Law No. 23 of 2010 regarding Commercial Activity 

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Book Three Contracts and Commercial Obligations 

Section One General Provisions 

Article 498 

Solidarity of Debitors 

Those who are under obligation of a Commercial Debt are jointly liable for payment of such debt unless the Law or the agreement stipulates otherwise. 

These provisions shall apply in case of multiplication of warrantees in Commercial Debt. 

Article 499 

Working of the Merchants to the Credit of a Third Party 

If the Merchant performed works or services related to his Commercial Activity to the credit of Third Party, it is considered that he has performed thereof for a compensation unless the contrary is confirmed. The compensation shall be fixed according to the tradition, in default thereof it shall be estimated by the Court. 

Article 500 

Claim for Payment of Commercial Obligations 

Payment of the Commercial Obligations shall not be claimed unless in working hours to be defined by the Law or the Regulation or the tradition. 

Article 501 

Means of Warning or Notification of the Debitor 

Warning or notification of the debitor in Commercial matters shall be by all the means of expression of the will unless otherwise agreed upon.

Article 502 

Possession of Debt Security 

Existence of the Debt Security in possession of the debt, his associate shall relieve his obligation from the debt pending confirmation of the contrary thereto. 

Article 503 

Payment Validity 

Payment of the Commercial Debt in good faith to the party who possess the debt security designated by clearance or to the party who possessed a receipt from the creditor or his deputy shall relieve the debitorís obligation. 

Article 504 

Confirmation of Commercial Obligations 

The Commercial Obligations may be confirmed whatever their value would be by all the methods of confirmation, unless the Law provides for otherwise. 

With exception of cases in which the Law requisites the writing in Commercial materials, the contrary of what is included in the written evidence may be confirmed or confirmation of what is exceeding such evidence by all the methods of confirmation. 

Article 505 

Commercial Prescription 

The obligations in the Commercial matters shall be prescribed to all their parties after lapse of (10) ten years from the date of payment maturity, unless the Law provided for otherwise. 

The same provisions shall be applied to the obligations of the party which the dealing shall not be considered commercial to him.

Section Two Sale of Movables 

Chapter one General Provisions 

Article 506 

Delivery of the Sold Thing 

The delivery of the sold thing should be done in the place where it was existing at the time of sale if the contracting parties where in knowledge thereof or in the place the domicile or the place of his activity is located unless there is an agreement or tradition stipulates otherwise. 

If it is incumbent to transport the sold thing from place to another, the seller shall be relieved from the obligation of delivery of the sold thing If he delivered it to a carrier or one of the forwarders or discharge unless there is 

an agreement or a tradition stipulates otherwise. The transportation expenses shall be at the expenses of the purchaser. 

Article 507 

Declaration of the Sold Thing Defects and Imperfections 

In the sale of things ought to be transported from one place to another, the term of declaration of their apparent defects or imperfections shall apply from the date of their taking over. 

Article 508 

Defect Guarantee 

If the seller secured the validity of the sold thing for work to a certain time, the purchaser should notify the seller of the defect within (30) thirty days from its discovery, otherwise the same shall be prescribed and he should bring a lawsuit within six months of this notice otherwise the same shall be prescribed. 

The judge may, as per the circumstances, appoint a term for the seller to replace or repair the sold thing in a manner ensuring its good progress without prejudicing the right to compensation. 

The tradition which is provided for the necessity of ensuring the serviceability of the sold thing shall be observed even if there is no express agreement thereupon.

Article 509 

Dispute on Description and Condition of the Sold Things 

When a conflict arises out on description and condition of the sold thing either the seller and purchaser may claim for verification thereof as per methods prescribed in the civil and commercial procedure law. The Judge may, upon request of the concerned parties, order consignment or attachment or sale of the sold thing at the expenses of the party who have the right thereto, showing the conditions which he deems appropriate in each case. 

In case the dispute arises out, the party who did not request examination of the thing should prove his identity accurately. 

Article 510 

Refusal of the Purchase to receive the Sold Thing 

If the purchaser did not present to receive the sold thing, the seller may consign the sold thing at the expenses ad risk of the purchaser in a place prepared for general consignment or in any other suitable place to be 

assigned by the summary judge of the authority in which the thing should have been delivered. 

The seller must immediately notify the purchaser of the occurrence of the consignment and its location. 

Article 511 

The Purchaser Breaching his Obligations 

If the purchaser did not honor his obligations by paying the sold thing price, the seller may ask for payment thereof expeditiously as the expenses and risk of the purchaser. 

The sale shall be effected in sale by auction by an authorized person, and in default of such person at the authority in which the sale shall be effected, then it shall be by a judicial Process-Server. The seller must notify the purchaser at an appropriate time of the day, place and hour in which the sale will be affected. 

If the thing has a current price decided by the public authorities or regulations or a price shown in the stock markets lists or official pricings, the sale may be effected without auction at the current price by the persons defined in the previous paragraph or through a representative to be nominated by the summary judge. In this case the seller must immediately notify the purchaser of the sale occurrence. 

The seller shall have the right to receive the difference between the price agreed upon and that passed to him from the sale, in addition to his right to a compensation for the damage fallen on him. 

Article 512 

Sale of Similar Things 

In case of sale of the similar things which have current price under the third paragraph of the previous article and if the seller did not satisfy his obligation, the purchaser may buy without delay their similarities at the sellerís expenses through the mediation of one of the persons mentioned in the second and third paragraph of the previous article. 

The purchaser must immediately notify the seller of the purchase. 

The purchaser shall have the right to receive the difference between the purchasing cost and the price agreed upon, in addition to the compensation which he deserves. 

Article 513 

Contract Cancellation by Operation of the Law 

The contract shall be canceled by operation of the Law in the favor of the contracting party who shall proceed to the other prior to the date fixed in his favor and in the recognized methods with delivery of the thing or payment of the price and the second party did not meet his obligation. Also, the contract shall be canceled by operation of the law in favor of the seller if the purchaser who did not contract out of his obligation by payment of the price for taking over something which has already been offered to him or did not accept it on the maturity of the time decided for delivery. 

The contracting party who intends to sue for the cancellation right decided in this article shall notify the second party within (8) eight days with effect from maturity time. If the notice is not served the general provisions of contract cancellation for non-payment shall be observed.

Article 514 

Compensation Estimation 

If the sold thing has a current price and the contract cancellation is occurred due to non-payment by either parties, then compensation shall be imposed based on the difference between the price agreed upon and the current price on the day and in the place where the delivery must be executed, unless it is confirmed that the damage is more than that. In the sale which should be effected in periodical payments, the compensation shall be fixed on the basis of the current prices on the day and in the place decided for delivery of each payment alone. 

Article 515 

Sellerís Right to get Back the Sale Thing 

If the sale is effected without delay in payment of the price, the seller shall, in case of non-payment of the price, recover of possession of the sold things as far as they are still on purchaser hand as they are still on purchaser hand as they are, provided that the application shall be submitted within (15) fifteen days from delivery. This right shall not be adhered to in damaging the lessorís preference unless it is proved that the latter was in knowledge that the price was still due at the time of entry of the soldting in the rented or occupied property under a sharecropping or equal shares contract. 

The provisions of the previous paragraph shall be applied in the favor of the purchaserís creditors who have imposed distress or judicial seizure upon the thing, unless it is proved that they were in knowledge that the price was still due at the time of imposition of the distress or the judicial seizure. 

Chapter Two Some Kinds of Sales 

Branch One Sale on Approval or on Trial or in Specie 

Article 516 

Sale on Approval 

If the thing is sold on approval by the purchaser, then the sale shall not be effected unless after acceptance of the purchaser and notifying the seller of such acceptance.

If it is obligatory to inspect the thing with the seller, his obligation shall be relieved if the purchaser shall not conduct such inspection within the time decided in the contract or tradition or within a sufficient time to be fixed by the seller if there is no agreement or tradition. 

If the thing was available with the purchaser and he kept it silent during the above mentioned period, his silence shall be considered as acceptance. 

Article 517 

Sale on Trial 

The completion of the sale on trial is supposed to be pending on a suspensive condition which is availability of the capacities agreed upon or serviceability for the intend use. 

The trial shall be deferred and in the methods established in the contract or tradition. 

Article 518 

Sale in Specie 

If the sale is on the basis of in specie the sold thing should be completely typical to it. If any difference appears between them the purchaser shall have the right to cancel the contract. 

Provided that, if it is appeared from the agreement or the tradition that the specific purpose is nothing more than indicating approximately the kind of the thing, then cancellation shall not be claimed for unless if the variation aspect between the sold thing and the specie was apparent and tangible. In all the cases, the lawsuit shall be subject to provisions of time lapse and prescription shown in Article (508) of this Law. 

Branch Two Sale by Installment with Retention of the Ownership 

Article 519 

Sale by Installment 

In sale by installment and retention of the ownership the purchaser shall acquire the ownership of the thing as soon as paying the last installment of the price and shall bear all the risks from the time of receiving the same.

Article 520 

Confirmation of Ownership Retention 

Non-payment of one installment not exceeding one eighth, the sold thing price shall not be a reason for contract cancellation in spite of the agreement to the contrary. The other installments shall remain due for payment on the dates fixed thereof in the contract. 

Article 521 

Failure to Pay an Installment of the Sale Price 

Failure to pay one installment not exceeding one eighth (1/8) of the sale price shall not constitute a reason for contract abrogation despite agreement otherwise. The remaining installment shall continue to be due and payable on the dates specified in the contract.

Article 522 

Compensation 

If the contract is canceled for non-payment by the purchaser, the seller should repay the installments which he received with reservation of his right to a fair amount against utilization of the sold thing in addition to the compensation. 

If it is agreed that the installments shall be for the seller as a compensation, the judge may reduce this conventional compensation as per the circumstances. 

The advanced provisions shall be applied in case where the contract shall be envisaged as if a lease contract and it is agreed that the lessee shall become an owner of the thing on the maturity against payment of the rent agreed upon. 

Branch Three Sale Based on Bonds 

Article 523 

Disengagement of the Seller from the Obligation 

In the sale based on bonds, the seller shall disengage from his obligation by delivery if he presents to the purchaser the bonds which replace the goods and other documents established in the contract. In default of a contract it shall be under the tradition.

Article 524 

Conditions of Payment of the Price 

The price and additions should be paid in the place and time in which the bonds shown in the previous article shall be delivered unless there is an agreement or tradition states otherwise. 

If the bonds are regular, the purchaser shall not refuse payment of the price depending on pleas related to description and condition of the sold things unless already confirmed. 

Article 525 

Sale of Good on Route 

If the sale is related to things still on route and the document delivered to the purchaser included an insurance deed against transportation risks, the purchaser shall bear the risks to the goods with effect from their delivery to the carrier. 

This provision shall not apply if the seller was in knowledge during contracting of the damage or destruction of the goods and concealed thereof from the purchaser in evil intention. 

Article 526 

Payment through the Bank 

When the payment of the price shall be through the bank, the seller shall not claim the purchaser for the price unless the bank insists on rejection and the same are confirmed on submission of the bonds in traditionally approved methods. 

The bank which acknowledged to the seller of the opening of the credit to the purchaser to plea except by shortage or incorrectness of the documents as well as the pleas related to the relation resulting from the acknowledged opening of credit.

Branch Four Deferred Sale of Financial Bonds 

Article 527 

Bonds Addition 

In sale of deferred financial bonds the benefits and dividends of the deferred case after conclusion of the contract shall be calculated in the purchaserís requirements if received by the seller before maturity of the sale. 

If the sale is related to shares, the right of option shall be revered to the seller during delivery. 

Article 528 

Right of Option 

In terms of sold bonds, the right of option shall be for the purchaser. The seller should enable the purchaser to exercise such right if requested to do so at the appropriate time or he shall exercise the same at the expenses of the purchaser if the amount necessary therefore is paid to him. If the purchaser did not present the application, the seller must take care of sale of the right of option of the purchaser expenses through one of the money market clients or one of the exchange institutions. 

Article 529 

Bonds Coupled with Withdrawal of Awards or Depreciation 

If the term sold bonds are coupled with withdrawal of awards or subject to depreciation through withdrawal, the rights and costs resulting from withdrawal shall be returned to the purchaser if the contract is concluded prior to the day declared for withdrawal running. 

The seller must notify the purchaser in writing of the bonds numbers prior at least one day from withdrawal that is for the purpose shown in the previous paragraph only. 

If notice is not given, the purchaser shall have the right to buy a similar quantity of bonds at the sellerís expenses and he should notify the seller prior to commencement of withdrawal.

Article 530 

Unpaid Bonds 

The purchaser should pay to the seller the value of the installments due on the sold bonds before at least two days from the maturity of each installment. 

Article 531 

Extension of Contract Execution Period 

If contracting parties have agreed on maturity to extend the contract execution period, the difference between the original price and the current price on maturity day with observance of the tradition if it is contrary thereto. 

Article 532 

Non-Fulfillment 

In case of non-fulfillment of the term sale of bonds the provisions of articles (510, 511,) shall be respected without prejudice to application of the laws related to contracts of the money market. 

Branch Five Estimation Contract 

Article 533 

Definition 

The estimation contract is a contract under which one of the parties delivers the other party one or more movables and shall undertake to pay its value unless the objects are returned on the fixed time. 

Article 534 

Responsibility of Purchaser for Total Loss of the Sold Object 

The receiver of the objects shall not disengage from his obligation to pay the price if it shall be difficult to return them in full for a reason in which he has no role.

Article 535 

Disposal of the Object 

The dispositions of the receiver of the objects shall be considered valid, but his creditors shall not put him under judicial or payability distress until payment of their price. 

The receiver of the objects shall not dispose thereof except after returning them to him. 

Section Three Importation 

Article 536 

Definition 

The importation is a contract under which a party undertakes to provide objects at intervals or continuously in the favor of the second party against a certain price 

Article 537 

Quantities of Importation 

If the contract did not assign the quantity to be imported, it shall be usually equal to the quantity undertaken by the importing authority, with observance of the time in which the contract is concluded. 

If the contract parties have agreed upon a minimum and maximum of the quantity to be imported all at once or at times, then the importer shall assign the required quantity between the two limits. 

If determination of the quantity required for importation is must regarding the need for assigning the minimum only, then the importer shall accept the quantity which shall satisfy the need if exceeded the minimum. 

Article 538 

Assignment of the Price in Periodical Importation 

In periodical imports, if the assignment of the price is must according to provisions of the law, the maturity of each importation and the location in which it should be executed shall be observed.

Article 539 

Payment 

In periodical imports the price should be settled when effecting each import and its percentage. In continuous imports the price shall be settled as per the usual maturities. 

Article 540 

Importation Term 

The term fixed for each importation shall be considered as if it was fixed in favor of both parties. 

If the importer has the right to fix the term of each import, he should notify the supplier thereof at a sufficient time. 

Article 541 

Non-payment by One of the Two Parties 

In case one of the contracting parties did not pay his obligations regarding one of the imports, the second party may claim for cancellation of the contract, if the nonpayment resulted in a very important matter to him or it was in its nature to upset the belief in supplierís capacity to satisfy his further obligations in a faithful and satisfactory manner. 

Article 542 

Simple Breach 

If the importer breached his obligations simply, the supplier may not suspend execution of the contract except after notifying the importer of a proper time. 

Article 543 

Granting Preference to the Supplier 

The clause under which the importer shall undertake to grant preference to the supplier to conclude a future contract for the same object shall be considered valid as long as the duration of such clause shall not exceed five years. If it is agreed for a long time the same shall be reduced to five years. 

The importer should notify the supplier of the condition offered to him by the third party and the supplier should declare his insistence on utilization of his right to preference and during the fixed term, if any, otherwise the tradition shall be respected.

Article 544 

The Right of Exclusivity to Importation 

If the contract included a provision granting the supply the right of exclusivity to importation, then the second party may not import from the third party any object of the same kind. He shall not produce the object agreed upon to be imported under the contract by special means unless there is another agreement stating otherwise. 

Article 545 

Right of Exclusivity of Sale 

If the exclusivity clause is in favor of the importer, then the supplier shall not supply things of the same kind as set out in the contract to the territory in which the exclusivity has been granted during the contract duration either directly or indirectly. 

The party who has undertaken to sell the things for which he accepted the exclusivity to sell in a certain territory shall be liable for the damages which may occur due to breach of obligation even if he satisfied the contract regarding the minimum quantity agreed upon. 

Article 546 

Unassignment of the importation term 

If no term is assigned for importation either party may disengage from the contract if he submits a prior warning with the assigned term contractually or conventionally or during a term suitable for the nature of importation. 

Article 547 

Implementation of Contracts Provisions 

The rules of the contracts applying to each other obligations as far as they do not contradict the previous provisions, shall be applied to the importation.

Section four Piecework 

Article 548 

Definition 

The piecework is a contract under which one of the contracting parties undertakes to perform a job or service with preparation of all the facilities necessary therefore supervision of the work progress for completion of the work and bearing all its risks against a certain cash wage. 

Article 549 

Subcontracting Piece Work 

The contractor may not subcontract the piece work to another party unless with employerís permission. 

Article 550 

Wage Estimation 

If the two contracting parties did neither fix the wage amount nor assign a method of its fixing, it shall be estimated as per the applicable pricing or the tradition. If it is difficult it shall be estimated by the judge. 

Article 551 

Contractorís undertaking to provide the Materials 

The contractor must provide the materials necessary for performance of his undertaking unless the agreement provides for or the tradition states otherwise. 

Article 552 

Modifications to Work 

The contractor may not introduce modification to the methods agreed upon for work performance unless with employerís permission. 

For the validity of the permission it shall be in written, in case of a permission to introduce modifications, the contractor shall not deserve any compensation therefore or for additions which he performed if he has already fixed the wage of all the work in whole unless there is agreement states 

otherwise.

Article 553 

Judge Authority in Assigning Modifications 

If the execution of the work as per its technical rules requires introduction of modification to the original design and the two parties did not reach an agreement, the judge shall assign the modifications required to be introduced and their consequences as to amendment to price. 

Article 554 

The Extent of the Employerís Right to Modification 

The employer may introduce modifications to the design as far as their value does not exceed one sixth of the total value agreed upon, and the contract shall be entitled to the wage of the additional works performed by him. 

The provisions of the previous paragraph shall not be applied if the modifications result in gross change in the essence of the work or in quantity of each item of the works laid down in the contract for execution of the same work even if they were within the mentioned limits. 

Article 555 

The Right to Have Control over the work Progress 

The employer shall have the right to monitor the work's progress and to confirm their condition of his own expenses. 

If it is proved during the work that its execution does not run as per contract terms or technical rules he shall fix a sufficient time during which the contractor shall implement the contract conditions. 

The contract shall be canceled when the appointed term passes without result and without prejudice to the employerís right to compensation. 

Article 556 

Warning of Materials Defects 

If the contractor discovered during the work defects in materials provided by the employer which in their nature to breach its execution he should immediately warn the employer thereof.

Article 557 

Reconsideration of the Price 

If it is appeared, due to unforeseeable circumstances, that there is rise or drop in materials or manpower costs which in its nature to create an increase or decrease exceeding one tenth of the total price agreed upon, the contractor and the employer may claim for reconsideration of the price itself. This shall not be done except at the percentage of more than one tenth. 

If it is appeared, during the work execution, that there are difficulties due to (geological) or water factors or a like which are unexpected by the two contracting parties and if were in their nature to burden the contractor more than his undertakings, he may have the right to a fair compensation. 

Article 558 

Confirmation of Correctness of the Works 

The employer shall, before taking over the executed work, confirm its conformity with contract conditions and the contractor should enable him to do so. 

If the employer desisted from performance of confirmation due to reasonable reasons or did not notify of its result during a short time in spite of being invited by the contractor to do so, the work shall be considered as acceptable. 

But if he accepted taking over of the work without reservation, it shall be considered as acceptable even if he did not confirm its correctness. The contractor shall have the right to receive his rights for the accepted work unless there is an agreement or tradition states otherwise. 

Article 559 

Confirmation of the Correctness of the works ought to be Executed at Times 

If the work was ought to be executed in parts, each contractor shall have the right to claim for confirmation of the correctness of each part. In this case the contractor may claim for the value of the executed work and with payment of this value, such part of the work is supposed to be accepted unless the payment is on account where such supposition shall be rejected.

Article 560 

Guarantee of Imperfections and Defects by the Contractor 

The contractor is a guarantor for the work imperfections and defects unless accepted by the employer or he was in knowledge of such imperfections or defects or they were apparent. In this latter case the contractor shall be under obligation of the guarantee if he concealed them in bad faith. 

The employer should notify the employer of the imperfections and defects within sixty days of their discovery otherwise his right shall lapse. There is no need for notification if the contractor confessed of the imperfection or defects or concealed them. 

The right to bring a guarantee action shall lapse for the contractor by prescription after two years from the day of work handing over. 

In his litigation, the employer shall stick to his right to guarantee provided that he shall have notified thereof within sixty days from discovery of the defects or imperfections and prior to lapse of two years from the date of the handing over. 

Article 561 

Right to claim for removal of the imperfections or the defects 

The employer may claim for removal of the imperfections and defects at the contractorís expenses or by reducing the price of its percentage without prejudice to the right to compensation for the contractorís error, if any. 

But if the imperfections or the defects were gross to the extent that makes the work invalid for its intended purpose, the employer may claim for contract cancellation. 

Article 562 

Contractorís responsibility for building demolition 

If the contract subject is erection of buildings or other immovable object prepared in their nature to stay long time and wholly or partially demolished within ten years of their completion due to a defect in the ground or a breach in building, also if the risk of destruction apparently appeared or gross defects were confirmed, then the contractor shall be responsible towards the employer or his successor provided that the same shall have been declared within one year from its discovery.

The employer right to claim shall lapse by prescription after one year from the declaration. 

Article 563 

The right of recourse to subcontractors 

If the contractor wants to persist in his right to recourse to the subcontractors, he should notify them of the declaration referred to in the previous article within sixty days from receiving thereof. 

Article 564 

The employerís right to disengage from the contract 

The contractor may disengage from the contract even if he started execution of the work or provision of the service as long as he shall compensate the contractor for the expenses which he has incurred, the works which he has executed and the profit which he lost. 

Article 565 

Impossibility of completion of the piecework 

If the contract is canceled due to impossibility of execution of the work on which it is based for reasons attributed to either party, the employer should pay the value of what is executed in proportion to the benefit returned to him at the portion of the price agreed upon for the whole work. 

Article 566 

Total loss or damage of the work 

If the work is totally lost or damaged prior to its acceptance by the employer or before warning to confirm thereof for a reason not attributed to the contracting parties, the contractor shall bear the result of the same if he has supplied the material. 

But if all or some of the materials are supplied by the employer, he shall bear the result of the total loss or damage in proportion of the materials which he has supplied and the rest shall be borne by the contractor. 

Article 567 

Contractorís death 

The piecework contract shall not be canceled by the contractorís death unless his personality was the essential element on which the contract was base.

The employer may always disengage from the contract if it is confirmed that the successors of the contractor are not trustworthy in execution of the work or performance of the service. 

Article 568 

Employerís obligation in case of contractorís death 

If the contract is canceled due to contractorís death, the employer should pay to his successors the value of the executed works on the basis of the price agreed upon. He should also pay the expenses spent in the favor of the employer. The employer shall have the right to claim for delivery of the ready 

material and projects in process of execution without prejudice to the rules of protection of the intellectual production. 

Article 569 

Employeeís rights 

Those who are employed in execution of the work or provision of the service under the contractorís order may bring a direct lawsuit against the employer to pay their entitlement within the limits of the debt to be claimed by the contractor from the employer at the time of bringing of their lawsuit. 

Article 570 

Provisions to be applied 

If the piecework is related to provision of continuous work or periodical services, the provisions of this section and the section of the supply contracts shall be observed as long as they did not conflict with it. 

Section Five Transportation 

Chapter One General Provision 

Article 571 

Definition 

Transportation is a contract under which the carrier or objects from a place to another against a wage.

Article 572 

Conclusion of transportation contract 

The transportation contract and the commission agency contract for transportation once the agreement is reached. The contract may be confirmed by all the legally established confirmation methods. 

Receiving the objects subject of the transportation by the carrier shall be considered as acceptance of the affirmation issued by the consignor. 

Also the mounting of the passenger on the means of transportation shall be considered as acceptance of the affirmation issued by the carrier unless if confirmed that the intention of the passenger is not directed to conclusion of the transportation contract. 

The transportation contract shall be executed once the agreement is reached, unless the two parties agreed explicitly or implicitly to delay it to the delivery time. 

Article 573 

Model contracts 

If the carrier uses more than one model for the contract to be concluded under the model which includes the general conditions, unless it is agreed to follow another model containing special conditions. 

If it is agreed to follow a special model, then the conditions which it contains may not be divided. 

Article 574 

Obligation of the carrier 

Anyone who started individuals or things transportation services on certain lines granted to him under administrative concession shall be under obligation to accept transportation applications within the limits of the normal means available with him as per general provisions of the contract or in which he is authorized and the public is informed thereof. 

If the general provisions of the contract entitled special preferences, the carrier should apply thereof equally between the applicants, with consideration of the special preferences allowable in the general conditions. 

Any agreement contrary to the general condition shall be considered null and void.

Article 575 

What is not considered as a force majeure? 

Out breaking or burning of the means of transportation or their running off of track on which they move or their collision or other accidents attributable to the tools or machines to be use by the carrier in performance of the transportation shall not be as a force majeure in transportation contracts even if it is proved that he has taken the precaution to ensure their serviceability and to prevent the damage which they shall cause. 

Also the accident refers to sudden death of the carrierís subordinates or their affection by physical or mental weakness during the work even if it is proved that the carrier has taken precaution to ensure their physical and mental fitness. 

Article 576 

Break down or deviation of transportation 

The carrier shall not be accountable for compensation of the damage resulting from breakdown of the transportation or deviation from the route assigned to it in case of emergency to extend assistance to any sick or injured person or in risk. 

Article 577 

Provisions to be applied to transportation 

Provision of this section shall be applied also to the sea and air transportation as well as to transportation by railways and post as long as they are not contrary to the maturity time and special laws. 

Article 578 

Deception gross error 

Deception in transportation articles means any act or abstention by the carrier or his subordinate with the aim to create damage. 

The gross error means any act or abstention by the carrier or his subordinates with thoughtlessness coupled with awareness of the damage to be resulted therefrom. 

Article 579 

Carrierís responsibility 

The carrier shall be accountable for his acts and acts of his subordinates which occur during performance of their services.

Any individual to be employed by the carrier for execution of obligation under the transportation contract shall be considered as a subordinate. 

Any clause provides for exemption for his carrier from responsibility for his subordinates acts shall be null and void. 

Chapter Two Transportation of objects 

Article 580 

Statement of the objects intended to be transported 

If the transportation document is executed, it must include, in particular the following data: 

1. Place and date of its execution 
2. Name of the consignor, consignee, carrier and transportation commission agent if any, their home countries and address. 
3. Departure and destination. 
4. Type of the transported object, its weight, size, method of packing, number of parcels and any other statement necessary for identification of the object and estimation of its value 
5. Date fixed for transportation. 
6. Freight and other expenses with the statement of the party who is under obligation to pay the same. 
7. Special agreements related to means and route of transportation conditions of loading and unloading and compensations to be due for total loss or damage or delay of arrival of the object which may be contained in the transportation agreement. 

If execution of the transportation requires certain documents, the consignor should deliver them to the carrier when providing the objects for transportation. The consignor shall bear the damages which may result from his negligence to mention the data or its inaccuracy as well as the results of non-delivery of documents or delivering them with defect. The carrier shall be liable for their loss or abuse.

The contrary of what is set out in the transportation document may be confirmed in all the ways. 

Article 581 

Form of the transportation document 

The transportation document may be executed in the name of a certain person or to his order or the bearer. 

The document shall be circulated according to the rules of transfer if nominal and by circulation of the order and by handling it to the bearer. 

Article 582 

The receipt 

If the transportation document is not executed, the carrier must deliver to the consignor upon his request a receipt signed by him to the effect that the transported object is delivered. 

The receipt must be dated and including the date sufficient for identification of the transported object and the freight. 

Article 583 

Delivery place 

The consignor shall undertake to deliver the object to the carrier in his country unless it was agreed to deliver it in another place. If the transportation requires that the carries should take special preparations, the consignor must notify him thereof in a sufficient time prior to delivery. 

The carrier may ask for opening of the parcels prior to their delivery to verify the correctness of the data mentioned by the consignor. 

If the nature of the object requires special preparation, then the consignor should take care of its packaging in a manner protecting it from total loss or damage and shall not expose the persons or the other objects to be transported with it to damage. 

The consignor shall be responsible for the damages arising out of the defect in wrapping, packing and binding, although the carrier shall be liable for such damages if he accepted to transport thereof with knowledge of the defect. The carrier shall be in knowledge of the defect if it was apparent or which was not concealed to the normal carrier.

The carrier may not negate his responsibility for total loss or damage of one of the objects which he has transported by proving that the damage has arisen out of the defect in wrapping, packing or binding of another object, and any agreement to the contrary shall be considered null and void. 

Article 584 

Freight payment 

The consignor shall undertake to pay the freight and other expenses due to transportation, unless it has been agreed to be borne by the consignee. In this case, the consignor shall be jointly responsible for payment of the freight and expenses. 

The carrier shall not be entitled to the freight of the objects lost due to force majeure. 

Article 585 

Consignorís instructions 

During the existence of the object in possession of the carrier, the consignor may order his to return it to him or to direct it to another person, other than the original consignee or to another place or other instructions provided that he shall pay the freight of the transported objects to the carrier and compensate him for the expenses and damages. 

On condition that the consignor may not use this right in following cases: 

1. If he failed to present the transportation document which he has received from the carrier. 
2. If the object has arrived and the consignee asked for taking over thereof and this right shall pass to the consignee from the time of receiving the transportation document. 

Article 586 

Dispositions of the owner of the object

The owner of the object may dispose thereof by sale or other dispositions during its existence in the possession of the carrier under the transportation document. 

The owner shall bear the consequence of the total loss of the object during transportation and shall recourse to the carrier if there is a reason for recourse.

Article 587 

Instructions relinquishment 

The carrier shall implement the instruction issued to him by the authority which has the right to issue thereof according to article (585) of the law, unless they were contrary to transportation conditions or they were difficult for the carrier to implement or it was in the nature of their implementation to disturb the transportation movement or the value of the object subject of the transportation did not sufficient, to cover the expenses which shall be incurred by the carrier due to implementation thereof. 

In these cases, the carrier should notify the new instructions issuer of his abstention from implementing thereof and the reason for such abstention. The carrier shall be responsible if he refrain from implementation without reason. 

Article 588 

Obligation of the consignee 

The consignee shall bear the obligations arising out of the transportation contract if he explicitly or implicitly accepted thereof, claiming the consignee for delivery of the object under the transportation document or issuance of related instructions after receiving such document shall be considered as an implicit acceptance in a particular manner. 

Article 589 

Shipment of goods 

The carrier shall undertake to ship and stow the object on the means of transport, unless agreed otherwise. 

If it is agreed that the consignor shall ship or stow the goods, the carrier must refrain from transportation if the shipment or stowage has a defect not concealed for the normal carrier. 

Article 590 

Route of transportation 

The carrier should follow the route agreed upon. If no agreement is made on a certain route, the carrier should follow the best one. 

Although the carrier may change the route agreed upon or shall not abide by the shortest route in case of necessity. In this case the carrier shall not be accountable for the delay or other damages arising out of the change of the route unless deception or gross error is confirmed on his part or on the part of his subordinate. The carrier shall have the right also to claim for the additional expenses arising out thereof. 

Article 591 

Responsibility of the carrier for total loss of the object or the delay in its delivery 

The carrier shall be accountable from the time of receiving the object subject of transportation, for its total or partial loss, damage and delay in its delivery. The object shall be considered as totally lost if the carrier did not deliver its or notify the consignee to come for taking delivery of the same within thirty days from expiry of the date assigned delivery or from expiry of the time which shall be taken by normal transportation if he was under the same circumstance, if date is not fixed for delivery. 

Article 592 

Transportation of precious objects 

The carrier shall not be liable for the loss of the money or papa money or jewelry and other precious objects which he is entrusted to transport, except in proportion to the written information submitted by the consignor thereabout at the time of delivery or if it is confirmed that he has knowledge of the same. 

Article 593 

Taking over of the transported object without reservation 

Taking over of the object subject of the transportation without reservation shall lapse the right of recourse to the carrier due to damage or partial loss, unless the consignee confirms the condition of the object and brings a lawsuit against the carrier within ninety days from the delivery date. 

The carrier may not persist in rejecting the lawsuit according to the previous paragraph if it is not confirmed that the loss or the damage is resulted from deception or gross error by the carrier or his subordinates or they were intentionally concealed thereof. 

Confirmation of condition of the object referred to in the first paragraph of this article shall be in the knowledge of the management personnel or an expert to be nominated by an order on a petition.

Article 594 

Non-statement of the value of the object 

If the object is lost or damaged without statement of its value in the transportation document, the compensation shall be estimated on the basis of the actual value of the lost or damaged object at the destination and on the day fixed thereto according to the market prevailing price. If the object has no certain price, its value shall be fixed in the knowledge of the competent court. 

If the value of the thing is shown in the transportation document, the carrier may contest his right to such value and shall confirm the actual value of the object by all means. 

Article 595 

Partial damage to the transported object 

If the damage to the object or its partial loss or delay in its arrival led to its invalidity for the intended purpose and the carrier liability is confirmed, then the compensation applicant may assign the object to the carrier against complete compensation. 

Article 596 

Continuation of transportation beyond the transportation lines 

If the carrier has undertaken the continuous transportation of the object on lines outside the scope of his work by further carriers without getting a transportation document to the authority to which the object is intended to be transported, it is supposed that he did so as if within the scope of surpassing his lines by a shipping or release agent. 

Article 597 

Undertaking by several carriers under one contract 

If several carriers have performed successively one transportation contract, the first carrier shall be liable towards the consignor and consignee for the whole transportation and any considered null and void. 

Each of the carriers next to the first carrier shall not be accountable towards him or towards the consignor or consignee except for the damage to be fallen to his respective part of the transport. If it is impossible to determine the part to which the damage has fallen, the compensation should be distributed among all the carriers in proportion to the entitlement of each of them in the freight. If one of them became insolvent, his share shall be distributed to the others at the same percentage.

The carrier who proved that the damage has fallen to his respective part of the transportation shall be exempted from participation in bearing the responsibility. 

If one of the carriers paid the compensation or officially claimed for he shall have the right to recourse to the other carriers in proportion to the entitlement of each of them in the freight. 

Article 599 

Rights of the previous carriers 

The last carrier shall represent the previous carriers in payment of due of each of them which arising out of the transportation contract and in exercising the right of preference on the transported objects. 

If he failed to pay their dues or to exercise the right of preference he shall be liable towards the previous carriers for the amounts due to them, without prejudice to his right to the lawsuit of recourse to the consignee. 

Article 600 

Reasons of the lack of responsibility of the carrier 

The carrier may not negate his responsibility for total loss or damage or delay in delivering the object unless by confirmation of the force majeure or proper defect in the object or error of the consignor or consignee. 

If he stipulated that he was not responsible for the damage due to a defect in binding the goods, then the consignor or the consignee should have confirmed that the damage did not arise out due to the defect. 

Article 601 

Total loss of the object 

Any clause providing for exemption of the carrier from responsibility for the loss of the object wholly or partially or for its damage shall be considered null and void. 

Any clause which in its nature to make the consignor or consignee under obligation in any capacity whatsoever, to pay all or some of the insurance expenditures shall be considered, in effect, on exemption from responsibility.

Article 602 

Non-combination of compensations 

It shall not be allowable to combine between compensation for total loss and compensation for delay. The compensation for delay in case of partial loss shall not be ruled except for the part which is not totally lost. 

In all the cases, the compensation to be ruled shall be more than what is deserved in case of the total loss of the object. 

Article 603 

Finding of the lost object 

If compensation is paid due to total loss of the object, then found within one year from the date of payment, the carrier should immediately notify the party who received the compensation thereof with information of the condition of the object and inviting him to present for inspection in the place where it was found or the destination according to the option of the party who received the compensation. 

If the party who received the compensation did not send his instruments within fifteen days from the date of receiving the notice or sent instructions, but did not present for inspection on the date fixed by the carrier or presented and refused to recover the object, the carrier may dispose thereof. 

If the party who received the compensation accepted to recover the object, he should return the compensation which he has received after deduction of expenses and the recompense of the damage due to delay in delivering the object 

Article 604 

The extent of carrierís responsibility 

With exception of the intentional error and gross error cases by the carrier or his subordinates, the carrier may. 

1. Stipulate determination of his responsibility for total or partial loss or damage of the object, provided that the compensation agreed upon shall not be less than one third of the goods carried in place and time of their transportation. Any agreement on compensation less than such limit shall be increased. 
2. Stipulated his release from responsibility for delay.
3. The stipulation of release from responsibility or its determination shall be laid down in the transportation document and the carrier shall have notified the consignor thereof. If the transportation contract is executed on printed form, the stipulations shall be clear and written in a manner attracting the attention; otherwise the stipulation shall be considered null and void. 

Article 605 

Carrierís responsibility in special case 

If the object is transported under protection of the consignor or consignee, the carrier shall not be responsible for its total loss or damage except if it is confirmed that an error is committed by him or by his subordinates. 

Article 606 

Decrease of the object 

The carrier shall not be accountable normally for decrease in weight or size of the object according to its nature, during the transportation unless it is proved that the decrease is the result of another reason. 

If the transportation document contains a number of objects divided into groups or parcels, the tolerable decrease shall be fixed on the basis of the weight of each group or each parcel. 

If the weight is assigned separately in the transportation document or it was possible to be assigned. 

Article 607 

Carrierís abidance by discharge 

The carrier shall undertake to discharge the object on its arrival, unless there is an agreement to the contrary. 

The consignee shall recourse directly to the carrier claiming him for delivery and compensation when necessary. 

Article 608 

Breakdown or impossible of transportation 

If commencement or continuation of the transportation is prevented by an obstacle not attributed to the carrier, as well as if a long delay occurred for the same reason, the carrier should immediately ask for instructions of the consignor, and he should take the arrangement necessary for keeping watch over the object which has been delivered to him. 

If the circumstances prevented the possibility of requesting instructions from the consignor or if the instructions were not practical, the carrier may consign the objects in a place prepared for general consignment or in another suitable place to be assigned by the summary judge. But if the objects are fragile, he may sell them according to the law. The carrier should immediately inform the consignor of the consignment or the sale. 

The carrier shall have the right to recover the expenses and if he already started the transportation, he shall have the right also to claim for the freight for the distance which he covered, unless the discontinuity of transportation is attributed to total loss of the objects due to an incidental accident. 

Article 609 

Rights of the consignee 

The right arising out of the transportation contract on the part of the carrier shall be returned to the consignee from the time in which he required delivery of the objects by the carrier if they arrived to the consignee or the date during which they should arrived was lapsed. 

The consignee may not persist on the rights arising out of the contract unless against payment of the carrier dues resulting from the transportation and the other cost. In case of conflict on the value of the due amount, the consignee should deposit the disputed difference with a bank or a trustful person. 

Article 610 

Lack of carrierís responsibility after delivery 

The carrier shall not be accountable for the total loss or damage of the object after delivery to the consignee to be assigned by the judge for consignment of the object unless deception or gross error by the carrier or his subordinate is confirmed. 

Article 611 

Delivery of the objects to the consignee 

The carrier should put the transported objects at the disposal of the consignee in the place, on the date and the methods shown in the contract or the tradition when necessary.

If delivery of the transported object to the consignee in his place is not imperative, the carrier must immediately inform him of their arrival and the time in which he will be able to deliver them. 

Article 612 

Multiplicity of the appointed time 

If the transportation was in lots each of them shall have an appointed time as a deadline for transportation. On the basis of the lots. 

Article 613 

Impossibility Of Delivering The Transported Objects 

If it was difficult to find the consignee or if he refused or delayed in requesting delivery of the transported object, the carrier must immediately request instructions from the consignor and provisions of the article (608) shall apply. 

If the consignees are multiple and a dispute arises between them on their right to receive the objects or the method of its execution. Also if the consignee is delayed in receiving the transported object, the carrier may consign thereof in legal method or sell them to the credit of the party who has right thereto if the object are fragile. 

The carrier must immediately notify the consignor of the consignment or the sale. 

Article 614 

Exceptional case 

The transportation conditions based on supposition of occurrence of an emergent accident always occurred probably due to the means of transportation and its exigencies shall be considered valid. 

Article 615 

Damage estimation 

The damage arising of the loss or damage shall be estimated at the current price of the transportation objects in the place and time in which they shall deliver to the consignee.

Article 616 

Damage verification 

The consignee shall have the right to verify the identification of the transportation objects and their condition before receiving thereof provided that the same shall be at his own expenses. 

If a loss or damage is found, the carrier should pay the expenses. 

Verification of the loss or damage shall be effected in the manner established in the law of procedure with consideration of provisions of the law which stipulates otherwise. 

Article 617 

Carrierís right to receive his dues 

If the carrier has delivered the objects to the consignee and did not receive his debts or other costs and did not request for deposit of the disputed amount, he shall be liable towards the consignor for the amounts due to him, he may not claim the latter for payment of his debts, without prejudice to the bringing the lawsuit against the consignee.

Article 618 

Carrierís right to withhold the object 

The carrier shall have the right to withhold the thing in order to receive the freight, expenses and other amounts which are due to him by the reason of transportation. 

The carrier shall have priority over the price resulting from the object's sale in order to receive the amounts which are due to him by the reason of transportation. In this concern he shall follow the execution procedure on the commercially mortgage objects. 

Article 619 

Prescription of lawsuits arising out of transportation contract 

Any lawsuit arising out of the objects transportation contract shall be prescribed after a lapse of one year starting from the date of delivery of the object to the consignee or to the customs or custodian to be nominated by the judge to consign the object. This article shall apply in case of total loss of the object 

from the date of expiry of the appointed time provided for in the second paragraph of the article (591) of this law.

The carrierís lawsuit to recourse to the successive carriers shall also according to the fourth paragraph of the article (597) of this law with expiry of six months from the date of payment of compensation or from the date of claiming him therefore officially. 

Any one or his subordinates who committed a deception or gross error may not persist in the prescription provided for in this article. 

Chapter Three Transportation of Individuals 

Article 620 

Passengerís obligation 

The passenger shall undertake to pay the freight in the time agreed upon or assigned in the transportation systems or stipulated by tradition. 

He shall be bound by the complete freight even if he desisted from travel, but if the travel is impossible due to death of the passenger or his sickness or other compelling obstacles, the transportation contract shall be canceled. 

He should follow the carrierís instructions related to transportation. 

Article 621 

Non-commencement of transportation due to compelling reasons 

If a force majeure prevented from starting transportation or circumstances emerged prior to its commencement making it dangerous to lives, then the carrier shall not be under obligation to pay compensation by the reason of non-execution of transportation and shall not deserve the freight. 

If the force majeure emerged or the danger to lives during transportation, then the carrier shall not deserve the freight except for the executed part of the transportation. 

Article 622 

Abstention from travel 

If the passenger abstained from travel directly prior to transportation, he should notify the carrier of his abstention before the day appointed for execution of transportation. In cases of necessity the notice may be served on the day appointed for transportation provided that it shall reach before the hour appointed for execution of transportation. 

If the notice is served according to the previous paragraph, then the carrier shall not deserve the freight. 

If the passenger abstained from continuation of transportation after starting thereof he shall be under obligation to pay the freight in full, except if he abstention was for a necessity, then he shall not be bound except by the executed part of the transportation. 

Article 623 

Non-presence of passenger at transportation exact time

Non-presence of the passenger on the appointed time for transportation without prejudice to provisions of the previous article, if the passenger did not present on the time appointed for transportation he shall be under obligation to pay the freight in full. If he has to pay thereof he may execute the transportation on further date unless otherwise agreed or the common tradition is followed otherwise. 

Article 624 

Breakdown of transportation due to the carrier or his subordinates 

If the transportation is broken down by a reason attributable to the carrier or his subordinate or the means which he uses in transportation, the passenger may select another means of transportation. 

In this case the carrier shall bear the expenses of his arrival to the place agreed upon. He has the right to select waiting until returning of transportation movement. In this case he may not be obliged to pay any additional freight, without prejudice to the passenger compensation in both cases if necessary. 

Article 625 

Assignment of the transportation ticket 

The transportation ticket may be assigned before its commencement, unless the ticket is in the passenger name and personal considerations are observed in giving it to him.

Article 626 

Change of transportation class 

If the passenger is compelled to use a place in a class lower than the class shown in the transportation ticket, he may claim the carrier to recover the difference between the freight of the two classes. 

If the passenger paid additional freight against special benefits, he may claim for recovering of such freight if the carrier did not prepare the corresponding benefits. 

Article 627 

Withholding the passengers baggage 

The carrier shall have the right to withhold the passengerís baggage to ensure the freight and other amounts due to him by the reason of transportation. 

The carrier shall have the right if prior on baggage price for payment of the amounts due to him by the reason of transportation. In this concern he shall follow the enforcement procedures on the commercially mortgage objects. 

Article 628 

Carrierís obligation to transport passenger and his baggage 

The carrier shall undertake to transport the passenger and his baggage to the destination on the time agreed upon as mentioned in transportation regulations or the time stipulated by tradition. In default of appointment, the transportation should be effected on the time to be taken by the normal corner if he found under the same circumstances. 

Prior to commencement of the transportation or during the route the carrier may check the passengerís baggage in his presence, if possible so as to verify its conformity with transportation conditions. 

Article 629 

Assurance of passengerís safety 

The carrier shall assure the passengerís safely during execution of the transportation contract and any condition stipulating exemption of the carrier from such assurance shall be null and void. 

The execution of a transportation contract includes the period between commencement of mounting the means of transportation by the passenger in place of departure and his destination. In case of the existence of quays prepared for parking, the means of transportation contract includes the period between entrance of the passenger to the quay in place of departure and getting out of the quay in destination. 

If the matter requires change of the means of transportation on the route the guarantee shall not include the period of the passengerís movement from one means of transportation to another without protection of the carrier or his subordinates. 

Article 630 

The extent of carrierís responsibility 

The carrier shall be accountable for the following: 

1. Delay in arrival.
2. The physical or non-physical damages to be fallen on the transportation contract. 

The carrier may not negate his responsibility for the delay or the physical or non-physical damages to be fallen on the passenger during transportations unless by confirming a force majeure or passengerís error. 

Article 631 

Revocation of stipulation of exemption from responsibility 

Any stipulation provides for exemption of the carrier from wholly or partially responsibility of the physical damages to be fallen on the passenger shall be considered null and void. Any stipulation which in its nature to bind the passenger to pay all or some expenditures of the insurance against carrier responsibility shall be considered as good as exemption from responsibility and any stipulation under which the passenger assigns his rights to the carrier in the insurance against carrierís error. 

Article 632 

Conditions of exemption from responsibility 

With exemption of deception or gross errors cases by the carrier or his subordinates, the carrier may stipulate wholly or partially exemption from responsibility for delay or non-physical damages which may be fallen on the passenger. The condition of exemption from responsibility or its determination should be in writing otherwise it shall be considered null and void. 

If the transportation contract is executed on printed form, the condition must be clear and written in a manner attracting the attention, otherwise it shall be considered null and void.

Article 633 

Protection of the baggage 

The passenger shall protect the baggage and animals which are authorized to be carried with him and the carrier shall not be accountable for their loss or the damages to be fallen on them unless the passenger proved that an error was committed by the carrier or his subordinates. 

The passenger shall be accountable for the damage to be fallen on the carrier or his subordinates or on a third party by reason of the baggage or the animals which he shall carry with him. 

The provision related to transportation of the objects shall apply to transportation of the baggage which shall be delivered to the carrier. 

Article 634 

Obligation of the carrier in case of passengerís death 

If the passenger is dead or affected by a disease during execution of the transportation contract, the carrier shall undertake to take the arrangements necessary to maintain the baggage until their delivery to the concerned persons. One occurrence of the death or the disease the concerned persons shall integer to monitor the arrangements to be taken by the carrier and shall ask him to give them a declaration to the effect that the passengers baggage exist in his possession. 

Article 635 

Successors right to claim the carrier for compensation 

The passengerís successors and his dependents shall, in execution of the support, have the right to bring a liability lawsuit against the carrier to claim him for compensation for the damage which was fallen on their legato or sustainer either the death occurred immediately after the accident or after a period of time from its occurrence.

Article 636 

Prescription of lawsuits arising out of individual transportation contract 

Any lawsuit arising out of the transportation contract shall be prescribed after the lapse of two years. Its subject matter shall be claiming the carrier for compensation for passengerís death or an affliction with physical damages. This article shall apply in the case of death from the date of its occurrence and in the case of physical injury from the date of the accident occurrence. 

Any other lawsuit arising out of the individualís transportation contract shall be prescribed after the lapse of one year. 

This article shall apply from the date appointed for arrival. In default of appointment. It shall be from the date to be taken by the normal carrier in transportation if found under the same circumstance. 

Any one or his subordinate who committed deception or gross error may not persist in the prescription provided for in this article. 

Chapter Four Transportation commission agency 

Article 637 

Definition 

Transportation commission agency is a contract under which the agent undertakes to contract in his name on credit of his mandatory with a carrier for transportation of an object or an individual to a certain destination against a commission to be received from the mandatory. 

If the commission agent assumes transportation by his own means or wholly and partially by means of a third party, the provision of the transportation contract shall be applied to him unless agreed otherwise. 

Article 638 

Obligation of the agent 

The transportation commission agent shall undertake to keen the interest of his mandatory and to implement his instructions particularly what is related to selection of the carrier date of transportation and the route which should be followed.

The agent may not be under obligation to effect insurance on the dispatched objects unless instructed to do so or required by the tradition. 

Article 639 

Cancellation of the representation 

The mandatory may at any time cancel the transportation request prior to conclusion of the transportation contract by the representative, provided that the mandatory shall refund the expenses incurred by the representative and shall compensate him for the work performed by him. 

Article 640 

Responsibility of the commission agent of the transportation 

The commission agent of the transportation shall ensure safety of the passenger and the object. 

In transportation of the objects he shall be liable from the time in which he received the object for its wholly or partially total loss or damage or delay in its delivery. He may not negate his responsibility unless by confirming the force majeure or proper defect in the object or mandatorís error or consignee error. 

In transportation of individuals he shall be liable for delay in transportation and physical or material damages to be fallen on the passenger and he may not negate his responsibility unless by proving the force majeure or error of the passenger. 

In all the cases he shall have the right to recourse to the carrier if necessary. 

Article 641 

Exemption from responsibility 

Any condition provides for exemptions of the commission agent of transportation from responsibility, wholly or partially, for the physical damages fallen on the passenger shall be considered null and void. 

Any condition which in its nature to bind the passenger in any aspect to pay all or some expenditures agreement may be made on total or partial exemption damages to be fallen on the passenger.

Article 642 

Right to recourse 

The mandatory or the passenger shall have direct right of recourse to the carrier to claim him for compensation for the damage arising out of non- execution of the transportation contract or execution thereof in a defective manner or of delay. In this case the commission agent of transportation should be involved in the lawsuit. 

The carrier shall have the direct right to recourse to the mandatory or the passenger to claim him of compensation for the damage which has fallen on him by the reason of execution of the transportation contract. 

Article 643 

Guarantee of the original agent 

The original commission agent is the guarantor of the commission agent who has mediated him, unless the consignor has nominated the mediator agent in his agreement with the original agent. 

Article 644 

Replacement of the carrier 

If the commission agent paid the freight to the carrier he shall replace him in the rights which he has. 

Article 645 

Prescription of lawsuits arising out of the representation 

The provisions provided for in article (619 and 639) of this law shall apply to prescription of lawsuits arising out of the transportation commission agency contract. 

Article 646 

Validity of the agency contract 

With exempting of the provisions provided for previously, the provisions of the commission agency contract shall apply to the transportation commission agency.

Chapter Five Provisions of air transportation 

Article 647 

Definition 

The air transportation means transportation of individuals or baggage or goods by air plane against freight. 

The term of (baggage) means the objects which the passenger may carry with him on the air plane which shall be delivered to the carrier so as to be under his protection during the transportation. This term shall not include the objects which may remain under passengerís protection during the travel. 

Article 648 

Validity provisions of the transportation contract 

The provisions of the international agreements applicable in Great Jamahiriya shall apply to the international air transportation. 

The provisions set out in the section shall apply to the internal air transportation with consideration of the special provisions provided for in the following articles: 

The transportation shall be internal if the two points appointed by agreement of the contracting parties for departure and arrival are located within Great Jamahiriya even if the airplane shall continue its flight after departing the arrival point beyond the Libyan borders. 

Article 649 

Limited responsibility 

The air transportation document should contain an indication to the effect that the transportation is according to provisions of the limited responsibility provided for in article (654) of this law, otherwise the carrier shall refrain from persisting in these provisions. 

The air carrier shall verify that the passengers on board and the loaded goods or which the passengers keep in their possession during the travel satisfy the conditions necessary for mounting on the board or air plane according to applicable legislation.

Article 650 

Carrierís responsibility for damages to the passenger 

The air carrier shall be accountable for the damages which occurs in sale of passengerís death or injuries or another physical damage, if the accident causing the damage was occurred on board the airplane or during existence of the passenger under protection of the carrier or his subordinates within the airport of departure or on board the airplane or within the airport of arrival or in any airport or in another place where the airplane lands optionally or emergently. 

Article 651 

Carrier responsibility for damages to the goods 

The air carrier shall be accountable for the damage which occurs in case of destruction or loss of baggage or goods or their damage, if the accident causing the damage was occurred during the air transportation. 

The air transportation shall include the period in which the baggage or the goods under protection of the carrier or his subordinates during the flight or during the existence of the airports or in any other place on which it landed. 

The air transportations shall not include the period in which the baggage or the goods subject of land or sea or river transportation located outside the airport, except this transportation is necessary for shipping the baggage or goods or delivery thereof or transporting them from an airplane to another in execution of the air transportation contract. 

Article 652 

Responsibility for delay 

The air carrier shall be accountable for the damage that results in delay in arrival of the passenger or the baggage or the goods. The baggage or goods which the carrier did not deliver to the consignee or notifying to the consignee or notifying him to present for taking delivery thereof within thirty from the date of expiry of the date appointed for delivery shall be considered as good as lost. In case of non-appointment, it shall be from the date of expiry of the time taken by the normal air carrier in transportation if found under the same circumstances.

Article 653 

Carrier denial of his responsibility 

The air carrier may not deny his responsibility except by confirmation of the force majeure, or proper defect in the object or error of the consignor or consignee or the passenger. 

If the carrier confirmed one of the reasons mentioned in previous paragraph, the claimant may deny such confirmation by proving that the damage did not occur by such reason or that it was not the only reason in occurrence of the damaged in the proportion of the damage attributable to the reason confirmed by the air carrier. 

Article 654 

Responsibility determination 

In case of transportation of baggage or goods the compensation shall exceed one hundred dinars per kilogram. However if the consignor has submitted during delivery of the baggage or the goods a declaration regarding the special importance which he attaches to their delivery in destination and payment of what is to be required by the carrier as an additional freight there against. The carrier shall abide by payment of the compensation of the rate of the value shown in the declaration except if the carrier proved that such value exceeds the extent of the importance attached by the consignor to the delivery. 

In case of loss, or destruction or damage of a part of a parcel or of its contents, the maximum compensation shall be calculated on the basis of the total weight of the parcel, unless it influences the value of other parcels the weight of such parcels also shall be observed. 

The air carrier shall not be accountable for the objects which shall remain under protection of the passenger during the travel, unless it is proved that an error is committed by the carrier or one of his subordinates. In this case, the compensation amount shall not exceed five hundred dinars (500 LD). 

The provisions set out in the previous paragraphs shall not prejudice what is to be laid down in international agreement organizing the air transportation.

Article 655 

Inadmissibility to persist in responsibility determination 

The air carrier may not persist in responsibility determination if it is proved that the damage was resulted from an act or abstention on the part of the carrier or his subordinates or agents with aim to create damage or a gross error. If the act of the abstention occurred on the part subordinates, it should be proved also that they have been performing the functions at that time. 

Article 656 

The subordinateís right to persist in responsibility determination 

If a compensation lawsuit is brought against one of the carrierís subordinate or one of his agent, he may persist in responsibility determination as provided for in article (654) it is proved that the act which causing the damage was committed by him during performance of his function. 

The total compensation to be obtained from the carrier and his subordinates together should not exceed the mentioned limited, although, the carrierís subordinate may not persist in responsibility determination, if it is proved that the damage was resulted from an act to create damage or gross error. 

Article 657 

Invalidity of condition of exemption from responsibility 

Any condition stipulates exemption of the air carrier from responsibility or determination thereof at less than the limits provided for in article (654). 

Although, this invalidity shall not include the condition which stipulates exemption of the carrier from responsibility or determination thereof in case of total loss or damage of the object subject of transportation by the reason of its nature or proper defect in it. 

Any condition which in its nature to bind the passenger or the consignor or the consignee to pay all or some expenditure of the insurance against the air carrier responsibility and any condition under which the passenger or the consignor or the consignee assigns his rights in insurance against transportation risks to the carrier shall be as good as provision of exemption from responsibility.

Article 658 

Reservation right 

The baggage or the goods shall be delivered without reservation of his associate to deliver them in a good condition and in conformity with transportation documents unless evidence is established to the contrary. 

Article 659 

Protestation 

In case of damage of the baggage or the goods the consignee shall address a protestation to the carrier immediately when the damage is discovered within at most seven days for the baggage and fourteen days for the goods from the date of taking delivery thereof. In case of delay the protestation must be addressed within at most twenty-one days from the day on which the baggage and goods shall be put at disposal of the consignee. 

The protestation should be written down in form of reservation on transportation document on delivery of the baggage or goods in the form of a registered letter with acknowledging receipt to be sent to the carrier on the legal appointed time or by any other recognized means of confirmation. 

The lawsuit of responsibility against the carrier shall not be accepted if the protestation was not addressed n dates provided for in this article except if the claimant proved occurrence of deceit or gross error on the part of the carrier or his subordinate to miss these appointed times or to conceal the truth of the damage fallen to the baggage or the goods. 

Article 660 

Prescription of lawsuits arising out of the air transportation contract 

Any lawsuit arising out of the air transportation contract which its subject matter shall be claiming the carrier for compensation for total loss or damage of the baggage and goods shall prescribe after lapse of one year. This period shall apply in case of partial loss or damage from the date of delivery of the object to the first paragraph of the article (619). In case of total loss from the date of expiry of the appointed time provided for in the second article (652) of this law. 

Any lawsuit arising out of the air transportation contract which its subject matter shall be claiming the carrier for compensation for death of the passenger or affection with physical injuries shall prescribe after lapse of two years. This period shall apply in case of the death from the date of its occurrence and in case of the physical injury from the date of occurrence of the accident. 

Any other lawsuit arising out of the air transportation contract shall prescribe after lapse of one year; this period shall apply from the appointed time for the airplane arrival. In case of non-appointment, the appointed time to be taken by the normal air carrier shall apply if found under the same circumstances. 

Article 661 

Free transportation 

In case of the free transportation, the air carrier shall not be responsible other than the physical injuries, except if proved that an error is committed by him or one of his subordinates or his agents, in this case the carrier shall be accountable within the limits provided for in the article (654). 

The transportation shall be considered free if without recompense and the carrier is not professional in transportation, if he is professional, the transportation shall not be considered free even if without freight. 

Article 662 

Limits of responsibility of the air carrier 

The air carrier shall be responsible within the limits provided for in the article (654) whatsoever the capacity of the opposing parties in responsibility lawsuit and however their number or the amount of the due compensation and whatsoever the bases on which the responsibility lawsuit depends. 

Article 663 

Authority of the airplane pilot 

The airplane pilot shall have the authority over all the individuals existing on it board. 

He has the right to decide ousting of any person or any object which its existence on board of the airplane leads to a danger to its safety or breaches the order on board. 

During the flight he has the right to decide, when necessary, jettison of the objects or some of the objects loaded on board, the airplane or it fuel provided that he shall notify the investor of the airplane of the earliest time. He should start jettison of the low value objects whenever it is possible. The carrier shall be responsible for the loss of the objects which the pilot of the airplane shall decide to jettison for the airplane safety. 

Section Six Commercial mortgage 

Article 664 

Guarantee of the commercial debt 

With consideration of the provisions organizing certain kinds of the commercial mortgage, the provision of this section shall apply to any mortgage to be decided on the transported object in a guarantee of a debt shall be considered commercial for the debitor. 

Article 665 

Enforcement of the Mortgage in respect of a third party 

The mortgage shall not be applicable in respect of the third party except if the possession of the mortgage object passed to the mortgaging creditor or to another person to be nominated by the two contracting parties and remain in possession of the party who taken delivery thereof from them until expiry of the mortgage. 

The mortgaging creditor or the person nominated by the two contracting parties shall be considered as possessor of the mortgaged object in the two following cases: 

1. If it is put at his disposal in a manner making the third party believes that the object has been under his protection. 
2. If he received a deed representing the mortgaged object, and the possessor alone shall be given the right to take delivery of the object. 

Article 666 

Mortgage of rights 

The fixed rights shall be mortgaged in nominal bonds with written instrument in which it shall be laid down that it is as a guarantee and shall be written down in the books of the authority which issued the bond and shall be indicated in the bond itself.

The fixed rights shall be mortgaged in bond to the order with recitation mentioning the value is for guarantee. 

The other unfixed rights shall be mortgaged in nominal bonds or bonds to order by following the procedures and terms regarding transfer of the right. 

The possession of the rights shall be transferred by delivery of the securities confirming thereof. If the bond is deposited with the third party, the delivery of the deposit receipt it shall be considered as delivery of the bond itself, provided that the bond shall be assigned sufficiently in the receipt and the depository shall satisfy with its possession to the account of the mortgaging creditor. 

Article 667 

Writing down of the mortgage 

With consideration of the provisions provided for in the previous article, the enforcement of the commercial mortgaged in respect of the third party shall not be stipulated to be in writing or that the paper on which the mortgage shall be written down is of fixed date. 

The mortgage shall be written down for the contracting parties to confront the third party, in all the methods value of the guaranteed debt. 

Article 668 

Mortgage of the similar and unsimilar property 

If the mortgage resulted in similar property, it shall remain existing even if the mortgaged object is replaces by another of its kind. 

If the mortgaged object is of the unsimilar objects, the mortgagor debitor may return it and replaces it with another, provided for in mortgage contract and the creditor shall admit the substitute, all that without prejudice to third partyís right in good faith. 

Article 669 

Statement of mortgages 

The mortgagee creditor shall deliver to the debitor, if requested, a receipt showing the essence, kind, amount, weight, and other distinguished descriptions of the mortgaged object.

Article 670 

Keeping the mortgage money 

The mortgagee creditor shall under take to take the means necessary for keeping the mortgage object. If such object is a commercial paper and the mortgage object creditor is not considered as its legitimate holder, he should, on its maturity take the procedures necessary for receiving its value, particularly recourse to the judge of summary matter to issue an order addressed to those who are bound by the paper to pay its value to the mortgagee creditor. Those who are bound by the paper shall reserve the rights to protest before him with all the rebuttals which they have towards the mortgagor debitor. 

The mortgagor shall be under obligation to pay all the expenses to be spent by the mortgagee creditor for this sake. 

Article 671 

Use of mortgage rights 

The mortgagee creditor shall undertake to see, to the credit of the mortgagor all the rights related to the mortgaged object and to receive its value profits and other amounts resulting therefrom on their maturity, provided that the amount to be received by him out of the expenditure on maintain the object and on repairs, then from expenses and interests, then from the original debt guaranteed by the mortgage shall be deducted unless the agreement or the law provides for otherwise. 

Article 672 

Payment warning 

With observing of provision of article (670) and the provisions organizing commercial papers, the mortgagee creditor, shall, if the debitor did not pay the debt guaranteed by the mortgage, on its maturity after expiry of seven days from the date of warning them to pay, have the right to request by a petition to the chief of the court of the first instance, an order for sale of whole or some of the mortgaged object. 

Article 673 

Sale order 

The order issued by the chief of the court of the first instance to sell the mortgaged object may not be sell the mortgaged object may not be executed except after lapse of five days from the date of serving notice to the debitor and the warrantor in kind if any, indication of the location of the sale, its date and hour.

If the mortgage is decided on several properties, the mortgagee creditor should have assigned the property on which the sale shall be effected unless otherwise agreed. 

In all the cases, the sale should not include except what is sufficient to pay the creditorís right. 

Article 674 

Sale of the mortgaged property 

The sale may be effected in place and time to be assigned by the chief of the court of the first instance, in public auction unless the chief of the court ordered to followed another method. If the mortgaged object is a bond circulated on paper money market, the chief of the court shall order to be sold on such market in knowledge of one of the brokers. 

The mortgagee creditor shall receive his debt in preference mode as to original debts, interest and expenses from the price resulting from the sale. 

Article 675 

Exposure of the mortgaged object to total loss 

If the mortgaged object is exposed to total loss or damage or its possession entails huge expenditure and the mortgagor does not want other substitute object then each of the creditor and the mortgagor may request the chief of the court of the first instance to give permission for its immediate sale in any manner to be assigned and the mortgage shall be transferred to the price resulting from the sale. 

Article 676 

Reduction of price of the mortgaged property 

If the price of the mortgaged object is reduced on the market in as much as became insufficient to guarantee the debt, the creditor may fix a suitable time to the mortgagor to complete the guarantee. If the mortgagor refuse thereof or if the mortgagor refuse thereof or if the appointed date was expiry without completion of the guarantee, the creditor may enforce on the mortgaged object by following the procedures provided for in articles (672) and (674).

Article 677 

Sale of the mortgaged bond 

If the mortgaged object is a bond which its value was not paid in full, the mortgagor whenever claimed for the unpaid part before at least one day of the maturity, otherwise the mortgagee creditor may follow the procedures provided for in articles (672), (673) and (674). 

Article 678 

Invalidity of possession of mortgages 

Any agreement to be concluded at the time or after determination of the mortgage that gives mortgagee creditor, in case of non-payment of the debt on maturity the right to possess or sell the mortgaged object without consideration of the provisions provided for in articles (672), (673) and (674) shall be considered null and void. 

However after maturity of the debt or installment thereof, it may be agreed that the debitor shall assign the mortgaged object or a part thereof to his creditor in payment of the debit. 

The court also may order for possession of the mortgaged object or a part thereof by the mortgagee creditor in payment of the debt provided that it shall be calculated to him at its value according to estimation of an expert to be appointed by the court. 

Section Seven Consignment in public warehouses 

Article 679 

Definition 

Consignment in public warehouses is a contract under which the consignee undertakes to deliver and keep the goods to the credit of the consignor or the party to whom the ownership or possession thereof shall pass under the bonds which they represent.

Article 680 

Ware house investment licensing 

A public ware house may not be established or invested unless by license of the concern authority to ensure of the capability of the licensing applicant to satisfy the obligations to be required by such activity, particularly his ability to provide the conditions necessary for maintaining the objects consigned with them. 

Article 681 

Ware houses regulation 

The general peopleís committee shall issue, upon request of the concerned authority, a regulation organizing the public ware houses. 

Each public ware house shall draw up a particular statement for organization of its activity to the extent that corresponding with a kind of work in it, the nature of the goods which it shall store and the place in which it exercises its work. Such statement shall include, particularly the mode of fixing the consignment fee. 

Article 682 

Restrictions on consignee 

The consignee may not exercise, in any capacity, either to his credit or to the credit of a third party, a commercial activity having its object the goods of the kind licensed to him to keep in his ware house and issue their representation certificates. 

This provisions shall apply if one partner of the responsible of the ware house investment who own at least (10%) of its capital exercises a commercial activity included in the prohibition provided for above. 

Article 683 

Public ware houses loans 

The public ware houses may give loans guaranteed by mortgaging the goods kept with them and shall deal with debenture bonds which they represent without having the right to give them again in mortgage. 

The consignor may dispose of the consigned goods by sale, mortgage and other disposals under bonds to be issued by the public ware house.

Article 684 

Consigned goods data 

The consignor shall under take to provide the public ware house with correct data on the nature, quantity, type and value of the good. 

The consignee shall have the right to examine the goods delivered to the public ware house to his credit and to take samples therefrom. 

Article 685 

Responsibility of the consignee 

The consignee shall be responsible for keeping and maintaining of the consigned goods in as much as not exceeding then value estimated by the consignor. 

The consignee shall not be accountable for the damage or decrease to the goods if it resulted from a force majeure or goods nature or method of their preparation. 

The consignee shall have the right to request permission of the judge of summary matters to sell the goods if they are subject to fast damage and the side shall assign the method of the sale and disposal of the price. 

Article 686 

Insurance on warehouse 

Anyone who shall invest in a public warehouse should make insurance thereon against fire, risk, with one of the insurance companies such insurance shall include the goods existing in the warehouse to the credit of the third party. 

However, the insurance shall not include the goods consigned in one of the public warehouses existing in an airport or a seaport if the goods are covered also by a maritime or air insurance against fire risk. If the accident occurred during the validity of the air or maritime insurance, such insurance alone shall be applicable in respect of compensation. The goods shall not be covered by insurance on a ware house except after expiry of the air or maritime insurance validity or insufficiency of such insurance to cover the damage. 

Article 687 

Certificate of consignment and mortgage 

The consignor shall relieve a consignment certificate showing his names, profession, home country kind, nature and quantity of the goods and other

data necessary for determining their identification, value and the name of the war house in which they are consigned, name of the company which ensured the goods, if any, and statement of whether the fees and taxes due on them have been paid or not. 

A mortgage bond shall be attached with each certificate of consignment containing all the data mentioned in the consignment certificate, the consignor may divide the goods into several lots, and obtaining consignment certificate and mortgage bond for each lot thereof. 

The public warehouse shall keen a true copy of the consignment certificate and mortgage bond. 

Article 688 

Goods replacement 

If the goods for which the storage certificate and mortgage bond have been given were of the similar objects, they may be replaced by goods of the same nature, kind and description if provided for in the storage certificate and mortgage bond. In this case all the rights and privileges of the certificate or bond holder shall be transferred to the new goods. 

The storage certificate and mortgage bond may be issued on similar goods quantity loose in bulk quantity. 

Article 689 

Storage certificate 

The storage certificate and the mortgage bond may be issued in the consignorís name or to his order. 

If the certificate or the mortgage bonds are for the order of the consignor, he may assign them jointly or severally by circulation. 

Any party to whom the storage certificates or mortgage bond are circulated may claim for registration of the circulation which he obtained with mentioning of his home country in the ware house books. 

Article 690 

Obligation of the party to whom the circulation is passed 

Circulation of the mortgage bond separately from the storage certificate shall result in mortgage report on the goods to the favor of the party to whom the circulation is passed.

The circulation of the storage certificate shall result in transfer of the right of disposal of the goods to the party to whom the circulation is passed. 

If the mortgage bond was not circulated with storage certificate, the party to whom the circulation is passed shall under take to pay the debt guaranteed by the mortgaged bond or to enable the mortgagee creditor to receive his right from goods price. 

Article 691 

Circulation data 

The circulation of the storage certificate and mortgage bond must be dated and included the signature of the circulated. 

If a mortgage bond is circulated separately from the storage certificates, the circulation should include, in addition to the data provided for in the previous paragraph, its date, statement of the guaranteed debt amount in original, interests, and date of its maturity, creditorís name, his profession, home country and signature of the circulation. 

The first party to whom the circulation is passed shall request entry of circulation of the mortgage bond, the data related to circulation in ware house books and official endorsement thereof on mortgage bond. 

Article 692 

Payment of the guaranteed debt 

The holder of the mortgage bond without storage certificate shall have the right to mortgage the consigned goods. 

The holder of the storage certificate separately from the mortgage bond may withdraw the goods provided that he shall pay the debt guaranteed by such bond even before the maturity date. If the holder of the debenture bond is unknown, or is known and disagreed with the debitor on the conditions under which payment shall be made prior to maturity date, the debt should be deposited in original and interests until the maturity date with store house management and its shall be responsible for it. Such deposit shall result in goods release; the withdrawal also shall be restricted on a part of the goods after depositing an amount suitable to such part.

Article 693 

Sale of the mortgage goods 

If the guaranteed debt is not paid on maturity date, the holder of the mortgage bond separately from the storage certificate may claim for sale of the mortgaged goods by following the procedures provided for in this law and related to the commercial mortgage. 

Article 694 

Fulfillment of the rights of the mortgage creditor 

The mortgagee creditor shall receive his right from the goods price by priority over all the creditors after deduction of the following amounts:- 

1. of sale, storage of the goods and other expenses of keeping. 

If the holder of the storage receipt is not present at the time of sale of the goods, the amount is excess of the entitlement of the mortgage bond holder shall be deposited in the district court treasury under jurisdiction of which the warehouse is located. 

Article 695 

Right of recourse 

The mortgage bond holder may not recourse to the debitor or the circulators except after enforcement on the mortgaged goods and confirmation of its insufficiency for debt payment. 

The recourse to the circulators shall be effected within ten days from the date of sale of goods otherwise the holderís right to recourse shall lapse. 

In all the cases, the mortgage bond holderís right to recourse to the circulators shall lapse if he did not start the procedures of enforcement on the mortgaged goods within thirty days from the date of maturity of the debts. 

Article 696 

Right of subrogation 

If an accident occurred to the goods the holder of the storage certificate or mortgage bond, on insurance amount which shall become due on occurrence of such accident, shall have the rights and privileges on the goods.

Article 697 

Loss of storage certificate and debenture bond 

Anyone who lost the storage certificate may request, by a petition from the concern judge of summary matters, an order to take delivery of a copy of the lost bond provided that he shall prove his ownership thereof with presentation of a warrantor. 

On the same condition, anyone who lost a debenture bond may make an order to be issued by the concerned judge of summary matter for payment of the guaranteed debt if such debt became mature. If the debitor did not execute the order, the person to whom the order was issued in his favor shall have the right to claim for sale of the guaranteed goods according to procedures provided for in this law and related to the commercial mortgage, provided that the circulation occurred thereto shall be registered in the warehouse, and shall present a warrantor. The notice of payment shall include all the data of the circulation registered in the books of the public warehouse. 

If the consignor did not recover the goods on expiry of the consignment contract, the consignee may, after warning him, claim for their sale according to procedures provided for in this law and related to the commercial mortgage. 

The consignor shall receive the amounts due to him from the sale price and hand over the rest to the consignor or deposit thereof with court treasury. 

The provision provided for in the previous paragraph shall apply if the consignment contract is of unlimited period and one year is lapsed without claiming for recovering of the goods by the consignor did not express his desire in continuation of the consignment contract. 

Article 699 

Reliving the warrantor from obligation 

The warrantor shall be relived from obligation in case of loss of the storage certificate by expiry of five years without addressing any request to the ware house for recovery of the goods. 

The warrantor shall be relived from obligation in case of loss of the debenture bond by expiry of three years from the date of registration of the circulation in the books of the public ware house without taking procedures of enforcement on the goods by party to whom the order was issued.

Article 700 

Penalties 

Unless another law provides for stricter penalty, anyone who established or invested a public ware house contrary to provisions of the article (680) shall be amerced by a fine not less than one thousand dinars and not exceeding five thousand Libyan dinars. 

The court may order for publication of the judgment of conviction or its summary in one of the daily newspapers and to be posted on warehouse gates or on any other place at the expenses of the convicted party. 

In case of judgment by conviction it may order for liquidation of the ware house with nomination of the liquidator and his powers.