§5.4 - Enforceability of Contracts and Civil Debt Claims

(a) A contract shall be defined as any mutually agreed-upon obligation between two or more legal persons, whether oral, written, magical, or symbolic in form, provided that:

(i) All parties possessed capacity and lawful authority to bind themselves;
(ii) The subject of the agreement is legal under this Codex;
(iii) Consent was freely given without coercion, enchantment, or misrepresentation.

(b) Contracts bearing arcane or extraplanar clauses shall be recognized only if:

(i) Filed with the Office of Records and Arcane Registries;
(ii) Bound entities or summoned parties are identified and consenting;
(iii) Terms do not violate §10.1 or any prohibition on planar destabilization.

(c) Contracts may be enforced regardless of form if intent and terms can be clearly demonstrated to the satisfaction of a magistrate or tribunal.

§5.4.2 - Enforceability and Breach

(a) A valid contract shall be enforceable in any tribunal, and remedies may include:

(i) Specific performance;
(ii) Compensatory damages;
(iii) Reformation or cancellation in the event of partial breach or impracticability;
(iv) Magical binding or injunction, when applicable to arcane performance.

(b) Breach of contract shall be defined as:

(i) Failure to perform a material obligation;
(ii) Willful sabotage, deception, or magical interference with performance;
(iii) Refusal to acknowledge a binding agreement without lawful defense.

(c) The harmed party must present the contract, evidence of breach, and proof of harm. Lack of a written document shall not preclude enforcement where witness testimony, magical residue, or divine affirmation exists.

§5.4.3 - Civil Debt Claims

(a) A debt claim arises where a legal person owes coin, goods, labor, or service under a contract, duty, or prior judgment.

(b) Creditors may bring claims before a magistrate or civil tribunal, provided:

(i) Reasonable demand for payment has been made;
(ii) Documentation of debt, ledger, or verbal agreement can be corroborated;
(iii) The claim is filed within one (1) year of due date or event giving rise to obligation.

(c) Debt involving enchanted goods, summoned service, or soul-bound contracts shall be treated as arcano-civil claims and heard before a tribunal versed in magical commerce.

§5.4.4 - Remedies for Debt Recovery

(a) Upon finding of lawful debt, the tribunal may impose:

(i) Mandatory repayment with interest at the rate set by Council ordinance;
(ii) Seizure of assets or property, including enchanted items or familiars;
(iii) Assignment to labor detail or hard service, including placement at Garven Tillerson’s work farm, for term not exceeding ninety (90) days unless extended by ruling;
(iv) Magical escrow, oathbinding, or limited curse to ensure payment compliance.

(b) Debtors may propose structured repayment, service substitution, or magical surety in lieu of asset forfeiture, subject to creditor consent or tribunal approval.

§5.4.5 - Unlawful Enforcement and Debt Coercion

(a) No creditor, guild, entity, or enforcement body shall:

(i) Threaten or enact bodily harm, magical domination, or spiritual compulsion to collect on debt;
(ii) Publicly shame or post false declarations of delinquency;
(iii) Summon extraplanar agents, revenants, or arcane bountyhunters without tribunal writ.

(b) Violations shall be punishable as Major Offenses under §4.1.3 and shall render the underlying debt voidable at the debtor’s election.

§5.4.6 - Records, Arbitration, and Expiration

(a) All contracts and judgments exceeding one hundred (100) gold in value, or involving magical clauses, must be filed with the Office of Civic and Arcane Contracts.

(b) Parties may stipulate to arbitration before a registered Arbiter-at-Contract, whose ruling shall carry the weight of tribunal unless appealed within ten (10) days.

(c) Civil debt claims shall expire three (3) years from the date of breach or final due date unless extended by written acknowledgment or tribunal order. No enforcement shall proceed on expired claims.