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KUHPer XIX

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INDONESIAN CIVIL CODE


Book Three - Contracts


Page 1 (Article 1-91) - Page 2 (Article 92-182) - Page 3 (Article 183-273) - Page 4 (Article 274-364) - Page 5 (Article 365-455) - Page 6 (Article 456-498) - Page 7 (Article 499-589) - Page 8 (Article 590-680) - Page 9 (Article 681-771) - Page 10 (Article 772-862) - Page 11 (Article 863-953) - Page 12 (Article 954-1044) - Page 13 (Article 1045-1135) - Page 14 (Article 1136-1226) - Page 15 (Article 1227-1232) - Page 16 (Article 1233-1323) - Page 17 (Article 1324-1414) - Page 18 (Article 1415-1505) - Page 19 (Article 1506-1596) - Page 20 (Article 1597-1687) - Page 21 (Article 1688-1778) - Page 22 (Article 1779-1864) - Page 23 (Article 1865-1955) - Page 24 (Article 1956-1993)


Contents

Chapter V - Concerning sale and purchase

Article 1506

The seller shall be responsible for the hidden defects, notwithstanding that he may be unaware of them himself, unless, in that case, he had stipulated that he would not be bound to any warranties whatsoever.

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Article 1507

In the instances mentioned in article 1504 and 1505, the buyer shall have the option to either return the assets or demand a refund of the sale consideration, or keep the assets and reclaim that part of the sale price, as determined by the judge, after having consulted experts.

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Article 1508

If the seller was aware of the defects in the assets, he shall be obliged, in addition to returning the sale consideration received there for, to compensate the buyer for the costs, damages and interest.

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Article 1509

If the seller was unaware of the defects in the assets, he shall be obliged only to return the sale price, in addition to compensating the buyer for the costs incurred in the sale and delivery, to the extent that he has paid for them.

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Article 1510

If the assets sold contained hidden defects as a result of which they have been destroyed, the loss incurred shall be borne by the seller who shall be obliged to return the sale consideration and provide other compensation, as mentioned in the two previous articles; however, any loss caused by accident shall be borne by the buyer.

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Article 1511

The legal claim resulting from defects which have caused the cancellation of the sale, shall be filed by the buyer as soon as possible, having regard to the nature of the defects, and by taking into account the customs of the locality where the sale was concluded.

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Article 1512

This legal claim shall not proceed with regard to sales which take place pursuant to legal authority.

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SECTION 3 ñ THE OBLIGATIONS of THE BUYER

Article 1513

The principal obligation of the buyer shall be to pay the sale price, at the time and location stipulated in the agreement.

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Article 1514

If nothing has been stipulated in this regard upon concluding the sale, the buyer shall pay at the location where and at the time that delivery shall occur.

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Article 1515

The buyer shall, notwithstanding that there is no express agreement, be obligated to pay interest accrued upon the sale price, if the sold and delivered assets produce proceeds or other income.

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Article 1516

If the buyer's ownership is interrupted by virtue of a collateral claim or pursuant to a legal reclamation, or if he has valid reasons to fear that it shall be interrupted, he may defer payment of the sale price until the seller has ceased the interruption, unless the seller chooses to provide security, or it has been stipulated that the buyer shall be obligated to pay regardless of any interruption.

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Article 1517

In the event that the buyer does not pay the sale price, the seller may demand the cancellation of the sale in accordance with the provisions of article 1266 and 1267.

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Article 1518

In the event of the sale of articles and furniture, the cancellation of the sale, for the benefit of the seller, shall take place by law and without any notification, after the lapse of the stipulated time for the collection of the assets sold.

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SECTION 4 - THE RIGHT to RE-PURCHASE

Article 1519

The ability to re-purchase that which has been sold shall arise from an agreement, pursuant to which the seller reserves the right to reclaim the sold assets, in return for the refund of the original sale price, together with the compensation referred to in article 1532.

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Article 1520

The period of validity of the right to re-purchase may not be stipulated to be for more than five years. If, however, a longer time period has been stipulated, it shall be reduced to the aforementioned five years.

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Article 1521

The stipulated time period shall be interpreted as absolute, and a judge shall not be permitted to extend it, and in the event that the seller fails to make his legal claim for re-purchase within the stipulated time period, the buyer shall continue to be the indisputable owner of the sold assets.

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Article 1522

This time period shall run against all individuals, even minors, without prejudice to the right of reclamation of the relevant parties, should there be grounds there for.

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Article 1523

The seller of immovable assets, who has reserved the right to re-purchase the sold assets, may exercise his right against a second buyer, notwithstanding that no provision regarding such right has been made in the second agreement.

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Article 1524

A person who has purchased pursuant to the agreement for re-purchase shall succeed to all rights of the seller; he can invoke prescription against the original owner or against those who claim to have collateral or other rights to the sold assets.

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Article 1525

He may exercise the privilege of dispossession against the creditors of the seller.

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Article 1526

In the event that he, who pursuant to the agreement for re-purchase, has bought an indivisible share in immovable assets, and who, after a legal claim has been filed against him for separation and distribution, has become the buyer of the entire assets, may require the seller to take over the entirety, in the event that the latter mentioned intends to invoke the aforementioned agreement.

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Article 1527

If several individuals, jointly, own certain assets, and have disposed of such in the same agreement, each respective individual may exercise his right to re-purchase to the extent of his share only.

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Article 1528

The same shall also apply if an individual, singularly, disposes of certain assets and leaves several heirs. Each one of these heirs may only exercise the right to re-purchase, to the extent of his share in the inheritance.

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Article 1529

However, in the circumstances referred to in the two previous articles, the buyer may demand that all other co-sellers or co-heirs, shall be summoned to agree among one another in relation to the re-purchase of the entire assets; and in the event that they fail to reach agreement, the claim for re-purchase shall be denied.

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Article 1530

If the sale of certain assets, belonging to various individuals, has not been concluded by all owners jointly and in its entirety, but each one of them has separately disposed of part of such assets which belonged to him, each owner may exercise the right to re-purchase separately, with respect to the share that is owing to him; and the buyer may not compel the party who exercises his right in this manner, to take over the entire assets.

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Article 1531

If the buyer is succeeded by several heirs, they can only exercise their right to repurchase, to the extent of their respective shares, whether in the event that the estate has not been divided, or in the event that the assets sold have been distributed among the heirs.

If, however, the estate has been divided, and the assets sold have become the share of one of the heirs, then the legal claim for re-purchase with regard to the entire assetís, may be filed against him.

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Article 1532

The seller who exercises the agreement for re-purchase is obligated to return the original sale consideration, and also to provide compensation for all valid costs incurred with respect to the sale and delivery, including the costs of necessary repairs, and those which have been incurred resulting in the appreciation in value of the sold assets, in the amount of such increase.

He may not become the owner of the re-purchased assets, until after compliance with all such requirements.

If the seller, pursuant to the provision for re-purchase, re-purchases the assets, those assets shall be free from all encumbrances and mortgages imposed by the buyer, and passed on to him; however, the seller is required to comply with any lease agreements which the buyer has entered into in good faith.

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SECTION 5 ñ SPECIFIC PROVISIONS IN CONNECTION WHIT THE PURCHASE AND SALE of RECEIVABLE DEBTS AND OTHER INTANGIBLE RIGHTS

Article 1533

The sale of a receivable debt shall include all that is attached to it, such as guarantees, privileges and mortgages.

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Article 1534

A person, who disposes of a receivable debt or another intangible right, shall guarantee the existence of such right at the time of delivery, notwithstanding that the sale has taken place without any warranty.

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Article 1535

He shall not be responsible for the financial capability of the debtor, unless he has bound himself as such and if so only to the extent of the sale price, which he has received for the receivable debt.

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Article 1536

If he has agreed to guarantee the financial capability of the debtor, this agreement shall be interpreted as applying to the current financial capability, and shall not apply to the future status, unless otherwise stipulated.

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Article 1537

An individual, who disposes of an inheritance, without stipulating the specific items, shall not be bound beyond the extent of his warranty in his capacity as heir.

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Article 1538

If he has already enjoyed the profit from certain assets, or, has received the amount of the debt due to the inheritance, or has disposed of some assets from the estate, he shall be obligated to compensate the buyer for such, unless otherwise stipulated.

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Article 1539

The buyer shall be obligated to compensate the seller for all payments made with respect to the debts and encumbrances on the inheritance, and to comply with the claim filed by the seller as the creditor of the inheritance, unless otherwise stipulated.

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Article 1540

If, prior to the delivery of a receivable debt which is sold, or of another intangible right, the debtor has settled the debt with the seller, this shall be sufficient to release him from the debt.

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SECTION 4 - CONCERNING THE REGULATIONS WHICH ARE PARTICULARLY RELEVANT to THE LEASE of AGRICULTURAL LAND

Article 1588

The specification, in an agreement for the lease of agricultural land, of a smaller or greater area than the actual area, shall not form grounds for an increase or decrease in the rent which shall arise only in the circumstances and according to the provisions of the fifth chapter of this book.

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Article 1589

If the lessee of agricultural land does not stock the land with the necessary cattle and agricultural equipment required for pasturing or planting; if he discontinues the pasturing or planting, or does not act as a proper head of the household in this regard; if he should use the leased property for a purpose other than that which it was designated for; or if, in general, he does not comply with the stipulations specified in the lease agreement and as a result thereof the less or is jeopardized, the latter mentioned shall then be authorized to, depending upon circumstances, demand the nullification of the lease, with compensation of costs, damages and interest. English - Bahasa Indonesia

Article 1590

All lessees of agricultural land must store the products of their labors in the designated places of storage.

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Article 1591

The lessee of agricultural land must notify the owner of all events occurring on the leased premises while working the land and failure to do so shall render him liable for compensation of costs, damages and interest. This notification shall be given within the same period as that which is stipulated to lapse between the time of the summons and the date of appearance at court depending upon the distance of the localities.

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Article 1592

If, during the term of a lease for several years, the whole or one half of the annual harvest is destroyed due to unforeseen circumstances, then the lessee may claim a reduction in the rent, unless the harvests from previous years were sufficient to compensate him there for. If he has not yet been compensated, the estimate of the reduction of the rent cannot be made until the end of the lease, when the profits of all the years shall be reconciled. The judge may however, permit the lessee to retain part of the rent temporarily, proportionate to the loss suffered.

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Article 1593

If the lease is entered into for one year only, and the entire or part of the harvest is lost, the lessee shall be released from paying the entire rent or a proportionate amount thereof. If the loss consists of less than one half, the lessee shall not be entitled to any discounts.

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Article 1594

The lessee shall not demand any discounts, if the loss of the produce is suffered after it has been separated from the land, unless the lease agreement provides that a certain portion of the harvest is promised to the owner in its original state; in which case the owner shall also be liable for his portion of the loss, provided that the lessee has not failed to deliver the owner's share of the harvest. In addition, the lessee may not claim any reduction, if the cause of the damage, at the time of conclusion of the lease, already existed and was known by him.

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Article 1595

The lessee, may pursuant to a specific agreement, be rendered liable in the event of these unforeseen circumstances.

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Article 1596

Such agreement, shall, however only cover regular unforeseen circumstances such as: volcanic eruptions, earthquakes, a lengthy drought, insects which destroy harvests, lightning or the untimely fall of tree-blossom.

This agreement shall not apply to extraordinary events which do not usually occur on the land, such as destruction caused by war, floods; unless the lessee has undertaken to be liable in all events, either foreseeable or unforeseeable.

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