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Civil Code of Japan

Part I General Provisions
Chapter 1 Common Provisions


§1 (Fundamental Principles)
(1) Private rights must conform to the public welfare.
(2) The exercise of rights and performance of duties must be done in good faith.
(3) No abuse of rights is permitted.

§2 (Standard for Construction)
This Code must be construed in accordance with honoring the dignity of individuals and the essential equality of both sexes.

Chapter 2 Person
Section I Capacity to Hold Rights

§3 (Capacity to Hold Rights)
(1) The enjoyment of private rights shall commence at birth.
(2) Unless otherwise provided by applicable laws, regulations or treaties, foreign nationals shall enjoy private rights.

Section II Capacity to Act

§4 (Age of Majority)
The age of majority is reached when a person has reached the age of 20.

§5 (Juristic Act of Minors)
(1) A minor must obtain the consent of his statutory agent to perform any juristic act; provided, however, that, this shall not apply to an act merely intended to acquire a right or to be relieved of a duty.
(2) A juristic act in contravention of the provision of Para 1 may be rescinded.
(3) Notwithstanding the provision of Para 1, in cases the statutory agent permits the disposition of property by specifying the purpose thereof, a minor may freely dispose of the same to the extent of such purpose.
The same shall apply in cases his statutory agent permits the disposition of the property without specifying any purpose.

§6 (Permission for Minors to Carry on Business)
(1) A minor who is permitted to carry on one or more kinds of business shall have the same capacity to act as a person of the age of majority as far as such business is concerned.
(2) In the case set forth in Para 1, if the minor may be unable to perform the relevant business for any reason, his statutory agent may revoke or limit permission in accordance with the provisions of Part IV.

§7 (Ruling for Commencement of Guardianship)
With respect to any person who constantly lacks the capacity to discern right and wrong due to mental disability, the family court may order the commencement of guardianship at the request of the person in question, his spouse, any relative within the 4th degree of kinship, (the supervisor of) the guardian of a minor, (the supervisor of) the curator, (the supervisor of) the assistant, or a public prosecutor.

§8 (Adult Ward and Guardian of Adult)
A person who has become subject to the ruling of commencement of guardianship shall be an adult ward, and a guardian of an adult shall be appointed for him.

§9 (Juristic Act of an Adult Ward under Guardianship)
A juristic act performed by an adult ward may be rescinded; provided, however, that,
this shall not apply to any act relating to daily life, such as the purchase of daily household items.

§10 (Rescission of Ruling for Commencement of Guardianship)
When the cause set forth in §7 ceases to exist, the family court must rescind the ruling of the commencement of guardianship at the request of the person in question, his spouse, any relative within the 4th degree of kinship, the guardian (of a minor and of an adult), the supervisor of the guardian (of a minor and of an adult), or a public prosecutor.

§11 (Ruling of Commencement of Curatorship)
With respect to any person who whose capacity is extremely insufficient to appreciate right or wrong due to any mental disability, the family court may order the commencement of curatorship upon a request by the person in question, his spouse, any relative within the 4th degree of kinship, (the supervisor of) the guardian, (the supervisor of) the assistant, or a public prosecutor; provided however, that, this shall not apply to any person in respect of whom a cause set forth in §7 exists.

§12 (Person under Curatorship and his Curator)
A person who has become subject to the ruling of commencement of curatorship shall be the person under curatorship, and a curator shall be appointed for him.

§13 (Acts Requiring Consent of Curator)
(1) A person under curatorship must obtain the consent of his curator if he intends to perform any of the following acts; provided, however, that, this shall not apply to the acts provided for in proviso of §9:
(i) receive or use any principal;
(ii) borrow any money or guarantee any obligation;
(iii) perform any act with the purpose of obtaining or relinquishing any right regarding real estate or other valuable property;
(iv) take any procedural action;
(v) make a gift, make any settlement, or agree to arbitrate (agreement to arbitrate as provided in §2(1) of the Arbitration Act);
(vi) accept or renounce any inheritance, or partition of any estate;
(vii) refuse an offer of a gift, renounce any bequest, accept the offer of gift with burden, or accept any bequest with burden;
(viii) effect any new construction, renovation, expansion, or major repairs; or
(ix) make any lease agreement with a term which exceeds the period set forth in §602.
(2) At the request of the person provided in the main clause of §11, or any curator or any supervisor of the curator, the family court may make a ruling that the person under curatorship must obtain the consent of his curator even in cases he intends to perform any act other than those set forth in each item of Para 1; provided, however, that this shall not apply to the acts provided for in the proviso to §9.
(3) With respect to any act which requires the consent of the curator, if the curator does not give consent in cases where the interest of the person under curatorship is unlikely to be prejudiced, the family court may, at the request of the person under curatorship, give permission in lieu of the consent of the curator.
(4) An act which requires the consent of the curator may be rescinded if it was performed without such consent or any permission in lieu thereof.

§14 (Rescission of Ruling of Commencement of Curatorship)
(1) When the cause provided in the main clause of §11 ceases to exist, the family court must rescind the order of the commencement of curatorship at the request of the person in question, his spouse, any relative within the 4th degree of kinship, (the supervisor of) the guardian of a minor, (the supervisor of) the curator, or a public prosecutor.
(2) At the request of the person prescribed in Para 1, the family court may rescind, in whole or in part, the ruling under §13 (2).

§15 (Ruling of Commencement of Assistance)
(1) With respect to any person who has insufficient capacity to appreciate right or wrong due to any mental disability, the family court may rule the commencement of assistance upon a request by the person in question, his spouse, any relative within the 4th degree of kinship, (the supervisor of) the guardian, (the supervisor of) the curator, or a public prosecutor; provided, however, that, this shall not apply to any person who has the cause set forth in §7 or the main clause of §11.
(2) The ruling of commencement of assistance at the request of any person other than the person in question shall require the consent of the person in question.
(3) The ruling of commencement of assistance must be made concurrent with the ruling under §17 (1) or the ruling under §876-9 (1).

§16 (Person under Assistance and Assistant)
A person who has become subject to the ruling of commencement of assistance shall be a person under assistance, and an assistant shall be appointed for him.

§17 (Ruling Requiring Person to Obtain Consent of Assistant)
(1) At the request of the person provided in the main clause of §15 (1), or any assistant or supervisor of the assistant, the family court may make the ruling that the person under assistance must obtain the consent of his assistant if he intends to perform any particular juristic act; provided, however, that the act for which such consent must be obtained pursuant to such ruling shall be limited to the acts provided in §13 (1).
(2) The ruling set forth in Para 1 at the request of any person other than the person in question shall require the consent of the person in question.
(3) With respect to any act which requires the consent of the assistant, if the assistant does not give consent in cases where the interest of the person under assistance is unlikely to be prejudiced, the family court may, at the request of the person under assistance, give permission which is in lieu of the consent of the assistant.
(4) An act which requires the consent of the assistant may be rescinded if it was performed without such consent or any permission in lieu thereof.

§18 (Rescission of Ruling of Commencement of Assistance)
(1) When the cause provided in the main clause of §15 (1) ceases to exist, the family court must rescind the ruling of commencement of assistance at the request of the person in question, his spouse, any relative within the 4th degree of kinship, (the supervisor of) the guardian of a minor, (the supervisor of) the assistant, or a public prosecutor.
(2) At the request of the person prescribed in Para 1, the family court may rescind, in whole or in part, the ruling under §17 (1).
(3) In cases the ruling under §17 (1) and the order under §876-9 (1) are to be rescinded in their entirety,  the family court must rescind the ruling of commencement of assistance.

§19 (Relationship between Rulings)
(1) In cases any ruling for commencement of guardianship is to be made, and the person in question is a person under curatorship or the person under assistance, the family court must rescind the ruling of commencement of curatorship or commencement of assistance pertaining to such person in question.
(2) The provisions of Para 1 shall apply m/mutandis in cases where the person in question, upon ruling of commencement of curatorship, is an adult ward or a person under assistance, or in cases where the person in question is, at the time of the ruling for commencement of assistance, an adult ward or a person under curatorship.

§20 (Right of Demand by Person who is Counterparty to Person with Limited Capacity)
(1) The person who is the counterparty to a person with limited capacity (hereinafter referring to any minor, an adult ward, a person under curatorship, and a person under assistance who has become subject to the ruling under §17 (1) ) may, after such person with limited capacity has become a person with capacity (hereinafter referring to a person free of any limitation on capacity to act), issue to such person a notice which demands, by establishing a certain period which is one month or more, that he should give a definite answer on whether or not such person will ratify such act which may be rescinded within such period.
In such case, if such person fails to send any definite answer within such period, he is deemed to have ratified such act.
(2) The 2nd sentence of Para 1 shall likewise apply in cases where, while such person with limited capacity has not yet become a person with capacity, the person who is the counterparty to the person with limited capacity issues to the statutory agent, curator, or assistant of such person a notice prescribed in Para 1 with respect to any act which is under the authority of any such officer, and the statutory agent, curator or assistant fails to issue any definite answer within the period referred to in such paragraph.
(3) With respect to any act which requires any special formalities, if no notice to the effect that the perfection of such formalities has been completed is issued within the period set forth in Para 1 & 2,      it is deemed that such act has been rescinded.
(4) The person who is the counterparty to a person with limited capacity may issue a notice to any person under curatorship, or to any person under assistance who has been made subject to the ruling under §17 (1) which demands that he should obtain the ratification of his curator or assistant, as the case may be, within the period set forth in Para 1 above. In such case, if the person under curatorship or person under assistance fails to issue, within the applicable period, a notice to the effect that such ratification has been obtained, it is deemed that such act has been rescinded.

§21 (Fraudulent Means Committed by Person with Limited Capacity)
If a person with limited capacity manipulates any fraudulent means to induce others to believe that he is a person with capacity, his act may not be rescinded.

Section III Domicile

§22 (Domicile)
The principal place wherein a person lives shall be his domicile.

§23 (Residence)
(1) I f the domicile of a person is unknown, his residence is deemed to be his domicile.
(2) If a person does not have the domicile in Japan, his residence is deemed to be his domicile, whether he is a Japanese or a foreign national; provided, however, that, this shall not apply where the law of domicile controls in accordance with the applicable provision of laws which provide the governing law.

§24 (Temporary Domicile)
If any temporary domicile is selected for any act, such temporary domicile is deemed to be the domicile as far as such act is concerned.

Section IV Management of Absentee Property and Adjudication of Disappearance

§25 (Administration of Absentee Property)
(1) In cases any person who has left his domicile or residence ("absentee") did not appoint an "administrator" of his property, the family court may, at the request of any interested person or a public prosecutor, issue an order for necessary actions for the administration of such property. The same shall apply in cases the authority of the administrator ceases to exist during the absence of the absentee.
(2) If, after the issuance of the order pursuant to the provision of Para 1, the absentee appoints an administrator, the family court must rescind the order at the request of his administrator, any interested person, or a public prosecutor.

§26 (Replacement of Administrator)
In cases an absentee appoints an administrator, and if it is not clear whether such absentee is dead or alive, the family court may replace such administrator with another at the request of any interested person or a public prosecutor.

§27 (Duties of Administrator)
(1) An administrator who is appointed by the family court pursuant to the provision of §25 & §26 must prepare a list of the property he is to administer.
In such case, the expenses incurred shall be disbursed from the property of the absentee.
(2) In cases it is not clear whether an absentee is dead or alive, if so requested by any interested person or a public prosecutor, the family court may also order the administrator appointed by the absentee to prepare the list set forth in Para 1.
(3) In addition to provisions of Para 1 & 2, the family court may issue an order to the administrator to effect any action which the court may find to be necessary for the preservation of the property of the absentee.

§28 (Authority of Administrator) 
If an administrator needs to perform any act beyond the authority set forth in §103, he may perform such act by obtaining the permission of the family court.
The same shall likewise apply if the administrator needs to perform any act beyond the authority stipulated by the absentee in cases it is not clear whether the absentee is dead or alive.

§29 (Provision of Security by and Remuneration for Administrator)
(1) The family court may require an administrator to provide reasonable security with respect to the administration and return of the property.
(2) The family court may grant reasonable remuneration to the administrator from the property of the absentee with due regard to the relationship between the administrator and absentee and other circumstances.

§30 (Adjudication of Disappearance)
(1) If it is not clear whether the absentee is dead or alive for 7 years, the family court may make the adjudication of disappearance at the request of any interested person.
(2) The procedure of Para 1 shall likewise apply with respect to any person who was engaged in any war zone, was aboard any vessel which later sank, or was otherwise exposed to any danger which could be the cause of death, if it is not clear whether such person is dead or alive for one year after the end of the war, after the sinking of the vessel, or after the termination of such other danger, as the case may be.

§31(Effect of Adjudication of Disappearance)
Any person who has become the subject of the adjudication of disappearance pursuant to the provision of
§30 (1) is deemed to have died upon elapse of the period set forth in such paragraph, and a person who is the subject of the adjudication of disappearance pursuant to the provision of §30 (2) is deemed to have died upon the termination of such danger.

§32 (Rescission of Adjudication of Disappearance)
(1) If there is any proof that an absentee is alive, or that he died at a time differing from that provided in §31, the family court must, at the request of the absentee himself or any interested person, rescind the adjudication of disappearance. In such case, the rescission shall not affect the validity of any act which was performed without knowledge after the adjudication of disappearance but before the rescission thereof.
(2) Any person who acquired any property by the adjudication of disappearance shall lose his right upon rescission thereof; provided, however, that such person shall have the obligation to return such property only to the extent he is actually enriched.

Section V Presumption of Simultaneous Death

§32-2
 (Presumption of Simultaneous Death)
In cases more than one person dies, if it is not clear whether one of the deceased survived the other(s),
it is presumed that they all died at the same time.

Chapter IV Things

§85
 (Definition)
The term "Things" as used in this Code shall mean tangible thing.

§86 (Real Estate and Movables)
(1) Land and any fixtures thereto are regarded as real estate.
(2) Any Thing which is not real estate is regarded as movable.
(3) A bearer certificate of claims is deemed to be movable.

§87 (Principal and Appurtenance)
(1) If the owner of a Thing attaches to it any other Thing he owns to make other Thing available for the permanent use of the former Thing, such other Thing which was attached is regarded as appurtenance.
(2) Appurtenance shall be subject to the disposition of the principal.

§88 (Natural Fruits and Legal Fruits)
(1) Products which are obtained from the intended use of a Thing are regarded as Natural Fruits.
(2) Money or other Thing to be obtained in exchange for the use of any Thing are regarded as Legal Fruits.

§89 (Vesting of Fruits)
(1) Natural Fruits shall vest in the person who has the right to obtain them when they are severed from the origin.
(2) Legal Fruits shall be acquired in proportion to the number of days depending on the duration of the right to obtain them.

Chapter V Juristic Acts
Section I General Provisions

§90
 (Public Policy or Public Order and Morals)
A juristic act with any purpose which is against public policy is void.

§91 (Manifestation of Intention Inconsistent with Default Rules)
If any party to a juristic act manifests any intention which is inconsistent with a provision in any laws and regulations not related to public policy, such intention shall prevail.

§92 (Custom Inconsistent with Default Rules)
In cases there is any custom which is inconsistent with a provision in any law or regulation not related to public policy, if it is found that any party to a juristic act has the intention to abide by such custom, such custom shall prevail.

Section II Manifestation of Intention

§93 (Concealment of True Intention)
The validity of the manifestation of intention shall not be impaired even if the person who makes the manifestation knows that it does not reflect his true intention; provided, however, that, in cases the other party knew, or could have known, the true intention of the person who makes the manifestation, such manifestation of intention shall be void.

§94 (Fictitious Manifestation of Intention)
(1) Any fictitious manifestation of intention made in collusion with another party(ies) shall be void.
(2) The nullity of the manifestation of intention pursuant to the provision of Para 1 may not be asserted against a third party without knowledge.

§95 (Mistake)
Manifestation of intention has no effect when there is a mistake in any element of the juristic act in question; provided, however, that the person who made the manifestation of intention may not assert such nullity by himself if he was grossly negligent.

§96 (Fraud or Duress)
(1) Manifestation of intention which is induced by any fraud or duress may be rescinded.
(2) In cases any third party commits any fraud inducing any person to make a manifestation of intention to the other party, such manifestation of intention may be rescinded only if the other party knew such fact.
(3) The rescission of the manifestation of intention induced by the fraud pursuant to the provision of Para
1 & 2 may not be asserted against a third party without knowledge.

§97 (Manifestation of Intention to Person at a Distance)
(1) Manifestation of intention to a person at a distance shall become effective at the time of the arrival of the notice to the other party.
(2) The validity of manifestation of intention to a person at a distance shall not be impaired even if the person who made the manifestation dies or loses his capacity to act after the dispatch of the notice.

§98 (Manifestation of Intention by Public Notice)
(1) Manifestation of intention may be made by means of public notice if the person who makes the mani- festation is unable to identify the other party or is unable to identify the whereabouts of the other party.
(2) The public notice set forth in Para 1 shall be effected by posting the notice at the posting area of the relevant court and publishing the fact of such posting in the Official Gazette at least once in accordance with the applicable provisions of the Code of Civil Procedure regarding the service of the public notice; provided, however, that the court may, if it finds it suitable, order to post the notice at a posting area of the city/ward/ town/village office or any facility equivalent to the above in lieu of the publication in the Official Gazette.
(3) Manifestation of intention by means of public notice is deemed to have arrived at the other party upon elapse of 2 weeks after the day when the notice was last published in the Official Gazette, or the day on which any posting in lieu of such publication started, whichever comes first; provided, however, that the service of such notice shall not take effect if the person who makes the manifestation is negligent in not identifying the other party or not identifying the whereabouts of the other party.
(4) The procedure regarding the public notice shall be subject to the jurisdiction of the summary court which has jurisdiction over the area where the person who makes the manifestation of intention has his domicile in cases he is unable to identify the other party, or over the area of the last known domicile of the other party in cases the whereabouts of the other party cannot be identified.
(5) The court must require the person who makes the manifestation of intention to prepay the expenses regarding the public notice.

§98-2 (Capacity to Receive the Manifestation of Intention)
In cases the other party to the manifestation of intention is a minor or an adult ward at the time when the other party receives such manifestation of intention, the person who made the manifestation of intention may not assert his manifestation of intention against such other party; provided, however, that, this shall not apply after the statutory agent of such other party has acquired the knowledge of such manifestation of intention.

Section III Agency

§99 (Requirements and Effect of Act of Agent)
(1) A manifestation of intention made by an agent representing that the same is made on behalf of the principal within the scope of the agent's authority binds the principal.
(2) The provision of Para 1 shall apply m/mutandis to any manifestation of intention made by a third party to an agent.

§100 (Manifestation of Intention made with no Indication that it is made on behalf of the Principal)
Any manifestation of intention made by an agent with no indication that it is made on behalf of the principal is deemed to have been made for the agent's own behalf; provided, however, that, in cases the other party knew, or could have known, that the agent is acting on behalf of the principal, the provision of §99 (1) shall apply mutatis mutandis.

§101  (Defect in Act of Agent)
(1) In cases the validity of a manifestation of intention should be affected by any absence of intention, any fraud, any duress, or any negligence in knowing or not knowing any particular circumstance, whether or not such fact existed shall be determined with reference to the agent.
(2) In cases an agent is entrusted to perform any specific juristic act, if the agent performs such act in accordance with the instructions of the principal, the principal may not assert that the agent did not know a particular circumstance which the principal knew. The same shall apply to any circumstance which the principal did not know due to his negligence.

§102 (Agent's Capacity to Act)
An agent need not to be a person with the capacity to act.

§103 (Authority of Agent with no Specified Authority)
An agent who has no specified authority shall have the authority to do the following acts only:
(i) acts of preservation; and
(ii) acts which have the purpose of using or improving any Thing or right which is the subject of the agency to the extent such act does not change the nature of such property or right.

§104 (Appointment of Sub-agent by Agent)
A privately appointed agent may not appoint its sub-agent unless the authorization of the principal is obtained or there is an unavoidable reason to do so.

§105 (Responsibility of Agent Who Appointed Sub-agent)
(1) If an agent appoints a sub-agent pursuant to the provisions of §104, it shall be responsible vis-a-vis the principal for the appointment and supervision of such sub-agent.
(2) A privately appointed agent shall not assume the responsibility set forth in Para 1 if it appointed the sub-agent in accordance with the nomination by the principal; provided, however, that, this shall not apply to the cases where the agent knows that the sub-agent is unsuitable or untrustworthy, and fails to notify the principal thereof or to dismiss the sub-agent.

§106 (Appointment of Sub-agent by Statutory Agent)
A statutory agent may appoint a sub-agent on its own responsibility. In such case, if there is any
unavoidable reason, it shall assume only the responsibility set forth in §105 (1).

§107 (Authority of Sub-agent)
(1) A sub-agent shall represent the principal with respect to any act within the scope of its authority.
(2) A sub-agent shall have the same rights and obligations as those of the agent vis-a-vis the principal and third parties.

§108 (Self-Contract and Representation of both Parties)
An agent may not be the agent of the other party or the agent of both parties in the same juristic act; provided, however, that, this shall not apply where the act constitutes the performance of any obligation, or the act is authorized by the principal in advance.

§109 (Apparent Authority due to Manifestation of Grant of Authority of Agency)
A person who manifested to a third party that he granted certain authority of agency to other person(s) shall be liable for any act performed by such other person(s) with third parties within the scope of such authority, unless such third parties knew, or were negligent in not knowing, that such other person(s) were not granted the authority of agency.

§110 (Apparent Authority of Act Exceeding Authority)
The provision of the main clause of §110 shall apply mutatis mutandis to the case where an agent performs any act exceeding its authority and a third party has reasonable grounds for believing that the agent has the authority.

§111 (Ground of Termination of Authority of Agency)
(1) The authority of agency shall be terminated upon:
(i) death of the principal; and
(ii) death of the agent, or ruling of the commencement of bankruptcy procedures or ruling for commence- ment of guardianship against the agent.
(2) The authority of a privately appointed agent by mandate shall be terminated, other than on the grounds listed in the respective items of Para 1, upon the termination of the contract appointing him.

§112 (Apparent Authority After Termination of Authority of Agency)
Termination of the authority of agency may not be asserted vis-a-vis a third party without knowledge; provided, however, that, this shall not apply to the cases where such third party was negligent in not knowing such fact.

§113 (Unauthorized Agency)
(1) Any contract concluded by a person who holds himself out as an agent of others without authority of agency shall be void vis-a-vis the principal unless ratified by the principal.
(2) Any ratification or refusal to ratify may not be asserted vis-a-vis the counterparty unless it is made to such counterparty; provided, however, that, this shall not apply to the cases where the counterparty has come to know such fact.

§114 (Right of Notice of Counterparty of Unauthorized Agency)
In the case referred to in §113, the counterparty may require the principal, by fixing a reasonable period of time, to make a definite answer on whether or not he will ratify within such period of time. In such case, if the principal fails to make any definite answer within such period, he is deemed to have refused to ratify.

§115 (Right to Rescind of Counterparty of Unauthorized Agency)
A contract concluded by a person without any authority of agency may be rescinded by the counterparty until the principal ratifies it; provided, however, that, this shall not apply to the cases where the counterparty knew at the time of the conclusion of the contract that the agent had no authority of agency.

§116 (Ratification of Act of Unauthorized Agency)
Ratification shall be effective retroactively as of the time of the conclusion of the contract unless other intention is manifested; provided, however, that no right of a third party may be prejudiced.

§117 (Liability of Unauthorized Agent)
(1) A person who concluded a contract holding himself out as an agent of another person shall be liable to the counterparty for the performance of the contract or damages as chosen by such counterparty if he is unable to prove his authority of agency nor obtain the ratification of the principal.
(2) The provisions of Para 1 shall not apply if the counterparty knew, or was negligent in not knowing, that the person who concluded a contract holding himself out as an agent of another person had no authority of agency, or if the person who concluded a contract holding himself out as an agent of another person had no capacity to act.

§118 (Unauthorized Agency in Unilateral Juristic Act)
With respect to a unilateral juristic act, the provisions of §113 to §117 inclusive shall apply mutatis mutandis only in cases the counterparty, at the time of such act, agrees that the person who holds himself as an agent will act without authority of agency, or did not contest the authority of agency of such person.
The above provisions shall also apply mutatis mutandis in cases any person performs a unilateral juristic act vis-a-vis any person without authority of agency with the consent of such person.

Section IV Nullity and Rescission of Acts

§119 (Ratification of Acts which are Void)
An act which is void does not become effective by ratification; provided, however, that, if a party ratifies any act knowing that such act is void, it is deemed that he acted de novo.

§120 (Persons with the Right to Rescind Act)
(1) An act which may be rescinded on the grounds of the limited capacity to act of the person who performed such act may be rescinded only by the person whose capacity to act is limited, or its agent, successor, or a person who has the authority to give consent.
(2) An act which may be rescinded on the grounds of fraud or duress may be rescinded only by the person who made such defective manifestation of intention, or his agent or successor.

§121 (Effect of Rescission)
An act which is rescinded is deemed void ab initio; provided, however, that a person with limited capacity to act shall have the obligation to reimburse to the extent that he is actually enriched as a result of such act.

§122 (Ratification of Rescindable Acts)
A rescindable act may not be rescinded from the time when the person set forth in §120 ratifies it; provided, however, that ratification may not prejudice the rights of third parties.

§123 (Method of Rescission and Ratification)
In cases the counterparty to a rescindable act is identified, the rescission or ratification of such act shall be made by the manifestation of intention to such counterparty.

§124 (Requirements for Ratification)
(1) A ratification shall not be effective unless it is made after the circumstance(s) that made the act rescindable ceases to exist.
(2) If an adult ward recognizes his act after he has become a person with capacity to act, he may ratify such act only after such recognition.
(3) The provisions of Para 1 & 2 shall not apply in cases the ratification is made by the statutory agent, or the curator or assistant of the person with limited capacity to act.

§125 (Statutory Ratification)
If, after the time when it has become possible to ratify an act pursuant to the provisions of §124, any of the following events occurs with respect to an act which is otherwise rescindable, it is deemed that ratification has been made, unless any objection is reserved:
(i) performance of such act, in whole or in part;
(ii) demand for the performance of such act;
(iii) novation of such act;
(iv) provision of security;
(v) assignment, in whole or in part, of any right acquired as a result of such rescindable act; or
(vi) compulsory execution of such act.

§126 (Limitation on Period of Right to Rescind)
The right to rescind an act shall be extinguished by the operation of the prescription if it is not exercised within 5 years from the time when it becomes possible to ratify the act.
The same shall apply when 20 years has elapsed from the time of the act.

Section V Conditions and Time Limit

§127 (Effect of Fulfillment of Conditions)
(1) A juristic act which is subject to a condition precedent shall become effective upon fulfillment of the condition.
(2) A juristic act which is subject to a condition subsequent shall become ineffective upon fulfillment of the condition.
(3) If the party manifests an intention to extend the effect of fulfillment of the condition retroactively to any time prior to the time of the fulfillment, such intention shall prevail.

§128 (Prohibition of Infringement of Interest of Counterparty Pending Fulfillment of Conditions)
Neither party to a juristic act which is subject to any condition may infringe the interests of the counter- party which should arise from such juristic act upon fulfillment of the condition while it is uncertain whether or not such condition has been fulfilled.

§129 (Disposition of Rights Pending Fulfillment of Conditions)
While it is uncertain whether or not a condition has been fulfilled, the rights and obligations of the party concerned may be disposed of, inherited or preserved, or any security may be provided therefor, in accordance with the usual provisions of the law.

§130 (Prevention of Fulfillment of Conditions)
In cases any party who will suffer any detriment as a result of the fulfillment of a condition intentionally prevents the fulfillment of such condition, the counterparty may deem that such condition has been fulfilled.

§131 (Fulfilled Conditions)
(1) In cases a certain condition is already fulfilled at the time of the performance of the applicable juristic act, if such condition is a condition precedent, such juristic act shall be unconditional, and if such condition is a condition subsequent, such juristic act shall be void.
(2) In cases it is already established conclusively at the time of the performance of the applicable juristic act that a certain condition will not be fulfilled, if such condition is a condition precedent, such juristic act shall be void, and if such condition is a condition subsequent, such juristic act shall be unconditional.
(3) In the cases referred to in Para 1 & 2, the provisions of §128 & §129 shall apply mutatis mutandis while the relevant parties are not aware that the relevant condition has been, or has not been, fulfilled, as the case may be.

§132 (Unlawful Conditions)
Juristic act which is subject to an unlawful condition shall be void.
The same shall apply to any act which is subject to the condition that an unlawful act not be performed.

§133 (Impossible Conditions)
(1) Juristic act subject to a condition precedent which is impossible shall be void.
(2) Juristic act subject to a condition subsequent which is impossible shall be unconditional.

§134  (Potestative Conditions)
A juristic act which is subject to a condition precedent shall be void if the condition is dependent upon the will of the obligor.

§135 (Effect of Arrival of Assigned Time)
(1) If time of commencement of validity is assigned to a juristic act, the performance of such juristic act may not be demanded before the arrival of such time.
(2) If time of expiration of validity is assigned to a juristic act, the validity of such juristic act shall expire upon the arrival of such time.

§136 (Benefit of Time and Its Waiver)
(1) It is presumed that a time specified is provided for the benefit of the obligor.
(2) The benefit of time may be waived; provided, however, that such waiver may not prejudice the interest of the counterparty.

§137 (Forfeiture of Benefit of Time)
The obligor may not assert the benefit of time if:
(i) the obligor has become subject to the ruling of the commencement of bankruptcy procedures;
(ii) the obligor has destroyed, damaged, or diminished the security; or
(iii) the obligor fails to provide security when it has the obligation to do so.

Chapter VI Calculation of Period

§138 (Common Rules on Calculation of Period)
The method of calculation of a period shall be subject to the provision of this Chapter unless otherwise provided in the laws and regulations or any judicial order, or unless the relevant juristic act otherwise specifies.

§139 (Commencement of Period)
When a period is defined by the hour, the period commences immediately at the specified time.

§140 (Commencement of Period)
When a period is defined by the day, week, month, or year, the first day of the period shall not be included for the purpose of the calculation; provided, however, that, this shall not apply to the cases where the period commences at 12 midnight.

§141 (Expiration of Period)
In the case referred to in §140, the period shall expire at the end of the last day of such period.

§142 (Expiration of Period)
If the last day of a period falls on a Sunday, a holiday as provided in the Act on National Holidays , or any other holiday, only when it is customary not to do business on such day, the period shall expire on the immediately following day.

§143 (Calculation of Period with Reference to Calendar)
(1) When a period is defined by the week, month, or year, the period shall be calculated with reference to the calendar week, month, or year.
(2) When a period does not commence at the beginning of the week, month, or year, such period shall expire in the last week, month, or year on the day immediately preceding the day which corresponds to the commencement day; provided, however, that if the period is defined by the month or year and the last month does not contain the corresponding day, the period shall expire on the last day of such month.

Chapter VII Prescription
Section I General Provisions


§144 (Effect of Prescription)
The prescription shall take effect retroactively as of the commencement day.

§145 (Invocation of Prescription)
The court may not make a judgment relying on the prescription unless the party invokes it.

§146 (Waiver of Benefits of Prescription)
The benefits of the prescription may not be waived in advance.

§147 (Ground of Interruption of Prescription)
The prescription shall be nullified upon issuance of:
(i) any claim;
(ii) any attachment, provisional seizure, or provisional disposition; or
(iii) any acknowledgment.

§148 (Persons Affected by Interruption of Prescription)
The nullification of prescription pursuant to the provision of §147 shall be effective solely among the parties with respect to whom the ground of such interruption arose, and their respective successors.

§149 (Judicial Claims)
A judicial claim shall not have the effect of interruption of the prescription in cases where the action is dismissed or withdrawn.

§150 (Demand for Payment)
A demand for payment shall not have the effect of interruption of the prescription in cases where it loses its effect because the obligee fails to file for the declaration of provisional execution within the period set forth in §392 of the Code of Civil Procedure.

§151 (Filing for Settlement and Conciliation)
The filing for settlement or the filing for conciliation under the Civil Conciliation Act or Family Affairs Adjudication Act shall not have the effect of interruption of the prescription in cases where, when the counterparty fails to appear in the court or when the settlement or conciliation is not satisfactorily concluded, the action is not brought within one month.

§152 (Participation in Bankruptcy Procedures)
Participation in a bankruptcy procedures, participation in a rehabilitation procedure, or participation in a reorganization procedures shall not have the effect of interruption of the prescription when the obligee withdraws its filing, or its filing has been dismissed.

§153 (Demand)
A demand shall not have the effect of interruption of the prescription unless a judicial claim, filing for demand of payment, filing for settlement, filing for conciliation under the Civil Conciliation Act or Family Affairs Adjudication Act, participation in bankruptcy procedures, participation in a rehabilitation procedures, participation in a reorganization procedures, attachment, provisional seizure, or provisional disposition is commenced within 6 months.

§154 (Attachment, Provisional Seizure, and Provisional Disposition)
An attachment, provisional seizure, and provisional disposition shall not have the effect of interruption of the prescription if it is avoided at the request of any rights holder, or for failure to comply with any provisions of the law.

§155 (Attachment, Provisional Seizure, and Provisional Disposition)
When an attachment, provisional seizure, or provisional disposition is not effected vis-a-vis a person who acquires any benefit of the prescription, it shall not have the effect of interruption of the prescription unless a notice is given to such person.

§156 (Acknowledgment)
An acknowledgment which has the effect of interruption of the prescription shall not require the capacity to act or authority with respect to the disposition of the rights of the counterparty.

§157 (Running of Prescription following Interruption)
(1) A prescription which is interrupted shall resume running at the time the applicable grounds for suspension cease to exist.
(2) Any prescription which is interrupted by a judicial claim shall resume running at the time of the final and binding judgment.

§158 (Minor or Adult Ward and Suspension of Prescription)
(1) If a minor or an adult ward, as the case may be, has no statutory agent during the period of 6 months preceding the expiration of period of the prescription, the prescription shall not be completed with respect to such minor or adult ward until 6 months elapse from the time when such minor or adult ward becomes a person with a capacity to act, or a statutory agent is appointed.
(2) In cases where a minor or an adult ward has any right vis-a-vis his father, mother, or guardian who manages his property, the prescription shall not be completed with respect to such right until 6 months elapse from the time when such minor or adult ward becomes a person with a capacity to act, or a succeeding statutory agent is appointed.

§159 (Suspension of Prescription of Rights Between Husband and Wife)
With respect to any right which either husband or wife has vis-a-vis the other spouse, the prescription shall not be completed until 6 months elapse from the time of the dissolution of the relevant marriage.

§160 (Suspension of Prescription Regarding Inherited Property)
With respect to any inherited property, the prescription shall not be completed until six months elapse from the time when the applicable heir is identified, the administrator is appointed, or the ruling of the commencement of bankruptcy procedures is made.

§161 (Suspension of Prescription due to Natural Disaster)
If the prescription may not be interrupted upon expiration of period of the prescription due to any natural disaster or other unavoidable contingency, the prescription shall not be completed until two weeks elapse from the time when such impediment has ceased to exist.

Section II Acquisitive Prescription

§162 (Acquisitive Prescription of Ownership)
(1) A person who possesses any property of another for 20 years peacefully and openly with an intention to own shall acquire the ownership thereof.
(2) A person who possesses any property of another for 10 years peacefully and openly with an intention to own shall acquire the ownership thereof if he was without knowledge and was not negligent when the possession started.

§163 (Acquisitive Prescription of Property Rights other than Ownership)
A person who exercises any property right other than the ownership peacefully and openly with an intention to do so on his own behalf shall acquire such right after the elapse of 20 years or 10 years consistent with the distinction provided in §162.

§164 (Interruption of Acquisitive Prescription due to Discontinuation of Possession)
The prescription pursuant to the provision of §162 shall be interrupted when the possessor discontinues the possession voluntarily, or he is deprived of his possession by others.

§165 (Interruption of Acquisitive Prescription due to Discontinuation of Possession)
The provision of §164 shall apply m/mutandis to the case under §163.

Section III Extinctive Prescription

§166 (Running of Extinctive Prescription)
(1) The extinctive prescription commences to run when it has become possible to exercise the right.
(2) The provision of Para 1 shall not preclude the commencement of acquisitive prescription for the benefit of a third party who possesses any subject matter which is a right subject to the time of commencement or a right subject to a condition precedent, at the time of commencing such possession; provided, however, that the holder of the right may demand the possessor to give his acknowledgment at any time to interrupt the prescription.

§167 (Extinctive Prescription of Claim)
(1) A claim shall be extinguished if not exercised for 10 years.
(2) Any property right other than the claim or ownership shall be extinguished if not exercised for 20 years.

§168 (Extinctive Prescription of Periodic Payments)
(1) A claim for periodic payments shall be extinguished if not exercised for 20 years after the first due date. The same shall apply if not exercised for 10 years after the last due date.
(2) The obligee of periodic payments may require its obligor at any time to issue a written acknowledgment in order to acquire the evidence of the interruption of the prescription.

§169(Short-term Extinctive Prescription of Claim for Periodic Performance)
Any claim for the delivery of money or other Thing for periodic performance of 1 year or shorter shall be extinguished if not exercised for 5 years.

§170 (Short-term Extinctive Prescription of 3 Years)
The claims listed below shall be extinguished if not exercised for 3 years; provided, however, that the prescription of the claims listed in item (ii) shall commence upon completion of the work referred to in the same item:
(i) any claim regarding a diagnosis, assistance in baby delivery, or the preparation of medicine by a doctor, delivery assistant, or pharmacist; or
(ii) any claim, regarding the construction work, of a person engaged in design, execution, or supervision of the work.

§171 (Short-term Extinctive Prescription of 3 Years)
An attorney or a legal professional corporation, or a notary public shall be relieved of their responsibility for any document received in connection with his service upon the elapse of 3 years after the termination of the relevant case with an attorney or a legal professional corporation , and after the execution of his duties with respect to a notary public.

§172 (Short-term Extinctive Prescription of 2 Years)
(1) Any claim regarding the duties of an attorney, a legal professional corporation, or a notary public shall be extinguished if not exercised for 2 years after the close of the case which was the cause of such claim.
(2) Notwithstanding the provisions of Para 1, if 5 years have elapsed after the close of any particular matter included in the case referred to in Para 1, the claim regarding such matter shall be extinguished even in the middle of the period set forth in Para 1.

§173 (Short-term Extinctive Prescription of 2 Years)
The following claims shall be extinguished if not exercised for 2 years:
(i) a claim pertaining to the price of any product or goods sold by a manufacturer, wholesale merchant, or retail merchant;
(ii) a claim regarding the work of any person whose business is to manufacture any Thing or to perform the work in his own workplace for the benefit of others upon placement of an order using his own skill; and
(iii) a claim possessed by any person who provides education in the arts and sciences, or technical skills, with respect to the price of the education, food and clothing and accommodation for students.

§174 (Short-term Extinctive Prescription of One Year)
The following claims shall be extinguished if not exercised for 1 year:
(i) a claim pertaining to the salary of an employee which is fixed by one month or any shorter period;
(ii) a claim pertaining to the remuneration of any person whose business is to provide his own labor or entertainment, or the price of any Thing supplied by such person;
(iii) a claim pertaining to freight for transportation;
(iv) a claim pertaining to room charges, food and beverage charges, admission fees, entrance fees, the price of goods consumed or monies to be reimbursed to any hotel, establishment providing food and beverages, seating hire facility, or place of amusement; and
(v) a claim pertaining to the rent for movables.

§174-2(Extinctive Prescription of Right Established in Judgment of Court)
(1) The period of prescription of any right established in a unappealable judgment shall be 10 years even if any period of prescription shorter than 10 years is provided. The same shall apply to any right which is established in a settlement in a court proceeding or conciliation, or any other action which has the effect equivalent to that of the unappealable judgment.
(2) The provision of Para 1 shall not apply to any claim which is not yet due and payable yet at the time when the judgment becomes unappealable.

PART 2 Real Rights
Chapter 1 General Provisions


§175 (Establishment of Real Rights)
No real rights can be established other than those prescribed by laws including this Code.

§176 (Creation and Transfer of Real Rights)
The creation and transfer of real rights shall take effect solely by the manifestations of intention of the relevant parties.

§177  (Requirements of Perfection of Changes in Real Rights concerning Immovable properties)
Acquisitions of, losses of and changes in real rights concerning immovable properties may not be asserted against third parties, unless the same are registered pursuant to the applicable provisions of the Real Estate Registration Act and other laws regarding registration.

§178 (Requirements of Perfection of Transfer of Real Rights concerning Movables)
The transfers of real rights concerning movables may not be asserted against third party, unless the movables are delivered.

§179 (Confusion of Rights)
(1) If ownership and other real rights with respect to the same Thing have vested in the same person, such other real rights shall be extinguished; provided, however, that, this shall not apply to cases where that Thing is, or such other real rights are, the object of the rights of a third party.
(2) If any real rights other than ownership and other rights for which those real rights are the object have vested in the same person, such other rights shall be extinguished.
In such cases, the provisions of the proviso to the preceding paragraph shall apply mutatis mutandis.
(3) The provisions of Para 1 & 2 shall not apply to possessory rights.

Chapter 2 Possessory Rights
Section 1 Acquisition of Possessory Rights


§180 (Acquisition of Possessory Rights)
Possessory rights shall be acquired by holding Thing with an intention to do so on one's own behalf.

§181 (Possession by Agents)
Possessory rights may be acquired by an agent.

§182 (Actual Delivery and Summary Delivery)
(1) The transfers of possessory rights shall be effected by the delivery of the Thing possessed.
(2) In cases where a transferee or his agent actually holds a Thing, the transfers of possessory rights may be effected by the parties' manifestations of intention alone.

§183 (Constructive Transfers)
If an agent manifests an intention that The thing possessed by it shall thenceforward be possessed on behalf of its principal, the principal shall thereby acquire possessory rights.

§184 (Transfers of Possession by Instructions)
In cases where a Thing is in an agent's possession, if the principal orders that agent to thenceforward possess that Thing on behalf of a third party, and such third party consents thereto, that third party shall acquire possessory rights.

§185 (Change in Nature of Possession)
In cases where it is assumed, due to the nature of the title, that a possessor does not have the intention to own, the nature of the possessor's possession shall not change unless that possessor manifests to the person who made him possess the Thing that he has the intention of ownership, or commences possession under a new title with an intention to own from that time.

§186 (Presumption regarding Nature of Possession)
(1) It shall be presumed that a possessor possesses Thing with the intention to own, in good faith peacefully and in public.
(2) If there is evidence of possession at two different points in time, it shall be presumed that possession continued during the interval.

§187 (Succession to Possession)
(1) A successor to a possessor may, at the option of the successor, assert either his possession only, or his possession together with that of the predecessor.
(2) In cases where a person asserts the possession of the predecessor together with his own, he shall also succeed to defects in the same.

Section 2 Effect of Possessory Rights

§188  (Presumption of Lawfulness of Rights Exercised with respect to Possessed Thing)
It shall be presumed that a possessor lawfully has the rights that a possessor exercises with respect to Thing in his possession.

§189 (Acquisition of Fruits by Possessor in Good Faith)
(1) A possessor in good faith shall acquire fruits derived from Thing in his possession.
(2) If a possessor in good faith is defeated in an action on the title, he shall be deemed to be a possessor in bad faith as from the time when such action was brought.

§190 (Return of Fruits by Possessors in bad faith)
(1) A possessor in bad faith shall be obligated to return fruits, and reimburse the price of fruits that he has already consumed, has damaged due to negligence or has failed to collect.
(2) The provisions of Para 1 shall apply mutatis mutandis to persons who possess Thing through violence or duress, or by concealing the same.

§191 (Compensation for Damages by Possessors)
If possessed Thing has suffered loss or damage due to reasons attributable to the possessor, a possessor in bad faith shall be liable to compensate the person recovering the loss for the entire loss, and a possessor in good faith shall be liable to compensate such person for the loss to the extent he is actually enriched as a result of such loss or damage; provided, however, that a possessor who does not have the intention of holding as owner must compensate the entire loss, even if he is in good faith.

§192 (Immediate Acquisition)
A person who commences the possession of movables peacefully and openly by a transactional act acquires rights to exercise with respect to such movables immediately if he is in good faith and faultless.

§193 (Recovery of Stolen or Lost Goods)
In the cases provided for in §192, if the possessed Thing is lost or stolen goods, the victim or person who lost the Thing may demand the recovery of that Thing from the possessor within 2 years from the time of the loss or theft.

§194 (Recovery of Stolen or Lost Goods)
If a possessor purchased lost or stolen goods in good faith at an auction or in a public market, or from a merchant who sells similar Things, the victim or person who lost the Thing may not recover the Thing unless he reimburses the possessor for the price paid.

§195 (Acquisition of Rights through Possession of Animals)
A person who possesses a non-domestic animal bred by others acquires rights to exercise with respect to that animal if he was in good faith at the beginning of the possession, and if recovery is not demanded by the owner of the animal within one month of the time when that animal left the possession of its owner.

§196 (Possessors' Claims for Reimbursement of Expenses)
(1) In cases where a possessor returns Thing in his possession, he may have the person recovering the Thing reimburse necessary expenses including amounts paid to preserve that Thing, provided, however, that, if the possessor has acquired fruits, ordinary necessary expenses shall be borne by the possessor.
(2) With respect to beneficial expenses including amounts paid by a possessor to improve Thing in his possession, limited to cases where there is a current increase in value, the possessor may, at the election of the person recovering the Thing, have the person recovering the Thing reimburse monies the possessor paid or the amount of the increased value; provided, however, that, with regard to a possessor in bad faith, the court may, at the request of the person recovering the Thing, grant a reasonable period for same.

§197 (Possessory Actions)
A possessor may bring a possessory action in accordance with the provisions of §198 through §202.
The same shall apply to a person who takes possession on behalf of others.

§198 (Actions for Maintenance of Possession)
When a possessor is disturbed in his possession, he may claim for the discontinuation of the disturbance and compensation for damages by bringing an action for maintenance of possession.

§199 (Actions for Preservation of Possession)
When a possessor is likely to be disturbed of his possession, he may claim either for the prevention of the disturbance or for the submission of security for the compensation for damages by bringing an action for preservation of possession.

§200 (Actions for Recovery of Possession)
(1) When a possessor is forcibly dispossessed, he may claim for the restoration of the Thing and compensation for damages by bringing an action for recovery of possession.
(2) An Action for recovery of possession cannot be filed against a specific successor of the usurper of possession; provided, however, that this shall not apply if that successor had knowledge of the fact of usurpation.

§201 (Periods of Time for Bringing Possessory Actions)
(1) Actions for maintenance of possession must be brought during the disturbance or within one year after the disturbance is extinguished; provided, however, that, in cases where possessed Thing is damaged due to construction, if one year has elapsed from the time when that construction started or if that construction has been completed, such action cannot be brought.
(2) Actions for preservation of possession may be brought so long as the danger of disturbance exists. In such cases, the proviso to the preceding paragraph shall apply mutatis mutandis if possessed Thing is likely to be damaged by construction.
(3) Actions for recovery of possession must be brought within one year of the time when possession was unlawfully usurped.

§202 (Relationship with Actions on Title)
(1) Possessory Actions do not preclude actions on title, and actions on title do not preclude possessory actions.
(2) With respect to possessory actions, no judgment may be made based on reasons relating to title.

Section 3 Extinction of Possessory Rights

§203 (Grounds for Extinction of Possessory Rights)
Possessory rights shall be extinguished when the possessor renounces his intention to possess, or loses possession of the possessed Thing; provided, however, that this shall not apply if the possessor brings an action for recovery of possession.

§204 (Grounds for Extinction of Agent's Possessory Rights)
In cases where a person possesses a Thing through an agent, possessory rights shall be extinguished on the grounds listed below:
(i) That the principal renounces his intention to have his agent possess;
(ii) That the agent manifests his intention to the principal to thenceforward possess the possessed Thing on behalf of himself or a third party; or
(iii) That the agent has lost the direct control over the possessed Thing.
(2) Possessory rights shall not be extinguished solely as a result of the extinction of the power of representation.

Section 4 Quasi-Possession

§205 (Quasi-Possession)
The provisions of this Chapter shall apply mutatis mutandis to cases where a person exercises his property rights with an intention to do so on his own behalf.

Chapter 3 Ownership
Section 1 Extent of Ownership
Subsection 1 Content and Scope of Ownership


§206 (Content of Ownership)
An owner has the rights to freely use, obtain profit from and dispose of the Thing owned, subject to the restrictions prescribed by laws and regulations.

§207 (Scope of Ownership in Land)
Ownership in land shall extend to above and below the surface of the land, subject to the restrictions prescribed by laws and regulations.

Subsection 2 Neighboring Relationships

§209 (Requests for Use of Neighboring Land)
(1) An owner of land may request the use of the neighboring land to the extent necessary for constructing or repairing walls or buildings on or in the vicinity of the boundary; provided, however, that he may not enter the dwelling house of the neighbor without the approval of the same.
(2) In the cases provided for in Para 1, if the neighbor sustained damages, he may claim compensation.

§210 (Right of Passage over Other Land for Access to Public Roads)
(1) An owner of land that is surrounded by other land and has no access to public roads may pass through the other land that surrounds his land to reach the public roads.
(2) Para 1 shall likewise apply in cases where an owner cannot access the public roads unless he passes through ponds, lakes, rivers, waterways or seas, or in cases where there is a considerable difference in height between the land and the public road on account of a cliff.

§211 (Right of Passage over Other Land for Access to Public Roads)
(1) In the cases provided for in §210, the location and method of passage must be so chosen as to meet the needs of the person who is entitled to the right of passage under the provisions of that article, and cause the least damage to the other land.
(2) A person who holds the right of passage under the provisions of §210 may construct a road if necessary.

§212 (Right of Passage over Other Land for Access to Public Roads)
A person who is entitled to the right of passage pursuant to the provisions of §210 must pay compensation for damage caused to the other land that he passes through; provided, however, that, except for damage arising from the construction of a road, compensation may be paid on an annual basis.

§213 (Right of Passage over Other Land for Access to Public Roads)
(1) If the partition of land creates a parcel of land that has no access to public roads, the owner of such parcel of land may pass to the public roads only through the lands owned by others who participated in the partition. In such cases, it shall not be necessary to pay compensation.
(2) The provisions of Para 1 shall apply mutatis mutandis to cases where the owner of land assigns part of his land to others.

§214 (Prohibition of Obstruction of Natural Water Streams)
A landowner may not interfere with a natural water stream flowing from neighboring land.

§215 (Removal of Barriers to Water Streams)
If a stream is blocked at low-lying ground due to a natural disaster or other unavoidable event, an owner of higher ground may carry out construction work necessary to remove the barrier to the stream at his own expense.

§216 (Repairs of Structures related to Streams)
If land suffers, or is likely to suffer, damage due to destruction or blockage of a structure installed on other land to store, discharge or draw water, the owner of that land may have the owners of such other lands repair the structure or remove the barriers, or, if necessary, have the same carry out preventive construction work.

§217 (Customs with respect to Allocation of Expenses)
In the cases provided for in §215 & §216, if there are other customs with respect to the allocation of expenses, those customs shall prevail.

§218  (Prohibition of Installation of Structures that Discharge Rainwater to Neighboring Lands)
A landowner may not install any structure including a roof that discharges rainwater directly onto neighboring land.

§219 (Changes to Streams)
(1) An owner of land containing a stream including a channel or moat may not change the course or width of the same if the land on the other side is owned by others.
(2) If the land on both sides of a stream is owned by the owner of the land containing the stream, that owner may change the course or the width of the same; provided, however, that he must return the stream to its natural course at the point where the stream meets neighboring land.
(3) If there are customs that differ from the provisions of Para 1 & 2, those customs shall prevail.

§220 (Running Water through Lower Ground for Discharge)
An owner of a higher ground may run water through lower grounds to dry out his higher ground in cases where that land is flooded, or to discharge surplus water for household or agricultural or industrial use until the water meets a public stream or sewage system. In such cases, the location and method that cause the least damage to the lower ground must be selected.

§221 (Use of Structures to Direct Water)
(1) A landowner may use structures established by owners of higher ground or lower ground in order to cause water from his land to pass through the same.
(2) In the cases provided for in Para 1, the person who uses the structures of others must bear the expenses of the establishment and preservation of the structures in proportion to the benefit he enjoys.

§222 (Construction and Use of Dams)
(1) If the owner of land containing a stream needs to construct a dam, he may construct that dam by fixing it to the other side even if the land on the other side is owned by others; provided, however, that he must pay compensation for damages arising as a result.
(2) The owner of the land on the other side may use the dam under Para 1 if he owns part of the land containing the stream.
(3) The provisions of §221 (2) shall apply mutatis mutandis to the cases provided for in Para 2.

§223 (Installation of Boundary Markers)
A landowner may install boundary markers, sharing the expenses with the owner of the neighboring land.

§224 (Expenses of Installation and Preservation of Boundary Markers)
The expenses of installation and preservation of boundary markers shall be borne equally by neighbors; provided, however, that measuring expenses shall be borne in proportion to the sizes of the relevant land parcels.

§225 (Installation of Fences)
(1) If 2 buildings are owned by different owners and there is an open lot between them, each owner may install a fence on the boundary, sharing the expenses with the other owner.
(2) If no agreement can be reached between the parties, the fence under Para 1 must be wooden fencing, bamboo fencing or fencing made of similar material and must be 2 meters high.

§226 (Expenses of Installation and Preservation of Fences)
The expenses of installation and preservation of the fences under the preceding article shall be borne equally by the neighbors.

§227 (Installation of Fences by One of Neighbors)
One of neighboring owners may install a fence using materials better than those provided for in §225 (2) or elevating the height provided for under the same paragraph; provided, however, that he must bear the increase in expenses arising as a result of the same.

§228 (Customs relating to Installation of Fences)
If there are customs that differ from the provisions of §225-§227, those customs shall prevail.

§229 (Presumption of Co-ownership of Boundary Markers)
Boundary markers, fences, walls, channels and moats installed on boundary lines shall be presumed to be co-owned by the neighbors.

§230 (Presumption of Co-ownership of Boundary Markers)
(1) The provisions of §229 shall not apply to a wall on a boundary line that forms a part of a building.
(2) If the height of a wall that separates two neighboring buildings of different heights is higher than the height of the lower building, Para 1 shall likewise apply with respect to such portion of that wall that is higher than the lower building; provided, however, that this shall not apply to fire walls.

§231 (Construction Work raising Height of Co-owned Walls)
(1) One of neighboring owners may raise the height of a co-owned wall; provided, however, that, if the wall cannot withstand the construction work, he must reinforce that wall as necessary or rebuild the same.
(2) If the height of a wall is raised under the provisions of Para 1, the raised portion shall be owned solely by the person who carried out the construction work.

§232 (Construction Work raising Height of Co-owned Walls)
In the cases provided for in §231, if a neighbor suffers damage, he may demand compensation for the same.

§233 (Cutting of Branches and Roots of Trees and Bamboo)
(1) If a tree or bamboo branch from neighboring land crosses a boundary line, the landowner may have the owner of that tree or bamboo sever that branch.
(2) If a tree or bamboo root from neighboring land crosses a boundary line, the owner of the land may sever that root.

§234 (Restrictions on Buildings near Boundary Lines)
(1) In order to construct a building, the building must be distanced 50 cm or more away from the boundary line.
(2) If a person attempts to construct a building in violation of the provisions of Para 1, the owner of the neighboring land may have construction suspended or changed; provided, however, that, if one year has lapsed from the time when such construction started or if that building has been completed, the owner may only claim damages.

§235 (Restrictions on Buildings near Boundary Lines)
(1) A person who installs a window or porch (including a veranda) at a distance of less than 1 meter from a boundary line allowing the observation of the residential land of others, must put up a privacy screen.
(2) The distance under Para 1 shall be calculated by measuring the length of a straight line from the point on the window or porch closest to the neighboring land to where it reaches the boundary line at a right angle.

§236 (Customs relating to Construction near Boundary Lines)
If there are customs that differ from the provisions of §234 & §235, those customs shall prevail.

§237 (Restrictions on Digging near Boundary Lines)

(1) In order to dig a well, service water pit, sewage pit or compost pit, the same must be distanced 2 or more meters from the boundary line, and in order to dig a pond, cellar or urine pit, the same must be distanced 1 or more meters from the boundary line.
(2) In order to bury water pipes, or dig a channel or moat, the same must be distanced from the boundary line by a measurement equivalent to at least half the depth of the same; provided, however, that the distance is not required to be more than 1 meter.

§238 (Duty of Care regarding Digging near Boundary Lines)
When construction under §237 is to be carried out near a boundary line, necessary care must be taken to ensure the prevention of earth collapses or leakages of water or contaminated liquids.

Section 2 Acquisition of Ownership

§239 (Ownership in Ownerless Thing)
(1) Ownership of movables without an owner shall be acquired by possessing the same with the intention to own.
(2) Ownership of real estate without an owner shall vest in the National Treasury.

§240 (Finding of Lost Property)
If the owner of lost property is not identified within 3 months of the time when public notice thereof is effected as prescribed by the Lost Property Act, the person who found the lost property shall acquire ownership in the same.

§241 (Discovery of Hidden Treasure)
If the owner of hidden treasure is not identified within 6 months of the time when public notice thereof is effected as prescribed by the Lost Property Act, the finder shall acquire ownership in the same; provided, however, that, with respect to hidden treasure discovered in a Thing belonging to other person, the finder and such other person shall acquire equally proportionate ownership in the same.

§242 (Accession to Real Estate)
The owner of real estate shall acquire ownership in a Thing that has been attached thereto as its accessory ; provided, however, that the rights of the other person who attached such Thing by virtue of his title shall not be precluded.

§243 (Accession to Movables)
If two or more movables with different owners are so joined to each other that they can no longer be separated without damaging the same, ownership of the composite Thing shall vest in the owner of the principal movables. The same shall apply if excessive expense would be required to separate the same.

§244 (Accession to Movables)
If the distinction of principal and accessory cannot be made between the joined movables, the owner of each movable shall co-own the composite Thing in proportion to the respective price current at the time of the accession.

§245 (Mixture)
The provisions of §243 & §244 shall apply m/mutandis to cases where the Things of different owners are mixed together and can no longer be distinguished.

§246 (Processing)
(1) If a person ("Processor") contributes work to the movables of others, ownership of the Thing so worked up shall vest in the owner of the materials; provided, however, that, if the value derived from the work significantly exceeds the value of the materials, the Processor shall acquire ownership in the processed Thing.
(2) In the cases provided for in the preceding paragraph, if the Processor supplies a portion of the materials, the Processor shall acquire ownership in the processed Thing, limited to if the value of such supplied materials plus the value derived from the work exceeds the value of the materials of others.

§247 (Effect of Accession, Mixture or Processing)
(1) If the ownership of a Thing is extinguished in accordance with the provisions of §242 through §246, other rights in existence in relation to such Thing shall also be extinguished.
(2) In the cases provided for in Para 1, if the owner of a Thing has become the sole owner of the Thing formed by accession, mixture or processing ("composite Thing"), other rights in existence in relation to such Thing shall thereafter exist in relation to the composite Thing, and if the owner of the Thing becomes a co-owner of the composite Thing, other rights in existence in relation to such Thing shall thereafter exist in relation to his share in the same.

§248  (Demands for Compensation in conjunction with Accession, Mixture or Processing)
A person who suffers loss because of the application of the provisions of §242 through §247 may demand compensation in accordance with the provisions of §703 & §704.

Section 3 Co-Ownership

§249 (Use of property in co-ownership )
Each co-owner may use the entire property in co-ownership in proportion to his share.

§250 (Presumption of Proportion of Co-owner's Shares)
Each co-owner's share shall be presumed to be equal.

§251 (Changes to Co-owned Thing)
No co-owner may make any alteration to the property in co-ownership without the consent of the other co-owners.

§252 (Management of Co-owned Thing)
Matters regarding the management of property in co-ownership shall be determined by a majority of the value of the shares of the co-owners, except for cases provided for in the §251(alteration); provided, however, that any co-owner may carry out acts of preservation.

§253 (Obligations to bear Burdens regarding property in co-ownership)
(1) Each co-owner shall pay the expenses of management and otherwise bear burdens regarding the property in co-ownership, in proportion to his share.
(2) If a co-owner does not perform the obligations under Para 1 within 1 year, other co-owners may acquire the share of such person by paying reasonable compensation.

§254 (Claims on property in co-ownership)
A claim that one of co-owners holds against other co-owners with respect to the property in co-ownership may be exercised against their specific successors.

§255 (Renunciation of Shares and Death of Co-owners)
If one of co-owners renounces his share or dies without an heir, his share shall vest in other co-owners.

§256 (Demands for Partition of property in co-ownership)
(1) Each co-owner may demand the partition of property in co-ownership at any time; provided, however, that this shall not preclude concluding a contract to the effect that a partition will not occur for a period within 5 years.
(2) The contract under the proviso to Para 1 may be renewed; provided, however, that the period thereof may not exceed 5 years from the time of the renewal.

§257 (Demands for Partition of property in co-ownership)
The provisions of §256 shall not apply to the property in co-ownership provided for in §229.

§258 (Partition of property in co-ownership by Judgment)
(1) If no agreement is reached among co-owners with respect to the partition of property in co-ownership, a demand for partition of the same may be submitted to the court.
(2) In cases provided for in Para 1, if the property in co-ownership cannot be partitioned in kind, or it is likely that the value thereof will be significantly reduced by the partition, the court may order the sale of the same at auction.

§259 (Performance of Obligations regarding Co-ownership)
(1) If one of the co-owners holds a claim regarding co-ownership against other co-owners, upon partition, the portion of the property in co-ownership that vests in the obligors may be appropriated for the performance of the same.
(2) If it is necessary to sell the portion of the property in co-ownership that vests in the obligors to obtain the performance under Ppara 1, the obligee may demand the sale of the same.

§260 (Participation in Partition of property in co-ownership)
(1) Persons who hold rights with respect to property in co-ownership and the obligee of any co-owner may participate in partitions at their own expense.
(2) If, notwithstanding a request for participation under the provisions of Para 1, partition is effected without allowing the participation of the person who submitted the request, that partition may not be asserted against the person who submitted the request.

§261 (Co-owners' Warranties upon Partitions)
Each co-owner shall bear, in proportion to his share, the responsibility of warranty that a seller would have as to the Thing other co-owners have acquired by partition.

§262 (Documents regarding property in co-ownership)
(1) If a partition has been completed, each person who participated in the partition must retain the documents regarding the Thing he acquired.
(2) Documents regarding the Thing that is partitioned for some or all co-owners must be retained by the person who acquired the largest portion of that Thing.
(3) In the cases provided for in Para 2, if no person acquired the largest portion, the person who is to retain the documents shall be determined by mutual agreement among the persons who participated in the partition. If no agreement is reached, the court shall designate the same.
(4) The person who is to retain the documents must allow other persons who participated in the partition to use the documents at the request of the same.

§263 (Rights of Common with Nature of Co-ownership)
Rights of common that have the nature of co-ownership shall be governed by local custom and shall otherwise be subject to the application of the provisions of this Section.

§264 (Quasi Co-ownership)
The provisions of this Section shall apply m/mutandis to the cases where 2 or more persons share property rights other than the ownership; provided, however, that this shall not apply if laws and regulations provide otherwise.

Chapter 4 Superficies

§265 (Content of Superficies)
A superficiary shall have the right to use the land of others in order to own structures, or trees or bamboo, on that land.

§266 (Rents)
(1) The provisions of §274 through §276 shall apply mutatis mutandis to cases where the superficiary must pay periodical rent to the owners of the land.
(2) In addition to the provisions of Para 1, provisions on leasehold shall apply mutatis mutandis to rent to the extent that application is not inconsistent with the nature of the same.

§267 (Mutatis Mutandis Application of Provisions regarding Neighboring Relationships)
The provisions of Subsection 2, Section 1 of Chapter 3 (Neighboring Relationships) shall apply mutatis mutandis between superficiaries or between a superficiary and a landowner; provided, however, that the mutatis mutandis application of the provisions of §229 to holders of superficies shall be limited to cases where structures on the boundary line are installed after the creation of the superficies.

§268 (Duration of Superficies)
(1) In cases where the duration of superficies is not fixed by the act that established the same, if there is no other custom, the superficiary may renounce their rights at any time; provided, however, that, if rent must be paid, the superficiary must give notice one year or more in advance or pay rent for one year that has not yet become due and payable.
(2) If the superficiary does not renounce its rights in accordance with the provisions of Para 1, the court may, at the request of the parties concerned, fix a duration of 20 years or more but not more than 50 years, taking into consideration the kind and status of the structures, or trees or bamboo and other circumstances at the time of the creation of the superficies.

§269 (Removal of Structures)
(1) When the right of the superficiary is extinguished, he may restore the land to its original condition and remove structures and trees or bamboo on the same; provided, however, that, if the owner of the land gives notice that he will purchase the same by offering to pay an amount equivalent to the market price, the superficiary may not refuse that offer without justifiable grounds.
(2) If there are customs that differ from the provisions of Para 1, those customs shall prevail.

§269-2 (Superficies for Underground or Overhead Space)
(1) Underground or overhead space may be used as the object of superficies in order to own structures by specifying limits in the vertical dimension. In such cases, restrictions on the use of that land may be added in the act that establishes superficies for the purpose of facilitating the exercise of the superficies.
(2) The superficies under Para 1 may be established even in cases where third parties hold rights to use or receive profits from land if all persons who hold those rights or rights underlying the same consent.
In such cases, persons who hold the rights to use or receive profits from the land cannot preclude the exercise of the superficies to the same.

Chapter 5 Emphyteusis

§270 (Content of Emphyteusis)
An emphyteuta shall have the right to engage in cultivation or livestock farming on the land of others by paying rent.

§271 (Restrictions on Alterations to Land by Emphyteutas)
An emphyteuta may not make any alteration of the land that will result in irreparable damage.

§272 (Transfer of Emphyteusis or Leasing of Land)
An emphyteuta may assign his rights to others, or lease the land during the duration of his rights to cultivate or farm livestock; provided, however, that this shall not apply if such acts are prohibited by the act that established his rights.

§273 (Mutatis Mutandis Application of Provisions regarding Lease)
In addition to the provisions of this Chapter and those provided for in the act that established the emphyteusis, provisions regarding lease shall apply mutatis mutandis to the obligations of an emphyteuta, to the extent that application is not inconsistent with the nature of the same.

§274 (Rent Reductions or Exemptions)
An emphyteuta may not demand an exemption from or reduction in the rent even if a loss of profits has been suffered due to force majeure.

§275 (Waiver of Emphyteusis)
If an emphyteuta has gained no profit whatsoever for three or more consecutive years or has gained profits less than the rent for five or more consecutive years due to force majeure, he may surrender his rights.

§276 (Demand for Extinction of Emphyteusis)
If an emphyteuta fails to pay the rent for 2 or more consecutive years, the landowner may demand the extinction of the emphyteusis.

§277 (Customs regarding Emphyteusis)
If there are customs that differ from the provisions of §271 through §276, those customs shall prevail.

§278 (Duration of Emphyteusis)
(1) The duration of the emphyteusis shall be 20 years or more but no more than 50 years. Even if an act establishing emphyteusis provides for a period longer than 50 years, the duration shall be 50 years.
(2) The establishment of emphyteusis may be renewed; provided, however, that the duration of the same may not exceed 50 years from the time of renewal.
(3) If an act establishing emphyteusis does not provide for the duration of the emphyteusis, the duration of the same shall be 30 years unless there is a custom to the contrary.

§279 (Removal of Structures)
The provisions of §269 shall apply m/mutandis to emphyteusis.

Chapter 6 Servitudes

§280 (Content of Servitudes)
A person entitled to a servitude shall have the right to make lands of others available for the benefit of their own lands in accordance with purposes prescribed in the acts establishing the servitudes; provided, however, that those rights should not violate the provisions (limited to those that relate to public policy) under Section 1 of Chapter 3 (Extent of Ownership).

§281 (Appurtenant Nature of Servitudes)
(1) Servitudes are appurtenant to ownership in the dominant land (land of a person entitled to a servitude, enjoying benefits from the land of others) and shall be transferred together with that ownership, or shall be the subject of other rights that exist in relation to the dominant land; provided, however, that this shall not apply if the act establishing the servitude provides otherwise.
(2) Servitudes may neither be assigned nor made the subject of other rights apart from the dominant land.

§282 (Indivisibility of Servitudes)
(1) One of the co-owners of land may not extinguish, with respect to his own share, a servitude that exists on behalf of or in relation to the land.
(2) In cases where land is partitioned or a portion thereof is assigned to others, a servitude shall exist on behalf of or in relation to the respective portions of the same; provided, however, that this shall not apply if the servitude, by its nature, relates only to a portion of the land.

§283 (Acquisition of Servitudes by Prescription)
A servitude can be acquired by prescription so long as it is continuously exercised and can be externally recognized.

§284 (Acquisition of Servitudes by Prescription)
(1) If one of the co-owners of land acquires a servitude by prescription, the other co-owners shall also acquire the same.
(2) Interruption of prescription shall not be effected against co-owners unless it is made against each co-owner who exercises the servitude.
(3) In cases where there are 2 or more co-owners who exercise a servitude, even if there is cause to suspend the prescription with respect to one of them, the prescription shall run in favor of each co-owner.

§285 (Water Servitude)
(1) If water on servient land (hereinafter referring to a land of any person other than the one entitled to the servitude, made available for the benefit of the dominant land) subject to a water servitude is insufficient for the demand of the dominant land and the servient land, the water shall be used in proportion to the demand on each parcel of land, firstly for household purposes with the remaining portion used for other purposes; provided, however, that this shall not apply if the act establishing the servitude provides otherwise.
(2) If more than one water servitude is created with respect to the same servient land, the persons subsequently entitled may not prevent the use of water by those previously entitled.

§286 (Obligations of Owners of Servient Land to Install Structures)
If the owner of servient land has assumed obligations to install or repair structures for the exercise of a servitude at his own expense by the act establishing the servitude or by a contract executed after the same, specific successors of the owner of the servient land shall also assume those obligations.

§287 (Obligations of Owners of Servient Land to Install Structures)
An owner of servient land may be exempted from obligations of Article 286 at any time by abandoning the ownership in the portion of the land necessary for the servitude and transferring the same to the person entitled to a servitude.

§288 (Use of Structures by the Owner of Servient Lands)
(1) The owner of a servient land may use structures installed on the servient land for the exercise of the servitude to the extent his use does not obstruct the exercise of that servitude.
(2) In the cases provided for in Para 1, the owner of the servient land must bear the expense for the installation and preservation of the structures in proportion to the benefit he receives.

§289  (Extinction of Servitude by Acquisition by Prescription of Servient Lands)
If the possessor of servient land has so possessed the same as to satisfy the requirements for acquisitive prescription, the servitude shall be extinguished thereby.

§290  (Extinction of Servitude by Acquisition by Prescription of Servient Lands)
The extinctive prescription of §289 is nullified by the person entitled to the servitude exercising his rights.

§291 (Extinctive Prescription of Servitudes)
The period of the extinctive prescription provided for in §167 (2) shall commence upon the final exercise of the servitude if the servitude is not exercised continuously, and upon the occurrence of a fact that prevents the exercise of the servitude if the servitude is exercised continuously.

§292 (Extinctive Prescription of Servitudes)
In cases where dominant land is co-owned by more than one person, if there is a suspension or interruption of prescription in favor of one co-owner, such suspension or interruption shall also be effective for the benefit of other co-owners.

§293 (Extinctive Prescription of Servitudes)
If a person entitled to a servitude does not exercise a portion of his rights, only that portion shall be extinguished by prescription.

§294 (Rights of Common without the Nature of Co-Ownership)
Rights of common that do not have the nature of co-ownership shall be governed by local customs and shall otherwise be subject to the mutatis mutandis application of the provisions of this Section.

Chapter 7 Rights of Retention

§295 (Content of Rights of Retention)
(1) If a possessor of a Thing belonging to another person has a claim that has arisen with respect to that Thing, he may retain that thing until that claim is satisfied; provided, however, that this shall not apply if such claim has not yet fallen due.
(2) The provisions of Para 1 shall not apply in cases where possession commenced by means of a tortious act.

§296 (Indivisibility of Rights of Retention)
A holder of a right of retention may exercise his rights against the whole of the Thing retained until his claim is satisfied in its entirety.

§297 (Collection of Fruits by Holders of Rights of Retention)
(1) A holder of a right of retention may collect fruits derived from the Thing retained, and appropriate the same to the satisfaction of his claim prior to other obligees.
(2) The fruits under Para 1 must be appropriated first to the payment of interest on the claim, and any remainder must be appropriated to the satisfaction of the principal.

§298 (Keeping the Thing Retained by Holders of Rights of Retention)
(1) A holder of a right of retention must possess the Thing retained with the care of a good manager.
(2) A holder of rights of retention may not use, lease or give as a security the Thing retained unless he obtains the consent of the obligor; provided, however, that this shall not apply to uses necessary for the preservation of that Thing.
(3) If the holder of a right of retention violates the provisions of Para 1 & 2, the obligor may demand that the right of retention be extinguished.

§299  (Demands for Reimbursement of Expenses by Holders of Rights of Retention)
(1) If a holder of a right of retention incurs necessary expenses with respect to the Thing retained, he may have the owner reimburse the same.
(2) If a holder of a right of retention incurs beneficial expenses with respect to the Thing retained, to the extent that there is currently an increase in value as a result of the same, he may have the expenses incurred or the increase in value reimbursed at the owner's election; provided, however, that the court may, at the request of the owner, grant a reasonable period for the reimbursement of the same.

§300  (Exercise of Rights of Retention and Extinctive Prescription of Claims)
The exercise of a right of retention shall not preclude the running of extinctive prescription of claims.

§301 (Extinction of Rights of Retention by Tender of Security)
An obligor may demand that a right of retention be extinguished by tendering reasonable security.

§302 (Extinction of Rights of Retention by Loss of Possession)
A right of retention shall be extinguished if the holder of the right of retention loses possession of the Thing retained; provided, however, that this shall not apply if the Thing retained is leased or it is made the subject of a pledge in accordance with the provisions of §298 (2).

Chapter 8 Statutory Liens
Section 1 General Provisions


§303 (Content of Statutory Liens)
A holder of a statutory lien shall have the rights to have his own claim satisfied prior to other obligees out of the assets of the relevant obligor in accordance with the provisions of laws including this Act.

§304 (Extension of Security Interest to Proceeds of Collateral)
(1) A statutory lien may also be exercised against Things including monies that the obligor is to receive as a result of the sale, lease or loss of, or damage to, the subject matter of the statutory lien; provided, however, that the holder of the statutory lien must attach the same before the payment or delivery of the monies or other Thing.
(2) The provisions of Para 1 shall likewise apply to the consideration for real rights established by the obligor on the subject matter of the statutory lien.

§305 (Indivisibility of Statutory Liens)
The provisions of §296 shall apply m/mutandis to statutory liens.

Section 2 Kinds of Statutory Liens
Subsection 1 General Statutory Lien


§306 (General Statutory Lien)
A person who has a claim that arose from the causes listed below shall have a statutory lien over the entire property of the obligor:
(i) Expenses for the common benefit;
(ii) An employer-employee relationship;
(iii) Funeral expenses; or
(iv) The supply of daily necessaries.

§307 (Statutory Liens for Expenses for Common Benefit)
(1) Statutory liens for expenses for the common benefit shall exist with respect to the expenses of preservation, liquidation or distribution of the property of the obligor incurred for the common benefit of all obligee.
(2) With respect to expenses that were not beneficial for all obligees, a statutory lien shall exist solely for obligees who received a benefit as a result of such expenses.

§308 (Statutory Liens for Employer-Employee Relationships)
Statutory liens for employer-employee relationships shall exist with respect to salaries and other claims that arose under the employer-employee relationship between the obligor and his employee.

§309 (Funeral Expenses)
(1) Statutory liens for funeral expenses shall exist with respect to the reasonable expenses of a funeral observed for the obligor.
(2) The statutory lien under Para 1 shall also exist with respect to the reasonable expenses of a funeral observed by the obligor for a relative whom the obligor is bound to support.

§310 (Statutory Liens for Household Items)
Statutory liens for daily necessaries shall exist with respect to the supply of food and drink items, fuel and electricity for the most recent 6 months required for the household of the obligor or his relatives who reside with the obligor and whom the obligor is bound to support and the domestic servants of the same.

Subsection 2 Statutory Liens over Movables

§311 (Statutory Liens over Movables)
A person who has a claim that arose from the causes listed below shall have a statutory lien over certain movables of the obligor:
(i) A lease of immovable property;
(ii) A lodging at a hotel or inn;
(iii) The transportation of passengers or luggage;
(iv) The preservation of movables;
(v) The sale of movables;
(vi) The supply of seed or fertilizer (including eggs of silkworms or mulberry leaves used to feed silkworms);
(vii) Agricultural labor; or
(viii) Industrial labor.

§312 (Statutory Liens for Leases of Immovable Properties)
Statutory liens for a lease of immovable property shall exist with respect to the movables of the lessee in connection with obligations of the lessee that arose from the lease relationship including rent for that immovable property.

§313  (Scope of Subject Matter of Statutory Liens for Leases of Immovable Properties)
(1) The statutory lien of a lessor of land shall exist with respect to movables furnished to that land or buildings for the use of that land, movables provided for the use of that land, and fruits of that land in the possession of the lessee.
(2) The statutory lien of a lessor of a building shall exist with respect to movables furnished to that building by the lessee.

§314  (Scope of Subject Matter of Statutory Liens for Leases of Immovable Properties)
In the cases of assignment of lessee's rights or subleasing, the statutory lien of the lessor shall extend to the movables of the assignee or sublessee.
The same shall apply to monies that the assignee or sublessee is to receive.

§315  (Scope of Secured Claims under Statutory Liens for Leases of Immovable Properties)
In cases where all of the lessee's property is to be liquidated, the statutory lien of the lessor shall exist only with respect to obligations, including rent, for the previous, current and next terms, and obligations to compensate for damage that arose in the previous and current terms.

§316  (Scope of Secured Claims under Statutory Liens for Leases of Immovable Properties)
In cases where a lessor has received a security deposit, he shall have a statutory lien solely in respect of the portion of his claim that will not be satisfied by that security deposit.

§317 (Statutory Liens for Lodging at Hotels)
Statutory lien for lodging at hotels shall exist with respect to the hand luggage of a hotel guest left at that hotel, in connection with room charges, and food and beverage charges, that should be borne by the hotel guest.

§318 (Statutory Liens for Transportation)
Statutory liens for transportation shall exist with respect to luggage in the possession of the transporter, in connection with transportation charges for passengers or luggage and expenses incidental to the same.

§319 (Mutatis Mutandis Application of Provisions on Immediate Acquisition)
The provisions of Articles 192 through 195 shall apply mutatis mutandis to statutory liens under the provisions of Article 312 through the preceding article.

§320 (Statutory Liens for Preservation of Movables)
Statutory liens for the preservation of movables shall exist with respect to movables, in connection with expenses required for the preservation of those movables, or expenses required for the preservation, approval or execution of rights regarding those movables.

§321 (Statutory Liens for Sale of Movables)
Statutory liens for the sale of movables shall exist with respect to movables, in connection with the price of those movables and interest on the same.

§322 (Statutory Liens for Supply of Seed or Fertilizer)
Statutory liens for the supply of seed or fertilizer shall exist with respect to fruits (including eggs of silk worms or any Thing derived from the use of mulberry leaves used to feed silkworms) derived from land where the seed or fertilizer was used, within one year of that use, in connection with the price of that seed or fertilizer and interest on the same.

§323 (Statutory Liens for Agricultural Labor)
Statutory liens for agricultural labor shall exist, with respect to fruits derived from labor, in connection with the most recent year's wages of the person who engages in that labor.

§324 (Statutory Liens for Industrial Labor)
Statutory liens for industrial labor shall exist, with respect to manufactured things derived from labor, in connection with the most recent three months' wages of the person who engages in that labor.

Subsection 3 Statutory Liens for Immovable Properties

§325 (Statutory Liens for Immovable Properties)
A person who has a claim that arose from the causes listed below shall have a statutory lien over certain immovable property of the obligor:
(i) The preservation of immovable property;
(ii) Construction work for immovable property; or
(iii) The sale of immovable property.

§326 (Statutory Liens for Preservation of Immovable Properties)
Statutory liens for the preservation of immovable property shall exist with respect to immovable property, in connection with the expenses required for the preservation of that immovable property or the expenses required for the preservation, approval or execution of rights regarding that immovable property.

§327 (Statutory Liens for Construction Work for Immovable Properties)
(1) Statutory lien for construction work for immovable property shall exist, with respect to immovable property, in connection with the expenses of construction work performed by a person who designs, carries out or supervises construction work regarding the immovable property of the obligor.
(2) The statutory liens under Para 1 shall exist, in cases where there is a current increase in the value of the immovable property resulting from the construction work, with respect to that increased value.

§328 (Statutory Liens for Sales of Immovable properties)
Statutory liens for sales of immovable properties shall exist, with respect to immovable property, in connection with the price of that immovable property and interest on the same.

Section 3 Order of Priority of Statutory Liens

§329 (Order of Priority of General Statutory Liens)
(1) In cases where there is conflict among general statutory liens, the order of priority shall follow the order listed in each item of Article 306.
(2) In cases where there is conflict between a general statutory lien and a special statutory lien, the special statutory lien shall prevail over the general statutory lien; provided, however, that statutory liens on expenses for the common benefit shall have the effect of prevailing over all obligees who received the benefit of the same.

§330 (Order of Priority of Statutory Liens over Movables)
(1) In cases where there is conflict among special statutory liens with respect to the same movables, the order of priority shall follow the order listed below. In such cases, if there are two or more preservers with respect to the statutory liens for preservation of movables listed in Item (ii), a new preserver shall prevail over previous preservers.
(i) Statutory liens for leases of immovable properties, lodging at hotels and transportation;
(ii) Statutory liens for the preservation of movables; and
(iii) Statutory liens for the sale of movables, the supply of seed or fertilizer, agricultural labor and industrial labor.
(2) In the cases provided for in Para 1, if a holder of a statutory lien ranked first knew at the time he acquired that claim of the existence of a holder of a statutory lien of the second or third rank, he cannot exercise his rights against those persons. The same shall likewise apply against persons who preserved Things on behalf of the holder of a statutory lien of the first rank.
(3) Regarding fruits, the first rank shall belong to persons who engage in agricultural labor, the second rand shall belong to persons who supply seed or fertilizer, and the third rank shall belong to lessors of land.

§331 (Order of Priority of Statutory Liens over Immovable properties)
(1) In cases where there is conflict among special statutory liens with respect to the same immovable properties, the order of priority shall follow the order of the items of §325.
(2) In cases where successive sales are made with respect to the same immovable properties, the order of priority of the statutory liens for the sale of the immovable properties among sellers shall follow the chronological order of the sales.

§332 (Statutory Liens with Same Priority)
If there are two or more holders of statutory liens with the same priority with respect to the same object, the holders of statutory liens shall be paid in proportion to the amounts of their claims.

Section 4 Effect of Statutory Liens

§333 (Statutory Liens and Third-party Acquirers)
Statutory liens may not be exercised with respect to the movables that are the subject matter of the same after the obligors have delivered those movables to third-party acquirers.

§334 (Conflict between Statutory Liens and Pledges of Movables )
In cases where there is conflict between a statutory lien and a pledge of movables, the pledgee of such movables shall have the same rights as those of the holder of a statutory lien of the first rank under §330.

§335 (Effect of General Statutory Liens)
(1) Holders of general statutory liens cannot be paid out of immovable properties unless they are first paid out of property other than immovable properties and a claim that is not satisfied remains.
(2) With respect to immovable properties, holders of general statutory liens must first be paid out of those that are not the subject matters of special security.
(3) If holders of general statutory liens fail to participate in distributions in accordance with the provisions of Para 1 & 2, they cannot exercise their statutory liens against registered third parties with respect to amounts that would have been paid to them if they had participated in the distribution.
(4) The provisions of Para 1-3 shall not apply to cases where the proceeds of immovable properties are distributed prior to the proceeds of assets other than immovable properties, or the proceeds of immovable properties that is the subject matter of a special security are distributed prior to the proceeds of other immovable properties.

§336 (Perfection of General Statutory Liens)
General statutory liens may be asserted against obligees without special security, even if the liens are not registered with respect to the relevant immovable property; provided, however, that this shall not apply to registered third parties.

§337  (Registration of Statutory Liens for Preservation of Immovable Properties)
In order to preserve the effectiveness of statutory liens for preservation of immovable properties, registration must be carried out immediately after the completion of the act of preservation.

§338  (Registration of Statutory Liens for Construction Work for Immovable Properties)
(1) In order to preserve the effectiveness of statutory liens for construction work for immovable properties, the budgeted expenses of the construction work must be registered prior to the commencement of the same. In such cases, if the expenses of the construction work exceed the budgeted amount, a statutory lien shall not exist with respect to the amount in excess of the same.
(2) The amount of increase in value of immovable properties that resulted from construction work must be evaluated by an appraiser selected by the court at the time of the participation in the distribution.

§339 (Registered Statutory Liens for Preservation of Immovable Properties or Construction Work for Immovable Properties)
Statutory liens registered in accordance with the provisions of §337 & §338 may be exercised prior to mortgages.

§340 (Registration of Statutory Liens for Sales of Immovable Properties)
In order to preserve the effectiveness of statutory liens for the sale of immovable properties, a statement to the effect that the price of the immovable properties or interest on the same has not been paid must be registered simultaneously with the execution of the sales contract.

§341 (Mutatis Mutandis Application of Provisions regarding Mortgages)
In addition to the provisions of this Section, the provisions regarding mortgages shall apply m/mutandis to the effects of statutory liens, to the extent that application is not inconsistent with the nature of the same.

Chapter 9 Pledges
Section 1 General Provisions


§342 (Content of Pledges)
Pledgees shall have the right to possess Thing received from obligors or third parties as security for their claims and to have their own claims paid prior to other obligees out of that Thing.

§343 (Subject Matter of Pledges)
Pledges cannot be created over a Thing that cannot be assigned to others.

§344 (Creation of Pledges)
The creation of a pledge shall take effect by delivering the subject matter of the same to the obligee.

§345 (Prohibition of Possession by Pledgors as Agents)
A pledgee may not allow a pledgor to possess the Thing pledged on behalf of the pledgee.

§346 (Scope of Secured Claims under Pledges)
Pledges shall secure the principal, interest, penalties, expenses of executing the pledge, expense of preserving the Thing pledged and the compensation of damage arising from failure to perform obligations or latent defects in the Thing pledged; provided, however, that this shall not apply if the act establishing the pledge provides otherwise.

§347 (Retention of the Thing Pledged)
Pledgees may retain the Thing pledged until the claims provided for in §346 are satisfied; provided, however, that this right cannot be asserted against obligees who have priority over the pledgees.

§348 (Sub-pledges)
Pledgees may sub-pledge the Thing pledged within the duration of their rights, upon their own response- bility. In such cases, the pledgees shall be responsible for any loss arising from the pledge even if the same is caused by force majeure.

§349 (Prohibition on Disposition of the Thing Pledged by Contract)
Pledgors cannot, either by the acts establishing pledges or by contracts made prior to the due dates for performance of their obligations, allow pledgees to acquire ownership of the Thing pledged as payment, nor promise to allow pledgees to dispose of it in any manner other than is prescribed by law.

§350  (Mutatis Mutandis Application of Provisions on Rights of Retention and Statutory Liens)
The provisions of §296 through §300 and those of §304 shall apply m/mutandis to pledges.

§351 (Third Party Pledgors' Rights to Obtain Reimbursement)
If persons who created pledges to secure the obligations of others have performed those obligations or have lost ownership of the Thing pledged due to the execution of the pledges, they shall have the right to obtain reimbursement from the obligors in accordance with the provisions regarding guarantee obligations.

Section 2 Pledges of Movables

§352 (Requirements for the Perfection of Pledges of Movables)
Pledgees of movables cannot assert their pledges against third parties unless they are in continuous possession of the Thing pledged.

§353 (Recovery of Possession of the Thing Pledged )
Pledgees of movables may, if the pledged Thing is usurped, recover the same solely by bringing actions for recovery of possession.

§354 (Execution of Pledges of Movables)
If claims of pledgees of movables are not performed, they may, limited to cases where there are reasonable grounds, demand from a court immediate appropriation of the Thing pledged to the performance of the claims in accordance with the evaluation of an appraiser.
In such cases, the pledgees of movables must notify the obligors in advance of the demand.

§355 (Order of Priority of Pledges of Movables)
If more than one pledge is created with respect to the same movables, the order of priority of those pledges shall follow the chronological order of their creation.

Section 3 Pledges of Immovable Properties

§356 (Use and Profit by Pledgees of Immovable Properties)
Pledgees of immovable property may use and receive the profits from the immovable property that is the subject matter of a pledge, in accordance with the method of its use.

§357  (Management Expenses Borne by Pledgees of Immovable Properties)
Pledgees of immovable properties shall pay the expenses of management and otherwise bear burdens in relation to the immovable properties.

§358  (Prohibition on Charging of Interest by Pledgees of Immovable Properties)
Pledgees of immovable properties cannot demand interest on their claims.

§359 (Cases of Other Provisions in Act of Establishment)
The provisions of §356-§358 shall not apply in cases where the acts establishing pledges provide otherwise or execution against profits derived from the immovable properties as collateral (hereinafter referring to the execution against profits from secured immovable properties provided for in §180 (ii) of the Civil Execution Act) has been commenced.

§360 (Duration of Pledges of Immovable Properties)
(1) The duration of pledges of immovable properties cannot exceed 10 years. Even if a longer period is provided for in the act establishing the pledge, the duration of the same shall be 10 years.
(2) The creation of pledges may be renewed; provided, however, that the duration of the same cannot exceed 10 years from the time of the renewal.

§361 (Mutatis Mutandis Application of Provisions on Mortgages)
In addition to the provisions of this Section, the provisions of the next chapter shall apply mutatis mutandis to pledges of immovable properties to the extent that application is not inconsistent with the nature of the same.

Section 4 Pledges of Rights

§362 (Subject Matter of Pledges of Rights)
(1) Pledges may have property rights for their subject matters.
(2) In addition to the provisions of this Section, the provisions of Sections 1-3 (General Provisions, Pledges of Movables and Pledges of Immovable properties) shall apply mutatis mutandis to pledges under Para 1, to the extent that application is not inconsistent with the nature of the same.

§363 (Creation of Pledges over Claims)
When a pledges is to be created over a claim, and the delivery of an instrument evidencing it is required for its assignment, the creation of the pledge shall take effect by the delivery of such instrument.

§364 (Requirements for Perfection of Pledges over Nominative Claims)
If a pledge is created over a nominative claim, that pledge cannot be asserted against third parties including third party obligors unless notice of the creation of the pledge is given to third party obligors in accordance with the provisions of §467, or unless the third party obligors acknowledge the same.

§365  (Requirements for Perfection of Pledges over Debts Payable to Order)
If a pledge is created over debts payable to order, that pledge cannot be asserted against third parties unless the creation of the pledge is endorsed on the instrument of the same.

§366 (Collection of Claims by Pledgees)
(1) A pledgee may directly collect the claim that is the subject matter of the pledge.
(2) If monies are the subject matter of a pledged claim, the pledgee may collect the same to the extent of the portion that corresponds to the amount of the pledgee's own claim.
(3) If the due date of the pledged claim under Para 2 arrives prior to the due date of the claim of the pledgee, the pledgee may have the third party obligor deposit that amount to be paid to the pledgee.
In such cases, the pledge shall exist over the amount so deposited.
(4) If the subject matter of the pledged claim is not monies, the pledgee shall have the pledge over the Thing received as performance of the obligation.

Chapter 10 Mortgages
Section 1 General Provisions

§369
 (Content of Mortgages)
(1) A Mortgagee shall have the right to receive the performance of his claim prior to other obligees out of the immovable properties that the obligor or a third party provided to secure the obligation without transferring possession.
(2) Superficies and emphyteusis can be the subject matter of a mortgage.
In such cases, the provisions of this Chapter shall apply mutatis mutandis.

§370 (Scope of Effect of Mortgages)
A mortgage shall extend to the Things that is an integral part of immovable properties that is the subject matter of the mortgage ("Mortgaged Immovable Properties") except for buildings on the mortgaged land; provided, however, that this shall not apply in cases where the act establishing the mortgage provides otherwise or the obligee can rescind the act of the obligor in accordance with the provisions of §424.

§371 (Scope of Effect of Mortgages)
If there is a default with respect to a claim secured by a mortgage, the mortgage shall extend to the fruits of the Mortgaged Immovable Properties derived after the default.

§372 (Mutatis Mutandis Application of Provisions on Right of Retention)
The provisions of §296, §304 and §351 shall apply mutatis mutandis to mortgages.

Section 2 Effect of Mortgages

§373 (Order of Priority of Mortgages)
If more than one mortgage is created with respect to the same immovable properties, the order of priority of those mortgages shall follow the chronological order of their registration.

§374 (Changes in Order of Priority of Mortgages)
(1) The order of priority of mortgages may be changed with the agreement of all mortgagees; provided, however, that, if there are interested persons, the consent of the same must be obtained.
(2) The changes in order under Para 1 shall not take effect unless registered.

§375 (Scope of Secured Claims under Mortgages)
(1) If mortgagees have rights to demand periodic payments including interest, they may exercise their mortgages solely with respect to payments that have fallen due in the most recent two years; provided, however, that, if special registration is effected with respect to prior periodical payments that have fallen due, the mortgagees shall not be precluded from exercising their mortgages as from the time of that registration.
(2) In cases where mortgagees have rights to demand the compensation for damages resulting from defaults in obligations, the provisions of the preceding paragraph shall apply mutatis mutandis to the damages of the most recent two years; provided, however, that the aggregate period including the interest and other periodical payments may not exceed two years.

§376 (Disposition of Mortgages)
(1) A mortgagee may apply his mortgage to secure other claims, or assign or waive his mortgage, or its order of priority, for the benefit of other obligees of the same obligor.
(2) In the cases provided for in Para 1, if a mortgagee disposes of his mortgage for the benefit of two or more persons, the order of priority of the rights of persons who receive the benefit of that disposition shall follow the chronological order noted in the registration of the mortgage.

§377 (Requirements for Perfection of Disposition of Mortgages)
(1) In the cases in §376, in accordance with the provisions of §467, mortgagees cannot assert the disposition of mortgages against principal obligors, guarantors, mortgagors or their respective successors unless the disposition is notified to the primary obligors or the principal obligors acknowledge that disposition.
(2) If the principal obligors have received the notice or given acknowledgement under the provisions of Para 1, performance effected without the approval of the persons who receive the benefit of the disposition of mortgages cannot be asserted against those beneficiaries.

§378 (Payment of Mortgage Proceeds)
If a third party who purchases the ownership or superficies of Mortgaged Immovable Properties pay the price of the same to the relevant mortgagee at the request of the mortgagee, the mortgage shall be extinguished for the benefit of that third party.

§379 (Claims for Extinction of Mortgages)
A third party acquirer of Mortgaged Immovable Properties may make a claim for the extinction of a mortgage as prescribed in §383.

§380 (Claims for Extinction of Mortgages)
No primary obligor, guarantor or successor of the same may make a claim for the extinction of a mortgage.

§381 (Claims for Extinction of Mortgages)
A third party acquirer of Mortgaged Immovable Properties that is subject to a condition precedent may not make a claim for the extinction of a mortgage whilst whether or not the condition precedent is satisfied and is still undetermined.

§382 (Timing of Claims for Extinction of Mortgages)
A third party acquirer of Mortgaged Immovable Properties must make a claim for the extinction of a mortgage before attachment by auction as a result of the execution of the mortgage takes effect.

§383 (Procedures for Claims for Extinction of Mortgages)
If a third party acquirer of Mortgaged Immovable Properties intends to make a claim for the extinction of a mortgage, he must send the documents listed below to each registered obligee:
(i) A document that specifies the cause and date of the acquisition, the name and address of the assignor and the acquirer, the nature, location and price of the Mortgaged Immovable Properties and burdens of the acquirer;
(ii) A certificate of registered matters regarding the Mortgaged Immovable Properties (limited to certificates certifying all registered matters currently in effect); and
(iii) A document to the effect that, if the obligee does not file a petition for auction by executing the mort- gage w/i 2 months, the third party acquirer of the immovable properties will pay or deposit the price provid- ed for in Item (i) or an amount specifically designated in accordance with the order of priority of claims.

§384 (Deemed Approval of Obligees)
In the cases listed below, obligees who have received the documents listed in each item of §383 shall be deemed to have approved the price or amount that the third party acquirer of Mortgaged Immovable Properties has offered as stated in the document listed in §383 (iii):
(i) If the obligee does not file a petition for auction by executing the mortgage within 2 months after receipt of the documents listed in each item of §383;
(ii) If the obligee withdraws a petition under Item (i);
(iii) If a ruling dismissing a petition under Item (i) has become final and binding; or
(iv) If a ruling rescinding auction procedures based on a petition under Item (i) (excluding rulings under the provisions of §63 (3) or §68-3 (3) of the Civil Execution Act applied m/mutandis under §188 of the same act, or under the provisions of §183 (2) of the same Act in cases where the certified copy under §183 (1)(v) is provided) has become final and binding.

§385 (Notice of Petitions for Auction)
If an obligee who has received the documents listed in each item of §383 files a petition under §384 (i), he must give notice to such effect to the obligor and assignor of the Mortgaged Immovable Properties within the period under that item.

§386 (Effect of Claims for Extinction of Mortgages)
A mortgage shall be extinguished if all registered obligees approve the price or amount offered by the third party acquirer of the Mortgaged Immovable Properties , and the third party acquirer of the Mortgaged Immovable Properties has paid or deposited the price or amount approved.

§387  (Perfection of Leases with Registered Consent of Mortgagees)
(1) If all persons holding mortgages, the registrations of which precede the registration of a lease, give their consent, and such consents are registered, the lease so registered can be asserted against those mortgagees who gave their consent.
(2) For a mortgagee to give the consent under Para 1, the approval of the persons who hold rights for which the mortgage is the object and other persons who will suffer detriment as a result of the consent of the mortgagee must be obtained.

§388 (Statutory Superficies)
In cases where land and a building on the land belong to the same owner, if a mortgage is created with respect to that land or building, and the execution of that mortgage results in the creation of different owners, it shall be deemed that a superficies has been created with respect to that building.
In such cases, the rent shall be fixed by the court at the request of the parties.

§389 (Auction of Buildings on Mortgaged Lands)
(1) If a building is constructed on mortgaged land after the creation of a mortgage, the mortgagee may auction the building together with the land; provided, however, that his right of priority may be exercised solely against the proceeds of the land.
(2) The provisions of Para 1 shall not apply in cases where the owner of that building has rights with respect to the possession of the mortgaged land that can be asserted against the mortgagee.

§390  (Purchases of Mortgaged Immovable Properties by Third Party Acquirers)
A third party acquirer of Mortgaged Immovable Properties may be the purchaser at the auction of the same.

§391 (Claims for Reimbursement of Expenses by 3rd Party Acquirers of Mortgaged Immovable Properties)
If a third party acquirer of Mortgaged Immovable Properties has incurred necessary or beneficial expenses with respect to the Mortgaged Immovable Properties, he shall be entitled to obtain reimbursement of the same out of the proceeds of the Mortgaged Immovable Properties prior to other obligees, in accordance with the distinctions in §196.

§392 (Distribution of Proceeds in cases of Joint Mortgage)
(1) In cases where an obligee holds mortgages on several immovable properties to secure the same claim, if the proceeds of those immovable properties are to be distributed simultaneously, the obligee shall divide the burden of the claim in proportion to the value of each immovable property.
(2) In cases where an obligee holds mortgages on several immovable properties to secure the same claim,
if the proceeds from a particular immovable property alone are to be distributed, the mortgagee may receive the payment of his entire claim out of those proceeds.
In such cases, subordinated mortgagees may exercise their mortgages in subrogation of that mortgagee,
up to the amount that that mortgagee who receives payment would otherwise be entitled to receive from the proceeds of other immovable properties, in accordance with the provisions of Para 1.

§393 (Note in Registration of Subrogation in case of Joint Mortgages)
A person who exercises a mortgage by way of subrogation under the provisions of the second sentence of §392 (2) may note his subrogation in the registration of that mortgage.

§394 (Payment from Assets other than Mortgaged Immovable Properties)
(1) A mortgagee may receive payment from assets other than the Mortgaged Immovable Properties, limited to the extent of the portion of his claim not paid from the proceeds of that Mortgaged Immovable Properties.
(2) The provisions of Para 1 shall not apply to cases where the proceeds of other assets are to be distributed prior to the proceeds of the Mortgaged Immovable Properties.
In such cases, each other obligee may demand that the amount to be distributed to the mortgagee be deposited in order to have the mortgagee receive payment under the provisions of that paragraph.

§395 (Suspension of Delivery by Users of Mortgaged Buildings)
(1) Any person who uses or receives profits from a building subject to a mortgage by virture of a lease that cannot be asserted against the mortgagee, and who is listed as follows ("Mortgaged Building User") shall not be required to deliver that building to the purchaser thereof until 6 months have elapsed from the time when the purchaser purchased that building at auction:
(i) A person who has been using or receiving profits from the building since prior to the commencement of auction procedures; or
(ii) A person who is using or receiving profits from the building by virtue of a lease given after the commencement of auction procedures by the administrator of compulsory administration or execution against profits from secured immovable properties.
(2) The provisions of Para 1 shall not apply in cases where the purchaser issues a notice to the Mortgaged Building User demanding payment of consideration for a period of 1 month or more with respect to the use of the building in Para 1 that has occurred after the time of purchase by the purchaser, establishing a reasonable period, and no payment is made within that reasonable period.

Section 3 Extinction of Mortgages

§396 (Extinctive Prescription of Mortgages)
No mortgage shall be extinguished by prescription in relation to obligors and mortgagors unless it is extinguished simultaneously with the claim the mortgage secures.

§397  (Extinction of Mortgages by Acquisition by Prescription of Mortgaged Immovable Properties)
If a person who is neither an obligor nor a mortgagor has possessed the Mortgaged Immovable Properties in complete conformity with the requirements for acquisitive prescription, the mortgage shall be extinguished thereby.

§398 (Renouncement of Mortgaged Superficies)
Even if a holder of superficies or an emphyteuta who created mortgage on his superficies or emphyteusis renounces his rights, the renouncement cannot be asserted against the mortgagee.

Section 4 Revolving Mortgages

§398-2 (Revolving Mortgages)
(1) Mortgages may be created, by an establishing act, in order to secure unspecified claims of a certain scope, up to the limit of a maximum amount.
(2) The scope of the unspecified claims to be secured by the mortgage under the provisions of Para 1 (hereinafter referred to as "Revolving Mortgage") must be prescribed by limiting the scope to claims arising from specific contracts with the obligor for continuous transactions or other claims arising from certain kinds of transactions with the obligor.
(3) Claims that accrue continuously with the obligor pursuant to a specific cause, or claims on negotiable instruments or checks may be treated as claims that are to be secured by a Revolving Mortgage, notwith- standing the provisions of Para 2.

§398-3 (Scope of Secured Claims under Revolving Mortgages)
(1) A revolving mortgagee may exercise his Revolving Mortgage up to the maximum amount with respect to all fixed payments of principal as well as periodical payments including interest and compensation for damages resulting from failure to perform obligations.
(2) In cases where a claim on a negotiable instrument or check acquired by way of causes other than the transactions with the obligor is treated as a claim to be secured by a Revolving Mortgage, if any of the following grounds exist, such Revolving Mortgage may be exercised only with respect to claims acquired before such grounds arose; provided, however, that even with respect to claims acquired after such grounds arose, the exercise of the Revolving Mortgage shall not be precluded as far as the claims were acquired without knowledge of those grounds:
(i) The suspension of payments by the obligor;
(ii) A petition for the commencement of bankruptcy procedures, the commencement of rehabilitation procedures, the commencement of reorganization procedures or the commencement for special liquidation with respect to the obligor; or
(iii) A petition for auction in relation to Mortgaged Immovable Properties or attachment for delinquent taxes.

§398-4  (Alterations in Scope of Secured Claims under Revolving Mortgages and of Obligors)
(1) The scope of the claims to be secured by a Revolving Mortgage may be altered if the alteration is effected before the principal is fixed. The same shall likewise apply with respect to alterations of obligors.
(2) In order to effect the alterations under Para 1, it is not required that the approval of third parties including subordinated obligees be obtained.
(3) If the alteration under Para 1 is not registered before the principal is fixed, it shall be deemed that such alteration was not effected.

§398-5 (Alterations in Maximum Amounts of Revolving Mortgages)
Alterations in the maximum amount of a Revolving Mortgage cannot be made unless the approval of the interested parties is obtained.

§398-6 (Provision of Date for Fixing Principal of Revolving Mortgage)
(1) With respect to the principal secured by a Revolving Mortgage, the date when the principal is to be fixed may be prescribed or changed.
(2) The provisions of §398-4 (2) shall apply mutatis mutandis to the cases under Para 1.
(3) The date under Para 1 must be within 5 years of the day when the date was prescribed or changed.
(4) If registration with respect to an alteration in the date under Para 1 is not effected before the old date, the principal secured shall be fixed on that old date.

§398-7 (Assignments of Secured Claims under Revolving Mortgages)
(1) A person who acquires a claim from a revolving mortgagee before the principal is fixed may not exercise the Revolving Mortgage with respect to such claim. The same shall likewise apply to a person who made payment for or on behalf of an obligor before the principal was fixed.
(2) If an obligation is assumed before the principal is fixed, the revolving mortgagee may not exercise his Revolving Mortgage with respect to the obligation of the person who assumes the obligation.
(3) If any novation due to a change of obligee or obligor is effected before the principal is fixed, the parties may not transfer the Revolving Mortgage to the obligations after the novation, notwithstanding the provisions of §518.

§398-8 (Inheritances of Revolving Mortgagees or Obligors)
(1) If an inheritance of a revolving mortgagee commences before the principal is fixed, the Revolving Mortgage shall secure the claims that exist at the time of the commencement of the inheritance and shall otherwise secure claims the heir prescribed by agreement between the heirs and the revolving mortgagor acquires after the commencement of the inheritance.
(2) If an inheritance of an obligor commences before the principal is fixed, the Revolving Mortgage shall secure the obligations that exist at the time of the commencement of the inheritance and shall otherwise secure the claims that the heir prescribed by agreement between the revolving mortgagee and the revolving mortgagor assumes after the commencement of the inheritance.
(3) The provisions of §398-4 (2) shall apply mutatis mutandis to cases where an agreement is made under Para 1 & 2.
(4) If the agreements under Para 1 & 2 are not registered within 6 months of the commencement of the inheritance, principal secured shall be deemed to have been fixed at the time of the commencement of the inheritance.

§398-9 (Mergers of Revolving Mortgagees or Obligors)
(1) If there is a merger with respect to a revolving mortgagee before the principal is fixed for that revolving mortgagee, the Revolving Mortgage shall secure the claims that exist at the time of the merger and shall otherwise secure claims that a juridical person that survives the merger or a juridical person that is incorporated by the merger acquires after the merger.
(2) If there is a merger with respect to an obligor before the principal is fixed for that obligor, the Revolving Mortgage shall secure the obligations that exist at the time of the merger and shall otherwise secure the obligations that a juridical person that survives the merger or a juridical person that is incorporated by the merger assumes after the merger.
(3) In the cases provided for in Para 1 & 2, the revolving mortgagor may demand that the principal secured be fixed; provided, however, that this shall not apply, in the cases provided for in Para 2, if the relevant obligor is the revolving mortgagor.
(4) If a demand is made in accordance with the provisions of Para 3, the principal secured shall be deemed to have been fixed at the time of the merger.
(5) The demand under the provisions of Para 3 may not be made if 2 weeks have elapsed since the day when the revolving mortgagor acquired knowledge of the merger.
The same shall apply if one month has elapsed from the day of the merger.

§398-10 (Company Splits of Revolving Mortgagees or Obligors)
(1) If, before the principal is fixed, a split in which the relevant revolving mortgagee is the company to be split is effected, the Revolving Mortgage shall secure the claims that exist at the time of the split and shall otherwise secure claims acquired after the split by the split company and the company incorporated by the split, or claims acquired after the split by the company that succeeded to some or all of the rights and obligations of the split company regarding its business.
(2) If, before the principal is fixed, a split in which the relevant obligor is the company to be split is effected, the Revolving Mortgage shall secure the obligations that exist at the time of the split and shall otherwise secure obligations that are assumed after the split by the split company and the company incorporated by the split, or claims acquired after the split by the company that assumed some or all of the rights and obligations of the split company regarding its business.
(3) The provisions of §398-9 (3) - (5) shall apply mutatis mutandis to cases under Para 1 & 2.

§398-11 (Disposition of Revolving Mortgages)
(1) Before the principal is fixed, a revolving mortgagee cannot dispose of a Revolving Mortgage under the provisions of §376 (1); provided, however, that he shall not be precluded from applying that Revolving Mortgage to secure other claims.
(2) The provisions of §377 (2) shall not apply to payments made before the principal is fixed in the cases provided for in the proviso to Para 1.

§398-12 (Assignments of Revolving Mortgages)
(1) Before the principal is fixed, a revolving mortgagee may assign a Revolving Mortgage, with the approval of the revolving mortgagor.
(2) A revolving mortgagee may divide his Revolving Mortgage into two Revolving Mortgages and assign either of the same in accordance with the provisions of Para 1.
In such cases, the rights for which that Revolving Mortgage is the subject matter shall be extinguished with respect to the Revolving Mortgage that was assigned.
(3) In order to effect an assignment under the provisions of Para 2, the approval of the person who holds the rights for which that Revolving Mortgage is the subject matter must be obtained.

§398-13 (Partial Assignments of Revolving Mortgages)
Before the principal is fixed, a revolving mortgagee may, with the approval of the revolving mortgagor, effect a partial assignment of the Revolving Mortgage (hereinafter referring to assignments of Revolving Mortgages that the assignor effects without dividing the Revolving Mortgage in order to co-own the same with the assignee).

§398-14 (Co-ownership of Revolving Mortgages)
(1) Co-owners of a Revolving Mortgage shall be paid in proportion to the amount of their respective claims; provided, however, that, if before the principal is fixed, a proportion other than the above is agreed, or if it is agreed that a certain person should be paid prior to the others, that agreement shall prevail.
(2) A co-owner in a Revolving Mortgage may, with the consent of the other co-owners, assign rights of the same in accordance with the provisions of §398-12 (1).

§398-15 (Assignments or Waivers of Order of Priority of Mortgages and Assignments or Partial Assignments of Revolving Mortgages)
If a revolving mortgagee who has accepted an assignment or waiver of the order of priority of a mortgage has assigned or partially assigned his Revolving Mortgage, the assignee shall receive the benefit of the assignment or waiver of that order of priority.

§398-16 (Joint Revolving Mortgages)
The provisions of §392 & §393 shall apply with respect to Revolving Mortgages, limited to cases where, simultaneously with the establishment of the same, it is registered that a Revolving Mortgage has been established on several immovable properties to secure the same claim.

§398-17 (Alterations of Joint Revolving Mortgages)
(1) An alteration in the scope, obligors or maximum amount of the claims to be secured, or assignment or partial assignment of the Revolving Mortgages for which registration is effected in accordance with the preceding article shall not take effect unless registration is effected with respect to all immovable properties over which that Revolving Mortgages are established.
(2) The principal that is to be secured by the Revolving Mortgages for which the registration under §398-16 is effected shall be fixed even where grounds that would fix the same with respect to one immovable property alone arise.

§398-18 (Aggregate Revolving Mortgages)
A person who has Revolving Mortgages on several immovable properties may exercise his right of priority with respect to the proceeds of each immovable property up to the respective maximum amounts, except for cases provided for in §398-16.

§398-19 (Requests for Fixing of Principal of Revolving Mortgages)
(1) If 3 years have elapsed from the time of the creation of a Revolving Mortgage, the revolving mortgagor may request the fixing of the principal secured. In such cases, the principal secured shall be fixed when 2 weeks have elapsed since the time of that request.
(2) A revolving mortgagee may request the fixing of the principal secured at any time.
In such cases, the principal secured shall be fixed on the request of the same.
(3) The provisions of Para 1 & 2 shall not apply in cases where the date on which the principal secured is to be fixed is prescribed.

§398-20 (Grounds for Fixing of Principal of Revolving Mortgages)
(1) The principal secured by a Revolving Mortgage shall be fixed in the following cases:
(i) If the revolving mortgagee has filed, with respect to the Mortgaged Immovable Properties, a petition for auction or execution against profits from secured immovable properties or the attachment under the provisions of §304 cited in §372; provided, however, that this provision shall apply only in cases where the commencement of either auction procedures or execution procedures against secured immovable properties to realize profits, or an attachment has been effected;
(ii) If the revolving mortgagee has effected an attachment for delinquent taxes against the Mortgaged Immovable Properties;
(iii) If 2 weeks have elapsed from the time when the revolving mortgagee acquired knowledge of the commencement of auction procedures or attachment for delinquent taxes against the Mortgaged Immovable Properties; or
(iv) If the obligor or revolving mortgagor has become subject to a ruling for the commencement of bankruptcy procedures.
(2) If the effect of the commencement of auction procedures, the attachment under Para (1) (iii) or the ruling to commence bankruptcy procedures under Para (1) (iv) has been extinguished, it shall be deemed that the principal secured was not fixed; provided, however, that this shall not apply if any person has acquired that Revolving Mortgage or a right for which the Revolving Mortgage is the subject matter on the assumption that the principal was fixed.

§398-21  (Requests for Reductions in Maximum Amount of Revolving Mortgages)
(1) After the principal is fixed, the revolving mortgagor may request a reduction in the maximum amount of that Revolving Mortgage, to the amount of the obligations actually in existence plus the amount of the periodical payments including interest and the amount of damages due to default in obligations that will arise in the following two years.
(2) As to reductions in the maximum amount of Revolving Mortgages for which registration under Article 398-16 has been effected, the request under Para 1 shall be sufficient if made with respect to one of those immovable properties.

§398-22 (Requests for Extinction of Revolving Mortgages)
(1) If the amount of the obligations actually in existence after the principal is fixed exceeds the maximum amount of the Revolving Mortgage, a person who created his Revolving Mortgage to secure obligations of others or a third party who acquired ownership, superficies, emphyteusis or a lease that can be asserted against any third party with respect to the Mortgaged Immovable Properties, may request the extinction of that Revolving Mortgage by tendering or depositing an amount equivalent to that maximum amount.
In such cases, that tender or deposit shall have the effect of payment.
(2) Revolving Mortgages for which registrations are effected under §398-16 shall be extinguished if the request for extinction in accordance with Para 1 is made with respect to one immovable property.
(3) The provisions of §380 & §381 shall apply mutatis mutandis to the requests for extinction under Para 1.

Part III Claims
Chapter I General Provisions
Section I Subject of Claim

§399
 (Subject of Claim)
Even a matter that cannot be given an estimated monetary value may be the subject of a claim.

§400 (Duty of Care in cases of Delivery of Specified Things)
If the subject of a claim is the delivery of any specified things, the obligor must take custody of such property with due care of a prudent manager until the completion of such delivery.

§401 (Fungible Claim)
(1) In cases the subject of the claim is specified only with reference to a type and if the quality of such property cannot be identified due to the nature of the juristic act or intention of the relevant party(ies), the obligor must deliver the property of intermediate quality.
(2) In the case set forth in Para 1, if the obligor has completed the acts necessary to deliver the Thing, or has identified the Thing he is to deliver with the consent of the obligee, such Thing shall thenceforth constitute the subject of the claim.

§402 (Monetary Claim)
(1) If the subject of the claim is money, the obligor may, at his choice, make the payment in currency of any kind; provided, however, that, this shall not apply to the cases where the delivery of specific kind of currency is identified as the subject of the claim.
(2) If the specific kind of currency that is the subject of the claim is no longer in mandatory circulation at the time of the payment, the obligor must make payment in other currency.
(3) The provisions of Para 1 & 2 shall apply mutatis mutandis to the cases where the delivery of the currency of a foreign state is the subject of the claim.

§403 (Monetary Claim in Foreign Currency)
When the amount of the claim is specified in the currency of a foreign state, the obligor may make the pay- ment in the legal currency of Japan using the foreign exchange rate current in the place of the performance.

§404 (Statutory Interest Rate)
Unless the parties otherwise manifest their intention with respect to a claim which bears interest,
the rate of such interest shall be 5% per annum.

§405 (Incorporation of Interest into Principal)
In cases the payment of interest corresponding to 1 year or more is delayed, and if the obligor does not pay such interest notwithstanding the demand by the obligee, the obligee may incorporate such interest into the principal.

§406 (Attribution of Right of Choice in cases of Alternative Obligation)
If the subject of the claim is to be identified by way of choice among more than one performance, the right to make the choice shall vest in the obligor.

§407 (Exercise of Right of Choice)
(1) The right of choice under §406 shall be exercised by manifesting the intention to the counterparty.
(2) The manifestation of intention set forth in Para 1 may not be revoked without the acknowledgment of the counterparty.

§408 (Transfer of Right of Choice)
In cases a claim is due and, notwithstanding a demand by the counterparty stipulating a reasonable period of time, the party who holds the right of choice does not exercise the right within such period of time, the right of choice shall be transferred to the counterparty.

§409 (Right of Choice of Third Party)
(1) In cases a third party holds the right of choice, such choice shall be made by manifesting its intention to either the obligee or the obligor.
(2) In the case prescribed in Para 1, if the third party is unable to make the choice or has no intention to make the choice, the right of choice shall be transferred to the obligor.

§410 (Identification of Alternative Obligation due to Impossibility)
(1) If any performance which is included in the subject of a claim is impossible from the beginning, or later becomes impossible, the claim shall exist to the extent of the performance which still remains.
(2) If any performance has become impossible due to the negligence of any party who does not have any right of choice, the provision of Para 1 shall not apply.

§411 (Effect of Choice)
The choice shall become effective retroactively as of the time of the accrual of the claim; provided, however that this shall not prejudice the rights of a third party.

Section II Effect of Claims
Subsection I Responsibility for Default

§412
 (Time for Performance and Delay in Performance)
(1) If any specified due date is assigned to the performance of an obligation, the obligor shall be responsible for the delay on and after the time of the arrival of such time limit.
(2) If any unspecified due date is assigned to the performance of a claim, the obligor shall be responsible for the delay on and after the time when he becomes aware of the arrival of such time limit.
(3) If no time limit is assigned to the performance of an obligation, the obligor shall be responsible for the delay on and after the time he receives the request for performance.

§413 (Obligee's Delay in Acceptance)
If the obligee refuses, or is unable, to accept the tender of the performance of any obligation, the relevant obligee shall be responsible for the delay on and after the time of the tender of the performance.

§414 (Enforcement of Performance)
(1) If an obligor voluntarily fails to perform any obligation, the obligee may request the enforcement of specific performance from the court; provided, however, that, this shall not apply where the nature of the obligation does not permit such enforcement.
(2) In cases the nature of the obligation does not permit the enforcement of the specific performance, if it is an obligation for an act, the obligee may request the court to cause a third party to perform such act at the expense of the obligor; provided, however, that with respect to any obligation for any juristic act, the manifestation of intention of the obligor may be achieved by a judgment.
(3) With respect to any obligation for an inaction, a request may be made to the court at the expense of the obligor seeking the removal of the outcome of the action performed by the obligor, or an appropriate ruling against any future action.
(4) The provisions of Para 1-3 shall not preclude demanding damages.

§415 (Damages due to Default)
If an obligor fails to perform consistent with the purpose of its obligation, the obligee shall be entitled to demand damages arising from such failure. The same shall apply in cases it has become impossible to perform due to reasons attributable to the obligor.

§416 (Scope of Damages)
(1) The purpose of the demand for the damages for failure to perform an obligation shall be to demand the compensation for damages which would ordinarily arise from such failure.
(2) The obligee may also demand the compensation for damages which arise from any special circumstances if the party did foresee, or should have foreseen, such circumstances.

§417 (Method of Compensation for Damages)
Unless other intention is manifested, the amount of the damages shall be determined with reference to monetary value.

§418 (Comparative Negligence)
If the obligee is negligent regarding the failure of performance of the obligation, the court shall determine the liability for damages and the amount thereof by taking such elements into consideration.

§419  (Special Provisions for Monetary Debt)
(1) The amount of the damages for failure to perform any obligation for the delivery of any money shall be determined with reference to the statutory interest rate; provided, however, that, in cases the agreed interest rate exceeds the statutory interest rate, the agreed interest rate shall prevail.
(2) The obligee shall not be required to prove his damages with respect to the damages set forth in Para 1.
(3) The obligor may not raise the defense of force majeure with respect to the damages referred to in Para 1.

§420 (Liquidated Damages)
(1) The parties may agree on the amount of the liquidated damages with respect to the failure to perform the obligation. In such case, the court may not increase or decrease the amount thereof.
(2) The liquidated damages shall not preclude the demand for performance or the exercise of the cancellation right.
(3) Any penalty is presumed to constitute liquidated damages.

§421 (Liquidated Damages)
The provisions of §420 shall apply mutatis mutandis to the cases where the parties agree in advance to allocate anything other than money to the compensation for damages.

§422 (Subrogation for Damages)
If an obligee receives the full value of any Thing or right which is the subject of the claim as the compensation for damages, the obligor shall be subrogated to the creditor in relation to such property or right by operation of law.

Subsection II Obligee's Subrogation Right and Obligee's Right to Demand Rescission of Fraudulent Act

§423 (Obligee's Subrogation Right)
(1) An obligee may exercise the right vested in the obligor in order to preserve his own claim;
provided, however, that, this shall not apply to rights which are exclusive and personal to the obligor.
(2) Until exercised by way of subrogation admitted in a judicial proceeding, the obligee may not exercise the right set forth in Para 1 unless and until his claim has become due; provided, however, that, this shall not apply to any act of preservation.

§424 (Obligee's Right to Demand the Rescission of Fraudulent Act)
(1) An obligee may demand the court to rescind any juristic act which an obligor commits knowing that it will prejudice the obligee; provided, however, that, this shall not apply to the cases where any person who benefits from such act, or any person who succeeds to such benefit, did not know, at the time of such act or succession, the fact that the obligee is to be prejudiced.
(2) The provision of Para 1 shall not apply to a juristic act with a subject other than property rights.

§425 (Effect of Rescission of Fraudulent Act)
The rescission pursuant to the provision of §424 shall have an effect for the benefit of all obligees.

§426 (Limitation Period of Obligee's Right to Rescind Fraudulent Act)
The right to rescind pursuant to the provision of §424 shall be extinguished by operation of prescription if not exercised within 2 years from the time that the obligee acquired knowledge of the cause of the rescission. The same shall apply if 20 years pass from the time of the act.

Section III Claims and Obligations of Multiple-Parties
Subsection I General Provisions

§427
 (Divisible Claims and Divisible Obligations)
In cases there are more than one obligee or obligor, unless any other intention is manifested, each obligee or each obligor shall have the equally proportionate rights or obligations.

Subsection II Indivisible Claims and Indivisible Obligations

§428 (Indivisible Claim)
In cases the subject of a claim is indivisible by its nature or due to the manifestation of intention of the parties involved, if there are more than one obligees, each obligee may demand the performance for the benefit of all obligees, and the relevant obligor may tender its performance to each obligee for the benefit of all obligees.

§429 (Effect of Circumstances on Particular Circumstance which Arises with respect to One Indivisible Obligee)
(1) Even in cases where there is a novation or release between one indivisible obligee and the obligor, other indivisible obligee(s) may request the obligor to tender the entire performance. In such cases, the benefit which would have been allocated to the above-mentioned one indivisible obligee if he did not lose his right must be reimbursed to the relevant obligor.
(2) Other than as prescribed in Para 1, any act of one indivisible obligee, or any circumstance which arises with respect to one indivisible obligee shall not have any effect on the other indivisible obligee(s).

§430  (Indivisible Obligation)
The provisions of §429, and the provisions of the following Subsection III (Joint and Several Obligation) (excluding the provisions of §434 to §440 inclusive) shall apply mutatis mutandis to the cases where more than one person bears any indivisible obligation.

§431 (Changing into Divisible Claims or Divisible Obligations)
If any indivisible claim becomes a divisible claim, each obligee may request the performance only to the extent of such portion of the claim on which he has his own right, and if any indivisible obligation becomes a divisible obligation, each obligor shall bear his responsibility only to the extent of the portion of the obligation which he bears.

Subsection III Joint and Several Obligations

§432 (Request for Performance)
If more than one person bears a joint and several obligation, the obligee may request one of the joint and several obligors, or all of such joint and several obligors, simultaneously or successively, to perform the obligation, in whole or in part.

§433  (Invalidity of Juristic Act with respect to One Joint and Several Obligor)
Even if there are any grounds for the voidance or rescission of a juristic act with respect to only one joint and several obligor, the validity of the obligation(s) of other joint and several obligor(s) shall not be impaired.

§434 (Request for Performance to One Joint and Several Obligor)
A request for performance made to one joint and several obligor shall also be effective with respect to other joint and several obligor(s).

§435 (Novation with One Joint and Several Obligor)
If there is any novation between one joint and several obligor and the obligee, the claim shall be extinguished for the benefit of all joint and several obligors.

§436 (Setoffs by One Joint and Several Obligor)
(1) In cases one joint and several obligor has a claim vis-a-vis the obligee, if such joint and several obligor invokes a setoff, the claim shall be extinguished for the benefit of all joint and several obligors.
(2) So long as the joint and several obligor who has the claim set forth in Para 1 does not invoke the set-off, other joint and several obligor(s) may invoke the set-off solely to the extent of the portion of the obligation which is borne by such joint and several obligor.

§437 (Releases of One Joint and Several Obligor)
A release of an obligation effected for one joint and several obligor shall also be effective for the benefit of other joint and several obligor(s) solely to the extent of the portion of the obligation which is borne by such joint and several obligor.

§438 (Merger with One Joint and Several Obligor)
If there is any merger between one joint and several obligor and the relevant obligee, it is deemed that such joint and several obligor has performed his obligation.

§439  (Completion of Prescription with respect to One Joint and Several Obligor)
If the prescription is completed with respect to one joint and several obligor, the other joint and several obligors also shall be relieved of liability to the extent of the portion of the obligation which is borne by such joint and several obligor.

§440 (Principle of Relative Effect)
Except as set forth in§434 to §439 inclusive, any circumstance which arises with respect to one joint and several obligor shall be void vis-a-vis other joint and several obligor(s).

§441  (Commencement of Bankruptcy Procedures for Joint and Several Obligors)
When some or all of the joint and several obligors have become subject to the ruling of the commencement of bankruptcy procedures, the obligee may participate in the distribution of each bankruptcy estate with respect to the entire amount of his claim.

§442 (Right to Obtain Reimbursement among Joint and Several Obligors)
(1) If one joint and several obligor performs the obligation, or has otherwise acquired any common discharge in exchange for his own property, such joint and several obligor shall have right to obtain reimbursement from other joint and several obligors to the extent of the respective portion of the obligations which is borne by each of other joint and several obligors.
(2) The reimbursement pursuant to the provision of Para 1 shall include the compensation of the statutory interest which accrue on or after the day of the performance of the obligation or other discharge, any unavoidable expenses, and other damages.

§443 (Limitation on Reimbursement to Joint and Several Obligor who Failed to give Notice)
(1) When one joint and several obligor performs his obligation or has otherwise acquired any common discharge in exchange for his own property without giving to the other joint and several obligor(s) a notice that there was the request for the performance from the relevant obligee, if any of the other joint and several obligor(s) has any defense vis-a-vis the obligee, such joint and several obligor may raise such defense vis-a-vis the joint and several obligor who acquired the discharge to the extent of the portion of the obligation which is borne by himself. In such case, if any defense vis-a-vis the joint and several obligor who acquired the discharge is raised on the grounds of set-off, the negligent joint and several obligor may request the relevant obligee to perform the obligation which should have been extinguished due to set-off.
(2) When one joint and several obligor performs the obligation or has otherwise acquired any common discharge in exchange for his own property and has failed to give notice of such fact to other joint and several obligor(s), and as a result of such failure, any other joint and several obligor acquires discharge by performing the obligation or otherwise in exchange for an act performed for consideration without knowledge, the joint and several obligor who was so discharged shall be entitled to regard his act to perform or other act to acquire the discharge as effective.

§444  (Allocation of Portion of Person who does not have Sufficient Financial Resources for Reimbursement)
If there is any person among the joint and several obligors who does not have the sufficient financial resources to make the reimbursement, the portion that cannot be reimbursed shall be borne among the person(s) who demand(s) the reimbursement and other person(s) who has the financial resources, in proportion to the respective portion which is borne by each of such persons; provided, however, that the person who requests the reimbursement may not demand other joint and several obligor(s) to bear the burden if he is negligent.

§445 (Release from Joint and Several Obligations and Allocation of Portion of Burden of Person who does not have Sufficient Financial Resources to Pay)
In cases any one joint and several obligor is released from the joint and several obligation, if there is any person among other joint and several obligors who does not have the sufficient financial resources to pay the obligation, the obligee shall bear such portion of the obligation which may not be performed by such person without sufficient financial resources as should have been borne by the person who was released from the joint and several obligation.

Subsection IV Guarantee Obligation
Division I General Provisions

§446
 (Responsibility of Guarantor)
(1) A guarantor shall have the responsibility to perform the obligation of the principal obligor when the latter fails to perform such obligation.
(2) No contract of guarantee shall be effective unless it is made in writing.
(3) If a contract of guarantee is concluded by electromagnetic record which records the contents thereof, the contract of guarantee is deemed to be made in writing, and the provision of Para 2 shall apply.

§447 (Scope of Guarantee Obligation)
(1) The guarantee obligation shall include interest, penalty and compensation for damages in connection with the principal obligation, and all other charges incidental to such obligation.
(2) A guarantor may stipulate the amount of penalty or compensation for damages with regard to his own guarantee obligation only.

§448  (Cases where Burden of Guarantor is More Onerous than That of the Principal Obligor)
If the burden of a guarantor is more onerous than that of the principal obligor as to either its subject or its terms, it shall be reduced to the extent of the principal obligation.

§449 (Guarantee of Rescindable Obligation)
If a guarantor, who has guaranteed an obligation which may be rescinded by reason of the principal obligor's limited capacity to act, was aware, at the time of entering into a contract guarantee, of the cause for its voidability, such guarantor shall be presumed to have assumed an independent obligation of the same subject in the event of nonperformance by the principal obligor or rescission of the obligation.

§450 (Requirements for Guarantor)
(1) Where an obligor has the obligation to furnish a guarantor, such guarantor must:
(i) be a person with capacity to act; and
(ii) have sufficient financial resources to pay the obligation.
(2) If the guarantor ceases to meet the requirement set forth in item (ii) of Para 1, the obligee may demand that some other person meeting the requirements listed in any item of such paragraph be substituted for such guarantor.
(3) The provisions of Para 1 & 2 shall not apply in the case the obligee has designated the guarantor.

§451 (Providing Other Security)
If the obligor is unable to furnish a guarantor meeting the requirements listed in any item of §450 (1),
he may furnish other security in lieu thereof.

§452 (Defense of Demand)
If an obligee has demanded performance of an obligation from the guarantor, the guarantor may demand the obligee to demand performance of the principal obligor first; provided, however, that, this shall not apply to the cases where the principal obligor has received a ruling for the commencement of bankruptcy procedures or where his whereabouts are unknown.

§453 (Defense of Reference)
Even after the obligee has made a demand to the principal obligor in accordance with the provision of §452, the obligee must first execute on the property of the principal obligor if the guarantor has proved that the principal obligor has the financial resource to pay his obligation and that the execution would be easily performed.

§454 (Special Provisions for Joint and Several Guarantee)
If a guarantor has assumed an obligation jointly and severally with the principal obligor, the guarantor shall not have the rights set forth in §452 & §453.

§455 (Effect of Defense of Demand and Defense of Reference)
Where demand has been made or proof has been given by a guarantor pursuant to the provisions of §452 or §453, if the obligee fails to demand or to levy execution and is subsequently unable to obtain full perform- ance from the principal obligor, the guarantor shall be relieved of liability to the extent that the obligee would have received performance if the obligee had immediately demanded or levied execution.

§456 (Cases where Several Guarantors Exist)
Where there is more than one guarantor for a single obligation, the provision of §427 shall apply even if they have assumed their obligations by separate acts.

§457  (Effect of Circumstance which Arises with respect to the Principal Obligor)
(1) The nullification of prescription by operation of a demand vis-a-vis the principal obligor or on any other grounds shall also be effective vis-a-vis the guarantor.
(2) A guarantor may raise a defense vis-a-vis the obligee by setting off any claim which the principal obligor may have vis-a-vis the obligee.

§458  (Effect of Circumstance which Arises with respect to Jointly and Severally Liable Guarantor)
The provisions of §434 to §440 inclusive shall apply mutatis mutandis to the cases where the principal obligor assumes an obligation jointly and severally with the guarantor.

§459  (Right to Obtain Reimbursement of Guarantor Entrusted by the Principal Obligor)
(1) In cases where a guarantor has given a guarantee as entrusted by the principal obligor, if he has, with- out negligence, had a judgment ordering him to perform the obligation to the obligee, or has performed the obligation on behalf of the principal obligor, or has otherwise in exchange for his own property performed any other act intended to cause the obligation to be extinguished, such guarantor shall have a right to obtain reimbursement from the principal obligor.
(2) The provision of §442 (2) shall apply m/mutandis to the cases set forth in Para 1.

§460 (Entrusted Guarantor's Right to Obtain Reimbursem/t in Advance)
In cases where a guarantor has given a guarantee as entrusted by the principal obligor, the guarantor may exercise in advance his right to obtain reimbursement vis-a-vis the principal obligor if:
(i) the principal obligor is subject to a ruling for the commencement of bankruptcy procedures, and
the obligee does not participate in the distribution of the bankruptcy estate;
(ii) the obligation is due; provided, however, that, no extension of time granted by the obligee to the principal obligor after the conclusion of the contract of guarantee may be raised as a defense vis-a-vis the guarantor; and
(iii) 10 years have elapsed after the conclusion of the contract of guarantee in the cases where the time for performing the obligation is uncertain and even its maximum duration cannot be ascertained.

§461 (Cases where Principal Obligor Reimburses Guarantor)
(1) In cases where a principal obligor reimburses a guarantor pursuant to the provisions of §459 & §460, the principal obligor may demand the guarantor to provide security or to obtain the discharge of the principal obligor until and unless the obligee has received the full satisfaction of the entire obligation.
(2) In the case prescribed in Para 1, the principal obligor may be relieved of liability for reimbursement by making a deposit with an official depository, by providing security, or by procuring the discharge of the liabilities of the guarantor.

§462  (Right to Obtain Reimbursement of Guarantor Not Entrusted by Principal Obligor)
(1) If a person, who has become a guarantor without the entrustment of the principal obligor, has performed the obligation or has otherwise in exchange for his own property procured the release from liability of the principal obligor, the principal obligor must reimburse the guarantor to the extent that the principal obligor was enriched at the time of such performance of the obligation.
(2) A person who has become a guarantor against the will of the principal obligor shall have the right to obtain reimbursement only to the extent that the principal obligor is actually enriched.
In such case, if the principal obligor asserts that he had, prior to the day of the demand for reimbursement, grounds for set-off against the obligee, the guarantor may demand that the obligee perform the obligation which would have been extinguished by operation of such set-off.

§463 (Limitat/n on Reimbursem/t for Guarantor who Failed to give Notice)
(1) The provisions of §443 shall apply mutatis mutandis to a guarantor.
(2) In cases where a guarantor has become a guarantor as entrusted by the principal obligor, if he performed the obligation or otherwise in exchange for his own property performed any act to cause the obligation to be extinguished without knowledge, the provision of §443 shall apply m/mutandis also with respect to the principal obligor.

§464  (Right to Obtain Reimbursement of Guarantor for Jointly and Several Obligation or Indivisible Obligation)
A person who has become a guarantor for one of the jointly and several obligors or for one of the indivisible obligors shall have the right to obtain reimbursement from the other obligors only to the extent of such portion of the obligation which he bears.

§465 (Right of Joint Guarantors to Obtain Reimbursement for One Obligation)
(1) Where there are several guarantors, if one guarantor has paid the entire amount of the obligation or any amount exceeding the portion which is borne by such guarantor because the principal obligation is indivisible, or because there is a special provision that each guarantor should pay the entire amount, the provisions of §442 to §444 inclusive shall apply m/mutandis.
(2) Except in cases provided in Para 1, if one of the guarantors who are not jointly and severally liable has paid the entire amount or any amount exceeding the portion to be borne by that guarantor, the provisions of §462 shall apply m/mutandis.

Division II Revolving Guarantee on Loans

§465-2
  (Liability of Guarantor of Contract for Revolving Guarantee on Loans)
(1) A guarantor to a contract of guarantee the principal obligation of which is one or more unidentified obligations within a certain specified scope ("contract for revolving guarantee") whereby the scope of such obligation includes any obligation which is incurred as a result of the transaction of lending money or accepting discount of a negotiable instrument ("loan obligation," excluding any contract in which the guarantor is a juridical person, hereinafter "contract for revolving guarantee on loans") shall be liable for the satisfaction of the amount of the principal of the relevant principal obligation, interest, any penalty and damages in connection with such principal obligation, and all other amounts incidental to such obligation, as well as the amount of any penalty and damages which are agreed on with regard to such guarantee obligation, which liability shall be limited in aggregate, however, to a certain maximum amount which pertains to all of the above-mentioned amounts.
(2) A contract for RGL shall not be effective unless the maximum amount set forth in Para 1 is stipulated.
(3) The provisions of §446 (2) & (3) shall apply m/mutandis to the stipulation of a maximum amount in a contract for RGL provided in Para 1.

§465-3  (Principal Determination Date for Contract for Revolving Guarantee on Loans)
(1) In the cases where a contract for revolving guarantee on loans provides the date on which the principal of the principal obligation should be determined ("principal determination date"), if it is provided that such principal determination date shall fall on any day on and or after the day on which 5 years have elapsed after the day of the conclusion of the relevant contract for RGL, such provision for the principal determination date shall not be effective.
(2) In the cases where a contract for RGL does not provide a principal determina- tion date (including cases where the provision on the principal determination date is not effective pursuant to the provision of Para 1), the principal determination date thereof shall fall on the day on which 3 years have elapsed after the day of the conclusion of the relevant contract for RGL.
(3) In the cases where any change of the principal determination date provided in a contract for revolving guarantee on loans is to be effected, if the principal determination date as changed falls on a day on and or after the day on which 5 years have elapsed after the day of such change, such change of the principal determination date shall not be effective; provided, however, that, this shall not apply to the cases where the change of the principal determination date is effected within 2 months immediately preceding the principal determination date, and the principal determination date as changed falls on a day within 5 years from the original principal determination date.
(4) The provisions of §446 (2) & (3) shall apply mutatis mutandis to the provisions of a principal determin- ation date set forth in a contract for RGL and a change thereof (excluding any provision which provides to the effect that the principal determination date shall fall on a day within 3 years from the day of the conclusion of such contract for RGL, and any change which is intended to change the principal determination date to a day preceding the original principal determina- tion date).

§465-4 (Grounds for Determination of Principal in Contract for Revolving Guarantee on Loans)
The principal for the principal obligation under a contract for revolving guarantee on loans shall be determined if:
(i) an obligee has filed a petition for compulsory execution or exercise of any security interest with respect to a claim the subject- matter of which is payment of money on any property of the relevant principal obligor or guarantor; provided, however, that this provision shall apply only in cases where the proceedings for the compulsory execution or exercise of the security interest have been commenced;
(ii) the relevant principal obligor or guarantor has become subject to a ruling of the commencement of bankruptcy procedures; or
(iii) the relevant principal obligor or guarantor has died.

§465-5 (Right to Obtain Reimbursement in Contract for Revolving Guarantees for Loan Obligation in cases where is Juridical Person Guarantor)
In cases of a contract for revolving guarantee under which the guarantor is a juridical person and the scope of the principal obligation thereof includes an obligation on loans, if the maximum amount provided in §465-2 (1) is not provided, if the principal determination date is not specified, or if the provision on the determination date or any change thereof would not be effective should the provisions of §465-3 (1) or (3) be applied, a contract of guarantee with regard to the right to obtain reimbursement of the guarantor for the contract for revolving guarantee against the principal obligor (excluding cases where the guarantor is a juridical person) shall not be effective.

Section IV Assignment of Claims

§466 (Assignability of Claims)
(1) A claim may be assigned; provided, however, that, this shall not apply to the cases where its nature does not permit the assignment.
(2) The provisions of Para 1 shall not apply in cases where the parties have manifested their intention to the contrary; provided, however, that such manifestation of intention may not be asserted against a third party without knowledge.

§467  (Requirement for Assertion of Assignment of Nominative Claim against Third Parties)
(1) The assignment of a nominative claim may not be asserted against the applicable obligor or any other 3rd party, unless the assignor gives a notice thereof to the obligor or the obligor has acknowledged the same.
(2) The notice or acknowledgement set forth in Para 1 may not be asserted against a third party other than the obligor unless the notice or acknowledgement is made using an instrument bearing a fixed date.

§468 (Defense of Obligor upon Assignment of Nominative Claim)
(1) In the cases where the obligor has given the acknowledgement referred to in §467 without objection, even if there are grounds which could have been raised as a defense against the assignor, he may not raise such grounds as a defense against the assignee. In such case, if the obligor has paid any money or delivered anything or assumed a new obligation to or for the benefit of the assignor to obtain the extinction of his obligation, the obligor may recover the money paid or other thing delivered, or may deem that the new obligation had not been assumed, as the case may be.
(2) In cases where the assignor has merely given notice of the assignment, the obligor may raise any ground as a defense against the assignee which accrues vis-a-vis the assignor before he receives such notice as a defense against the assignee.

§469  (Requirement for Assertion of Assignment of Debt Payable to Order against Third Parties)
The assignment of any debt payable to order may not be asserted against the relevant obligor or any other third party unless the certificate representing such claim is tendered to the assignee with the endorsement of the relevant assignment.

§470 (Examination Right of Obligor of Debt Payable to Order)
The obligor of any debt payable to order shall have the right, but not the obligation, to examine the authenticity of the identity of the bearer of the relevant certificate and the signature and seal affixed thereon; provided, however, that the performance of the applicable obligation shall be void if the obligor has knowledge or is grossly negligent.

§471  (Examination Right of Obligor of Claim Payable to Obligee or Holder)
The provisions of §470 shall apply mutatis mutandis to the cases where any certificate regarding the claim specifies the name of the obligee and note that the payment should be made to the bearer of such certificate.

§472  (Limitation on Defense of Obligor in cases of Assignment of Debt Payable to Order)
The obligor of a debt payable to order may not use any grounds which could have been raised as defenses against the obligee before the assignment of the relevant debt payable to order as defenses against an assignee without knowledge, except for the matter specified on the relevant certificate or any result which necessarily arises from the nature of such certificate.

§473  (Limitation on Defense of Obligor in cases of Assignment of Bearer Certificate of Claims)
The provisions of §472 shall apply mutatis mutandis to a bearer certificate of claims.

Section V Extinction of Claims
Subsection I Performance
Division I General Provisions

§474
 (Performance by Third Parties)
(1) The performance of an obligation may be effected by a third party; provided, however, that, this shall not apply in cases where the nature of such obligation does not permit such performance or the parties have manifested their intention to the contrary.
(2) A third party who has no interest in an obligation may not perform the obligation against the will of the obligor.

§475 (Recover of any Property Tendered to Perform Obligation)
In cases where a person who performed his obligation delivered any property owned by others as the performance of the obligation, the person who made such performance may not recover such property unless he effects an effective performance de novo.

§476 (Recover of any Property Tendered to Perform Obligation)
In cases where any possessor who has limited capacity to act with respect to the act of assignment delivers any property to perform any obligation, and later rescinds such performance, the relevant possessor may not recover such property unless he effects an effective performance de novo.

§477  (Effect of Performance in cases Any Property Delivered to Perform Obligation is Consumed or Assigned)
In the case referred to in §475 & §476, if an obligee without knowledge consumes or assigns any property which he received as the performance of the obligation, such performance shall be effective.
In such case, if the relevant obligee has received any request for compensation from a third party, he shall not be precluded from seeking reimbursement from the person who performed the obligation.

§478 (Performance to a Holder of Quasi-Possession of Claim)
Any performance made vis-a-vis a holder of quasi-possession of the claim shall remain effective to the extent the person who performed such obligation acted without knowledge, and was free from any negligence.

§479 (Performance to Person Without Authority to Receive Performance)
Except as provided in §478, any performance made vis-a-vis any person who has no authority to receive the performance shall have the effect only to the extent the relevant obligee is enriched as a result thereof.

§480 (Performance to Bearer of Receipt)
A bearer of a receipt is deemed to have the authority to accept performance;
provided, however, that, this shall not apply to the cases where the person who made the performance knew, or was negligent in not knowing, that the bearer did not have the authority.

§481  (Performance by Third-party Obligor who had been Ordered to Suspend Payment)
(1) If a third-party obligor who has been enjoined from making payment has paid his obligation to his own obligee, the relevant attaching obligee shall be entitled to request such third-party obligor to make payment de novo to the extent he suffered the damages.
(2) The provision of Para 1 shall not preclude the relevant third-party obligor from exercising his right to obtain reimbursement from his obligee.

§482 (Substitute Performance)
If an obligor, in lieu of the performance he originally incurred, provided any other type of performance with the acknowledgment of the obligee, such performance shall have the same effect as that of the original performance.

§483 (Delivery of Specific Thing in its Existing State)
If the subject of a claim is the delivery of a specific thing, the person who intends to effect any performance must deliver such thing on an "as-is" basis as of the time when the delivery is due.

§484 (Place of Performance)
Unless any other intention is manifested with respect to the place where the performance should take place, the delivery of a specific thing must be effected at the place where such thing was located when the relevant claim accrued, and the discharge of any other obligation must be effected at the current domicile of the obligee, respectively.

§485 (Expense of Performance)
Unless any other intention is manifested with respect to the expense of performance, such expenses shall be borne by the obligor;
provided, however, that, in cases the relevant obligee caused the expense of perform- ance to increase by relocating his domicile or taking any other actions, such incremental amount shall be borne by the obligee.

§486 (Request for Issuance of Receipt)
Any person who made the performance shall be entitled to request the person who received the performance to issue a receipt.

§487 (Request for Return of Claim Instrument)
In the cases where there is any instrument which evidences the claim, if the person who makes the performance has completed his entire performance, he may demand the return of such instrument.

§488 (Designation of Obligations to be Performed)
(1) In the cases where an obligor owes to a single obligee more than one obligations which requires the performance of the same kind, if any performance tendered to discharge the obligation is not sufficient to extinguish all obligations, the person who tenders the performance may, at the time of such tender, designate particular obligations to which such performance should be allocated before any others.
(2) If the person who tenders the performance does not make the designation pursuant to the provision of Para 1, the person who receives the performance may, at the time of such receipt, designate a particular obligation to which such performance should be allocated before any others;
provided, however, that, this shall not apply to the cases where the person who tenders the performance immediately raises his objection to such allocation.
(3) The designation of the performance under Para. 1 & 2 shall be effected by manifesting the intention to the counterparty.

§489 (Statutory Allocation)
In cases where neither the person who tenders the performance nor the person who receives such performance does not designate the allocation of performance pursuant to the provision of §488,
the allocation shall be effected as stipulated in each of the following items:
(i) if the obligations include those which are due and those which are not due yet, the applicable performance shall be allocated to those which are due;
(ii) if all obligations are due, or none of the obligations are due, the applicable performance shall be allocated in the order of the obligations which shall result in more benefit to the obligor when performed;
(iii) if all obligations would have equal benefit to the obligor when performed, the applicable performance shall be allocated in the order of the obligations which have, or should have, the earliest due date; and
(iv) the performance of obligations which are equal in terms of the matters listed in the Items (ii) & (iii) shall be allocated in proportion to the amount of each obligation.

§490 (Allocation in cases More than One Performance Should be Tendered)
In the cases where more than one performance should be tendered to discharge a single obligation, if the person who must perform tenders any performance which is not sufficient to extinguish such obligation in its entirety, the provision of §488 & §489 shall apply mutatis mutandis.

§491  (Allocation in cases Principal, Interest, and Expenses Should be Paid)
(1) In cases where the obligor should pay the principal as well as the applicable interest and expenses with respect to one or more obligation(s), if the person who must perform tenders any performance which is not sufficient to extinguish such obligation in its entirety, such performance must be allocated first to the expense, and then to the interest and principal, in this order.
(2) The provision of §489 shall apply mutatis mutandis to the cases set forth in Para 1.

§492 (Effect of Tender of Performances)
Upon tendering the performance, the relevant obligor shall be relieved from any and all responsibilities which may arise from the nonperformance of the obligation.

§493 (Method of Tender of Performances)
The tender of the performance must be made actually consistent with the main purport of the obligation; provided, however, that, if the obligee refuses to accept such performance in advance, or any act is required on the part of the obligee with respect to the performance of the obligation, it shall be sufficient if the obligor demands the acceptance thereof by giving a notice that the tender of the performance has been prepared.

Division II Deposit of Subject-Matter of Performance

§494
 (Deposit)
If an obligee refuses, or is unable, to accept the performance, the person who can make the performance (hereinafter referred to as the "performer") may be relieved from his obligation by depositing the subject- matter of the performance with an official depository. The same shall apply in cases the performer is unable to ascertain the obligee without any negligence on the part of the performer.

§495 (Method of Deposit)
(1) The deposit pursuant to the provision of §494 must be made with the official depository having jurisdiction over the district where the relevant obligation must be performed.
(2) In cases where there is no specific provision in the laws and regulations with respect to the official depository, the court must, at the request of the performer, designate the depository and appoint a custodian of the property to be deposited.
(3) A person who has effected a deposit pursuant to the provision of §494 must notify the obligee of the deposit without delay.

§496 (Recovery of Deposited Property)
(1) As long as the obligee does not accept the deposit, or the judgment which pronounces that the deposit is effective does not become unappealable, the performer may recover the deposited property.
In such case, it is deemed that no deposit has been effected.
(2) The provision of Para 1 shall not apply in cases any pledge or mortgage has been extinguished due to the deposit.

§497 (Property Not Suitable for Deposit)
If any subject of the performance is not suitable for deposit, or such property is likely to suffer any loss or damage, the performer may, with the permission of the court, sell such property at public auction and deposit the proceeds of such sales with the official depository.
The same shall apply in cases excessive expenses are required for the preservation of such property.

§498 (Requirements for Acceptance of Deposited Property)
In cases where the obligor is required to perform in exchange for the performance of the obligee, the obligee may not accept the relevant deposited property unless he tenders his performance.

Division III Subrogation by Performance

§499
 (Voluntary Subrogation)
(1) A person who has performed the obligation for the benefit of an obligor may be subrogated to the claim of the obligee by acquiring the acknowledgment of the obligee upon such performance.
(2) The provision of §467 shall apply mutatis mutandis to the case set forth in Para 1.

§500 (Statutory Subrogation)
A person who has legitimate interest in effecting performance shall be subrogated by operation of law to the claim of the obligee by effecting performance.

§501 (Effect of Subrogation by Performance)
A person who is subrogated to the claim of the obligee pursuant to the provisions of §499 & §500 may exercise any and all rights possessed by such obligee as the effect of, and as a security for, such right to the extent he may seek reimbursement under his own right; provided, however, that:
(i) unless the fact of subrogation is noted in advance in the register of an applicable statutory lien/pledge of real estate/mortgage, a guarantor may not be subrogated to the claim of the obligee vis-a-vis any third party acquirer of the real estate which is encumbered by such statutory lien/pledge of real estate/mortgage;
(ii) a third party acquirer may not be subrogated to the claim of the obligee vis-a-vis the guarantor;
(iii) one of the third party acquirers of the real estate shall be subrogated to the claim of the obligee vis-a-vis other third party acquirers in proportion to the value of each real estate;
(iv) one of the third party pledgors shall be subrogated to the claim of the obligee vis-a-vis other third party pledgors in proportion to the value of each property;
(v) as between a guarantor and a third party pledgor, the subrogation to the claim of the obligee shall be effected depending on the number of such persons involved; provided, however, that, if there are more than one third party pledgor, such persons shall be subrogated to the claim of the obligee in proportion to the value of each property with respect only to the residual amount which remains after deduction of the portion to be borne by the guarantor; and
(vi) in the cases referred to in item v, if the property in question is real estate, the provisions of item i shall apply mutatis mutandis.

§502 (Subrogation by Partial Performance)
(1) If any performance by subrogation occurs with respect to any portion of a claim, the subrogee shall exercise his right together with the obligee in proportion to the value of his performance.
(2) In the case set forth in Para 1, the cancellation of a contract based on the failure to perform the obligation may be effected only by the obligee. In such case, the obligee must reimburse to the subrogee the value of the performance he effected plus interest.

§503 (Delivery of Claim Instrument by Obligee)
(1) An obligee who has received full performance by way of performance by subrogation must deliver to the subrogee the instruments regarding the claim and any security he possesses.
(2) In cases where any performance by subrogation occurs with respect to any portion of a claim, the obligee must enter such subrogation in the instruments regarding the claim and allow the subrogee to supervise the preservation of the security he possesses.

§504 (Loss of Security by Obligee)
In cases where there exists a person who has the right of subrogation pursuant to the provision of §500, if the obligee lost, or diminished, his security due to his intentional act or negligence, the person who has the right of subrogation shall be relieved to the extent he can no longer seek the reimbursement due to such loss or diminution.

Subsection II Set-offs

§505
 (Requirements for Set-offs)
(1) In cases where 2 persons mutually owe to the other any obligation with the same kind of purpose, if both obligations are due, each obligor may be relieved from his own obligation by setting off each value thereof against the corresponding amount of the obligation of the other obligor; provided, however, that, this shall not apply to the cases where the nature of the obligation does not permit such set-off.
(2) The provisions of Para 1 shall not apply in cases where the relevant party manifests his intention to the contrary; provided, however, that such manifestation of intention may not be asserted against a third party without knowledge.

§506 (Method and Effect of Set-offs)
(1) Set-offs shall be effected by means of manifestation of one party's intention to the other.
In such case, no condition or time limit may be added to such manifestation of intention.
(2) The manifestation of intention set forth in Para 1 shall take effect retroactively as of the time when the obligations of both parties became due and suitable for set-off.

§507 (Set-offs between Obligations with Different Places of Performance)
Set-offs may be effected even if the place of performance of both obligations are different.
In such case, the party who intends to effect the set-off shall be liable for any damages suffered by the counterparty as result of such set-off.

§508  (Set-offs Intended to Invoke a Claim Extinguished by Prescription )
In cases where any claim which was extinguished by a prescription had been suitable for set-off prior to such extinguishment, the relevant obligee may effect the set-off.

§509  (Prohibition of Effecting Set-offs Against Any Claim Arising from Tortious Acts)
If any claim arises from a tortious act, the relevant obligor may not assert the set-off against the obligee.

§510  (Prohibition of Set-offs Against Any Claim Immune from Attachment)
If any claim is immune from any attachment, the relevant obligor may not assert the set-off against the obligee.

§511  (Prohibition of Set-offs Against Any Claim Subject to Injunction)
A third-party obligor who has been enjoined from making payment may not assert the set-off against any after-acquired claim against the relevant attaching obligee.

§512 (Allocation of Set-off)
The provisions of §488 to §491 inclusive shall apply m/mutandis to the set-off.

Subsection III Novation

§513
 (Novation)
(1) If the parties conclude a contract which changes any element of an obligation, such obligation shall be extinguished by novation.
(2) It is deemed that an element of obligation has been changed if a conditional obligation is made an unconditional obligation, if a condition is added to an unconditional obligation, or if any condition on an obligation is changed.

§514 (Novation by Substitution of Obligor)
A novation by substitution of obligor may be effected between the obligee and a person who becomes the obligor after the novation; provided, however, that, this shall not apply to the cases where it is contrary to the intention of the obligor prior to the novation.

§515 (Novation by Substitution of Obligee)
A novation by substitution of obligee may not be asserted against a third party unless it is made using an instrument bearing a fixed date.

§516 (Novation by Substitution of Obligee)
The provisions of §468 (1) shall apply mutatis mutandis to the novation by substitution of obligee.

§517  (Cases where Obligations Existing Prior to Novation are not Extinguished)
If any obligation which arises by novation is not established or is rescinded on the ground of illegality or due to reasons unknown to the parties, the obligation which existed prior to the novation shall not be extinguished.

§518 (Conversion of Security to Obligation After Novation)
To the extent of the purpose of the obligation in effect prior to the novation, the parties to the novation may convert the pledge or mortgage created as the security of such obligation to the obligation in effect after the novation; provided, however, that, in cases where any third party created such security, the acknowledge- ment of such third party must be obtained.

Subsection IV Release

§519
 (Release)
If an obligee manifests his intention to release an obligation to the obligor, such obligation shall be extinguished.

Subsection V Merger

§520 (Merger)
If a claim and obligation becomes vested in the same person, such claim shall be extinguished;
provided, however, that, this shall not apply to the cases where such claim is the subject-matter of the right of a third party.

Chapter 2 Contracts
Section 1 General Provisions
Subsection 1 Formation of Contracts

§521
 (Offers that Specify Period for Acceptance)
(1) An offer which specifies a period for acceptance may not be revoked.
(2) If an offeror does not receive notice of acceptance of the offer set forth in Para 1 within the period referred to in the same paragraph, the offer shall cease to be effective.

§522 (Late Arrival of Notices of Acceptance)
(1) Even in cases where the notice of acceptance of the offer under §521(1) arrives after the lapse of the period referred to in §521(1), if the offeror is in a position to know that the notice was dispatched at a time which, under normal circumstances, would have allowed the notice to arrive within that period, the offeror must dispatch a notice of late arrival to the other party without delay; provided, however, that this shall not apply when the offeror dispatches the notice of delay before the arrival of the notice of acceptance.
(2) When the offeror fails to give the notice of late arrival referred to in the main clause of Para. 1, the notice of acceptance shall be deemed to have arrived within the period referred to in §521(1).

§523 (Effect of Delayed Acceptance)
The offeror may deem a delayed acceptance to be a new offer.

§524 (Offers that do not Specify Period for Acceptance)
An offer made to a person at a distance without specifying a period for acceptance may not be revoked until the lapse of a reasonable period for the offeror to receive a notice of acceptance.

§525 (Offeror's Death or Loss of Capacity to Act)
The provisions of §97 (2) shall not apply where the offeror expresses his intention to the contrary, or the other party has come to know the fact of the offeror's death or loss of capacity to act.

§526 (Time of Formation of Contract between Persons at Distance)
(1) A contract between persons at a distance shall be formed upon dispatch of the notice of acceptance.
(2) In cases where no notice of acceptance is required due to the offeror's manifestation of intention or usage of trade, the contract shall be formed upon the occurrence of any fact which ought to be regarded as a manifestation of intention of acceptance.

§527 (Late Arrival of Notices of Revocation of Offer)
(1) Even if a notice to revoke an offer arrives after the dispatch of the acceptance notice, if the offeree is in a position to know that the notice was dispatched at a time which, under normal circumstances would have allowed the notice to arrive before the dispatch of the acceptance notice, the offeree must dispatch a notice of the late arrival to the offeror without delay.
(2) If the offeree fails to give the notice of late arrival referred to in Para 1, it shall be deemed that no contract was formed.

§528 (Acceptances which Modify Offer)
If the offeree has accepted the offer by adding any condition or by making any other modification, it shall be deemed that the offeree has refused the offer and has made a new offer.

§529 (Advertisements Offering Prizes)
A person who places an advertisement to the effect that any person who performs a defined act will be given a set reward (hereinafter referred to as an "advertiser offering prizes") shall be obligated to give the reward to the person who has performed the act.

§530 (Revocation of Advertisements Offering Prizes)
(1) In the case set forth in §529, the advertiser offering prizes may revoke its advertisement using a method identical to that used for the above advertisement whilst no person has completed the designated act; provided, however, that this shall not apply when a statement to the effect that the offer will not be revoked was made in the advertisement.
(2) Where revocation may not be carried out by the method provided in the main clause of Para 1, the revocation may be carried out by another method.
In such cases, the revocation shall only be effective against persons with knowledge of the revocation.
(3) If the advertiser offering prizes specifies the period during which the designated act must be performed, it shall be presumed that the advertiser has waived its right to revoke.

§531 (Right to Receive Rewards in Advertisements Offering Prizes)
(1) If more than one person has performed the act designated in the advertisement, only the person who performed the act first shall be entitled to receive the reward.
(2) Where 2 or more persons have performed the act set forth in Para 1 simultaneously, each shall be entitled to receive an equal share of the reward; provided, however, that the person entitled to the reward shall be selected by lot if the reward is by nature indivisible, or the advertisement provides that only one person is entitled to receive the reward.
(3) The provisions of Para 2 & 3 shall not apply if the advertisement expresses any intention to the contrary.

§532 (Advertisement Offering Prizes to Most Outstanding Applicant)
(1) If, in cases where two or more persons have performed the act designated in the advertisement, the reward is to be given only to the most outstanding applicant, the advertisement shall be effective only if it specifies the application period.
(2) In the cases of Para 1, the most outstanding applicant shall be judged by the person specified in the advertisement and if no such person is specified in the advertisement, by the person who places the advertisement.
(3) Applicants may not raise any objection to the judge's decision referred to in Para 2.
(4) The provision of §531(2) shall apply mutatis mutandis to cases where the acts of 2 or more persons are judged to be equal.

Subsection 2 Effect of Contracts

§533 (Defense for Simultaneous Performance)
A party to a bilateral contract may refuse to perform his own obligation until the other party tenders the performance of his obligation; provided, however, that this shall not apply if the obligation of the other party is not yet due.

§534 (Obligees to Assume Risk)
(1) In cases where the purpose of a bilateral contract is the creation or transfer of real rights regarding specified things, if the things have been lost or damaged due to reasons not attributable to the obligor, such loss or damage shall fall on the obligee.
(2) The provisions of Para 1 shall apply to any contract regarding unspecified things from the time when the things have been identified in accordance with the provisions of §401 (2).

§535  (Assumption of Risk in Bilateral Contract with Condition Precedent)
(1) The provisions of §534 shall not apply where the subject matter of a bilateral contract with conditions precedent is lost whilst the conditions are pending.
(2) If the subject matter of a bilateral contract with conditions precedent has been lost or damaged due to reasons not attributable to the obligor, the loss or damage shall fall on obligee.
(3) In cases where the subject matter of a bilateral contract with conditions precedent has been lost or damaged due to reasons attributable to the obligor, if the condition has been satisfied, the obligee may, at his choice, demand performance or exercise the obligee's right to cancel.
In such cases, claims for damages shall not be precluded.

§536 (Obligors' Assumption of Risk)
(1) Except in the cases provided for in §534 & §535, if the performance of any obligation has become impossible due to reasons not attributable to either party, the obligor shall not have the right to receive performance in return.
(2) If the performance of any obligation has become impossible due to reasons attributable to the obligee, the obligor shall not lose his right to receive performance in return.
In such cases, if the obligor gains any benefit as a result of being released from his own obligation, the obligor must reimburse the obligee for the benefit.

§537 Contracts for the Benefit of Third Parties)
(1) If one of the parties promises in a contract that he will tender a certain performance to any third party, the third party shall have the right to claim that performance directly from the obligor.
(2) In the cases set forth in Para 1, rights of the third party shall accrue when the third party has expressed his intention to the obligor to enjoy the benefit of the contract under that paragraph.

§538 (Determination of Rights of the Third Party)
After rights of the third party have come into existence in accordance with the provisions of §537, the parties may not modify or extinguish those rights.

§539 (Obligors' Defense)
The obligor may raise the defense founded on the contract referred to §537 (1) against a third party who is to enjoy the benefit of the contract.

Subsection 3 Cancellation of Contracts

§540
 (Exercise of Right to Cancel)
(1) If one of the parties has a right to cancel in accordance with the provisions of the contract or law,
the cancellation shall be effected by manifestation of intention to the other party.
(2) The manifestation of intention under Para 1 may not be revoked.

§541 (Right to Cancel for Delayed Performance)
In cases where one of the parties does not perform his obligations, if the other party demands performance of the obligations, specifying a reasonable period and no performance is tendered during that period, the other party may cancel the contract.

§542 (Right to Cancel for Delayed Perform/ce where Time is of the Essence)
In cases where, due to the nature of the contract or a manifestation of intention by the parties, the purpose of the contract cannot be achieved unless the performance is carried out at a specific time and date or within a certain period of time, if one of the parties has failed to perform at the time that period lapses, the other party may immediately cancel the contract without making the demand referred to in §541.

§543 (Right to Cancel for Impossibility of Performance)
If performance has become impossible, in whole or in part, the obligee may cancel the contract; provided, however, that this shall not apply if the failure to perform the obligation is due to reasons not attributable to the obligor.

§544 (Indivisible Nature of Right to Cancel)
(1) If one party is constituted of 2 or more persons, the cancellation of the contract may be effected only by, or against, all of those persons.
(2) In the case set forth in Para 1, if the right to cancel is extinguished with respect to one of the persons who constitute a party, it shall also be extinguished with respect to the other persons.

§545 (Effect of Cancellation)
(1) If one of the parties exercises his right to cancel, each party shall assume an obligation to restore the other party to that other party's original position; provided, however, that this shall not prejudice the rights of a third party.
(2) In the case set forth in the main clause of Para 1, if any monies are to be refunded, interest must accrue from the time of the receipt of those monies.
(3) The exercise of the right to cancel shall not preclude claims for damages.

§546  (Cancellation of Contract and Simultaneous Performance)
The provisions of §533 shall apply mutatis mutandis to §545.

§547 (Extinguishment of Right to Cancel by Demand)
If no period is provided for the exercise of the right to cancel, the other party may issue a notice of demand to the holder of the right to cancel, specifying a reasonable period, to the effect that the holder of the right to cancel is to give a definite answer as to whether or not the right will be exercised within that period. In such cases, if no notice of cancellation is received within that period, the right to cancel shall be extinguished.

§548  (Extinguishment of Right to Cancel by Acts of Holder of Right to Cancel)
(1) The right to cancel shall be extinguished if the holder of the right to cancel has significantly damaged, or has become unable to return, the subject matter of the contract due to his act or negligence, or has converted the subject matter into any other kind of thing by processing or alteration.
(2) The right to cancel shall not be extinguished if the subject matter of the contract has been lost or damaged due to reasons not attributable to any act or negligence of the holder of the right to cancel.

Section 2 Gifts

§549
 (Gifts)
Gifts shall become effective by the manifestation by one of the parties of his intention to give his property to the other party gratuitously, and the acceptance of the other party thereof.

§550 (Revocation of Gift Not in Writing)
Gifts not in writing may be revoked by either party; provided, however, that this shall not apply to any portion of the gift for which performance has been completed.

§551 (Warranty by Donor)
(1) The donor shall not be liable for any defect in or absence of the thing or right that is the subject matter of the gift; provided, however, that this shall not apply if the donor has knowledge of the defect or absence and fails to inform the donee thereof.
(2) With respect to encumbered gifts, the donor shall assume a warranty identical to that borne by the seller, to the extent of that encumbrance.

§552 (Periodic Gifts)
Periodic gifts shall lose its effect on the death of the donor or the donee.

§553 (Encumbered Gifts or Gifts with Burden)
With respect to gifts with burden, in addition to the provisions of this Section, the provisions regarding bilateral contracts shall apply mutatis mutandis, to the extent those provisions are not inconsistent with the nature of gifts with burden.

§554 (Gifts on Donor's Death)
With respect to gifts that become effective on the death of the donor, the provisions regarding testamentary gifts shall apply mutatis mutandis, to the extent they are not inconsistent with the nature of gifts that become effective on the death of the donor.

Section 3 Sale
Subsection 1 General Provisions

§555
 (Sale)
A sale shall become effective when one of the parties promises to transfer a certain real rights to the other party and the other party promises to pay the purchase money for it.

§556 (Pre-contract of Sales Exercisable by One Party)
(1) A pre-contract to sell or purchase made by one party shall take the effect of a sale when the other party has manifested his intention to complete such sale.
(2) If no period is provided in relation to the manifestation of intention set forth in Para 1, the other party to the pre-contact may issue a notice of demand to the other party, specifying a reasonable period, to the effect that the other party is to give a definite answer as to whether or not he will complete the sale within that period. In such cases, if the other party fails to give a definite answer within that period, the pre-contract of sale by one party shall lose its effect.

§557 (Earnest Money)
(1) When the buyer delivers earnest money to the seller, the buyer may cancel the contract by forfeiting his earnest money or the seller may cancel the contract by reimbursing twice its amount, until either party commences performance of the contract.
(2) The provisions of §545(3) shall not apply to cases set forth in Para 1.

§558 (Expenses of Contracts for Sale)
The expenses of contracts for sale shall be borne equally by both parties.

§559 (Mutatis Mutandis Application to Contracts for Value)
The provisions of Section 3 shall apply mutatis mutandis to contracts for value other than contracts for sale; provided, however that this shall not apply when it is not permitted by the nature of the contract for value.

Subsection 2 Effect of Sale

§560 (Seller's Obligation when Selling Rights of Others)
If the subject matter of the sale is the rights of others, the seller shall assume an obligation to acquire the rights and transfer the same to the buyer.

§561 (Seller's Warranty when Selling Rights of Others)
In the cases set forth in §560, if the seller cannot acquire and transfer to the buyer the rights the seller has sold, the buyer may cancel the contract. In such cases, if the buyer knew, at the time of the contract, that the rights did not belong to the seller, the buyer may not demand compensation for damages.

§562  (Innocent Seller's Right of Cancellation in a Sale of Others' Rights)
(1) In cases where the seller, at the moment of the contract, does not know that the rights the seller has sold do not belong to him, if the seller cannot acquire the rights and transfer the same to the buyer, the seller may cancel the contract by compensating any damages.
(2) In the cases set forth in Para 1, if the buyer, at the moment of the contract, knows that the rights the buyer has bought do not belong to the seller, the seller may cancel the contract by simply notifying the buyer to the effect that the seller cannot transfer the rights sold (without compensating damages).

§563  (Seller's Warranty where Rights Partially Belonged to Others)
(1) If the seller cannot transfer any part of the rights which are the subject matter of the sale because the part of the rights belongs to others, the seller may demand a reduction of the purchase money in proportion to the value of the part in shortage.
(2) In the cases set forth in Para 1, a buyer in good faith may cancel the contract if the buyer would not have bought the rights if the rights consisted only of the remaining portion.
(3) A demand for the reduction in the purchase money or cancellation of the contract shall not preclude a buyer in good faith from making a claim for damages.

§564 (Seller's Warranty where Rights Partially Belonged to Others)
The rights under §563 must be exercised w/i 1 year from the time when the buyer knew the facts if the buyer was in good faith, or w/i 1 year from the time of the contract if the buyer had knowledge, as the case may be.

§565  (Seller's Warranty in Cases of Shortage in Quantity or Partial Loss of Object)
The provisions of §563 & §564 shall apply mutatis mutandis in cases where there is any shortage in the object of a sale made for a designated quantity, or in cases where part of the object was already lost at the time of the contract, if the buyer did not know of the shortage or loss.

§566  (Seller's Warranty in cases of Superficies or Other Rights)
(1) In cases where the subject matter of the sale is encumbered with for the purpose of a superficies, an
emphyteusis, an easement, a right of retention or a pledge, if the buyer does not know the same and cannot achieve the purpose of the contract on account thereof, the buyer may cancel the contract.
In such cases, if the contract cannot be cancelled, the buyer may only demand compensation for damages.
(2) The provisions of Para 1 shall apply m/mutandis in cases where an easement that was referred to as being in existence for the benefit of immovable property that is the subject matter of a sale, does not exist, and in cases where a leasehold is registered with respect to the immovable property.
(3) In the cases set forth in Para 1 & 2, the cancellation of the contract or claim for damages must be made within one year from the time when the buyer comes to know the facts.

§567 (Seller's Warranty in cases of Mortgage or Other Rights)
(1) If the buyer loses his ownership of immovable property that is the object of a sale because of the exercise of an existing statutory lien or mortgage, the buyer may cancel the contract.
(2) If the buyer preserves his ownership by incurring expenditure for costs, he may claim reimbursement of those costs from the seller.
(3) In the cases set forth in Para 1 & 2, the buyer may claim compensation if he suffered loss.

§568 (Warranty in cases of Compulsory Auctions)
(1) The successful bidder at compulsory auction may cancel the contract or demand a reduction from the purchase money against the obligor in accordance with the provisions from §561 through to §567.
(2) In the cases set forth in Para 1, if the obligor is insolvent, the successful bidder may demand total or partial reimbursement of the proceeds against the obligees who received the distribution of the proceeds.
(3) In the cases set forth in Para 1 & 2, if obligors knew of the absence of the object or right and did not disclose the same, or if obligors knew of the absence but demanded an auction, the successful bidder may demand compensation for damages against those persons.

§569 (Seller's Warranty for Claims)
(1) If the seller of a claim warrants the solvency of the obligor, it shall be presumed that the seller warranted the solvency as at the time of the contract.
(2) If the seller of a claim which is not due yet warrants the future solvency of the obligor, it shall be presumed that he warranted the solvency as at the due date.

§570 (Seller's Warranty against Defects)
If there is any latent defect in the subject matter of a sale, the provisions of §566 shall apply m/mutandis; provided, however, that this shall not apply in cases of compulsory auction.

§571 (Seller's Warranty and Simultaneous Performance)
The provisions of §533 shall apply mutatis mutandis to the cases set forth in §563 - §566 & §570.

§572 (Special Agreement Disclaiming Warranty)
Even if the seller makes a special agreement to the effect that the seller will not provide the warranties set forth from §560 to §571 inclusive, the seller may not be released from that responsibility with respect to any fact that the seller knew but did not disclose, and with respect to any right that the seller himself created for or assigned to a third party.

§573 (Due Date for Payment of Purchase money)
If there is a due date for the delivery of the subject matter of the sale, it shall be presumed that the same due date was also agreed for the payment of the purchase money.

§574 (Place of Payment of Purchase money)
If the purchase money is to be paid simultaneously with delivery of the subject matter of the sale,
the payment must be made at the place of delivery. 
§575 (Ownership in Fruit and Payment of Interest on Purchase money)
(1) If any subject matter of a sale that is not delivered yet bears any fruit, the fruit shall vest in the seller.
(2) The buyer shall assume an obligation to pay the interest on the purchase money from the day of delivery; provided, however, that, if a due date is provided for the payment of the purchase money, it shall not be necessary to pay the interest until that due date arrives.

§576  (Refusal by Buyer to Pay Purchase money where Loss of Rights is Likely)
If the buyer is likely to lose the rights he has bought, in whole or in part, due to the existence of persons who assert rights to the subject matter of the sale, the buyer may refuse to pay the purchase money, in whole or in part, in proportion to the extent of that likelihood; provided, however, that this shall not apply if the seller has provided reasonable security.

§577  (Refusal by Buyer to Pay Purchase money in cases of Registered Mortgage)
(1) If any mortgage is registered on immovable property that has been purchased, the buyer may refuse to pay the purchase money until the completion of the procedures of the claim for extinguishment of the mortgage. In such cases, the seller may demand that the buyer file the claim for extinguishment of the mortgage without delay.
(2) The provisions of Para 1 shall apply mutatis mutandis to cases where a statutory lien or pledge is registered on the immovable property that has been bought.

§578 (Seller's Demand for Deposit of Purchase money)
In the cases of §576 & §577, the seller may demand that the buyer deposit the purchase money.

Subsection 3 Redemption

§579 (Special Agreement on Redemption)
The buyer of immovable property may cancel the sale by refunding the purchase money and costs of the contract paid by the buyer in accordance with a special agreement on redemption executed simultaneously with the contract for sale.
In such cases, unless a contrary intention is manifested by the parties, it shall be deemed that the fruit of the immovable property and the interest on the purchase money have been set off against each other.

§580 (Period for Redemption)
(1) The period for the redemption may not exceed 10 years.
If any special agreement provides for any period longer than the above, the period shall be 10 years.
(2) If a period for the redemption is agreed, no further extension may be effected subsequently.
(3) If no period for the redemption is agreed, the redemption must be effected within 5 years.

§581 (Perfection of Special Agreement on Redemption)
(1) If the special agreement on redemption is registered simultaneously with the contract for sale,
the redemption shall also be effective against third parties.
(2) The rights of a lessee who effected registration can be asserted against the seller while the lease remains effective, limited to a period not exceeding 1 year; provided, however, that this shall not apply if the lease is entered into with the purpose of harming the seller.

§582 (Exercise of Right of Redemption by way of Subrogation)
If an obligee of the seller intends to effect redemption on behalf of the seller in accordance with the provisions of §423, the buyer may extinguish the right of redemption by paying the debts of the seller, to the extent of the balance obtained by deducting the amount the seller is to pay from the current value of the immovable property as evaluated by a court-appointed appraiser, and, if any positive balance remains, by refunding the same to the seller.

§583 (Implementation of Redemption)
(1) A seller may not effect redemption unless the seller provides the purchase money and the costs of the contract within the period provided for in §580.
(2) If a buyer or subsequent acquirer incurs expenses with respect to immovable property, the seller must reimburse those expenses in accordance with the provisions of §196; provided, however, that, with respect to useful expenses, the court may, at the seller's request, grant a reasonable period for the reimbursement.

§584 (Sale of Co-ownership Interest with Special Agreements on Redemption)
If one of the co-owners of immovable property sells his equity interest with special agreements on its redemption and the immovable property is then divided or subjected to auction, the seller may redeem the portion or purchase money that the buyer receives or is to receive; provided, however, that any division or auction effected without notice to the seller may not be asserted against the seller.

§585 (Sale of Co-ownership Interest with Special Agreements on Redemption)
(1) In the cases of §584, if the buyer is the successful bidder at the auction of the immovable property,
the seller may effect the redemption by paying the auction price and the costs provided for in §583.
In such cases, the seller shall acquire full ownership of the immovable property.
(2) If the buyer has become the successful bidder at an auction as the result of the request of division by other joint owner(s), the seller may not effect the redemption with respect only to his own share.

Section 4 Exchange

§586 (Exchange)
(1) An exchange shall become effective by the mutual promises by the parties to transfer any property right other than the ownership of money.
(2) In cases where one of the parties promises to transfer the ownership of money together with other rights, the provisions regarding purchase money for sale contracts shall apply mutatis mutandis to that money.

Section 5 Loans for Consumption

§587 (Loans for Consumption)
A loan for consumption shall become effective when one of the parties receives money or other things from the other party by promising that he will return by means of things that are the same in kind, quality and quantity.

§588 (Quasi-loans for Consumption)
In cases where any person has an obligation to provide money or other things under any arrangement which is not a loan for consumption, if the parties agree to regard such things as the subject matter of a loan for consumption, it shall be deemed that this establishes a loan for consumption.

§589  (Pre-contract of Loans for Consumption and Commencement of Bankruptcy Procedures)
The pre-contract of a loan for consumption shall lose its effect if a ruling for the commencement of bankruptcy procedures is subsequently made against one of the parties.

§590 (Lender's Warranty)
(1) If there is any latent defect in any borrowed Thing in a loan for consumption with interest, the lender must replace it with another Thing without defect. In such cases, claims for damages shall not be precluded.
(2) In a loan for consumption without interest, the borrower may return the value of a borrowed Thing that is defective. In such cases, the provisions of Para 1 shall apply mutatis mutandis if the lender knew of the defect but did not disclose the same to the borrower.

§591 (Timing of Returns)
(1) If the parties do not define the time for return of borrowed Things, the lender may demand their return, specifying a reasonable period.
(2) The borrower may return borrowed Things at any time.

§592 (Reimbursement of Value)
If the borrower has become unable to return Things in the same kind, quality and quantity as that of the Things the borrower received from the lender, the borrower must return the current value of the Things; provided, however, that this shall not apply in the cases provided for in §402 (2).

Section 6 Loans for Use

§593 (Loans for Use)
A loan for use shall become effective when one of the parties receives a defined Thing from the other party by promising to return the Thing after he has gratuitously made use of and taken the profits of the same .

§594 (Borrower's Use and Profit)
(1) A borrower must make use of and take the profits of the Thing in compliance with the method of use specified by the contract or by the nature of the Thing which is the subject matter of the contract.
(2) A borrower may not allow third parties to make use of or take the profits of the Thing without obtaining the approval of the lender.
(3) If a borrower has made use of or taken the profits of the Thing in violation of Para 2 & 3, the lender may cancel the contract.

§595 (Responsibility for Costs of Borrowed Things)
(1) The borrower shall bear the ordinarily necessary costs of borrowed Things.
(2) The provisions of §583(2) shall apply mutatis mutandis to costs other than the ordinarily necessary costs under Para 2.

§596 (Lender's Warranty)
The provisions of §551 shall apply m/mutandis to loans for use.

§597 (Timing of Returns of Borrowed Things)
(1) A borrower must return borrowed Things at the time specified in the contract.
(2) When the parties have not specified a time for return, the borrower must return the borrowed Things when he has completed to make use of or take the profits of the same in compliance with the purposes provided for in the contract;
provided, however, that the lender may demand the immediate return of the borrowed Things even before the completion of using or taking profits if a period sufficient for using or taking profits has elapsed.
(3) If the parties have not specified the timing of the return and the purposes of the using and taking profits, the lender may demand the return of the borrowed Things at any time.

§598 (Removal by Borrower)
A borrower may restore a borrowed Thing to its original condition & remove anything attached to the same.

§599 (Termination of Loan for Use upon Death of Borrower)
Loans for use shall lose its effect on the death of the borrower.

§600  (Restriction on Period of Rights to Demand Compensation for Damages and Reimbursement of Costs)
Claims for compensation for damages resulting from using or taking profits of the Thing inconsistent with the main purport of the contract, and for the reimbursement of costs incurred by the borrower, must be submitted within 1 year from the time when the lender receives the return of the borrowed Things.

Section 7 Leases
Subsection 1 General Provisions

§601
 (Leases)
A lease shall become effective when one of the parties promises to make a certain Thing available for the using and taking the profits by the other party and the other party promises to pay rent for the same.

§602 (Short-term Leases)
In cases where a person with limited capacity to act or a person with no authority with respect to the act of disposition makes a lease contract, the leases listed in the following items shall not exceed the terms prescribed respectively in those items:
(i) Leases of forest for the purpose of planting or felling trees: 10 years;
(ii) Leases of land other than the leases listed in item i: 5 years;
(iii) Lease of a building: 3 years; and
(iv) Lease of a movable : 6 months.

§603 (Renewal of Short-term Leases)
The terms prescribed in §602 may be renewed; provided, however, that the renewal must be carried out within one year prior to the expiration of the term for land, and within 3 months for a building and within 1 month for a movable, respectively.

§604 (Duration of Lease)
(1) The duration of a lease may not exceed 20 years.
Even if the contract prescribes a longer term, the term shall be 20 years.
(2) The duration of a lease may be renewed; provided, however, that such period may not exceed 20 years from the time of the renewal.

Subsection 2 Effect of Lease

§605 (Perfection of Leasehold)
A lease of immovable property, when registered, shall also be effective against a person who subsequently acquires real rights with respect to the immovable property.

§606 (Repairs of Leased Things)
(1) A lessor shall assume an obligation to effect repairs necessary for using and taking the profits of the leased Things.
(2) The lessee may not refuse if the lessor intends to engage in any act that is necessary for the preservation of the leased Thing.

§607 (Act to Preserve against the Will of the Lessee)
In cases where the lessor intends to engage in an act to preserve the leased Thing against the will of the lessee, if the lessee cannot achieve the purpose of the lease as a result of the same, the lessee may cancel the contract.

§608 (Lessee's Demand for Reimbursement of Costs)
(1) If a lessee has defrayed (bear) necessary expenses with respect to the leased Thing which ought to be borne by the lessor, the lessee may immediately demand the reimbursement of the same from the lessor.
(2) If the lessee has incurred useful expenses with respect to the leased Thing, the lessor must reimburse those expenses on termination of the lease in compliance with the provisions of §196 (2); provided, however, that the court may, at the lessor's request, grant a reasonable period for the reimbursement of the same.

§609 (Demand for Reduction of Rent due to Decrease in Profits)
A lessee of land for the purpose of profit making may, if he obtains profits less than the rent due to force majeure, demand that the amount of the rent be reduced to the level of the amount of the profits;
provided, however, that this shall not apply with respect to leases of residential land.

§610 (Termination due to Decrease in Profits)
In the cases of §609, the lessee referred to in that Article may cancel the contract if he has made profits less than the rent for at least 2 consecutive years due to force majeure.

§611  (Demands for Reduction of Rent due to Partial Loss of Leased Thing)
(1) If any part of a leased thing is lost due to reasons not attributable to the negligence of the lessee,
the lessee may demand a reduction of the rent in proportion to the value of the lost part.
(2) In the cases set forth in Para 1, if the lessee cannot achieve the purpose of the lease with the remaining portion only, the lessee may cancel the contract.

§612 (Restrictions on Assignment and Subleasing of Leasehold)
(1) A lessee may not assign the lessee's rights or sublease a leased Thing without obtaining the approval of the lessor.
(2) If the lessee allows any third party to make use of or take the profits of a leased Thing in violation of the provisions of Para 1, the lessor may cancel the contract.

§613 (Effect of Subleases)
(1) If a lessee lawfully subleases a leased Thing, the sublessee shall assume a direct obligation to the lessor. In such cases, advance payment of rent may not be asserted against the lessor.
(2) The provisions of Para 1 shall not preclude the lessor from exercising his rights against the lessee.

§614 (Timing of Payment of Rent)
Rent must be paid at the end of the month with respect to movables, buildings and land for residential purpose, and at the end of the year with respect to other land; provided, however, that, with respect to anything with a harvest season, the rent must be paid without delay after that season.

§615 (Obligation of Lessee to Give Notice)
If the leased Thing requires any repair, or if any person asserts rights with respect to the leased Thing, the lessee must notify the lessor without delay;
provided, however, that this shall not apply if this is already known to the lessor.

§616 (Mutatis Mutandis Application of Loans for Use)
The provisions of §594 (1), §597 (1) and §598 shall apply m/mutandis to leases.

Subsection 3 Termination of Leases

§617 (Offers to Terminate Leases with Indefinite Terms)
(1) If the parties do not specify the term of a lease, either party may request to terminate it at any time.
In such cases, the leases listed in the following items shall terminate on the expiration of the respective periods from the day of the request to terminate prescribed respectively in those items:
(i) Leases of land: 1 year;
(ii) Leases of buildings: 3 months; and
(iii) Leases of movables and seating hire facilities: 1 day.
(2) With respect to leases of land with harvest seasons, the request to terminate must be made after the end of that season and before the next start of cultivation.

§618  (Reservation of Rights to Terminate Leases with Definite Terms)
Even if the parties specify the term of a lease, the provisions of §617 shall apply m/mutandis if one party reserves, or both parties reserve, the right to terminate during that period.

§619 (Presumption of Renewal of Leases)
(1) In cases where a lessee continues to make use or take the profits of the Thing after the expiration of the term of the lease, if a lessor who knows of the same raises no objection, it shall be presumed that a further lease is entered into under conditions identical to those of the previous lease.
In such cases, each party may request to terminate in accordance with the provisions of §617.
(2) If one of the parties has provided security for the previous lease, the security shall be extinguished upon expiration of the term; provided, however, that this shall not apply to a security deposit.

§620 (Effect of Cancellations of Leases)
In cases where a lease is cancelled, the cancellation shall be effective solely toward the future.
In such cases, if one of the parties is negligent, claims for damages against that party shall not be precluded.

§621  (Limitation on Periods of Rights to Demand Compensation for Damages and Reimbursement of Costs)
The provisions of §600 shall apply m/mutandis to leases.

Section 8 Employment

§623 (Employment)
An employment contract shall become effective when one of the parties promises to the other party that he will engage in work and the other party promises to pay remuneration for the same.

§624 (Timing of Payment of Remuneration)
(1) An employee may not demand remuneration until the work he promised to perform has been completed.
(2) Remuneration specified with reference to a period may be claimed on the expiration of that period.

§625 (Restrictions on Assignment of Employer's Rights)
(1) An employer may not assign his rights to 3rd parties unless the employer obtains the employee's consent.
(2) An employee may not cause any 3rd party to work on his behalf unless the employee obtains the
employer's consent.
(3) If an employee causes any 3rd party to work in violation of the provisions of Para 2, the employer may cancel the contract.

§626 (Cancellation of Employment with Indefinite Term)
(1) If the term of employment exceeds 5 years, or employment is to continue during the life of either party or any 3rd party, either party may cancel the contract at any time after the expiration of 5 years; provided, however, that said 5 years shall be 10 years with respect to employment for the purpose of apprenticeship in commerce and industry.
(2) If a person intends to cancel a contract under the provisions of Para 1, he must give notice 3 months in advance.

§627 (Offer to Terminate Employment with Indefinite Term)
(1) If the parties have not specified the term of employment, either party may request to terminate at any time. In such cases, employment shall terminate on the expiration of 2 weeks from the day of the request to terminate.
(2) If remuneration is specified with reference to a period, the request to terminate may be made with respect to the following period of time onward;
provided, however, that the request to terminate must be made in the first half of the current period.
(3) If remuneration is specified with reference to a period of 6 months or more, the request to terminate under Para 2 must be made 3 months before the termination.

§628 (Cancellation of Employment due to Unavoidable Reasons)
Even in cases where the parties have specified the term of employment, if there are unavoidable reasons, either party may immediately cancel the contract. In such cases, if the reasons arise from the negligence of either one of the parties, that party shall be liable to the other party for damages.

§629 (Presumption of Renewal of Employment)
(1) In cases where an employee continues to engage in his work after the expiration of a term of employ- ment, if an employer knows of the same and raises no objection, it shall be presumed that the further employment is entered into under conditions identical to those of the previous employment.
In such cases, each party may request the termination under the provisions of §627.
(2) If either party has provided security for the previous employment, the security shall be extinguished on the expiration of the term; provided, however, that this shall not apply to fidelity bonds.

§630 (Effect of Cancellation of Employment)
The provisions of §620 shall apply m/mutandis to employment.

§631  (Request to Terminate due to Commencement of Bankruptcy Procedures for Employer)
In cases where the employer is subject to a ruling for the commencement of bankruptcy procedures, the employee or the trustee in bankruptcy may request to terminate under the provisions of §627 even if the employment is for a definite term. In such cases, neither party may claim compensation from the other party for damages suffered as a result of the termination.

Section 9 Contracts for Work

§632 (Contracts for Work)
A contract for work shall become effective when one of the parties promises to complete work and the other party promises to pay remuneration for the outcome of the work.

§633 (Timing of Payment of Remuneration)
Remuneration must be paid simultaneously with delivery of the subject matter of work performed; provided, however, that, if no delivery of a Thing is required, the provisions of §624(1) shall apply mutatis mutandis.

§634 (Contractor's Warranty)
(1) If there is any defect in the subject matter of work performed, the party ordering the work may demand that the contractor repair the defect, specifying a reasonable period; provided, however, that this shall not apply if the defect is not significant and excessive costs would be required for the repair.
(2) The party ordering the work may demand compensation for damages in lieu of, or in addition to, the repair of the defect. In such cases, the provisions of §533(Defense for Simultaneous Performance) shall apply mutatis mutandis.

§635 (Contractor's Warranty)
If there is any defect in the subject matter of work performed and the purpose of the contract cannot be achieved because of the defect, the party ordering the work may cancel the contract; provided, however, that this shall not apply to a building or other structure on land.

§636 (No Application of Provisions on Contractor's Warranty)
The provisions of §634 & §635 shall not apply if the defect in the subject matter of the work arises due to the nature of the materials supplied by, or instructions given by, the party ordering the work; provided, however, that this shall not apply if the contractor knew that the materials or instructions were inappropriate but did not disclose the same.

§637 (Duration of Contractor's Warranty)
(1) The demand for repair or claim for damages and cancellation of the contract under §634 to §636 inclusive must be made within one year from the time of the delivery of the subject matter of the work.
(2) Where no delivery of the subject matter is required, the period referred to in Para 1 commences to run from the time of the completion of the work.

§638 (Duration of Contractor's Warranty)
(1) A contractor for a building or other structure on land shall be liable for a warranty against defects in the structure or ground for the period of 5 years from delivery; provided, however, that the period shall be 10 years for structures made of stone, earth, bricks, concrete, steel and other similar structures.
(2) If any structure is lost or damaged due to the defects set forth in Para 1, the party ordering the work must exercise the rights under the provisions of §634 within 1 year from the time of the loss or damage.

§639 (Extension of Duration of Warranty)
The periods set forth in §637 & §638 (1) may be extended by contract so long as they do not exceed the period of time provided for the extinctive prescription under the provisions of §167.

§640 (Special Agreement of No Warranty)
Even if the contractor agrees to a special agreement to the effect that the contractor will not be liable for the warranty provided in §634 or §635, the contractor may not be released from the contractor's liability with respect to facts the contractor knew and did not disclose.

§641 (Cancellation of Contract by Party Ordering Work)
The party ordering work may cancel the contract at any time whilst the contractor has not completed the work by compensating any damages.

§642  (Cancellation on Commencement of Bankruptcy Procedures for Party Ordering Work)
(1) In cases where the party ordering work is subject to a ruling for the commencement of bankruptcy procedures, the contractor or the trustee in bankruptcy may cancel the contract.
In such cases, the contractor may participate in the distribution of the bankrupt estate with respect to remuneration for the work already performed and any costs not included in that remuneration.
(2) In the cases set forth in Para 1, claims for damages suffered as a result of the cancellation of the contract shall be permitted only for contractors under contracts cancelled by the trustee in bankruptcy. In such cases, the contractors shall participate in the distribution of the bankrupt estate with respect to such damages.

Section 10 Mandates

§643 (Mandates)
A mandate shall become effective when one of the parties mandates the other party to perform a juristic act, and the other party accepts the mandate.

§644 (Duty of Care of Mandatary)
A mandatary shall assume a duty to administer the mandated business with the due care of a prudent (good) manager in compliance with the main purport of the mandate.

§645 (Reports by Mandatary)
A mandatary must, if so requested by the mandator, report the current status of the administration of the mandated business at any time, and must report the process and results without delay upon completion of the mandate.

§646 (Delivery of Received Things by Mandatary)
(1) The mandatary must deliver to the mandator monies and other Things that he has received during the course of administering the mandated business. The same shall apply to fruits the mandatary has reaped.
(2) The mandatary must transfer to the mandator rights the mandatary has acquired in his own name on behalf of the mandator.

§647 (Mandatary's Responsibility for Consumption of Monies)
If the mandatary has consumed monies for his personal benefit that the mandatary is to deliver to the mandator, or any monies that are to be used for the benefit of the mandator, the mandatary must pay interest for the period from the day of that consumption.
In such cases, if any damages still remain, the mandatary shall be liable to compensate for the same.

§648 (Remuneration for Mandatary)
(1) In the absence of any special agreements, the mandatary may not claim remuneration from the mandator.
(2) In cases where the mandatary is to receive remuneration, the mandatary may not claim the same until and unless he has performed the mandated business; provided, however, that if the remuneration is specified with reference to period, the provisions of §624 (2) shall apply mutatis mutandis.
(3) If the mandate terminates during performance due to reasons not attributable to the mandatary,    the mandatary may demand remuneration in proportion to the performance already completed.

§649 (Mandatary's Claims for Advance for Costs)
If costs will be incurred in administering the mandated business, the mandator must, at the request of the mandatary, pay an advance for those costs.

§650  (Mandatary's Claims for Reimbursement of Expense)
(1) If the mandatary has incurred costs found to be necessary for the administration of the mandated business, the mandatary may claim reimbursement of those costs from the mandator and any interest on the same from the day the costs were incurred.
(2) If the mandatary has incurred any obligation found to be necessary for the administration of the mandated business, the mandatary may demand that the mandator perform the obligation on the mandatary's behalf. In such cases, if the obligation has not yet fallen due, the mandatary may require the mandator to tender reasonable security.
(3) If the mandatary suffers any loss due to the administration of the mandated business without negligence in the mandatary, he may claim compensation for the loss from the mandator.

§651 (Cancellation of Mandate)
(1) A mandate may be cancelled by either party at any time.
(2) If one of the parties cancels a mandate at a time that is detrimental to the other party, the former party must compensate the damages suffered by the other party; provided, however, that this shall not apply if there are unavoidable grounds.

§652 (Effect of Cancellation of Mandate)
The provision of §620 shall apply mutatis mutandis to mandates.

§653 (Grounds for Termination of Mandate)
A mandate shall terminate when:
(i) The mandator or mandatary dies;
(ii) The mandator or mandatary is subject to a ruling for the commencement of bankruptcy procedures;
(iii) The mandatary is subject to an order for the commencement of guardianship.

§654 (Disposition after Termination of Mandate)
In cases where a mandate has terminated, if there are pressing circumstances, the mandatary or his heir or legal representative must effect necessary dispositions until the time when the mandator or his heir or legal representatives is able to take charge of the mandated business.

§655 (Requirement for Perfection of Termination of Mandate)
The grounds of termination of mandate may not be asserted against the other party unless the other party was notified of or knew of the same.

§656 (Quasi-Mandate)
The provisions of this Section shall apply mutatis mutandis to mandates of business that do not constitute juristic acts.

Section 11 Deposits

§657 (Deposits)
A deposit shall become effective when one of the parties receives a certain Thing by promising that he will retain it for the other party.

§658 (Use of Deposited Thing and Retention by Third Parties)
(1) A depositary may not use, or allow third parties to retain, the Thing deposited without obtaining the consent of the depositor.
(2) The provisions of §105 and §107 (2) shall apply mutatis mutandis to cases where a depositary may allow third parties to retain deposited Things.

§659 (Duty of Care of Gratuitous Depositary)
A person who has undertaken a deposit gratuitously shall assume a duty to retain the Thing deposited exercising care identical to that he exercises for his own property.

§660 (Obligation of Depositary to Give Notice)
If a third party asserting rights with respect to the Thing deposited has brought a lawsuit against the depositary, or has effected an attachment, provisional attachment, or provisional disposition, the depositary must notify the depositor of that fact without delay.

§661 (Compensation of Damages by Depositor)
The depositor must compensate the depositary for damages that occur due to the nature of or defects in the Thing deposited; provided, however, that this shall not apply if the depositor did not, without negligence, know of such nature or defect, or the depositary knew of the same.

§662 (Depositor's Demand for Return)
Even if the parties specify the time for the return of the Thing deposited, the depositor may demand the return of the same at any time.

§663 (Timing of Return of the Thing Deposited)
(1) If the parties have not specified the timing of the return of the Thing deposited, the depositary may return the same at any time.
(2) If the timing of the return is specified, the depositary may not return the deposited goods prior to the due date unless there are unavoidable grounds.

§664 (Place of Return of the Thing Deposited)
The place for the return of the Thing deposited must be at the place where they are to be retained; provided, however, that, if the depositary has changed the place of retention on reasonable grounds, the return may be made at that current place of retention.

§665 (Mutatis Mutandis Application of Provisions on Mandate)
The provisions of §646 to §649 and §650 (1) & (2) shall apply mutatis mutandis to deposits.

§666 (Deposits for Consumption)
(1) The provisions of Section 5 (Loans for Consumption) shall apply mutatis mutandis to cases where a depositary may, under the contract, consume the Thing deposited.
(2) Notwithstanding the provisions of §591 (1) which shall apply mutatis mutandis under Para 1, if the contract referred to in Para 1 does not specify the timing of the return, the depositor may demand the return at any time.

Section 12 Partnerships

§667 (Partnership Contracts)
(1) A partnership contract shall become effective when each of the parties promises to engage in joint business by making a contribution.
(2) The subject of the contribution may be services .

§668 (Joint Ownership in Partnership Property)
The contributions of the partners and other partnership property shall be jointly owned by all partners.

§669 (Responsibility for Failure to Provide Monetary Contribution)
In cases where monies are the subject of the contribution, if any partner fails to contribute his share of the contribution, he must pay interest on the same and otherwise compensate for damages.

§670 (Method of Business Management)
(1) The management of partnership business shall be determined by the majority of the partners.
(2) If more than one person is delegated to manage the business referred to in Para 1 under the partnership contract ("Operating Officers"), the same shall be determined by majority.
(3) Notwithstanding the provisions of Para 1 & 2, the ordinary business of a partnership may be performed by each partner or each Operating Officer individually; provided, however, that this shall not apply if other partners or Operating Officers raise objections prior to the completion of the business.

§671 (Mutatis Mutandis Application of Provisions on Mandates)
The provisions of §644 to §650 inclusive shall apply mutatis mutandis to partners who manage the business of a partnership.

§672 (Resignations and Dismissals of Operating Partners)
(1) If one or more partners are delegated to manage partnership business under the partnership contract, those partners may not resign without reasonable grounds.
(2) The partners referred to in Para 1 may be dismissed by the unanimous agreement of the other partners, limited to cases where there are justifiable grounds.

§673  (Inspections by Partners of Condition of Partnership Business and Property)
Each partner may inspect the condition of the business and property of the partnership even if he does not have the right to manage the business of the partnership.

§674 (Proportions of Partners' Distributions of Profits and Losses)
(1) If partners have not specified the proportions of the distributions of the partnership's profits and losses, the proportions shall be determined in proportion to the value of each partner's contribution.
(2) If the proportions of the distributions are specified solely with respect to either profits or losses, it shall be presumed that the proportions are common to profits and losses.

§675 (Exercise of Right of Creditors of the Partnership against Partners)
If a creditor of a partnership did not know, when his claim arose, the proportions of the partners' shares of losses, the creditor may exercise his rights against each partner in equal proportions.

§676  (Disposal of Partners' Shares and Division of Partnership Property)
(1) If a partner disposes of his share with respect to the partnership property, the disposal may not be asserted against the partnership and third parties who had dealings with the partnership.
(2) A partner may not seek the division of the partnership property before the same is liquidated.

§677 (No Set-off by Obligor of Partnership)
An obligor of a partnership may not set off his obligation against his claim against the partners.

§678 (Withdrawal of Partners)
(1) If a partnership contract does not specify the duration of the partnership, or specifies that the partnership is to continue for the life of a certain partner, each partner may withdraw at any time;
provided, however, that, unless there are unavoidable grounds, a partner may not withdraw at a time that is detrimental to the partnership.
(2) Even in cases where the duration of the partnership is specified, each partner may withdraw if there are unavoidable grounds.

§679 (Withdrawal of Partners)
In addition to the cases referred to in §678, partners shall withdraw on the following grounds:
(i) The partner dies;
(ii) The partner is subject to a ruling for the commencement of bankruptcy procedures;
(iii) The partner is subject to an order for the commencement of guardianship;
(iv) The partner has been expelled.

§680 (Expulsion of Partners)
The expulsion of a partner may be effected by the unanimous agreement of the other partners, limited to cases where there are justifiable grounds; provided, however, that the expulsion may not be asserted against a partner who is expelled unless a notice to that effect is given to that partner.

§681 (Refunds of Shares of Withdrawing Partners)
(1) Accounts as between the withdrawing partner and other partners must be settled according to the condition of the partnership property as at the time of the withdrawal.
(2) The share of the withdrawing partner may be refunded in money, regardless of the kind of his contribution.
(3) With respect to any matter not yet completed at the time of the withdrawal, accounts may be made up subsequent to the completion of that matter.

§682 (Causes of Dissolution of Partnerships)
A partnership shall be dissolved on the successful completion of the business that is its object, or by the impossibility of such successful completion.

§683 (Request for Dissolution of Partnerships)
Each partner may request the dissolution of the partnership if there are unavoidable grounds.

§684 (Effect of Cancellation of Partnership Contracts)
The provisions of §620 shall apply m/mutandis to partnership contracts.

§685  (Liquidation of Partnerships and Appointment of Liquidators)
(1) When a partnership is dissolved, the liquidation shall be administered jointly by all partners or by a liquidator appointed by the same.
(2) A liquidator shall be appointed by a majority of all partners.

§686 (Method of Management of Liquidators' Business)
The provisions of §670 shall apply mutatis mutandis to cases where there is more than one liquidator.

§687 (Resignations and Dismissals of Liquidators who are Partners)
The provisions of §672 shall apply mutatis mutandis to cases where the liquidator is appointed from among the partners under the partnership contract.

§688 (Duties and Authority of Liquidators and Method of Division of Residual Assets)
(1) A liquidator shall have the duties to:
(i) conclude the current business
(ii) collect debts and perform obligations; and
(iii) deliver the residual assets.
(2) The liquidator may perform any and all acts in order to perform its duties listed in the respective items of Para 1.
(3) Residual assets shall be distributed in proportion to the value of the contributions of each partner.

Section 13 Life Annuities

§689 (Life Annuities)
Life annuities shall become effective when one of the parties promises to deliver monies or other Things to the other party or a 3rd party periodically until the death of the 1st party, the other party or the 3rd party.

§690 (Accounting for Life Annuities)
Life annuities shall be calculated on a daily basis.

§691 (Cancellation of Contracts for Life Annuities)
(1) In cases where the obligor in a life annuity has received the principal for the life annuity, if the obligor fails to pay the life annuity or fails to perform other obligations, the other party may demand the return of the principal. In such cases, the other party must return the amount of the life annuity he has already received to the obligor of the life annuity, less the amount of the interest on that principal.
(2) The provisions of Para 1 shall not preclude claims for damages.

§692 (Cancellation of Contracts for Life Annuities and Simultaneous Performance)
The provisions of §533 shall apply m/mutandis to cases referred to in §691.

§693 (Declaration of Continuation of Claim for Life Annuity)
(1) If a death provided for in §689 occurs due to grounds attributable to the obligor in a life annuity, the court may, at the request of the obligee in the life annuity or the obligee's heirs, declare that the life annuity claim shall continue for a reasonable period.
(2) The provisions of Para 1 shall not preclude the exercise of the rights provided in §691.

§694 (Testamentary Gifts of Life Annuities)
The provisions of this Section (Life Annuities) shall apply mutatis mutandis to testamentary gifts of life annuities.

Section 14 Settlements

§695 (Settlements)
A settlement shall become effective when the parties to a dispute promise to settle the dispute through reciprocal concessions.

§696 (Effect of Settlements)
In cases where it is admitted at settlement that one of the parties has the rights that are the subject of the dispute, or that the other party did not have the rights, if conclusive evidence is obtained to the effect that the 1st party did not have the rights in the past, or that the other party did have the rights, the rights are regarded as either transferred to the 1st party or extinguished at settlement.

Chapter 3 Negotiorum Gestio (Management of Business)

§697 (Negotiorum Gestio ≪Management of Business≫)
(1) A person who commences the management of a business for another person without being obligated to do so ("Manager") must manage that business ("Management of Business") in accordance with the nature of the business, using the method that best conforms to the interests of that another person (the principal).
(2) The Manager must engage in Management of Business in accordance with the intentions of the principal if the Manager knows, or is able to conjecture that intention.

§698 (Urgent Management of Business)
If a Manager engages in the Management of Business in order to allow a principal to escape imminent danger to the principal's person, reputation or property, the Manager shall not be liable to compensate for damages resulting from the same unless he has acted in bad faith or with gross negligence.

§699 (Obligation of Managers to Give Notice)
A Manager must notify the principal that the Manager has commenced the Management of Business; provided, however, that this shall not apply if the principal already knows of the same.

§700 (Continuation of Management of Business by Managers)
A Manager must continue the Management of Business until the principal or his heirs or legal representa- tives can undertake it; provided, however, that this shall not apply in cases where it is evident that the continuation of the Management of Business is contrary to the intentions of the principal, or is disadvan- tageous to the principal.

§701 (Mutatis Mutandis Application of Provisions on Mandates)
The provisions of §645 - §647 inclusive shall apply mutatis mutandis to the Management of Business.

§702 (Managers' Claims for Reimbursement of Costs)
(1) If a Manager has incurred useful expenses for a principal, the Manager may claim reimbursement of those costs from the principal.
(2) The provisions of §650 (2) shall apply m/mutandis to cases where a Manager has incurred useful obligations on behalf of the principal.
(3) If a Manager has engaged in the Management of Business against the intention of the principal, the provisions of Para 1 & 2 shall apply m/mutandis, solely to the extent the principal is actually enriched.

Chapter 4 Unjust Enrichment

§703 (Obligation to Return Unjust Enrichment)
A Beneficiary who has benefited from the property or labor of others without legal cause and has thereby caused loss to others shall assume an obligation to return that benefit, to the extent the benefit exists.

§704 (Obligation of Beneficiaries in Bad Faith to Return)
A Beneficiary in bad faith must return the benefit received together with interest thereon.
In such cases, if any damages still remain, the Beneficiary shall be liable to compensate for the same.

§705 (Performance knowing of Absence of Obligation)
A person who has tendered anything as performance of an obligation may not demand the return of the thing tendered if the person knew, at the time, that the obligation did not exist.

§706 (Performance before Due Date)
If an obligor has tendered anything as performance of an obligation that has not yet fallen due, the obligor may not demand the return of the thing tendered; provided, however, that, if the obligor tendered anything by mistake, the obligee must return the benefit gained as a result.

§707  (Performance of Obligations of Others)
(1) In cases where a non-obligor has performed an obligation by mistake, if the obligee has, in good faith, allowed the instrument to be lost, damaged the instrument, waived the security or lost the claim by prescription, the person who performed the obligation may not demand the return of the performance.
(2) The provisions of Para 1 shall not preclude the person who performed an obligation from exercising his right of subrogation against the obligor.

§708 (Performance for Illegal Causes)
A person who has tendered performance of an obligation for an illegal cause may not demand the return of the thing tendered; provided, however, that this shall not apply if the illegal cause existed solely in relation to the Beneficiary.

Chapter 5 Torts

§709 (Damages in Torts)  
A person who has intentionally or negligently infringed any right of others, or legally protected interest of others, shall be liable to compensate any damages resulting in consequence.

§710 (Compensation for Damages Other than Property)
Persons liable for damages under §709 must also compensate for damages other than those to property, regardless of whether the body, liberty or reputation of others have been infringed, or property rights of others have been infringed.

§711 (Compensation for Damages to Next of Kin)
A person who has taken the life of another must compensate for damages to the father, mother, spouse and children of the victim, even in cases where the property rights of the same have not been infringed. (including mental compensation)

§712 (Capacity for Liability)
In cases where a minor has inflicted damages on others, if the minor does not have sufficient intellectual capacity to appreciate his liability for his own act, the minor shall not be liable to compensate for that act.

§713 (Capacity for Liability)
A person who has inflicted damages on others while he lacks the capacity to appreciate his liability for his own act due to mental disability shall not be liable to compensate for the same; provided, however, that this shall not apply if he has temporarily invited that condition, intentionally or negligently.

§714(Liability of Person Obligated to Supervise a Person without Capacity)
(1) In cases where a person w/o capacity to assume liability is not liable in accordance with the provisions of §712 & §713, the person with the legal obligation to supervise the person w/o capacity to assume liability shall be liable to compensate for damages that the person w/o capacity to assume liability has inflicted on a third party; provided, however, that this shall not apply if the person who has the obligation to supervise did not fail to perform his obligation or if the damages could not have been avoided even if he had not failed to perform his obligation.
(2) A person who supervises a person w/o capacity to assume liability, on behalf of a person who has the obligation to supervise, shall also assume the liability under Para 1.

§715 (Liability of Employers)
(1) A person who employs others for a certain business shall be liable for damages inflicted on a 3rd party by his employees with respect to the execution of that business; provided, however, that this shall not apply if the employer exercised reasonable care in appointing the employee or in supervising the business, or if the damages could not have been avoided even if he had exercised reasonable care.
(2) A person who supervises the business on behalf of the employer shall also assume such liability.
(3) The provisions of Para 1 & 2 shall not preclude the employer or supervisor from exercising their right to obtain reimbursement against the employee.

§716 (Liability of Party Ordering Work)
A party ordering work shall not be liable for the damages a contractor inflicted on a third party with respect to his work; provided, however, that this shall not apply if the party ordering work is negligent in his order or instructions.

§717 (Liability of Possessor and Owner of Structure on Land)
(1) If any defect in the installation or preservation of any structure on land causes damages to others, the possessor of such structure shall be liable to the victims to compensate for those damages; provided, however, that, if the possessor has used necessary care to prevent the damages arising, the owner must compensate for the damages.
(2) The provisions of Para 1 shall apply m/mutandis to cases where there is any defect in the planting or support of bamboos and trees.
(3) In the cases of Para 1 & 2, if there is another person who is liable for the cause of the damages, the possessor or owner may exercise their right to obtain reimbursement against such person.

§718 (Liability of Possessor of Animal)
(1) A possessor of an animal shall be liable to compensate for the damages that it has inflicted on others; provided, however, that this shall not apply if he managed the animal with reasonable care according to the kind and nature of the animal.
(2) A person who manages animal on behalf of the possessor shall also assume the liability under Para 1.

§719 (Liability of Joint Tortfeasors)
(1) If more than one person has inflicted damages on others by their joint tortious acts, each of them shall be jointly and severally liable to compensate for those damages.
The same shall apply if it cannot be ascertained which of the joint tortfeasors inflicted the damages.
(2) The provisions of Para 1 shall apply to any person who incited(instigated) or was an accessory to the perpetrator, by deeming him to be one of the joint tortfeasors.

§720 (Self-Defense and Aversion of Present Danger)
(1) A person who, in response to the tortious act of another, unavoidably commits a harmful act to protect himself, the rights of a third party, or any legally protected interest, shall not be liable for damages; provided, however, that the victim shall not be precluded from claiming damages against the person who committed the tortious act.
(2) The provisions of Para 1 shall apply mutatis mutandis to cases where a Thing belonging to others is damaged to avoid imminent danger arising from that Thing.

§721 (Fetus' Capacity to Hold Rights regarding the Right to Demand Compensation for Damages)
An unborn child shall be deemed to have been already born with respect to the right to demand compensation for damages.

§722 (Method of Compensating Damages and Comparative Negligence)
(1) The provisions of §417 shall apply mutatis mutandis to compensation for damages in tort.
(2) If a victim is negligent, the court may determine the amount of compensation by taking that factor into consideration.

§723 (Recovery in Defamation)
The court may, at the request of the victim, order a person who defamed others, to effect appropriate measures to restore the reputation of the victim in lieu of, or in addition to, compensate for damages.

§724  (Restriction of Period of Right to Demand Compensation for Damages in Tort)
The right to demand compensation for damages in tort shall be extinguished by the operation of prescription if it is not exercised by the victim or his legal representative within 3 years from the time when he comes to know of the damages and the identity of the perpetrator.  
The same shall apply when 20 years have elapsed from the time of the tortious act.

Part IV Relatives
Chapter I General Provisions

§725
 (Range of Relatives)
The following persons shall be relatives
(i) a relative by blood within the sixth degree
(ii) A spouse; and
(iii) a relative by affinity within the third degree.

§726 (Determining Degree of kinship)
(1) The degree of kinship between two relatives shall be determined by counting the number of generations between them.
(2) The degree of kinship between collateral relatives shall be determined by counting the number of generations between a person or his spouse up to a common ancestor and back down to the other person.

§727 (Relationship through Adoption)
From the time of adoption, the relationship between an adopted child and an adoptive parent (and his relative by blood) shall be deemed to be the same as that between relatives by blood.

§728 (End of Relationship by Affinity by Divorce etc.)
(1) The relationship between relatives by affinity shall come to an end by divorce.
(2) The same shall apply in the case where a spouse has died and the surviving spouse indicates an intention to end the relationship between relatives by affinity.

§729 (End of Adoptive Relation by Dissolution)
The relationship of an adopted child, his spouse, any of his lineal descendants and their spouses with an adoptive parent and his spouse shall come to an end by dissolution of adoptive relation.

§730 (Mutual Help between Relatives)
Lineal relatives by blood and relatives who live together shall help one another.

Chapter II Marriage
Section 1 Formation of Marriage
Subsection 1 Requirements for Marriage

§731
 (Marriageable Age)
A man who has attained 18 years, and a woman who has attained 16 years of age may enter into marriage.

§732 (Prohibition of Bigamy)
A person who has a spouse shall not enter into another marriage.

§733 (Period of Prohibition of Remarriage)
(1) A woman may not remarry unless 100 days have passed since the day of dissolution or rescission of her previous marriage.
(2) The provision of Para 1 shall not apply in the following cases:
(i) In the case where a woman had not conceived a child at the time of the cancellation or dissolution of her previous marriage
(ii) In the case where a woman had given a birth after the cancellation or dissolution of her previous marriage

§734 (Prohibition of Marriage between Close Relatives)
(1) Neither lineal relatives by blood nor collateral relatives by blood within the third degree of kinship may marry; provided that this shall not apply between an adopted child and his collateral relatives by blood through adoption.
(2) The Para 1 shall also apply after the termination of a family relationship pursuant to the provision of §817-9.

§735 (Prohibition of Marriage between Lineal Relatives by Affinity)
Lineal relatives by affinity may not marry. This shall also apply after the termination of a relationship by affinity pursuant to the provisions of §728 or §817-9.

§736 (Prohibition of Marriage between Adoptive Parent and Child etc.)
Even after the termination of a family relationship pursuant to the provision of §729, an adopted child or spouse of adopted child, or a lineal descendant or spouse of a lineal descendant, may not marry an adoptive parent or his lineal ascendant.

§737 (Parental Consent for Marriage of Minor)
(1) A minor shall obtain the consent of both parents to marry.
(2) If one parent does not consent, the consent of the other parent is sufficient.
This shall also apply if one parent is unknown, has died, or is unable to indicate his intent.

§738 (Marriage of Adult Ward)
An adult ward does not require the consent of his guardian of adult to marry.

§739 (Notification of Marriage)
(1) Marriage shall take effect upon notification pursuant to the Family Registration Act.
(2) The notification in Para 1 shall be given by document with the signatures of both parties and not less than 2 adult witnesses, or given orally by these persons.

§740 (Acceptance of Notification of Marriage)
Notification of marriage may not be accepted unless it has been found not to violate the provisions of §731 to §737 inclusive, §739 (2), or the provisions of any other laws and regulations.

§741 (Marriage between Japanese Nationals in Foreign Country)
Two Japanese nationals in a foreign country who intend to marry may give notification to the Japanese ambassador, a minister of legation or consul stationed in that country.
In this case, the provisions of §739 & §740 shall apply m/mutandis.

Subsection 2 Void and Annulled Marriages

§742 (Grounds on Which Marriage is Void)
Marriage shall be void only in the following cases:
(i) if one of the parties has no intention to marry due to mistaken identity or other cause; or
(ii) if the parties do not lodge notification of marriage; provided however, that the effect of marriage shall not be prevented merely because notification was not given in the form prescribed in §739 (2).

§743 (Rescission of Marriage)
Marriage may not be annulled, unless pursuant to the provisions of §744 to §747 inclusive.

§744 (Rescission of Unlawful Marriage)
(1) Either of the parties, their relatives, or a public prosecutor may make a claim to the family court to rescind a marriage if it violates the provisions of §731 to §736 inclusive; provided, however, that a public prosecutor may not claim this after the death of one of the parties.
(2) A spouse or previous spouse of a party to a marriage that violates the provisions of §732 or §733 may claim for rescission of marriage.

§745 (Rescission of Marriage in Violation of Marriageable Age)
(1) When a person of non-marriageable age reaches marriageable age, a claim for rescission of a marriage that violates the provisions of §731 may not be made.
(2) A person of non-marriageable age may claim rescission of marriage within a further three months after he has reached marriageable age; provided that this shall not apply if he has ratified the marriage after reaching marriageable age.

§746 (Rescission of Marriage Formed within the Period of Prohibition of Remarriage)
A claim for rescission may not be made for a marriage that violates the provisions of Art 733 if 6 months have passed from the day on which the previous marriage was cancelled or rescinded, or if a woman has conceived a child after remarriage.

§747 (Rescission of Marriage by Fraud or Duress)
(1) A person who has married due to fraud or duress may make a claim for rescission of marriage to the family court.
(2) The claim for rescission of marriage pursuant to Para 1 lapses upon the passage of 3 months after the party has discovered the fraud or escaped the duress, or upon ratification.

§748 (Effect of Rescission of Marriage)
(1) Rescission of marriage shall not have retroactive effect.
(2) A party who did not know of the cause of rescission at the time of marriage must return property obtained by the marriage to the extent of the gain he actually receives.
(3) A party who was aware of the cause of rescission at the time of marriage must return all of the gain obtained by the marriage. In this case, the party is liable to compensate an adverse party without knowledge for damages.

§749 (Application Mutatis Mutandis of Divorce Provisions)
The provisions of §728 (1), §766-§769, the proviso to §790 (1), and §819 (2)/(3)/(5)/(6) shall apply mutatis mutandis to the rescission of marriage.

Section 2 Effect of Marriage

§750 (Surname of Husband and Wife)
A husband and wife shall adopt the surname of the husband or wife in accordance with that which is decided at the time of marriage.

§751 (Surviving Spouse Reverting to Previous Surname etc.)
(1) If a husband or wife dies, the surviving spouse may revert to using the surname used before marriage.
(2) The provisions of §769 shall apply mutatis mutandis to Para 1 and to the case referred to in §728 (2).

§752 (Duty to Live Together, Cooperate, and Provide Mutual Assistance)
A husband and wife shall live together and provide mutual cooperation and assistance.

§753 (Constructive Adult by Marriage)
If a minor enters into marriage, he/she shall be deemed to have attained majority.

§754 (Right to Rescind Contract between Husband and Wife)
Either husband or wife may at any time during marriage rescind a contract between husband and wife; provided, however, that this may not harm the rights of a third party.

Section 3 Marital Property
Subsection 1 General Provisions

§755
 (Marital Property of Husband and Wife)
The property rights and duties of a husband and wife shall be prescribed by the following subsections, unless they entered into a contract setting forth otherwise, regarding their property before giving notification of the marriage.

§756 (Requirements of Perfection of Contract on Property of Husband & Wife)
If a husband and wife have entered into a contract that departs from the statutory property system, the contract may not be asserted against the successor in title of the husband or wife, or a third party unless registered prior to notification of marriage.

§758 (Limitations on Altering Property Rights of Husband & Wife etc.)
(1) The property rights of a husband and wife may not be altered after notification of marriage.
(2) In the case where one party to a marriage administers property and that property is imperiled by misadministration, the other party may make a claim to the family court for his own administration over that property.
(3) A claim may be made for division of property held in co-ownership together with the claim referred to in Para 2.

§759  (Requirements of Perfection of Change of the Administrator of Property or Division of Property in Co-ownership)
If an administrator of property has been changed, or property held in co-ownership has been divided pursuant to the provisions of §758 or as a result of the contract referred to in §755, this may not be asserted against the successor in title of the husband or wife, or a third party unless it is registered.

Subsection 2 Statutory Marital Property System

§760 (Sharing of Living Expenses)
A husband and wife shall share the expenses that arise from the marriage taking into account their property, income, and all other circumstances.

§761 (Joint & Several Liability for Debts incurred for Household Necessities)
If one party to a marriage engages in a juristic act with a 3rd party regarding everyday household matters, the other party shall be jointly and severally liable for debts that arise from that act; provided that this shall not apply if prior notice is given to the 3rd party to the effect that the other party won't assume such liability.

§762 (Ownership of Property between Husband & Wife)
(1) Property owned by one party before marriage and property obtained in the name of that party during marriage shall be separate property (property owned singularly by one party to a marriage).
(2) Property that does not clearly belong to either husband or wife shall be presumed to be held in co-ownership.

Section 4 Divorce
Subsection 1 Divorce by Agreement

§763
 (Divorce by Agreement)
A husband and wife may divorce by agreement.

§764 (Application Mutatis Mutandis of Marriage Provisions)
The provisions of §738, §739, and §747 shall apply mutatis mutandis to divorce by agreement.

§765 (Acceptance of Notification of Divorce)
(1) Notification of divorce may not be accepted unless the divorce has been found not to violate the provision of §739 (2) applied mutatis mutandis to §764, §819 (1), or the provisions of any other laws and regulations.
(2) If notification of divorce has been accepted despite the violation of the provisions of Para 1, the effect of the divorce shall not be prevented because of this violation.

§766 (Determination of Matters regarding Custody of Child after Divorce etc.) 
(1) If parents divorce by agreement, the matter of who will have custody over a child and any other necessary matters regarding custody shall be determined by that agreement.
If agreement has not been made, or cannot be made, this shall be determined by the family court.
(2) If the family court finds it necessary for the child's interests, it may change who will take custody over the child and order any other proper disposition regarding custody.
(3) The rights and duties of parents beyond the scope of custody may not be altered by the provisions of Para 1 & 2.

§767 (Reversion to Previous Surname by Divorce)
(1) The surname of a husband or wife who has taken a new name by marriage shall revert to the surname used before marriage by divorce by agreement.
(2) A husband or wife whose surname has reverted to the surname before marriage pursuant to the provision of Para 1 may use the surname he used at the time of divorce by notification pursuant to the Family Registration Act within 3 months of the time of divorce.

§768 (Distribution of Property)
(1) One party to a divorce by agreement may claim a distribution of property from the other party.
(2) If the parties do not, or cannot, settle on agreement with regard to the distribution of property pursuant to the provision of Para 1, either party may make a claim to the family court for a disposition in lieu of agreement; provided that this claim for distribution of property shall be extinguished at the expiration of
2 years from the day of divorce.
(3) In the case referred to in Para 2, the family court shall determine whether to make a distribution, and the amount and method of that distribution, taking into account the amount of property obtained through the cooperation of both parties and all other circumstances.

§769 (Assumption of Rights upon Reversion to Prev Surname by Divorce)
(1) If a husband or wife who has taken a new surname by marriage divorces by agreement after inheriting the rights contained in §897 (1), the matter of who will be the successor of those rights shall be determined by agreement of the parties and any other interested persons.
(2) If the agreement of Para 1 is not, or cannot be, made, the family court shall determine who will be the successor of the rights in Para 1.

Subsection 2 Judicial Divorce

§770 (Judicial Divorce)
(1) Only in the cases stated in the following items may either husband or wife file a suit for divorce:
(i) if a spouse has committed an act of unchastity;
(ii) if abandoned by a spouse in bad faith;
(iii) if it is not clear whether a spouse is dead or alive for not less than 3 years;
(iv) if a spouse is suffering from severe mental illness and there is no prospect of recovery; or
(v) if there is any other grave cause making it difficult to continue the marriage.
(2) A court may dismiss a suit for divorce if it finds continuing the marriage reasonable taking into account all circumstances, even in the case where there is a cause listed in Para 1 (i) to (iv) inclusive.

§771 (Application Mutatis Mutandis of Divorce by Agreement Provisions)
The provisions of §766 to §769 inclusive shall apply mutatis mutandis to the case of judicial divorce.

Chapter III Parent and Child
Section 1 Natural Children


§772 (Presumption of Child in Wedlock)
(1) A child conceived by a wife during marriage shall be presumed to be a child of her husband.
(2) A child born after 200 days from the formation of marriage or within 300 days of the day of the dissolution or rescission of marriage shall be presumed to have been conceived during marriage.

§773 (Determination of Paternity by Court)
In the case where a woman gives birth in violation of the provisions of §733 (1), if the paternity of the child cannot be determined pursuant to the provisions of §732, the court shall determine paternity of the child.

§774 (Rebutting Presumption of Legitimacy)
Under the circumstances described in §772, a husband may rebut the presumption of the child in wedlock.

§775 (Action to Rebut Presumption of Legitimacy)
The father's right to rebut the presumption of child in wedlock under §774 shall be exercised by an action of denial of child in wedlock against the child or a mother who has parental authority.
If there is no mother who has parental authority, the family court shall appoint a special representative.

§776 (Recognition of Legitimacy)
If a husband recognizes that a child is his child in wedlock after the birth of the child, he shall lose his right to rebut the presumption of legitimacy.

§777 (Limitation upon Action of Rebutting Presumption of Legitimacy)
A husband shall bring an action to rebut the presumption of the child in wedlock within one year of knowing of the child's birth.

§778  (Limitation upon Action of Rebutting Presumption of Legitimacy)
If the husband is an adult ward, the period of §777 shall begin from the time the husband knew of the child's birth after the rescission of an order for commencement of guardianship.

§779 (Affiliation/Recognition)
A father or a mother may affiliate his child out of wedlock.

§780 (Competency for Affiliation)
A father or a mother does not require the consent of a legal representative for affiliation, even if he is a minor or an adult ward.

§781 (Method of Affiliation)
(1) Affiliation shall be made thru notification pursuant to the provisions of the Family Registration Act.
(2) Affiliation may also be made by will.

§782 (Affiliation of Adult Child)
A father or mother may not affiliate his adult child without that adult child's consent.

§783 (Affiliation of Unborn Child or Child who has Died)
(1) A father may also affiliate his unborn child. In this case, the mother's consent shall be obtained.
(2) If a child has died, a father or mother may still give affiliation, limited to the case where that child had a lineal descendant. In this case, if that lineal descendant is an adult, his consent shall be obtained.

§784 (Effect of Affiliation)
Affiliation has retroactive effect from the time of birth; provided that this shall not prejudice a right already acquired by a third party.

§785 (Prohibition of Rescission of Affiliation)
A father or a mother who has given affiliation may not rescind that affiliation.

§786 (Assertion of Opposing Facts against Affiliation)
A child or any other interested person may assert opposing facts against an affiliation.

§787 (Action for Affiliation)
A child, his lineal descendant, or the legal representative of either, may bring an action for affiliation; provided that this shall not apply if 3 years have passed since the day of the death of the parent.

§788 (Determination of Matters with Regard to Custody of Child after Affiliation etc.)
In the case where a father gives affiliation, the provisions of §766 shall apply mutatis mutandis.

§789 (Legitimation)
(1) By the marriage of his mother and father, a child affiliated by his father shall acquire the status of a child in wedlock.
(2) A child affiliated by his parents while they are married shall acquire the status of a child in wedlock from the time of that affiliation.
(3) The provisions of Para 1 & 2 shall apply mutatis mutandis in the case where a child has already died.

§790 (Child's Surname)
(1) A child in wedlock shall take the surname of his parents; provided that if the parents divorce before the child is born, the child shall take the surname of his parents at the time of divorce.
(2) A child out of wedlock shall take the surname of his mother.

§791 (Change of Child's Surname)
(1) In the case where a child's surname differs from that of his father or mother, he may take the name of his father or mother by notification pursuant to the provisions of the Family Registration Act after having obtained the family court's permission.
(2) In the case where a child's surname differs from that of his parents due to his father or mother taking a new surname, he may take the name of his parents, if they are married, without obtaining the permission referred to in Para 1 by notification pursuant to the provisions of the Family Registration Act.
(3) If a child has not attained 15 years of age, his legal representative may perform the acts referred to in Para 1 & 2 on his behalf.
(4) A minor who has taken a new surname pursuant to the provisions of Para 1-3 may revert to using his previous surname within 1 year of attaining majority by notification pursuant to the provisions of the Family Registration Act.

Section 2 Adoption
Subsection 1 Requirements for Adoption

§792 (Age of Adoptive Parent)
A person who has attained the age of majority may adopt another as his child.

§793 (Prohibition of Adopting Ascendant or Person of Greater Age)
Neither an ascendant nor a person of greater age may be adopted.

§794 (Adoption of Ward by Guardian)
Where a guardian adopts a ward (here and below, referring to a minor ward and an adult ward), he shall obtain the permission of the family court. The same shall apply in the case where the guardianship has ceased but the account of administration of the property has not been settled.

§795 (Adoption of Minor by Married Person)
A married person shall adopt a minor only jointly with the spouse; provided, however, that this shall not apply in cases where he adopts a child in wedlock of his spouse or his spouse is incapable of indicating her intention.

§796 (Adoption by Married Person)
A married person shall only adopt or be adopted by another with the consent of his spouse,; provided, however, that this shall not apply in the case he adopts or is adopted with his spouse jointly, or his spouse is incapable of indicating her intention.

§797 (Adoption of Person under 15 years of age)
(1) If a person to be adopted has not attained 15 years of age, his legal representative may give his consent to the adoption of that person on behalf of that person.
(2) Where a person to be adopted is cared for by one of his parents and that parent does not have parental authority in relation to the person but cares for the person in accordance with Article 766, a legal representative shall obtain the consent of that parent before giving the consent referred to in Para 1.

§798 (Adoption of Minor)
Where a person to be adopted is a minor, the permission of the family court shall be obtained; provided that this shall not apply in the cases where the person to be adopted is a lineal descendant of either the adoptive parent or the adoptive parent's spouse.

§799  (Application Mutatis Mutandis of Marriage Provisions)
The provisions of §738 & §739 shall apply mutatis mutandis to adoption.

§800  (Acceptance of Notification of Adoption)
No notification of adoption shall be accepted until it has been found that the adoption does not violate any of the provisions of §792 to §799 inclusive or the provisions of any other laws and regulations.

§801  (Formalities for Adoption between Japanese Nationals in Foreign Country)
If a Japanese national in a foreign country intends to adopt, or to be adopted by, another Japanese national in that country, notification of adoption may be made to the Japanese ambassador, minister or consul acting in that country. In this case, the provisions of §739 applied m/mutandis to §799 and the provision of §800 shall apply mutatis mutandis.

Subsection 2 Nullity and Rescission of Adoption

§802 (Nullity of Adoption)
Adoption shall be void only on the following grounds:
(i) if there is no agreement to the adoption between the parties, as a result of mistaken identity or otherwise; or
(ii) if the parties do not give notification of adoption; provided that the effect of adop/n shall not be prevented merely because notification was not in the formality prescribed in §739 (2) applied mutatis mutandis to §799.

§803 (Rescission of Adoption)
Adoption shall only be annulled pursuant to the provisions of §804 to §808 inclusive.

§804 (Rescission of Adoption Where Adoptive Parent Is Minor)
An adoptive parent or his legal representative may petition the family court for rescission of an adoption that violates the provision of §792; provided that this shall not apply in the cases where 6 months have passed from the time the adoptive parent attains the age of majority or he has ratified the adoption.

§805 (Rescission of Adoption Where Adopted Child is Ascendant or of Greater Age)
Either of the parties to an adoption or any relative of them may apply to the family court for rescission of an adoption that violates the provision of §793.

§806 (Rescission of Adoption between Guardian and Ward not Assented to by the Family Court)
(1) An adopted child or any natural relative of the child may apply to the family court for rescission of an adoption that violates the provisions of §794; provided, however, that this shall not apply after the account of administration has been settled if the adopted child ratifies the adoption or if 6 months have passed since settlement.
(2) No ratification in the proviso to Para 1 shall take effect, unless the adopted child ratified the adoption after he had attained the age of majority or had recovered legal capacity to act.
(3) Where the account has been settled but the adopted child has not attained the age of majority or has not recovered legal capacity to act, the period referred to in the proviso to Para 1 shall be calculated from the time the adopted child attains the age of majority or recovers legal capacity to act.

§806-2 (Rescission of Adoption Without Spousal Consent etc.)
(1) A person who does not give his consent to an adoption may apply to the family court for rescission of an adoption that violates the provisions of Art 796; provided that this shall not apply in the cases where six months have passed from the time the person had knowledge of the adoption or he ratified the adoption.
(2) A person who gave the consent referred to in §796 by fraud or duress may apply to the family court for rescission of the adoption; provided that this shall not apply in cases where 6 months have passed from the time the person had knowledge of fraud or escaped from duress, or the person ratified the adoption.

§806-3  (Rescission of Adoption made without Consent of Person Who Cares for Child etc.)
(1) A person who does not give his consent to the adoption may apply to the family court for rescission of an adoption that violates the provision of §797 (2); provided that this shall not apply if the person has ratified the adoption, or if, after the adopted child has reached 15 years of age, 6 months have passed or the child has ratified the adoption.
(2) The provisions of §806-2 (2) shall apply m/mutandis to the consent referred to in §797 (2) made due to fraud or duress.

§807 (Rescission of Adoption of Minor not Assented to by Family Court)
An adopted child, any natural relative of the child, or a person who gave his consent to the adoption on the adopted child's behalf may apply to the family court for rescission of an adoption that violates the provisions of §798; provided, however, that this shall not apply if, after the adopted child attains majority, 6 months have passed or he has ratified the adoption.

§808 (Application Mutatis Mutandis of Provisions regarding rescission of Marriage etc.)
(1) The provisions of §747 & §748 shall apply mutatis mutandis to adoption.
In this case, '3 months' in §747 (2) shall be read as '6 months'.
(2) The provisions of §769 and §816 shall apply mutatis mutandis to the rescission of adoption.

Subsection 3 Effect of Adoption

§809
 (Acquisition of Status of Child in wedlock)
An adopted child acquires the status of a child in wedlock of his adoptive parent(s) from the time of adoption.

§810 (Surname of Adopted Child)
An adopted child shall take the surname of his adoptive parent(s); provided that this shall not apply to an adopted child who has changed his surname by marriage and continues to use the surname determined at the time of marriage.

Subsection 4 Dissolution of Adoptive Relations

§811 (Dissolution of Adoptive Relations by Agreement etc.)
(1) Parties to an adoption may agree to dissolve the adoptive relationship.
(2) If an adopted child is under 15 years of age, an adoptive parent and a person to be a legal representative of the child after the dissolution of adoptive relation may agree to dissolve the adoptive relation.
(3) If, in the case referred to in Para 1, the parents of the adopted child divorce, they may agree that one of them should have parental authority with respect to the child after the dissolution of adoptive relation.
(4) If the parents of the adopted child do not, or cannot, make the agreement referred to in Para 3, the family court may, on the application of a father, a mother, or an adoptive parent referred to in Para 3, make a ruling in lieu of the agreement.
(5) If there is no person to be a legal representative of the adopted child for the purposes of Para 2, the family court may, on the application of any relative of the adopted child or any other interested party, appoint a person to be a guardian of a minor for the adopted child after the dissolution of adoptive relation.
(6) If one of the parties to an adoption has died and the surviving party intends to dissolve the adoptive relation, he may do so with the permission of the family court.

§811-2 (Dissolution of Adoptive relation Between Married Couple and Minor)
Where adoptive parents who are married to each other intend to dissolve the adoptive relation with a minor, they shall do so jointly; provided, however, that this shall not apply if one of them is incapable of indicating his intention.

§812 (Application Mutatis Mutandis of Marriage Provisions)
The provisions of §738, §739 & §747 shall apply mutatis mutandis to dissolution of adoptive relation.
In this case, '3 months' in §747 (2) shall be read as '6 months'.

§813 (Acceptance of Notification of Dissolution of Adoptive Relation)
(1) No notification of dissolution of adoptive relation shall be accepted until it has been found not to violate any of the provisions of §739 (2) applied m/mutandis to §812, §811 & §811-2, or the provisions of any other laws and regulations.
(2) Where the notification of dissolution of adoptive relation has been accepted in violation of the provisions of Para 1, the dissolution is not prevented from taking effect due to the violation.

§814 (Judicial Dissolution of Adoptive Relation)
(1) Either of the parties to an adoption may, in the following cases only, bring an action for dissolution of adoptive relation:
(i) if he has been abandoned in bad faith by the other party;
(ii) if it is not clear whether the other party is dead or alive for not less than 3 years; or
(iii) if there is any other material ground making it difficult to continue the adoptive relation.
(2) The provision of §770 (2) shall apply mutatis mutandis to the cases listed in items i & ii of Para 1.

§815 (Party to Action for Dissolution of Adoptive Relation When Adopted Child below 15 years of age)
If an adopted child has not attained 15 years of age, a person who may make an agreement with the adoptive parent(s) to dissolve the adoptive relation pursuant to the provisions of §811 may bring or be subject to an action for dissolution of adoptive relation.

§816 (Resumption of Surname by Dissolution of Adoptive Relation)
(1) An adopted child shall resume using the surname he used before the adoption by dissolution of adoptive relation; provided that this shall not apply where a married person adopted another as his child with his spouse jointly and the adopted child dissolved the adoptive relation with only one of adoptive parents.
(2) If a person resumes using the name he used before the adoption pursuant to the provision of Para 1 after 7 years have passed since the time of adoption, he may take the surname used at the time of dissolution of adoptive relation by giving notification, pursuant to the provisions of the Family Registration Act, within 3 months of the day of dissolution.

§817  (Assumption of Rights upon Resumption of Surname by Dissolution of Adoptive Relations)
The provisions of §769 shall apply m/mutandis to dissolution of adoptive relations.

Subsection 5 Special Adoption

§817-2 (Making of Special Adoption)
(1) The family court may, on the application of a person to be an adoptive parent, make a ruling establish- ing a 'special adoption' which extinguishes the legal relationship between a child and his natural relatives.
(2) The permission referred to in §794 or §798 is not required for the application referred to in the provision of Para 1.

§817-3 (Joint Adoption by Married Couple)
(1) A person to be an adoptive parent shall be a married person.
(2) If one spouse does not become an adoptive parent, the other spouse may not be an adoptive parent; provided, however, that this shall not apply if that spouse intends to adopt a child in wedlock of the other spouse (excluding an adopted child who is not the subject of a special adoption ruling).

§817-4 (Age of Person to be Adoptive Parent)
A person who has not attained 25 years of age may not be an adoptive parent; provided that this shall not apply if one spouse of a married couple to be adoptive parents has attained 20 years of age but has not attained 25 years of age.

§817-5 (Age of Person to be Adopted Child)
No person who has attained 6 years of age at the time of the application referred to in the provisions of
§817-2 shall be adopted; provided that this shall not apply if he has not attained 8 years of age and has been continually cared for by a person to be an adoptive parent since before the child attained 6 years of age.

§817-6 (Parental Consent)
A ruling of special adoption shall only be made if both parents of a person to be adopted gives his consent to the special adoption; provided that this shall not apply in cases where the parents are incapable of indicating their intention or the parents have abused the child, abandoned the child without reasonable cause, or there is any other cause of grave harm to the interests of the person to become the adopted child.

§817-7 (Necessity Especially for the Interests of the Child)
A ruling of special adoption shall only be made if both parents of a person to be adopted are incapable or unfit to care for the child or there are any other special circumstances, and it is found that the special adoption is especially necessary for the interests of the child.

§817-8 (Circumstances of Care)
(1) In making a ruling of special adoption, the circumstances of not less than 6 months of the care given by the person(s) to become adoptive parent(s) over the person to become the adopted child shall be considered.
(2) The period in Para 1 shall be calculated from the time of the application referred to in the provisions of §817-2; provided that this shall not apply if the circumstances of care are evident prior to the application.

§817-9 (Extinguishment of Legal Relationship with Natural Relatives)
The legal relationship between an adopted child and his natural parents and relative by bloods shall be extinguished by a ruling of special adoption; provided that this shall not apply to the legal relationship with the other party referred to in the provision of the proviso to §817-3 (2) and his relative by bloods.

§817-10 (Dissolution of Special Adoption)
(1) The family court may, on the application of the adopted child, his natural parents or a public prosecutor, make a ruling dissolving the adoptive relation, if both of the following items are satisfied and the family court finds it especially necessary for the interests of the adopted child:
(i) the adoptive parents have abused, or abandoned in bad faith, the adopted child or there is any other ground of extreme harm to the interests of the adopted child;
(ii) the natural parent(s) are capable of providing reasonable care for the child.
(2) Dissolution of special adoption shall only be made pursuant to the provision of Para 1.

§817-11 (Restoration of Legal Relationship with Natural Relatives by Dissolution of Adoptive Relation)
The same legal relationship that was extinguished by the special adoption shall arise between an adopted child and his natural parents and their relatives by blood from the time of dissolution of adoptive relation.

Chapter IV Parental Authority
Section 1 General Provisions


§818 (Person Who Has Parental Authority)
(1) A child who has not attained the age of majority shall be subject to the parental authority of his parents.
(2) If a child is an adopted child, he shall be subject to the parental authority of his adoptive parents.
(3) Parental authority shall be exercised jointly by married parents; provided that if either parent is incapable of exercising parental authority, the other parent shall do so.

§819 (Person Who Has Parental Authority in the Case of Divorce or Recognition)
(1) If parents divorce by agreement, they may agree upon which parent shall have parental authority in relation to a child.
(2) In the case of judicial divorce, the court shall determine which parent shall have parental authority.
(3) In the case where parents divorce before the birth of a child, the mother shall exercise parental rights and duties; provided that the parties may agree that the father shall have parental authority after the child is born.
(4) A father shall only exercise parental authority with regard to a child of his that he has affiliated if both parents agree that he shall have parental authority.
(5) When the parents do not, or cannot, make the agreements referred to in Para1, 3 and 4, the family court may, on the application of the father or the mother, make a ruling in lieu of agreement.
(6) The family court may, on the application of any relative of the child, rule that the other parent shall have parental authority in relation to the child if it finds it necessary for the interests of the child.

Section 2 Effect of Parental Authority

§820 (Right and Duty of Care and Education)
A person who exercises parental authority holds the right, and bears the duty, to care for and educate the child for the interests of the child.

§821 (Determination of Residence)
Residence of a child shall be determined by a person who exercises parental authority.

§822 (Discipline)
A person who exercises parental authority may discipline the child to the extent necessary for the care and education stipulated in Art 820.

§823 (Permission for Occupation)
(1) A child may not have an occupation w/out the permission of a person who exercises parental authority.
(2) A person who exercises parental authority may revoke or limit the permission referred to in Para 1 in the case referred to in §6 (2).

§824 (Administration and Representation over Property)
A person who exercises parental authority shall administer the property of the child and represent the child in any legal juristic act in respect of the child's property; provided, however, that if an obligation requiring an act of the child is to be created, the consent of the child shall be obtained.

§825  (Effect of Acts Done by One Parent in the Name of Both Parents)
Where parents exercise parental authority jointly and one parent, in the name of both parents, performs a juristic act on behalf of a child, or give his consent for the child to perform a juristic act, the effect of that act shall not be prevented, even if it is contrary to the intention of the other parent;
provided, however, that this shall not apply if the other party has knowledge.

§826 (Conflict of Interest)
(1) If an act involves a conflict of interest between a father or mother who exercises parental authority and a child, a person who exercises parental authority shall apply to the family court to have a special representative for the child appointed.
(2) In the case where a person exercises parental authority for more than one child, if there is an act which involves a conflict of interest between one child and the other child or children, a person who exercises parental authority shall apply to have a special representative for that child appointed.

§827 (Duty of Care in Administration of Property)
A person who exercises parental authority shall exercise the right of administration of property with the same care he would exercise for himself.

§828 (Accounts of Administration of Property)
When a child attains the age of majority, a person who exercised parental authority shall account for the administration of property without delay; provided, however, that the expenses incurred in the care of the child and the administration of property shall be deemed to have been set-off against the profits from the child's property.

§829 (Accounts of Administration of Property)
If a third party who has granted property to a child gratuitously indicates a contrary intention, the provision of the proviso to §828 shall not apply to that property.

§830  (Administration of Property Given to Child by Third Party Gratuitously)
(1) If a third party who grants property to a child gratuitously indicates an intention not to allow a father or mother who exercises parental authority to administer that property, that property shall not be subject to the administration of the father or mother.
(2) If neither parent has the right to administer the property referred to in Para 1 and the third party does not appoint an administrator for that property, the family court may, on the application of a child, any relative of the child or a public prosecutor, appoint an administrator.
(3) Even if a third party has appointed an administrator for the property, Para 2 shall apply if the right of that administrator is extinguished or the replacement of that administrator is required, and the third party does not appoint another administrator.
(4) The provisions of §27 - §29 shall apply m/mutandis to the cases referred to in Para 2 & 3.

§831 (Application M/Mutandis of Mandate Provisions)
The provisions of §654 & §655 shall apply m/mutandis to the case where a person who exercises parental authority administers the property of a child and the case referred to in §830.

§832  (Extinctive Prescription of Obligations between Parent & Child That Arise from Administration of Property)
(1) Obligations that arise from the administration of property between a person who exercised parental authority and the child shall be extinguished by prescription if not exercised within 5 years from the time the right of administration of property is extinguished.
(2) If the right of administration of property is extinguished while the child has not yet attained the age of majority and the child has no legal representative, the period in Para 1 shall be calculated from the time the child attains the age of majority or a new legal representative takes office.

§833 (Exercise of Parental Authority on Behalf of Child)
A person who exercises parental authority with regard to a child shall exercise parental authority in lieu of that child regarding that child's child.

Section 3 Loss of Parental Authority

§834 (Ruling on Loss of Parental Authority)
If a child is abused or abandoned in bad faith by his father or mother, or if a child's interests are extremely jeopardized due to difficulty or inappropriateness of the conduct of parental authority, the family court may, on the application of any relative, guardian or supervisor of his guardian or a public prosecutor, make a
ruling of loss of parental authority; provided, however, that this shall not apply if the causes of the ruling are expected to cease within 2 years.

§834-2 (Ruling on Suspension of Parental Authority)
(1) If a child's interests are jeopardized due to difficulty or inappropriateness of the conduct of parental
authority, the family court may, on the application of any relative, his guardian or the supervisor of his guardian or a public prosecutor, make a ruling on his father or mother a ruling on the suspension of parental authority.
(2) The family court, in making a ruling on the suspension of parental authority, determins the period of
suspension of parental authority for not exceeding 2 years which is expected to require until the extinction of such cause, considering the mental and health condition, the situation of his life and all the other circumstances of the child.

§835 (Ruling of Loss of Right of Administration of Property)
If a father or mother who exercises parental authority endangers the property of a child due to difficulty or impropriety in his administration, the family court may, on the application of the child or any relative, his guardian or the supervisor of his guardian or a public prosecutor, make a ruling of right of administration of property.

§836 (Rescission of Ruling on Loss or Suspension of Parental Authority or Loss of Right of Administration of Property)
If the causes in provisions of the main clause of §834, §834-2 Para 1 & §835 have ceased to exist, the family court may, on the application of the person concerned or any relative of his, rescind a ruling of loss or suspension of parental authority or loss of right of administration of property pursuant to the provisions of §834, §834-2 Para 1 & §835 respectively.

§837 (Surrender and Resumption of Parental Authority or Right of Management Administration of Property)
(1) If there is an unavoidable reason, a father or mother who exercises parental authority may, with the permission of the family court, surrender parental authority or the right of administration of property.
(2) If the reason in Para 1 has ceased to exist, a father or mother may, with the permission of the family court, resume parental authority or the right of administration of property.

Chapter V Guardianship
Section 1 Commencement of Guardianship

§838
  (Commencement of Guardianship) 
Guardianship shall commence in the following cases:
(i) if there is no person with parental authority over a minor or if a person with parental authority is unable to exercise the right of administration of property.
(ii) if there has been an order for commencement of guardianship.

Section 2 Organs of Guardianship
Subsection 1 Guardian

§839
  (Designation of Guardian of Minor)
(1) A person who last exercises parental authority over a minor may designate a guardian of a minor by will; provided that this shall not apply to a person who has no right of administration of property.
(2) If one of the parents who have parental authority has no right of administration of property, the other parent may designate a guardian of a minor pursuant to the provision of Para 1.

§840  (Appointment of Guardian of Minor)
(1) If there is no person to become a guardian of a minor pursuant to the provisions of Art 839, the family court may appoint a guardian of minor on the application of a minor ward or his relative, or other interested person. This shall also apply in a case where any vacancy in the position of a guardian of a minor occurs.
(2) Even if there is a guardian of a minor, the family court may, on application of the persons designated in Para 1 or a guardian of a minor, or ex officio, appoint additional guardian(s) of a minor when it finds this necessary.
(3) In appointing a guardian of a minor, the family court should consider such circumstances as the age of a minor ward, his mental and health condition, the situation of his life and property, the profession and background of a guardian of a minor and existence of interest between a minor ward and guardian of a minor, the opinion of a minor ward and all the other circumstances.

§841 (Application for Appointment of Guardian of Minor by Parents)
If a father or mother surrenders parental authority or the right of administration of property, or if the necessity to appoint a guardian of a minor arises due to the ruling of loss or suspension of parental authority or loss of right of administration of property, the father or mother shall, without delay, apply to the family court for the appointment of a guardian of a minor.

§843 (Appointment of Guardian of Adult)
(1) The family court shall appoint ex officio a guardian of an adult if it orders commencement of guardianship.
(2) If the office of a guardian of an adult is vacant, the family court shall appoint a guardian of an adult on the application of an adult ward or his relative, or other interested person, or ex officio.
(3) Even if a guardian of an adult has been appointed, the family court may appoint a further guardian, when it finds this necessary, at the application of the persons prescribed in Para 2, or a guardian of an adult, or ex officio.
(4) In the appointment of a guardian of an adult, the family court shall consider the physical and mental condition and the living and property circumstances of the adult ward, the occupation and personal history of the person to become the guardian, the existence of any vested interest between them (if the person to become a guardian of an adult is a juridical person, its type and content of business and the existence of any vested interest between the adult ward and the juridical person or its representative), the opinion of the adult ward, and all other matters.

§844 (Surrender of Guardianship)
A guardian of an adult may, where any justifiable reason exists, surrender his office upon the permission of the family court.

§845  (Application for Appointment of New Guardian upon the Surrender of Guardianship)
If the necessity to appoint a new guardian arises through a guardian's surrender of office, the guardian shall, without delay, petition the family court to appoint a new guardian.

§846 (Replacement of Guardian)
If there is an unlawful act, grave misconduct, or other cause not befitting the office of guardianship on the part of a guardian, the family court may replace the guardian on the application of a supervisor of a guardian, a ward or his relative, or a public prosecutor, or ex officio.

§847 (Causes of Disqualification of Guardian)
Any person who falls under any of the following items may not become a guardian:
(i) a minor;
(ii) a legal representative, curator, or assistant who has been replaced by the family court;
(iii) a bankrupt;
(iv) a person who has brought or is bringing an action against the ward, or a spouse or lineal blood relative by blood of such person; or
(v) a person whose whereabouts are unknown.

Subsection 2 Supervisor of a Guardian

§848 (Designation of Supervisor of Guardian of Minor)
A person who may designate a guardian of a minor may designate a supervisor of a guardian of a minor by will.

§849 (Appointment of Supervisor of Guardian of Minor)
If there is no person who has been designated a supervisor of a guardian of a minor pursuant to the provision of §848, the family court may appoint a supervisor of a guardian of a minor, when it finds this necessary, on the application of a minor ward or his relative, or a guardian of a minor, or ex officio. This shall also apply in the case where any vacancy in the position of a supervisor of a guardian of a minor occurs.

§849-2 (Appointment of Supervisor of Guardian of Adult)
The family court may appoint a supervisor of a guardian of an adult if it finds this necessary on the application of an adult ward or his relative, or a guardian of an adult, or ex officio.

§850 (Causes of Disqualification of Supervisor of a Guardian)
A spouse, lineal relative by blood, or sibling of a guardian may not become a supervisor of a guardian.

§851 (Duties of Supervisor of Guardian)
The duties of a supervisor of a guardian are as follows:
(i) to supervise the affairs of a guardian;
(ii) to apply to the family court without delay to appoint a guardian in the case where any vacancy in the position of a guardian occurs;
(iii) to take necessary measures in the case of an emergency; and
(iv) to represent the ward in conduct where there is a conflict of interest between the ward and the guardian or his representative.

§852 (Application Mutatis Mutandis of Mandate and Guardian Provisions)
The provisions of §644, §654, §655, §843 (4), §844, §846, §847, §859-2, §859-3, §861 (2), and §862 shall apply mutatis mutandis to a supervisor of a guardian.

Section 3 Affairs of Guardian

§853 (Investigation of Property and Preparation of Inventory)
(1) A guardian shall, without delay, undertake an investigation of the ward's property, and finalize the investigation and prepare an inventory of property within one month; provided that this period may be extended with the approval of the family court.
(2) An investigation of property and the preparation of an inventory of property shall not be valid unless conducted in the presence of a supervisor of the guardian, if one exists.

§854 (Authority Prior to Completion of Inventory of Property)
Until a guardian has completed the inventory of property, he shall not be entitled to exercise his authority unless there is an urgent need; provided that this may not be asserted against a third party in good faith.

§855 (Guardian's Duty to Report Claims or Obligations in Relation to Ward)
(1) In the case where a guardian has any claim or bears any obligation in relation to a ward, he shall report this to the supervisor, if one exists, before undertaking an investigation of property.
(2) If a guardian knows of a claim against a ward and does not report it, this claim is lost.

§856  (Application Mutatis Mutandis to the Case Ward Acquires Property under Universal Title)
The provisions of §853 to §855 inclusive shall apply mutatis mutandis to the case where a ward acquires property under universal title after a guardian has assumed office.

§857  (Rights and Duties regarding Personal Supervision of Minor Ward)
A guardian of a minor shall have, with respect to the matters prescribed in the §820 to §823 inclusive, the same rights and duties as a person who exercises parental authority; provided that in order to change the plan of education or the residence determined by a person who exercises parental authority, to enter a minor ward into a disciplinary facility, to give permission to carry on business, or to revoke or limit that permission, he shall obtain the consent of a supervisor of a guardian of a minor, if one exists.

§858 (Respect for Intention and Personal Consideration of Adult Ward)
A guardian of an adult, in undertaking affairs related to the life, medical treatment and nursing, and administration of property of an adult ward, shall respect the intention of the adult ward, and consider his mental and physical condition and living circumstances.

§859 (Administration and Representation over Property)
(1) A guardian shall administer the property of a ward and represent a ward in juristic acts concerning his property.
(2) The provision of the proviso to §824 shall apply mutatis mutandis to the case referred to in Para 1.

§859-2 (Exercise of Authority where Multiple Guardians of Adult)
(1) If there are multiple guardians of an adult, the family court may determine ex officio that the guardians should exercise authority jointly or according to a division of labor.
(2) The family court may rescind ex officio a determination made pursuant to the provisions of Para 1.
(3) If there are multiple guardians of an adult, it is sufficient that a manifestation of intention by a third party be made to one guardian.

§859-3 (Permission regarding Disposition of Real Estate Used for Adult Ward's Residence)
A guardian of an adult shall obtain the permission of the family court for sale, rent, cancellation of lease, or establishment of a mortgage, or any other disposition equivalent to these, on the ward's behalf with regard to a building or site used for the adult ward's residence.

§860 (Acts in Conflict of Interest)
The provisions of §826 shall apply mutatis mutandis to a guardian; provided that this shall not apply in the case where there is a supervisor of a guardian.

§861 (Expenditure Estimation & Expenses of Affairs of Guardianship)
(1) Upon assumption of office, a guardian shall estimate the amount of money that will be required in annual expenditure for the living, education, medical treatment and nursing, and administration of property of the ward.
(2) A guardian shall pay the expenses necessary to undertake the affairs of guardianship out of the property of the ward.

§862 (Remuneration to Guardian)
The family court may grant reasonable remuneration to a guardian out of the property of the ward, considering the financial capacity of the guardian and the ward and other circumstances.

§863 (Supervision of Affairs of Guardianship)
(1) A supervisor of a guardian or the family court may, at any time, demand that a guardian submit a report on the affairs of guardianship or an inventory of property, and may investigate the affairs of guardianship or the situation of the property of the ward.
(2) The family court may order any necessary disposition concerning the administration of the property of a ward, or other affairs of guardianship, on the application of a supervisor of a guardian, the ward or his relative, or other interested person, or ex officio.

§864 (Acts Requiring the Consent of a Supervisor of Guardian)
For a guardian, on behalf of a ward, to undertake business or the acts listed in each item of Article 13 (1), or to give consent for a minor ward to undertake the same, he shall obtain the consent of a supervisor of a guardian, if one exists; provided that this shall not apply to the receipt of principal listed in Article 13 (1) (i).

§865 (Acts Requiring the Consent of a Supervisor of Guardian)
(1) A ward or a guardian may rescind acts conducted or consented to by a guardian in violation of the provisions of Art 864. In this case, the provisions of Art 20 shall apply mutatis mutandis.
(2) The provision of Para 1 shall not preclude the application of the provisions of Art 121 to 126 inclusive.

§866 (Ward's Rescission of Reception of Property etc.)
(1) If a guardian has received the property of a ward or the right of a third party against the ward, the ward may rescind that reception. In this case, the provisions of Art 20 shall apply mutatis mutandis.
(2) The provision of Para 1 shall not preclude the application of the provisions of Art 121 to 126 inclusive.

§867  (Exercise of Parental Authority on Behalf of Minor Ward)
(1) A guardian of a minor shall exercise parental authority in lieu of a minor ward with respect to that minor ward's child.
(2) The provisions of Art 853 to 857 inclusive and Art 861 to 866 inclusive shall apply mutatis mutandis to the case referred to in Para 1.

§868  (Guardian of Minor with Rights and Duties regarding Property Only)
In the case where a person who has parental authority does not have the right of administration of property, a guardian of a minor shall have authority regarding property and that authority only.

§869 (Application Mutatis Mutandis of Mandate and Parental Authority Provisions)
The provisions of Art 644 and Art 830 shall apply mutatis mutandis to guardianship.

Section 4 Termination of Guardianship

§870 (Account of Guardianship)
When the office of a guardian comes to an end, he or his successor shall render an account of his administra- tion within 2 months; provided that this period may be extended with the approval of the family court.

§871 (Account of Guardianship)
An account of guardianship shall be conducted in the presence of a supervisor of a guardian, if one exists.

§872  (Rescission of Contract etc. between a Minor Ward and Guardian of Minor etc.)
(1) A person who, as an ex-minor ward, made a contract with a guardian, or the heir of the guardian, after attaining majority but before settlement of the account of guardianship may rescind such contract. The same shall apply to unilateral juristic acts that person makes toward a guardian of a minor or his successor.
(2) The provisions of Art 20 and Art 121 to 126 inclusive shall apply mutatis mutandis to the case referred to in Para 1.

§873  (Payment of Interest etc. upon Money Refunded)
(1) Money to be refunded by a guardian to a ward and money to be refunded by a ward to a guardian shall bear interest from the time the account of guardianship is settled.
(2) If a guardian has expended a ward's money for his own benefit, such money shall bear interest from the time of the expenditure.
In this case, further damages are incurred by the ward, the guardian shall be liable for such damages.

§874  (Application Mutatis Mutandis of Mandate Provisions)
The provisions of Art 654 and 655 shall apply mutatis mutandis to guardianship.

§875 (Extinctive Prescription of Claim That Arises from Guardianship)
(1) The provisions of Art 832 shall apply mutatis mutandis to the extinctive prescription of a claim that arises from guardianship between a guardian or a supervisor of a guardian and a ward.
(2) In the case where a juristic act is rescinded pursuant to the provisions of Art 872, the period of the extinctive prescription prescribed in Para 1 commences from the time of that rescission.

Chapter VI Curatorship and Assistance
Section 1 Curatorship

§876
 (Commencement of Curatorship)
Curatorship shall commence by order of commencement of curatorship.

§876-2 (Appointment etc. of Curator or Temporary Curator)
(1) If the family court orders commencement of curatorship, it will appoint a curator ex officio.
(2) The provisions of §843 (2) - (4) and §844 to §847 inclusive shall apply mutatis mutandis to a curator.
(3) For acts where there is a conflict of interest between the curator or his representative and a person under curatorship, the curator shall apply to the family court for the appointment of a temporary curator; provided that this shall not apply in the case where there is a supervisor of a curator.

§876-3 (Supervisor of Curator)
(1) The family court may appoint a supervisor of a curator, if it finds this necessary, on the application of a person under curatorship or his relative, or a curator, or ex officio.
(2) The provisions of §644, §654, §655, §843(4), §844, §846, §847, §850, §851, §859-2, §859-3, §861 (2) and §862 shall apply mutatis mutandis to a supervisor of a curator. In this case, the term 'represent the ward regarding' in §851 (iv) shall be deemed to be replaced with 'represent a person under curatorship regarding, or give consent for a person under curatorship to undertake the same'.

§876-4  (Order Granting Power of Representation to Curator)
(1) On the application of a person prescribed by the main clause of §11 or (a supervisor of) a curator, the family court may make an order that grants power of representation to the curator, concerning specified juristic acts for the person under curatorship.
(2) An order referred to in Para 1 made upon the application of any person other than the person under curatorship shall require the consent of the person under curatorship.
(3) The family court may rescind an order referred to in Para 1, in whole or in part, on the application of a person prescribed by that paragraph.

§876-5 (Affairs of Curatorship and Termination of Office of Curator)
(1) A curator, in undertaking the affairs of curatorship, shall respect the intention of the person under curatorship, and consider his mental and physical condition and living circumstances.
(2) The provisions of §644, §859-2, §859-3, §861 (2), §862 & §863 shall apply m/mutandis to the affairs of curatorship, and the provision of the proviso to §824 shall apply m/mutandis to the case where a curator represents a person under curatorship based upon an order granting the power of representation referred to in §876-4 (1).
(3) The provisions of §654, §655, §870, §871 & 8§73 shall apply m/mutandis to the case of termination of office of a curator, and the provisions of §832 shall apply m/mutandis to claims that arise from curatorship between (a supervisor of) a curator, and a person under curatorship.

Section 2 Assistance

§876-6 (Commencement of Assistance)
Assistance shall commence by order of commencement of assistance.

§876-7 (Appointment etc. of Assistant or Temporary Assistant)
(1) If the family court orders commencement of assistance, it will appoint an assistant ex officio.
(2) The provisions of §843 (2) - (4) and §844 - §847 shall apply m/mutandis to an assistant.
(3) For acts where there is a conflict of interest between the assistant or his representative and a person under assistance, the assistant shall apply to the family court for the appointment of a temporary assistant; provided that this shall not apply in the case where there is a supervisor of an assistant.

§876-8 (Supervisor of Assistant)
(1) The family court may appoint a supervisor of an assistant, if it finds this necessary, on the application of a person under assistance, his relative, or an assistant, or ex officio.
(2) The provisions of §644, §654, §655, §843 (4), §844, §846, §847, §850, §851, §859-2, §859-3, §861 (2) & 862 shall apply m/mutandis to a supervisor of an assistant. In this case, the term 'represent the ward regarding' in §851 (iv) shall be deemed to be replaced with 'represent a person under assistance regarding, or give consent for a person under assistance to undertake the same.

§876-9 (Order Granting Power of Representation to Assistant)
(1) On the application of a person prescribed by the main clause of §15 (1), an assistant, or a supervisor of an assistant, the family court may make an order that grants power of representation to the assistant, concerning specified juristic acts for the person under assistance.
(2) The provisions of §876-4 (2)(3) shall apply m/mutandis to the order referred to in Para 1.

§876-10 (Affairs of Assistance & Termination of Office of Assistant)
(1) The provisions of §644, §859-2, §859-3, §861(2), §862 , §863, and §876-5(1), shall apply mutatis mutandis to the affairs of assistance, and the provision of the proviso to §824 shall apply m/mutandis to the case where an assistant represents a person under assistance based upon an order granting the power of representation referred to in §876-9 (1).
(2) The provisions of §654, §655, §870, §871 & §873 shall apply mutatis mutandis to the case of termination of office of an assistant, and the provisions of §832 shall apply mutatis mutandis to claims that arise from assistance between an assistant, or a supervisor of an assistant, and a person under assistance.

Chapter VII Support

§877 (Supporter under Duty)
(1) Lineal relative by blood and siblings have a duty to support each other.
(2) If special circumstances exist, the family court may also impose a duty of support between relatives within the 3rd degree, in addition to the case prescribed in Para 1.
(3) If an alteration in circumstances arises after an order pursuant to the provision of Para 1, the family court may revoke that order.

§878 (Order of Support)
In the case where there exist several persons under a duty to give support, and agreement has not, or cannot be, reached between the parties with respect to the order in which they are to give support, the family court shall determine the order. In the case where there exist several persons entitled to support and the financial capacity of the person under a duty to give support is insufficient to support them all, the same shall apply.

§879 (Extent and Form of Support)
If agreement has not, or cannot be, reached between the parties with respect to the extent and form of support, the family court shall determine such matters, considering the needs of the person entitled to support, the financial capacity of the person under a duty to give support, and any other related circumstances.

§880  (Alteration or Revocation of Agreement or Order with Regard to Support)
If an alteration in circumstances arises after an agreement or an order regarding the order of persons under a duty to support, persons entitled to support, or the extent or form of support, the family court may alter or revoke the agreement or the order.

§881 (Prohibition of Disposition of Claim for Support)
The right to support may not be subject to disposition.

Part V Inheritance
Chapter I General Provisions

§882 (Cause of Commencement of Inheritance)
Inheritance shall commence upon the death of the decedent.

§883 (Place of Commencement of Inheritance)
Inheritance shall commence at the place of domicile of the decedent.

§884 (Right to Claim for Recovery of Inheritance)
If the right to claim for recovery of inheritance is not exercised within 5 years of the time an heir or his legal representative becomes aware of the fact that the inheritance right has been infringed, that right shall be extinguished by prescription.
The right shall also be extinguished if 20 years have passed from the time of commencement of inheritance.

§885 (Expenses relating to Inherited Property)
(1) Expenses relating to inherited property shall be paid out of that property;
provided that this shall not apply to expenses resulting from the negligence of an heir.
(2) The expenses of Para 1 are not required to be paid out of property obtained by a claimant to statutory reserved portion through abatement of a gift.

Chapter II Heir

§886 (Unborn Child's Legal Capacity to Hold Rights Relating to Inheritance)
(1) In regard to inheritance, an unborn child shall be deemed to have already been born.
(2) The provision of Para 1 shall not apply if the child is stillborn.

§887 (Right to Inheritance of Child and Heir per Stirpes etc.)
(1) The child of a decedent shall be an heir.
(2) If a decedent's child has died before the commencement of inheritance, or has lost the right to inheritance by application of the provisions of §891 or disinheritance, the child of the decedent's child shall be an heir as an heir per stirpes;
provided that this shall not apply if the child is not a lineal descendant of the decedent.
(3) The provision of Para 2 shall apply mutatis mutandis to the case where an heir per stirpes has died before the commencement of inheritance, or has lost the right of inheritance as an heir per stirpes by application of the provisions of §891, or by disinheritance.

§889 (Right of Inheritance of Lineal Ascendant and Sibling)
(1) In the case where there is no person to become an heir pursuant to the provisions of Art 887, the following persons shall become heirs in accordance with the following order of rank:
(i) lineal ascendants of the decedent; provided that between persons of differing degree of kinship, the person who is of closer relationship shall have higher priority of inheritance;
(ii) siblings of the decedent.
(2) The provisions of §887 (2) shall apply mutatis mutandis to the case referred to in item ii of Para 1.

§890 (Right of Inheritance of Spouse)
The spouse of a decedent shall always be an heir. In this case, if there is a person to become an heir pursuant to the provisions of §887 or §889, the spouse shall be of the same rank as that person.

§891 (Causes of Disqualification of Heir)
The following persons may not become an heir:
(i) a person who has received punishment for intentionally causing, or attempting to cause, the death of a decedent or a person of equal or prior rank in relation to inheritance;
(ii) a person who is aware that the decedent was killed by someone but made no accusation or complaint about this; provided that this shall not apply if that person cannot discern right from wrong, or if the killer was that person's spouse or lineal relative;
(iii) a person who prevented a decedent from making, revoking, rescinding, or changing a will relating to inheritance through fraud or duress;
(iv) a person who forced a decedent to make, revoke, rescind, or change a will relating to inheritance through fraud or duress; or
(v) a person who has forged, altered, destroyed, or concealed a decedent's will relating to inheritance.

§892 (Disinheritance of Presumed Heir)
A decedent may make an application to the family court for the disinheritance of a presumed heir (referring to a person who would otherwise become an heir upon the commencement of inheritance) who has a legally reserved portion if that person has abused or given grave insult to the decedent, or if there has been any other grave misconduct on the part of the presumed heir.

§893 (Disinheritance of Presumed Heir by Will)
If a decedent has indicated an intention by will to disinherit a presumed heir, the executor of that will shall apply to the family court for disinheritance of the presumed heir without delay after the will has taken effect. In this case, the disinheritance of that presumed heir shall have retroactive effect from the time of the decedent's death.

§894 (Rescission of Disinheritance of Presumed Heir)
(1) A decedent may at any time make an application to the family court to rescind the disinheritance of a presumed heir.
(2) The provision of §893 shall apply mutatis mutandis to the rescission of disinheritance of a presumed heir.

§895 (Administration of Inherited Property before Ruling for Disinheritance of Presumed Heir Becomes Unappealable)
(1) If inheritance has commenced before a ruling has become final and binding after an application for the disinheritance of a presumed heir, or the rescission of that disinheritance, the family court may order any necessary disposition with regard to the administration of inherited property upon the application of a relative, an interested party, or a public prosecutor.
The same shall apply in the case where a will was made for the disinheritance of a presumed heir.
(2) The provisions of §27 to §29 inclusive shall apply mutatis mutandis to the case where the family court has appointed an administrator of inherited property pursuant to the provisions of Para 1.

Chapter III Effect of Inheritance
Section 1 General Provisions

§896
 (General Effect of Inheritance)
From the time of commencement of inheritance, an heir shall succeed blanket rights and duties attached to the property of the decedent;
provided that this shall not apply to rights or duties of the decedent that are purely personal.

§897 (Assumption of Rights Relating to Rituals)
(1) Despite the provision of §896, rights to ownership of a genealogy, equipment used in rituals, and any grave, shall be succeeded by the person who custom dictates shall preside over rituals for ancestors; provided that if the decedent designates a person who shall preside over rituals for ancestors, this person shall succeed rights to ownership.
(2) If, in the case referred to in the main text of Para 1, the custom is not evident, the family court shall determine who shall succeed the rights in Para 1.

§898 (Effect of Joint Inheritance)
If there are 2 or more heirs, the inherited property shall belong to those heirs in co-ownership.

§899 (Effect of Joint Inheritance)
Each joint heir shall succeed the rights and duties of the decedent according to his share in inheritance.

Section 2 Share in Inheritance

§900 (Statutory Share in Inheritance)
If there are 2 or more heirs of the same rank, their shares in inheritance shall be determined by the following items:
(i) if a child and a spouse are heirs, the child's share in inheritance and the spouse's share in inheritance shall be 1/2 each;
(ii) if a spouse and lineal ascendant are heirs, the spouse's share in inheritance shall be 2/3, and the lineal ascendant's share in inheritance shall be 1/3;
(iii) if a spouse and sibling(s) are heirs, the spouse's share in inheritance shall be 3/4, and the sibling's share in inheritance shall be 1/4 (one quarter);
(iv) if there are 2 or more children, lineal ascendants, or siblings, the share in the inheritance of each shall be divided equally; provided that the share in inheritance of a sibling who shares only one parent with the decedent shall be 1/2 of the share in inheritance of a sibling who shares both parents.

§901 (Statutory Share in Inheritance of Heirs per Stirpes)
(1) The share in inheritance of a lineal descendant who becomes an heir pursuant to the provisions of
§887 (2) or (3) shall be the same as the share that person's lineal ascendant would have received; provided that if there are 2 or more lineal descendants, their shares in inheritance shall be determined in accordance with the provisions of §900.
(2) The provision of Para 1 shall apply mutatis mutandis to the case where a child of a sibling becomes an heir pursuant to the provision of §889 (2).

§902 (Designation of Share in Inheritance by Will)
(1) Despite the provisions of §900 & §901, a decedent may by will determine the share in inheritance of joint heirs, or entrust a third party to determine the share; provided that a decedent or a third party may not violate provisions relating to legally reserved portion.
(2) If a decedent determines, or has a third party determine, the share in inheritance of a single heir or several heirs amongst joint heirs, the share in inheritance of the other joint heir(s) shall be determined pursuant to the provisions of §900 & §901.

§903 (Share in Inheritance of Heir who has Received Special Benefit)
(1) If there is a person from amongst joint heirs who has previously received a testamentary gift, or has received a gift for marriage, adoption, or as capital for livelihood, the total inherited property shall be deemed the value calculated by adding the value of the gift to the value of the property belonging to the decedent at the time of commencement of inheritance and the share in inheritance of that person shall be the remaining amount after deducting the value of that testamentary gift or a gift from the share in inheritance calculated pursuant to the provisions of §900 to §902 inclusive.
(2) If the value of the testamentary gift or gift is equal to, or exceeds, the value of a donee or recipient's share in inheritance, he may not receive the share in inheritance.
(3) If the decedent indicates an intention contrary to the provisions of Para 1 & 2, that intention shall only have effect to the extent that it does not violate the provisions relating to legally reserved portion.

§904 (Share in Inheritance of Heir who has Received Special Benefit)
With regard to the value of the gift referred to in the provisions of §903, even if, through the conduct of the recipient there the property of the gift is lost, or if there is a fluctuation in its value, the determination of value shall be deemed as the value at the time of commencement of inheritance in its original state.

§904-2 (Contributory Portion)
(1) If there is a person from amongst joint heirs who has made a special contribution to the maintenance or increase of the decedent's property through the provision of labor or in the form of property relating to the decedent's business, medical treatment or nursing of the decedent, or other means, the total inherited property shall be deemed the value calculated by deducting the contributory portion as determined by agreement by the joint heirs from the value of the property of the decedent at the time of commencement of inheritance, and that person's share in inheritance shall be the amount of the contribution added to the share in inheritance calculated pursuant to the provisions of §900 to §902 inclusive.
(2) If the agreement of Para 1 is not, or cannot be, settled, the family court shall determine the amount of contributory portion upon the application of the person who has contributed referred to in the provision of Para 1, considering the period of contribution, the means and extent of contribution, the amount of the inherited property, and all other circumstances.
(3) The contributory portion may not exceed the amount calculated by deducting the value of a testament- ary gift from the value of the property belonging to the decedent at the time of commencement of inheritance.
(4) The application referred to in Para 2 may be made in the case where there has been an application pursuant to the provision of §907 (2), or in the case where there has been a application pursuant to the provision of §910.

§905 (Recovery Right of Share of Inheritance)
(1) If one joint heir assigns his share of inheritance to a 3rd party before a division of the inherited property, any other joint heir may obtain the share thru the reimbursement of the value and expenses of that and recover the share in inheritance.
(2) The right of Para 1 shall be exercised within 1 month.

Section 3 Division of Inherited Property

§906 (Criteria of Division of Inherited Property)
Upon the division of inherited property, the type and nature of goods or rights belonging to the inherited property, the age, occupation, mental and physical state, and financial circumstances of each heir, and all other matters, shall be considered.

§907 (Agreement or Ruling for Division of Inherited Property etc.)
(1) Joint heirs may at any time divide inherited property by agreement except in the case where this is prohibited by the decedent's will pursuant to the provision of §908.
(2) If agreement is not, or cannot be, settled between joint heirs regarding division of inherited property, each of the joint heirs may make an application to the family court for a division of the inherited property.
(3) In the case referred to in Para 2, if there is a special reason, the family court may prohibit the division of the inherited property, in whole or part, for a specified period.

§908 (Designation of Form of Division of Inherited Property and Prohibition of Division)
A decedent may by will determine the form of division of inherited property, or entrust this to a 3rd party, or prohibit division for a period not exceeding 5 years from the time of commencement of inheritance.

§909 (Effect of Division of Inherited property)
Division of inherited property shall have retroactive effect from the time of the commencement of inheritance; provided that this shall not prejudice the rights of a 3rd party.

§910 (Claim of Payment for Value of Person Affiliated after Commencement of Inheritance)
In the case where a person who becomes an heir through affiliation after the commencement of inheritance intends to apply for a division of the inherited property, if other heirs have already divided the inherited property or made another disposition, he shall only have a claim of payment for value.

§911 (Mutual Liability to Guarantee Joint Heirs)
Each joint heir shall, according to his share in inheritance, bear liability to guarantee any other joint heir, just as a seller.

§912 (Liability to Guarantee Claim Arising from Division of Inherited Property)
(1) Each joint heir shall guarantee, according to his share in inheritance, the solvency of any obligor of the inherited property at the time of division regarding claims arising from the division of inherited property.
(2) Each joint heir shall guarantee the solvency of any obligor of the inherited property at the time for performance regarding a claim that is either not yet due or has a condition precedent.

§913 (Share of Liability to Guarantee Insolvent Joint Heir)
If there is an insolvent joint heir who is liable to guarantee other joint heirs, the portion of the liability which the insolvent joint heir is to bear shall be apportioned amongst other joint heirs with a right to reimbursement, and other solvent joint heirs shall contribute to the portion unable to be reimbursed according to the share in inheritance of each; provided that if there is negligence on the part of the person who seeks reimbursement, he may not make a claim against other another joint heir to contribute.

§914 (Determination of Liability to Guarantee by Will)
If a decedent has expressed a different intent by will, the provisions of §911 to §913 shall not apply.

Chapter IV Acceptance and Renunciation of Inheritance
Section 1 General Provisions

§915
(Period for Acceptance or Renunciation of Inheritance)
(1) An heir shall give unconditional or qualified acceptance, or renunciation, regarding inheritance within 3 months of the time he has knowledge that there has been a commencement of inheritance for him; provided that this period may be extended by the family court on the application of an interested party or a public prosecutor.
(2) An heir may investigate inherited property before making an acceptance or renunciation of inheritance.

§916 (Period for Acceptance or Renunciation of Inheritance)
If an heir dies without having made acceptance or renunciation of inheritance, the period of §915 (1) shall be calculated from the time that person's heir comes to know of the commencement of inheritance for himself.

§917 (Period for Acceptance or Renunciation of Inheritance)
If an heir is a minor or an adult ward, the period in §915 (1) shall be calculated from the time that legal representative comes to know of the commencement of inheritance for the minor or adult ward.

§918 (Administration of Inherited Property)
(1) An heir shall administer inherited property with the same care he would exercise over his own property; provided that this shall not apply if he has accepted or renounced the inheritance.
(2) The family court may at any time order any necessary disposition for the preservation of inherited property upon the application of an interested party or a public prosecutor.
(3) The provisions of §27 to §29 inclusive shall apply mutatis mutandis to the case where the family court has appointed an administrator manager of inherited property pursuant to the provision of Para 2.

§919 (Revocation & Rescission of Acceptance & Renunciation of Inheritance)
(1) Acceptance or renunciation of inheritance may not be revoked even within the period referred to in §915 (1).
(2) The provision of Para 1 shall not prevent the rescission of acceptance or renunciation of inheritance made pursuant to the provisions of Part 1 (General Provisions) and Part 4 (Relatives).
(3) The right of rescission in Para 2 shall be extinguished by prescription if not exercised within 6 months of the time ratification becomes possible. The right of rescission in Para 2 shall be extinguished if 10 years have passed since the time of acceptance or renunciation of inheritance.
(4) A person who intends to rescind qualified acceptance or renunciation of inheritance pursuant to the provision of Para 2 shall provide a statement to that effect to the family court.

Section 2 Acceptance of Inheritance
Subsection 1 Unconditional Acceptance


§920 (Effect of Unconditional Acceptance)
If an heir makes unconditional acceptance, he shall inherit the rights and duties of the decedent without limitation.

§921 (Statutory Unconditional Acceptance)
An heir shall be deemed to have made unconditional acceptance in the following cases:
(i) if an heir has made a disposition of the inherited property in whole or in part; provided that this shall not apply to an act of preservation or a lease that does not exceed the period determined in §602;
(ii) if an heir has not made qualified acceptance or renunciation of inheritance within the period of §915 (1);
(iii) if an heir, even after having made qualified acceptance or renunciation of inheritance, conceals inherited property in whole or part, uses that property for himself, or failed intentionally to enter it in the inventory of inherited property; provided that this shall not apply after the acceptance of a person who has become an heir due to the renunciation of inheritance of the original heir.

Subsection 2 Qualified Acceptance

§922
 (Qualified Acceptance)
An heir may accept inheritance reserving to perform the obligation or testamentary gift of the decedent only within the extent of the property obtained by inheritance.

§923 (Qualified Acceptance of Joint Heirs)
If there are two or more heirs, qualified acceptance may only be made if all members of the joint heirs make qualified acceptance jointly.

§924 (Form of Qualified Acceptance)
If an heir intends to make qualified acceptance, he shall prepare an inventory of the inherited property and submit this to the family court with a statement to that effect within the period of §915 (1).

§925 (Rights & Duties upon Qualified Acceptance)
If an heir makes qualified acceptance, the rights and duties that person has towards the decedent shall be deemed not to have been extinguished.

§926 (Administration by Person who has Made Qualified Acceptance)
(1) A person who has made qualified acceptance shall continue administration of inherited property with the same care he would exercise over his own property.
(2)  §645, §646, §650 (1) (2) and §918 (2) (3) shall apply mutatis mutandis to the case referred to in Para 1.

§927 (Public Notification & Notice to Inheritance Obligees & Donees)
(1) A person who makes qualified acceptance shall, within 5 days of making that qualified acceptance, make public notification to all inheritance obligees (an obligee with a claim towards the inherited property) and donees to the effect that qualified acceptance has been made and that filing of any claim should be made within a specified period. In this case, that period shall be not less than 2 months.
(2) In the public notification in Para 1, it shall be prescribed that inheritance obligees and donees who failed to file should be precluded from the payment; provided, however, that a successor who makes qualified acceptance may not preclude known inheritance obligees and donees.
(3) a successor who makes qualified acceptance shall demand each of known inheritance obligees and donees the filing.
(4) The public notice in Para 1 shall be made on the official gazette.

§928 (Refusal of Performance before Expiration of Public Notification Period)
A person who has made qualified acceptance may refuse to make performance to an inheritance obligee or donee before the expiration of the notification period of §927 (1).

§929 (Performance after Expiration of Public Notification Period)
After the expiration of the period in §927 (1), a person who has made qualified acceptance shall use the inherited property to make performance to inheritance obligees who have made the application of §927 (1) within the period prescribed, and any other known inheritance obligees, proportionally according to the amount of each claim; provided that this may not prejudice the rights of an obligee with priority rights.

§930 (Performance of Obligation etc. Not Yet Due)
(1) A person who has made qualified acceptance must make performance even of a claim which is not yet due in accordance with the provision of §929.
(2) Conditional claims and claims of indefinite duration shall be performed in accordance with an evaluation by an appraiser appointed by the family court.

§931 (Performance to Donees)
A person who has made qualified acceptance may not make performance to a donee unless each of the inheritance obligees has been paid in accordance with the provisions of §929 & §930.

§932 (Auction of Inherited Property for Performance of Obligation)
If it is necessary to sell inherited property in order to perform in accordance with the provisions of
§929 to §931 inclusive, a person who has made qualified acceptance shall put that property to auction;
provided that this auction may be averted by paying the entire or partial value of the inherited property in accordance with an evaluation by an appraiser appointed by the family court.

§933 (Participation of Inheritance Obligees and Donees in Evaluation Proceedings)
Inheritance obligees and donees may, by their own expense, participate in an auction or appraisal of inherited property. In this case, the provisions of §260 (2) shall apply mutatis mutandis.

§934 (Liability for Unfair Performance etc. of Person who has Made Qualified Acceptance)
(1) If a person who has made qualified acceptance fails to make the public notification or notice referred to in §927, or has made performance to an inheritance obligee or donee within the period in §927 (1) thereby precluding performance to any other inheritance obligee or donee, that person shall be liable to compensate for damages arising from this. If he has made performance that violates the provisions of §929 to §931 inclusive, he shall be liable to compensate for damages arising from this.
(2) The provision of Para 1 shall not prevent a claim for damages against an inheritance obligee or donee who has accepted unfair performance with knowledge by another inheritance obligee or donee.
(3) The provision of §724 shall apply mutatis mutandis to the cases referred to in Para 1 & 2.

§935 (Inheritance Obligees or Donees who have not Made Application within Period of Public Notification)
An inheritance obligee or donee who fails to make the application referred to in §927 (1) within the period prescribed, and was unknown to the person who has made qualified acceptance, may only exercise his rights over the residual assets; provided that this shall not apply to persons who have a security over specific inherited property.

§936 (Administration of Inherited Property where 2 or more Heirs)
(1) In the case where there are two or more heirs, the family court shall appoint an administrator of the inherited property from amongst the heirs.
(2) The administrator of the inherited property of Para 1 shall undertake all necessary acts to administer the inherited property and perform any obligation on behalf of the heirs.
(3) The provisions of §926 to §935 inclusive shall apply mutatis mutandis to an administrator of the inherited property of Para 1. In this case, 'within 5 days of making that qualified acceptance' in §927 (1) shall be read as 'within 10 days of the appointment of an administrator of the inherited property'.

§937 (Inheritance Obligees Where There is Cause for Statutory Unconditional Acceptance)
If there is a cause listed in §921 (i) or (iii) relating to one or several joint heirs who have made qualified acceptance, an inheritance obligee may exercise his rights over the portion of his claim not satisfied by the inherited property against those joint heirs according to the share in inheritance of each.

Section 3 Renunciation of Inheritance

§938 (Method of Renunciation of Inheritance)
A person who intends to renounce inheritance shall make a statement to that effect to the family court
(only after commencement of inheritance).

§939 (Effect of Renunciation of Inheritance)
A person who has renounced inheritance shall be deemed as not originally having been an heir to the inheritance.

§940 (Administration by Person who has Renounced Inheritance)
(1) A person who has renounced inheritance shall continue the administration of inherited property with the same care he would exercise over his own property until the person who has become an heir by that renunciation has commenced administration of the inherited property.
(2)  §645, §646, §650 (1) & (2), §918 (2) & (3) shall apply mutatis mutandis to the case referred to in Para 1.

Chapter V Separation of Property

§941 (Separation of Property by Claim of Inheritance Obligees or Donees)
(1) An inheritance obligee or a donee may make an application to the family court for a separation of inheritance property from the property of an heir within 3 months of the time of commencement of inheritance. The application may be filed even after that period has elapsed if the inherited property has not been mixed with the heir's own property.
(2) If the family court has made a ruling for separation of property pursuant to the application of Para 1, the applicant shall give public notice within 5 days to the effect that an order for separation of property has been made and that applications for entry into distribution proceedings should be made within a specified period. In this case, that period shall be not less than 2 months.
(3) The public notice of the provisions of Para 2 shall be listed in the official gazette.

§942 (Effect of Separation of Property)
A person who has made an application for separation of property or a person who has applied for entry into distribution proceedings pursuant to the provisions of §941 (2) shall receive performance with priority over the obligees of an heir regarding the inherited property.

§943 (Administration of Inherited Property after Claim for Separation of Property)
(1) If an application for separation of property is made, the family court may order any necessary disposition for the administration of the inherited property.
(2) The provisions of §27 to §29 inclusive shall apply mutatis mutandis to the case where the family court appoints an administrator pursuant to the provision of Para 1.

§944 (Administration by Heir after Application for Separation of Property)
Even after an heir has made unconditional acceptance, if there has been an application for separation of property, he shall administer the inherited property with the same care he would exercise over his own property; provided that this shall not apply if the family court has appointed an administrator of the inherited property.
(2) The provisions of §645 to §647 inclusive and §650 (1) & (2) shall apply mutatis mutandis to the case referred to in Para 1.

§945 (Requirement of Perfection, against 3rd Party regarding Real Estate in the Case of Separation of Property)
A separation of property regarding real estate may not be asserted against a third party unless the separation is registered.

§946 (Application Mutatis Mutandis of Provisions regarding Extension of Security Interest to the Proceeds of Collateral)
The provisions of §304 shall apply mutatis mutandis to the case of separation of property.

§947 (Performance to Inheritance Obligees and Donees)
(1) Before the expiration of the period in §941 (1) & (2), an heir may refuse to make performance to an inheritance obligee or donee.
(2) If an application for separation of property has been made, an heir shall use the inherited property to make performance to any inheritance obligee or donee who has made an application for separation of property or entry into distribution proceedings proportionally according to the amount of each claim, after the expiration of the period of §941 (2);
provided however, that this may not prejudice the rights of an obligee with priority rights.
(3) The provisions of §930 - §934 shall apply mutatis mutandis to the case referred to in Para 1.

§948 (Performance from Heir's Own Property)
A person who has made an application for separation of property or a person who has applied for entry into distribution proceedings may exercise his rights against an heir's own property only in the case where he was not able to receive performance in full from the inherited property.
In this case, this person may receive performance with priority over the obligees of an heir.

§949 (Prevention etc. of Application for Separation of Property)
An heir may use his own property to make performance to an inheritance obligee or donee, or provide reasonable security, and thereby prevent an application for separation of property or have its effect extinguished; provided that this shall not apply if an obligee of the heir expresses an objection and can prove that he would receive damage from this.

§950 (Separation of Property by Application of Obligee of Heir)
(1) While an heir may make qualified acceptance, or while the inherited property has not been mixed with the heir's own property, an obligee of the heir may make an application to the family court for a separation of property.
(2) The provisions of §304 & §925, §927 - §934, §943 - §945, and §948 shall apply mutatis mutandis to the case referred to in Para 1; provided, however, that the public notification and notice of §927 shall be made by an obligee who has made an application for separation of property.

Chapter VI Nonexistence of Heir

§951 (Formation of Juridical Person for Inherited Property)
If it is not evident whether an heir exists, an estate that would be inherited shall be as a juridical person.

§952 (Appointment of Administrator of Inherited Property)
(1) In the case referred to in §951, the family court shall appoint an administrator of inherited property upon the application of an interested party or a public prosecutor.
(2) If an administrator of inherited property has been appointed pursuant to the provisions of Para 1, the family court shall give public notice of this without delay.

§953 (Provisions Relating to Administrator of Absentee's Property to be Applied Mutatis Mutandis)
The provisions of §27 to §29 inclusive shall apply mutatis mutandis to the 'administrator of inherited property' referred to in §952 (1).

§954 (Reporting by Administrator of Inherited Property)
If there is an application by an inheritance obligee or donee, an administrator of inherited property shall report the status of the inherited property to the person who has made the application.

§955 (Non-formation of Juridical Person for Inherited Property)
If it has become evident that there is an heir, the juridical person of §951 shall be deemed not to have been formed; provided, however, that this shall not prevent the effect of acts done by an administrator of inherited property within the administrator's authority.

§956 (Extinguishment of Authority of Representation of Administrator of Inherited Property)
(1) The authority of representation of an administrator of inherited property shall be extinguished from the time that an heir accepts inheritance.
(2) In the case referred to in Para 1, the administrator of inherited property shall make an account of profit and loss to the heir without delay.

§957 (Performance to Inheritance Obligees and Donees)
(1) If the existence of an heir has not become evident within 2 months of the public notice of Art 952 (2), an administrator of inherited property shall, without delay, give public notice to all inheritance obligees and donees to the effect that a claim for performance should be made within a specified period.
In this case, the period shall be not less than 2 months.
(2) The provisions of §927 (2) - (4) & §928 - §935 (excluding the proviso to §932) shall apply mutatis mutandis to the case referred to in Para 1.

§958 (Public Notice of Search for Heir)
If, after the expiration of the period in §957 (1), it is still not evident whether an heir exists, the family court shall, upon the application of an administrator of inherited property or a public prosecutor, give public notice to the effect that if there is an heir, he should assert his right within a fixed period.
In this case, the period shall be not less than 6 months.

§958-2 (Case where No Person Claims a Right)
If there is no person who asserts a right as an heir within the period of §958, an heir, or any obligee or donee unknown to the administrator of inherited property, may not exercise his right.

§958-3 (Distribution of Inherited Property to Person with Special Connection)
(1) In the case referred to in §958-2, the family court may, if it finds it reasonable, upon application by a person who shared a livelihood with the decedent, a person who contributed to the medical treatment and nursing of the decedent, or any other person who had a special connection with the decedent, grant such person the remaining amount of the inherited property after liquidation, in whole or in part.
(2) The application of Para 1 must be made within 3 months of the expiration of the period in §958.

§959 (Residual Assets to Belong to National Treasury)
Inherited property that has not been disposed of pursuant to the provisions of §958-3 shall belong to the National Treasury. In this case, the provisions of §956 (2) shall apply mutatis mutandis.

Chapter VII Wills
Section 1 General Provisions

§960
 (Formalities for Will)
No will shall take effect unless made in accordance with the formalities provided in this Code.

§961 (Capacity to Make Will)
Any person who has attained 15 years of age may make a will.

§962 (Capacity to Make Will)
The provisions of §5, §9, §13 and §17 shall not apply to a will.

§963 (Capacity to Make Will)
At the time of making a will, a testator shall have the capacity to do so.

§964 (Comprehensive and Specific Testamentary Gifts)
A testator may make a disposition of his property, in whole or in part, comprehensive or specific title(s); provided that this may not violate provisions regarding legally reserved portion.

§965 (Provisions Relating to Heirs to be Applied Mutatis Mutandis)
The provisions of §886 & §891 shall apply mutatis mutandis to a testamentary donee.

§966 (Limitations on Will of Person under Guardianship)
(1) If a person under guardianship makes a will to the benefit of a guardian or the guardian's spouse or lineal relative before the completion of a profit and loss account for guardianship, that will shall be void.
(2) The provision of Para 1 shall not apply in the case where a lineal relative, spouse, or sibling of the ward is a guardian.

Part 2 Formalities of Wills
Subsection 1 Ordinary Formality

§967
 (Types of Will Made by Ordinary form)
A will shall be made by holograph document, notarized document, or sealed and notarized document; provided that this shall not apply to the case where it is permissible to use a special method.

§968 (Will by Holograph Document)
(1) To make a will by holograph document the testator must write the entire text, the date, and his name in his own hand and affix his seal.
(2) Unless, for an insertion, deletion or any other alteration to the handwritten certificate, the testator indicates the place of alteration, makes a specifically signed addition to the effect that it has been changed, and furthermore affixes his seal to the place that has been altered, it shall have no effect (of alteration).

§969 (Will by Notarized Document)
A will by notarized document shall be made in compliance with the following items:
(i) no fewer than 2 witnesses shall be in attendance;
(ii) the testator shall give oral instruction of the tenor of the will to a notary public;
(iii) a notary public shall take dictation from the testator and read this aloud, or allow inspection, to the testator and witnesses;
(iv) the testator and witnesses shall each sign, and affix his seal to, the certificate after having approved its accuracy; provided, however, that in the case where a testator is unable to sign, a notary public may sign on his behalf, with supplementary registration giving the reason for that; and
(v) a notary public shall give supplementary registration to the effect that the certificate has been made in compliance with the formalities listed in items (i)-(iv), sign this, and affix his seal.

§969-2 (Special Provisions for Will by Notarized Document)
(1) In the case where a will by notarized document is made by a person who cannot speak, the testator shall make a statement of the tenor of the will thru an interpreter, or by his own hand, in lieu of the oral instruction of §969 (ii). In this case, in the application of the provision of §969 (iii), 'oral instruction' in that item shall become 'statement through an interpreter, or by his own hand'.
(2) In the case where the testator or a witness of §969 is deaf, a notary public may convey the written contents of the provision of §969 (iii) to the testator or witness through an interpreter, in lieu of the reading aloud provided for in the same item.
(3) If a notarized document has been made in compliance with the formalities provided for in Para 1 & 2, a notary public shall give supplementary registration on the certificate to this effect.

§970 (Will by Sealed and Notarized Document)
(1) A will by sealed and notarized document shall be made in compliance with the following formalities:
(i) the testator shall sign, and affix his seal to, the certificate;
(ii) the testator shall seal the certificate and, using the same stamp as that used for the certificate, affix his seal;
(iii) the testator shall submit the sealed certificate before 1 notary public and not less than 2 witnesses, with a statement to the effect that it is his own will, giving the author's name and address;
(iv) after having entered the date of submission of the certificate and the statement of the testator upon the sealed document, a notary public shall, together with the testator and witnesses, sign it and affix his seal;
(2) The provision of §968(2) shall apply mutatis mutandis to the making of a will by sealed & notarized document.

§971 (Effect of Will by Sealed and Notarized Document Failing to Satisfy Formalities)
Even a will by sealed and notarized document which fails to satisfy the formalities provided for in §970 shall have effect as a will made by holograph document, if prepared in accordance with the formalities provided for in §968.

§972 (Special Provisions for Will by Sealed and Notarized Document)
(1) In the case where a will by sealed and notarized document is made by a person who cannot speak, the testator shall make a statement to the effect that the certificate is one's own will, giving the author's name and address thru an interpreter, or by his own hand upon the sealed document, in lieu of the statement of §970 (1) (iii).
(2) In the case referred to in Para 1, if a testator has given a statement thru an interpreter, a notary public shall make an entry on the sealed document to that effect.
(3) In the case referred to in Para 1, if the testator has written on the sealed document is in his own hand, a notary public shall make an entry to that effect on the sealed document in lieu of the entry of statement in the provision of §970 (1) (iv).

§973 (Will of an Adult Ward)
(1) For an adult ward to make a will at a time that his decision-making capacity has recovered temporarily, not less than 2 doctors shall be in attendance.
(2) A doctor in attendance of the making of a will shall make an entry on the will to the effect that the testator was not in a condition lacking decision-making capacity at the time of making the will, sign it, and affix his seal; provided that in the case of a will by sealed and notarized document, he shall make an entry to that effect on the sealed document, sign it, and affix his seal.

§974 (Causes of Disqualification of Witness or Observer)
The following persons may not be a witness or observer to a will:
(i) a minor;
(ii) a presumed heir, donee, or a spouse or lineal relative of either; or
(iii) a spouse, relative within 4 degrees, secretary, or employee of a notary public.

§975 (Prohibition of Joint Wills)
A will may not be made by 2 or more persons on the same certificate.

Subsection 2 Special Formalities of Wills

§976 (Will Made by Person Rapidly Approaching Death)
(1) If a person who is rapidly approaching death due to illness or another reason intends to make a will, he may do so in the attendance of not less than 3 witnesses by giving oral instruction of the tenor of the will to one of the witnesses. In this case, the person who received the oral instruction shall enter this, read it aloud, or allow inspection, to the testator and other witnesses, and after each witness has approved the accuracy of that entry, sign it, and affix his seal.
(2) In the case where a person who cannot speak makes a will pursuant to the provisions Para 1, the testator shall state of the tenor of that will thru an interpreter before the witnesses, in lieu of the oral instruction of the same paragraph.
(3) In the case where the testator, or a witness, referred to in the second sentence of Para 1 is deaf, the person who has received the statement or oral instruction of the tenor of the will shall convey to the testator or other witnesses the written contents referred to in the provision of that sentence thru an interpreter in lieu of the reading aloud provided for in that sentence.
(4) For a will made pursuant to the provisions of Para 1-3, effect shall not arise unless it has been confirmed by the family court on the application of one of the witnesses or an interested party within 20 days of the creation of the will.
(5) The family court may not confirm a will referred to in Para 4 unless it is convinced that the will captured the true intention of the testator.

§977 (Will Made by Person with Infectious Disease in Quarantine)
A person who is isolated thru an administrative disposition due to an infectious disease may make a will in the attendance of 1 police official and at least 1 witness.

§978 (Will Made by Person on Vessel)
A person on a ship may make a will in the attendance of the ship's captain or a clerk, and at least 2 witnesses.

§979 (Will Made by Person on Ship Meeting Disaster)
(1) In the case where a ship meets disaster, a person who is on that ship and rapidly approaching death may make a will orally in the attendance of at least 2 witnesses.
(2) In the case where a person who cannot speak makes a will pursuant to the provision of Para 1, the testator shall do so thru an interpreter.
(3) The effect of a will made in compliance with the provisions of Para 1 & 2 shall not arise unless a witness makes an entry of its tenor, signs this, affixes his seal, and furthermore, it gains confirmation by the family court on the application made without delay by one of the witnesses or an interested party.
(4) The provision of §976 (5) shall apply mutatis mutandis to the case described in Para 3.

§980 (Signature and Seal of Relevant Parties to a Will)
In the cases described in §977 & §978, a testator, author, observer, or witness shall sign and affix his seal to each will.

§981 (Case Where Signature or Seal Is Impossible)
In the cases described in §977 to §979 inclusive, if there is a person who is unable to sign or affix his seal,
an observer or witness shall make supplementary registration of the reason for that.

§982 (Provisions Relating to Will by Ordinary Formalities to be Applied Mutatis Mutandis)
The provisions of §968 (2) and §973 to §975 inclusive shall apply mutatis mutandis to a will made pursuant to the provisions of §976 to §981.

§983 (Effect of Will Made by Special Formalities)
The effect of a will made pursuant to the provisions of Art 976 - 982 shall not arise if a testator survives for a period of 6 months from the time they recover the ability to make a will by ordinary formalities.

§984 (Formalities for Japanese National in Foreign Country)
For a Japanese national in a foreign country where a Japanese consulate is stationed to make a will by notarized document, or a sealed and notarized document, the duties of a notary public shall be undertaken by the consulate.

Section 3 Effect of Will

§985 (When Effect of Will Arises)
(1) A will takes effect at the time of the testator's death.
(2) In the case where a will is subject to a condition precedent, if that condition is fulfilled after the death of the testator, the will shall take effect from the time that condition is fulfilled.

§986 (Renunciation of Testamentary Gift)
(1) A testamentary donee may renounce a testamentary gift at any time after the death of a testator.
(2) The renunciation of a testamentary gift shall have retroactive effect from the time of the testator's death.

§987 (Notice to Testamentary Donees for Acceptance or Renunciation of a Testamentary Gift)
A person with a duty of testamentary gift (a person who bears a duty to perform a testamentary gift) or any other interested party may give notice to a testamentary donee to the effect that acceptance or renunciation of a testamentary gift should be made within a specified period, fixing a period that is reasonable.
In this case, if a donee does not indicate his intention to a person with a duty of testamentary gift within that period, the testamentary gift shall be deemed to have been accepted.

§988  (Acceptance or Renunciation of Testamentary Gift by Heir or Testamentary Donee)
If a testamentary donee dies without having made acceptance or renunciation of a testamentary gift, the heir of that person may accept or renounce the testamentary gift within the extent of his share in inheritance; provided that if the testator has indicated a particular intent in his will, this intent shall be complied with.

§989  (Revocation and Rescission of Acceptance and Renunciation of Testamentary Gift)
(1) Acceptance or renunciation of a testamentary gift may not be revoked.
(2) The provisions of §919 (2)(3) shall apply mutatis mutandis to acceptance and renunciation of a testamentary gift.

§990 (Rights and Duties of Testamentary Donee by a Universal Succession)
A testamentary donee by a universal succession shall have the same rights as an heir.

§991 (Claim for Security by a Testamentary Donee)
While a testamentary gift is not due, a testamentary donee may make a claim for reasonable security from a person having an obligation with respect to testamentary gift. The same shall also apply for a testamentary gift with a condition precedent while the outcome of that condition is unknown.

§992 (Collecting Fruits of Testamentary Gift)
A testamentary donee may collect the fruits of a testamentary gift from the time that they are able to make a claim for the performance of that gift; provided that if the testator has indicated a particular intent in his will, that intent shall be complied with.

§993  (Claim for Reimbursement of Expenses Incurred by Person with Duty of Testamentary Gift)
(1) The provisions of §299 shall apply mutatis mutandis to the case where expenses have been incurred by a person with a duty of testamentary gift in respect of the object of the testamentary gift after the death of the testator.
(2) An application for reimbursement may be made for normal necessary expenses incurred in collecting the fruits of a testamentary gift, limited to an amount not exceeding the value of those fruits.

§994 (Lapse of Testamentary Gift through Death of Donee)
(1) The effect of a testamentary gift shall not arise if the testamentary donee dies before the death of the testator.
(2) The Para 1 shall also apply if, in the case of a testamentary gift with a condition precedent, the testamentary donee dies before the fulfillment of that condition; provided, however, that if the testator has indicated a particular intent in his will, that intent shall be complied with.

§995 (Ownership of Property in Case of Invalidation or Lapse of Testamentary Gift)
If the effect of a testamentary gift does not arise, or if its effect is lost by renunciation, that which should have been received by the testamentary donee shall belong to the heir(s); provided, however, that if the testator has indicated a particular intent in his will, that intent shall be complied with.

§996 (Testamentary Gift of Rights Not Belonging to Inherited Property)
A testamentary gift shall not take effect if the rights which are the object of that gift did not belong to the inherited property at the time of the testator's death; provided, however, that this shall not apply if it is found that those rights were made the object of a testamentary gift regardless of whether such rights belong to the inherited property.

§997 (Testamentary Gift of Rights Not Belonging to Inherited Property)
(1) If a testamentary gift, the object of which are rights that do not belong to the inherited property, has effect pursuant to the provision of the proviso to §996, the person with a duty of testamentary gift shall bear a duty to obtain those rights and transfer them to the testamentary donee.
(2) In the case referred to in Para 1, if the rights referred to in Para 1 cannot be obtained, or if obtaining them requires excessive expenses, a person with a duty of testamentary gift shall give compensation to the value of those rights; provided, however, that if the testator has indicated a particular intent in his will, that intent shall be complied with.

§998 (Warranty Liability of Person Having Obligation for to Testamentary Gift for Unspecified Things)
(1) In the case where a testamentary gift has as its object unspecified Things but a third party as a rightful claimant retakes them from a testamentary donee, a person having an obligation in relation to testamentary gift shall be liable under the same warranty with respect to those unspecified Things, just as a seller.
(2) In the case where a testamentary gift has as its object unspecified Things, if those goods are defective, a person having an obligation in relation to testamentary gift shall exchange them for Things that are not defective.

§999 (Extension of Testamentary Gift over Right to Claim from Third Party)
(1) If a testator has a right to claim compensation from a third party resulting from loss or alteration, or loss of possession, of the object of a testamentary gift, that right shall be presumed to have been an object of the testamentary gift.
(2) In the case of accession or mixture of the object of a testamentary gift with other Things, if a testator has become a sole owner or co-owner of a compound or mixture pursuant to the provisions of §243 to §245 inclusive, that entire ownership, or share, shall be presumed to have been an object of the testamentary gift.

§1000 (Testament/y Gift of Property Subject to the Rights of third party)
If Things or rights being the object of a testamentary gift were the object of the rights of a third party at the time of the testator's death, a testamentary donee may not demand a person having an obligation with respect to testamentary gift to extinguish the third party's rights; provided, however, that this shall not apply if the testator has indicated a contrary intent in his will.

§1001 (Extension of Testamentary Gift over Things Received for Satisfaction of Claim)
(1) In the case where a claim is the object of a testamentary gift, if the testator has received performance for that claim and the received Things are already with the inherited property, those Things shall be presumed to have been an object of the testamentary gift.
(2) In the case where money is the object of a claim which is the object of a testamentary gift, that money shall be presumed to have been an object of the testamentary gift even if there are insufficient funds equivalent to that claim in the inherited property.

§1002  (Testamentary Gift with Burden)
(1) A person who has received a testamentary gift with burden shall bear a responsibility to perform the duties borne, limited to an amount not exceeding the object of the testamentary gift.
(2) If a testamentary donee has renounced a testamentary gift with burden, the person who would have received gain from the discharge of burden may become a testamentary donee himself;
provided that if the testator has indicated a particular intent in his will, that intent shall be complied with.

§1003  (Discharge of Testamentary Donee of Testamentary Gift with Burden)
If the value of an object of a testamentary gift with burden is reduced due to the qualified acceptance of an heir, or a filing for recovery of legally reserved portion, a testamentary donee may avoid the duties borne from that testamentary gift, proportional to the reduction; provided, however, that if the testator has indicated a particular intent in his will, that intent shall be complied with.

Section 4 Execution of Will

§1004 (Probate of Will)
(1) A custodian of a will, after coming to know of the commencement of inheritance, shall without delay submit the will to the family court and apply for probate.
In the case where there is no custodian of a will, the same shall apply after an heir discovers the will.
(2) The provision of Para 1 shall not apply to a will made by notarized document.
(3) A will that has been sealed may not be opened unless in the family court in the attendance of an heir or his representative.

§1005 (Civil Fine)
A person who fails to submit a will pursuant to the provisions of §1004, executes a will without passing thru probate, or opens a sealed will in a place other than a family court shall be made subject to a civil fine of not more than 50,000 yen.

§1006 (Designation of Executor)
(1) A testator may, by will, designate one or several executors, or entrust that designation to a third party.
(2) A person who has been entrusted with the designation of an executor shall, without delay, make that designation and inform the heir(s) of the designation.
(3) If a person who has been entrusted with the designation of an executor intends to resign from that entrustment, he shall notify the heir(s) to that effect without delay.

§1007 (Commencement of Duties of Executor)
If an executor consents to taking office, he shall undertake his duties immediately.

§1008 (Notice of Taking Office to Executor)
An heir or other interested party may, having specified a reasonable period, make a demand to an executor to the effect that he make a definite answer within that period as to whether he consents to taking office.
In this case, if the executor does not make a definite answer to the heir within this period, he shall be deemed to have consented to taking office.

§1009 (Causes for Disqualification of Executor)
A minor or a bankrupt may not become an executor.

§1010 (Appointment of Executor)
If an executor does not exist, or the office becomes vacant, the family court may appoint an executor on the application of an interested party.

§1011 (Preparation of Inventory of Inherited Property)
(1) An executor shall, w/out delay, prepare an inventory of inherited property and deliver this to the heir(s).
(2) On the application of an heir, an executor shall prepare an inventory of inherited property in the heir's attendance, or have a notary public create the inventory.

§1012 (Rights and Duties of Executor)
(1) An executor shall have the rights and duties of administration of inherited property and all other necessary acts for the execution of a will.
(2) The provisions of §644 - §647 and §650 shall apply mutatis mutandis to an executor.

§1013 (Prohibition of Interference with Execution of Will)
In the case where there is an executor, an heir may not make a disposition of inherited property or any other act that interferes with the execution of the will.

§1014 (Execution of Will concerning Specified Property)
In the case where a will concerns specified property in the inherited property, the provisions of §1011 to §1013 inclusive shall only apply to that specified property.

§1015 (Status of Executor)
An executor shall be deemed the representative of the heir(s).

§1016 (Executor's Right to Appoint Subagent)
(1) An executor may not allow a third party to undertake the duties of an executor unless there are justifiable reasons; provided, however, that this shall not apply if the testator has indicated a contrary intent in his will.
(2) In the case where an executor has allowed a 3rd party to undertake the duties of an executor pursuant to the provision in the proviso to Para 1, the executor shall owe the responsibility referred to in §105 to the heir(s).

§1017 (Execution of Duties Where Two or More Executors)
(1) In the case where there are two or more executors, execution of their duties shall be decided by majority; provided, however, that this shall not apply if the testator has indicated a contrary intent in his will.
(2) Despite the provision of Para 1, each executor may undertake an act of preservation.

§1018 (Remuneration of Executor)
(1) The family court may determine the remuneration of an executor according to the status of the inherited property and other circumstances; provided that this shall not apply in the case where a testator has specified remuneration in his will.
(2) The provisions of §648 (2) (3) shall apply mutatis mutandis to the case where an executor receives remuneration.

§1019 (Dismissal and Resignation of Executor)
(1) If an executor has failed to perform his duties, or if there is any other justifiable reason, an interested party may apply to the family court for the dismissal of that executor.
(2) An executor may resign from his duties with the permission of the family court if there is a justifiable reason.

§1020 (Mandate Provisions to be Applied Mutatis Mutandis)
The provisions of §654 & §655 shall apply mutatis mutandis to the case of termination of duties of an executor.

§1021 (Burden of Expenses Relating to Execution of Will)
Expenses relating to the execution of a will shall be borne by the inherited property;
provided, however, that legally reserved portion may not be reduced by this.

Section 5 Revocation and Rescission of Will

§1022 (Revocation of Will)
A testator may at any time revoke a will in whole or in part in compliance with the formalities for a will.

§1023 (Conflict between Previous and Later Will)
(1) If there is a conflict between a previous and later will, the later will shall be deemed as having revoked the previous will with respect to the part that is in conflict.
(2) The provision of Para 1 shall apply mutatis mutandis to the case where a will conflicts with a disposition or other juristic act made while the testator was still alive.

§1024 (Destruction of Will or Things made the Object of Testamentary Gift)
If a testator intentionally destroys a will, this shall be deemed a revocation of the will with respect to the part that has been destroyed.
The same shall apply if the testator has intentionally destroyed goods the object of a testamentary gift.

§1025 (Effect of Will That Has Been Revoked)
The effect of a will that has been revoked pursuant to the provisions of §1022 to §1024 inclusive shall not be recovered even if the act of revocation is revoked, rescinded, or invalidated; provided, however, that this shall not apply in the case where the act was the result of fraud or duress.

§1026 (Prohibition of Waiver of Right to Revocation)
A testator may not waive the right to revoke a will.

§1027 (Rescission of Will concerning Testamentary Gift with Burden)
If a person who has received a testamentary gift with burden does not perform the duty imposed thereby,
an heir may demand performance of that duty fixing a reasonable period to do so.
In this case, if there is no performance within that period, an application may be made to the family court for rescission of the will concerning the testamentary gift with burden.

Chapter VIII Legally Reserved Portion

§1028 (Entitlement and Amount of Legally Reserved Portion)
Heirs other than siblings shall receive, as legally reserved portion, an amount equivalent to the ratio prescribed in each of the following items in accordance with the divisions listed therein:
(i) in the case where only lineal ascendants are heirs, one third of the decedent's property;
(ii) in cases other than that referred to in Item (i), one half of the decedent's property.

§1029 (Calculation of Legally Reserved Portion)
(1) Total legally reserved portion shall be calculated as the value of any gifts made by the decedent added to the value of the property held by the decedent at the time of commencement of inheritance minus the entire amount of obligations.
(2) The determination of the value of conditional rights or rights of an uncertain duration shall be made in accordance with an evaluation by an appraiser appointed by the family court.

§1030 (Calculation of Legally Reserved Portion)
Only a gift made within one year before the commencement of inheritance shall be included in the amount calculated pursuant to the provisions of Art 1029. A gift made before one year prior to commencement shall be included in the amount calculated pursuant to the provisions of Art 1029 if it was made with the knowledge of both parties that it would cause harm to a claimant for legally reserved portion.

§1031 (Claim for Abatement of Gift or Testamentary Gift)
A claimant for legally reserved portion, or his heir, may claim for abatement of a testamentary gift, or gift referred to in §1030, to the extent necessary to preserve that legally reserved portion.

§1032 (Partial Abatement of Gifts and Testamentary Gifts of Conditional Rights etc.)
In the case where a gift or testamentary gift has as its object a right with conditions attached or a right of uncertain duration, if that gift or testamentary gift is to be partially abated, a claimant for legally reserved portion shall, in accordance with the amount determined by the provision of Art 1029 (2), deliver the remainder to the beneficiary or donee immediately.

§1033 (Order of Abatement of Gifts and Testamentary Gifts)
A gift may not be abated until after the abatement of a testamentary gift.

§1034 (Proportion of Abatement of Testamentary Gift)
A testamentary gift shall be abated proportionally according to the value of the object of that testamentary gift; provided, however, that if the testator has indicated a particular intent in his will, that intent shall be complied with.

§1035 (Order of Abatement of Gifts)
A later gift shall be abated before an earlier gift.

§1036 (Return of Fruits of Gift by Beneficiary)
A beneficiary, in addition to the property to be returned, shall return the fruits of that property obtained after the day a claim for abatement was made.

§1037 (Burden of Loss Due to Insolvency of Beneficiary)
The burden of loss arising from the insolvency of a beneficiary subject to abatement shall lie with the claimant for legally reserved portion.

§1038 (Claim for Abatement of Gift with Burden)
A claim for abatement may be made regarding a gift with a burden for the amount of the object of that gift minus the amount of the burden.

§1039 (Act for Value with Inadequate Consideration)
An act for value with inadequate consideration shall be deemed a gift if both parties had knowledge that it would prejudice a claimant for legally reserved portion. In this case, if a claimant for legally reserved portion claims for abatement of the gift, he shall reimburse the consideration given for the act.

§1040 (Object of Gift Assigned by Beneficiary etc.)
(1) If a beneficiary of gift subject to abatement has assigned the object of a gift to another person, he must compensate that amount to a claimant for legally reserved portion;
provided, however, that if the person who received the object of the gift had knowledge at the time of assignment that this would prejudice a claimant for legally reserved portion, a claimant for legally reserved portion may claim for abatement of the object of the gift.
(2) The provision of Para 1 shall apply mutatis mutandis to the case a beneficiary establishes rights with regard to the object of a gift.

§1041 (Compensation by Value to Claimant for Statutory Reserved Portion)
(1) A beneficiary or donee may avoid a duty to refund by compensating a claimant to statutory reserved portion the value of the object of the gift or testamentary gift, to the extent subject to abatement.
(2) The provision of Para 1 shall apply mutatis mutandis to the case referred to in the proviso to §1040 (1).

§1042 (Limitation on Period for Claim for Abatement)
If a claimant for legally reserved portion, within 1 year from the time of knowing of commencement of inheritance and the existence of a gift or testamentary gift which may be abated, does not exercise the claim of abatement, it shall be extinguished by prescription.
This shall also apply if 10 years have passed since the time of commencement of inheritance.

§1043 (Renunciation of Legally Reserved Portion)
(1) Renunciation of legally reserved portion before the commencement of inheritance shall only have effect
upon receiving permission from the family court.
(2) The renunciation of legally reserved portion by one joint heir shall have no effect upon the legally reserved portion of another joint heir.

§1044 (Provisions regarding Heirs per Stirpes and Share in Inheritance to be Applied Mutatis Mutandis)
The provisions of §887 (2) & (3), §900, §901, §903 & §904 shall apply mutatis mutandis to legally reserved portion.