A contract is invalid if it has an erased word; has an alteration that is not counter-signed; has a defective seal or signature; lacks the proper legal stamp; is made while a party is a minor, mentally unsound, or under duress; is objected to by any party in court within 10 days; is executed in breach of law or to conceal an illegal act; or otherwise fails to conform to any other requirement by law.
Additionally, Bhutan has codified legislation on specific subtypes of property, such as livestock, and on general property-related transactions, such as security interests.
Also notably, Bhutanese law provides for tolling of interest for mortgagees while incarcerated, and extends some redemption rights to family members of the debtor.
The commission is composed of the Secretaries of the Ministries of Agriculture, Works and Human Settlements, Finance, Trade and Industry, and Home and Cultural Affairs, along with some six other representatives from various public and private interest groups.
[12] Subject to certain limitations, Bhutanese citizens are free to conduct environmentally sound agricultural and commercial activities on the land they own, as well as enter into transactions such as sales and leases.
Because of this ceiling, the law also provides a grace period to dispose of inherited land, or alternatively, intestate succession to the second in line.
Bhutanese intellectual property law recognizes both economic and moral rights of the author; the former is freely assignable in whole or in part.
The Division cites low levels of awareness and innovation along with poor coordination among stakeholders as hampering the development of intellectual property in Bhutan.
[18] Bhutanese law regulates incorporation, capital, debentures, shares and issuance of stock and securities, corporate management and accounting, directorships, mergers and acquisitions, and dissolution.
Notably, licensure to commence business as a Bhutan corporation requires the discretionary approval of the Minister of Trade and Industry;[18]: § 16 imposes joint and several liability upon directors for ultra vires conduct;[18]: § 5(5) and prohibits unsecured debentures.
These include associations, societies, foundations, charitable trusts, nonprofit organizations or other entities outside government that do not distribute any income or profits to their members, founders, donors, directors or trustees.
This body regulates, monitors, and keeps records on all religious organizations in Bhutan, which are in turn required to register and maintain specified corporate formalities.
They also empower immigration inspectors with broad authority to prosecute offenders, and to detain and search persons and places, both public and private.
Election laws establish the eligibility of candidates, parties, and voters, as well as the procedures for voting, counting, and disputing ballots.
While the national Parliament alone has lawmaking authority, many powers including taxation, rulemaking, and law enforcement, have been devolved to elected local governments since the 1990s.
The practice of zhabto lemi (Dzongkha: ཞབས་ཏོག་ལས་མི་; Wylie: zhabs-tog las-mi; "free service; voluntary worker"),[28] a kind of compulsory labor in rural areas for public purposes, was abolished in 2009.
Requirements for certification include the endorsement of a surety, and that the couple consist of one male bridegroom and one female bride per marriage.
The legal status of married couples among polygamous and polyandrous households impacts the division of property upon divorce and survivorship, as well as general admissibility of the marital relationship in courts.
Separation costs are otherwise imposed on violent spouses, on third parties who induce the divorce, and on wives who admit guilt in adultery.
It also deprives the Bhutanese citizen of many government-related benefits, from land allotment ("kidu"), seeds, and loans, to public and foreign-sponsored education.
[32] Bhutanese law generally provides for individual and corporate taxation based on income,[35] sales,[36] imports,[36] and movable and immovable property.
[38] Bhutanese law requires payment of sales tax and excises on goods and services within Bhutan as well as customs on imports according to rates and schedules published by the Ministry of Finance.
[36]: II §§ 38–44, III §§ 12–14, GP §§ 1–18 The law further forth a procedural framework for resolving disputes, which may be appealed to the Royal Court of Justice.
[36]: GP §§ 20–24 As part of Bhutan's program of decentralization, local governments and municipalities – including dzongkhags, gewogs, and thromdes, have been authorized to collect property, services, and transactional taxes since at least 1991.
[42][43][44] The National Security Act pertains mostly to treason and speech crimes, and to unlawful assembly, rioting, and states of emergency.
Foremost, the Code provides for open trials, equal protection of the laws, impartiality, and habeas corpus petition rights.
All jabmi must be Bhutanese citizens; persons of integrity, good character and reputation; not addicted to drugs; not of unsound mind or of mental infirmity; not adjudged bankrupt; not sentenced for criminal offences; have legal qualification recognized by the Jabmi Tshogdey; have undergone the National Legal Course; and have passed the Bar selection examinations.
The duties and virtues inherent in the Buddhist dharma (religious law) played a large role in the new legal code, which remained in force until the 1960s.
The recent and current enforcement of the Driglam Namzha, the code which governs the dress and behavior in public, may be seen as a part of Zhabdrung Ngawang Namgyal's wider legal legacy in Bhutan.
In modern Bhutan, village heads often judged minor cases and dzongkhag (district) officials adjudicated major crimes.