On 26 September the parliamentary debate began on the new Civil Code, which is due to be the first civil law codex formulated in Hungary under democratic conditions. Before being submitted to Parliament, the new Civil Code was the subject of wide-ranging public and professional consultations, involving the country’s most eminent specialists.

The code will enter into force progressively from 1 January 2014, and it will be the final stage in the renewal of the Hungarian legal system, which also includes the new Fundamental Law and the new Criminal Code.

In the debate in Parliament, Minister of State for Justice Róbert Répássy said that the current Civil Code was fifty years old, and although it had been modified several hundred times, it was the product of an age in which private property only existed within extremely limited boundaries. The new Civil Code will respond realistically to the economic and social changes which have occurred since the political transition of 1989-90.

The creation of the new Civil Code started 14 years ago, and formulation of regulation for individual areas has been carried out with the aid of the most highly-qualified experts. At the end of this process, spanning several government terms, the present administration has put forward a proposal based on the advice and knowledge of recognised specialists in the field.

The aim of the codification has been the creation of a text which is free of contradictions, aids practical application of the law, incorporates judicial practice, and is thoroughly considered in every detail. A basic aim has been a broader interpretation of civil law than has been the case up to now.

The bill for the new Civil Code contains significantly more provisions than the old code, but at the same time its format is more logical and clearer. This clearer structure plays an important role in the consistency of legislation, and thus in reinforcement of legal certainty. The new code embraces legal provisions for the business world, commerce and private individuals.

Modernisation of the code is needed because of social and economic changes, and it provides remedies on those points where feedback from interested parties indicated that practical needs could not be met by the original code’s provisions.

Among the most important new features are those related to family law, company law, mortgage law, the protection of personal rights and inheritance law.

One new feature is that the provisions for family law based on international models (Dutch, Italian and Swiss) are now incorporated in the Civil Code and not in a separate act; this makes it possible for these regulations to be amended in line with rapidly changing social conditions and international expectations. Linked to the Fundamental Law, the Code of Family Law places special emphasis on protection of marriage and the family, and has more content related to the interests of children than the current document.

The bill also places legal capacity on new foundations: in the future courts may not place general limits on legal capacity, but only limit it in a restricted number of cases. This is in contrast to the current Civil Code. Another change which provides a guarantee to people with intellectual disabilities is that it will no longer be possible to limit a person’s legal capacity finally and for that person’s lifetime.

In the new code, the section on legal persons will be incorporated into company law.

See also:

en/ministry-of-public-administration-and-justice/news/first-civil-code-created-under-democratic-circumstances-may-enter-into-force

More on the Civil Code:

en/ministry-of-public-administration-and-justice/news/hungary-s-new-civil-code-finally-conceived-in-a-democratic-environment-is-before-parliament

(Prime Minister's Office)