HUNGARY Law and Practice Contributed by: Katalin Andreides, Andreides Law
5. Cultural Heritage 5.1 Defining Cultural Heritage
ters and tend only to intervene in cases of bad faith, fraud or defamation. 4.3 Legal Remedies Following a Declaration of Inauthenticity Under Hungarian contract law, a buyer who purchases an artwork later discovered to be misattributed has two options: they can either void the contract or pur - sue a claim for breach of contract. In cases of contract avoidance, the buyer has a claim to rescind the contract and the burden of proof is on the seller to demonstrate that their conduct was rea - sonable under the circumstances, and that they could not have reasonably foreseen the loss at the time the contract was made. The basis for compensation will consist of the current value of the amount paid for the artwork, including interest from the date of the contract, any loss of pecuniary advantage that could have been achieved if the artwork had been authentic, and, finally, all costs necessary for the mitigation or elimination of the financial losses sustained. Conversely, in cases of defective performance or non- performance, the buyer must prove that the loss was foreseeable at the time of the contract’s conclusion. The scope of damages awarded is determined by how the parties agreed to allocate risks when entering into the contract. It is worth noting that a breach of con - tract does not automatically release the breaching party from their performance obligations. Therefore, in certain cases, the buyer may still choose to receive the authentic artwork if it is possible to do so. A contract may be avoided by giving notice to the other party within one year from the date the contract was concluded. If the other party rejects the notice of avoidance, the entitled party can initiate court pro - ceedings within the same one year. In the case of breach of contract, the buyer is required to inform the seller of any lack of conformity without delay. In the case of a consumer contract, if the noti - fication is made within two months of the time the misattribution is detected, it is deemed to have been made in good time.
Hungarian law does not have a single definition for cultural goods: the definition varies depending on the context, such as procedures for illegally exported items, export licensing or immunity from seizure. For the EU system governing the return of cultural objects unlawfully removed from a member state, cul - tural goods are defined as national treasures of artis - tic, historical or archaeological value. When dealing with cultural objects on temporary loan from foreign countries, Hungarian law applies its own definition under cultural heritage protection laws rather than the definition used in the object’s country of origin. This definition includes all significant tangi - ble, pictorial, audio, written records, and other evi - dence related to the origin and development of nature, humanity, the Hungarian nation and Hungarian history, as well as works of art, but excluding real estate. 5.2 Cultural Heritage and Adverse Possession Cultural heritage items held through adverse posses - sion are generally subject to the following. • Public interest and inalienability – Cultural heritage items, particularly those in public collections or of national historical significance, are considered inal - ienable. They cannot be acquired through adverse possession due to cultural heritage protection laws. Cultural objects in public collections, muse - ums, institutions, libraries and archives owned by the state are protected by law. The Office of Cultural Heritage Protection may declare objects in private hands as protected. Objects declared by the Office as protected are registered and changes of ownership are subject to notification. The state also has pre-emption rights for cultural objects declared as protected. • A “good faith” requirement – To claim adverse possession, the possessor must be in good faith, believing they have legitimate ownership. However, if the item was stolen or illicitly obtained, good faith is difficult to establish. • Continuous, uninterrupted public possession – Adverse possession requires continuous, uninter -
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