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The mortgage shall extand to the building on the mortgaged land, in cases where there is a special provision that the mortgage extends to the building on the mortgage land.
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Article 370
A mortgage extends to the things that form an integral part of the immovables that are the subject matter of the mortgage (hereinafter referred to as "mortgaged immovables") except for buildings on the mortgaged land; provided, however, that this does not apply if the act establishing the mortgage provides otherwise or the rescission of fraudulent act may be demanded as prescribed in Article 424, paragraph (3) with regard to the act of the obligor..
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Article 369
(1) A mortgagee has the right to have the mortgagee's claim satisfied prior to other obligees out of the immovables that the obligor or a third party provided to secure the obligation without transferring possession.
(2) Superficies and farming rights may be the subject matter of a mortgage.In this case, the provisions of this Chapter apply mutatis mutandis..
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In cases where the obligee (C) exercises the credit of sale value vested in the obligor (A) against (B), and filing the action regarding to the credit, if the upholding judgement of the action is established, the credit is deemed to extinguish by the performance
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Article 423
(1) An obligee may exercise the right of the obligor (hereinafter referred to as the "subrogor's right") when it is necessary to do so in order to preserve the obligee's own claim; provided, however, that this does not apply to rights which belong exclusively to and are personal to the obligor or rights which are immune from attachment.
(2) The obligee may not exercise the subrogor's right unless and until the obligee's claim becomes due;provided, however, that this does not apply to an act of preservation.
(3) The obligee may not exercise the subrogor's right if the obligee's claim is not enforceable by compulsory execution..
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Article 596
The provisions of Article 551
apply mutatis mutandis to loans for use.
Article 551
(1) The donor is presumed to have promised to deliver or transfer the thing or right that is the subject matter of the gift, while maintaining its condition as of the time when it is specified as the subject matter of the gift.
(2) With respect to gifts with burden, the donor provides the same warranty as that of a seller, to the extent of that burden.
Article 415
(1) If an obligor fails to perform consistent with the purpose of the obligation or the performance of an obligation is impossible, the obligee may claim compensation for loss or damage arising from the failure;provided, however, that this does not apply if the failure to perform the obligation is due to grounds not attributable to the obligor in light of the contract or other sources of obligation and the common sense in the transaction.
(2) If the obligee is entitled to claim compensation for loss or damage pursuant to the provisions of the preceding paragraph, and any of the following cases applies, the obligee may claim compensation for loss or damage in lieu of the performance of the obligation:
(i) the performance of the obligation is impossible;
(ii) the obligor manifests the intention to refuse to perform the obligation; or
(iii) the obligation has arisen from a contract, and the contract is cancelled or the obligee acquires the right to cancel the contract on the ground of the obligor's failure to perform the obligation..
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The principal for the principal obligation under a contract for revolving guarantee on loans shall not be determined even if the relevant principal obligor has died.
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Article 465-4
(1) The principal of the principal obligation under a contract for revolving guarantee by an individual is crystallized in the following cases;provided, however, that in the case set forth in item (i), it is crystallized only if the procedure for compulsory execution or enforcement procedure of a security right is commenced:
(i) if an obligee files a petition for compulsory execution or enforcement of any security right for a claim for payment of money with regard to any property of the guarantor;
(ii) if the guarantor receives an order commencing bankruptcy proceeding; or
(iii) the relevant principal obligor or guarantor has died.
(2) Beyond the case prescribed in the preceding paragraph, the principal of the principal obligation under a contract for revolving guarantee by an individual for loans is crystallized in the following cases;provided, however, that in the case set forth in item (i), it is crystallized only if the procedure for compulsory execution or enforcement procedure of a security right is commenced:
(i) if the obligee files a petition for compulsory execution or enforcement of a security right for a claim for payment of money with regard to property of the principal obligor; or
(ii) if the principal obligor receives an order commencing bankruptcy proceeding..
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Article 593
A loan for use becomes effective if one of the parties promises to deliver a certain thing, and the other party promises to return the thing when the contract is terminated after the other party gratuitously uses and makes profit of the borrowed thing.
Article 400
If the subject matter of a claim is the delivery of a specific thing, the obligor must retain the thing with the due care of a prudent manager, which is determined in light of the contract or other sources of claims and the common sense in the transaction, until the delivery..
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If the lessor refuses to accept the rent by causing the dispute about the completion of the lease of building, the lessee may make the deposit with the official depository having jurisdiction over the domicile of the lessee or the lessor.
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Article 494
(1) In the following cases, a performer may deposit the subject matter of the performance with an official depository for the benefit of the obligee. In such a case, the claim is extinguished when the performer makes the deposit:
(i) the performer tenders the performance, and the obligee refuses to accept it; or
(ii) the obligee is unable to accept the performance.
(2) The preceding paragraph also applies if the performer is unable to ascertain the obligee;provided, however, that this does not apply if the performer is negligent in this respect.
Article 495
(1) The deposit under the provisions of the preceding Article must be made with the official depository having jurisdiction over the place where the relevant obligation is performed.
(2) If there is no specific provision in laws and regulations with respect to the official depository, the court, at the request of the performer, must designate the depository and appoint a custodian of the thing to be deposited.
(3) A person that has effected a deposit pursuant to the provisions of the preceding Article must notify the obligee of the deposit without delay..
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Article 295
(1) If a possessor of a thing belonging to another person has a claim that has arisen in relation to that thing, that possessor may retain that thing until that claim is satisfied;provided, however, that this does not apply if the relevant claim has not yet fallen due.
(2) The provisions of the preceding paragraph do not apply if possession commenced by means of a tortious act.
Article 303
The holder of a statutory lien has the rights to have that holder's own claim satisfied prior to other obligees out of the assets of the relevant obligor in accordance with the provisions of laws including this Act.
Article 388
If the land and a building on that land belong to the same owner, a mortgage is created with respect to that land or building, and the enforcement of that mortgage causes them to belong to different owners, it is deemed that a superficies has been created with respect to that building.In this case, the rent is fixed by the court at the request of the parties..
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In cases where a mortgage is created with respect to (B)'s land to secure (A)'s claim against B, after that, other mortgage is created with repect to the same to secure (C)' claim against B, if A inherits from B by oneself, the mortgage to secure A's claim shall be extinguished.
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Article 520
If a claim and obligation becomes vested in the same person, such claim is extinguished;provided, however, that this does not apply if such a claim is the subject matter of the right of a third party..
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Article 438 If novation takes place between one of the joint and several obligors and the obligee, the claim is extinguished for the benefit of all joint and several obligors.
Article 439 (1) If one of the joint and several obligors has a claim against the obligee and invokes a set-off, the claim is extinguished for the benefit of all joint and several obligors.
(2) Until the joint and several obligor that has the claim referred to in the preceding paragraph invokes a set-off, other joint and several obligors may refuse to perform the obligation to the obligee only to the extent of that joint and several obligor's share of the obligation.
Article 440 If there is a merger between one of the joint and several obligors and the obligee, the joint and several obligor is deemed to have performed the obligation.
Article 441 Except in cases prescribed in Articles 438, Article 439, paragraph (1), and the preceding Article, any circumstances which have arisen with respect to one of the joint and several obligors is not effective in relation to other joint and several obligors; provided, however, that if the obligee and one of the other joint and several obligors manifest a different intention, their intention prevails with respect to the effect in relation to the remaining other joint and several obligees.
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In cases where a guarantor has given a guarantee as entrusted by the principal obligor, if he/she has, without negligence, had a judgment ordering him/her to perform the obligation to the obligee, such guarantor shall have a right to obtain reimbursement from the principal obligor.
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Article 459
(1) If a guarantor gives guarantee as requested by the principal obligor, and performs the obligation on behalf of the principal obligor or performs any other act that causes the obligation to be extinguished in exchange for the guarantor's own property (hereinafter referred to as an "act for extinguishment of obligation"), the guarantor has a right to reimbursement from the principal obligor for the amount of property expended for that act (if the amount of property exceeds the amount of the principal obligation extinguished by the act for extinguishment of obligation, the amount thus extinguished).
(2) The provisions of Article 442, paragraph (2) apply mutatis mutandis to the cases set forth in the preceding paragraph..
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Article 493
The tender of the performance must be made actually consistent with the main purport of the obligation;provided, however, that if the obligee refuses to accept that performance in advance or if any act is required on the part of the obligee with respect to the performance of the obligation, it is sufficient for the obligor to request the acceptance thereof by giving a notice that the tender of the performance has been prepared.
Article 492
Upon tendering the performance, the obligor is relieved from any and all responsibilities which may arise from the non-performance of the obligation..
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With respect to the contract for sales of a land, the obligation that the seller registers the transfer of ownership and the buyer's obligation of payment shall have the relationship of simutaneous performances.
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Article 533
A party to a bilateral contract may refuse to perform that party's own obligation until the other party tenders the performance of that other party's obligation (including the performance of an obligation to compensate for loss or damage in lieu of the performance of an obligation);provided, however, that this does not apply if the obligation of the other party is not yet due..
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Article 577
(1) If a mortgage that does not conform to the terms of the contract is registered on immovables that have been purchased, the buyer may refuse to pay the price until the completion of the procedures of the claim for extinguishment of the mortgage. In such cases, the seller may demand that the buyer file the claim for extinguishment of the mortgage without delay.
(2) The provisions of the preceding paragraph apply mutatis mutandis if a statutory lien or pledge that does not conform to the terms of the contract is registered on the immovables that have been bought..
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The party ordering work may cancel the contract at any time whilst the contractor has not completed the work by compensating any damages.
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Article 641
The party ordering work may cancel the contract at any time whilst the contractor has not completed the work by paying compensation for loss or damage..
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Article 424
(1) An obligee may demand the court to rescind an act which the obligor commits knowing that it will prejudice the obligee; provided, however, that this does not apply if a person that benefits from that act (hereinafter referred to as the "beneficiary" in this Subsection) does not know, at the time of the act, that the obligee will be prejudiced.
(2) The provisions of the preceding paragraph do not apply to an act with a subject matter other than property rights.
(3) The obligee may make the demand under the provisions of paragraph (1) (hereinafter referred to as "demand for rescission of fraudulent act") only if the obligee's claim has arisen from a cause that existed before the act prescribed in paragraph (1).
(4) The obligee may not make demand for rescission of fraudulent act if the obligee's claim is not enforceable by compulsory execution..
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If the parties do not define the time of return, a borrower may terminate a money loan for consumption without charging any interest by returning the borrowed money at any time.
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Article 591
(1) If the parties do not define the time for return of borrowed things, the lender may demand their return, specifying a reasonable period of time.
(2) The borrower may return the borrowed thing at any time, irrespective of whether the parties have defined the time of return of the thing.
(3) If the parties defined the time of return of the borrowed thing, and the lender sustains any damage because the borrower returns the thing prior to the time of return, the lender may claim compensation therefor from the borrower..
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Article 547
If no period of time is specified for the exercise of the right to cancel, the other party may issue a notice of demand to the holder of the right to cancel, specifying a reasonable period of time, to the effect that the holder of the right to cancel is to give a definite answer as to whether the holder will cancel or not within that period of time.In this case, if no notice of cancellation is received within that period, the right to cancel is extinguished..
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A loan for use shall terminate when a borrower dies. |
Article 597
(1) If the parties specify a period of a loan for use, the loan for use is terminated upon the expiration of the period.
(2) If the parties do not specify a period of a loan for use, but they specify the purpose of using and making profit from the borrowed thing, the loan for use is terminated when the borrower finishes using and making profit from the thing in line with the purpose.
(3) A loan for use is terminated upon the death of the borrower..
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Article 31
A person subject to a declaration of disappearance pursuant to the provisions of paragraph (1) of the preceding Article is deemed to have died when the period of time referred to in that paragraph ended, and a person subject to a declaration of disappearance pursuant to the provisions of paragraph (2) of that Article is deemed to have died when that danger had passed.
Article 30
(1) If it has been unclear for seven years whether an absentee is dead or alive, the family court may enter a declaration of disappearance at the request of an interested person.
(2) The provisions of the preceding paragraph also apply if it has been unclear whether a person who has entered a war zone, was aboard a vessel that has sunk, or was otherwise exposed to a danger likely to result in a person's death is dead or alive, for one year after the war has ended, the vessel sank, or such other danger has passed..
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If a lease contract is canceled, the lease shall terminate retroactively as of the time of the conclusion of the contract.
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Article 620
If a lease is cancelled, the cancellation becomes effective solely toward the future. In such a case, the cancellation does not preclude a claim for compensation for loss or damage..
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Article 557
(1) If the buyer pays earnest money to the seller, the buyer may cancel the contract by waiving the earnest money, or the seller may cancel the contract by actually providing the buyer with twice its amount;provided, however, that this does not apply after the counterparty commences performance of the contract.
(2) The provisions of Article 545, paragraph (4) do not apply to the cases referred to in the preceding paragraph..
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If the parties have not specified the timing of the return of the Thing deposited, the depositary who has undertaken a deposit gratuitously may return the same and terminate the contract at any time.
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Article 663
(1) If the parties have not specified the timing of the return of the bailed thing, the bailee may return the same at any time.
(2) If the timing of the return is specified, the bailee may not return the deposited thing prior to the due date unless there is a compelling reason to do so..
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Article 424-5 If the obligee is entitled to make demand rescission for fraudulent act against the beneficiary, and a person subsequently acquires the property which has been transferred to the beneficiary, the obligee may also make demand for rescission of fraudulent act against the subsequent acquirer only in the situations specified in the following items according to the categories set forth in the respective items:
(i) if the subsequent acquirer acquires the property from the beneficiary: the subsequent acquirer, at the time of the acquisition, knows that the obligor's act will be prejudicial to the obligee; or
(ii) if the subsequent acquirer acquires the property from another subsequent acquirer: the relevant subsequent acquirer and all the subsequent acquirers that previously acquired the property, at the time of their respective acquisitions, know that the obligor's act will be prejudicial to the obligee.
Article 424 (1) An obligee may demand the court to rescind an act which the obligor commits knowing that it will prejudice the obligee; provided, however, that this does not apply if a person that benefits from that act (hereinafter referred to as the "beneficiary" in this Subsection) does not know, at the time of the act, that the obligee will be prejudiced.
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Parents of a person who died by a tort may claim compensation for their own mental damages against a wrongdoer.
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Article 711
A person that has taken the life of another must compensate for loss or damage to the father, mother, spouse, and children of the victim, even if the property rights of the same have not been infringed..
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Article 97
(1) A manifestation of intention becomes effective at the time notice thereof reaches the other party.
(2) If the other party prevents notice of a manifestation of intention from reaching them without a legitimate reason, the notice is deemed to have reached that party at the time it would have normally reached them.
(3) The effect of a manifestation of intention is not impaired even if the person making it dies, loses mental capacity, or becomes subject to restrictions on their legal capacity to act after having sent the notice..
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In cases where A claims purchase money of movables in a lawsuit, A shall prove that A tendered the delivery of the subject matter as revived cause of action.
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Article 555
A sale becomes effective when one of the parties promises to transfer certain property rights to the other party and the other party promises to pay the price for this..
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Article 587
A loan for consumption becomes effective when a first party receives money or any other thing from a second party, having promised to return a thing of the same type, quality, and quantity..
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A minor who is permitted to carry on one or more kinds of business shall have the same capacity to act as a person of the age of majority as far as such business is concerned.
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Article 6
(1) A minor who is permitted to conduct one or multiple types of business has the same capacity to act as an adult as far as that business is concerned.
(2) In a case as referred to in the preceding paragraph, if there are grounds that make the minor unable to sustain that business, the legal representative may revoke or limit the permission therefor in accordance with the provisions of Part IV (Relatives)..
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Article 9
A juridical act performed by an adult ward is voidable;provided, however, that this does not apply to the purchase of daily necessities or to any other act involved in day-to-day life..
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A minor may rescind the juristic act which is performed without the consent of his/her satutory agent individually.
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Article 120
(1) An act that is voidable on the grounds of the qualified legal capacity to act of the person who did the act may be rescinded only by the person with qualified legal capacity (in the case of an act performed by the person as a legal representative of another person with limited capacity, including that other person with limited capacity), or an agent or successor thereof, or a person who has the authority to give consent thereto.
(2) An act that is voidable on the grounds of a mistake, fraud or duress may be rescinded only by the person who made the defective manifestation of intention, or an agent or successor thereof..
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Article 102
An act that a person with qualified legal capacity performs as an agent of another person may not be rescinded on the grounds of qualified legal capacity;provided, however, that this does not apply to an act performed by a person with qualified legal capacity as a legal representative of another person with qualified legal capacity..
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A minor may not become an agent. |
Article 102
An act that a person with qualified legal capacity performs as an agent of another person may not be rescinded on the grounds of qualified legal capacity;provided, however, that this does not apply to an act performed by a person with qualified legal capacity as a legal representative of another person with qualified legal capacity..
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Article 101
(1) If the validity of a manifestation of intention that an agent has made to the other party is to be influenced by the absence of intention; by mistake, fraud, or duress; or by the knowledge of or negligence in not knowing of a particular circumstance; whether or not any such fact was present is decided as it concerns the agent.
(2) If the validity of a manifestation of intention that the other party has made to the agent is to be influenced by the recipient's knowledge of or negligence in not knowing of a particular circumstance, whether or not any such fact was present is decided as it concerns the agent.
(3) If an agent who has been entrusted with performing a specific juridical act performs that act, the principal may not assert that the agent did not know of any particular circumstance of which the principal knew. The same applies to any circumstance of which the principal did not know due to the principal's own negligence.
Article 96
(1) A manifestation of intention based on fraud or duress is voidable.
(2) If a third party commits a fraud inducing a first party to make a manifestation of intention to a second party, that manifestation of intention is voidable only if the second party knew or could have known that fact.
(3) The rescission of a manifestation of intention induced by fraud under the provisions of the preceding two paragraphs may not be duly asserted against a third party in good faith acting without negligence..
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Even if there is a mistake in any element of the juristic act in question and manifestation of intention is induced by the mistake, the person who made the manifestation of intention may not assert such nullity of the manifestation of intention by mistake if twenty years has elapsed from the time of the manifestation of intention.
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Article 95
(1) A manifestation of intention is voidable if it is based on either of the following mistakes, and the mistake is material in light of the purpose of the juridical act and the common sense in the transaction:
(i) a mistake wherein the person lacks the intention that corresponds to the manifestation of intention; or
(ii) a mistake wherein the person making the manifestation of intention holds an understandings that does not correspond to the truth with regard to the circumstances which the person has taken as the basis for the juridical act.
(2) A manifestation of intention under the provisions of item (ii) of the preceding paragraph may be rescinded only if it has been indicated that the circumstances in question are being taken as the basis for the juridical act.
(3) If a mistake is due to gross negligence on the part of the person making the manifestation of intention, that person may not rescind a manifestation of intention as under paragraph (1), except in the following cases:
(i) if the other party knew, or did not know due to gross negligence, of the mistake on the part of the person making the manifestation of intention; or
(ii) if the other party was under the same mistake as the person making the manifestation of intention.
(4) The rescission of a manifestation of intention under the provisions of paragraph (1) may not be duly asserted against a third party in good faith acting without negligence..
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Article 109
(1) A person who indicates to a third party that the person granted certain authority to represent to another person is liable for an act performed between that other person and that third party within the scope of the authority to represent;provided, however, that this does not apply if the third party knew or did not know due to negligence that the other person has not been granted the authority to represent.
(2) If a person who indicates to a third party that the person granted authority to represent to another person is, pursuant to the provisions of the preceding paragraph, liable for acts performed by that other person in relation to the third party within the scope of the authority to represent, and the other person performs in relation to the third party an act beyond the scope of the authority to represent, the person who makes the indication is liable for that act only if the third party has reasonable grounds for believing that the other person has authority to represent in that act..
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If there is a mistake in any element of the juristic act which is induced by any fraud and manifestation of intention is induced by the mistake,the person who made the manifestation of intention may assert such nullity of the manifestation of intention by mistake.
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Article 95
(1) A manifestation of intention is voidable if it is based on either of the following mistakes, and the mistake is material in light of the purpose of the juridical act and the common sense in the transaction:
(i) a mistake wherein the person lacks the intention that corresponds to the manifestation of intention; or
(ii) a mistake wherein the person making the manifestation of intention holds an understandings that does not correspond to the truth with regard to the circumstances which the person has taken as the basis for the juridical act.
(2) A manifestation of intention under the provisions of item (ii) of the preceding paragraph may be rescinded only if it has been indicated that the circumstances in question are being taken as the basis for the juridical act.
(3) If a mistake is due to gross negligence on the part of the person making the manifestation of intention, that person may not rescind a manifestation of intention as under paragraph (1), except in the following cases:
(i) if the other party knew, or did not know due to gross negligence, of the mistake on the part of the person making the manifestation of intention; or
(ii) if the other party was under the same mistake as the person making the manifestation of intention.
(4) The rescission of a manifestation of intention under the provisions of paragraph (1) may not be duly asserted against a third party in good faith acting without negligence.
Article 96
(1) A manifestation of intention based on fraud or duress is voidable.
(2) If a third party commits a fraud inducing a first party to make a manifestation of intention to a second party, that manifestation of intention is voidable only if the second party knew or could have known that fact.
(3) The rescission of a manifestation of intention induced by fraud under the provisions of the preceding two paragraphs may not be duly asserted against a third party in good faith acting without negligence..
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Article 96
(1) A manifestation of intention based on fraud or duress is voidable.
(2) If a third party commits a fraud inducing a first party to make a manifestation of intention to a second party, that manifestation of intention is voidable only if the second party knew or could have known that fact.
(3) The rescission of a manifestation of intention induced by fraud under the provisions of the preceding two paragraphs may not be duly asserted against a third party in good faith acting without negligence..
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In the case where (A) loses his/her capacity to act after the dispatch of the notice of an offer of a contract to (B), who is a person at a distance, even if (B) knows such fact, the offer of the contract shall become effective.
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Article 526
If an offeror dies, comes to be in a constant state wherein the offeror lacks mental capacity, or becomes subject to restrictions on legal capacity to act after issuing notice of the offer, and the offeror has manifested the intention not to make the offer effective should any of these facts occur, or the other party comes to know that any of these facts has occurred before issuing a notice of acceptance, that offer is not effective..
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Article 513
If the parties conclude a contract which gives rise to a new obligation that falls under any of the following as a replacement of the previous obligation, the previous obligation is extinguished by novation:
(i) an obligation that makes a material change to the content of the performance of the previous obligation;
(ii) an obligation for which the previous obligor is substituted by a third party; or
(iii) an obligation for which the previous obligee is substituted by a third party..
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In the case where (A) loses his/her capacity to act after the dispatch of the notice of cancellation of a contract to (B), who is a person at a distance, even if (B) knows such fact, the cancellation of the contract shall become effective.
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Article 97
(1) A manifestation of intention becomes effective at the time notice thereof reaches the other party.
(2) If the other party prevents notice of a manifestation of intention from reaching them without a legitimate reason, the notice is deemed to have reached that party at the time it would have normally reached them.
(3) The effect of a manifestation of intention is not impaired even if the person making it dies, loses mental capacity, or becomes subject to restrictions on their legal capacity to act after having sent the notice..
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Article 120
(1) An act that is voidable on the grounds of the qualified legal capacity to act of the person who did the act may be rescinded only by the person with qualified legal capacity (in the case of an act performed by the person as a legal representative of another person with limited capacity, including that other person with limited capacity), or an agent or successor thereof, or a person who has the authority to give consent thereto.
(2) An act that is voidable on the grounds of a mistake, fraud or duress may be rescinded only by the person who made the defective manifestation of intention, or an agent or successor thereof..
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In the case where (A) loses his/her capacity to act after the dispatch of the notice of acceptance of a contract to (B), who is a person at a distance, even if (B) knows such fact, the contract shall be formed.
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Article 97
(1) A manifestation of intention becomes effective at the time notice thereof reaches the other party.
(2) If the other party prevents notice of a manifestation of intention from reaching them without a legitimate reason, the notice is deemed to have reached that party at the time it would have normally reached them.
(3) The effect of a manifestation of intention is not impaired even if the person making it dies, loses mental capacity, or becomes subject to restrictions on their legal capacity to act after having sent the notice..
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Article 601
A lease becomes effective if one of the parties promises to make a certain thing available for the other party to use and make profit, and the other party promises to pay rent for the leased thing and return the delivered thing when the contract is terminated.
Article 587
A loan for consumption becomes effective when a first party receives money or any other thing from a second party, having promised to return a thing of the same type, quality, and quantity..
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The order of priority of special statutory liens,pledges and mortgages with respect to the same immovable properties shall follow the chronological order of their registration.
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Article 177
Acquisitions of, losses of and changes in real rights on immovables may not be duly asserted against any third parties, unless the same are registered pursuant to the applicable provisions of the Real Property Registration Act (Act No. 123 of 2004) and other laws regarding registration.
Article 361
Beyond what is provided for in this Section, the provisions of the next Chapter (Mortgages) apply mutatis mutandis to pledges of immovables, provided that it is not inconsistent with the nature of the same.
Article 373
If more than one mortgage is created with respect to the same immovables, the order of priority of those mortgages follows the chronological order of their registration.
Article 339
Statutory liens registered in accordance with the provisions of the preceding two Articles may be exercised prior to mortgages.
Article 337
In order to preserve the effectiveness of statutory liens for preservation of immovables, registration must be carried out immediately after the completion of the act of preservation.
Article 338
(1) In order to preserve the effectiveness of statutory liens for construction work for immovables, the budgeted expenses of the construction work must be registered prior to the commencement of the same.In this case, if the expenses of the construction work exceed the budgeted amount, a statutory lien does not exist with respect to the amount in excess of the same.
(2) The amount of increase in value of immovables that resulted from construction work must be evaluated by an appraiser appointed by the court at the time of the participation in the distribution..
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Article 243
If two or more movable properties with different owners can no longer be separated without damage due to accession, the ownership of the composite thing belongs to the owner of the principal movable property. The same applies if excessive expense is required to separate the movables.
Article 244
If the distinction of principal and accessory cannot be made between the movables united by accession, the owner of each movable property co-owns the composite thing in proportion to the respective price current at the time of the accession..
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Extension of security interest to proceeds of collateral may be done with respect to a right of retention, a statutory lien, a pledge and a mortgage.
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Article 304
(1) A statutory lien may also be exercised against things including monies that the obligor is to receive as a result of the sale, lease or loss of, or damage to, the subject matter of the statutory lien;provided, however, that the holder of the statutory lien must attach the same before the payment or delivery of the monies or other thing.
(2) The provisions of the preceding paragraph also apply to the consideration for real rights created by the obligor on the subject matter of the statutory lien.
Article 350
The provisions of Articles 296 through 300 and those of Article 304
apply mutatis mutandis to pledges.
Article 372
The provisions of Article 296, Article 304
and Article 351
apply mutatis mutandis to mortgages..
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Article 298
(1) The holder of a right of retention must possess the thing retained with the due care of a prudent manager.
(2) The holder of the right of retention may not use, lease or provide as a security the thing retained unless that holder obtains the consent of the obligor;provided, however, that this does not apply to uses necessary for the preservation of that thing.
(3) If the holder of a right of retention violates the provisions of the preceding two paragraphs, the obligor may demand that the right of retention be terminated.
Article 350
The provisions of Articles 296 through 300 and those of Article 304
apply mutatis mutandis to pledges..
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A right of retention shall not be extinguished even if the holder of the right of retention loses possession of the Thing retained, but ,in this case, this right may not be asserted against third parties.
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Article 302
A right of retention is extinguished if the holder of the right of retention loses possession of the thing retained;provided, however, that this does not apply if the thing retained is leased or it is made the subject of a pledge pursuant to the provisions of Article 298, paragraph (2)..
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Article 337
In order to preserve the effectiveness of statutory liens for preservation of immovables, registration must be carried out immediately after the completion of the act of preservation..
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In cases where the lessee does not pay rent,
even if the lessor of a building has received a security deposit and that security deposit will satisfy unpaid rent,
he/she shall have a statutory lien.
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Article 316
If a lessor has received a security deposit prescribed in Article 622-2, paragraph (1), the lessor has a statutory lien solely against the portion of the lessor's claim that will not be satisfied by that security deposit..
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Article 334
If there is conflict between a statutory lien and a pledge on movables, the pledgee of those movables has the same rights as those of the holder of a statutory lien of the first rank under Article 330.
Article 330
(1) If there are competing special statutory liens against the same movables, the order of priority follows the order set forth below.In this case, if there are two or more preservers with respect to the statutory liens for preservation of movables set forth in item (ii), a new preserver has priority over previous preservers:
(i) statutory liens for leases of immovables, lodging at hotels and transportation;
(ii) statutory liens for the preservation of movables; and
(iii) statutory liens for the sale of movables, the supply of seeds and seedlings or fertilizer, agricultural labor and industrial labor.
(2) In the cases referred to in the preceding paragraph, if a holder of a statutory lien ranked first knew at the time of acquiring the relevant claim of the existence of a holder of a statutory lien of the second or third rank, that holder may not exercise the relevant rights of priority against those persons. The same applies to the exercise against persons that have preserved things on behalf of the holder of a statutory lien of the first rank.
(3) Regarding fruits, the first rank belongs to persons who engage in agricultural labor, the second rank belongs to persons that supply seeds and seedlings or fertilizer, and the third rank belongs to lessors of land..
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In cases where a lessee of a building has not paid the purchase money with respect to the sale of a dresser for a furniture store and has not paid the rent for the lessor,
the furniture store's statutory lien with respect to the dresser shall prevail over the lessor's statutory lien with respect to the same.
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Article 330
(1) If there are competing special statutory liens against the same movables, the order of priority follows the order set forth below.In this case, if there are two or more preservers with respect to the statutory liens for preservation of movables set forth in item (ii), a new preserver has priority over previous preservers:
(i) statutory liens for leases of immovables, lodging at hotels and transportation;
(ii) statutory liens for the preservation of movables; and
(iii) statutory liens for the sale of movables, the supply of seeds and seedlings or fertilizer, agricultural labor and industrial labor.
(2) In the cases referred to in the preceding paragraph, if a holder of a statutory lien ranked first knew at the time of acquiring the relevant claim of the existence of a holder of a statutory lien of the second or third rank, that holder may not exercise the relevant rights of priority against those persons. The same applies to the exercise against persons that have preserved things on behalf of the holder of a statutory lien of the first rank.
(3) Regarding fruits, the first rank belongs to persons who engage in agricultural labor, the second rank belongs to persons that supply seeds and seedlings or fertilizer, and the third rank belongs to lessors of land..
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Article 604
(1) The duration of a lease may not exceed 50 years. Even if the contract prescribes a longer term, that term is considered to be 50 years.
(2) The duration of a lease may be renewed;provided, however, that the term may not exceed 50 years from the time of the renewal..
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If a company does not pay salary, the employee shall have a statutory lien with respect to the salary, regardless of the unpaid period, over the entire property of the company.
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Article 306
A person that has a claim arising from the causes set forth below has a statutory lien over the entire assets of the obligor:
(i) expenses for the common benefit;
(ii) an employer-employee relationship;
(iii) funeral expenses; or
(iv) the supply of daily necessaries.
Article 308
Statutory liens for employer-employee relationships exist with respect to salaries and other claims that arise from the employer-employee relationship between the obligor and the employee..
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Article 474
(1) A third party may also perform an obligation.
(2) A third party that has no legitimate interest in performing an obligation may not perform the obligation against the will of the obligor;provided, however, that this does not apply if the obligee did not know that the performance is against the will of the obligor.
(3) The third party prescribed in the preceding paragraph may not perform the obligation against the will of the obligee;provided, however, that this does not apply if the third party performs the obligation as requested by the obligor, and the obligee knew this.
(4) The provisions of the preceding three paragraphs do not apply if the nature of an obligation does not permit the performance by a third party or if a party manifests the intention to prohibit or restrict the performance by a third party..
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In cases where a company has not paid the purchase money with respect to the sale of refrigerators for an electronics store and it has not paid salaries for its employees,
the electronics store's statutory lien with respect to the refrigerators shall prevail over employees's statutory lien with respect to the same.
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Article 308
Statutory liens for employer-employee relationships exist with respect to salaries and other claims that arise from the employer-employee relationship between the obligor and the employee.
Article 306
A person that has a claim arising from the causes set forth below has a statutory lien over the entire assets of the obligor:
(i) expenses for the common benefit;
(ii) an employer-employee relationship;
(iii) funeral expenses; or
(iv) the supply of daily necessaries.
Article 311
A person that has a claim arising from the causes set forth below has a statutory lien against specific movables of the obligor:
(i) a lease of immovables;
(ii) a lodging at a hotel;
(iii) the transportation of passengers or luggage;
(iv) the preservation of movables;
(v) the sale of movables;
(vi) the supply of seeds and seedlings or fertilizer (including eggs of silkworms or mulberry leaves provided to feed silkworms; the same applies hereinafter);
(vii) agricultural labor; or
(viii) industrial labor.
Article 329
(1) If there are competing general statutory liens, the order of priority follows the order set forth in each item of Article 306.
(2) Ife there are competing a general statutory lien and a special statutory lien, the special statutory lien has priority over the general statutory lien;provided, however, that statutory liens on expenses for the common benefit have priority being effective against all obligees who benefit from the same..
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Article 398-7
(1) A person that acquires a claim from a revolving mortgagee before the principal is crystallized may not exercise the revolving mortgage with respect to that claim. The same applies to a person that made payment for or on behalf of an obligor before the principal was crystallized.
(2) If an obligation is assumed before the principal is crystallized, the revolving mortgagee may not exercise the revolving mortgage with respect to the obligation of the person that assumes the obligation.
(3) If the assumption of obligation releasing an old obligor is effected before the principal is crystallized, the obligee may not transfer the revolving mortgage to the obligation assumed by the new obligor, notwithstanding the provisions of Article 472-4, paragraph (1).
(4) If any novation due to the substitution of the obligee is effected before the principal is crystallized, the obligee before the novation may not transfer the revolving mortgage to the obligations after the novation, notwithstanding the provisions of Article 518, paragraph (1). The same applies to the obligee in the case of novation due to the substitution of the obligor before the principal is crystallized..
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In cases where an obligor owns an immovable property and a movable property which are not the subject of an agreed security interest, a right of retention and a special statutory lien,
the holders of general statutory liens are first paid out of the immovable property,
and they are paid out of the movable property only if the claim that is not satisfied remains.
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Article 335
(1) Holders of general statutory liens cannot be paid out of immovables unless they are first paid out of property other than immovables and a claim that is not satisfied remains.
(2) With respect to immovables, holders of general statutory liens must first be paid out of those that are not the subject matters of special security.
(3) If holders of general statutory liens fail to participate in distributions in accordance with the provisions of the preceding two paragraphs, they may not exercise their statutory liens against registered third parties with respect to amounts that would have been paid to them if they had participated in the distribution.
(4) The provisions of the preceding three paragraphs do not apply if the proceeds of immovables are distributed prior to the proceeds of assets other than immovables, or if the proceeds of immovables that are the subject matter of a special security are distributed prior to the proceeds of other immovables..
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Article 429
Even if there is a novation or release between one of the obligees of an indivisible claim and the obligor, other obligees may request the obligor to perform the obligation in whole. In such a case, the benefit which should have been allocated to that one obligee if that obligee did not lose the relevant right must be reimbursed to the obligor..
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Because mortgages are rights which grasp value of the subject, even in the case where an amount of a secured claim exceeds the value of the Mortgaged Immovable Properties, a mortgage shall be extinguished if a third party pledgor pays an amount equivalent to value of the subject.
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Article 372
The provisions of Article 296, Article 304
and Article 351
apply mutatis mutandis to mortgages.
Article 296
A holder of a right of retention may exercise that holder's rights against the whole of the thing retained until the relevant claim is satisfied in its entirety..
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Article 568
(1) The successful bidder at an auction based on the provisions of the Civil Execution Act and other laws (hereinafter referred to as an "auction" in this Article) may cancel the contract or demand a reduction of the price against the obligor pursuant to the provisions of Articles 541 and 542 and the provisions of Article 563
(including as applied mutatis mutandis pursuant to Article 565).
(2) In the cases referred to in the preceding paragraph, if the obligor is insolvent, the successful bidder may demand total or partial reimbursement of the proceeds against the obligees that received the distribution of the proceeds.
(3) In the cases set forth in the preceding two paragraphs, if obligors knew of the absence of the object or right and did not disclose the same, or if obligees knew of the absence but demanded an auction, the successful bidder may claim compensation for loss or damage against those persons.
(4) The provisions of the preceding three paragraphs do not apply to the non-conformity with respect to the kind or quality of the subject matter of an auction..
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Even if there is a default with respect to a claim secured by a mortgage, the mortgage shall not extend to the fruits of the Mortgaged Immovable Properties derived after the default.
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Article 371
If there is a default with respect to a claim secured by a mortgage, the mortgage extends to the fruits of the mortgaged immovables derived after the default..
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Article 587
A loan for consumption becomes effective when a first party receives money or any other thing from a second party, having promised to return a thing of the same type, quality, and quantity.
Article 589
(1) In the absence of any special agreement, the lender may not demand interest from the borrower.
(2) If there is any special agreement referred to in the preceding paragraph, the lender may demand from the borrower interest that accrues from the day on which the borrower receives the thing such as money..
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If a mortgagee demands that a third party who purchases the ownership of Mortgaged Immovable Properties pay the price of the same to the relevant mortgagee, the third party must respond to the request.
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Article 378
If a third party that purchases the ownership or superficies of a mortgaged immovables pays the price of the same to a mortgagee at the request of the same mortgagee, that mortgage is terminated for the benefit of that third party..
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Article 494
(1) In the following cases, a performer may deposit the subject matter of the performance with an official depository for the benefit of the obligee. In such a case, the claim is extinguished when the performer makes the deposit:
(i) the performer tenders the performance, and the obligee refuses to accept it; or
(ii) the obligee is unable to accept the performance.
(2) The preceding paragraph also applies if the performer is unable to ascertain the obligee;provided, however, that this does not apply if the performer is negligent in this respect.
Article 474
(1) A third party may also perform an obligation.
(2) A third party that has no legitimate interest in performing an obligation may not perform the obligation against the will of the obligor;provided, however, that this does not apply if the obligee did not know that the performance is against the will of the obligor.
(3) The third party prescribed in the preceding paragraph may not perform the obligation against the will of the obligee;provided, however, that this does not apply if the third party performs the obligation as requested by the obligor, and the obligee knew this.
(4) The provisions of the preceding three paragraphs do not apply if the nature of an obligation does not permit the performance by a third party or if a party manifests the intention to prohibit or restrict the performance by a third party..
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Before the principal is fixed, a revolving mortgagee may assign a Revolving Mortgage or effect a partial assignment of the Revolving Mortgage, without the approval of the revolving mortgagor.
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Article 398-12
(1) Before the principal is crystallized, a revolving mortgagee may assign a revolving mortgage, with the approval of the mortgagor of the revolving mortgage.
(2) A revolving mortgagee may divide the revolving mortgage into two revolving mortgages and assign either of the same pursuant to the provisions of the preceding paragraph.In this case, the rights for which that revolving mortgage is the subject matter is extinguished with respect to the revolving mortgage that was assigned.
(3) In order to effect an assignment under the provisions of the preceding paragraph, the approval of the person that holds the rights for which that revolving mortgage is the subject matter must be obtained.
Article 398-13
Before the principal is crystallized, a revolving mortgagee may, with the approval of the mortgagor of the revolving mortgage, effect a partial assignment of the revolving mortgage (meaning assignments of revolving mortgages that the assignor effects without dividing the revolving mortgage in order to co-own the same with the assignee; hereinafter the same applies in this Section)..
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Article 465-2
(1) A guarantor to a guarantee contract under which the principal obligation is one or more unidentified obligations within a certain specified scope (hereinafter referred to as a "contract for revolving guarantee") and the guarantor is not a corporation (hereinafter referred to as a "contract for revolving guarantee by an individual") is liable to perform the obligation in terms of the amounts of the principal of the principal obligation, any interest, penalty and compensation for loss or damage in connection with the principal obligation, and all the other charges secondary to the obligation, as well as the amount of any penalty or compensation for loss or damage which is agreed- upon on with regard to the guarantee obligation, up to a certain maximum amount which pertains to all of these amounts.
(2) A contract for revolving guarantee by an individual does not become effective unless it provides for the maximum amount prescribed in the preceding paragraph.
(3) The provisions of Article 446, paragraphs (2) and (3) apply mutatis mutandis to the provisions concerning a maximum amount prescribed in paragraph (1) in a contract for revolving guarantee by an individual..
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When the scope of the claims to be secured by a Revolving Mortgage is altered before the principal is fixed, the approval of subordinated obligees has to be obtained.
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Article 398-4
(1) The scope of the claims to be secured by a revolving mortgage may be changed if the change is effected before the principal is crystallized. The same applies with respect to change of obligors.
(2) In order to effect the changes referred to in the preceding paragraph, it is not required that the approval of third parties including subordinated mortgagee be obtained.
(3) If the change under paragraph (1) is not registered before the principal is crystallized, it is deemed that the change was not effected..
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Article 177
Acquisitions of, losses of and changes in real rights on immovables may not be duly asserted against any third parties, unless the same are registered pursuant to the applicable provisions of the Real Property Registration Act (Act No. 123 of 2004) and other laws regarding registration.
Article 361
Beyond what is provided for in this Section, the provisions of the next Chapter (Mortgages) apply mutatis mutandis to pledges of immovables, provided that it is not inconsistent with the nature of the same.
Article 373
If more than one mortgage is created with respect to the same immovables, the order of priority of those mortgages follows the chronological order of their registration.
Article 339
Statutory liens registered in accordance with the provisions of the preceding two Articles may be exercised prior to mortgages.
Article 337
In order to preserve the effectiveness of statutory liens for preservation of immovables, registration must be carried out immediately after the completion of the act of preservation.
Article 338
(1) In order to preserve the effectiveness of statutory liens for construction work for immovables, the budgeted expenses of the construction work must be registered prior to the commencement of the same.In this case, if the expenses of the construction work exceed the budgeted amount, a statutory lien does not exist with respect to the amount in excess of the same.
(2) The amount of increase in value of immovables that resulted from construction work must be evaluated by an appraiser appointed by the court at the time of the participation in the distribution..
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A monetary claim may not be made indivisible due to the manifestation of intention of the parties involved.
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Article 428
The provisions of the following Subsection (Joint and Several Claims) (excluding the provisions of Articles 433 and 435) apply mutatis mutandis if the subject matter of a claim is indivisible by nature and the claim is held by two or more obligees..
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Article 498
(1) If the property that is the subject matter of performance or the proceeds referred to in the preceding Article are deposited, the obligee may demand the return of the deposited thing.
(2) If the obligor is to effect performance in exchange for payment or delivery by the obligee, the obligee may not receive deposited thing without making that payment or delivery..
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If the subject of the claim is to be identified by way of choice among more than one performance, the right to make the choice shall vest in the obligee.
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Article 406
If the subject matter of the claim is to be determined by a choice being made from among more than one performance, the right to choose belongs to the obligor..
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Article 498
(1) If the property that is the subject matter of performance or the proceeds referred to in the preceding Article are deposited, the obligee may demand the return of the deposited thing.
(2) If the obligor is to effect performance in exchange for payment or delivery by the obligee, the obligee may not receive deposited thing without making that payment or delivery..
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A third party who effects an effective performance not against the will of the obligor shall be subrogated by operation of law to the claim of the obligee by effecting performance.
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Article 499
A person that has performed the obligation for the benefit of the obligor is subrogated to the claim of the obligee..
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Article 706
If an obligor has paid money or delivered anything as performance of an obligation that has not yet fallen due, the obligor may not demand the return of the money paid or thing delivered;provided, however, that if the obligor tendered anything by mistake, the obligee must return the benefit gained as a result..
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A quasi-mandate shall be effective even if it is not made in writing but a mandate shall not be effective unless it is made in writing.
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Article 643
A mandate becomes effective when a first party asks a second party with performing a juridical act, and the second party accepts this.
Article 656
The provisions of this Section apply mutatis mutandis to entrustments of business that do not constitute juridical acts..
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Article 166
(1) A claim is extinguished by prescription in the following cases:
(i) if the obligee does not exercise the right within five years from the time when the obligee came to know that it was exercisable; or
(ii) if the obligee does not exercise the right within 10 years from the time when it became exercisable.
(2) A claim or property right other than ownership is extinguished by prescription if not exercised within 20 years from the time when the right became exercisable.
(3) The provisions of the preceding two paragraphs do not preclude the commencement of acquisitive prescription for the benefit of a third party that possesses the subject matter of a right with a time of commencement or a right subject to a condition precedent, at the time of commencing the possession;provided, however, that the holder of the right may demand acknowledgment from the possessor at any time to renew the prescription period..
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If a creditor of a partnership did not know, when his/her claim arose, the proportions of the partners' shares of losses, the creditor may exercise his/her rights against each partner in equal proportions.
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Article 675
(1) A creditor of a partnership may exercise the rights of the creditor against the partnership property.
(2) A creditor of a partnership may, at the choice of the creditor, exercise the rights of the creditor against each partner in proportion to their shares of loss or in equal proportions;provided, however, that if a creditor of a partnership knew the proportion of each partner's share of loss at the time of occurrence of the claim, the exercise of the creditor's rights is based on those proportions..
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Article 494
(1) In the following cases, a performer may deposit the subject matter of the performance with an official depository for the benefit of the obligee. In such a case, the claim is extinguished when the performer makes the deposit:
(i) the performer tenders the performance, and the obligee refuses to accept it; or
(ii) the obligee is unable to accept the performance.
(2) The preceding paragraph also applies if the performer is unable to ascertain the obligee;provided, however, that this does not apply if the performer is negligent in this respect..
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A person who has tendered anything as performance of an obligation may not demand the return of the thing tendered if the person were negligent in not knowing that the obligation did not exist.
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Article 705
A person that has paid money or delivered anything as performance of an obligation may not demand the return of the money paid or thing delivered if the person knew, at the time, that the obligation did not exist..
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Article 478
Performance made to a person that does not constitute a person authorized to accept the performance (meaning the obligee or a third party authorized to accept performance based on the provisions of laws and regulations or the manifestation of intention of the parties; the same applies hereinafter) but that appears to be the person authorized to accept the performance in light of common sense in the transaction is effective only if the person effecting performance was acting in good faith and without negligence..
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A superficiary may assign the superficies without obtaining the approval of the owner of the land but a lessee may not assign the lessee's rights without obtaining the approval of the lessor or the court's permission in lieu of it.
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Article 612
(1) A lessee may not assign the lease or sublease a leased thing without obtaining the approval of the lessor.
(2) If the lessee allows any third party to make use of or take the profits of a leased thing in violation of the provisions of the preceding paragraph, the lessor may cancel the contract..
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Article 221
(1) A landowner may use a structure installed by the owner of higher or lower land in order to cause water from the landowner's land to pass through that land.
(2) In the cases referred to in the preceding paragraph, the person using the other person's structure must bear the expenses of the installation and preservation of the structure in proportion to the benefit that person enjoys..
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Assuming a person is a minor, then in regards a permitted, specific business, he/she has the legal capacity to act.
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Article 6
(1) A minor who is permitted to conduct one or multiple types of business has the same capacity to act as an adult as far as that business is concerned.
(2) In a case as referred to in the preceding paragraph, if there are grounds that make the minor unable to sustain that business, the legal representative may revoke or limit the permission therefor in accordance with the provisions of Part IV (Relatives)..
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Article 11
The family court may decide to commence a curatorship in respect of a person whose capacity to appreciate their own situation is extremely inadequate due to a mental disorder, at the request of the person in question, the person's spouse, the person's relative within the fourth degree of kinship, the guardian, the guardian's supervisor, the assistant, the assistant's supervisor, or a public prosecutor;provided, however, that this does not apply to a person in respect of whom a cause set forth in Article 7
exists.
Article 7
The family court may decide to commence a guardianship in respect of a person who constantly lacks the capacity to appreciate the person's own situation due to a mental disorder, at the request of the person in question, that person's spouse, that person's relative within the fourth degree of kinship, the person's guardian of a minor, the person's supervisor of a minor's guardian, the person's curator, the person's curator's supervisor, the person's assistant, the person's assistant's supervisor, or a public prosecutor..
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A subagent's acts are equivalent to an agent's acts because he/she does not act in agency for the agent, but in agency for the priciple, so it is sufficient if he/she indicates that his/her acts are made on behalf of the principle.
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Article 99
(1) A manifestation of intention that an agent makes indicating that they will be making a manifestation of intention on behalf of the principal within the scope of the agent's authority binds the principal directly.
(2) The provisions of the preceding paragraph apply mutatis mutandis to a manifestation of intention that a third party makes to an agent.
Article 106
(1) A subagent represents the principal with respect to acts within the scope of the authority thereof.
(2) A subagent has the same rights and obligations as an agent in relation to the principal and third parties within the scope of that subagent's authority..
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Article 107
If an agent performs an act that falls within the scope of that agent's authority to represent for the purpose of benefiting the agent's own interests or the interests of a third party, and the other party knew of or could have ascertained that purpose, that act is deemed to be an act performed by a person without authority to represent.
Article 109
(1) A person who indicates to a third party that the person granted certain authority to represent to another person is liable for an act performed between that other person and that third party within the scope of the authority to represent;provided, however, that this does not apply if the third party knew or did not know due to negligence that the other person has not been granted the authority to represent.
(2) If a person who indicates to a third party that the person granted authority to represent to another person is, pursuant to the provisions of the preceding paragraph, liable for acts performed by that other person in relation to the third party within the scope of the authority to represent, and the other person performs in relation to the third party an act beyond the scope of the authority to represent, the person who makes the indication is liable for that act only if the third party has reasonable grounds for believing that the other person has authority to represent in that act.
Article 110
The provisions of the main clause of paragraph (1) of the preceding Article apply mutatis mutandis if an agent performs an act exceeding the agent's authority to represent and a third party has reasonable grounds for believing that the agent has the authority as an agent..
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If a holder of a right of retention has consent of the obligor, or if a pledgee has consent of the pledgor, then they each may lease any collateral.
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Article 298
(1) The holder of a right of retention must possess the thing retained with the due care of a prudent manager.
(2) The holder of the right of retention may not use, lease or provide as a security the thing retained unless that holder obtains the consent of the obligor;provided, however, that this does not apply to uses necessary for the preservation of that thing.
(3) If the holder of a right of retention violates the provisions of the preceding two paragraphs, the obligor may demand that the right of retention be terminated.
Article 350
The provisions of Articles 296 through 300 and those of Article 304
apply mutatis mutandis to pledges..
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Article 601
A lease becomes effective if one of the parties promises to make a certain thing available for the other party to use and make profit, and the other party promises to pay rent for the leased thing and return the delivered thing when the contract is terminated..
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A gratuitous depositary shall assume the duty to retain the Thing deposited with the care of a good manager.
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Article 659
A gratuitous bailee bears a duty to keep the bailed thing while exercising the same level of care that the bailee would exercise for their own property..
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Article 706 If an obligor has paid money or delivered anything as performance of an obligation that has not yet fallen due, the obligor may not demand the return of the money paid or thing delivered; provided, however, that if the obligor tendered anything by mistake, the obligee must return the benefit gained as a result.
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The obligor may not recover the deposited property without consent of the obligee after performing performance deposit.
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Article 496
(1) As long as the obligee does not accept the deposit, or the judgment which pronounces that the deposit is effective does not become final and binding, the performer may recover the deposited thingy. In such case, it is deemed that no deposit has been effected.
(2) The provisions of the preceding paragraph do not apply in cases any pledge or mortgage has been extinguished due to the deposit..
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Article 677-2 (2) A partner that is admitted to a partnership pursuant to the provisions of the preceding paragraph after it is formed is not liable to perform the obligations of the partnership that arose before that partner's admission.
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When a lessee of a building repaired a leak in the roof at his/her own expense that the lessor should repair, he/she may immediately demand reimbursement of the entire amount of the repair expenses from the lessor.
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Article 608
(1) If a lessee has defrayed necessary expenses with respect to the leased thing which ought to be borne by the lessor, the lessee may immediately demand the reimbursement of the same from the lessor.
(2) If the lessee has incurred beneficial expenses with respect to the leased thing, the lessor must reimburse those expenses on termination of the lease in compliance with the provisions of Article 196, paragraph (2);provided, however, that the court may, at the lessor's request, grant a reasonable period of time for the reimbursement of the same..
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Article 348
The pledgee may subpledge the thing pledged within the duration of the pledgee's right, upon the pledgee's own responsibility.In this case, the pledgee is responsible for any loss arising from the subpledge even if the same is caused by force majeure..
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An employment contract is a contract for value, and the timing of payment of remuneration shall be deferred payment in principle, but a special provision for advance payment may be entered.
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Article 623
An employment contract becomes effective when a first party promises to a second party that the first party will engage in work and the second party promises to pay remuneration for this.
Article 624
(1) An employee may not demand remuneration until the work the employee promised to perform has been completed.
(2) Remuneration specified with reference to a period may be claimed after the passage of that period..
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Article 166
(1) A claim is extinguished by prescription in the following cases:
(i) if the obligee does not exercise the right within five years from the time when the obligee came to know that it was exercisable; or
(ii) if the obligee does not exercise the right within 10 years from the time when it became exercisable.
(2) A claim or property right other than ownership is extinguished by prescription if not exercised within 20 years from the time when the right became exercisable.
(3) The provisions of the preceding two paragraphs do not preclude the commencement of acquisitive prescription for the benefit of a third party that possesses the subject matter of a right with a time of commencement or a right subject to a condition precedent, at the time of commencing the possession;provided, however, that the holder of the right may demand acknowledgment from the possessor at any time to renew the prescription period.
Article 412
(1) If a fixed due date is assigned to the performance of an obligation, the obligor is liable for delay from the time that due date arrives.
(2) If an uncertain due date is assigned to the performance of an obligation, the obligor is liable for delay from the time when the obligor receives the request for performance after the due date arrives or the time when the obligor becomes aware of the arrival of that due date, whichever comes earlier.
(3) If no time limit is assigned to the performance of an obligation, the obligor is liable for delay from the time the obligor receives the request for performance..
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A worker has a statutory lien for the general assets of an employer as collateral for the claim to renumeration that he/she has.
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Article 306
A person that has a claim arising from the causes set forth below has a statutory lien over the entire assets of the obligor:
(i) expenses for the common benefit;
(ii) an employer-employee relationship;
(iii) funeral expenses; or
(iv) the supply of daily necessaries.
Article 308
Statutory liens for employer-employee relationships exist with respect to salaries and other claims that arise from the employer-employee relationship between the obligor and the employee..
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Article 462
(1) The provisions of Article 459-2, paragraph (1) apply mutatis mutandis if a person, that has given guarantee without the request of the principal obligor, performs an act for extinguishment of obligation.
(2) A person that has become a guarantor against the will of the principal obligor has the right to reimbursement only to the extent currently enriched.In this case, if the principal obligor asserts to have grounds for set-off against the obligee prior to the day of the demand for reimbursement, the guarantor may demand that the obligee perform the obligation which would have been extinguished by that set-off.
(3) The provisions of Article 459-2, paragraph (3) apply mutatis mutandis to the exercise of the right to reimbursement if the guarantor referred to in the preceding two paragraphs performs an act for extinguishment of obligation before the due date of the principal obligation..
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If the execution of business for a partnership is mandated, the operating officers shall be selected from among the partners.
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Article 670
(1) The partnership business is decided by the majority of the partners and executed by each partner.
(2) The decision and execution of the partnership business may be delegated to one or more partners or a third party, pursuant to the provisions of the partnership contract.
(3) The person delegated as referred to in the preceding paragraph (hereinafter referred to as a "person who executes business") decides and executes the partnership business. In such a case, if there are two or more persons who execute business, the partnership business is decided by the majority of these persons who execute business and is executed by each of them.
(4) Notwithstanding the provisions of the preceding paragraph, the partnership business is not precluded to be decided based on the consent of all partners or executed by all partners.
(5) Notwithstanding the provisions of the preceding paragraphs, the ordinary business of a partnership may be performed by each partner or each person who executes business independently;provided, however, that this does not apply if other partners or persons who execute business raise objections prior to the completion of the business..
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Article 192
A person that commences the possession of movables peacefully and openly by a transactional act acquires the rights that are exercised with respect to the movables immediately if the person possesses it in good faith and without negligence..
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A partner may receive a refund of his/her share assuming he/she was expelled.
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Article 679
Beyond the cases referred to in the preceding Article, partners withdraw on the following grounds:
(i) the partner dies;
(ii) the partner is subject to an order commencing bankruptcy proceeding;
(iii) the partner is subject to a decision for the commencement of guardianship;
(iv) the partner has been expelled.
Article 681
(1) Accounts as between the withdrawing partner and other partners must be settled according to the status of the partnership property as at the time of the withdrawal.
(2) The interest of the withdrawing partner may be refunded in money, regardless of the kind of the withdrawing partner's contribution.
(3) With respect to any matter not yet completed at the time of the withdrawal, accounts may be made up subsequent to the completion of that matter..
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Article 181
Possessory rights may be acquired through an agent.
Article 200
(1) If a possessor is forcibly dispossessed, the possessor may demand the restitution of the thing and compensation for loss or damage by filing an action for recovery of possession.
(2) An action for recovery of possession may not be filed against a specific successor of a person that forcibly takes possession;provided, however, that this does not apply if that successor had knowledge of the fact that the person has unlawfully taken the possession..
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If a plaintiff files against a land owner as a defendant, and demands compensation of damages based on the liability of owner of structure on land proviso in Civil Code Article 717, Paragraph 1, the defendant may not assert that he/she exercised his/her required duty of care in order to prevent the occurrence of the results as an affirmative defense, but he/she may assert his/her own doli incapax as an affirmative defense.
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Article 717
(1) If a defect in the installation or preservation of a structure on land causes damage to another person, the possessor of that structure is liable to the person incurring damage to compensate for the damage;provided, however, that if the possessor has exercised the necessary care to prevent the damage, the owner must compensate for the damage.
(2) The provisions of the preceding paragraph apply mutatis mutandis if there is a defect in the planting or supporting of bamboo or trees.
(3) In the cases referred to in the preceding two paragraphs, if there is another person that is liable for the cause of the damage, the possessor or owner may exercise their right to reimbursement against that person..
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Article 536
(1) If the performance of an obligation becomes impossible due to grounds not attributable to either party, the obligee may refuse to perform counter-performance.
(2) If the performance of an obligation becomes impossible due to grounds attributable to the obligee, the obligee may not refuse to complete counter-performance. In such a case, if the obligor benefits from being released from that obligation, the obligor must reimburse the obligee for the benefit..
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In the case of concealment of true intention, assuming the other party was unaware of the true intention of the party making the manifestation, and there was no gross negligence regarding that lack of knowledge, that manifestation of intention shall be valid.
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Article 93
(1) The validity of a manifestation of intention is not impaired even if the person making it does so while knowing that it does not reflect that person's true intention;provided, however, that if the other party knew or could have known that the manifestation was not the true intention of the person who made it, that manifestation of intention is void.
(2) The nullity of a manifestation of intention under the provisions of the proviso to the preceding paragraph may not be duly asserted against a third party in good faith..
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Article 555
A sale becomes effective when one of the parties promises to transfer certain property rights to the other party and the other party promises to pay the price for this..
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A contract of sales concluded by an adult ward may be rescinded except relating to daily life, even in cases the consent of the adult guardian has been obtained, the contract
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Article 9
A juridical act performed by an adult ward is voidable;provided, however, that this does not apply to the purchase of daily necessities or to any other act involved in day-to-day life..
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Article 604
(1) The duration of a lease may not exceed 50 years. Even if the contract prescribes a longer term, that term is considered to be 50 years.
(2) The duration of a lease may be renewed;provided, however, that the term may not exceed 50 years from the time of the renewal..
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An act which requires the consent of the assistant may be rescinded if the person under assistance performed it without such consent or the permission of family court in lieu thereof.
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Article 17
(1) At the request of the person referred to in the main clause of Article 15, paragraph (1) or the assistant or assistant's supervisor, the family court may decide that the person under assistance must obtain the consent of the person's assistant in order to perform a specific juridical act;provided, however, that the acts that such a decision may establish as those for which the person must obtain the consent of the assistant are restricted to a part of the acts provided for in Article 13, paragraph (1).
(2) In order to decide as referred to in the preceding paragraph at the request of a person other than the person in question requires the consent of the person in question.
(3) If the assistant does not consent to an act for which the person under assistance must obtain the assistant's consent even though it is unlikely to prejudice the interests of the person under assistance, the family court may grant permission that operates in lieu of the assistant's consent, at the request of the person under assistance.
(4) An act for which the person under assistance must obtain the assistant's consent is voidable if the person performs it without obtaining the assistance's consent or a permission that operates in lieu of it..
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Article 679
Beyond the cases referred to in the preceding Article, partners withdraw on the following grounds:
(i) the partner dies;
(ii) the partner is subject to an order commencing bankruptcy proceeding;
(iii) the partner is subject to a decision for the commencement of guardianship;
(iv) the partner has been expelled.
Article 681
(1) Accounts as between the withdrawing partner and other partners must be settled according to the status of the partnership property as at the time of the withdrawal.
(2) The interest of the withdrawing partner may be refunded in money, regardless of the kind of the withdrawing partner's contribution.
(3) With respect to any matter not yet completed at the time of the withdrawal, accounts may be made up subsequent to the completion of that matter..
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The family court appointed B as the administrator of the property of absentee A, as A went missing without appointing the one. In cases where cash owned by A is discovered, B doesn't need to obtain the permission of a family when depositing in A's saving account of Bank D as an agent of A.
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Article 28
If an administrator needs to perform an act exceeding the authority provided for in Article 103, the administrator may perform that act after obtaining the permission of the family court. The same applies if it is unclear whether the absentee is dead or alive and the administrator needs to perform an act exceeding the authority established by the absentee.
Article 103
An agent who has no specifically defined authority has the authority to perform the following acts only:
(i) acts of preservation; and
(ii) acts with the purpose of using or improving a thing or right that is the subject matter of the agency, to the extent that this does not change the nature of that thing or right..
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Article 102
An act that a person with qualified legal capacity performs as an agent of another person may not be rescinded on the grounds of qualified legal capacity;provided, however, that this does not apply to an act performed by a person with qualified legal capacity as a legal representative of another person with qualified legal capacity..
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The family court appointed B as the administrator of the property of absentee A, as A went missing without appointing the one. In cases where A has the debt obligation which is due against E, B doesn't need to obtain the permission of a family court when paying it to E for the benefit of A.
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Article 28
If an administrator needs to perform an act exceeding the authority provided for in Article 103, the administrator may perform that act after obtaining the permission of the family court. The same applies if it is unclear whether the absentee is dead or alive and the administrator needs to perform an act exceeding the authority established by the absentee.
Article 103
An agent who has no specifically defined authority has the authority to perform the following acts only:
(i) acts of preservation; and
(ii) acts with the purpose of using or improving a thing or right that is the subject matter of the agency, to the extent that this does not change the nature of that thing or right..
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Article 478
Performance made to a person that does not constitute a person authorized to accept the performance (meaning the obligee or a third party authorized to accept performance based on the provisions of laws and regulations or the manifestation of intention of the parties; the same applies hereinafter) but that appears to be the person authorized to accept the performance in light of common sense in the transaction is effective only if the person effecting performance was acting in good faith and without negligence..
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In case where A's agent B concluded the contract with C within the scope of such authority without indication that it is made on behalf of A, it will not be effective between A and C unless C knows that the B is acting on behalf of A.
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Article 99
(1) A manifestation of intention that an agent makes indicating that they will be making a manifestation of intention on behalf of the principal within the scope of the agent's authority binds the principal directly.
(2) The provisions of the preceding paragraph apply mutatis mutandis to a manifestation of intention that a third party makes to an agent.
Article 100
A manifestation of intention that an agent makes without having indicated that they will be acting on behalf of the principal is deemed to be one that the agent has made on their own account;provided, however, that if the other party knew or could have known that the agent was acting on behalf of the principal, the provisions of paragraph (1) of the preceding Article apply mutatis mutandis..
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Article 109
(1) A person who indicates to a third party that the person granted certain authority to represent to another person is liable for an act performed between that other person and that third party within the scope of the authority to represent;provided, however, that this does not apply if the third party knew or did not know due to negligence that the other person has not been granted the authority to represent.
(2) If a person who indicates to a third party that the person granted authority to represent to another person is, pursuant to the provisions of the preceding paragraph, liable for acts performed by that other person in relation to the third party within the scope of the authority to represent, and the other person performs in relation to the third party an act beyond the scope of the authority to represent, the person who makes the indication is liable for that act only if the third party has reasonable grounds for believing that the other person has authority to represent in that act..
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While it is uncertain whether or not a condition has been fulfilled, the rights and obligations of the party concerned may be disposed of, inherited or preserved, or any security may be provided therefor, in accordance with the usual provisions of the law.
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Article 129
While it is uncertain whether or not a condition will be fulfilled, the rights and obligations of the party concerned may be disposed of, inherited or preserved, or a security may be provided therefor, in accordance with the general provisions..
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Article 101
(1) If the validity of a manifestation of intention that an agent has made to the other party is to be influenced by the absence of intention; by mistake, fraud, or duress; or by the knowledge of or negligence in not knowing of a particular circumstance; whether or not any such fact was present is decided as it concerns the agent.
(2) If the validity of a manifestation of intention that the other party has made to the agent is to be influenced by the recipient's knowledge of or negligence in not knowing of a particular circumstance, whether or not any such fact was present is decided as it concerns the agent.
(3) If an agent who has been entrusted with performing a specific juridical act performs that act, the principal may not assert that the agent did not know of any particular circumstance of which the principal knew. The same applies to any circumstance of which the principal did not know due to the principal's own negligence..
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In cases any party who will suffer any detriment as a result of the fulfillment of a condition intentionally prevents the fulfillment of such condition, the counterparty may deem that such condition has been fulfilled.
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Article 130
(1) If a party that would suffer a detriment as a result of the fulfillment of a condition intentionally prevents the fulfillment of that condition, the counterparty may deem that the condition has been fulfilled.
(2) If a party who would enjoy a benefit as a result of the fulfillment of a condition wrongfully has that condition fulfilled, the counterparty may deem that the condition has not been fulfilled..
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Article 133
(1) A juridical act subject to an impossible condition precedent is void.
(2) A juridical act subject to an impossible condition subsequent is an unconditional juridical act..
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A person who possesses his/her own thing may not invoke acquisitive prescription of it.
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Article 162
(1) A person that possesses the property of another for 20 years peacefully and openly with the intention to own it acquires ownership thereof.
(2) A person that possesses the property of another for 10 years peacefully and openly with an intention to own it acquires ownership thereof if the person was acting in good faith and was not negligent at the time when the possession started..
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Article 179
(1) If ownership and another real right on the same thing are acquired by the same person, the other real right is extinguished;provided, however, that this does not apply if that thing or the other real right is the object of the right of a third party.
(2) If a real right other than ownership and another right for which that real right is the object are acquired by the same person, the other right is extinguished.In this case, the provisions of the proviso to the preceding paragraph apply mutatis mutandis.
(3) The provisions of the preceding two paragraphs do not apply to possessory rights..
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In cases where a person asserts more than two possessions succeeded together with his/her own by the change of possessors, whether or not he/she is in good faith and without negligence is decided shall be judged by the first possessor at the time of the commencement of the possession.
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Article 162
(1) A person that possesses the property of another for 20 years peacefully and openly with the intention to own it acquires ownership thereof.
(2) A person that possesses the property of another for 10 years peacefully and openly with an intention to own it acquires ownership thereof if the person was acting in good faith and was not negligent at the time when the possession started..
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Article 587
A loan for consumption becomes effective when a first party receives money or any other thing from a second party, having promised to return a thing of the same type, quality, and quantity.
Article 588
If any person has an obligation to pay money or deliver other thing under any arrangement, and the parties agree to regard such thing as the subject matter of a loan for consumption, it is deemed that this establishes a loan for consumption..
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In cases A sold Land X belonging to A and B sold it to C, C may be asserted against A about ownership of Land X for sales without special security.
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Article 177
Acquisitions of, losses of and changes in real rights on immovables may not be duly asserted against any third parties, unless the same are registered pursuant to the applicable provisions of the Real Property Registration Act (Act No. 123 of 2004) and other laws regarding registration..
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Article 555
A sale becomes effective when one of the parties promises to transfer certain property rights to the other party and the other party promises to pay the price for this..
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A allowed B to retain movable X. B died and an only heir D started to possess X actually believing that it belongs to B's inherited property without negligence.In cases X is a jewel, D may acquire ownership of X immediately.
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Article 192
A person that commences the possession of movables peacefully and openly by a transactional act acquires the rights that are exercised with respect to the movables immediately if the person possesses it in good faith and without negligence..
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Article 248
A person that suffers loss because of the application of the provisions of Article 242
through the preceding Article may demand compensation in accordance with the provisions of Article 703
and Article 704.
Article 245
The provisions of the preceding two Articles apply mutatis mutandis if the things of different owners are mixed together and can no longer be distinguished.
Article 243
If two or more movable properties with different owners can no longer be separated without damage due to accession, the ownership of the composite thing belongs to the owner of the principal movable property. The same applies if excessive expense is required to separate the movables.
Article 703
A person that has benefited (hereinafter in this Chapter referred to as "beneficiary") from the property or labor of another person without legal cause and has thereby caused a loss to another person bears the duty to return that benefit, to the extent the benefit exists.
Article 704
A beneficiary in bad faith must return the benefit received together with interest thereon. In such cases, if any damage still remains, the beneficiary is liable to compensate for this..
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A allowed B to retain movable X. B donated X to E and E was delivered actually believing that it belongs to B without negligence.In cases X is a jewel, E may acquire ownership of X immediately.
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Article 186
(1) A possessor is presumed to possess a thing with the intention to own, in good faith peacefully and openly.
(2) If there is evidence of possession at two different points in time, it is presumed that possession continued during that interval.
Article 188
The possessor is presumed to lawfully have the rights that a possessor exercises with respect to the thing under possession.
Article 192
A person that commences the possession of movables peacefully and openly by a transactional act acquires the rights that are exercised with respect to the movables immediately if the person possesses it in good faith and without negligence..
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Article 549
Gifts become effective by the manifestation of intention by one of the parties to give a certain property to the other party gratuitously, and the acceptance of the other party thereof..
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A allowed B to retain movable X. B pledged X to G and was delivered actually believing that it belongs to B without negligence. In cases X is a jewel, E may acquire pledge of X immediately.
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Article 186
(1) A possessor is presumed to possess a thing with the intention to own, in good faith peacefully and openly.
(2) If there is evidence of possession at two different points in time, it is presumed that possession continued during that interval.
Article 188
The possessor is presumed to lawfully have the rights that a possessor exercises with respect to the thing under possession.
Article 192
A person that commences the possession of movables peacefully and openly by a transactional act acquires the rights that are exercised with respect to the movables immediately if the person possesses it in good faith and without negligence..
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Article 369
(1) A mortgagee has the right to have the mortgagee's claim satisfied prior to other obligees out of the immovables that the obligor or a third party provided to secure the obligation without transferring possession.
(2) Superficies and farming rights may be the subject matter of a mortgage.In this case, the provisions of this Chapter apply mutatis mutandis..
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In cases seeds, which had been sowed based on no title to using and making profits from land, grew into seedlings,ownership of the seedings shall vest in the owners of it.
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Article 242
The owner of immovables acquires ownership of a thing that has been attached thereto as its appurtenance;provided, however, that the rights of the other person that attached that thing by virtue of a title are not prejudiced..
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Article 197
A possessor may file a possessory action in accordance with the provisions of the following Article through Article 202. The same applies to a person that takes possession on behalf of another person.
Article 200
(1) If a possessor is forcibly dispossessed, the possessor may demand the restitution of the thing and compensation for loss or damage by filing an action for recovery of possession.
(2) An action for recovery of possession may not be filed against a specific successor of a person that forcibly takes possession;provided, however, that this does not apply if that successor had knowledge of the fact that the person has unlawfully taken the possession..
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If the partition of land which A and B co-owns creates a parcel of A's Land X that has no access to public roads and B's Land Y that has access to public roads, A may pass to the public roads from Land X through Land Z when passing through Land Z cause the least damage.
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Article 213
(1) If the partition of land creates a parcel of land that has no access to public roads, the owner of that parcel of land may pass to the public roads only through the lands owned by another person that participated in the partition.In this case, it is necessary to pay compensation.
(2) The provisions of the preceding paragraph apply mutatis mutandis if the owner of land transfers part of the land to another person..
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Article 549
Gifts become effective by the manifestation of intention by one of the parties to give a certain property to the other party gratuitously, and the acceptance of the other party thereof..
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If land suffers damage due to destruction or blockage of a culvert installed on neighboring land to discharge or draw water, the owner of that land may have the owners of such neighboring lands repair or remove the it.
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Article 216
If a land suffers or is likely to suffer damage due to destruction or blockage of a structure installed on other land to store, discharge or draw water, the owner of that land may have the owner of that other land repair the structure or remove the impediments, or, if necessary, have the same carry out preventive construction work..
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Article 175
No real right may be established other than those prescribed by laws including this Code.
Article 265
A superficiary has the right to use another person's land in order to own structures, or trees or bamboo, on that land.
Article 270
A farming right holder has the right to pay rent and engage in cultivation or livestock farming on another person's land.
Article 280
A servitude holder has the right to use another person's land for the convenience of their own lands in accordance with purposes prescribed in the act establishing the servitude;provided, however, that this right must not violate the provisions (limited to those that relate to public policy) under Section 1 of Chapter 3 (Extent of Ownership)..
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A, B and C co-own Building X at the rate of one-third each. If A holds a claim regarding administration of Building X, A may exercise a claim also against F when B transfer the share to F.
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Article 254
A claim that one of the co-owners holds against other co-owners with respect to the property in co-ownership may be exercised against their specific successors..
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Article 717
(1) If a defect in the installation or preservation of a structure on land causes damage to another person, the possessor of that structure is liable to the person incurring damage to compensate for the damage;provided, however, that if the possessor has exercised the necessary care to prevent the damage, the owner must compensate for the damage.
(2) The provisions of the preceding paragraph apply mutatis mutandis if there is a defect in the planting or supporting of bamboo or trees.
(3) In the cases referred to in the preceding two paragraphs, if there is another person that is liable for the cause of the damage, the possessor or owner may exercise their right to reimbursement against that person..
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In order to preserve the effectiveness of statutory liens for preservation of immovable properties, registration must be carried out immediately after the completion of the act of preservation.
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Article 337
In order to preserve the effectiveness of statutory liens for preservation of immovables, registration must be carried out immediately after the completion of the act of preservation..
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Article 555
A sale becomes effective when one of the parties promises to transfer certain property rights to the other party and the other party promises to pay the price for this.
Article 560
The seller bears an obligation to enable the buyer to satisfy the requirements for perfection of the transfer of the right that is the subject matter of the sale, such as completing registration..
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Pledgees of immovable properties can demand interest on their claims in cases where the acts establishing pledges provide otherwise.
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Article 358
The pledgee of immovables may not demand interest on the relevant claim.
Article 359
The provisions of the preceding three Articles do not apply if the acts establishing pledges provide otherwise or execution against earnings from the immovable collateral (referring to the execution against earnings from immovable collateral provided for in Article 180, item (ii) of the Civil Execution Act; the same applies hereinafter) has been commenced..
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Article 511
(1) A third party obligor of a claim which has been attached may not assert sett-off as defense with any claim acquired after the attachment against the attaching obligee, but may duly assert against the same a set-off based using a claim acquired before the attachment.
(2) Notwithstanding the provisions of the preceding paragraph, if a claim acquired after the attachment has arisen from a cause that existed before the attachment, the third party obligor may use that claim for a set-off against the attaching obligee;provided, however, that this does not apply if the third party obligor acquires the claim of another person after the attachment..
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If a holder of the right of retention loses a object material, the detention right disappears.
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Article 302
A right of retention is extinguished if the holder of the right of retention loses possession of the thing retained;provided, however, that this does not apply if the thing retained is leased or it is made the subject of a pledge pursuant to the provisions of Article 298, paragraph (2)..
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Article 293
If a servitude holder does not exercise a portion of that holder's rights, only that portion is extinguished by prescription..
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In cases where A sold C Building X he/she owns and registerd with respect to it after delivering Building X to B, B may may retain Building X to secure a claim for damages due to default if C demanded vacation of Building X from B.
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Article 295
(1) If a possessor of a thing belonging to another person has a claim that has arisen in relation to that thing, that possessor may retain that thing until that claim is satisfied;provided, however, that this does not apply if the relevant claim has not yet fallen due.
(2) The provisions of the preceding paragraph do not apply if possession commenced by means of a tortious act..
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Article 466
(1) A claim may be assigned;provided, however, that this does not apply if its nature does not permit the assignment.
(2) Even if a party to a claim manifests the intention to prohibit or restrict the assignment of the claim (hereinafter referred to as the "manifestation of intention to restrict assignment"), the validity of the assignment of the claim is not impaired.
(3) In the case prescribed in the preceding paragraph, the obligor may refuse to perform the obligation to a third party such as the assignee that knew or did not know due to gross negligence that the manifestation of intention to restrict assignment was made, and may duly assert against such third party any event that results in extinguishment of the obligation such as payment to the assignor.
(4) The provisions of the preceding paragraph do not apply if the obligor does not perform the obligation, and the third party prescribed in that paragraph makes a demand to the obligor for the performance to the assignor by specifying a reasonable period of time, but the obligor does not perform the obligation within that period..
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A pledgee of claim may not colllect the claim directly, when the subject matter of the pledge of claim is not a monetary claim.
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Article 362
(1) A pledge may have a property right for its subject matter.
(2) Beyond what is provided for in this Section, the provisions of the preceding three Sections (General Provisions, Pledges on Movables and Pledges of Immovables) apply mutatis mutandis to pledges referred to in the preceding paragraph, provided that it is not inconsistent with the nature of the same..
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Article 348
The pledgee may subpledge the thing pledged within the duration of the pledgee's right, upon the pledgee's own responsibility.In this case, the pledgee is responsible for any loss arising from the subpledge even if the same is caused by force majeure..
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A pledgee of movables may receive the profits from the movable property, and reimburse secured debt by the profits prior to other creditors.
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Article 350
The provisions of Articles 296 through 300 and those of Article 304
apply mutatis mutandis to pledges.
Article 297
(1) A holder of a right of retention may collect fruits derived from the thing retained, and appropriate the same to the satisfaction of that holder's own claim before other obligees.
(2) The fruits referred to in the preceding paragraph must be appropriated first to the payment of interest on the claim, and any remainder must be appropriated to the satisfaction of the principal..
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Article 599
(1) If the borrower attaches anything to the borrowed thing after receiving it, the borrower has an obligation to remove the attached thing when the loan for use is terminated;provided, however, that this does not apply to anything that is unable to be detached from the borrowed thing or that requires excessive expenses for the detachment.
(2) The borrower may remove anything that the borrower has attached to the borrowed thing after receiving it.
(3) If any damage is caused to the borrowed thing after the borrower receives it, the borrower has an obligation to restore the damaged thing when the loan for use is terminated;provided, however, that this does not apply if the damage is caused due to any grounds not attributable to the borrower.
Article 616
The provisions of Article 594, paragraph (1) apply mutatis mutandis to leases..
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A mortgage may also be exercised against the claim for damage that the obligor is to receive as a result of the loss of the subject matter of the mortgage.
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Article 372
The provisions of Article 296, Article 304
and Article 351
apply mutatis mutandis to mortgages.
Article 304
(1) A statutory lien may also be exercised against things including monies that the obligor is to receive as a result of the sale, lease or loss of, or damage to, the subject matter of the statutory lien;provided, however, that the holder of the statutory lien must attach the same before the payment or delivery of the monies or other thing.
(2) The provisions of the preceding paragraph also apply to the consideration for real rights created by the obligor on the subject matter of the statutory lien..
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Article 509 The obligor of either of the following obligations may not duly assert a set-off against the obligee; provided, however, that this does not apply if the obligee acquires a claim corresponding to the relevant obligation from another person:
(i) an obligation for compensation for loss or damage based on a tort committed in bad faith; or
(ii) an obligation for compensation for loss or damage for death or injury to person (excluding the one set forth in the preceding item).
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In cases where a mortgage is created with respect to a building on leased land, the mortgage may not be exercised against the right of lease.
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Article 87
(1) If the owner of a first thing attaches a second thing that the owner owns to the first thing to serve the ordinary use of the first thing, the thing that the owner attaches is an appurtenance.
(2) An appurtenance is disposed of together with the principal thing if the principal thing is disposed of..
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Article 467
(1) The assignment of a claim (including the assignment of a claim that is yet to arise) may not be duly asserted against the applicable obligor or any other third party, unless the assignor gives notice thereof to the obligor or the obligor has consented to the same.
(2) Notice or consent as referred to in the preceding paragraph may not be duly asserted against a third party other than the obligor unless the notice or the consent is made using an instrument bearing a certified date..
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A contract to creat a mortgage to secure a claim to delivery movables has no effect.
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Article 369
(1) A mortgagee has the right to have the mortgagee's claim satisfied prior to other obligees out of the immovables that the obligor or a third party provided to secure the obligation without transferring possession.
(2) Superficies and farming rights may be the subject matter of a mortgage.In this case, the provisions of this Chapter apply mutatis mutandis..
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Article 577
(1) If a mortgage that does not conform to the terms of the contract is registered on immovables that have been purchased, the buyer may refuse to pay the price until the completion of the procedures of the claim for extinguishment of the mortgage. In such cases, the seller may demand that the buyer file the claim for extinguishment of the mortgage without delay.
(2) The provisions of the preceding paragraph apply mutatis mutandis if a statutory lien or pledge that does not conform to the terms of the contract is registered on the immovables that have been bought..
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In cases where a mortgage is created to secure a claim that may arise in the future and registrated, if the claime arises actually, the mortgage secure it effectively.
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Article 369
(1) A mortgagee has the right to have the mortgagee's claim satisfied prior to other obligees out of the immovables that the obligor or a third party provided to secure the obligation without transferring possession.
(2) Superficies and farming rights may be the subject matter of a mortgage.In this case, the provisions of this Chapter apply mutatis mutandis..
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Article 254 A claim that one of the co-owners holds against other co-owners with respect to the property in co-ownership may be exercised against their specific successors.
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In cases where a mortgagor lease land which is a subject matter of the mortgage to a person, the mortgage shall extend to the rent without a default with respect to a claim secured by the mortgage.
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Article 371
If there is a default with respect to a claim secured by a mortgage, the mortgage extends to the fruits of the mortgaged immovables derived after the default..
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Article 209
(1) An owner of land may request the use of the neighboring land to the extent necessary for constructing or repairing walls or buildings on or in the vicinity of the boundary;provided, however, that the owner may not enter the dwelling house of the neighbor without the approval of the same.
(2) In the case referred to in the preceding paragraph, if the neighbor sustained damage, the neighbor may claim compensation..
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In cases where a mortgage is created with respect to land by the owner of the land, if trees are planted and logged on the land, the mortgage shall entend to the trees.
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Article 370
A mortgage extends to the things that form an integral part of the immovables that are the subject matter of the mortgage (hereinafter referred to as "mortgaged immovables") except for buildings on the mortgaged land; provided, however, that this does not apply if the act establishing the mortgage provides otherwise or the rescission of fraudulent act may be demanded as prescribed in Article 424, paragraph (3) with regard to the act of the obligor..
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Article 304
(1) A statutory lien may also be exercised against things including monies that the obligor is to receive as a result of the sale, lease or loss of, or damage to, the subject matter of the statutory lien;provided, however, that the holder of the statutory lien must attach the same before the payment or delivery of the monies or other thing.
(2) The provisions of the preceding paragraph also apply to the consideration for real rights created by the obligor on the subject matter of the statutory lien..
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In cases where a mortgagor has juwels in the bluilding which is the subject matter of the mortgage, the mortgage shall entend to the juwels.
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Article 370
A mortgage extends to the things that form an integral part of the immovables that are the subject matter of the mortgage (hereinafter referred to as "mortgaged immovables") except for buildings on the mortgaged land; provided, however, that this does not apply if the act establishing the mortgage provides otherwise or the rescission of fraudulent act may be demanded as prescribed in Article 424, paragraph (3) with regard to the act of the obligor..
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Article 362
(1) A pledge may have a property right for its subject matter.
(2) Beyond what is provided for in this Section, the provisions of the preceding three Sections (General Provisions, Pledges on Movables and Pledges of Immovables) apply mutatis mutandis to pledges referred to in the preceding paragraph, provided that it is not inconsistent with the nature of the same.
Article 364
The creation of a pledge over a claim (including a pledge over a claim which has not yet arisen) may not be duly asserted against a third party obligor and other third parties unless notice of the creation of the pledge is given to that third party obligor in accordance with the provisions of Article 467, or unless that third party obligors gives consent to the same.
Article 588
If any person has an obligation to pay money or deliver other thing under any arrangement, and the parties agree to regard such thing as the subject matter of a loan for consumption, it is deemed that this establishes a loan for consumption..
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In cases where a building which is the subject matter of a mortgage collapses and becomes movables, the mortgage shall entend to the movables.
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Article 370
A mortgage extends to the things that form an integral part of the immovables that are the subject matter of the mortgage (hereinafter referred to as "mortgaged immovables") except for buildings on the mortgaged land; provided, however, that this does not apply if the act establishing the mortgage provides otherwise or the rescission of fraudulent act may be demanded as prescribed in Article 424, paragraph (3) with regard to the act of the obligor..
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Article 398-3
(1) A revolving mortgagee may exercise the relevant revolving mortgage up to the maximum amount with respect to all of crystallized principal as well as periodic payments including interest and compensation for loss or damage resulting from failure to perform obligations.
(2) If a claim under a negotiable instrument or check or electronically recorded monetary claim acquired from causes other than the transactions with the obligor is agreed to be treated as a claim to be secured by a revolving mortgage, and any of the following grounds exist, that revolving mortgage may be exercised only with respect to claims acquired before those grounds arose;provided, however, that even with respect to claims acquired after the grounds arose, the exercise of the revolving mortgage is not precluded as far as the claims were acquired without knowledge of those grounds:
(i) the suspension of payments by the obligor;
(ii) a petition to commence bankruptcy proceeding, the commencement of rehabilitation proceeding, the commencement of reorganization proceeding or the commencement for special liquidation with respect to the obligor; or
(iii) a petition for commencement of auction procedure in relation to a mortgaged immovables or attachment for disposition of delinquency..
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In cases where a mortgagor did not perform his obligation until the time of performance, if the mortgagee transfers his/her mortgaged real properties to a third party, the mortgagor may not assert a right of retention to secure settlement claims against the mortgagee when the third party claims the delivery of the mortgaged real properties.
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Article 295
(1) If a possessor of a thing belonging to another person has a claim that has arisen in relation to that thing, that possessor may retain that thing until that claim is satisfied;provided, however, that this does not apply if the relevant claim has not yet fallen due.
(2) The provisions of the preceding paragraph do not apply if possession commenced by means of a tortious act..
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Article 396 No mortgage is extinguished by prescription in relation to obligors and mortgagors unless it is extinguished simultaneously with the claim the mortgage secures.
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A guarantor need to be a person with the capacity to act, even if the obligee has designated the guarantor.
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Article 450
(1) If an obligor has the obligation to provide a guarantor, that guarantor must:
(i) be a person with capacity to act; and
(ii) have sufficient financial resources to pay the obligation.
(2) If the guarantor ceases to meet the requirements set forth in item (ii) of the preceding paragraph, the obligee may demand that some other person meeting the requirements set forth in any item of the same paragraph be substituted for that guarantor.
(3) The provisions of the preceding two paragraphs do not apply if the obligee has designated the guarantor..
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Article 462
(1) The provisions of Article 459-2, paragraph (1) apply mutatis mutandis if a person, that has given guarantee without the request of the principal obligor, performs an act for extinguishment of obligation.
(2) A person that has become a guarantor against the will of the principal obligor has the right to reimbursement only to the extent currently enriched.In this case, if the principal obligor asserts to have grounds for set-off against the obligee prior to the day of the demand for reimbursement, the guarantor may demand that the obligee perform the obligation which would have been extinguished by that set-off.
(3) The provisions of Article 459-2, paragraph (3) apply mutatis mutandis to the exercise of the right to reimbursement if the guarantor referred to in the preceding two paragraphs performs an act for extinguishment of obligation before the due date of the principal obligation..
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The order of priority of the assignment of a claim and the attachment of the same claim shall follow the order of the time when the requirements for the assertion of the assignment against third parties expect the pobligor is met and the time when the attachment order is issued.
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Article 467
(1) The assignment of a claim (including the assignment of a claim that is yet to arise) may not be duly asserted against the applicable obligor or any other third party, unless the assignor gives notice thereof to the obligor or the obligor has consented to the same.
(2) Notice or consent as referred to in the preceding paragraph may not be duly asserted against a third party other than the obligor unless the notice or the consent is made using an instrument bearing a certified date..
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Article 481
(1) If a third party obligor of a claim that has been attached performs the obligation to that third party's own obligee, the attaching obligee is entitled to request the third party obligor to perform the obligation de novo to the extent of the damage sustained by the attaching obligee.
(2) The provisions of the preceding paragraph do not preclude the relevant third party obligor from exercising the right to reimbursement from the obligee..
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The obligee(B) and a third party(C) may not replace the obligor(A) who contracts monetary debts with the obligee(B) to the third party(C) for by novation against the will of the obligor(A).
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Article 514
(1) A novation by substitution of obligor may be effected by a contract concluded between the obligee and a person that becomes the obligor after the novation. In such a case, the novation becomes effective when the obligee notifies the obligor prior to the novation of the conclusion of the contract.
(2) The obligor after the novation by substitution of obligor does not acquire a right to reimbursement from the obligor prior to the novation..
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Article 364
The creation of a pledge over a claim (including a pledge over a claim which has not yet arisen) may not be duly asserted against a third party obligor and other third parties unless notice of the creation of the pledge is given to that third party obligor in accordance with the provisions of Article 467, or unless that third party obligors gives consent to the same..
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The obligee(B) may not perform the obligation which he/she contracts with a third party by assigning the claim which the obligor(A) contracts with the obligee(B) to the third party as a substitute against the will of the obligor(A).
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Article 482
If a person that has right to perform an obligation (hereinafter referred to as a "performer") concludes a contract with the obligee to the effect that the person is to have the obligation extinguished by making, in lieu of the payment or delivery to be performed by the obligor, another type of payment or delivery, and the performer makes that other type of payment or delivery, the payment or delivery thus made has the same effect as that of the performance of the obligation..
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Article 446
(1) A guarantor has the responsibility to perform the obligation of the principal obligor when the latter fails to perform that obligation.
(2) No guarantee contract becomes effective unless it is made in writing.
(3) If a guarantee contract is concluded by electronic or magnetic record which records the terms thereof, the guarantee contract is deemed to be made in writing, and the provisions of the preceding paragraph apply..
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In cases where the seller of the specified things retains them at the place where he/she lives since he/she entered into the contract for sale, the tender of the performance shall be sufficient if the seller demands that the buyer accepts the subject matters by giving a notice that the delivery has been prepared.
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Article 484
(1) Unless a particular intention is manifested with respect to the place where the performance should take place, the delivery of a specific thing must be effected at the place where that thing was located when the relevant claim accrued, and the discharge of any other obligation must be effected at the current domicile of the obligee.
(2) If the trading hours are specified by laws and regulations or customs, performance may be made or demanded only within the trading hours.
Article 493
The tender of the performance must be made actually consistent with the main purport of the obligation;provided, however, that if the obligee refuses to accept that performance in advance or if any act is required on the part of the obligee with respect to the performance of the obligation, it is sufficient for the obligor to request the acceptance thereof by giving a notice that the tender of the performance has been prepared..
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Article 526
If an offeror dies, comes to be in a constant state wherein the offeror lacks mental capacity, or becomes subject to restrictions on legal capacity to act after issuing notice of the offer, and the offeror has manifested the intention not to make the offer effective should any of these facts occur, or the other party comes to know that any of these facts has occurred before issuing a notice of acceptance, that offer is not effective..
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That a third party assumes a monetary debt jointly and severally with a debtor after the debtor has entered into the loans for consumption is a novation.
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Article 513
If the parties conclude a contract which gives rise to a new obligation that falls under any of the following as a replacement of the previous obligation, the previous obligation is extinguished by novation:
(i) an obligation that makes a material change to the content of the performance of the previous obligation;
(ii) an obligation for which the previous obligor is substituted by a third party; or
(iii) an obligation for which the previous obligee is substituted by a third party..
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Article 467
(1) The assignment of a claim (including the assignment of a claim that is yet to arise) may not be duly asserted against the applicable obligor or any other third party, unless the assignor gives notice thereof to the obligor or the obligor has consented to the same.
(2) Notice or consent as referred to in the preceding paragraph may not be duly asserted against a third party other than the obligor unless the notice or the consent is made using an instrument bearing a certified date..
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To the extent of the purpose of the obligation in effect prior to the novation, the parties to the novation may convert the mortgage created as the security of such obligation by a third party to the obligation in effect after the novation without consent of the third party.
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Article 518
(1) To the extent of the amount of the obligation prior to the novation, the obligee (in the case of a novation by substitution of obligee, the obligee prior to the novation) may transfer the pledge or mortgage created as the security of that obligation to the obligation in effect after the novation;provided, however, that if any third party created that security, the consent of the third party must be obtained.
(2) The transfer of the pledge or mortgage referred to in the preceding paragraph must be effected by manifesting the intention to the other party to the novation (in the case of a novation by substitution of obligee, the obligor) in advance or upon the transfer..
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Article 587
A loan for consumption becomes effective when a first party receives money or any other thing from a second party, having promised to return a thing of the same type, quality, and quantity..
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In case a mandate made for a consideration, a mandator's obligation of payment for remuneration and the mandatary's obligation to administer the mandated business shall have the relationship of simutaneous performances.
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Article 648
(1) In the absence of any special agreements, the mandatary may not claim remuneration from the mandator.
(2) If a mandatary is to receive remuneration, the mandatary may not claim this until after having performed the mandated business;provided, however, that if the remuneration is specified with reference to period, the provisions of Article 624, paragraph (2) apply mutatis mutandis.
(3) In the following cases, the mandatary may demand remuneration in proportion to the performance already completed:
(i) if the mandatary is no longer able to perform the mandated business due to any grounds not attributable to the mandator; or
(ii) if the mandate is terminated during the course of performance..
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Article 652
The provisions of Article 620
apply mutatis mutandis to mandates.
Article 620
If a lease is cancelled, the cancellation becomes effective solely toward the future. In such a case, the cancellation does not preclude a claim for compensation for loss or damage..
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No contract of loan for use shall be effective unless it is made in writing.
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Article 593
A loan for use becomes effective if one of the parties promises to deliver a certain thing, and the other party promises to return the thing when the contract is terminated after the other party gratuitously uses and makes profit of the borrowed thing..
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Article 266
(1) The provisions of Articles 274 through 276 apply mutatis mutandis if the superficiary must pay periodical rent to the owners of the land.
(2) Beyond what is provided for in the preceding paragraph, provisions on leasehold apply mutatis mutandis to rent to the extent that application is not inconsistent with the nature of the same.
Article 276
If a farming right holder fails to pay the rent for two or more consecutive years, the landowner may demand the extinction of the farming right..
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The subject of the contribution may not be money only. |
Article 669
If monies are the subject of contribution and a partner fails to make the contribution, that partner must pay interest on the same and otherwise compensate for loss or damage..
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Article 656
The provisions of this Section apply mutatis mutandis to entrustments of business that do not constitute juridical acts.
Article 648
(1) In the absence of any special agreements, the mandatary may not claim remuneration from the mandator.
(2) If a mandatary is to receive remuneration, the mandatary may not claim this until after having performed the mandated business;provided, however, that if the remuneration is specified with reference to period, the provisions of Article 624, paragraph (2) apply mutatis mutandis.
(3) In the following cases, the mandatary may demand remuneration in proportion to the performance already completed:
(i) if the mandatary is no longer able to perform the mandated business due to any grounds not attributable to the mandator; or
(ii) if the mandate is terminated during the course of performance..
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A lease becomes effective only when in writing. |
Article 601
A lease becomes effective if one of the parties promises to make a certain thing available for the other party to use and make profit, and the other party promises to pay rent for the leased thing and return the delivered thing when the contract is terminated..
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Article 446
(1) A guarantor has the responsibility to perform the obligation of the principal obligor when the latter fails to perform that obligation.
(2) No guarantee contract becomes effective unless it is made in writing.
(3) If a guarantee contract is concluded by electronic or magnetic record which records the terms thereof, the guarantee contract is deemed to be made in writing, and the provisions of the preceding paragraph apply..
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The duration of a lease may not exceed twenty years. |
Article 604
(1) The duration of a lease may not exceed 50 years. Even if the contract prescribes a longer term, that term is considered to be 50 years.
(2) The duration of a lease may be renewed;provided, however, that the term may not exceed 50 years from the time of the renewal..
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Article 298
(1) The holder of a right of retention must possess the thing retained with the due care of a prudent manager.
(2) The holder of the right of retention may not use, lease or provide as a security the thing retained unless that holder obtains the consent of the obligor;provided, however, that this does not apply to uses necessary for the preservation of that thing.
(3) If the holder of a right of retention violates the provisions of the preceding two paragraphs, the obligor may demand that the right of retention be terminated..
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Even if the parties specify the term of a lease, the lessor may request to terminate it at any time if he/she reserves the right to terminate during that period.
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Article 618
Even if the parties specify the term of a lease, the provisions of the preceding Article apply mutatis mutandis if one party reserves, or both parties reserve, the right to terminate during that period.
Article 617
(1) If the parties do not specify the term of a lease, either party may give a notice of termination at any time. In such cases, a lease as set forth in one of the following items terminates when the term prescribed in that item has passed after the day of the notice of termination:
(i) leases of land: one year;
(ii) leases of buildings: three months; and
(iii) leases of movables and party room: one day.
(2) With respect to leases of land with harvest seasons, the notice of termination must be given after the end of that season and before the next start of cultivation..
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Article 706
If an obligor has paid money or delivered anything as performance of an obligation that has not yet fallen due, the obligor may not demand the return of the money paid or thing delivered;provided, however, that if the obligor tendered anything by mistake, the obligee must return the benefit gained as a result..
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In cases where a lessee continues to make use of the land after the expiration of the term of the lease, if a lessor who knows of the same raises no objection, it shall be presumed that a further lease is entered into under conditions identical to those of the previous lease.
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Article 619
(1) If a lessee continues to make use or take the profits of the thing after the expiration of the term of the lease and a lessor that knows of the same raises no objection, it is presumed that a further lease is entered into under conditions identical to those of the previous lease. In such cases, each party may give a notice of termination pursuant to the provisions of Article 617.
(2) If one of the parties has provided security for the previous lease, the security is extinguished upon expiration of the term;provided, however, that this does not apply to a security deposit prescribed in Article 622-2, paragraph (1)..
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Article 598
(1) In the case prescribed in paragraph (2) of the preceding Article, upon the passage of a period that is sufficient for the borrower to use and make profit from the borrowed thing in line with the purpose referred to in that paragraph, the lender may cancel the contract.
(2) If the parties do not specify a period of a loan for use or a purpose of using and making profit from the borrowed thing, the lender may cancel the contract at any time.
(3) The borrower may cancel the contract at any time..
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