LAW OF OBLIGATION ACT, PART 10, CHAPTER 49, DIVISION 1

Part 10

NONCONTRACTUAL OBLIGATIONS 

Chapter 49

PUBLIC PROMISE TO PAY 

Division 1

General Provisions 

  • 1005. Public promise to pay

A person who publicly promises to pay for the performance of an act, above all for the achievement of a result, shall pay the promised reward to the person who performs the act even if the performer of the act does not act on the basis of the promise to pay the reward.

  • 1006. Withdrawal of promise to pay or amendment of conditions thereof

(1) A person who promises to pay may withdraw the promise or amend the conditions thereof before the act is performed on condition that the withdrawal or amendment is made known in the same manner as the promise to pay a reward. The withdrawal of a promise to pay also applies to persons who are aware of the withdrawal of the promise to pay.

(2) A person who promises to pay a reward may, at the time the promise is made, waive the right to withdraw the promise. A promise to pay cannot be withdrawn if a term has been specified for the performance of the act, unless otherwise provided in the content of the promise.

(3) A person who promises to pay a reward and withdraws the promise shall compensate the costs incurred by other persons in good faith based on the promise, unless the person who promises to pay proves that the persons who incurred the costs could not have performed or would not have been able to perform the act for which the reward is promised. The total costs incurred by other persons shall be compensated to the extent of the promised reward.

  • 1007. Performance of act by several persons separately

(1) If several persons perform an act, each at a different time, for which payment of a reward is promised, the reward for the performance of the act shall be paid to the person who is the first to perform the act.

(2) If several persons perform an act separately but at the same time, each of the persons has the right to an equal share of the reward. If the reward cannot be divided due to its nature or if, according to the conditions of the promise to pay the reward, only one person is to receive the reward, the persons entitled to receive the reward shall draw lots.

  • 1008. Joint participation of several persons in performance of act

(1) If several persons participate in the performance of an act for which payment of a reward is promised, the reward shall be divided fairly between them, taking into account the role of each participant in achieving the desired result.

(2) If the performers of an act disagree as to how the reward should be divided between them, the person who promises to pay the reward has the right to refuse to pay until the performers of the act have reached an agreement concerning the manner in which the reward is to be divided. In such case, each of the performers of the act has the right to demand that the reward be deposited jointly for all performers of the act.

(3) If the reward cannot be divided between several persons due to its nature or if, according to the conditions of the promise to pay the reward, only one person is to receive the reward, the persons entitled to receive the reward shall draw lots.

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