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A possessor is presumed to possess in good faith, peacefully, and in public, but is not presumed to have intention to own.

Article 186 (1) A possessor is presumed to possess a thing with the intention to own, in good faith peacefully and openly. (2) If there is evidence of possession at two different points in time, it is presumed that possession continued during that interval..

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..

If a holder of a right of retention incurs necessary expenses with respect to the Thing related, he or she can have the owner reimburse the same.C. A mandatary can demand the mandator the day after the completion of the mandate for reimbursement of fees paid that were recognized as necessary expenses for the administration of the mandated business.

Article 299 (1) If the holder of a right of retention incurs necessary expenses with respect to the thing retained, that holder may have the owner reimburse the same. (2) If the holder of a right of retention incurs beneficial expenses with respect to the thing retained, to the extent that there is currently an increase in value as a result of the same, that holder may have the expenses incurred or the increase in value reimbursed at the owner's choice;provided, however, that the court may, at the request of the owner, grant a reasonable period of time for the reimbursement of the same..

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..

If borne obligations are deemed to be necessary for the retention of a deposited thing, the depositary can demand that the depositor perform the obligation on the depositary's behalf. In such cases, if the obligation has not yet fallen due, the depositary can require the depositor to tender reasonable security.

Article 665 The provisions of Articles 646 through 648, Article 649, and Article 650, paragraphs (1) and (2) apply mutatis mutandis to bailments. 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 415 (1) If an obligor fails to perform consistent with the purpose of the obligation or the performance of an obligation is impossible, the obligee may claim compensation for loss or damage arising from the failure; provided, however, that this does not apply if the failure to perform the obligation is due to grounds not attributable to the obligor in light of the contract or other sources of obligation and the common sense in the transaction. Article 561 If the subject matter of a sale is another person's right (including a part of a right that belongs to another person), the seller bears an obligation to acquire the right and transfer it to the buyer.

The contents of performance that can be refused based on rights of retention are the delivery of the thing, but the contents of performance that can be refused based on rights of defense of simultaneous performance are not limited to the delivery of the thing.

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 533 A party to a bilateral contract may refuse to perform that party's own obligation until the other party tenders the performance of that other party's obligation (including the performance of an obligation to compensate for loss or damage in lieu of the performance of an obligation);provided, however, that this does not apply if the obligation of the other party is not yet due..

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..

A person who is being exercised rights of retention can demand that the right be extinguished by tendering reasonable security, but a person who is being exercised rights of defense for simultaneous performance cannot demand that the right be extinguished by tendering reasonable security.

Article 301 An obligor may demand that a right of retention be terminated by providing a reasonable security. Article 533 A party to a bilateral contract may refuse to perform that party's own obligation until the other party tenders the performance of that other party's obligation (including the performance of an obligation to compensate for loss or damage in lieu of the performance of an obligation);provided, however, that this does not apply if the obligation of the other party is not yet due..

Article 519 If an obligee manifests the intention to release an obligor from an obligation to that obligor, the obligee's claim is extinguished..

In cases of pledges over nominative claims, if there is an instrument for the claim, the pledge establishment does not take effect unless the instrument is delivered.

Article 364 The creation of a pledge over a claim (including a pledge over a claim which has not yet arisen) may not be duly asserted against a third party obligor and other third parties unless notice of the creation of the pledge is given to that third party obligor in accordance with the provisions of Article 467, or unless that third party obligors gives consent to the same..

Article 176 The creation and transfer of a real right becomes effective solely by the manifestations of intention of the parties. 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..

The pledgee of claim X that is a nominative claim can directly collect claim X if the time of performance of the secured claim arrives along with the time of performance for the claim X that is the subject matter of the pledge.

Article 366 (1) A pledgee may directly collect the claim that is the subject matter of the pledge. (2) If monies are the subject matter of a pledged claim, the pledgee may collect the same to the extent of the portion that corresponds to the amount of the pledgee's own claim. (3) If the due date of the pledged claim referred to in the preceding paragraph arrives prior to the due date of the claim of the pledgee, the pledgee may have the third party obligor deposit with official depository that amount to be paid to the pledgee.In this case, the pledge exists over the amount so deposited. (4) If the subject matter of the pledged claim is not monies, the pledgee has the pledge over the thing received for the satisfaction of the claim..

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..

If the obligor of a monetary debt cannot pay on the time of performance due to force majeure, the obligor of the monetary debt does not bear responsibility of delay in performance.

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 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..

Until the principal obligor offsets with a possessed claim, the guarantor cannot raise a defense vis-a-vis the obligee by setting off any claim.

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 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.

In cases where, after jointly borrowing 1,000,000 yen from two money lenders one of the jointly and several obligors rescinds the contract for reasons that he or she is an adult ward, the other jointly and several obligors is revoked of the portion of the obligation of the adult ward.

Article 437 Even if there are grounds for the invalidity or rescission of a juridical act with respect to one of the joint and several obligors, the validity of the obligation of other joint and several obligor is not impaired..

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..

A bearer of a receipt, regardless of the subjective conditions of the performer regarding that person's authority, is deemed to have the authority to accept performance.

Article 478 Performance made to a person that does not constitute a person authorized to accept the performance (meaning the obligee or a third party authorized to accept performance based on the provisions of laws and regulations or the manifestation of intention of the parties; the same applies hereinafter) but that appears to be the person authorized to accept the performance in light of common sense in the transaction is effective only if the person effecting performance was acting in good faith and without negligence..

Article 242 The owner of immovables acquires ownership of a thing that has been attached thereto as its appurtenance;provided, however, that the rights of the other person that attached that thing by virtue of a title are not prejudiced..

In cases where a portion of purchased land is owned by a person other than the seller, and the buyer knows this at the time when the contract is concluded, if the seller cannot transfer this to the buyer, the buyer cannot demand the seller

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 563 (1) In the case prescribed in the main clause of paragraph (1) of the preceding Article, if the buyer demands that the seller cure the non-conformity of performance by specifying a reasonable period of time but the non-conformity of performance is not cured within that period, the buyer may request a reduction of the price in proportion to the degree of non-conformity. (2) Notwithstanding the provisions of the preceding paragraph, in the following cases, a buyer in good faith may request a reduction of the price immediately without making demand referred to in that paragraph: (i) if it is impossible to cure the non-conformity of performance; (ii) if the seller unequivocally manifests the intention to refuse to cure the non-conformity of performance; (iii) if, due to the nature of the contract or a manifestation of intention by the parties, the purpose of the contract is unable to be achieved unless the performance is carried out at a specific time on a specific date or within a certain period of time, and the seller fails to cure the non-conformity of the performance at the time or before the period expires; or (iv) beyond the cases set forth in the preceding items, it is obvious that the seller is unlikely to cure the non-conformity of the performance even if the buyer makes the demand referred to in the preceding paragraph. (3) If the non-conformity referred to in paragraph (1) is due to grounds attributable to the buyer, the buyer may not request a reduction of the price under the provisions of the preceding two paragraphs..

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..

In cases where person A is responsible for an obligation toward person B, and performs the entire obligation while knowing that it is before the time of performance, if person B acquires benefit by operating it until the time of performance, the benefit is deemed unjust enrichment in regards to the relationship with person A.

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 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..

In the case where B, who was granted authority of agency to buy a land as an agent of A, concluded a contract for sale of a land "X" with C representing that the same is made on behalf of A by the fraud of C to B, A may not rescind the contract for sale.

Article 101 (1) If the validity of a manifestation of intention that an agent has made to the other party is to be influenced by the absence of intention; by mistake, fraud, or duress; or by the knowledge of or negligence in not knowing of a particular circumstance; whether or not any such fact was present is decided as it concerns the agent. (2) If the validity of a manifestation of intention that the other party has made to the agent is to be influenced by the recipient's knowledge of or negligence in not knowing of a particular circumstance, whether or not any such fact was present is decided as it concerns the agent. (3) If an agent who has been entrusted with performing a specific juridical act performs that act, the principal may not assert that the agent did not know of any particular circumstance of which the principal knew. The same applies to any circumstance of which the principal did not know due to the principal's own negligence. Article 96 (1) A manifestation of intention based on fraud or duress is voidable. (2) If a third party commits a fraud inducing a first party to make a manifestation of intention to a second party, that manifestation of intention is voidable only if the second party knew or could have known that fact. (3) The rescission of a manifestation of intention induced by fraud under the provisions of the preceding two paragraphs may not be duly asserted against a third party in good faith acting without negligence..

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.

In the case where B, who was granted authority of agency to buy a land as an agent of A, was granted authority of agency to sell the land by C, became the agent of C, and concluded a contract for sale of a land "X" between A and C, if B notified to both A and C in advance that B was the agent of both parties, the contract for sale binds A and C.

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 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..

If a person entitled to a servitude does not exercise a portion of his/her rights, only that portion shall be extinguished by prescription.

Article 293 If a servitude holder does not exercise a portion of that holder's rights, only that portion is extinguished by prescription..

Article 415 (1) If an obligor fails to perform consistent with the purpose of the obligation or the performance of an obligation is impossible, the obligee may claim compensation for loss or damage arising from the failure; provided, however, that this does not apply if the failure to perform the obligation is due to grounds not attributable to the obligor in light of the contract or other sources of obligation and the common sense in the transaction. Article 561 If the subject matter of a sale is another person's right (including a part of a right that belongs to another person), the seller bears an obligation to acquire the right and transfer it to the buyer.

The owner of the dominant land may not assign the servitude apart from the dominant 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 330 (1) If there are competing special statutory liens against the same movables, the order of priority follows the order set forth below.In this case, if there are two or more preservers with respect to the statutory liens for preservation of movables set forth in item (ii), a new preserver has priority over previous preservers: (i) statutory liens for leases of immovables, lodging at hotels and transportation; (ii) statutory liens for the preservation of movables; and (iii) statutory liens for the sale of movables, the supply of seeds and seedlings or fertilizer, agricultural labor and industrial labor. (2) In the cases referred to in the preceding paragraph, if a holder of a statutory lien ranked first knew at the time of acquiring the relevant claim of the existence of a holder of a statutory lien of the second or third rank, that holder may not exercise the relevant rights of priority against those persons. The same applies to the exercise against persons that have preserved things on behalf of the holder of a statutory lien of the first rank. (3) Regarding fruits, the first rank belongs to persons who engage in agricultural labor, the second rank belongs to persons that supply seeds and seedlings or fertilizer, and the third rank belongs to lessors of land..

In cases where dominant land is co-owned by more than one person, one of the co-owners of dominant land may renounce his/her own share a servitude that exists on behalf of the land.

Article 282 (1) One of the co-owners of land may not terminate, with respect to that owner's own interest, a servitude that exists on behalf of or in relation to the land. (2) If the land is partitioned or a portion thereof is transferred to another person, the servitude exists on behalf of or in relation to the respective portions of the same;provided, however, that this does not apply if the servitude, by its nature, relates only to a portion of the land..

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..

In cases where dominant land is co-owned by more than one person, if there is a interruption of prescription in favor of one co-owner, such interruption shall also be effective for the benefit of other co-owners.

Article 292 If dominant land is co-owned by more than one person, and expiry of prescription period is postponed or prescription period is renewed in favor of one co-owner, the postponement of expiry of prescription period or the renewal of prescription period is also effective for the benefit of other co-owners..

Article 334 If there is conflict between a statutory lien and a pledge on movables, the pledgee of those movables has the same rights as those of the holder of a statutory lien of the first rank under Article 330. Article 330 (1) If there are competing special statutory liens against the same movables, the order of priority follows the order set forth below.In this case, if there are two or more preservers with respect to the statutory liens for preservation of movables set forth in item (ii), a new preserver has priority over previous preservers: (i) statutory liens for leases of immovables, lodging at hotels and transportation; (ii) statutory liens for the preservation of movables; and (iii) statutory liens for the sale of movables, the supply of seeds and seedlings or fertilizer, agricultural labor and industrial labor. (2) In the cases referred to in the preceding paragraph, if a holder of a statutory lien ranked first knew at the time of acquiring the relevant claim of the existence of a holder of a statutory lien of the second or third rank, that holder may not exercise the relevant rights of priority against those persons. The same applies to the exercise against persons that have preserved things on behalf of the holder of a statutory lien of the first rank. (3) Regarding fruits, the first rank belongs to persons who engage in agricultural labor, the second rank belongs to persons that supply seeds and seedlings or fertilizer, and the third rank belongs to lessors of land..

A servitude may not be established with respect to the land, not neighboring a deminant land, as a servient land.

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 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)..

In cases where a pledge is created with respect to the subject matter of the statutory lien for sale of movables, the statutory lien for sale of movables shall prevail over the pledge.

Article 334 If there is conflict between a statutory lien and a pledge on movables, the pledgee of those movables has the same rights as those of the holder of a statutory lien of the first rank under Article 330. Article 330 (1) If there are competing special statutory liens against the same movables, the order of priority follows the order set forth below.In this case, if there are two or more preservers with respect to the statutory liens for preservation of movables set forth in item (ii), a new preserver has priority over previous preservers: (i) statutory liens for leases of immovables, lodging at hotels and transportation; (ii) statutory liens for the preservation of movables; and (iii) statutory liens for the sale of movables, the supply of seeds and seedlings or fertilizer, agricultural labor and industrial labor. (2) In the cases referred to in the preceding paragraph, if a holder of a statutory lien ranked first knew at the time of acquiring the relevant claim of the existence of a holder of a statutory lien of the second or third rank, that holder may not exercise the relevant rights of priority against those persons. The same applies to the exercise against persons that have preserved things on behalf of the holder of a statutory lien of the first rank. (3) Regarding fruits, the first rank belongs to persons who engage in agricultural labor, the second rank belongs to persons that supply seeds and seedlings or fertilizer, and the third rank belongs to lessors of land..

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..

If the borrower in loan of consumption of monies tenders any performance which is not sufficient to extinguish the total amount of the principal, the interest and the expense, he/she may designate the principal to which such performance should be allocated before any others, and the designation of the allocation shall be effected unless the lender immediately raises his/her objection.

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 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 589 (1) In the absence of any special agreement, the lender may not demand interest from the borrower. (2) If there is any special agreement referred to in the preceding paragraph, the lender may demand from the borrower interest that accrues from the day on which the borrower receives the thing such as money..

Unless any other intention is manifested with respect to the expense of performance, such expenses shall be borne equally by both the obligor and the obligee; however, in cases the relevant obligee caused the expense of performance to increase by relocating his/her domicile or taking any other actions, such incremental amount shall be borne by 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 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..

In cases where, as a result of the cancellation of the contract for sale, each party assumes an obligation to restore the other party to that other party's original position, the obligations of both parties are not related to each other as simultaneous performance.

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 546 The provisions of Article 533 apply mutatis mutandis to the preceding Article. Article 533 A party to a bilateral contract may refuse to perform that party's own obligation until the other party tenders the performance of that other party's obligation (including the performance of an obligation to compensate for loss or damage in lieu of the performance of an obligation);provided, however, that this does not apply if the obligation of the other party is not yet due..

Article 492 Upon tendering the performance, the obligor is relieved from any and all responsibilities which may arise from the non-performance of the obligation..

In the contract for deposit for value, if the performance of the obligation to return deposited Thing has become impossible due to reasons not attributable to the depositary, he/she may not claim remuneration from the depositor, with respect to the period after the impossibility of performance of the agreed duration.

Article 665 The provisions of Articles 646 through 648, Article 649, and Article 650, paragraphs (1) and (2) apply mutatis mutandis to bailments. 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 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 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 546 The provisions of Article 533 apply mutatis mutandis to the preceding Article. Article 533 A party to a bilateral contract may refuse to perform that party's own obligation until the other party tenders the performance of that other party's obligation (including the performance of an obligation to compensate for loss or damage in lieu of the performance of an obligation);provided, however, that this does not apply if the obligation of the other party is not yet due..

In the cases where a lessor is the owner of the subject matter in a contract for lease, the ownership of the subject matter shall not be transfered to the lessee, on the other hand, in the cases where a lender is the owner of the subject matter in a contract for loan for consumption, the ownership of the subject matter shall be transfered to the borrower.

Article 601 A lease becomes effective if one of the parties promises to make a certain thing available for the other party to use and make profit, and the other party promises to pay rent for the leased thing and return the delivered thing when the contract is terminated. 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 562 (1) If the subject matter delivered to the buyer does not conform to the terms of the contract with respect to the kind, quality or quantity, the buyer may demand that the seller cure the non-conformity of performance by repairing the subject matter, delivering the substitute or delivering the replenishment;provided, however, that the seller may cure the non-conformity of performance by a method that is different from the method demanded by the buyer if it does not impose any undue burden on the buyer. (2) If the non-conformity referred to in the preceding paragraph is due to grounds attributable to the buyer, the buyer may not demand that the seller cure the non-conformity of performance under the provisions of that paragraph. Article 533 A party to a bilateral contract may refuse to perform that party's own obligation until the other party tenders the performance of that other party's obligation (including the performance of an obligation to compensate for loss or damage in lieu of the performance of an obligation);provided, however, that this does not apply if the obligation of the other party is not yet due..

Both the timing of payment of rent in a contract for lease and the timing of payment of interest in a contract for loan for consumption may freely be determined by the agreement of the parties.

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

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..

Loans for use shall lose its effect on the death of the lender by operation of law. Leases shall not lose its effect on the death of the lessor by operation of law.

Article 597 (1) If the parties specify a period of a loan for use, the loan for use is terminated upon the expiration of the period. (2) If the parties do not specify a period of a loan for use, but they specify the purpose of using and making profit from the borrowed thing, the loan for use is terminated when the borrower finishes using and making profit from the thing in line with the purpose. (3) A loan for use is terminated upon the death of the borrower..

Article 596 The provisions of Article 551 apply mutatis mutandis to loans for use. 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..

A borrower must restore a borrowed Thing to its original condition on termination of the loan for use, but the borrower must obtain the consent of the lender to remove anything attached to the borrowed Thing. A lessee must restore a leased Thing to its original condition on termination of the lease, but the lessee need not obtain the consent of the lessor to remove anything attached to the leased Thing.

Article 599 (1) If the borrower attaches anything to the borrowed thing after receiving it, the borrower has an obligation to remove the attached thing when the loan for use is terminated;provided, however, that this does not apply to anything that is unable to be detached from the borrowed thing or that requires excessive expenses for the detachment. (2) The borrower may remove anything that the borrower has attached to the borrowed thing after receiving it. (3) If any damage is caused to the borrowed thing after the borrower receives it, the borrower has an obligation to restore the damaged thing when the loan for use is terminated;provided, however, that this does not apply if the damage is caused due to any grounds not attributable to the borrower. Article 616 The provisions of Article 594, paragraph (1) apply mutatis mutandis to leases..

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..

A concluded the contract with B that A leases his/her two-storied building "X" at a charge of 500,000 yen a month, and delivered the building "X" to B. After that, B concluded the contract with C that B subleases the building "X" at a charge of 500,000 yen a month with obtaining the approval of A, and delivered the building "X" to C. After a while, C became unable to use the second story of the building "X" due to the leak caused by defect of the roof. C may demand B to repair the defect of the roof of the building "X".

Article 613 (1) If a lessee lawfully subleases a leased thing, the sublessee is liable to perform an obligation based on the sublease directly to the lessor, to the extent of the scope of the lessee's obligation based on the lease between the lessor and the lessee. In such a case, advance payment of rent may not be duly asserted against the lessor. (2) The provisions of the preceding paragraph do not preclude the lessor from exercising rights against the lessee. (3) If the lessee lawfully subleases a leased thing, the lessor may not duly assert against the sublessee the cancellation by agreement of the lease with the lessee;provided, however, that this does not apply if, at the time of the cancellation, the lessor has a right to cancel due to non-performance on the part of the lessee. Article 601 A lease becomes effective if one of the parties promises to make a certain thing available for the other party to use and make profit, and the other party promises to pay rent for the leased thing and return the delivered thing when the contract is terminated. Article 606 (1) A lessor assumes an obligation to effect repairs necessary for using and making profit of the leased thing;provided, however, that this does not apply if repairs are necessary due to any grounds attributable to the lessee. (2) A lessee may not refuse if the lessor seeks to engage in an act that is necessary for the preservation of the leased thing..

Article 634 In the following cases, if the party ordering work receives any benefit from the performance of any divisible portion of the outcome of the work that the contractor has already completed, that portion is deemed to be the completed work; in this case, the contractor may demand remuneration in proportion to the benefit to be received by the party ordering work: (i) if the contractor is no longer able to complete the work due to any grounds not attributable to the party ordering work; or (ii) if the contract for work is cancelled before the completion of work. 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..

The party ordering work may cancel the contract by compensating any damages, even if the contractor has completed the work with the purpose of its obligation.

Article 641 The party ordering work may cancel the contract at any time whilst the contractor has not completed the work by paying compensation for loss or damage..

Article 533 A party to a bilateral contract may refuse to perform that party's own obligation until the other party tenders the performance of that other party's obligation (including the performance of an obligation to compensate for loss or damage in lieu of the performance of an obligation);provided, however, that this does not apply if the obligation of the other party is not yet due..

In the case where the delivery of the subject matter of work performed is required, if the defect in the subject matter is evident at the time of the delivery of it, the contractor shall not be liable for the warranty against defects.

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 562 (1) If the subject matter delivered to the buyer does not conform to the terms of the contract with respect to the kind, quality or quantity, the buyer may demand that the seller cure the non-conformity of performance by repairing the subject matter, delivering the substitute or delivering the replenishment;provided, however, that the seller may cure the non-conformity of performance by a method that is different from the method demanded by the buyer if it does not impose any undue burden on the buyer. (2) If the non-conformity referred to in the preceding paragraph is due to grounds attributable to the buyer, the buyer may not demand that the seller cure the non-conformity of performance under the provisions of that paragraph..

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..

A person who has taken the life of another must compensate for damages only to heirs of the victim.

Article 711 A person that has taken the life of another must compensate for loss or damage to the father, mother, spouse, and children of the victim, even if the property rights of the same have not been infringed..

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..

A person who employs others for a certain business shall be liable for damages inflicted on a third party by his/her employees with respect to the execution of that business, and this shall apply even if the employees have the sufficient financial resources to compensate.

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 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)..

In cases where, with respect to a contract for sale concluded by a unauthorized agent, the counterparty requires the principal, by fixing a reasonable period of time, to make a definite answer on whether or not he/she will ratify within such period of time, if the principal fails to make any definite answer within such period, he/she is deemed to have ratified the contract for sale.

Article 114 In the case referred to in the preceding Article, the counterparty may demand, by specifying a reasonable period of time, that the principal give a definite answer on whether or not the principal will ratify within that period of time.In this case, if the principal fails to give a definite answer within that period, the principal is deemed to have refused to ratify..

Article 183 If an agent manifests the intention to thenceforward possess a thing under the agent's own possession on behalf of the principal, the principal thereby acquires the possessory rights..

A person who made a manifestation of intention which was induced by duress emanated from a third party may rescind such manifestation of intention on the basis of duress, only if the other party knew or was negligent of such fact.

Article 96 (1) A manifestation of intention based on fraud or duress is voidable. (2) If a third party commits a fraud inducing a first party to make a manifestation of intention to a second party, that manifestation of intention is voidable only if the second party knew or could have known that fact. (3) The rescission of a manifestation of intention induced by fraud under the provisions of the preceding two paragraphs may not be duly asserted against a third party in good faith acting without negligence..

Article 116 Ratification is retroactive to the time of the conclusion of the contract unless a particular intention is manifested;provided, however, that this may not prejudice the rights of a third party..

Even if the possessor started the possession without knowledge and was not negligent of another's ownership of the property in cases where he/she subsequently knew another person's ownership during possession, the period of prescription shall be calculated as a possessor in bad faith.

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 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.

Extinctive prescription for claims with a specified due date commences to run on the time of arrival of such time limit..

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 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..

Extinctive prescription for claims with unspecified due date commences to run on the time of arrival of such obligortime limit.

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 519 If an obligee manifests the intention to release an obligor from an obligation to that obligor, the obligee's claim is extinguished..

Even while the holder of a right to retention continues the possession of the retained property, extinctive prescription runs for its secured claim.

Article 300 The exercise of a right of retention does not preclude the running of extinctive prescription of claims..

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..

Extended parts of the building shall be regarded as appurtenance..

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 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..

X, who purchased a real estate P from decedent A before the commencement of inheritance, may assert his ownership of P against Y without registration, if Y, who is the obligee of A's sole heir B, seized P in subrogation to B after B's inheritance registration of P.

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 330 (1) If there are competing special statutory liens against the same movables, the order of priority follows the order set forth below.In this case, if there are two or more preservers with respect to the statutory liens for preservation of movables set forth in item (ii), a new preserver has priority over previous preservers: (i) statutory liens for leases of immovables, lodging at hotels and transportation; (ii) statutory liens for the preservation of movables; and (iii) statutory liens for the sale of movables, the supply of seeds and seedlings or fertilizer, agricultural labor and industrial labor. (2) In the cases referred to in the preceding paragraph, if a holder of a statutory lien ranked first knew at the time of acquiring the relevant claim of the existence of a holder of a statutory lien of the second or third rank, that holder may not exercise the relevant rights of priority against those persons. The same applies to the exercise against persons that have preserved things on behalf of the holder of a statutory lien of the first rank. (3) Regarding fruits, the first rank belongs to persons who engage in agricultural labor, the second rank belongs to persons that supply seeds and seedlings or fertilizer, and the third rank belongs to lessors of land..

Since rights of retention are real rights that include the right to possess properties, holders of rights of retention cannot demand the return of the property retained by way of an action on title based on rights of retention.

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 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..

A landowner that leased his/her land and delivered it to a lessee not only may demand the return of such land by way of possessory actions, but also may demand the return of the land by way of actions on title based on landownership, in cases where the land was usurped by a third party.

Article 181 Possessory rights may be acquired through an agent. 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 511 (1) A third party obligor of a claim which has been attached may not assert sett-off as defense with any claim acquired after the attachment against the attaching obligee, but may duly assert against the same a set-off based using a claim acquired before the attachment. (2) Notwithstanding the provisions of the preceding paragraph, if a claim acquired after the attachment has arisen from a cause that existed before the attachment, the third party obligor may use that claim for a set-off against the attaching obligee;provided, however, that this does not apply if the third party obligor acquires the claim of another person after the attachment..

In a case where A bought a registered building owned by B, and subsequently that building's ownership preservation registration was made in B's name, if B sold the building to C and registered the transfer, A may not asset his/her acquisition of ownership of that building.

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 179 (1) If ownership and another real right on the same thing are acquired by the same person, the other real right is extinguished;provided, however, that this does not apply if that thing or the other real right is the object of the right of a third party. (2) If a real right other than ownership and another right for which that real right is the object are acquired by the same person, the other right is extinguished.In this case, the provisions of the proviso to the preceding paragraph apply mutatis mutandis. (3) The provisions of the preceding two paragraphs do not apply to possessory rights..

A right of retention, a pledge, and a mortgage 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 such collateral rights.

Article 350 The provisions of Articles 296 through 300 and those of Article 304 apply mutatis mutandis to pledges. Article 372 The provisions of Article 296, Article 304 and Article 351 apply mutatis mutandis to mortgages. 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 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..

The order of priority of a real estate statutory lien, a real estate pledge, and a mortgage is determined by that of the registration.

Article 331 (1) If there is conflict among special statutory liens against the same immovables, the order of priority follows the order set forth in the items of Article 325. (2) If the same immovables are subject to successive sales, the order of priority of the statutory liens for the sale of the immovables among sellers follows the chronological order of the sales. Article 339 Statutory liens registered in accordance with the provisions of the preceding two Articles may be exercised prior to mortgages..

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 588 If any person has an obligation to pay money or deliver other thing under any arrangement, and the parties agree to regard such thing as the subject matter of a loan for consumption, it is deemed that this establishes a loan for consumption..

In cases where a contract that creates a pledge upon a claim that cannot be assigned due to its nature has been made, such contract is void, regardless of whether the pledgee acted in good or bad faith regarding said non-assignability.

Article 343 A thing that cannot be transferred to another person may not be made the subject of a pledge..

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..

A holder of a right of retention may retain that thing until his/her claim is satisfied in its entirety..

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 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..

Statutory liens for employer-employee relationships secure salaries paid regularly, but do not secure retirement payments that should be paid when the employee retires.

Article 308 Statutory liens for employer-employee relationships exist with respect to salaries and other claims that arise from the employer-employee relationship between the obligor and the employee..

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..

In addition to the principal of the secured claim, pledges of real estates shall secure periodic payments including interest only for those that have fallen due in the most recent two years.

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 176 The creation and transfer of a real right becomes effective solely by the manifestations of intention of the parties. 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 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..

In addition to the principal of the secured claim, mortgages that are not revolving mortgages shall secure periodic payments including interest only for those that have fallen due in the most recent two years.

Article 375 (1) If a mortgagee has the right to demand periodic payments including interest, that mortgagee may exercise the mortgage solely with respect to payments of the last two years before maturity;provided, however, that with respect to prior periodic payments, if special registration is effected after maturity, the mortgagee is not precluded from exercising the mortgage as from the time of that registration. (2) If the mortgagee has the right to claim compensation for loss or damage resulting from defaults in obligations, the provisions of the preceding paragraph also apply mutatis mutandis to the loss or damage of the most recent two years;provided, however, that the aggregate period including the interest and other periodic payments may not exceed two years..

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..

In addition to the fixed principal, revolving mortgages with a fixed principal shall secure up to the maximum amount with respect to the periodic payments including interest for those that have fallen due in the most recent 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 404 (1) Unless the parties manifest a particular intention with respect to a claim which bears interest, the rate of the interest is the statutory interest rate as of the time when the interest first accrues.

If the obligor sold the subject matter of a statutory lien to a third party, the holder of the statutory lien for sales of movables may exercise such right against the purchase money claim accrued from the sales .

Article 321 Statutory liens for the sale of movables exist against movables, in connection with the price of those movables and interest on the same. 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 306 A person that has a claim arising from the causes set forth below has a statutory lien over the entire assets of the obligor: (i) expenses for the common benefit; (ii) an employer-employee relationship; (iii) funeral expenses; or (iv) the supply of daily necessaries. Article 308 Statutory liens for employer-employee relationships exist with respect to salaries and other claims that arise from the employer-employee relationship between the obligor and the employee..

A person who uses a mortgaged building based on a lease that may not be asserted against the mortgagee may suspend the vacation of that building to the purchaser for up to 6 months from the time that the purchaser purchased the building in cases where the building was auctioned, if he/she has been using it prior to the commencement of auction proceedings.

Article 395 (1) A person that uses or profits from a building subject to a mortgage by virtue of a lease that cannot be duly asserted against the mortgagee, and that is set forth as follows (in the following paragraph referred to as "mortgaged building user") is not required to deliver that building to the purchaser thereof until six months have passed from the time when the purchaser purchased that building at auction: (i) a person that has been using or profiting from the building since prior to the commencement of auction procedures; or (ii) a person that is using or profiting from the building by virtue of a lease given after the commencement of auction procedures by the administrator of compulsory administration or execution against earnings from immovable collateral. (2) The provisions of the preceding paragraph do not apply if the purchaser, specifying a reasonable period of time, issues a notice to the mortgaged building user demanding payment of consideration for a period of one month or more with respect to the use of the building referred to in that paragraph that has been made after the time of purchase by the purchaser, and no payment is made within that reasonable period of time..

Article 460 If a guarantor has given a guarantee as requested by the principal obligor, the guarantor may exercise in advance the right to reimbursement against the principal obligor if: (i) the principal obligor is subject to an order commencing bankruptcy proceeding, and the obligee does not participate in the distribution of the bankruptcy estate; (ii) the obligation is due;provided, however, that no extension of time granted by the obligee to the principal obligor after the conclusion of the guarantee contract may be duly asserted against the guarantor; and (iii) the guarantor is, without negligence, rendered a judicial decision ordering the guarantor to perform the obligation to the obligee..

A registered lease may be asserted against the mortgagee who gave consent to the lease, if the entire mortgagee who had registered their respective mortgage before the lease's registration gave consent to the lease.

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 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..

Holders of superficies created upon mortgaged real estates may not make a claim for the extinction of the mortgage.

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 605 A lease of immovables, when registered, may be duly asserted against a third party such as a person that subsequently acquires real rights with respect to the immovables..

Even if the owner of a mortgaged property acquires fruits derived after the default of the secured claim, it shall not be a case of unjust enrichment.

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 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..

There are cases when compensation of damages may be demanded besides demand for the enforcement of performance.

Article 414 (1) If an obligor voluntarily fails to perform an obligation, the obligee may request the court to enforce obligor to perform through methods such as direct compulsion, execution by substitution, or indirect compulsion, in accordance with the provisions of the Civil Execution Act and other laws and regulations concerning the procedure for compulsory execution;provided, however, that this does not apply if the nature of the obligation does not permit the enforcement. (2) The provisions of the preceding paragraph do not preclude claiming compensation for loss or damage..

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..

The mandate shall terminate when the mandatary is subject to an order for the commencement of guardianship.

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 7 The family court may decide to commence a guardianship in respect of a person who constantly lacks the capacity to appreciate the person's own situation due to a mental disorder, at the request of the person in question, that person's spouse, that person's relative within the fourth degree of kinship, the person's guardian of a minor, the person's supervisor of a minor's guardian, the person's curator, the person's curator's supervisor, the person's assistant, the person's assistant's supervisor, or a public prosecutor. Article 11 The family court may decide to commence a curatorship in respect of a person whose capacity to appreciate their own situation is extremely inadequate due to a mental disorder, at the request of the person in question, the person's spouse, the person's relative within the fourth degree of kinship, the guardian, the guardian's supervisor, the assistant, the assistant's supervisor, or a public prosecutor;provided, however, that this does not apply to a person in respect of whom a cause set forth in Article 7 exists..

Even if contrary to the intentions of the principal, management of business may be established, and in that case, the manager may request reimbursement for expenses incurred for the principal solely to the extent such principal actually enriched.

Article 700 A manager must continue the benevolent intervention in another's business until the principal or an heir or legal representative thereof is able to undertake it;provided, however, that this does not apply if it is evident that the continuation of the benevolent intervention in another's business is contrary to the will of the principal, or is disadvantageous to the principal. 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 398-21 (1) After the principal is crystallized, the mortgagor of the revolving mortgage may request a reduction in the maximum amount of that revolving mortgage, to the amount of the obligations actually in existence plus the amount of the periodic payments including interest and the amount of compensation for loss or damage due to default in obligations that will arise in the following two years. (2) As to the reduction in the maximum amount of a revolving mortgage registered pursuant to Article 398-16, it suffices to make the request referred to in the preceding paragraph with respect to one of those immovable properties..

Unless a Manager engages in the Management of Business in order to allow a principal to escape imminent danger to the principal's person, reputation or property, the manager must manage the business with due care of a prudent manager.

Article 698 If a manager engages in benevolent intervention in another's business in order to allow a principal to escape imminent danger to the principal's person, reputation, or property, the manager is not liable to compensate for damage resulting from this unless the manager has acted in bad faith or with gross negligence..

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..

A manager must report the progress and results to the principal without delay upon completion of the management of business.

Article 701 The provisions of Article 645 through Article 647 apply mutatis mutandis to the benevolent intervention in another's business. Article 645 A mandatary must, if so requested by the mandator, report the current status of the administration of the mandated business at any time, and must report the process and results without delay upon termination of the mandate..

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..