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KUHPer XXII

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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 XV - Concerning Aleatory Agreements

Article 1779

All annuities established for an individual who dies on the day on which the agreement is entered into, shall be invalid.

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Article 1780

Income from annuities may be stipulated to be whatever amount is agreed by the parties.

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Article 1781

The individual on whose behalf an annuity has been established pursuant to a secured agreement, may demand the nullification of the said agreement, if the debtor has not delivered the agreed security. In the event of nullification, the debtor shall be obliged to pay the agreed outstanding interest, until the principal sum has been paid.

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Article 1782

Default on annuities which have arisen, shall not entitle the recipient of interest to demand payment of the principal sum, or the return of the assets delivered by him, on which interest is payable; he shall only be entitled to charge the debtor for the outstanding interest, to demand indemnification, and to request security for the outstanding interest.

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Article 1783

Revoked: S.1906-348.

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Article 1784

The debtor cannot be released from the obligation to make payment of the annuity by offering to return the principal sum, and by agreeing not to reclaim the interest paid; he is obliged to continue the payment of the annuity, for the duration of the life of the individual or individuals for whom the interest is established, regardless of how onerous it will be upon him.

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Article 1785

The holder of an annuity shall be entitled only to payment of the annuity for the number of days that the party for whom the annuity was established, has lived. If the agreement indicates that the annuity shall be paid in advance, the right to the installment which should have been paid, shall be granted with effect from the day on which the payment should have occurred.

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Article 1786

An individual cannot stipulate that an annuity shall not be subject to seizure, unless it has been established gratuitously.

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Article 1787

The recipient of the interest shall not reclaim the interest outstanding, unless he can indicate that the individual for whom the annuity was established is still alive.

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SECTION 3 - CONCERNING GAMES AND GAMBLING

Article 1788

The law shall not admit any legal claim with respect to a debt resulting from games or gambling.

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Article 1789

The aforementioned stipulation, shall not include games which involve physical exercise, such as fencing, running etc. Nevertheless the judge can deny the claim or reduce it if the amount claimed appears excessive to him.

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Article 1790

An individual may not deviate from the stipulations in the two previous articles by a renewed debt.

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Article 1791

Under no circumstances, can the individual, who has voluntarily paid for the loss, reclaim it, unless, the winner has committed fraud, deceit or embezzlement.

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Chapter XVI - Concerning The Issuance Of Mandates


SECTION 1 - CONCERNING THE NATURE OF THE MANDATE

Article 1792

A mandate is an agreement, by which an individual assigns authority to another, who accepts it, to perform an act on behalf of such mandator.

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Article 1793

Authority may be granted and accepted pursuant to a public deed, or privately, in a letter, and may also be granted verbally. The acceptance of authority may also be implied, and shall be deduced from the implementation of the authority by the individual authorized.

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Article 1794

A mandate shall take place gratuitously, unless otherwise agreed. In the latter mentioned case, if the fees are not expressly stipulated, the mandatary shall not demand more than that which is stipulated in article 411 in respect of guardians.

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Article 1795

A mandate can be either specific, being related to one or more matters, or general, being related to all matters of the mandator.

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Article 1796

A mandate, granted in general wording, shall only extend to acts of management. A specific mandate shall be required in order to transfer assets, or encumber them, to reach a compromise, or to perform any other act of ownership.

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Article 1797

The mandatary shall not do anything which is outside the scope of his authority; the authority to perform the matter by compromise shall not include the authority to submit the matter to the decision of arbitrators.

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Article 1798

Women and minors may be appointed as representatives, but the mandator shall not file any legal claims against minors, other than in accordance with the general provisions which apply to contracts with minors, and against married women who have accepted the authority without authorization from their husbands, in accordance with the rules, as stipulated in the fifth and seventh titles of the First Book of this Civil Code.

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Article 1799

The mandator may file a claim directly against the party with whom the representative had dealings on behalf of the mandator, and may demand the immediate fulfillment of the agreement.

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SECTION 2 - CONCERNING THE OBLIGATIONS OF THE MANDATARY

Article 1800

The mandatary must execute the authority, for as long as he has not been discharged from it, and shall be responsible for the costs, damages and interest incurred by not executing such authority. He must also finalize any matter, which he commenced at the time the mandator passed away, if loss could occur as a result of not finalizing the matter immediately.

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Article 1801

The mandatary shall be liable for malice, as well as for any negligent acts committed in the course of implementing his authority. Notwithstanding this, liability for negligence shall be less stringently enforced with regard to a party who has accepted authority gratuitously, than with regard to a party who has accepted compensation therefor.

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Article 1802

The mandatary is required to account for his actions, and to be accountable to the mandator for anything that he has received pursuant to his mandate, notwithstanding that that which has been received might not have been owing to the mandator.

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Article 1803

The mandatary shall be responsible for an individual who he has designated to implement the authority in his place;

(1)   if he has not been authorized to designate another individual in his place;

(2)   if he has been granted such authority without indicating a specific individual and the individual designated by him appears to be incompetent or incapable. The mandator shall at all times be presumed to have granted the mandatary the ability to designate somebody else in his place for the management of property located outside the territory of the Netherlands Indies or on an island other than where the mandatary is established. In any event, in this regard, the mandator may file any charges directly against the party who has been designated by the mandatary to act in his place.

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Article 1804

If, in the same deed, several representatives or mandataries have been appointed, they shall not be severally liable, unless it has been expressly stipulated.

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Article 1805

The mandatary shall settle the interest payments on the principal sums which he has expended for personal use, effective from the time that he has spent it, and the interest payments on the sums which he is required to return upon the closing of the account, shall be made effective as of the day on which he fails to exercise his authority.

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Article 1806

The mandatary, who has properly notified the individual with whom he has been involved in such capacity, of his mandate, shall not be liable with respect to anything that occurs outside the scope of his authority, unless he had committed himself thereto personally.

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SECTION 3 - CONCERNING THE OBLIGATIONS OF THE MANDATOR

Article 1807

A mandator is required to fulfill the contracts entered into by the mandatary, pursuant to the authority granted to him. He shall not be bound by any other acts, except to the extent that he has expressly or implicitly validated such.

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Article 1808

The mandator must refund the mandatary the advances made and costs incurred in the implementation of the mandate, and must pay his fee, if such has been agreed. If the mandatary is not guilty of negligence, the mandator cannot withdraw from the obligation to return and pay the amounts mentioned above, notwithstanding failure of the matter.

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Article 1809

The mandator shall also indemnify the mandatary against the losses suffered in implementing the mandate, provided that the mandatary cannot be accused of any carelessness.

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Article 1810

The mandator shall owe the mandatary interest in respect of advances owed, effective as of the day on which the advance payments were made.

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Article 1811

In the event that a mandatary has been appointed by several individuals, to undertake a matter which is applicable to all of them, each individual shall be liable to the mandator for the entire matter concerning all consequences of the mandate.

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Article 1812

The mandatary shall be entitled to retain that which he possesses which belongs to the mandator for such period of time until everything has been repaid, which he, by mandate is required to claim.

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SECTION 4 - CONCERNING THE VARIOUS MANNERS IN WHICH MANDATES ARE TERMINATED

Article 1813

A mandate shall terminate as follows:

due to revocation of the mandate granted to the mandatary;
due to termination of the mandate by the mandatary;
due to the death, the guardianship, the bankruptcy or apparent insolvency, either of the mandator or the mandatary;
due to the marriage of the woman who has granted or accepted the mandate.

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Article 1814

The mandator may revoke the authority if he deems fit, and if there are grounds therefor, he may require the mandatary to return the mandate.

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Article 1815

The revocation which has been notified to the mandatary only, cannot be opposed by third parties, who have dealt with him unaware of this fact; without prejudice to the mandator claiming recourse from the mandatary.

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Article 1816

The appointment of a new mandatary for the performance of the same function, shall cause the revocation of the appointment of the first mandatary, effective as of the date of notification of the appointment to the latter mentioned.

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Article 1817

The mandatary shall release himself from the mandate by giving notice to the mandator. If, however, this notification due to its untimeliness, or for other reasons, shall cause the mandator to suffer loss due to the fault of the mandatary, then the mandatary shall compensate the mandator, unless the mandatary is unable to continue the authority, without causing significant damage to himself.

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Article 1818

If the mandatary is unaware of the death of the mandator, or of the existence of any other reason which would cause the mandate to terminate, any acts which he has performed in ignorance of such shall be valid. In this regard, contracts entered into by the mandatary shall be valid in respect of third parties who have acted in good faith.

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Article 1819

In the event that the mandatary passes away, his heirs shall notify the mandator of this fact, if they are aware of the mandate, and they shall be responsible for that which would have been required in the circumstances in the interest of the mandator; non-compliance shall render them liable for costs, damages and interest, if there are grounds therefor.

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Chapter XVII - Concerning Guarantees


SECTION 1 - CONCERNING THE NATURE OF A GUARANTEE

Article 1820

The provision of a guarantee is an agreement in which a third party agrees, for the benefit of the creditor, to fulfill the obligations of the debtor, if he himself fails to fulfill these.

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Article 1821

No guarantee can be provided unless there exists a valid principal contract. However, one can become a guarantor for a contract, notwithstanding that it may be nullified by a demurrer, which relates only to the debtor personally, for instance, in the case of being a minor.

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Article 1822

A guarantor cannot bind himself to more, nor shall he be subject to more demanding requirements, than those to which the principal debtor has bound himself. A guarantee may also be provided for part of a debt, or be subject to less severe conditions. If the guarantee has been provided in respect of more than the debt or subject to more stringent conditions, then it shall not be entirely invalid, but shall be restricted to that which is covered in the principal contract.

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Article 1823

An individual can act as a guarantor without being requested to do so by the party who has bound him self, and even without his knowledge. One can also act as a guarantor, not only for the principal debtor, but also for another existing guarantor.

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Article 1824

A guarantee shall not be implied but shall be expressly indicated; it shall not extend beyond the terms to which it is subject.

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Article 1825

An unlimited guarantee in respect of a principal contract shall apply to all consequences of the debt, including the costs incurred in filing a claim against the principal debtor, and shall also apply to the expenses incurred after the guarantor has been reminded thereof.

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Article 1826

The contracts concluded by guarantors shall be succeeded to by their heirs.

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Article 1827

A debtor who is required to provide a guarantor, shall present individuals who are competent to bind themselves, who are capable of fulfilling the contract and who reside within Indonesia.

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Article 1828

Revoked: S.38-276.

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Article 1829

In the event that the guarantor, who has been voluntarily or pursuant to a court judgment accepted by the creditor, subsequently becomes insolvent, a new guarantor shall be appointed. There is only one exception to this rule, in the event that the guarantor is appointed pursuant to an agreement in which the creditor has demanded a specific individual as a guarantor.

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Article 1830

An individual, who by law, or pursuant to a court judgment is required to appoint a guarantor, but is unable to find one, shall be entitled in place of such to provide a pledge or mortgage.

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SECTION 2 - CONCERNING THE CONSEQUENCES OF THE GUARANTEE BETWEEN THE CREDITOR AND THE GUARANTOR

Article 1831

The guarantor shall not be obliged to pay the creditor unless the debtor fails to settle his debt; and, in this regard, the debtori shall be dispossessed of his assets in advance in order to settle the debt.

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Article 1832

The guarantor cannot demand that the debtor shall be dispossessed of his assets in advance in the following circumstances:

(1)   if he has relinquished his privileged right of dispossession;
(2)   if he, has severally bound himself to the principal debtor; in which case the consequences of the same contract shall be regulated in accordance with the basic principles which have been established with respect to several liability debts;
(3)   if the debtor can submit a demurrer which is only relevant to him personally;
(4)   if the debtor becomes bankrupt or insolvent;
(5)   in the case of a guarantee ordered by the court.

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Article 1833

A creditor shall not be required to firstly dispossess the principal debtor of the assets, until the guarantor so demands, pursuant to the first legal charge filed against him.

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Article 1834

The guarantor, who demands that the assets of the principal debtor be seized, shall inform the creditor of the debtor's assets, and shall advance the required sum to implement the dispossession. He cannot inform him of the assets, regarding which there is a dispute in court, or of those which have been encumbered as security for the debt, and which are no longer in the debtor's ownership, nor of property which is located outside Indonesia.

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Article 1835

If the guarantor, in accordance with the previous article, has informed of the assets and has advanced the sum necessary for such dispossession, the creditor shall be, in the amount of the assets informed, with respect to the guarantor, responsible for the insolvency of the principal debtor, which shall arise thereafter due to the absence of claims.

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Article 1836

If several individuals have been appointed as guarantors for the same debtor and in respect of the same debt, each one of them shall be bound in respect of the entire debt.

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Article 1837

Notwithstanding this, each one of them, shall, to the extent that they have not relinquished their privileged right to division of debts, demand at the first legal suit that the creditor shall divide the loan, and shall deduct the share of each validly bound guarantor. In the event that at the time that one of the guarantors has pronounced the division of the debt, one or more co¨guarantors are insolvent, then that guarantor, in proportion to his share, shall be obliged to settle on behalf of the insolvent guarantors; he shall however, not be liable if such insolvency occurs after the division of the debt.

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Article 1838

If the creditor himself, voluntarily, has divided his legal claim, then he cannot oppose the division of the debt, notwithstanding that some of the guarantors became insolvent prior to the division of the debt.

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SECTION 3 - CONCERNING THE CONSEQUENCES OF A GUARANTEE BETWEEN THE DEBTOR AND THE GUARANTOR, AND BETWEEN THE GUARANTORS THEMSELVES

Article 1839

A guarantor who has paid, shall have a claim against the principal debtor, whether the guarantee has been given with or without his knowledge. This claim for compensation shall take place, whether with regard to the principal sum or with regard to interest and costs. With regard to the costs, the guarantor shall only be compensated to the extent that he has given timely notification to the principal debtor of the charges filed against him. The guarantor shall also be entitled to compensation of costs, damages and interest, in the event that there are grounds therefor.

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Article 1840

A guarantor who has paid the debt, shall, by law, have all the rights which the creditor had with regard to the debtor.

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Article 1841

If several debtors of the same debt are severally liable in respect of the entire debt, then the one who has been elected as guarantor for all of them may claim from each one of them indemnification of the amount he has settled.

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Article 1842

The guarantor who has settled the debt once, shall have no claim against the principal debtor who has paid a second time, if he has not informed him of the payment made; without prejudice to his action to reclaim this payment from the creditor. If the guarantor has paid, without being legally obligated to do so, and without notifying the principal debtor thereof, he cannot demand payment from the debtor, if the latter mentioned, at the time of payment, is entitled to have the debt cancelled; without prejudice to the legal claim of the guarantor for reclaim from the creditor.

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Article 1843

The guarantor, may, even prior to payment, approach the debtor to be indemnified for this or to be released from his contract;

(1)   if he has been charged in court for payment;
(2)   revoked: S.06-348.
(3)   if the debtor has bound himself to release him from the guarantee;
(4)   if the debt has become collectable, with the arrival of the term in which the debt shall be payable;
(5)   following the lapse of ten years, if the principal contract does not have a specific maturity date, unless the nature of the principal contract is such that it cannot lapse prior to a specific time, as in the case of a guardianship.

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Article 1844

If several individuals have been appointed as guarantors to the same debtor and with respect to the same debt, then the guarantor, who has settled the debt, as mentioned in the matter stipulated in number (1) of the previous article, and if the debtor has been declared bankrupt, may demand indemnification from the other guarantors, each in respect of his respective share. The stipulation of the second paragraph of article 1293 shall apply in this case.

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SECTION 4 - CONCERNING THE NULLIFICATION OF GUARANTEES

Article 1845

The contract, arising out of a guarantee, shall be nullified for the same reasons that cause the termination of other contracts.

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Article 1846

Consolidation of debts which takes place between the principal debtor and the guarantor, shall occur when one becomes the heir of the other, but shall not nullify the legal claim of the creditor against the individual who has appointed himself as guarantor of that guarantor.

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Article 1847

The guarantor may put forth all the demurrers, which apply to the principal debtor, and which relate to the debt itself. He may, however, not present any demurrers, which only relate to the debtor himself.

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Article 1848

The guarantor shall be released from his obligations, if, due to the act of the creditor, he can no longer act on behalf of the creditor with respect to the mortgages and privileges of rights.

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Article 1849

The voluntary acceptance of any immovable or other assets by the creditor as payment for the principal debt, shall release the guarantor, notwithstanding that it subsequently appears that the creditor shall transfer the assets to a third party pursuant to a court judgment for the payment of said debt.

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Article 1850

A simple deferment of payment, granted by the creditor to the principal debtor, shall not release the guarantor from his obligations; he can however, in this regard, pursue the debtor to make payment or to release him from his guarantee.

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Chapter XVIII - Concerning Settlement

Article 1851

A settlement is an agreement in which parties, by handing over, agreeing, or retaining a matter, resolve a matter which is pending suit, or prevent a suit. This agreement shall be valid only if it is concluded in writing.

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Article 1852

To conclude a settlement, one shall have the competence to familiarize oneself with the issues covered in the settlement. Guardians and conservators shall not be allowed to conclude a settlement other than in accordance with the stipulations of the fifteenth and seventeenth titles of the first book of this Civil Code. The heads of the local government, in such capacity, and the public institutions shall not conclude a settlement other than by observing the formalities, described by the relevant laws.

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Article 1853

One can arrange a settlement regarding the civil matters which may arise out of a misdemeanor or infringement. In this regard, the settlement shall not prevent prosecution by the prosecution counsel.

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Article 1854

Settlements shall concern the matters covered therein; the relinquishment of all rights, actions and claims shall only be interpreted to the extent that they are related to the dispute, which is settled.

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Article 1855

Settlements shall only resolve the disputes covered therein, whether the parties have stipulated the objective in specific or general terms, or whether the objective is a necessary result of whatever is stipulated.

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Article 1856

If an individual concludes a settlement concerning a right which he has been granted further to his own endeavors, and thereafter obtains a similar right from another party, then, he shall not be bound to the aforementioned settlement in respect of this most recently obtained right.

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Article 1857

Settlements, concluded by one of the relevant parties, shall not bind the other relevant parties, and cannot be revoked by them.

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Article 1858

In the last instance, settlements shall have the same validity among one another as a judgment. One cannot appeal such, whether for reasons of errors in the law, or due to another party being jeopardizing.

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Article 1859

Notwithstanding this, a settlement may be nullified in the event that there is erroneous information regarding an individual or concerning the subject of the dispute. Settlements may be nullified in all events in which fraud or force have occurred.

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Article 1860

One can also request the nullification of a settlement, if due to erroneous facts, it is concluded based on an invalid principle, unless the parties have expressly entered into such agreement regarding such invalidity.

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Article 1861

A settlement, concluded pursuant to documents which are subsequently found to be fraudulent, shall be totally invalid.

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Article 1862

A settlement concerning a dispute which has already been settled by a verdict, of which the parties, or one of them was unaware, shall be invalid. If the verdict of which the parties were unaware, is subject to an appeal, then the settlement shall be valid.

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Article 1863

If the parties, in general, have concluded a settlement concerning all matters pending among them, the documents, which were not known to them, but which were subsequently revealed, shall not be used as grounds for nullification of the settlement, unless these documents were concealed by one of the parties. The settlement shall however, be invalid, if it only concerns one matter, and if the documents discovered thereafter reveal that one of the parties does not have any right in respect of this particular matter.

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Article 1864

An erroneous calculation carried out at a settlement shall be rectified.

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