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Contents Part 1. General Regulations Chapter 1. The Basic Principles of the Civil Law Chapter 2. The Parties Concerned in Civil Law Transactions Chapter 3. Acts Governed by the Civil Law Part 11. Regulations Relating to Ownership Chapter 1. General Regulations Chapter 2. State Ownership Chapter 3. Cooperative Ownership Chapter 4. Individual Ownership Part 111. Regulations Concerning Credit and Debt Chapter 1. General Regulations Chapter 2. A Contract Based on a Plan Chapter 3. A Contract Not Based on the Plan. Chapter 4. Deeds Involving Undue Profit Part IV. Regulations Concerning Civil Responsibility and Civil Prescription Chapter 1. Civil Responsibility. Chapter 2. Civil Prescription Part 1. General Regulations Chapter 1. The Basic Principles of the Civil Law Article 1. The civil law of the Democratic People's Republic of Korea is designed to strengthen the socialist economic system and the material and technical foundations of society and provide an independent and creative life for the people by establishing civil regulations respecting property. Article 2. The civil law of the Democratic People's Republic of Korea provides for property transactions conducted between state institutes, enterprises, organizations and citizens, all of which enjoy the same status. The state guarantees for its institutes, enterprises, organizations and citizens an independent status in respect of the civil law. Article 3. The socialist ownership of the means of production is the economic basis of the Democratic People's Republic of Korea. With respect to property, the state improves the planned management of the national economy based on socialist ownership and steadily consolidates the socialist economic system. Article 4. Planned property transactions are conducted in accordance with a contract based on the national economic plan. The state ensures that property transactions are conducted in such a way that state institutes, enterprises and organizations fulfil their planned assignments without fail. Article 5. The state sees to it that state institutes, enterprises and organizations meet the requirements of the Taean work system, a socialist form of economic management, in conducting transactions, and are strictly disciplined in the fulfilment of contracts. Article 6. It is an essential requirement of the socialist state that the people's livelihood be considered responsibly. The state pays close attention to ensuring that the policies for the promotion of the people's welfare reach the working people at state institutes, enterprises and organizations when conducting transactions with citizens Article 7. Property transactions involving citizen dance with contracts and other forms of agreement. The state ensures every possible convenience and co people to take an active part in property transactions. Article 8. Collectivism is the basis of life in socialist The state ensures that state institutes, enterprises, an as citizens, conduct property transactions on the collectivist principle of cooperating with and helping one another. Article 9. The state ensures that the interests of the state and society are given precedence and that those of individual state institutes, organizations, as well as citizens, are thoroughly guarantied in conducting transactions transactions. Article 10. This law is applicable to state institutes, enterprises, organizations, and citizens of our country and of foreign countries the Republic, unless otherwise provided for in treaties and agreements between our country and foreign countries. Chapter 2. The Parties Concerned in Civil Law Transactions Article 11. A state institute, enterprise or organization operating on an independent budget or cost accounting system or a citizen , may be a party concerned in a civil law transaction. An officially registered joint venture company, too, may be a party concerned in a civil law transaction. Article 12. On registering themselves at the relevant institute, enterprise or organization shall acquire its civil rights, which are attended with certain obligations and the power to perform civil acts. Article 13. A state institute, enterprise or organization has the power to exercise civil rights within the sphere of its duties. A state institute, enterprise or organization cannot alter its duties at will after being registered at the relevant state office. Article 14. The person responsible for the management of a state institute, enterprise or organization shall be its representative. A state institute, enterprise or organization may take civil action through its representative or through his or her duly appointed deputy. Article 15. A state institute, enterprise or organization bears civil responsibility for the property under its care or in its possession. Article 16. In cases where a state institute, enterprise or organization is split up, the civil rights and obligations shall be divided accordingly, and in cases where state institutes, enterprises and organizations are merged, their civil rights and obligations shall be combined. In cases where a state institute, enterprise or organization closes down or decides to dissolve itself, its assets and liabilities shall be disposed of by the liquidator entrusted with the duties concerned. Article 17. A state institute, enterprise or organization loses its civil rights and civil duties when it registers its closure or dissolution at the relevant state office. Article 18. The state itself becomes a party concerned in relation to the civil law in such matter as state ownership. In this case the state exercises rights as a party concerned and fulfils its obligations as such through the institute invested with the relevant authority. Article 19. A citizen acquires civil rights with his or her birth and loses them with his or her death. All citizens are equal with regard to civil rights. No one can limit their civil rights unless otherwise provided for in law. Article 20. A citizen's age of majority is 17 years. When a citizen reaches 17 years of age he or she may act under the civil law independently. When a person reaches 16 years of age, he or she may act under the civil law independently within the bounds of his or her ability to pay. When the act under the civil law goes beyond his or her ability to pay he or she may conduct it with the consent of his or her parents or his or her guardian. Article 21. A person under 16 years of age may conduct an act under the civil law through his or her parents or his or her guardian. But any minor of six and above may perform such an act as buying school things and sundry goods for daily use. Article 22. Should nothing be heard from a citizen for two years a notary's office shall confirm his or her disappearance on the request of a party concerned. In the case of a citizen from whom nothing has been heard of for one year after his or her disappearance has been confirmed or for three years after he or she was last heard from, or for one year after a potentially fatal accident occurred, he or she shall be regarded as dead, following the procedure mentioned in the preceding paragraph. Article 23. In cases where a citizen who has been regarded as missing or dead appears or makes his or her whereabouts known, a notary's office shall withdraw the relevant confirmation on the request of the citizen in question or of a party concerned. Chapter 3. Acts Governed by the Civil Law Article 24. A legal act designed to conduct, alter or discontinue transactions under the civil law can be conducted verbally or in writing. When so requested by the judicial authorities, it must be written or notarized. Article 25. A person who performs an act governed by the civil law can retract or alter it only when permission is granted by the legal authorities or when the other party agrees. Article 26. An act governed by the civil law is valid only when it is compatible with state law and the socialist standard of life. An act which goes against state law and the socialist standard of life, an act committed in the knowledge that it does harm to the state and society, a dishonest act, and an act committed by a citizen who has no right to commit an act governed by the civil law shall be regarded as invalid. Article 27. In cases where an act governed by the civil law is declared invalid the money or goods the parties concerned have already exchanged shall be returned. But money and goods shall not be returned to a person who committed the act in the knowledge that it was against state law and the socialist standard of life; in such cases the money or goods shall go to the state treasury. Article 28. An act governed by the civil law that is committed through deception, one committed by mistake in respect of its essential substance, a forced, unintentional act, and an act committed by a person who is 16 years of age but has not obtained the consent of his or her parents or his or her guardian may be cancelled. Cancellation must be done within two months. An act governed by the civil law that is cancelled shall be regarded as invalid. Article 29. In cases where an act governed by the civil law is cancelled the money and goods already given or received by the parties concerned shall be returned. But the money or goods of a person who has deceived or forced the other into committing the act shall not be returned but handed to the state treasury. Article 30. The validity of an act governed by the civil law is related to occurrence of certain conditions. So the parties concerned should not work to bring about or hinder the occurrence of certain conditions. Article 31. A state institute, enterprise or organization, or a citizen, may commit an act governed by the civil law through its, his or her representative except in cases provided for in the law or where it, he or she should commit the act personally. Article 32. A representative may be either a legal representative or an authorized representative. A representative must be a citizen with the right to commit civil acts. Article 33. A representative shall commit an act governed by the civil law on behalf of the principal person concerned, while the legal responsibility rests with the principal. The principal is answerable to his or her representative and to the other party involved in the act for the results of all the activities conducted within the limits of the right of representation. Article 34. Representation may be entrusted verbally or in writing. Should a citizen authorize a representative verbally, the other party should be informed of the fact and of the limits of the right of representation. A state institute, enterprise or organization may authorize a representative only in writing and a letter of attorney or credentials should specify the limits of the right of representation. Article 35. A representative should conduct the representation sincerely, within the limits of the right of representation. A representative shall be answerable for the results of his or her representation that exceeds the limits of the right of representation and for harm caused by improper representation. Article 36. In cases where the principal or his or her representative dies or where the representative loses the right to commit civil acts, the right of respresentation shall end. The right of representation shall end when the principal withdraws the authorization of representation or when the representative rejects the authorization. Part 11. Regulations Relating to Ownership Chapter 1. General Regulations Article 37. The ownership of property in the Democratic People's Republic of Korea falls into the categories of state ownership, cooperative ownership and private ownership. Article 38. Ownership is established on the basis of the law, a contract or another form of agreement. Ownership is established when it is provided for by law should it be based on law, and when a contract is concluded and the objects are handed over in case it is based on contract. Article 39. A person in a position of ownership may possess, use and dispose of the property in his or her possession within the limits provided for by law. The disposal of property may be conducted only by a person in a proper position of ownership. Article 40. A person in a position of ownership may demand the return of his or her property in cases where it is held unlawfully by another. Article 41. A person in a position of ownership may request a person hindering the exercise of his or her ownership to desist from the act. Article 42. Ownership may be shared. Property under joint ownership may be held, used and disposed of upon the agreement of those in the position of joint ownership. Article 43. Those in a position of joint ownership may remove their share from the property under joint ownership. In cases where it is difficult to divide the property, financial compensation may be paid. In cases where the share of those in a position of joint ownership is not clearly defined, their share shall be deemed as equal. Chapter 2. State Ownership Article 44. The property of the state belongs to the entire population. State property consists of nationalized property, property acquired by state investment, products of state owned enterprises, property bought by state institutes and enterprises, property transferred to state institutes and enterprises by state decision, property transferred to the state by cooperative organizations and citizens and property submitted to the state treasury. Article 45. The state may own property without limit. The following properties may be owned only by the state. 1. All the natural resources of the country including underground, forestry and marine resources, 2. Major factories and enterprises in different branches of the national economy including heavy and light industry, fisheries and forestry, enterprises serving agriculture such as farm machine stations and irrigation control offices, purchasing and food administration bodies, city administration offices, and major trading, printing and publishing companies, 3. Ports, banks, transport and communications facilities and broadcasting stations, 4. ties. Education institutes at various levels and major cultural and health facilities Article 46. State property is held by the state on behalf of the entire population. The state may hold, use and dispose of state owned property without limit in the interests of the prosperity and development of the country and of the promotion of the people's well being. Article 47. The state exercises ownership directly or through individual state institutes and enterprises. Those state institutes and enterprises with the right to administer and manage state owned property may hold, use and dispose of the property in their name under the guidance of the state. Article 48. In cases where the property of a state institute or enterprise is supplied or sold to a cooperative organization or citizen, state ownership shall be transferred to the cooperative organization or citizen. But in cases where the property of a state institute or enterprise is supplied or sold to another state institute or enterprise, only the right of management is transferred. Article 49. In the case of fixed assets such as tractors, rice transplanting machines, harvesters and other modern farm machines supplied to cooperative farms by the state, cultural facilities, threshing grounds, pens for domestic animals and warehouses built for cooperative farms at state expense, the state continues to hold ownership of them while transferring the right to use them to the cooperative farm concerned. Cooperative farms may use the fixed assets provided by the state to help them as their own in accordance with their mission. Article 50. The state builds houses and. transfers the right to use them to factory and office workers and cooperative farmers, and protects them by law. Article 51. A state institute or enterprise may demand the restitution of its property in cases where it has been handed over to a cooperative organization or a citizen by an unauthorized person. Article 52. Ownerless goods shall become the property of the state. Goods whose owner is not found or is unknown belong to the category of ownerless goods. Chapter 3. Cooperative Ownership Article 53. The property of cooperative organizations is collectively owned by the working people belonging to the organization. Cooperative property consists of property contributed by the members of the cooperative organization, property which accrues from the cooperative organization's investment, products of the cooperative economy, the assets acquired by the cooperative organization and property whose ownership the state has handed over to the cooperative organization. Article 54. A cooperative organization may have land, draught cattle, farm implements, fishing boats, buildings, small and medium size factories and enterprises, cultural and health facilities and other objects it needs to operate. Article 55. The holder of a cooperative ownership is the cooperative organization. A cooperative organization may hold, use and dispose of its property in accordance with democratic principles, and as its members desire. Land may be disposed of only as provided for in the law. Article 56. In cases where the products of a cooperative organization are supplied or sold to a state organization or enterprise, to another cooperative organization or to a citizen, their ownership shall be transferred. Article 57. A cooperative organization may demand the return of its property in cases where it was handed to another cooperative organization or to a citizen by an unauthorized party. Chapter 4. Individual Ownership Article 58. Individual property is property for the use of individual working people. Individual property is derived from socialist distribution according to work done, additional benefits granted by the state and society, products of the inhabitants' supplementary husbandry including those of small plots, property bought or inherited by a citizen or presented to him or her and other property lawfully acquired. Article 59. A citizen may own a house, household and cultural goods needed by his or her family and other necessaries of life, cars and other items. Article 60. Private ownership is exercised by individual citizens. A citizen may freely hold, use and dispose of his or her property in accordance with the socialist standard of life and in the interests of consumption. Article 61. The property a citizen as a family member has earned for joint use by the family becomes family property. The property he or she brought with him or her when joining the family or he or she owned before marriage, property inherited or presented to him or her as a gift and other property of individual character shall be individual property. Article 62. A citizen may request another citizen to return his or her property if the latter holds it in the knowledge that he or she received it from an unauthorized person. As for mislaid goods, the owner may request their return in cases where another citizen holds them, not knowing that they belong to someone else. Article 63. The state guarantees the right to inherit individual property. A citizen's individual property shall be inherited in accordance with the law. A citizen may bequeath by will his or her property to the members of his or her family, other citizens, and state institutes, enterprises and organizations. Part 111. Regulations Concerning Credit and Debt Chapter 1. General Regulations Article 64. In this law credit means the demand to perform a certain act related to property and debt implies the obligation to perform a certain act related to property. Article 65. The creditor and the debtor may have both rights and corresponding obligations or simply rights or obligations within the relation between credit and debt. Article 66. The relation between credit and debt is established on the basis of the plan for the national economy, national administrative documents, contracts and other agreements. Article 67. The creditor shall help the debtor in discharging his or her debt. A creditor who hinders the clearance of a debt by ignoring this obligation shall have the credit restricted or bear the consequences. Article 68. The creditor shall adopt measures to limit the harm arising from a debtor's failure to discharge a debt. In cases where the harm increases due to the neglect of this obligation, the creditor's claim for damages shall be restricted to the same extent. Article 69. As regards assets and liabilities, calculation shall be made on the basis of a price fixed or assessed by the state or one agreed upon by the parties concerned. Extra money or goods given or received in violation of state price rules shall be returned, and money or goods given or received in intentional violation of the price rules shall not be returned but shall be handed over to the national treasury. Article 70. In cases where there are several creditors or debtors with regard to assets and liabilities, each of them may share the credit or debt or hold it jointly. Article 71. Joint creditors shall have only the right to claim their own share of the credit, and joint debtors shall be under an obligation to discharge only their own share of the debt. Article 72. In cases where the difference between the shares of the claims of the share creditors or the share of the obligations of the share debtors is not clear, the shares shall be regarded as equal. Article 73. Each of the joint creditors has the right to claim the clearance of all the debt, and each of the joint debtors is under an obligation to discharge all the debt. Article 74. The joint debtor who has paid back all his debt has the right to request other joint debtors to discharge their share of the debt, and the joint creditor who has had all the debt cleared is under an obligation to allot due share to the otherjoint creditors. Article 75. A joint creditor shall not infringe on the interests of the other joint creditors in exercising his or her right of claim. In cases where one joint creditor gives up his claim, it shall not affect the other joint creditors. Article 76. In cases where a creditor exempts one joint debtor from some part of his or her debt, the debts of the other joint debtors shall be decreased to the same extent. Article 77. A creditor or a debtor may transfer his or her credit or debt to a third party. A creditor who wants to transfer his or her credit to a third party should inform debtor of it, and a debtor who wants to transfer his or her debt to a third party shall obtain the creditor's prior consent. Article 78. A party who has paid to a creditor the debt incurred by a third party shall be entitled to request the third party to make appropriate compensation. Article 79. The debtor in person shall clear his or her own debts. A debt which is not bound to be paid off by the debtor alone may be discharged by a third party identified by the debtor. In such cases the debtor shall answer to the creditor for the third party's clearance of the debt. Article 80. The debtor shall pay his or her debt within the agreed period. A party who delays the payment of a debt or its reception shall be answerable for it. Article 81. A debt shall be paid at one time unless otherwise provided for in the law or contract, and in cases where debt is to be paid in instalments the creditor may refuse to receive full payment at one time. Article 82. With regard to credit and liabilities by which goods of the same type are handed over as payment, the debtor shall deliver goods of the highest quality. In cases where goods are to be delivered free of charge, goods of average quality may be handed over. Article 83. With regard to credit and liabilities related to the certain goods of distinct character the relation of the credit and liabilities dissolves when the goods have run out or when it becomes impossible to use them. But the party culpable shall pay compensation for the incurred damage. With regard to credit and liabilities related to goods of the same character, the debtor shall hand over other goods of the same kind when the goods run out or are damaged. Article 84. From when the objects of credit and liabilities are identified separately from goods of the same character, the objects become definite ones of distinct character. Article 85. With regard to credit and liabilities related to the transfer of property, the dependent property shall be made over together with the transferred property. Article 86. A debt shall be cleared in a place stipulated in the act or contract. Unless otherwise provided for in the act or contract a debt to be paid in money shall be cleared at the place of residence of the creditor or at an appropriate bank, a debt that is to be covered by the transfer of immovables, at the place where the immovables are found, and other debts, at the place of residence of the debtor or at an address of his or her choice. Article 87. In cases where the goods that are to cover the debt are badly damaged, the person who paid for them holds their ownership. Article 88. The parties concerned shall choose one of the variety of ways of clearing a debt. In cases where the act or contract does not specify the person who has the option, the debtor shall have the option. Article 89. When the person who has the option does not choose the manner of clearance during the period for the clearance of the debt, the option reverts to the other party. Chapter 2. A Contract Based on a Plan Article 90. A contract based on a plan shall be concluded between state institutes, enterprises or organizations for the fulfilment of a national economic plan and for the correct enforcement of the cost accounting system. A state institute, enterprise or organization shall conclude a contract in time in accordance with fixed procedures and methods. Article 91. The contracting parties shall specify the content of a contract in such a way that the national economic plan is fulfilled precisely and in a rational manner. Should a state institute, enterprise or organization find shortcomings in the plan, they shall notify the planning body immediately. Article 92. A contract is concluded when an agreement is reached on all points specified in the act. A difference of opinions arising in the conclusion of a contract shall be settled through arbitration. Article 93. A contract shall be altered accordingly if the national economic plan is supplemented or adjusted. A contract shall be changed when a party concerned receives notice of a supplement to or adjustment of the plan from the other party or when both the contracting parties receive information from an authoritative state institute. Article 94. A state institute, enterprise or organization shall deliver or receive materials in accordance with a contract for the supply of materials that is based on the state materials supply plan. A contract for supplying materials shall be concluded and executed to meet the requirements of the Taean work system and the state's requirements concerning the form of commerce in the supply of materials. Article 95. A state institute, enterprise or organization which delivers or receives machines, equipment, raw and other materials in accordance with the state's detailed plan for materials supply becomes a party concerned under the contract for the supply of materials. The supplier is under an obligation to deliver the materials envisaged in the plan to the customer in accordance with the contract for the supply of materials, and the customer is under an obligation to pay the full price of the materials delivered. Article 96. The parties concerned under the contract for the supply of materials shall reach an agreement on the type, standard and quality of the materials to be delivered, the terms of their supply, the quantity and the price, the method of delivery, the packaging of the materials, the bank involved and other matters. Article 97. The supplier shall transport materials promptly through transportation agencies or hand them over to the customer at his or her place of work. The supplier shall be responsible for the organization of the transportation through transport agencies and the transportation costs shall be borne by the customer. Article 98. The customer shall accept the delivered materials after inspecting them, Should there be a problem with the materials the customer may request the supplier's presence and receive a memorandum concerning the problem from him or her. The party who delays the confirmation of a problem or refuses to acknowledge it without justifiable grounds shall be responsible, in accordance with the memorandum concerning the problem drawn up by the customer. Article 99. When the customer finds hidden defects in materials delivered, he or she shall inform the supplier of them and receive the memorandum from him or her. Should time be short or should the cause of the defects and their severity be disputed, a further memorandum may be drawn up with the participation of the relevant supervisory authorities. The customer should call the supplier to account for hidden defect within three months of receiving the materials or by the end of the trial period in the case of machines and equipment. Article 100. In cases where the customer becomes insolvent through hoarding or squandering materials delivered the supplier may readjust the delivery of the materials stipulated in the contract. Article 101. The customer shall pay for materials promptly after delivery. When the assortment, standard, quality and price of the materials are not as stipulated in the contract the customer may return them to the supplier without having made payment. In the case of materials which are liable to go bad or require immediate correction their price may be reduced without their being returned. Article 102. State institutes, enterprises and organizations shall deliver and receive commodities in accordance with a contract for the supply of commodities and on the basis of the state plan for the supply of commodities. A contract for the supply of commodities shall be concluded and implemented to meet the state's requirements concerning the combining of production and consumption correctly and satisfying the people's material and cultural needs, in accordance with the system of ordering. Article 103. The supplier is under an obligation to deliver the consumer goods envisaged in the plan to the customer in accordance with the contract for the supply of commodities, and the customer is under an obligation to pay for them after receiving them. Article 104. The factory, enterprise, wholesale agency or retail trade institute which delivers or receives commodities under the state plan for the distribution of commodities shall be a party concerned in the contract for the supply of commodities. The trading agencies in charge of the sale of the products of factories and enterprises and cooperative farms, too, may be parties concerned in the contract. Article 105. The parties concerned in the contract for the supply of commodities shall agree upon the conditions provided for in Article 96 of this law. Article 106. The supplier shall deliver commodities through the transport network or deliver them promptly to the customer's place of work. The specifications together with the commodities shall be sent to the customer. Article 107. The commodity supplied, after inspection, shall be received by the customer, and any defects revealed shall be dealt with as provided for in Paragraph 2 of Article 98 of this law. Article 108. An accident related to hidden defects in supplied commodities shall be dealt with as provided for in Paragraph 1 of Article 99 of this law. As for hidden defects in commodities for which the period of the guarantee has not been fixed the supplier may be called to account within three months of delivery. Article 109. A procurement agency shall purchase agricultural products in accordance with a contract for their procurement drawn up on the basis of the state procurement plan. A contract for the procurement of agricultural products shall be concluded and implemented to meet the state's requirements as to using cereals and raw materials according to a plan and increasing the farmers' enthusiasm for production. Article 110. Producers are under an obligation to produce the agricultural products agreed upon in the contract for their procurement and to deliver them to the procurement agencies, and the procurement agencies are under an obligation to pay a proper price for them after their delivery. Article 111. The parties concerned in the contract for the purchase of agricultural products shall agree upon the period for the purchase of agricultural products, their quantity, price, quality, standard, storage, transportation and other conditions. Article 112. The quality and standard of procurement goods shall be fixed in accordance with the state procurement plan. In cases where they are not specified in the state procurement plan they shall be fixed in accordance with an agreement by the parties concerned. Article 113. Packing materials and cases for procurement goods shall be provided by the procurement agencies. The packing materials and cases to be prepared by the producers shall be provided by them. In this case the cost for them shall be borne by the procurement agencies. Article 114. The contracting parties shall observe the period of procurement. In cases where the procurement agency fails to purchase agricultural products within the period stipulated in the contract, any harm incurred by the producer shall be indemnified. Article 115. The procurement agency shall accurately check the quality of agricultural products and buy them in measured quantities. Agricultural products shall not be bought by measuring their volume in containers or warehouses. Article 116. A procurement agency shall be responsible for transporting or storing the agricultural products purchased at the producer's warehouse or on the spot. But purchased unpacked cereals and bulky goods may be kept by the producers with responsibility for them lying with the procurement agency. Article 117. A state institute, enterprise or organization shall commission capital construction in accordance with a contract for its execution on the basis of the state plan for capital construction. A contract for the execution of capital construction shall be concluded and implemented to meet the state's requirements concerning the concentration of building work, the reduction of building costs and the improvement of the quality of buildings. Article 118. The building contractor is under an obligation to hand over the completed building to its commissioner under a contract for the execution of capital construction, and the commissioner is under an obligation to ensure the conditions agreed upon and accept the completed building. Article 119. The parties concerned in the contract for the execution of capital construction shall agree upon the construction projects, their scale, the dates of commencement and completion and the provisions to be observed. A contract for the execution of capital construction shall be concluded for each construction project, based on the annual plan. Article 120. The commissioner shall secure a building site and blueprints so that there is no hindrance to the prosecution of the construction project. The contractor may remove buildings and facilities on the building site on commission of commissioner. Article 121. The builder shall observe the dates of the commencement and completion of the construction project and its commissioning and ensure the quality of work, as indicated in the blueprints and technical documents. Article 122. The commissioner shall certify the results of the work per formed by the builder promptly so that there is no hindrance to the construction project. Article 123. Only buildings and structures which have undergone inspection for the certification of the completion of the work shall be handed over to the commissioner by the builder. Inspection for the certification of the completion of the work shall be conducted when the contracted work is completed and trial operation at full capacity has been undertaken. Article 124. The builder is under an obligation to remove defects which are revealed within a year of the handing over of the building or structure to the commissioner. In this case the cost shall be borne by the culpable party. Article 125. A state institute, enterprise or organization shall transport goods included in the state transport plan with the help of the transport services and in accordance with a contract for the transportation of goods. A contract for the transportation of goods shall be concluded and implemented so as to meet the state's requirements concerning the rational organization of transport and fulfilling the plan for the transportation of goods in terms of quality and quantity. Article 126. Under a contract for the transportation of goods the consignor is under an obligation to deliver goods to the transport services and pay carriage for them, and the transport services are under an obligation to forward the goods and deliver them to the consignee. Article 127. The parties concerned in a goods transportation contract shall agree upon the type and quantity of the goods, the place of forwarding and of destination, the methods of loading and unloading, the names of the consignor and the consignee and other provisions. Article 128. The consignor shall deliver the goods of fixed standard under contract to the transport services by the stipulated time and the transport services shall allot the means of transport compatible with the nature of the goods. Article 129. The loading and unloading of goods shall be undertaken by the consignor unless otherwise agreed upon. The person loading and unloading the goods shall observe the set time for the work. Article 130. Transport services shall keep and manage the goods well until they have delivered them to the consignee. The transport services shall not make use of the goods in transit or hand them over to another person. Article 131. Transport services shall forward goods to the destination along the most rational transport route within the set time. In cases where this obligation is not fulfilled the consignor may refuse to pay any additional costs incur red and receive compensation for the delay in the delivery of the goods. Article 132. On the arrival of the goods the transport services shall inform the consignee of it promptly. The consignee shall take out the goods within the time agreed. In cases where the consignee does not fulfil this obligation, he or she shall pay a fee or relevant charge. Storage or a fine for the goods forwarded by combined transport shall be calculated according to the rates applied by the transport services which deliver the goods. Article 133. When an accident is revealed to have occured on inspection of the goods, the consignee may receive a memorandum concerning the accident from the transport services and claim appropriate damages. The transport services which refuse to draw up a memorandum concerning the accident for no justifiable reason shall be answerable for the accident. Article 134. In cases where a state institute, enterprise or organization, or a citizen, has goods not included in the national economic plan forwarded by the transport services, it shall be done according to the procedures in the contract for the transportation of goods specified in this law. Chapter 3. A Contract Not Based on the Plan Article 135. A contract not based on a plan shall be concluded so as to make the state's popular policies reach the citizens easily and ensure normal management activities at state institutes, enterprises and organizations. Article 136. A contract shall be concluded upon a proposal by one party and by its acceptance by the other party. The party which makes the proposal shall not cancel the proposal individually after it has been accepted by the other party. Article 137. Goods or rare metals which may be obtained only with the consent of the state and other state controlled goods may not become the objects of a contract. Article 138. The parties concerned in a contract shall agree upon the objects of the contract, the period for its fulfilment, prices and other essential provisions. A contract shall not include provisions which allow citizens to acquire unearned income. Article 139. A contract may be concluded with or without the payment of a fee. A contract participated in by a state institute, enterprise or organization shall be concluded with a fee being paid. Article 140. A contract between state institutes, enterprises and organizations shall be concluded in writing. A contract between a state institute, enterprise or organization and a citizen, or between citizens, may be concluded verbally unless provided for otherwise in the law. In cases where a dispute arises concerning the conclusion and provisions of a contract, a verifiable contract in writing shall be recognized preferentially at trial or arbitration. Article 141. A contract concerning transactions of immovables shall be effective only if it is concluded in writing and notarized. Article 142. It is a rule that a contract under which two parties are under equal obligation shall be fulfilled mutually and simultaneously. When one party does not fulfil his or her obligation, the other party may withhold the fulfilment of his or her obligation. Article 143. When one party does not fulfil a contract within the stipulated period, the other party may cancel the contract and obtain compensation for any harm incurred. Article 144. A person who accepts articles under contract shall inspect them promptly and inform the other party of any defects revealed. A person who is culpable for defects in articles shall remove the defects or replace the articles or reduce price. Article 145. A person who accepts articles under contract may inform the other party of any hidden defects and call him or her to account. It shall be done within the stipulated period. Article 146. A person in possession of articles under contract shall be answerable for their loss or damage. But in cases where the articles under contract are lost or damaged due to natural disaster or unavoidable circumstances he or she shall not be answerable. Article 147. A contract may be concluded on behalf of a third party. In this case the contract holds good for the third party as well as for those who conclude it. Article 148. Purchase and sale between a retail trade institute or a procurement agency and a citizen or between citizens shall be conducted according to a contract for purchase and sale. A contract for purchase and sale shall be concluded and fulfilled to meet the consumption needs of people adequately. Article 149. A person who sells goods according to a contract for purchase and sale is under an obligation to transfer their ownership to the buyer, and the buyer is under an obligation to pay for them after receiving them. Goods may be sold only by a person who possesses the right to dispose of them. A contract for purchase and sale is not valid in cases where it was concluded in the knowledge that the goods were sold by a person who had no right to dispose of them. Article 150. Retail trade institutes become sellers under a contract for the purchase and sale of commodities produced and supplied by factories and enterprises. Retail trade institutes shall make up orders for goods to meet the demands of inhabitants and maintain a stock of them for sale. Article 151. The buyer of commodities which are guaranteed for a stipulated period may call the seller to account for any defects revealed during the period of the guarantee. Article 152. Procurement agencies shall become a concerned party buying agricultural and livestock products, local specialities, raw and other materials and daily necessaries, with the exception of the agricultural products included in the state plan, rare metals and state controlled products. Procurement agencies shall publish the grades of and prices of their main procurement items and purchase goods according to them. Article 153. Procurement agencies shall buy goods under contract within the stipulated period. When this obligation is not fulfilled the seller may sell the goods concerned to other procurement agencies and obtain compensation for any damage incurred. Article 154. The transportation of procurement goods to the place of purchase shall be conducted by the seller and their transportation from the place of purchase elsewhere shall be conducted by the procurement agencies. In cases where the transportation of procurement goods is contracted otherwise, the person in charge of the transportation may receive appropriate payment from the other party. Article 155. Sideline agricultural products produced by citizens may be bought and sold only at a peasant market at prices agreed upon by the producer and the consumer. The reselling at a higher price of goods bought is prohibited. Article 156. The making, repair and servicing of goods and other services shall he commissioned according to a service contract. A service contract shall be concluded and implemented so as to ensure good services for the working people. Article 157. A person who renders service in accordance with a service contract is under an obligation to execute the order and hand over the serviced article to the orderer and the orderer is under an obligation to pay the appropriate fee after receiving the serviced article. Article 158. A service contract is concluded when the parties concerned reach a verbal agreement and exchange the serviced article. Article 159. When handing over a material for work, the orderer shall give directives for the work and make all relevant technical data known. Should this obligation not be fulfilled, the receiver of the order may extend the period of the work appropriately or reduce the priority of the work. Article 160. Unless provided for otherwise in the contract, the receiver of an order shall take it upon himself or herself to acquire the necessary materials and accessories. When it is agreed that materials and accessories are to be supplied by the orderer, the receiver of the order shall check them and inform the other party of any defects as soon as they are revealed. Article 161. The receiver of an order shall carefully handle an article supplied by the orderer and use materials and accessories as required by the standards of material consumption and the technical regulations. Any materials and accessories remaining after the work shall be returned to the orderer together with the serviced article. Article 162. The receiver of an order shall not change the structure of the object of the work at will or remove parts from an object of work supplied by the orderer or alter any materials and accessories. Article 163. The receiver of an order shall observe the period for the work. When it becomes evident that the receiver of an order cannot finish the work within the stipulated period, the orderer may cancel the contract and obtain compensation for any harm incurred. work. Article 164. The receiver of an order shall guarantee the quality of the In cases where the period of a guarantee is fixed, the receiver of an order shall be answerable for any defects revealed during the period of the guarantee unless they are attributable to others. Article 165. The orderer shall receive the finished work promptly. When this obligation is not fulfilled, the orderer may be asked to pay a storage fee. Article 166. A citizen may deposit or keep goods in accordance with a storage contract. A storage contract shall be concluded and implemented in order to improve the quality of life of people, Article 167. A person who keeps goods under storage contract is under an while obligation to return the goods to the depositor after keeping them, while the depositor is under an obligation to pay the appropriate fee after the return of the goods. A fee shall not be charged or paid under a storage contract between citizens zens. Article 168. A storage contract shall be concluded when, after a verb agreement between the parties concerned, the goods are handed over to the custodian or the custodian gives an appropriate document to the other part after receiving the goods. A storage contract may be concluded with or without a stipulated period. Article 169. The depositor of goods shall give the custodian advice concerning their storage. If this obligation is not fulfilled, the depositir shall answerable for any damage to the articles in custody and the custodian. Article 170. The custodian shall keep the goods as contracted . Goods that by their nature require special care shall be kept and taken care of properly. The custodian may charge the depositor any expenses involved in care of goods. Article 171. An establishment keeping articles in connection w1th the running of hotels, theatres, halls and the like shall be answerable for their loss or damage. But it shall not he answerable for articles the customer keeps separately. Article 172. A depositor shall recover the goods on time. When a depositor fails to recover the goods before the expiry of the period of custody, the custodian may charge the depositor a higher fee. Article 173. The custodian shall return to the depositor the goods in their original state. When a custodian takes charge of sealed or packaged goods, he or she shall return them intact, and when he or she receives goods after confirming their contents he or she shall return them after certifying their contents again. Article 174. A custodian shall duly return the goods to the depositor. In cases where document was issued on receipt of goods they shall be handed over to the person who presents the document and the obligation of custody end. Article 175. A citizen may keep and manage the property of another citizen, the state or a public cooperative organization, even without legal obligation. In this case the person who keeps and manages the property shall inform its owner of the fact and keep and manage it as his or her own, and he or she may charge its owner any expenses incurred in keeping and managing it. Article 176. In cases where the person who keeps and manages the property of another without legal obligation is obliged to dispose of it he or she shall return to its owner what he or she has received. Article 177. A citizen may borrow books, living necessaries, recreation facilities and gymnastic apparatuses in accordance with a loan contract. A loan contract shall be concluded and implemented in such a way as to meet a variety of material and cultural needs for the people. Article 178. Under a loan contract the lender is under an obligation to hand over articles to the borrower so as to allow him or her to use them for a certain period, and the borrower is under an obligation to return them to the lender after using them for a certain period, paying a fee for them. Article 179. A contract by which a citizen borrows books, patented articles, audiotapes or videotapes and the like from an appropriate institute shall be con eluded with or without charge. A fee shall not be charged or paid under a loan contract between citizens. Article 180. The lender shall hand over an article that is suitable, and in cases where a defective article is lent the borrower shall be informed of the fact. Harm inflicted on the borrower due to a failure to fulfil this obligation shall be indemnified. Article 181. A borrower shall use the borrowed article to meet the provisions of the contract and its usage and shall not change its structure at will. In cases where a borrower wants to change the structure of the borrowed article he or she shall obtain the lender's approval. Article 182. Major repairs of the borrowed article shall be undertaken by the lender, intermediate repair as provided for in the contract and minor repair by the borrower. In cases where the borrowed article is badly damaged because the responsible party failed to carry out intermediate or minor repair the other party may cancel the contract. Article 183. Under a loan contract the borrower may lend the borrowed article to a third party with the lender's consent. In this case the borrower shall answer to the lender for the fulfilment of the contractual obligations. Article 184. Under a loan contract with security money the lender may not return the security money until the borrowed article is returned. Article 185. A state institute, enterprise or organization shall consign sales, purchases or other property transactions to other institutes or citizens in accordance with a consignment contract. A consignment contract shall be concluded and implemented in such a way as to enlist all latent economic reserves and potentials with a small outlay of labour and funds. Article 186. Under a consignment contract the consignee is under an obligation to carry out the property transactions consigned by the consignor at the expense of the consignor, and the consignor is under an obligation to pay an appropriate fee after delivery. A consignment contract shall be concluded in writing. Article 187. The consignor shall first hand over to the other party the money or articles necessary for performing the consignment. Article 188. The consignee shall carry out the consignment in accordance with the provisions of the contract. If the consignee decides to perform an act that goes beyond the provisions of the contract, he or she shall obtain the consignor's consent. Article 189. A third party that has a claim on the consignee independent of the consignment contract shall not meet his or her claim with money or articles designed for the performance of the consignment or to be handed over to the consignor. Article 190. The consignee shall hand over to the consignor everything gained by the act, even if not requested by the consignor. Article 191. The consignor shall receive delivery from the consignee promptly and pay the appropriate fee and all expenses. Article 192. A contract for sale and purchase, a service contract, a storage contract, a loan contract and a consignment contract, as provided for in this law, are applicable to property transactions between state institutes, enterprises and organizations. Article 193. A citizen may travel by such means of transport as a train, car, boat or aeroplane in accordance with a contract for passenger transport. A contract for passenger transport shall be concluded and implemented so as to ensure safety and convenience in travel. Article 194. Under a contract for passenger transport the passenger is under an obligation to pay the appropriate fee to the transport services and the transport services are under an obligation to carry the passenger to his or her destination. A contract for passenger transport shall be concluded when the transport services approve the use of the relevant means of transport by issuing a ticket. Article 195. The transport services shall provide passengers with medical and restaurant services during their journey and other conveniences and facilities necessary while travelling. Article 196. If the transport services fail to carry passengers to their destination, they shall ensure that some other means of transport is employed. Article 197. If a passenger wants to redeem his or her ticket within a stipulated period, or when it becomes impossible to carry him or her, the transport services shall repay the full price of the ticket or part of it, or prolong the period of use of the ticket. Article 198. A passenger may travel in the appropriate vehicle, taking with him or her a pre school child and the permitted load. Article 199. The passenger shall take good care of the means of transport, facilities and fixtures and observe the prescribed travel regulations. When this obligation is not fulfilled the transport services may request the passenger to pay damages or leave the vehicle. Article 200. A citizen may save money in a savings deposit office in accordance with a savings contract. A savings contract shall be concluded and implemented so as to make effective use of idle money for economic construction and the improvement of the people's standard of living. Article 201. After a citizen deposits money in a savings deposit office in accordance with a savings contract, the savings deposit office is under an obligation to return the money on the request of the depositor. A savings contract is concluded when the savings deposit office hands over the savings certificate to the depositor after receiving the money. Article 202. A depositor may choose the kind and amount of his or her savings, in accordance with a savings contract. On the request of the depositor the savings deposit office shall convert the deposit into another type of savings or transfer them to another savings deposit office. Article 203. Upon the request of a citizen the savings deposit office shall receive or hand out money on deposit at any time. A savings deposit office shall answer for cases where it commits an error in handing out money, having failed to identify the receiver. Article 204. The savings deposit office shall maintain secrecy concerning savings and not reveal details about savings to the public. Article 205. A citizen may take out a policy on his or her life, health or property under an insurance contract. An insurance contract shall be concluded and implemented to protect people from harm due to unexpected disaster and to make use of idle money. Article 206. The insured is under an obligation to pay the due insurance premium to the insurance office, and the insurance office is under an obligation to pay insurance or compensation to the insured on the occurrence of an accident against which he or she is insured. An insurance contract shall be concluded when the insurance office hands over an insurance certificate to the insured. Article 207. In cases where the insured or a third party interested in receiving insurance or compensation intentionally causes the accident, insurance or compensation shall not be paid. Article 208. An insurance office which has handed out compensation for an accident attributable to a third party may request the third party to pay compensation. In cases where an accident was caused by a third party, the insured shall give notice of the result of the accident. When this obligation is not fulfilled he or she may receive reduced compensation or none at all. Article 209. A citizen who has concluded a contract for life, child, accident or other insurance shall pay a premium regularly during the stipulated period. If the insured fails to pay the premium within the stipulated period the insurance becomes invalid and shall only become effective again after the premium is paid. Article 210. If the insured dies or loses the ability to work the insurance office shall hand over to him or her the appropriate amount of insurance. When the insured period for life or child insurance expires and the insured has paid the full amount of the premium, he or she shall receive full insurance. Article 211. A citizen who has his or her property insured shall pay the premium within the stipulated period. If the period of the contract expires without accident the premiums paid shall become income for the insurance office. Article 212. On the occurrence of an accident the citizen who has his or her property insured shall immediately inform the insurance office of this and take steps to reduce the damage. Otherwise he or she may receive reduced amount of compensation, or none at all. Article 213. A citizen shall entrust property transactions and other acts with legal significance to other persons under a mandate so long as there are no other legal considerations. Article 214. Under a mandate the mandatary is under an obligation to perform the mandated act in the name of the mandator and at his expense, and the mandator is under an obligation to accept the result of the act performed by the mandatary. A mandate shall be concluded free of charge. Article 215. Acts requiring the direct expression of the will of the person concerned, such as the adoption of a child or a will, shall not be mandated. Article 216. The mandatary shall perform the act within the competency of the mandate. He or she may perform an act beyond its competency if it is inevitable for the satisfactory performance of the mandated act. Article 217. A mandatary shall be answerable for any damage he or she causes while performing the mandated act. But, the mandator shall be answerable for any loss which is not attributable to either of the parties concerned. Article 218. On the mandator's request the mandatary shall inform him or her of how the mandated act is progressing. Article 219. The mandator shall promptly accept the result of the act the mandatary has performed in accordance with the mandate and defray the expenses involved. The mandator shall pay compensation for any loss he or she has caused the mandatary in performing the mandated act. Article 220. The parties concerned in the mandate may cancel the mandate at any time. The party who cancels the mandate shall pay compensation for any loss caused to the other party due to the cancellation. Article 221. Money or articles may be lent between citizens in accordance with a loan contract. A loan contract shall be concluded without charge. A contract involving the paying of interest or something similar to interest shall not be concluded. Article 222. When subject to a loan contract the lender lends money or an article to the borrower, the borrower is under an obligation to return money of the same amount or article of the same kind and in the same quantity to the lender. A loan contract is concluded when the lender hands over money or an article to the borrower. Article 223. When a loan contract of a stipulated period is concluded, the lender may request the borrower to return the borrowed money or article at the expiration of the period, while the borrower may return it before the expiration of the period. Article 224. The borrowed money or article shall be returned within the set period. When the proper article is not available, an article of another type may be returned. Article 225. A bank may lend money to a state institute, enterprise or organization in accordance with a bank loan contract. A bank loan contract shall be concluded and implemented in such a way as to tighten financial discipline, make rational use of funds and promote money circulation. Article 226. Under a bank loan contract a bank is under, an obligation to hand over funds to the borrowing institute, enterprise or organization and the borrower is under an obligation to return the capital plus interest to the bank after the use of the funds. A bank loan contract is concluded when the bank grants the request of the borrower and hands over the loan. Article 227. A bank loan contract shall be concluded when the source of the repayment of the loan is guaranteed. The borrower shall guarantee in writing to the bank his or her ability to repay the loan. Article 228. The borrower shall use the loan properly for the designated purposes without appropriating it for other purposes, keeping it idle or squandering it. Otherwise, the bank may withdraw the loan before the end of the stipulated period or suspend future loans. Article 229. The borrower shall return the capital plus interest to the bank within the stipulated period. Otherwise, the borrower shall pay interest at a higher rate after the expiration of stipulated period. Article 230. A state institute, enterprise or organization may take part in building houses and other structures with state funds and may share the right of their use in accordance with a cooperation contract. A cooperation contract is concluded and implemented to enlist latent reserves and potentials and meet the demand for housing. Article 231. The parties concerned in a cooperation contract are under an obligation to take part in the joint undertaking, and the right of use of the results of their work shall be shared according to the extent of the participation of each in the work. A cooperation contract shall be concluded in writing and shall be subject to authorization. Article 232. The parties concerned in a cooperation contract shall agree upon the object, duration and order of the work, the method for estimating the work done, the principle of sharing the result of the work, the competency of the representative of the joint undertaking and other matters. Article 233. The parties concerned in a cooperation contract shall elect a representative of the joint undertaking in order to enforce the contract satisfactorily. The representative of a joint undertaking shall be answerable for the joint undertaking as the representative of the parties concerned in the contract. Article 234. Upon the completion of the work the representative of the joint undertaking shall offer the relevant state institute suggestions as to sharing the outcome of the work for use among the parties concerned in the contract, according to the work performed. Chapter 4. Deeds Involving Undue Profit Article 235. The party which earns undue profit without legal grounds at the expense of others shall return it to the party who suffers the loss. Article 236. A party who earns undue profit shall return the property acquired from the profit to the person who suffers the loss when he or she ]earns that the profit is undue. Article 237. Undue profit or property acquired from it shall be returned in kind as a rule and, when it is impossible to return it in kind, the price for it shall be paid. Article 238. A person who returns undue profit or property acquired from it may be paid the expenses involved in storing, managing and returning it. Article 239. When it is impossible to ascertain to whom undue profit should be returned, the person concerned shall deliver it to the appropriate state institute, Part IV. Regulations Concerning Civil Responsibility and Civil Prescription Chapter 1. Civil Responsibility Article 240. A state institute, enterprise or organization, or a citizen, shall bear civil responsibility for an infringement on the civil rights of others or for the nonfulfillment of its, his or her civil duties. Article 241. Civil responsibility shall be borne for a misdeed unless otherwise provided for in the law. In cases where the violator of a contract or law cannot prove that he or she is blameless, the blame shall be attributable to him or her. Article 242. The forms of civil responsibility are as follows: 1. Return of property, 2. Restoration to the original state, 3. Compensation for loss, 4. Payment of penalty, arrearage charge and the like, 5. Curtailment or forfeit of the right of claim. Civil responsibility may be claimed jointly when appropriate. Article 243. In cases where a minor infringes upon the civil rights of another, the civil responsibility shall rest with his or her parents or guardian. When a minor commits such an act while out of the control of his or her parents or guardian, the person with the duty to control him or her shall bear the civil responsibility. Article 244. In cases where a person who has reached the age of sixteen and has only partial rights to act under the civil law has caused a loss to another, infringing upon his or her civil rights, his or her parents or guardian shall bear civil responsibility for that which goes beyond his or her solvency. Article 245. When a member of a state institute, enterprise or organization has damaged another person's property or injured him or her in performing his or her duty, the state institute, enterprise or organization shall bear appropriate responsibility. Article 246. A state institute, enterprise or organization, or a citizen, that has illegally taken possession of another's property, including buildings, shall return it to its owner. In cases where he or she cannot return it in kind, he or she shall pay a proper price for it. Article 247. A state institute, enterprise or organization, or a citizen, that has caused damage to another's property shall restore it to its original state. In cases where it is impossible to restore it to its original state, a similar article should be handed over or a proper price should be paid. Article 248. A state institute, enterprise or organization, or a citizen, that has harmed the health or life of another shall compensate for it. Article 249. When a domestic animal has damaged the property of another or injured another person, its owner or keeper shall pay compensation. But in cases where the sufferer is culpable the responsibility for compensation shall be reduced or dissolved. Article 250. A state institute, enterprise or organization, or a citizen, that has damaged another's property in violation of the state laws concerning the protection of the territory and resources, the preservation and improvement of the natural environment and the prevention of environmental pollution shall compensate for it. Article 251. Several persons who have damaged another's property or injured another person shall jointly bear civil responsibility. Article 252. A party that has not carried out a contract based on a plan shall pay a penalty or arrearage charge and pay compensation unless otherwise provided for in the law. A party that has not carried out an unplanned contract shall compensate for the incurred damage. Article 253. In cases where the parties concerned in a contract have severally failed to carry out the concluded contract, each shall bear the appropriate civil responsibility. Article 254. The change or cancellation of a contract does not affect the right of the party concerned that has claimed damages. Article 255. In cases where a state institute, enterprise or organization has damaged the property of another or injured someone else while handling an article capable of greatly endangering the environment or performing work of such a nature, it shall bear civil responsibility even if it is not culpable. But when the victim is much to blame, the responsibility shall be dissolved. Article 256. In cases where a citizen is obliged to cause damage to the property of another or injures another person, without going beyond unavoidable measures, in justifiable self defence or in order to protect the interests of the state and society from natural disaster or illegal infringement, he or she shall not bear civil responsibility. Article 257. In cases where damage to the property of another was unavoidable due to the interests of the state and society the owner of the property which was saved due to it shall compensate the party that suffered damage. Article 258. Civil responsibility does not exclude administrative or penal responsibility for a violation of the law. Chapter 2. Civil Prescription Article 259. Trial or arbitration for the exercise of civil rights shall be instituted within the period of civil prescription. Otherwise, the exercise of civil rights through the procedure of trial and arbitration may not be secured. Civil prescription is not applicable to claims for the return of state owned property. Article 260. The period for instituting prescription in civil cases between a state institute, enterprise or organization, or a citizen, or between citizens, is one year. Article 261. The period for instituting prescription for civil cases between state institutes, enterprises or organizations is as follows: 1. Three months for claims for the payment of the price of articles or for the return of security money, for claims for damages due to the low standard of products supplied, their incompletion, failure to meet the standard of a sample, damage and spoilage, shortage in quantity and other nonobservances of the contract and for claims for the payment of a penalty and arrearage charge and those related to transport and communications services, 2. Six months for claims other than those mentioned above, 3. As for claims related to damage to imports accepted directly from abroad, and claims related to international combined transport and communications, the period of prescription shall accord with that specified in the relevant agreement. Article 262. As for credit for state institutes and enterprises under a budget maintenance system the period for instituting civil prescription for it is regarded as having expired with the passage of the budget year in which the credit was established, even if this is before the expiry of the period for instituting civil prescription. Article 263. Property for which the period for instituting civil prescription has expired becomes ownerless property. A state institute, enterprise or organization shall deliver the property for which the period for instituting civil prescription has expired to the relevant state institute, as provided for in the law. Article 264. A party that voluntarily fulfils his or her civil obligations after the expiry of the period for instituting civil prescription cannot claim the return of the property even if he or she did not know that the period of prescription has expired. Article 265. In cases where the right of claims could not be exercised due to natural disaster or other unavoidable circumstances occurring in the final three months of the period for instituting civil prescription, the calculation of the period for instituting prescription shall be suspended and it shall be prolonged for three months after the circumstances no longer exist. The suspension of civil prescription is not applicable to claims mentioned in Paragraph one of Article 261 of this law. Article 266. The calculation of the period for instituting civil prescription shall be suspended in the following cases: 1. When a creditor institutes trial or arbitration, 2. When a debtor confirms his or her debt against the claim for the payment through a bank, 3. When, with regard to a debt between a state institute, enterprise or organization, or a citizen, and between citizens, the debtor recognizes its, his or her debt. The period for instituting prescription shall be calculated again from the time when it was suspended. Article 267. In cases where a court of justice or an arbitration body accepts that the party that has a claim failed to institute a trial or arbitration due to unavoidable circumstances within the period for instituting civil prescription, the period of prescription may be prolonged. Article 268. A court of justice or an arbitration body shall apply prescription even if the party concerned does not claim the benefit of civil prescription. Article 269. The period for instituting civil prescription shall be calculated as follows: 1. From the time when the debt is due in the case of a debt for which the term of clearance is indicated, 2. From the time of the incurrence of the debt for which the term of clearance is not specified, 3. From the time when an accident protocol is drawn up or is to be drawn up in the case of claims for damages due to the low standard of products supplied between state institutes, enterprises or organizations, their incompletion, the failure to match the quality of a sample, damage and spoilage, shortage in quantity and other nonobservances of the contract, 4. From the time when the right of claim can be exercised in the case of other claims. Article 270. The period for instituting civil prescription shall be fixed by the day, by the month or by the year and shall be calculated from the day after he necessity of its calculation arises. Article 271. The period for instituting civil prescription expires the day after the day of the occurrence for which the necessity to reckon the period for instituting prescription arises comes round following the term for instituting prescription. Should the corresponding day not exist in the relevant month, the period of prescription shall expire with the passage of the last day of the relevant month. Should the last day of the period for instituting prescription fall on a Sunday, a holiday or a rest day set by the state, the following working day shall become the final day of the period for instituting prescription. |
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