CIVIL CODE OF MONGOLIA

Article 1. Purpose of the Law

1.1. The purpose of the Law shall be to regulate relationship with respect to material and

non-material wealth arising between legal persons.

1.2. Civil legislation shall be based on the principle of ensuring equality and autonomy of

participants to the civil legal relations, sanctity of their property, contract freedom, non-

interference into personal affairs, unlimited exercising of civil rights and fulfillment of

obligations, having violated rights restored and court protection.

1.3. Unless stipulated otherwise by law, this Law shall not be applied for regulating

relationship with respect to material and non-material wealth, subject to regulation by

Administrative Laws including Tax, Budget and Finance or based on administrative

subordination.

Article 2. Civil Legislation

2.1. Civil Legislation shall consist of the Constitution of Mongolia, this Law and other

legislative acts adopted in compliance with them.

2.2. If the International Treaty of Mongolia stipulates otherwise, the International Treaty

shall be observed.

Article 3. Application of Civil Legislation

3.1. Courts shall not apply any law contradicting the Constitution of Mongolia.

3.2. In cases other than the International Treaty stipulating that national legislation should

be adopted, civil legal relations shall be regulated by the International Treaty of Mongolia.

3.3. In case laws other than the Constitution and this Law contradict each other, the

provisions of the Law, which regulates this matter in more details, or in case of absence of

such, provisions of the lately adopted Law shall apply.

3.4. Validity of an invalidated law shall not be restored if the law annulling this law is

invalidated.

3.5. If the Law envisages, the legal acts adopted in compliance with this Law by

Government, other competent government agencies or officials and containing civil legal

norms and enforced publicly, shall be applied.

3.6. Legal acts defining norms shall be applied only in case they replace the legal norms.

3.7. Ignorance about the Law or its misinterpretation shall not serve as a ground for its

non-appliance or exempt from responsibilities stipulated by the Law.

Article 4. Similar application of Civil Law

4.1. Norms of other laws regulating similar relations shall be applied, if the Civil Law lacks

norms regulating a particular relationship.

4.2. In the absence of norms regulating similar relations, the particular relations shall be

regulated in compliance with the civil legal content, principles and commonly accepted

norms.

4.3. Norms regulating particular relationship shall not similarly regulate other relations.

Article 5. Retrospective application (ex post facto) of civil legislation

5.1. Unless stated otherwise in the Law, retrospective application of civil legislation shall be

excluded.

5.2. In case the newly approved legislation damages the rights and legitimate interests of

the parties to the contract, contract terms and conditions shall be valid.

5.3. If parties to the contract agree, the newly adopted legislation with better terms and

conditions shall apply.

Article 6. Objects of civil legal relationship

6.1. In accordance with the grounds and procedure stated in the law, material and non-

material wealth, which could be valued in terms of money in civil circulation, shall be

objects of civil legal relationship.

6.2. Material or non-material rights, action or non-action and information may be objects of

civil legal relations as well.

Article 7. Participants to civil legal relationship

7.1. Citizens, juridical/legal persons and organizations without legal status shall be

participants to civil legal relationship.

7.2. Mongolian and foreign citizens, individuals without citizenship participating in the civil

legal relationship shall be deemed as citizens.

7.3. Aimags, the capital city, soums, districts, as state, administrative and territorial units,

may enter into civil legal relation like other legal entities.

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