KUHPer XX

From HAKItree

English Indonesian Download

---

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 1688-1788) - Page 22 (Article 1779-1864) - Page 23 (Article 1865-1955) - Page 24 (Article 1956-1993)

---

Contents 1 Chapter VII - Concerning Granting On Lease And Taking On Lease 1.1 Article 1597 1.2 Article 1598 1.3 Article 1599 1.4 Article 1600 2 Chapter VII A - Concerning Agreements Regarding The Performance Of Services 2.1 Article 1601 2.2 Article 1601a 2.3 Article 1601b 2.4 Article 1601c 2.5 Article 1601d 2.6 Article 1601e 2.7 Article 1601f 2.8 Article 1601g 2.9 Article 1601h 2.10 Article 1601i 2.11 Article 1601j 2.12 Article 1601k 2.13 Article 1601l 2.14 Article 1601m 2.15 Article 1601n 2.16 Article 1601o 2.17 Article 1601p 2.18 Article 1601q 2.19 Article 1601r 2.20 Article 1601s 2.21 Article 1601t 2.22 Article 1601u 2.23 Article 1601v 2.24 Article 1601w 2.25 Article 1601x 2.26 Article 1601y 2.27 Article 1602 2.28 Article 1602a 2.29 Article 1602b 2.30 Article 1602c 2.31 Article 1602d 2.32 Article 1602e 2.33 Article 1602f 2.34 Article 1602g 2.35 Article 1602h 2.36 Article 1602j 2.37 Article 1602k 2.38 Article 1602l 2.39 Article 1602m 2.40 Article 1602n 2.41 Article 1602o 2.42 Article 1602p 2.43 Article 1602q 2.44 Article 1602r 2.45 Article 1602s 2.46 Article 1602t 2.47 Article 1602u 2.48 Article 1602v 2.49 Article 1602w 2.50 Article 1602x 2.51 Article 1602y 2.52 Article 1602z 2.53 Article 1603 2.54 Article 1603a 2.55 Article 1603b 2.56 Article 1603c 2.57 Article 1603d 2.58 Article 1603e 2.59 Article 1603f 2.60 Article 1603g 2.61 Article 1603h 2.62 Article 1603i 2.63 Article 1603i bis 2.64 Article 1603i ter 2.65 Article 1603j 2.66 Article 1603k 2.67 Article 1603l 2.68 Article 1603m 2.69 Article 1603n 2.70 Article 1603o 2.71 Article 1603p 2.72 Article 1603q 2.73 Article 1603s 2.74 Article 1603s bis 2.75 Article 1603t 2.76 Article 1603u 2.77 Article 1603v 2.78 Article 1603w 2.79 Article 1603x 2.80 Article 1603y 2.81 Article 1603z 2.82 Article 1604 2.83 Article 1605 2.84 Article 1606 2.85 Article 1607 2.86 Article 1608 2.87 Article 1609 2.88 Article 1610 2.89 Article 1611 2.90 Article 1612 2.91 Article 1613 2.92 Article 1614 2.93 Article 1615 2.94 Article 1616 2.95 Article 1617 3 Chapter VIII - Concerning Partnerships 3.1 Article 1618 3.2 Article 1619 3.3 Article 1620 3.4 Article 1621 3.5 Article 1622 3.6 Article 1623 3.7 Article 1624 3.8 Article 1625 3.9 Article 1626 3.10 Article 1627 3.11 Article 1628 3.12 Article 1629 3.13 Article 1630 3.14 Article 1631 3.15 Article 1632 3.16 Article 1633 3.17 Article 1634 3.18 Article 1635 3.19 Article 1636 3.20 Article 1637 3.21 Article 1638 3.22 Article 1639 3.23 Article 1640 3.24 Article 1641 3.25 Article 1642 3.26 Article 1643 3.27 Article 1644 3.28 Article 1645 3.29 Article 1646 3.30 Article 1647 3.31 Article 1648 3.32 Article 1649 3.33 Article 1650 3.34 Article 1651 3.35 Article 1652 4 Chapter IX - Concerning Legal Entities 4.1 Article 1653 4.2 Article 1654 4.3 Article 1655 4.4 Article 1656 4.5 Article 1657 4.6 Article 1658 4.7 Article 1659 4.8 Article 1660 4.9 Article 1661 4.10 Article 1662 4.11 Article 1663 4.12 Article 1664 4.13 Article 1665 5 Chapter X - Concerning Gifts 5.1 Article 1666 5.2 Article 1667 5.3 Article 1668 5.4 Article 1669 5.5 Article 1670 5.6 Article 1671 5.7 Article 1672 5.8 Article 1673 5.9 Article 1674 5.10 Article 1675 5.11 Article 1676 5.12 Article 1677 5.13 Article 1678 5.14 Article 1679 5.15 Article 1680 5.16 Article 1681 5.17 Article 1682 5.18 Article 1683 5.19 Article 1684 5.20 Article 1685 5.21 Article 1686 5.22 Article 1687

Chapter VII - Concerning Granting On Lease And Taking On Lease

SECTION 4 CONCERNING THE REGULATIONS WHICH ARE PARTICULARLY RELEVANT TO THE LEASE OF AGRICULTURAL LAND

Article 1597

A lease of land, not concluded in writing, shall be deemed to have been concluded for the period required by the lessee for the collection of all produce of the leased plot of land. As such, a lease of a pasture, an orchard, and of all other land from which all the produce shall be collected within Indonesian Civil Cd0o00e the course of a year, shall be deemed to have been entered into for a year.

A lease of agricultural lands, which shall be planted in rotation, shall be deemed to be entered into for as many years as there are rotations of that nature.

-

Article 1598

If, after the termination of a lease concluded in writing, the lessee shall remain in possession of the property and is permitted to do so, the consequences of the new lease shall be regulated by the previous articles.

-

Article 1599

The lessee whose lease is terminated and his successor to the lease, are obligated to accommodate one another in the manner required in order to facilitate the vacation and occupation of the property, with regard to the planting for the subsequent year, the harvesting of fruit which are still on the field, as well as otherwise in accordance with local custom.

-

Article 1600

The lessee shall also, upon his departure, leave the hay and the fertilizer from the previous year, if he received such at the commencement of his lease; and notwithstanding that he did not receive any, the owner may, according to an estimate to be made, continue to request these items to be left.

-

Chapter VII A - Concerning Agreements Regarding The Performance Of Services

SECTION 1 - GENERAL PROVISIONS

Article 1601

With the exception of agreements to perform several services, which are regulated by the terms and conditions agreed upon and in the absence of such, shall be regulated by custom, there are two kinds of agreements in which one party covenants to the other to perform services in return for remuneration, as follows; a labor agreement and a for work.

-

Article 1601a

A labor agreement is an agreement in which one party, the laborer, agrees to render his services to the other party, the employer, for a specific term in return for remuneration.

-

Article 1601b

The contract for work is the agreement by which one party, the contractor, binds himself to the other party, the client, to carry out specific tasks for a specific price.

-

Article 1601c

If an agreement contains the features of a labor agreement and of any other kind of agreement, then the provisions regarding a labor agreement as well as those relevant to another kind of agreement, which also have the same features, shall apply; in the event of a dispute regarding these provisions, those relating to the labor agreement shall apply. If a contract for work is followed by more similar agreements, whether directly or otherwise, or if, upon the conclusion or execution of the contract for work, it appears that the intention of the parties is to conclude more such similar agreements in such manner that the various contracts shall be regarded as a joint labor agreement, then the stipulations regarding the labor agreement shall be applicable to these agreements on a joint and several basis, with the exception of the stipulations of the sixth part of this title.

If, however, in such case, the first agreement has been concluded for test purposes only, it shall be deemed to have retained its nature as a contract for work and the stipulations of the Chapter VI shall then apply to it.

-

SECTION 2 - CONCERNING LABOR AGREEMENTS IN GENERAL

Article 1601d

In the event that a labor agreement is concluded in writing, the costs of the deed and other additional costs shall be borne by the employer.

-

Article 1601e

If, upon concluding the agreement, a deposit has been provided and accepted, it shall not authorize the parties to cancel the agreement by ordering the retention or return of the deposit. The deposit may only be deducted from the wage, if the services have not been rendered for longer than three months, whereas the agreement has been entered into for a longer or unspecified time period.

-

Article 1601f

With regard to labor agreements concluded by a married woman as a laborer, the law shall presume that she has obtained the approval of her husband. She can, therefore, commit all acts in relation to these agreements, to grant a discharge and to appear in court, without the assistance of her husband. She shall be entitled to use whatever she has received or claimed pursuant to the executed labor agreement, for the benefit of her family.

-

Article 1601g

A minor shall be competent to conclude a labor agreement as a laborer, if he has been given either verbal or written authorization to do so by his legal representative. A verbal authorization can only apply to the conclusion of a certain labor agreement. If the minor has not reached the age of eighteen years, then the authorization shall be granted in the presence of the employer, or of the individual who acts on his behalf.

The authorization cannot be conditional. If the authorization is issued in writing, the minor must submit the authorization to the employer, who shall immediately issue a certified copy to the minor and shall return the authorization to the minor or to the individual who is entitled to it upon termination of the labor agreement.

To the extent that the authorization is not subject to certain specific stipulations, the minor in the performance of anything that is related to the labor agreement entered into by him pursuant to the authorization issued, shall be equal to an adult, without prejudice to the provision in the third paragraph of article Article 1603f. However, he cannot appear in court without the support of his legal representative, unless it is apparent to the judge that the legal representative is incapable of expressing himself.

-

Article 1601h

If an incompetent minor has concluded a labor agreement and as a result thereof, without any objection from his legal representative, has worked in his employer's service for a period of six weeks, he shall be regarded as having been authorized verbally by his representative to conclude his labor agreement.

-

Article 1601i

A labor agreement concluded between two spouses shall be void.

-

Article 1601j

A regulation stipulated by the employer shall only bind the laborer if he has declared in writing that he agrees with such regulation and if the following is complied with:

(1)   that a complete copy of the regulation shall be furnished to the laborer free of charge by or on behalf of the employer;

(2)   that a signed complete copy of the regulation has been submitted by or on behalf of the employer to the Department of social affairs (Afdeling Arbeid van het Departtement van sociale Zaken) for the public's review;

(3)   that a complete copy of the regulations shall be displayed at a location that is accessible by the laborer, preferably in the workplace, where it shall be visible and legible. The submission and the review of the regulations at the Department of social affairs shall be free of charge. Each interested party may obtain a free copy of the regulations from the Department of social affairs. Each stipulation, which violates any provision of this article shall be void.

-

Article 1601k

If, during the service relationship, a regulation shall be stipulated or an existing one shall be amended, the new regulation or the amended one shall bind the laborer only if a complete copy of the draft or of the proposed amendments has been submitted to him for his review, prior to the confirmation thereof during such a time period and without any charge, so that he may be properly advised of the contents. If the laborer, following the stipulation of the new or the amended regulation, does not agree, then within a period of four weeks after he has become aware of the stipulation, he may request the termination of the labor agreement from the judge.

The judge shall decide after the hearing or proper summons of the opposing party in the highest instance and shall approve the request, unless he is of the opinion that the laborer's interest shall not or shall not to a serious extent be disadvantaged as a result of the new or amended regulation. Pending the decision of the judge and upon denial of the request, the service contract shall continue and the new or amended regulation shall apply as of the day on which it was effected.

If the request is granted, the judge shall decide when the service contract shall terminate and the laborer shall be entitled to compensation as stipulated in Article 1693q which relates to termination by the employer. Each stipulation which violates any provision of this article shall be void.

-

Article 1601l

A statement from a laborer, in which he covenants to agree with any regulation to be stipulated in future or any future amendment to an existing regulation shall be void.

-

Article 1601m

The stipulations of the regulation can only be deviated from by specific written agreement.

-

Article 1601n

Each stipulation between the employer and the laborer, which violates a collective labor agreement to which they are both bound, shall be declared void if a claim has been filed by any party to the collective labor agreement, with the exception of the employer himself.

A collective labor agreement shall be interpreted as a an arrangement, drawn up by one or more employers or one or more associations of employers which form legal entities, with one or more associations of laborers which form legal entities, concerning labor conditions, which must be taken into account at the time the labor agreements are concluded.

-

Article 1601o

In calculating the daily wage for the purpose of this title, a day shall consist of ten hours, a week of six days, a month of twenty five days and a year of three hundred days. In the event that the wage, either in its entirety or partially, shall be determined in a manner other than in terms of time, then the daily wage shall be computed according to the average wage of the laborer, computed over the last thirty working days; in the absence of this criteria, the wage shall be determined as the customary wage for the labor that is most similar in nature, location and time.

-

Article 1601p

The wage of laborers, who are not given lodgings by the employer, shall not be stipulated otherwise than in terms of the following:

(1)   monetary;

(2)   food for consumption including food supplements, lighting and fuel supplies for use at the location where they are distributed;

(3)   clothing, to be worn by the laborers in the performance of their services;

(4)   a specific amount of the products of the company, from which the wage is earned, or the basic or supplementary material used by that company, to the extent that the nature and amount of the products or basic or supplementary material form the basic necessities of life for the laborer and his family, or are used by the company which employs the laborer, as basic or supplementary material, implements or tools, but in no circumstances shall it include alcoholic drinks and opium;

(5)   the use of a specific piece of land or pasture or stables for a stipulated number of animals according to kind, belonging to the laborer or one of the members of his family, the use of work tools or equipment, including the maintenance thereof;

(6)   specific labor or services, by or on behalf of the employer performed for the laborer;

(7)   the use of a designated residence or part thereof, free medical treatment for the laborer and his family, free use of one or more servants, of an automobile or other means of transportation or of one or more horses and other such similar allowances which reduce the expenses of the household, to the extent that it is not yet included in the previous provisions;

(8)   a stipend during a period of leave after a specific number of years of service, or the entitlement to free transportation to the place of origin or to and from the place where leave shall be taken.

-

Article 1601q

In the event that no specific wage has been stipulated pursuant to an agreement or regulation, the laborer shall be entitled to such wage that at the time the agreement was concluded, would customarily have been stipulated for a similar job at the location where it is performed. If no such custom exists, the wage shall be reasonably determined by taking into account the circumstances.

-

Article 1601r

To the extent that a wage, other than that permitted in Article 1601p, is stipulated, the amount shall be evaluated in monetary terms and shall be deemed to be stipulated as five times the amount. The entire wage due shall, however, not exceed more than one third of the wage determined in accordance with the provisions of the previous article. Any stipulation which violates any provision of this article shall be void.

-

Article 1601s

Each agreement between the employer or one of his officials or supervisors and one of the laborers who is under their supervision shall be prohibited and void, if it provides that the laborer shall be obliged to spend his wage or other income or part thereof in a specific manner, or to obtain his necessaries from a specific place or from a specific individual. (AB.23; Bw. 1601 p and t) This provision shall not apply to a stipulation which provides for participation by the laborer in a fund, provided that the fund complies with the conditions stipulated by ordinance.

-

Article 1601t

If the laborer, notwithstanding a prohibited and void stipulation as mentioned in the previous article, has concluded an agreement with the employer, no contract shall result therefrom. The laborer shall be entitled to reclaim the money that was deducted from his wage and the costs incurred in concluding the agreement, without being bound to return that which has been given to him to fulfill the agreement.

The judge shall however be authorized, pursuant to admittance of the laborer's claim, to limit the judgment to such amount as would appear fair having regard to the circumstances, but shall grant the amount, which, according to his evaluation, is the amount in respect of the loss suffered by the laborer.

If the laborer, despite a prohibited and void stipulation, as aforementioned, concludes an agreement with a person other than the employer, he shall be entitled to claim the amount that he has paid pursuant to such agreement or whatever remains owing and may be claimed from the employer. The provisions of the second paragraph shall also apply to this. Each laborer's right to claim pursuant to this article shall lapse after a period of six months.

-

Article 1601u

The employer shall impose a fine in the event of violation of the conditions of an agreement concluded in writing or of a regulation, if the conditions are stipulated and the fine is specified in the agreement or the regulation. The agreement or the regulation, in which the fine is stipulated, shall clearly specify the purpose of the fine. They shall not, either directly or indirectly personally benefit the employer or the individual who has been authorized to impose the fine on the laborers.

Each fine, stipulated in a regulation or agreement, shall be specified in a specific amount, in the currency that is used for the wage. The total amount of fines imposed on the laborer within a week, shall never be higher than the amount of his daily wage.

No fine imposed shall be higher than this amount. Each stipulation which violates any provision of this article shall be void. However, deviations from the second, third, fourth paragraphs shall be permitted in agreements concluded in writing or in a regulation but only with regard to laborers who earn more then eight guilders per day. If this occurs, then the judge shall be authorized to stipulate a smaller fine if the aforementioned amount appears unreasonable to him. The stipulation in respect of punishment by the employer, as mentioned in the tenth section of the Chapter I of this Book shall apply to the stipulation and the specification of fines within the meaning of this article.

-

Article 1601v

The employer shall not be permitted to impose fines and claim compensation at the same time in relation to the same matter. Each stipulation which violates this provision shall be void.

-

Article 1601w

If one of the parties intentionally or due to his actions breaches one of his obligations and the damage suffered by the opposition as a result thereof cannot be evaluated in terms of money, the judge shall, in a fair manner, stipulate a sum of money as compensation.

-

Article 1601x

An agreement between the employer and the laborer, which restricts the latter-mentioned, following the termination of his employment, in his capacity to be employed in a certain manner shall be valid only if it has been agreed with an adult laborer in writing or in a regulation.

The judge, may, either based on a claim of the laborer or upon his defense in a dispute, nullify such an agreement in its entirety or partially, on grounds that, the comparison between the interest of the employer to be protected and that of the laborer shows that the laborer has been unfairly disadvantaged by such agreement.

With regard to the agreement mentioned in the first paragraph, the employer cannot assume any rights, if he has terminated the employment unlawfully, or if the laborer intentionally or due to his own fault has submitted an urgent reason to terminate the employment and has exercised this authority, or if the judge at the request or pursuant to a claim by the laborer has declared the labor agreement to be terminated based upon urgent reasons which were submitted by the laborer and caused intentionally by or due to the actions of the employer.

If the employer of the laborer has negotiated compensation to apply in the event of a violation by the latter-mentioned of a provision as mentioned in the first paragraph, the judge shall be authorized to reduce the compensation to a smaller sum, if the agreed sum appears to be excessive.

-

Article 1601y

Revoked: S.1928-533 see also 1929-261

-

SECTION 3 - CONCERNING THE OBLIGATIONS OF EMPLOYERS

Article 1602

An employer is obligated to pay the wage of the laborer at a stipulated time.

-

Article 1602a

The wage payable in respect of a certain period of time is due from the date upon which the laborer is employed until the termination of his employment.

-

Article 1602b

No wage shall be due in respect of a period during which the laborer has not performed the agreed labor.

-

Article 1602c

However, the laborer shall be entitled to the wage stipulated to be payable in respect of a certain period of time, for a relatively short time period, if, as a result of illness or accident, he is prevented from performing his tasks, unless the illness or accident has been caused intentionally or as a result of his misconduct, or is the result of a physical handicap in respect of which he has deliberately submitted false information to the employer upon concluding the agreement.

If, however, he receives monetary compensation or benefits in such case as a result of legal regulations regarding illness or accidents, or pursuant to insurance or from certain funds, in which participation is mandatory, or which result from the labor agreement, then the wage shall be reduced by the amount of the compensation or benefit.

The laborer shall also retain his rights to the wage payable in respect of a certain period of time for a shorter time period computed in a fair manner, if he, without monetary compensation, either in compliance with an obligation imposed by law or authority which could not have been fulfilled outside his hours of work, or as a result of very special circumstances beyond his control, was prevented from performing his tasks. The following shall be interpreted as very special circumstances for the purpose of this article: the delivery of a child by the spouse of the laborer, the demise and funeral of one of his co-inhabitants or one of his kin or relatives by marriage unlimited in the direct line and in the second degree of the collateral line. The exercise of the voting right shall also be interpreted as compliance with an obligation imposed by the law or authority. In the event that the monetary wage is stipulated in a manner other than in respect of a certain period of time, the provisions of this article shall also apply, provided that the wage shall be deemed to be the customary wage which the laborer would have earned during that time if he had not been prevented from doing so.

The wage, however, shall be reduced by the amount of the expenses which the laborer has saved by not performing the labor. The provisions of this article may only be deviated from by written agreement or regulation.

-

Article 1602d

The laborer shall not lose his right in respect of a wage agreed in respect of a certain period of time, if he has been willing to perform the agreed tasks, but the employer has not made use of this, either due to his fault or due to an incidental obstruction to him personally. The provisions of the second, fifth, sixth and seventh paragraphs of the aforementioned article are applicable hereto.

-

Article 1602e

If the wage consists entirely or partially of an amount that is dependent on information which should have been apparent from the employer's bookkeeping, then the laborer shall be entitled to request information, regarding the evidence which would be required to know the amount of his wage, from the employer.

It may be stipulated by written agreement or regulation that notification of the aforementioned evidence, instead of being submitted to each laborer separately, shall be submitted to a stipulated number of laborers in the service of the employer or to one or more experts in the bookkeeping section which shall be selected by the laborers in writing. The notification of evidence by or on behalf of the employer shall be given in confidence, if such is expressly requested by the laborer and the individual with whom he is replaced in accordance with the previous paragraph; the latter-mentioned, however, can never be bound to the laborer to observe confidentiality.

The requirement for secrecy shall be abolished insofar as is necessary, if this matter is disputed in court.

To the extent that the information, referred to in the first paragraph, concerns the profit gained by the employer's undertaking or part thereof, the provisions of the first paragraph, either stipulated in a written agreement or regulation, may be deviated from which may be in a manner other than that described in the second paragraph, provided that, having regard to the provisions of the second paragraph, the laborer shall always be given an explicit and clear notification, which describes the computation of the amount referred to in the first paragraph.

Without prejudice to the application of the fourth paragraph, the notification as mentioned in the previous paragraph shall occur, if so desired, pursuant to express requirement for confidentiality by the laborer as described in the third paragraph.

-

Article 1602f

In order to pay the wage owed to the laborer, the authorization referred to in the first paragraph of Article 1385 shall be in writing. If it is stipulated in the written authorization, as mentioned in Article 1601g, that the wage in the form of money shall entirely or partially be given to the legal representative, instead of being handed to the minor, then he shall, with respect to the payment of the wage, or the part thereof which is due him, be regarded as the laborer. Notwithstanding that no such condition has been included in written authorization, or even in the verbal authorization, the monetary wage due to the minor shall be given to the legal representative, if he opposes in writing, the payment of the wage to the minor.

In circumstances other than those mentioned in the second and third paragraph of this article, the employer shall be released from his obligation to make payment of the wage directly to the minor. Payment to third parties, in violation of the provisions of this or the next article, shall be void.

-

Article 1602g

Seizure by the employer of the wage owed to the laborer, if the monetary wage is in the amount of eight guilders per day or less, shall not apply to more than one fifth of the monetary wage. If the monetary wage is more than eight guilders a day, the seizure shall continue to apply only to one fifth of the wage, and shall thereafter be unlimited upon further seizures. There shall be no restrictions if the purpose of the seizure is to recoup support payment, to which the employer taking possession is entitled according to the law.

Transfer, pawning, or any other act pursuant to which the laborer assigns any right in respect of his wage to a third party, shall be valid only to the extent that a seizure of his wage shall be valid. Authorization to claim a wage, in any shape or form, issued by the laborer, may be revoked. Each agreement, which violates any provision of this article, shall be void.

-

Article 1602h

The payment of a wage comprising money shall be made in legal Indonesian currency, provided that the wage stipulated in foreign currency shall be computed according to the rate on the date and at place of payment, or in the event that no rate is obtainable in such location, it shall be in accordance with that at the nearest business location where a rate is obtainable. Exceptions may be made to the provision in the first paragraph for specific regions or part of regions by ordinance.

-

-

Article 1602j

Payment of the wage in a manner other than that stipulated in the previous two articles, shall be void. The laborer shall continue to be entitled to claim the wage due to him from the employer, without being obliged to return to him that which was received by virtue of the payment which has been nullified. The judge shall however, be authorized, pursuant to the granting the laborers' claim, to restrict the penalty to such an amount that he deems fair in view of the circumstances, but ultimately to the amount that in his opinion was the amount of loss suffered by the laborer.

Each laborer's right to claim pursuant to this article shall lapse after a period of six months.

-

Article 1602k

If the location of payment of the wage is not stipulated in the agreement or regulation or by custom, then payment shall occur at the option of the employer, either at the location where the tasks are usually performed, or at the office of the employer if this is located at the place where the majority of the laborers reside, or at the residence of the laborer.

-

Article 1602l

The payment of the wage stipulated to be in respect of a certain period of time shall occur as follows: if the wage is stipulated for a week or shorter period of time, after each week; if the wage is stipulated to be in respect of a period of time which is longer than one week, but shorter than one month, after the lapse of the period in respect of which the wage is stipulated to be payable; if the wage is stipulated on a monthly basis, after every month; if the wage is stipulated to be in respect of a longer period of time than one month, after every quarter.

This arrangement may only be deviated from to such extent, that in an agreement concluded in writing or regulation, the payment shall be stipulated to be of a wage in respect of a shorter period of time than one half of a month, after each half of a month, and of a wage that has been stipulated on a monthly basis, after each quarter. The payment of the wage of laborers who live with the employer, shall, in deviating to a certain extent from the above-mentioned provisions, take place every time after the lapse of the period of time, as indicated by local custom, unless it has been stipulated by written agreement or regulation that the payment shall occur pursuant to the provisions of the first paragraph. The periods of payment, under or pursuant to this article, may always be expedited by the parties upon mutual agreement.

-

Article 1602m

The payment of the wage stipulated in the form of money but not in respect of a certain period of time, shall take place having regard to the provisions of the previous article, provided that this wage shall be deemed to have been stipulated in respect of a period of time for which the wage would usually be stipulated for labor which is the most comparable to the labor for which the wage is owed, in terms of nature, location and time.

-

Article 1602n

To the extent that the wage stipulated in the form of money comprises an amount, that is dependent upon information which is apparent from the employer's books, payment shall take place every time that the amount of the wage can be determined, provided that the payment shall occur at least once a year. To the extent that the information referred to in the first paragraph concerns the profit gained by the employer's undertaking or part thereof, and the nature of the enterprise or the custom results in the profit being stipulated after the lapse of more than one year, it can be agreed by written agreement or regulation, that the payment shall be made after every stipulation.

-

Article 1602o

If the monetary wage is stipulated in part to be in respect of a period of time, and in part in another manner, or if the parts of the wage have been stipulated to be in respect of different periods of time, then the provisions of article Article 1601l through 1602n shall apply to each part.

-

Article 1602p

Each payment shall be of the entire amount of the wage due. However, with respect to the wage which is stipulated in the form of money, but dependent on the result of the task to be performed, it may be agreed by written agreement or regulation, that every time, should the possibility arise, without prejudice to the definite computation upon the first payment date, a specific part of the wage shall be paid, which shall comprise at least three fourths of the customary wage for labor which is most comparable in terms of nature, location and time.

-

Article 1602q

To the extent that the wage stipulated in the form of money, or the portion thereof that remains after deduction of that which the employer is not obliged to pay, and after deduction of that to which third parties, in accordance with the provisions of this title, shall apply their rights, shall not be paid later than after the third working day after such date, on which the payment should have occurred pursuant to articles 1602l, 1602m and 1602o, then, if this failure to pay is caused by the employer, the laborer shall be entitled to an increase due to the delay, which from the fourth until the eight working day shall amount to five hundredth (5%) a day and for each working day thereafter shall amount to one hundredth (1%), provided that the increase arising due to delay shall in no circumstances exceed one half of the amount owing.

The judge shall, however, be authorized to restrict the increase to such amount as he deems appropriate having regard to the circumstances. An agreement, which deviates from a specific provision of this article, shall apply only to laborers whose wages stipulated in money amount to more than eight guilders a day.

-

Article 1602r

In addition to the termination of the service relationship, the claim for payment of the wages due may only be compared with the following debts of the laborers:

(1)   compensation for the damage caused by the laborer to the employer;

(2)   the fines payable to the employer pursuant to article 1601 u, provided he submits written evidence, specifying the amount of each fine, including the time when and the reason for which it was imposed, stipulating the provision of the regulation or the written agreement which has been breached;

(3)   the contribution to a fund by the employer in accordance with the second paragraph of article 1601 s deposited on behalf of the laborer;

(4)   the rent in respect of a residence, a space, a piece of land or of implements or tools, used by the laborer in his own business, and leased by the employer to the laborer pursuant to a written agreement;

(5)   the sale price of regular and common necessities of the household, excluding alcoholic drinks and opium, as well as that of basic or supplementary material used by the laborer in his own business, which shall be delivered by the employer to the laborer, provided such delivery is evidenced by a written declaration submitted by the laborer, in which the cause and the amount of the debt are stipulated, and provided that the employer shall not seek more than the actual cost, and that that amount shall not be higher than that which the laborer can pay elsewhere for the necessities of the household, basic or supplementary material.

(6)   the amount of wages paid in advance, by the employer to the laborer in the form of money, provided it is apparent from a statement as mentioned in the previous number;

(7)   the amount of overpayment of wages;

(8)   the charges for medical care and treatment, which shall be made pursuant to article Article 1601x, borne by the laborer.

With respect to that which the employer may claim pursuant to numbers 2, 3 and 5, he may not compare more than one fifth of the fixed wage stipulated in the form of money with each payment of the wage, which should have been paid in that case; with respect to what he may claim in its entirety pursuant to the provisions of this article, the debt comparison shall not extend further than two fifth parts of the same amount. Any agreement, which would extend the employer's authority to compare the debts, shall be void.

-

Article 1602s

If the entire wage or part thereof of the laborer is stipulated in the form of lodging, board or other necessities of life, the employer shall be obligated to fulfill this, provided that they are in accordance with the requirements of health and proper conduct, pursuant to local custom. Any agreement, which excludes or restricts the obligations of the employer, shall be void.

-

Article 1602t

An employer, who is temporarily prevented from paying the portion of a wage that is applied to lodging, board or other necessities of life, if the prevention is not as a result of his own actions, shall owe the laborer compensation, the amount of which shall be stipulated by agreement or, in the absence of such, by local custom.

-

Article 1602u

The employer shall be obligated to afford the opportunity to the live-in laborers, without making deductions from their wages, to fulfill their religious obligations, and to enjoy rest from their labors, in both cases in the manner stipulated by agreement, or in the absence of such, as regulated by local custom.

-

Article 1602v

The employer must organize the labor in such manner, that the laborer shall not be obliged to perform any labor on Sundays and on the days, which according to local custom in respect of the stipulated tasks are regarded as Sundays.

-

Article 1602w

The employer shall be obligated to design and maintain the rooms, implements and tools, in which or with which the laborer shall perform the tasks, and also to stipulate such regulations and to issue such instructions regarding the performance of the tasks, in such manner that the laborer shall be protected against endangerment to himself, his honor and property, insofar as is reasonable in connection with the nature of the labor.

In the event that those obligations are not complied with, the employer shall be liable to the laborer for damages, as a result of performing his tasks in the course of his duty, unless he can provide evidence that the failure to comply has been caused by force majeure, or that the damage to a significant extent can be imputed to the laborer's blatant actions.

If the laborer, as a result of the employer's failure to comply with his obligations, in the performance of his service, severely injures himself which injury results in death, the employer shall be obliged to compensate the surviving spouse and the children or parents of the deceased who were supported by his labor, unless he can provide proof that the death was caused by force majeure, or due to the laborer's fault.

Any agreement, which restricts or excludes the obligations of the employer, shall be void. However, some regulations may be stipulated pursuant to an ordinance, which transfer the employer's obligation regarding compensation as mentioned in the second and third paragraph, to other parties.

-

Article 1602x

The employer must, in case of illness or accident of a laborer who lives with him and who has been in his service for a period of not less than six weeks, provide him with proper nursing and medical treatment, to the extent that this has not been provided otherwise. He shall be entitled to charge the laborer with the costs in respect of the first four weeks only, if the illness or accident was caused deliberately or due to his immorality or is the result of a physical handicap, regarding which, the laborer deliberately misinformed him upon entering into the agreement. Any agreement which excludes or restricts the obligations of the employer shall be void.

Article 1602y

The employer shall in general be obligated to do and to avoid anything that a proper employer in similar circumstances should do and avoid.

-

Article 1602z

The employer must, at the termination of the service relations, upon the request of the laborer, furnish him with a dated and signed letter of recommendation. The letter of recommendation shall contain an accurate description of the nature of the tasks performed and the duration of service, as well as but only at the specific request of the individual to whom the letter of recommendation shall be issued, details of the manner in which the laborer has fulfilled his obligations and the manner in which the relationship of employment was terminated;

however, if the employer terminated the relationship without providing any reasons therefor, he shall be obligated only to make a statement to such effect, and shall not be obligated to notify the reasons as such; if the laborer terminated the relationship of employment unlawfully, then the employer shall be entitled to specify such in the letter of recommendation.

The employer, who refuses to provide the requested letter of recommendation, who includes inaccurate information in the letter of recommendation against his better judgment or who inserts a mark into the letter of recommendation for the purpose of providing information regarding the laborer which is not included in the text of the letter of recommendation, or who provides information to third parties which directly conflicts with the recommendation letter, shall be liable for the damage resulting therefrom with regard to the laborer as well as to third parties. Any agreement which excludes or restricts the obligations of the employer, shall be void.

-

SECTION 4 - CONCERNING THE OBLIGATIONS OF LABORERS

Article 1603

The laborer shall be obligated to perform the agreed tasks to the best of his ability. The nature and extent of the labor to be performed which is not described in the agreement or regulation, shall be decided in accordance with custom.

-

Article 1603a

The laborer shall be obligated to perform the tasks himself; he may not be substituted by a third party other than by approval of the employer.

-

Article 1603b

The laborer shall be obligated to comply with the requirements regarding the performance of the tasks and with those which promote the good order of the employer's enterprise, furnished to him by or on behalf of the employer within the limits of the legal requirements or pursuant to the agreement or regulation or, in absence thereof, in accordance with custom.

-

Article 1603c

A laborer who lives with his employer must conduct himself in accordance with the rules of the household.

-

Article 1603d

The laborer shall in general be obligated to do and avoid that which any laborer in similar circumstances should do and avoid.

-

SECTION 5 - CONCERNING THE VARIOUS MANNERS IN WHICH THE RELATIONSHIP OF EMPLOYMENT, ARISING FROM A LABOR AGREEMENT, SHALL BE TERMINATED

Article 1603e

The relationship of employment shall terminate by law, if the time period expires pursuant to an agreement or regulation, or by legal requirement, or in the absence thereof, as determined by custom. Advance notice, shall in such event be required in the following circumstances only:

(1)   if such is agreed upon by written agreement or by regulation;

(2)   if, by legal requirement or according to custom, even in respect of a previously stipulated time period, a notice shall be given, and the parties shall not, had they been permitted, deviate from such by written agreement or regulation.

-

Article 1603f

If the relationship of employment, following the lapse of time as described in the first paragraph of the previous article, is continued by the parties without any objection, then it shall be deemed that the agreement was concluded for the same time period, subject to it being for not more than one year, and subject to the same conditions. If the relationship of employment is extended for less than six months, then it shall be deemed to be concluded for an indefinite period, but subject to the same conditions.

The same shall apply, if in the events stipulated in the second paragraph of the previous article, the timely notice is not given. Pursuant to a written agreement or by regulation, the consequences of an untimely notice may be regulated differently, provided that the relationship of employment shall be extended for at least six months.

-

Article 1603g

If the term of a relationship of employment has not been indicated by agreement, regulation or legal requirement, or by custom, then it shall be deemed to have been concluded for an indefinite time period. If the relationship of employment has been concluded for an indefinite time period or until it has been declared terminated, then any one party shall be entitled to terminate such relationship by giving notice having regard to the provisions of the following two articles.

-

Article 1603h

The termination notice shall only be given towards the last day of the calendar month. Any agreement, which would have the effect of a termination notice being given on a day other than a day close to the last day of the calendar month, shall be void.

-

Article 1603i

Without prejudice to the stipulations in the following two paragraphs of this article the period of notice shall be at least one month. The term in the previous paragraph may be extended by written agreement or regulation with regard to the laborer for not more than one month, if the relationship of employment, at the time of the notice, has lasted for at least two continuous years.

The term stipulated in the first paragraph shall be extended for the employer, respectively for one month, two months or three months, if at the time of the notice the relationship of employment has lasted respectively at least one year but less than two years, at least two years but less than three years for a continuous period of time. Any agreement, which violates any provision of this article, shall be void.

-

Article 1603i bis

A new labor agreement, concluded by a laborer with the same employer for a definite time period of less than six months, within four weeks of the termination of the previous relationship of employment, shall, regardless of whether the previous relationship of employment was concluded for a definite or indefinite time period, be considered as an agreement concluded for an indefinite time period.

-

Article 1603i ter

Relationships of employment with the same employer, which have been interrupted or were for a period of less than four weeks, or were directly following one another in the manner stipulated in article Article 603f, shall be, with regard to the termination notice in Article 1603l, deemed to be continuous.

-

Article 1603j

The relationship of employment shall be terminated upon the demise of the laborer.

-

Article 1603k

The relationship of employment shall not be terminated by the death of the employer, unless it is provided otherwise in the agreement. However, the heirs of the employer as well as those of the laborer shall be authorized to terminate the relationship of employment entered into for a specific time period, by giving notice pursuant to the provisions of Article 1603h and Article 1603i, as if it was concluded for an indefinite period of time.

-

Article 1603l

If a trial period is stipulated, then each of the parties shall be authorized, within such time period, to give notice of termination of the relationship of employment. Any agreement, which stipulates different trial periods for the parties, or which stipulates a time period of longer than three months, as well any agreement concluded between the parties for a new trial period, shall be void.

-

Article 1603m

If the legal representative of a minor considers that the labor agreement concluded by the minor shall have or has harmful consequences, or that the requirements stipulated in the authorization in Article 1601g have not been complied with, he may request the judge at the location of the actual residence of the minor in writing to declare the labor agreement to be dissolved.

The judge shall not grant the request until after the hearing or proper summons of the minor, and also of the employer, and if the minor is under guardianship and such guardianship has been assigned to the Orphan's Chamber, of the latter mentioned. If the judge grants the request, he shall then stipulate the date on which the relationship of employment shall be terminated. No appeal shall be permitted to be filed against the decision, without prejudice to the authority of the Attorney General at the Supreme Court to, only on a point of law, appeal for cassation of the decision.

-

Article 1603n

Each one of the parties may terminate the relationship of employment without any notice or without having regard to the provisions applicable to termination; however, the party who effects such without the other party's approval, is acting unlawfully, unless he compensates the other party at such time as stipulated in Article 1063q, or terminates the relationship of employment for an urgent reason, duly notifying the other party thereof.

-

Article 1603o

With regard to the employer, within the meaning of the previously mentioned article, those acts, traits or the behavior of the laborer, which shall result in the fact that the employer cannot be reasonably expected to continue the relationship of employment, shall be regarded as urgent. Urgent reasons, inter alia, may be considered to exist as follows:

(1)   if the laborer upon entering into the agreement has misled the employer by furnishing him with forged or falsified letters of recommendation, or if he has deliberately misinformed the employer regarding the manner in which his previous relationship of employment was terminated;

(2)   if, the laborer, does not possess any of the skills or expertise for the tasks to which he has bound himself;

(3)   if the laborer, despite warnings, becomes inebriated, is guilty of abuse of opium or other debauchery;

(4)   If he is guilty of theft, embezzlement, fraud or other misdemeanors, which render him unworthy of his employer's trust;

(5)   if the laborer mistreats, grossly insults or seriously threatens the employer, members of his family or household members or co-workers;

(6)   if the laborer induces or attempts to induce the employer, members of his family or household members to commit acts that are in violation of the law or proper morals;

(7)   if the laborer, deliberately or despite warnings, recklessly damages or seriously endangers the employer's property;

(8)   if the laborer deliberately or despite warnings, recklessly, exposes himself or others to serious danger;

(9)   if the laborer discloses any particulars regarding the employer's household which he should have kept confidential;

(10)   if the laborer persistently refuses to comply with reasonable orders or instructions issued to him by or on behalf of the employer;

(11)   if the laborer in some other manner grossly neglects the duties assigned to him pursuant to the agreement;

(12)   if the laborer, as a result of intentional or reckless actions, becomes incapable of performing the stipulated tasks. Agreements, which permit the decision to be made by the employer in the event of an urgent reason within the meaning of Article 1603n, shall be void.

-

Article 1603p

In respect of the laborer, such circumstances which would render it impossible to reasonably expect the laborer to continue the relationship of employment shall be regarded as urgent reasons within the meaning of Article 1603n. Urgent reasons, may, among others be deemed to exist in the following circumstances:

(1)   if the employer mistreats the laborer, members of his family or household members, grossly humiliates or seriously threatens them, or tolerates such treatment by the other household members or subordinates;

(2)   if the employer induces or attempts to induce the laborer, members of his family or household members, to commit acts in violation of the law or proper morals, or tolerates such inducement or attempted inducement by one of the members of his household or subordinates;

(3)   if the employer cannot pay the wage at a specific time;

(4)   if the employer, in the event that board and lodging are included in the labor agreement, does not provide such in a proper manner;

(5)   if the employer does not provide the laborer with sufficient labor, in the event that the laborer's wage is dependent on the amount of labor performed;

(6)   if the employer, does not properly provide the agreed support to the laborer, whose wage is dependent on the labor performed;

(7)   if the employer in some other manner grossly neglects the duties assigned to him pursuant to the agreement;

(8)   if the employer instructs the laborer, despite his refusal, to perform labor in the company of another employer, even though the nature of the relationship of employment does not stipulate such.

(9)   if the continuation of the relationship of employment, on the part of the laborer, could involve serious endangerment to life, health, morals, or good name, and such was not evident at the time that the agreement was concluded;

(10)   if the laborer due to illness or other causes due to no fault of his shall become incapable of performing the agreed tasks. Agreements, which provide for the decision to be made by the laborer in the event of an urgent reason within the meaning of Article 1603n, shall be void.

-

Article 1603q

The compensation for damage as mentioned in 1601k and 1601n, shall, with regard to relationships of employment which are or are deemed to have been concluded for an indefinite time period, be equal to the amount of the wage owing in respect of the period until the first day following termination by termination notice; with regard to a relationship of employment concluded for a specific time period, compensation shall be equal to the amount of the wage for the duration that the service relationship, according to 1603e dan 1603f, should have existed.

Wage, in this case shall be defined as parts of the wage, as mentioned in numbers 1 and 7 of Article 1601p. If the wage of the laborer is not fully or partly stipulated according to a period of time, then the rules of Article 1601o shall apply. Any agreement which stipulates a lower amount of compensation for the laborer shall be void. A higher amount of compensation may be stipulated pursuant to a written agreement or regulation.

The judge shall be authorized to reduce the amount of compensation, as mentioned in the first and fourth paragraph of this article, if he deems the compensation to be too high. Interest shall be due on the amount of the compensation owing, calculated as six percent (6%) a year, commencing from the day that the relationship of employment was terminated.

-

=== Article 1603r

If one of the parties has ended the relationship of employment without any termination notice or without having regard to the stipulations applicable to termination, and has, at the same time compensated the opposing party in the manner stipulated in the previous article, the opposing party shall be entitled to submit a claim for further compensation, if there exists special circumstances as a result of which, the damage incurred cannot be regarded as having been compensated for by the compensation received.

-

Article 1603s

In the event that one of the parties has unlawfully terminated the relationship of employment, the opposing party shall be entitled to claim either the amount stipulated in Article 1603q or the entire compensation. The same provisions shall apply, if one of the parties intentionally or due to his fault has provided the opposing party with an urgent reason to terminate the relationship of employment without any notice or without having regard to the stipulations applicable to the termination, and the opposing party has exercised such authority.

-

Article 1603s bis

If the employer terminates the relationship of employment with the intention of releasing himself from the obligation to provide the laborer with an agreed period of leave following a specific number of years of service, which was stipulated in or related to the agreement, then the laborer shall be entitled to claim compensation for such period of leave in addition to that which he is entitled to upon dismissal, which compensation he should have enjoyed during his leave in accordance with the agreement, and if he was entitled to free transportation pursuant to the agreement, the amount that would have been required for the trip to the place of origin or destination of leave, at the time that the relationship of employment was terminated.

If, apart from the case mentioned in the previous article, half of the service period stipulated in the agreement required for the extension of the leave, has lapsed, and the employer, unilaterally, without providing any urgent reasons, terminates the agreement, he must, in addition to whatever he owes the laborer, pay him a certain sum which is proportionate to the amount of compensation referred to in the first paragraph as the proportion due at the time at which the agreement is terminated, after the term of employment required for obtaining leave has passed and the term of employment required for obtaining a leave.

For the purpose of calculating the term of employment, the month in which the agreement ends shall be regarded as full whole month. The same shall apply, if the laborer, after part of the service period as mentioned in the previous paragraph has passed, terminates the relationship of employment for urgent reasons provided by the employer, as well as if the judge declares the agreement to be terminated, for significant, but not urgent reasons as mentioned in Article 1603v or as a result of an urgent reason provided by the employer, or pursuant to Article 1267, if the employer does not fulfill his obligations.

If the judge declares the agreement to be terminated for a reason other than an urgent reason, he shall be authorized to reduce the amount of money as stipulated in the second paragraph to such sum that he shall deem fair having regard to the circumstances.

-

Article 1603t

Each right to claim pursuant to the two aforementioned articles shall lapse after a period of one year.

-

Article 1603u

If the relationship of employment has been entered into for longer than five years or for the duration of the life of a specific individual, the laborer shall nevertheless be authorized to terminate at the time that five years have elapsed after the agreement was concluded, by giving a termination notice of six months.

Any agreement, which excludes or restricts this authority to terminate, shall be void.

-

Article 1603v

Each one of the parties shall at all times, even prior to commencement of the labor, be authorized to submit a written request to the residential judge at the location of his actual residence, to have the labor agreement declared terminated. Any agreement which excludes or restricts this authority for termination shall be void. That which shall be regarded as significant reasons shall be, in addition to urgent reasons as mentioned in Article 1603n, changes in the personal or financial status of the applicant or opposing party or in the circumstances in which the tasks shall be performed, which are of such nature that the service relationship shall, in order to ensure equitable treatment, be terminated immediately or after a short period of time. The judge shall not grant the request until after a hearing or proper summons of the opposing party. The last two paragraphs of Article 1603m are applicable hereto.

-

Article 1603w

The authority of the parties to claim, in accordance with Article 1267, the dissolution of an agreement with compensation of costs, damages and interest, shall not be excluded by the stipulations of this section.

-

CLOSING PROVISIONS

Article 1603x

Labor agreements concluded between an employer, who is subject, and a laborer, who is not subject to the aforementioned provisions of this title, shall be governed by these stipulations, regardless of the intent of the parties, if the labor is similar or almost similar to that which as a rule is performed by laborers who are subject to the stipulations of this title. Labor agreements, which are concluded by an employer, who is not subject, and a laborer, who is subject to the aforementioned stipulations of this title, shall, regardless of the intent of the parties, be governed by these stipulations.

-

Article 1603y

The aforementioned stipulations of this chapter are not applicable to individuals employed by the government, by regions or parts of regions, by municipalities, by the water board or any other public legal entity, unless they are declared applicable prior to the commencement of the relationship of employment by or on behalf of the parties, or by legal regulation.

-

Article 1603z

Special rules may be stipulated pursuant to an ordinance with regard to agreements for the performance of labor in agricultural plantations or handicraft companies, at railways and at other transport companies and other enterprises.

-

SECTION 6 - CONCERNING THE CONTRACTING OF WORK

Article 1604

In respect of contracting of work, individuals may agree that the contractor shall only carry out the work or that he shall also provide the material.

-

Article 1605

In the event that the contractor is required to provide the material and the work, in any manner, and such is lost prior to delivery, he shall be liable for the loss, unless the principal engaging the contractor was negligent in accepting the work .

-

Article 1606

If the contractor is only required to provide labor and the work is lost, then he shall be liable only for the loss to the extent that it was caused by him.

-

Article 1607

If the work, as in the circumstances mentioned in the previous article, has been lost for reasons other than the negligence of the contractor, prior to the delivery and without the principal being negligent in accepting the work and approving it, then the contractor shall not be entitled to claim the agreed price, unless the work has been destroyed due to a defect in the material.

-

Article 1608

If the work is carried out in parts or by measurement, it may be inspected in parts; the inspection shall be considered to have occurred in respect of the parts paid for, if the client pays the contractor for the parts completed.

-

Article 1609

If a building contracted for and constructed for specific consideration, is entirely or partly lost due to a defect in the composition of the materials, or even due to the unsuitability of the land, then the architects and contractors shall be liable therefor for a duration of ten years.

-

Article 1610

If an architect or contractor has agreed to construct a building pursuant to specifications devised and determined with the owner of the land, he may not demand an increase in price, even if it is argued that there has been an increase in the laborers' wages or building material, nor in the changes or additions made which were not included in the specifications, if those changes or increases have not been approved in writing, and if no agreement has been reached with the owner regarding the price.

-

Article 1611

The principal may, if he so desires, terminate the contract, even though the work has been commenced, provided that he compensates the contractor for all the costs and labor incurred and the profit that he would have gained.

-

Article 1612

A contract shall terminate upon the demise of the contractor. The principal, however, must settle with the heirs, in proportion to the price stipulated in the agreement, the value of the work carried out and the building material made available, provided that the work or the building material can be used by him.

-

Article 1613

The contractor shall be responsible for the acts of his employees.

-

Article 1614

Bricklayers, carpenters, smiths and other tradesmen, who are employed for the construction of a building or any other work which is contracted, shall not have any legal right to claim against the individual on whose behalf the work is performed, an amount other than the amount due to the contractor at the time they file their lawsuit.

-

Article 1615

Bricklayers, carpenters, smiths and other tradesmen, who contract directly to carry out work for a specific price, shall be bound by the rules described in this section. They are contractors in the area of trade in which they are employed.

-

Article 1616

Laborers, who have access to a property, to perform work thereon, shall be entitled to retain such property, until the total costs and laborers' wages have been paid, unless the client has provided sufficient security for such costs and laborers' wages.

-

Article 1617

The rights and obligations of carriage drivers and boatmen are stipulated in the Commercial Code

-

Chapter VIII - Concerning Partnerships

SECTION 1 - GENERAL PROVISIONS

Article 1618

A partnership is an agreement by which two or more individuals bind themselves to contribute something jointly with the intent of sharing the proceeds therefrom among one another.

-

Article 1619

All partnerships shall have a lawful objective and shall be concluded for the mutual benefit of the parties concerned. Each partner is required to contribute money, assets or services to the partnership.

-

Article 1620

Partnerships are either unlimited or limited.

-

Article 1621

The law only acknowledges unlimited partnerships of which the only purpose is to make profit. Partnerships which are prohibited are all partnerships which comprise either all the assets of the partners, or part thereof, under a general title; without prejudice to the stipulations of the sixth and seventh chapter of the First book of this Civil Code.

-

Article 1622

An unlimited profit making partnership shall only consist of that which the parties, in any manner, shall achieve due to their efforts, in the course of the partnership's existence.

-

Article 1623

A limited partnership is one which only relates to certain specific matters, or to the use thereof, or to the proceeds which shall result thereof, or to a specific undertaking, or to the operation of an enterprise or occupation.

-

SECTION 2 - CONCERNING AGREEMENTS AMONG THE PARTNERS

Article 1624

The partnership shall commence existence at the time the agreement is concluded, unless otherwise stipulated.

-

Article 1625

Each partner shall be liable to the partnership for whatever contribution he has agreed to make, and if this contribution comprises a specific object, he must insure such, as in the case of a sale and purchase.

-

Article 1626

The partner who is required to make a monetary contribution to the partnership and fails to do so, shall by law, and without having to be charged thereof, become liable to make interest payments on this sum of money, to be calculated from the day on which this amount should have been contributed. The same shall apply to the funds which he has withdrawn from the joint account, to be calculated from the date on which he withdrew such funds for his personal benefit. The above shall be without prejudice to any indemnification for further costs, damages and interest, should there be grounds therefor.

-

Article 1627

The partners who have committed themselves to contribute their services and expertise to the partnership, shall be accountable for all profits, which they have acquired, through their specific expertise which is the object of the partnership.

-

Article 1628

If one of the partners, on his own behalf, claims a collectable debt from a party who is also indebted to the partnership, then the payment received by him shall be calculated in proportion to both the debts owing to the partnership and to him, notwithstanding that at the time of receipt of payment he has stipulated that the payment shall be set off against his own receivable debt; however, if he stipulates upon receipt that the entire payment shall be set off against the partnership's receivable debt, then this stipulation shall be complied with.

-

Article 1629

If one of the partners has received his total share in a joint receivable debt of the partnership that remains outstanding, and the debtor to the partnership thereafter becomes insolvent, the partner must contribute the share that he has already received to the joint account, notwithstanding that he has already discharged his share.

-

Article 1630

Each partner must indemnify the partnership against damage caused by him to the partnership, and he cannot set off compensation for such damage against the profit, which he, due to his efforts and skills in other matters, has provided to the partnership.

-

Article 1631

If the matters, in respect of which only the enjoyment has been given to the partnership, comprise specific objects which do not perish through use, they shall continue to be for the account of the partner to whom they belong. If the assets deteriorate through use; if they depreciate in value while being retained; if they were designated for sale, or if they were acquired by the partnership pursuant to an estimate stipulated in a description or inventory, they shall be for the partnership's account. If the assets have been appraised, then the partner cannot claim more than the amount at which they have been appraised.

-

Article 1632

A partner can claim his rights in respect of the partnership, not only regarding the amount which he has spent in respect of the partnership, but also in respect of the agreements which he has concluded in good faith on behalf of the partnership, and also in respect of damage incurred during his management which was unavoidable.

-

Article 1633

In the event that the partnership agreement does not stipulate the respective share of each partner in the profits and losses, each share shall be proportionate to his contribution to the partnership. With respect to an individual who has only contributed his skills, his share shall be calculated as the same as the share of the partner who contributed the least amount.

-

Article 1634

The partners cannot stipulate that the regulation of the amount of their share shall be conducted by one of them or a third party. Such a stipulation shall be regarded as not having been written, and thus the stipulations in the previous article shall be taken into consideration.

-

Article 1635

An agreement, in which one of the partners is granted all the profits, shall be void. It shall however, be permitted to agree that all losses shall be assumed by one or more partners.

-

Article 1636

A partner, to whom, pursuant to a specific stipulation in the partnership agreement, the management is assigned, may, despite opposition from the other partners, commit any acts, which are related to his management, provided that these are committed in good faith. This authority cannot be revoked without legal grounds therefor, during the existence of the partnership; however, if this authority is granted in a later deed, and not pursuant to the partnership agreement, this shall be revocable like any other simple power.

-

Article 1637

If the management is assigned to several partners without having their job descriptions determined, or without the stipulation that one cannot act without the other, then each one of them shall be authorized to carry out any acts relating to such management.

-

Article 1638

If it has been stipulated that the managers may not act without one another, then one manager cannot, without a new agreement, act without the assistance of the others, notwithstanding that they may be temporarily unable to participate in the acts of management.

-

Article 1639

In the absence of specific stipulations regarding the manner of management, the following rules shall be observed:

(1)   the partners shall be deemed to have granted to one another the power to manage on behalf of one another. Each act committed by any one of them shall be binding in respect of the share of the other partners, notwithstanding that they have not granted their approval, without prejudice to the rights of the latter mentioned, or of any one of them, to object to the act, if it has not yet been committed.

(2)   each partner may use the assets belonging to the partnership, provided that he uses them for the purpose for which they are designated, and provided that he does not use them to jeopardize the partnership, or in such manner that shall obstruct the other partners' use of the assets to which they are entitled;

(3)   each partner shall have the authority to require the other partners to share the expenses, which are incurred for the maintenance of the assets which are deemed necessary to the partnership;

(4)   none of the partners may, without approval of the others, make any improvements to the immovable assets belonging to the partnership, notwithstanding that he claims that those improvements would benefit the partnership.

-

Article 1640

The partners who are not responsible for the management, shall neither transfer, pawn, nor encumber the movable assets, belonging to the partnership.

-

Article 1641

Each of the partners may, without approval of the others, accept a third party as a shareholder of the shares which he has in the partnership; however, he cannot, without approval, admit him as member of the partnership, notwithstanding that he is responsible for the management.

-

SECTION 3 - CONCERNING CONTRACTS CONCLUDED BY THE PARTNERS WITH RESPECT TO THIRD PARTIES

Article 1642

The partners shall not be individually bound for the total debts of the partnership; and one partner cannot bind the other on his behalf, if the latter mentioned has not granted him authority to do so.

-

Article 1643

The partners, may be charged by the creditor with whom they have conducted business, each for the same amount and the same share, even though some of the shares in the partnership should be less than others; unless, upon becoming indebted, the requirement that all partners are jointly liable according to their proportionate shareholding in the partnership is specifically stipulated.

-

Article 1644

An agreement on behalf of the partnership to commit an act, shall only bind the partner who has agreed to such act, and shall not bind the other partners, unless they have granted him authority therefor, or if the matter benefits the partnership.

-

Article 1645

If one of the partners concludes an agreement on behalf of his partnership, the partnership may demand the implementation thereof.

-

SECTION 4 - CONCERNING THE VARIOUS MANNERS IN WHICH A PARTNERSHIP IS DISSOLVED

Article 1646

A partnership shall be dissolved for the following reasons:

(1)   expiration of the time period for which it was established;

(2)   due to the destruction of the assets or the attainment of the object for which the partnership was established;

(3)   pursuant to the intent of several or one of the partners;

(4)   due to the demise or guardianship of one of the partners or if he has been declared bankrupt or insolvent.

-

Article 1647

The dissolution of partnerships, established for a specific time period, may only be demanded by one of the partners, prior to the expiration of such time period, upon legal grounds such as; if one of the other partners has not fulfilled his obligations, or if a continuing indisposition renders him incompetent to take care of the partnership's matters, or other such similar circumstances, the legality and the severity of which shall be decided upon by the judge.

-

Article 1648

If one of the partners has agreed to transfer ownership of some assets to the partnership, and such assets are destroyed prior to the transfer, then the partnership shall, with respect to all the partners, be dissolved. The partnership shall also be dissolved due to the destruction of the assets, if only the use thereof has been transferred to the partnership, but the ownership thereof has remained with the partner. The partnership shall however, not be dissolved due to the destruction of the assets, if ownership of such has already been transferred to the partnership.

-

Article 1649

A partnership may be dissolved pursuant to the intent of some or one of the partners if it has been established for an indefinite time period. The dissolution shall take place, in such case, by notifying all the partners, provided such termination notice shall be given in good faith and in a timely manner.

-

Article 1650

The notice shall be deemed not to have been given in good faith, if a partner notifies the partnership, with the intention of appropriating the profits, which the partners intended to enjoy on a joint basis, to himself only. The notice shall be deemed to have occurred in an untimely manner, if the assets are no longer complete and it is demanded in the interest of the partnership that such dissolution shall be postponed.

-

Article 1651

If it is agreed that, in the event of the demise of one of the partners, the partnership shall continue to operate with his heir as his replacement, or with the surviving partners only, then such stipulation shall be complied with. In the latter circumstances, the heir of the deceased shall have no right upon the division of the partnership, beyond that of the deceased partner at the time of the partner's demise; he shall, however, share in the profits and in the losses, which are the natural consequences of acts committed prior to the demise of the partner who he has succeeded.

-

Article 1652

The rules regarding the distribution of inheritance, the manner of distribution, and the obligations resulting thereof among the co-heirs, shall also be applicable to the distribution among the partners.

-

Chapter IX - Concerning Legal Entities

Article 1653

In addition to an actual partnership, the law shall also acknowledge associations of individuals as legal entities, whether they are established by public authority or acknowledged as such, or whether they are permitted as lawful, or whether they are established with a specific objective, provided that they do not violate the law or proper order.

-

Article 1654

All established legal entities shall be, even as private individuals, authorized to perform civil acts, without prejudice to the public ordinances, in which such authority may be amended, restricted or rendered subject to certain formalities.

-

Article 1655

The managers of legal entities shall be, unless otherwise stipulated in the deed of establishment, the agreements and the regulations, authorized to act on behalf of the entity, to bind such to third parties and to bind third parties to such, and also, to appear in court as plaintiff as well as defendant.

-

Article 1656

All acts, in respect of which the managers were not authorized, shall bind the legal entity only to the extent of the actual benefit, or if the acts are properly approved thereafter.

-

Article 1657

If the deeds of establishment, the agreements and regulations do not contain stipulations regarding the management of the legal entity, then no one shall be authorized to act on behalf of the company, or bind the company in any manner other than that stipulated in the previous article.

-

Article 1658

To the extent that the deed of establishment, agreements and the regulations have provided otherwise, the managers are required to account for their actions to the members of the legal entity, and each member shall be entitled to summon them by law therefor.

-

Article 1659

If the deeds of establishment, agreements and regulations do not contain any specific stipulations regarding voting rights, then each member of a legal entity shall possess the same voting right, and a decision shall be based upon a majority of votes.

-

Article 1660

The rights and obligations of the members of such association shall be regulated according to ordinances which are established or acknowledged by public authority, or based upon their own deed of establishment, agreements and regulations, and in the absence thereof, in accordance with the provisions of this title.

-

Article 1661

Members of a legal entity shall not be personally liable for the contracts concluded by the company. The debts may only be settled with the assets of that company.

-

Article 1662

A legal entity established by public authority, shall not be dissolved by the demise or the resignation of the members, but shall remain in existence until legally dissolved. If all of the members as aforementioned are absent, then the court within whose jurisdiction the entity is established, shall be authorized to, at the request of the interested party and after having heard and at the request of the prosecution counsel, stipulate the rules, which are required for the benefit of the legal entity.

-

Article 1663

All other legal entities shall continue in existence until they are expressly dissolved, in accordance with their deeds, regulations or agreements, or until the object of the association has been attained.

-

Article 1664

If the ordinances of the legal entity or deeds, regulations or agreements, do not contain any other stipulations, then the right of the members shall be personal and shall not pass `to their heirs.

-

Article 1665

Upon the dissolution of such legal entity, the remaining members or the last remaining member shall be obligated to settle the company's debts out of the proceeds, and if thereafter, there remains a balance of such proceeds, then they may distribute it among themselves, or it may be granted to one member and it may also be passed on to their/his heirs.

They shall be, with respect to the summoning of the creditors, the settling of the accounts and the settling of the debts, subject to the same requirements as heirs who have accepted an inheritance under the privilege of estate description.

Failing the fulfillment of these requirements, they shall each be personally liable for all the debts, and they shall pass this liability on to their heirs.

-

Chapter X - Concerning Gifts

SECTION 1 - GENERAL PROVISIONS

Article 1666

A gift is an agreement, whereby the donor, while still living, grants assets voluntarily and irrevocably for the benefit of the donee who accepts such. The law shall not acknowledge gifts other than gifts among the living.

-

Article 1667

A gift shall only relate to the current assets of the donor. In the event that it relates to future assets, it shall be deemed invalid.

-

Article 1668

A donor shall not be entitled to retain control over an object donated; such a gift, to the extent that it relates to that object shall be considered invalid.

-

Article 1669

The donor shall be permitted to continue to enjoy or use the movable or immovable assets donated, for his benefit, or to use them on behalf of another party; in which circumstances, the stipulations of the tenth chapter of the second book of this Civil Code shall be taken into account.

-

Article 1670

A gift shall be invalid, if it is made subject to the condition that debts or liabilities, other than those stipulated in the deed of gift itself, or specified in a list attached thereto, must be fulfilled.

-

Article 1671

The donor may reserve the right to a certain sum of money out of the assets donated. In the event that he passes away without having appropriated the sum of money, then the entire gift shall be transferred to the donee.

-

Article 1672

The donor may reserve the right to reclaim the donated assets, if the donee or his heirs pre-decease him; this, however, can only apply for the benefit of the donor.

-

Article 1673

The effect of the right to reclaim shall be that all transfers of the assets to other parties shall be invalidated, the assets shall be returned to the donor free and released from all encumbrances and mortgages which were imposed on such assets since the time at which the gift was made.

-

Article 1674

The donor shall not, in the case of any legal charges be obligated to grant any discharges.

-

Article 1675

The provisions of articles 879, 880, 881, 884 and of Article 894 as well as the seventh and eight sections of the thirteenth chapter of the second book, are applicable to gifts.

-

SECTION 2 - CONCERNING AUTHORITY TO GRANT GIFTS AND ENJOY THE PRIVILEGES THEREOF

Article 1676

All individuals may grant and receive gifts, with exception of the individuals who are declared incompetent by law.

-

Article 1677

Minors may not grant gifts, with the exception of that which is stipulated in the seventh chapter of the First Book of this Civil Code.

-

Article 1678

Gifts between spouses, while still married, shall be prohibited. However, this stipulation shall not apply to gifts of movable, tangible objects, the value of which is not excessive in view of the financial status of the benefactor.

-

Article 1679

In order to be competent to accept a gift, the donee must have existed at the time that the gift took place, having regard to the rule stipulated in Article 2.

-

Article 1680

Gifts granted to public or religious institutions, shall not have any consequences, other than to the extent that the Governor General or the official designated by the Governor General has granted the managers of such institutions the right to accept such gifts.

-

Article 1681

The stipulations of the second and last paragraph of Article 904, including articles 906, 907, 908, 909 and 911 shall apply to gifts.

-

SECTION 3 - CONCERNING THE FORM OF GIFTS

Article 1682

Any gifts, with the exception of those stipulated in Article 1687, may only take effect by notarial deed, and the original document of such gift shall remain with the notary.

-

Article 1683

No gift shall bind the donor, or shall have any effect, until the day on which it has been expressly accepted, either by the donee, or by an individual, to whom, authority has been granted by authentic deed to accept gifts which have been or shall be granted to the donee.

If the acceptance does not take place in the deed of gift, this can take place by subsequent authentic deed, the original document of which shall be kept, unless this shall take place during the donor's life, in which case, the gift, with respect to the latter mentioned, shall only be valid from the day on which the acceptance shall be notified to him.

-

Article 1684

Gifts granted to a married woman, shall only be accepted in accordance with the stipulations of the Fifth Chapter Of The First Book of this Civil Code.

-

Article 1685

Gifts granted to minors, who are under parental supervision, shall be accepted by those, who exercise such parental right. Gifts granted to minors or individuals under guardianship, shall be accepted by the guardian who has been authorized by the court. If the court has granted the authority, the gifts shall be valid, notwithstanding that the donor passes away prior to the granting of such power.

-

Article 1686

Ownership of the assets covered in the gift, even if such gift is properly accepted, shall not vest in the donee, other than by a transfer, effected in accordance with articles 612, 613, 616 etc.

-

Article 1687

Gifts of movable, tangible objects, or debt claims to be paid to bearer, do not require any deeds, and shall be valid by a single delivery to the donee, or to a third party, who shall accept the gift on his behalf.

-