Question: If the principal is fixed, the revolving mortgage will be treated the same as an ordinary mortgage, and thus, interests or damages of secured claims secured by the revolving mortgage shall be limited to the amount of the last two years.

Article 398-3
(1) A revolving mortgagee may exercise the relevant revolving mortgage up to the maximum amount with respect to all of crystallized principal as well as periodic payments including interest and compensation for loss or damage resulting from failure to perform obligations.
(2) If a claim under a negotiable instrument or check or electronically recorded monetary claim acquired from causes other than the transactions with the obligor is agreed to be treated as a claim to be secured by a revolving mortgage, and any of the following grounds exist, that revolving mortgage may be exercised only with respect to claims acquired before those grounds arose;provided, however, that even with respect to claims acquired after the grounds arose, the exercise of the revolving mortgage is not precluded as far as the claims were acquired without knowledge of those grounds:
(i) the suspension of payments by the obligor;
(ii) a petition to commence bankruptcy proceeding, the commencement of rehabilitation proceeding, the commencement of reorganization proceeding or the commencement for special liquidation with respect to the obligor; or
(iii) a petition for commencement of auction procedure in relation to a mortgaged immovables or attachment for disposition of delinquency..

Article 244
If the distinction of principal and accessory cannot be made between the movables united by accession, the owner of each movable property co-owns the composite thing in proportion to the respective price current at the time of the accession..

Article 168 (1) A claim for periodic payments is extinguished by prescription in the following cases:
(i) if the obligee does not exercise each claim for the delivery of things such as money arising from the claim for periodic payments within 10 years from the time when the obligee comes to know that each claim is exercisable; or
(ii) if the obligee does not exercise each claim prescribed in the preceding item within 20 years from the time when it becomes exercisable.
(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 renewal of the prescription period.

Article 391
If a third party acquirer of a mortgaged immovables has incurred necessary or beneficial expenses with respect to the mortgaged immovables, that third party may obtain reimbursement of the same out of the proceeds of the mortgaged immovables prior to other obligees, in accordance with the distinctions in Article 196.
Article 196
(1) If a possessor returns a thing in the possession thereof, the possessor may have the person recovering the thing reimburse the possessor for the costs the possessor has paid for its preservation and other necessary expenses;provided, however, that if the possessor has acquired fruits, ordinary and necessary expenses are borne by the possessor.
(2) With respect to the costs paid for by a possessor to improve the thing in the possession thereof and other beneficial expenses, the possessor may have the person recovering the thing reimburse the possessor for either the costs the possessor has paid or the amount of the increased value, whichever the person recovering the thing chooses, but only if there is a current increase in 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 of time for the same..

Article 489
(1) If the obligor is liable to pay interest and expenses in addition to principal with respect to one or more obligations (if the obligor bears two or more obligations, limited to when the obligor bears these obligations requiring the same kind of payment or delivery to the same obligee), and the person that performs the obligations makes payment or delivery which is not sufficient to extinguish the obligation in its entirety must be appropriated first to expenses, and then to interest and principal, in this order.
(2) The provisions of the preceding Article apply mutatis mutandis in the case referred to in the preceding paragraph in which the person makes payment or delivery which is not sufficient to extinguish any of expenses, interest or principal in whole..

Article 248
A person that suffers loss because of the application of the provisions of Article 242
through the preceding Article may demand compensation in accordance with the provisions of Article 703
and Article 704.
Article 245
The provisions of the preceding two Articles apply mutatis mutandis if the things of different owners are mixed together and can no longer be distinguished.
Article 243
If two or more movable properties with different owners can no longer be separated without damage due to accession, the ownership of the composite thing belongs to the owner of the principal movable property. The same applies if excessive expense is required to separate the movables.
Article 703
A person that has benefited (hereinafter in this Chapter referred to as "beneficiary") from the property or labor of another person without legal cause and has thereby caused a loss to another person bears the duty to return that benefit, to the extent the benefit exists.
Article 704
A beneficiary in bad faith must return the benefit received together with interest thereon. In such cases, if any damage still remains, the beneficiary is liable to compensate for this..

Article 587
A loan for consumption becomes effective when a first party receives money or any other thing from a second party, having promised to return a thing of the same type, quality, and quantity..

Article 457
(1) The postponement of expiry of prescription period and the renewal of prescription period due to grounds such as a request for performance in relation to the principal obligor are also effective in relation to the guarantor.
(2) A guarantor may assert against the obligee a defense that can be raised by the principal obligor.
(3) If the principal obligor has a right to set-off, right to rescind or right to cancel against the obligee, the guarantor may refuse to perform the obligation to the obligee to the extent that the principal obligor should have been released from the obligation by exercising these rights..

Article 304
(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 the preceding paragraph also apply to the consideration for real rights created by the obligor on the subject matter of the statutory lien..

Article 388
If the land and a building on that land belong to the same owner, a mortgage is created with respect to that land or building, and the enforcement of that mortgage causes them to belong to different owners, it is deemed that a superficies has been created with respect to that building.In this case, the rent is fixed by the court at the request of the parties..

Article 389
(1) If a building is constructed on a mortgaged land after the creation of a mortgage, the mortgagee may auction the building together with the land;provided, however, that the right of priority of that mortgagee may be exercised solely against the proceeds of the land.
(2) The provisions of the preceding paragraph do not apply if the owner of that building has rights with respect to the possession of the mortgaged land that may be duly asserted against the mortgagee..

Article 335
(1) Holders of general statutory liens cannot be paid out of immovables unless they are first paid out of property other than immovables and a claim that is not satisfied remains.
(2) With respect to immovables, 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 the preceding two paragraphs, they may not 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 the preceding three paragraphs do not apply if the proceeds of immovables are distributed prior to the proceeds of assets other than immovables, or if the proceeds of immovables that are the subject matter of a special security are distributed prior to the proceeds of other immovables..

Article 398-5
Changes in the maximum amount of a revolving mortgage may not be made unless the consent of the interested parties is obtained..

Article 177
Acquisitions of, losses of and changes in real rights on immovables may not be duly asserted against any third parties, unless the same are registered pursuant to the applicable provisions of the Real Property Registration Act (Act No. 123 of 2004) and other laws regarding registration..

Article 113
(1) A contract concluded by a person who acts as the agent of another person but has no authority to represent does not bind the principal unless the principal ratifies it.
(2) The ratification or refusal to ratify may not be duly asserted against the counterparty unless it is made to that counterparty;provided, however, that this does not apply if the counterparty has come to know the ratification or refusal to ratify..

Article 398-4
(1) The scope of the claims to be secured by a revolving mortgage may be changed if the change is effected before the principal is crystallized. The same applies with respect to change of obligors.
(2) In order to effect the changes referred to in the preceding paragraph, it is not required that the approval of third parties including subordinated mortgagee be obtained.
(3) If the change under paragraph (1) is not registered before the principal is crystallized, it is deemed that the change was not effected..

Article 398-6 (1) With respect to the principal secured by a revolving mortgage, the date when the principal is to be crystallized may be specified or changed.
(2) The provisions of Article 398-4, paragraph (2) apply mutatis mutandis to the cases referred to in the preceding paragraph.
(3) The date under paragraph (1) must be within five years of the day when the date was prescribed or changed.
(4) If registration with respect to a change in the date under paragraph (1) is not effected before the old date, the principal secured is crystallized on that old date.
Article 398-4 (1) The scope of the claims to be secured by a revolving mortgage may be changed if the change is effected before the principal is crystallized. The same applies with respect to change of obligors.
(2) In order to effect the changes referred to in the preceding paragraph, it is not required that the approval of third parties including subordinated mortgagee be obtained.
(3) If the change under paragraph (1) is not registered before the principal is crystallized, it is deemed that the change was not effected.

Article 339
Statutory liens registered in accordance with the provisions of the preceding two Articles may be exercised prior to mortgages.
Article 341
Beyond what is provided for in this Section, the provisions regarding mortgages apply mutatis mutandis to the effects of statutory liens, provided that it is not inconsistent with the nature of the same..

Article 545
(1) If one of the parties exercises the right to cancel, each party assumes an obligation to restore the other party to that other party's original state;provided, however, that this may not prejudice the rights of a third party.
(2) In the case referred to in the main clause of the preceding paragraph, if any monies are to be refunded, interest must accrue from the time of the receipt of those monies.
(3) In the case referred to in the main clause of paragraph (1), if a thing other than money is to be returned, fruits that have accrued on or after the time of the receipt of the thing must also be returned.
(4) The exercise of the right to cancel does not preclude claims for compensation for loss or damage..

Instruction: Given a statement, retrieve a legal provision that verifies this statement.


Question: Since the  limit of performance received in priority by the revolving mortgage is determined by the  maximum amount, and  lower rank  security holders and  ordinary obligees do not possess interest in what kind of obligation will be secured,  the purpose  of the limit of the scope of the secured claim is to protect all mortgagors.

Article 398-2
(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 the preceding paragraph (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 arise continuously with the obligor pursuant to a specific cause, claims under negotiable instruments or checks, or electronically recorded monetary claims (meaning electronically recorded monetary claims prescribed in Article 2, paragraph (1) of the Electronically Recorded Monetary Claims Act (Act No. 102 of 2007); the same applies in paragraph (2) of the following Article) may be treated as claims that are to be secured by a revolving mortgage, notwithstanding the provisions of the preceding paragraph..

Article 406
If the subject matter of the claim is to be determined by a choice being made from among more than one performance, the right to choose belongs to the obligor..

Article 465-4
(1) The principal of the principal obligation under a contract for revolving guarantee by an individual is crystallized in the following cases;provided, however, that in the case set forth in item (i), it is crystallized only if the procedure for compulsory execution or enforcement procedure of a security right is commenced:
(i) if an obligee files a petition for compulsory execution or enforcement of any security right for a claim for payment of money with regard to any property of the guarantor;
(ii) if the guarantor receives an order commencing bankruptcy proceeding; or
(iii) the relevant principal obligor or guarantor has died.
(2) Beyond the case prescribed in the preceding paragraph, the principal of the principal obligation under a contract for revolving guarantee by an individual for loans is crystallized in the following cases;provided, however, that in the case set forth in item (i), it is crystallized only if the procedure for compulsory execution or enforcement procedure of a security right is commenced:
(i) if the obligee files a petition for compulsory execution or enforcement of a security right for a claim for payment of money with regard to property of the principal obligor; or
(ii) if the principal obligor receives an order commencing bankruptcy proceeding..

Article 387
(1) A registered lease may be duly asserted against mortgagees that hold mortgages registered prior to the registration of that lease if all mortgagees that hold those mortgages give their consent and those consents are registered.
(2) For a mortgagee to give the consent referred to in the preceding paragraph, the approval of the persons that hold rights for which the mortgage is the subject matter and other persons that will suffer detriment as a result of the consent of the mortgagee must be obtained..

Article 496
(1) As long as the obligee does not accept the deposit, or the judgment which pronounces that the deposit is effective does not become final and binding, the performer may recover the deposited thingy. In such case, it is deemed that no deposit has been effected.
(2) The provisions of the preceding paragraph do not apply in cases any pledge or mortgage has been extinguished due to the deposit..

Article 389
(1) If a building is constructed on a mortgaged land after the creation of a mortgage, the mortgagee may auction the building together with the land;provided, however, that the right of priority of that mortgagee may be exercised solely against the proceeds of the land.
(2) The provisions of the preceding paragraph do not apply if the owner of that building has rights with respect to the possession of the mortgaged land that may be duly asserted against the mortgagee..

Article 536
(1) If the performance of an obligation becomes impossible due to grounds not attributable to either party, the obligee may refuse to perform counter-performance.
(2) If the performance of an obligation becomes impossible due to grounds attributable to the obligee, the obligee may not refuse to complete counter-performance. In such a case, if the obligor benefits from being released from that obligation, the obligor must reimburse the obligee for the benefit..

Article 706
If an obligor has paid money or delivered anything as performance of an obligation that has not yet fallen due, the obligor may not demand the return of the money paid or thing delivered;provided, however, that if the obligor tendered anything by mistake, the obligee must return the benefit gained as a result..

Article 297
(1) A holder of a right of retention may collect fruits derived from the thing retained, and appropriate the same to the satisfaction of that holder's own claim before other obligees.
(2) The fruits referred to in the preceding paragraph must be appropriated first to the payment of interest on the claim, and any remainder must be appropriated to the satisfaction of the principal..

Article 453
Even after the obligee has made a demand to the principal obligor in accordance with the provisions of the preceding Article, the obligee must first execute on the property of the principal obligor if the guarantor proves that the principal obligor has the financial resources to pay the obligation and that the execution can be easily performed..

Article 462
(1) The provisions of Article 459-2, paragraph (1) apply mutatis mutandis if a person, that has given guarantee without the request of the principal obligor, performs an act for extinguishment of obligation.
(2) A person that has become a guarantor against the will of the principal obligor has the right to reimbursement only to the extent currently enriched.In this case, if the principal obligor asserts to have grounds for set-off against the obligee prior to the day of the demand for reimbursement, the guarantor may demand that the obligee perform the obligation which would have been extinguished by that set-off.
(3) The provisions of Article 459-2, paragraph (3) apply mutatis mutandis to the exercise of the right to reimbursement if the guarantor referred to in the preceding two paragraphs performs an act for extinguishment of obligation before the due date of the principal obligation..

Article 504 (1) If there is a person that has legitimate interest in performing an obligation (hereinafter referred to as a "person entitled to subrogation" in this paragraph), and the obligee causes the security thereof to be lost or diminished intentionally or negligently, the person entitled to subrogation is relieved from responsibility to the extent that that person can no longer seek the reimbursement due to the loss or diminution in the security available upon subrogation. If the person entitled to subrogation is a third-party collateral provider, the same applies to a third party that has acquired from the person entitled to subrogation the property that is the subject of security and to the specific successor thereof.
(2) The provisions of the preceding paragraph do not apply if the obligee is found to have reasonable grounds in light of the common sense in the transaction for causing the security to be lost or diminished.

Article 419
(1) The amount of the compensation for loss or damage for failure to perform an obligation to deliver money is determined with reference to the statutory interest rate as of the time when the obligor first assumes the responsibility for the delay;provided, however, that if the agreed-upon interest rate exceeds the statutory interest rate, the agreed-upon interest rate prevails.
(2) The obligee is not be required to prove loss or damage with respect to the compensation for loss or damage referred to in the preceding paragraph.
(3) The obligor may not raise the defense of force majeure with respect to the compensation for loss or damage referred to in paragraph (1)..

Article 448
(1) If the burden of a guarantor is more onerous than the principal obligation as to either its subject matter or terms, it is reduced to the extent of the principal obligation.
(2) Even if the subject matter or terms of the principal obligation are made more onerous after the conclusion of a guarantee contract, the burden of the guarantor remains unchanged..

Article 400
If the subject matter of a claim is the delivery of a specific thing, the obligor must retain the thing with the due care of a prudent manager, which is determined in light of the contract or other sources of claims and the common sense in the transaction, until the delivery..

Article 474
(1) A third party may also perform an obligation.
(2) A third party that has no legitimate interest in performing an obligation may not perform the obligation against the will of the obligor;provided, however, that this does not apply if the obligee did not know that the performance is against the will of the obligor.
(3) The third party prescribed in the preceding paragraph may not perform the obligation against the will of the obligee;provided, however, that this does not apply if the third party performs the obligation as requested by the obligor, and the obligee knew this.
(4) The provisions of the preceding three paragraphs do not apply if the nature of an obligation does not permit the performance by a third party or if a party manifests the intention to prohibit or restrict the performance by a third party..

Article 499
A person that has performed the obligation for the benefit of the obligor is subrogated to the claim of the obligee.
Article 500
The provisions of Article 467
apply mutatis mutandis in the case referred to in the preceding Article (unless a person with a legitimate interest in making performance is subrogated to the claim of the obligee)..

Article 485
Unless a particular intention is manifested with respect to the expenses of performance, those expenses are borne by the obligor;provided, however, that if the obligee caused the expenses of performance to increase by relocating the domicile thereof or taking any other act, the amount of increase due to this is borne by the obligee..

Article 372
The provisions of Article 296, Article 304
and Article 351
apply mutatis mutandis to mortgages.
Article 296
A holder of a right of retention may exercise that holder's rights against the whole of the thing retained until the relevant claim is satisfied in its entirety..

Article 484
(1) Unless a particular 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 that 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.
(2) If the trading hours are specified by laws and regulations or customs, performance may be made or demanded only within the trading hours.
Article 401
(1) If the object of a claim is designated only with reference to a type and its quality cannot be determined in light of the nature of the juridical act or intention of the parties, the obligor must deliver a thing of medium quality.
(2) In the case referred to in the preceding paragraph, if the obligor has completed the acts necessary to deliver the thing, or has designated the thing the obligor is to deliver with the consent of the obligee, that thing thenceforth constitutes the subject matter of the claim..

Instruction: Given a statement, retrieve a legal provision that verifies this statement.


Question: When jointly and severally liable guarantor person C acknowledges a claim from person A to person B before the prescription period has elapsed, the effect of interruption of prescription also affects main obligor person B.

Article 152
(1) If a right is acknowledged, a new period of prescription commences to run at the time of the acknowledgment.
(2) With respect to the disposition of the right of the other party, an acknowledgment referred to in the preceding paragraph does not require unlimited capacity to act or authority.
Article 153
(1) The postponement of the expiry of prescription period or the renewal of prescription period under the provisions of Article 147
or Article 148
is effective only between the parties with respect to whom grounds to postpone the expiry of prescription period or to renew prescription period have arisen and their successors.
(2) The postponement of expiry of prescription period under the provisions of Articles 149 through 151 is effective only between the parties with respect to whom grounds to postpone the expiry of prescription period have arisen and their successors.
(3) The renewal of prescription period under the provisions of the preceding Article is effective only between the parties with respect to whom grounds to renew prescription period have arisen and their successors.
Article 458
The provisions of Article 438, Article 439, paragraph (1), Article 440, and Article 441
apply mutatis mutandis to circumstances which arise with regard to the guarantor that bears the obligation jointly and severally with the principal obligor.
Article 441
Except in cases prescribed in Articles 438, Article 439, paragraph (1), and the preceding Article, any circumstances which have arisen with respect to one of the joint and several obligors is not effective in relation to other joint and several obligors;provided, however, that if the obligee and one of the other joint and several obligors manifest a different intention, their intention prevails with respect to the effect in relation to the remaining other joint and several obligees..

Article 166
(1) A claim is extinguished by prescription in the following cases:
(i) if the obligee does not exercise the right within five years from the time when the obligee came to know that it was exercisable; or
(ii) if the obligee does not exercise the right within 10 years from the time when it became exercisable.
(2) A claim or property right other than ownership is extinguished by prescription if not exercised within 20 years from the time when the right became exercisable.
(3) The provisions of the preceding two paragraphs do not preclude the commencement of acquisitive prescription for the benefit of a third party that possesses the subject matter of a right with a time of commencement or a right subject to a condition precedent, at the time of commencing the possession;provided, however, that the holder of the right may demand acknowledgment from the possessor at any time to renew the prescription period.
Article 412
(1) If a fixed due date is assigned to the performance of an obligation, the obligor is liable for delay from the time that due date arrives.
(2) If an uncertain due date is assigned to the performance of an obligation, the obligor is liable for delay from the time when the obligor receives the request for performance after the due date arrives or the time when the obligor becomes aware of the arrival of that due date, whichever comes earlier.
(3) If no time limit is assigned to the performance of an obligation, the obligor is liable for delay from the time the obligor receives the request for performance..

Article 126 The right to rescind an act is extinguished by the operation of the prescription if it is not exercised within five years from the time when it becomes possible to ratify the act. The same applies if 20 years have passed from the time of the act.

Article 617
(1) If the parties do not specify the term of a lease, either party may give a notice of termination at any time. In such cases, a lease as set forth in one of the following items terminates when the term prescribed in that item has passed after the day of the notice of termination:
(i)
(ii)
(iii)
(2) With respect to leases of land with harvest seasons, the notice of termination must be given after the end of that season and before the next start of cultivation.
Article 591
(1) If the parties do not define the time for return of borrowed things, the lender may demand their return, specifying a reasonable period of time.
(2) The borrower may return the borrowed thing at any time, irrespective of whether the parties have defined the time of return of the thing.
(3) If the parties defined the time of return of the borrowed thing, and the lender sustains any damage because the borrower returns the thing prior to the time of return, the lender may claim compensation therefor from the borrower..

Article 446
(1) A guarantor has the responsibility to perform the obligation of the principal obligor when the latter fails to perform that obligation.
(2) No guarantee contract becomes effective unless it is made in writing.
(3) If a guarantee contract is concluded by electronic or magnetic record which records the terms thereof, the guarantee contract is deemed to be made in writing, and the provisions of the preceding paragraph apply..

Article 514
(1) A novation by substitution of obligor may be effected by a contract concluded between the obligee and a person that becomes the obligor after the novation. In such a case, the novation becomes effective when the obligee notifies the obligor prior to the novation of the conclusion of the contract.
(2) The obligor after the novation by substitution of obligor does not acquire a right to reimbursement from the obligor prior to the novation..

Article 422-2 If the obligor acquires a right or profit as a substitute for the subject matter of the obligation due to the same cause as the one that has rendered the performance of the obligation impossible, the obligee may demand the transfer of the right or reimbursement of the profit from the obligor, to the extent of the amount of damage sustained thereby.

Article 160
With respect to an estate, the prescription period does not expire until six months have passed from the time when the heir is identified, the administrator is appointed, or commencement of bankruptcy proceeding is ordered..

Article 117
(1) A person who concludes a contract as an agent of another person is liable to the counterparty for the performance of the contract or compensation for loss or damage, as chosen by the counterparty, unless the person proves the authority to represent or the principal ratifies the contract.
(2) The provisions of the preceding paragraph do not apply in the following cases:
(i) if the counterparty knew that the person who concluded the contract as an agent of the other person had no authority to represent;
(ii) if the counterparty was negligent in not knowing that the person who concluded the contract as an agent of the other person had no authority to represent;provided, however, that this does not apply if the person who concluded a contract as an agent of the other person knew themselves to have no authority to represent; or
(iii) if the legal capacity to act of the person who concluded the contract as an agent of the other person was subject to restrictions..

Article 467
(1) The assignment of a claim (including the assignment of a claim that is yet to arise) may not be duly asserted against the applicable obligor or any other third party, unless the assignor gives notice thereof to the obligor or the obligor has consented to the same.
(2) Notice or consent as referred to in the preceding paragraph may not be duly asserted against a third party other than the obligor unless the notice or the consent is made using an instrument bearing a certified date..

Article 419
(1) The amount of the compensation for loss or damage for failure to perform an obligation to deliver money is determined with reference to the statutory interest rate as of the time when the obligor first assumes the responsibility for the delay;provided, however, that if the agreed-upon interest rate exceeds the statutory interest rate, the agreed-upon interest rate prevails.
(2) The obligee is not be required to prove loss or damage with respect to the compensation for loss or damage referred to in the preceding paragraph.
(3) The obligor may not raise the defense of force majeure with respect to the compensation for loss or damage referred to in paragraph (1)..

Article 594
(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 the provisions of the preceding two paragraphs, the lender may cancel the contract..

Article 113
(1) A contract concluded by a person who acts as the agent of another person but has no authority to represent does not bind the principal unless the principal ratifies it.
(2) The ratification or refusal to ratify may not be duly asserted against the counterparty unless it is made to that counterparty;provided, however, that this does not apply if the counterparty has come to know the ratification or refusal to ratify.
Article 115
A counterparty may rescind a contract that a person without the authority to represent has concluded until the principal ratifies it;provided, however, that this does not apply if the counterparty knew at the time of the conclusion of the contract that the agent had no authority to represent..

Article 447
(1) The guarantee obligation includes interest, penalty and compensation for loss or damage in connection with the principal obligation, and all other charges secondary to that obligation.
(2) A guarantor may stipulate the amount of penalty or compensation for loss or damage with regard to the guarantor's own guarantee obligation only..

Article 536 (1) If the performance of an obligation becomes impossible due to grounds not attributable to either party, the obligee may refuse to perform counter-performance.

Article 438 If novation takes place between one of the joint and several obligors and the obligee, the claim is extinguished for the benefit of all joint and several obligors.
Article 439 (1) If one of the joint and several obligors has a claim against the obligee and invokes a set-off, the claim is extinguished for the benefit of all joint and several obligors.
(2) Until the joint and several obligor that has the claim referred to in the preceding paragraph invokes a set-off, other joint and several obligors may refuse to perform the obligation to the obligee only to the extent of that joint and several obligor's share of the obligation.
Article 440 If there is a merger between one of the joint and several obligors and the obligee, the joint and several obligor is deemed to have performed the obligation.
Article 441 Except in cases prescribed in Articles 438, Article 439, paragraph (1), and the preceding Article, any circumstances which have arisen with respect to one of the joint and several obligors is not effective in relation to other joint and several obligors; provided, however, that if the obligee and one of the other joint and several obligors manifest a different intention, their intention prevails with respect to the effect in relation to the remaining other joint and several obligees.

Article 707
(1) If a person that is not an obligor has performed an obligation by mistake and the obligee, acting in good faith, has allowed the instrument to be lost, has damaged the instrument, has waived the security, or has lost the claim by prescription, the person performing the obligation may not demand the return of subject matter of the performance.
(2) The provisions of the preceding paragraph do not preclude the person performing an obligation from exercising the right to reimbursement against the obligor..

Article 443
(1) If one of the joint and several obligors performs the obligation or otherwise obtains a common discharge in exchange for that obligor's own property, while knowing the existence of other joint and several obligors but without giving notice of the common discharge to the other joint and several obligors, another joint and several obligor has a defense that can be duly asserted against the obligee, the other joint and several obligor may duly assert that defense against the joint and several obligor that obtained the discharge to the extent of the other obligor's share of the obligation. In such a case, if the other joint and several obligor duly asserts a set-off as defense against the joint and several obligor that obtained the discharge, the joint and several obligor may request the obligee to perform the obligation which should have been extinguished due to set-off.
(2) If one of the joint and several obligors that has performed the obligation or otherwise obtained a common discharge in exchange for that obligor's own property, while knowing the existence of other joint and several obligors, fails to give notice of the acquisition of the discharge to the other joint and several obligors, and as a result, another joint and several obligor performs the obligation or performs another act in good faith to obtain discharge in exchange for that obligor's own property, the other joint and several obligor may deem that the act performed to obtain the discharge is valid..

Article 463
(1) If a guarantor gives guarantee as requested by the principal obligor and performs an act for extinguishment of obligation without giving prior notice to the principal obligor, the principal obligor may assert against the guarantor any defense that could have been asserted against the obligee. In such a case, if the principal obligor asserts a set-off against the guarantor, the guarantor may request the obligee to perform the obligation which should have been extinguished due to the set-off.
(2) If a guarantor gives guarantee as requested by the principal obligor and performs an act for extinguishment of obligation in good faith because of the principal obligor's failure to notify the guarantor of the principal obligor's performance of an act for extinguishment of obligation, the guarantor may deem that the guarantor's own act for extinguishment of obligation is valid.
(3) If the principal obligor performs an act for extinguishment of obligation after the guarantor has performed an act for extinguishment of obligation, the principal obligor may deem that the guarantor's own act for extinguishment of obligation is valid, not only if the guarantor has given guarantee against the will of the principal obligor but also if the principal obligor has performed an act for extinguishment of obligation in good faith because of the guarantor's failure to notify the principal obligor of the guarantor's performance of act for extinguishment of obligation..

Article 653 A mandate terminates when:
(i) the mandator or mandatary dies;
(ii) the mandator or mandatary is subject to an order commencing bankruptcy proceeding;
(iii) the mandatary is subject to a decision for the commencement of guardianship.
Article 655 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.

Instruction: Given a statement, retrieve a legal provision that verifies this statement.


Question: In cases where person A and person B co-own building X at a ratio of 1:1, if person A dies and had no heirs or persons with special connection, ownership of building X belongs to person B.

Article 255
If one of co-owners waives interest or dies without an heir, the-waived interest belongs to the other co-owners..

Article 175
No real right may be established other than those prescribed by laws including this Code.
Article 265
A superficiary has the right to use another person's land in order to own structures, or trees or bamboo, on that land.
Article 270
A farming right holder has the right to pay rent and engage in cultivation or livestock farming on another person's land.
Article 280
A servitude holder has the right to use another person's land for the convenience of their own lands in accordance with purposes prescribed in the act establishing the servitude;provided, however, that this right must not violate the provisions (limited to those that relate to public policy) under Section 1 of Chapter 3 (Extent of Ownership)..

Article 397
If a person that is neither an obligor nor a mortgagor has possessed the mortgaged immovables in complete conformity with the requirements for acquisitive prescription, the mortgage is extinguished thereby.
Article 162
(1) A person that possesses the property of another for 20 years peacefully and openly with the intention to own it acquires ownership thereof.
(2) A person that possesses the property of another for 10 years peacefully and openly with an intention to own it acquires ownership thereof if the person was acting in good faith and was not negligent at the time when the possession started..

Article 369
(1) A mortgagee has the right to have the mortgagee's claim satisfied prior to other obligees out of the immovables that the obligor or a third party provided to secure the obligation without transferring possession.
(2) Superficies and farming rights may be the subject matter of a mortgage.In this case, the provisions of this Chapter apply mutatis mutandis..

Article 216
If a 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 owner of that other land repair the structure or remove the impediments, or, if necessary, have the same carry out preventive construction work..

Article 192
A person that commences the possession of movables peacefully and openly by a transactional act acquires the rights that are exercised with respect to the movables immediately if the person possesses it in good faith and without negligence..

Article 295
(1) If a possessor of a thing belonging to another person has a claim that has arisen in relation to that thing, that possessor may retain that thing until that claim is satisfied;provided, however, that this does not apply if the relevant claim has not yet fallen due.
(2) The provisions of the preceding paragraph do not apply if possession commenced by means of a tortious act..

Article 284
(1) If one of the co-owners of land acquires a servitude by prescription, the other co-owners also acquire the same servitude.
(2) Renewal of prescription period does not become effective against co-owners unless it is made against each co-owner that exercises the servitude.
(3) If there are two or more co-owners that exercise a servitude, even if there is any ground for postponement of expiry of prescription period with respect to one of them, the prescription runs in favor of each co-owner..

Article 281
(1) Servitudes are transferred together with the ownership in the dominant land (meaning the land of a servitude holder, enjoying benefits from another person's land; the same applies hereinafter) as appurtenances thereof, and are subject of other rights that exist in relation to the dominant land;provided, however, that this does not apply if the act establishing the servitude provides otherwise.
(2) Servitudes may neither be transferred nor made the subject of other rights apart from the dominant land..

Article 520
If a claim and obligation becomes vested in the same person, such claim is extinguished;provided, however, that this does not apply if such a claim is the subject matter of the right of a third party..

Article 717
(1) If a defect in the installation or preservation of a structure on land causes damage to another person, the possessor of that structure is liable to the person incurring damage to compensate for the damage;provided, however, that if the possessor has exercised the necessary care to prevent the damage, the owner must compensate for the damage.
(2) The provisions of the preceding paragraph apply mutatis mutandis if there is a defect in the planting or supporting of bamboo or trees.
(3) In the cases referred to in the preceding two paragraphs, if there is another person that is liable for the cause of the damage, the possessor or owner may exercise their right to reimbursement against that person..

Article 670
(1) The partnership business is decided by the majority of the partners and executed by each partner.
(2) The decision and execution of the partnership business may be delegated to one or more partners or a third party, pursuant to the provisions of the partnership contract.
(3) The person delegated as referred to in the preceding paragraph (hereinafter referred to as a "person who executes business") decides and executes the partnership business. In such a case, if there are two or more persons who execute business, the partnership business is decided by the majority of these persons who execute business and is executed by each of them.
(4) Notwithstanding the provisions of the preceding paragraph, the partnership business is not precluded to be decided based on the consent of all partners or executed by all partners.
(5) Notwithstanding the provisions of the preceding paragraphs, the ordinary business of a partnership may be performed by each partner or each person who executes business independently;provided, however, that this does not apply if other partners or persons who execute business raise objections prior to the completion of the business..

Article 181
Possessory rights may be acquired through an agent.
Article 658
(1) A bailee may not use the bailed thing without obtaining the consent of the bailor.
(2) The bailee may not have a third party keep the bailed thing in custody unless the bailee obtains the consent of the bailor or there is a compelling reason to do so.
(3) A sub-bailee has the same rights and obligations as those of the bailee in relation to the bailor within the scope of authority thereof..

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

Article 213
(1) If the partition of land creates a parcel of land that has no access to public roads, the owner of that parcel of land may pass to the public roads only through the lands owned by another person that participated in the partition.In this case, it is necessary to pay compensation.
(2) The provisions of the preceding paragraph apply mutatis mutandis if the owner of land transfers part of the land to another person..

Article 551
(1) The donor is presumed to have promised to deliver or transfer the thing or right that is the subject matter of the gift, while maintaining its condition as of the time when it is specified as the subject matter of the gift.
(2) With respect to gifts with burden, the donor provides the same warranty as that of a seller, to the extent of that burden..

Article 206
An owner has the rights to freely use, profit from and dispose of the thing owned, within the limits of laws and regulations..

Article 388
If the land and a building on that land belong to the same owner, a mortgage is created with respect to that land or building, and the enforcement of that mortgage causes them to belong to different owners, it is deemed that a superficies has been created with respect to that building.In this case, the rent is fixed by the court at the request of the parties..

Instruction: Given a statement, retrieve a legal provision that verifies this statement.


Question: In cases where person A pays in advance management fees for a building co-owned by person A and person B, and person C receives  the share from person B, person A can demand that person C should  pay for person A's payments.

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

Article 717
(1) If a defect in the installation or preservation of a structure on land causes damage to another person, the possessor of that structure is liable to the person incurring damage to compensate for the damage;provided, however, that if the possessor has exercised the necessary care to prevent the damage, the owner must compensate for the damage.
(2) The provisions of the preceding paragraph apply mutatis mutandis if there is a defect in the planting or supporting of bamboo or trees.
(3) In the cases referred to in the preceding two paragraphs, if there is another person that is liable for the cause of the damage, the possessor or owner may exercise their right to reimbursement against that person.
Article 181
Possessory rights may be acquired through an agent..

Article 213
(1) If the partition of land creates a parcel of land that has no access to public roads, the owner of that parcel of land may pass to the public roads only through the lands owned by another person that participated in the partition.In this case, it is necessary to pay compensation.
(2) The provisions of the preceding paragraph apply mutatis mutandis if the owner of land transfers part of the land to another person..

Article 697
(1) A person that has begun to manage a business for another person without being obligated to do so (hereinafter in this Chapter referred to as a "manager") must manage that business, in accordance with the nature of the business, in the way that best suits the interests of the principal (hereinafter referred to as "benevolent intervention in another's business").
(2) A manager must engage in benevolent intervention in another's business in accordance with the intentions of the principal if the manager knows, or is able to conjecture that intention..

Article 389
(1) If a building is constructed on a mortgaged land after the creation of a mortgage, the mortgagee may auction the building together with the land;provided, however, that the right of priority of that mortgagee may be exercised solely against the proceeds of the land.
(2) The provisions of the preceding paragraph do not apply if the owner of that building has rights with respect to the possession of the mortgaged land that may be duly asserted against the mortgagee..

Article 591
(1) If the parties do not define the time for return of borrowed things, the lender may demand their return, specifying a reasonable period of time.
(2) The borrower may return the borrowed thing at any time, irrespective of whether the parties have defined the time of return of the thing.
(3) If the parties defined the time of return of the borrowed thing, and the lender sustains any damage because the borrower returns the thing prior to the time of return, the lender may claim compensation therefor from the borrower..

Article 246
(1) If a person (hereinafter in this Article referred to as "processor") adds labor to another person's movables, the ownership of the processed thing belongs to the owner of the material; provided, however, that if the value derived from the work significantly exceeds the value of the material, the processor acquires ownership of the processed thing.
(2) In the cases prescribed in the preceding paragraph, if the processor provides a portion of the materials, the processor acquires ownership of the processed thing only if the value of provided materials added to the value derived from the labor exceeds the value of the other person's materials..

Article 295
(1) If a possessor of a thing belonging to another person has a claim that has arisen in relation to that thing, that possessor may retain that thing until that claim is satisfied;provided, however, that this does not apply if the relevant claim has not yet fallen due.
(2) The provisions of the preceding paragraph do not apply if possession commenced by means of a tortious act.
Article 303
The holder of a statutory lien has the rights to have that holder's 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.
Article 388
If the land and a building on that land belong to the same owner, a mortgage is created with respect to that land or building, and the enforcement of that mortgage causes them to belong to different owners, it is deemed that a superficies has been created with respect to that building.In this case, the rent is fixed by the court at the request of the parties..

Article 702
(1) If a manager has incurred beneficial expenses for a principal, the manager may claim reimbursement of those costs from the principal.
(2) The provisions of Article 650, paragraph (2) apply mutatis mutandis if a manager has incurred beneficial obligations on behalf of the principal.
(3) If a manager has engaged in the benevolent intervention in another's business against the will of the principal, the provisions of the preceding two paragraphs apply mutatis mutandis, solely to the extent currently enriched.
Article 295
(1) If a possessor of a thing belonging to another person has a claim that has arisen in relation to that thing, that possessor may retain that thing until that claim is satisfied;provided, however, that this does not apply if the relevant claim has not yet fallen due.
(2) The provisions of the preceding paragraph do not apply if possession commenced by means of a tortious act..

Article 117 (1) A person who concludes a contract as an agent of another person is liable to the counterparty for the performance of the contract or compensation for loss or damage, as chosen by the counterparty, unless the person proves the authority to represent or the principal ratifies the contract.

Article 298
(1) The holder of a right of retention must possess the thing retained with the due care of a prudent manager.
(2) The holder of the right of retention may not use, lease or provide as a security the thing retained unless that holder obtains the consent of the obligor;provided, however, that this does not apply to uses necessary for the preservation of that thing.
(3) If the holder of a right of retention violates the provisions of the preceding two paragraphs, the obligor may demand that the right of retention be terminated.
Article 350
The provisions of Articles 296 through 300 and those of Article 304
apply mutatis mutandis to pledges..

Article 632
A contract for work 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.
Article 633
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 Article 624, paragraph (1) apply mutatis mutandis.
Article 624
(1) An employee may not demand remuneration until the work the employee promised to perform has been completed.
(2) Remuneration specified with reference to a period may be claimed after the passage of that period..

Article 537
(1) If one of the parties promises in a contract to render a certain performance to a third party, the third party has the right to claim that performance directly from the obligor.
(2) The validity of the contract referred to in the preceding paragraph is not impaired even if a third party does not exist or a third party is not specified at the time of its formation.
(3) In the case referred to in paragraph (1), rights of the third party accrue when the third party has manifested intention of availing of the benefit of the contract under that paragraph to the obligor..

Article 87
(1) If the owner of a first thing attaches a second thing that the owner owns to the first thing to serve the ordinary use of the first thing, the thing that the owner attaches is an appurtenance.
(2) An appurtenance is disposed of together with the principal thing if the principal thing is disposed of..

Article 200 (1) If a possessor is forcibly dispossessed, the possessor may demand the restitution of the thing and compensation for loss or damage by filing an action for recovery of possession.
(2) An action for recovery of possession may not be filed against a specific successor of a person that forcibly takes possession; provided, however, that this does not apply if that successor had knowledge of the fact that the person has unlawfully taken the possession.

Article 253
(1) Each co-owner pays the expenses of management and bears burdens regarding the property in co-ownership, in proportion to each co-owner's interest.
(2) If a co-owner does not perform the obligations referred to in the preceding paragraph within one year, other co-owners may acquire that co-owner's interest by paying a reasonable compensation..

Article 715
(1) A person that employs another person for a business undertaking is liable to compensate for damage inflicted on a third party by that person's employees with respect to the execution of that business;provided, however, that this does not apply if the employer exercised reasonable care in appointing the employee or in supervising the business, or if the damage could not have been avoided even if the employer had exercised reasonable care.
(2) A person that supervises a business on behalf of the employer also has the liability referred to in the preceding paragraph.
(3) The provisions of the preceding two paragraphs do not preclude the employer or supervisor from exercising their right to reimbursement against the employee..

Article 612
(1) A lessee may not assign the lease 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 the preceding paragraph, the lessor may cancel the contract..

Article 266
(1) The provisions of Articles 274 through 276 apply mutatis mutandis if the superficiary must pay periodical rent to the owners of the land.
(2) Beyond what is provided for in the preceding paragraph, provisions on leasehold apply mutatis mutandis to rent to the extent that application is not inconsistent with the nature of the same.
Article 276
If a farming right holder fails to pay the rent for two or more consecutive years, the landowner may demand the extinction of the farming right..

Instruction: Given a statement, retrieve a legal provision that verifies this statement.


Question: No contract of joint and several guarantee shall be effective unless it is made in writing, but a contract of guarantee shall be effective even if it is not made in writing.

Article 446
(1) A guarantor has the responsibility to perform the obligation of the principal obligor when the latter fails to perform that obligation.
(2) No guarantee contract becomes effective unless it is made in writing.
(3) If a guarantee contract is concluded by electronic or magnetic record which records the terms thereof, the guarantee contract is deemed to be made in writing, and the provisions of the preceding paragraph apply..

Article 594
(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 the provisions of the preceding two paragraphs, the lender may cancel the contract.
Article 616
The provisions of Article 594, paragraph (1) apply mutatis mutandis to leases..

Article 670
(1) The partnership business is decided by the majority of the partners and executed by each partner.
(2) The decision and execution of the partnership business may be delegated to one or more partners or a third party, pursuant to the provisions of the partnership contract.
(3) The person delegated as referred to in the preceding paragraph (hereinafter referred to as a "person who executes business") decides and executes the partnership business. In such a case, if there are two or more persons who execute business, the partnership business is decided by the majority of these persons who execute business and is executed by each of them.
(4) Notwithstanding the provisions of the preceding paragraph, the partnership business is not precluded to be decided based on the consent of all partners or executed by all partners.
(5) Notwithstanding the provisions of the preceding paragraphs, the ordinary business of a partnership may be performed by each partner or each person who executes business independently;provided, however, that this does not apply if other partners or persons who execute business raise objections prior to the completion of the business..

Article 124
(1) The ratification of a voidable act does not become effective unless it is made after the circumstances that made the act voidable cease to exist and the person ratifying the act becomes aware of the right to rescind it.
(2) In the following cases, the ratification referred to in the preceding paragraph is not required to be made after the circumstances that made the act voidable cease to exist:
(i) if a legal representative or a curator or assistant of a person with qualified legal capacity ratifies the act; or
(ii) if a person with qualified legal capacity (excluding an adult ward) makes the ratification with the consent of a legal representative, curator or assistant.
Article 125
If, at or after the time when it becomes possible to ratify an act, any of the following facts occur with respect to a voidable act, it is deemed that the act has been ratified;provided, however, that this does not apply if an objection is reserved:
(i) full or partial performance;
(ii) request for the performance;
(iii) novation;
(iv) provision of a security;
(v) assignment of a part of or the whole of a right acquired by the voidable act; or
(vi) compulsory execution..

Article 400
If the subject matter of a claim is the delivery of a specific thing, the obligor must retain the thing with the due care of a prudent manager, which is determined in light of the contract or other sources of claims and the common sense in the transaction, until the delivery.
Article 413
(1) If the obligee refuses, or is unable, to accept the tender of the performance of an obligation, and the subject matter of the obligation is the delivery of a specific thing, it is sufficient for the obligor to retain the thing by exercising care identical to that the obligor exercises for the obligor's own property, during the period from the time of the tender of the performance until the delivery of the thing.
(2) If the obligee's refusal or inability to accept the performance of an obligation results in increasing the expenses for the performance, the amount of increase is borne by the obligee..

Article 447
(1) The guarantee obligation includes interest, penalty and compensation for loss or damage in connection with the principal obligation, and all other charges secondary to that obligation.
(2) A guarantor may stipulate the amount of penalty or compensation for loss or damage with regard to the guarantor's own guarantee obligation only..

Article 108
(1) An act that a person performs as an agent of the counterparty or as agent of both parties for the same juridical act is deemed to be an act performed by a person without authority to represent;provided, however, that this does not apply to the performance of an obligation or to an act authorized by the principal in advance.
(2) Beyond what is provided for in the main clause of the preceding paragraph, an act for which the interest of the agent conflicts with the interest of the principal is deemed to be an act performed by a person without authority to represent;provided, however, that this does not apply to an act authorized by the principal in advance..

Article 448
(1) If the burden of a guarantor is more onerous than the principal obligation as to either its subject matter or terms, it is reduced to the extent of the principal obligation.
(2) Even if the subject matter or terms of the principal obligation are made more onerous after the conclusion of a guarantee contract, the burden of the guarantor remains unchanged..

Article 102
An act that a person with qualified legal capacity performs as an agent of another person may not be rescinded on the grounds of qualified legal capacity;provided, however, that this does not apply to an act performed by a person with qualified legal capacity as a legal representative of another person with qualified legal capacity..

Article 465-4
(1) The principal of the principal obligation under a contract for revolving guarantee by an individual is crystallized in the following cases;provided, however, that in the case set forth in item (i), it is crystallized only if the procedure for compulsory execution or enforcement procedure of a security right is commenced:
(i) if an obligee files a petition for compulsory execution or enforcement of any security right for a claim for payment of money with regard to any property of the guarantor;
(ii) if the guarantor receives an order commencing bankruptcy proceeding; or
(iii) the relevant principal obligor or guarantor has died.
(2) Beyond the case prescribed in the preceding paragraph, the principal of the principal obligation under a contract for revolving guarantee by an individual for loans is crystallized in the following cases;provided, however, that in the case set forth in item (i), it is crystallized only if the procedure for compulsory execution or enforcement procedure of a security right is commenced:
(i) if the obligee files a petition for compulsory execution or enforcement of a security right for a claim for payment of money with regard to property of the principal obligor; or
(ii) if the principal obligor receives an order commencing bankruptcy proceeding..

Article 459
(1) If a guarantor gives guarantee as requested by the principal obligor, and performs the obligation on behalf of the principal obligor or performs any other act that causes the obligation to be extinguished in exchange for the guarantor's own property (hereinafter referred to as an "act for extinguishment of obligation"), the guarantor has a right to reimbursement from the principal obligor for the amount of property expended for that act (if the amount of property exceeds the amount of the principal obligation extinguished by the act for extinguishment of obligation, the amount thus extinguished).
(2) The provisions of Article 442, paragraph (2) apply mutatis mutandis to the cases set forth in the preceding paragraph..

Article 128
While it is uncertain whether or not a condition will be fulfilled, a party to a juridical act that is subject to a condition may not prejudice the other party's interests that would arise from the juridical act upon fulfillment of the condition..

Article 637
(1) In the case prescribed in the main clause of the preceding Article, if the party ordering work fails to notify the contractor of the non-conformity to the terms of the contract within one year from the time when the party becomes aware of it, the party ordering work may not demand cure of the non-conformity of performance, demand a reduction of the remuneration, claim compensation for loss or damage, or cancel the contract.
(2) The provisions of the preceding paragraph do not apply if the contractor knew or did not know due to gross negligence the non-conformity referred to in that paragraph at the time when the contractor delivers the subject matter of work (in the case of the subject matter of work that is not required to be delivered, when the work is finished)..

Article 117 (1) A person who concludes a contract as an agent of another person is liable to the counterparty for the performance of the contract or compensation for loss or damage, as chosen by the counterparty, unless the person proves the authority to represent or the principal ratifies the contract.

Article 346
A pledges secures the principal, interest, penalties, expenses of enforcing the pledge, expense of preserving the thing pledged and the compensation of loss or damage arising from failure to perform obligations or latent defects in the thing pledged;provided, however, that this does not apply if the act establishing the pledge provides otherwise..

Article 493
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 that performance in advance or if any act is required on the part of the obligee with respect to the performance of the obligation, it is sufficient for the obligor to request the acceptance thereof by giving a notice that the tender of the performance has been prepared..

Article 344
The creation of a pledge becomes effective through delivery of the subject matter of the pledge to the obligee.
Article 345
A pledgee may not allow a pledgor to possess the thing pledged on behalf of the pledgee..

Article 559
The provisions of this Section apply mutatis mutandis to contracts for value other than contracts for sale;provided, however, that this does not apply when it is not permitted by the nature of the contract for value.
Article 564
The provisions of the preceding two Articles do not preclude the buyer from claiming compensation for loss or damage pursuant to the provisions of Article 415
or exercising the right to cancel pursuant to the provisions of Articles 541 and 542..

Article 525
(1) An offer made without specifying a period for acceptance may not be revoked until the passage of a reasonable period of time for the offeror to receive a notice of acceptance;provided, however, that this does not apply if the offeror reserves the right to revoke.
(2) Notwithstanding the provisions of the preceding paragraph, an offer referred to in that paragraph which has been made to a person with whom the offeror is having a dialogue may be revoked at any time while the dialogue continues.
(3) If an offeror does not receive from a person with whom the offeror is having a dialogue a notice of acceptance of the offer referred to in paragraph (1) while the dialogue continues, the offer ceases to be effective;provided, however, that this does not apply if the offeror manifests the intention to maintain the effect of the offer after the end of the dialogue..

Article 555
A sale becomes effective when one of the parties promises to transfer certain property rights to the other party and the other party promises to pay the price for this..

Article 124
(1) The ratification of a voidable act does not become effective unless it is made after the circumstances that made the act voidable cease to exist and the person ratifying the act becomes aware of the right to rescind it.
(2) In the following cases, the ratification referred to in the preceding paragraph is not required to be made after the circumstances that made the act voidable cease to exist:
(i) if a legal representative or a curator or assistant of a person with qualified legal capacity ratifies the act; or
(ii) if a person with qualified legal capacity (excluding an adult ward) makes the ratification with the consent of a legal representative, curator or assistant.
Article 126
The right to rescind an act is extinguished by the operation of the prescription if it is not exercised within five years from the time when it becomes possible to ratify the act. The same applies if 20 years have passed from the time of the act..

Instruction: Given a statement, retrieve a legal provision that verifies this statement.


Question: In a demand for compensation based on delayed performance of loan claim, if person Y gives proof that the delayed performance is not based on the reasons attributable to him or herself, person Y shall be relieved of the liability.

Article 419
(1) The amount of the compensation for loss or damage for failure to perform an obligation to deliver money is determined with reference to the statutory interest rate as of the time when the obligor first assumes the responsibility for the delay;provided, however, that if the agreed-upon interest rate exceeds the statutory interest rate, the agreed-upon interest rate prevails.
(2) The obligee is not be required to prove loss or damage with respect to the compensation for loss or damage referred to in the preceding paragraph.
(3) The obligor may not raise the defense of force majeure with respect to the compensation for loss or damage referred to in paragraph (1)..

Article 648
(1) In the absence of any special agreements, the mandatary may not claim remuneration from the mandator.
(2) If a mandatary is to receive remuneration, the mandatary may not claim this until after having performed the mandated business;provided, however, that if the remuneration is specified with reference to period, the provisions of Article 624, paragraph (2) apply mutatis mutandis.
(3) In the following cases, the mandatary may demand remuneration in proportion to the performance already completed:
(i) if the mandatary is no longer able to perform the mandated business due to any grounds not attributable to the mandator; or
(ii) if the mandate is terminated during the course of performance..

Article 474
(1) A third party may also perform an obligation.
(2) A third party that has no legitimate interest in performing an obligation may not perform the obligation against the will of the obligor;provided, however, that this does not apply if the obligee did not know that the performance is against the will of the obligor.
(3) The third party prescribed in the preceding paragraph may not perform the obligation against the will of the obligee;provided, however, that this does not apply if the third party performs the obligation as requested by the obligor, and the obligee knew this.
(4) The provisions of the preceding three paragraphs do not apply if the nature of an obligation does not permit the performance by a third party or if a party manifests the intention to prohibit or restrict the performance by a third party..

Article 422-2 If the obligor acquires a right or profit as a substitute for the subject matter of the obligation due to the same cause as the one that has rendered the performance of the obligation impossible, the obligee may demand the transfer of the right or reimbursement of the profit from the obligor, to the extent of the amount of damage sustained thereby.

Article 499 A person that has performed the obligation for the benefit of the obligor is subrogated to the claim of the obligee.
Article 500 The provisions of Article 467 apply mutatis mutandis in the case referred to in the preceding Article (unless a person with a legitimate interest in making performance is subrogated to the claim of the obligee).

Article 394
(1) A mortgagee may receive payment from assets other than the mortgaged immovables only for the portion of that mortgagee's claim that is not paid from the proceeds of the relevant mortgaged immovables.
(2) The provisions of the preceding paragraph do not apply if the proceeds of other assets are to be distributed prior to the proceeds of the mortgaged immovables. In these 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..

Article 650
(1) If the mandatary has expended 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 expended.
(2) If the mandatary has borne 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 a mandatary incurs loss or damage that is not due to the negligence of the mandatary in order to administer the mandated business, the mandatary may claim compensation for this from the mandator..

Article 509
The obligor of either of the following obligations may not duly assert a set-off against the obligee;provided, however, that this does not apply if the obligee acquires a claim corresponding to the relevant obligation from another person:
(i) an obligation for compensation for loss or damage based on a tort committed in bad faith; or
(ii) an obligation for compensation for loss or damage for death or injury to person (excluding the one set forth in the preceding item)..

Article 714
(1) When a person without capacity to be assume responsibility is not liable pursuant to the provisions of the preceding two Articles, the person with the statutory obligation to supervise the person without capacity to assume responsibility is liable to compensate for damage that the person without capacity to be assume responsibility has inflicted on a third party;provided, however, that this does not apply if the person who has the obligation to supervise has not failed to perform that person's obligation or if the damage could not have been avoided even if that person had not failed to perform that person's obligation.
(2) A person who supervises a person without capacity to be assume responsibility on behalf of the person who has the obligation to supervise also has the liability referred to in the preceding paragraph..

Article 420
(1) The parties may agree on the amount of liquidated damages with respect to the failure to perform the obligation.
(2) The agreement on liquidated damages do not preclude the request for performance or the exercise of the cancellation right.
(3) A penalty is presumed to constitute liquidated damages..

Article 587
A loan for consumption becomes effective when a first party receives money or any other thing from a second party, having promised to return a thing of the same type, quality, and quantity.
Article 587-2
(1) Notwithstanding the provisions of the preceding Article, a loan for consumption made in writing becomes effective when a first party promises to deliver money or any other thing and a second party promises to return a thing of the same type, quality, and quantity as the thing delivered.
(2) The borrower of a loan for consumption made in writing may cancel the contract until the borrower receives the money or other thing from the lender. In such a case, if the lender sustains any damage from the cancellation of the contract, the lender may claim compensation therefor.
(3) A loan for consumption made in writing ceases to be effective if either of the parties receives an order commencing bankruptcy proceedings before the borrower receives the thing such as money from the lender.
(4) If a loan for consumption is made by means of an electronic or magnetic record in which its content is recorded, the loan for consumption is deemed to have been made in writing, and the provisions of the preceding three paragraphs apply thereto..

Article 707
(1) If a person that is not an obligor has performed an obligation by mistake and the obligee, acting in good faith, has allowed the instrument to be lost, has damaged the instrument, has waived the security, or has lost the claim by prescription, the person performing the obligation may not demand the return of subject matter of the performance.
(2) The provisions of the preceding paragraph do not preclude the person performing an obligation from exercising the right to reimbursement against the obligor..

Article 371
If there is a default with respect to a claim secured by a mortgage, the mortgage extends to the fruits of the mortgaged immovables derived after the default..

Article 400
If the subject matter of a claim is the delivery of a specific thing, the obligor must retain the thing with the due care of a prudent manager, which is determined in light of the contract or other sources of claims and the common sense in the transaction, until the delivery.
Article 413
(1) If the obligee refuses, or is unable, to accept the tender of the performance of an obligation, and the subject matter of the obligation is the delivery of a specific thing, it is sufficient for the obligor to retain the thing by exercising care identical to that the obligor exercises for the obligor's own property, during the period from the time of the tender of the performance until the delivery of the thing.
(2) If the obligee's refusal or inability to accept the performance of an obligation results in increasing the expenses for the performance, the amount of increase is borne by the obligee..

Article 706 If an obligor has paid money or delivered anything as performance of an obligation that has not yet fallen due, the obligor may not demand the return of the money paid or thing delivered; provided, however, that if the obligor tendered anything by mistake, the obligee must return the benefit gained as a result.

Article 406
If the subject matter of the claim is to be determined by a choice being made from among more than one performance, the right to choose belongs to the obligor..

Article 496
(1) As long as the obligee does not accept the deposit, or the judgment which pronounces that the deposit is effective does not become final and binding, the performer may recover the deposited thingy. In such case, it is deemed that no deposit has been effected.
(2) The provisions of the preceding paragraph do not apply in cases any pledge or mortgage has been extinguished due to the deposit..

Article 466-5 (1) Notwithstanding the provisions of Article 466, paragraph (2), the manifestation of intention to restrict assignment which is made by a party with regard to a claim for deposits in a deposit account (hereinafter referred to as a "claim for deposits") may be duly asserted against a third party such as the assignee that knew or did not know due to gross negligence that the manifestation of intention to restrict assignment was made.

Article 587
A loan for consumption becomes effective when a first party receives money or any other thing from a second party, having promised to return a thing of the same type, quality, and quantity..

Article 484
(1) Unless a particular 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 that 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.
(2) If the trading hours are specified by laws and regulations or customs, performance may be made or demanded only within the trading hours..

Instruction: Given a statement, retrieve a legal provision that verifies this statement.


Question: A seller that cancelled a movable sale contract on the basis of duress can demand return of the movable based on its ownership from the person who bought the movable from the buyer prior to the cancellation without knowledge or any negligence.

Article 192
A person that commences the possession of movables peacefully and openly by a transactional act acquires the rights that are exercised with respect to the movables immediately if the person possesses it in good faith and without negligence..

Article 598
(1) In the case prescribed in paragraph (2) of the preceding Article, upon the passage of a period that is sufficient for the borrower to use and make profit from the borrowed thing in line with the purpose referred to in that paragraph, the lender may cancel the contract.
(2) If the parties do not specify a period of a loan for use or a purpose of using and making profit from the borrowed thing, the lender may cancel the contract at any time.
(3) The borrower may cancel the contract at any time..

Article 705
A person that has paid money or delivered anything as performance of an obligation may not demand the return of the money paid or thing delivered if the person knew, at the time, that the obligation did not exist..

Article 545
(1) If one of the parties exercises the right to cancel, each party assumes an obligation to restore the other party to that other party's original state;provided, however, that this may not prejudice the rights of a third party.
(2) In the case referred to in the main clause of the preceding paragraph, if any monies are to be refunded, interest must accrue from the time of the receipt of those monies.
(3) In the case referred to in the main clause of paragraph (1), if a thing other than money is to be returned, fruits that have accrued on or after the time of the receipt of the thing must also be returned.
(4) The exercise of the right to cancel does not preclude claims for compensation for loss or damage..

Article 620
If a lease is cancelled, the cancellation becomes effective solely toward the future. In such a case, the cancellation does not preclude a claim for compensation for loss or damage..

Article 591
(1) If the parties do not define the time for return of borrowed things, the lender may demand their return, specifying a reasonable period of time.
(2) The borrower may return the borrowed thing at any time, irrespective of whether the parties have defined the time of return of the thing.
(3) If the parties defined the time of return of the borrowed thing, and the lender sustains any damage because the borrower returns the thing prior to the time of return, the lender may claim compensation therefor from the borrower..

Article 565
The provisions of the preceding three Articles apply mutatis mutandis if the right transferred by the seller to the buyer does not conform to the terms of the contract (including the case in which the seller fails to transfer part of a right that belongs to another person).
Article 566
If the subject matter delivered by the seller to the buyer does not conform to the terms of the contract with respect to the kind or quality, and the buyer fails to notify the seller of the non-conformity within one year from the time when the buyer becomes aware of it, the buyer may not demand cure of the non-conformity of performance, demand a reduction of the price, claim compensation for loss or damage, or cancel the contract, on the grounds of the non-conformity;provided, however, that this does not apply if the seller knew or did not know due to gross negligence the non-conformity at the time of the delivery..

Article 577
(1) If a mortgage that does not conform to the terms of the contract is registered on immovables that have been purchased, the buyer may refuse to pay the price 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 the preceding paragraph apply mutatis mutandis if a statutory lien or pledge that does not conform to the terms of the contract is registered on the immovables that have been bought..

Article 182
(1) The transfer of possessory rights is effected by the delivery of the thing possessed.
(2) If a transferee or the agent of a transferee is actually holding the thing under possession, the transfer of possessory rights may be effected by the parties' manifestations of intention alone..

Article 177
Acquisitions of, losses of and changes in real rights on immovables may not be duly asserted against any third parties, unless the same are registered pursuant to the applicable provisions of the Real Property Registration Act (Act No. 123 of 2004) and other laws regarding registration..

Article 651
(1) A mandate may be cancelled by either party at any time.
(2) In the following cases, a party that has cancelled a mandate pursuant to the provisions of the preceding paragraph must compensate for damage suffered by the other party;provided, however, that this does not apply if there was a compelling reason for the cancellation:
(i) if the party cancels the mandate at a time that is detrimental to the other party; or
(ii) if the mandator cancels the mandate for which the purpose includes the interests for the mandatary (excluding the profit to be obtained exclusively by receiving remuneration)..

Article 239
(1) Ownership of movables without an owner are acquired by possessing the same with the intention to own.
(2) Ownerless immovables belong to the National Treasury..

Article 594
(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 the provisions of the preceding two paragraphs, the lender may cancel the contract..

Article 412-2 (1) If the performance of an obligation is impossible in light of the contract or other sources of claims and the common sense in the transaction, the obligee may not request the performance of the obligation.
(2) The impossibility of the performance of an obligation based on a contract as of the time of the formation of the contract does not preclude claiming compensation for loss or damage that arises from the impossibility of the obligation pursuant to the provisions of Article 415.

Article 296
A holder of a right of retention may exercise that holder's rights against the whole of the thing retained until the relevant claim is satisfied in its entirety.
Article 301
An obligor may demand that a right of retention be terminated by providing a reasonable security.
Article 350
The provisions of Articles 296 through 300 and those of Article 304
apply mutatis mutandis to pledges..

Article 400
If the subject matter of a claim is the delivery of a specific thing, the obligor must retain the thing with the due care of a prudent manager, which is determined in light of the contract or other sources of claims and the common sense in the transaction, until the delivery..

Article 379
A third party acquirer of a mortgaged immovables may make a claim for the extinguishment of a mortgage as prescribed in Article 383..

Article 121-2 (1) A person that has received payment or delivery as the performance of an obligation based on a void act has an obligation to restore the other party to the original state.
(2) Notwithstanding the provisions of the preceding paragraph, if a person that receives payment or delivery as the performance of an obligation based on a void gratuitous act did not know that the act was void at the time of receiving the payment or delivery (or if the person did not know that the act was voidable at the time of receiving the payment or delivery in the case of an act which is deemed void ab initio pursuant to the provisions of the preceding Article after the receipt of the payment or delivery), has an obligation to return to the extent currently enriched by the act.

Article 706 If an obligor has paid money or delivered anything as performance of an obligation that has not yet fallen due, the obligor may not demand the return of the money paid or thing delivered; provided, however, that if the obligor tendered anything by mistake, the obligee must return the benefit gained as a result.

Article 302
A right of retention is extinguished if the holder of the right of retention loses possession of the thing retained;provided, however, that this does not apply if the thing retained is leased or it is made the subject of a pledge pursuant to the provisions of Article 298, paragraph (2).
Article 298
(1) The holder of a right of retention must possess the thing retained with the due care of a prudent manager.
(2) The holder of the right of retention may not use, lease or provide as a security the thing retained unless that holder obtains the consent of the obligor;provided, however, that this does not apply to uses necessary for the preservation of that thing.
(3) If the holder of a right of retention violates the provisions of the preceding two paragraphs, the obligor may demand that the right of retention be terminated..

Instruction: Given a statement, retrieve a legal provision that verifies this statement.