been transcribed before the inscription of the
mortgage. In default of such transcription the period will be
reduced to three years, subject to the provisions of the
preceding paragraph.
Article 1075
A mortgagor is the guarantor of the effectiveness of the mortgage. The
mortgagee may oppose any act or omission that appreciably
diminishes his security, and, in the case of emergency, take all
necessary preservative measures and claim from the mortgagor the
expenses incurred in this respect.

Article 1076
1. If the mortgaged property perishes or deteriorates by the fault
of the mortgagor, the mortgagee may either claim adequate
security or immediate payment of the debt.
2. If the loss or deterioration is not imputable to the mortgagor
and the mortgagee does not agree to leave his claim without
security, the debtor may either furnish adequate security or pay
the debt in full before it falls due. In the latter case, if the debt
does not carry interest, the mortgagee has only a right to an
amount equal to the amount of his claim less the interest
calculated at the legal rate from the date of payment to the date
of maturity.
3. In all cases, if acts are done which may result in the loss of or
deterioration to the mortgaged property, or which may render
the mortgaged property insufficient to secure the debt, the
mortgagee may apply to the judge to order the cessation of such
acts and the adoption of the necessary measures to avoid the
occurrence of the loss.
Article 1077
In the event of loss of or deterioration to the mortgaged property for
any reason whatsoever, the mortgage is transferred, in its order of
rank, to any right obtained as a result of such loss or deterioration,
such as compensation, monies paid on account of insurance or
payments on account of expropriation for public utility.
Article 1078
1. The mortgagee may recover his debt from the mortgaged
property according to the prescribed procedures.
2. 2. If the value of the property is insufficient for the debt, the
mortgagee may claim the balance from the mortgagors
property as an ordinary creditor.

Article 1079
1. If the mortgagor is a person other than the debtor, only the
mortgaged property, to the exclusion of his other property, may
be executed against and the mortgagor. He shall have no right
to demand expropriation unless there is an agreement to the
contrary.
2. Such mortgagor may avoid any proceedings against him by
abandoning the mortgaged property according to the procedure
and the rules laid down for the abandonment of an immovable
by a third party possessor.
Article 1080
Any agreement, even if entered into after the constitution of the
mortgage, which authorizes the creditor in case of non-payment of the
debt on maturity to acquire the mortgaged property at a fixed price,
whatever that price may be, or to sell the mortgaged property without
observing the formalities prescribed by law, is void.
Subsection II: Effects of Mortgage as Regards Third Parties
Article 1081
1. Subject to the provisions laid down for bankruptcy, a mortgage
shall be effective as against third parties only if it has been
inscribed before third parties have acquired real rights on the
property.
2. The assignment of a right secured by an inscription, the right
resulting from the legal or contractual subrogation into that
right and the assignment of priority in rank of an inscription in
favour of another creditor, are only enforceable as against third
parties if they are inscribed in the margin of the original
inscription.
Article 1082
Effects of inscription shall be restricted to the amount indicated in the
application of inscription or the amount secured by mortgage
whichever is lesser.

Article 1083
The prescription shall become void if not renewed within ten years
from the date of effectuation. If possible, the creditor may effectuate a
new prescription legally the rank of which shall start from the date of
effectuation. Any renewal shall have effect only for ten years from the
date of effectuation.
Article 1084
Renewing the transcription is compulsory even during execution
procedures over the mortgaged property, but it is not compulsory if
the right ceases or the property is purged, particularly if it is sold
judicially and the ten years period has elapsed.
Article 1085
Inscription shall not be struck off except by a final judgement or by
the consent of the creditor according to a written document.
Article 1086
If the striking off is cancelled, the original rank shall return to the
inscription, however, its cancellation shall have no retroactive effect
on the inscriptions and registrations made during the period between
the striking off and cancellation.
Article 1087
In the absence of an agreement to the contrary, the mortgagor shall
bear the cost of inscription, its renewal and its radiation.
I: Right of Preference
Article 1088
Mortgagees will be paid before unsecured creditors out of the
proceeds of sale of the mortgaged property, or out of any monies
obtained in substitution thereof, in the order of the rank of their
inscriptions, even when their inscriptions are entered on the same day.

Article 1089
A mortgage ranks from the date of its inscription, even if it secures a
conditional, future or contingent debt.
Article 1090
The inscription of a mortgage will have the effect of automatically
collocating and ranking with the mortgage debt the costs of the deed,
of the inscription and of the renewal.
Article 1091
A mortgagee may, within the limits of his secured debts, assign his
rank in favor of another creditor having a mortgage inscribed on the
same property. The defenses available against the first creditor, with
the exception of those connected with the extinction of his claim when
that extinction occurs after the assignment of the rank, can be raised
against the second creditor.
II: Right of Tracing
Article 1092
1. A mortgagee may, upon maturity of the debt, take proceedings
for the expropriation of the mortgaged property against a third
party holder, unless this third party holder chooses to pay the
debt, redeem the mortgage or abandon the property.
2. Any person is deemed to be a third party holder who acquires in
any way the ownership of the property or any other real right
over the property capable of being mortgaged, without being
personally responsible for the debt secured by the mortgage.
Article 1093
A third party holder may, upon maturity of the debt secured by the
mortgage, pay the debt and its accessories including the costs of
proceedings from the date of the formal summons, and will retain this
right up to the date of the sale by public auction. In such a case, he has
a claim for all he has paid against the debtor and against the former
owner of the mortgaged property. He may also be subrogated into the

rights of the creditor who has been paid in full, with the exception of
those rights relative to guarantees furnished by a person other than the
debtor.
Article 1094
A third party holder must maintain the inscription of the mortgage to
the benefit of which he is subrogated to the creditor, and renew it, if
necessary, until radiation of the inscriptions that existed, at the time of
the transcription of his title to the property.
Article 1095
1. If, by reason of his acquisition of the mortgaged property, the
third party holder is debtor of a sum due immediately for
payment and sufficient to satisfy all the creditors whose rights
are inscribed on the property, each one of the creditors may
compel him to pay his claim provided that his title deed to the
property has been transcribed.
2. If the debt owed by the third party holder is not yet due for
payment, or is less than the debts due to the creditors, or
different from them, the creditors may, if they are all agreed,
claim from the third party holder payment of what he owes, up
to the amount due to them, and payment will be effected in
accordance with the conditions on which he has agreed to pay
in his original undertaking, and at the time agreed upon for
payment.
3. In neither case can the third party holder avoid payment to the
creditors by abandoning the property, but when payment has
been made to the creditors the property is deemed to be free of
all mortgages and the third party holder has the right to call for
the radiation of the inscriptions existing on the property.
Article 1096
1. The third party holder who has transcribed his title to the
property may purge the property of any mortgage
inscribed before the transcription of his title.

2. He can exercise this right even before the mortgagees

have served upon the debtor a formal summons to pay, or
have served upon the third party holder any summons,
and he keeps this right up to the date of the filing in court
of the conditions of sale of the property.
Article 1097
If the third party holder decides to proceed with the purge of the
property, he must serve upon the inscribed creditors a letter by
registered mail together with an acknowledgement slip, containing the
following particulars:
1. An extract of his title deed, setting out the particulars, nature
and date of the act of disposition, full and precise description of
the property and particulars of its previous owner. If the
disposal is a sale, the price and its attachments should be
indicated.
2. The date and number of the transcription of his title in the Land
Registry.
3. A list of rights inscribed on the property before transcription of
his title. This list shall contain the date of the inscriptions, the
amount of the inscribed debts and the names of the creditors.
4. The sum at which he values the property. This sum must not in
any case be less than the sum remaining to be paid by the third
party holder on the price of the property if the act of disposition
was a sale.
Article 1098
The third party holder must, by the same summons, declare that he is
prepared to pay off the inscribed debts up to the amount at which he
has valued the property; his offer need not be accompanied by actual
production of the money but must be an offer of a sum payable in cash,
whatever may be the date at which the inscribed debts accrue due.

Article 1099
1. Every inscribed creditor and every surety of an inscribed
debt has the right to apply for the sale of the property which
the third party holder wishes to purge, provided that his
application is made within thirty days of the date of the last
registered letter accompanied by an acknowledgement slip.
2. The application shall be made by a registered letter
accompanied by an acknowledgement slip to the third party
holder and to the former owner. The applicant must deposit
in the Court Treasury a sum which is sufficient to cover the
cost of the sale by auction, but he shall have no right to a
refund of expenses advanced by him if no higher price than
that offered by the third party holder is obtained as a result
of the auction. The failure to comply with anyone of these
conditions entails the nullity of the application.
3. The applicant may not renounce his application without the
consent of all the inscribed creditors and all the sureties
Article 1100
When an application is made for the sale of a property, the formalities
laid down for compulsory expropriation must be followed. The sale
shall take place at the request of either the applicant or of the third
party holder, whoever shall have more interest in expediting the sale.
The applicant must mention in the notices of sale the price at which he
has valued the property.
Article 1101
If the sale of the property is not applied for within the period and in
accordance with the procedure laid down, the ownership of the
property, freed from all inscriptions, shall be vested finally on the
third party holder if he pays the sum at which he has valued the
property to the creditors whose rank entitles them to payment, or if he
deposits this sum at the Caisse of the court.

Article 1102
1. The abandonment of the mortgaged property is made by a
declaration submitted to the Registrar of the competent Court
of First Instance by the third party holder who must apply for
the entry of his declaration in the margin of the transcription of
the formal summons to pay and who must, within five days
from the date of the declaration, notify the abandonment to the
creditor who is conducting the proceedings of expropriation.
2. The party who has most interest to expedite the sale may apply
to the Judge des Referes for the nomination of a receiver
against whom the proceedings of expropriation may be taken.
The third party holder, if he applies, will be appointed receiver.
Article 1103
If the third party holder does not opt for payment of the inscribed
debts, the purge of the property or the abandonment of the property,
the mortgagee can only take expropriation proceedings against him, in
accordance with the provisions of the Code of Procedure, after he has
summoned him to pay the debt accrued due or to abandon the property.
This summons shall be notified after or at the same time as the
summons to pay is served on the debtor.
Article 1104
1. The third part holder who has transcribed his title deed and who
was not a party to the proceedings in which judgment was given
against the debtor to pay the debt may, if the judgment was
subsequent to the transcription of his title, raise the defenses
which could have been raised by the debtor.
2. He may, in any case, raise defenses which the debtor still has
the right to raise after the judgment
Article 1105
The third party holder may take part in the auction on condition that
he does not offer a price lower than the sum that he still owes on the
price of the property which is being sold

Article 1106
If the mortgaged property is expropriated, even after proceedings for
purge or abandonment have been taken and the third party holder
acquires the property at the auction, he will be deemed to be the
owner of the property by virtue of his original title deed and the
property will be purged of all inscriptions if he pays the price for
which he acquired the property at the auction or if he deposits the
price in the treasury of the court.
Article 1107
If, in the preceding cases, a person other than the third party holder
acquires the property at the auction, he will hold his right be virtue of
the judgment of adjudication from the third party holder
Article 1108
If the price at which the property is sold by auction exceeds the total
of the sums due to the inscribed creditors, the difference in excess
belongs to the third party holder; and the mortgagee creditors of the
third party holder may be paid out of this excess.
Article 1109
Servitudes and other real rights that the third party holder had on the
property before he acquired the property are re-vested in him.
Article 1110
The third party holder is liable to restitute the fruits of the mortgaged
property from the date he has been summoned either to pay or
abandon the property. If legal proceedings are abandoned within three
years, he has only to account for the fruits as from the day that a new
summons is served on him.
Article 1111
1. The third party holder has, against his preceding owner, a right of
action for warranty to the extent that a successor in title has against
the person from whom he has acquired the property.

2. The third party holder has also a right of action against the debtor
for payment of any sums paid to him, for any reason whatsoever, in
excess of the amount due by him in accordance with his title deed. He
is subrogated into the rights of the creditors discharged by him,
particularly into the guarantees furnished by the debtor, but not into
those furnished by a party other than the debtor.
Article 1112
The third party holder is personally liable towards creditors for any
deterioration caused to the immovable by his fault.
Chapter III: Extinguishment of Mortgage
Article 1113
The mortgage is extinguished when the secured debt is extinguished.
It is revived together with the debt if the cause by reason of which it
was extinguished disappears without prejudice, however, to the rights
acquired by a third party in good faith in the interval between the
extinguishment of the right and its revival.
Article 1114
When the formalities of a purge are carried out, the mortgage is
definitely extinguished even if the ownership of the third party holder
who proceeded with the purge disappears for any cause whatsoever.
Article 1115
When the mortgaged property is sold by public auction as a result of
compulsory expropriation proceedings taken against either the owner,
the third party holder or the receiver to whom the abandoned property
was delivered, the mortgage rights encumbering the property are
extinguished by the deposit of the purchase price or by payment
thereof to the inscribed creditors who, by virtue of their rank, are
entitled to receive payment of their claims out of that price.

Part II: The Constitution of a Judgment Charge

Article 1116
1. Every creditor who has obtained an enforceable judgment
rendered on the merits of the case in which the debtor is
condemned to a liquidated amount, may, if he is of good faith,
obtain as security for his claim in principal, interest and costs, a
judgment charge over the immovable property of his debtor.
2. He cannot, after the death of the debtor, obtain a judgment
charge on immovable property forming part of the estate.
Article 1117
A judgment charge cannot be obtained by virtue of a judgment
rendered by a foreign court or by virtue of an arbitral award until the
judgment or the award has been made enforceable.
Article 1118
A judgment charge may be obtained by virtue of a judgment
confirming a compromise or an agreement between the parties, but
not by virtue of a judgment rendered as to the validity of a signature.
Article 1119
A judgment charge can only be obtained on one or more specific
immovables belonging to the debtor at the time of the inscription of
this right and capable of being sold by public auction.
Article 1120
1. A creditor who wishes to obtain a judgment charge on the
immovable property of his debtor must submit an application to
the President of the Court of First Instance in the district in
which the immovable property on which he desires to obtain
the charge is situated.
2. An authenticated copy of the judgment or a certificate by the
greffier of the court containing the operative part of the
judgement must be annexed to this application which will
contain the following particulars:

a) the creditor's surname, first names, profession, actual

place of abode, and elected domicile within the town in
which the court is situated;
b) the surname, first names, profession and place of abode
of the debtor;
c) the date of the judgment and designation of the court that
rendered the judgment;
d) the amount of the debt. If the debt mentioned in the
judgment is not a liquid amount, the President of the
court may liquidate it provisionally and fix the amount
for which a judgment charge may be obtained; and
e) an exact and precise description of the immovable
properties, their situation, together with documents
establishing their value.
Article 1121
1. The President of the court will record his order for a judgment
charge at the foot of the application.
2. The President of the court should, however, in giving an order
for a judgment charge, take into consideration the amount of the
debt and the approximate value of the immovable properties set
out in the application, and should, if necessary, restrict the
judgment charge to some or one only of these immovables, or
to a part in an immovable if he considers that this is sufficient
to secure the principal of the debt, the interest thereon and the
cost thereof due to the creditors.
Article 1122
Upon the same day as the order authorizing the judgment charge is
rendered, the greffier of the court must notify it to the debtor, endorse
it on the authenticated copy of the judgment or on the certificate
annexed to the application for a judgment charge, and inform the
greffier of the court that has rendered the judgment so that he may

endorse the order on any other copy of the judgment or on any other
certificate that will be delivered to the creditor.
Article 1123
1. The debtor may lodge an appeal against the order authorizing
the judgment charge either before the judge who has given the
order or before the Court of First Instance.
2. An endorsement must be made, in the margin of the inscription,
of any order or of any judgment annulling the order which has
authorized the judgment charge.
Article 1124
If, either at the time of the application or as a result of an appeal by
the debtor, the President of the court rejects the application of the
creditor for a judgment charge, the creditor may appeal to the Court of
First Instance against the order rejecting the application.
Article 1125
If the debtor is insolvent at the time of the judgment charge, the
creditor having been awarded the judgment charge may not invoke it
even in good faith, prior to any other creditor having as established
right preceding the inscription of the judgement charge.
Article 1126
1. Any interested party may apply for the reduction of the
judgment charge to reasonable proportions, if the value of the
immovable properties charged therewith is in excess of the
amount which is sufficient to secure the debt.
2. The reduction of the judgment charge may be operated either by
way of restriction of the charge to one part of the immovable or
immovables on which it is inscribed or by the transfer of the
charge to another immovable the value of which adequately
secures the debt.

Article 1127
A creditor who has obtained a judgment charge has the same rights as
a mortgagee who has obtained a mortgage. Subject to any special
provision of the law, the judgment charge is governed by the same
provisions as a mortgage, especially as regards its inscription, its
renewal, its radiation, the indivisibility of the right, its effect and its
extinguishment.
Part III: Pledge
Chapter I: Creation of Pledge
Article 1128
Pledge is a contract by which a person undertakes, as security for his
debt or that of a third party, to hand over to the creditor or to a third
person chosen by the parties, a thing over which he constitutes, in
favor of the creditor, a real right, and by which the creditor is allowed
to retain the thing pledged until repayment of the debt and to obtain
payment of his claim out of the price of such thing, no matter in
whose hands it may be, in preference to unsecured creditors and to
creditors following him in rank.
Article 1129
Only movables or immovables which can be sold independently by
public auction may be the object of a pledge.
Article 1130
Pledges shall be governed by the provisions of Article (1061), (1062),
(1066), (1068) and (1070) relating to mortgages.
Article 1131
Common property may be pledged and the provisions of Article (1067)
shall be applicable to pledges.
Article 1132
A pledge extends to the accessories of the pledged property.

Article 1133
It is permissible to pledge a property as security for more than one
debt provided that the recipient of the property keeps it for the
creditors.
Chapter II: The Effects of Pledge
Article 1134
1. The pledgor is bound to deliver the thing pledged to the creditor
or to the third person chosen by the contracting parties to hold
the thing.
2. Provisions relating to the obligation as to delivery of a thing
sold apply to the obligation as to delivery of a thing pledged.
Article 1135
The pledge is extinguished if the thing pledged returns into the hands
of the pledgor, unless the pledgee proves that the return took place for
a reason that was not intended to extinguish the pledge, subject always
to the rights of third parties.
Article 1136
The pledgor guarantees the pledge and its efficacy. He must not do
anything which diminishes the value of the thing pledged or prevents
the creditor exercising his rights derived from the contract. The
pledgee may, in case of urgency, take at the cost of the pledgor all
necessary measures for the preservation of the thing pledged.
Article 1137
The provisions of Articles (1076) and (1077) relating to the loss or
deterioration of mortgaged property and to the transfer of the right of
the creditor to any rights or property that have replaced the mortgaged
property, apply to pledge.
Article 1138
If the pledgee takes delivery of the thing pledged, he must use for its
preservation and maintenance the care expected from a reasonable

person. He must answer for its loss or deterioration unless he can

show that they were due to a cause not imputable to him.
Article 1139
1. The pledgee may not derive any gratuitous advantage from the
thing pledged.
2. He must, in the absence of an agreement to the contrary, make
the thing pledged render all the fruits that it is capable of
producing.
3. The net revenue and the benefit that he obtains from the use of
the thing pledged, must be applied in reduction of the debt,
even before it falls due: such revenue or benefit shall be
imputed in the first place to expenses he has incurred for the
preservation of and repairs to the thing pledged, then to
expenses and interest, and then to the capital amount of the debt.
Article 1140
1. The pledgee shall manage the thing pledged and shall use in
such management the care expected from a reasonable person.
He may not, without the consent of the pledgor, change the
method of exploitation of the thing pledged and is bound to
advise the pledgor immediately of any matter that requires his
intervention.
2. If the pledgee misuses this right or is guilty of bad management
or gross negligence, the pledgor shall have the right to demand
that the thing pledged be placed in judicial deposit or to claim
restitution of the thing against payment of his debt. In the latter
case, if the secured debt is not subject to interest and is not yet
due for payment, the creditor will only be entitled to a sum
equal to the amount of the debt, less interest at the legal rate
from the date of payment to the date of maturity.
Article 1141

A pledgee must, upon receipt of his debt and the accessories, expenses
and compensation for losses attached thereto, restitute the thing
pledged to the pledgor.
Article 1142
The provisions of paragraph (1) of Article (1079) relating to the
responsibilities of a mortgagor who is not the debtor, and the
provisions of Article (1080) relating to appropriation in case of nonpayment and to sale without recourse to legal formalities, apply to
pledge.
Article 1143
The thing pledged must be held by the pledgee or by the third party
chosen by the parties to make the pledge valid as against third parties.
Article 1144
1. Pledge confers upon the pledgee the right to retain the thing
pledged against any other person, subject to the rights of third
parties which have been preserved in accordance with the law.
2. If a pledgee loses possession of the thing unknowingly or
against his will, he has the right to reclaim the thing from any
other person in accordance with the provisions of the law as to
possession.
Article 1145
A contract of pledge secures not only the capital of the debt, but also
and in the same rank:
1. expenses of a necessary kind incurred for the preservation of
the thing pledged;
2. compensation for losses resulting from defects in the thing
pledged;
3. the cost of the contract of loan, of the contract of pledge and of
its inscription if required and the costs incurred for the
enforcement of the pledge.

Chapter III: Termination of Pledge

Article 1146
A right of pledge is extinguished as a result of the extinguishment of
the secured debt: it is revived with the debt if the cause of the
extinguishment of the debt disappears, without prejudice to the rights
of third parties in good faith legally acquired in the interval between
the extinguishment and the revival of the right of pledge.
Article 1147
A right of pledge is also extinguished by one of the following causes:
1. the renunciation of the right by the pledgee if he has the legal
capacity to liberate the debtor of the debt. The renunciation may
result tacitly if the creditor voluntarily gives up the thing
pledged or if he agrees without reserve to its alienation. If,
however, the thing pledged is charged with a right in favor of a
third party, the renunciation of the pledgee is only valid as
regards such third party if such third party consents;
2. the union of the right of pledge and that of ownership of the
thing pledged in one and the same person;
3. the loss of the thing pledged or the extinguishment of the right
given in pledge.
4. If the property pledged is sold forcibly by public acution.
Chapter IV: Certain Kinds of Pledge
Subsection I: Pledge of an Immovable
Article 1148
A pledge of an immovable is only valid as against third parties if, in
addition to delivery of the pledged immovable to the pledgee, the
contract of pledge is inscribed. The provisions governing the
inscription of a mortgage apply to the inscription of pledge of an
immovable.

Article 1149
1. A pledgee of an immovable may lease the immovable to the
pledgor without the contract of pledge being less valid as
against third parties.
2. If the lease is agreed to in the contract of pledge, it must be
mentioned in the inscription of the pledge, but if the lease is
agreed to after the pledge, it must be noted in the margin of that
inscription. Notation is not necessary if the lease is tacitly
renewed.
Article 1150
1. A pledgee of an immovable must provide for the maintenance
of the immovable, pay the expenses necessary for its
preservation, the annual taxes and charges, and deduct the
amount of these expenses from the fruits he has collected or
obtain repayment from the price of the immovable in the rank
of privilege accorded by law to such expenses.
2. He may free himself of these obligations by abandoning his
right to the pledge.
Subsection II: Pledge of Movables
Article 1151
A pledge of a movable is only valid against third parties if, in addition
to the delivery of the movable pledged, it is constituted by a written
contract adequately setting out the amount of the secured debt and the
object of the pledge and having an established date. The rank of the
secured creditor will be fixed in accordance with such established date.
Article 1152
1. The rules relating to the effects of possession of material
movables and of bearer securities apply to the pledge of a
movable.
2. A pledgee in good faith may, in particular, avail himself of his
right of pledge even if the pledgor was not qualified to dispose

of the thing pledged. On the other hand, a third party holder in

good faith, even after the date of the pledge, may avail himself
of the right he has acquired over the thing pledged.
Article 1153
1. If the thing pledged appears to be in danger of perishing,
deteriorating or diminishing in value, to such an extent that
there is a danger that it will not suffice to secure the claim of
the pledgee, and the pledgor does not apply for the restitution of
the thing in exchange for another thing, either the pledgee or the
pledgor may apply to the judge for authority to sell the thing
pledged by public auction or at its value at the time on the stock
exchange or on the market.
2. The judge shall, when authorizing the same, make an order as
to the deposit of the price; in such a case the right of the
creditor is transferred from the thing pledged to the price
thereof.
Article 1154
If a suitable occasion presents itself for the sale of the thing pledged
and the sale is advantageous, the pledgor may, even before the
maturity of the debt, apply to the judge for authority to sell the thing.
The judge, when authorizing the sale, will fix the conditions and make
an order as to the deposit of the price.
Article 1155
The pledgee may, upon failure of payment of the debt, apply to the
judge for authority to sell the thing pledged by public auction or at its
value at the time on the stock exchange or on the market.
Article 1156
The preceding provisions apply, in so far as they are not incompatible
either with provisions of commercial laws or provisions relating to
institutions authorized to lend money on pledge, or with the laws and
regulations governing special cases as to the pledge of movables.

Subsection III. Pledge of Debts

Article 1157
1. A pledge of a debt is only valid as regards the debtor upon
notification to or acceptance by the debtor of the pledge.
2. The pledge is only valid as against third parties if the pledgee holds
the title of the pledged debt. The rank of the pledge is fixed as at the
established date of the notification or of the acceptance of the pledge.
Article 1158
Nominative bonds and bonds payable to order may be pledged in
accordance with the special procedure prescribed by law for the
transfer of such bonds, provided that it is stated that the transfer is
made by way of pledge; the contract of pledge is completed without
notification being necessary.
Article 1159
A debt that cannot be assigned or attached, cannot be pledged.
Article 1160
Payment, renewal, set off, joint liability or discharge of the pledged
debt shall not be effective against the Pledgee except with his
approval. Amendment of the debt that may cause damage to him shall
not be effective against him unless he accepts it.
Article 1161
1. In the absence of an agreement to the contrary, the pledgee has
the right to collect the interest on the pledged debt which falls
due after the constitution of the pledge. He has also the right to
collect periodical payments appertaining to the pledged debt
upon condition that he sets off the amounts so collected by him
first against expenses, then against the interest and then against
the capital of the debt secured by the pledge.
2. A pledgee is bound to look to the protection of the pledged debt.
If he has the right to collect any part of the debt without the
intervention of the pledgor, he is bound to collect such part of

the debt at the time and place fixed for payment and
immediately inform the pledgor thereof.
Article 1162
The debtor of a debt given in pledge may set up against the pledgee
the defenses relative to the validity of the debt secured by the pledge
as well as those defenses he may have against his own creditor, to the
extent that an assigned debtor may set up defenses against the
assignee in the case of an assignment of debt.
Article 1163
1. If a pledged debt falls due for payment before the actual debt
secured by the pledge, the debtor must discharge his debt to the
pledgee and the pledgor jointly. The pledgee and the pledgor
may each demand the debtor to deposit the amount paid by him,
in which case the pledge is transferred to the amount so
deposited.
2. The pledgee and the pledgor must, without prejudice to the
rights of the secured creditor, cooperate together for the
investment of the amount paid by the debtor to the best
advantage of the pledgor, and they must immediately constitute
a new pledge in favor of the pledgee.
Article 1164
If the pledged debt and the secured debt fall due, the pledgee who has
not been paid may collect the debt pledged up to the amount due to
him and demand that the debt be sold or be allocated to him in
accordance with the provisions of Article (1155)
Part IV: Privileges
Chapter I: General Provisions
Article 1165
1. A privilege is a right of preference granted by law to a
particular right by reason of its quality.
2. No right is privileged except by virtue of a provision of the law.

Article 1166
1. The rank of a privilege is fixed by law; in the absence of a
formal provision of the law fixing the preferential rank of a
privileged right it ranks after any other privilege.
2. In the absence of a provision of the law to the contrary,
privileged rights of the same rank will be paid ratably.
Article 1167
General privileges extend to all movable and immovable property of
the debtor. Special privileges are limited to a specific movable or
immovable only.
Article 1168
1. General privileges, however, even over immovables are not subject
to publication. Privileges over immovables securing sums due to the
Public Treasury are also not subject to publication.
2. All these privileges rank prior to any other privilege over
immovables or mortgages, whatever may be the date of their
inscription. As between each other, the privilege securing sums due to
the Public Treasury ranks prior to general privileges
Article 1169
General privileges shall not be subject to the right to commence
proceedings subject to the provisions of the law with respect to the
privilege over sums of money due to the Public Treasury.
Article 1170
Provisions of the law relating to mortgages are applicable to
privileged rights over immovable property in so far as they are not
incompatible with the nature of these rights. The provisions relating
purge, to make an inscription and the effects of inscription, are in
particular applicable to prove immovables.

Article 1171
A privilege cannot be set up against the holder in good faith of a
movable.
A lessor of an immovable and a hotel proprietor are deemed, in so
far as this article applies, to be holders of furniture used in
leased premises and of effects brought into the hotel by
travelers respectively.
If a creditor has reasonable grounds to apprehend that movables
charged with a privilege in his favor will be misappropriated, he
may apply for them to be placed in judicial custody
Article 1172
Provisions applying to the loss or deterioration of mortgaged property
apply also to privileges.
Article 1173
In the absence of a provision of the law to the contrary, privileges are
extinguished in the same way and in accordance with the same rules
as a mortgage or a pledge.
Chapter II: Kinds of Privileges
Article 1174
In addition to the privileges established by special provisions of the
law, the rights enumerated in the following articles are privileged.
Subsection I: General Privileges and Special Privileges over
Movables
Article 1175
1. Costs of legal proceedings incurred, in the common interest of
all the creditors, for the preservation and sale of the property of
the debtor, have a privilege over the price of such property.
2. Such costs are payable in priority to any other claim, whether
privileged or secured by a mortgage, including claims of
creditors for whose benefit such costs have been incurred.

3. Costs incurred for the sale of the property are payable in

priority to the costs of the procedure of distribution.
Article 1176
1. Sums due to the State Treasury for taxes, duties and other dues
of any kind are privileged in accordance with conditions laid
down by laws and regulations issued in this connection.
2. Such sums shall be paid out of the proceeds of sale of the
property charged with this privilege, in whosever's hands it may
be, and before all other rights, whether privileged or secured by
a mortgage, except costs of legal proceedings.
Article 1177
1. Expenses incurred for the preservation of, and repairs of a
necessary kind to, a movable are secured by a privilege over
the movable as a whole.
2. Such expenses are payable out of the proceeds of sale of the
movable so charged, and rank immediately after the costs of
legal proceedings and sums due to the State Treasury. As
between them such expenses will rank in the inverse order of
the dates on which they were incurred.
Article 1178
1. The following claims are secured by a privilege over all the
debtor's property, whether movable or immovable, to the extent
due during the last six months:
a) sums due to servants, clerks, workmen and other wage-earners
for wages and emoluments of any kind;
b) sums due for foodstuffs and clothes supplied to the debtor and
to persons depending on him; and
c) alimony due by the debtor to members of his family.
2. These claims rank immediately after the costs of legal
proceedings, sums due to the State Treasury and expenses for

the preservation of and repairs to the property. As between

them such claims are paid ratably.
Article 1179
1. Sums disbursed for seeds, manure and other fertilizers and
insecticides, and sums disbursed for cultivation and harvesting
are secured by a privilege over the crop for whose production
they are spent: they will all have the same rank.
2. Such sums are payable out of the proceeds of the sale of the
crop, immediately after the claims referred to above.
3. Sums due in respect of agricultural implements are, in a like
manner and in the same rank, secured by a privilege over these
implements.
Article 1180
1. Building and agricultural rents for two years, or for the
duration of the lease if less than two years, and all sums due to
the lessor by virtue of the lease agreement, are all secured by a
privilege over all attachable movables and crops existing on the
leased property and belonging to the lessee.
2. The assets in the leased property are deemed to be owned by
the lessee, unless it is proved that they are owned a by a third
party.
3. The privilege is also enforceable over movables and crops
belonging to a sub-lessee, if the lessor had expressly prohibited
sub-letting. If sub-letting was not prohibited, the privilege will
only be enforceable up to the amounts due by such sub-lessee
to the principal lessee on the date a formal summons is served
by the lessor for non-payment of these sums.
4. If movables and crops so charged are removed from the leased
property, notwithstanding the objection of the lessor or without
his knowledge, and the movables remaining on the property are
not sufficient to secure the privileged claims, the privilege is
enforceable on the movables and crops by third parties in good

faith. The privilege shall remain in force for three years from
the date of the removal, even to the detriment of a third partys
rights, if the lessor effects within the prescribed time limit an
attachment on the movables and crops removed. If, however.
The movables and crops are sold to a purchaser in good faith in
the market by public auction or by a merchant dealing in
similar articles, the lessor must reimburse the purchaser with
the price.
5. These privileged claims are payable out of the proceeds of sale
of such movables and crops subject to such privilege,
immediately after the claims above-mentioned with the
exception of claims in respect of which the privilege does not
operate against the lessor in as much as he is a third party
holder in good faith.
Article 1181
1. Sums due to hotel proprietors by a traveler for accommodation,
food and expenses incurred for his account, are secured by a
privilege over the effects brought by the traveler to the hotel or
its annexes.
2. Unless it can be shown that the hotel proprietor knew of the
existence of a third party's rights over these effects at the time
they were brought on to the premises, this privilege may be
enforced on these effects, even if they do not belong to the
traveler, provided that they are not lost or stolen property. A
hotel proprietor may, if he has not been paid in full, object to
the removal of these effects, and if they are removed
notwithstanding his objection or without his knowledge, the
privilege continues to be enforceable on them, subject to the
rights acquired by third parties in good faith.
3. A hotel proprietor's privilege has the same rank as a lessor's
privilege. Should the effects in question be subject to both
claims, the first in date will have priority, unless it is not
enforceable as against the other.

Article 1182
1. Sums due to a vendor of a movable for price and
accessories are secured by a privilege over the movable
sold. This privilege is enforceable as long as the movable
sold preserves its identity, subject to the rights acquired
in good faith by third parties and subject to the special
provisions applicable in commercial matters.
2. This privilege follows in rank privileges over movables
above referred to. It operates, however, as against the
lessor and the hotel proprietor, if it can be proved that
they had knowledge of such privilege at the time the
thing sold was brought onto the leased property or into
the hotel.
Article 1183
1. Co-owners who have partitioned a movable have a privilege
over this movable in respect of their respective remedies against
each other resulting from partition, and for repayment of any
difference reverting to them in the partition.
2. The privilege of a co-partitioner has the same rank as a vendor's
privilege. Should the movable in question be subject to both
rights, the first in date will have priority.
Subsection II: Special Privileges over Immovables
Article 1184
1. The price and accessories due to the vendor of an immovable
are secured by a privilege over the immovable sold.
2. Such privilege must be inscribed, notwithstanding the
transcription of the sale, and its rank is fixed by the date of
inscription.
Article 1185
1. Sums due to contractors and architects who have been entrusted
with the erection, reconstruction, repair or maintenance of

buildings or other works, have a privilege over such works but

only in respect of the increase in value resulting from such
works as at the time of alienation of the immovable.
2. Such a privilege must be inscribed: its rank is fixed by the date
of its inscription, subject to article (1064).
Article 1186
1. Co-owners who have partitioned an immovable have a
privilege over this immovable in respect of their respective
remedies against each other resulting from the partition,
including their right to claim payment of any difference
reverting to them in the partition.
2. This privilege must be inscribed: its rank is fixed by the date
of its inscription
-