Contractual Relationship and Contractual Relationship and Alteration of Private RightsAlteration of Private Rights

Core Subject of Civil RelationshipCore Subject of Civil Relationship

The Concept of Private RightsThe Concept of Private Rights

Meaning of legal relationship or privitiesMeaning of legal relationship or privitiesConcept of private rightsConcept of private rights– German scholar V. Tuhr said: A right is the core concept of privaGerman scholar V. Tuhr said: A right is the core concept of priva

te law and the ultimate abstract expression for diversified life.te law and the ultimate abstract expression for diversified life.– A right is a legal power entitled by law to protect a specific intereA right is a legal power entitled by law to protect a specific intere

st. st.

The function of private rightsThe function of private rights– The function of rights is to protect the extent of individual freedoThe function of rights is to protect the extent of individual freedo

m and to allow individual to organize or create its social life, espm and to allow individual to organize or create its social life, especially to achieve autonomy in private life.ecially to achieve autonomy in private life.

– A right is a subjective law and a law is an objectified right. EnjoyiA right is a subjective law and a law is an objectified right. Enjoying a right is the struggle for the law. (Rudolf von Jhering) ng a right is the struggle for the law. (Rudolf von Jhering)

Classification and System of Private RightsClassification and System of Private Rights

Categorized by their contents or interests protectCategorized by their contents or interests protecteded– Personality rightsPersonality rights

the right to lifethe right to lifethe right to the inviolability and integrity of his personthe right to the inviolability and integrity of his personthe right to the respect of his name, reputation and privacy the right to the respect of his name, reputation and privacy

– Rights arising from obligationRights arising from obligationThe right to claim prestationThe right to claim prestation

– Rights in rem (rights of thing)Rights in rem (rights of thing)– Intellectual property rightsIntellectual property rights– Other rightsOther rights

Classification and System of Private RightsClassification and System of Private Rights

Categorized by their power or function Categorized by their power or function entitled by lawentitled by law– The right of claimThe right of claim– The right of defenseThe right of defense– The right to form a legal relationshipThe right to form a legal relationship– The right to control or to manageThe right to control or to manage

The right of claimThe right of claim

Definition:Definition:– A right of claim is a right entitled a specific person (claA right of claim is a right entitled a specific person (cla

imant) to carry out a specific act (including to do or to imant) to carry out a specific act (including to do or to refrain from doing) . refrain from doing) .

– Subject to extinctive prescriptionSubject to extinctive prescription– A legal ground to launch a litigation.A legal ground to launch a litigation.– Developed by German scholar Winscheid based on thDeveloped by German scholar Winscheid based on th

e concept of e concept of ActioActio under Roman Law. under Roman Law. – The buyer’s right to claim the seller deliver the goods The buyer’s right to claim the seller deliver the goods

sold and the title of goods sold. (ROC Civil Code§348I,sold and the title of goods sold. (ROC Civil Code§348I, Korea Civil Code§568I, Japan Civil Code§560, and C Korea Civil Code§568I, Japan Civil Code§560, and China Contract Law§135)hina Contract Law§135)

The right to defenseThe right to defense

Concept of defenseConcept of defense– Defense can be defined as an opposing or Defense can be defined as an opposing or

denial from a party against the other party denial from a party against the other party when the other party exercises its right.when the other party exercises its right.

Category of defenseCategory of defense– Defense in narrow meaningDefense in narrow meaning

Proposing inexistence of the right of claimProposing inexistence of the right of claim– Contract is never formed.Contract is never formed.– Contract is valid. Contract is valid. – ImpossibilityImpossibility– Failure to acknowledge indeterminate contract. Failure to acknowledge indeterminate contract.

The right to defenseThe right to defense

Proposing extinction of the right of claimProposing extinction of the right of claim– Compensation (set off)Compensation (set off)

Where two persons are reciprocally debtor and creditor of Where two persons are reciprocally debtor and creditor of each other, the debts for which they are liable are extinguiseach other, the debts for which they are liable are extinguished by compensation, up to the amount of the lesser debt hed by compensation, up to the amount of the lesser debt

– confusion confusion Where the qualities of creditor and debtor are united in the Where the qualities of creditor and debtor are united in the same person, confusion is effected, extinguishing the obligsame person, confusion is effected, extinguishing the obligation. Nevertheless, in certain cases where confusion ceasation. Nevertheless, in certain cases where confusion ceases to exist, the effects cease also. es to exist, the effects cease also.

– ReleaseReleaseRelease takes place where the creditor releases his debtor Release takes place where the creditor releases his debtor from his obligation.from his obligation.

– Invalid of right (Verwirkung) Invalid of right (Verwirkung)

The right to defenseThe right to defense– The right to defenseThe right to defense

ConceptConcept– A private right which owns by a individual, not the State. A private right which owns by a individual, not the State.

CategoryCategory– The eternal right to defenseThe eternal right to defense

A defense right arising from extinctive prescription.A defense right arising from extinctive prescription.– The provisional right to defenseThe provisional right to defense

A defense right on reciprocal performance A defense right on reciprocal performance ROC Civil Code Article 264: A party to a mutual contract may refusROC Civil Code Article 264: A party to a mutual contract may refuse to perform his part until the counter-prestation has been performe to perform his part until the counter-prestation has been performed by the other party, except he is bound to perform first.ed by the other party, except he is bound to perform first.

A defense right on A defense right on beneficium excussionisbeneficium excussionisROC Civil Code Article 745: A guarantor may refuse performance tROC Civil Code Article 745: A guarantor may refuse performance to the creditor, so long as the creditor has not filed proceedings for o the creditor, so long as the creditor has not filed proceedings for compulsory execution, against the property of the principal debtor, compulsory execution, against the property of the principal debtor, without results.without results.

Japan Civil Code 453, Korea Civil Code China Contract Law, GerJapan Civil Code 453, Korea Civil Code China Contract Law, German Civil Code 771-773, French Civil Code 2021-2024, Swiss Obliman Civil Code 771-773, French Civil Code 2021-2024, Swiss Obligation Code 495gation Code 495

The right to form a legal relationshiThe right to form a legal relationshipp

Definition:Definition:– A right to create, alter, or extinguish a legal A right to create, alter, or extinguish a legal

relationship upon exercising such a right. relationship upon exercising such a right.

Category: Category: – The right to rescind a contractThe right to rescind a contract– The right to annul a declaration of intentionThe right to annul a declaration of intention– The right to recognize a declaration of intentionThe right to recognize a declaration of intention– The right to deny a declaration of intentionThe right to deny a declaration of intention– The right to choose a subject matter under selective The right to choose a subject matter under selective

obligations.obligations.

Effect of a valid contractEffect of a valid contract

Concept of the rights arising from a contract (Obligation-rConcept of the rights arising from a contract (Obligation-right?)ight?)– the prestation: the right entitle to enjoy the interest of prestationthe prestation: the right entitle to enjoy the interest of prestation– contractual duty: obligationcontractual duty: obligation

Main obligationMain obligation– The seller of a thing is bound to deliver the thing to the buyer and to maThe seller of a thing is bound to deliver the thing to the buyer and to ma

ke him acquire its ownership.ke him acquire its ownership.The seller of a right is bound to make the buyer acquire the right sold. If,The seller of a right is bound to make the buyer acquire the right sold. If, by virtue of such right, the seller can possess a certain thing, he is also by virtue of such right, the seller can possess a certain thing, he is also bound to deliver the thing.bound to deliver the thing.

– The buyer is bound to pay to the seller the agreed price and to accept dThe buyer is bound to pay to the seller the agreed price and to accept delivery of the object sold.elivery of the object sold.

Incidental obligationIncidental obligation

If performed, contractual duty discharged; If performed, contractual duty discharged; if if in defaultin default or breach, it gives rise to or breach, it gives rise to a right to claim dama right to claim damagesages or or the right of rescissionthe right of rescission

QuestionsQuestions

Why is is so important to learn the concept Why is is so important to learn the concept and system of private rights before we get and system of private rights before we get into the rules of contract in civil law into the rules of contract in civil law countries?countries?

What relationship between variations of What relationship between variations of private rights and the structure in the Civil private rights and the structure in the Civil Code?Code?

Rights arising from obligationRights arising from obligation

Obligation (zhai)Obligation (zhai)– A legal relationship that one party can claim tA legal relationship that one party can claim t

he other party to do or not to do specific behahe other party to do or not to do specific behavior.vior.

– Parties: Parties: Obligor (debtor): the person who has engaged to pObligor (debtor): the person who has engaged to perform some obligation.erform some obligation.Obligee (creditor): the person in favor of whom soObligee (creditor): the person in favor of whom some obligation is contracted, whether such obligatiome obligation is contracted, whether such obligation be pay money or to do or not to do something.n be pay money or to do or not to do something.

Private Rights

Owner of Right

Object (subject matter)

of Right

Occurrence, change,

and extinguish of right

Exercise of Right

Juristic Facts(Juristische

Tatsache)

Legal relationship

Legal effect The facts caused legal effect

Juristic Facts

Human conduct others

Legitimate actIllegitimate act

Expressive actNon-expressive

ActTorts

Juristic ActQusai Juristic

Act

Contract

Management of affairs without mandate

Default

RightsPublic right

Private rights

Property right Non-property right

Right of personality

Right of family Status

Right arising from obligation

Right in rem

Intellectual property right

Other property rights

Freedom of assembly, Freedom of speechFreedom of religion

Right to control

Right to claim

Right to form a legal relationship

Right to defense

Classified by its function

Classified by its contents

Juristic Act (Juristic Act (RechtsgeschäftRechtsgeschäft))

DefinitionDefinition– An act by which the party or parties declare An act by which the party or parties declare

their intention of effecting changes in legal their intention of effecting changes in legal relations and to which the law attaches the relations and to which the law attaches the power of producing such changes. power of producing such changes.

– A lawful act composed of a declaration of A lawful act composed of a declaration of intention by which a legal effect in private law intention by which a legal effect in private law arises.arises.

Category of Juristic ActCategory of Juristic Act

Unilateral Juristic Act – Property Act

Obligatory act: – Definition: A juristic act that create an obligation Definition: A juristic act that create an obligation in personamin personam between between

the parties whereby one party is entitled to demand the other party to the parties whereby one party is entitled to demand the other party to perform a particular act.perform a particular act.

– Examples: the establishment of a foundation, the promise of a reward, the issuance of a instrument payable to the bearer

Dispositive Act– Definition: A juristic act that creates or alters Definition: A juristic act that creates or alters a right in rema right in rem that is that is

effective not merely between the parties but also against the world at effective not merely between the parties but also against the world at large.large.

– Examples: Relinquishment of a property right – Status Act: making a will, bequeathment– Act to form legal relationships: rescission of a contract, a notice t

o quit given to a tenant, a notice to recognize juristic act, a promise to offset payment. annulment of a juristic actffset payment. annulment of a juristic act

Category of Juristic ActCategory of Juristic Act

Multilateral Juristic Act – Bilateral Juristic Act (contract; agreement)

Property Act– Obligatory act (Obligatory contract)

Sale, Lease, Gift, Mandate, Loan…– Dispositive Act (Contract regarding the right in rem)

Conveyance of the right in rem, create a lien, create an easement, create a hypothecary right.Assignment of the right arising from obligation or intellectual property right.

Status Act: engagement, marriage, divorce, adoption

– Common Juristic Act: Vote of stock holder in share holder’s meeting, establishment of an association.

QuestionsQuestions

Are there any similarities and differences Are there any similarities and differences between a promise and a declaration of between a promise and a declaration of intention?intention?

Could you describe the relationship Could you describe the relationship between a contract and a declaration of between a contract and a declaration of intention or a contract and a juristic act?intention or a contract and a juristic act?

Constituent elements of formation of Juristic ActConstituent elements of formation of Juristic Act

General requisites for formationGeneral requisites for formation– The PartiesThe Parties

Declarant (offeror as to offer, offeree as to acceptaDeclarant (offeror as to offer, offeree as to acceptance)nce)

– Subject MatterSubject Matter– Declaration of intention Declaration of intention

offer and acceptance; mutual assent.offer and acceptance; mutual assent.

Special requisites for formationSpecial requisites for formation– Delivery of object (real contract), written formaDelivery of object (real contract), written forma

tion (formal contract)tion (formal contract)

QuestionsQuestions

What are the differences between “formation of contract” What are the differences between “formation of contract” and “effectiveness of contract”?and “effectiveness of contract”?What is the reasons behind the dichotomy of “formation What is the reasons behind the dichotomy of “formation ”and ”effectiveness ” of contract ?”and ”effectiveness ” of contract ?If a contract without any consideration has been formed, If a contract without any consideration has been formed, is it an enforceable contact in Civil Law countries? is it an enforceable contact in Civil Law countries? Where the contract is formed but not effect, can the party Where the contract is formed but not effect, can the party claim the other party to carry out the prerequisite claim the other party to carry out the prerequisite elements to effect the contract? elements to effect the contract? If the contract is formed but not effect, is this contract a If the contract is formed but not effect, is this contract a preliminary contract? What is the effect of a preliminary preliminary contract? What is the effect of a preliminary contract? Can you distinguish a main contract from a contract? Can you distinguish a main contract from a preliminary contract?preliminary contract?

Case StudyCase Study

X promised to lend $10,000 for six month X promised to lend $10,000 for six month with interest to Y on Jan 1. At the same with interest to Y on Jan 1. At the same time, X promised to transmit the said time, X promised to transmit the said amount of money to Y’s account at the amount of money to Y’s account at the date of Jan 10. However, X didn’t honor date of Jan 10. However, X didn’t honor his promise due to economic hardship? his promise due to economic hardship?

Rules regarding formation of loan for consumptionRules regarding formation of loan for consumption

Japan Civil Code 587Japan Civil Code 587– A loan for consumption becomes A loan for consumption becomes effective effective when one of the parties receives from when one of the parties receives from

the other party moneythe other party money or other things and or other things and agrees to returnagrees to return things of the same things of the same kind, quality, and quantity. kind, quality, and quantity.

ROC Civil Code ROC Civil Code Article 474Article 474– A contract of loan for consumption is a contract whereby one of the parties shall A contract of loan for consumption is a contract whereby one of the parties shall tt

ransfer ransfer to the other the ownership of money or other fungible things, and the partito the other the ownership of money or other fungible things, and the parties es agree that the latter shall returnagree that the latter shall return things of the same kind, quality and quantity. things of the same kind, quality and quantity.

PRC Contract LawPRC Contract Law– Article 196: A contract for loan of money is a contract whereby the borrower Article 196: A contract for loan of money is a contract whereby the borrower

borrows a sum of money from the lender, and returns the sum borrowed and borrows a sum of money from the lender, and returns the sum borrowed and pays interest thereon at the prescribed time. pays interest thereon at the prescribed time.

– Article 197: A contract for loan of money shall be Article 197: A contract for loan of money shall be in writingin writing, , except where the except where the loan is between natural personsloan is between natural persons who have agreed otherwise. who have agreed otherwise.A contract for loan of money includes terms such as the loan's type, currency, A contract for loan of money includes terms such as the loan's type, currency, purpose, amount, interest rate, term and method of repayment, etc. purpose, amount, interest rate, term and method of repayment, etc.

– Article 210 : A contract for loan of money between natural persons becomes Article 210 : A contract for loan of money between natural persons becomes effectiveeffective at the time the lender tenders the amount of loan to the borrowerat the time the lender tenders the amount of loan to the borrower..

Rules regarding preliminary contract of loanRules regarding preliminary contract of loan

Japan Civil Code art. 589Japan Civil Code art. 589– A preliminary contract to make a loan for consumption shall ceasA preliminary contract to make a loan for consumption shall ceas

e to be effective if one of the parties has subsequently been adjue to be effective if one of the parties has subsequently been adjudged bankrupt.dged bankrupt.

ROC Civil Code Article 475-1ROC Civil Code Article 475-1– Under a preliminary contract to make a loan for consumption, if Under a preliminary contract to make a loan for consumption, if ii

nterest or other remuneration has been agreed uponnterest or other remuneration has been agreed upon for a loan f for a loan for consumption and one of the parties becomes incapability to por consumption and one of the parties becomes incapability to pay after the preliminary agreement constituted, ay after the preliminary agreement constituted, the lender of the the lender of the agreement may revoke such agreementagreement may revoke such agreement..

– Under a preliminary contract to make a loan for consumption, if it Under a preliminary contract to make a loan for consumption, if it is is without remunerationwithout remuneration, the provisions of , the provisions of Article 465-1 shall be Article 465-1 shall be mutatis mutandismutatis mutandis applied applied..

Rules regarding formation of loan for useRules regarding formation of loan for use

ROC Civil CodeROC Civil Code– Article 464: A contract of loan for use is a contract whereby one Article 464: A contract of loan for use is a contract whereby one

of parties of parties shall delivershall deliver a thing to the other, and agrees that the la a thing to the other, and agrees that the latter shall return the thing after gratuitously using it.tter shall return the thing after gratuitously using it.

– Article 465-1: After a preliminary contract to make a loan for use Article 465-1: After a preliminary contract to make a loan for use is constituted, the lender of the agreement may is constituted, the lender of the agreement may revoke such an revoke such an agreementagreement..　　 Unless otherwise the borrower of the agreement Unless otherwise the borrower of the agreement has demanded to perform the agreement and the lender of the ahas demanded to perform the agreement and the lender of the agreement hasn’t revoked immediately.greement hasn’t revoked immediately.

Japan Civil CodeJapan Civil Code– Article 593: A loan for use becomes effective when Article 593: A loan for use becomes effective when one part receone part rece

ives a thing from the other partyives a thing from the other party and agrees to return it after grat and agrees to return it after gratuitously using and taking profits therefrom.uitously using and taking profits therefrom.

The institute to balance the interest betweenThe institute to balance the interest betweencontractual parties in non-onerous Contractcontractual parties in non-onerous Contract

Gift in ROC Civil Code Gift in ROC Civil Code – Article 406: A gift is a contract whereby the parties Article 406: A gift is a contract whereby the parties agragr

eeee that one of the parties delivers his property gratuito that one of the parties delivers his property gratuitously to the other party and the other party usly to the other party and the other party agrees agrees to ato accept it.ccept it.

– Article 408: Article 408: So long as the right of the gift has not beeSo long as the right of the gift has not been transferred to the donee, the donor may revoke the n transferred to the donee, the donor may revoke the giftgift.. 　　 If the thing given has been partially transferred, If the thing given has been partially transferred, the donor may revoke the gift for the portion has not bthe donor may revoke the gift for the portion has not been transferred.een transferred.The provision of the preceding paragraph shall not apThe provision of the preceding paragraph shall not apply to gifts ply to gifts notarized or to gifts made for the discharge notarized or to gifts made for the discharge of a moral obligationof a moral obligation..

Gift in PRC Contract Code Gift in PRC Contract Code – Article 185: A gift contract is a contract Article 185: A gift contract is a contract

whereby the donor conveys his property to whereby the donor conveys his property to the donee without reward and the donee the donee without reward and the donee manifests his acceptance of the gift. manifests his acceptance of the gift.

– Article 186: Article 186: Prior to the transfer of rights to the Prior to the transfer of rights to the gift property, the donor may revoke the giftgift property, the donor may revoke the gift ..The previous paragraph does not apply to any The previous paragraph does not apply to any gift contract the nature of which gift contract the nature of which serves public serves public interests or fulfills a moral obligationinterests or fulfills a moral obligation, such as , such as disaster relief, poverty relief, etc., or any gift disaster relief, poverty relief, etc., or any gift contract which has been notarized. contract which has been notarized.

Gift in Japan Civil Code Gift in Japan Civil Code – Article 549: A contract of gift becomes effectivArticle 549: A contract of gift becomes effectiv

e when one party e when one party declares his intentiondeclares his intention gratuit gratuitously to transfer property of his own to the othously to transfer property of his own to the other party and the other party er party and the other party agrees agrees to accept ito accept it.t.

– Article 550: A contract of gift Article 550: A contract of gift which is not in wrwhich is not in writing may be revoked by either partyiting may be revoked by either party; however, ; however, this shall not apply with regard to any part as tthis shall not apply with regard to any part as to which o which performance has been acceptedperformance has been accepted..

Mutual Assent Delivery

Loan

for Consu-

Mption

Japan

&

ROC

Preliminary agreement Preliminary agreement (revocable)(revocable)

Executed and cannot be revokedExecuted and cannot be revoked

Formed, effective, and executedFormed, effective, and executed

PRCPRC Written Contract required Written Contract required (formed and effective)(formed and effective)

ExecutedExecuted

Within Natural person (Formed, effective, Within Natural person (Formed, effective, and executed)and executed)

Loan Loan

forfor

useuse

ROCROC Preliminary agreement Preliminary agreement (revocable)(revocable)

Executed and cannot be revokedExecuted and cannot be revoked

Formed, effective, and executedFormed, effective, and executed

JapanJapan Formed, effective, and executedFormed, effective, and executed

giftgift ROC & ROC & PRC PRC

Formed and Effective Formed and Effective (revocable)(revocable)

If If notarized or made for the dinotarized or made for the discharge moral obligation scharge moral obligation (ir(irrevocablerevocable))

Executed and cannot be revokedExecuted and cannot be revoked

JapanJapan In writing, formed and In writing, formed and effective effective

ExecutedExecuted

Not in Writing, formed and Not in Writing, formed and effective (revocable)effective (revocable)

ExecutedExecuted

Prerequisites to Validate a Juristic ActPrerequisites to Validate a Juristic Act

The validity of Juristic act The validity of Juristic act – Valid, Void, Avoidable (voidable), Indefinite (uncertain)Valid, Void, Avoidable (voidable), Indefinite (uncertain)

General requisites for validityGeneral requisites for validity– The Parties shall have the appropriate capacity to form (enter intThe Parties shall have the appropriate capacity to form (enter int

o) a juristic act (contract).o) a juristic act (contract).– Subject Matter shall be lawful (illegality), certain (uncertainty), poSubject Matter shall be lawful (illegality), certain (uncertainty), po

ssible (impossibility), and proper (violate public policy and good ssible (impossibility), and proper (violate public policy and good moral)moral)

– Declaration of intention shall be without any defectsDeclaration of intention shall be without any defects..Variances between declaration and intention: mental reservation, mVariances between declaration and intention: mental reservation, malicious collusion, mistake alicious collusion, mistake Involuntary declaration of intention: fraud & duressInvoluntary declaration of intention: fraud & duress

Special requisites for validationSpecial requisites for validation– Register required. A contract subject to a condition precedent or Register required. A contract subject to a condition precedent or

a time limit for its effective.a time limit for its effective.

VoidVoid

ROC Civil Code Article71ROC Civil Code Article71A juridical act which A juridical act which violates an imperative or prohibitive violates an imperative or prohibitive provision of the actprovision of the act is is voidvoid except voidance is not implied except voidance is not implied in the provision.in the provision.ROC Civil Code Article72ROC Civil Code Article72A juridical act which is A juridical act which is against public policy or moralsagainst public policy or morals is is voidvoid..ROC Civil Code Article73ROC Civil Code Article73A juridical act which A juridical act which does not follow the formalitydoes not follow the formality required by the act is void unless otherwise provided by required by the act is void unless otherwise provided by the act.the act.

VoidVoid

ROC Civil Code Article86ROC Civil Code Article86An expression of intent shall not be void for the An expression of intent shall not be void for the expresser did not intend to be bound by it, expresser did not intend to be bound by it, except the fact was known to the other partyexcept the fact was known to the other party..ROC Civil Code Article87ROC Civil Code Article87A fictitious expression of intent made by the A fictitious expression of intent made by the expresser in collusion with other party is voidexpresser in collusion with other party is void, , but the voidance can not be a valid defense but the voidance can not be a valid defense against any bona fide third party.against any bona fide third party.

Avoidable (revoke)Avoidable (revoke)ROC Civil Code Article88ROC Civil Code Article88If the expression was acting under a mistake as tIf the expression was acting under a mistake as to the contents of his expression of intent, or had o the contents of his expression of intent, or had known the situation of affairs, he would not make known the situation of affairs, he would not make the expression; he may revoke the expression; pthe expression; he may revoke the expression; provided that the mistake or the ignorance of the rovided that the mistake or the ignorance of the affairs was not due to his own fault. affairs was not due to his own fault. ROC Civil Code Article92ROC Civil Code Article92An expression of intent which is procured by frauAn expression of intent which is procured by fraud or by duress may be revoked by the expresser.d or by duress may be revoked by the expresser.　　 If the fraud was done by a third party, the expIf the fraud was done by a third party, the expression may be revoked only under the circumstression may be revoked only under the circumstances that the other party knew, or might know tances that the other party knew, or might know the affairs. he affairs.

IndefiniteIndefiniteIncapacity and without approval of guardianIncapacity and without approval of guardian– Contract made by a person limited in capacity to Contract made by a person limited in capacity to

make juridical acts without the approval of his make juridical acts without the approval of his guardian is valid upon the acknowledgement of the guardian is valid upon the acknowledgement of the guardian (ROC Civil Code Article79)guardian (ROC Civil Code Article79)

Disposing other’s property without authorityDisposing other’s property without authority– The disposition of any object which is made by a The disposition of any object which is made by a

person without title is effective only upon the person without title is effective only upon the acknowledgement of the person entitled. (ROC Civil acknowledgement of the person entitled. (ROC Civil Code Article 118)Code Article 118)

Agency without authorityAgency without authority– A juridical act made in the name of an agent by a A juridical act made in the name of an agent by a

person of no authority of agency shall not be effective person of no authority of agency shall not be effective to the principal except it is acknowledged by the to the principal except it is acknowledged by the principal. (ROC Civil Code Article 170)principal. (ROC Civil Code Article 170)

Valid

Indefinite

Avoidable

Void