LAW OF OBLIGATION ACT, PART 10, CHAPTER 51

Chapter 51

NEGOTIORUM GESTIO 

  • 1018. Definition of negotiorum gestio

(1) If a person (negotiorum gestio) acts for the benefit of another person (principal) without being granted the right or obligated by the principal to perform the act, the negotiorum gestor has the rights and obligations provided in §§ 1019-1023 of this Act if:

1) the principal approves of the act;

2) the act corresponds to the interests and actual or presumed intention of the principal;

3) in the case of failure to act, the principal’s obligation arising from law to maintain a third party would not be performed in a timely manner or the act is essential in the public interests for another reason.

(2) A case where a person has no desire to act for the benefit of another person is not deemed to be negotiorum gestio.

  • 1019. Error by negotiorum gestor regarding identity of principal

If a negotiorum gestor does not know who the principal is or if the negotiorum gestor makes an error in identifying the principal, all rights and obligations which arise from the act belong to the actual principal.

  • 1020. Notifying principal

(1) A negotiorum gestor shall, before acting, notify the principal of the intent of the person and wait for a further decision from the principal concerning the act, except in the case where it is not possible to give prior notice without damaging the interests of the principal or public interests or if the negotiorum gestor cannot reasonably be expected to give prior notice.

(2) A negotiorum gestor who begins to act without giving prior notice thereof to the principal shall inform the principal at the earliest possible opportunity. A negotiorum gestor shall wait for a further decision from the principal concerning the act if this is possible and can reasonably be expected of the negotiorum gestor.

(3) The provisions of § 624 of this Act apply to other aspects of the notification obligation of negotiorum gestor.

  • 1021. Obligation to transfer

(1) The provisions of § 626 of this Act apply to the obligation of negotiorum gestor to transfer that which is received as a result of negotiorum gestio.

(2) If a negotiorum gestor has restricted active legal capacity, the person shall transfer that which is received as a result of his or her acts to the principal pursuant to the provisions concerning unjustified enrichment.

  • 1022. Due diligence of negotiorum gestor

(1) In negotiorum gestio, the negotiorum gestor shall bear the interests of the principal in mind and be guided by the actual or presumed wishes of the principal. This does not apply if it would be contrary to public interests to bear the interests of the principal in mind.

(2) If the objective of negotiorum gestio is the prevention of imminent significant danger to the dominus negoti, the negotiorum gestor shall be liable for any damage caused to the principal thereby only in the case of intent or gross negligence.

(3) The restriction of liability provided for in subsection (2) of this section does not apply in cases where, pursuant to the provisions of subsection 1023 (2) of this Act, the negotiorum gestor has the right to claim a reward.

(4) If the negotiorum gestor is aware or ought to be aware that the act does not correspond to the wishes of the principal and if the wishes of the principal are not contrary to public interests or law, the negotiorum gestor shall be liable for any damage caused to the principal as a result of negotiorum gestio. A negotiorum gestor is released from liability if the person proves that the damage would have arisen even if the person had not acted without authority.

(5) If a negotiorum gestor has restricted active legal capacity, the person shall be liable for any damage caused to the principal only pursuant to the provisions concerning the unlawful causing of damage.

  • 1023. Compensation of costs and payment of reward

(1) A negotiorum gestor may demand that the principal compensate the costs incurred by him or her in negotiorum gestio and release the person from the obligations assumed thereby. A negotiorum gestor may demand to be compensated for costs which the person incurs or released from obligations which the person assumes in negotiorum gestio to the extent which may be deemed reasonably necessary in negotiorum gestio.

(2) A negotiorum gestor in the course of the person’s economic or professional activities has the right to demand a reasonable reward from the principal. A negotiorum gestor may not demand that the principal pay a reward if the person has the right, arising from a contract entered into with a third party, to demand a reward from the third party.

(3) A negotiorum gestor has none of the rights arising from subsections (1) or (2) of this section if, considering the circumstances, it is evident that the person, when beginning to act, did not intend to demand that the principal compensate costs or pay a reward.

  • 1024. Failure to comply with requirements

(1) If a negotiorum gestor lacks justification for acting as specified in clauses 1018 (1) 2) or 3) of this Act or if the principal does not approve of the fact that the person is acting, the negotiorum gestor shall eliminate any consequences created for the principal and compensate any damage created to the principal through negotiorum gestio.

(2) If, at the time a negotiorum gestor begins to act, the person does not understand and is not required to understand that the person lacks justification for acting pursuant to subsection 1018 (1) of this Act, the person is not required to eliminate any consequences created for the principal through acting but shall nevertheless compensate any damage created by the lack of necessary diligence in negotiorum gestio. If the objective of acting is the prevention of imminent significant danger to the principal, the person acting shall be liable only for damage caused to the principal due to the intent or gross negligence of the person.

(3) If, at the time a negotiorum gestor begins to act, the person does not understand and is not required to understand that the person lacks justification for acting pursuant to subsection 1018 (1) of this Act, the person shall nevertheless inform the principal of all significant circumstances related to the actions, provide the principal with information concerning the actions on the request of the principal, and submit an overview of the costs and revenue related to the actions together with the data on which the calculations are based to the principal.

(4) If, at the time a negotiorum gestor begins to act, the person does not understand and is not required to understand that the person lacks justification for acting pursuant to subsection 1018 (1) of this Act, the principal shall transfer that which is received as a result of the acting to the negotiorum gestor pursuant to the provisions concerning unjustified enrichment.

  • 1025. Compensation for damage to negotiorum gestor

(1) A negotiorum gestor with the objective of preventing imminent significant danger to the principal has the right to demand compensation from the principal for any damage created as a result of risk characteristic to the prevention of such danger. Compensation for damage may not be demanded from the principal if the employer or mandator of the negotiorum gestor or the provider of social security for or the health insurer of the negotiorum gestor has the obligation to compensate for the damage.

(2) If a negotiorum gestor is also acting in his or her own interests when beginning to act, any harmful consequences arising from the dangerous event which also present a danger to the negotiorum gestor shall be taken into consideration to a reasonable extent upon the determination of the amount of compensation for the damage.

  • 1026. Acting in own interest

(1) The provisions of §§ 1018 to 1024 of this Act do not apply where a person is acting on behalf of another person but believes that the person is acting on the person’s own behalf.

(2) The provisions of subsections 1022 (1) and (5) and subsection 1024 (1) apply where a person is acting on behalf of another person as if the person were acting on the person’s own behalf in spite of the fact that the person is or ought to be aware that the person does not have the right to do so. If the principal files a claim against a person acting without authority arising from a violation of the obligation specified in subsection 1022 (1) of this Act or a claim specified in subsection 1022 (5) or 1024 (1) of this Act, person acting without authority has the right to demand compensation of costs incurred while acting, pursuant to the provisions concerning unjustified enrichment.

Disclaimer:

The information contains in this web-site is prepared for educational purpose. This site may be used by the students, faculties, independent learners and the learned advocates of all over the world. Researchers all over the world have the access to upload their writes up in this site. In consideration of the people’s participation in the Web Page, the individual, group, organization, business, spectator, or other, does hereby release and forever discharge the Lawyers & Jurists, and its officers, board, and employees, jointly and severally from any and all actions, causes of actions, claims and demands for, upon or by reason of any damage, loss or injury, which hereafter may be sustained by participating their work in the Web Page. This release extends and applies to, and also covers and includes, all unknown, unforeseen, unanticipated and unsuspected injuries, damages, loss and liability and the consequences thereof, as well as those now disclosed and known to exist.  The provisions of any state’s law providing substance that releases shall not extend to claims, demands, injuries, or damages which are known or unsuspected to exist at this time, to the person executing such release, are hereby expressly waived. However the Lawyers & Jurists makes no warranty expressed or implied or assumes any legal liability or responsibility for the accuracy, completeness or usefulness of any information, apparatus, product or process disclosed or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product process or service by trade name, trade mark, manufacturer or otherwise, does not necessarily constitute or imply its endorsement, recommendation or favouring by the Lawyers & Jurists. The views and opinions of the authors expressed in the Web site do not necessarily state or reflect those of the Lawyers & Jurists. Above all, if there is any complaint drop by any independent user to the admin for any contents of this site, the Lawyers & Jurists would remove this immediately from its site.