Provisions applicable to Traders
Source : Commercial Code 1960

General Provisions Applicable to Traders

Chapter 1.  Provisions Applying to Persons Carrying on a Trade

Art 1.-   Scope of application of the Civil Code.

Unless otherwise provided in this Code, the provisions of the Civil Code shall apply to the status and activities of persons and business organizations carrying on a trade.

Art.2. - Scope of application of the Maritime Code.

The relevant provisions of the Maritime Code shall apply to persons and business organizations carrying on maritime trade.

Art. 3. - Persons and business organizations

The provisions of this Code applicable to persons other than those provisions applicable to physical persons only shall apply to business organizations.  Nothing shall affect the special provisions of Book II and Book V Title IV of this Code applicable to business organizations only.

Art.4. - Bodies corporate under Public Law.

(1) Unless otherwise expressly provided by law, bodies corporate under public law, such as administrative or religious institutions or any other public undertakings, shall not be deemed to be traders even where they carry on activities under Art.5.

(2) The provisions of sub-art. (1) shall not apply to undertakings in which bodies corporate under public law only participate.

Chapter 2. Traders

Art.5. - Persons to be regarded as traders.

Persons who professionally and for gain carry on any of the following activities shall be deemed to be traders:

 (1) Purchase of movables or immovables with a view to re-selling them either as they are or after alteration or adaptation;

 (2) Purchase of movables with a view to letting them for hire;

 (3) Warehousing activities as defined in Art. 2806 of the Civil Code:

 (4) Exploitation of mines, including prospecting for and working of mineral oils;

 (5) Exploitation of quarries not by handicraftsmen;

 (6) Exploitation of salt pans;

 (7) Conversion and adaptation of chattels, such as foodstuffs, raw materials or semi-finished products not by handicraftsmen;

 (8) Building, repairing, maintaining, cleaning, painting or dyeing movables not by handicraftsmen;

 (9) Embanking, leveling, trenching or draining carried out for a third party not by handicraftsmen.

 (10) Carriage of goods or persons not by handicraftsmen;

 (11) Printing and engraving and works connected with photography or cinematography not by handicraftsmen;

 (12) Capturing, distributing and supplying water;

 (13) Producing, distributing and supplying electricity, gas, compressed air including heating and cooling;

 (14) Operating places of entertainment or radio or television stations;

 (15) Operating hotels, restaurants, bars, cafes, inns, hairdressing establishments not operated by handicraftsmen and public baths;

 (16) Publishing in whatever form, and in particular by means of printing engraving, photography or recording;

 (17) Operating news and information services;

 (18) Operating travel and publicity agencies;

 (19) Operating business as an agent, broker, stock broker or commercial agent;

 (20) Operating a banking and money changing business;

 (21) Operating and insurance business.

Art.6. – Agricultural or Forestry undertakings.

 (1) Persons who carry on activities relating to agriculture, forestry, breeding cattle or maintaining pastureland, shall not be deemed to be traders where they sell the products of the land they exploit or use, or animals or the products of animals bred mainly from the resources of the land which the said persons exploit or use.

 (2) Such persons shall not be deemed to be traders whether the exploitation is individual or collective, such as an agricultural community or a cooperative undertaking.

 (3) Nurserymen who sell plants which grow on the land they exploit or use shall not be deemed to be traders.

Art. 7. - Agricultural products How Dealt with.

(1) Persons who carry on activities under Art. 6 (1) shall not be deemed to be traders where they deal with their products in accordance with the usual practice of their business, so long as such dealing relates only to products of the land which they exploit or use, or to animals or products of animals bred mainly from the resources of the land which they exploit or use.

(2) Such persons shall not be deemed to be traders whether the undertaking is individual or collective such as an agricultural community or a cooperative undertaking.

Art.8. – Fishermen and persons breeding fish, shell-fish or shells.

Fishermen and persons who breed fish or shell-fish or shells shall not be deemed to be traders where they sell the products of their fishing or breeding.

Art. 9. – Handicraftsmen.

(1) The provisions of this Code relating to traders shall not apply to handicraftsmen.

(2) Handicraftsmen are persons who carry on an independent activity, who live mainly on their own manual work, who may carry on their activity with the assistance of members of their family and of not more than three employees or apprentices and who buy such material only as is necessary for carrying out their activities, without setting up stocks.

(3) Handicraftsmen may use mechanical power.

(4) Handicraftsmen are subject to the provision of any special law relating to their activities.

Art. 10. - Business Organisations

(1) Business organisations shall be deemed to be of a commercial nature where their objects under the memorandum of association or in fact are to carry on any of the activities specified in Art. 5 of this Code.

(2) Share companies and private limited companies shall always be deemed to be of a commercial nature whatever their objects.

Chapter  3.  Persons Capable of Carrying on a Trade

Art.11. – Persons incapable under the Civil Code.

(1) Persons incapable under the Civil Code may not carry on any trade.

(2) Where incapable persons carry on a trade, they shall not, subject to the provisions of Art. 14 and 15, acquire the status of traders and their acts may be invalidated in accordance with the relevant provisions of the Civil Code.

Art. 12. – Tutors.

Tutors may not carry on a trade in the name and on behalf of a minor except in the cases provided in Art.228 of the Civil Code.  The same provisions shall apply to the tutor of an interdicted person.

Art. 13. – Emancipated Minors.

(1) Notwithstanding the provisions of Art. 333 of the Civil Code, emancipated minors may not carry on a trade unless authorized in writing by the family council.

(2) In default of authorization under sub-art. (1) emancipated minors shall not be deemed to be of age.

Art. 14. – Effect of Minority in relation to third parties.

Notwithstanding the provisions of Art. 318 of the Civil Code, where a minor who carries on a trade has caused himself to be entered in the commercial register as though he were of age, his being a minor shall not affect third parties, in accordance with Art. 121 of this Code.

Art.15. – Publication of incapacity

Where a person has been declared incapable, such incapacity shall not affect third parties unless notice of such incapacity has been entered in the commercial register (Art.121).

Chapter  4.  Carrying on a Trade by Married Persons

Art.16 – Married persons may carry on trade.

Any married person may carry on a trade as though he were unmarried unless his spouse objects thereto as provided in Art. 645 of the Civil Code.

Art. 17. – Notification of objection

(1) As between spouses an objection under Art. 16 may be notified to the trading spouse in any manner.

(2) An objection under Art.16 shall not affect third parties, in accordance with Art. 121 of this code, unless notice of such objection has been entered in the commercial register.

Art 18. – setting aside of objection

(1) where the trading spouse is of the opinion that the objection is not justified, having regard to the interest of the family, he may apply to the family arbitrators to set aside the objection

(2) Where the objection is set aside by the arbitrators, a notice to this effect shall be entered in the commercial register.

Art. 19. – Debts contracted by the trading spouse.

Debts contracted by the trading spouse shall be deemed to be debts of the marriage within the meaning of Art. 659 of the Civil Code and may be recovered on the personal estate of each spouse and on common property.

Art. 20 – Effect of objection.

Where an objection under Art. 16 has been entered in the commercial register, debts contracted by the trading spouse may be recovered on his personal estate only.

Art. 21. – Cooperation of spouses.

Where spouses together carry on a trade, they shall both be deemed to be traders, unless it is shown that one of them is the employee of the other.

Chapter 5 Right to Act as a Trader

Art. 22. – Freedom to carry on trade.

Subject to such prohibitions or lawful restrictions regarding unfair competition as may be prescribed, any person or business organization has the right to carry on any trade in accordance with the provisions regulating such trade.

Art. 23. – Legal prohibitions or restrictions.

(1) Particular persons may be restricted or prevented from acting as traders or from carrying on a particular trade by legal provisions setting up prohibitions or incompatibilities.

(2) Specific requirements as to age, qualifications, sex, nationality or licence may be imposed by law in respect of particular traders.

Art. 24. – Effect of prohibitions and restrictions.

(1) Persons who carry on a trade subject to prohibition or restriction or without having the prescribed qualifications shall be liable to the penalties provided by law.

(2) Persons who carry on a trade subject to prohibition or restriction may not invoke the said prohibition or restriction to free themselves from liabilities incurred in carrying on a trade subject to prohibition or restriction.  They may not hold themselves out to be traders to third parities but they shall be liable as though they were traders.

Art. 25. – Associations.

 (1) Associations may not carry on any trade.

 (2) Any violation of the provisions of sub-art. (1) shall constitute a ground for dissolution under Art. 461 of the Civil Code.

Art.26. – Business organizations carring on trade.

No business organization shall carry on a trade which it is not permitted to carry on or which is subject to specific requirements with which the said business organization has not complied.

Art. 27. Bodies corporate under Public Law.

The cases where a trade may be carried on by administrative or religious institutions or any other public undertaking and the condition and effect of such trade shall be prescribed.

Title II.  Auxiliaries and Agents

Chapter 1. Commercial Employees

Art. 28. – Definition

(1) Commercial employees are persons who are bound to a trader by a contract of employment and who assist the trader by doing work of a non manual nature as a salesman, secretary, accountant, guardian, inspector or director.

(2) Commercial employees are not traders.

Art. 29. – civil Code applicable.

Without prejudice to the provisions of this Code, the provisions of the Civil Code relating to contracts of employment shall apply to commercial Employees.

Art. 30. – Prohibition from carrying on private trade.

1) A commercial employee may not carry on, on his own behalf or on behalf of a third party, a third similar to the trade carried on by his employer.  Where an employee infringes this prohibition, his employer may claim damages and may cancel or refuse to renew the contract of employment in accordance with Art. 2591 of the civil Code.

2) A contract of employment may only contain a prohibition from carrying on private trade upon the expiry of the contract of employment on the conditions specified in Art. 2589, 2590 and 2592 of the Civil Code.

Art.31.- Agents.

1) Commercial employees may act as agents by express or tacit agreement.

2) The revocation of the power of agency shall not result in the cancellation of the contract of employment.

Art. 32. – Powers Employee in charge of sales.

1) The employee in charge of the sales in a store shall be deemed to have a power of agency for the purpose of selling or receiving goods which come within the normal business activities of stores of such nature.

2) He may demand that goods sold by him be paid to him, unless payment is to be made to a special account.

3) The employee may not demand payment outside the store unless so expressly authorized or unless he produces a receipt signed by the trader.

Chapter 2.  Managers

Art. 33. – Definition

1) A manager is a person who has been authorized, expressly or tacitly, to carry out acts of management and to sign in the name of the trader.

2) A manager is not a trader.

Art 34. – Publicity.

1) Where a manager has been appointed, the trader shall cause an entry to be make in the commercial register.

2) The manager shall have power to act by virtue of his appointment, notwithstanding that the provisions of sub-act, (1) have not been complied with.

Art 35. – Powers of Manger.

1) In his relations with third parties, the manager shall be deemed to have full power to carry out all acts of management connected with the exercise of the trade, including the power to sign a negotiable instrument.

2) Unless expressly authorized to do so, he may not sell or pledge immovable property, nor may he sell, hire or pledge a business.

Art. 36. – restriction on powers.

1) The powers of a manager may be limited to the management of a branch.  Such a restriction shall not affect third parties in accordance with art. 121 of this Code unless notice of such restriction has been entered in the commercial register.

2) Any other restriction shall not affect third parties.

Chapter 3.  Commercial Travellers and Representatives

Art. 37. – commercial travelers.

(1) A commercial traveler is a person, domiciled at the place where the head office of the business is situate and bound to a trader by a contract of employment, who is entrusted by the trader with visiting clients and offering to them goods or services in the name and on behalf of the trader.

(2) Unless otherwise agreed, contracts entered into by a commercial traveler shall be of no effect unless confirmed by trader.

(3) Commercial travelers are not traders.

Art..38. – Commercial representatives

(1) A commercial representative is a person, not domiciled at the place where the head office of the business is situate and bound to a trader by a contract of employment, who is entrusted by the trader with visiting clients in a specified area and offering to them goods or services in the name and on behalf of the trader.

(2) Unless otherwise agreed, contracts entered into by commercial representatives shall become effective without confirmation by the trader.

(3) Commercial representatives are not traders.

Art. 39 – Private business

(1) Unless otherwise provided in the contract of employment, commercial travelers and representatives may not carry on private business.  Where they carry on private business, they shall lose their compensation as provided in Art, 42 and 43.

(2) The provisions of Art. 30 (2) shall apply where commercial travelers and representatives have been authorized to carry on private business.

Art. 40. – Acting on behalf of other traders.

(1) Unless otherwise agreed, commercial travelers and representatives may not act on behalf of traders other than the trader to whom they are bound.  Where they act on behalf of other traders, they shall low their compensation as provided in Art. 42 and 43.

(2) In no case may they act on behalf of a trader selling goods or offering services similar to the goods sold or the services offered by the trader to whom they are bound.

Art. 41. – Remuneration

(1) Commercial travelers and representatives shall be paid by salary on commission or both.

(2) The remuneration shall be fixed by the contract of employment or, where not fixed, by custom.

Art. 42. – Compensation in case of termination of contract.

Where the trader terminates the contract without good cause, commercial travelers and representatives who are bound by a contract entered into for an undefined period of time shall be entitled to fair compensation fixed in accordance with Art. 2583 of the Civil Code.

Art. 43. – Compensation on account of client introduced.

Where a contract entered into for an undefined period of time is terminated by the trader or where a contract entered into for a specified period of time is not renewed by the trader, no fault being attributable to the commercial traveler or representative, the commercial traveler or representative shall be entitled to compensation equal to the profit derived from the customers introduced or goodwill created or extended by him.

Chapter  4. Commercial Agents

Art. 44. – Definition.

(1) A commercial agent is a person or business organization, not bound to a trader by a contract of employment and carrying out independent activities, who is entrusted by a trader with representing him permanently in a specified area and dealing or making agreements in the name and on behalf of the trader.

(2) Unless otherwise provided in the agency agreement, contracts entered into by a commercial agent shall become effective without confirmation by the trader.

(3) A commercial agent normally acts as agent and may act as broker.  He is a trader.

Art. 45. – Commercial agent exclusive agent.

Unless otherwise provided in the agency agreement, a commercial agent shall be the exclusive agent of the principal in the area specified in the agreement.

Art. 46. - Duties of commercial agent.

(4) A commercial agent shall safeguard the principal’s interests with the care due by a good trader.

(5) He shall:

(a) carry out all instructions of the principal;

(b) inform the principal of all contracts negotiated or entered into by him;

(c) send to the principal periodical reports on his activities and all such information as may be required on the state of affairs with in the area where he acts.

3. Where the agency agreement comes to and end, a commercial agent may not take advantage of or disclose trade secrets revealed to him by the principal or of which he learned in the course of his duties as an agent.

Art. 47. – Prohibition from carrying on private trade 

(1) A commercial agent carry on private trade which is not similar to the trade carried on by the principal.  The agency agreement may be cancelled and damages may be due where the agent carries on trade similar to the trade carried on by the principal.

(2) Unless otherwise provided in the agency agreement, a commercial agent may not act in the area specified in the agreement on behalf of traders other than the principal.

(3) In no case may a commercial agent act, in the area specified in the agency agreement, on behalf of traders who carry on a trade similar to the trade carried on by the principal.  The agency agreement may be cancelled and damages may be due where the agent disregards this prohibition.

Art 48. – Duties of principal.

The principal shall, to the best of his ability, enable his agent to carry out successfully his duties under the agency agreement, in particular by making all necessary information and samples available to him.

Art. 49. - Repayment of expenses.

Unless otherwise agreed, current costs and expenses of the agency shall be borne by the commercial agent and are not subject to repayment by the principal.  The agent shall only be entitled to the repayment of expenses occasioned by dealings made on behalf of the principal and of such special expenses as were made by him on the order of the principal.

Art. 50. – Remuneration

(1) A commercial agent shall receive remuneration for all dealings negotiated or made by him.  Unless otherwise provided, he shall receive remuneration for all dealings made, in the area where he acts, either by the principal himself or by another agent of the principal.

(2) A commercial agent shall receive remuneration even where dealings made by him are not carried out by the principal.

(3) The remuneration shall be fixed in the agency agreement or, where not fixed, by custom.

Art. 51. – Agent personally to carry out his duties.

A commercial agent may not assign the agency agreement and may not substitute a third party for himself, as an agency agreement is made on the basis of the personal qualifications of the agent.

Art. 52. – Termination of agency agreement.

(1) An agency agreement shall terminate:

(a) where the period of time for which it was entered into expires;

(b) where the agent, being a person, dies, becomes incapable or is declared bankrupt;

(c) where the business organization acting as agent is wound-up.

(2) Either party to an agency agreement made for an undefined period of time may terminate it on notice.  Notice need not be given where there is good cause for termination.

(3) The period of notice shall be fixed in the agency agreement or, where not fixed, by custom.  It shall not be less than one month during the first year of service and not less than two months after the first year.

Art. 53. – Compensation due in case of termination.

Where the principal terminates without good cause and agency agreement entered into for an undefined period of time, the agent shall receive fair compensation which shall be fixed having regard in particular to the time for which he acted on behalf of the principal and to the customers introduced or goodwill created or extended by him.

Art. 54. – Uncompleted business upon termination

(1) Whenever an agency agreement terminates, the agent or his heirs or the business organization having acted as agent shall receive remuneration for all contracts negotiated or entered into prior to the termination of the agreement.

(2) Upon termination of the agreement, all remunerations and expenses due shall be paid forthwith by the principal.

Art. 55. – Prohibition from carrying on similar private trade on termination of the agreement.

(1) The agency agreement may provide that, upon termination of the agreement, the commercial agent shall not carry on the same trade as the principal or act as commercial agent or representative for a trader carrying on the same trade as the principal.

(2) Notwithstanding any provision to the contrary, any such prohibitions shall not be effective for more than five years.

Chapter 5.  Commercial Brokers

Art. 56 – Definition.

(1) A commercial broker is a person or business organization who, independently professionally and for gain, brings parties together for the purpose of their entering into an agreement such as a contract of sale, lease, insurance or carriage.

(2) A commercial broker is a trader, regardless of the parties he brings together and of the nature and object of the contract for the completion of which he acts as and intermediary.

Art. 57. – Notice to parties.

(1) Unless customary or otherwise agreed, a commercial broker shall, where the parties have agreed to enter into a contract, inform both parties of the terms of the proposed contract.

(2) Unless customary or otherwise agreed, the proposed contract shall not become effective unless it is confirmed by both parties.

Art. 58. – Liability of broker.

A commercial broker shall be liable for any damage he causes to either party.

Art. 59. – Remuneration

(1) A commercial broker shall receive remuneration when the contract for the completion of which he acted as an intermediary is entered into whether such contract is performed or not.

(2) Unless customary or otherwise agreed, the remuneration shall be paid only by the party having required the services of the broker.

(3) The remuneration shall be fixed in the agreement, or where not fixed by custom.  The court may reduce the agreed remuneration where it appears excessive and disproportionate to the services rendered by the broker.

Chapter 6.  Commission Agents

Art. 60 – Definition.

(1) A commission agent is a person or business organization who, independently, professionally and for gain, undertakes to buy or to sell in his name, but on behalf of the principal, goods, movables or any other thing of a similar nature, or to enter in his name but on behalf of the principal into a contract of carriage of goods.

(2) A commission agent is a trader regardless of the parties and of the nature and object of the contract.

Art. 61. – Civil Code applicable.

The provisions of Art. 2234-2252 of the Civil Code shall apply to contracts of commission.

Art.62. – Stock brokers.

(1) Stock brokers are commission agents.

(2) Unless otherwise provided by law, they shall be subject to the provisions relating to contracts to contracts of commission.

Title III.  Accounts

Chapter   1.  Keeping of Accounts Compulsory

Art 63.  Traders and Business Organizations.

(1) Any person or business organization carrying on trade shall keep such books and accounts as are required in accordance with business practice and regulations having regard to the nature and importance of the trade carried on.

(2) The provisions of Act. 66-70 of this Code shall apply.

Art. 64. – Petty traders.

Petty traders may be exempted from keeping accounts on such conditions as may be prescribed.

Art. 65. – Special rules applicable to business organisations.

Nothing in this Title shall affect the special provisions of Book II of this Code applicable to business organisations.

Chapter 2.  Books and Accounts to be kept

Art. 66 – Entry of dealings.

(1) Every trader shall keep a journal where he shall make daily entries of all his dealings regardless of the nature of such dealings or of the manner in which they were carried out.

(2) He may at least once a month balance the proceeds of such dealings and shall in such a case preserve all documents necessary for checking these dealings day by day.

Art 67. – Inventory and balance sheet.

(1) When beginning to carry on his trade, every trader shall prepare an inventory and a balance sheet.

(2) A trader shall also, at the end of each financial year, prepare an inventory of his assets and liabilities and balance his accounts for the purpose of preparing the final balance sheet and the projit and loss account.  The balance sheet and the profit and loss account shall be entered in special books.

Art. 68. – Keeping of books.

(1) The books required under Art. 66 and 67 shall be kept in chronological order without any blanks or alterations.

(2) They shall be given a serial number and initialed by the prescribed authority.  The number of pages of which the books consist shall be specified by the prescribed authority on the last page of each book.

Art. 69. – Preservation of books.

All books and accounting documents shall be preserved for ten years from the date of the last entry in such books or from the date of such documents.

Art. 70.  Correspondence.

Originals of all letters, messages or telegrams received and copies of all letters, messages or telegrams sent shall be filed and preserved for ten years.

Chapter 3. Books and Accounts Admissible Evidence

Art.71. – Evidence in favour of party keeping books.

Where a dispute arises between traders as to their commercial activities, the court may, notwithstanding the provisions of Art. 2016 of the Civil Code admit as evidence in favour of a party books and accounts which have been kept by such party according to the provisions of the preceding Articles.

Art. 72. - Evidence against party keeping books.

(1) Books shall prove against the party producing them.

(2) A party who avails himself of books may not conceal any part of such books that may contradict his claim.

Chapter 4. Keeping of Accounts

Art. 73. – Scope of application of this Chapter

(1) The provisions of this Chapter shall apply to all commercial business organisations and to all persons carrying on a trade on such conditions as may be prescribed.

(2) Special requirements may be prescribed in respect of certain kinds of traders or business organizations.  These requirements may differ according to the nature and importance of the trade carried on.

Art. 74. – Assets in the balance sheet.

(1) The balance sheet shall show, as assets, all the debit balances and, as liabilities, all the credit balances.

(2) The assets shall appear in the following order.

(a) Establishment expenses;

(b) Fixed assets;

(c) Stocks;

(d) Short term or liquid assets;

(e) The results (Debit balance of the Profit and Loss Account).

Art. 75. – Liabilities in the Balance Sheet.

The liabilities shall appear in the following order;

(1) The proper capital account and reserves;

(2) Profits brought forward and renewal funds;

(3) Provisions and long term debts; personnel pension funds, if any;

(4) Short term debts;

(5) The results (Credit balance of the Profit and Loss Account).

Art. 76. – Amortisations, provisions, adjustment accounts.

(1) Amortisations and provisions for depreciation shall appear under the respective headings of the assets in the balance sheet.

(2) The adjustment accounts shall appear in the assets or liabilities side of the balance sheet following the accounts to which they relate.

Art. 77. – Establishment expenses.

Establishment expenses are expenses made on the formation of the undertaking or on the undertaking acquiring its permanent means of working.

Art. 78. – Fixed assets.

(1) Fixed assets consist of assets used for working, assets not so used, assets completely amortised, and assets in course of being amortised.

(2) Assets used in working are any assets acquired or manufactured by the undertaking not for sale or for transformation but to be used in a lasting manner as instruments of work.

(3) Assets not used for working are any assets acquired or manufactured by the undertaking by virtue of the employment of capital and not for use as instruments of work.

(4) Assets completely amortised are those still in use but whose value is entirely written off.

(5) Assets in course of being amortised are those which are still not written off at the end of the financial year.

Art.79. – Stocks

Stocks are goods, materials, supplies, semi-finished and finished products, works in progress and packing materials.

Art. 80. – Capital and reserves.

(1) The capital is the original value of the elements put at the disposal of the undertaking by the owner or partners by way of contributions in cash or in kind.

(2) All profits preserved for the undertaking and not forming part of the capital shall constitute a reserve.

Art. 81. – Balance carried forward.

The balance carried forward is made up of previous years’ profits which have not been distributed or transferred to reserves, or of previous years losses which have not been covered by subsequent profits.

Art. 82. – Amortisations and provisions.

(1) Amortisation is the accounting measurement of the loss sustained by the fixed assets that necessarily depreciate with time.

(2) The provisions for risks are intended to provide for definite risks, namely clear precise looses, which are foreseen at the end of the financial year.

(3) The provisions for depreciation are intended to provide for the reduction in the value of some of the assets which can reasonably be expected.

Art. 83. – Adjustment accounts.

The adjustment accounts are intended to correct debts and amounts owing not written in ordinary accounts so that only those effective debts and monies owing appear at any particular financial year.

Art. 84. – Valuation.

(1) Fixed assets shall appear in the balance sheet at their value of origin or if they have been revalued at their revaluation.

(2) Merchandise, materials, suppliers, packing materials in stock at the date of inventory shall be valued at their cost price.

(3) Immovable assets shall appear in the balance sheet at their purchase price.

(4) Wastes (remains of materials and refuse proceeding form manufacture) shall be valued at the ruling price at the date of inventory or in the absence of a ruling price at their probable value of realization.

(5) Products or works in progress shall appear at their cost on the day of the inventory.

Art. 85. – Provisions for depreciation.

If the real value of merchandise, materials, semi-finished products, finished products and packing materials in stock on the day of the inventory is less than the cost price, the trader or commercial business organization shall constitute equivalent provisions for depreciation.

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