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Main Page / Legislations / Law No. 16 of 1971 issuing the Law of Civil and Commercial Articles / Chapter Two: Satisfaction of Obligation by Valuable Consideration / Subchapter III: Set-off
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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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Subchapter III: Set-off

  • 175 Article (Repealed)

    In case creditor accepts a substitution against his rights, this acceptance shall be considered as fulfilment.   
    6/30/2004

  • 176 Article (Repealed)

    Rules/ provisions of sales (especially for what concern eligibility of the contracting persons, guarantees of fulfilment and simple defects) are also valid for fulfilment against exchange (in return of) with respect to transfer of ownership of the thing given connected to the debt.
     Also provisions of fulfilment are also valid for fulfilment against exchange (in return of) with respect to debt repayment and in particular what concern appointment (of things).
    6/30/2004

  • 177 Article (Repealed)

    Obligation may be renewed by an agreement of both parties provided to replace the original obligation with new one which is different in place and source
    6/30/2004

  • 178 Article (Repealed)

    Obligation may also be renewed by replacing the creditor (in case creditor and debtor agree with a third person who is decided to be the new creditor). Obligation may also be renewed if agreed by the creditor and a third party to have this third party in place of the principal debtor provided to discharge the later even without his acceptance. Obligation may also be renewed in case a third party agrees to be the new debtor provided old debtor gets authorization from the creditor upon the same.
    6/30/2004

  • 179 Article (Repealed)

    In case of renewing the obligation, the new obligation shall supersede the original one.
    6/30/2004

  • 180 Article (Repealed)

    Replacement is valid in case debtor gets acceptance of the creditor to have a third party repay the debt on behalf of him.
    Replacement, however, does not require presence of a previous indebtedness between the debtor and the third party.
    6/30/2004

  • 181 Article (Repealed)

    Clearing means to drop a debt required by a person from his debtor against debt required from that person to his debtor.
    6/30/2004

  • 182 Article (Repealed)

    Clearing can be mandatory (by force of the law) or optional (amicably by both parties; creditors and debtors).  
    Mandatory clearing is applied when the two debts are unified (i.e. of the same sort, description, place, strength and weakness) which is not conditional in the optional clearing. While, in case the two debts are different and vary (in description or deferred or one of them is due and the other is delayed or one is strong and the other is weak), they can not be compromised by clearing unless both parties accept such compromise (whether they have united or different reason).
    6/30/2004

  • 183 Article (Repealed)

    If the depositor (owner of the deposit) is indebted to the trustee (with whom the deposit is kept) and the deposit together with the debt are of the same kind OR in case the owner of the usurped property (thing) is indebted to the usurper of the same kind of debt, the deposit or the usurped property (thing) can not be considered in clearing of the debt, unless clearing is furnished amicably by both parties.  
    6/30/2004

  • 184 Article (Repealed)

    In case of spoiling something from debtor's property (thing) and such spoiled thing is of the same kind, clearing shall be applied but if the spoiled property is different, clearing can not be effected except after mutual acceptance of both parties.
    6/30/2004

  • 185 Article (Repealed)

    Clearing may occur for the lesser amount of the two debts and it can not occur unless benefiter clings to it.
    6/30/2004

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