Hungary is an independent, democratic and constitutional state. It is a parliamentary republic and has a civil law system. Hungary’s legal system accepts the universal rules and regulations of international law and it aligns its internal laws with the obligations assumed under international law.
The codification of the Hungarian Civil Code took place in 1959, however, at that time the Socialist legal system still had influence on the Code.
Certain changes had to be made, as specified in the Constitution, so that the Hungarian Civil Code could align itself to the post-socialist era. These changes generally refer to Hungary’s economy, State Property, guarantees for the right to property and other issues.
Act IV of 1959 governs financial and personal relations between the citizen, the state, the Government and economic and civic organizations. It protects property rights and inherent rights and lawful interests. It also protects all of the ownership forms stipulated in the Constitution.
In exercising rights and fulfilling obligations, all parties must act in good faith and honesty. The Act also prohibits the abuse of rights.
In terms of legal capacity, part two of the Act stipulates that all persons in the Republic of Hungary have legal capacity and are entitled to rights and obligations. Legal capacity is equal regardless of sex, race or religion. Contracts and unilateral statements that limit legal capacity are considered null.
Apart from provisions regarding general persons, Act IV of 1959 stipulates the legal framework for ownership and possession (possession rights, acquisition of ownership, etc.), contract law (general rules, conclusion, representation and other issues) and it also refers to the inheritance law.
As of March 2014 the Civil Law in Hungary has a new Civil Code. The areas of law that have been amended are: family law, company law, law regarding civic organizations. The new Hungarian Civil Code is based on the autonomy of the individual.
Some of the new provisions of the Civil Code include:
Our team of experienced lawyers in Hungary is ready to help you if you are interested in opening a company in Hungary or in need of more legal information and counselling in any legal matter. Contact us for personalized advice.
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