Explanation of Article 477
The article clarifies the ruling in the event that the contractor begins execution and then becomes unable to complete the work due to a reason beyond their control. This scenario only applies if it is stipulated that the contractor must perform the work personally, or if the contract was concluded based on considerations related to the contractor's person; such as being a painter and losing a hand, or a doctor and losing sight, and so on. However, if it is not stipulated that the contractor must work personally and the contract was not concluded based on personal considerations, it is inconceivable that the contractor would be unable to complete the work, as they could delegate the completion to someone else.
If it is stipulated that the contractor must work personally or the contract was concluded based on personal considerations and the contractor becomes unable to complete the work, the contract is automatically dissolved due to the impossibility of execution. The contractor is entitled to the lesser of two values, which are:
The first value: The value of the work completed and the expenses incurred by the contractor for the work that was not completed.
The second value: The value of the benefit returned to the employer.
This compensation is not based on contractual liability; if the contract is dissolved, it has no effect. Rather, the contractor is entitled to it in accordance with the principles of unjust enrichment.
Related To
Article 477
If the contractor commences execution of the work but fails to complete it for a reason not attributable to him, he shall be paid for the completed work and for any expenses he incurs for the uncompleted work to the extent of the benefit accrued to the client.