{"id":1625,"date":"2013-05-23T08:19:26","date_gmt":"2013-05-23T08:19:26","guid":{"rendered":"http:\/\/gerey.hu\/EU\/?p=1625"},"modified":"2019-02-18T15:39:36","modified_gmt":"2019-02-18T15:39:36","slug":"the-most-important-changes-in-light-of-the-new-civil-code","status":"publish","type":"post","link":"http:\/\/gerey.hu\/EU\/the-most-important-changes-in-light-of-the-new-civil-code\/","title":{"rendered":"THE MOST IMPORTANT CHANGES IN LIGHT OF THE NEW CIVIL CODE"},"content":{"rendered":"<p>[et_pb_section fb_built=&#8221;1&#8243; admin_label=&#8221;section&#8221; _builder_version=&#8221;3.0.47&#8243;][et_pb_row admin_label=&#8221;row&#8221; _builder_version=&#8221;3.0.47&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221;][et_pb_column type=&#8221;4_4&#8243; _builder_version=&#8221;3.0.47&#8243; parallax=&#8221;off&#8221; parallax_method=&#8221;on&#8221;][et_pb_text admin_label=&#8221;Text&#8221; _builder_version=&#8221;3.0.98&#8243; background_size=&#8221;initial&#8221; background_position=&#8221;top_left&#8221; background_repeat=&#8221;repeat&#8221;]<\/p>\n<p style=\"text-align: justify;\"><strong>The history of the new Civil Code <\/strong><\/p>\n<p style=\"text-align: justify;\">To summarise the history of the new Civil Code: in 1998, the commission for civil codification (lead by academic Lajos V\u00e9k\u00e1s since 1999) was given the task of preparing the new Civil Code. The concept was elaborated by the beginning of 2002 and was followed by the preparation of the draft code itself. In 2007 the drafting work was taken over by the Ministry of Justice. The Parliament started the debate on the code in the autumn of 2008, and first adopted it in September 2009. In April 2010, however, just a few days before of the entry into force of the first two Books, the Constitutional Court declared unconstitutional and annulled the Act on the entry into force of the new Civil Code, stating that the prescribed \u201cpreparation period\u201d was extremely short. The code was subsequently repealed by the Parliament. The drafting of the new code resumed, once again led by Lajos V\u00e9k\u00e1s, and the Parliament amended several dispositions of the proposal submitted in July 2012.<\/p>\n<p style=\"text-align: justify;\"><strong>The structure of the new Civil Code<\/strong><\/p>\n<p style=\"text-align: justify;\"><em>The new Civil Code of 2013 contains several significant changes compared to the previous Civil Code, adopted in 1959, and subsequently amended over a hundred times. The new Civil Code preserved about half of the text in effect of the previous Civil Code and corrected about a quarter of it, while almost the same amount of the text changed substantially or was completely replaced. In the new Civil Code of eight Books and almost sixteen hundred articles, corporate and family law dispositions, which are currently separately regulated, have also been inserted. <\/em><\/p>\n<p style=\"text-align: justify;\"><em>The Books of the new Civil Code are the following:<\/em><\/p>\n<p style=\"text-align: justify;\"><em>First Book: Introductory provisions;&nbsp;<\/em><em>Second Book: The individual as a subject in law;&nbsp;<\/em><em>Third Book: The legal person;&nbsp;<\/em><em>Fourth Book: Family law;&nbsp;<\/em><em>Fifth Book: Property law;&nbsp;<\/em><em>Sixth Book: Contracts and obligations;&nbsp;<\/em><em>Seventh Book: Law of inheritance;&nbsp;<\/em><em>Eighth Book: Final provisions.<\/em><\/p>\n<p style=\"text-align: justify;\"><strong><u>INTRODUCTORY AND FINAL PROVISIONS&nbsp;<\/u><\/strong><strong><u>(First and Eighth Books)<\/u><\/strong><\/p>\n<p style=\"text-align: justify;\"><strong>Introductory provisions<\/strong><\/p>\n<p style=\"text-align: justify;\">Similarly to the First chapter of the previous Civil Code, the First Book of the new Civil Code contains the \u201eIntroductory provisions\u201d. Reserving&nbsp; a separate chapter for the general, basic rules effecting the overall regulation is a tradition in Hungarian civil law. At the same time, the Introductory Provisions might be of considerable practical importance.<\/p>\n<p style=\"text-align: justify;\">As a preliminary remark it may be stated that the First Book of the new Civil Code on the Introductory Provisions is significantly more concise than&nbsp; the relevant chapter of the previous Civil Code (currently in effect). The following provisions are placed in the First Book of the new Civil Code (which is only six articles in length): 1:1. \u00a7 \u201eThe scope of the Act\u201d, 1:2. \u00a7 \u201eThe interpretation principle\u201d, 1:3. \u00a7 \u201eThe principle of good faith and honesty\u201d, 1:4. \u00a7 \u201eThe principle of reasonable conduct. Chargeability\u201d, 1:5. \u00a7 \u201eThe prohibition of the abuse of the law\u201d, and finally 1:6. \u00a7 \u201eJudicial review\u201d.<\/p>\n<p style=\"text-align: justify;\"><em>Scope<\/em><\/p>\n<p style=\"text-align: justify;\">The most important (substantive) change regarding the scope of the new Civil Code results from its monist approach (i.e. the approach favouring the unity of the legal system). As a consequence of the abovementioned monist approach, several private law areas that, up to this point, were regulated outside of the Civil Code (for example family law or provisions on legal persons) became part of the new Code.<\/p>\n<p style=\"text-align: justify;\"><em>Chargeability<\/em><\/p>\n<p style=\"text-align: justify;\">In civil law relations, following a reasonable conduct that can be expected under the circumstances is still the principle. In this context the most important change is that whilst according to the previous Civil Code the reasonable conduct under the circumstances was the minimum requirement for the duty of care (i.e. the previous Civil Code could only define more stringent requirements by derogation), the new Civil Code&nbsp; may specify either more stringent or more lenient requirements in this respect.<\/p>\n<p style=\"text-align: justify;\"><em>Abuse of the law<\/em><\/p>\n<p style=\"text-align: justify;\">In order to end&nbsp; the confusing conceptual overlap between the unreasonable exercise of rights and the abuse of law, the new Civil Code takes over only parts of the text of the previous Code on the prohibition of the abuse of law.<\/p>\n<p style=\"text-align: justify;\"><em>Judicial review<\/em><\/p>\n<p style=\"text-align: justify;\">There is no longer any reference to arbitration within the Introductory Provisions. However, this omission does not signal that the Code would be opposed to arbitration. (The reason for omitting these provisions is precisely&nbsp;&nbsp; that arbitration as an alternative way of dispute resolution has now become so widely accepted that it is unnecessary to regulate it in detail in the new Civil Code.)<\/p>\n<p style=\"text-align: justify;\"><strong>Final provisions<\/strong><\/p>\n<p style=\"text-align: justify;\">The Final Provisions have been placed in the Eight Book of the new Civil Code and concern the following subjects: (1) Definitions; (2) Entry into force and transitional provisions and (3) Compliance with the law of the European Union. We have to underline that the transitional provisions will be determined by a separate act.<\/p>\n<p style=\"text-align: justify;\"><strong><u>THE INDIVIDUAL AS A SUBJECT IN LAW&nbsp;<\/u><\/strong><strong><u>(Second Book)<\/u><\/strong><\/p>\n<p style=\"text-align: justify;\"><em>Conceptual change<\/em><\/p>\n<p style=\"text-align: justify;\">First of all, let us note that when mentioning individual rights, the new Civil Code uses the expression of <em>individual rights <\/em>which was used in pre-war Hungarian private law, as opposed to the expression of the previous Civil Code,<em> inherent rights<\/em>.<\/p>\n<p style=\"text-align: justify;\"><em>The limitation of capacity<\/em><\/p>\n<p style=\"text-align: justify;\">In the future, the court can no longer limit capacity in general, only in respect of certain categories of activities and for a definite period. When placing someone under guardianship, it is a new requirement to examine the person\u2019s personal circumstances, familial and social relations. (Therefore the court does not only have to examine if the person is capable of properly handling his\/her affairs, but also if his\/her environment and family can offer sufficient help.)<\/p>\n<p style=\"text-align: justify;\"><em>New legal institutions<\/em><\/p>\n<p style=\"text-align: justify;\">In connection with legal capacity, there are several new legal institutions ( even though the first proposal contained more):<\/p>\n<p style=\"text-align: justify;\">The possibility of appointing a <em>\u201esupporter\u201d<\/em> was included as a result of the international cooperation between legal organisations of the handicapped.<\/p>\n<p style=\"text-align: justify;\">By making a <em>\u201epreliminary legal statement\u201d <\/em>persons are entitled to make provisions for the event of their becoming incapacitated. The nature and purpose of the preliminary legal statement is similar to those of the testament, but its content and form also allows settling in advance eventual disputes, as well as property law related and other issues.<\/p>\n<p style=\"text-align: justify;\"><em>Injury fee<\/em><\/p>\n<p style=\"text-align: justify;\">One of the most important novelties of the Second Book of the new Civil Code that may also affect the everyday functioning of companies is the introduction of the injury fee. It will replace the \u201cnon-material damages\u201d of the previous Civil Code awarded for offending someone\u2019s individual rights (in parallel, provisions related to the \u201cnon-material damages\u201d will expire). The person violating any of the below mentioned individual rights, may also be obliged to pay an injury fee as a new sanction.<\/p>\n<p style=\"text-align: justify;\">The individual rights that not only benefit human beings, but also legal persons, if it is consistent with the nature of the protection, are in particular: (1) the right to the prohibition of discrimination, (2) right to integrity and good reputation, (3) the right to personal data, and (4) the right to business secrets including know-how.<\/p>\n<p style=\"text-align: justify;\">It has to be emphasized that the injury fee is due only as a result of the injury itself; the victim does not have to prove having suffered financial or other disadvantages. The injury fee must be determined as a flat fee by the court, while taking into consideration the seriousness of the infringement, the degree of chargeability and the effect of the infringement on the victim and his\/her environment.<\/p>\n<p style=\"text-align: justify;\">As for the practical importance of the injury fee: the new Labour Code provides that the Civil Code also applies in a subsidiary manner to employment relationships, in the absence of specific labour law related provisions. As a result, the application of the injury fee might also be relevant in employment relationships, especially in relation to the injury of good reputation caused by the employee or the employer in connection with the employment relationship, the violation of data protection rights, the violation of business secrets, or the violation of the prohibition of discrimination.<\/p>\n<p style=\"text-align: justify;\"><strong><u>FAMILY LAW<\/u><\/strong>&nbsp;<strong><u>(Fourth Book)<\/u><\/strong><\/p>\n<p style=\"text-align: justify;\"><em>The common-law marriage<\/em><\/p>\n<p style=\"text-align: justify;\">When adopting the new Civil Code, the fiercest debates were generated around family law related provisions, especially those concerning the civil partnerships. Finally the Parliament decided to remove from the family law section the provisions concerning the definition of the civil partnerships, as well as the financial relations between the partners, which became part of the contractual regulations. At the same time a civil partnership will still create family law effects, but only if it exists for at least one year and the partners have a child together.<\/p>\n<p style=\"text-align: justify;\">In addition, the new Civil Code does not include the registered same-sex civil partnership, which is regulated in a separate Act.<\/p>\n<p style=\"text-align: justify;\"><em>Marriage and divorce<\/em><\/p>\n<p style=\"text-align: justify;\">After the couple has announced their intent to get married, one month will still have to pass until the marriage can be concluded, although the original proposal would have made it possible for couples to unite without the abovementioned \u201cwaiting period\u201d.<\/p>\n<p style=\"text-align: justify;\">Regarding divorce, the innovation of the new family law Book is that parents can be obliged to pursue mediation proceedings, in order to facilitate the settlement between the parties. This new provision may play a role in custody disputes between the parents after the divorce has been pronounced. In addition, given the complexity of the property law related legal relationships, the scope of the supplementary matters that the parties have to agree on before they can apply jointly for a divorce will also change.<\/p>\n<p style=\"text-align: justify;\"><em>Other innovations<\/em><\/p>\n<p style=\"text-align: justify;\">In addition to the above mentioned changes, it will be easier to rebut the presumption of paternity, if the presumed father, the mother and the father intending to acknowledge the paternity request it together.<\/p>\n<p style=\"text-align: justify;\">The judges will be given a greater margin of appreciation when awarding custody of the child in the case of a separation.<\/p>\n<p style=\"text-align: center;\"><strong>*<\/strong><\/p>\n<p style=\"text-align: center;\"><strong><em>The newsletter contains general information. Therefore, its content may not be regarded as professional advice or comprehensive information for decision-making. <\/em><\/strong><\/p>\n<p style=\"text-align: center;\"><strong><em>Should you have any further question, we remain at your disposal.<\/em><\/strong><\/p>\n<p>[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On February 11, 2013 the Hungarian Parliament adopted Act V of 2013 on the Civil Code (hereinafter the \u201enew Civil Code\u201d) that is expected enter into force as of March 15, 2014. As a result, this new code will, after more than fifty years, replace Act IV of 1959 (hereinafter the \u201eprevious Civil Code\u201d) as the new civil code regulating the basic property and personal relations of\u00a0 Hungarian citizens.<\/p>\n","protected":false},"author":1,"featured_media":683,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-1625","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/posts\/1625"}],"collection":[{"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/comments?post=1625"}],"version-history":[{"count":5,"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/posts\/1625\/revisions"}],"predecessor-version":[{"id":1747,"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/posts\/1625\/revisions\/1747"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/media\/683"}],"wp:attachment":[{"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/media?parent=1625"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/categories?post=1625"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/gerey.hu\/EU\/wp-json\/wp\/v2\/tags?post=1625"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}