SPECIFIC CONTRACTS

 

TITLE I

SALE

 

CHAPTER I

NATURE AND ESSENTIALS OF THE CONTRACT OF SALE

 

PART I

General Provisions

 

Section 453

Sale is a contract whereby a person, called the seller, transfers to another person, called the

buyer, the ownership of property, and the buyer agrees to pay to the seller a price for it.

Section 454

A previous promise of sale made by one party has the effect of a sale only when the other

party has given notice of his intention to complete the sale and such notice has reached the

person who made the promise.

If no time has been fixed in the promise for such notification, the person who made the

promise may fix a reasonable time and notify the other party to give a definite answer within

that time whether he will complete the sale or not. If within that time he does not give a

definite answer, the previous promise loses its effect.

Section 455

The time of the completion of the contract of sale is referred to hereafter as the time of sale.

Section 456

A sale of immovable property is void unless it is made in writing and registered by the

competent official. The same rule applies to ships or vessels of six tons and over, to steam

launches or motor boats of five tons and over, to floating houses and to beasts of burden.

An agreement to sell or to buy any of the aforesaid property, or a promise of sale of such

property is not enforceable by action unless there is some written evidence signed by the

party liable or unless earnest is given, or there is part performance.

The provisions of the foregoing paragraph shall be applied to a contract of sale of movable

property where the agreed price is five hundred baht or upwards.

Section 457

The costs of a contract of sale are borne by both parties equally.

PART II

Transfer of Ownership

 

Section 458

The ownership of the property sold is transferred to the buyer from the moment when the

contract of sale is entered into.

Section 459

If a contract of sale is subject to a condition or to a time clause', the ownership of the

property is not transferred until the condition is fulfilled, or the time has arrived.

Section 460

In case of sale of unascertained property, the ownership is not transferred until the property

has been numbered, counted, weighed, measured or selected, or its identity has been

otherwise rendered certain.

In case of sale of specific property, if the seller is bound to count, weigh, and measure or do

some other act or thing with reference to the property for the purpose of ascertaining the

price, the ownership is not .transferred to the buyer until such act or thing be done.

CHAPTER II

DUTIES AND LIABILITIES OF THE SELLER

 

PART I

Delivery

 

Section 461

The seller is bound to deliver to the buyer the property sold.

Section 462

Delivery may be made by doing anything which has the effect of putting the property at the

disposal of the buyer.

Section 463

If the contract provides that the property sold shall be sent from one place to another,

delivery takes place at the moment when the property is delivered to the carrier.

Section 464

The costs of transportation of the property sold to a place other than the place of performance

are to be borne by the buyer.

Section 465

In a sale of movable property:

(1) Where the seller delivers the property less than he contracted for, the buyer may

reject it; but if the buyer accepts it, he must pay the proportionate price.

(2) Where the seller delivers the property more than he contracted for, the buyer may

accept the property according to the contract and reject the rest, or he may reject the

whole. If the buyer accepts the whole of the property so delivered, he must pay the

proportionate price.

(3) Where the seller delivers the property he contracted for mixed with the property of a

different description not included in the contract, the buyer may accept the property

according to the contract and reject the rest, or he may reject the whole.

Section 466

In a sale of immovable property where the total area is specified and the seller delivers the

property less or more than he contracted for, the buyer has the option either to reject or

accept it and pay the proportionate price.

If the deficiency or excess does not exceed five per cent of the total area so specified the

buyer is bound to accept it and pay the proportionate price, provided that the buyer can

rescind the contract if the deficiency or excess is such that had he known of it he would not

have entered into the contract.

Section 467

No action for liability on account of deficiency or excess can be entered later than one year

after delivery.

Section 468

When there is no time clause for payment of the price, the seller is entitled to retain the

property sold until the price is paid.

Section 469

Even though there is a time clause for payment, if the buyer becomes bankrupt before

delivery, or was bankrupt at the time of sale without the knowledge of the seller, or impairs or

reduces security given for payment, the seller is entitled to retain the property sold, unless

the buyer gives proper security.

Section 470

When the buyer is in default, the seller who retains the property under the foregoing Sections

can, instead of using the ordinary remedies for nonperformance, notify the buyer in writing to

pay the price and incidental charges, within a reasonable time to be fixed in the notice.

If the buyer fails to comply with the notice, the seller can sell the property by public auction.

Section 471

The seller shall deduct from the net proceeds of the public auction what is due to him for the

price and incidental charges and deliver forthwith any surplus to the buyer.

PART II

Liability for Defect

 

Section 472

In case of any defect in the property sold which impairs either its value or its fitness for

ordinary purposes, or for the purposes of the contract, the seller is liable.

The foregoing provision applies whether the seller knew or did not know of the existence of

the defect.

Section 473

The seller is not liable in the following cases:

(1) If the buyer knew of the defect at the time of sale, or would have known of it if he had

exercised such care as might be expected from a person of ordinary prudence.

(2) If the defect was apparent at the time of the delivery, and the buyer accepts the

property without reservation.

(3) If the property was sold by public auction.

Section 474

No action for liability for defect can be entered later than one year after the discovery of the

defect.

PART III

Liability for Eviction

 

Section 475

The seller is liable for the consequences of any disturbance caused to the peaceful possession

of the buyer by any person having over the property sold a right existing at the time of sale or

by the fault of the seller.

Section 476

The seller is not liable for a disturbance caused by a person whose rights were known to the

buyer at the time of sale.

Section 477

In any case of disturbance where an action arises between the buyer and a third person, the

buyer is entitled to summon the seller to appear in the action to be joint defendant or joint

plaintiff with the buyer, in order to enable the Court to settle disputes between all the parties

to them in one action.

Section 478

The seller is also entitled; if he thinks proper, to intervene in the action in order to deny the

claim of the third person.

Section 479

The seller is liable if, by reason of eviction, the buyer is deprived of the whole or part of the

property sold or if the property is subject to a right, the existence of which impairs its value,

fitness, use or benefit and of which the buyer had no knowledge at the time of sale.

Section 480

If an immovable property is declared to be subject to a servitude established by law, the seller

is not liable unless he has expressly guaranteed that the property was free from servitudes, or

from that particular servitude.

Section 481

If the seller was not a party to the original action, or if the buyer has made a compromise with

the third person, or has yielded to his claim, no action for liability on account of eviction can

be entered later than three months after final judgment in the original action, or after the date

of the compromise, or of the yielding to the third person.

Section 482

The seller is not liable for eviction in the following cases:

(1) If no action was entered, and the seller proves that the rights of the buyer were lost

on account of the fault of the buyer, or

(2) If the buyer did not summon the seller to appear in the action, and the seller proves

that he would have succeeded in the action if summoned to appear, or

(3) If the seller appeared in the action, but the claim of the buyer was dismissed on

account of the fault of the buyer.

In any case the seller is liable whenever he is summoned to appear in the action and refuses

to take the part of the buyer as joint defendant or joint plaintiff.

PART IV

Clause for NonLiability

 

Section 483

The parties to a contract of sale may agree that the seller shall not incur any liability for

defects or eviction.

Section 484

Unless the nonliability clause specifies otherwise, such clause does not exempt the seller

from the repayment of the price.

 

Section 485

A nonliability clause cannot exempt the seller from the consequences of his own acts or of

facts which he knew and concealed.

CHAPTER III

DUTIES OF THE BUYER

 

Section 486

The buyer is bound to take delivery of the property sold and to pay the price in accordance

with the terms of the contract of sale.

Section 487

The price of the property sold may be fixed by the contract, or may be left to be fixed in

manner thereby agreed, or may be determined by the course of dealing between the parties.

When the price is not determined as aforesaid, the buyer must pay a reasonable price.

Section 488

If the buyer has discovered defects in the property sold, he is entitled to withhold the price or

part of it still unpaid, unless the seller gives proper security.

Section 489

The buyer is also entitled to withhold the price wholly or partly, if he is threatened, or has

good reason to believe that he is about to be threatened, with an action by a mortgagee or by

a person claiming the property sold, until the seller has caused the danger with which he is

threatened to cease, or until the seller has given proper security.

Section 490

If a time is fixed for the delivery of the property sold, it is presumed that the same time is

fixed for the payment of the price.

CHAPTER IV

SOME PARTICULAR KINDS OF SALES

 

PART I

Sale with Right of Redemption

 

Section 491

Sale with right of redemption is a contract of sale whereby the ownership of the property sold

passes to the buyer subject to an agreement that the seller can redeem that property.

 

Section 492

Where the property sold is redeemed within the period fixed by the contract or by law, or

where the person who redeems deposits the price of redemption to a deposit office within the

period by waiving the right to withdraw the price, the ownership of the property shall be

vested in the person who redeems from the time of payment or deposit of the price, as the

case may be.

In the case of deposit under paragraph one, an official of the deposit office shall immediately

give notice of it to the redeemed person, whereby the person who redeems does not have to

comply with Section 333 paragraph three.

Section 493

The parties may agree that the buyer shall not dispose of the property sold. If he disposes of

it contrary to his agreement, he shall be liable to the seller for any injury resulting thereby.

Section 494

The right of redemption cannot be exercised later than:

(1) Ten years after the time of the sale in case of immovable property.

(2) Three years after the time of sale in case of movable property.

Section 495

If a longer period is provided in the contract, it shall be reduced to ten years and three years

respectively.

Section 496

The period of redemption may be afterward extended by a contract, but if the total period is in

excess of the period under Section 494, it shall be reduced to the period under Section 494.

The extension of the period under paragraph one must, at least, have some written evidence

signed by the redeemed person. In case of the property whose sale must be made in writing

and registered by the competent official, the extension can not be set up against a third

person who has, for value and in good faith, acquired and registered his right unless such

writing or written evidence is registered or recorded by the competent official.

Section 497

The right of redemption may be exercised only by:

(1) The original seller or his heirs, or

(2) The transferee of the right, or

(3) Any person expressly allowed redeeming by a contract.

Section 498

The right of redemption may be exercised only against:

(1) The original buyer

(2) The transferee of the property or of a right on the property, provided that, in case of

movable property, he knew at the time of the transfer that such property was subject

to a right of redemption.

Section 499

If no price of redemption id fixed, the property may be redeemed by reimbursing the price of

the sale.

If the price of redemption or the price of the sale, at the time of redemption, is higher than

the real price of the sale more than fifteen percent per year, it shall be redeemed at a real

price including fifteen percent per year of profit.

Section 500

Costs of the sale borne by the buyer must be reimbursed together with the price.

Costs of redemption are borne by the person who redeems.

Section 501

The property must be returned in the condition in which it is at the time of redemption,

provided that if the property has been destroyed or deteriorated through the fault of the buyer

he must pay compensation therefore.

Section 502

The person who redeems the property recovers it free from any rights created by the original

buyer or his heirs or transferee before redemption.

If a hire of property held subject to a right of redemption is registered by the competent

official, it shall be valid for not more than one year of its remaining duration, provided that it

is not made for the purpose of injuring the seller.

PART II

Sale by Sample; Sale by Description; Sale on Approval

 

Section 503

In a sale by sample, the seller is bound to deliver property or properties corresponding to the

sample.

In a sale by description, the seller is bound to deliver property corresponding to the

description.

Section 504

No action for liability on account of noncorrespondence to the sample or description can be

entered later than one year after delivery.

Section 505

A sale on approval is the selling contract that the buyer having an option to buy when

verifying the buying property.

Section 506

To verify the property, if there is no buying deadline, the seller may specify the reasonable

deadline period and give a notice to the buyer to accept or reject the buying or not.

Section 507

The property that the buyer having option to verify before delivery, if the buyer does not

accept it within the deadline stated in the contract or commercial practice or deadline setting

by the seller, the selling contract is unbound.

Section 508

When the property is delivered to the buyer for verifying, the selling and the buying shall be

absolutely completed in the following cases:

(1) If the buyer does not reject the purchasing within deadline specified in the contract or

by commercial practice or setting by the seller; or

(2) If the buyer does not return the property to the seller within the said deadline; or

(3) If the buyer fully uses all the property or in some parts; or

(4) If the buyer sells the property or makes any buying signals.

Section 509

The auction shall be completed when the auctioneer accepts the final price by knocking the

wood hammer or any practical acts in auction; otherwise the bidder can withdraw his bid in

anytime.

Section 510

During bidding process, the bidder must comply with the bidding procedure that the

auctioneer has announced in each bidding.

Section 511

The auctioneer cannot make a bid or let any person to make a bid for his own benefit that he

is control the bidding process.

Section 512

The seller cannot make a bid or let any person to make a bid, except specified in the bidding

terms and conditions that the seller has the right to bid.

Section 513

If the auctioneer thinks that the bidding price is not high enough, he may withdraw the said

property auction.

Section 514

The bidder shall be unbound from his bid when other person offers a higher bidding price,

even though the said bidding is complete or not, or when the auctioneer withdraws the said

property auction.

Section 515

Bidder who offers the highest bidding price must pay in cash when the auction is complete or

the deadline specified in the bidding advertising.

Section 516

If the bidder who offers the highest bidding price does not pay the money, the auctioneer may

renew the auction. If the renew bidding price is lower than the previous one, such default

bidder must liable for the short.

Section 517

If some or all of the proceed from auction is unpaid that the cause comes from the ignorance

of the auctioneer under Section 515 or Section 516, the auctioneer has to liable for the unpaid

amount.

TITLE II

EXCHANGE

 

Section 518

Exchange is the contract that both parties transfer the right of ownership to each other.

Section 519

In any provisions of the laws relating to the selling and buying, the exchange is also included

in such provision by implying that both parties are seller and buyer for such transfer of such

properties.

Section 520

If any exchanging party accepts to add money with the exchange of property to anther, the

selling price shall include such additional cash payment too.

TITLE III

GIFT

 

Section 521

A gift is a contract whereby a person, called the donor, transfers gratuitously a property of his

own to another person, called the donee, and the donee accepts such property.

Section 522

A gift may be made by granting to the donee the release of an obligation or by performing an

obligation due from the donee.

Section 523

A gift is valid only on delivery of the property given.

Section 524

If a right represented by a written instrument is given, the gift is not valid unless such

instrument is delivered to the donee and the gift is notified in writing to the debtor of the

right.

Section 525

The gift of a property the sale of which must be made in writing and registered by such

competent official is valid only when so made and registered by the competent official. In such

case it is valid without delivery.

Section 526

If a gift or a promise for a gift has been made in writing and registered by the competent

official and the donor does not deliver to the donee the property given, the donee is entitled

to claim the delivery of it or its value, but he is not entitled to any additional compensation.

Section 527

If a donor binds himself to make periodical performance the obligation is extinguished on the

death either of the donor or the donee unless a contrary intention appears from the

obligation.

Section 528

If the gift is encumbered with a charge and the donee fails to perform the charge, the donor

may, under the conditions specified for the right of rescission in the case of reciprocal

contracts, demand the return of the gift under the provisions relating to the return of undue

enrichment in so far as the gift ought to have been applied to the performance of the change.

This claim is barred if a third party is entitled to require the performance of the charge.

Section 529

If the property given is not sufficient to satisfy the charge, the donee has to perform only to

the extent of the value of the property.

Section 530

If the gift encumbered with a charge, the donor is liable for defect or eviction in the same

manner as the seller but only to the extent of the charge.

Section 531

The donor can claim revocation of a gift for an act of ingratitude only in the following cases.

(1) If the donee committed a serious criminal offence punishable under the Penal Code

against the donor, or

(2) If the donee seriously defamed or insulted the donor, or

(3) If the donee refused the donor who is in need of the necessaries of life while he was

able to supply them.

Section 532

The heir of the donor can claim revocation only if the donee has intentionally and unlawfully

killed the donor or prevented him from revoking the gift.

However, the heir may continue an action which has been duly entered by the donor.

Section 533

A gift cannot be revoked if the donor has forgiven the donee, or if six months have elapsed

since the time when the act of ingratitude came to knowledge of the person entitled to claim

revocation.

No action can be claimed later than ten years after such act.

Section 534

If the gift is revoked, the property shall be returned under the provisions of this Code

concerning Undue Enrichment.

Section 535

The following gifts are not revocable for ingratitude:

(1) Gifts purely remunerator

(2) Gifts encumbered with a charge

(3) Gifts made in compliance with a moral duty

(4) Gifts made in consideration of marriage

Section 536

A gift to take effect at the death of the donor is governed by the provisions of Law concerning

Inheritance and Wills.

TITLE IV

HIRE OF PROPERTY

 

Chapter I

General provisions

 

Section 537

A hire of property is a contract whereby a person, called the letter, agrees to let another

person, called the hirer, have the use or benefit of a property for a limited period of time and

the hirer agrees to pay rent therefore.

Section 538

A hire of immovable property is not enforceable by action unless there be some written

evidence signed by the party liable. If the hire is for more than three years or for the life of

the letter or hirer, it is enforceable only for three years unless it is made in writing and

registered by the competent official.

Section 539

Costs of a contract of hire are borne by both parties equally.

Section 540

The duration of a hire of immovable property cannot exceed thirty years. If it is made for a

longer period, such period shall be reduced to thirty years. The aforesaid period may be

renewed, but it must not exceed thirty years from the time of renewal.

Section 541

Contract of hire may be made for the duration of the life of the letter or of the hirer

Section 542

When several persons claim the same movable property under different contracts of hire, the

hirer who has first taken possession of the property by virtue of his contract shall be

preferred.

Section 543

When several persons claim the same immovable property under different contracts of hire:

(1) If none of the contracts is required by law to be registered, the hirer who has first

taken possession of the property by virtue of his contract shall be preferred.

(2) If all the contracts are required by law to be registered, the hirer whose contract was

first registered shall be preferred.

(3) If there is a conflict between a contract which is required by law, and a contract which

is not required by law, to be registered, the hirer whose contract has been registered

shall be preferred, unless the other hirer has taken possession of the property by

virtue of his contract before the date of registration.

Section 544

Unless otherwise provided by the contract of hire, a hirer cannot sublet or transfer his rights

in the whole or part of the property hired to a third person.

Section 545

If the hirer rightfully sublets the property hired, the subhirer is directly liable to the letter. In

such case a payment of rent made in advance by the subhirer to the hirer who sublets cannot

be set up against the letter.

The provision does not prevent the letter from exercising his rights against the hirer.

Chapter II

Duties and liabilities of the letter

 

Section 546

The letter is bound to deliver the property hired in a good state of repair.

Section 547

The letter is bound to reimburse to the hirer any necessary and reasonable expenses incurred

by him for the preservation of the property hired, except expenses for ordinary maintenance

and petty repairs.

Section 548

In case of delivery of the property hired in a condition not suitable for the purpose for which it

is let, the hirer may terminate the contract.

Section 549

The delivery of the property hired the liability of the letter in case of defects and eviction and

the effects of a nonliability clause are governed by the provisions of this Code concerning sale

mutatis mutandis.

Section 550

The letter is liable for any defects which arise during the continuance of the contract and he

must make all the repairs which may become necessary, except those which are by law or

custom to be done by the hirer.

Section 551

If the defect is not such as would deprive the hirer of the use and benefit of the property

hired, and can be remedied by the letter, the hirer must first notify the letter to make it good.

If the defect is not made good within a reasonable time, the hirer may terminate the contract

provided the defect is serious enough to justify this course.

Chapter III

Duties and liabilities of the hirer

 

Section 552

The hirer cannot use the property hired for the purpose other than those which are ordinary

and usual, or which have been provided in the contract.

Section 553

The hirer is bound to take as much care of the property hired as a person of ordinary

prudence would take of his own property, and to do ordinary maintenance and petty repairs.

Section 554

If the hirer act contrary to the provision of Section 552 and Section 553 or contrary to the

terms of the contract, the letter may notify the hirer to comply with such provisions or terms,

and if the hirer fails to comply, the letter may terminate the contract.

Section 555

The hirer is bound to allow the letter or his agents to inspect the property hired at reasonable

times.

Section 556

If the property hired requires urgent repairs during the continuance of the contract, and if the

letter desires to do an act necessary for such repairs, the hirer cannot refuse permission to

have such act done, though it may cause him inconvenience.

However, if the repairs are of such nature as would take unreasonable length of time and

thereby cause the property unsuitable for the purpose for which it is let, the hirer may

terminate the contract.

Section 557

In any of the following cases:

 If the property hired is in need of repairs by the letter, or

 If a preventive measure is required for avoiding a danger, or

 If a third person encroaches on the property hired or claims a right over it, the hirer

shall forthwith inform the letter of occurrence, unless the letter already has

knowledge of it.

If the hirer fails to comply with this provision, he is liable to the letter for any injury resulting

from the delay occasioned by such failure.

Section 558

The hirer may not make alterations in, or addition to, the property hired without the

permission of the letter. If he does so without such permission, he must, on request of the

letter, restore the property to its former condition, and he is liable to the letter for any loss or

damage that may result from such alteration or addition

Section 559

If no time for payment of rent is fixed by the contract or by custom, the rent must be paid at

the end of each period for which it is stipulated, that is to say: if a property is hired at so

much per year, the rent is payable at the end of each year, if a property is hired at so much

per month, the rent is payable at the end of each month.

Section 560

In case of nonpayment of rent, the letter may terminate the contract. But, if the rent is

payable at monthly or longer intervals, the letter must first notify the hirer that payment is

required within a period not less than fifteen days.

Section 561

If no written description of the condition of the property hired has been made and signed by

both parties, the hirer is presumed to have received the property in good state of repair and

he must return the property in such condition at the termination or extinction of the contract,

unless he can prove that it was out of repair at the time of delivery.

Section 562

The hirer is liable for any loss or damage caused to the property hired by his own fault or by

the fault of persons living with him or being his subhirer, but he is not liable for loss or

damage resulting from proper use.

Section 563

No action by the letter against the hirer in connection with the contract of hire can be entered

later than six months after the return of the property hired.

Chapter IV

Extinction of Contract of Hire

 

Section 564

A contract of hire is extinguished at the end of the agreed period without notice.

Section 565

A hire of garden land is presumed to be made for one year.

A hire of paddy land is presumed to be made for the agricultural year.

Section 566

If no period is agreed upon or presumed, either party may terminate the contract of hire at

the end of each period for the payment of rent, provided that notice of at least one rent period

is given, but no more than two months notice need be given.

Section 567

If the whole of the property hired is lost, the contract is extinguished.

Section 568

If part only of the property hired is lost without the fault of the hirer, he may claim that the

rent be reduced in portion to the part lost.

If in such case the hirer cannot with the remaining part accomplish the purpose for which he

entered the contract of hire, he may terminate.

Section 569

A contract of hire of immovable property is not extinguished by the transfer of ownership of

the property hired.

The transferee is entitled to the rights and is subjected to the duties of the transferor towards

the hirer.

Section 570

If, at the end of the agreed period, the hirer remains in possession of the property and the

lesser knowing thereof does not object, the parties are deemed to have renewed the contract

for an indefinite period.

Section 571

If a contract of hire of paddy land is terminated or extinguished after the hirer has planted the

paddy, the hirer is entitled to remain in the possession till the harvest is finished, but he must

pay rent.

TITLE V

HIREPURCHASE

 

Section 572

A hirepurchase is a contract whereby an owner of a property lets it out on hire and promises

to sell it to, or that it shall become the property of, the hirer, conditionally on his making a

certain number of payments.

The contract of hirepurchase is void unless made in writing.

Section 573

The hirer may at any time terminate the contract by redelivering the property at his own

expense to the owner.

Section 574

The owner may also terminate the contract in case of default of two successive payments, or

breach of any material part of the contract; in which case all previous payments are forfeited

to the owner who is entitled to resume possession of the property.

In case of breach of contract by default of the last payment, the owner is entitled to forfeit

previous payment and resume possession of the property only after the expiration of one

installment period.

 

 

TITLE VI

HIRE OF SERVICES

 

Section 575

A hire of services is a contract whereby a person, called the employee, agrees to render

services to another person, called the employer, who agrees to pay remuneration for the

duration of the services.

Section 576

The promise to pay a remuneration is implied, if, under the circumstances if cannot be

expected that the services are to be rendered gratuitously.

Section 577

The employer may transfer his right to a third person with the consent of the employee.

The employee may have a third person render the services in his place with the consent of the

employer.

If either party acts contrary to this provision, the other party may terminate the contract.

Section 578

If the employee either expressly or impliedly warrants special skill on his part, the absence of

such skill entitles the employer to terminate the contract.

Section 579

Absence of the employee from service for a reasonable cause and during a reasonably short

period does not entitle the employer to terminate the contract.

Section 580

If no time for payment of remuneration is fixed by the contract or by custom, the

remuneration is payable after the services have been rendered; if fixed by periods, the

remuneration is payable at the end of each period.

Section 581

If after the end of the agreed period the employee continues to render services and the

employer knowing thereof does not object, the parties are presumed to have made a new

contract of hire on the same terms, but either party can terminate the contract by giving

notice in accordance with the following Section.

Section 582

If the parties have not fixed the duration of the contract, either party can terminate it by

giving notice at or before any time of payment to take effect at the following time of payment.

But no more than threemonth notice need be given.

The employer can, on giving such notice, immediately dispense with the services of the

employee by paying him his remuneration up to the expiration of the notice.

Section 583

If the employee willfully disobeys or habitually neglects the lawful commands of his employer,

absents himself for services, is guilty of gross misconduct, or otherwise acts in a manner

incompatible with the due and faithful discharge of his duty, he may be dismissed by the

employer without notice or compensation.

Section 584

If a hire of services is one in which the personality of the employer forms an essential part

such contract is extinguished by the death of the employer.

Section 585

If a hire of services comes to an end, the employee is entitled to a certificate as to the length

and nature of his services.

Section 586

If the employee has been brought from elsewhere at the expense of the employer, the

employer is bound, when the hire of service comes to an end, unless otherwise provided in

the contract, to pay the cost of the return journey, provided that:

(1) The contract has not been terminated or extinguished by reason of the act or fault of

the employee, and

(2) The employee returns within a reasonable time to the place from which he has been

brought.

TITLE VII

HIRE OF WORK

 

Section 587

The hire of work is a contract whereby a person, called contractor, agrees to accomplish a

definite work for another person, called employer, who agrees to pay him a remuneration of

the result of the work.

Section 588

Tools or instruments which are necessary for the execution of the work are to be supplied by

the contractor.

Section 589

If the materials for the work are to be supplied by the contractor, the contractor shall supply

material in good quality.

Section 590

If the materials are to be supplied by the employer, the contractor shall use them carefully

and without waste. He shall return the surplus after work is completed.

Section 591

If the defect or the delay of the work originates from the nature of the material supplied by

the employer, or from instruction given by him, the contractor is not liable, unless the

contractor knew of the unfitness of the materials or the impropriety of instructions, and did

not give notice of it.

Section 592

The contractor is bound to allow the employer or his agents to inspect the work during its

execution.

Section 593

If the contractor does not begin to work in a proper time or delays in proceeding with it

contrary to the terms of the contract, or if, without the fault of the employer, he delays to

proceed with it in a such a manner that it can be foreseen that the work will not be finished

within the agreed period. The employer is entitled to cancel the contract without waiting for

the time agreed upon for delivery.

Section 594

When it is possible to foresee with certainty, whilst the work is proceeding, that by the fault of

the contractor, the work will be executed in a defective manner or contrary to the terms of the

contract, the employer may notify the contractor to make good the defect or to comply with

the terms of the contract within a reasonable time to be fixed in the notice, failing which the

employer is entitled to have the work repaired or continued by a third person at the risks and

expenses of the contractor.

Section 595

If the materials have been supplied by the contractor, his liability for defects is governed by

the provisions of this code concerning sale.

Section 596

If the work is delivered after the time fixed in the contract, or if no time was fixed, after

reasonable time has elapsed, the employer is entitled to a reduction of remuneration or when

time is of the essence of the contract to rescission.

Section 597

If the employer has accepted the work without reservation, the contractor is not liable for the

delay in delivery.

Section 598

If the employer has accepted a defective work either expressly or impliedly, the contractor is

not liable unless the defect was such as could not be discovered when the work was accepted,

or it had been concealed by the contractor.

Section 599

In case of delay in delivery or of delivery of a defective work, the employer is entitled to

withhold the remuneration unless the contractor gives proper security.

Section 600

Unless otherwise provided in the contract, the contractor is only liable for defect appearing

within one year after delivery of the work, or within five years if the work is for a structure on

land other than a wooden building.

This limitation shall not apply if the contractor has concealed the defect.

Section 601

No action against the contractor can be entered later than one year after the defect appeared.

Section 602

The remuneration is payable on taking delivery of the work.

If the work is to be accepted in parts and the remuneration has been specified for the several

parts, the remuneration for each part is payable at the time of its acceptance.

Section 603

If the materials have been supplied by the contractor, and the work is destroyed or damaged

before due delivery, the contractor bears the loss provided that such loss is not caused by any

act of the employer.

In such case no remuneration is payable.

Section 604

If the materials have been supplied by the employer and the work is destroyed or damaged

before due delivery, the employer bears the loss provided that such loss is caused by any act

of the contractor.

In such case, no remuneration is payable unless the loss is caused by any act of the

employer.

Section 605

As long as the work is not finished, the employer can terminate the contract on making

compensation to the contractor for any injury resulting from the termination of the contract.

Section 606

If the personal qualification of the contractor is of the essence of the contract and the

contractor dies, or without his fault becomes incapable to carry on the work the contract

comes to an end.

If any part of the work already done is useful to the employer, he is bound to accept it and

pay a reasonable remuneration.

Section 607

The contractor may appoint subcontractor to work for him in all or in part, except in the

major part of contract that required the ability of the contractor. The contractor is still

responsible for the work and any mistake of the subcontractor.