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KUHPer XVII

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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 II - Commitments arising from contracts or agreements


SECTION 2 - CONCERNING THE CONDITIONS THAT ARE REQUIRED FOR THE VALIDITY OF AGREEMENTS

Article 1324

Duress takes place if it is of such nature that it results in a reasonable individual being coerced, and if it frightens him in such a way that he could expose himself or his wealth to considerable and immediate existing disadvantage. In consideration thereof, one shall have regard to the age, sex and the status of the individuals involved.

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Article 1325

Duress shall invalidate an agreement not only if it is committed against one of the undertaking parties, but also if it is committed against their spouses or kin in the ascending or descending line.

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Article 1326

The fear caused by deference towards father, mother or other kin in the ascending line, shall, without additional duress, be insufficient for the nullification of the agreement.

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Article 1327

An individual cannot claim nullification of an agreement based upon duress, if, following the cessation of duress, the agreement is approved, whether expressly or impliedly, or if the individual has allowed the time period stipulated by law for re-instatement of the agreement in its entirety, to lapse.

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Article 1328

Fraud shall form grounds for nullification of an agreement, if the deceit by one of the parties is of such nature that it is apparent that the other party would never have concluded the agreement without such deceit. Fraud shall not be presumed, but must be proven.

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Article 1329

Each individual shall be autho declared incompetent by law.rized to conclude agreements, unless he has been


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Article 1330

The following individuals shall be incompetent to conclude agreements:

(1)     minors;

(2)     individuals under guardianship;

(3)     married women, in the events stipulated by law, and in general, individuals who are prohibited by law from concluding specific agreements.

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Article 1331

The incompetent individuals mentioned in the previous article may, however, object to the agreement unless such objection is excluded by law. The individuals who are competent to bind themselves cannot invoke the incompetence of the minors, individuals under guardianship, and married women, with whom they have dealt.

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Article 1332

Only matters that can be traded can be the subject of agreements.

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Article 1333

An agreement shall have as a subject a matter which shall be stipulated according to its nature. The quantity of the matter may be uncertain, unless such quantity can be stipulated or determined at a later date.

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Article 1334

Future matters may be the subject of an agreement. An individual may not however, relinquish an inheritance which has not occurred or conclude an agreement regarding such inheritance, notwithstanding that he has obtained the consent of the testator; without prejudice to the provisions in Article 162, 176 and 178.

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Article 1335

Any agreement without a cause, or concluded pursuant to a fraudulent or implausible cause, shall not be enforceable.

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Article 1336

In the event that no cause is specified but that there is an existing permissible cause, or if there is a permissible cause other than the one specified, the agreement shall be enforceable.

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Article 1337

A cause is not permissible if it is prohibited by law, or if it violates good conduct, or public order.

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SECTION 3 - THE EFFECTS OF AGREEMENTS

Article 1338

All legally executed agreements shall bind the individuals who have concluded them by law. They cannot be revoked otherwise than by mutual agreement, or pursuant to reasons which are legally declared to be sufficient. They shall be executed in good faith.

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Article 1339

Agreements shall bind the parties not only to that which is expressly stipulated, but also to that which, pursuant to the nature of the agreements, shall be imposed by propriety, customs, or the law.

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Article 1340

Agreements shall only be enforceable between the parties involved. They shall not be detrimental to third parties; third parties shall not profit from them, except in the event stipulated in Article 1316

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Article 1341

However, each creditor may invalidate any acts which were not compulsory, committed by the debtor, in any name, which are detrimental to the creditors, provided that it is proven that while committing the acts, the debtor as well as the individual with whom he committed the act or on whose behalf he acted, was aware that it would result in detriment to the creditors. Rights, which were obtained by a third party in good faith over the goods which were the subject matter of the invalid action, shall be honored. To nullify the acts committed by the debtor for free, it shall suffice if the creditor displays that the debtor was aware at the time the act was committed that he would jeopardize his creditors, regardless of whether or not the beneficial party shared that knowledge.


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SECTION 4 - INTERPRETATION OF AGREEMENTS

Article 1342

If the wording of an agreement is clear, one shall not deviate from it by way of interpretation.

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Article 1343

If the wording of an agreement is open to several interpretations, one shall ascertain the intent of the parties involved rather than be bound by the literal sense of the words.

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Article 1344

In the event that a stipulation is open to two interpretations, one shall interpret it in the sense in which it produces some effect, rather than in the sense in which it would be entirely ineffective.

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Article 1345

Wording which is open to two kinds of interpretation shall be interpreted in the sense which corresponds most with the nature of the agreement.

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Article 1346

If the wording is ambiguous, it shall be interpreted in a manner which is customary in the country or in the location where the agreement was entered into.

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Article 1347

Customary stipulations shall be deemed to be implied in the agreement, notwithstanding that these have not been expressed.

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Article 1348

All stipulations, contained in an agreement, shall be interpreted having regard to their relationship to one another; each shall be interpreted having regard to its relationship to the whole agreement.

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Article 1349

In the event of ambiguity, the agreement shall be interpreted against the party who stipulated something, and in favor of the party who has bound himself thereto.

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Article 1350

Regardless of the generality of the wording of an agreement, it shall cover the matters regarding which the parties clearly intend to enter into the agreement.

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Article 1351

If a party has specified something in an agreement for the purpose of clarifying the contract, then he shall not be considered to have restricted and limited the binding validity by law, which is contained in the unexpressed cases.

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Chapter III Contracts arising by force of law

Article 1352

Contracts arising by force of law, shall arise by statute or by law as a result of people's acts.

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Article 1353

Contracts, which arise by force of law as a result of people's acts, shall be caused by a valid legal or an illegal act.

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Article 1354

In the event that an individual, voluntarily, without having been assigned thereto, manages a person's affairs with or without the other person's knowledge, he shall impliedly bind himself to continue and complete the management, until the person whose interests are managed shall be in a position to manage his own affairs. He shall similarly involve himself in everything related to such affairs. He shall be subject to all the obligations which he would be obliged to comply with, in the event that he had been empowered by a specific authorization.

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Article 1355

He shall be obligated to continue his management, notwithstanding that the person whose interests he has assumed may pass away prior to the completion of the matter, until such time that the heir can take over such management.

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Article 1356

He shall be obligated, with respect to such management, to fulfill the obligations in the manner of a proper head of a household. However, the judge shall be authorized to reduce the compensation of costs, damages and interest resulting from the error or negligence of the managers, depending upon the circumstances, which have caused him to manage the affairs.

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Article 1357

The person whose interests have been properly managed, shall be bound to fulfill any contract, which has been concluded by the manager on his behalf, and shall indemnify him in respect of all agreements concluded by him personally, and shall compensate him for all beneficial and necessary expenses.

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Article 1358

An individual, who manages a person's affairs without authorization, shall not be entitled to any remuneration.

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Article 1359

Each payment presumes a debt; each payment made which was not pursuant to a debt may be reclaimed. With respect to gratuitous contracts which one has fulfilled voluntarily, there shall be no reclamation.

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Article 1360

An individual, who has accidentally or knowingly accepted something that was not owed to him, must return such to the individual from whom he has accepted it.

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Article 1361

In the event that an individual, who by accident considers himself to be a debtor, has repaid a debt, he shall be entitled to reclaim the payment from the creditor. However, this right shall lapse, if the creditor, as a result of the payment, has destroyed the acknowledgment of debt, without prejudice to the right of reclamation by the individual who has paid, from the actual debtor.

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Article 1362

An individual, who has accepted something in bad faith which was not owed to him, shall return such with interest and proceeds, effective as of the day of payment, without deductions being made from the compensation of costs, damages and interest in respect of depreciation in the value of the goods. If the goods are destroyed, notwithstanding that such occurred by accident, he shall be obligated to pay the value thereof together with compensation of costs, damages and interest, unless he can prove that the goods would also have been destroyed had they been in the care of the individual to whom they should have been returned.

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Article 1363

An individual who has sold goods which were not owed and were received by him in good faith, may remedy the situation by returning the sale price. If he has in good faith handed over the goods gratuitously, he shall not be obligated to repay anything.

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Article 1364

The individual, to whom the goods are returned, shall be bound, even to the individual who obtained ownership of the goods in bad faith, to compensate the individual for all necessary expenses incurred in the maintenance of the goods. The owner shall be entitled to retain possession of the goods until those expenses are reimbursed.

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Article 1365

A party who commits an illegal act which causes damage to another party shall be obliged to compensate therefor.

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Article 1366

An individual shall be responsible, not only for the damage which he has caused by his act, but also for that which was caused by his negligence or carelessness.

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Article 1367

An individual shall be responsible for the damage which he has caused by his own act, as well as for that which was caused by the acts of the individuals for whom he is responsible, or caused by matters which are under his supervision. Parents or guardians shall be responsible for the damage caused by minor children who live with them and over whom they exercise parental authority or guardianship. Employers and those who have been assigned to manage affairs of other individuals shall be responsible for the damage caused by their servants and subordinates in the course of duties assigned to them. Teachers and work supervisor shall be responsible for the damage caused by their students and apprentices, during the period that they are under their supervision. The above-mentioned responsibility shall cease, if the parents, guardians, school teachers and work supervisor can prove that the act, for which they could be held responsible, could not have been prevented.

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Article 1368

An owner of an animal, or an individual who uses one, as long as the animal is available for his use, shall be responsible for any damage caused by the animal, whether the animal is under his supervision and in his care, or whether it is lost or has escaped.

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Article 1369

The owner of a building shall be responsible for the damage caused by an entire or partial collapse of the building, should this occur due to absence of maintenance or as a result of a defect in the construction or interior of the building.

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Article 1370

In the event of willful or negligent manslaughter, the remaining spouse, the children or parents of the victim, who have been supported by the victim's earnings, shall be entitled to file a legal claim for compensation based upon the status and the financial condition of the individuals involved, and pursuant to the circumstances.

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Article 1371

Willful or negligent injury to or mutilation of any part of the body shall entitle the injured party to claim compensation for damage caused by the injury or the mutilation in addition to compensation for expenses incurred in the recovery. This shall also be evaluated based upon the status and the financial condition of the individuals involved, and upon the circumstances. This last stipulation is in general applicable to the consideration of the damage resulting from any misdemeanor committed against any individual.

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Article 1372

The civil legal claim with respect to an offense shall extend to compensation of damages and to the reinstatement of good name and honor that were damaged by the offense. The judge shall, in the consideration thereof, have regard to the severity of the offense, also the position, status and financial condition of the parties involved and the circumstances.

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Article 1373

The offended party may also demand a judgment declaring that the offensive act is slanderous or offensive. If he demands a declaration that the offensive act is slanderous, then the provisions if Article 314 of the Penal Code with regard to punishment for slander, shall apply. The sentence shall, if the offended party so requests, at the expense of the convicted party, be posted in public in so many copies and in the location as ordered by the judge.

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Article 1374

Notwithstanding his obligation to compensate, the defendant can prevent the request referred to in the previous article, by offering and providing a public declaration before the judge, stating that he regrets the act committed; that he therefore apologizes and that he considers the offended party to be a person of honor.

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Article 1375

The legal claims mentioned in the three previous articles, shall also apply to spouses, parents, grandparents and grandchildren, following the death of the spouses, children, grandchildren, parents and grandparents against whom the offensive act was committed.

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Article 1376

A civil legal claim with respect to the offense cannot be admitted, if it does not appear that there existed intent to offend. The intent to offend shall not be considered to have existed if the alleged offender apparently acted in the public's interest or if he did so as an act of necessary defense.

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Article 1377

A civil legal claim shall also not be admitted, if the offended party has been irrevocably declared guilty of the act which was allegedly committed against him. An individual who continues to insult another individual and who clearly intends to insult notwithstanding that the claim against him has been proven in a legal judgment or in an authentic deed shall be obligated to compensate for the damage suffered by the other party.

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Article 1378

All legal claims, described in the previous six articles, shall lapse due to expressly stipulated or implied releases, if following the offense committed and known to the offended party, the offended party shall provide proof of reconciliation or forgiveness, which cannot be reconciled with the intent to claim compensation or reinstatement of honor.

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Article 1379

The legal claim for compensation, as mentioned in Article 1372, shall not be lost either as a result of the death of the offender, or the death of the offended party.

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Article 1380

The civil legal claim with respect to an offense shall lapse after one year, effective as of the day upon which the act was committed and known to the plaintiff.

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Chapter IV - Concerning the nullification of contracts

Article 1381

Contracts shall be nullified as a result of the following: By payment; By offer of immediate payment, followed by consignment or custody; By renewal of the debt; By comparison or compensation; By consolidation of debts; By exemption from a debt; By the destruction of the goods that were owed; By the invalidity or the nullification; By the implementation of a dissolving condition, which is described in the first chapter of this book; and By prescription, which shall be the subject of a separate title.

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SECTION 1 CONCERNING PAYMENT

Article 1382

A contract can be fulfilled by any one individual who has an interest therein, such as a co-debtor or a guarantor. A contract may also be fulfilled by a third party who does not have any interest in it, provided that the third party acts on behalf of and for the purpose of releasing the debtor, or, if he acts on his own behalf, he shall not assume the rights of the creditor.

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Article 1383

A contract to do something, may not be performed by a third party if this is contrary to the wishes of the creditor who has an interest in the act being committed by the debtor himself.

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Article 1384

One is required to be the owner of the goods which have been provided as payment and must be authorized to transfer such goods, for the payment to be valid. The payment of a sum of money or of any other consumable matter cannot be reclaimed from one who has consumed the matter given as payment in good faith, notwithstanding that the payment was made by one who was neither the owner nor authorized to dispose of the matter.

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Article 1385

The payment shall be made to the creditor, or to an individual who has received authorization from him, or who has been authorized by a judge or the law to accept on behalf of the creditor. A payment made to the individual who is not authorized to accept on behalf of the creditor shall be valid to the extent the creditor approves of it or benefits from it.

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Article 1386

The payment, made in good faith, to the person who owns the debt, shall be valid, notwithstanding that the owner due to satisfaction of the debt has been discharged from such ownership.

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Article 1387

The payment made to the creditor shall be invalid if he is incompetent to accept such, unless the debtor can prove that the creditor has really benefited from the payment.

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Article 1388

The payment, made by a debtor to the creditor, despite a seizure or opposition, shall be invalid with regard to creditors who have effected the seizure or the opposition; they can also, pursuant to their right, compel the debtor to pay again, excluding in such case their right to claim compensation from the creditor.

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Article 1389

No creditor can be forced to accept payment for a matter, unless it was indebted to him, notwithstanding that the goods offered are of equal or greater value.

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Article 1390

No debtor may require a creditor to accept partial payment of a debt, notwithstanding that the debt is divisible.

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Article 1391

The debtor of certain and specific goods shall be released by the delivery of such goods which should be in the condition that the goods were in at the time that they were delivered previously, unless the depreciation, which the goods have suffered, was not caused by his actions or negligence nor due to the fault or negligence of certain individuals for whom he is responsible, or unless it became apparent after a late delivery of the goods.

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Article 1392

If the goods owed, are only determined according to their type, the debtor shall not, in order to release himself from the debt, be obligated to return the goods of the best type, however, delivery of goods of bad quality goods shall not be permitted, to.

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Article 1393

Payment shall be made at the location stipulated in the agreement; if no such location has been stipulated, payment shall take place where the goods, which form the subject matter of the agreement, at the conclusion of the contract, were located. With the exception of these two instances, payment shall take place at the residence of the creditor where he resided at the time the contract was concluded, provided that he shall continue to live in this residence, for the term of the contract, otherwise the payment shall take place at the residence of the debtor.

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Article 1394

Hires, long term leases, annual salaries for support, perpetual interest or life-annuities, interest payments on loans, and in general, anything that is payable annually or pursuant to stipulated shorter terms, shall be paid in installments, and the payment of three consecutive installments shall give rise to the presumption that all the previous installments have been paid, unless it is proven otherwise.

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Article 1395

The costs incurred in the payment, shall be borne by the debtor.

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Article 1396

A person who owes various debts has the right to declare at the time of making the payment, to which one of the debts such payment shall apply.

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Article 1397

A person who owes a debt upon which interest accrues, shall not, without the permission of the creditor, apply any payment of interest to settlement of the principal debt. Payments towards the principal sum and towards interest which have not settled the entire loan, shall apply primarily to fulfillment of the interest payments.

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Article 1398

If an individual who has several debts has accepted a release, in which the creditor declares that that which he has received has satisfied one of the debts, the debtor cannot demand that the payment shall be regarded as a release of another debt unless there has been fraud or deception on the part of the creditor.

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Article 1399

If the release does not stipulate which debt the payment was made in respect of, then the payment shall be considered as having been made in respect of the debt which the debtor, among the equally collectable debts, would most benefit from being satisfied; however, if the debts are not collectable, the payment shall be considered to have been made in satisfaction of the debt which was collectable, in priority to the non-collectable debts, notwithstanding that the first debt might have been less significant than the others. If the debts are of an equal nature, settlement shall be made on the earliest dated one; if, however, they are all equal, the debts shall all be settled proportionately. If none of the debts are collectable, the debts shall be settled as if the debts are collectable.

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Article 1400

Subrogation, or the substitution of a third party in place of and who succeeds to the rights of the creditor, who himself has paid this creditor, shall take place by agreement or by force of law.

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Article 1401

Substitution shall occur by agreement, as follows:

(1)     if the creditor, having accepted the payment from a third party, shall transfer the rights, legal claims, privileges and encumbrances, which he was entitled to from the debtor. This subrogation shall occur simultaneously with the payment.

(2)     if the debtor arranges a loan for the purpose of payment of his debt and the lender shall assume the rights of the creditor, in order to validate this subrogation, the act of lending as well as the release shall then be documented in an authentic deed, and the loan document shall stipulate that the loan is made for the purpose of making the payment; and the release shall stipulate that the payment was made from the money that was advanced by the new creditor for such purpose. Such subrogation shall be implemented without the participation of the creditor.

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Article 1402

Subrogation shall take place by force of law:

(1)     on behalf of an individual who is also a creditor and who settles the debt with another creditor who has priority, due to a privileged debt or mortgage;

(2)     on behalf of a buyer of any immovable assets who uses the consideration for the sale to repay the creditors who held the goods as collateral.

(3)     on behalf of those who, together with others or on behalf of others, are obliged to settle such debt, and who shall benefit from the payment of such debt;

(4)     on behalf of an heir who, having accepted an estate, pursuant to the privilege of estate description, settles the debts of the inheritance with his own money.

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Article 1403

The subrogation stipulated in the previous article, shall take place with respect to guarantors as well as debtors; however, it cannot diminish the rights of the creditor if he has only been partly paid; in this regard, he can exercise his rights in respect of that which remains owing to him, preferably over the other debtors from whom he has not received any partial settlement.

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SECTION 2 - CONCERNING OFFER OF IMMEDIATE PAYMENT FOLLOWED BY CONSIGNMENT OR CUSTODY

Article 1404

If the creditor refuses to accept payment, the debtor may offer him immediate payment of the debt, and if the creditor refuses again to accept such, may place the money or goods in legal custody. Such offer, followed by placement in custody, shall release the debtor and shall be considered as payment in this regard, provided that it is done in a legal manner; the goods placed in such custody shall be for the account of the creditor.

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Article 1405

In order that such offer shall be valid, the following shall be deemed necessary:

(1)     it shall be made to a creditor who is authorized to accept it, or to an individual, who is authorized to accept on his behalf;

(2)     it shall be made by an individual who is authorized to pay;

(3)     it shall be applied to the entire collectable sum and interest accrued thereon, and shall also include the costs which have been settled, and also regarding a sum of money for the costs which have not been settled subject to further settlement;

(4)     the stipulated time limit has expired, if such has been stipulated for the benefit of the creditor;

(5)     the condition pursuant to which the debt has been made shall be complied with;

(6)     the offer shall be made at the location where the payment, in accordance with the agreement, should have taken place, and in the event that no special agreement exists, either to the creditor personally, either at his actual or selected residence;

(7)    . the offer shall be made by a notary public or by a process server before two witnesses.

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Article 1406

In order that a consignment shall be valid, authorization shall not be demanded from the judge; the following shall be sufficient:

(1)     the consignment shall be preceded by a signed notification submitted to the creditor which stipulates the date, time and location at which the offered goods shall be placed in custody;

(2)     the debtor shall have relinquished his rights over the offered goods, by placing them in custody in a consignment to or storage account at the administration of the legal board which shall, in the event of dispute, take this into account, together with the interest payments made up to the day upon which they were placed in custody;

(3)     a notary or process server, shall draw up an official report in the presence of two witnesses, covering the nature of the offered currency, the refusal of the creditor to accept such, or his failure to appear to accept the money, and finally carry out the consignment itself;

(4)     notwithstanding that the creditor has failed to appear to accept the money, the official report shall be forwarded to him together with a reminder to collect the goods in custody.

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Article 1407

The costs incurred in the offer of immediate payment and consignment shall be payable by the creditor, if such have been carried out in accordance with the law.

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Article 1408

The debtor may retrieve stored goods which have not been accepted by the creditor; in this regard, neither debtors nor guarantors shall be released from their debts.

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Article 1409

If the debtor himself has been given a legally enforceable sentence, and in which his proposed offer has been declared sound and valid, he cannot, even with the creditor's approval, reclaim the stored assets without jeopardizing the other debtors and guarantors.

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Article 1410

The other debtors and guarantors shall also be released, if, following the date of the notification of the consignment, the creditor has allowed one year to lapse, without having disputed the existence of the assets.

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Article 1411

A creditor, who has granted approval to a debtor to reclaim his goods placed in custody, after the consignment has been declared valid pursuant to a legally enforceable judgment, can no longer, in recovering his debt, avail of the privileges of mortgages which were attached thereto.

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Article 1412

In the event that the debt comprises specific goods, which should have been delivered at the location of the goods, the debtor shall, through the intervention of the court, remind the creditor to take the goods with him as specified in a deed, which shall be notified to the creditor himself or the creditor's residence or to the residence which was selected for the conclusion of the agreement. If, after this reminder has taken place, the creditor has not taken the goods, the debtor may request the judge's permission to store the goods at a different location.

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SECTION 3 - CONCERNING RENEWAL OF A DEBT

Article 1413

Renewal of a debt arises in the following three circumstances:

(1)    if a debtor, on behalf of his creditor, executes a new contract of indebtedness, in substitution for the original one, which shall then be nullified;

(2)    if the previous debtor who has been released from his contract by the creditor is substituted by a new debtor;

(3)    if, pursuant to a new agreement, a new creditor replaces the previous creditor, in respect of whom the debtor shall be released from his contract.

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Article 1414

Renewal of a debt can only take place between individuals who are competent to conclude contracts.

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