Civil Code.

The Civil Code regulates civil relationships and determines the sources of civil legislation, which includes the Constitution of Mongolia, this Law and other legislative acts adopted in compliance with them. According to article 1, the purpose of this Code is to regulate relationship with respect to material and non-material wealth arising between legal persons.
The Code is divided into six Parts. Part I contains general provisions governing the legal status and capacity of persons and transactions.; it alsi defines the legal status of minors, legal status of companies, partnerships and cooperatives, and the principles of good faith and fairness. Part II covers property law, including intellectual property, land ownership, and public property. Part III regards general principles of obligations, including contracts and performance of obligations, fines and other remedies, and consumer rights. Part IV relates to contractual liability; whereas Part V covers non-contractual liability, including personal damages. Part VI governs inheritance, including the rules of intestate succession, testamentary succession, and inheritance contracts.
PROPERTY AND REAL RIGHTS. The acquisition, transfer, and protection of property rights is regulated by Part II. Property rights include both movable and immovable property, as well as intellectual property. They can be acquired, transferred, and protected by various means, such as contract, inheritance, prescription, registration, or court decision. Property rights can be limited by law or by agreement of the parties, such as easements, mortgages, pledges, or liens. On the other hand, real rights are the rights of a person to directly control another person’s property, such as the right of ownership, the right of possession, the right of use, the right of usufruct, the right of habitation, or the right of superficies; they can be created, modified, or terminated by law or by agreement of the parties.
OBLIGATIONS AND CONTRACTS. Obligations are the legal relations between a creditor and a debtor, arising from a contract, a wrongful act, an unjust enrichment, or a management of another’s affairs without mandate. Contracts are defined as the agreements of two or more parties to create, modify, or terminate obligations. The Code establishes general principles governing obligations and contracts; they include the following: the parties are free to enter into any contract that is not prohibited by law or contrary to public order or good morals; the parties must perform their obligations in good faith and in accordance with the terms and conditions of the contract; the parties must respect each other’s rights and interests and refrain from causing any harm or damage to each other and must cooperate with each other to achieve the purpose of the contract. As to specific types of contracts regulated by the civil code, the following are included: sales; lease; loan; insurance; agency.
INHERITANCE. Inheritance is the transfer of property rights and obligations of a deceased person to his or her heirs or legatees; it can be based on the law (intestate succession) or on the will of the deceased person (testamentary succession). Intestate succession applies when the deceased person did not leave a valid will or when the will does not cover all the property of the deceased person. The Code lays dow specific provisions on inheritance of farms or agricultural lands. The heirs or legatees of a deceased person who owned a farm or agricultural land have the right to inherit the farm or agricultural land, as well as the buildings, equipment, livestock, and other property related to the farm or agricultural land. Those heirs or legatees must register their inheritance rights in the state register of immovable property within six months after the opening of the succession and they must comply with the relevant laws and regulations on land use, environmental protection, and agricultural production. They may transfer their inheritance rights to another person by contract, donation, exchange, or sale, subject to the approval of the competent authorities; they may also lease their inheritance rights to another person for a period of up to 15 years, subject to the approval of the competent authorities.
WATER. Water resources are considered as public property and are under the exclusive ownership and management of the State, who has the duty to prevent and eliminate water pollution and to ensure the rational and sustainable use of water resources. The State may grant the right to use water resources to individuals or legal entities for a specified period of time and for a specified purpose, subject to the payment of fees. Such right may be transferred, leased or pledged by the holder, subject to the approval of the competent authorities. The holder of the right to use water resources must use them in accordance with the terms and conditions of the grant, and must not cause any harm or damage to the water resources or to other users. In addition, the holder of the right to use water resources must report to the competent authorities on the quantity and quality of water used, and cooperate in monitoring and inspection activities.