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Main Page / Legislations / Law No. 16 of 1971 issuing the Law of Civil and Commercial Articles / Subchapter II: Effects of the Contract / 1-Binding effect between the contractors
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Law No. 16 of 1971 issuing the Law of Civil and Commercial Articles

Law Summary Record Type: LawNumber: 16Date: 25/08/1971 Corresponding to 04/07/1391 HijriNumber of Articles: 477Status: In force
Official Gazette :Issue: 7Offcial Journal Issue Publication Date: 01/01/1971 Corresponding to 05/11/1390 HijriPage from: 3458
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1-Binding effect between the contractors

  • 43 Article (Repealed)

    The effects of a contract shall be binding on the contracting parties and the general successor, without prejudice to the rules on inheritance, unless such effects are not applicable to the general successor in accordance with the contract, the nature of the transaction or a provision of the law.
    6/30/2004

  • 44 Article (Repealed)

    Where a contract creates obligations and personal rights in connection with specific thing transferred, after that, to a special successor, such obligations and rights shall be transferred to such successor at the time of transfer of such thing.
    6/30/2004

  • 45 Article (Repealed)

     
     
     

  • 46 Article (Repealed)

    The Compensatory Contract regarding benefits of assets shall require the owner of an asset to deliver it to the beneficiary, and the beneficiary shall be obliged to deliver Utility allowance to the owner of the asset.
    6/30/2004

  • 47 Article (Repealed)

    Whatever the place which is contained in the contract, the contractor shall be forced to perform its obligation.   
    6/30/2004

  • 48 Article (Repealed)

    A contract duly and properly concluded between the parties must be kept (Pacta sunt servanda), such a contract may be revoked or altered only by mutual consent of the parties or for reasons provided for by law.
    Where, however, as a result of exceptional and unforeseeable events, the fulfillment of the contractual obligation, though not impossible, becomes excessively onerous in such a way as to threaten the obligor with exorbitant loss, the judge may, according to the circumstances and after taking into consideration the interests of both parties, reduce the excessive obligation to a reasonable level. Any agreement to the contrary shall be void.
    6/30/2004

  • 49 Article (Repealed)

    A contract shall be performed in accordance with its provisions and in such manner consistent with the requirements of good faith.
    A contract shall not be limited only to binding a party to its provisions but shall also cover whatever is required by law, customary practice and justice in accordance with the nature of the obligations contained in the contract.
    6/30/2004

  • 50 Article (Repealed)

    If a person promised to make another person commit to an obligation, he shall not oblige the other but bound himself by such obligation,. And he shall be liable to indemnify the other contracting party if the third party rejects the performance of the obligation, And he may released from  the indemnity by fulfilling the obligation himself if he can without causing any damage to the other contracting party.
    6/30/2004

  • 51 Article (Repealed)

    The person may contract on his own behalf on obligations stipulated in favor of the third party, provided that such person has a material or moral personal interest in such obligations. In the event of such a stipulation, the beneficiary has a personal direct right to be demanded and may call upon the contracting party to do so.
    Unless otherwise agreed.
    Stipulating party may demand the other contracting party to confer the relevant right on the beneficiary, unless the contract indicates that such a demand is limited to the beneficiary.
    6/30/2004

  • 52 Article (Repealed)

    The stipulating party, but not his creditor or heir, may revoke the stipulation before the beneficiary notifies the stipulator or the undertaking party of his intention to revoke such stipulation, unless the revocation was contrary to the spirit of the contract.
    Upon revocation of such stipulation, the obligor shall not be discharged from liability but shall remain obliged towards the stipulating party, unless expressly or inclusively agreed otherwise; the stipulator may substitute a new beneficiary for the former beneficiary, or may retain for him the benefit of the stipulation.
    6/30/2004

  • 53 Article (Repealed)

    In stipulation in favor of the third party, the beneficiary may be a receiving person or receiving party, and may be a person or a party that not be appointed especially at the time of conclusion of the contract, as long as the appointment shall be possible when the contract produce its effect.
    6/30/2004

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