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Civil Law

Explanation of Article 173

Explanation of Article 173

This article addresses the provisions of liability-limiting conditions in contractual obligations. It stipulates that it is permissible to agree on exempting the debtor from compensation for damage arising from the non-fulfillment of his contractual obligation or delay therein, except for what results from his fraud or gross error. It is not permissible to agree on exemption from liability arising from a harmful act.

Related To

Article 173

  1. An agreement may be made to exempt a debtor from paying compensation for harm arising from his failure or delay in performing his contractual obligation, unless it is caused by an act of fraud or gross negligence by the debtor.

  2. No agreement may be made to exempt a party from liability for a harmful act.