Encyclopedia of Private International Law
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Encyclopedia of Private International Law

Edited by Jürgen Basedow, Giesela Rühl, Franco Ferrari and Pedro de Miguel Asensio

The role and character of Private International Law has changed tremendously over the past decades. With the steady increase of global and regional inter-connectedness the practical significance of the discipline has grown. Equally, so has the number of legislative activities on the national, international and, most importantly, the European level. With a world-class editor team, 500 content items and authorship from almost 200 of the world’s foremost scholars, the Encyclopedia of Private International Law is the definitive reference work in the field. 57 different countries are represented by authors who shed light on the current state of Private International Law around the globe, providing unique insights into the discipline and how it is affected by globalization and increased regional integration. The Encyclopedia consists of three inter-linked pillars, enhanced by sophisticated search and cross-linking functionality. The first pillar consists of A-Z coverage of the scope and substance of Private International Law in the form of 247 entries. The second pillar comprises detailed overviews of the Private International Law regimes of 80 countries. The third pillar presents valuable, and often unique, English language translations of the national codifications and Private International Law provisions of those countries. This invaluable combination represents a powerful research tool and an indispensable reference resource.
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Hungary

Preliminary Remarks

  • On 11 April 2017, the new Hungarian Private International Law Act (Act XXVIII of 2017), adopted earlier by the Hungarian Parliament, was promulgated (henceforth PILA-2017). (See the text in Volume IV.) The PILA-2017 will enter into force on 1 January 2018 and will fully replace the decree-law of 1979 (PILA) that currently regulates private international law. The adoption of the PILA-2017 was justified by the economic and social changes that occurred since then. The drafting process was based on extensive comparative research and the drafters also paid attention to recent developments in EU private international law.

    The PILA-2017 (like PILA) covers the determination of the applicable law, jurisdiction, recognition and enforcement of foreign decisions as well as other aspects of international civil procedure.

  • The PILA-2017 introduces some changes in comparison to the rules currently in force.

    The General Part deals with certain questions not regulated previously: application of the law of states having more than one legal system, overriding mandatory provisions and changes in the circumstances which determine the governing law. As a novelty, the General Part also contains a general escape clause: if, based on the circumstances of the case, it is obvious that the case is substantially more strongly connected with a law other than the law designated by virtue of the Act, the court may exceptionally apply this law. In addition, a general subsidiary choice of law rule provides that, if the Act does not contain a specific choice of law rule for a legal relationship that is otherwise covered by the Act, the law of the state will apply with which that relationship is most strongly connected.

    The Special Part of the PILA-2017 extends equally to certain issues which were not regulated earlier, such as the (restricted) freedom to choose the applicable law in property matters for spouses and (registered) partners or the determination of the law applicable to illegally exported cultural property.

    Jurisdictional rules as well as the provisions on recognition and enforcement of decisions have been restructured and divided into general and special provisions (such as the rules on matters involving an economic interest and matters concerning family law and personal status).

Law-Decree No 13 of 1979 on Private International Law2

Chapter I General Rules

Purpose and Scope of Application of the Decree-Law

Section 1

The purpose of this Decree-Law is, in the interest of the development of peaceful international relations, to determine:

  • the law of which state is to be applied if a foreign person, asset or right (hereinafter: foreign element) is involved in a civil law, family or labour law legal relationship and the laws of several states would be applicable,

  • the jurisdiction and procedural rules to be followed in a legal dispute containing a foreign element.

Section 2

This Decree-Law does not apply to any question regulated by international treaty.

Legal Qualification

Section 3

  • If the legal qualification of the facts or relationships to be judged in a legal dispute from the aspect of the determination of the applicable law is disputed, the interpretation of the rules and concepts of Hungarian law governs.

  • If Hungarian law does not know a legal institution or knows it with different content or under another name and it wcannot even be determined by the interpretation of the rules of Hungarian law, in the legal qualification the foreign law regulating the legal institution must also be taken into consideration.

Reference Back to the Applicable Law

Section 4

If, pursuant to this Decree-Law, foreign law is to apply, the rules of the applicable foreign law directly settling the question concerned shall govern. If, however, the foreign law refers back to Hungarian law in the question concerned – taking into account this rule – Hungarian law shall apply.

Establishment of the Content of Foreign Law

Section 5

  • The court or other authority inquires into a foreign law not known to it ex officio, if necessary, obtains an expert opinion and may also take into consideration the evidence submitted by a party.

  • At the request of the court or other authority, the minister in charge of justice provides information on foreign law.

  • p. 3288If it is impossible to establish the content of foreign law, Hungarian law shall apply.

Reciprocity

Section 6

  • Unless otherwise provided by law, the application of foreign law does not depend on reciprocity.

  • If a law renders the application of foreign law dependent upon reciprocity, the existence of reciprocity will be presumed until the contrary is proved. If a law requires proof of reciprocity, the minister in charge of justice provides a statement binding upon the court and other authorities regarding the existence of reciprocity.

Disregard of the Application of Foreign Law

Section 7

  • The application of foreign law must be disregarded if it violated Hungarian public order.

  • The application of foreign law cannot be disregarded merely because the social and economic system of the foreign state differs from the Hungarian one.

  • In place of the disregarded foreign law, Hungarian law shall apply.

Section 8

  • A foreign law which is connected to a foreign element created by the parties artificially or by simulation for the purpose of circumventing the law otherwise applicable may not be applied (fraudulent connection).

  • In case of fraudulent connection, the law otherwise applicable in accordance with this Decree-Law shall apply.

Section 9

If the parties request disregard of the foreign law applicable in accordance with this Decree-Law together, in its place Hungarian law – or in case of the possibility of choice of law, the law chosen – shall apply.

Chapter II Persons

Human being as Subject of Law

Section 10

  • An individual’s legal capacity, disposing capacity and, in general, his personal status and personal rights shall be adjudged according to his personal law.

  • Regarding the bearing of a name, the individual’s personal law shall apply. Upon request of the person concerned, in the course of the registration of a birth name the law of that other state shall apply of which citizenship is also held by him; in this case Subsection (2) of Section 11 shall not apply.

  • Regarding claims arising from the violation of personal rights, the law applicable in the place and at the time of the violation of rights shall apply; if, however, Hungarian law is more favourable to the injured person in respect of the damages or reparation, the claim shall be adjudged according to this law.

Section 11

  • An individual’s personal law is the law of the state of his citizenship. A change in citizenship does not affect the former personal status and the rights and obligations created on the basis thereof.

  • If a person has multiple citizenships and one of his citizenships is Hungarian, his personal law is Hungarian law.

  • p. 3289The personal law of a person who has multiple citizenships none of which is Hungarian, as well as the personal law of a stateless person, is the law of the state in whose territory his domicile is located, or Hungarian law if he also has a domicile in Hungary. The personal law of a person having multiple domiciles abroad is the law of the state with which he has the closest relationship.

  • If a person’s personal law cannot be established on the basis of the previous subsections and he has no domicile, his personal law will be determined by his habitual place of residence. The personal law of someone having more places of habitual residence one of which is in Hungary shall be Hungarian law.

Section 12

  • Domicile is the place where someone lives permanently or with the intention of settling there.

  • The place of habitual residence is the place where someone stays for a longer period of time without the intention of settling there.

Section 13

Regarding the personal status of a person enjoying the right of asylum in Hungary, Hungarian law will apply; this provision does not affect the former personal legal status and the rights and obligations created on the basis thereof.

Section 14

  • Regarding economic activity, producer or trading (hereinafter: economic) quality of a private person, the law of that state shall apply in whose territory the economic operation was authorised.

  • If the authorisation of the economic operation was not required or the operation was authorised in several states, regarding the economic quality the law of that state shall apply, in whose territory the central administration of his economic activity is located.

Section 15

  • Regarding the legal capacity and disposing capacity of a foreign citizen and a stateless person as well as to his personal and property rights and obligations, the same rules shall apply as to domestic persons, unless otherwise provided by law.

  • A non-Hungarian citizen who has no disposing capacity or has restricted disposing capacity according to his personal law shall be regarded as a person having disposing capacity in terms of his property transactions concluded in Hungary within the sphere of covering the usual needs of every-day life if he would have disposing capacity according to Hungarian law.

  • A non-Hungarian citizen who has no disposing capacity or has restricted disposing capacity according to his personal law but would have disposing capacity according to Hungarian law shall be regarded as a person having disposing capacity also in terms of his other property transactions if the legal consequences of the transaction are to arise in Hungary.

Section 16

  • Regarding a declaration of death or a missing person as well as establishing the fact of death, the law which was the missing person’s personal law shall apply.

  • If a Hungarian court declares a non-Hungarian citizen dead or missing or establishes the fact of the death of such a person for domestic legal interest, Hungarian law shall apply.p. 3290

The State as Subject of Law

Section 17

  • Regarding the legal relations of the Hungarian state falling under the scope of application of this Decree-Law, its own law shall apply, unless

    • the state expressly consented to the application of foreign law, or

    • the legal relation concerns immovable property located abroad owned or intended to be acquired by the state, or

    • the legal relation concerns participation in an economic organisation of foreign interest.

  • Subsection (1) may only apply to a foreign state in case of reciprocity.

Legal Persons

Section 18

  • The legal capacity, economic quality, personal rights of a legal person and the legal relationships between the members thereof shall be adjudged according to its personal law.

  • The personal law of a legal person is the law of that state in whose territory the legal person was incorporated.

  • If a legal person is incorporated according to the laws of more than one state, or no incorporation is required according to the law applicable at the place of the seat indicated in the statute, its personal law shall be the law applicable at the place of the seat indicated in the statute.

  • If a legal person has no seat according to its statute, or has several seats and is not incorporated in accordance with the law of any of those states, its personal law shall be the law of that state in whose territory its central administration is located.

  • [Repealed]

Chapter III Intellectual Property Law

Copyright Law

Section 19

Copyright shall be adjudged according to the law of that state in whose territory the protection is claimed.

Industrial Property Right

Section 20

  • An inventor and his legal successor shall receive protection according to the law of the state and in the state in which the patent was granted or where the application was made.

  • The rule contained in Subsection (1) also duly applies to other industrial property rights (industrial design right, trade mark, etc.).

Chapter IV

Property Law and Other Rights in Rem

Section 21

  • Unless otherwise provided by this Decree-Law, the law applicable at the place of the location of a thing shall apply to the property right and other rights in rem as well as to pledge (mortgage, lien) and possession.

  • The law applicable at the place of the location of a thing is the law of that state in whose territory the thing is located at the time of the emergence of the fact giving rise to the legal effect.p. 3291

Section 21/A

Regarding the property right and other rights in rem related to a security registered in a custodial account or to a dematerialized security, the law of that state is to apply in whose territory that securities account or securities custodial account is managed in which crediting was effected on behalf of the proprietor or holder of another right in rem. Where foreign law refers to Hungarian law on the question concerned, such reference shall be disregarded.

Section 22

  • Regarding adverse possession of chattel property, the law of that state shall apply in whose territory the thing was located at the time of the expiry of the period of adverse possession.

  • Adverse possession will not be interrupted by a change in the location of the thing in itself.

Section 23

  • The emergence, existence or termination of rights in rem related to a registered watercraft or aircraft shall be adjudged according to the law of that state under whose flag or other insignia the vehicle is operating.

  • The law of the state of the destination shall apply to rights in rem related to goods in transit. However, regarding the legal effects in rem related to the forced sale, storage or pledging of such things the law applicable at the place of the location of the thing will apply.

  • The personal law of a passenger shall apply to the rights in rem related to objects taken along for the purpose of personal use.

  • If the assets of an undertaking (business) devolve upon a legal successor as a whole, the legal changes in rights in rem – with the exception of such legal changes related to immovable property – shall be adjudged on the basis of the personal law of the legal predecessor.

  • If the ownership of a thing devolves on the basis of a court ruling or through enforcement, regarding the acquisition of rights the law of that state shall apply whose court rules or whose authority proceeds in the enforcement matter.

Chapter V The Law of Obligations

Contractual Obligations

Section 24

The provisions of Sections 25–30 shall apply to those contractual obligations which fall outside the scope of application of Regulation (EC) No 593/2008 of the European Parliament and of the Council on the law applicable to contractual obligations.

Section 25

Regarding a contract, the law chosen by the parties to the whole or only to a part of the contract at the time of conclusion of the contract or later shall apply. The choice will be made expressly or clearly demonstrated by the terms of the contract or the circumstances of the case. In absence of choice of law, the applicable law will be determined in accordance with Sections 26–28.

Section 26

  • Regarding a contract concluded on the stock exchange, in a public tender or at an auction, the law of that state shall apply in whose territory the stock exchange is located or the tender or the auction is held.

  • p. 3292The articles of association shall be adjudged according to the law of that state in whose territory the company pursues its activities. Regarding the articles of association establishing a legal person, the personal law of the legal person shall apply.

Section 27

  • Regarding the existence and extent of an obligation based on security, the law of the place of performance shall apply.

  • The creation, transfer, termination and enforcement of contractual rights and obligations based on a bond issued on the grounds of a public loan shall be adjudged according to the personal law of the issuer.

  • If a security grants the right of disposal over goods, regarding the effects in rem the provisions of this Decree-Law on in rem legal relations shall apply.

  • If a security incorporates a right to membership, the creation, transfer, termination and enforcement of the rights and obligations based on the security shall be adjudged according to the personal law of the legal person.

Section 28

Regarding other contracts, in the absence of choice of law, that law shall apply to which the contract is mostly connected based on the relevant elements of the given contractual relationship.

Section 29

  • The law of the contract extends to all elements of the contractual relationship, in particular, to the conclusion of the contract, material and formal validity, contractual effects, and, unless the parties agreed otherwise or unless otherwise provided by this Decree-Law, to the agreements securing the contract, the set-off, cession and assumption of claims related to the contract.

  • If according to the law governing the contract (Sections 25–28) the contract is considered as not valid for formal reasons, the court shall consider the contract as valid if it is valid according to the law of the state of the proceeding court, or the law of that state in whose territory it was concluded or where the intended legal consequences are to arise.

  • Regarding the prescription of a claim, the law otherwise applicable to the claim shall apply.

Section 30

Unless otherwise provided by this Decree-Law, regarding unilateral declarations the rules relating to contracts shall duly apply.

Section 31

[Repealed]

Non-Contractual Obligations

Section 32

The provisions of Sections 33–34 shall apply to those non-contractual obligations which fall outside the scope of application of Regulation (EC) No 864/2007 of the European Parliament and of the Council on the law applicable to non-contractual obligations.

Section 33

  • Regarding the liability for damage caused outside a contract, the law prevailing at the place and time of the act or omission giving rise to the damage shall apply.

  • If it is more favourable to the person sustaining the damage, the law of that state shall apply in whose territory the damage occurred.

  • If the domicile of the person causing the damage and the person sustaining the damage are in the same state, the law of that state shall apply.

  • p. 3293If, according to the law of the place of the act or negligence giving rise to the damage, the condition of liability is the existence of a fault, the existence of the fault may be established either according to the personal law of the person causing the damage or according to the law of the place of the infringement.

Section 34

  • As to whether the conduct giving rise to the damage constitutes a violation of a traffic or another safety rule, the law of the place of the conduct giving rise to the damage shall apply.

  • If the place of the act or omission giving rise to the damage is a registered watercraft or aircraft, to the damage and the consequences thereof – outside national territory – the law of that state shall apply under the flag or other insignia of which the vehicle was operating at the time of the infringement.

Section 35

[Repealed]

Chapter VI Law of Succession

Section 36

  • Legal relationships of succession shall be adjudged on the basis of the personal law of the deceased at the time of his death. This law shall also govern the question regarding to what extent the acquisition of the estate and the disposition of the expected inheritance is admitted.

  • A last will shall be adjudged on the basis of the personal law of the deceased at the time of his death. A last will and the revocation thereof is formally valid if it complies with Hungarian law, or

    • the law in force at the place and time of the making and revocation thereof, or

    • the law which was the personal law of the deceased at the time of making the last will, the revocation thereof or at the time of the deceased’s death, or

    • the law in force at the deceased’s domicile or habitual place of residence at the time of making the last will, the revocation thereof or at the time of the deceased’s death, or

    • in case of a last will concerning an immovable property, the law prevailing at the location of the immoveable property.

Chapter VII Family Law

Marriage and its Validity

Section 37

  • The substantive legal conditions for the validity of marriage shall be adjudged according to the common personal law of parties to be married at the time of the celebration of marriage. If the personal laws of the parties to be married are different at the time of the celebration of marriage, the marriage is only valid if the substantive legal conditions thereof are satisfied according to the personal law of both parties to be married.

  • Regarding the formal requirements of the validity of marriage, the law in force at the place and date of the celebration of marriage shall apply.

  • [Repealed]

  • The provisions relating to the conclusion of marriage and the validity thereof shall also duly apply to the question of establishing the existence or non-existence of marriage.

Section 38

  • If a non-Hungarian citizen wishes to marry in Hungary, he/she has to prove that there is no impediment to the celebration of marriage according to that person’s personal law. In justified cases, the metropolitan and county government offices may grant exemption from the proof.

  • p. 3294(1a) The proof specified in Subsection (1), or the request for the exemption from the proof is not required if, according to the personal law of the party to be married, no such proof may be issued. Based on the notification from the minister in charge of foreign affairs or from the foreign representation of the given states, the central registry shall publish a list on its website of the states according to whose law no such proof may be issued.

  • The marriage may not be cedlebrated in Hungary if there is an unavoidable impediment to the celebration of marriage under Hungarian law.

  • (3)–(4) [Repealed]

Personal and Property Relations of the Spouses

Section 39

  • Regarding the personal and property relations of the spouses, including the bearing of the spouse’s name and the matrimonial property agreement, the common personal law of the spouses at the time of adjudication shall apply.

  • If the personal laws of the spouses are different at the time of adjudication, their last common personal law, or in the absence of this, the law of that state shall apply in whose territory the spouses had their last common domicile.

  • If the spouses had no common domicile, the law of the state of the proceeding court or another authority shall apply.

  • A change in the personal law of the spouses does not affect the bearing of name established on the basis of the former law and the proprietary effects which came into existence validly, including the matrimonial property agreement.

Dissolution of Marriage

Section 40

Spouses may choose the applicable law in accordance with Articles 5–7 of Council Regulation (EU) No 1259/2010 implementing enhanced cooperation in the area of the law applicable to divorce and legal separation at the latest by the deadline set by the court in the first hearing. The agreement therefor is valid subject to the formal requirements specified in paragraph (1) of Article 7 of the mentioned Regulation.

Section 41

[Repealed]

Registered Partnership

Section 41/A

  • Regarding the coming into existence, validity and legal effects of the registered partnership, provisions of Sections 37–39 shall duly apply, subject to the exceptions specified in Subsections (2)–(4).

  • It is not an impediment to the conclusion of a registered partnership and the validity thereof is not affected if the personal law of the intended registered partner does not recognise the legal institution of registered partnership of same-sex couples, provided that:

    • the intended registered partner having no Hungarian citizenship proves that there would be no impediment to the conclusion of marriage under his/her personal law, and

    • at least one of the intended registered partners is a Hungarian citizen or has domicile in the territory of Hungary.

  • In justified cases, the metropolitan and county government offices may grant an exemption from the proof specified in Point a) of Subsection (2).

  • Regarding the legal effects of the registered partnership, Hungarian law shall apply in the case specified in Subsection (2).p. 3295

Section 41/B

  • Regarding the termination of a registered partnership, the law of that state shall apply:

    • in the territory of which the habitual place of residence of the registered partners is located at the time of filing the action or request for the termination of the partnership; in the absence of this

    • in the territory of which the last habitual place of residence of the registered partners is located if this habitual place of residence was terminated no more than one year before filing the action or request, provided that one of the registered partners still resides in this state at the time of filing the action or request; in the absence of this

    • of which both registered partners were citizens at the time of filing the action or request.

  • If the applicable law cannot be determined based on Subsection (1) as well as in the case specified in Subsection (2) of Section 41/A, the law of the own state of the proceeding court or another authority shall apply.

Family Status

Section 42

  • In the question of the establishment of paternity or maternity and the rebuttal of the presumption of paternity, the personal law of the child prevailing at the time of his birth shall apply.

  • The recognition of a child by the father shall be adjudged according to the personal law of the child prevailing at the time of recognition; the recognition of a child already conceived but not yet born shall be adjudged according to the personal law of the mother prevailing at the time of recognition.

  • The recognition may not be considered as invalid for formal reasons if it is formally valid either according to Hungarian law or according to the law in force at the place and time of recognition.

Adoption

Section 43

  • The conditions of adoption shall be adjudged with joint regard to the personal laws of both the adoptive parent and the person intended to be adopted at the time of adoption.

  • A Hungarian citizen may adopt a non-Hungarian citizen, and a non-Hungarian citizen may adopt a Hungarian citizen with the authorisation of the Hungarian guardianship authority or with the authorisation of a foreign authority subject to the approval of the Hungarian guardianship authority.

  • The guardianship authority may authorise or approve the adoption only if it complies with the conditions determined by Hungarian law.

  • [Repealed]

Section 44

  • Regarding the legal effects of adoption, the termination of adoption and the legal effects thereof, the personal law of the adoptive parent at the time of adoption or termination thereof shall apply.

  • If the personal laws of the adopting spouses are different at the time of adoption or the termination thereof, to the legal effects of adoption and the termination thereof

    • the last common personal law of the spouses, and if there was no such law,

    • the law of that state in whose territory the spouses had common domicile at the time of adoption or termination thereof, or in the absence of this

    • the law of the state of the proceeding court or another authority shall apply.

Legal Relationships between Parents and Child

Section 45

  • Regarding the family law relations between parent and child, in particular, to the name borne by the child, the placement, care, legal representation and management of the child’s assets – with the exception of the maintenance obligation – the personal law of the child shall apply.

  • [Repealed]p. 3296

Application of the Law More Favourable to the Child

Section 46

Regarding the family status of a child having Hungarian citizenship or a child domiciled in Hungary and to the family law relations between him and his parents – with the exception of the maintenance obligation – Hungarian law shall apply provided that it is more favourable to the child.

Maintenance of Relatives

Section 47

[Repealed]

Guardianship

Section 48

  • Regarding the appointment of a guardian and the conditions of the termination of guardianship, the personal law of the person under guardianship shall apply.

  • The extent to which a guardian is required to exercise guardianship shall be adjudged according to the personal law of the guardian.

  • Regarding the legal relations between the guardian and the person under guardianship, including the obligation of the guardian to manage assets and settle, the law of that state shall apply whose authority appointed the guardian; if, however, the person under guardianship is domiciled in Hungary, Hungarian law shall apply, provided that this is more favourable to the person under guardianship.

Conservatorship

Section 49

  • Regarding conservatorship, the rules relating to guardianship shall duly apply.

  • Regarding the legal representation of a person prevented from managing his own affairs and to the ad hoc conservatorship, the law of the state of the authority appointing the conservator shall apply.

Interim Measure

Section 50

If, in the interest of the placement or care of a non-Hungarian citizen domiciled in Hungary, a measure permitting no delay is required, Hungarian law shall apply.

Chapter VIII

Sections 51–53

[Repealed]

Chapter IX Jurisdiction

General jurisdiction

Section 54

  • A Hungarian court may proceed in all cases if the defendant’s domicile or habitual place of residence, in case of a legal person (or a company without legal personality) its seat is located in Hungary, unless its jurisdiction is precluded by this Decree-Law.

  • In the case of an action brought against more than one defendant, a Hungarian court may proceed against all of the defendants if the domicile (seat) or habitual place of residence of at least p. 3297one of the defendants is located in Hungary, provided that the object of the litigation is such a common right or a common obligation that can be adjudged only uniformly, or if the ruling rendered in the lawsuit would affect all the defendants even without their participation in the lawsuit, or if the claims under litigation stem from the same legal relation.

  • In case of a joint action brought against both the principal and the secondary obligor, a Hungarian court may proceed irrespective of the domicile or habitual place of residence of the secondary obligor if the domicile (seat) or habitual place of residence of the principal obligor is located in Hungary.

  • If a Hungarian court has jurisdiction for the adjudication of the action, it may also proceed in respect of the counterclaim.

Special Jurisdiction

Section 55

A Hungarian court may also proceed in legal disputes related to a contract if the place of performance is in Hungary. In applying this Section, the place of performance is the place that was stipulated by the parties in the contract as place of performance; in absence of such stipulation

  • in case of a contract for the sale of goods, the place where the object of the sale is to be delivered;

  • in case of a contract the object of which is the performance of a specific activity, the place where the activity is to be performed in accordance with the contract;

  • in case of other contracts, the place determined by Hungarian law as the place of performance of the disputed claim.

Section 56

[Repealed]

Section 56/A

  • A Hungarian court may also proceed in legal disputes stemming from damage caused outside a contract if the place of the conduct giving rise to the damage or the place of occurrence of the damaging result is in Hungary.

  • In respect of a claim brought in criminal proceedings for the compensation of damage caused by crime, a Hungarian court may proceed if the criminal act constituting the grounds of the procedure falls under Hungarian criminal jurisdiction.

  • In a lawsuit brought for establishing or increasing compensation payments, a Hungarian court may also proceed if the domicile or habitual place of residence of the person entitled thereto is in Hungary.

  • In respect of claims brought because of a danger of damage, a Hungarian court may proceed if the place where the event giving rise to the damage is likely to occur is in Hungary.

Section 56/B

  • In lawsuits brought against a foreign undertaking, a Hungarian court may also proceed if the undertaking has a branch or agency located in Hungary and the legal dispute concerns the activity of the latter.

  • In lawsuits brought against a foreign citizen established in Hungary as an independent entrepreneur, a Hungarian court may also proceed if the legal dispute concerns the domestic economic activity of that person.

Section 57

Against a defendant who has no domicile or habitual place of residence in Hungary, a Hungarian court may proceed in property lawsuits if the defendant has assets located in Hungary on which p. 3298execution may be levied. Any claim due to the defendant shall also be considered as the defendant’s asset located in Hungary if the debtor of the claim is domiciled in Hungary or if the claim is secured by a thing located in Hungary.

Section 58

  • In lawsuits related to legal relation of succession, a Hungarian court may also proceed if the deceased had Hungarian citizenship at the time of his death.

  • A Hungarian notary public may proceed in probate proceedings if the deceased had Hungarian citizenship at the time of his death or if the estate is located in Hungary.

Section 59

  • In proceedings on child placement, the contact between the child and the parent living apart and parental custody, a Hungarian court or another Hungarian authority may also proceed if the child’s domicile or habitual place of residence is in Hungary.

  • In proceedings concerning marital property law or the property matters of registered partners, a Hungarian court may proceed if the domicile or the habitual place of residence of one of the spouses or registered partners is in Hungary.

  • If any of the questions specified in Subsections (1) and (2) is settled in proceedings concerning personal status, a Hungarian court or another Hungarian authority may also proceed if it has jurisdiction over the proceedings concerning the personal status.

Section 59/A

In cases related to the legal relations between a guardian and the person under guardianship and between the conservator and the person under conservatorship, a Hungarian court may also proceed if the person under guardianship or conservatorship is a Hungarian citizen or has his domicile or habitual place of residence in Hungary.

Jurisdiction in Legal Disputes Stemming from Consumer Contracts and Contracts of Employment

Section 60

In lawsuits stemming from a consumer contract, brought by the consumer, a Hungarian court may also proceed if the consumer’s domicile or habitual place of residence is in Hungary and if the party entering into a contract with the consumer, pursuing commercial or professional activity

  • performs activity in Hungary, including if the activities performed elsewhere are directed to Hungarian consumers; or

  • has a branch or agency in Hungary or is a foreign citizen established in Hungary as an independent entrepreneur.

Section 61

In lawsuits stemming from contracts of employment, brought by the employee against the employer, a Hungarian court may also proceed if

  • the habitual place of employment is in Hungary or was last in Hungary; or

  • the place of business of the employee which engaged him is or was located in Hungary provided that the habitual place of employment neither is nor was in the same state.

Section 62

In legal disputes stemming from a consumer contract or a contract of employment, grounds of jurisdiction other than specified in Sections 60 and 61 and Section 54 and the jurisdiction stipulated by parties (Sections 62/F-62/H) may not be relied upon.p. 3299

Exclusive Jurisdiction

Section 62/A

Exclusively, a Hungarian court or another Hungarian authority may proceed

  • in proceedings brought for the enforcement of a right in rem in immovable property located in Hungary and in proceedings concerning a rental and lease agreement;

  • in probate proceedings concerning the estate located in Hungary of a deceased person having Hungarian citizenship;

  • in proceedings brought against the Hungarian State or a Hungarian state organ, unless the Hungarian State has expressly waived its immunity or if the subject matter of the proceedings concerns a legal relation of the Hungarian State or a Hungarian state organ, in respect of which immunity from Hungarian jurisdiction is not even granted to a foreign state according to Subsection (1) of Section 62/E;

  • in proceedings brought against a Hungarian citizen acting as a diplomatic representative abroad or otherwise enjoying jurisdictional immunity, unless the Hungarian State has expressly waived the immunity;

  • in proceedings concerning the annulment of a document or security issued in Hungary;

  • in proceedings related to the granting, the extent and termination of a domestic industrial property right;

  • in proceedings related to the foundation, insolvency and termination of a legal person or a company without legal personality seated in Hungary, in proceedings concerning the validity of the contract or statute (constituting document) on the basis of which the legal person (company) is registered and in proceedings concerning the supervision of the decisions passed by the organs of the legal person (company);

  • in proceedings concerning the entry of rights, facts and data in public registers kept in Hungary;

  • in proceedings concerning an enforcement in Hungary.

Section 62/B

In proceedings concerning the personal status of a Hungarian citizen, a Hungarian court or other Hungarian authority may proceed in all cases. This jurisdiction is exclusive, unless

  • a procedure is brought abroad for the dissolution of marriage or the termination of registered partnership of a Hungarian citizen and the party having Hungarian citizenship, or if both parties are Hungarian citizens, at least one of the parties is domiciled or has his habitual residence in the state of the proceeding court or other authority;

  • a procedure is brought abroad for placing or releasing a Hungarian citizen under or from conservatorship and the domicile or habitual place of residence of the person to be placed or being under conservatorship is in the state of the proceeding court or other authority;

  • a procedure is brought abroad for establishing paternity or the rebuttal of the presumption of paternity concerning a child having Hungarian citizenship and the domicile or habitual place of residence of both the child and the father is in the state of the proceeding court or other authority;

  • a procedure is brought abroad for the termination or restitution of parental supervision concerning a child having Hungarian citizenship and the domicile or habitual place of residence of both the child and the parent whose right of supervision is concerned in the procedure is in the state of the proceeding court or other authority;

  • a procedure is brought abroad for the authorisation or termination of adoption of a Hungarian citizen, provided that the adoptive parent is a foreign citizen and that the Hungarian guardianship authority approved the adoption in accordance with Subsections (2) and (3) of Section 43.p. 3300

Excluded Jurisdiction

Section 62/C

A Hungarian court or another Hungarian authority may not proceed

  • in proceedings brought for the enforcement of a right in rem in immovable property located abroad and in proceedings concerning a rental and lease agreement;

  • in probate proceedings concerning the estate located abroad of a deceased person not having Hungarian citizenship;

  • in proceedings brought against a foreign state or a foreign state organ, unless the foreign state has expressly waived the immunity or if the subject matter of the proceedings concerns a civil legal relation specified in Subsection (1) of Section 62/E of the foreign state or a foreign state organ;

  • in proceedings brought against a foreign citizen acting as a diplomatic representative in Hungary or otherwise enjoying jurisdictional immunity, unless the foreign state has expressly waived the immunity;

  • in proceedings concerning the annulment of a document or security issued abroad;

  • in proceedings related to the granting, the extent and termination of a foreign industrial property right;

  • in proceedings related to the foundation, insolvency and termination of a legal person or a company without legal personality seated abroad, in proceedings concerning the validity of the contract or statute (constituting document) on the basis of which the legal person (company) is registered and in proceedings concerning the supervision of the decisions passed by the organs of the legal person (company);

  • in proceedings concerning the entry of rights, facts and data in public registers kept abroad;

  • in proceedings concerning an enforcement abroad.

Section 62/D

  • In proceedings concerning the personal status of a person having no Hungarian citizenship, a Hungarian court or another Hungarian authority may not proceed, with the exceptions specified in Subsections (2) and (3).

  • In lawsuits between persons having no Hungarian citizenship concerning personal status, a Hungarian court may proceed if the domicile or habitual place of residence of one of the parties is in Hungary.

  • Regarding a declaration of a person having no Hungarian citizenship dead or missing or to establish the fact of death, a Hungarian court may proceed if the last known domicile or habitual place of residence of the missing person was in Hungary and some domestic legal reason – in particular, the existence of a marriage or registered partnership of the missing person with a spouse or registered partner having Hungarian citizenship or a domicile in Hungary or the settlement of the legal fate of such person’s property located in Hungary – renders it necessary to declare the person dead, missing or to establish the fact of death.

  • In proceedings for the authorisation or termination of adoption of a person having no Hungarian citizenship, a Hungarian court or another Hungarian authority may proceed if the adoptive parent is a Hungarian citizen or if his domicile or habitual place of residence is in Hungary.

Section 62/E

  • In proceedings brought against a foreign state or a foreign state organ, a Hungarian court or other Hungarian authority has jurisdiction if the subject matter of the procedure

    • is a right or obligation of the foreign state (foreign state organ) stemming from a contract under civil law if the place of performance of the contract is in Hungary; unless the other party is another state or state organ thereof;

    • is a right or obligation stemming from a contract of employment or another legal relationship for carrying out work entered into between a foreign state (foreign state organ) and a natural person p. 3301having Hungarian citizenship or domicile in Hungary, provided that the place of employment is or was last in Hungary; unless the employee is a citizen of the foreign state that employs him;

    • is a claim brought against the foreign state (foreign state organ) on the grounds of injury caused to life, health, physical integrity or property, provided that the event giving rise to the damage ocurred in Hungary and the person sustaining the damage was in Hungary at that time;

    • is a right in rem over an immovable property in Hungary owned or intended to be acquired by the foreign state (foreign state organ);

    • is the membership, share or interest of the foreign state (foreign state organ) in a legal person or a company without legal personality seated in Hungary, or any right or obligation stemming therefrom;

    • is a legal relationship of succession of the foreign state (foreign state organ) in connection with a succession opened in Hungary;

    • is the granting, extent or termination of a domestic industrial property right the holder of which is a foreign state (foreign state organ).

  • On the basis of an adverse ruling against the foreign state, no execution may be levied on the assets of the state located in Hungary that serve to carry out the public functions of the state or the operation of its state organs.

Prorogation of Jurisdiction by the Parties

Section 62/F

  • In respect of property matters, the parties may stipulate the jurisdiction of the courts or a specific court of a state for a legal dispute which have arisen or which may arise in the future in connection with a particular legal relationship. Parties may make such stipulation

    • in writing;

    • verbally with confirmation in writing;

    • in a form which accords with the business practices which the parties have established between themselves; or

    • in international commerce, in a form which accords with the commercial usages of which the parties are or ought to have been aware and which is widely known to and regularly observed by parties to contracts of the type involved in the particular commerce concerned

  • Unless the parties expressly agree to the contrary, the court or courts stipulated shall have exclusive jurisdiction. However, if the parties stipulate the jurisdiction of a foreign court and this court declares that it has no jurisdiction, a Hungarian court may establish its jurisdiction according to the general rules.

Section 62/G

  • The stipulation is invalid if the parties stipulate the jurisdiction of a foreign court in respect of any of the cases specified in Section 62/A or the jurisdiction of a Hungarian court in respect of any of the cases specified in Section 62/C.

  • A prorogation of jurisdiction regarding legal disputes stemming from a consumer contract or a contract of employment

    • may not result in having the consumer or the employee exposed to being sued in courts other than the courts of the state of his domicile or habitual place of residence; and

    • may not exclude that the consumer or the employee can bring a lawsuit before the courts of the state of his domicile or habitual place of residence or before the courts of the state of his habitual place of employment.

  • The provisions set out in Subsection (2) shall not apply if the parties make the stipulation after the legal dispute has arisen.

Section 62/H

The jurisdiction of the Hungarian court is also established if the defendant makes a declaration on the merits of the case without contesting the lack of jurisdiction (jurisdiction by appearance), unless the jurisdiction of a Hungarian court is excluded based on the provisions of this Decree-Law.p. 3302

Chapter X Rules of Procedure

General Rules

Section 63

Unless otherwise provided by this Decree-Law, Hungarian law shall apply to the proceedings of a Hungarian court or another authority.

Section 64

  • Regarding the legal capacity and disposing capacity of a party to a lawsuit, his personal law will apply.

  • A non-Hungarian citizen who has no disposing capacity or has restricted disposing capacity according to his personal law but who would have disposing capacity according to Hungarian law shall be considered as having capacity of disposition in proceedings before a Hungarian court or another authority.

  • This provision does not exclude that a legal representative entitled to act in accordance with his personal law will proceed in place of the person having no disposing capacity or having restricted disposing capacity according to his personal law.

Section 65

If between the parties a procedure stemming from the same facts and for the same claim is brought before a foreign court or another authority, in which the decision may be recognised as valid and enforceable in Hungary pursuant to this Decree-Law, the Hungarian court or another authority may terminate the procedure instituted subsequently before it or the court shall dismiss the action without issuing a summons.

Section 66

The minister in charge of justice issues a certificate on Hungarian law and on the practice followed in the course of the application thereof for a person who needs this for the purpose of enforcing his rights abroad.

International Legal Assistance and Request

Section 67

  • In matters of legal assistance, a Hungarian court contacts a foreign court and another authority through the minister in charge of justice, other authorities contact the above via the minister exercising supervision through the minister in charge of foreign affairs.

  • With respect to the Member States of the European Union, in legal assistance for serving documents a Hungarian court directly contacts a court or another authority of a Member State of the European Union on the basis of Council Regulation (EC) No 1393/2007.

  • In the course of providing legal assistance, Hungarian law shall apply; at the request of the requesting authority, foreign procedural rules may also be applied unless they violate Hungarian public order.

Section 68

  • A Hungarian court or another authority provides legal assistance at the request of a foreign court or another authority, on the basis of an international treaty or in case of reciprocity.

  • The minister in charge of justice issues a statement on the existence of reciprocity binding upon the court and other authorities.

  • p. 3303In the absence of reciprocity, the minister in charge of justice decides on the compliance with the request, in agreement with the minister in charge of foreign affairs and the minister competent according to the subject matter of the case.

  • Legal assistance must be denied if the compliance with the request violated Hungarian public order.

  • With respect to the Member States of the European Union, legal assistance for the taking of evidence shall be governed by Council Regulation (EC) No 1206/2001 on cooperation between the courts of the Member States in the taking of evidence in civil or commercial matters.

  • Compliance with a request based on the Regulation referred to in Subsection (5) falls within the cognizance and territorial competence of the district court operating at the seat of the regional court (or the Central District Court of Buda in Budapest) in the territory of which

    • the domicile or the habitual place of residence of the person to be examined is located, or

    • the object to be inspected is located, or

    • in other cases where the taking of evidence can be executed most expeditiously.

Section 68/A

  • If the request for legal assistance made by a foreign court or another foreign authority concerns the service of an official document, the service is effected by the district court competent according to the address of the addressee indicated in the request (by the Central District Court of Pest in Budapest).

  • If the document to be served is not provided with an official Hungarian translation, it may be served only if it is accepted by the addressee. Receipt of such document by the addressee does not mean its definite acceptance; the addressee may return the document to the domestic court performing the request for service within fifteen days from the date of receipt or post it on the understanding that he refuses acceptance.

  • If the addressee refuses to accept the document in accordance with Subsection (2), by returning the document the domestic court performing the request for service informs the requesting foreign court or other foreign authority that the document cannot be considered as served under Hungarian law.

Section 69

Before a Hungarian notary public, for the purpose of foreign proceedings an oath or vow may be made outside litigation; the notary public issues a certificate thereto.

Chapter XI Recognition and Enforcement of Foreign Decisions

Section 70

  • A decision rendered by a foreign court or another authority in a case in which a Hungarian court or another authority has exclusive jurisdiction may not be recognised in Hungary.

  • Notwithstanding the exclusive Hungarian jurisdiction, a final foreign decision on the dissolution of marriage or termination of registered partnership of a Hungarian citizen shall be recognised if the former spouse or former registered partner having Hungarian citizenship himself requests the domestic recognition thereof, provided that neither of the grounds for denial specified in Subsection (2) of Section 72 applies.

  • Notwithstanding the exclusive Hungarian jurisdiction, a final foreign decision authorising the adoption of a minor having Hungarian citizenship by a Hungarian citizen shall be recognised if the adopted person, who has Hungarian citizenship and reached the age of legal majority according to Hungarian law at the time of the submission of the request for recognition, himself requests the domestic recognition thereof, and neither of the grounds for denial specified in Subsection (2) of Section 72 applies. Regarding determination of the minority of the adopted person, Hungarian law in force at the time of the foreign authorisation of the adoption shall apply, unless Hungarian law p. 3304in force at the time of the submission of the application for recognition contains a rule on the adjudication of the minority more favourable to the adopted person.

Section 70/A

  • Even in the absence of the conditions specified in Subsections (2) and (3) of Section 43, a final foreign decision authorising the adoption of a minor having Hungarian citizenship by a person having no Hungarian citizenship shall be recognised in Hungary if the adopted person, who has Hungarian citizenship and reached the age of legal majority according to Hungarian law at the time of the submission of the request for recognition, himself requests the domestic recognition thereof, and neither of the grounds for denial specified in Subsection (2) of Section 72 applies.

  • Regarding determination of the minority of the adopted person, Hungarian law in force at the time of the foreign authorisation of adoption shall apply, unless Hungarian law in force at the time of the submission of the application for recognition contains a rule on the adjudication of the minority more favourable to the adopted person.

Section 71

The final decision of a foreign court or another authority rendered in a case in which the jurisdiction of a Hungarian court or another authority is excluded shall be recognised in Hungary, unless this would violate Points a)–c) of Subsection (2) of Section 72.

Section 72

  • The decision of a foreign court or another authority rendered on matters not mentioned in Sections 70 and 71 shall be recognised if

    • the jurisdiction of the foreign court or another authority seised was based on any of the rules of jurisdiction laid down by Hungarian law;

    • the decision became final under the law of the state in which it was rendered;

    • there is reciprocity between Hungary and the state of the court or authority rendering the decision;

    • neither of the grounds for denial specified in Subsection (2) applies.

  • A foreign decision may not be recognised if

    • the recognition thereof would violate Hungarian public order;

    • the party against whom the decision was rendered did not participate at the proceedings either in person or by representative, because the summons, the statement of claim or other document on the basis of which the proceedings were initiated was not served for him at his domicile or habitual place of residence duly or in a timely manner to allow him to prepare for his defence;

    • the decision was rendered as a result of a procedure that had seriously violated the basic principles of Hungarian procedural law;

    • the effects of bringing a lawsuit took place concerning the same claim stemming from the same facts between the same parties in front of a Hungarian court or another Hungarian authority before the foreign procedure was initiated (lis pendens);

    • a Hungarian court or another Hungarian authority rendered earlier a final decision concerning the same claim stemming from the same facts between the same parties.

Section 73

  • The minister in charge of justice issues a statement on the existence of reciprocity referred to in Point c) of Subsection (1) of Section 72, binding on the courts and other authorities.

  • The existence of reciprocity is not a condition of recognition

    • in case of a foreign decision concerning personal status;

    • in case of a decision concerning property if the jurisdiction of the foreign court rendering the decision was grounded on the stipulation of the parties and this stipulation complies with the provisions laid down in Sections 62/F and 62/G.

    p. 3305

Section 74

  • No special procedure is required for recognition of a foreign court decision. Unless otherwise provided by law, the question of recognition is examined by the court or other authority, in the procedure of which it arises.

  • The party concerned may request the court in a special procedure to establish that the foreign decision may be recognised in Hungary. The court decides on such a request in a non-litigious procedure. This procedure falls under the cognizance and exclusive territorial competence of

    • the district court operating at the seat of the regional court according to the domicile (seat) or habitual place of residence of the adverse party located in Hungary (the Central District Court of Buda in Budapest) or in case of a foreign arbitral award, the regional court (the Budapest Regional Court in Budapest),

    • in the absence of this, the district court operating at the seat of the regional court according to the domicile (seat) or habitual place of residence of the claimant located in Hungary (the Central District Court of Buda in Budapest) or in case of a foreign arbitral award, the regional court (the Budapest Regional Court in Budapest)

    • if the claimant has neither domicile (seat) nor habitual place of residence in Hungary, the Central District Court of Buda or in case of a foreign arbitral award the Budapest Regional Court.

  • Regarding proceedings, including the available legal remedies, the provisions of the Act on Judicial Enforcement on the issuance of the certificate of enforcement shall duly apply.

    • A foreign decision shall not be subject to review on the merits. The existence of the conditions required for recognition of the foreign decision in Hungary shall be examined ex officio, with the exception of the conditions specified in Points b) and c) of Subsection (2) of Section 72.

Section 74/A

If the conditions required for the recognition of an adverse foreign decision in Hungary are met, the decision may be enforced in Hungary in accordance with the provisions of the relevant law.

Closing Provisions

Section 75

  • This Decree-Law shall come into force on 1 July 1979.

  • (2)–(4) [Repealed]

  • This Decree-Law contains regulation in conformity to the following laws of the European Community in accordance with Section 3 of Act I of 1994 promulgating the Europe Agreement establishing an association between the Republic of Hungary and the European Communities and their Member States, signed in Brussels on 16 December 1991:

    • together with the relevant provisions of the Labour Code, the acts on labour safety and employment control – Directive 96/71/EC of the European Parliament and of the Council concerning the posting of workers in the framework of the provision of services;

    • regarding Section 21/A of the Decree-Law, Directive 2002/47/EC of the European Parliament and of the Council on financial collateral arrangements.

  • (6)

    • Subsection (1) of Section 45 and Section 46 of this Act contain provisions for the implementation of Article 1 of Council Regulation (EC) No 4/2009 of 18 December 2008 on jurisdiction, applicable law, recognition and enforcement of decisions and cooperation in matters relating to maintenance obligations,

    • Section 40, Subsections (1) and (2) of Section 41/A, Subsection (4) of Section 41/A and Section 41/B of this Act contain provisions for the implementation of Article 4 of Council Regulation (EU) No 1259/2010 implementing enhanced cooperation in the area of the law applicable to divorce and legal separation.

  • Section 70/A of this Act, as established by Act LXXXV of 2012 on the simplification of certain family law and company law procedures, shall also apply to cases pending at the time of the entry into force of Act LXXXV of 2012 on the simplification of certain family law and company law procedures.p. 3306

Section 76

  • The provisions of this Decree-Law, as established in respect of the recognition and enforcement of foreign decisions by Act CX of 2000 on the amendment of certain laws on jurisdiction and the recognition and enforcement of foreign decisions, shall apply to those decisions which became final after 30 April 2001 according to the law of the state where they were rendered.

  • A foreign decision which concerns the personal status of a Hungarian citizen and which is in conformity with the conditions specified in Sections 70–73 of this Decree-Law, as established by Act CX of 2000 on the amendment of certain laws on jurisdiction and the recognition and enforcement of foreign decisions, shall be recognised even if the decision became final before 1 May 2001.

  • The procedure defined in Subsection (2) of Section 74 of this Decree-Law, as established by Act CX of 2000 on the amendment of certain laws on jurisdiction and the recognition and enforcement of foreign decisions, shall be carried out even if the recognition of such a foreign decision is requested that became final before 1 May 2001.

p. 3307ACT XXVIII of 2017 on Private International Law2

Chapter I General provisions

1. SCOPE OF APPLICATION OF THE ACT

SECTION 1

Concerning private law relationships involving a foreign element, this Act determines:

  • the law of which state is to be applied,

  • the rules based on which Hungarian courts establish their jurisdiction and the procedural rules to be followed, and

  • the conditions for the recognition and enforcement of decisions rendered by foreign courts.

SECTION 2

The provisions of this Act shall apply to questions which do not fall under the scope of application of a legal act of the European Union which has general application and is directly applicable or an international treaty.

2. DEFINITIONS

SECTION 3

For the purpose of this Act,court duly means also any other authority proceeding in private law matters, unless otherwise provided, an individual’s place of habitual residence is the place where taking all the circumstances of the given legal relationship into account the actual centre of his life is located; in determining this, the facts referring to the intention of the person concerned must be also taken into consideration, domicile is the place where a person permanently lives or with the intention of settling there definitively.

3. QUALIFICATION

SECTION 4

  • In deciding, based on which choice of law rule the law applicable to the facts is to be determined, the system of concepts of Hungarian law shall govern.

  • The qualification of a legal institution which is unknown in Hungarian law shall be carried out based on the foreign law regulating the legal institution, with special regard to its function and purpose in that foreign law.

  • If a legal institution is not unknown in Hungarian law, but its function or purpose differs from the one it has in the foreign law, in the course of the qualification the foreign law shall also be taken into consideration.

  • Subsections (1)–(3) shall duly apply in the course of the establishment of jurisdiction as well as the recognition and enforcement of foreign decisions.

4. p. 3308RENVOI

SECTION 5

  • If the choice of law rules of this Act which determine the applicable law refer to a foreign law, the substantive provisions of that foreign law which decide directly the issue shall apply.

  • If, pursuant to this Act, the cititizenship determines the applicable foreign law and the choice of law rule of that foreign law

    • refers back to Hungarian law, the substantive rules of Hungarian law shall apply;

    • refers to another foreign law, the substantive rules of this law shall apply.

5. STATES WITH MORE THAN ONE LEGAL SYSTEM

SECTION 6

  • If, pursuant to this Act, the law of a state with more than one territorial unit applies to the facts, whose territorial units have their own legal system, the interstate choice of law rules of the given state determine the law of which territorial unit shall apply.

  • If, pursuant to this Act, the law of a state applies to the facts, which has various legal systems concerning various groups of persons, the interpersonal choice of law rules of the given state determine which law shall apply.

  • If the applicable law does not contain interstate or interpersonal choice of law rules or their content cannot be established or if these rules do not lead to the designation of a single applicable law, that legal system of the given state shall apply which is most closely connected to the facts.

6. APPLICATION AND ESTABLISHMENT OF THE CONTENT OF FOREIGN LAW

SECTION 7

  • The court shall apply foreign law ex officio.

  • The court shall interpret the foreign law in accordance with the rules and practice of that law.

SECTION 8

  • The court shall establish the content of foreign law ex officio.

  • To establish the content of foreign law, the court may have recourse to any means, in particular the submissions of the parties, an expert opinion or the relevant information provided by the minister in charge of justice (hereinafter: the minister).

  • If the content of foreign law may not be established within reasonable time, Hungarian law shall apply. If the facts concerned cannot be decided based on the rules of Hungarian law, the foreign law which is closest to the applicable law shall apply.

7. CHOICE OF LAW

SECTION 9

  • Unless otherwise provided by this Act,

    • the choice of law must be made expressly,

    • the existence and validity of the choice of law agreement is governed by the law of that state, whose law would apply to the legal relationship concerned in the case of the existence and validity of the agreement; however, the choice of law shall be also considered as existing and valid if it complies with the law of the state where the agreement was made.

  • The choice of law may not prejudice the acquired rights of third parties.

8. p. 3309GENERAL ESCAPE CLAUSE

SECTION 10

  • If, based on the circumstances of the case, it is obvious that the case is substantially more closely connected to a law other than the law governing under this Act, this law may exceptionally apply. The court shall decide on this at the latest within thirty days after the arrival of the counterplea of the defendant to the court.

  • Subsection (1) cannot be applied, if the governing law was determined by choice of law.

9. GENERAL SUBSIDIARY CHOICE OF LAW RULE

SECTION 11

If this Act does not contain any rule for a legal relationship that falls under its scope of application, the law of that state shall apply to which the legal relationship is most closely connected.

10. ORDRE PUBLIC CLAUSE

SECTION 12

  • The application of the foreign law governing under this Act breaches Hungarian public order and therefore shall be disregarded if the result thereof in the given case obviously and seriously violated the fundamental values and constitutional principles of the Hungarian legal system.

  • If the violation of the public order may not be prevented in any other way, the provisions of Hungarian law shall apply instead of the disregarded provision of the foreign law.

11. OVERRIDING MANDATORY PROVISIONS

SECTION 13

  • Those provisions of Hungarian law, from the content and purpose of which it may be established unequivocally that they also require mandatory application in the legal relationships falling under the scope of application of this Act, shall apply irrespective of the law governing under this Act (overriding mandatory provisions).

  • The overriding mandatory provisions of another state may be taken into consideration if they are closely connected to the facts and they have decisive significance as to the decision of the case.

12. CHANGE OF STATUTE

SECTION 14

A change in the circumstances determining the applicable law has an impact on the legal relationships which came validly into existence in accordance with the law applicable before the change only if this Act expressly so provides.

Chapter II Persons

13. HUMAN BEING AS SUBJECT OF LAW

SECTION 15

  • An individual’s legal capacity, disposing capacity and personal rights shall be adjudged according to his personal law.

  • An individual’s personal law is the law of the state of his citizenship.

  • p. 3310If a person has multiple citizenships and one of his citizenships is Hungarian, his personal law is Hungarian law, except if he is more closely connected to his other citizenship.

  • The personal law of a person who has multiple citizenships none of which is Hungarian is the law of the state of his citizenship to which he is most closely connected taking the relevant circumstances of the case into account.

  • The personal law of a person who has multiple citizenships none of which is Hungarian and is not more closely connected to any of his citizenships, and of a person whose citizenship may not be established as well as of a stateless person, is the law of the state where his place of habitual residence is located.

  • If an individual’s personal law cannot be established on the basis of subsections (2)–(5), Hungarian law shall apply.

  • Hungarian law shall apply to the legal relationships specified in subsection

    • of a person enjoying the right of asylum in and a person admitted to Hungary.

SECTION 16

  • Regarding the bearing of a name, the individual’s personal law or, at his request, Hungarian law shall apply.

  • Regarding the bearing of his birth name, a person having multiple citizenships may choose the law of any of his citizenships.

  • Regarding the bearing of the married name, at the parties’ joint request, the law of the citizenship of any of the spouses or Hungarian law shall apply. In the absence of joint request, section 27 applies.

  • Regarding the bearing of a name, the law of that state shall apply based on which the married name came into existence in the case of the dissolution or the establishment of the invalidity of the marriage.

  • The birth name as well as married name of a Hungarian citizen which has been validly registered under the law of another state must be recognised in Hungary if the person concerned having Hungarian citizenship or his spouse is also a citizen of this other state or if the place of habitual residence of the Hungarian citizen concerned is located in that state. A name which violates Hungarian public order may not be recognised.

SECTION 17

  • A person who has no disposing capacity or has restricted disposing capacity according to his personal law shall be regarded as a person having disposing capacity in terms of his contracts of minor significance concluded and performed in Hungary which take place in large number in every-day life and do not require any particular consideration if he had disposing capacity according to Hungarian law.

  • A person who has no disposing capacity or has restricted disposing capacity according to his personal law but would have disposing capacity according to Hungarian law shall be regarded as a person having disposing capacity also in terms of his other property transactions if the legal consequences of the transaction are to arise in Hungary.

SECTION 18

  • Regarding the conditions, existence, modification, termination and the legal consequences of placing under conservatorship or other protective measures not affecting an adult’s disposing capacity and the legal relationships arising from this, the law of that state shall apply where the place of habitual residence of the person concerned is located at the time of the adjudication of the underlying facts.

  • If it is justified by the interests of the adult concerned, the court seised may exceptionally apply or take the law of another state into account to which the case is more closely connected.

SECTION 19

  • p. 3311Section 18 shall duly apply also to the existence, validity, scope, modification and withdrawal of a legal declaration made by an adult having disposing capacity for the case of the future limitation of his disposing capacity or the absence of his capacity to protect his interests in that way that the law of the state of the place of habitual residence existing at the time of making the legal declaration shall apply to them.

  • Irrespective of subsection (1), an adult who has disposing capacity can choose by written declaration:

    • the law of the state of his citizenship,

    • the law of that state where he had previously his place of habitual residence,

    • regarding a specified object of property, the law of that state in whose territory the object of property is located.

SECTION 20

Regarding the legal representation of a person prevented from managing his own affairs and to the ad hoc conservatorship, the law of the state of the appointing court shall apply.

SECTION 21

  • Regarding the declaration of death or a missing person as well as establishing the fact of death, the missing person’s personal law shall apply.

  • If the missing person’s personal law is not Hungarian law, Hungarian law shall apply in the case of the existence of any domestic legal interest.

14. THE LEGAL PERSON

SECTION 22

  • The personal law of a legal person is the law of that state in whose territory the legal person was incorporated.

  • If a legal person is incorporated according to the laws of more than one state, or no incorporation is required according to the law applicable at the place of the seat indicated in the statute, its personal law shall be the law of that state where its seat indicated in its statute is located.

  • If a legal person has no seat according to its statute, or has several such seats and is not incorporated in accordance with the law of any of these states, its personal law shall be the law of that state in whose territory its place of central administration is located.

  • The legal status of the legal person, in particular

    • its legal capacity,

    • its formation and termination,

    • its legal and organisational representation,

    • its personality rights,

    • its organisation,

    • the legal relationships between its members,

    • the legal relationships between the members and the legal person, and

    • the responsibility of the legal person, its members and its executive officers for the obligations of the legal person shall be adjudged according to the personal law of the legal person.

  • The provisions contained in this section shall duly govern entities which do not have legal personality.

15. VIOLATION OF PERSONALITY RIGHTS

SECTION 23

  • Regarding the violation of personality rights, the law of the place of habitual residence of the injured party – in the case of a legal person that of its seat indicated in the statute – shall p. 3312apply. It must be adjudged under this law, whether any violation of law occurred and the consequences of the violation of law shall be established in accordance with this same law.

  • A person whose personality rights have been violated can choose at the latest within the deadline set by the court in the pleading phase:

    • the law of that state where the centre of his interests is located,

    • the law of that state where the place of habitual residence – in the case of a legal person the seat indicated in the statute – of the wrongdoer is located, or

    • Hungarian law.

  • Subsections (1)–(2) shall also apply in the case of the danger of the violation of personality rights.

CHAPTER III FAMILY LAW

16. GENERAL RULES

SECTION 24

The common citizenship of the spouses is the citizenship both possess. If the spouses have more than one common citizenship, for the purpose of this Chapter, that common citizenship shall be taken into account to which they are most closely connected considering all the circumstances of the case.

SECTION 25

Regarding family law relationships concerning a child, Hungarian law shall apply provided that it is more favourable to the child.

17. SPECIAL RULES ON MARRIAGE

SECTION 26

  • A marriage is only valid if the substantive law conditions thereof are satisfied according to the personal law of both parties to be married at the time of concluding the marriage.

  • Regarding the formal requirements of the validity of marriage, the law in force at the place and date of the celebration of marriage shall apply.

  • The provisions on the conclusion of marriage and the validity thereof shall duly apply also to the question of establishing the existence or non-existence of marriage.

  • The marriage may not be celebrated in Hungary if there is an unavoidable impediment to the celebration of the marriage under Hungarian law.

SECTION 27

  • Regarding the personal and property relationships of the spouses – subject to the deviations laid down in section 16 (3)–(5), the law of that state shall apply the citizenship of which both spouses possess at the time of adjudication.

  • If the personal laws of the spouses are different at the time of adjudication, the law of that state shall apply in whose territory the spouses’ common place of habitual residence, in the absence of this, their last common place of habitual residence is located.

  • If the spouses had no common place of habitual residence, the law of the state of the court seised shall apply.

SECTION 28

  • The spouses may choose the applicable law to their property relationships, provided that this is one of following laws:

    • p. 3313the law of that state the citizenship of which one of the spouses possesses at the time of concluding the agreement,

    • the law of that state in whose territory one of the spouses has his place of habitual residence at the time of concluding the agreement,

    • the law of the state of the court seised.

  • Those who will be married are also entitled to choose the applicable law.

  • The choice of law is possible at the latest within the deadline set by the court in the pleading phase.

  • If the spouses do not agree otherwise, the choice of the law applicable to the property relationships of the spouses has legal effect only for the future.

SECTION 29

A matrimonial property contract is formally valid also if it complies with the law of the place of its conclusion.

SECTION 30

The spouses may choose the applicable law in accordance with Articles 5–7 of Council Regulation (EU) No 1259/2010 at the latest within the deadline set by the court in the pleading phase.

18. FAMILY STATUS

SECTION 31

  • In the question of the establishment of paternity or maternity and the rebuttal of the presumption of paternity, the personal law of the child prevailing at the time of his birth shall apply.

  • The recognition of a child by the father shall be adjudged according to the personal law of the child prevailing at the time of recognition; the recognition of a child already conceived but not yet born shall be adjudged according to the personal law of the mother prevailing at the time of recognition. The recognition may not be considered as invalid for formal reasons if it is formally valid either according to Hungarian law or according to the law in force at the place and time of recognition.

SECTION 32

If the status of the father is not filled under the law applicable based on section 31, the law of another state closely connected to the case shall apply if it is more favourable to the child in this regard.

19. ADOPTION

SECTION 33

  • The adoption is only valid if the conditions thereof are met according to the personal law of both the adoptive parent and the person intended to be adopted at the time of adoption.

  • Regarding the legal effects of the adoption, the termination of the adoption and the legal effects thereof, the personal law of the adoptive parent at the time of the adoption or the termination thereof shall apply.

  • If the adoptive parents are spouses, regarding the legal effects of the adoption and the termination of the adoption and the legal effect thereof

    • the law of the state of the common citizenship of the spouses prevailing at the time of the adoption or the termination thereof; in the absence of this,

    • the law of the state in whose territory the spouses had common place of habitual residence at the time of the adoption or the termination thereof; in the absence of this,

    • the law of the state of the court seised shall apply.

20. p. 3314LEGAL RELATIONSHIP BETWEEN THE PARENT AND CHILD, GUARDIANSHIP

SECTION 34

  • Regarding the legal relationship between parent and child and the guardianship – with the exceptions of becoming of full age and bearing a name – the law of the state of the court seised shall apply.

  • If this is justified by the interests of the child, the court seised may exceptionally apply or take the law of another state into account to which the case is closely connected.

Chapter IV Partners, registered partners

21. PARTNERS

SECTION 35

  • Regarding the existence, termination and legal effects of the partnership, the law of the state of the common citizenship of the partners shall apply.

  • If the citizenships of the partners are different, the law of that state shall apply in whose territory the place of habitual residence of the partners is located, or in the absence of this their last common place of habitual residence is located.

  • If the common place of habitual residence of the partners cannot be established, the law of the state of the court seised shall apply.

  • The provisions of section 24 shall duly apply to the common citizenship of the partners.

SECTION 36

Partners may choose the law applicable to their property relationships. Section 28 shall duly apply to the choice of law by the partners.

22. REGISTERED PARTNERS

SECTION 37

  • Regarding the existence, validity and legal effects of the registered partnership, not including the bearing of a name, the provisions of sections 26–29 shall duly apply, subject to the exceptions specified in this section.

  • It is not an impediment to the conclusion of a registered partnership and the validity thereof is not affected if the personal law of the intended registered partner does not know the legal institution of registered partnership of same-sex couples, provided that

    • the intended registered partner having no Hungarian citizenship proves that there would be no impediment to the conclusion of marriage under his personal law, and

    • at least one of the intended registered partners is a Hungarian citizen or has his place of habitual residence in Hungary.

  • Regarding the legal effects of the registered partnership, Hungarian law shall apply in the cases specified in subsection (2).

  • The provisions of section 24 shall duly apply to the common citizenship of the registered partners.

SECTION 38

  • Regarding the termination of a registered partnership, the law of that state shall apply

    • in whose territory the place of habitual residence of the registered partners is located at the time of filing the action or request for the termination of the registered partnership; in the absence of this

    • p. 3315in whose territory the last place of habitual residence of the registered partners is located if this place of habitual residence was terminated no more than one year before filing the action or request, provided that one of the registered partners still resides in this state at the time of filing the action or request; in the absence of this

    • of which both registered partners were citizens at the time of filing the action or request.

  • If the applicable law cannot be determined based on subsection

    • as well as in the cases specified in section 37

    • the court seised shall apply the law of its own state.

Chapter V Rights in rem

23. GENERAL RULES

SECTION 39

  • Unless otherwise provided by this Act, the law applicable at the place of the location of a thing shall apply to the property right and other rights in rem, including pledge and possession.

  • The law applicable at the place of the location of a thing is the law of that state in whose territory the thing is located at the time of the emergence of the fact giving rise to the legal effect.

  • If a thing is a component part or accessory of another thing, the law of the place of the location of the main thing shall apply; regarding other connection of things or aggregate of things, the law which is most closely connected to it shall apply.

SECTION 40

The applicable law determines, in particular

  • the legal characteristics of the thing,

  • the content of the right in rem,

  • the order of the charges encumbering the thing,

  • the holder of the right in rem,

  • the coming into existence, the existence and the termination of the right in rem, and

  • the effect of the right in rem towards third parties.

SECTION 41

  • If, after the change in the right in rem, the movable thing gets to the territory of another state permanently, the rights acquired previously may be recognised in accordance with the law of the new place of location of the thing.

  • If the legal effect of the acquisition of a right in rem did not take place at the previous place of location and the movable thing gets to the territory of another state permanently, the law of this latter state shall apply to the acquisition of rights.

  • Regarding the prescription of a movable thing, the law of that state shall apply in whose territory the thing was located at the time of the expiry of the period of prescription.

  • Prescription shall not be interrupted by a change in the location of the thing.

24. SPECIAL RULES

SECTION 42

  • Regarding rights in rem related to a registered watercraft or aircraft, the law of that state shall apply under whose flag or other insignia the vehicle is operating.

  • Regarding rights in rem related to a railway vehicle, the law of that state shall apply where it was put into operation.

SECTION 43

  • p. 3316The law of the state of the destination shall apply to rights in rem related to a movable thing in transit. Regarding the in rem legal effects related to the sale, storage or pledging of a movable thing in transit, if this takes place beyond the will of the proprietor or the person entitled to dispose with it, the law applicable at the place of the location of the thing at the time of the measure shall apply.

  • The personal law of a passenger shall apply to the rights in rem related to objects taken along for the purpose of personal use.

SECTION 44

  • Regarding a security in rem which comes into existence with registration, the law of the state where the register of securities is kept shall apply.

  • If the coming into existence of a security in rem does not require registration or the applicable law may not be established in accordance with subsection

    • the personal law of the security debtor shall apply to the security in rem.

  • Regarding a movable thing transferred with reservation of title, the law of the state of the place of the location of the thing shall apply to the legal effects of the reservation of title, except if the parties choose the law of the destination of the movable thing transferred.

  • Regarding a security related to a payment account, bank deposit and dematerialised securities, the law of that state shall apply in which the register or the account containing the security is kept or in which the central depository system is operating.

  • Regarding a security over a claim, the law chosen by the parties shall apply; in the absence of this, the law of the state where the security was registered, or in the case of a security which was not registered the personal law of the security debtor shall apply.

SECTION 45

  • In their contract transferring property on a movable thing, the parties may choose the law of the state of the place of location or the destination of the thing specified in the contract to the in rem legal effects.

  • If the assets of an undertaking (business) are transferred as a whole, with the exception of the immovable property, the parties may choose the law of the personal law of the legal predecessor to the in rem legal effects.

  • The choice of law is possible at the latest within the deadline set by the court in the pleading phase.

SECTION 46

  • If a thing deemed by a state as belonging to its own cultural goods leaves the territory of the state in a way which is illegal at the time of exporting according to its own law, regarding the property claim enforced by the state, at the choice of the state enforcing the claim, either the law of this state or the law of that other state shall apply, in whose territory the thing concerned is located at the time of adjudicating the property claim.

  • If the law of the state which deems the illegally exported thing as belonging to its own cultural goods does not provide protection for a bona fide possessor, this person may claim protection in accordance with the law of that state in whose territory the thing concerned is located at the time of adjudicating the property claim.

SECTION 47

  • Regarding a property claim related to a thing taken out illegally from the possession of the original proprietor, at the choice of the original proprietor, either the law of that state in whose territory the thing was located at the time of disappearing or the law of that state, in whose territory the thing is located at the time of adjudicating the property claim, shall apply.

  • p. 3317If the law of the state, in whose territory the thing was located at the time of disappearing, does not provide protection for a bona fide possessor, this person may claim protection in accordance with the law of that state in whose territory the thing concerned is located at the time of adjudicating the property claim.

Chapter VI Intellectual property rights

25. COPYRIGHTS AND INDUSTRIAL PROPERTY RIGHTS

SECTION 48

Regarding the existence, content, termination and enforcement of copyrights, the law of that state shall apply for whose territory the protection is claimed.

SECTION 49

Regarding the existence, content, termination and enforcement of industrial property rights, the law of that state shall apply in which the protection was granted or where the application was made.

Chapter VII The law of obligations

26. CONTRACTUAL OBLIGATIONS

SECTION 50

  • The law chosen by the parties shall apply to a contract. If the choice has not been made expressly, it must be clearly demonstrated by the terms of the contract or the circumstances of the case. By their choice, the parties can select the law applicable to the whole or to part only of the contract.

  • The choice of law is possible at the latest within the deadline set by the court in the pleading phase.

  • Without prejudice to subsection (2), the parties may agree that instead of the law which ̶ based on choice of law under this section or in the absence of this based on the provisions of this Act ̶ previously governed the contract another law shall apply. Any amendment to the provisions of the contract on the applicable law that is made after the conclusion of the contract does not affect the validity of the contract in accordance with the law governing the formal validity.

  • If the contract is connected to the law of a single state, the choice of law may not prejudice those provisions of this law which cannot be derogated from by agreement.

  • Articles 53–54 shall duly apply to the existence and validity of the agreement of the parties as to the choice of the applicable law.

SECTION 51

In the absence of choice of law, the law of that state shall apply to which the contract is most closely connected based on the relevant elements of the given legal relationship.

SECTION 52

  • The parties may choose the law applicable to an arbitration agreement.

  • In the absence of choice of law, the law chosen to the underlying legal relationship, in the absence of this the law governing the underlying legal relationship in the absence of choice of law shall apply to an arbitration agreement.

  • p. 3318If the parties have designated the place of the arbitration proceedings, the law of the state of the place of the proceedings shall apply to the arbitration agreement, provided that this law is more closely connected to the agreement than the law specified in subsection (2).

  • An arbitration agreement may not be deemed to be formally invalid if it complies with the formal requirements of any of the laws specified in this section or of the law of the state of the court seised.

SECTION 53

The existence and validity of a contract, or of any term of a contract, shall be determined by the law which would be applicable based on this Act if the contract or the contract term were valid.

SECTION 54

  • A contract is formally valid between those persons who, or whose agents, are in the same state at the time of the conclusion of the contract if the contract complies with the formal requirements of the law applicable under this Act or of the law of the state where it is concluded.

  • A contract is formally valid between those persons who, or whose agents, are in different countries at the time of its conclusion if the contract complies with the formal requirements of the law applicable under this Act or of the law of that state where either of the parties or his agent is present at the time of the conclusion of the contract, or where either of the parties had his place of habitual residence at the given time.

  • A unilateral legal declaration intended to have legal effect relating to an existing or contemplated contract is formally valid if it complies with the formal requirements of the law applicable to the contract under this Act or of the law which would be applicable to the contract, or if it complies with the formal requirements of the law of the state where the legal declaration was made, or of the state where the person by whom the legal declaration was made has his place of habitual residence at the time of making the legal declaration.

  • Notwithstanding subsections (1)–(3), the formal requirements provided by the law of the state where the property is located shall govern a contract the subject matter of which is a right in rem in immovable property or renting an immovable property if:

    • these requirements shall apply mandatorily irrespective of the place of contracting and the law governing the contract, and

    • these requirements cannot be derogated from by agreement.

SECTION 55

  • For the purpose of this subtitle, the place of central administration shall be considered as the place of habitual residence of a legal person or an entity which does not have legal personality. The place of habitual residence of a natural person acting in the course of his business activity shall be his principal place of business.

  • In the case of a contract concluded in the course of the operation of a branch, agency or any other establishment, or if a branch, agency or another establishment is obliged to perform under the contract, the state where the branch, agency or any other establishment is located shall be considered as the place of habitual residence.

  • For the purpose of determining the place of habitual residence, the time of the conclusion of the contract is relevant.

SECTION 56

Unless otherwise provided by this Act, regarding unilateral legal declarations the rules on contracts shall duly apply.

27. SECURITIES

SECTION 57

  • p. 3319Regarding the formalities and nature of a security, including whether it is a bearer or registered security, the law of that state shall apply whose law applies to the right incorporated in the security.

  • The provisions on rights in rem of this Act shall duly apply to the in rem legal effects of the disposition over a security.

  • Regarding the legal effects of the disposition over a dematerialised security, beyond the right incorporated in the security, the law of that state shall apply which carries out state supervision over the provider of the securities account, in the absence of this, where the securities account is kept. If the application of more than one law arises according to this, the law of that state shall apply which ensures the acquisition of rights by the right holder.

SECTION 58

  • Regarding a right under the law of obligation based on security, the law chosen by the parties, in the absence of this the place where the security was issued, if this cannot be even established, the personal law of the issuer shall apply.

  • Regarding a membership right incorporated in a security, the personal law of the issuer shall apply.

  • Regarding a right in rem incorporated in a security, the law of the state of the place where the security was issued shall apply.

  • If a security embodies more than one right, in the absence of choice of law, the provisions governing the right constituting the central element of the security shall apply.

28. NON-CONTRACTUAL OBLIGATIONS

SECTION 59

The person seeking damages may choose the law of the place in which the event giving rise to the damage occurred in accordance with the second limb of Article 7 of Regulation (EC) No. 864/2007 of the European Parliament and of the Council, at the latest within the deadline set by the court in the pleading phase.

SECTION 60

Regarding non-contractual obligations, the law of that state shall apply, in whose territory the effect of the legal fact giving rise to the obligation ocurred.

SECTION 61

If the obligee and the obligor of a non-contractual legal relationship both have their place of habitual residence, in the case of a legal person its seat indicated in its statute, in the same state at the time when the effect of the legal fact giving rise to the obligation occurs, the law of this state shall apply.

SECTION 62

If the non-contractual legal relationship is closely connected to another legal relationship already existing between the parties when the non-contractual legal relationship comes into existence, the law governing this other legal relationship shall apply also to the non-contractual legal relationship.

SECTION 63

  • p. 3320The parties may choose the applicable law subsequent to the emergence of the non-contractual obligation. If the choice has not been made expressly, it must be clearly demonstrated by the circumstances of the case.

  • The choice of law is possible at the latest within the deadline set by the court in the pleading phase.

  • If the legal relationship is connected to the law of a single state, the choice of law may not prejudice those provisions of this law which cannot be derogated from by agreement.

Chapter VIII Law of succession

29. ORAL WILL, INHERITANCE BY THE STATE

SECTION 64

An oral will and its revocation is formally valid if it complies with

  • Hungarian law,

  • the law in force at the place and time of the making and revocation thereof,

  • the law which was the personal law of the deceased at the time of making the oral will, the revocation thereof or at the time of the deceased’s death,

  • the law in force at the deceased’s domicile or place of habitual residence at the time of making the oral will, the revocation thereof or at the time of the deceased’s death, or

  • in the case of an oral will concerning an immovable property, the law prevailing at the location of the immovable property.

SECTION 65

If, according to the law applicable to succession, an estate located in Hungary does not have a heir, the rules of Hungarian law governing succession by the Hungarian State shall apply to the inheritance of the estate located in Hungary.

Chapter IX Procedural provisions

30. GENERAL RULES

SECTION 66

Unless otherwise provided by this Act, Hungarian law shall apply to the proceedings of a Hungarian court.

SECTION 67

  • Regarding the legal effects of insolvency proceedings initiated before a Hungarian court, Hungarian law shall apply.

  • Regarding the effects of insolvency proceedings on the rights of a debtor in immovable property, a ship or an aircraft and security subject to registration in a public register and on the contracts concerning the acquisition or the alienation of such rights for consideration, the law of the state of the location of the immovable property or in which the register is kept shall apply.

SECTION 68

  • Regarding the legal capacity and disposing capacity of a party in a lawsuit, his personal law shall apply.

  • p. 3321A person who has no disposing capacity or has restricted disposing capacity according to his personal law but who would have disposing capacity according to Hungarian law shall be considered as having disposing capacity in proceedings before a Hungarian court.

  • Subsection (2) does not exclude that a legal representative entitled to act in accordance with his personal law shall proceed in place of a person having no disposing capacity or having restricted disposing capacity according to his personal law.

  • The capacity to be party to legal proceedings of a legal person or an entity not having legal personality registered abroad must be presumed until proof to the contrary.

SECTION 69

  • If between the parties, at the time of instituting the proceedings, a procedure stemming from the same facts and for the same claim is brought previously before a foreign court, the Hungarian court may stay the procedure, ex officio or at request, provided that the recognition of the decision of the foreign court in Hungary is not excluded.

  • The Hungarian court shall continue the proceedings if the proceedings were terminated before the foreign court without a decision on the merits. The Hungarian court may continue the proceedings if the foreign proceedings were stayed or it considers that the foreign proceedings cannot be expected to be concluded within a reasonable time. If a circumstance giving cause to the continuation of the proceedings takes place, the parties are obliged to notify the court of this without delay. The court may review at any time the justification of staying, for this purpose, by setting a deadline it may call the parties to make a declaration on the procedural acts done before a foreign court.

  • Subsections (1)–(2) shall also apply if an action is brought before a Hungarian court which is related to an action brought before a foreign court.

  • If the foreign court gave a decision on the merits of the case which is capable of recognition in Hungary, the Hungarian court shall terminate the proceedings.

  • For the purpose of this Act, the proceedings shall be considered as instituted

    • at the time when the document instituting the proceedings is lodged with the court, provided that the claimant has not subsequently failed to take the steps he was required to take to have service effected on the defendant, or

    • if the document has to be served before being lodged with the court, at the time when it is received by the authority responsible for service, provided that the claimant has not subsequently failed to take the steps he was required to take to have the document lodged with the court.

SECTION 70

  • A Hungarian court may take a provisional measure, including a protective measure, in accordance with Hungarian law concerning a person or property located in Hungary even if it does not have jurisdiction as to the merits of the case. The condition for taking a provisional measure concerning property is that there is a possibility to recognise in Hungary the decision on the merits of the case rendered by the foreign court having jurisdiction.

  • The provisional measure shall be ordered by the court competent according to the place of habitual residence of the person concerned or the location of the property concerned.

  • If Hungarian law requires for the maintenance of the effect of the provisional measure to institute proceedings on the merits of the case, for this purpose, the proceedings before a foreign court which has jurisdiction on the merits of the case shall be taken into consideration.

  • If the foreign court having jurisdiction renders a decision concerning the subject matter of the measure taken based on subsection (1), capable of being recognised in Hungary, the provisional measure loses its effect.

SECTION 71

p. 3322The minister shall issue a certificate on Hungarian law and on the practice followed in the course of the application thereof.

31. GENERAL RULES OF INTERNATIONAL LEGAL ASSISTANCE

SECTION 72

  • A Hungarian court shall provide legal assistance at the request of a foreign court, on the basis of an international treaty, a directly applicable legal act of the European Union or in case of reciprocity.

  • In the absence of reciprocity, the legal assistance may be performed in the case of the agreement of the minister and the minister in charge of foreign affairs and, if necessary, the minister competent according to the subject matter of the case.

  • The performance of legal assistance shall be denied if it violated Hungarian public order.

32. SERVICE OF DOCUMENTS

SECTION 73

  • A document to be served abroad through an authority of the requested state shall be sent to the minister for taking a measure.

  • If an international treaty allows the service of document by post, the court may send it directly to the addressee.

  • In the case of meeting the conditions specified in an international treaty, the document may be also served through the foreign representation of Hungary competent according to the place of residence of the addressee. In this case, it must be sent to the minister in charge of foreign affairs for taking a measure.

  • The service abroad must be considered as legal if it complies with either Hungarian law or the law governing at the place of the service. If the service took place based on subsection (2), the fiction of service shall not be applied.

SECTION 74

  • The minister shall forward the request for legal assistance for the service of a document issued in foreign proceedings in accordance with its content to the court specified in subsection (2) or – through the Hungarian Chamber of Court Bailiffs – to an independent court bailiff (hereinafter: bailiff).

  • The service shall be effected in accordance with the request for legal assistance by the district court (by the Central District Court of Pest in Budapest) or by the bailiff competent according to the address of the addressee indicated in the request for legal assistance.

  • The court or bailiff shall take measure within eight days upon the receipt of the request for legal assistance to effect the service.

SECTION 75

  • In the course of the service of a document issued in foreign proceedings, subject to subsections (2)–(5), the Hungarian laws on the service of official documents shall apply.

  • If the document to be served is not provided with an official Hungarian translation or a Hungarian translation deemed appropriate for the purpose of the proceedings by the law of the requesting state, it may be served only if it is accepted voluntarily by the addressee. Receipt of such a document by the addressee does not mean its definite acceptance; the addressee may return the document to the domestic court or bailiff performing the request for service within fifteen days from the date of receipt or post it on the understanding that he refuses acceptance.

  • p. 3323If the service of the document not provided with a translation determined in subsection (2) has been ineffective, because the addressee had not taken the document (it had been returned to the court with the indication ‘unclaimed’), the fiction of service specified in section 137(2) of Act CXXX of 2016 on Civil Procedure (hereinafter: Code of Civil Procedure) shall not apply.

  • If the addressee refuses to accept the document in accordance with subsection (2), or it was not served on the ground specified in subsection (3), the court or bailiff performing the request for service establishes the result of the service so that the document may not be considered as served under Hungarian law.

  • In performing the service, a foreign procedural rule shall be applied at the request of the requesting foreign court if it does not violate Hungarian public order.

SECTION 76

  • The court or bailiff performing the request for service shall notify the minister of the performance of the service and the date thereof, or any obstacle to the service and its ground within eight days.

  • If the Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters promulgated by Act XXXVI of 2005 applies to the service, the minister shall issue a certificate in accordance with Article 6 of the Convention based on the data provided by the court or bailiff.

SECTION 77

  • The functions of the transmitting agency specified in Article 2(1) of Regulation (EC) No 1393/2007 of the European Parliament and of the Council (hereinafter in this section: the regulation) are performed:

    • in the case of court documents by the court in whose proceedings the document to be served was issued,

    • in the case of documents issued in proceedings of a notary public by the notary public in whose proceedings the document was issued,

    • in the case of other extrajudicial documents by the minister.

  • The functions of the receiving agency specified in section 2(2) of the regulation are performed:

    • by the district court competent according to the address of the addressee indicated in the request for legal assistance (the Central District Court of Pest in Budapest) and

    • by the Hungarian Chamber of Court Bailiffs;

    • in the case of point b) the service is performed by the bailiff competent according to the address of the addressee.

  • In the course of the performance of the request for legal assistance made based on the regulation, section 74(3) shall duly apply.

  • The functions of the central body under Article 3 of the regulation are performed by the minister.

  • Based on Article 4(2) of the regulation, the receiving agency shall accept the documents to be served by post, fax and electronically. The transmitting or receiving agency shall accept the standard forms introduced by the regulation in Hungarian, English, German or French language.

  • If the result of the service has been established by the application of the fiction of service under section 137(2) of the Code of Civil Procedure, the receiving agency shall notify the transmitting agency of the fact that the service and its date was established based on this fiction of service and the addressee is entitled to raise an objection against it under section 138 of the Code of Civil Procedure. If the court accepts later the objection of the addressee, it shall simultaneously notify the foreign transmitting agency of the fact that the legal consequences related to the service are ineffective under Hungarian law.

  • The receiving agency shall notify the transmitting agency of the service and the date thereof, or any obstacle to it and its ground within eight days.

  • The means of service under Article 13 of the regulation may be applied in Hungary only if the addressee is the citizen of the transmitting Member State.

  • p. 3324In the case of the application of the means of service under Article 13 of the regulation, the document to be served abroad shall be transmitted in accordance with section 73(3).

  • (10) The means of service under Article 15 of the regulation may be applied in Hungary in accordance with the laws on the service by bailiff.

33. TAKING EVIDENCE

SECTION 78

  • A request for legal assistance concerning taking evidence to be submitted to a foreign court shall be sent to the minister.

  • If the taking of the evidence may also take place through a diplomatic or consular agent based on an international treaty, the court may contact the competent Hungarian foreign representation through the minister in charge of foreign affairs for the purpose of taking evidence.

  • In a case specified by international treaty, a Hungarian court may take evidence directly abroad for the purpose of proceedings pending before it. In this case, the general rules on taking evidence shall apply under the condition that coercive measures shall not be applied.

  • In the absence of international treaty or reciprocity, at his request, the court may set a deadline for the party, to present an authentic instrument on the taking of the evidence which complies with the law of the foreign state and has been endorsed as necessary.

  • The lawfulness of taking evidence abroad shall be adjudged according to the law of the place of the taking of the evidence, but it shall be also considered as lawful if it complies with Hungarian law.

SECTION 79

  • The minister shall forward the request made by a foreign court for legal assistance for taking evidence in Hungary, with the exception of subsection (2), to the court specified in subsection (3).

  • If the request for legal assistance concerns providing data which may be obtained directly from a public register, the minister may contact the organ keeping the register concerned for providing the data requested.

  • Performance with a request for legal assistance for taking evidence falls within the cognizance and territorial competence of the district court (the Central District Court of Buda in Budapest) in the territory of which

    • the domicile or the place of habitual residence of the person to be heard is located,

    • the object to be inspected is located, or

    • the taking of the evidence can be executed otherwise the most expeditiously, in particular, when the domicile or the place of habitual residence of more than one person to be heard or more objects concerned by the inspection are located in the territority of different courts.

  • In the course of performing a request for legal assistance concerning taking evidence, Hungarian law shall apply. A foreign procedural rule may be applied only at the request of the requesting foreign court, unless it violates Hungarian public order.

  • If the requesting foreign court indicated that its member, the parties concerned by the foreign proceedings or their representatives intend to attend the performance of the request for legal assistance, the court performing the legal assistance shall set the date of the performance of the legal assistance taking this into consideration. The court shall notify the minister without delay of the date, place of the taking of the evidence and other circumstances concerning the attendance.

SECTION 80

  • Based on international treaty, the minister may permit in accordance with this section that the person designated as commissioner by the foreign court for this purpose or the member of the foreign court shall perform directly an act of taking evidence in Hungary for the purpose of the foreign proceedings.

  • p. 3325The request for the permission specified in subsection

    • shall be submitted to the minister in Hungarian, English, French or German language. The request shall include the following particulars:

      • the name of the foreign court seised and the number of the case,

      • the name and address of the parties concerned in the proceedings and of their respresentatives,

      • the subject matter of the proceedings,

      • the short description of the facts of the case,

      • the name and contact details of the person who intends to perform an act of taking evidence in Hungary as commissioner or the member of the court,

      • the act of taking evidence to be performed in Hungary,

      • the name and address of the person whose participation is necessary for the performance of the taking of the evidence.

  • The commissioning decision of the foreign court or an equivalent document on behalf of the person acting as commissioner performing the taking of evidence shall be attached to the request.

  • The minister shall not grant the request if the act of taking evidence violated Hungarian public order.

  • If the minister grants the request, he shall notify the district court specified in section 79(3), except if the performance of the act of taking evidence does not require the participation of the court.

  • If the act of taking evidence aims at the hearing of a person, before the hearing

    • this person shall be notified that

      • his participation is voluntary; no negative legal consequence may be effected against him for the denial thereof,

      • in the course of the hearing, he is entitled to use his mother tongue, and

      • his legal counsel may be present in the course of the hearing, and

    • this person’s attention shall be called in accordance with the rules on calling the attention of the witness specified in the Code of Civil Procedure in the case of his hearing as a witness.

  • The notification under subsection (6) shall be provided by the court acting under subsection (5). If no such court exists, the minister shall prescribe the notification by the requesting court and the proof of the notification for the minister as a condition for the granting permission for the taking of the evidence.

  • If the performance of a hearing requires the participation of an interpreter, the requesting court shall provide for the advance on and payment of the fee of the interpreter.

  • When permitting taking evidence in accordance with this section, the minister may establish additional conditions.

SECTION 81

  • The functions of the central body under Article 3(1) and (3) of Council Regulation (EC) No 1206/2001 (hereinafter in this section: regulation) shall be performed by the minister.

  • The performance of the request for legal assistance under Article 1(1) point a) falls within the cognizance and territorial competence of the court specified in section 79(3). If the court accepting the request for legal assistance establishes that its performance falls within the cognizance or territorial competence of another court, it shall forward it to this court within eight days.

  • The minister shall accept and decide a request made by a court of another Member State under Article 17(1) of the regulation; in the course of this, section 80(5)–(9) shall duly apply.

  • The court shall accept the standard forms introduced by the regulation by post, fax and electronically in Hungarian, English or German language.

  • A Hungarian court may take evidence directly in another Member State of the European Union, with the exception of Denmark, for the purpose of proceedings pending before it also outside the way regulated in Article 17 of the regulation. In such a case, the general rules on taking evidence shall apply under the condition that coercive measures shall not be applied.

34. p. 3326PROVISIONS RELATED TO IMMUNITY

SECTION 82

For the purpose of this subtitle, a reference to the state involves:

  • the state,

  • the organs of the state exercising public power, when they act in this capacity, and

  • persons acting as representatives of the state, when they act in this capacity.

SECTION 83

  • Subject to the exceptions specified in this Act, exclusively Hungarian courts shall have jurisdiction in proceedings against the Hungarian state.

  • Subject to the exceptions specified in this Act, a Hungarian court may not proceed in proceedings against a foreign state.

SECTION 84

  • A state cannot claim immunity irrespective of the subject matter of the proceedings

    • if it has expressly waived its immunity,

    • if it has itself instituted the proceedings, it intervened in it or it took any step in the proceedings relating to the merits of the case, or

    • in respect to a counterclaim submitted in proceedings instituted by the state if it is based on the legal relationship which is the subject matter of the legal dispute.

  • A state cannot claim immunity if the subject matter of the proceedings is

    • a right or obligation of the state stemming from a contract under civil law, unless the other party is another state or if the parties agreed otherwise,

    • a right or obligation stemming from a contract of employment or another legal relationship for carrying out work entered into between the state and a natural person, provided that the place of employment is or was in the territory of the state where the proceedings are conducted, unless the employee is a citizen of the employing state or performed a public power function,

    • a claim brought against the state on the grounds of injury caused to life, health, physical integrity or property, provided that the event or omission giving rise to the damage ocurred in the territory of the state where the proceedings are conducted and the person sustaining the damage was in that state at that time,

    • any right, interest of the state in or its possession of an immovable property located in the territory of the state where the proceedings are conducted or the use of the immovable property by the state or the obligations arising out of these,

    • the membership, share or interest of a state in a legal person or an entity without legal personality registered or seated or having its place of central administration in the territory of the state where the proceedings are conducted, or any right or obligation stemming therefrom,

    • a legal relationship of succession of the state related to an estate opened in the territory of the state where the proceedings are conducted,

    • the granting, the content or the termination of an intellectual property right in the state where the proceedings are conducted,

    • any right or interest of the state concerning the treatment of property under insolvency proceedings in the state where the proceedings are conducted, or

    • the validity, interpretation or application of an arbitration agreement concluded by the state for the purpose of the settlement of a legal dispute related to a private law contract, the arbitration procedure conducted based on such an agreement or the setting aside of the award rendered in it, unless the arbitration agreement otherwise provides.

SECTION 85

  • For the purpose of this section, enforcement also involves any provisional or protective measure restraining the right of disposal.

  • p. 3327The waiwer of immunity in accordance with section 84(1) does not mean also a waiwer of the immunity from enforcement.

  • No enforcement may be levied on the property of a foreign state located in Hungary, unless

    • the foreign state has expressly consented to it,

    • the foreign state has separated the property for the satisfaction of the given claim, or

    • the property serves a purpose other than non-commercial governmental activity.

  • For the purpose of subsection (3) point c), in particular

    • property serving the operation of diplomatic missions of the state,

    • property serving the use for military functions,

    • property of the central bank or other financial authority,

    • property belonging to the cultural heritage or archives of the state which is not intended to be alienated,

    • objects of property forming part of a scientific, cultural or historical exhibition which are not intended to be alienated

serve a purpose of non-commercial governmental activity.

SECTION 86

  • Exclusively a Hungarian court may proceed in proceedings brought against a Hungarian citizen acting as a diplomatic representative abroad or otherwise enjoying jurisdictional immunity, unless the Hungarian state or the employing international organisation has expressly waived immunity.

  • A Hungarian court may not proceed in proceedings brought against a foreign citizen acting as a diplomatic representative in Hungary or otherwise enjoying jurisdictional immunity, unless the foreign state or the employing international organisation has expressly waived immunity.

SECTION 87

  • Regarding the service of documents for a foreign state, a legal act of the European Union which has general application and is directly applicable or an international treaty shall apply which regulates the legal assistance for service in respect to the given state, in the absence of this the document shall be served through the minister in charge of foreign affairs.

  • Documents may not be served for a foreign state directly by post.

  • Documents shall be served for an international organisation or a natural person enjoying immunity through the minister in charge of foreign affairs.

Chapter X Jurisdiction

35. GENERAL RULES

SECTION 88

Irrespective of the other jurisdictional rules of this Act, exclusively a Hungarian court may proceed

  • in proceedings, the subject matter of which is a right in rem in immovable property located in Hungary or the rental and lease of such immovable property,

  • in probate proceedings concerning the estate located in Hungary of a deceased person having Hungarian citizenship,

  • in proceedings concerning the annulment of a document issued in Hungary,

  • in proceedings concerning the entry of rights, facts and data in a public register kept in Hungary,

  • in proceedings concerning an enforcement in Hungary.

p. 3328SECTION 89

Irrespective of the other jurisdictional rules of this Act, the jurisdiction of Hungarian courts is excluded

  • in proceedings, the subject matter of which is a right in rem in immovable property located abroad or the rental and lease of such immovable property,

  • in probate proceedings concerning the estate located abroad of a deceased person not having Hungarian citizenship,

  • in proceedings concerning the annulment of a document or security issued abroad,

  • in proceedings related to the granting, the content and the termination of a foreign industrial property right,

  • in proceedings related to the formation, termination of a legal person or an entity not having legal personality (for the purpose of this point hereinafter together: legal person) seated abroad, in proceedings concerning the validity of the contract or statute on the basis of which the legal person is registered and in proceedings concerning the review of the decisions passed by the organs of the legal person,

  • in proceedings concerning the entry of rights, facts and data in public registers kept abroad,

  • in proceedings concerning an enforcement abroad.

SECTION 90

  • In the case of an action brought against more than one defendant, a Hungarian court may proceed against all of the defendants if the domicile or the seat or place of central administration of a legal person or an entity not having legal personality (for the purpose of this chapter hereinafter together: seat) of at least one of the defendants is located in Hungary, provided that the claims are so closely connected that it is expedient to hear and determine them together to avoid the risk of irreconcilable judgments resulting from separate proceedings.

  • In the case of a joint claim brought against both the principal and the secondary obligor, a Hungarian court may proceed irrespective of the domicile or seat of the secondary obligor if the domicile or seat of the principal obligor is located in Hungary.

  • If a Hungarian court has jurisdiction for the adjudication of a claim, it may also proceed in respect of the counterclaim.

SECTION 91

Subject to the exceptions laid down in this Act, the jurisdiction of a Hungarian court is also established if the defendant makes a counterplea without objecting to the lack of jurisdiction (jurisdiction by appearance).

36. MATTERS INVOLVING AN ECONOMIC INTEREST

SECTION 92

A Hungarian court may proceed in all matters involving an economic interest if the defendant’s domicile or seat is located in Hungary.

SECTION 93

A Hungarian court may also proceed in a legal dispute related to a contract if the place of performance of the disputed obligation is located in Hungary. In applying this section, the place of performance of the disputed obligation is

  • the place that was stipulated by the parties in the contract as place of performance, in the absence of this

  • in the case of a contract for the sale of a movable thing, the place where the movable thing was delivered or should have been delivered under the contract,

  • p. 3329in the case of the provision of a service, the place where the service was provided or should have been provided under the contract, or

  • in the case of other contracts, the place determined by Hungarian law as the place of performance of the disputed claim.

SECTION 94

  • A Hungarian court may also proceed in a legal dispute related to non-contractual obligations if the legal fact giving rise to the obligation was realised or may be realised in Hungary, or its result occurred or may occur in Hungary. This provision shall duly apply also to claims stemming from a violation of personality rights.

  • In respect of a claim brought for the compensation of damage caused by crime or a private law claim enforced in criminal proceedings, a Hungarian court may proceed if the criminal act constituting the ground for the procedure falls under Hungarian criminal jurisdiction.

  • In a lawsuit brought for establishing or increasing compensation payments, a Hungarian court may also proceed if the domicile of the person entitled thereto is located in Hungary.

SECTION 95

A Hungarian court may proceed in a procedure the subject matter of which is a right in rem in a movable thing located in Hungary at the time of instituting the procedure.

SECTION 96

In a lawsuit brought against an undertaking seated abroad, a Hungarian court may also proceed if the undertaking has a branch or agency located in Hungary and the legal dispute concerns the activity of the latter, including a case where the contract was concluded in Hungary acting on behalf of the undertaking seated abroad.

SECTION 97

In a lawsuit concerning matters involving an economic interest, a Hungarian court may proceed also against a defendant who has no domicile or seat in Hungary, provided that the defendant has property located in Hungary on which enforcement may be levied. Any claim due to the defendant shall also be considered as the defendant’s property located in Hungary if the debtor of the claim is domiciled in Hungary or if the claim is secured by a thing located in Hungary.

SECTION 98

  • In a succession lawsuit, a Hungarian court may also proceed if the deceased had Hungarian citizenship at the time of his death.

  • A Hungarian notary public may proceed in probate proceedings if the deceased had Hungarian citizenship at the time of his death or if the estate is located in Hungary.

SECTION 99

  • In respect of matters involving an economic interest, the parties may stipulate the jurisdiction of the courts or one or more specific courts of a state for a legal dispute which has arisen or which may arise in the future in connection with a particular legal relationship.

  • An agreement conferring jurisdiction is null and void

    • by which the parties stipulate the jurisdiction of a foreign court in respect of any case, in which the jurisdiction of Hungarian courts is exclusive, or

    • by which the parties stipulate the jurisdiction of a Hungarian court in respect of any case, in which the jurisdiction of Hungarian courts is excluded.

  • Parties may make an agreement conferring jurisdiction

    • in writing,

    • p. 3330verbally with confirmation in writing,

    • in a form which accords with practices which the parties have established between themselves, or

    • in international commerce, in a form which accords with the commercial usages of which the parties are or ought to have been aware and which is widely known to and regularly observed by parties to contracts of the type involved in the particular commerce concerned.

  • An agreement conferring jurisdiction shall be considered as concluded in writing if it came into existence through exchange of messages by electronic means which provides a durable record of the legal declaration of the parties.

  • Regarding the existence and validity of an agreement conferring jurisdiction, in the questions not regulated by this Act, the law of the state of the court or courts stipulated in the agreement conferring jurisdiction shall apply.

  • If the parties made an agreement conferring jurisdiction as part of another contract, concerning its existence and validity, the agreement conferring jurisdiction shall be treated as an agreement independent of the other terms of the contract.

  • Unless the parties agree to the contrary, the jurisdiction stipulated by a choice-of-court agreement shall be exclusive. However, if the parties stipulated the jurisdiction of a foreign court and this court declares that it has no jurisdiction, a Hungarian court may establish its jurisdiction according to the general rules.

SECTION 100

  • A Hungarian court shall have jurisdiction to conduct insolvency proceedings if the debtor legal person has its seat indicated in the statute in Hungary or has a place of operations (branch or other establishment) in Hungary where it carries out non-transitory activity.

  • If a Hungarian court has jurisdiction to conduct insolvency proceedings, it may proceed concerning actions which derive from the insolvency proceedings and are closely linked with them.

  • In insolvency proceedings, sections 91 and 99 shall not be applied.

37. MATTERS CONCERNING FAMILY LAW AND PERSONAL STATUS

SECTION 101

  • In the case specified in Article 7 of Council Regulation (EC) No 2201/2003, a Hungarian court shall have jurisdiction if one of the spouses is a Hungarian citizen.

  • Regarding the establishment of the existence or non-existence of a marriage, a Hungarian court shall have jurisdiction if one of the parties is a Hungarian citizen or the place of habitual residence of the defendant is located in Hungary.

SECTION 102

  • For proceedings on the personal and property relationships of the spouses, a Hungarian court shall have jurisdiction if

    • the place of habitual residence of the defendant spouses is located in Hungary,

    • the last common place of habitual residence of the spouses was located in Hungary, provided that the place of habitual residence of one of the spouses is still located in Hungary at the time of bringing the action,

    • both spouses are Hungarian citizens.

  • For proceedings concerning a matrimonial property relationship, a Hungarian court shall have jurisdiction also if the property constituting the subject matter of the proceedings is located in Hungary.

  • If a legal relationship specified in subsection (1) is settled within the framework of proceedings concerning the matrimonial ties, a Hungarian court may also proceed if it has jurisdiction for these proceedings.

  • If a Hungarian court has jurisdiction for proceedings concerning an inheritance relationship, its jurisdiction extends to the adjudication of any legal issue of matriomonial property related to the inheritance.

SECTION 103

p. 3331Regarding proceedings related to the existence, validity, termination and legal effects of a registered partnership, a Hungarian court shall have jurisdiction if

  • the partnership was entered into in Hungary, or

  • at least one of the registered partners is a Hungarian citizen.

SECTION 104

  • In proceedings for the establishment of origin, a Hungarian court shall have jurisdiction if

    • the child is a Hungarian citizen,

    • the child has his place of habitual residence in Hungary, or

    • in the case of the obligatory involvement in the lawsuit of the defendant or more persons at least one of the defendants has his place of habitual residence in Hungary.

  • In matters on the establishment of origin, section 91 shall not apply.

SECTION 105

  • In proceedings for the authorisation or termination of adoption, a Hungarian court shall have jurisdiction if

    • the child to be adopted or the adopted child is a Hungarian citizen or has his place of habitual residence in Hungary, or

    • the adoptive parent or in the case of adoption by spouses at least one of them is a Hungarian citizen or has his place of habitual residence in Hungary.

  • In adoption matters, section 91 shall not apply.

SECTION 106

  • In the case specified in Article 14 of Council Regulation (EC) No 2201/2003, a Hungarian court shall have jurisdiction in proceedings concerning parental custody, contact and guardianship if the child is a Hungarian citizen.

  • In matters concerning parental custody, contact and guardianship, section 91 shall not apply.

SECTION 107

  • In proceedings related to conservatorship, a Hungarian court shall have jurisdiction if the person to be placed or being under conservatorship is a Hungarian citizen or has his place of habitual residence in Hungary.

  • Subsection (1) shall duly apply also to proceedings related to other protective measures.

  • In matters related to conservatorship and other protective measures, section 91 shall not apply.

SECTION 108

  • Regarding proceedings for the declaration of a person dead or the establishment of the fact of death, a Hungarian court shall have jurisdiction if the missing person

    • had his last known place of habitual residence in Hungary, or

    • was a Hungarian citizen and some domestic legal interest – in particular, the existence of a marriage or registered partnership of the missing person with a spouse or registered partner having Hungarian citizenship or a domicile in Hungary or the settlement of the legal fate of his property located in Hungary – renders it necessary to declare him dead or to establish the fact of his death.

  • In matters for the declaration of a person dead or the establishment of the fact of death, section 91 shall not apply.

Chapter XI p. 3332Recognition and enforcement of foreign decisions

38. GENERAL RULES

SECTION 109

  • The decision of a foreign court shall be recognised if

    • the jurisdiction of the foreign court seised was founded based on this Act,

    • the decision became final or has an equivalent legal effect under the law of the state in which it was rendered, and

    • neither of the grounds for denial specified in subsection (4) applies.

  • If this Act does not provide otherwise, for the purpose of subsection (1) point a), the jurisdiction of the foreign court seised shall be considered as founded if it proceeded based on a ground of jurisdiction which would establish the jurisdiction of a Hungarian court based on this Act.

  • Regarding the recognition of decisions in matters concerning family law and personal status, any other citizenship of a Hungarian citizen shall be taken into consideration in the course of the examination whether the jurisdiction of the foreign court seised was founded.

  • A foreign decision may not be recognised if

    • the recognition thereof violated Hungarian public order,

    • the party against whom the decision was rendered did not participate in the proceedings either in person or by representative, because the summons and the statement of claim or other document on the basis of which the proceedings were instituted was not served for him at his domicile or place of habitual residence in a way and at a time to allow him to prepare for his defence,

    • proceedings were instituted before a Hungarian court for the same right stemming from the same facts between identical parties before instituting foreign proceedings,

    • a Hungarian court rendered previously a final decision on the merits concerning the same right stemming from the same facts between identical parties, or

    • a court of a foreign state other than the state of the court rendering a decision rendered previously a final decision concerning the same right stemming from the same facts between identical parties which complies with the conditions for recognition in Hungary.

SECTION 110

A settlement made in proceedings of a foreign court or another authority may be recognised and enforced in Hungary under the conditions governing decisions.

SECTION 111

If a foreign decision does not comply with the conditions for recognition and enforcement specified by an international agreement entered into by Hungary which is applicable under section 2, it may also be recognised and enforced if it complies with the conditions determined by this Act. For the purpose of this provision, the existence of reciprocity with the state concerned shall be presumed.

SECTION 112

Regarding the recognition of foreign decisions on the legal relationships regulated in subtitles 39–40, the general rules of recognition shall apply subject to the deviations contained in subtitles 39–40.

39. MATTERS INVOLVING AN ECONOMIC INTEREST

SECTION 113

  • In matters involving an economic interest, a further condition for the recognition of decisions is the existence of reciprocity between Hungary and the state of the court rendering the decision.

  • A decision may be recognised even in the absence of reciprocity if

    • p. 3333the jurisdiction of Hungarian courts was excluded in the case, or

    • the jurisdiction of the foreign court seised was based on an agreement of the parties which complies with the provisions of Hungarian law.

SECTION 114

  • A further condition for the recognition of decisions rendered in insolvency proceedings is the existence of reciprocity between Hungary and the state of the court rendering the decision.

  • The recognition of foreign main insolvency proceedings does not preclude the opening of secondary insolvency proceedings before a Hungarian court.

  • A decision opening foreign insolvency proceedings has the legal effects determined by the law of the state of the place of the opening of proceedings in Hungary only if no secondary insolvency proceedings are opened in Hungary.

  • Regarding the recognition of specific legal effects related to foreign main insolvency proceedings, further conditions and special procedural order may be established by law.

SECTION 115

  • In proccedings related to sucession, the jurisdiction of the foreign court seised shall be considered as founded if it was based on

    • the deceased person’s place of habitual residence at the time of his death or

    • the deceased person’s citizenship.

40. MATTERS CONCERNING FAMILY LAW AND PERSONAL STATUS

SECTION 116

  • In proccedings related to the existence, validity and dissolution of marriage, the jurisdiction of the foreign court seised shall be considered as founded if it was based on

    • the place of habitual residence of the defendant spouse,

    • the last common place of habitual residence of the spouses, or

    • the common citizenship of the spouses.

  • A decision of a foreign court, which is final or has equivalent legal effect under the law of the state of the court, on the existence, validity and dissolution of marriage shall be also recognised if the spouse having Hungarian citizenship requests himself the recognition and neither of the grounds for denial specified in section 109(4) applies even if the jurisdiction of the foreign court was not founded according to this Act.

  • By derogation from section 109(4), points c)–e), the recognition of a decision specified in subsection (1) or related to the personal relationships of the spouses may be denied if

    • proceedings were instituted before a Hungarian court for the same right stemming from the same facts before instituting foreign proceedings,

    • a Hungarian court rendered previously a final decision on the merits concerning the same right stemming from the same facts, or

    • a court of a foreign state other than the state of the court rendering a decision rendered previously a final decision concerning the same right stemming from the same facts which complies with the conditions for recognition in Hungary.

SECTION 117

  • In proccedings related to the existence, validity and termination of registered partnership, the jurisdiction of the foreign court seised shall be considered as founded if it was based on

    • the place of habitual residence of the defendant registered partner,

    • the last common place of habitual residence of the registered partners,

    • the common citizenship of the registered partners, or

    • the place where the registered partnership came into existence.

  • Regarding decisions related to the existence, validity and termination of registered partnership, section 116(2)–(3) shall duly apply.

p. 3334SECTION 118

  • In proccedings related to parental custody, contact and guardianship, the jurisdiction of the foreign court seised shall be considered as founded if it was based on

    • the place of habitual residence of the child, or

    • the decision was rendered by the court seised in the matter of the matrimonial ties of the parents of the child, provided that its jurisdiction for the proceedings related to the marriage was founded based on section 101.

SECTION 119

  • In proccedings related to the maintenance arising from a family law relationship or registered partnership, the jurisdiction of the foreign court seised shall be considered as founded if it was based on

    • the place of habitual residence of the defendant,

    • the place of habitual residence of the person entitled to maintenance, or

    • the decision was rendered by the court seised in the matter of personal status, parental custody or guardianship, provided that its jurisdiction was founded based on sections 101 or 103 regarding proceedings concerning personal status, section 106 regarding proceedings concerning parental custody or guardianship, and the claim for maintenance was accessory.

SECTION 120

  • In addition to the conditions specified in section 109, a decision related to the adoption of a child having Hungarian citizenship may be recognised only if the adoption was approved by the Hungarian public guardianship authority. The approval of the Hungarian public guardianship authority is not required in the case of a child having more than one citizenship if one of his citizenships is Hungarian and his place of habitual residence was located at the time of giving the decision in the state of his other citizenship, provided that the adoption has been already approved by the court of the state of his other citizenship.

  • By derogation from subsection (1), a decision of a foreign court, which is final or has equivalent legal effect under the law of the state of the court, shall be recognised if it is requested by the adopted person, who reached the age of legal majority according to Hungarian law and has Hungarian citizenship, and neither of the grounds for denial specified in section 109(4) applies, even if the Hungarian public guardianship authority did not approve the adoption or the jurisdiction of the foreign court is not founded under this Act.

SECTION 121

Instead of section 109(4) c)–e), the recognition of decisions related to

  • origin,

  • adoption,

  • parental custody, contact and guardianship,

  • conservatorship and other protective measures,

  • declaration of death and establishing the fact of death, and

  • bearing a name,

may be denied in the cases specified in section 116(3) a)–c).

41. PROCEDURAL PROVISIONS

SECTION 122

  • No special procedure is required for the recognition of a foreign decision. Unless otherwise provided by law, the question of recognition is examined by the court, in the procedure of which it arises.

  • The party concerned may request the court also in a special procedure to establish that the foreign decision may be recognised in Hungary. The court shall decide on such a request in a non-litigious procedure.

  • p. 3335This procedure falls under the cognizance and exclusive territorial competence of

    • the district court operating at the seat of the regional court according to the domicile (seat), in the absence of this the place of habitual residence located in Hungary of the adverse party (the Central District Court of Buda in Budapest), in the case of a foreign arbitral award, the regional court (the Budapest Regional Court in Budapest),

    • in the absence of this, the district court operating at the seat of the regional court according to the domicile (seat), in the absence of this the place of habitual residence located in Hungary of the claimant (the Central District Court of Buda in Budapest), in the case of a foreign arbitral award, the regional court (the Budapest Regional Court in Budapest), or

    • if the claimant has neither domicile (seat) nor place of habitual residence in Hungary, the Central District Court of Buda, in the case of a foreign arbitral award the Budapest Regional Court.

  • Regarding this procedure, including the available legal remedies, the provisions of the Act on Judicial Enforcement on the issuance of the certificate of enforcement shall duly apply.

  • A foreign decision shall not be subject to review on the merits. The existence of the conditions specified in section 109(1) points a)–b), section 113(1), section 114(1) and section 120(1) which are required for the recognition of a decision in Hungary and the absence of the ground for the denial specified in section 109(4) a) shall be examined ex officio, while the absence of the grounds for the denial specified in section 109(4) b)–e) shall be presumed until the contrary is proved.

  • If the conditions for the recognition of the decision are fulfilled, the court shall order a protective measure at the request of the interested party in accordance with the provisions on the Act on Judicial Enforcement. The order of the protective measure does not hinder the issuance of the certificate of enforcement.

SECTION 123

A foreign decision declared enforceable under the Act on Judicial Enforcement may be enforced in Hungary in accordance with the provisions of the relevant law.

Chapter XII Final provisions

42. AUTHORISING MEASURE

SECTION 124

The minister shall be authorised to establish in a regulation the existence of reciprocity concerning international legal assistance and the recognition and enforcement of foreign decisions.

43. PROVISION ON ENTRY INTO FORCE

SECTION 125

  • This Act shall enter into force on 1 January 2018.

44. TRANSITIONAL PROVISIONS

SECTION 126

  • The provisions of subtitles 31–33 shall apply also to pending proceedings.

  • The provisions of subtitles 38–40 shall apply to decisions rendered after the entry into force of this Act.

  • By derogation from subsection (2), a foreign decision concerning the personal status and family law relationships of a Hungarian citizen, which complies with the provisions of sections 109–111 and sections 116–121, shall be also recognised if it was rendered before the entry into force of this Act.

45. p. 3336PROVISIONS REFERRING TO THE REQUIREMENTS OF THE EUROPEAN UNION

SECTION 127

  • Section 44(4) of this Act serves the compliance with Article 9 of Directive 2002/47/EC of the European Parliament and of the Council of 6 June 2002 on financial collateral arrangements.

  • The following sections of this Act establish implementing provisions:

    • section 81 regarding Council Regulation (EC) No 1206/2001 of 28 May 2001 on cooperation between the courts of the Member States in the taking of evidence in civil or commercial matters,

    • section 101(1) and section 106 regarding Council Regulation (EC) No 2201/2003 of 27 November 2003 concerning jurisdiction and the recognition and enforcement of judgments in matrimonial matters and the matters of parental responsibility, repealing Regulation (EC) No 1347/2000,

    • section 59 regarding Regulation (EC) No 864/2007 of the European Parliament and of the Council of 11 July 2007 on the law applicable to non-contractual obligations (Rome II),

    • section 77 regarding Regulation (EC) No 1393/2007 of the European Parliament and of the Council of 13 November 2007 on the service in the Member States of judicial and extrajudicial documents in civil or commercial matters (service of documents), and repealing Council Regulation (EC) No 1348/2000,

    • section 30 regarding Council Regulation (EU) No 1259/2010 of 20 December 2010 implementing enhanced cooperation in the area of the law applicable to divorce and legal separation,

    • section 3 point c) regarding Regulation (EU) No 1215/2012 of the European Parliament and of the Council of 12 December 2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters.

46. AMENDING PROVISIONS

SECTION 128

  • Section 136(1) of Act XLI of 1991 on Public Notaries (hereinafter: Act on Public Notaries) shall be supplemented with the following point j):

  • (The public notary shall issue a certificate)

‘j) on an extrajudicial oath or vow made for the purpose of foreign proceedings.’

  • The Act on Public Notaries shall be supplemented with the following section 146/A:

‘Section 146/A
  • Before a public notary, for the purpose of foreign proceedings, an extrajudicial oath or vow may be made (hereinafter together in this section: oath). By the oath, the party confirms that the content of the document containing the text of the oath (hereinafter: certificate of oath) corresponds to the reality or his will.

  • The public notary shall certify the oath by a clause written on or attached to the certificate of oath subsequent to the reading of that part of the certificate of oath which contains the oath or the oral presentation of the oath regarding the certificate of oath by the person taking the oath. Regarding the preparation of the clause, section 139 shall duly apply.

  • The public notary may also certify the oath by taking minutes of the text of the oath word by word. The minutes shall be signed by the person taking the oath. The certificate of oath shall constitute an annex to the minutes.

  • In the document issued by a public notary which certifies the oath, reference shall be made to the fact that the oath was taken for the purpose of use in foreign proceedings.’

SECTION 129

Act LIII of 1994 on Judicial Enforcement shall be supplemented with the following section 186(5):

‘(5) The court rendering a decision concerning the certificate of enforcement may order a protective measure if a certificate of enforcement could be issued in accordance with section 208.’

SECTION 130

p. 3337In section 10 point f) of Act LXXV of 1996 on Labour Inspection, the text ‘the Labour Code, Act on Labour Protection and Decree-Law on Private International Law’ shall be replaced by the text ‘the Labour Code and Act on Labour Protection’.

SECTION 131

Section 3 of Act CXVI of 2004 on the Promulgation of Convention on the Taking of Evidence Abroad in Civil or Commercial Matters concluded in the Hague on 17 March 1970 shall be replaced by the following provision:
‘Section 3

Hungary makes the below declarations and reservations to the Convention:

  • reservations based on Article 33 of the Convention:

    • to the second subsection of Article 4:

    Hungary excludes the application of the second subsection of Article 4 of the Convention.

    • to Article 16:

    Hungary excludes the application of Article 16.

    • to Article 18:

    Hungarian authorities do not provide assistance to obtain evidence by compulsion by a diplomatic officer or consular agent based on Article 15 or by a commissioner based on Article 17.

  • declarations to the Convention:

    • to Article 2:

    p. 3338In Hungary, the functions of the Central Authority under Article 2 of the Convention shall be performed by the ministry headed by the minister in charge of justice.

    • to Article 8:

    The members of the requesting court may be present at the execution of acts by the requested court for taking evidence subject to the prior authorisation of the Hungarian Central Authority.

    • to Article 15:

    Based on Article 15 of the Convention, a diplomatic officer or consular agent of another Contracting State may, in the territory of Hungary take evidence without prior authorisation of the Hungarian authorities in aid of proceedings pending in the Contracting State which he represents, provided that it concerns a person who is exclusively a citizen of the State sending the diplomatic or consular agent. Taking the evidence may not involve the application or threat of compulsion or any negative legal consequence.

    • to Article 17:

    The permission specified by the second subsection of Article 17 of the Convention may be granted in Hungary by the Central Authority.

    • to Article 23:

    Hungarian authorities shall not execute requests on procedures known as “pre-trial discovery of documents” except if the request for the legal assistance precisely specifies the document, which shall be rendered available by the person who posseses it and the document is directly connected to the purpose of the proceedings.”’

SECTION 132

Section 3 of Act XXXVI of 2005 on the Promulgation of Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters concluded in the Hague on 15 November 1965 shall be replaced by the following provision:
‘Section 3

Hungary makes the below declarations and reservations to the Convention:

  • to Article 2:

In Hungary, the functions of the Central Authority under Article 2 of the Convention shall be performed by the ministry headed by the minister in charge of justice.

  • to the third subsection of Article 5:

The ways of service determined by the first subsection of Article 5 of the Convention may be applied in Hungary only if the document to be served was provided with an official Hungarian translation or a Hungarian translation deemed appropriate for the purpose of court proceedings by the law of the requesting state.

  • to Article 6:

The certificate specified in Article 6 of the Convention shall be issued in Hungary by the Central Authority.

  • to Article 8:

Hungary opposes that diplomatic or consular agents of foreign states directly serve documents within the territory of Hungary, unless the addressee is a citizen of the State sending the diplomatic or consular agent.

  • to Article 9:

Documents forwarded through consular channel and to be served pursuant to Article 9 of the Convention shall be accepted by the Central Authority in Hungary.

  • to Article 10:

Hungary opposes the application of the ways of service specified in Article 10 of the Convention in its territory.

  • to Article 15:

Hungary declares that Hungarian courts may decide a legal dispute, provided that all the conditions specified in the second subsection of Article 15 of the Convention have been fulfilled.

  • to Article 16:

Hungary declares that an application for relief specified in Article 16 of the Convention will not be entertained if it is filed after one year following the date of the decision.’

SECTION 133

In Annex No. 5, point 2), subpoint a) of Act CLIII of 2010 on the Amendment of Certain Acts Establishing the Budget of 2011 of the Republic of Hungary, the text ‘Decree-Law 13 of 1979 on Private International Law (hereinafter: PIL Decree-Law) or an international treaty mentioned in section 2 of the PIL Decree-Law’ shall be replaced by the text ‘private international law rules’.

47. REPEALING PROVISIONS

SECTION 134

  • Decree-Law 13 of 1979 on Private International Law, and

  • section 4 of Act CXVI of 2004 on the Promulgation of Convention on the Taking of Evidence Abroad in Civil or Commercial Matters concluded in the Hague on 17 March 1970 shall be repealed.

Translation by Tamás Szabados LL.M. (UCL) Ph.D. (ELTE), Senior Lecturer, Department of Private International Law and European Economic Law, Faculty of Law, Eötvös Loránd University (ELTE), Budapest (Hungary).

As adopted by the Hungarian Parliament on 4 April 2017. Translation by Tamás Szabados LL.M. (UCL) Ph.D. (ELTE), Senior Lecturer, Department of Private International Law and European Economic Law, Faculty of Law, Eötvös Loránd University (ELTE), Budapest, Hungary.