CIVIL CODE OF THE REPUBLIC OF BELARUS
December 7, 1998 No.218-Z
[Amended as of May 7, 2007]
Adopted by the Chamber of Representatives (October 28, 1998)
Approved by the Council of Republic (November 19, 1998)
CHAPTER 29
Change and Dissolution of Contract
Article 420. Grounds for Change and Dissolution of Contract
1. Change and dissolution of a contract shall be possible by agreement of the parties unless otherwise provided by this Code, by other acts of legislation, or by the contract.
2. Upon the demand of one of the parties a contract may be changed or dissolved by decision of a court only:
1) in the event of a significant violation of the contract by the other party;
2) in other instances provided for by this Code, by other acts of legislation, or by the contract.
A violation of a contract by one of the parties which entails for the other party such damage that this party is deprived in significant degree of that which it had the right to count on when concluding the contract shall be deemed to be significant.
3. In the event of a unilateral refusal to perform a contract wholly or partially, when such refusal is permitted by the legislation or by agreement of the parties, the contract shall be considered to be dissolved or changed respectively.
Article 421. Change and Dissolution of Contract in Connection with Significant Change of Circumstances
1. A significant change of circumstances from which the parties proceeded when concluding a contract shall be a grounds for the change or dissolution thereof unless otherwise provided by the contract or it arises from the essence thereof.
A change of circumstances shall be deemed to be significant when they have changed such that if the parties could reasonably foresee this, the contract would not have been concluded at all by them or it would have been concluded on significantly differing conditions.
2. If the parties have not reached agreement concerning the bringing of the contract in conformity with the significantly changed circumstances or the dissolution thereof, the contract may be dissolved, and on the grounds provided for by Clause 4 of this Article, changed by a court at the demand of the interested party when the following conditions simultaneously exist:
1) at the time of concluding the contract the parties proceeded from the fact that such a change of circumstances would not occur;
2) the change of circumstances has been caused by reasons which the interested party could not overcome after they arose with that degree of concern and care which are required for this party by the character of the contract and the conditions of civil turnover;
3) the performance of the contract without a change of its conditions would so violate the relation of property interests of the parties, corresponding to the contract, and entail for the interested party such damage that it would be deprived to a significant degree of that which it had the right to count on when concluding the contract;
4) it does not arise from the essence of the contract that the risk of the change of circumstances is borne by the interested party.
3. In the event of the dissolution of a contract as a consequence of significant change of circumstances the court, upon the demand of any of the parties, shall determine the consequences of the dissolution of the contract by proceeding from the need for a just distribution of the expenses, incurred by the parties in connection with the performance of this contract, between these parties.
4. The change of a contract in connection with a significant change of circumstances shall be permitted by decision of a court in exceptional instances when dissolution of the contract is contrary to the public interests or entails damage for the parties which significantly exceeds the expenditures needed to perform the contract on the conditions changed by the court.
Article 422. Procedure for Change of and Dissolution of Contract
l. An agreement concerning change of or dissolution of a contract shall be concluded in the same form as the contract unless it arises otherwise from the legislation or the contract.
2. A demand concerning change of or dissolution of a contract may be submitted by a party in the court only after receipt of a refusal of the other party to the proposal to change or dissolve the contract or after non-receiving a reply within the period specified in the proposal or established by the legislation or by the contract, and if this period is not specified, within a thirty-day period.
Article 423. Consequences of Change of and Dissolution of Contract
1. In the event of dissolution of the contract the obligations of the parties shall terminate.
2. In the event of change of a contract, the obligations of the parties shall be preserved in the changed form.
3. In the event of change of or dissolution of a contract, the obligations shall be considered to be changed or terminated from the time of the conclusion of an agreement of the parties concerning the change of or dissolution of the contract unless it follows otherwise from the agreement or the character of the change of the contract, and in the event of change of or dissolution of a contract in a judicial proceeding, from the time of coming the decision of the court on change of or dissolution of the contract into legal force.
4. The parties shall not have the right to demand the return of that which was performed by them under the obligation before the time of change or dissolution of the contract, unless otherwise established by the legislation or by the agreement of the parties.
If a significant violation of the contract by one of the parties was the ground for change of or dissolution of a contract, the other party shall have the right to demand compensation of losses caused by change of or dissolution of the contract.
Part Two
SECTION IV. INDIVIDUAL TYPES OF OBLIGATION
CHAPTER 30
Purchase-Sale
§ 1. General Provisions on Purchase-Sale
Article 424. Contract of Purchase-Sale
1. Under a contract of purchase-sale one party (seller) shall undertake to transfer a property (thing, good) to the ownership, economic management or operative administration (hereinafter, for the purposes of this Section, referred as transfer to the ownership, unless it arises otherwise from the essence of the obligation or from the status of the party under the obligation) of the other party (purchaser), and the purchaser shall undertake to accept this property and to pay for it the determined monetary amount (price).
2. The provisions provided for by the present paragraph shall apply to the sale of securities and currency valuables, unless special rules have been established for the purchase-sale thereof by the legislation.
3. In the instances provided for by this Code or other acts of legislation, the peculiarities of the purchase and sale of goods of individual types shall be determined by the legislation.
4. The provisions provided for by the present paragraph shall apply to the sale of property rights unless it arises otherwise from the content or character of these rights.
5. Unless otherwise provided by rules of this Code and other acts of legislation concerning these types of contracts, the provisions provided for by this paragraph shall apply to individual types of contract of purchase-sale (retail purchase-sale, delivery of goods, delivery of goods for state needs, agricultural procurement contract, electric power supply, sale of immovable property, sale of enterprise).
Article 425. Condition of Contract on Good
1. Any things may be a good under a contract of purchase-sale in compliance with the rules provided for by Article 129 of this Code.
2. A contract may be concluded for the purchase-sale of a good which the seller has in his disposal at the time of concluding the contract, and also a good which will be created or acquired by the seller in the future, unless otherwise established by the legislation or unless it so arises from the character of the good.
3. The condition of a contract of purchase-sale concerning a good shall be considered to be agreed if the contract enables to determine the name and quantity of the good.
Article 426. Duties of Seller Relating to Transfer of Good
1. The seller shall be obliged to transfer to the purchaser the good provided for by the contract of purchase-sale.
2. Unless otherwise provided by the contract of purchase-sale, the seller shall be obliged simultaneously with the transfer of the thing to transfer to the purchaser the appurtenances thereto, as well as the documents relating thereto (technical passport, certificate of quality, operating instructions etc.) provided for by the legislation or by the contract.
Article 427. Period for Performance of Duty to Transfer Good
1. The period for the performance by the seller of the duty to transfer the good to the purchaser shall be determined by the contract of purchase-sale, and if the contract does not enable to determine this period, it shall be determined in accordance with the rules provided for by Article 295 of this Code.
2. A contract of purchase-sale shall be deemed to be concluded with a condition of the performance thereof within a strictly determined period if it clearly arises from the contract that in the event of a violation of the period for the performance thereof the purchaser loses interest in the contract.
The seller shall have the right to perform such contract before the ensuing or after the expiry of the period determined therein only with the consent of the purchaser.
Article 428. Time of Performance of Duty of Seller to Transfer Good
1. Unless otherwise provided by the contract of purchase-sale, the duty of the seller to transfer the good to the purchaser shall be considered to be performed at the time of:
1) handing over the good to the purchaser or person specified by him if the duty of the seller relating to the delivery of the good has been provided for by the contract;
2) placing the good at the disposition of the purchaser if the good must be transferred to the purchaser or person specified by him at the location of the good. A good shall be considered to be placed at the disposition of the purchaser when within the period provided for by the contract the good is ready for transfer in the proper place and the purchaser is informed, in accordance with the conditions of the contract, about the readiness of the good for transfer. A good shall not be deemed to be ready for transfer if it is not identified for the purposes of the contract by means of marking or in other form.
2. In the instances when the duty of the seller relating to delivery of a good or transfer of a good at its location to the purchaser does not arise from a contract of purchase-sale, the duty of the seller to transfer the good to the purchaser shall be considered to be performed at the time of handing over the good to the carrier or communications organization for delivery to the purchaser, unless otherwise provided by the contract.
Article 429. Transfer of Risk of Accidental Perishing of Good
1. Unless otherwise provided by the contract of purchase-sale, the risk of accidental perishing or accidental damage of a good shall pass to the purchaser from the time when in accordance with the legislation or the contract the seller is considered to have performed his duty relating to transfer of the good to the purchaser.
2. The risk of accidental perishing or accidental damage of a good sold while en route shall pass to the purchaser from the time of the conclusion of the contract of purchase-sale unless otherwise provided by such contract.
The condition of the contract that the risk of accidental perishing or accidental damage of the good passes to the purchaser from the time of handing over the good to the first carrier may, at the demand of the purchaser, be deemed by a court to be invalid if at the time of concluding the contract the seller knew or should have known that the good has been lost or damaged and have not informed the purchaser about this loss or damage.
Article 430. Duty of Seller to Transfer Good Free of Rights of Third Persons
1. The seller shall be obliged to transfer a good to the purchaser free from any rights of third persons, except for the instance when the purchaser has agreed to accept the good encumbered by the rights of third persons.
The failure of the seller to perform this duty shall give the purchaser the right to demand a reduction of the price of the good or dissolution of the contract of purchase-sale unless it is proved that the purchaser knew or should have known about the rights of third persons to this good.
2. The rules provided for by Clause 1 of this Article shall apply respectively also when with respect to the good at the time of its transfer to the purchaser there are claims of third persons, which were known to the seller, if these claims subsequently were deemed to be lawful in accordance with the established procedure.
Article 431. Liability of Seller in Event of Seizure of Good from Purchaser
1. In the event of the seizure of the good from the purchaser by third persons on grounds which arose before the performance of the contract of purchase-sale, the seller shall be obliged to compensate the purchaser for losses incurred by him except for the instance when the purchaser knew or should have known about the existence of these grounds.
2. An agreement of the parties concerning relieving the seller from liability in the event a property acquired is demanded and obtained from the purchaser by third persons or a limitation of such liability shall be invalid.
Article 432. Duties of Purchaser and Seller in Event of Bringing of Suit Concerning Seizure of Good
If a third person on grounds which arose before performance of the contract of purchase-sale brings suit against the purchaser concerning seizure of the good, the purchaser shall be obliged to involve the seller in the case, and the seller shall be obliged to appear in this case on the side of the purchaser.
The failure of the purchaser to involve the seller in the case shall relieve the seller from liability to the purchaser, if the seller would prove that, by participation in the case, he could avert the seizure of the good from the purchaser.
The seller involved by the purchaser in a case but not taken part therein shall be deprived of the right to prove the incorrectness of the conducting of the case by the purchaser.
Article 433. Consequences of Refusal of Seller to Transfer Good
1. If the seller refuses to transfer the good sold to the purchaser, the purchaser shall have the right to refuse to perform the contract of purchase-sale.
2. In the event of the refusal of the seller to transfer an individually-specified thing, the purchaser shall have the right to submit the demand to the seller provided for by Article 369 of this Code.
Article 434. Consequences of Failure to Fulfill Duty to Transfer Appurtenances and Documents Relating to Good
If the seller does not transfer or refuses to transfer to the purchaser appurtenances or documents relating to the good which he should transfer in accordance with the legislation or the contract of purchase-sale (Article 426(2)), the purchaser shall have the right to designate a reasonable period for the seller to transfer thereof.
When appurtenances or documents relating to a good have not been transferred by the seller within the specified period, the purchaser shall have the right to reject the good unless otherwise provided by the contract.
Article 435. Quantity of Good
1. The quantity of a good subject to transfer to a purchaser shall be provided for by the contract of purchase-sale in respective units of measurement or in monetary expression. The condition concerning the quantity of a good may be agreed by means of establishing, in the contract, the procedure for determining it.
2. If the contract of purchase-sale does not enable to determine the quantity of the good subject to transfer, the contract shall not be considered to be concluded.
Article 436. Consequences of Violation of Condition Concerning Quantity of Good
1. If the seller, in violation of the contract of purchase-sale, has transferred to the purchaser a lesser quantity of the good than that has been determined by the contract, the purchaser shall have the right, unless otherwise provided by the contract, either to demand to transfer the short quantity of the good, or to reject the good transferred and refuse to pay for this good, and if the good has been paid for, to demand the return of the monetary amount paid.
2. If the seller has transferred to the purchaser a good in a quantity exceeding that specified in the contract of purchase-sale, the purchaser shall be obliged to notify the seller thereof in accordance with the procedure provided for by Article 453(1) of this Code. When within a reasonable period after receipt of the notification of the purchaser the seller does not dispose of the respective part of the good, the purchaser shall have the right, unless otherwise provided by the contract, to accept the whole quantity of good.
In the event of the acceptance of the good by the purchaser in a quantity exceeding that specified in the contract of purchase-sale (Clause 2 of this Article), the good additionally accepted shall be paid for at the price determined for the good accepted in accordance with the contract unless another price has been determined by agreement of the parties.
Article 437. Assortment of Goods
1. If under the contract of purchase-sale goods are subject to transfer in a specified relation with regard to types, models, dimensions, colours, or other indicia (assortment), the seller shall be obliged to transfer the goods to the purchaser in the assortment agreed by the parties.
2. If the assortment is not determined in a contract of purchase-sale, and the procedure for the determination thereof has not been established in the contract but it arises from the essence of the obligation that the goods must be transferred to the purchaser in an assortment, the seller shall have the right to transfer the goods to the purchaser in an assortment by proceeding from the requirements of the purchaser which were known to the seller at the time of conclusion of the contract, or to refuse to perform the contract.
Article 438. Consequences of Violation of Condition on Assortment of Goods
1. In the event of the transfer by the seller of goods provided for by the contract of purchase-sale in an assortment which does not correspond to the contract, the purchaser shall have the right to refuse to accept and to pay for these goods, and if these goods have been paid for, to demand the return of the monetary amount paid.
2. If the seller has transferred to the purchaser, together with goods, the assortment of which corresponds to the contract of purchase-sale, goods in violation of the conditions concerning the assortment, the purchase shall have the right, at own discretion, to:
1) accept the goods corresponding to the conditions concerning the assortment and reject the other goods;
2) reject all of the goods transferred;
3) demand the replacement of the goods, which do not correspond to the condition concerning the assortment, with goods in the assortment provided for by the contract;
4) accept all the goods transferred.
3. In the event of the rejection of goods, the assortment of which does not correspond to the condition of the contract of purchase-sale, or of submission of demand concerning replacement of the goods which do not correspond to the condition concerning the assortment, the purchaser shall have the right also to refuse to pay for these goods, and if they have been paid for, to demand the return of the monetary amount paid.
4. Goods which do not correspond to the condition of the contract of purchase-sale concerning assortment shall be considered to be accepted if the purchaser within a reasonable period after the receipt thereof does not notify the seller concerning rejection of the goods.
5. If the purchaser has not rejected goods, the assortment of which does not correspond to the contract of purchase-sale, he shall be obliged to pay for them at the price agreed with the seller. When necessary measures have not been taken by the seller to agree the price within a reasonable period, the purchaser shall pay for the goods at the price which at the time of concluding the contract under comparable circumstances were commonly recovered for similar goods.
6. The rules of this Article shall apply unless otherwise provided by the contract.
Article 439. Quality of Good
1. The seller shall be obliged to transfer to the purchaser a good, the quality of which corresponds to the contract of purchase-sale.
2. If there are no conditions concerning the quality of a good in a contract of purchase-sale, the seller shall be obliged to transfer to the purchaser a good fit for the purposes for which a good of such nature is usually used.
If the seller, when concluding the contract, was informed by the purchaser about the specific purposes of the acquisition of the good, the seller shall be obliged to transfer to the purchaser a good fit for use in accordance with these purposes.
3. In the event of the sale of a good by sample and(or) description, the seller shall be obliged to transfer to the purchaser a good which corresponds to the sample and(or) description.
4. If obligatory requirements for the quality of a good being sold have been provided in accordance with the procedure established by the legislation, then the seller, carrying out entrepreneurial activity, shall be obliged to transfer a good to the purchaser, which corresponds to these obligatory requirements.
By the agreement between the seller and the purchaser a good may be transferred which corresponds to higher quality requirements in comparison with the obligatory requirements, established in accordance with the procedure provided for by the legislation.
Article 440. Guarantee of Quality of Good
1. A good which a seller is obliged to transfer to a purchaser must correspond to the requirements provided for by Article 439 of this Code at the time of the transfer to the purchaser unless another time of determining the conformity of the good to these requirements has been provided for by the contract of purchase-sale, and within the limits of a reasonable period must be fit for the purposes for which the goods of such nature are usually used.
2. When granting of a guarantee of the quality of a good by the seller has been provided for by a contract of purchase-sale, the seller shall be obliged to transfer to the purchaser a good which must correspond to the requirements provided for by Article 439 of this Code during the determined time period established by the contract (guarantee period).
3. A guarantee of the quality of a good also shall extend to all parts comprising it (components) unless otherwise provided by the contract of purchase-sale.
Article 441. Calculation of Guarantee Period
1. A guarantee period shall begin to run from the time of the transfer of the good to the purchaser (Article 428) unless otherwise provided by the contract of purchase-sale.
2. If a purchaser is deprived of the possibility to use the good, with respect to which a guarantee period has been established by the contract, under circumstances within the control of the seller, the guarantee period shall not run until the elimination of the respective circumstances by the seller.
Unless otherwise provided by the contract, a guarantee period shall be extended for the time during which the good could not be used because of defects revealed therein, on condition of the notification of the seller about the defects of the good in accordance with the procedure established by Article 453 of this Code.
3. Unless otherwise provided by the contract of purchase-sale, a guarantee period for components shall be considered to be equal to the guarantee period for the principal good and shall begin to run simultaneously with the guarantee period for the principal good.
4. For a good (component) transferred by the seller in place of a good (component) in which, during the guarantee period, defects were revealed (Article 446), a guarantee period shall be established of the same duration as for replaced good (component), unless otherwise provided by the contract of purchase-sale.
Article 442. Period of Fitness of Good
1. The legislation or other mandatory rules may determine a period upon the expiry of which goods shall be considered to be unfit for use for intended purpose (period of fitness).
2. Goods for which a period of fitness has been established, shall be transferred by the seller to the purchaser so that it may be used for its intended purpose before the expiry of the period of fitness.
Article 443. Calculation of Period of Fitness of Good
The period of fitness of a good shall be determined by the period of time, calculated from the date of its manufacture, during which the good is fit for use, or by the date, until which the good is fit for use.
Article 444. Verification of Quality of Good
1. The verification of the quality of a good may be provided for by the legislation, or by the contract of purchase-sale. The procedure for verification of the quality of goods shall be established by the legislation, or by the contract. If the procedure for verification has been established by the legislation, the procedure for verification of the quality of goods determined by the contract must correspond to these requirements.
2. If the procedure for the verification of the quality of a good is not established in accordance with Clause 1 of this Article, the quality of a good shall be verified in accordance with commonly used conditions for the verification of a good, which is subject to transfer under a contract of purchase-sale.
3. If the duty of the seller to verify the quality of a good transferred to the purchaser (test, analysis, inspection etc.) has been provided for by the legislation, or by the contract of purchase-sale, the seller must provide to the purchaser the evidence of effectuation of verification of quality of the good.
4. The procedure and other conditions for verification of quality of a good, to be effectuated both by the seller and by the purchaser, must be the same.
Article 445. Consequences of Transfer of Good of Improper Quality
1. If the defects of a good were not stipulated by the seller, the purchaser to whom the good of improper quality was transferred shall have the right, at own discretion, to demand from the seller:
1) commensurate reduction of the purchase price;
2) elimination of the defects of the good within a reasonable period without compensation;
3) compensation of the purchaser’s expenses for elimination of defects of the good.
2. In the event of significant violation of the requirements for the quality of a good (reveal of unrepairable defects, defects which can not be eliminated without disproportionate expenses or expenditures of time or are elicited repeatedly, or appear anew after their elimination, and other similar defects), the purchaser shall have the right, at own discretion, to:
1) refuse to perform the contract of purchase-sale and to demand the return of the monetary amount paid for the good;
2) demand the replacement of the good of improper quality by a good corresponding to the contract.
3. Demands concerning the elimination of defects or replacement of a good specified in Clauses 1 and 2 of this Article may be submitted by the purchaser unless it arises otherwise from the character of the good or the essence of the obligation.
4. In the event of the improper quality of part of the goods which are part of a set (Article 449), the purchaser shall have the right to exercise, with respect to this part of the goods, the rights provided for by Clauses 1 and 2 of this Article.
5. The rules provided for by this Article shall apply unless otherwise established by this Code or another acts of legislation.
Article 446. Defects of Good for Which Seller is Liable
1. The seller shall be liable for the defects of a good if the purchaser would prove that the defects of the good arose before the transfer thereof to the purchaser or for reasons which arose before this time.
2. With respect to a good for which a guarantee of quality has been granted by the seller, the seller shall be liable for defects of the good, unless the seller would prove that the defects of the good arose after the transfer thereof to the purchaser as a consequence of a violation, by the purchaser, of the rules for the use of the good or the storage thereof, or the actions of third persons, or force majeure.
Article 447. Periods for Revealing Defects in Transferred Good
1. Unless otherwise established by the legislation or by a contract of purchase-sale, the purchaser shall have the right to submit demands connected with the defects of a good, on condition that they were revealed within the periods established by this Article.
2. If a guarantee period or a period of fitness has not been established for a good, demands connected with defects of a good may be presented by the purchaser on condition that the defects in the good sold were revealed within a reasonable period, but within the limit of two years from the date of the transfer of the good to the purchaser, or a longer period, when such period was established by the legislation or by a contract of purchase-sale. The period for eliciting the defects of a good subject to carriage or to dispatch by post shall be calculated from the date of delivery of the good at the place of its destination.
3. If a guarantee period has been established for a good, the purchaser shall have the right to submit demands connected with defects of the good in the event the defects are revealed during the guarantee period.
When a guarantee period has been established in a contract of purchase-sale for components, which is less in duration than that for the principal good, the purchaser shall have the right to submit demands connected with the defects of the components, if they are revealed during the guarantee period for the principal good.
If a guarantee period has been established in a contract for components which is of lesser duration than that for the principal good, the purchaser shall have the right to submit demands connected with defects of the components, if they are revealed during the guarantee period for it, irrespective of the expiry of the guarantee period for the principal good.
4. With respect to a good for which a period of fitness has been established, the purchaser shall have the right to submit demands connected with defects of the good if they were revealed within the period of fitness of the good.
5. In instances when the guarantee period, provided for by a contract, is less than two years, and the defects of a good are revealed by the purchaser after the expiry of the guarantee period but within the limit of two years from the day of transfer of the good to the purchaser, the seller shall bear liability if the purchaser would prove that the defects of the good arose before the transfer of the good to the purchaser or for reasons which arose before this time.
Article 448. Completeness of Good
1. The seller shall be obliged to transfer to the purchaser a good which corresponds to the conditions of the contract of purchase-sale concerning completeness.
2. When the completeness of a good has not been determined by a contract of purchase-sale, the seller shall be obliged to transfer to the purchaser a good, the completeness of which is determined by commonly presented requirements.
Article 449. Complete Set of Goods
1. If the duty of the seller to transfer to the purchaser a determined set of goods in a complete set (complete set of goods) has been provided for by a contract of purchase-sale, the obligation shall be considered to be performed from the time of the transfer of all goods included in the complete set.
2. Unless otherwise provided for by the contract of purchase-sale and does not arise from the essence of the obligation, the seller shall be obliged to transfer to the purchaser simultaneously all goods which comprise the complete set.
Article 450. Consequences of Transfer of Incomplete Good
1. In the event of the transfer of an incomplete good (Article 448) the purchaser shall have the right, at own discretion, to demand from the seller:
1) commensurate reduction of the purchase price;
2) making the good complete within a reasonable period.
2. If the seller within a reasonable period has not fulfilled the demand of the purchaser to make the good complete, the purchaser shall have the right, at own discretion, to:
1) demand replacement of the incomplete good by a complete one;
2) refuse to perform the contract of purchase-sale and demand the return of the monetary amount paid.
3. The consequences provided for by Clauses 1 and 2 of this Article shall also apply in the event of a violation by the seller of the duty to transfer a complete set of goods (Article 449) to the purchaser unless otherwise provided by the contract of purchase-sale and does not arise from the essence of the obligation.
Article 451. Packaging and Packing
1. Unless otherwise provided by the contract of purchase-sale and does not arise from the essence of the obligation, the seller shall be obliged to transfer the good to the purchaser in packaging and(or) packing, except for a good which by its character does not require packaging and(or) packing.
2. Unless the requirements for packaging and packing have been determined by the contract of purchase-sale, the good must be packaged and(or) packed by the means usual for such good, and in the absence of such, by means ensuring the preservation of goods of such nature under the usual conditions for storage and transportation.
3. If in accordance with the procedure, established by the legislation, obligatory requirements for packaging and(or) packing have been provided for, the seller, who effectuates entrepreneurial activity, shall be obliged to transfer to the purchaser the good in packaging and(or) packing, which corresponds to these obligatory requirements.
Article 452. Consequences of Transfer of Good Without Packaging and(or) Packing or in Improper Packaging and(or) Packing
1. In instances when a good which is subject to packaging and(or) packing is transferred to the purchaser without packaging and(or) packing or in improper packaging and(or) packing, the purchaser shall have the right to demand of the seller to package and(or) to pack the good or to replace the improper packaging and(or) packing unless it arises otherwise from the essence of the obligation or the character of the good.
2. In the instances provided for in Clause 1 of this Article, the purchaser shall have the right instead of submission of demands to the seller which are specified in this Clause to submit to him demands arising from the transfer of a good of improper quality (Article 445).
Article 453. Notification of Seller About Improper Performance of Contract of Purchase-Sale
1. The purchaser shall be obliged to notify the seller about a violation of the conditions of the contract of purchase-sale concerning quantity, assortment, quality, completeness, packaging and(or) packing of the good within the period provided for by the legislation, or the contract, and if such period is not established, within a reasonable period after such violation of the respective condition of the contract should have been revealed, taking into consideration the character and intended purpose of the good.
2. In the event of the failure to fulfill the rules provided for by Clause 1 of this Article, the seller shall have the right to refuse, wholly or partially, to satisfy the demands of the purchaser concerning the transfer to him of the short quantity of the good, replacement of the good which does not correspond to the conditions of the contract of purchase-sale concerning quality or assortment, elimination of the defects of a good, to make the good complete or to replace a good which is not complete with a complete (one), the packaging and(or) packing of a good or the replacement of improper packaging and(or) packing of a good, if the seller would prove that the failure to fulfill these rules by the purchaser has entailed the impossibility of satisfying his demands or entails for the seller incommensurate expenses in comparison with those which he would bear if he had been notified in good time about the violation of the contract.
3. If the seller knew or should have known that the goods transferred to the purchaser do not correspond to the conditions of the contract of purchase-sale, he shall not have the right to refer to the provisions provided for by Clauses 1 and 1 of this Article.
Article 454. Duty of Purchaser to Accept Good
1. The purchaser shall be obliged to accept a good transferred to him except for instances when he has the right to demand the replacement of the good or to refuse performance of the contract of purchase-sale.
2. Unless otherwise provided by the legislation, or by the contract of purchase-sale, the purchaser shall be obliged to perform actions which, in accordance with requirements usually presented, are necessary on his part in order to ensure the transfer and receipt of the respective good.
3. In instances when the purchaser, in violation of the legislation or contract of purchase-sale, does not accept a good or refuses to accept it, the seller shall have the right to demand that the purchaser accept the good or to refuse performance of the contract.
Article 455. Price of Good
l. The purchaser shall be obliged to pay for a good at the price provided for by the contract of purchase-sale or, if it is not provided for by the contract and may not be determined by proceeding from the conditions thereof, at the price determined in accordance with Article 394(3) of this Code, and also to perform, at own expense, actions which in accordance with the legislation, the contract, or requirements usually presented, are necessary in order to effectuate payment.
2. When the price has been established depending on the weight of the good, it shall be determined according to net weight unless otherwise provided by the contract of purchase-sale.
3. If the contract of purchase-sale provides that the price of a good is subject to change depending upon indicators which condition the price of the good (cost of production, expenditures etc.) but does not determine the means for revision of the price, the price shall be determined by proceeding from the relation of these indicators at the time of conclusion of the contract and at the time of transfer of the good. In the event of delay by the seller of performance of the duty to transfer the good, the price shall be determined by proceeding from the relation of these indicators at the time of conclusion of the contract and at the time of transfer of the good provided for by the contract, and if it is not provided for by the contract, at the time determined in accordance with Article 295 of this Code.
The rules provided for by this Clause shall apply unless established other-.wise by this Code, another acts of legislation or the contract and does not arise from the essence of the obligation.
Article 456. Payment for Good
l. The purchaser shall be obliged to pay for the good directly before or after the transfer of the good to him by the seller unless otherwise provided by this Code, another acts of legislation or by the contract of purchase-sale and does not arise from the essence of the obligation.
2. Unless payment by installment for a good has been provided by the contract of purchase-sale, the purchaser shall be obliged to pay to the seller the price of the transferred good in full.
3. If the purchaser does not pay in timely way for the good transferred in accordance with the contract of purchase-sale, the seller shall have the right to demand payment for the good and the payment of interest in accordance with Article 366 of this Code.
4. If the purchaser, in violation of the contract of purchase-sale, refuses to accept and to pay for the good, the seller shall have the right, at own discretion, to demand payment for the good or to refuse performance of the contract.
5. In instances when the seller, in accordance with the contract of purchase-sale, is obliged to transfer to the purchaser not only goods which are not paid for by the purchaser, but also other goods, the seller shall have the right to suspend the transfer of these goods until the full payment for all goods previously transferred, unless otherwise provided by the legislation or contract.
Article 457. Preliminary Payment for Good
1. In instances when the duty of the purchaser to pay for a good wholly or partially before the transfer of the good by the seller (preliminary payment) has been provided for by the contract of purchase-sale, the purchaser must make payment within the period provided for by the contract, and if such period has not been provided by the contract, within the period determined in accordance with Article 295 of this Code.
2. In the event of the failure of the purchaser to perform the duty to pay in advance for the good, the rules provided for by Article 309 of this Code shall apply.
3. In an instance when a seller who has received the amount of preliminary payment does not perform the duty to transfer the good within the established period (Article 427), the purchaser shall have the right to demand the transfer of the good paid for or the return of the amount of preliminary payment for the good not transferred by the seller.
4. Unless otherwise provided by the contract of purchase-sale, in an instance when the seller does not perform the duty relating to the transfer of the good paid for in advance, the amount of preliminary payment shall be subject to the payment of interest in accordance with Article 366 of this Code from the date when, under the contract, the transfer of the good should have been made, up to the date of the transfer of the good to the purchaser or the return to him of the amount paid in advance by him. The duty of the seller to pay interest on the amount of the preliminary payment, commencing from the date of receipt of this amount from the purchaser, may be provided for by the contract.
Article 458. Payment for Good Sold on Credit
l. In an instance when payment for a good over a determined time after the transfer thereof to the purchaser (sale of good on credit) has been provided for by the contract of purchase-sale, the purchaser must make payment within the period provided for by the contract, and if such period is not provided for by the contract, within the period determined in accordance with Article 295 of this Code.
2. In the event of the failure of the seller to perform the duty to transfer the good, the rules provided for by Article 309 of this Code shall apply.
3. In an instance when the purchaser, which received the good, does not perform the duty with regard to payment within the period established by the contract of purchase-sale, the seller shall have the right to demand payment of the good transferred or return of the goods not paid for.
4. Unless otherwise provided by this Code or by the contract of purchase-sale, in an instance when the purchaser does not perform the duty with regard to payment for the good transferred within the period established by the contract, interest shall be subject to payment on the delayed amount in accordance with Article 366 of this Code from the date when under the contract the good should have been paid for up to the date of payment for the good by the purchaser. The duty of the purchaser to pay interest on the amount corresponding to the price of the good, commencing from the date of transfer of the good by the seller, may be provided for by the contract.
5. Unless otherwise provided by the contract of purchase-sale, from the time of transfer of the good to the purchaser and up to the payment for it a good sold on credit shall be deemed to be under pledge to the seller in order to secure performance by the purchaser of its duty with regard to payment for the good.
Article 459. Payment for Good by Installment
1. Payment for a good by installment may be provided for by a contract concerning the sale of a good on credit.
A contract concerning the sale of a good on credit with a condition concerning installment payment shall be considered to be concluded if, together with the other significant conditions of the contract of purchase-sale, the price of the good and the procedure, periods, and amounts of payments have been specified.
2. When a purchaser does not make a regular payment within the period established by the contract for a good sold by installment and transferred to him, the seller shall have the right to refuse performance of the contract and to demand the return of the good sold, except for instances when the amount of payments received from the purchaser exceeds half of the price of the good.
3. The rules provided for by Article 458 (2), (4) and (5) of this Code shall apply to a contract concerning the sale of a good on credit with a condition concerning installment payment.
Article 460. Insurance of Good
The duty of the seller or purchaser to insure a good may be provided for by the contract of purchase-sale.
In an instance when a party obliged to insure a good does not effectuate insurance in accordance with the conditions of the contract, the other party shall have the right to insure the good and demand from the obliged party compensation of expenses for the insurance or to refuse performance of the contract.
Article 461. Preservation of Right of Ownership for Seller
In instances when it is provided by a contract of purchase-sale that the right of ownership in a good transferred to the purchaser shall be preserved for the seller until payment for the good or the ensuing of other circumstances, the purchaser shall not have the right before transfer of the right of ownership to him to alienate the good or otherwise dispose of it unless otherwise provided by the legislation or contract or does not arise from the intended purpose and properties of the good.
In instances when within the period provided for by the contract the transferred good is not paid for and other circumstances do not ensue under which the right of ownership passes to the purchaser, the seller shall have the right to demand from the purchaser to return the good to him unless otherwise provided by the contract.
§ 2. Retail Purchase-Sale
Article 462. Contract of Retail Purchase-Sale
1. Under a contract of retail purchase-sale the seller carrying out entrepreneurial activity relating to the sale of goods on retail shall be obliged to transfer to the purchaser a good intended for personal, family, home, or other use which is not connected with entrepreneurial activity.
2. A contract of retail purchase-sale shall be a public contract (Article 396).
3. The legislation concerning the defense of the rights of consumers shall apply to relations under a contract of retail purchase-sale with the participation of a citizen-purchaser, which are not regulated by this Code.
Article 463. Form of Contract of Retail Purchase-Sale
Unless otherwise provided by the legislation or a contract of retail purchase-sale, including the conditions of standard contracts or other standard forms to which the purchaser adheres (Article 398), a contract of retail purchase-sale shall be considered to be concluded in proper form from the time of the issuance by the seller to the purchaser of a cashier or goods cheque or other document confirming payment of the good. The absence of the said documents with the purchaser shall not deprive him of the possibility to refer to witness testimony in confirmation of the conclusion of the contract and its conditions.
Article 464. Public Offer of Good
1. The proposal of a good in its advertisement, catalogues, and descriptions of the goods addressed to an indefinite group of persons shall be deemed to be a public offer (Article 407(2)) if it contains all the significant conditions of the contract of retail purchase-sale.
2. Exhibition at the place of sale (on counters, in showcases, and so forth) of goods, the demonstration of models thereof, or the granting of information concerning goods being sold (descriptions, catalogues, photographs, and so forth) at the place of sale thereof shall be deemed to be a public offer irrespective of whether the price and other significant conditions of the contract of retail purchase-sale have been specified, except for an instance when the seller visibly determined that the respective goods are not intended for sale.
Article 465. Granting of Information Concerning Good to Purchaser
1. The seller shall be obliged to grant to the purchaser necessary and reliable information concerning the good proposed for sale which corresponds to the requirements established by the legislation, and those usually presented in retail trade for the content and means of granting such information.
2. The purchaser shall have the right before the conclusion of a contract of retail purchase-sale to inspect the good and demand the conducting in his presence of a verification of the properties or demonstration of the use of the good unless this is precluded in view of the character of the good and is not contrary to the rules accepted in retail trade.
3. If the purchaser has not been granted the possibility to receive information immediately at the place of sale, concerning the good, specified in Clauses 1 and 2 of this Article, he shall have the right to demand from the seller the compensation of losses caused by unfounded avoidance of conclusion of the contract of retail purchase-sale (Article 415(4)), and if the contract has been concluded, within a reasonable period to refuse performance of the contract and to require the return of the amount paid for the good and compensation of other losses.
4. A seller who has not granted the purchaser the possibility to receive respective information concerning a good shall bear liability also for defects of the good which arose after its transfer to the purchaser with respect to which the purchaser would prove that they arose in connection with the absence of such information.
Article 466. Sale of Good with Condition Concerning Acceptance Thereof by Purchaser Within Determined Period
A contract of retail purchase-sale may be concluded with a condition concerning acceptance by the purchaser of the good within a period determined by the contract during which this good may not be sold to another purchaser.
Unless otherwise provided by the contract, the failure of the purchaser to appear or the failure to perform other necessary actions in order to accept the good within the period determined by the contract may be considered by the seller as the refusal of the purchaser to perform the contract.
Additional expenses of the seller relating to ensuring the transfer of the good to the purchaser within the period determined by the contract shall be included in the price of the good unless otherwise provided by the legislation or contract.
Article 467. Sale of Goods by Samples
1. A contract of retail purchase-sale may be concluded on the basis of familiarizing the purchaser with a sample of the good (description thereof, catalogue of goods, and so forth) proposed by the seller.
2. Unless otherwise provided by the legislation or the contract, a contract of purchase-sale for a good by a sample shall be considered to be performed from the time of delivery of the good to the place specified in the contract, and if the place of transfer of the good is not determined by the contract, from the time of delivery of the good to the purchaser at the place of residence of the citizen or location of the legal person.
3. A purchaser before the transfer of the good shall have the right to refuse performance of a contract of retail purchase-sale on condition of compensation to the seller for necessary expenses incurred in connection with the performance of actions relating to fulfillment of the contract.
Article 468. Sale of Goods With Use of Automatic Machines
1. In the instances when goods are sold with the use of automatic machines, the possessor of the automatic machines shall be obliged to bring information to purchasers concerning the seller of the goods by means of placing on the automatic machine or granting to the purchasers by other means information concerning the name (firm name) of the seller, location, work regime, and also actions which are necessary to be performed by the purchaser in order to receive the good.
2. A contract of retail purchase-sale with the use of automatic machines shall be considered to be concluded from the time of the performance of actions by the purchaser which are necessary in order to receive the good.
3. If the purchaser has not been granted a good paid for, the seller shall be obliged at the demand of the purchaser to grant the good at once to the purchaser or to return the amount paid by him.
4. In instances when an automatic machine is used to change money, or for the acquisition of banknotes for payment, or for the currency exchange, the rules concerning retail purchase-sale shall apply unless it arises otherwise from the essence of the obligation.
Article 469. Sale of Good with Condition of Delivery Thereof to Purchaser
1. In an instance when a contract of retail purchase-sale has been concluded with a condition concerning delivery of the good to the purchaser, the seller shall be obliged within the period established by the contract to deliver the good at the place specified by the purchaser, and if the place of delivery is not specified by the purchaser, at the place of residence of the citizen or location of the legal person which is the purchaser.
2. A contract of retail purchase-sale shall be considered to be performed from the time of handing of the good over to the purchaser, and in the event of his absence, to any person submitting the receipt or other document testifying to the conclusion of the contract or formalization of the delivery of the good, unless otherwise provided by the legislation or the contract or does not arise from the essence of the obligation.
3. In an instance when the time for delivery of a good for handing over to its purchaser is not determined by the contract, the good must be delivered within a reasonable period after receipt of the demand of the purchaser.
Article 470. Price and Payment for Good
l. The purchaser shall be obliged to pay for a good at the price declared by the seller at the time of concluding the contract of retail purchase-sale unless otherwise provided by the legislation, or does not arise from the essence of the obligation.
2. In an instance when preliminary payment for a good (Article 457) has been provided for by the contract of retail purchase-sale, the failure of the purchaser to pay for the good within the period established by the contract shall be deemed to be repudiation of the contract by the purchaser unless otherwise provided by agreement of the parties.
3. The rules provided for by Article 458(4) of this Code shall not be subject to application to contracts of retail purchase-sale on credit, including with a condition for payment by the purchaser for the goods by installment.
The purchaser shall have the right to pay up for the good at any time within the limits of the installment period for payment for the good established by the contract.
Article 471. Contract of Hire-Sale
It may be provided by a contract that before the transfer of the right of ownership to a good to the purchaser (Article 461) the purchaser shall be the hirer (lessee) of the good transferred to him (contract of hire-sale).
Unless otherwise provided by the contract, the purchaser shall become the owner of the good from the time of paying up the good.
Article 472. Exchange of Good
l. The purchaser shall have the right within fourteen days from the time of the transfer to him of a non-foodstuff good, unless a longer period is declared by the seller, to exchange a good bought at the place of purchase and other places declared by the seller for similar good of another size, form, dimension, style, colour, or complement, making the necessary settlement with the seller in the event of a difference in price.
If the seller does not have the good necessary for the exchange, the purchaser shall have the right to return the acquired good to the seller and to receive the monetary amount paid for it.
The demand of the purchaser concerning an exchange or return of the good shall be subject to satisfaction if the good was not used, has retained its consumer proper ties, and there is evidence of its acquisition from the particular seller.
2. A list of goods not subject to exchange or return on the grounds specified in this Article shall be determined in accordance with the procedure established by the legislation.
Article 473. Rights of Purchaser in Event of Sale to Him of Good of Improper Quality
1. A purchaser to whom a good of improper quality was sold, unless its defects were stipulated by the seller, shall have the right, at own discretion, to demand:
1) replacement of the poor-quality good by a good of proper quality;
2) commensurate reduction of the purchase price;
3) immediate elimination of the defects of the good without compensation;
4) compensation of expenses for elimination of the defects of the good.
The purchaser shall have the right to demand the replacement of a technically sophisticated or expensive good in the event of a significant violation of the requirements for quality (Article 445(2)).
2. In the event of revealing of defects of a good whose properties do not enable them to be eliminated (foodstuffs, domestic sundries, and so forth) the purchaser shall have the right, at own discretion, to demand the replacement of such good by a good of proper quality or commensurate reduction of the purchase price.
3. Instead of presenting the demands provided for by Clauses 1 and 2 of this Article, the purchaser shall have the right to refuse performance of the contract of retail purchase-sale and to demand the return of the monetary amount paid for the good.
In so doing, the purchaser must, at the demand of the seller and at his expense, return the good of improper quality received.
In the event of the return to the purchaser of the monetary amount paid for the good, the seller shall not have the right to retain from it the amount by which the value of the good was lowered because of the full or partial use of the good, loss of goods appearance, or other similar circumstances.
Article 474. Compensation of Difference in Price in Event of Replacement of Good, Reduction of Purchase Price, and Return of Good of Improper Quality
1. In the event of the replacement of a poor-quality good not corresponding to the contract of retail purchase-sale with a good of proper quality, the seller shall not have the right to demand compensation of the difference between the price of the good established by the contract and the price of the good existing at the time of replacement of the good or rendering by a court of a decision concerning replacement of the good.
2. In the event of the replacement of a poor-quality good by the similar good of proper quality, different in dimension, style, quality, or other indicia, the difference between the price of the good being replaced at the time of replacement and the price of the good being transferred in place of the good of improper quality shall be subject to compensation.
If the demand of the purchaser is not satisfied by the seller, the price of the good being replaced and the price of the good being transferred in place of it shall be determined at the time of rendering of the decision by a court concerning replacement of the good.
3. In the event a demand is presented concerning a commensurate reduction of the purchase price of the good, the price of the good at the time of presenting the demand concerning the price reduction shall be taken into consideration, and if the demand of the purchaser is not satisfied voluntarily, at the time of rendering of a decision by a court, concerning the commensurate reduction of the price.
4. In the event of the return to the seller of a good of improper quality the purchaser shall have the right to require compensation for the difference between the price of the good established by the contract of retail purchase-sale and the price of the respective good at the time of voluntary satisfaction of his demand, and if the demand is not satisfied voluntarily, at the time of the rendering of a decision by the court.
Article 475. Liability of Seller and Performance of Obligation in Kind
In the event of the failure of the seller to perform an obligation under the contract of retail purchase-sale, compensation of losses and the payment of a penalty shall not relieve the seller from performance of the obligation in kind.
§ 3. Delivery of Goods
Article 476. Contract of Delivery
Under a contract of delivery the supplier-seller carrying out entrepreneurial activity shall be obliged to transfer goods produced or purchased by him within the stipulated period(s) to the purchaser for use in entrepreneurial activity or for other purposes not connected with personal, family, home, and other similar use.
Article 477. Settlement of Disputes When Concluding Contract of Delivery
1. In an instance when in concluding a contract of delivery disputes arose between the parties with regard to individual conditions of the contract, the party proposing to conclude the contract and receiving a proposal from the other party to agree these conditions must within thirty days from the date of receipt of this proposal, unless another period has been established by the legislation or has been agreed by the parties, take measures relating to agreeing the respective conditions of the contract or inform the other party in writing of his refusal to conclude it.
2. The party who received the proposal relating to respective conditions of the contract but did not take measures relating to agreeing the conditions of the contract of delivery and did not inform the other party about the refusal to conclude the contract within the period provided for by Clause 1 of this Article shall be obliged to compensate the losses caused by the avoidance of agreeing the conditions of the contract.
Article 478. Periods for Delivery of Goods
1. In an instance when the delivery of goods has been provided for by the parties within the period of operation of the contract of delivery by individual lots and the periods of delivery of the individual lots (delivery periods) have not been determined therein, the goods must be delivered in lots of equal measure monthly unless it arises otherwise from the legislation or from the essence of the obligation.
2.Together with the determination of the periods of delivery a delivery schedule for the goods (ten-day, twenty-four hour, hour, and so forth) may be established in the contract of delivery.
3. Goods may be delivered before time with the consent of the purchaser.
Goods delivered before time and accepted by the purchaser shall be credited to the quantity of goods subject to delivery within the following period.
Article 479. Procedure for Delivery of Goods
1. The delivery of goods shall be effectuated by the supplier by means of shipment (transfer) of the goods to the purchaser who is a party to the contract of delivery or to the person specified in the contract as the recipient.
2. In an instance when the right of the purchaser has been provided for by the contract of delivery to give an instruction to the supplier concerning the shipment (transfer) of the goods to the recipients (shipment order), the shipment (transfer) of the goods shall be effectuated by the supplier to the recipients specified in the shipment order.
The content of a shipment order and the period for sending it by the purchaser to the supplier shall be determined by the contract. If the period for sending the shipment order is not provided for by the contract, it must be sent to the supplier not later than thirty days before the ensuing of the delivery period.
3. The failure of the purchaser to submit the shipment order within the established period shall give the supplier the right either to refuse performance of the contract of delivery or to require payment for the goods from the recipient. In addition, the supplier shall have the right to require compensation of losses caused in connection with the failure to submit the shipping order.
Article 480. Delivery of Goods
1. The delivery of goods shall be effectuated by the supplier by means of the shipment thereof by transport provided for by the contract of delivery and on the conditions determined in the contract.
In instances when what type of transport or on what conditions the delivery shall be effectuated is not determined in the contract, the right of choice of the type of transport or determination of the conditions of delivery of the goods shall belong to the supplier unless it arises otherwise from the legislation or the essence of the obligation.
2. The receipt of goods by the purchaser (recipient) at the location of the supplier (selection of goods) may be provided for by the contract of delivery.
If the period of selection is not provided for by the contract, the selection of goods by the purchaser (recipient) must be made within a reasonable period after the receipt of the notice of the supplier concerning the readiness of the goods.
Article 481. Augmentation of Short Deliveries of Goods
1. The supplier who has permitted a short delivery of goods in an individual period of delivery shall be obliged to augment the short-delivered quantity of goods within the following period(s) within the limits of the period of operation of the contract of delivery unless otherwise provided by the contract.
2. In an instance when goods have been shipped by the supplier to several recipients specified in the contract of delivery or shipment order of the recipient, the goods delivered to one recipient in excess of the quantity provided for in the contract or shipment order shall not be credited to cover the short delivery to other purchasers unless otherwise provided by the contract.
3. The purchaser shall have the right, having informed the supplier, to refuse acceptance of the goods which delivery has been delayed unless otherwise provided in the contract. The goods delivered before receipt of the notice by the supplier the purchaser shall be obliged to accept and to pay for.
Article 482. Assortment of Goods When Augmenting Short Delivery
1. The assortment of goods whose short delivery is subject to augmentation shrill be determined by agreement of the parties In the absence of such agreement the supplier shall be obliged to augment the short-delivered quantity of the goods in the assortment established for that period in which the short delivery was committed.
2. The delivery of goods of one name in a larger quantity than is provided for the contract of delivery shall not be credited towards covering the short delivery of goods of another name within the same assortment and shall be subject to augmentation except for instances when such delivery was made with the prior written consent of the purchaser.
Article 483. Acceptance of Goods by Purchaser
1. The purchaser (recipient) shall be obliged to perform all necessary actions ensuring the acceptance of goods delivered in accordance with the contract of delivery.
2. Goods accepted by the purchaser (recipient) must be inspected by him within the period determined by the legislation or the contract of delivery.
The purchaser (recipient) shall be obliged within the same period to verify the quantity and quality of the goods accepted in accordance with the procedure established by the legislation or the contract and to inform the supplier about elicited nonconformities or short deliveries of goods immediately in writing.
3. In the event of the receipt of goods delivered from a transport organization, the purchaser (recipient) shall be obliged to verify the conformity of the goods to the information specified in the transport and accompanying documents, and also to accept these goods from the transport organization in compliance with the rules provided for by the legislation regulating the activity of transport.
Article 484. Custody of Good Not Accepted by Purchaser
1. When the purchaser (recipient) in accordance with the legislation, or contract of delivery refuses a good transferred by the supplier, he shall be obliged to ensure the preservation of this good (custody) and immediately notify the supplier.
2. The supplier shall be obliged to remove the good accepted by the purchaser (recipient) for custody or to dispose of it within a reasonable period.
If the supplier within this period does not dispose of the good, the purchaser shall have the right to realize the good or to return it to the supplier.
3. Necessary expenses incurred by the purchaser in connection with the acceptance of the good for custody, realization of the good, or the return thereof to the seller shall be subject to compensation by the supplier.
In so doing, that received from the realization of the good shall be transferred to the supplier, deducting that due to the purchaser.
4. In instances when the purchaser does not accept a good from the supplier or refuses acceptance thereof without grounds established by the legislation or the contract, the supplier shall have the right to require payment for the good from the purchaser.
Article 485. Selection of Goods
1. When the selection of goods by the purchaser (recipient) has been provided for by the contract of delivery at the location of the supplier (Article 480(2)), the purchaser shall be obliged to effectuate the inspection of the goods to be transferred to the place of their transfer unless otherwise provided by the legislation, or it does not arise from the essence of the obligation.
2. The failure of the purchase (recipient) to select goods within the period established by the contract of delivery, and in the absence thereof within a reasonable period after receipt of the notice of the supplier concerning the readiness of the goods shall give the supplier the right to refuse performance of the contract or to require payment for the goods from the recipient.
Article 486. Settlement of Accounts for Goods to be Delivered
1. The purchaser shall pay for delivered goods in compliance with the procedure and form for the settlement of accounts provided for by the contract of delivery. If the procedure and form for the settlement of accounts has not been determined by agreement of the parties, the settlement of accounts shall be effectuated by payment orders.
2. If it is provided by a contract of delivery that the payment for goods is effectuated by the recipient (payer) and the latter unfoundedly has refused to pay or did not pay for the goods within the period established by the contract, the supplier shall have the right to require payment for the goods delivered from the purchaser.
3. In an instance when the delivery of goods by individual parts within a set is provided for in a contract of delivery, payment for the goods by the purchaser shall be made after the shipment (selection) of the last part within the set unless otherwise established by the contract.
Article 487. Packaging and Packing
Unless otherwise established by the contract of delivery, the purchaser (recipient) shall be obliged to return to the supplier nondisposable packaging and means of packing in which the good arrived in accordance with the procedure and within the periods established by the legislation.
Other packaging, and also packing, of the good shall be subject to return to the supplier only in the instances provided for by the contract.
Article 488. Consequences of Delivery of Goods of Improper Quality
1. The purchaser (recipient) to whom the goods of improper quality are delivered shall have the right to submit demands to the supplier provided for by Article 445 of this Code except for the instance when the supplier who received the notice of the purchaser concerning defects of the delivered goods replaces without delay the goods delivered with goods of the proper quality.
2. The purchaser (recipient) carrying out the sale of goods delivered to him at retail shall have the right to demand the replacement of a good of improper quality, returned by a consumer, within a reasonable period, unless otherwise provided by the contract of delivery.
Article 489. Consequences of Delivery of Incomplete Goods
1. The purchaser (recipient) to whom goods have been delivered in violation of the conditions of a contract of delivery, the requirements of the legislation, or requirements usually presented for completeness shall have the right to submit the demands to the supplier provided for by Article 450 of this Code, except for the instance when the supplier who has received notice of the purchaser concerning the incompleteness of the delivered goods without delay makes the goods complete or replaces them with complete goods.
The purchaser (recipient) carrying out the sale of goods at retail shall have the right to demand replacement of the incomplete goods, returned by a consumer, within a reasonable period with complete ones, unless otherwise provided by the contract of delivery.
Article 490. Rights of Purchaser in Event of Failure to Deliver Goods, Failure to Fulfill Requirements
Concerning Elimination of Defects of Goods or Completing Sets of Goods
1. If the supplier does not deliver the quantity of goods provided for by the contract of delivery or did not fulfill the demands of the purchaser concerning the replacement of poor-quality goods or concerning the completion of the sets of goods within the established period, the purchaser shall have the right to acquire the nondelivered goods from other persons, relegating to the supplier all necessary and reasonable expenses for the acquisition thereof.
2. The calculation of the expenses of the purchaser for the acquisition of goods from other persons in instances of the short delivery thereof by the supplier or the failure to fulfill the demands of the purchaser concerning elimination of the defects of the goods or concerning the completion of sets of the goods shall be made according to the rules provided for by Article 494(1) of this Code.
3. The purchaser (recipient) shall have the right to refuse to pay for goods of improper quality and incomplete goods, and if such goods have been paid for, to require the return of the paid amounts until elimination of the defects and completion of the sets of the goods or the replacement thereof.
Article 491. Penalty for Short Delivery or Delay of Delivery of Goods
The penalty established by the legislation or contract of delivery for the short delivery or delay of delivery of goods shall be recovered from the supplier until the actual performance of the obligation within the limits of his duty to augment the short-delivered quantity of goods within subsequent delivery periods unless another procedure for payment of the penalty has been established by the legislation or the contract.
Article 492. Cancellation of Obligations of Same Kind Under Several Contracts of Delivery
1. In instances when the delivery of goods of the same name is effectuated by the supplier to the purchaser simultaneously under several contracts of delivery and the quantity of goods delivered is insufficient in order to cancel the obligations of the supplier under all the contracts, the goods delivered must be credited to the performance of the contract specified by the supplier when carrying out delivery or without delay after the delivery.
2. If the purchaser paid the supplier for goods of one name received under several contracts of delivery and the amounts of payment are insufficient to cancel the obligations of the purchaser under all the contracts, the amount paid must be credited to performance of the contract specified by the purchaser when carrying out payment for the goods or without delay after payment.
3. If the supplier or purchaser did not take advantage of the rights granted respectively by Clauses 1 and 2 of this Article, the performance of the obligation shall be credited to cancellation of the obligations under the contract whose period of performance ensued earlier. If the period of performance of obligations under several contracts has ensued simultaneously, the performance granted shall be credited in proportion to the cancellation of obligations under all the contracts.
Article 493. Unilateral Refusal of Performance of Contract of Delivery
1. A unilateral refusal of performance of a contract of delivery (wholly or partially) or a unilateral change thereof shall be permitted in the event of a material violation of the contract by one of the parties (Article 420(2)).
2. A violation of a contract of delivery by the supplier shall be presupposed to be material in instances of:
the delivery of goods of improper quality with defects which can not be eliminated within a period acceptable to the purchaser;
the repeated violation of the periods for delivery of goods.
3. The violation of a contract of delivery by the purchaser shall be presupposed to be material in instances of:
the repeated violation of the periods for the payment of goods;
the repeated failure to select goods.
4. A contract of delivery shall be considered to be changed or dissolved from the time of receipt by one party of notice by the other party concerning the unilateral refusal of performance of the contract wholly or partially unless another period for dissolution or change of the contract is provided for in the notice or has been determined by agreement of the parties.
Article 494. Calculation of Losses in Event of Dissolution of Contract
1. If within a reasonable period after dissolution of the contract as a consequence of a violation of an obligation by the seller the purchaser has bought from another person a good at a higher but reasonable price in place of that provided for by the contract, the purchaser may submit a demand to the seller concerning compensation of losses in the form of the dif ference between the price established in the contract and the price of the transaction concluded in lieu.
2. If within a reasonable period after dissolution of the contract as a consequence of a violation of an obligation by the purchaser the seller has sold the good to another person at a lower but reasonable price than that provided for by the contract, the seller may submit a demand to the purchaser concerning compensation of losses in the form of the difference between the price established in the contract and the price for the transaction concluded in lieu.
3. If after the dissolution of a contract on the grounds provided for by Clauses 1 and 2 of this Article a transaction has not been concluded in place of the dissolved contract and for the particular good there is a current price, a party may submit a demand concerning compensation of losses in the form of the difference between the price established in the contract and the current price at the time of dissolution of the contract.
The current price shall be deemed to be the price usually recovered under comparable circumstances for an similar good at the place where the transfer of the good should have been effectuated. If a current price does not exist at that place, the current price applied in another place may be used which may serve as a reasonable replacement, taking into account the difference in expenses for the transportation of the good.
3. Satisfaction of the demands provided for by Clauses 1, 2, and 3 of this Article shall not relieve the party which did not perform or which improperly performed the obligation from compensation of other losses caused to the other party on the basis of Article 14 of this Code.
§ 4. Delivery of Goods for State Needs
Article 495. Grounds for Delivery of Goods for State Needs
1. The delivery of goods for state needs shall be effectuated on the basis of a state contract for the delivery of goods for state needs, and also contracts for delivery of goods concluded in accordance therewith for state needs (Article 499(2)). state needs shall be deemed to be requirements of the Republic of Belarus or its administrative territorial units determined in accordance with the procedure established by the legislation which are ensured, as a rule, at the expense of assets of the budgets and extrabudgetary sources of financing.
2. The rules concerning the contract of delivery (Articles 476-493) shall apply to relations relating to the delivery of goods for state needs unless otherwise provided by this Code or other acts of legislation.
The legislation on the delivery of goods for state needs shall apply to relations relating to the delivery of goods for state needs in the part not regulated by the present paragraph.
Article 496. State Contract for Delivery of Goods for State Needs
Under a state contract for the delivery of goods for state needs thereinafter referred to as state contract), the supplier (executor) shall be obliged to transfer the goods to the state customer or at his instruction to another person, and the state customer shall be obliged to ensure payment for the goods delivered.
Article 497. Grounds for Conclusion of State Contract
1. A state contract shall be concluded on the basis of the order of a state customer for the delivery of goods for state needs accepted by the supplier (executor).
The conclusion of a state contract shall be obligatory for the state customer which placed the order accepted by the supplier (executor).
2. The conclusion of a state contract shall be obligatory for the supplier (executor) only in the instances established by the legislation and on condition that the Slate customer will compensate all losses which may be caused to the supplier (executor) in connection with the fulfillment of the state contract.
3. The condition concerning compensation of losses provided for by Clause 2 of this Article shall not apply with respect to a fisc enterprise.
4. If the order for the delivery of goods for state needs is placed according to a competition, the conclusion of a state contract with the supplier (executor) who is declared the winner of the competition shall be obligatory for the state customer.
Article 498. Procedure for Conclusion of State Contract
1. The draft state contract shall be worked out by the state customer and sent to the supplier (executor) unless otherwise provided by agreement between them.
2. The party who has received the draft state contract shall sign it within not later than a thirty-day period and return one example of the state contract to the other party, and if there are disagreements re garding the conditions of the state contract shall draw up within the same period a protocol of disagreements and send it together with the signed state contract to the other party or inform it of the refusal to conclude the state contract.
3. The party who has received the state contract with the protocol of disagreements must within thirty days consider the disagreements, take measures to agree them with the other party, and inform the other party about the acceptance of the state contract in the wording thereof or reject the protocol of disagreements.
In the event of the rejection of the protocol of disagreements or expiry of this period, the unsettled disagreements with regard to the state contract whose conclusion is obligatory for one of the parties may be transferred by the other party within not later than thirty days for the consideration of a court.
4. In an instance when a state contract is concluded according to the results of a competition for the placement of an order for the delivery of goods for state needs, the state contract must be concluded not later than twenty days from the date of conducting the competition.
5. If the party for which the conclusion of a state contract is obligatory evades the conclusion thereof, the other party shall have the right to apply to a court with the demand to compel this party to conclude the state contract.
Article 499. Conclusion of Contract for Delivery of Goods for State Needs
1. If it is provided by a state contract that the delivery of goods shall be effectuated by a supplier (executor) determined by the state customer to the purchaser under contracts for delivery of goods for state needs, the state customer shall not later than a thirty-day period from the date of signing of the state contract send notice to the supplier (executor) and to the purchaser concerning the attachment of the purchaser to the supplier (executor).
The notice concerning the attachment of the purchaser to the supplier (executor) issued by the state customer in accordance with the state contract shall be grounds for the conclusion of the contract for delivery of goods for state needs.
2. The supplier (executor) shall be obliged to send the draft contract for delivery of goods for state needs to the purchaser specified in the notice concerning the attachment not later than thirty days from the date of receipt of the notice from the state customer unless another procedure for the preparation of the draft contract is provided for by the state contract or the draft contract is not submitted by the purchaser.
3.The party who has received the draft contract for delivery of goods for state needs shall sign it and return one example to the other party within thirty days from the date of receipt of the draft, and if there are disagreements with regard to the ton- tract to draw up within this same period a protocol of disagreements and send ii together with the signed contract to the other party.
4. The party who has received the signed draft contract for delivery of goods for state needs with the protocol of disagreements must within thirty days consider the disagreements, take measures to agree the conditions of the contract with the other party, and notify the other party about the acceptance of the contract in the wording thereof, or about rejection of the protocol of disagreements. The unsettled disagreements within a thirty-day period may be transferred by the interested party for consideration of a court.
5. If the supplier (executor) evades conclusion of the contract for delivery of goods for state needs, the purchaser shall have the right to apply to a court with a demand concerning compelling the supplier (executor) to conclude the contract on the conditions of the draft contract worked out by the purchaser.
Article 500. Refusal of Purchaser to Conclude Contract for Delivery of Goods for State Needs
1. The purchaser shall have the right wholly or partially to refuse goods specified in the notice concerning attachment and to refuse to conclude the contract for the delivery thereof.
In this event the supplier (executor) must immediately inform the state customer and shall have the right to demand from him notice concerning attachment to another purchaser.
2. The state customer shall not later than thirty days from the date of receipt of the notification of the supplier (executor) either issue the notice concerning attachment of another purchaser to him or send to the supplier (executor) a shipment order specifying the recipient of the goods or communicate his consent to accept and to pay for the goods.
In the event of the failure to fulfill the duties provided for by Clause 2 of this Article by the state customer, the supplier (executor) shall have the right either to require the state customer to accept and pay for the good or to realize the good at his discretion, relegating reasonable expenses connected with the realization thereof to the state customer.
Article 501. Performance of State Contract
1. In instances when in accordance with the conditions of the state contract the delivery of goods is effectuated directly to the state customer or at his instruction (shipment order) to another person (recipient), the relations of the parties with regard to the performance of the state contract shall be regulated by the rules provided for by Articles 476-493 of this Code.
2. In instances when the delivery of goods for state needs is effectuated by the recipient specified in the shipment order, the goods shall be paid for by the state customer unless another procedure for the settlement of accounts is provided for by the state contract.
Article 502. Payment for Good Under Contract for Delivery of Goods for State Needs
In the event of the delivery of goods to purchasers under contracts for delivery of goods for state needs, the goods shall be paid for by the purchasers at the prices determined in accordance with a state contract unless another procedure for determining the prices and settlement of accounts has been provided for by the state contract.
In the event of payment by the purchaser for goods under a contract for delivery of goods for state needs, the Slate customer shall be deemed to be a surety of the purchaser with regard to this obligation (Articles 341-347).
Article 503. Compensation of Losses Caused in Connection with Fulfillment or Dissolution of State Contract
1. Unless otherwise provided by legislation on the delivery of goods for state needs or by the state contract, losses which were caused to the supplier (executor) in connection with the fulfillment of the state contract (Article 497(2)) shall be subject to compensation by the state customer not later than thirty days from the date of transfer of the good in accordance with the state contract.
2. In an instance when losses caused to the supplier (executor) in connection with the fulfillment of a state contract are not compensated in accordance with the state contract, the supplier (executor) shall have the right to refuse performance of the state contract and require compensation of losses caused by the dissolution of the state contract.
3. In the event of the dissolution of the state contract with regard to the grounds specified in Clause 2 of this Article, the supplier shall have the right to refuse performance of the contract for delivery of the good for state needs.
Losses caused to the purchaser by such refusal of the supplier shall be compensated by the state customer.
Article 504. Refusal by State Customer of Goods Delivered Under State Contract
In the instances provided for by the legislation, the state customer shall have the right wholly or partially to refuse goods whose delivery is provided for by the state contract on condition of the compensation to the supplier (executor) of losses caused by such refusal.
If the refusal by a state customer of goods whose delivery is provided for by a state contract entails the dissolution or change of the contract for delivery of goods for state needs, the losses caused to the purchaser by such dissolution or change shall be compensated by the state customer.
§ 5. Agricultural Procurement Contract
Article 505. Contract of Agricultural Procurement
1. Under a contract of agricultural procurement the producer of agricultural products shall be obliged to transfer the agricultural products grown (produced) by him to the person carrying out the purchase of such products for processing or sale (the procurer).
2. The rules concerning the contract of delivery (Articles 476-494), and in respective instances concerning the delivery of goods for state needs (Articles 495 to 504) shall apply to relations under the contract of agricultural procurement which are not regulated by the rules of the present paragraph.
Article 506. Duties of Producer of Agricultural Product
1. The producer of an agricultural product shall be obliged to produce and transfer to the procurer the agricultural product in compliance with the requirements of the contract of agricultural procurement concerning period of transfer, quantity, quality and assortment of the agricultural product.
2. The duty of the producer of the agricultural product to organize the agricultural production, providing obtaining of agricultural product of necessary assortment and quality, may be stipulated by the contract of agricultural procurement.
3. The producer of the agricultural product must submit to the procurer, upon the request of the latter, a report on using of financial and material means received.
Article 507. Duties of Procurer
1. The procurer must provide financial and material means, stipulated by the contract of agricultural procurement, to the producer of the agricultural product, and render technical assistance for effectuation of production of agricultural product.
2. Unless otherwise provided by the contract of agricultural procurement, the procurer shall be obliged to accept the agricultural product from the producer at the location thereof and to ensure carriage thereof from the producer.
3. The duty of the procurer to accept from the producer, under the conditions established in the contract, all agricultural products produced by the latter.
4. The duty of the procurer carrying out the processing of agricultural products may be provided for by the contract of agricultural procurement to return to the producer, at his demand, the wastes from the processing of agricultural products with payment at the price determined by the contract of agricultural procurement.
Article 508. Performance of Contract of Agricultural Procurement
1. The period for performance of the contract of agricultural procurement shall be determined by the agreement of the parties, taking into consideration the terms (periods) of production of the agricultural product.
2. If the agricultural product is subject to delivery in packing of packaging, the procurer shall provide for the producer of the agricultural product necessary packing and packaging materials in quantity and within the periods, established by the contract of agricultural procurement.
3. Unless otherwise provided by the contract of agricultural procurement, the procurer shall not have the right to refuse to accept partial performance of the contract.
4. In an instance when the acceptance of an agricultural product is effectuated at the location of the procurer or other place specified by him, the procurer shall not have the right to refuse to accept the agricultural product which corresponds lo the conditions of the contract of agricultural procurement and transferred to the procurer within the period stipulated by the contract.
Article 509. Consequences of Failure to Perform or Improper Performance of Contract of Agricultural Procurement
1. When it becomes certainly known for the procurer, that the agricultural product cannot be produced and transferred in compliance with the requirements of the contract of agricultural procurement concerning quantity, quality and assortment of the agricultural product, the procurer shall have the right to demand dissolution or change of the contract.
2. The producer of an agricultural product who has not performed the obligation or has improperly performed the obligation shall bear liability when his fault exists.
3. If, as the consequence of the circumstances, for which neither of parties is liable, the producer of agricultural product cannot produce the agricultural product and transfer it to the procurer, he must return the deposit received.
4. The producer of agricultural product must inform the procurer about impossibility to supply agricultural product in the consequence of circumstances, for which the producer is not liable. Failure to perform this duty through the fault of the producer shall deprive the latter of the right to refer to these circumstances.
§ 6. Electric Power Supply
Article 510. Contract of Electric Power Supply
1. Under a contract of electric power supply the power supply organization shall be obliged to provide electric power to the subscriber (consumer) through the connected network, and the subscriber shall be obliged to pay for the electric power accepted, and also to comply with the consumption regime provided for by the contract, ensure the safety of operation of the electric power networks within its jurisdiction and the good repair of the instruments and equipment, used by it, connected with the consumption of electric power.
2. The contract of electric power supply shall be concluded with the subscriber when he has an electric power receiving device which meets the established technical requirements and is connected to the networks of the electric power supply organization, and other necessary equipment, and also when the recording of the consumption of electric power is ensured.
Article 511. Conclusion and Extension of Contract of Electric Power Supply
1. In an instance when a citizen who is using electric power for domestic consumption is a subscriber under the contract of electric power supply, the contract shall be considered to be concluded from the time of first actual connection of the subscriber to the connected network in accordance with the established procedure.
Unless otherwise provided by agreement of the parties, such a contract shall be considered to be concluded for an indefinite period and may be changed or dissolved on the grounds provided for by Article 517 of this Code.
2. The contract of electric power supply concluded for a determined period shall be considered to be extended for the same period and on the same conditions unless one of the parties declares the termination or change thereof or the conclusion of a new contract before the end of the period of its operation.
3. If one of the parties before the end of the period of operation of the contract has made a proposal to conclude a new contract, the relations of the parties until the conclusion of the new contract shall be regulated by the previously concluded contract.
Article 512. Quantity of Electric Power
l. The electric power supply organization shall be obliged to provide the subscriber with electric power through the connecting network in the quantity provided for by the contract of electric power supply and in compliance with the regime of supply agreed by the parties. The quantity of electric power provided by the electric power supply organization and used by the subscriber shall be determined in accordance with the record data concerning the actual consumption thereof.
2. The right of the subscriber to change the quantity of electric power used by him as determined by the contract may be provided for by the contract of electric power supply on condition of compensation by him of expenses incurred by the electric power supply organization in connection with ensuring the provision of electric power in a quantity not stipulated by the contract.
3. In an instance when a citizen using electric power for domestic consumption is the subscriber under the contract of electric power supply, he shall have the right to use electric power in the quantity necessary for him.
Article 513. Quality of Electric Power
l. The quality of electric power provided by the electric power supply organization must correspond to the mandatory requirements of technical normative legal acts in the sphere of rate setting and standardization, requirements established by other acts of Republic's bodies of state administration or provided for by the contract of electric power supply.
2. In the event of a violation by the electric power supply organization of the requirements for quality of electric power, the subscriber shall have the right to refuse payment for such electric power. In so doing, the electric power supply organization shall have the right to demand compensation by the subscriber for the cost of that which the subscriber saved unfoundedly as a consequence of the use of this electric power (Article 974(2)), unless otherwise provided by the legislation.
Article 514. Duties of Subscriber for Maintenance and Operation of Networks, Instruments, and Equipment
1. The subscriber shall be obliged to ensure the proper technical condition and safety of electric power networks, instruments and equipments, being operated, to comply with the established consumption regime for electric power, and also immediately to notify the electric power supply organization about accidents, fires, the disrepair of instruments for recording electric power, and other violations arising when using electric power.
2. In an instance when a citizen is a subscriber under a contract of electric power supply who is using electric power for domestic consumption, the duty to ensure the proper technical state and safety of the electric power networks, and also the instruments for recording the consumption of electric power, shall be placed on the electric power supply organization unless otherwise established by the legislation. At that, the subscriber shall ensure the access of representative of the electric power supply organization to electric power networks, instruments for recording electric power unless otherwise established by legislative acts.
3. The requirements for the technical condition and operation of electric power networks, instruments, and equipment, and also the procedure for carrying out control over compliance therewith, shall be determined by the legislation, and the acts of Republic's bodies of state administration adopted in accordance therewith.
Article 515. Payment for Electric Power
1. Payment for electric power shall be made for the quantity of electric power actually accepted by the subscriber in accordance with the data of recording electric power unless otherwise provided by the legislation or agreement of the parties.
2. The procedure for the settlement of accounts for electric power shall be determined by the legislation or agreement of the parties.
Article 516. Sub-subscriber
1. A subscriber may transfer electric power accepted by him from the electric power supply organization through the connecting network to another person (sub-subscriber) on the basis of a contract only with the consent of the electric power supply organization.
2. The rules of this paragraph shall apply to the contract on the transfer of electric power to a sub-suscriber unless otherwise established by legislative acts.
3. At the transfer of power to the sub-subscriber, the subsciber remains responsible before the electric power supply organization unless otherwise established by legislative acts.
Article 517. Change and Dissolution of Contract of Electric Power Supply
1. In an instance when a citizen is a subscriber under a contract of electric power supply who is using electric power for domestic consumption, he shall have the right to dissolve the contract unilaterally on condition of informing in writing the electric power supply organization thereabout and of payment in full for the electric power used.
In an instance when a legal person is a subscriber under the contract of electric power supply, the electric power supply organization shall have the right to refuse performance of the contract unilaterally on the grounds provided for by Article 493(3), Subclause 1, of this Code, except for instances established by the legislation.
2. An interruption in provision or the termination or limitation of provision of electric power shall be permitted by agreement of the parties, except for instances when the unsatisfactory state of electric power devices of the subscriber certified by a state electric power supervision body threatens an accident or creates a threat to the life and safety of citizens. The electric power supply organization must warn the subscriber about an interruption in provision or the termination or limitation of provision of electric power.
Article 518. Liability Under Contract of Electric Power Supply
1. In instances of the failure to perform or the improper performance of obligations under a contract of electric power supply, the party who has violated the obligation shall be obliged to compensate the real damage caused by this (Article 14(2)).
2. If as a result of the regulation of the consumption regime for electric power effectuated on the basis of a legislation or other legal acts an interruption in the provision of electric power to the subscriber is committed, the electric power supply organization shall bear liability for the failure to perform or the improper performance of contractual obligations when there is fault thereof.
Article 519. Application of Rules on Electric Power Supply to Other Contracts
1. The rules provided for by Articles 510-518 of this Code shall apply to relations connected with the supply of heating electric power through a connecting network unless otherwise established by the legislation.
2. The rules concerning the contract of electric power supply (Articles 510-518) shall apply to relations connected with supply through a connecting network of gas, oil and oil products, water, and other goods unless otherwise established by the legislation, or does not arise from the essence of the obligation.
§ 7. Sale of Immovable Property
Article 520. Contract of Sale of Immovable Property
1. Under a contract of purchase-sale immovable property (contract of sale of immovables) the seller shall be obliged to transfer to the ownership of the purchaser a land plot, building, installation, apartment, or other immovable property (Article 130(1)).
2. The rules provided for by the present paragraph shall apply to the sale of enterprises insofar as not provided otherwise by the rules concerning the contract of sale of an enterprise (Articles 530-537).
Article 521. Form of Contract of Sale of Immovable Property
A contract of sale of an immovable property shall be concluded in written form by means of drawing up one document signed by the parties (Article 404(2)).
The failure to comply with the form of the contract of sale of an immovable property shall entail its invalidity.
Article 522. State Registration of Transfer of Right of Ownership to Immovable Property
1. The transfer of the right of ownership to an immovable property under a contract of sale of an immovable property to a purchaser shall be subject to state registration.
2. The performance of a contract of sale of an immovable property by the parties before state registration of the transfer of the right of ownership shall not be grounds for a change of their relations with third persons.
3. In an instance when one of the parties evades state registration of the transfer of the right of ownership to an immovable property a court shall have the right at the demand of the other party to render a decision concerning state registration of the transfer of the right of ownership. The party which unfoundedly evaded state registration of the transfer of the right of ownership must compensate the other party for losses caused by the delay of registration.
Article 523. Rights to Land Plot in Event of Sale of Building, Installation, or Other Immovable Property Situated Thereon
1. Under a contract for the sale of a building, installation, or other immovable property the rights shall pass to the purchaser simultaneously with the transfer of the right of ownership to such immovable property to that part of the land plot which is occupied by this immovable property and necessary in order to use it.
2. In an instance when the seller is an owner of the land plot on which an immovable property being sold is situated, the right of ownership shall be transferred to the purchaser or the right of lease or other right provided for by the contract of sale of an immovable property to the corresponding part of the land plot shall be granted.
If the right to the corresponding land plot is not determined by the contract for the immovable property being transferred to the purchaser, to the purchaser shall pass the right of ownership to that part of the land plot which is occupied by the immovable property and necessary in order to use it.
3. The sale of an immovable property situated on a land plot which does not belong to the seller by right of ownership shall be permitted without the consent of the owner of this plot if this is not contrary to the conditions of use of such plot established by the legislation or by the contract.
In the event of the sale of such immovable property, the purchaser shall acquire the right of use of the respective part of the land plot on the same conditions as the seller of the immovable property.
Article 524. Right to Immovable Property in Event of Sale of Land Plot
In instances when the land plot on which a building, installation, or other immovable property belonging to the seller is situated is sold without the transfer of this immovable property to the ownership of the purchaser, the right of use of this land plot which is occupied by the immovable property and necessary for its use shall be retained for the seller on the conditions determined by the contract of purchase-sale.
If the conditions for the use of the respective part of the land plot have not been determined by the contract for the sale thereof, the seller shall retain the right of limited use (servitude) of that part of the land plot which is occupied by the immovable property and is necessary for its use in accordance with its purpose.
Article 525. Determination of Subject in Contract of Sale of Immovable Property
Data must be specified in a contract of sale of an immovable property enabling the immovable property subject to transfer to the purchaser under the contract to be established definitely, including data determining the location of the immovable property on the respective land plot or as part of other immovable property.
In the absence of such data in the contract, the condition concerning immovable property subject to transfer shall be considered to be not agreed by the parties, and the respective contract shall not be considered to be concluded.
Article 526. Price in Contract of Sale of Immovable Property
1. The contract of sale of an immovable property must provide for the price of this property.
In the absence in the contract of a condition concerning the price of the immovable property agreed by the parties in written form, the contract concerning the sale thereof shall be considered to be not concluded, In so doing, the rules for determining the prices provided for by Article 394(3) of this Code shall not apply.
2. Unless otherwise provided by the legislation or contract for the sale of an immovable property, the price established therein of the building, installation, or other immovable property situated on the land plot shall include the price of the immovable property transferred therewith of the respective part of the land plot or rights thereto.
3. In instances when the price of the immovable property in a contract of sale of an immovable property is established per unit of the space thereof or other indicator of its dimension, the total price of such immovable property subject to payment shall be determined on the basis of the actual dimension of the immovable property transferred to the purchaser.
Article 527. Transfer of Immovable Property
1. The transfer of an immovable property by the seller and the acceptance thereof by the purchaser shall be effectuated under the act of transfer or other document concerning the transfer signed by the parties.
Unless otherwise provided by the legislation or contract, the obligation of the seller to transfer the immovable property to the purchaser shall be considered to be performed after the handing over of this property to the purchaser and signing by the parties of the respective document concerning transfer.
The evasion by one of the parties of signing of the document concerning transfer of the immovable property on the conditions provided for by the contract shall be considered to be a refusal respectively of the seller to perform the duty to transfer the property and of the purchaser to perform the duty to accept the property.
2. The acceptance by the purchaser of an immovable property which does not correspond to the conditions of the contract of sale of an immovable property, including when such nonconformity is stipulated in the document concerning the transfer of the immovable property, shall not be grounds for relieving the seller of liability for improper performance of the contract.
Article 528. Consequences of Transfer of Immovable Property of Improper Quality
In the event of the transfer by the seller to the purchaser of an immovable property which does not correspond to the conditions of the contract of sale of an immovable property concerning the quality thereof, the rules of Article 445 of this Code shall apply except for the provisions concerning the right of the purchaser to demand replacement of the good of improper quality for a good corresponding to the conditions of contract.
Article 529. Peculiarities of Sale of Dwelling Premises
1. A material condition of the contract of sale of a dwelling house, apartment, part of a dwelling house or apartment in which persons reside who retain in accordance with the legislation the right of use of this dwelling premise after its acquisition by the purchaser shall be the list of such persons specifying their rights to use the dwelling premise being sold.
2. The contract of sale of a dwelling house, apartment, or part of a dwelling house or apartment shall be subject to state registration and shall be considered to be concluded from the time of such registration.
§ 8. Sale of Enterprise
Article 530. Contract of Sale of Enterprise
1. Under a contract of sale of an enterprise the seller shall be obliged to transfer the enterprise as a whole as a property complex (Article 132) to the ownership of the purchaser, except for the rights and duties which the seller does not have the right to transfer to other persons,
2. The rights to a firm name, trademark, service mark, and other means of individualization of the seller and its goods, work, or services, and also the right of use of such means of individualization belonging to it on the basis of a license, shall pass to the purchaser unless otherwise provided by the contract.
3.The rights of the seller received by it on the basis of a special permit (license) to engage in the respective activity shall not be subject to transfer to the purchaser of the enterprise unless otherwise established by the legislation. The transfer to the purchaser as part of the enterprise of obligations whose performance by the purchaser is impossible when such authorization (license) is lacking shall not relieve the seller from the respective obligations to creditors.
Article 530. Form and State Registration of Contract of Sale of Enterprise
1. The contract of sale of an enterprise shall be concluded in written form by means of drawing up one document signed by the parties (Article 404(2)) with the obligatory appending thereto of the documents specified in Article 532(2) of this Code.
2. The failure to comply with the form of the contract of sale of an enterprise shall entail its invalidity.
3. The contract of sale of an enterprise shall be subject to state registration and shall be considered to be concluded from the time of such registration.
Article 532. Certification of Composition of Enterprise Being Sold
1. The composition and value of the enterprise being sold shall be determined in the.contract of sale of an enterprise on the basis of the full inventorization of the enterprise conducted in accordance with the established rules of such inventorization.
2. Before signing of the contract of sale of an enterprise there must be drawn up and considered by the parties: the act of inventorization, the bookkeeping balance sheet, the conclusion of an auditing organization (auditor - individual entrepreneur) not connected by property interests with the parties concerning the composition and value of the enterprise, and also a list of all the debts (obligations) included within the enterprise, specifying the creditors, the character, amount, and periods of their demands.
The property, rights, and duties specified in the named documents shall be subject to transfer by the seller to the purchaser unless it follows otherwise from the rules of Article 530 of this Code and is not established by agreement of the parties.
Article 533. Rights of Creditors in Event of Sale of Enterprise
1. The creditors with regard to obligations included within the enterprise being sold must be informed in writing before the transfer thereof about its sale by one of the parties of the contract of sale of the enterprise.
2. The creditor who in writing has not notified the seller or purchaser his consent to the transfer of the debt shall have the right within three months from the date of receipt of the notice concerning the sale of the enterprise to require either the termination or performance before time of the obligation and compensation by the seller of the losses caused thereby.
3. The creditor who was not informed about the sale of the enterprise in accordance with the procedure provided for by Clause 1 of this Article may bring suit concerning satisfaction of the demands provided for by Clause 2 of this Article within one year from the date when he knew or should have known about the transfer of the enterprise by the seller to the purchaser.
4. After the transfer of the enterprise to the purchaser, the seller and the purchaser shall bear joint and several liability for debts included within the enterprise being transferred which were transferred to the purchaser without the consent of the creditor.
Article 534. Transfer of Enterprise
1. The transfer of an enterprise by the seller to the purchaser shall be effectuated under the act of transfer, in which shall be specified data concerning the composition of the enterprise and notice of the creditors concerning the sale of the enterprise, and also information concerning defects elicited in the property being transferred and list of property, the duties with regard to the transfer of which have not been performed by the seller in view of the loss thereof.
The preparation of the enterprise for transfer, including the drawing up and submission for signature of the act of transfer, shall be the duty of the seller and shall be effectuated at his expense unless otherwise provided by the contract.
2. An enterprise shall be considered to be transferred to the purchaser from the date of signing of the act of transfer by both parties.
From this time the risk of accidental perishing or accidental damage of property being transferred within the enterprise shall pass to the purchaser.
Article 535. Transfer of Right of Ownership to Enterprise
1. The right of ownership to an enterprise shall pass to the purchaser from the time of state registration of this right.
2. Unless otherwise provided by the contract of sale of an enterprise, the right of ownership to an enterprise shall pass to the purchaser and shall be subject to state registration directly after the transfer of the enterprise to the purchaser (Article 534).
3. In instances when the retention by the seller of the right of ownership to an enterprise transferred to the purchaser has been provided for by the contract before payment for the enterprise or before the ensuing of other circumstances, the purchaser shall have the right until the transfer of the right of ownership to it to dispose of the property and of the rights which are part of the enterprise being transferred to that extent as is necessary for the purposes for which the enterprise was acquired.
Article 536. Consequences of Transfer and Acceptance of Enterprise with Defects
1. The consequences of the transfer by the seller and acceptance by the purchaser under an act of transfer of an enterprise the composition of which does not correspond to that provided for by the contract of sale of the enterprise, including with respect to the quality of the property being transferred, shall be determined on the basis of the rules provided for by Articles 430-432, 436, 439, 445, 449 of this Code unless it arises otherwise from the contract and is not provided for by Clauses 2-4 of this Article.
2. In an instance when an enterprise has been transferred and accepted under the act of transfer in which information concerning elicited defects of the enterprise and lost property have been specified (Article 534 (1)), the purchaser shall have the right to demand a corresponding reduction of the purchase price of the enterprise unless the right to submit other demands in such instances has been provided for by the contract of sale of the enterprise.
3. The purchaser shall have the right to demand a reduction of the purchase price in the event of the transfer to it within the enterprise of debts (obligations) of the seller which were not specified in the contract of sale of the enterprise or act of transfer unless the seller proves that the purchaser knew of such debts (obligations) during the conclusion of the contract and transfer of the enterprise.
4. The seller in the event of receiving notice of the purchaser concerning defects of the property being transferred within the enterprise, or the absence of individual types of property in such composition which are subject to transfer, may without delay replace the property of improper quality or grant non-delivered property to the purchaser.
5. The purchaser shall have the right in a judicial proceeding to demand dissolution or change of the contract of sale of an enterprise and the return of that which was performed by the parties under the contract if it is established that the enterprise in view of the defects for which the seller is liable, is unfit for the purposes named in the contract of sale and these defects have not been eliminated by the seller on the conditions, in accordance with the procedure, and within the periods which have been established in accordance with the legislation or the contract, or the elimination of such defects is impossible.
Article 537. Application to Contract of Sale of Enterprise of Rules Concerning Consequences
of Invalidity of Transactions and Concerning Change or Dissolution of Contract
The rules of this Code and other acts of legislation concerning the consequences of the invalidity of transactions and a change or dissolution of the contract of purchase-sale providing for the return or recovery in kind of that received under the contract from one party or from both parties shall apply to the contract of sale of an enterprise unless such consequences materially violate the rights and the interests, protected by the legislation, of the creditors of the seller and purchaser, of other persons, and are not contrary to public interests.
CHAPTER 31
Barter
Article 538. Contract of Barter
1. Under a contract of batter, each of the parties shall undertake to transfer to the ownership of the other party one good in exchange for another.
2. To the contract of barter shall apply respectively the rules concerning purchase-sale (Chapter 30) if this is not contrary to the rules of this Chapter and the essence of the barter. In so doing, each of the parties shall be deemed to be the seller of the good which this party undertake to transfer and the purchaser of the good which this party undertake to accept in exchange.
Article 539. Prices and Expenses Under Contract of Barter
1. Unless it arises otherwise from the contract of barter, goods subject to exchange shall be considered to be of equal value and expenses for the transfer thereof and acceptance shall be effectuated in each instance by that party which bears the respective duties.
2. In an instance when in accordance with the contract of barter the goods to be exchanged are deemed not to be of equal value, the party obliged to transfer a good whose price is lower than the price of the good being granted in exchange must pay for the difference in prices directly before or after the performance of its duty lo transfer the good unless another procedure for payment has been provided for by the contract.
Article 540. Counter Performance of Obligation to Transfer Good Under Contract of Barter
In an instance when in accordance with a contract of barter the periods for the transfer of the goods to be exchanged do not coincide, the rules concerning counter performance of obligations (Article 309) shall apply to the performance of the obligation to transfer the good by the party which must transfer the good after the transfer of the good by the other party.
Article 541. Transfer of Right of Ownership in Goods to be Exchanged
Unless otherwise provided by the legislation or by the contract of barter, the right of ownership in the goods to be exchanged shal! pass to the parties acting under the ton-tract of barter as purchasers simultaneously after the performance of the obligations to transfer the respective goods by both parties.
Article 542. Liability for Seizure of Good Acquired Under Contract of Barter
The party from whom a good is seizured by a third person which was acquired under a contract of barter shall have the right when there are grounds provided for by Article 431 of this Code to require from the other party the return of the good received by the latter in the exchange and (or) compensation of losses.
CHAPTER 32
Gift
Article 543. Contract of Gift
1. Under a contract of gift one party (donor) transfers without compensation or undertakes to transfer to the other party (donee) a thing in ownership or a property right (demand) against himself or against a third person, or relieves or undertakes to relieve the other party of a property duty to himself or to a third person.
When there exists a counter transfer of a thing or right or a counter obligation the contract shall not be deemed to be a gift. The rules provided for by Article 171(2) of this Code shall apply to such contract.
2. The promise to transfer without compensation any thing or property right whatever or to relieve someone of a property duty (promise of gift) shall be deemed to be a contract of gift and shall bind the promisor if the promise is made in the proper form (Article 545(2)) and contains a clearly expressed intention to perform in the future the transfer of the thing or right without compensation to a specific person or to relieve him from a property duty.
The promise to give all of his property or part of his property without specifying the specific subject of gift in the form of a thing, right, or relief from a duty shall be void.
3. A contract providing for the transfer of a gift to the donee after the death of the donor shall be void.
The rules of civil legislation concerning inheritance shall apply to such kind of gift.
4. A material condition of the contract of gift of a dwelling house, apartment, part of a dwelling house or apartment in which persons reside who retain in accordance with the legislation the right of use of this dwelling premise after the transfer of its ownership by the purchaser shall be the list of such persons specifying their rights to use the dwelling premise being transfered as a gift.
Article 544. Refusal of Donee to Accept Gift
1. The donee shall have the right at any time before the transfer of the gift to him to refuse it. In this event the contract of gift shall be considered to be dissolved.
2. If the contract of gift is concluded in written form, the refusal of the gift must also be concluded in written form. In an instance when the contract of gift has been registered (Article 545(3)), the refusal to accept the gift also shall be subject to state registration.
3. If the contract of gift was concluded in written form, the donor shall have the right to demand from the donee compensation of real damage caused by the refusal to accept the gift.
Article 545. Form of Contract of Gift
1. A gift accompanied by the transfer of the gift to the donee may be concluded orally, except for instances provided for by Clauses 2 and 3 of this Article.
The transfer of the gift shall be effectuated by means of handing it over, by symbolic transfer (handing over of keys, and so forth) or by handing over right-establishing documents.
2. A contract of gift of movable property must be concluded in written form in instances when:
1) the donor is a legal person and the value of the gift exceeds five basic values established by the legislation;
2) the contract contains a promise of a gift in the future.
In the instances provided for in this Clause a contract of gift concluded orally shall be void.
3.A contract of gift of immovable property shall be subject to state registration.
Article 546. Prohibition of Gift
A gift shall not be permitted except for ordinary gifts whose value does not exceed five basic values established by the legislation:
1) in the name of juveniles and citizens deemed to lack active legal capacity, by their legal representatives;
2) to employees of treatment and nurturing institutions, institutions of social defense, and other similar institutions by citizens situated in these institutions for treatment, maintenance, or nurturing, by the spouses and relatives of these citizens;
3) to state officers in connection with their official position or in connection with the performance by them of their official duties;
4) in relations between commercial organizations.
Article 547. Limitations of Gift
1. A legal person to whom a thing belongs by right of economic management or operative administration shall have the right to give it with the consent of the owner unless otherwise provided by the legislation. This limitation shall not extend to ordinary gifts of small value (Article 546).
2. The gift of property being in common joint ownership shall be permitted by consent of all the participants of joint ownership in compliance with the rules provided for by Article 256 of this Code.
3. A power of attorney to perform a gift by a representative in which the donee not named and the subject of the gift is not specified shall be void.
Article 548. Refusal of Performance of Contract of Gift
1. The donor shall have the right lo refuse performance of a contract which contains a promise to transfer a thing or right in the future to a donee, if after conclusion of the contract the property or family position or health of the donor has worsened.
2. The donor shall have the right to refuse performance of a contract which contains a promise to transfer a thing or rtghi to the donee in the future on the grounds giving him the right to revoke the gift (Article 549(1)).
3.The refusal of the donor of performance of the contract of gift on the grounds provided for by Clauses 1 and 2 of this Article shall not give a right of demand for compensation of losses to the donee.
Article 549. Revocation of Gift
1. The donor shall have the right to revoke a gift if the donee has committed an attempt on his life, the life of another member of his family or close relatives, or has intentionally caused bodily injuries to the donor.
In the event of the intentional deprivation of life of the donor by the donee, the right to demand revocation of the gift in court shall belong to the heirs of the donor.
2. Upon the demand of an interested person a court may revoke a gift made by an individual entrepreneur or legal person in violation of the provisions of the legislation on economic insolvency (bankruptcy) at the expense of means connected with its entrepreneurial activity within six months which preceded the declaration of such person to be insolvent (bankrupt).
3. The right of the donor to revoke the gift in the event he will live longer than the donee may be stipulated in the contract of gift.
4. In the event of revocation of a gift the donee shall be obliged to return the thing given if it has been preserved in kind at the time of revocation of the gift.
Article 550. Instances in Which Refusal of Performance of Contract of Gift and Revocation of Gift are Impossible
The rules concerning the refusal of performance of a contract of gift (Article 548) and revocation of a gift (Article 549) shall not apply to ordinary presents of small value (Article 546).
Article 551. Consequences of Causing Harm as Consequence of Defects of Thing Gifted
Harm caused to the life, health, of property of a donee citizen as a consequence of defects of the thing given shall be subject to compensation by the donor in accordance with the rules provided for by Chapter 58 of this Code if it is proved that these defects arose before the transfer of the thing to the donee and were not obvious and the donor, although he knew about these defects, did not warn the donee about these defects.
Article 552. Legal Succession in Event of Promise of Gift
1. The rights of a donee to whom a gift was promised under a contract of gift shall not pass to his heirs (legal successors) unless otherwise provided by the contract of gift.
2. The duties of the donor who promised the gift shall pass to his heirs (legal successors) unless otherwise provided by the contract of gift.
Article 553. Donations
1. The gift of a thing or right for generally useful purposes shall be deemed to be a donation.
Donations may be made to citizens, treatment and nurturing institutions, institutions of social defense, and other similar institutions, charitable, scientific, and educational institutions, funds, museums, and other institutions of culture, public and religious organizations, and also to the Republic of Belarus and its administrative territorial units.
2. No authorizations or consent whatever shall be required to accept donations.
3. The donation of property to a citizen must be, and to legal persons may be, conditioned by the donor by the use of this property for a determined purpose. In the absence of such a condition the donation of the property to a citizen shall be considered to be an ordinary gift, and in other instances the donated property shall be used by the donee in accordance with the purpose of the property.
A legal person which has accepted a donation for use of which a determined purpose has been established must carry out a solitary recording of all operations relating to the use of the donated property.
4. If the use of donated property in accordance with the purpose specified by the donor becomes as a consequence of changed circumstances impossible, it may be used for another intended purpose only with the consent of the donor, and in the event of the death of a donor citizen or the liquidation of a donor legal person, by decision of a court.
5. The use of donated property not in accordance with the purpose specified by the donor or a change of such purpose in violation of the rules provided for by Clause 4 of this Article shall give the right to the donor, his heirs, or other legal successor to demand revocation of the donation.
Articles 549 and 552 of this Code shall not apply to donations.
CHAPTER 33
Rent and Maintenance of Dependent for Life
§ 1. General Provisions on Rent and Maintenance of Dependent for Life
Article 554. Contract of Rent
1. Under a contract of rent one party (recipient of the rent) shall transfer property in ownership to the other party (payer of rent), and the payer of rent shall bo obliged in exchange for the property received periodically to pay to the recipient of rent in the form of a determined monetary amount or of granting assets for his maintenance in other form.
2. Under a contract of rent the establishment of the duty to pay rent in perpetuity (permanent rent) or for the life of the recipient of the rent (rent for life) shall be permitted. Rent for life may be established on conditions of the main- tenance for life of a dependent citizen.
Article 555. Form of Contract of Rent
The contract of rent shall be subject to notarial certification, and a contract providing for the alienation of immovable property under payment of rent shall also be subject to state registration.
Article 556. Alienation of Property Under Payment of Rent
1. Property which is alienated under payment of rent may be transferred by the recipient of the rent to the ownership of the payer of rent for payment or free of charge.
In an instance when the transfer of property for payment is provided for by the contract of rent, the rules concerning purchase-sale (Chapter 30) shall apply to relations of the parties relating to the transfer and payment, and in an instance when such property is transferred free of charge, the rules concerning the contract of gift (this Chapter) and is not contrary to the essence of the contract of rent.
Article 557. Encumberment of Immovable Property by Rent
1. Rent shall encumber a land plot, enterprise, building, installation, or other immovable property transferred under payment thereof. In the event of the alienation of such property by the payer of the rent, his obligations under the contract of rent shall pass to the acquirer of the property.
2. The person who has transferred immovable property encumbered by rent to the ownership of another person shall bear subsidiary liability with him (Article 370) with regard to the demands of the recipient of the rent which arose in connection with a violation of the contract of rent unless joint and several liability for this obligation has been provided for by this Code, another acts of legislation, or the contract.
Article 558. Securing Payment of Rent
1. In the event of the transfer of a land plot or other immovable property under payment of rent, the recipient of the rent shall acquire the right of pledge on this property to secure the obligation of the payer of the rent.
2. The condition establishing the duty of the payer of rent to grant security for the performance of his obligations (Article 310) or to insure to the benefit of the recipient of rent the risk of liability for the failure to perform or the improper performance of these obligations shall be a material condition of a contract providing for the transfer of a monetary amount or other movable property as payment of rent.
3. In the event of the failure of the payer of the rent to fulfill the duties provided for by Clause 2 of this Article, and also in the event of the loss of the security or worsening of the conditions thereof under circumstances for which the recipient of rent is not liable, the recipient of rent shall have the right to dissolve the contract of rent and demand compensation of losses caused by the dissolution of the contract.
Article 559. Liability for Delay of Payment of Rent
For a delay of payment of rent the payer of rent shall pay interest to the recipient of rent provided for by Article 366 of this Code unless another amouni of interest has been established by the contract of rent.
§ 2. Permanent Rent
Article 560. Recipient of Permanent Rent
1. Only citizens, and also noncommercial organizations, may be recipients of permanent rent unless this is contrary to a legislation and corresponds to the purposes of their activity.
2. The rights of the recipient of rent under a contract of permanent rent may be transferred to the persons specified in Clause 1 of this Article by means of cession of a demand and transfer by inheritance or by way of legal succession in the event of the reorganization of legal persons, unless otherwise provided by the legislation or by a contract.
Article 561. Form and Amount of Permanent Rent
1. Permanent rent shall be paid in money in the amount established by the contract.
The payment of rent by means of the granting of things, fulfillment of work, or rendering of services which correspond to the value of the monetary amount of rent may be provided for by the contract of permanent rent.
2. Unless otherwise provided by the contract of permanent rent, the amount of rent to be paid shall be increased in proportion to the increase of the basic value established by the legislation.
Article 562. Periods for Payment of Permanent Rent
Unless otherwise provided by the contract of permanent rent, permanent rent shall be paid at the end of each calendar quarter.
Article 563. Right of Payer to Purchase Permanent Rent
1. The payer of permanent rent shall have the right to refuse the further payment of rent by means of purchasing it.
2. Such refusal shall be valid on condition that it is declared by the payer of rent in written form not later than three months before the termination of the payment of rent or longer period provided for by the contract of permanent rent. In so doing, the obligation relating to the payment of rent shall not terminate until the receipt of the entire amount of the purchase by the recipient of the rent unless a different procedure of purchase has been provided for by the contract.
3. The condition of a contract of permanent rent concerning the waiver of the payer of permanent rent to purchase it shall be void.
It may be provided by a contract that the right of purchase of permanent rent may not be effectuated during the life of the recipient of rent or during another period not exceeding thirty years from the time of conclusion of the contract.
Article 564. Purchase of Permanent Rent at Demand of Recipient of Rent
The recipient of permanent rent shall have the right to demand the purchase of rent by the payer in instances when:
1) the payer of rent delayed the payment thereof by more than one year, unless otherwise provided by the contract of permanent rent;
2) the payer of rent violated his obligations relating to securing the payment of rent (Article 558);
3) the payer of rent is deemed to be economically insolvent (bankrupt) or other obligations have arisen which obviously testify that the rent will not be paid in the amount and within the periods which have been established by the contract;
4) the immovable property transferred under payment of rent has transferred to common ownership or been divided among several persons;
5) and in other instances provided for by the contract.
Article 565. Purchase Price of Permanent Rent
1. The purchase of permanent rent in the instances provided for by Articles 563 and 564 of this Code shall be made at the price determined by the contract of permanent rent.
2. In the absence of a condition concerning the purchase price in a contract of permanent rent under which property has been transferred for payment under payment of permanent rent, the purchase shall be effectuated at the price corresponding to the yearly amount of rent subject to payment.
3. In the absence of a condition concerning the purchase price in a contract of permanent rent under which property has been transferred under payment of rent free of charge, the price of the transferred property determined according to the rules provided for by Article 394(3) of this Code shall be included in the purchase price together with the yearly amount of rent payments.
Article 566. Risk of Accidental Perishing of Property Transferred under Payment of Permanent Rent
l. The risk of accidental perishing or accidental damage of property transferred free of charge under payment of permanent rent shall be borne by the payer of rent.
2. In the event of the accidental perishing or accidental damaging of property transferred for payment under payment of permanent rent, the payer shall have the right to demand respectively termination of the obligation relating to the payment of rent or a change of the conditions for the payment thereof.
§ 3. Rent for Life
Article 567. Recipient of Rent for Life
1. Rent for life may be established for the period of life of a citizen transferring property under payment of rent or for the period of life of another citizen specified by him.
2. The establishment of rent for life to the benefit of several citizens whose share in the right to receive rent shall be considered to be equal shall be permitted unless otherwise provided by the contract of rent for life.
In the event of the death of one of the recipients of rent his share in the right to receive rent shall pass to the recipients of rent who survive him unless otherwise provided by the contract of rent for life, and in the event of the death of the latter recipient of rent, the obligation to pay the rent shall terminate.
3. The contract establishing rent for life to the benefit of a citizen who is deceased at the time of concluding the contract shall be void.
Article 568. Amount of Rent for Life
1. Rent for life shall be determined in the contract as a monetary amount periodically to be paid to the recipient of rent during his life.
2. The amount of rent for life determined in the contract calculated per month must be not less than the basic value established by the legislation, and in the instances provided for by Article 299 of this Code, shall be subject to increase.
Article 569. Period for Payment of Rent for Life
Unless otherwise provided by the contract of rent for life, the rent for life shall be paid at the end of each calendar month.
Article 570. Dissolution of Contract of Rent for Life at Demand of Recipient of Rent
1. In the event of a material violation of a contract of rent for life by the payer of rent, the recipient of rent shall have the right to demand from the payer of rent the purchase of rent on the conditions provided for by Article 565 of this Code or dissolution of the contract and compensation of losses.
2. If an apartment, dwelling house, or other property under payment of rent for life has been alienated free of charge, the recipient of the rent shall have the right in the event of a material violation of the contract by the payer of the rent to require the return of this property, setting off the value thereof at the expense of the purchase price of the rent.
Article 571. Risk of Accidental Perishing of Property Transferred Under Payment of Rent for Life
The accidental perishing or accidental damaging of property transferred under payment of rent for life shall not relieve the payer of rent from the obligation to pay it on the conditions provided for by the contract of rent for life.
§ 4. Maintenance of Dependent for Life
Article 572. Contract of Maintenance of Dependent for Life
1. Under a contract of maintenance of a dependent for life the recipient of rent, the citizen, shall transfer a dwelling house, apartment, land plot, or other immovable property belonging to him to the ownership of the payer of rent, who shall be obliged to effectuate the maintenance of the citizen dependent for life and (or) third person(s) specified by him.
2. The rules concerning rent for life shall apply to the contract of maintenance of a dependent for life unless otherwise provided by the rules of the present paragraph.
Article 573. Duty Relating to Granting of Maintenance of Dependent
1. The duty of the payer of rent relating to granting maintenance of a dependent may include provision of the requirements for housing, nourishment, and clothing, and if the state of health of the citizen so requires, also care for him. The payment for funeral by the payer of rent also may be provided for by the contract for the maintenance of a dependent for life.
2. The value of the entire amount of maintenance of a dependent must be determined in the contract of maintenance of a dependent for life. In so doing, the value of the total amount of maintenance per month may not be less than two basic values established by the legislation.
3. When settling a dispute between the parties concerning the amount of maintenance which is granted or should be granted to a citizen, the court must be guided by the principles of good faith and reasonableness.
Article 574. Replacement of Maintenance for Life by Periodic Payments
The possibility of replacing the granting of maintenance of a dependent in kind by the payment during the life of the citizen of periodic payments in money may be provided for by a contract of maintenance of a dependent for life.
Article 575. Alienation and Use of Property Transferred to Secure Maintenance for Life
The payer of rent shall have the right to alienate, pledge, or by other means encumber immovable property transferred to him as security for maintenance for life only with the prior consent of the recipient of rent.
The payer of rent shall be obliged to take necessary measures so that during the period of granting maintenance of a dependent for life the use of the said property does not lead to a reduction of the value of this property.
Article 576. Termination of Maintenance of Dependent for Life
1. The obligation of maintenance of dependent for life shall terminate with the death of the person (persons) reciving maintenance of dependent for life.
2. In the event of a material violation by the payer of rent of his obligations, the person (persons) reciving maintenance of dependent for life shall have the right to demand the return of immovable property transferred to secure the maintenance for life or the payment to him of the purchase price on the conditions established by Article 565 of this Code. In so doing, the payer of rent shall not have the right to demand compensation of the expenses incurred in connection with the maintenance of the recipient of rent.
CHAPTER 34.
Lease
§ 1. General Provisions on Lease
Article 577. Contract of Lease
Under a contract of lease (property rental) the lessor (renter) shall be obliged to grant to the lessee (tenant) property for payment in temporary possession and use or temporary use.
The yield, products, and revenues received by the lessee as a result of the use of the leased property in accordance with the contract shall be his ownership.
Article 578. Objects of Lease
1. Land plots and other solitary natural objects, enterprises, and other property complexes, buildings, installations, equipment, means of transport, and other things which do not lose their natural properties in the process of use thereof (nonconsumable things) may be transferred on lease.
Types of property, the leasing out of which is not permitted or is limited, may be established by the legislative acts.
2. The peculiarities of leasing out land plots and other solitary natural objects may be established by the legislation.
3. Data enabling to definitely establish the property which is subject to transfer to the lessee as the object of a lease must be specified in the contract of lease. In the absence of such data in the contract, the condition concerning the object which is subject to transfer on lease shall be considered to be not agreed by the parties and the respective contract shall not be considered to be concluded.
Article 579. Lessor
The right to lease out property shall belong to its owner. Persons authorized by the legislation or by the owner to lease out property also may be lessors.
Article 580. Form and State Registration of Contract of Lease
1. A contract of lease for a period of more than a year, and if one of the parties of the contract is a legal person, irrespective of the period, must be concluded in written form.
2. A contract of lease for immovable property shall be subject to state registration unless otherwise established by the legislative acts.
3. A contract of lease for property which provides for the transfer thereafter of the right of ownership to this property to the lessee (Article 595), shall be concluded in the form provided for the contract of purchase-sale of such property.
Article 581. Period of Contract of Lease
l. A contract of lease shall be concluded for the period determined by the contract.
2. If the period of the lease has not been determined in the contract, the contract of lease shall be considered to be concluded for an indefinite period.
In this event each of the parties shall have the right at any time to repudiate the contract, having warned the other party thereof one month in advance, and in the event of the lease of immovable property, three months. Another period may be established by the legislation or by a contract for notification of the termination of a contract of lease concluded for an indefinite period.
3. Maximum periods for a contract for individual types of lease may be established by the legislation, as well as for the lease of individual types of property. In these instances if the period of the lease is not determined in the contract and neither of the parties has repudiated the contract upon the expiry of the maximum period established by the legislation, the contract shall terminate upon the expiry of the maximum period.
A contract of lease concluded for a period exceeding the maximum period established by the legislation shall be considered to be concluded for the period equal to the maximum.
Article 582. Granting Property to Lessee
1. The lessor shall be obliged to grant property to the lessee in a state corresponding to the conditions of the contract of lease and intended purpose of the property.
2. Property shall be leased out together with all of its appurtenances and documents relating thereto (technical passport, certificate of quality, and so forth), unless otherwise provided by the contract.
If such appurtenances and documents were not transferred and without them the lessee can not use the property in accordance with its intended purpose or is to a significant degree deprived of that which he had the right to count upon when concluding the contract, he may demand the granting to him by the lessor of such appurtenances and documents or dissolution of the contract, and also compensation of losses.
3. If the lessor did not grant to the lessee property hired out within the period specified in the contract of lease, or, in an instance when in the contract such period is not specified, within a reasonable period, the lessee shall have the right to demand and obtain this property from him in accordance with Article 369 of this Code and to demand compensation of losses caused by the delay of performance or to demand dissolution of the contract and compensation of losses caused by failure to perform the contract.
Article 583. Liability of Lessor for Defects of Property Leased Out
1. The lessor shall be liable for defects of property leased out which wholly or partially obstruct the use thereof even if during the conclusion of the contract of lease he did not know about these defects.
In the event of revealing of such defects the lessee shall have the right at his discretion to:
1) demand of the lessor either the elimination of the defects of the property without compensation or a commensurate reduction of the lease payment, or compensation of his expenses for elimination of the defects of the property;
2) directly retain the amount of expenses incurred by him for elimination of the said defects from the lease payment, having informed the lessor in advance thereof;
3) demand the dissolution of the contract before time.
The lessor who is notified about the demands of the lessee or about his intention to eliminate the defects of the property at the expense of the lessor may without delay replace the property granted to the lessee with other similar property in a proper state or eliminate the defects of the property without compensation.
If satisfaction of the demands of the lessee or retention of expenses by him for elimination of defects from the lease payment does not fully cover the losses caused to the lessee, he shall have the right to demand compensation of the uncovered part of the losses.
2. The lessor shall not be liable for defects of property leased out which were stipulated by him when concluding the contract of lease or were previously known to the lessee or should have been revealed by the lessee during the inspection of the property or verification of its condition when concluding the contract or transferring the property on lease.
Article 584. Rights of Third Persons to Property Leased Out
The transfer of property on lease shall not be grounds for termination or change of the rights of third persons to such property.
When concluding a contract of lease the lessor shall be obliged to warn the lessee about all the rights of third persons to the property being leased out (servitude, right of pledge, and so forth). The failure of the lessor to perform this duty shall give the lessee the right to demand a reduction of lease payment or dissolution of the contract and compensation of losses.
Article 585. Lease Payment
l. The lessee shall be obliged to make payment in a timely way for the use of property (lease payment).
The procedure, conditions, and periods of making the lease payment shall be determined by the contract of lease. In an instance when they have not been deter-mined by the contract, it shall be considered that the procedure, conditions, and periods have been established which are usually applied when leasing similar property under comparable circumstances.
2. The lease payment shall be established for the entire leased property as a whole or individually for each of the constituent parts in the form of:
1) payments determined in a fixed amount made periodically or one time; ^
2) the established share of the products, yield, or revenues received as a result of the use of the leased property;
3) the granting of determined services by the lessee;
4) the transfer by the lessee to the lessor of things stipulated by the contract in ownership or on lease;
5) imposing on the lessee expenditures stipulated by the contract for the improvement of the leased property.
The parties may provide in the contract of lease for combining the said forms of lease payment or other forms of payment of the lease.
3. Unless otherwise provided by the contract, the amount of lease payment may be changed by agreement of the parties within the periods provided for by the contract, but not more often than once a year. Other minimum periods for revision of the amount of lease payment for individual types of lease, and also for the lease of individual types of property, may be provided for by the legislation.
4. Unless otherwise provided by the legislation, the lessee shall have the right to require respective reduction of the lease payment if by virtue of circumstances for which he is not liable the conditions of use provided for by the contract of lease or the condition of the property have worsened materially.
5. Unless otherwise provided by the contract of lease, in the event of a material violation by the lessee of the periods for making the lease payment the lessor shall have the right to demand the making of lease payment by him before time within the period established by the lessor. In so doing, the lessor shall not have the right to demand the making of lease payment before time for more than two periods in succession.
Article 586. Use of Leased Property
l. The lessee shall be obliged to use leased property in accordance with the conditions of the contract of lease, and if such conditions have not been determined in the contract, in accordance with the purpose of the property.
2. The lessee shall have the right with the consent of the lessor to sublease the leased property (sub-hire) and to transfer his rights and duties under the contract of lease to another person (re-hire), to grant the leased property for use without compensation, and also to pledge lease rights and contribute them as a contribution to the charter capital of economic partnerships and companies or a share contribution to a production cooperative unless otherwise established by the legislation. In the said instances, except for re-hire, the lessee shall remain liable under the contract to the lessor.
The contract of sublease may not be concluded for a period exceeding the period of the contract of lease.
The rules concerning contracts of lease, unless otherwise established by this Code and other legislative acts, shall apply to contracts of sublease.
3. If a lessee uses property not in accordance with the conditions of the contract of lease or the purpose of the property, the lessor shall have the right to demand dissolution of the contract and compensation of losses.
Article 587. Duties of Parties With Regard to Maintenance of Leased Property
l. The lessor shall be obliged to perform at his own expense capital repair to the property transferred on lease unless otherwise provided by the legislation or the contract of lease.
Capital repair must be performed within the period established by the contract, and if it is not determined by the contract or called for by urgent necessity, within a reasonable period.
A violation by the lessor of the duty with regard to the performance of capital repair shall give the lessee the right at his discretion to:
1) perform the capital repair provided for by the contract or caused by urgent necessity and to recover from the lessor the value of the repair or to set it off from the account of the lease payment;
2) demand a corresponding reduction of lease payment;
3) demand dissolution of the contract and compensation of losses.
2. The lessee shall be obliged to maintain the property in a proper state, to perform current repair at his own expense, and to bear expenses for the maintenance of the property unless otherwise established by the legislation or by the contract of lease.
Article 588. Preservation of Contract of Lease in Force in Event of Change of Parties
1. Transfer of the right of ownership (inheritable possession for life) to property leased out to another person shall not be grounds for a change of or dissolution of the contract of lease.
2. In the event of the death of a citizen leasing immovable property, his rights and duties under the contract of lease shall pass to the heir unless otherwise provided by the legislation or by the contract.
The lessor shall not have the right to refuse such heir from entering into the contract for the remaining period of its operation except for an instance when the conclusion of the contract was conditioned by the personal qualities of the lessee.
Article 589. Termination of Contract of Sublease in Event of Termination of Contract of Lease Before Time
1. Unless otherwise provided by the contract of lease, the termination of the contract of lease before time shall entail the termination of the contract of sublease concluded in accordance with it. The sublessee shall have the right in this event to conclude a contract of lease with him for property in his use in accordance with the contract of sublease within the limits of the remaining period of sublease on the conditions corresponding to the conditions of the terminated contract of lease.
2. If the contract of lease is void on the grounds provided for by this Code and other acts of legislation, the contracts of sublease concluded in accordance with it also shall be void.
Article 590. Dissolution of Contract Before Time Upon Demand of Lessor
Upon the demand of the lessor the contract of lease may be dissolved before time by a court in instances when the lessee:
1) uses the property with material violation of the conditions of the contract or the purpose of the property or with repeated violations;
2) materially worsens the property;
3) does not make lease payment more than two times in succession upon the expiry of the period established by the contract;
4) does not perform capital repair of the property within the periods established by the contract of lease, and in the absence thereof in the contract within reasonable periods in those instances when in accordance with a legislation or the contract the performance of capital repair is the duty of the lessee.
Other grounds for the dissolution of the contract before time upon the demand of the lessor also may be established by the contract of lease in accordance with Article 420(2) of this Code.
The lessor shall have the right to demand dissolution of the contract before time only after sending a written warning to the lessee about the necessity to perform the obligation within a reasonable period.
Article 591. Dissolution of Contract Before Time Upon Demand of Lessee
Upon the demand of the lessee the contract of lease may be dissolved before time by a court in instances when:
1) the lessor does not grant property for use to the lessee or creates obstacles to the use of the property in accordance with the conditions of the contract or the purpose of the property;
2) the property transferred to the lessee has defects which obstruct its use by him and which were not stipulated by the lessor when concluding the contract, were not known to the lessee in advance, and should not have been revealed by the lessee during the inspection of the property or verification of its good condition when concluding the contract;
3) the lessor does not make capital repair of the property which is his duty within the periods established by the contract of lease, and in the absence thereof in the contract, within reasonable periods;
4) the property by virtue of circumstances for which the lessee is not liable turns out to be in a condition not fit for use.
Other grounds of dissolution of the contract before time also may be established by the contract of lease upon the demand of the lessee in accordance with Article 420(2) of this Code.
Article 592. Preferential Right of Lessee to Conclude Contract of Lease for New Period
1. Unless otherwise provided by the legislation or by the contract of lease, the lessee who has properly performed his duties shall have upon the expiry of the period of the contract a preferential right before other persons, under equal other conditions, to conclude a contract of lease for a new period. The lessee shall be obliged to inform the lessor in writing about the wish to conclude such contract within the period specified in the contract of lease, and if such period is not specified in the contract, within a reasonable period before the end of the operation of the contract.
When concluding a contract of lease for a new period, the conditions of the contract may be changed by agreement of the parties.
If the lessor has refused the lessee to conclude a contract for a new period, but within a year from the date of expiry of the period of the contract with him concluded a contract of lease with another person, the lessee shall have the right at his discretion to demand in court the transfer to himself of the rights and duties under the contract concluded and compensation of losses caused by the refusal to renew the contract of lease with him or only compensation of such losses.
2. If the lessee continues to use the property after the expiry of the period of the contract in the absence of objections on the part of the lessor, the contract shall be considered to be renewed on the same conditions for an indefinite period (Article 581).
Article 593. Return of Leased Property to Lessor
In the event of the termination of the contract of lease the lessee shall be obliged to return property to the lessor in that condition in which he received it, taking into account normal wear and tear, or in the state stipulated by the contract.
If the lessee has not returned the leased property or returned it not in good time, the lessor shall have the right to demand making of lease payment for the entire time of the delay. In an instance when the said payment does not cover the losses caused to the lessor, he may demand the compensation thereof.
In an instance when a penalty has been provided for by the contract for the untimely return of the leased property, losses may be recovered in the full amount above the penalty unless otherwise provided by the contract.
Article 594. Improvement of Leased Property
1. Separable improvements of leased property made by the lessee shall be his ownership unless otherwise provided by the contract of lease.
2. In an instance when a lessee has made improvements of leased property at own expense and with the consent of the lessor which are not separable without harm to the property, the lessee shall have the right after termination of the contract to compensation of the cost of these improvements unless otherwise provided by the contract of lease.
3. The cost of inseparable improvements of leased property made by the lessee without the consent of the lessor shall not be subject to compensation unless otherwise provided by the legislation.
4. Improvements of leased property, both separable and inseparable, made at the expense of depreciation charges from this property shall be the ownership of the lessor.
Article 595. Purchase of Leased Property
1. It may be provided in a legislation or contract of lease that leased property passes to the ownership of the lessee upon the expiry of the period of lease or before the expiry thereof on condition of the lessee making the entire purchase price stipulated by the contract.
2. If the condition concerning the purchase of leased property is not provided for in the contract of lease, it may be established by an additional agreement of the parties, who in so doing shall have the right to agree on the set-off of the lease payment, previously paid, against the purchase price.
3. Instances of the prohibition of the purchase of leased property may be established by the legislation.
Article 596. Peculiarities of Individual Types of Lease and Lease of Individual Types of Property
The provisions of the present paragraph shall apply to individual types of contract of lease and to contracts of lease of individual types of property (rental, lease of means of transport, lease of buildings and installations, lease of enterprises, finance lease) unless otherwise established by the legislation.
§2. Rental
Article 597. Contract of Rental
1. Under a contract of rental the lessor carrying out the lease of property as a permanent entrepreneurial activity shall be obliged to grant movable property to the lessee in temporary possession and use for payment.
Property granted under a contract of rental shall be used for consumer’s purposes unless otherwise provided by the contract or does not arise from the essence of the obligation.
2. A contract of rental shall be concluded in written form.
3. A contract of rental shall be a public contract (Article 396).
Article 598. Period of Contract of Rental
1. A contract of rental shall be concluded for a period of up to one year.
2. The rules concerning renewal of a contract of lease for an indefinite period and concerning the preferential right of the lessee to renewal of the contract of lease (Article 591) shall not apply to the contract of rental.
3.The lessee shall have the right to repudiate the contract of rental at any time, having warned the lessor in writing about his intention by not less than ten days.
Article 599. Granting of Property to Lessee
A lessor who has concluded a contract of rental shall be obliged in the presence of the lessee to verify the good condition of the property being leased, and also to familiarize the lessee with the rules for the operation of the property or to issue him written instructions concerning the use of this property.
Article 600. Elimination of Defects of Property Leased
1. In the event of revealing by the lessee of defects in the property leased which wholly or partially obstruct the use thereof, the lessor shall be obliged within a ten-day period from the date of the declaration of the lessee concerning the defects, unless a shorter period has been established by the contract of rental, to eliminate the defects of the property without compensation on the site or to replace the particular property with other similar property which is in a proper condition.
2. If the defects of the leased property were a consequence of a violation by the lessee of the rules for operation and maintenance of the property, the lessee shall pay the lessor the cost of the repair and transportation of the property.
Article 601. Lease Payment Under Contract of Rental
1. Lease payment under a contract of rental shall be established in the form of payments determined in a lump sum to be made periodically or at one time.
2. In the event of the return of the property before time by the lessee, the lessor shall return to him the corresponding part of the lease payment received, calculating it from the day following the day of the actual return of the property.
3. The recovery of indebtedness from the lessee with regard to a lease payment shall be made in an uncontested proceeding on the basis of the executive endorsement made by a notary, a diplomatic agent of the diplomatic representation of the Republic of Belarus, a consular official of the consular office of the Republic of Belarus.
Article 602. Use of Leased Property
l. The capital and routine repair of property leased under a contract of rental shall be the duty of the lessor.
2. The sublease of property granted to a lessee under a contract of rental, the transfer by him of his rights and duties under the contract of rental to another person, the granting of this property for uncompensated use, the pledge of lease rights, and the contribution thereof as a property contribution to economic partnerships and companies or as a share contribution to production cooperatives shall not be permitted.
§ 3. Lease of Means of Transport
1. Lease of Means of Transport, With Provision of Services Relating to Driving and Technical Operation
(Lease of Means of Transport with Crew)
Article 603. Contract of Lease of Means of Transport with Crew
1. Under a contract of lease (time-charter) of a means of transport with a crew the lessor shall grant the means of transport to the lessee in temporary possession and use for payment and render services with his own forces with regard to the driving and technical operation thereof.
2. The rules concerning renewal of a contract of lease for an indefinite period and concerning the preferential right of the lessee to conclude a contract of lease for a new period (Article 592) shall not apply to the contract of lease of means of transport with a crew.
Article 604. Form of Contract of Lease of Means of Transport with Crew
A contract of lease of means of transport with a crew must be concluded in written form irrespective of the period thereof. The rules concerning the registration of contracts of lease provided for by Article 580(2) of this Code shall not apply to such a contract.
Article 605. Duty of Lessor Relating to Maintenance of Means of Transport
The lessor throughout the entire period of the contract of lease of means of transport with a crew shall be obliged to maintain the proper state of the means of transport leased, including the effectuation of routine and capital repair and the granting of necessary appurtenances.
Article 606. Duties of Lessor With Regard to Driving and Technical Operation of Means of Transport
1. Services with regard to driving and technical operation of means of transport granted by the lessor to the lessee must ensure its normal and safe operation in accordance with the purposes of the lease specified in the contract. A more extensive set of services to be granted to the lessee may be provided for by the contract of lease of means of transport with a crew.
2. The composition of the crew of means of transport and the skills thereof must correspond to the rules and conditions of the contract which are binding upon the parties, and if such requirements have not been established by rules and conditions of the contract which are binding upon the parties, by the requirements of usual practice for the operation of means of transport of the particular type and the conditions of the contract.
Members of the crew shall be employees of the lessor. They shall be subordinate to the regulations of the lessor with respect to the driving and technical operation and to the orders of the lessee affecting the commercial operation of the means of transport.
Unless otherwise provided by the contract of lease, expenses relating to the payment for services of members of the crew, and also expenses for the maintenance thereof, shall be borne by the lessor.
Article 607. Duty of Lessee Relating to Payment of Expenses Connected with Commercial Operation of Means of Transport
Unless otherwise provided by the contract of lease of means of transport with a crew, the lessee shall bear expenses arising in connection with the commercial operation of the means of transport, including expenses for the payment of fuel and other materials expended in the process of operation and for the payment of fees.
Article 608. Insurance of Means of Transport
Unless otherwise provided by a contract of lease of means of transport with crew, the duty to insure the means of transport and(or) to insure liability for damage which may be caused by it or in connection with its operation shall be placed on the lessor in those instances when such insurance is obligatory by virtue of a legislation or contract.
Article 609. Contracts With Third Persons Concerning Use of Means of Transport
1. Unless otherwise provided by the contract of lease of means of transport with a crew, the lessee shall have the right without the consent of the lessor to sublease the means of transport.
2. The lessee within the framework of carrying out commercial operation of leased means of transport shall have the right without the consent of the lessor to conclude in his own name with third persons contracts of carriage and other contracts unless they are contrary to the purposes of the use of means of transport specified in the contract of lease, and if such purposes have not been established, to the purposes of the means of transport.
Article 610. Liability for Harm Caused to Means of Transport
In the event of the perishing or damage of leased means of transport, the lessee shall be obliged to compensate the lessor for losses caused if the latter proves that the perishing or damage of the means of transport occurred with regard to circumstances for which the lessee is liable in accordance with the legislation or the contract of lease.
Article 611. Liability for Harm Caused by Means of Transport
Liability for harm caused to third persons by leased means of transport, by mechanisms, devices and equipment thereof, shall be borne by the lessor in accordance with the rules provided for by Chapter 58 of this Code. He shall have the right to submit a regressive demand against the lessee concerning compensation of amounts paid to third persons if he would prove that the harm arose through the fault of the lessee.
Article 612. Peculiarities of Lease of Individual Types of Means of Transport
Other peculiarities of the lease of individual types of means of transport with the granting of services relating to driving and technical operation may be established, besides those provided for by the present paragraph, by transport charters and codes.
2. Lease of Means of Transport Without Provision of Services Relating to Driving and Technical Operation (Lease of Means of Transport Without Crew)
Article 613. Contract of Lease of Means of Transport Without Crew
Under a contract of lease of means of transport without a crew the lessor shall grant means of transport to the lessee in temporary possession and use for payment without rendering services relating to the driving and technical operation thereof.
The rules concerning renewal of the contract of lease for an indefinite period and concerning the preferential right of the lessee to conclude a contract of lease for new period (Article 592) shall not apply to the contract of lease of means of transport without a crew.
Article 614. Form of Contract of Lease of Means of Transport Without Crew
A contract of lease of means of transport without crew must be concluded in written form irrespective of the period thereof. The rules concerning the registration of contracts of lease provided for by Article 580(2) of this Code shall not apply to such a contract.
Article 615. Duty of Lessee With Regard to Maintenance of Means of Transport
The lessee during the entire period of the contract of lease of means of transport without crew shall be obliged to maintain the proper condition of leased means of transport, including the effectuation of routine and capital repair.
Article 616. Duties of Lessee With Regard to Driving of Means of Transport and Its Technical Operation
The lessee shall effectuate the driving of the leased means of transport and the operation thereof, both commercial and technical, with his own forces.
Article 617. Duty of Lessee Relating to Payment of Expenses for Maintenance of Means of Transport
Unless otherwise provided by the contract of lease of means of transport without crew, the lessee shall bear the expenses for the maintenance of the leased means of transport, the insurance thereof, including insurance of his liability, and also expenses arising in connection with its operation.
Article 618. Contracts with Third Persons Concerning Use of Means of Transport
1. Unless otherwise provided by the contract of lease of means of transport, the lessee shall have the right without the consent of the lessor to sublease the leased means of transport on conditions of the contract of lease of means of transport with or without crew.
2. The lessee shall have the right without the consent of the lessor to conclude in his own name with third persons contracts of carriage and other contracts unless they are contrary to the purposes of the use of the means of transport specified in the contract of lease, and if such purposes have not been established, to the purpose of the means of transport.
Article 619. Liability for Harm Caused by Means of Transport
Liability for harm caused to third persons by a means of transport, its mechanisms, devices, and equipment shall be borne by the lessee in accordance with the rules of Chapter 58 of this Code.
Article 620. Peculiarities of Lease of Individual Types of Means of Transport
Other peculiarities of the lease of individual types of means of transport without granting services with regard to driving and technical operation besides those provided for by the present paragraph may be established by transport charters and codes.
§ 4. Lease of Buildings and Installations
Article 621. Contract of Lease of Building or Installation
1. Under the contract of lease of building or installation the lessor undertakes to transfer a building or installation in temporary possession and use or temporary use to the lessee.
The rules of the present paragraph shall apply to the lease of part of building or installation unless otherwise provided by the legislation.
2. The rules of the present paragraph shall apply to the lease of enterprises unless otherwise provided by this Code and other acts of legislation concerning the lease of an enterprise.
Article 622. Form and State Registration of Contract of Lease of Building or Installation
1. A contract of lease of a building or installation shall be concluded in written form by means of drawing up one document signed by the parties (Article 404(2)).
The failure to comply with the form of the contract of lease of a building or installation shall entail its invalidity.
2. The contract of lease of a building or installation concluded for a period of not less than one year shall be subject to state registration and shall be considered to be concluded from the time of such registration.
Article 623. Rights to Land Plot in Event of Lease of Building or Installation Situated Thereon
1. Under a contract of lease of a building or installation, to the lessee shall pass simultaneously with the transfer of the rights of possession and use of such immovable property the rights to that part of the land plot which is occupied by this immovable property and is necessary for its use.
2. In instances when the lessor is the owner of the land plot on which the building or installation to be leased is situated, the right of lease shall be granted to the lessee or other right to the respective part of the land plot provided for by the contract of lease of the building or installation.
Unless the right to the respective land plot to be transferred to the lessee has been determined by the contract, to him shall pass for the period of the lease of the building or installation the right to use that part of the land plot which is occupied by the building or installation and is necessary for its use in accordance with its purpose.
3.The lease of a building or installation situated on the land plot which does not belong to the lessor by right of ownership shall be permitted without the consent of the owner of this plot unless this is contrary to the conditions of the use of this plot established by the legislation or by contract with the owner of the land plot.
Article 624. Preservation by Lessee of Building or Installation of Right to Use Land Plot in Event of Sale Thereof
In instances when the land plot on which the leased building or installation is situated is sold to another person, the right of use of the part of the land plot which is occupied by the building or installation and is necessary for its use shall be preserved for the lessee of this building or installation on the conditions which existed before the sale of the land plot.
Article 625. Amount of Lease Payment
1. The contract of lease of a building or installation must provide for the amount of lease payment. In the absence of the condition concerning the amount of lease payment agreed by the parties in written form, the contract of lease of a building or installation shall be considered to be not concluded. In so doing, the rules for determining the price provided for by Article 394(3) of this Code shall not apply.
2. The payment established in the contract of lease of a building or installation for the use of the building or installation shall include payment for use of the land plot on which it is situated or the respective part of the plot transferred together with it, unless otherwise provided by the legislation or the contract.
3. In instances when the payment for lease of a building or installation has been established in the contract per unit of space of the building (installation) or other indicator of the dimension thereof, the lease payment shall be determined on the basis of the actual dimension of the building or installation transferred to the lessee.
Article 626. Transfer of Building or Installation
1. The transfer of a building or installation by the lessor and the acceptance thereof by the lessee shall be effectuated under an act of transfer or other document concerning the transfer, to be signed by the parties.
Unless otherwise provided by the legislation or the contract of lease of the building or installation, the obligation of the lessor to transfer the building or installation to the lessee shall be considered to be performed after the granting thereof to the lessee in possession or use and signing by the parties of the respective document concerning transfer.
The evading, by one party, of signing of the document concerning the transfer of the building or installation on the conditions provided for by a contract shall be considered as a refusal respectively of the lessor to perform the duty with regard to the transfer of property and of the lessee to accept the property.
2. In the event of the termination of the contract of lease of a building or installation, the leased building or installation must be returned to the lessor in compliance with the rules provided for by Clause 1 of this Article.
§ 5. Lease of Enterprise
Article 627. Contract of Lease of Enterprise
1. Under the contract of lease of an enterprise as a whole as a property complex used in order to effectuate entrepreneurial activity the lessor shall be obliged to grant to the lessee for payment in temporary possession and use land plots, buildings, installations, equipment, and other fixed assets within the composition of the enterprise, transfer in accordance with the procedure, on the conditions, and within the limits determined by the contract the stocks of raw material, fuel, materials, and other circulating assets, the rights of use of the land, water, and other natural resources, buildings, installations, and equipment, and other property rights of the lessor connected with the enterprise, the rights to designation individualizing the activity of the enterprise, and other exclusive rights, and also to assign to it the rights of demand and transfer debts to it which relate to the enterprise. The transfer of the rights of possession and use of property which is in the ownership of other persons, including land and other natural resources, shall be in accordance with the procedure provided for by the legislation.
2. The rights of the lessor received by him on the basis of a special permit (license) to engage in a respective activity shall not be subject to transfer to the lessee unless otherwise established by the legislation. The inclusion in the composition of the enterprise to be transferred under the contract of obligations, performance of which by the lessee is impossible in the absence of such authorization (license), shall not relieve the lessor from the respective obligations to creditors.
Article 628. Rights of Creditors in Event of Lease of Enterprise
1. Creditors with regard to obligations included as part of the enterprise must be notified before the transfer thereof to the lessee by the lessor in writing concerning the transfer of the enterprise on lease.
2. A creditor who has not notified the lessor in writing on his consent to the transfer of the debt shall have the right within three months from the date of receiving notification concerning the transfer of an enterprise on lease to demand the termination or performance of the obligation before time and compensation of the losses caused by this.
3. A creditor who has not been notified about the transfer of an enterprise on lease in accordance with the procedure provided for by Clause 1 of this Article may bring suit concerning the satisfaction of the demands provided for by Clause 2 of this Article within a year from the date when he knew or should have known about the transfer of the property on lease.
4. After the transfer of an enterprise on lease the lessor and the lessee shall bear joint and several liability for the debts included as part of the transferred enterprise which were transferred to the lessee without the consent of the creditor.
Article 629. Form and State Registration of Contract of Lease of Enterprise
1. The contract of lease of an enterprise shall be concluded in written form by means of drawing up one document signed by the parties (Article 404(2)).
2. The contract of lease of an enterprise shall be subject to state registration and shall be considered to be concluded from the time of such registration.
3. The failure to comply with the form of the contract of lease of an enterprise shall entail its invalidity.
Article 630. Transfer of Leased Enterprise
The transfer of an enterprise to the lessee shall be effectuated under an act of transfer.
The preparation of the enterprise for transfer, including the drawing up and submission for signing of the act of transfer, shall be the duty of the lessor and shall be effectuated at his expense unless otherwise provided by the contract of lease of the enterprise.
Article 631. Use of Property of Leased Enterprise
Unless otherwise provided by the contract of lease of an enterprise, the lessee shall not have the right without the consent of the lessor to sell, exchange, grant for temporary use, or loan material valuables which are part of the property of the leased enterprise, sublease these valuables, and transfer rights and duties under the contract of lease with respect to such valuables to another person. In case of carrying out of such transactions with the consent of the lessee, reduction of the value of the enterprise and violation of other provisions of the contract of lease of the enterprise is not permitted. The said procedure shall not apply with respect to land and other natural resources, nor in other instances provided for by the legislation.
Unless otherwise provided by the contract of lease of an enterprise, the lessee shall have the right without the consent of the lessor to make changes in the composition of the leased property complex and carry out the conversion, expansion, or technical re-equipment which increases its value.
Article 632. Duties of Lessee with Regard to Maintenance of Enterprise and Payment of Expenses for Operation Thereof
1. The lessee of an enterprise shall be obliged within the entire period of operation of the contract of lease of the enterprise to maintain the enterprise in a proper technical condition, including carrying out of the routine and capital repair thereof.
2. Expenses connected with the operation of the leased enterprise shall be placed on the lessee unless otherwise provided by the contract. The payments for insurance of the leased property also shall be placed on the lessee.
Article 633. Making of Improvements by Lessee in Leased Enterprise
The lessee of an enterprise shall have the right to compensation for the cost of inseparable improvements of the leased property, incurred by him, if these improvements are effectuated with the consent of the lessor, unless otherwise provided by the contract of lease of the enterprise.
The lessor may be relieved by a court from the duty to compensate the lessee for the cost of such improvements if it is proved that the costs of the lessee for such improvements exceeds the value of the leased property incommensurately to the improvement of its quality and(or) operational properties, or the principles of good faith and reasonableness were violated when effectuating such improvements.
Article 634. Application to Contract of Lease of Enterprise of Rules Concerning Consequences of Invalidity of Transactions,
and Rules Concerning Changes and Dissolution of Contract
The rules of this Code concerning the consequences of the invalidity of the transactions, changes and dissolution of a contract providing for the return or the recovery in kind of that received under the contract from one or from both parties shall apply to a contract of lease of an enterprise if such consequences do not violate materially the rights and the interests protected by the legislation of creditors, of the lessor and lessee and other persons and are not contrary to the state and public interests.
Article 635. Return of Leased Enterprise
In the event of the termination of a contract of lease of an enterprise, the leased property complex must be returned to the lessor in compliance with the rules provided for by Articles 627, 628, and 630 of this Code. The preparation of the enterprise for transfer to the lessor, including the drawing up and submission for signature of the act of transfer, shall in this event be the duty of the lessee and shall be effectuated at his expense unless otherwise provided by the contract.
§ 6. Finance Lease (Finance Leasing)
Article 636. Contract of Finance Lease
According to a contract of finance lease (contract of finance leasing) the lessor shall undertake to acquire in ownership the property, specified by the lessee, from a seller (supplier) determined by him and to grant this property in temporary possession and use for entrepreneurial purposes to the lessee for payment. The lessor in this event shall not bear liability for the choice of the subject of lease and the seller.
It may be provided by the contract of finance lease that the choice of seller or property to be acquired shall be effectuated by the lessor.
Article 637. Subject of Contract of Finance Lease
Any non-consumer things to be used for entrepreneurial activity, except land plots and other natural objects, may be the subject of a contract of finance lease.
Article 638. Notifying Seller About Leasing Out of Property
The lessor, in acquiring property for a lessee, is obliged to notify in writing the seller (supply) that the property is intended for the transfer thereof on lease to a determined person.
Article 639. Transfer to Lessee of Subject of Contract of Finance Lease
1. Unless otherwise provided by the contract of finance lease, the property which is the subject of this contract shall be transferred by the seller (supplier) directly to the lessee at the location of the latter.
2. In an instance when property which is the subject of a contract of finance lease is not transferred to the lessee within the period specified in this contract, and if such period has not been specified in this contract, within a reasonable period, the lessee shall have the right, if the delay was committed under circumstances for which the lessor is liable, to demand dissolution of the contract and compensation of losses.
Article 640. Transfer to Lessee of Risk of Accidental Perishing or Accidental Spoilage of Property
The risk of accidental perishing or accidental spoilage of leased property shall pass to the lessee at the time of the transfer of the leased property to him unless otherwise provided by the contract of finance lease.
Article 641. Liability of Seller
1. The lessee shall have the right to submit demands directly to the seller (supplier) of the property, which is the subject of the contract of finance lease, arising from the contract of purchase-sale concluded between the seller and the lessor, in particular, with respect to the quality and completeness of the property, the periods for the delivery thereof, and in other instances of improper performance of the contract by the seller (supplier). In so doing, the lessee shall have the rights and bear the duties provided for by this Code for a purchaser except for the duties to pay for the property acquired as if he would be a party to the contract of purchase-sale of the said property. However, the lessee may not dissolve the contract of purchase-sale (delivery) with the seller (supplier) without the consent of the lessor.
In relations with the seller (supplier) the lessee and lessor shall act as joint and several creditors (Article 307).
2. Unless otherwise provided by the contract of finance lease, the lessor shall not be liable to the lessee for the fulfillment by the seller (supplier) of demands arising from the contract of purchase-sale (delivery), except for instances when liability for the choice of the seller (supplier) lies on the lessor. In the latter instance the lessee shall have the right at his discretion to submit demands arising from the contract of purchase-sale (delivery) both directly to the seller (supplier) of the property and to the lessor, who shall bear joint and several liability.
CHAPTER 35
Rental of Dwelling Premise
Article 642. Contract of Rental of Dwelling Premise
Relations arising from the contract of rental of dwelling premise shall be regulated by the Housing Code of the republic of Belarus.
CHAPTER 36
Uncompensated Use
Article 643. Contract of Uncompensated Use (Loan of Goods)
1. Under a contract of uncompensated use (contract of loan) one party (the lender) shall undertake to transfer or transfers a thing for temporary uncompensated use to the other party (loan recipient), and the latter shall undertake to return this thing in the same condition in which it was received, taking into consideration normal wear and tear, or in condition stipulated by the contract.
2. The rules provided for by Article 578, Article 581(1), Article 581(2, part 1), Article 586(1) and (3), Article 592(2), and Article 594(1) and (3) of this Code shall apply respectively to the contract of uncompensated use.
Article 644. Lender
1. The right to transfer a thing for uncompensated use shall belong to the owner thereof and to other persons authorized to do so by the legislation or by the owner.
2. A commercial organization shall not have the right to transfer property for uncompensated use to a person who is the founder, participant, director, or member of the management or control bodies thereof.
Article 645. Granting Thing for Uncompensated Use
1. The lender shall be obliged to grant a thing in a condition corresponding to the terms of the contract of uncompensated use and the purpose thereof.
2. A thing shall be granted for uncompensated use with all of its appurtenances and documents relating thereto (instruction manual, technical passport, and so forth) unless otherwise provided by the contract.
If such appurtenances and documents were not transferred and without them the thing can not be used for its purpose or its use to a significant degree loses value for the loan recipient, the latter shall have the right to demand such appurtenances and documents be granted to him or to demand dissolution of the contract and compensation for real damage incurred by him (Article 14(2)).
Article 646. Consequences of Failure to Grant Thing for Uncompensated Use
If the lender does not transfer a thing to the loan recipient, the latter shall have the right to demand dissolution of the contract of uncompensated use and compensation for real damage incurred by him.
Article 647. Liability for Defects of Thing Transferred for Uncompensated Use
1. The lender shall be liable for defects of a thing which he intentionally or through gross negligence did not stipulate when concluding the contract of uncompensated use.
In the event of revealing of such defects, the loan recipient shall have the right at his discretion to demand of the lender the uncompensated elimination of the defects of the thing or compensation of his expenses for elimination of the defects of the thing or dissolution of the contract before time and compensation for real damage incurred by him.
2.The lender notified about the demands of the loan recipient or of his intention to eliminate the defects of the thing at the expense of the lender may without delay replace the thing in disrepair with another similar thing, which is in a proper condition.
The lender shall not be liable for defects of a thing which were stipulated by him when concluding the contract or were known to the loan recipient beforehand or should have been revealed by the loan recipient during the inspection of the thing or verification of its condition when concluding the contract or when transferring the thing.
Article 648. Rights of Third Persons in rem Being Transferred for Uncompensated Use
The transfer of a thing for uncompensated use shall not be grounds for the change or termination of the rights of third persons to this thing.
When concluding a contract of uncompensated use the lender shall be obliged lo warn the loan recipient about all the rights of third persons to this thing (servitude, right of pledge, and so forth). The failure to perform this duty shall give the loan recipient the right to demand dissolution of the contract and compensation for real damage incurred by him.
Article 649. Duties of Loan Recipient With Regard to Maintenance of Thing
The loan recipient shall be obliged to maintain the thing received for uncompensated use in a proper condition, including the effectuation of routine and capital repair, and bear all expenses for maintenance thereof unless otherwise provided by the contract of uncompensated use.
Article 650. Risk of Accidental Perishing or Accidental Damaging of Thing
The loan recipient shall bear the risk of accidental perishing or accidental damage of a thing received for uncompensated use if the thing perished or was spoiled in connection with the fact that he used it not in accordance with the contract of uncompensated use or purpose of the thing or transferred it to a third person without the consent of the lender. The loan recipient also shall bear the risk of accidental perishing or accidental damage of the thing if, taking into consideration the actual circumstances, he could prevent the perishing or spoilage thereof by having sacrificed his thing but preferred to preserve his thing.
Article 651. Liability for Harm Caused to Third Person as Result of Use of Thing
The lender shall be liable for harm caused to a third person as a result of the use of the thing unless it is proved that the harm was caused as a consequence of the intent or gross negligence of the loan recipient or person who kept this thing with the consent of the lender.
Article 652. Dissolution of Contract of Uncompensated Use Before Time
1. The lender shall have the right to demand dissolution of a contract of uncompensated use before time in instances when the loan recipient:
1) uses the thing not in accordance with the contract or purpose of the thing;
2) does not fulfill duties with regard to maintenance of the thing in a proper condition or the service thereof;
3) materially worsens the condition of the thing;
4) has transferred the thing without the consent of the lender to a third person.
2. The loan recipient shall have the right to demand the dissolution of the contract of uncompensated use before time:
1) in the event of revealing of defects making the normal use of the thing impossible or encumbering, concerning the existence of which he did not know and could not have known at the time of concluding the contract;
2) if the thing by virtue of circumstances for which he is not liable proves to be in a condition not fit for use;
3) if when concluding the contract the lender did not warn him about the rights of third persons to the thing being transferred;
4) in the event of the failure of the lender to perform the duty to transfer the thing or appurtenances thereof and documents relating to it.
Article 653. Repudiation of Contract of Uncompensated Use
1. Each of the parties shall have the right at any time to repudiate the contract of uncompensated use concluded without specification of the period, having notified the other party thereof one month beforehand unless a different period of notice has been provided for by the contract.
2. Unless otherwise provided by the contract, the loan recipient shall have the right at any time to repudiate the contract concluded with specification of the period in accordance with the procedure provided for by Clause 1 of this Article.
Article 654. Change of Parties in Contract of Uncompensated Use
l. The lender shall have the right to alienate the thing or transfer it for compensated use to a third person. In so doing, to the new owner or user shall pass the rights relating to the previously concluded contract of uncompensated use, and his rights with respect to the thing shall be encumbered by the rights of the loan recipient.
2. In the event of the death of a citizen, being the lender, or the reorganization or liquidation of a legal person, being the lender, the rights and duties of the lender under the contract of uncompensated use shall pass to the heir (legal successor) or to another person to whom the right of ownership to the thing or other right has passed, on the basis of which the thing was transferred in uncompensated use.
In the event of the reorganization of a legal person, being the loan recipient, its rights and duties under the contract shall pass to the legal person which is the legal successor thereof unless otherwise provided by the contract.
Article 655. Termination of Contract of Uncompensated Use
A contract of uncompensated use shall terminate in the event of the death of the citizen, being the loan recipient, or liquidation of the legal person, being the loan recipient, unless otherwise provided by the contract.
CHAPTER 37
Independent Work
§ 1. General Provisions on Independent Work
Article 656. Contract of Independent Work
1. Under a contract of independent work one party (the independent work contractor) shall undertake to fulfill the determined work according to the order of the other party (customer) and to hand over the result thereof to the customer, and the customer shall undertake to accept the result of the work and to pay for it. The work shall be fulfilled for the risk of the independent work contractor, unless otherwise established by the legislation or contract of the parties.
2. The provisions of the present paragraph shall apply to individual types of contract of independent work (domestic independent work, construction independent work, independent work for the fulfillment of design and survey work, independent work for state needs) unless otherwise established by this Code and other acts of legislation concerning these types of contracts.
Article 657. Work to be Fulfilled Under Contract of Independent Work
1. A contract of independent work shall be concluded for the manufacture or converting (processing) of a thing or for the fulfillment of other work with the transfer of its results to the customer.
2. Under a contract of independent work concluded for the manufacture of a thing the independent work contractor shall pass the rights thereto to the customer.
3. Unless otherwise provided by the contract, the independent work contractor autonomously shall determine the means of fulfillment of the order of the customer.
Article 658. Fulfillment of Work by the Means of Independent Work Contractor
1. Unless otherwise provided by the contract of independent work, the work shall be fulfilled by the means of the independent work contractor, i.e. of his materials and by his forces and means.
2. The independent work contractor shall bear liability for the improper quality of materials and equipment granted by him, and also for granting materials and equipment encumbered by the rights of third persons.
Article 659. Distribution of Risks Among Parties
1. Unless otherwise provided by this Code, other legislation, or by the contract of independent work:
1) the risk of accidental perishing or accidental damage of materials, equipment, things transferred for conversion (processing), or other property used to perform the contract shall be borne by the party granting this property;
2) the risk of accidental perishing or accidental damage of the result of the work fulfilled shall be borne by the independent work contractor until the acceptance thereof by the customer.
2. In the event of the delay of the transfer or acceptance of the result of the work the risks provided for by Clause 1 of this Article shall be borne by the party which has committed the delay.
Article 660. General Independent Work Contractor and Independent Work Subcontractor
1. Unless the duty of the independent work contractor to fulfill the work provided for in the contract personally arises from a legislation or contract of independent work, the independent work contractor shall have the right to involve other persons (independent work subcontractors) to perform his obligations. In this event the independent work contractor shall act as the general independent work contractor.
2. The independent work contractor who has involved an independent work subcontractor to perform the contract of independent work in violation of the provisions of Clause 1 of this Article or the contract shall bear liability to the customer for losses caused by the participation of the independent work subcontractor in performance of the contract.
3. The general independent work contractor shall bear liability to the customer for the consequences of the failure to perform or the improper performance of obligations by the independent work subcontractor in accordance with the rules of Article 294(1) and Article 374 of this Code, and to the independent work subcontractor for the failure to perform or the improper performance by the customer of obligations under the contract of independent work.
Unless otherwise provided by the legislation or contract, the customer and the Independent work subcontractor shall not have the right to submit to one another demands connected with a violation of the contracts concluded by each of them with the general independent work contractor.
4. With the consent of the general independent work contractor the customer shall have the right to conclude contracts for the fulfillment of individual works with other persons. In this event the said persons shall bear liability for the failure to perform or the improper performance of work directly to the customer.
Article 661. Participation of Several Persons in Performance of Work
l. If two persons or more act on the side of the independent work contractor, in the event of the indivisibility of the subject of the obligation they shall be deemed with respect to the customer to be joint and several debtors and respectively joint and several creditors.
2. In the event of the divisibility of the subject of the obligation, and also in other instances provided for by the legislation, or the contract, each of the persons specified in Clause 1 of this Article shall acquire the rights and bear the duties with respect to the customer within the limits of his share (Article 302).
Article 662. Periods for Fulfillment of Work
1. The periods of beginning and ending of fulfillment of the work shall be specified in the contract of independent work. By agreement between the parties, the periods of beginning and ending of individual stages of work (intermediate periods) also may be provided for in the contract.
Unless otherwise established by the legislation, or provided for by the contract, the independent work contractor shall bear liability for a violation of both the beginning and ending, and also the intermediate, periods for the fulfillment of work.
2. The beginning, ending, and intermediate periods for the fulfillment of work specified in the contract of independent work may be changed in the instances and in accordance with the procedure provided for by the contract.
3. The consequences of delay of performance specified in Article 376(2) of this Code shall ensue in the event of a violation of the ending period for the fulfillment of the work.
Article 663. Price of Work
1. In the contract of independent work the price of the work subject to fulfillment or the means of determining it shall be specified. In the absence of such indications in the contract the price shall be determined in accordance with Article 394(3) of this Code on the basis of prices commonly applied for the similar works, taking into consideration the necessary expenses incurred by the parties.
2. The price in the contract of independent work shall include compensation for the costs of the independent work contractor and the remuneration due to it.
3. The price of the work may be determined by means of drawing up an estimate.
In instances when work is fulfilled in accordance with the estimate drawn up by the independent work contractor, the estimate shall acquire force and become part of the contract of independent work from the time of the confirmation thereof by the customer.
4. The price of the work (estimate) may be fixed or approximate. In the absence of other indications in the contract of independent work, the price of the work shall be considered to be fixed.
5. If the necessity arises for carrying out additional work and for this reason the price of the work determined approximately materially increases, the independent work contractor shall be obliged to warn the customer thereof in good time. The customer who has not agreed to the increase of the price of the work specified in the contract of independent work shall have the right to repudiate the contract. In this event, the independent work contractor may demand payment from the customer to him of the price for the part of the work fulfilled.
An independent work contractor who has not warned the customer in good time about the necessity of increasing the price of the work specified in the contract shall be obliged to fulfill the contract, retaining the right to payment for the work at the price determined in the contract.
6. An independent work contractor shall not have the right to demand an increase of a fixed price, and the customer shall not have the right to demand to reduce it, including an instance when at the time of concluding the contract of independent work the possibility to determine the full amount of work subject to fulfillment or the expenses necessary for this was excluded.
In the event of the material growth, after conclusion of the contract, of the cost of materials and equipment granted by the independent work contractor, and also of services rendered to him by third persons which could not be provided for when concluding the contract, the independent work contractor shall have the right to demand an increase of the established price, and in the event of the refusal of the customer to fulfill this demand, to dissolve the contract in accordance with Article 421 of this Code.
Article 664. Economies of Independent Work Contractor
1. In instances when the actual expenses of the independent work contractor prove to be less than those which were taken into consideration when determining the price of the work, the independent work contractor shall retain the right to payment for the work at the price provided for by the contract of independent work unless the customer proves that the economies received by the independent work contractor affected the quality of the work fulfilled.
2. A distribution of the economies received by the independent work contractor between the parties may be provided for in the contract of independent work.
Article 665. Procedure for Payment of Work
1. Unless payment in advance for work fulfilled or individual stages thereof has been provided for by the contract of independent work, the customer shall be obliged to pay the independent work contractor the stipulated price after the final handing over of the results of the work, if the work is fulfilled properly and within the agreed period, or, with the consent of the customer, before time.
2. The independent work contractor shall have the right to demand the payment to him of an advance or a deposit only in the instances and in the amount specified in a legislation or in the contract of independent work.
Article 666. Right of Independent Work Contractor to Retention
In the event of the failure of the customer to perform the duty to pay the established price or other amount due to the independent work contractor in connection with the fulfillment of the contract of independent work, the independent work contractor shall have the right to retention, in accordance with Article 340 of this Code, of the result of the work, and also the equipment belonging to the customer, transferred for converting (processing) the thing, the remains of the material unused, and other property of the customer, which is in the disposal of the independent work contractor, until the payment by the customer of the respective amounts.
Article 667. Fulfillment of Work with Use of Material of Customer
l. The independent work contractor shall be obliged:
1) to use the material granted by the customer economically and carefully;
2) after the ending of the work, to submit a report to the customer concerning the expenditure of the material;
3) to return the remains thereof or, with the consent of the customer, to reduce the price of the work by taking into account the cost of the unused material remaining in the disposal of the independent work contractor.
2. If the result of the work was not achieved or the result achieved turned out to have defects which make it unfit for the use provided for in the contract of independent work, or, in the absence of a respective condition of unfitness in the contract, for ordinary use for reasons caused by the defects of the material granted by the customer, the independent work contractor shall have the right to demand payment for the work fulfilled by him.
3. The independent work contractor may effectuate the right specified in Clause 2 of this Article if it is proved that the defects of the material could not be revealed when the independent work contractor properly received this material.
Article 668. Liability of Independent Work Contractor for Non-Preservation of Property Granted by Customer
The independent work contractor shall bear liability for the non-preservation of material, equipment, the thing transferred for conversion (processing), or other property granted by the customer which turned out to be in the possession of the independent work contractor in connection with the performance of the contract of independent work.
Article 669. Rights of Customer During Fulfillment of Work by Independent Work Contractor
1. The customer shall have the right at any time to verify the course and quality of the work to be fulfilled by the independent work contractor without interfering in his activity.
2. If the independent work contractor does not embark upon the timely performance of the contract of independent work or fulfills the work so slowly that the ending thereof, within the period specified, clearly becomes impossible, the customer shall have the right to repudiate performance of the contract and to demand compensation of losses.
3. If during the fulfillment of work it becomes evident that it will not be properly fulfilled, the customer shall have the right to designate a reasonable period to the independent work contractor for elimination of the defects and in the event of the failure to perform this demand by the independent work contractor within the designated period to repudiate the contract of independent work or to commission rectification of the work to another person at the expense of the independent work contractor, and also to demand compensation of losses.
4. Unless otherwise provided by the contract of independent work, subject to availability of valid reasons, the customer may repudiate the contract of independent work at any time before handing over the results of work, subject to payment of the part of price specified for the work, corresponding to the difference between the part of price, paid for the work, and the price specified for the work as a whole.
Article 670. Circumstances of Which Independent Work Contractor is Obliged to Warn Customer
1. The independent work contractor shall be obliged to warn immediately the customer and until receiving instructions from him to suspend the work in the event of revealing:
1) the unfitness or poor quality of the material, equipment, technical documentation, granted by the customer, or thing transferred for conversion (processing) by the customer;
2) possible consequences of the fulfillment of customer’s instructions concerning the means of performance of the work, unfavorable for the customer;
3) other circumstances beyond the control of the independent work contractor, which threaten the fitness or stability of the results of the work to be fulfilled or create the impossibility of completing it within the specified period.
2. An independent work contractor who has not warned the customer about the circumstances specified in Clause 1 of this Article or who has continued the work without awaiting the expiry of the period specified in the contract, or, in the absence thereof, of a reasonable period for a reply to the warning, or, not regarding the timely instruction of the customer concerning termination of the work, shall not have the right to refer to the said circumstances in the event of the submission of respective demands to him or by him to the customer.
3. If the customer, not regarding a timely and substantiated warning from the part of the independent work contractor concerning the circumstances specified in Clause 1 of this Article, within a reasonable period does not replace unfit or poor-quality material, equipment, technical documentation, or thing transferred for conversion (processing), or does not change instructions concerning the means of fulfilling the work, or does not take other necessary measures in order to eliminate the circumstances threatening the fitness thereof, the independent work contractor shall have the right to refuse performance of the contract of independent work and to demand compensation of losses caused by its termination.
Article 671. Assistance of Customer
1. The customer shall be obliged in the instances, in the amount, and in accordance with the procedure provided for by the contract of independent work to render assistance to the independent work contractor in the fulfillment of the work.
In the event of the failure of the customer to perform this duty the independent work contractor shall have the right to demand compensation of losses caused, including additional costs caused by idle time, or to carry over the periods for performance of the work, or to increase the price of the work specified in the contract.
2. In instances when performance of the work under the contract of independent work has become impossible as a consequence of actions or omissions of the customer, the independent work contractor shall retain the right to payment to him of the price specified in the contract taking into account the part of the work fulfilled.
Article 672. Failure of Customer to Perform Counter Duties Under Contract of Independent Work
1. The independent work contractor shall have the right not to embark upon the work, and to suspend work begun, in instances when a violation by the customer of his duties under the contract of independent work, in particular the failure to grant material, equipment, technical documentation, or the thing subject to conversion (processing), or improper quality or unfitness thereof, prevents the performance of the contract by the independent work contractor, and also when there are circumstances obviously testifying to the fact that performance of the said duties will not be made within the established period (Article 309).
2. Unless otherwise provided by the contract of independent work, the independent work contractor shall have the right, when the circumstances specified in Clause 1 of this Article exist, to refuse performance of the contract and to demand compensation of losses.
Article 673. Acceptance by Customer of Work Fulfilled by Independent Work Contractor
1. The customer shall be obliged within the periods and in accordance with the procedure which are provided for by the contract of independent work to inspect and accept, with the participation of the independent work contractor, the work fulfilled (result thereof), and in the event of revealing deviations from the contract which worsen the result of the work or other defects in the work, to immediately declare this to the independent work contractor.
2. The customer who has revealed defects in the work when receiving it, shall have the right to refer to them only in instance when these defects, or the possibility of subsequent submission of a demand concerning elimination thereof, were stipulated in the act or in the other document certifying acceptance.
3. Unless otherwise provided by the contract of independent work, the customer who has accepted work without verification shall be deprived of the right to refer to defects of the work which could have been revealed by ordinary means of the acceptance thereof (obvious defects).
4. The customer who has revealed, after acceptance of the work, deviations therein from the contract of independent work or other defects which could not be revealed by ordinary means of acceptance (latent defects), including those which were intentionally concealed by the independent work contractor, shall be obliged to notify the independent work contractor thereof after the revealing thereof.
5. In the event of a dispute arising between the customer and the independent work contractor, relating to the defects of the work fulfilled or the reasons therefor, an expert examination must be designated at the demand of any of the parties. The expenses with regard to the expert examination shall be borne by the independent work contractor except for instances when the expert examination established the absence of violations by the independent work contractor of the contract of independent work or a causal link between the actions of the independent work contractor and the defects revealed. In the said instances the expenses for the expert examination shall be borne by the party which required the designation of the expert examination, and if it was designated by agreement between the parties, by both parties equally.
6. Unless otherwise provided by the contract of independent work, in the event the customer evades accepting the work fulfilled, the independent work contractor shall have the right upon the expiry of a month from the date when according to the contract the result of the work should have been transferred to the customer, and on condition of a subsequent warning twice of the customer, to sell the result of the work, and to deposit the amount received, less all payments due to the independent work contractor, in the name of the customer in accordance with the procedure provided for by Article 308 of this Code.
7. If the evasion of the customer of acceptance of the work fulfilled entailed delay in handing over the work, the risk of accidental perishing of the work shall be deemed to have passed to the customer at the time when the transfer of the thing should have happened.
Article 674. Quality of Work
1. The quality of work fulfilled by the independent work contractor must correspond to the conditions of the contract of independent work, and in the absence or incompleteness of the conditions of the contract, to the requirements ordinarily presented for work of the respective nature. Unless otherwise provided by the legislation or contract, the result of work fulfilled must, at the time of transfer to the customer, possess the properties specified in the contract or determined requirements usually presented, and within the limits of a reasonable period be fit for the use established by the contract, and if such use is not provided for by the contract, for ordinary use of the result of work of this nature.
2. If obligatory requirements for work to be fulfilled under a contract of independent work have been provided for by the legislation or in accordance with the procedure established by the legislation, the independent work contractor acting as an entrepreneur shall be obliged to fulfill the work while complying with these obligatory requirements.
Article 675. Guarantee of Quality of Work
1. In an instance when a guarantee period is provided for the result of work by the legislation or by the contract of independent work, the independent work contractor must transfer to the customer the result of work, which must correspond to the requirements of Article 674(1) of this Code during the entire guarantee period.
2. The guarantee of quality of the result of work, unless otherwise provided by the contract of independent work, shall extend to everything comprising the result of the work.
Article 676. Liability of Independent Work Contractor for Improper Quality of Work
1. In instances when work is fulfilled by an independent work contractor with deviations from the contract of independent work which worsen the result of the work, or with other defects which make it unfit for the use provided for in the contract or, in the event of the absence in the contract of a corresponding condition of unfitness, for ordinary use, the customer shall have the right, unless otherwise established by the legislation or the contract, at his discretion, to demand from the independent work contractor:
1) elimination of the defects without compensation within a reasonable period;
2) commensurate reduction of the price established for the work;
3) compensation of his expenses for elimination of the defects when the right of the customer to eliminate the defects has been provided for in the contract of independent work (Article 368).
2. The independent work contractor shall have the right instead of eliminating the defects for which he is liable to fulfill the work without compensation anew with compensation to the customer of losses caused by the delay of performance. In this event the customer shall be obliged to return the result of the work previously transferred to him to the independent work contractor if by the character of the work such return is possible.
3. If deviations in the work from the conditions of the contract of independent work or other defects of the result of the work are not eliminated within a reasonable period established by the customer, or if these deviations are material and ineradicable, the customer shall have the right to refuse performance of the contract and to demand compensation of losses caused.
4. The condition of the contract of independent-work concerning relieving the independent work contractor of liability for determined defects shall not relieve him from liability if it is proved that such defects arose as a consequence of guilty actions or the omission of the independent work contractor.
5. The independent work contractor who has granted material to fulfill work shall be liable for its quality according to the rules concerning liability of the seller for goods of improper quality (Article 445).
Article 677. Periods of Revealing of Improper Quality of Result of Work
1. Unless otherwise established by the legislation or the contract of independent work, the customer shall have the right to submit demands connected with the improper quality of the result of work on condition that it is revealed within the periods established by this Article.
2. In an instance when a guarantee period is not established for the result of the work, demands connected with defects of the result of the work may be submitted by the customer on condition that they were revealed within a reasonable period, but within the limits of two years from the date of transfer of the result of the work, unless other periods have been established by the legislation or the contract.
3. The customer shall have the right to submit demands connected with defects of the result of the work revealed within the guarantee period.
4. In an instance when the guarantee period provided for by the contract constitutes less than two years and the defects of the result of the work are revealed by the customer upon the expiry of the guarantee period but within the limits of two years from the time provided for by Clause 5 of this Article, the independent work contractor shall bear liability if the customer proves that the defects arose before the transfer of the result of the work to the customer or for reasons which arose before that time.
5. Unless otherwise provided by the contract of independent work, the guarantee period (Article 675(1)) shall commence to run from the time when the result of the work fulfilled was accepted or should have been accepted by the customer.
6. The rules contained in Article 441(2) and (4) of this Code respectively shall apply to calculating the guarantee period under the contract of independent work unless otherwise provided by the legislation, agreement of the parties, or does not arise from the peculiarities of the contract of independent work.
Article 678. Limitation period With Regard to Suits Concerning Improper Quality of Work
1. The limitation period for demands submitted in connection with improper quality of work to be fulfilled under the contract of independent work shall be equal to one year, or, with respect to buildings, structures and installations, three years.
2. If a guarantee period has been established by the legislation or the contract of independent work, and the declaration with regard to defects of the result of the work was made within the limits of the guarantee period, the running of the limitation period specified in Clause 1 of this Article shall commence from the date of the declaration concerning the defects.
3. If in accordance with the contract of independent work the result of the work was accepted by the customer in parts, the running of the limitation period shall commence from the date of acceptance of the result of the work as a whole.
Article 679. Duty of Independent Work Contractor to Transfer Information to Customer
The independent work contractor shall be obliged to transfer to the customer together with the result of the work information affecting the operation or other use of the subject of the contract of independent work, if this is provided for by the contract, or if the character of the information is such that without it the use of the result of the work is impossible for the purposes specified in the contract.
Article 680. Confidentiality of Information Received by Parties
If a party, as a result of the performance of his obligation under the contract of independent work, has received information from the other party concerning new solutions and technical knowledge, including those not protected by the legislation, and also information which might be considered as a commercial secret (Article 140), the party who has received such information shall not have the right to disclose it for third persons without the consent of the other party.
The procedure and conditions for the use of such information shall be determined by agreement of the parties.
Article 681. Return of Property and Equipment from Independent Work Contractor to Customer
In instances when the customer on the basis of Article 669(2) or Article 676(3) of this Code dissolves a contract of independent work, the independent work contractor shall be obliged to return the materials, equipment, thing transferred for conversion (processing), and other property granted by the customer or to transfer this property to the person specified by the customer, and if this proves to be impossible, to compensate the cost of the materials, equipment, and other property.
Article 682. Consequences of Termination of Contract of Independent Work Before Acceptance of Result of Work
In the event of the termination of a contract of independent work on the grounds provided for by the legislation or the contract before the acceptance by the customer of the result of the work fulfilled by the independent work contractor (Article 673(l)), the customer shall have the right to demand the transfer to him of the result of the uncompleted work with compensation for the independent work contractor of expenses made.
§ 2. Domestic Independent Work
Article 683. Contract of Domestic Independent Work
1. Under a contract of domestic independent work the independent work contractor carrying out the respective entrepreneurial activity shall be obliged to fulfill according to the order of a citizen (customer) the work determined which is intended to satisfy the personal, domestic or family requirements of the customer, and the customer shall be obliged to accept this work and to pay for it.
2. The contract of domestic independent work shall be a public contract (Article 396).
3. The legislation on defense of the rights of consumers shall apply to relations under the contract of domestic independent work.
Article 684. Guarantees of Rights of Customer
l. An independent work contractor shall not have the right to bind the customer to include additional payable work or services in the contract of domestic independent work. The customer shall have the right to refuse payment for work or services not provided for by the contract.
2. The customer shall have the right at any time before the work is handed over to him to refuse performance of the contract of domestic independent work, having paid to the independent work contractor the part of the established price in proportion to the part of the work fulfilled before notifying about the refusal of performance of the contract and having compensated the independent work contractor for expenses made until this time for the purposes of performance of the contract unless they are within the said part of the price of the work. Conditions of a contract depriving the customer of this right shall be void.
Article 685. Form of Contract
Unless otherwise provided by the legislation or a contract of domestic independent work, including the conditions of standard contracts or other standard forms joined by the purchaser (Article 398), a contract of domestic independent work shall be considered to be concluded in proper form from the time of the issuance by the independent work contractor to the customer of a receipt or other document confirming the conclusion of the contract.
Article 686. Public Offer for Contract of Domestic Independent Work
The rules concerning the public offer, provided in Article 407 of this Code, shall respectively apply to the advertisement and other offers of works performed under the contract of domestic independent work.
Article 687. Granting Information to Customer About Offered Work
1. The independent work contractor shall be obliged before conclusion of the contract of domestic independent work to grant to the customer necessary and reliable information concerning the offered work, the types thereof, and peculiarities, the price and form of payment, and also notify the customer, at his request, of other information relating to the contract and respective work. If by the character of the work this has significance, the independent work contractor must notify the customer about the specific person who will fulfill it.
2. The customer shall have the right to demand dissolution of a concluded contract of domestic independent work without payment for the work fulfilled, and also compensation of losses, in instances when as a consequence of the incompleteness or unreliability of information received from the independent work contractor the contract was concluded for the fulfillment of work not possessing the properties which the customer had in view.
3. Information specified in this Article shall be granted to the customer in one of the official languages. Information notified or granted in the foreign language shall be deemed to be not granted, except for the instances when the information was notified or granted in the foreign language in accordance with the desire of the customer.
Article 688. Fulfillment of Work from Material of Independent Work Contractor
1. If work under the contract of domestic independent work is fulfilled from material of the independent work contractor, the material shall be paid for by the customer when concluding the contract in full or in part specified in the contract, with the final settlement of accounts when the work fulfilled by the independent work contractor is received by the customer.
In accordance with the contract, the material may be granted by the independent work contractor on credit, including granting under the condition of payment for the material by the customer on installment.
2. A change of price of the material, granted by the independent work contractor, after the conclusion of a contract of domestic independent work, shall not entail a resettlement of accounts.
Article 689. Fulfillment of Work from Material of Customer
If work under the contract of domestic independent work is fulfilled from the material of the customer, the exact name, description, and price of the material determined by agreement of the parties must be specified on the receipt or other document issued by the independent work contractor to the customer when concluding the contract. However, a valuation of the material in the receipt or other similar document may be subsequently contested by the customer in a court.
Article 690. Price and Payment for Work
The price of work in a contract of domestic independent work shall be determined by agreement of the parties and may not be higher than that established or regulated by respective state bodies. The work shall be paid for by the customer after the final handing over thereof by the independent work contractor. With the consent of the customer the work may be paid for by him when concluding the contract in full or by means of advance.
Article 691. Warning of Customer About Conditions of Use of Work Fulfilled
When handing work over to the customer, the independent work contractor shall be obliged to notify him about the requirements which it is necessary to comply with for the effective and safe use of the result of the work, and also possible consequences for the customer himself and other persons of the failure to comply with the respective requirements.
Article 692. Consequences of Revealing of Defects in Work Fulfilled
1. In the event of revealing of defects during the acceptance of the result of the work or during using thereof within the general periods of limitation period, provided by Article 678 of this Code, or, if the guarantee period is specified, within this period, the customer shall have the right at his discretion to exercise one of the rights provided for in Article 676 of this Code or to demand fulfillment of the work again without compensation, or compensation of expenses incurred by him for rectification of the defects by his own means or by third persons.
2. The demand of elimination, without compensation, of the defects of work under the contract of domestic independent work, that can be dangerous for the life or health of the customer or other persons, may be submitted by he customer or legal successors thereof within ten years after reception of the results of work, unless the longer periods (service periods) are provided in accordance with the procedure established by the legislation. This demand may be submitter irrespective of the time when the defects were revealed, including the case when the defects are revealed after the expiry of the guarantee period.
3. In the event of the failure of the independent work contractor to fulfill the demand specified in Clause 2 of this Article, the customer shall have the right within this same period to demand either the return of part of the price paid for the work or compensation of expenses incurred in connection with the elimination of defects by the customer by his own forces or with the assistance of third persons.
Article 693. Consequences of Failure of Customer to Appear for Receipt of Result of Work
1. In the event of the failure of the customer to appear for the receipt of the result of the work fulfilled or other evasion of the customer from acceptance thereof, the independent work contractor shall have the right, having warned the customer in writing, upon the expiry of two month from the date of such warning to sell the result of the work for a reasonable price and to deposit the amount received, less all payments due to the independent work contractor, in accordance with the procedure provided for by Article 308 of this Code.
2. In cases specified in Clause 1 of this Article, the independent work contractor shall have the right, instead of selling the subject of independent work, to take advantage of the right to retain it (Article 340) or to recover from the customer the losses caused.
Article 694. Consequences of Death of One of the Parties in the Contract of Domestic Independent Work
In case of termination of the contract of domestic independent work on the grounds provided by Article 388 of this Code, the consequences of termination of the contract are determined by the agreement between the legal successor of the respective party and its counteragent, or, in case of failure to reach the agreement, by the court, taking into consideration the scale of the work fulfilled and the value thereof, the cost of material used or remained, and other significant circumstances.
Article 695. Rights of Customer in Event of Improper Fulfillment or Failure to Fulfill Work Under Contract of Domestic Independent Work
In the event of the improper fulfillment or the failure to fulfill work under a contract of domestic independent work, the customer may take advantage of the rights granted to the purchaser in accordance with Articles 473-475 of this Code.
§ 3. Construction Independent Work
Article 696. Contract of Construction Independent Work
1. Under a contract of construction independent work the independent work contractor shall undertake, within the period established by the contract, to build a determined object according to the order of the customer or to fulfill other construction work, and the customer shall undertake to create necessary conditions for the independent work contractor in order to fulfill the work, accept the result thereof, and to pay the stipulated price.
2. The contract of construction independent work shall be concluded for the construction or reconstruction of a building, installation, or other object, and also for the fulfillment of construction, and other special mounting works. The rules concerning the contract of construction independent work shall also apply to work relating to the capital repair of buildings, installations and other objects, unless otherwise provided by the contract. In the instances provided for by the contract, the independent work contract shall assume the duty to ensure the operation of the object after its acceptance by the customer during the period specified in the contract.
3. In instances when, under the contract of construction independent work, the work is fulfilled in order to satisfy personal, domestic or family requirements of a citizen (customer), the rules of paragraph 2 of this Chapter concerning the rights of the customer under the contract of domestic independent work shall apply respectively to such contract.
Article 697. Distribution of Risk Between Parties
1. The risk of accidental perishing or accidental damaging of the object of construction comprising the subject of a contract of construction independent work before the acceptance of this object by the customer shall be borne by the independent work contractor.
2. If the object of construction before acceptance by the customer has perished or been damaged as a consequence of the poor quality of the material (parts, or assemblies) or equipment granted by the customer, or as a consequence of the performance of erroneous instructions of the customer, the independent work contractor shall have the right to demand the payment of the entire cost of the work provided for by the estimate on condition that the duties provided for by Article 670(1) of this Code were fulfilled by him.
Article 698. Design and Estimate Documentation
1. The independent work contractor shall be obliged to effectuate construction and works connected therewith in accordance with the design documentation determining the amount and content of the work and other requirements to this work, and with the estimate determining the price of the work. In the absence of other indications in the contract of construction independent work it shall be presupposed that the independent work contractor is obliged to fulfill all the work specified in the design documentation and in the estimate (design and estimate documentation).
2. The composition and content of the design and estimate documentation must be determined by the contract of construction independent work; also, it must be provided which of the parties and within what period must grant the respective documentation.
3. An independent work contractor, in case of revealing, in the course of construction work, of works not specified in the design and estimate documentation and, in connection therewith, the need to carry out additional work and increase the estimate cost of the construction, shall be obliged to inform the customer thereof. In case of non-receiving of a reply from the customer to his communication within ten days, unless another period has been provided by the legislation or by the contract of construction independent work, the independent work contractor shall be obliged to suspend the respective work with relegation of the losses, caused by the idling, to the account of the customer. The customer shall be relieved from compensation of such losses if he will prove the absence of the necessity to carry out the additional work.
4. An independent work contractor who has not fulfilled the duties established by Clause 3 of this Article shall be deprived of the right to demand payment from the customer for the additional work fulfilled by him and compensation of losses caused thereby unless he will prove that the immediate actions were necessary in the interests of the customer, in particular in connection with the fact that the suspension of work could lead to the perishing or damaging of the object of construction.
5. In the event of the consent of the customer on carrying out and of the additional work and on payment thereof, the independent work contractor shall have the right to refuse the fulfillment thereof only in instances when such work is not within the sphere of the professional activity of the independent work contractor or may not be fulfilled by the independent work contractor for reasons beyond his control.
Article 699. Making Changes in Design and Estimate Documentation
1. The customer shall have the right to make changes in the design and estimate documentation, not connected with the additional expenses for the customer.
2. Making of changes in the design and estimate documentation, requiring additional expenses for the customer, shall be effectuated at the expense of the customer on the basis of an additional estimate agreed by the parties.
3. The independent work contractor shall have the right to demand, in accordance with Article 420 of this Code, a revision of the estimate, if for reasons beyond his control the cost of the work exceeded the estimate by not less than 10%.
4. The independent work contractor shall have the right to demand compensation of reasonable expenses which were incurred by him in connection with the revealing and elimination of defects in the design and estimate documentation.
Article 700. Provision of Construction with Materials and Equipment
1. The duty relating to provision of the construction with materials, including parts and assemblies or equipment, shall be borne by the independent work contractor unless it is provided by the contract of construction independent work that the provision of construction as a whole or in determined part shall be effectuated by the customer.
2. The party, within those duty is the provision of the construction, shall bear liability for the revealed impossibility of using the materials or the equipment granted by it without worsening the quality of the work to be fulfilled, unless this party will prove that the impossibility of the use arose through circumstances for which the other party is liable.
3. In the event of the revealed impossibility of the use of the materials or equipment granted by the customer without worsening the quality of the work to be fulfilled and of the refusal of the customer to replace them, the independent work contractor shall have the right to repudiate the contract of construction independent work and to demand from the customer the payment of the price of the contract in proportion to the work fulfilled, and compensation of the losses not covered by this amount.
Article 701. Payment for Work
1. Payment for the work fulfilled by the independent work contractor shall be made by the customer in the amount provided for by the estimate, within the periods, and in accordance with the procedure which has been established by the legislation or by the contract of construction independent work. In the absence of respective instructions in a legislation or in the contract the payment for work shall be made in accordance with Article 665 of this Code.
2. Payment for work as lumpsum and in full after acceptance of the object by the customer may be provided for by the contract of construction independent work.
Article 702. Additional Duties of Customer Under Contract of Construction Independent Work
l. The customer shall be obliged in a timely way to grant a land plot for construction. The size and condition of the land plot granted must correspond to the conditions contained in the contract of construction independent work, and in the absence of such conditions, ensure the timely commencement of the work, normal carrying out thereof, and completion within the specified period.
2. The customer shall be obliged in the instances and in accordance with the procedure provided for by the contract of construction independent work to transfer for use to the independent work contractor buildings and installations necessary in order to effectuate the work, ensure transportation of goods to the address of the independent work contractor, the temporary laying of the network for electric power, water and gas supply, and to render other services.
3. Payment for services granted by the customer, specified in Clause 2 of this Article, shall be effectuated in the instances and on the conditions provided for by the contract of construction independent work.
Article 703. Control and Supervision of Customer Over Fulfillment of Work under Contract of Construction Independent Work
1. The customer shall have the right to effectuate control and supervision over the course and quality of work being fulfilled, compliance with the periods thereof for the fulfillment (schedule), the quality of materials granted by the independent work contractor, and also the correctness of the use of the materials of the customer by the independent work contractor without interfering in so doing in the operational economic activity of the independent work contractor.
2. The customer who has revealed, when carrying out control and supervision over the fulfillment of work, deviations from the conditions of the contract of construction independent work which may worsen the quality of work or other defects thereof, shall be obliged immediately to inform the independent work contractor. The customer who has not made such declaration shall lose the right thereafter to refer to the defects revealed by him.
3. The independent work contractor shall be obliged to perform instructions of the customer received in the course of the construction if such instructions are not contrary to the conditions of the contract of construction independent work and are not being the interference in the operational economic activity of the independent work contractor.
4. The independent work contractor who has improperly fulfilled work shall not have the right to refer to the fact that the customer did not effectuate control and supervision over the fulfillment thereof, except for instances when the duty to effectuate such control and supervision is placed on the customer by the legislation.
Article 704. Participation of Engineer (Engineering Organization) in Exercise of Rights and Fulfillment of Duties of Customer
The customer for the purpose of carrying out control and supervision over construction and making decisions in his name in mutual relations with the independent work contractor may conclude autonomously, without the consent of the independent work contractor, a contract concerning the rendering of services of such type to the customer with a respective engineer (engineering organization). In this event the functions of such engineer (engineering organization) connected with the consequences of his actions for the independent work contractor shall be determined in the contract of construction independent work.
Article 705. Cooperation of Parties in Contract of Construction Independent Work
l. If, when fulfilling construction and work connected therewith, obstacles are revealed for the proper performance of the contract of construction independent work, each of the parties shall be obliged to take all reasonable measures within its control to eliminate such obstacles. The party who does not perform this duty shall lose the right to compensation of losses caused by the fact that the respective obstacles were not eliminated.
2. The expenses of the party connected with the performance of the duties specified in Clause 1 of this Article shall be subject to compensation by the other party in the instances when this is provided for by the contract of construction independent work.
Article 706. Duties of Independent Work Contractor Relating to Protection of Environment and Ensuring Safety of Construction Work
1. The independent work contractor, when carrying out construction and work connected therewith, shall be obliged to comply with the requirements of the legislation concerning protection of the environment and the safety of construction work. The independent work contractor shall bear liability for a violation of these requirements.
2. The independent work contractor shall not have the right to use materials and equipment, provided by the customer, in the course of carrying out work, or to fulfill the customer’s instructions, if this may lead to a violation of requirements for the protection of the environment and safety of construction work which are obligatory for the parties.
Article 707. Consequences of Shutting Down of Construction
If for reasons beyond the control of the parties the work under the contract of construction independent work is suspended and the object of construction shut down, the customer shall be obliged to pay the independent work contractor in full for the fulfillment of work up to the time of the shutting down, and also to compensate expenses caused by the necessity to terminate work and shut down the construction, setting off advantages which the independent work contractor received or could receive as a consequence of the termination of the work.
Article 708. Handing Over and Acceptance of Work
l. The customer who has received the notification of an independent work contractor concerning the readiness of the result of the work or, if this is provided for by the contract, of stage of work, fulfilled under the contract of construction independent work for handing over, shall be obliged to embark upon the acceptance thereof within three days.
2. The customer shall organize and effectuate the acceptance of the result of work at his own expense unless otherwise provided by the contract of construction independent work.
In the instances provided for by the legislation the representatives of state bodies and bodies of local administration or self-government must participate in the acceptance of the result of the work.
3. The customer, having accepted the result of separate stage of work in advance, shall bear the risk of the consequences of the perishing or damaging of the result of the work, which occurred not through the fault of the independent work contractor.
4. The handing over of the result of the work by the independent work contractor and its acceptance by the customer shall be formalized by an act signed by both parties. In the event of the refusal of one of the parties to sign the act, a note shall be made thereon concerning this, including the reasons for such refusal, and the act shall be signed by the other party.
A unilateral act of handing over and acceptance of the result of work may be deemed by a court to be invalid only if the reasons for the refusal to sign the act are deemed by it to be substantiated.
5. In instances when this has been provided for by the legislation or contract of construction independent work or arises from the character of the work to be fulfilled under the contract, preliminary tests must precede acceptance of the result of the work. In these instances acceptance may be effectuated only in the event of a positive result of the preliminary tests.
6. The customer shall have the right to refuse acceptance of the result of the work in the event of revealing of defects which exclude the possibility of using it for the purpose specified in the contract of construction independent work and can not be eliminated by the independent work contractor or by the customer.
Article 709. Liability of Independent Work Contractor for Quality of Work
l. The independent work contractor shall bear liability to the customer for committed deviations from the requirements provided for in the design and estimate documentation and construction norms and rules obligatory for the parties, and also for the failure to achieve the specifications of the object of construction specified in the design and estimate documentation, including those such as the productive capacity of the enterprise.
2. The independent work contractor shall not bear liability for insignificant deviations committed by him without the consent of the customer from the design and estimate documentation, if the contractor will prove that they did not affect the quality of the object of construction.
Article 710. Guarantees of Quality in Contract of Construction Independent Work
l. The independent work contractor, unless otherwise provided by the contract of construction independent work, shall guarantee the achievement of the specifications of the object of construction, specified in the design and estimate documentation, and the possibility of operation of the object in accordance with the contract of construction independent work throughout the guarantee period. The guarantee period established by the legislation may be increased by agreement of the parties.
2. The independent work contractor shall bear liability for defects revealed within the limits of the guarantee period unless the contractor will prove that these defects occurred as a consequence of normal wear and tear of the object or parts thereof, the incorrect operation thereof or the incorrectness of the instructions for its operation developed by the customer himself or by third persons involved by the customer, or improper repair of the object made by the customer himself or by the third persons involved by the customer.
3. The running of the guarantee period shall be interrupted for the entire time during the extent of which the object could not be operated as a consequence of the defects for which the independent work contractor is liable.
4. In the event of revealing the defects, specified in Article 709(1) of this Code, during the guarantee period, the customer (owner, possessor, user) of the object must, before the expiry of the specified guarantee period, in accordance with the procedure established by the legislation, to demand from the independent work contractor to eliminate the defects.
Article 711. Periods of Revealing of Improper Quality of Construction Work
In the event of the submission of demands connected with the improper quality of the result of work, the rules provided for by Article 677(1-5) of this Code shall be applied.
In so doing, the maximum period for the revealing of defects in accordance with Article 677(2) and (4) of this Code shall comprise five years.
Article 712. Elimination of Defects at Expense of Customer
1. The duty of the independent work contractor to eliminate defects, for which the independent work contractor does not bear liability, at the demand of the customer and at his expense, may be provided for by the contract of construction independent work.
2. The independent work contractor shall have the right to refuse fulfillment of the duty specified in Clause 1 of this Article in instances when the elimination of the defects is not connected directly with the subject of the contract or cannot be effectuated by the independent work contractor for reasons beyond his control.
§ 4. Independent Work Contract for Fulfillment of Design and Survey Work
Article 713. Contract of Independent Work for Fulfillment of Design and Survey Work
1. Under a contract of independent work for the fulfillment of design and survey work the independent work contractor (designer, surveyor) shall undertake to work out design and estimate documentation according to the order of the customer and(or) to fulfill the survey work, and the customer shall undertake to accept and to pay for the result thereof.
2. Unless otherwise provided by the legislation or a contract, the risk of accidental impossibility to fulfill the contract for the design and survey work shall be borne by the customer.
Article 714. Basic Data for Fulfillment of Design and Survey Work
1. Under a contract of independent work for the fulfillment of design and survey work the customer shall be obliged to transfer to the independent work contractor the specification for the design, and also other basic data necessary for developing of the design and estimate documentation. The specification for the fulfillment of design work may be developed, subject to the order of the customer, by the independent work contractor. In this event the specification shall become obligatory for the parties from the time of its confirmation by the customer.
2. The independent work contractor shall be obliged to comply with the requirements contained in the specification and other basic data for the fulfillment of the design and survey work and shall have the right to deviate from the specification only with the consent of the customer.
Article 715. Duties of Independent work Contractor
1. Under a contract of independent work for the fulfillment of design and survey work the independent work contractor shall be obliged to:
1) fulfill work in accordance with the specification and other basic data for the design and with the contract;
2) coordinate the finished design and estimate documentation with the customer, and, when necessary, together with the customer, with competent state bodies and bodies of local administration or self-government;
3) transfer the finished design and estimate documentation and the results of the survey work to the customer.
An independent work contractor shall not have the right to transfer design and estimate documentation to third persons without the consent of the customer.
2. The independent work contractor under a contract of independent work for the fulfillment of design and survey work shall guarantee to the customer the absence of the third person’s right to obstruct the fulfillment of the work or limit the fulfillment thereof on the basis of the design and estimate documentation prepared by the independent work contractor.
Article 716. Liability of Independent Work Contractor for Improper Fulfillment of Design and Survey Work
l. The independent work contractor under a contract of independent work for the fulfillment of design and survey work shall bear liability for the improper developing of design and estimate documentation and for the improper fulfillment of survey work, including defects revealed subsequently in the course of construction, and also in the process of the operation of the object created on the basis of design and estimate documentation and the data of survey work.
2. In the event of revealing of defects in the design and estimate documentation or in the survey work the independent work contractor shall be obliged, at the demand of the customer, to re-develop the design and estimate documentation without compensation and respectively perform necessary additional survey work, and also to compensate the customer for losses caused, unless otherwise established by the legislation or by the contract of independent work for the fulfillment of design and survey work.
Article 717. Duties of Customer
Under an independent work contract for the fulfillment of design and survey work the customer shall be obliged, unless otherwise provided by the contract, to:
1) pay for the independent work contractor the established price in full after the completion of all work or to pay for it in parts after the completion of individual stages of work;
2) use design and estimate documentation received from the independent work contractor only for the purposes provided for by the contract, not transfer the design and estimate documentation to third persons, and not divulge the data contained therein without the consent of the independent work contractor;
3) render assistance to the independent work contractor in the fulfillment of design and survey work to the extent and on the conditions provided for in the contract;
4) participate together with the independent work contractor in agreeing the finished design and estimate documentation with the respective state bodies and bodies of local administration or self-government;
5) compensate the independent work contractor for additional expenses caused by a change of basic data for the fulfillment of design and survey work as a consequence of the circumstances beyond the control of the independent work contractor;
6) involve the independent work contractor to participate in the case with regard to a suit brought against the customer by a third person in connection with shortcomings in the design and estimate documentation developed or survey work fulfilled.
§ 5. Independent work Contract Work for State Needs
Article 718. State Contract for Fulfillment of Independent Work Contract Work for State Needs
1. Independent work construction (Article 696), and design and survey work (Article 713) intended for the satisfaction of requirements of the Republic of Belarus or administrative territorial units and financed at the expense of the assets of the respective budgets and extrabudgetary sources shall be effectuated on the basis of a state contract for the fulfillment of independent work contract.
2. Under a state contract for the fulfillment of independent work contract for state needs (hereinafter referred to as state contract), the independent work contractor shall undertake to fulfill construction, design, and other work and transfer this work to the state customer, and the state customer shall undertake to accept the work fulfilled and to pay for it or ensure its payment.
Article 719. Parties to State Contract
Under a state contract, the state body, body of local administration or self-government, possessing the necessary investment resources or organization endowed by the respective state body with the right to dispose of such resources shall act as the customer, and a legal person or citizen shall be the independent work contractor.
Article 720. Grounds and Procedure for Conclusion of State Contract
The grounds and procedure for the conclusion of a state contract shall be determined in accordance with the provisions of Articles 497 and 498 of this Code.
Article 721. Content of State Contract
1. A state contract must contain conditions concerning the amount and cost of work subject to fulfillment, the periods for the commencement and end thereof, the amount and procedure of financing and payment for work, and the means of securing performance of the obligations of the parties.
2. In an instance when a state contract is concluded according to the results of a competition for the placement of the order for independent work contract for state needs, the conditions of the state contract shall be determined in accordance with the declared conditions of the competition and the proposal, submitted to the competition, of the independent work contractor, deemed to be the winner of the competition.
Article 722. Change of State Contract
1. In the event of a reduction, by the respective state bodies in the established procedure, of assets of the respective budget, allocated to finance independent work contract, the parties must negotiate the new periods, and, if necessary, other conditions for the fulfillment of the work. The independent work contractor shall have the right to demand compensation of losses from the state customer caused by a change of the periods for the fulfillment of work.
2. Unless otherwise provided by the legislation, the changes of a state contract, not connected with the circumstances specified in Clause 1 of this Article, shall be effectuated by agreement of the parties.
CHAPTER 38
Fulfillment of Scientific research, Experimental Design
and Technological Work
Article 723. Contracts for Fulfillment of Scientific Research Work and Experimental Design and Technological Work
1. Under a contract for the fulfillment of scientific research work, one party (the executor) shall undertake to carry out the scientific researches stipulated by the specification of the customer, or, under a contract for the fulfillment of experimental design and technological work, to develop the sample of a new product, design documentation for it, or new technology, and the customer shall undertake to accept the work and to pay for it.
2. A contract with the executor may cover both the entire cycle of carrying out the research, development, and manufacture of the specimen, or individual stages (elements) thereof.
3. Unless otherwise provided by the legislation or contract, the risk of accidental impossibility of performance of contracts for the fulfillment of scientific research work, experimental design and technological work shall be borne by the customer.
4. The conditions of contracts for the fulfillment of scientific research work, experimental design and technological work must correspond to the legislation concerning exclusive rights (intellectual property).
Article 724. Fulfillment of Work
1. The executor shall be obliged to conduct scientific research personally. He shall have the right to involve third persons to perform the contract for the fulfillment of scientific research work only with the consent of the customer.
2. In the event of the fulfillment of experimental design or technological work the executor shall have the right, unless otherwise provided by the contract, to involve third persons in the performance thereof. The rules concerning the general independent work contractor and independent work subcontractor (Article 660) shall apply to relations of the executor with third persons.
Article 725. Confidentiality of Information Comprising Subject of Contract
1. Unless otherwise provided by contracts for the fulfillment of scientific research work, experimental design and technological work, the parties shall be obliged to ensure the confidentiality of information concerning the subject of the contract, the course of its performance, and the results obtained. The amount of information deemed to be confidential shall be determined in the contract.
2. Each of the parties shall undertake to publish the information obtained when fulfilling the work, deemed to be confidential, only with the consent of the other party.
Article 726. Rights of Parties to Results of Work
1. The parties to contracts for the fulfillment of scientific research work, experimental design and technological work shall have the right to use the results of the work, including those capable of legal protection, within the limits and on the conditions provided for by the contract.
2. Unless otherwise provided by the contract, the customer shall have the right to use the results of work transferred to him by the executor, including those capable of legal protection, and the executor shall have the right to use the results of the work obtained by him for own needs.
Article 727. Duties of Executor
The executor in contracts for the fulfillment of scientific research work, experimental design and technological work shall be obliged to:
1) fulfill work in accordance with the specification agreed with the customer and transfer to the customer the results thereof within the period provided for by the contract;
2) agree with the customer the necessity of using the protected results of intellectual activity which belong to third persons and the acquisition of the rights for the use thereof;
3) eliminate with his own forces and at own expense the defects committed through his own fault in the work fulfilled, which might entail deviations from the technical and economic parameters provided for in the specification or in the contract;
4) immediately inform the customer about the impossibility revealed of receiving the anticipated results or the unreasonableness of continuing the work;
5) guarantee to the customer the transfer of results received under the contract which do not violate the exclusive rights of other persons.
Article 728. Duties of Customer
1. The customer in contracts for the fulfillment of scientific research work, experimental design and technological work shall be obliged to:
1) transfer information to the executor necessary for the fulfillment of work;
2) accept the results of the work fulfilled and pay for these results.
2. The duty of the customer to issue a specification to the executor and to agree a program (technical and economic parameters) or subjects of the work with the executor also may be provided for by the contract.
Article 729. Consequences of Impossibility of Achieving Results of Scientific Research Work
If in the course of scientific research work the impossibility is revealed of achieving the results as a consequence of circumstances beyond the control of the executor, the customer shall be obliged to pay for the cost of the work carried out until the impossibility of receiving the results, provided for by the contract for the fulfillment of the scientific research work, was revealed, but not higher than the respective part of the price of the work, specified in the contract.
Article 730. Consequences of Impossibility to Continue Experimental Design and Technological Work
If in the course of the fulfillment of experimental design and technological work the impossibility or unreasonableness of continuing the work is revealed which arose not through the fault of the executor, the customer shall be obliged to pay for the expenditures incurred by the executor.
Article 731. Liability of Executor for Violation of Contract
1. The executor shall bear liability to the customer for a violation of contracts for the fulfillment of scientific- research work, experimental design, and technological work unless it is proved that such violation occurred not through the fault of the executor (Article 372(1)).
2. The executor shall be obliged to compensate losses, caused by him to the customer, within the limits of the cost of the work in which the defects were revealed, if it is provided by the contract that they are subject to compensation within the limits of the total cost of the work under the contract. Lost advantage shall be subject to compensation in the instances provided for by the contract.
Article 732. Legal Regulation of Contracts for Fulfillment of Scientific Research Work, Experimental Design and Technological Work
1. The rules of Articles 662, 663 and 693 of this Code shall apply to the periods for the fulfillment of and to the price of work, and also to the consequences of' the failure of the customer to appear in order to receive the results of the work.
2. The rules of Articles 718-722 of this Code shall apply to the state contracts for the fulfillment of scientific research work, experimental design and technological work for the state needs.
CHAPTER 39
Compensated Rendering of Services
Article 733. Contract of Compensated Rendering of Services
Under a contract of compensated rendering of services one party (the executor) shall undertake, under the order of the other party (the customer), to render services (perform determined actions or effectuate a determined activity), and the customer shall undertake to pay for these services.
The rules of this Chapter shall apply to contracts for the rendering of services of communications, medical, veterinary, auditor, consulting, informational and realtor services, services relating to teaching, tourist servicing, and others, except for services rendered under contracts provided for by Chapters 37, 38, 40, 41, 44-47, 49, 51 of this Code.
Article 734. Performance of Contract of Compensated Rendering of Services
Unless otherwise provided by the contract of compensated rendering of services, the executor shall be obliged to render the services personally.
Article 735. Payment for Services
1. The customer shall he obliged to pay for services rendered to him within the periods and in accordance with the procedure which has been specified in the contract of compensated rendering of services.
2. In the event of the impossibility of performance which arose through the fault of the customer, the services shall be subject to payment in full unless otherwise provided by the legislation or by the contract of compensated rendering of services.
3. In an instance when impossibility of performance arose through circumstances for which neither of the parties is liable, the customer shall compensate the executor for the expenses actually incurred by him unless otherwise provided by the legislation or by the contract of compensated rendering of services.
Article 736. Unilateral Refusal to Perform Contract of Compensated Rendering of Services
1. The customer shall have the right to refuse performance of a contract of compensated rendering of services on condition of payment to the executor of expenses actually incurred by him.
2. The executor shall have the right to refuse performance of obligations under a contract of compensated rendering of services only on condition of the full compensation of losses to the customer.
Article 737. Legal Regulation of Contract of Compensated Rendering of Services
The general provisions on independent work contract (Articles 656-682) and the provisions on domestic independent work contract (Articles 683-695) shall apply to the contract of compensated rendering of services unless this is contrary to Articles 733-736 of this Code, and also to the peculiarities of the subject of the contract of compensated rendering of services.
CHAPTER 40
Carriage
Article 738. General Provisions on Carriage
The carriage of goods, passengers, and luggage shall be effectuated on the basis of the contract of carriage.
The general conditions of carriage shall be determined by this Code, the transport charters and codes, other acts of legislation, and rules issued in accordance therewith by the Republic's bodies of the state administration.
The conditions for the carriage of goods, passengers, and luggage by individual types of transport, and also liability of the parties for these carriages, shall be determined by agreement of the parties unless otherwise established by this Code, transport charters and codes, other acts of legislation, and rules issued in accordance therewith by the Republic's bodies of the state administration.
Article 739. Contract of Carriage of Goods
1. Under a contract for the carriage of goods the carrier shall undertake to deliver the goods entrusted to him by the consignor to the point of destination and to hand these goods over to the person (consignee) authorized to receive the goods, and the consignor shall be obliged to pay the established payment for the carriage of the goods.
2. The conclusion of the contract of carriage of goods shall be confirmed by drawing up a transport waybill (bill of lading or other document for goods, provided for by the respective transport charter or code).
Article 740. Contract of Carriage of Passenger
1. Under the contract of carriage of a passenger, the carrier shall undertake to carry the passenger to the point of destination, and in the event of the passenger handing over the luggage, also to deliver the luggage to the point of destination and to hand it over to the person authorized to receive the luggage; the passenger shall undertake to pay the established payment for the travel, and in the event of handing over luggage, also for the carriage of the luggage.
2. The conclusion of a contract of carriage of a passenger shall be certified by a ticket; the handing over of luggage by the passenger shall be certified by a luggage receipt.
The forms of ticket and luggage receipt shall be established in accordance with the procedure provided for by transport charters and codes.
3. The passenger shall have the right in accordance with the procedure provided for by the respective transport charter or codes to:
1) carry children with him free of charge or on other privileged conditions;
2) carry his hand luggage free of charge with within the limits of established norms;
3) hand over luggage for carriage for payment according to the tariff.
Article 741. Contract of Affreightment
Under a contract of affreightment one party (freighter) shall undertake to grant to the other party (affreighter) for payment all or part of the capacity of one or several means of transport for one or several voyages for the carriage of goods, passengers, and luggage.
The procedure for the conclusion of the contract of charter, and also the form of the said contract, shall be established by transport charters and codes.
Article 742. Mixed Carriage
1. Mixed carriage means carriage of goods, passengers, and luggage by at least two types of transport.
2. Mixed carriage of goods shall be effectuated or provided by the forwarding agent under the forwarding contract in accordance with the procedure provided for by Chapter 41 of this Code.
3. Mixed carriage of goods, passengers, and luggage under a single transport document is a direct mixed transport. The mutual relations of carriers in various types of transport, and the procedure of the organization of direct mixed carriages, shall be determined by transport charters and codes and by other acts of legislation.
Article 743. Carriage by Transport of Common Use
1. Carriage being effectuated by a carrier shall be deemed to be carriage by transport of common use if from the legislation, or the special permit (license) issued to this carrier it arises that this organization is obliged to effectuate the carriage of goods, passengers, and luggage upon the recourse of any citizen or legal person.
2. A list of organizations obliged to effectuate carriage deemed to be carriages by transport of common use shall be published in the established procedure.
3. The contract of carriage by transport of common use shall be a public contract (Article 396).
Article 744. Fare
1. The fare established by agreement of the parties, unless otherwise provided by the legislation, shall be recovered for the carriage of goods, passengers, and luggage.
2. Payment for the carriage of goods, passengers, and luggage by transport of common use shall be determined on the basis of tariffs confirmed in accordance with the procedure established by transport charters and codes and by other legislation.
3. Work and services being fulfilled by the carrier at the demand of the goods possessor and not provided for by the tariffs shall be paid by agreement of the parties.
4. The carrier shall have the right to retain goods and luggage, handed over to him for carriage, to secure the fare due to him and other payments relating to carriage (Article 340) unless otherwise established by the legislation or does not arise from the essence of the obligation.
5. In instances when in accordance with the legislations privileges or preferences have been established with regard to the fare for the carriage of goods, passengers, and luggage, the expenses incurred in connection therewith shall be compensated to the transport organization at the expense of the respective budget.
Article 745. Supply of Means of Transport, Loading, and Unloading of Goods
1. The carrier shall be obliged to supply to the consignor of goods for loading, within the period established by the contract of carriage, means of transport in good condition, fit for carriage of the respective goods.
The consignor of goods shall have the right to refuse the means of transport supplied which are not fit for the carriage of the respective goods. '
2. The loading (unloading) of the goods shall be effectuated by the transport organization or consignor (consignee) in accordance with the procedure provided for by the contract in compliance with the provisions established by the legislation and by the rules issued in accordance therewith by the Republic's bodies of the state administration.
3. The loading (unloading) of goods effectuated by the forces and means of the consignor (consignee) of the goods must be effectuated within the periods provided for by the contract, unless such periods have been established by the legislation and by the rules issued in accordance therewith by the Republic's bodies of the state administration.
Article 746. Periods of Delivery of Goods, Passenger, and Luggage
The carrier shall be obliged to deliver goods, passenger, or luggage to the Clause of destination within the periods determined in accordance with the procedure provided for by the transport charters and codes, and in the absence of such periods, within a reasonable period.
Article 747. Liability for Violation of Obligations Relating to Carriage
1. In the event of the failure to perform or the improper performance of obligations relating to carriage, the parties shall bear liability established by this Code and other acts of legislation, and also by agreement of the parties.
2. The agreements of carriers with passengers and goods possessors concerning the limitation or elimination of the liability, established by the legislation, shall be invalid, except for instances when the possibility of such agreements in carriages of goods has been provided for by the legislation.
Article 748. Liability of Carrier for Failure to Provide Means of Transport. Liability of Consignor for Failure to Use Means of Transport Provided
1. The carrier shall bear the liability established by the legislation and by the agreement of the parties, for the failure to supply means of transport for the carriage of goods in accordance with the contract, and the consignor shall bear such liability for the failure to submit the goods or failure to use the means of transport supplied for other reasons.
2. The carrier and the consignor of goods shall be relieved of liability in the event of the failure to supply means of transport or the failure to use the means of transport supplied if this occurred as a consequence of:
1) force majeure, and other phenomena of a natural character (fires, avalanches, floods) and military actions;
2) termination or limitation of the carriage of goods in determined directions established in accordance with the procedure provided for by the legislation;
3) in other instances provided for by transport charters and codes.
Article 749. Liability of Carrier for Delay of Departure of Passenger
1. For a delay of the departure of the means of transport carrying a passenger, or for the late arrival of such means of transport at the point of destination (except for carriages on city and suburban transport) the carrier shall pay to the passenger a fine in the amount established by the legislation, unless the carrier would prove that the delay or lateness occurred as a consequence of force majeure, elimination of the disrepair of the means of transport threatening the life and health of passengers, or other circumstances beyond the control of the carrier.
2. In the event of the refusal of the passenger of carriage by reason of delay of the departure of the means of transport, the carrier shall be obliged to return the fare to the passenger.
Article 750. Liability of Carrier for Loss, Shortage, and Damage (Spoilage) of Goods or Luggage
l. The carrier shall bear liability for the failure to preserve goods or luggage which occurred after the acceptance thereof for carriage and before handing over to the consignee or person authorized to receive the luggage, unless the carrier would prove that the loss, shortage, or damage (spoilage) of the goods or luggage occurred as a consequence of circumstances which the carrier could not prevent and the elimination of which was beyond its control.
2. Damage caused during the carriage of goods or luggage shall be compensated by the carrier:
1) in the event of the loss or shortage of goods or luggage—in the amount of the value of the lost or short goods or luggage;
2) in the event of damage (spoilage) of the goods or luggage—in the amount by which its value was reduced, and if it is impossible to restore the damaged good or luggage—in the amount of its value;
3) in the event of the loss of the goods or luggage handed over to the carrier with a declaration of the value thereof—in the amount of the declared value of the goods or luggage.
The value of the goods or luggage shall be determined on the ground of the price thereof specified in the bill of the seller or provided for by the contract, or, in the absence of the bill or specification of the price in the contract, on the ground of the price which under comparable circumstances usually applied for similar goods.
3. The carrier shall, together with compensation of the established damage caused by the loss, shortage, or damage (spoilage) of the goods or luggage, return to the consignor (consignee) the fare recovered for carriage of the lost, shortly delivered, spoiled, or damaged goods or luggage unless this payment is part of the value of the goods.
4. The documents concerning the reasons for the failure to preserve the goods or luggage (commercial act, act of general form, and so forth) drawn up by the carrier unilaterally, in the event of a dispute, shall be subject to valuation by the court together with other documents certifying the circumstances which might serve as grounds for the liability of the carrier, consignor, or consignee of the goods or luggage.
Article 751. Claims and Suits With Regard to Carriages of Goods
1. Before bringing suit against a carrier arising from the carriage of goods, the submission of a claim to the carrier in accordance with the procedure provided for by the legislation shall be obligatory.
2. A suit against the carrier may be brought by the consignor or consignee in the event of the full or partial refusal of the carrier to satisfy the claim or non-receiving a reply from the carrier within a thirty-day period.
3. The limitation period with regard to demands arising from the carriage of goods shall be established at one year from the time determined in accordance with the legislation.
Article 752. Contracts on Organization of Carriages
1. The carrier and goods possessor may, in the event of the necessity to effectuate the regular carriages of goods, conclude long-term contracts concerning the organization of carriages.
Under a contract of the organization of carriage of goods the carrier shall undertake, within the established periods, to accept, and the goods possessor shall undertake to submit goods for carriage in the stipulated amount. The amounts, periods, and other conditions for providing means of transport and presenting goods for carriage, the procedure for the settlement of accounts, and also other conditions for the organization of carriage, shall be determined in the contract concerning the organization of the carriage of goods.
2. The carrier may, in the event of the necessity to effectuate the regular carriages of passengers, conclude long-term contracts with citizens or legal persons, concerning the organization of carriages of passengers.
A contract of the organization of carriage of passengers shall be concluded in writing.
The route, schedule of trips, number of trips, periods, and other conditions for providing means of transport for carriage, the procedure for the settlement of accounts, and also other conditions for the organization of carriage, shall be determined in the contract concerning the organization of the carriage of passengers.
Article 753. Contracts Between Carriers
Contracts concerning the organization of work relating to organization of the carriage of goods (node agreements, contracts for centralized delivery (removal) of goods and others) may be concluded between organizations of various types of transport.
The procedure for the conclusion of such contracts shall be determined by transport charters and codes, and by other acts of legislation.
Article 754. Liability of Carrier for Harm Caused to Life or Health of Passenger
The liability of a carrier for harm caused to the life or health of a passenger shall be determined according to the rules of Chapter 58 of this Code unless increased liability of the carrier has been provided for by the legislation or by the contract of carriage.
CHAPTER 41.
Forwarding
Article 755. Contract of Forwarding
1. Under a contract of forwarding one party (forwarder) shall undertake, for remuneration and at the expense of the other party (client - consignor or consignee), to fulfill or organize the fulfillment of the services, connected with the carriage of goods, determined by the contract of forwarding.
The duties of the forwarder to organize the carriage of goods by transport and according to the route selected by the forwarder or the client, the duty of the forwarder to conclude a contract(s) for the carriage of goods in the name of the client or in his own name, to ensure the sending and receipt of the goods, and also other duties connected with carriage may be provided for by the contract of forwarding.
The effectuation of such operations necessary for the delivery of goods as obtaining of documents required for export or import, the fulfillment of customs and other formalities, verification of the quantity and condition of goods, the loading and unloading thereof, the payment of duties, charges, and other expenses placed on the client, the storage of goods, the receipt thereof at the point of destination, and also the fulfillment of other operations and services provided for by the contract, may be provided for by the contract of forwarding as additional services.
2. The rules of this Chapter shall extend also to instances when in accordance with the contract the duties of forwarder are performed by the carrier.
3. The conditions of the fulfillment of the contract of forwarding shall be determined by agreement of the parties unless otherwise established by the legislation.
4. The contract of forwarding shall be concluded in written form.
5. The client must issue a power of attorney to the forwarder if it is necessary for the fulfillment of his duties.
Article 756. Liability of Forwarder Under Contract of Transport Forwarding
For the failure to perform or the improper performance of duties under the contract of forwarding the forwarder shall bear liability on the grounds and in the amount which is determined in accordance with the rules of Chapter 25 of this Code.
If the forwarder proves that a violation of the obligation has been caused by the improper performance of the contracts of carriage, the liability of the forwarder to the client shall be determined according to the same rules under which the respective carrier is liable to the forwarder.
Article 757. Documents and Other Information Granted to Forwarder
1. The client shall be obliged to grant to the forwarder documents and other information concerning the properties of the goods, conditions of carriage thereof, and also other information necessary for the performance of the duty by the forwarder provided for by the contract of forwarding.
2. The forwarder shall be obliged to notify the client on the revealed drawbacks of the information received, and in the event of the incompleteness of the information, to request necessary additional data from the client.
3. In the event of the failure of the client to grant the necessary information, the forwarder shall have the right not to embark upon performance of the respective duties until such information is granted.
4. The client shall bear liability for losses caused to the forwarder in connection with the violation of the duty relating to the granting of the information specified in Clause 1 of this Article.
Article 758. Performance of Duties of Forwarder by Third Person
Unless it follows from the contract of forwarding that the forwarder must perform his duties personally, the forwarder shall have the right to involve other persons in the performance of his duties.
The imposition of the performance of an obligation on a third person shall not relieve the forwarder from liability to the client for the performance of the contract.
Article 759. Unilateral Refusal of Performance of Contract of Forwarding
Any of the parties shall have the right to refuse to perform a contract of forwarding, having warned the other party thereof within a reasonable period.
In the event of the unilateral refusal to perform the contract, the party which has declared the refusal shall compensate the other party for losses caused by the dissolution of the contract.
CHAPTER 42
Loan and Credit
§ 1. Loan
Article 760. Contract of Loan
1. Under a contract of loan one party (lender) shall transfer to the ownership of the other party (borrower) money or other things defined by generic attributes, and the borrower shall be obliged to return to the lender the same amount of money (amount of loan) or equal quantity of other things received by him of the same kind and quality.
2. The contract of loan shall be considered to be concluded from the time of transfer of the money or other things.
3. Foreign currency and currency valuables may be the subject of a contract of loan on the territory of the Republic of Belarus in compliance with the rules of Articles 141, 142, and 298 of this Code.
Article 761. Form of Contract of Loan
1. A contract of loan between citizens must be concluded in written form if the amount thereof is not less than ten times the basic value established by the legislation, and in an instance when the lender is a legal person, irrespective of the amount.
2. In confirmation of a contract of loan and its conditions a receipt of the borrower or other document certifying the transfer to him by the lender of the determined monetary amount or determined quantity of things may be submitted.
Article 762. Interest Under Contract of Loan
1. Unless otherwise provided by the legislation or by the contract of loan, the lender shall have the right to obtain interest from the borrower on the amount of the loan in the amounts and in accordance with the procedure determined by the contract. In the absence of a condition in the contract, concerning the amount of interest, the amount thereof shall be determined as the refinance rate of the National bank of the Republic of Belarus on the date of payment by the borrower of the amount of the debt or corresponding part thereof.
2. In the absence of another agreement, interest shall be paid monthly until the date of return of the amount of the loan.
3. A contract of loan shall be presupposed to be without interest unless expressly provided otherwise therein in instances when:
1) the contract is concluded between citizens for an amount not exceeding fifty times the basic value established by the legislation and is not connected with the effectuation of entrepreneurial activity by either of the parties;
2) under the contract, not money, but other things defined by generic attributes are transferred to the borrower.
Article 763. Duty of Borrower to Return Amount of Loan
1. The borrower shall be obliged to return to the lender the amount of the loan received within the period and in accordance with the procedure provided for by the contract of loan.
In instances when the period of return is not established by the contract or is determined by the time of demand, the amount of the loan must be returned by the borrower within thirty days from the date of submission by the lender of the demand therefor, unless otherwise provided by the contract.
2. Unless otherwise provided by the contract of loan, the amount of an interest-free loan may be returned by the borrower before time.
The amount of the loan granted under interest may be returned before time with the consent of the lender or if this is provided for by the contract.
3. Unless otherwise provided by a contract of loan, the amount of the loan shall be considered to be returned at the time of the transfer thereof to the lender оr crediting of the respective monetary assets in his bank account.
Article 764. Consequences of Violation by Borrower of Contract of Loan
1. Unless otherwise provided by the legislation or by the contract of loan, in instances when the borrower does not return the amount of the loan within the period, interest shall be subject to payment on this amount in the amount provided for by Article 366(1) of this Code from the day when it should have been returned until the day of its return to the lender irrespective of the payment of interest provided for by Article 762(1) of this Code.
2. If return of the loan has been provided for by the contract of loan in parts (installment), then in the event of a violation of the period established for return of the regular part of the loan by the borrower, the lender shall have the right to demand the return, before time, of the entire amount remaining, together with the interest due.
Article 765. Contesting Contract of Loan
1. The borrower shall have the right to contest a contract of loan for its impecuniousness, proving that the money or other things really were not obtained by him from the lender or were obtained in a lesser quantity than specified in the contract.
2. If the contract of loan was concluded in written form (Article 761), the contesting thereof for impecuniousness by means of witness testimony shall not be permitted, except for instances when the contract was concluded under the influence of fraud, coercion, threat, or ill-intentioned agreement of a representative of the borrower with the lender, or the confluence of grave circumstances.
3. If in the process of the contesting of a contract of loan by the borrower for impecuniousness it is established that the money or other things were really not obtained from the lender, the contract of loan shall be considered to be not concluded.
When money or things were really obtained by the borrower from the lender in a lesser quantity than is specified in the contract, the contract shall be considered to be concluded for this quantity of money or things.
Article 766. Consequences of Loss of Securing of Obligations of Borrower
In the event of the failure of the borrower to fulfill the duties provided for by the contract of loan with regard to securing the return of the amount of the loan, and also in the event of the loss of securing or a worsening of its conditions under circumstances for which the lender is not liable, the lender shall have the right to demand from the borrower the repayment of the amount of the loan before time and the payment of interest due unless otherwise provided by the contract.
Article 767. Special-Purpose Loan
1. If a contract of loan was concluded with a condition of the use by the borrower of means received for specified purposes (special-purpose loan), the borrower shall be obliged to ensure the possibility of the effectuation by the lender of control over the use of the amount of the loan for the purpose specified.
2. In the event of the failure to fulfill the conditions of the contract of loan by the borrower concerning the use of the amount of the loan for the specified purpose, and also in the event of a violation of the duties provided for by Clause 1 of this Article, the lender shall have the right to demand from the borrower repayment of the amount of the loan before time and the payment of interest due unless otherwise provided by the contract.
Article 768. Loan Granted Against Bill of Exchange or Bond
The rules of this Chapter shall apply to the relations concerning the loan granted against the bill of exchange or the bond, insofar as this is not contrary to the legislation on issuance and turnover of bills of exchange or bonds.
Article 769. Contract of State Loan
The rules of this Chapter shall apply to the relations concerning the loan, in which the Republic of Belarus or its administrative territorial unit acts as the borrower, insofar as this is not contrary to the acts of legislation.
Article 770. Commercial Loan
The rules of this Chapter shall extend also to the instances of advance, prepayment, deferral, and installment payment for goods, works and services (commercial loan), unless otherwise provided by the legislation.
Article 771. Credit Contract
1. Under a credit contract a bank or non-bank credit and financial institution (creditor) shall undertake to grant monetary means (credit) to the other party (borrower) in the amount and on the conditions provided for by the contract, and the borrower shall undertake to return the monetary amount received and to pay interest on it.
2. The rules provided for by this Chapter shall apply to relations under the credit contract, taking into consideration the peculiarities established by the legislation.
CHAPTER 43
Financing Under Cession of Monetary Demand (Factoring)
Article 772. Contract of Financing Under Cession of Monetary Demand
1. Under a contract of financing under cession of a monetary demand (factoring), one party (factor) shall undertake for the other party (creditor) to enter into the monetary obligation between the creditor and the debtor on the part of debtor by payment to the creditor of the amount of the debtor’s monetary obligation with the discount (difference between the amount of the debtor’s monetary obligation and the amount payable to the creditor), with notification of the debtor about the transfer of the rights of the creditor to the factor (open factoring) or without notification about such transfer (hidden factoring).
2. The bank or non-bank credit and financial institution may act as the factor.
3. The contract of factoring may be concluded concerning both one monetary obligation or several monetary obligations, including those that can appear in the future, in particular, homogeneous monetary obligations of obtaining payment for the goods delivered.
4. The relations concerning factoring shall be regulated by the legislation.
CHAPTER 44
Bank Deposit
Article 773. Contract of Bank Deposit
Under a contract of bank deposit one party (recipient of a deposit), having accepted a monetary amount (deposit) from the other party (depositor), shall undertake to return the deposit to the depositor and to pay interest on it on the conditions and in accordance with the procedure provided for by the contract.
The relations concerning the bank deposit shall be regulated by the legislation.
CHAPTER 45
Bank Account
Article 774. Contract of Current Bank Account
Under a contract of bank account, one party (bank) shall undertake to open for the other party (account holder) the current account for keeping his monetary amounts, crediting monetary amounts arriving for benefit of the account holder, and to fulfill instructions of the account holder concerning the transfer and issuance of respective amounts from the account; the account holder shall grant to the bank the right to use temporarily free monetary amounts available in the account, with payment of interests, determined by the legislation or by the agreement; also, the account holder shall pay remuneration to the bank for services rendered thereby.
The relations concerning the current bank account shall be regulated by the legislation.
CHAPTER 46
Settlement of Accounts
Article 775. Settlement of Accounts
1. Settlements of accounts with the participation of citizens, not connected with the effectuation by them of entrepreneurial activity, may be performed in cash (Article 141) or as cashless settlements, established by the legislation.
2. Settlements of accounts between legal persons, and also settlement of accounts with the participation of citizens connected with the effectuation by them of entrepreneurial activity, shall be performed as cashless settlements. Settlements of accounts between these persons may be performed also in cash, in cases provided for by the legislation.
3. Cashless settlements of accounts shall be performed through banks in which respective accounts have been opened, unless it arises otherwise from the act of legislation or is stipulated by the form of settlement of accounts being used.
4. The relations concerning the settlement of accounts shall be regulated by the legislation.
CHAPTER 47
Storage
§ 1. General Provisions on Storage
Article 776. Contract of Storage
1. Under a contract of storage one party (depository) shall undertake to keep a thing transferred to it by the other party (depositor) and to return this thing intact.
2. In a contract of storage in which the depository is a commercial organization or noncommercial organization carrying out storage as one of the purposes of its professional activity (professional depository), the duty of the depository to accept a thing for storage from the depositor within the period provided for by the contract may be provided for.
Article 777. Form of Contract of Storage
1. A contract of storage must be concluded in written form in the instances specified in Article 162 of this Code. In so doing, compliance with the written form shall be required for a contract of storage between citizens (Article 162, part 1, Subclause 2) if the value of the thing being transferred for storage exceeds not less than ten times the basic value established by the legislation.
A contract of storage providing for the duty of the depository to accept a thing for storage must be concluded in written form irrespective of the composition of the participants of this contract and the value of the thing being transferred for storage.
The transfer of a thing for storage under extraordinary circumstances (fire, natural disaster, sudden illness, threat of attack, and so forth) may be proved by witness testimony.
2. The simple written form of a contract of storage shall be considered to be complied with if the acceptance of the thing for storage is certified by the depository by the issuance to the depositor of:
1) deposit receipt, ticket, certificate, or other document signed by the depository;
2) numbered token (number), or other mark certifying the acceptance of the thing for storage, if such form of confirmation of the acceptance of the thing for storage has been provided for by the legal act or is customary for the particular type of storage.
3. The failure to comply with the simple written form of the contract of storage shall not deprive the party of the right to refer to witness testimony in the event of a dispute concerning the identity of the thing accepted for storage with the thing returned by the depository.
Article 778. Performance of Duty to Accept Thing for Storage
1. A depository who has assumed under a contract of storage the duty to accept a thing for storage (Article 776(2)) shall not have the right to demand the transfer of this thing to him for storage.
However, the depositor, who has not transferred a thing for storage within the period provided for by the contract, shall bear liability to the depository for losses caused in connection with the abandoned storage unless otherwise provided by the legislation or the contract of storage. The depositor shall be relieved from this liability if he declares to the depository the refusal of his services within a reasonable period.
2. Unless otherwise provided by the contract, the depository shall be relieved from the duty to accept a thing for storage, if the thing is not transferred to him within the period stipulated by the contract.
Article 779. Period of Storage
1. The depository shall be obliged to keep a thing during the period stipulated by the contract of storage.
2. If the period of storage is not provided for by the contract and can not be determined from its conditions, the depository shall be obliged to keep the thing until the demand thereof by the depositor.
3. If the period of storage is determined by the time of demand of the thing by the depositor, the depository shall have the right, upon the expiry of the period of storage of the thing usual under the particular circumstances, to demand that the depositor take the thing back, having granted him a reasonable period for this. The failure of the depositor to perform this duty shall entail the consequences provided for by Article 789 of this Code.
Article 780. Storage of Things with Pooling
In instances expressly provided for by the contract of storage, things accepted for storage from one depositor may be mixed with the things of the same kind and quality of other depositors (storage with pooling). The equal quantity, or quantity stipulated by the parties, of the same kind and quality, shall be returned to the depositor.
Article 781. Duty of Depository to Ensure Preservation of Thing
1. The depository shall be obliged to take all measures provided for by the contract of storage in order to ensure the preservation of the thing transferred to him for storage.
In the absence of conditions in the contract, concerning such measures, or in case of the incompleteness of these conditions, the depository must take measures for the preservation of the thing, which correspond to the essence of the obligation, including the measures for preservation of properties of the thing transferred for storage, unless the necessity for taking such measures is excluded by the contract.
2. The depository in any event must take measures for preservation of a thing transferred for storage, the obligatoriness of which has been provided for by the legislation, or in accordance with the procedure established by the legislation (measures of fire prevention, sanitary, protective etc.).
3. If the storage is effectuated without compensation, the depository shall be obliged to be concerned for the things accepted for storage not less than as for own things.
Article 782. Use of Thing Transferred for Storage
The depository shall not have the right without the consent of the depositor to use a thing transferred for storage, nor to grant the possibility of use thereof to third persons, except for an instance when the use of the thing being kept is necessary in order to ensure the preservation thereof and is not contrary to the contract of storage.
Article 783. Change of Conditions of Storage
1. In the event of the necessity of a change of conditions of storage things, provided for by the contract of storage, the depository shall be obliged immediately to inform the depositor thereof and to await the answer.
If a change of conditions for storage is necessary in order to eliminate the danger of loss, shortage, or damage of the thing, the depository shall have the right to change the means, place, and other conditions of storage without awaiting the answer of the depositor.
2. If during the storage a real threat of the spoilage of the thing arose, or the thing already has been subjected to spoilage, or circumstances arose which do not enable the preservation thereof to be ensured, and the timely taking of measures by the depositor can not be expected, the depository shall have the right autonomously to sell the thing or part thereof at the price which has been formed at the place of storage. If the said circumstances arose for reasons for which the depository is not liable, he shall have the right to compensation of his expenses for the sale at the expense of the purchase price.
Article 784. Storage of Things with Dangerous Properties
1. Things which are inflammable, explosive, or in general inherently dangerous may, unless the depositor when handing them over for storage warned the depository about the properties thereof, be at any time rendered harmless or destroyed by the depository without compensation of losses to the depositor. The depositor shall be liable for losses caused in connection with the storage of such things to the depository and to third persons.
In the event of the transfer of things with dangerous properties for storage to a professional depository, the rules provided for by paragraph one of this Clause shall apply in an instance when such things were handed over for storage under an incorrect name and the depository when accepting them could not surely determine their dangerous properties by means of visual inspection.
In the event of storage for compensation in the instances provided for by this Clause, the remuneration paid for storage the things shall not be returned, and if it was not paid, the depository may recover it in full.
2. If the things, specified in the first part of Clause 1 of this Article, accepted for storage with the knowledge and consent of the depository, become, despite compliance with the conditions for their storage, dangerous for surrounding persons or for the property of the depository or third persons, and circumstances do not permit the depository to demand they be immediately taken back by the depositor, or the depositor does not fulfill this demand, these things may be rendered harmless or destroyed by the depository without compensation of losses to the depositor. In this event, the depositor shall not bear liability to the depository and third persons for losses caused in connection with the storage of these things.
Article 785. Transfer of Thing for Storage to Third Person
Unless otherwise provided by a contract of storage, the depository shall not have the right without the consent of the depositor to transfer a thing for storage to a third person, except for instances when the depository was compelled to do so by force of circumstances in the interests of the depositor and had no possibility to receive his consent.
The depository shall be obliged immediately to inform the depositor about the transfer of the thing for storage to a third person.
In the event of the transfer of a thing for storage to a third person, the conditions of the contract between the depositor and the initial depository shall retain force and the latter shall be liable for the actions of the third person to which he transferred the thing for storage as though for his own.
Article 786. Remuneration for Storage
1. Remuneration for storage must be paid to the depository at the end of the storage, and if the payment for storage has been provided for by periods, it must be paid for by respective parts upon the expiry of each period.
2. In the event of delay of payment of remuneration for storage for more than half of a period for which it should have been paid, the depository shall have the right to refuse to perform the contract and demand that the depositor immediately take back the thing handed over for storage.
3. If the storage is terminated before the expiry of the stipulated period for circumstances for which the depository is not liable, he shall have the right to a commensurate part of the remuneration, and in the event provided for by Article 784(1) of this Code, to the full amount of remuneration.
If the storage is terminated before time under circumstances for which the depository is liable, he shall not have the right to demand remuneration for storage, but must return to the depositor the amounts received on the account of this remuneration.
4. If upon the expiry of the period of storage a thing in storage is not taken back by the depositor, he shall be obliged to pay the depository commensurate remuneration for the further storage of the thing. This rule also shall apply in the event when the depositor is obliged to take back the thing before the expiry of the period of storage.
5. The rules of this Article shall apply unless otherwise provided by the contract of storage.
Article 787. Compensation of Expenses for Storage
1. Unless otherwise provided by the contract of storage, the expenses of the depository for the storage of a thing shall be included in the remuneration for storage.
2. In the event of storage without compensation, the depositor shall be obliged to compensate the depository for necessary expenses made by him for the storage of the thing, unless otherwise provided by the legislation or by the contract of storage.
Article 788. Extraordinary Expenses for Storage
1. Expenses for the storage of a thing which exceed ordinary expenses of this nature and which the parties could not foresee at conclusion of a contract of storage (extraordinary expenses), shall be compensated to the depository if the depositor gave consent to these expenses or approved them subsequently, and also in other instances provided for by the legislation or a contract.
2. When it is necessary to make extraordinary expenses, the depository shall be obliged to request the depositor for consent to these expenses. If the depositor does not inform the depository about his disagreement within the period established by the depository, or within the time normally necessary for a reply, it shall be considered that the depositor has agreed to the extraordinary expenses.
In an instance when the depository has made extraordinary expenses for storage, not having received the prior consent from the depositor to these expenses, although under the circumstances of the case this was possible, and the depositor subsequently did not approve these extraordinary expenses, the depository may demand compensation of extraordinary expenses only within the limits of the damage which might be caused to the thing if these expenses were not made.
3. Unless otherwise provided by the contract of storage, extraordinary expenses shall be compensated in addition to the remuneration for storage.
Article 789. Duty of Depositor to Take Thing Back
1. Upon the expiry of the stipulated period of storage or the period granted to the depository for receiving the thing back on the basis of Article 779(3) of this Code, the depositor shall be obliged to take back immediately the thing transferred for storage.
2. In the event of the failure of the depositor to perform his duty to take the thing back which was transferred for storage, including in the event of his evading to receive the thing, the depository shall have the right, unless otherwise provided by the contract of storage, after warning the depositor in writing, to sell the thing autonomously at the price existing in the place of storage, and if the value of the thing, according to a valuation, exceeds one hundred basic values established by the legislation, to sell it at the auction in accordance with the procedure provided for by Articles 417-419 of this Code.
The amount received from the sale of the thing shall be transferred to the depositor, less the amounts due to the depository, including the expenses for the sale of the thing.
Article 790. Duty of Depository to Return Thing
1. The depository shall be obliged to return to the depositor (to the person specified by the depositor as the recipient) that very thing which was transferred for storage, unless storage with pooling has been provided for by the contract (Article 780).
2. A thing must be returned by the depository in that condition in which it was accepted for storage, taking into account its natural deterioration, natural decrease, or other change as a consequence of its natural properties.
3. Simultaneously with the return of the thing the depository is obliged to transfer the yield and revenues obtained for the time of storage thereof, unless otherwise provided by the contract of storage.
Article 791. Grounds for Liability of Depository
l. The depository shall be liable for loss, shortage, or damage of things accepted for storage on the grounds provided for by Article 372 of this Code. A professional depository shall be liable for loss, shortage, or damage of things unless the depository would prove that the loss, shortage, or damage occurred as a consequence of force majeure, or because of the properties of the thing, of which the depository did not know and should not have known at accepting it for storage, or as a result of intent or gross negligence of the depositor.
2. The depository shall be liable for loss, shortage, or damage of things accepted for storage after ensuing the duty of the depositor to take these things back (Article 789(1)) only in case of depository’s intent or gross negligence.
Article 792. Amount of Liability of Depository
1. Losses caused to the depositor by the loss, shortage, or damaging of a thing shall be compensated by the depository in accordance with Article 364 of this Code unless otherwise provided by the legislation or the contract of storage.
2. In the event of storage without payment, the losses caused to the depositor by the loss, shortage, or damaging of the thing shall be compensated:
1) for loss or shortage of the thing: in the amount of the value of the lost or shortly delivered things;
2) for the damaging of things: in the amount by which the value of things was reduced.
3.In an instance when as a result of the damage, for which the depository is liable the quality of the thing has been so changed that it can not be used for its initial purpose, the depositor shall have the right to refuse it and to demand compensation from the depository for the value of this thing, and also of other losses, unless otherwise provided by the legislation or by the contract of storage.
Article 793. Compensation of Losses Caused to Depository
The depositor shall be obliged to compensate the depository for losses caused by the properties of the thing handed over for storage, if the depository, in accepting the thing for storage, did not know and should not have known about these properties.
Article 794. Termination of Storage Upon Demand of Depositor
The depository shall be obliged, at the first demand of the depositor, to return the thing accepted for storage, even though the period for the storage thereof provided for by the contract has not yet expired.
Article 795. Application of General Provisions on Storage to Individual Types Thereof
The general provisions on storage (Articles 776-794) shall apply to individual types thereof, unless otherwise established by the rules on individual types of storage, contained in Articles 797-816 of this Code and in other acts of legislation.
Article 796. Storage by Virtue of Act of Legislation
The rules of this Chapter shall apply to obligations of storage arising by virtue of the act of legislation, unless other rules have been established by the legislation.
§ 2. Storage in Warehouse
Article 797. Contract of Warehouse Storage
1. Under a contract of warehouse storage, a Warehouse (depository) shall undertake, for remuneration, to keep the goods transferred to it by the goods possessor (depositor) and to return these goods intact.
A Warehouse shall be deemed to be an organization carrying out the storage of goods and rendering services connected with storage as entrepreneurial activity.
2. The written form of the contract of warehouse storage shall be considered to be complied with, if the conclusion thereof and the acceptance of the goods at the warehouse are certified by a warehouse document (Article 802).
Article 798. Storage of Goods by Warehouse of Common Use
l. The Warehouse shall be deemed to be a warehouse of common use, if it arises from the legislation or from the special permit (license) issued to this commercial organization that it is obliged to accept goods for storage from any goods possessor.
2. A contract of warehouse storage concluded by a Warehouse of common use shall be deemed to be a public contract (Article 396).
Article 799. Verification of Goods During Acceptance Thereof by Warehouse and During Storage
1. Unless otherwise provided by the contract of warehouse storage, a Warehouse shall, when accepting goods for storage, be obliged at its own expense to inspect the goods and determine the quantity thereof (number of units or goods pieces, or measure, weight, volume) and external condition.
2. A Warehouse shall be obliged to grant to the goods possessor the possibility, during the storage, to examine the goods or examples thereof, if the storage is effectuated by pooling, to take samples, and to take measures necessary to ensure the preservation of the goods.
Article 800. Changes of Conditions of Storage and State of Goods
1. In an instance when in order to ensure the preservation of the goods a change of the conditions of their storage is required, a Warehouse shall have the right to take the required measures autonomously. However, it shall be obliged to inform the goods possessor about the measures taken if it was necessary to change significantly the conditions of the storage of the goods provided for by the contract of warehouse storage.
2. In the event of revealing, during storage, the damaging of a good which exceeds the limits agreed in the contract of warehouse storage or ordinary norms of natural spoilage, the Warehouse shall be obliged immediately to draw up an act concerning this and to notify the goods possessor at the same day.
Article 801. Verification of Quantity and State of Good at Return Thereof to Goods Possessor
1. Both the goods possessor and Warehouse shall have the right to demand, at returning a good, to inspect it and verify the quantity thereof. The expenses caused by this shall be borne by the party which demanded inspection of the goods or verification of the quantity thereof.
2. If, when returning the goods from the warehouse to the goods possessor, the goods were not jointly inspected or verified by them, a statement concerning the shortage or damaging of the goods as a consequence of the improper storage thereof must be made for the warehouse in writing when receiving the goods, and with respect to shortage or damage which could not be revealed with the ordinary means of accepting the goods, within three days upon the receipt thereof.
In the absence of the statement of the goods possessor, specified in the first part of this Clause, it shall be considered, unless it is proved otherwise, that the good was returned by the warehouse in accordance with the conditions of the contract of warehouse storage.
Article 802. Warehouse Documents
1. A Warehouse shall issue in confirmation of the acceptance of goods for storage one of the following warehouse documents:
1) dual warehouse certificate;
2) simple warehouse certificate;
3) warehouse receipt.
2. A dual warehouse certificate shall consist of two parts, the warehouse certificate and the pledge certificate (warrant), which may be separated one from the other.
3. A dual warehouse certificate, each of the two parts thereof, and a simple warehouse certificate shall be securities.
4. A good accepted for storage under a dual or simple warehouse certificate, may be, during the storage thereof, the subject of pledge by means of the respective certificate.
Article 803. Dual Warehouse Certificate
l. In each part of a dual warehouse certificate there must be identically indicated:
1) the name and location of the Warehouse which accepted the good for storage;
2) the number of the warehouse certificate according to the register of the warehouse;
3) the name of the legal person or the name of the citizen from which the good was accepted for storage, and also the location (place of residence) of the goods possessor;
4) the name and quantity of the good accepted for storage: number of units and(or) pieces of the good and(or) the measure (weight, volume) of the good;
5) the period for which the good is accepted for storage, if such period is established, or an indication that the good is accepted for storage till called for;
6) the amount of remuneration for storage or the tariffs on the basis of which it is calculated, and the procedure of payment for storage;
7) the date of issuance of the warehouse certificate.
Both parts of the dual warehouse certificate must have identical signatures of the authorized person and the seal of the Warehouse.
2. A document which does not correspond to the requirements of this Article shall not be a dual warehouse certificate.
Article 804. Rights of Holders of Warehouse and Pledge Certificates
1. The holder of a warehouse and pledge certificates shall have the right to dispose of the good being kept in the warehouse in full.
2. The holder of the warehouse certificate separated from the pledge certificate shall have the right to dispose of the good, but may not take it from the warehouse until payment of the credit issued under the pledge certificate.
3. The holder of a pledge certificate, other than the holder of the warehouse certificate, shall have the right of pledge to the good in the amount of the credit, issued under the pledge certificate, and interest thereon. In the event of the pledge of a good, a note thereof shall be made on the warehouse certificate.
Article 805. Transfer of Warehouse and Pledge Certificates
The warehouse certificate and the pledge certificate may be transferred together or separately under inscriptions of endorsement.
Article 806. Issuance of Good Under Dual Warehouse Certificate
1. A Warehouse shall issue the good to the holder of the warehouse and pledge certificates (dual warehouse certificate) only in exchange for both these certificates together.
2. A good shall be issued by the warehouse to the holder of a warehouse certificate who does not have the pledge certificate, but has contributed the amount of the debt with regard to it, only in exchange for the warehouse certificate and subject to condition of the submission, together with it, of a receipt certifying payment of the full amount of the debt under the pledge certificate.
3. A Warehouse which, contrary to the requirements of this Article, has issued a good to the holder of a warehouse certificate, who does not have the pledge certificate and has not contributed the amount of the debt with regard to it, shall bear liability to the holder of the pledge certificate for payment of the full amount secured under this pledge certificate.
4. The holder of warehouse and pledge certificates shall have the right to demand the issuance of the good in parts. In so doing, new certificates for the good remaining in the warehouse shall be issued to him in exchange for the original certificates.
Article 807. Simple Warehouse Certificate
1. A simple warehouse certificate shall be issued to the bearer.
2. A simple warehouse certificate must contain the information provided by Article 803(1), Subclauses 1, 2, 4-7, of this Code, and also an indication that it was issued to the bearer.
3. A document which does not correspond to the requirements of this Article shall not be a simple warehouse certificate.
Article 808. Storage of Things with Right to Dispose of Them
If it follows from the legislation or the contract that a Warehouse may dispose of goods handed over to it for storage, the rules of Chapter 42 of this Code, concerning loan, shall apply to the relations of the parties; however, the time and place of return of the goods shall be determined by the rules of this Chapter.
§ 3. Special Types of Storage
Article 809. Storage in Pawnshop
1. A contract of storage in a pawnshop of things which belong to a citizen shall be a public contract (Article 396).
2. The conclusion of a contract of storage in a pawnshop shall be certified by the issuance by the pawnshop to the depositor of an inscribed deposit receipt.
3. A thing handed over for storage to a pawnshop shall be subject to valuation by agreement of the parties in accordance with the prices for a thing of that type and quality, usually established in trade at the time and at the place of its acceptance for storage.
4. A pawnshop shall be obliged to insure things, accepted for storage, to the benefit of the depositor, at the expense of a pawnshop, in full amount of valuation thereof, carried out in accordance with Clause 3 of this Article.
Article 810. Things Not Demanded from Pawnshop
1. If a thing handed over for storage to a pawnshop is not demanded by the depositor within the period stipulated by the agreement with the pawnshop, the pawnshop shall be obliged to keep it for two months with recovery of payment for this as provided for by the contract of storage. Upon the expiry of this period, the undemanded thing may be sold by the pawnshop in accordance with the procedure established by Article 339(5) of this Code.
2. From the amount received from the sale of the undemanded thing, payment for the storage thereof and other payments due to the pawnshop shall be paid. The balance of the amount shall be returned by the pawnshop to the depositor.
Article 811. Storage of Valuables in Bank or Non-bank Credit and Financial Institution
1. A bank or a non-bank credit and financial institution may accept securities, precious metals and stones, other precious things, and other valuables, including documents, for storage.
2. The conclusion of a contract of storage for valuables in a bank or non-bank credit and financial institution shall be certified by the issuance, by the bank to the depositor, of an inscribed deposit document, the submission of which shall be grounds for the issuance of the valuables, being kept, to the depositor.
Article 812. Storage of Valuables in Individual Bank Safe
1. A contract for the storage of valuables in a bank or non-bank credit and financial institution may provide for the storage thereof with the use by the depositor (client) or with the granting to him of an individual bank safe (safe box, isolated premise in a bank), which is guarded by the bank or non-bank credit and financial institution.
Under a contract for storage of valuables in an individual bank safe, the right shall be granted to the client himself to place the valuables in the safe and to remove them from the safe; for this purpose, a key of the safe, a card enabling to identify the client, or other mark or document certifying the right of the client to access to the safe and that contained therein, must be issued to the client.
The right of the client to work in the bank or non-bank credit and financial institution with the valuables kept in an individual safe may be provided for by the conditions of the contract.
2. Under a contract of storage of valuables in a bank or non-bank credit and financial institution with the use of an individual bank safe by the client, the bank or non-bank credit and financial institution shall accept valuables from the client, which must be kept in the safe, effectuate control over placement thereof by the client in the safe and removal from the safe, and after removal shall return these valuables to the client.
3. Under a contract of storage of valuables in a bank or non-bank credit and financial institution with the granting of an individual bank safe to the client, the bank or non-bank credit and financial institution shall ensure to the client the possibility of placing valuables in a safe and the removal thereof from the safe without any control whatever, including control of the bank or non-bank credit and financial institution.
The bank or non-bank credit and financial institution shall be obliged to effectuate control over access to the premise where the safe, granted to the client, is situated.
Unless otherwise provided by a contract of storage of valuables in a bank or non-bank credit and financial institution with the granting of an individual bank safe to the client, the bank or non-bank credit and financial institution shall be relieved of liability for the failure to preserve that contained in the safe, if the bank or non-bank credit and financial institution would prove that, under the conditions of storage, the access of anyone to the safe without the knowledge of the client was impossible or it became possible as a consequence of force majeure.
4. The rules of this Code (Chapter 34) and other acts of legislation on the contract of lease shall apply to the contract on the granting of a bank safe for use to another person without liability of the bank or non-bank credit and financial institution for that contained in the safe.
Article 813. Storage in Luggage Storage Rooms of Transport Organizations
l. Luggage storage rooms within the jurisdiction of transport organizations of common use shall be obliged to accept for storage the things of passengers and other citizens irrespective of whether they have travel documents. A contract for the storage of things in luggage storage rooms of transport organizations shall be deemed to be a public contract (Article 396).
2. In confirmation of the acceptance of a thing for storage in a luggage storage room (except for automatic rooms) a receipt or numbered token shall be issued to the depositor. In the event of the loss of the receipt or token, the thing handed over to the luggage storage room shall be issued to the depositor upon submission of evidence of the belonging of this thing to him.
3. The period during which the luggage storage room is obliged to keep things shall be determined by the acts of Republic's bodies of state administration in accordance with the second part of Article 738(2) of this Code, unless a longer period is established by agreement of the parties. Things not demanded within the specified periods, must be kept in the luggage storage room for another thirty days. Upon the expiry of this period the things not demanded may be sold in accordance with the procedure provided for by Article 789(2) of this Code.
4. The losses of the depositor as a consequence of the loss, shortage, or damaging of things handed over to the luggage storage room shall, within the limits of the amount of their valuation by the depositor when handing these things over for storage, be subject to compensation by the depository within twenty-four hours from the time of submission of the demand concerning compensation thereof.
Article 814. Storage in Check Rooms of Organizations
1. Storage in check rooms of organizations shall be presupposed to be without compensation if remuneration for storage is not stipulated or specified by other obvious means when handing over a thing for storage.
The depository of a thing handed over to a check room, irrespective of whether the storage is effectuated for or without compensation, shall be obliged to take all measures provided for by Article 781(1) and (2) of this Code in order to ensure the preservation of the thing.
2. The rules of this Article also shall apply to the storage of outer clothing, headwear, and other similar things left without handing them over for storage by citizens at places allotted for these purposes in organizations and means of transport.
Article 815. Storage in Hotel
1. A hotel shall be liable as depository, without a special agreement concerning this with a person residing therein (lodger), for loss, shortage, or damaging of his things deposited at the hotel, except for money, other currency valuables, securities, and other precious things.
A thing entrusted to employees of the hotel, or a thing placed in the hotel room or other place intended for this purpose shall be considered to be deposited in the hotel.
2. A hotel shall be liable for the loss of money, other currency valuables, securities, and other precious things of a lodger, if they were accepted by the hotel for storage or were placed by the lodger in an individual safe, provided to the lodger by the hotel, irrespective of whether this safe is situated in his room or in another premise of the hotel. A hotel shall be relieved from liability for the failure to preserve that contained in such safe, if it would prove that, under the conditions of storage, access of anyone to the safe without the knowledge of the lodger was impossible or became possible as a consequence of force majeure.
3. The lodger who has revealed a loss, shortage, or damaging of his things, shall be obliged without delay to inform the administration of the hotel. Otherwise, the hotel shall be relieved from liability for the failure to preserve the things.
4. An announcement made by the hotel that it does not assume liability for the failure to preserve things of lodgers shall not relieve it from liability.
5. The hotel shall be relieved from liability for loss, shortage, or damaging of the lodger’s things, if such loss, shortage, or damaging took place through the lodger’s fault.
6. The rules of this Article respectively shall apply with respect to the storage of things of citizens in motels, rest homes, boarding houses, sanatoriums, public baths, and other similar organizations.
Article 816. Storage of Things Which Are Subject of Dispute (Sequestration)
1. Under a contract on sequestration, two or several persons between whom a dispute has arisen concerning the right to a thing, shall transfer this thing to a third person who assumed the duty, upon the settlement of the dispute, to return the thing to that person to whom it would be awarded by decision of a court or by agreement of all the disputing persons (contractual sequestration).
2. A thing which is the subject of a dispute between two or several persons may be transferred for storage by way of sequestration by decision of a court (judicial sequestration).
Either a person designated by a court or a person determined by mutual consent of the disputing parties may be the depository under judicial sequestration. In both instances the consent of the depository shall be required, unless otherwise established by the legislation.
3. Both movable and immovable things may be transferred for storage by way of sequestration.
4. The depository, carrying out the storage of a thing by way of sequestration, shall have the right to remuneration at the expense of the disputing parties, unless otherwise provided by contract or decision of the court, by which the sequestration was established.
CHAPTER 48
Insurance
Article 817. Voluntary and Obligatory Insurance
1. Insurance shall be effectuated on the basis of contracts of insurance concluded by a citizen or legal person (insurant) with an insurance organization (insurer).
2. In instances when the duty to insure (as insurants) life or health of other persons, or own property, or own civil liability to other persons has been placed by the legislation on the persons specified therein (obligatory insurance), the insurance shall be effectuated by means of the conclusion of contracts in accordance with the rules of this Chapter, with the laws on insurance and with other acts of legislation on insurance.
The voluntary insurance shall be effectuated by means of conclusion of contracts by agreement of the parties in accordance with the legislation.
3. Instances of the obligatory insurance of life, health, and property of citizens at the expense of means granted from the respective budget (obligatory state insurance) may be provided for by the legislation.
Article 818. Interests, the Insurance of Which Is Not Permitted
1. The insurance of unlawful interests shall not be permitted.
2. The insurance of losses from participation in games, lotteries, and betting shall not be permitted.
3. The insurance of expenses which a person may be forced to make for the purpose of liberating hostages shall not be permitted.
4. The insurance of incomes from participation in economic companies and partnerships, interests on the securities, profits from investments and other incomes of similar nature shall not be permitted.
5. The conditions of contracts of insurance which are contrary to Clauses 1-4 of this Article shall be void.
Article 819. Contract of Insurance
1. Under a contract of insurance one party (insurer) shall undertake, if the event would take place provided for in the contract (insured accident), to compensate the other party (insurant) or other person to whose benefit the contract was concluded (beneficiary) for losses caused as a consequence of this event to the interests of the insurant, insured under the contract, within the limits of the amount (insured amount) determined by the contract, and the other party (insurant) shall undertake to pay the amount stipulated by the contract (insurance contribution, insurance premium).
2. Under a contract of insurance the following interests in particular may be insured:
1) risk of causing harm to the life or health of the insurant himself or other citizen, named in the contract, or the event of attaining of a determined age by such persons, or the ensuing of another event, provided for by the contract, in their lives (Article 820) - personal insurance;
2) risk of loss (perishing) or damage of property, being in possession, using or disposal of the insurant or another beneficiary named in the contract (Article 821), or damage to their property rights, including risk of the losses from entrepreneurial activity as a consequence of a violation of their obligations by the contracting parties of the entrepreneur or changes of conditions of this activity under circumstances beyond the control of the entrepreneur (Article 822) – insurance of property;
3) risk of liability for obligations arising as a consequence of causing harm to life, health, or property of other persons (Article 823), or risk of liability under contracts (Article 824) - insurance of liability.
Article 820. Contract of Personal Insurance
1. Under a contract of personal insurance, the insurer shall undertake, for the payment of insurance contribution (insurance premium), stipulated by the contract and paid by the insurant, to pay, once or periodically, the insurance coverage within the limit of the insured amount, stipulated by the contract, in the event of causing of harm to the life or health of the insurant himself or other insured person, or in the event of the attaining of a determined age by such persons, or the ensuing of another event, provided for by the contract, in their lives (insured accident).
2. A contract of personal insurance shall be considered to be concluded to the benefit of the insured person if another person is not named in the contract as the beneficiary. In the event of the death of the person insured under the contract in which another beneficiary is not named, the heirs of the insured person shall be deemed to be the beneficiaries.
A contract of personal insurance to the benefit of a person who is not the insured person, including to the benefit of an insurant who is not the insured person, may be concluded only with the written consent of the insured person. In the absence of such consent, the contract may be deemed to be invalid upon the suit of the insured person, and in the event of the death of this person, upon the suit of heirs of this person.
Article 821. Insurance of Property
1. Property may be insured under a contract of insurance to the benefit of the person (insurant or beneficiary) having an interest, based on the legislation or the contract, in the preservation of this property.
2. A contract of insurance of property concluded in the absence of an interest of the insurant or beneficiary in the preservation of the insured property, shall be invalid.
3. A contract of insurance of property to the benefit of a beneficiary may be concluded without specifying the name of the beneficiary.
In the event of concluding such a contract, a bearer insurance policy shall be issued to the insurant. In the event of the exercise, by the insurant or beneficiary, of the rights under such contract, it shall be necessary to submit this policy to the insurer.
Article 822. Insurance of Entrepreneurial Risk
1. Under a contract of insurance of entrepreneurial risk only the entrepreneurial risk of the insurant himself and only to his benefit may be insured.
2. The contract of insurance of entrepreneurial risk of a person which is not engaged in entrepreneurial activity shall be void.
A contract of insurance of entrepreneurial risk to the benefit of a person which is not the insurant shall be considered to be concluded to the benefit of the insurant.
Article 823. Insurance of Liability for Causing Harm
1. Under a contract of insurance of the risk of liability for obligations which arise as a consequence of the causing harm to the life, health, or property of other persons, the liability of the insurant himself, or another person on whom such liability may be placed, may be insured.
2. The person whose liability for causing harm has been insured must be named in the contract of insurance. If this person is not named in the contract, the liability of the insurant himself shall be considered to be insured.
3. The contract of insurance of liability for causing harm shall be considered to be concluded to the benefit of the persons to whom harm may be caused (beneficiary), even if the contract was concluded to the benefit of the insurant or other person liable for causing harm, or it is not specified in the contract to whose benefit it was concluded.
4. In an instance when liability for causing harm was insured by virtue of the fact that the insurance thereof is obligatory, and also in other instances provided for by the legislation or contract of insurance of such liability, the person to whose benefit the contract of insurance is considered to be concluded, shall have the right to submit directly to the insurer a demand concerning compensation of harm within the limits of the insured amount.
Article 824. Insurance of Liability under Contract
1. Insurance of the risk of liability for a violation of a contract shall be permitted in the instances provided for by the legislation.
2. Under a contract of insurance of the risk of liability for a violation of a contract, only the liability of the insurant himself may be insured. A contract of insurance not corresponding to this requirement shall be void.
3. The liability for a violation of a contract shall be considered to be insured to the benefit of the party, to which, under the conditions of this contract, the insurant must bear respective liability (the beneficiary), even if the contract of insurance is concluded to the benefit of another person or it is not specified therein to whose benefit it was concluded.
Article 825. Obligatory Insurance
1. By the legislative acts, the duty to insure the following may be placed on the persons specified therein:
1) the life, health, or property of other persons determined in a legislation in the event of causing harm to their life, health, or property;
2) the risk of own civil liability, which may ensue as a consequence of causing harm to the life, health, or property of other persons or violations of contracts with other persons.
2. The duty to insure own life or health may not be placed on a citizen by the legislation.
3. In the instances provided for by the legislative acts and(or) in accordance with the procedure established by it, the duty to insure property, being the Republic's or communal property, may be placed on legal persons having this property in economic management or operative administration.
4. In instances when the duty of insuring does not arise from a legislation, but is based on a contract, including the duty of insuring property, based on a contract with the possessor of the property or constituent documents of a legal person which is the owner of the property, such insurance shall not be obligatory in the sense of this Article and shall not entail the consequences provided for by Article 827 of this Code.
Article 826. Effectuation of Obligatory Insurance
1. Obligatory insurance shall be effectuated by means of the conclusion of a contract of insurance by the person, on which the duty of such insurance (as insurant) was placed, with the insurer.
2. Obligatory insurance shall be effectuated at the expense of the insurant.
3. Objects, subject to obligatory insurance, the risks against which they must be insured, and the minimum insured amounts shall be determined by the legislative acts, and in the instance provided for by Article 825(3) of this Code, by the acts of legislation or in accordance with the procedure established by these acts.
Article 827. Consequences of Violation of Rules on Obligatory Insurance
1. The person to whose benefit, in accordance with the legislative acts, obligatory insurance must be effectuated shall have the right, if it is known to it that the insurance is not effectuated, to demand in a judicial proceeding the effectuation thereof by the person on whom the duty of insurance has been placed.
2. If the person, on which the duty of insurance has been placed, does not effectuate it or has concluded a contract of insurance on conditions which worsen the status of the beneficiary in comparison with the conditions determined by the legislation, it shall, in the event of the ensuing of the insured accident, bear liability to the beneficiary on the same conditions on which the insurance compensation should have been paid under the proper insurance.
3. The amounts unfoundedly saved by a person on which the duty of insurance has been placed, as a result of the fact that it did not fulfill this duty or fulfilled it improperly, shall be recovered, upon the suit of bodies, carrying out supervision over insurance activity, to the revenue of the Republic of Belarus, with accrual of interests on these amounts in accordance with Article 366 of this Code.
Article 828. Insurer
1. Commercial organizations having a special permit (license) for the effectuation of insurance may conclude contracts of insurance as insurers.
2. The requirements which insurance organizations must meet, the procedure for the licensing of their activity, and the effectuation of state supervision over this activity shall be determined by legislation.
Article 829. Fulfillment of Duties Under Contract of Insurance by Insurant and Beneficiary
1. The conclusion of a contract of insurance to the benefit of a beneficiary, including when the beneficiary is the insured person, shall not relieve the insurant from the fulfillment of the duties under this contract, unless otherwise provided by the contract or the duties of the insurant have been fulfilled by the person to whose benefit the contract was concluded.
2. The insurer shall have the right to demand from the beneficiary, including when the insured person is the beneficiary, the fulfillment of the duties under the contract of insurance, including the duties lying on the insurant but not fulfilled by him, in the event of the submission by the beneficiary of a demand concerning payment of the insurance compensation under a contract of property insurance or insured amount under a contract of personal insurance. The risk of the consequences of the failure to fulfill or the untimely fulfillment of the duties which should have been fulfilled earlier shall be borne by the beneficiary.
Article 830. Form of Contract of Insurance
l. The contract of insurance must be concluded in written form.
The failure to comply with the written form shall entail the invalidity of the contract of insurance, except for a contract of obligatory state insurance (Article 859).
2. A contract of insurance may be concluded by means of drawing up one document (Article 404(2)) or handing over by the insurer to the insurant, on the basis of his written or oral application, the insurance policy (certificate, receipt) signed by the insurer. In the latter instance the consent of the insurant to conclude a contract on the conditions, offered by the insurer, shall be confirmed by the acceptance from the insurer of the documents specified.
3. The insurer, when concluding a contract of insurance, shall have the right to use the standard forms of the contract (insurance policy) for individual types of insurance, worked out by it or by an association of insurers, subject to agreeing with the body carrying out the supervision over the insurance activity.
Article 831. Insurance Under General Policy
1. The regular insurance of various lots of property of the same kind (goods, cargoes, and the like) on the similar conditions during a determined period may, by agreement of the insurant with the insurer, be effectuated on the basis of one contract of insurance, a general policy.
2. The insurant shall be obliged, with respect to each lot of property falling under the operation of the general policy, to provide to the insurer the information stipulated by such policy within the period provided for by it, and if it is not specified, immediately upon the receipt of such information. The insurant shall not be relieved of this duty even if at the time of receiving such information the possibility of losses, subject to compensation by the insurer, already has disappeared.
3. At the demand of the insurant, the insurer shall be obliged to issue insurance policies for individual lots of property falling under the operation of the general policy.
In the event of the non-conformation of the content of the insurance policy and the general policy, preference shall be given to the insurance policy.
Article 832. Significant Conditions of Contract of Insurance
1. When concluding a contract of property insurance, agreement must be reached between the insurant and the insurer concerning:
1) the determined property or other property interest which is the object of insurance;
2) the character of the event, in the instance of the ensuing of which the insurance is effectuated (insured accident);
3) the insured amount;
4) the amount of insurance contribution and periods of payment thereof;
5) the period of operation of the contract.
2. When concluding a contract of personal insurance, agreement must be reached between the insurant and the insurer concerning:
1) the insured person;
2) the character of the event, in the instance of the ensuing of which in the life of the insured person the insurance is effectuated (insured accident);
3) the insured amount;
4) the amount of insurance contribution and periods of payment thereof;
5) the period of operation of the contract.
3. When concluding a contract of insurance between the insurant and the insurer, if the insurant is the citizen, in addition to the significant conditions specified in Clauses 1 and 2 of this Article, agreement must be reached concerning:
1) the grounds for dissolution of the contract before the expiry of the period established;
2) the procedure of return of the insurance contribution to the insurant in case of non-fulfillment of the obligation or dissolution of the contract before the expiry of the period established;
3) the liability for non-fulfillment of the obligation.
Article 833. Determination of Conditions of Contract of Insurance in Rules of Insurance
1. The conditions on which a contract of insurance is concluded may be determined in standard rules of insurance of the respective type adopted, approved, or confirmed by the insurer or by an association of insurers (rules of insurance).
2. The conditions contained in the rules of insurance and not included in the text of the contract of insurance (insurance policy) shall be obligatory for the insurant (beneficiary) if the application of these rules is expressly specified in the contract (insurance policy) and the rules themselves have been set out in a single document with the contract (insurance policy) or on the reverse side thereof or annexed thereto. In the latter event the handing over of the rules of insurance to the insurant when concluding the contract must be certified by an entry in the contract.
Article 834. Information Granted by Insurant When Concluding Contract of Insurance
l. When concluding a contract of insurance, the insurant shall be obliged to inform the insurer about the circumstances known to the insurant, having material significance for determining the probability of the ensuing of the insured accident and the amount of possible losses from the ensuing thereof (insured risk), if these circumstances are not known and should not be known to the insurer.
In any event circumstances specifically stipulated by the insurer in the standard form of a contract of insurance (insurance policy) or in its written questionnaire shall be deemed to be significant.
2. If a contract of insurance was concluded in the absence of the answers of the insurant to any questions of the insurer, the insurer may not subsequently demand dissolution of the contract or the deeming thereof to be invalid on the grounds that the respective circumstances were not given by the insurant.
3. If after the conclusion of the contract of insurance it is established that the insurant presented knowingly false information to the insurer concerning the circumstances specified in Clause 1 of this Article, the insurer shall have the right to demand the contract to be deemed invalid and the application of the consequences provided for by Article 180(2) of this Code.
The demand of the insurer on deeming a contract of insurance to be invalid shall not be satisfied, if the circumstances, which were concealed by the insurant, already have disappeared.
Article 835. Right of Insurer to Valuation of Insured Risk
1. When concluding a contract of insurance of property, the insurer shall have the right to make an inspection of the property to be insured and, when necessary, shall appoint an expert examination for the purpose of establishing its true value.
2. When concluding a contract of personal insurance, the insurer shall have the right to investigate the person to be insured in order to evaluate the actual condition of his health.
3. The valuation of insured risk by the insurer on the basis of this Article shall be not obligatory for the insurant, who shall have the right to prove otherwise.
Article 836. Secrecy of Insurance
An insurer shall not have the right to divulge information concerning the insurant, insured person, and beneficiary, condition of their health, and also the property status of these persons received by it as a result of its professional activity, except for the instances provided for by the legislation. The insurer, for a violation of the secrecy of insurance, depending upon the nature of the violated rights and the character of the violation, shall bear liability in accordance with the rules provided for by Article 140 or Article 151 of this Code.
Article 837. Insured Amount
1. The amount within whose limits the insurer undertakes to pay insurance compensation under a contract of property insurance or the insurance coverage under a contract of personal insurance (insured amount) shall be determined by agreement of the insurant with the insurer in accordance with the rules provided for by this Article.
2. When insuring property or entrepreneurial risk, unless otherwise provided by the contract of insurance, the insured amount must not exceed the true value thereof (insured value). There shall be considered to be such value:
1) for property: its true value at the location thereof on the day of concluding the contract of insurance;
2) for entrepreneurial risk: the losses from entrepreneurial activity which the insurant could incur in case of ensuing of the insured accident.
3. In contracts of personal insurance and contracts of insurance of civil liability, the insured amount shall be determined by the parties at their discretion.
Article 838. Contesting Insured Value of Property
The insured value of property specified in a contract of insurance may not subsequently be contested, except for an instance when the insurer, not taking advantage of his right to valuation of the insured risk before concluding the contract (Article 835(l)), was intentionally deceived with respect to this value.
Article 839. Partial Property Insurance
If in a contract of insurance of property or entrepreneurial risk the insured amount has been established lower than the insured value, the insurer shall, in the instance of the ensuing of the insured accident, be obliged to compensate the insurant (beneficiary) for part of the losses incurred by the latter proportionally to the relation of the insured amount to the insured value. If the insurance is effectuated on the ground of the first risk, the insurance compensation shall be paid in the amount of the full value of the lost property or the losses incurred from entrepreneurial activity, but not higher than the insured amount.
Article 840. Additional Property Insurance
1. In the event when property or entrepreneurial risk has been insured only in part of the insured value, the insurant (beneficiary) shall have the right to effectuate additional insurance, including that from a different insurer, but so that the total insured amount under all the contracts of insurance does not exceed the insured value.
2. The failure to comply with the provisions of Clause 1 of this Article shall entail the consequences provided for by Article 841(4) of this Code.
Article 841. Consequences of Insurance in Excess of Insured Value
1. If the insured amount specified in the contract of insurance of property or entrepreneurial risk exceeds the insured value, the contract shall be void in that part of the insured amount which exceeds the insured value.
The part of the insurance premium paid in excess shall not be subject to return in this event.
2. If in accordance with the contract of insurance the insurance premium is contributed by installments and at the time of establishing the circumstances specified in Clause 1 of this Article it was not contributed in full, the balance of the insurance contributions must be paid in the amount reduced proportionally by the reduction of the amount of the insured amount.
3. If an excess of the insured amount in a contract of insurance was a consequence of fraud on the part of the insurant, the insurer shall have the right to demand the contract be deemed to be invalid and compensation of losses caused to him by this in the amount exceeding the amount of insurance premium received by him from the insurant.
4. The rules provided for in Clauses 1-3 of this Article respectively shall apply also in an instance when the insured amount exceeded the insured value as a result of the insurance of the same object by two or several insurers (dual insurance).
The amount of insurance compensation subject to payment in this event by each of the insurers shall be reduced proportionally by the reduction of the initial insured amount under the respective contract of insurance.
Article 842. Property Insurance Against Various Insured Risks
1. Property and entrepreneurial risk may be insured against various insured risks either under one or under separate contracts of insurance, including insurance under contracts with different insurers.
In these instances exceeding the amount of the total insured amount under all contracts over the insured value shall be permitted.
2. If the duty of insurers arises from two or several contracts concluded in accordance with Clause 1 of this Article to pay insurance compensation for one and the same consequences of the ensuing of one and the same insured accident, the rules provided for by Article 841(4) of this Code shall apply to such contract in respective part.
Article 843. Co-Insurance
An object of insurance may be insured under one contract of insurance jointly by several insurers (co-insurance). If the rights and duties of each of the insurers have not been determined in such contract, they jointly and severally shall be liable to the insurant (beneficiary) for payment of the insurance compensation or the insurance coverage.
Article 844. Insurance Contribution (Insurance Premium)
1. The insurance contribution (insurance premium) is payment for insurance, which the insurant is obliged to pay to the insurer in accordance with the procedure and within the periods which have been established by the contract of insurance.
2. When determining the amount of insurance contribution subject to payment under the contract of insurance, the parties shall have the right to apply insurance tariffs, developed by the insurer and agreed with the body of state supervision over the insurance activity, determining the insurance contribution to be recovered per unit of insured amount, taking into account the object of insurance and the character of the insured risk, unless otherwise established by the legislation.
3. If the payment of the insurance contribution by installment has been provided for by a contract of insurance, the consequences of the failure to pay the regular insurance contributions within the established periods may be determined by the contract.
4. If the insured accident ensued before payment of a regular insurance contribution, the contribution of which has been delayed, the insurer shall have the right, when determining the amount of insurance compensation or insurance coverage, subject to payment, to set off the amount of delayed insurance contribution.
Article 845. Replacement of Insured Person
1. In an instance when under a contract of insurance of the liability for causing harm (Article 823) the liability of a person other than the insurant has been insured, the latter shall have the right, unless otherwise provided by the contract, at any time before the ensuing of the insured accident to replace this person by another, having informed the insurer thereof in writing.
2. The insured person specified in the contract of personal insurance may be replaced by the insurant by another person only with the consent of the insured person himself and of the insurer.
Article 846. Replacement of Beneficiary
An insurant shall have the right to replace the beneficiary specified in the contract of insurance by another person, having informed the insurer thereof in writing. The replacement of a beneficiary under a contract of personal insurance designated with the consent of the insured person (Article 820(2)) shall be permitted only with the consent of this person.
The beneficiary may not be replaced by another person after fulfillment by him of any of the duties under the contract of insurance or submission of a demand to the insurer concerning payment of insurance compensation or the insured amount.
Article 847. Commencement of Operation of Contract of Insurance
1. A contract of insurance, unless otherwise provided therein, shall enter into force from the time of payment of the insurance premium or first contribution thereof.
2. Insurance stipulated by a contract of insurance shall extend to insured accidents which occurred after the entry of the contract of insurance into force, unless another period for the commencement of the operation of the insurance has been provided for in the contract.
Article 848. Termination of Contract of Insurance Before Time
l. A contract of insurance shall be terminated before the ensuing of the period for which it was concluded if after its entering into force the possibility of the ensuing of the insured accident disappeared and the existence of the insured risk was terminated under circumstances other than the insured accident. There shall be relegated to such circumstances, in particular:
1) the perishing of the insured property for reasons other than the ensuing of the insured accident;
2) termination, in accordance with the established procedure, of entrepreneurial activity by the person who insured the entrepreneurial risk or other risk connected with such activity.
2. The insurant (beneficiary) shall have the right to repudiate the contract of insurance at any time if at the time of repudiation the possibility of the ensuing of the insured accident had not disappeared under the circumstances specified in Clause 1 of this Article.
3. In the event of termination of a contract of insurance before time under the circumstances specified in Clause 1 of this Article, the insurer shall have the right to part of the insurance premium in proportion to the time during which the insurance was in force.
In the event of the repudiation by the insurant (beneficiary) of the contract of insurance before time, the insurance premium paid to the insurer shall not be subject to return unless otherwise provided by the contract.
Article 849. Consequences of Increase of Insured Risk in Period of Operation of Contract of Insurance
1. In the period of operation of a contract of property insurance the insurant (beneficiary) shall be obliged immediately to inform the insurer on significant changes in the circumstances, on which the insurer was informed when concluding the contract, which have become known to the insurant (beneficiary), if such changes may significantly influence the increase of the insured risk.
Changes shall be deemed to be significant in any event, if these changes are stipulated in the contract of insurance (insurance policy) and in the rules of insurance transferred to the insurant.
2. An insurer who has been notified about circumstances entailing an increase of the insured risk shall have the right to demand a change of the conditions of the contract of insurance or payment of an additional insurance premium commensurate to the increase of risk.
If the insurant (beneficiary) raises objections against changes of the conditions of the contract of insurance or additional payment of the insurance premium, the insurer shall have the right to demand dissolution of the contract in accordance with the rules provided for by Chapter 29 of this Code.
3. In the event of the failure of the insurant or beneficiary to perform the duty provided for in Clause 1 of this Article, the insurer shall have the right to demand dissolution of the contract of insurance and compensation of losses caused by dissolution of the contract (Article 423(5)).
4. The insurer shall not have the right to demand dissolution of the contract of insurance if the circumstances entailing an increase of the insured risk have yet disappeared.
5. In the event of personal insurance, the consequences of a change of insured risk in the period of operation of the contract of insurance specified in Clauses 2 and 3 of this Article may ensue only if they are expressly provided for in the contract.
Article 850. Transfer of Rights to Insured Property to Another Person
In the event of the transfer of rights to insured property from the person in whose interests the contract of insurance was concluded to another person the rights and duties under this contract shall pass to the person to whom the rights to the property passed, except for instances of compulsory seizure of the property on the grounds specified in Article 236(2) of this Code and renunciation of the right of ownership (Article 237).
The person to whom the rights to insured property have passed must immediately inform the insurer thereof in writing.
Article 851. Informing Insurer about Ensuing of Insured Accident
1. An insurant under a contract of property insurance shall, after the ensuing of the insured accident became known to him, be obliged immediately to inform the insurer or his representative about the ensuing thereof. If a period and(or) means of informing has been provided for by the contract, it must be made within the stipulated period and by the means specified in the contract.
The same duty shall lie on the beneficiary to whom the conclusion of the contract of insurance to his benefit is known, if he intends to take advantage of the right to insurance compensation.
2. The failure to fulfill the duty provided for by Clause 1 of this Article shall give to the insurer the right to refuse to pay the insurance compensation unless it is proved that the insurer knew in good time about the ensuing of the insured accident or that the absence of information about this for the insurer could not affect his duty to pay the insurance compensation.
3. The rules provided for by Clauses 1 and 2 of this Article shall respectively apply to the contract of personal insurance if the insured accident is the death of the insured person or causing harm to his health. In such a case, the period of notice of the insurer established by the contract may not be less than thirty days.
Article 852. Reducing Losses from Insured Accident
1. In the event of ensuing the insured accident, which is provided for by the contract of property insurance, the insurant shall be obliged to take reasonable and available measures under the circumstances which formed in order to reduce possible losses.
In taking such measures, the insurant must follow the instructions of the insurer if they have been communicated to the insurant.
2. Expenses for the purpose of reducing losses which are subject to compensation by the insurer, if such expenses were necessary or were made in order to fulfill instructions of the insurer, must be compensated by the insurer, even if the respective measures proved to be unsuccessful.
Such expenses shall be compensated in proportion to the relation of the insured amount to the insured value, irrespective of whether they may exceed the insured amount together with the compensation of the other losses.
3. The insurer shall be relieved from compensation of losses which arose as a consequence of the fact that the insurant intentionally did not take reasonable and available measures in order to reduce possible losses.
Article 853. Consequences of Ensuing of Insured Accident Through Fault of Insurant, Beneficiary, or Insured Person
1. An insurer shall be relieved from the payment of insurance compensation or insured amount if the insured accident ensued as a consequence of the intent of the insurant, beneficiary, or insured person, except for instances provided for by Clauses 2 and 3 of this Article.
Instances of the relief of the insurer from the payment of insurance compensation under contracts of property insurance in the event of the ensuing of the insured accident as a consequence of gross negligence of the insurant or beneficiary may be provided for by the legislation.
2. An insurer shall not be relieved from the payment of insurance compensation under a contract of insurance of liability for causing harm to life, health or property, if the harm was caused through the fault of the person liable therefor.
3. An insurer shall not be relieved from the payment of the insured amount which under a contract of personal insurance is subject to payment in the event of the death of the insured person, if his death ensued as a consequence of suicide and the contract of insurance has operated at this time for not less than two years.
Article 854. Grounds for Relief of Insurer from Payment of Insurance Compensation and Insured Amount
1. Unless otherwise provided by the legislation or contract of insurance, the insurer shall be relieved from the payment of insurance compensation and the insured coverage when the insured accident has ensued as a consequence of:
1) the influence of a nuclear explosion, radiation, or radioactive contamination;
2) military actions;
3) civil war.
2. Unless otherwise provided by a contract of property insurance, the insurer shall be relieved from the payment of insurance compensation for losses which arose as a consequence of the seizure, confiscation, requisition, arrest, or destruction of insured property at the order of state bodies.
Article 855. Transfer to Insurer of Rights of Insurant to Compensation of Damage (Subrogation)
1. Unless otherwise provided by the contract of property insurance, to the insurer, who has paid the insurance compensation, shall pass, within the limits of the amount paid, the right of demand, which the insurant (beneficiary) has against the person liable for the losses compensated as a result of the insurance. A condition of the contract excluding the transfer to the insurer of the right of demand against a person who intentionally caused losses shall be void.
2. The right of demand which has passed to the insurer shall be effectuated by him in compliance with the rules regulating relations between the insurant (beneficiary) and the person liable for the losses.
3. An insurant (beneficiary) shall be obliged to transfer to the insurer all documents and evidences and to submit to him all information necessary for the exercise, by the insurer, of the right of demand which has passed to him.
4. If the insurant (beneficiary) has waived his right of demand against the person liable for losses compensated by the insurer, or the exercise of this right has become impossible through the fault of the insurant (beneficiary), the insurer shall be relieved from the payment of insurance compensation in full or in respective part and shall have the right to demand the return of the amount of compensation paid in excess.
Article 856. Limitations of Action With Regard to Demands Connected with Property Insurance and Insurance of Liability
For the demands, following from the contracts of property insurance and insurance of liability, the general limitation period shall be established, calculated from the date of termination of action of contract of insurance.
Article 857. Reinsurance
l. The part of insurance risk, assumed by an insurer under a contract of insurance, may be insured by an insurer with another insurer(s) under a contract of reinsurance.
2. The rules provided for by this Chapter, which are subject to application with respect to the insurance of entrepreneurial risk, shall apply to the contract of reinsurance, unless otherwise provided by the contract of reinsurance. In so doing, the insurer under a contract of insurance (principal contract) which has concluded a contract of reinsurance shall be considered to be the insurant in this latter contract.
3. Under reinsurance, the insured under this contract shall remain liable to the insurant under the principal contract of insurance for the payment of insurance compensation or the insurance coverage.
4. The subsequent conclusion of two or several contracts of reinsurance shall be permitted.
Article 858. Mutual Insurance
1. Citizens and legal persons may insure their property and other property interests specified in Article 819(2) of this Code on a mutual basis by means of combining of means, necessary for this, in mutual insurance companies.
2. The mutual insurance companies shall effectuate the insurance of property and other property interests of their members and shall be noncommercial organizations, except for the companies specified in Clause 5 of this Article.
The peculiarities of the legal status of mutual insurance companies and the conditions of their activity shall be determined in accordance with the legislation.
3. Insurance of property and property interests of their members by mutual insurance companies shall be effectuated directly on the basis of membership unless the constituent documents of the company provide for the conclusion of contracts of insurance in these instances.
The rules provided for by this Chapter shall apply to relations, concerning the insurance, between a mutual insurance company and its members, unless otherwise provided by the legislation, constituent documents of the respective company, or rules of insurance established by such company.
4. The effectuation of obligatory insurance by means of mutual insurance shall be permitted in the instances provided for by the legislation.
5. A mutual insurance company may effectuate, as insurer, the insurance of the interests of persons who are not the members of the company, if such insurance activity is provided for by its constituent documents, the company is formed in the form of a commercial organization, has a special permit (license) for the effectuation of insurance, and meets other requirements established by the legislation.
The insurance of the interests of persons who are not members of a mutual insurance company shall be effectuated by the company under contracts of insurance in accordance with the rules provided for by this Chapter.
Article 859. Obligatory State Insurance
1. For the purpose of ensuring the public interests of citizens and the interests of the state, obligatory state insurance of the life, health, and property of state employees of determined categories may be established by the legislation.
Obligatory state insurance shall be effectuated at the expense of means allotted for these purposes from the respective budget to the state bodies and bodies of local administration and self-government (insurants).
2. Obligatory state insurance shall be effectuated directly on the basis of the legislation concerning such insurance or on the basis of contracts of insurance concluded by the insurers and insurants in accordance with existing procedure.
3. Obligatory state insurance shall be paid for by the insurers in the amount determined by the legislation concerning such insurance.
4. The rules provided for by this Chapter shall apply to obligatory state insurance unless otherwise provided by the legislation concerning such insurance and does not arise from the essence of the respective relations concerning the insurance.
Article 860. Application of General Rules on Insurance to Special Types of Insurance
The rules provided for by this Chapter shall apply to relations with regard to the insurance of foreign investments against noncommercial risks, marine insurance, medical insurance, and insurance of pensions, insofar as not otherwise established by legislation on these types of insurance.
CHAPTER 49
Commission
Article 861. Contract of Commission
1. Under a contract of commission one party (the attorney) shall undertake to perform, in the name of and at the expense of another person (the principal), determined legal actions. The rights and duties with regard to the transaction concluded by the attorney shall arise directly for the principal.
2. A contract of commission may be concluded with or without a specification of the period during which the attorney has the right to act in the name of the principal.
Article 862. Remuneration of Attorney
1. The principal shall be obliged to pay remuneration to the attorney if this is provided for by the legislation, or the contract of commission.
In instances when a contract of commission is connected with the effectuation of entrepreneurial activity by both parties or one of them, the principal shall be obliged to pay remuneration to the attorney unless otherwise provided by the contract.
2. In the absence, in a contract of commission for compensation, of conditions concerning the amount of remuneration or the procedure for the payment thereof, the remuneration shall be paid after the performance of the commission in the amount determined in accordance with Article 394(3) of this Code.
The attorney acting as a commercial representative (Article 185(1)) shall have the right in accordance with Article 340 of this Code to retain things, situated with him, which are subject to transfer to the principal, as security for his demands under the contract of commission.
Article 863. Performance of Commission in Accordance with Instructions of Principal
1. An attorney shall be obliged to perform the commission given to him in accordance with the instructions of the principal. The instructions of the principal must be lawful, practicable, and specific.
2. An attorney shall have the right to deviate from instructions of the principal if under the circumstances of the case this is necessary in the interests of the principal and the attorney could not inquire the principal in advance or did not receive a reply to his enquiry within a reasonable period. An attorney shall be obliged to inform the principal about deviations committed as soon as notice became possible.
3. The right to deviate, in the interests of the principal, from his instructions without a preliminary enquiry concerning such deviations, may be granted to an attorney acting as a commercial representative (Article 185(1)). In this event the commercial representative shall be obliged, within a reasonable period to inform the principal about deviations committed, unless otherwise provided by the contract of commission.
Article 864. Duties of Attorney
An attorney shall be obliged to:
1) personally perform the commission given to him, except for instances specified in Article 866 of this Code;
2) give to the principal, at his demand, all information concerning the course of the performance of the commission;
3) transfer to the principal without delay everything received under the transactions concluded in performance of the commission;
4) upon the performance of the commission or in the event of the termination of the contract of commission before the performance thereof, return without delay to the principal the power of attorney, the period of operation of which has not lapsed, and submit a report with documents of justification appended, if this is required according to the conditions of the contract or the character of the commission.
Article 865. Duties of Principal
1. The principal shall be obliged to issue a power(s) of attorney to the attorney for the performance of legal actions provided for by the contract of commission, except for instances provided for by the second part of Article 183(1) of this Code.
2. The principal shall be obliged, unless otherwise provided by the contract, to compensate the attorney for expenses incurred, and provide the attorney with the means necessary for the performance of the commission.
3. The principal shall be obliged without delay to accept from the attorney everything performed by him in accordance with the contract of commission.
4. The principal shall be obliged to pay remuneration to the attorney if in accordance with Article 862 of this Code the contract of commission is to be compensated.
Article 866. Transfer of Performance of Commission
l. An attorney shall have the right to transfer the performance of a commission to another person (deputy) only in the instances and on the conditions provided for by Article 187 of this Code.
2. The principal shall have the right to reject the deputy chosen by the attorney.
3. If a possible deputy of the attorney is specified in the contract of commission, the attorney shall not be liable either for choice of the deputy or for the carrying out the affairs by him.
If the right of the attorney to transfer performance of a commission to another person has not been provided for in the contract, or has been provided for but the deputy is not specified therein, the attorney shall be liable for the choice of the deputy.
Article 867. Termination of Contract of Commission
1. A contract of commission shall be terminated as a consequence of:
1) revocation of the commission by the principal;
2) refusal of the attorney;
3) death of the principal or attorney, deeming either of them to lack active legal capacity, having limited active legal capacity, or to be missing.
2. The principal shall have the right to revoke a commission, and the attorney shall have the right to renounce it, at any time. An agreement concerning the waiver of this right shall be void.
3. A party who has repudiated a contract of commission providing for the actions of an attorney as a commercial representative must inform the other party about the termination of the contract not later than thirty days in advance unless a longer period has been provided for by the contract.
In the event of the reorganization of a legal person which is a commercial representative, the principal shall have the right to revoke the commission without such prior notice.
Article 868. Consequences of Termination of Contract of Commission
1. If a contract of commission is terminated before the commission is performed by the attorney in full, the principal shall be obliged to compensate the attorney for the costs incurred by him when performing the commission, and when remuneration was due to the attorney, also to pay remuneration to him commensurate with the work fulfilled by him. This rule shall not apply to the performance by the attorney of the commission after he knew or should have known about the termination of the commission.
2. The revocation of the commission by the principal shall not be grounds for compensation of losses due to the attorney by the termination of the contract of commission, except for instances of termination of the contract providing for the actions of an attorney as a commercial representative.
3. The refusal of the attorney to perform the commission of the principal shall not be grounds for the compensation of losses caused to the principal by the termination of the contract of commission, except for instances of the refusal of an attorney in conditions when the principal is deprived of the possibility to ensure his interests otherwise, and also of the refusal of the performance of the contract providing for actions of an attorney as a commercial representative.
Article 869. Duties of Heirs of Attorney and Liquidator of Legal Person Which is Attorney
In the event of the death of an attorney, his heirs shall be obliged to notify the principal about the termination of the contract of commission and take measures necessary in order to protect the property of the principal, in particular, to preserve his things and documents, and then to transfer this property to the principal.
The same duty shall lie on the liquidator of a legal person which is an attorney.
CHAPTER 50
Actions in Another's Interest Without Commission
Article 870. Conditions of Actions in Another's Interest
1. Actions without a commission, other instruction, or consent of the interested person promised in advance for the purpose of preventing harm to his person or property, performance of his obligation or in his other not unlawful interests (actions in another's interest) must be performed on the ground of the obvious advantage or benefit and intentions, actual or probable, of the interested person, and with the necessary concern and circumspection.
2. The rules provided for by this Chapter shall not apply to actions in the interest of other persons, performed by state bodies, bodies of local administration and self-government, for which such actions are one of the purposes of their activity.
Article 871. Notification of Interested Person Concerning Actions in His Interest
1. The person acting in another's interest shall be obliged at the first opportunity to notify the interested person thereof and await his decision within a reasonable period concerning approval or disapproval of the actions undertaken, if such waiting does not entail serious damage for the interested person.
2. It shall not be required to specially notify the interested citizen about actions in his interest if such actions are undertaken in his presence.
Article 872. Consequences of Approval by Interested Person of Actions in His Interest
If a person, in whose interest actions are undertaken without his commission, approves these actions, the rules concerning the contract of commission or other contract, corresponding to the character of the actions undertaken, even if approval was oral, shall apply to relations of the parties thereafter.
Article 873. Consequences of Non-approval by Interested Person of Actions in His Interest
1. Actions in another's interest, performed after it became known to he who performed these actions that they are not approved by the interested person, shall not entail for the latter any duties either with respect to those actions performed or with respect to third persons.
2. Actions for the purpose of preventing danger for the life of a person who has turned out to be in danger shall be permitted also against the will of this person; performance of a duty of maintaining someone shall be permitted against the will of he on whom this duty lies.
Article 874. Compensation of Losses to Person Who Acted in Another's Interest
1. Necessary expenses and other real damage incurred by the person who acted in another's interest in accordance with the rules provided for by this Chapter shall be subject to compensation by the interested person, except for expenses which were caused by the actions specified in Article 873(1) of this Code.
The right to compensation of necessary expenses and other real damage shall also be preserved when the actions in another's interest did not lead to the result presupposed. However, in the event of the prevention of damage to the property of another person the amount of compensation must not exceed the value of this property.
2. Expenses and other losses of the person who acted in another's interest, incurred by him in connection with actions, which were undertaken after receiving the approval of the interested person (Article 872), shall be compensated according to the rules on the contract of the corresponding type.
Article 875. Remuneration for Actions in Another's Interest
The person whose actions in another's interest led to a positive result for the interested person shall have the right to obtain remuneration if such right is provided for by the legislation or agreement with the interested person.
Article 876. Consequences of Transaction in Another's Interest
Duties with regard to a transaction concluded in another's interest shall pass to the person in whose interest it was concluded on condition of the approval by him of this transaction and if the other party does not raise objections to such transfer or, when concluding the transaction, the other party knew or should have known that the transaction was concluded in another's interest.
In the event of the transfer of duties under this transaction to the person in whose interests it was concluded, the rights with regard to this transaction must also be transferred to the latter.
Article 877. Unfounded Enrichment as Consequence of Actions in Another's Interest
If actions not immediately directed to ensuring the interests of another person, including those in an instance when the person who performed them mistakenly presupposed that he acts in his own interest, led to the unfounded enrichment of the other person, the rules provided for by Chapter 59 of this Code shall apply.
Article 878. Compensation of Harm Caused by Actions in Another's Interest
Relations with regard to compensation of harm caused by actions in another's interest to the interested person or to third persons shall be regulated by the rules provided for by Chapter 58 of this Code.
Article 879. Report of Person Who Acted in Another's Interest
The person who acted in another's interest shall be obliged to submit to the person in whose interests such actions were effectuated a report specifying the revenues received, expenses incurred and other losses.
CHAPTER 51
Commission Body
Article 880. Contract of Commission Body
1. Under a contract of commission body, one party (commission agent) shall undertake, on behalf of another party (committent), to conclude for remuneration one or several transactions in his own name, but at the expense of the committent.
The commission agent shall acquire the rights and become obliged with regard to a transaction concluded by the commission agent with a third person, even though the committent was named in the transaction or entered into direct relations with the third person in regard to performance of the transaction.
2. A contract of commission body may be concluded for a specified period or without specifying the period of its operation, with or without specifying the territory of the performance thereof, with or without the obligation of the committent not to grant to third persons the right to conclude a transaction in his interests and at his expense, the conclusion of which has been entrusted to the commission agent, and with or without conditions concerning the assortment of goods which are the subject of the commission body.
3. The peculiarities of individual types of commission body contract may be provided for by the legislation.
Article 881. Commission Body Remuneration
l. The committent shall be obliged to pay remuneration to the commission agent, and in the event the commission agent has assumed the guaranty for performance of the transaction by a third person (del credere), also additional remuneration in the amount and in accordance with the procedure established in the contract of commission body.
If the amount of remuneration or the procedure for the payment thereof has not been provided for by the contract and the amount of remuneration can not be determined from the conditions of the contract, the remuneration shall be paid after the performance of the contract of commission body in the amount determined in accordance with Article 394(3) of this Code.
2. If the contract of commission body was not performed for reasons dependent upon the cofnmittent, the commission agent shall retain the right to the commission body remuneration, and also to compensation for expenses incurred.
Article 882. Performance of Commission Body Commission
A commission agent shall be obliged to perform the commission assumed on the conditions most advantageous for the committent in accordance with the instructions of the committent, and in the absence of such instructions in the contract of commission body, in accordance with the requirements commonly presented.
In an instance when the commission agent has concluded a transaction on conditions more advantageous than those which were specified by the committent, the additional advantage shall be divided between the committent and the commission agent equally unless otherwise provided by agreement of the parties.
Article 883. Liability for Failure to Perform Transaction Concluded for Committent
1. The commission agent shall not be liable to the committent for the failure of a third person to perform a transaction concluded with him at the expense of the committent, except for instances when the commission agent did not act with the necessary caution in the choice of this person or assumed the guaranty for performance of the transaction (del credere).
2. In the event of the failure of a third person to perform a transaction concluded with him by the commission agent, the commission agent shall be obliged immediately to inform the committent thereof, to collect the necessary evidences, and also, at the demand of the committent, to transfer rights to him regarding such transaction in compliance with the rules concerning the cession of a demand (Articles 353-357, 359, 360).
3. The cession of rights to the committent with regard to a transaction on the basis of Clause 2 of this Article shall be permitted irrespective of the agreement of the commission agent with the third person prohibiting or limiting such cession. This shall not relieve the commission agent from liability to the third person in connection with the cession of the right in violation of the agreement on the prohibition or limitation thereof.
Article 884. Sub-Commission Body
1. Unless otherwise provided by the contract of commission body, the commission agent shall have the right for the purpose of performance of this contract to conclude a contract of sub-commission body with another person, while remaining liable for the actions of the sub-commission agent to the committent.
Under the contract of sub-commission body, the commission agent shall acquire the rights and duties of the committent with respect to the sub-commission agent.
2. Until the termination of the contract of commission body, the committent shall not have the right without the consent of the commission agent to enter into direct relations with the sub-commission agent, unless otherwise provided by the contract of commission body.
Article 885. Deviation from Instructions of Committent
1. The commission agent shall have the right to deviate from the instructions of the committent if under the circumstances of the case this is necessary in the interests of the committent and the commission agent could not ask the committent in advance and did not receive a reply to his enquiry within a reasonable period. The commission agent shall be obliged to inform the committent about the deviations committed as soon as notification becomes possible.
The right to deviate from his instructions without prior enquiry may be granted to the commission agent acting as an entrepreneur. In this event the commission agent shall be obliged within a reasonable period to inform the committent about the deviations committed, unless otherwise provided by the contract of commission body.
2. A commission agent who has sold property at a price lower than agreed with the committent shall be obliged to compensate the latter for the difference unless it is proved that he had no possibility to sell the property at the agreed price and the sale for a lower price prevented more losses. In an instance when the commission agent was obliged to ask the committent in advance, the commission agent also must prove that he had no possibility to receive in advance the consent of the committent for the deviation from his instructions.
3. If the commission agent purchased property at a price higher than agreed with the committent, the committent, not wishing to accept such purchase, shall be obliged to declare this to the commission agent within a reasonable period upon receipt of notification thereof concerning the conclusion of a transaction with a third person. Otherwise, the purchase shall be deemed to be accepted by the committent.
If the commission agent notified that he accepts the difference in price at his own expense, the committent shall not have the right to repudiate the transaction concluded for him.
Article 886. Rights to Things Which Are Subject of Commission Body
1. Things received by the commission agent from the committent or acquired by the commission agent at the expense of the committent shall be the ownership of the latter.
2. The commission agent shall have the right in accordance with Article 340 of this Code to retain things, which are at his disposal and which are subject to transfer to the committent or to the person specified by the committent, to secure his demands under the contract of commission body.
In the event the committent is declared to be economically insolvent (bankrupt), the said right of the commission agent shall terminate, and his demands against the committent within the limits of the value of things which he withheld shall be satisfied in accordance with Article 340 of this Code equally with the demands secured by a pledge.
Article 887. Satisfaction of Demands of Commission Agent from Amounts Due to Committent
A commission agent shall have the right in accordance with Article 340 of this Code to retain amounts due to him under the contract of commission body from all the amounts received by him on the account of the committent. However, the creditors of the committent who enjoy preference with respect to priority of satisfaction of their demands to the pledgeholders shall not be deprived of the right to satisfaction of these demands from the amounts withheld by the commission agent.
Article 888. Liability of Commission Agent for Loss, Shortage, or Damage to Property of Committent
1. A commission agent shall be liable to the committent for loss, shortage, or damage to the property of the committent being in his disposal.
2. If, at accepting by the commission agent, the property sent by the committent or the property which comes to the commission agent for the committent proves to be damaged, or there is shortage of this property, and this damage or shortage can be revealed by visual inspection, or damage has been caused by someone to the property of the committent, being in disposal of the commission agent, the commission agent shall be obliged to take measures for the protection of the rights of the committent, to gather the necessary evidences, and to inform the committent immediately.
3. A commission agent who has not insured property of the committent being in his disposal, shall be liable therefor to this person only in instances when the committent instructed him to insure the property at the expense of the committent or the insurance of this property by the commission agent has been provided for by the contract of commission body.
Article 889. Report of Commission Agent
The commission agent shall be obliged to submit a report to the committent with regard to the performance of a commission and to transfer to him everything obtained under the contract of commission body. The committent who has objections with regard to the report must present these objections to the commission agent within thirty days from the date of receipt of the report, unless another period has been established by agreement of the parties. Otherwise, in the absence of another agreement, the report shall be considered to be accepted.
Article 890. Acceptance by Committent of That Performed Under the Contract of Commission Body
The committent shall be obliged to:
1) accept from the commission agent everything obtained under the contract of commission body;
2) inspect the property acquired for him by the commission agent and notify the latter without delay about the defects revealed in this property;
3) relieve the commission agent from obligations assumed by him to a third person with regard to the performance of the commission body commission.
Article 891. Compensation of Expenses for Performance of Commission Body Commission
The committent shall be obliged, in addition to payment of the commission body remuneration, and in respective instances also additional remuneration for del credere, to compensate the commission agent for amounts expended by him for performance of the commission body commission.
The commission agent shall not have the right to compensation of expenses for the storage of property of the committent being in his disposal, unless otherwise established in a legislation or by the contract of commission body.
Article 892. Termination of Contract of Commission Body
A contract of commission body shall terminate as a consequence of:
1) refusal of the committent to perform the contract;
2) refusal of the commission agent to perform the contract in instances provided for by the legislation or the contract;
3) death of the commission agent, deeming him to lack active legal capacity, limited active legal capacity, or to be missing;
4) deeming of an individual entrepreneur who is a commission agent to be insolvent (bankrupt).
In the event a commission agent is declared to be insolvent (bankrupt), his rights and duties with regard to transactions concluded by him for the committent in performance of the instructions of the latter shall pass to the committent.
Article 893. Revocation of Commission Body Commission by Committent
l. The committent shall have the right at any time to refuse performance of the contract of commission body, having revoked the commission given to the commission agent. The commission agent shall have the right to demand compensation of losses caused by the revocation of the commission.
2. In an instance when the contract of commission body was concluded without an indication of the period of its operation, the committent must inform the commission agent about the termination of the contract not later than thirty days in advance unless a longer period of notification has been provided for by the contract.
In this event the committent shall be obliged to pay remuneration to the commission agent for transactions concluded by him before the termination of the contract, and also to compensate the commission agent for expenses incurred by him before the termination of the contract.
3. In the event of the revocation of the commission, the committent shall be obliged within the period established by the contract of commission body, and if such period has not been established, immediately to dispose of his property being within the jurisdiction of the commission agent. If the committent does not fulfill this duty, the commission agent shall have the right to hand over the property for storage at the expense of the committent or to sell it at the price as advantageous as possible for the committent.
Article 894. Refusal of Commission Agent to Perform Contract of Commission Body
1. A commission agent shall not have the right, unless otherwise provided by the contract of commission body, to refuse the performance thereof, except for an instance when the contract was concluded without an indication of the period of its operation. In this event the commission agent must inform the committent about the termination of the contract not later than thirty days in advance, unless a longer period of notification has been provided for by the contract.
A commission agent shall be obliged to take measures necessary in order to ensure the preservation of the property of the committent.
2. The committent must dispose of his property being within the jurisdiction of the commission agent within fifteen days from the date of receipt of the notification about the refusal of the commission agent to perform the commission, unless another period has been established by the contract of commission body. If the committent does not fulfill this duty, the commission agent shall have the right to hand over the property for storage at the expense of the committent or to sell it at the price as advantageous as possible for the committent.
3. Unless otherwise provided by the contract of commission body, the commission agent who has refused to perform a commission shall retain the right to commission body remuneration for the transactions concluded by him before termination of the contract, and also to compensation for expenses incurred by him up to that time.
CHAPTER 52
Trust Management of Property
Article 895. Contract of Trust Management of Property
1. Under a contract of trust management of property one party (founder of management) shall transfer to the other party (trustee manager) property in trust management for a determined period, and the trustee manager shall undertake, for remuneration, to effectuate the management of this property in the interests of the founder of management or person specified therein (beneficiary).
The transfer of property to trust management shall not entail the transfer of the right of ownership thereto to the trustee manager.
2. In carrying out trust management of property, the trustee manager shall have the right to perform with respect to this property in accordance with the contract of trust management any legal and real actions in the interests of the founder of management or the beneficiary.
Limitations with respect to individual actions relating to the trust management of property may be provided for by the legislation or contract.
3. Transactions with property transferred to trust management the trustee manager shall conclude in his own name, indicating in so doing that he acts as such manager. This condition shall be considered to be complied with if when performing actions not requiring written formalization the other party has been informed about the performance thereof by the trustee manager in this capacity, and in written documents by making the mark "Д.У." (trust management) after the name of the trustee manager.
In the absence of an indication concerning the action of the trustee manager in this capacity, the trustee manager shall become obliged to third persons personally and shall be liable to them only with the property belonging to him.
Article 896. Object of Trust Management
1. Enterprises and other property complexes, individual objects relegated to immovable property, securities, rights certified by paperless securities, exclusive rights, and other property may be an object of trust management.
2. Money may not be a separate object of trust management, except for instances provided for by the legislation.
3. Property in economic management or operative administration may not be transferred to trust management. The transfer to trust management of property in economic management or operative administration shall be possible only after the liquidation of the legal person in whose economic management or operative administration the property is situated, or after the termination of the right of economic management or operative administration of property and transferring thereof into the possession of the owner on other grounds provided for by the legislation.
Article 897. Founder of Management
The owner of property, and in instances provided for by Article 909 of this Code, another person, shall be the founder of trust management.
Article 898. Trustee Manager
1. An individual entrepreneur or commercial organization, except for a unitary enterprise, may be a trustee manager.
In instances when the trust management of property is effectuated on the grounds provided for by the legislation, the trustee manager may be a citizen who is not an entrepreneur or a noncommercial organization, except for an institution.
2. Excluded.
3. The trustee manager may not be a beneficiary under the contract of trust management of property.
Article 899. Significant Conditions of Contract of Trust Management of Property
1. There must be specified in the contract of trust management of property:
1) subject of the agreement, including the characteristic of property transferred to the trust management, and value of this property;
2) the limits of using the property by the trustee manager;
3) the name of the legal person or the name of the citizen in whose interests the management of the property shall be effectuated (the founder of the management or the beneficiary);
4) the amount and form of remuneration to the manager, if payment of remuneration has been provided for by the contract;
5) the period of operation of the contract.
2. The contract of trust management of property shall be concluded for a period not exceeding five years. For individual types of property transferred in trust management other maximum periods for which the contract may be concluded may be established by the legislation.
In the absence of the statement by one of the parties concerning the termination of the contract regarding the end of the period of its operation, it shall be considered to be extended for the same period and on the same conditions as were provided for by the contract.
Article 900. Form of Contract of Trust Management of Property
1. A contract of trust management of property must be concluded in written form.
2. A contract of trust management of immovable property must be concluded in the form provided for the contract of sale of immovable property. The transfer of immovable property in trust management shall be subject to state registration.
3. The failure to comply with the form of the contract of trust management of property or the requirement concerning its state registration shall entail the invalidity of the contract.
Article 901. Separation of Property in Trust Management
1. Property transferred in trust management shall be solitary from other property of the founder of the management, and also from property of the trustee manager. This property shall be reflected in a separate balance sheet of the trustee manager and the separate account shall be kept with regard to it. A separate bank account shall be opened in order to settle accounts with regard to activity connected with trust management.
2. Levy of execution for debts of the founder of the management on property transferred by him in trust management shall not be permitted, except for the economic insolvency (bankruptcy) of this person. In the event of bankruptcy of the founder of the management, the trust management of this property shall terminate and it shall be included in the bankruptcy assets.
Article 902. Transfer in Trust Management of Property Encumbered by Pledge
1. The transfer of pledged property to trust management shall not deprive the pledgeholder of the right to levy execution on this property.
2. The trustee manager must be warned that the property transferred to him in trust management is encumbered by a pledge. If the trustee manager did not know and should not have known that the property, which is transferred to him in trust management, is encumbered by a pledge, he shall have the right to demand in court the dissolution of the contract of trust management of property and payment of the remuneration due to him under the contract.
Article 903. Rights and Duties of Trustee Manager
1. The trustee manager shall effectuate, within the limits provided for by the legislation and the contract of trust management of property, the powers of the owner with respect to property transferred in trust management. The disposition of immovable property shall be effectuated by the trustee manager in the instances provided for by the contract of trust management.
2. The rights acquired by the trustee manager as a result of actions relating to the trust management of property shall be included in the property transferred in trust management. The duties which arise as a result of such actions of the trustee manager shall be performed at the expense of this property.
3. In order to defend the rights to property in trust management the trustee manager shall have the right to demand any elimination of a violation of his rights (Articles 282, 283, 285, and 286).
4. The trustee manager shall submit to the founder of the management and beneficiary a report concerning his activity within the periods and in accordance with the procedure established by the contract of trust management of property.
Article 904. Transfer of Trust Management of Property
1. The trustee manager shall effectuate trust management of property personally, except for instances provided for by Clause 2 of this Article.
2. The trustee manager may charge another person to perform actions in the name of the trustee manager which are necessary for the management of the property if he is authorized to do so by the contract of trust management of the property, or has received the consent of the founder to do so in written form, or is forced to do so by virtue of circumstances in order to ensure the interests of the founder of the management or beneficiary and does not have the possibility to receive instructions of the founder of the management within a reasonable period.
The trustee manager shall be liable for actions of the entrusted person, chosen by him, as though for his own.
Article 905. Liability of Trustee Manager
l. The trustee manager who has effectuated the trust management of property in the interests of the beneficiary or founder of the management without due concern, shall compensate the beneficiary for lost advantage for the period of trust management of the property, and shall compensate the founder of the management for losses caused by the loss of or damage to the property, taking into account its natural wear and tear, and also for lost advantage.
The trustee manager shall bear liability for losses caused unless he would prove that these losses occurred as a consequence of force majeure or the actions of the beneficiary or the founder of the management.
2. Obligations relating to a transaction concluded by the trustee manager in excess of the powers granted to him or in violation of the limitations established for him shall be borne by the trustee manager personally. If third persons participating in the transaction did not know and should not have known about the exceeding of powers or the limitations established, the obligations which arose shall be subject to performance in accordance with the procedure established by Clause 3 of this Article. The founder of the management may in this event demand of the trustee manager compensation for losses incurred by him.
3. Debts relating to obligations which arose in connection with trust management of property shall be paid at the expense of this property. In the event this property is insufficient, execution may be levied on the property of the trustee manager, and if his property also is insufficient, on the property of the founder of the management not transferred to trust management.
4. The contract of trust management of property may provide for the granting of a pledge by the trustee manager to secure compensation of losses which may be caused to the founder of the management or to the beneficiary by the improper performance of the contract of trust management.
Article 906. Remuneration of Trustee Manager
The trustee manager shall have the right to remuneration provided for by the contract of trust management of property, and also to compensation of necessary expenses made by him in the trust management of property at the expense of revenues from the use of this property.
Article 907. Termination of Contract of Trust Management of Property
1. A contract of trust management of property shall be terminated as a consequence of:
1) the death of a citizen who is a beneficiary, or the liquidation of the legal person being the beneficiary, unless otherwise provided by the contract;
2) the refusal of the beneficiary to receive advantages under the contract, unless otherwise provided by the contract;
3) the death of the citizen who is the trustee manager, his being deemed to lack active legal capacity, to have limited active legal capacity, or to be missing, and also his being deemed to be insolvent (bankrupt), or establishing a prohibition for the trustee manager to be engaged in the entrepreneurial activity in the instances provided by this Code and other acts of legislation;
4) the refusal of the trustee manager or founder of the management to effectuate the trust management in connection with the impossibility of the trustee manager carrying out personally the trust management of the property;
5) the repudiation of the contract by the founder of the management for other reasons than those specified in Clause 4 of this Clause, on condition of the payment of the remuneration, stipulated by the contract, to the trustee manager;
6) the deeming of the citizen, who is the founder of the management, to be insolvent (bankrupt).
2. In the event of the repudiation by one party of the contract of trust management of property, the other party must be notified about this three months before the termination of the contract unless another period of notification is provided by the contract.
3. In the event of the termination of a contract of trust management the property in trust management shall be transferred to the founder of the management unless otherwise provided by the contract.
Article 908. Transfer of Securities to Trust Management
1. In the event of the transfer of securities to trust management, the combining of securities being transferred to trust management by different persons may be provided for.
2. The powers of the trust manager with regard to the disposition of securities shall be determined in the contract of trust management.
Under the contract of trust management of securities, monetary means may be transferred to the trustee manager for acquiring the securities and management thereof.
3. The peculiarities of the trust management of securities shall be determined by the legislation.
4. The rules of this Article shall apply respectively to the rights certified by paperless securities.
Article 909. Trust Management of Property on Grounds Provided for by the Legislation
1. Trust management of property also may be founded:
1) as a consequence of the necessity for permanent management of the property of a ward in the instances provided for by Articles 36 and 39 of this Code;
2) on the basis of a will in which the executor of the will has been appointed;
3) on other grounds provided for by the legislation.
2. The rules provided for by this Chapter shall apply respectively to relations concerning the trust management of property founded on the grounds specified in Clause 1 of this Article unless otherwise provided by the legislation or does not arise from the essence of such relations.
In instances when the trust management of property is founded on the grounds specified in Clause 1 of this Article, the rights of the founder of the management provided for by the rules of this Chapter shall belong respectively to the trusteeship and guardianship body, the executor of the will, or another person specified in a legislation.
CHAPTER 53
Complex Entrepreneurial License (franchise)
Article 910. Contract of Complex Entrepreneurial License (Franchise)
1. Under a contract of complex entrepreneurial license (franchise) (hereinafter referred to as the contract of franchise), one party (right holder) shall undertake to grant to the other party (user), for remuneration, for a period or without specifying a period, the right to using of in the entrepreneurial activity of the user the complex of exclusive rights which belong to the right holder, including the right to using of the firm name and non-disclosed information, including the trade secrets (know-how) and other objects of intellectual property (trademark, service mark, and so forth), provided by the contract of franchise.
2. A contract of franchise shall provide for the use of the complex of exclusive rights, specified in Clause 1 of this Article, within the determined amount (with specifying of the minimum and(or) maximum amount of use), with or without specifying the territory of using of these rights for the determined kinds of entrepreneurial activity.
3. Commercial organizations and individual entrepreneurs may be parties to a contract of franchise.
4. Remuneration under a contract of franchise may be paid by the user to the right holder in the form of fixed lumpsum or periodic payments, deductions from proceeds, or in other form provided for by the contract of franchise.
Article 9101. Form and Registration of Contract of Franchise
1. A contract of franchise must be concluded in written form.
2. A contract of franchise is subject to registration in the patent body in accordance with the procedure established by the legislation.
Article 9102. Complex Entrepreneurial Sublicence
1. The right of the user to authorize other persons to use the complex of exclusive rights, granted to the user, or part of this complex on conditions agreed by the user with the right holder or determined in the contract of franchise (complex entrepreneurial sublicence) may be provided for by the contract of franchise. The duty of the user to grant the specified number of complex entrepreneurial sublicences within a specified period may be provided for by the contract of franchise.
2. A contract of complex entrepreneurial sublicence may not be concluded for a longer period than the contract of franchise on the basis of which it was concluded.
3. Termination of the contract of franchise terminates a contract of complex entrepreneurial sublicence.
4. The user shall bear liability to the right holder for the actions of secondary users unless otherwise provided by the contract of franchise.
5. The rules concerning the contract of franchise provided for by this Chapter shall apply to the contract of complex entrepreneurial sublicence unless otherwise provided by the legislation.
Article 9103. Duties of Right Holder
1. The right holder shall be obliged to:
transfer to the user technical and commercial documentation and other information necessary to the user in order to exercise the exclusive rights granted to him under the contract of franchise, and also instruct the user and his employees with regard to questions connected with the exercise of these rights:
issue to the user the licenses, provided for by the contract of franchise, for the right of using the objects of the intellectual property, specified in Article 910(1) of this Code, ensuring the formalization thereof in the established procedure.
2. Unless otherwise provided by the contract of franchise, the right holder shall be obliged to:
render permanent technical and consultative assistance to the user, including assistance in training and raising the level of skills of the staff;
control the quality of goods (work, services) being produced (fulfilled, rendered) by the user on the basis of the contract of franchise.
Article 9104. Duties of User
Taking into consideration the character and peculiarities of the activity being effectuated by the user under the contract of franchise, the user shall be obliged to:
use, when carrying out the activity provided for by the contract of franchise, the firm name of the right holder by the means specified in the contract;
ensure the conformity of the quality of the goods produced, work fulfilled, or services rendered on the basis of the contract of franchise, to the quality of similar goods, work, or services being produced, fulfilled, or rendered by the right holder itself;
comply with the instructions and directions of the right holder aimed at ensuring the conformity of the character, means, and conditions of using the complex of exclusive rights to its using by the right holder, including the instructions concerning the external and internal appearance of the commercial premises to be used by the user when exercising the exclusive rights granted to him under the contract;
render to purchasers (customers) all additional services which they might count upon in acquiring (ordering) the goods (works, services) from the right holder itself;
not divulge the non-disclosed information, obtained from the right holder, including the trade secrets (know-how);
issue the stipulated quantity of complex entrepreneurial sublicences, if such duty is provided for by the contract;
inform the purchasers (customers), using the most obvious means for them, that the user is using the firm name, trademark, service mark, or other means of individualization of participants of the civil turnover, goods, works, or services on the grounds of the contract of franchise.
Article 9105. Limitation of Rights of Parties under Contract of Franchise
1. Limitations of the right of the parties may be provided for by the contract of franchise by specifying:
the obligation of the right holder not to grant to other persons similar complexes of exclusive rights for the use thereof on the territory allocated for the user or refrain from own similar activity on this territory;
the obligation of the user not to compete with the right holder on the territory to which the operation of the contract of franchise extends with respect to entrepreneurial activity effectuated by the user with the use of the exclusive rights belonging to the right holder;
the refusal of the user to obtain, under the contracts of franchise, similar rights from competitors (potential competitors) of the right holder;
the obligation of the user to agree with the right holder the location of the commercial premises to be used when exercising the exclusive rights granted under the contract of franchise, as well as the external and internal appearance thereof.
2. Limitations of the right of the parties under the contract of franchise may be deemed by the court to be invalid upon the demand of the anti-monopoly body or other interested person, if these limitations, taking into consideration the condition of the goods market and economic status of the parties, contradict to the anti-monopoly legislation.
Article 9106. Liability of Right Holder Relating to Requirements Presented to User
1. The right holder shall bear subsidiary liability for requirements presented to the user concerning the non-compliance of the quality of the goods (works, services) being sold (fulfilled, rendered) by the user under the contract of franchise, to the quality of similar goods (works, services) being sold (fulfilled, rendered) by the right holder itself.
2. The right holder shall be liable jointly and severally with the user with regard to requirements presented to the user as the manufacturer of the products (goods).
Article 9107. Change of Contract of Franchise
1. A contract of franchise may be changed in accordance with the rules provided for by Chapter 29 of this Code.
2. Change of the contract of franchise are subject to registration in accordance with the procedure established for registration of the contracts of franchise.
3. In relations with third persons the parties to a contract of franchise shall have the right to refer to a change of the contract only from the time of registration of this change.
Article 9108. Preservation of Contract of Franchise in Force in Event of Change of Parties
1. The transfer to another person of any exclusive right whatever within the complex of exclusive rights granted to the user shall not be grounds for a change or dissolution of the contract of franchise. The new right holder shall become a party to this contract in that part of the rights and duties relating to the exclusive right transferred to the new right holder.
2. In the event of the death of the right holder, being the individual entrepreneur, and transferring his rights and duties under the contract of franchise to the heir, the contract of franchise shall terminate, unless the heir is registered within six months from the date of opening the inheritance as an individual entrepreneur in accordance with the procedure established by the legislation.
3. The exercise of the rights and performance of the duties of the deceased right holder before the acceptance of these rights and duties by the heir and before registration of the heir as an individual entrepreneur shall be effectuated by the trustee manager appointed in accordance with Chapter 52 of this Code.
Article 9109. Preservation of Contract of Franchise in Force in Event of Change of Firm Name
In the event of a change by the right holder of its firm name, the contract of franchise shall be preserved and operate with respect to the new firm name of the right holder unless the user requires the dissolution of the contract and compensation of losses. In the event of the continuation of the operation of the contract of franchise, the user shall have the right to demand commensurate reduction of the remuneration due to the right holder.
Article 91010. Consequences of Termination of Exclusive Right, Use of Which Has Been Granted Under Contract of Franchise
1. If in the period of operation of a contract of franchise the period of operation of the exclusive right, use of which was granted under this contract, has expired (except for termination of right to the firm name without replacing it by the new firm name), or such right terminated on other grounds, the contract of franchise shall continue to operate, except for provisions relating to the terminated right, and the user, unless otherwise provided by the contract, shall have the right to demand commensurate reduction of the remuneration due to the right holder.
2. In the event of the termination of the rights to the firm name without replacing it by the new firm name, operation of a contract of franchise shall terminate.
Article 91011. Dissolution of Contract of Franchise
1. The contract of franchise concluded with or without specifying the period may be dissolved in accordance with the rules of Chapter 29 of this Code.
2. Each of the parties to the contract of franchise concluded without specifying the period shall have the right at any time to repudiate the contract, having notified the other party thereof six months in advance unless a longer period has been provided for by the contract.
3. The dissolution before time of the contract of franchise concluded with a specifying of the period, and also the dissolution of the contract concluded without specifying the period, shall be subject to registration in accordance with the procedure established for registration of the contracts of franchise.
CHAPTER 54
Simple Partnership
Article 911. Contract of Simple Partnership (Contract on Joint Activity)
1. Under the contract of simple partnership (contract on joint activity), two or several persons (partners) shall undertake to combine their contributions and jointly operate without the formation of a legal person in order to obtain profit or to achieve another purpose which is not contrary to legislation.
2. Only individual entrepreneurs and(or) commercial organizations may be the parties to a contract of simple partnership concluded in order to effectuate entrepreneurial activity.
Article 912. Contributions of Partners
1. Everything that is contributed by the partner to the common cause, including money, other property, professional and other knowledge, skills and abilities, and also business reputation and business connections, shall be deemed to be the contribution of the partner.
2. The contributions of partners shall be presupposed to be equal in value unless it follows otherwise from the contract of simple partnership or real circumstances. The monetary valuation of the contribution of a partner shall be made by agreement between the partners.
Article 913. Common Property of Partners
1. The property, contributed by partners, which they possessed by right of ownership, and also the product produced as a result of joint activity and the yield and revenues obtained from such activity shall be deemed their common share ownership insofar as not otherwise established by the legislation or the contract of simple partnership or does not arise from the essence of the obligation.
The property, contributed by partners, which they possessed on the grounds which are distinct from the right of ownership (by right of economic possession, operative administration, under the contract of lease, under the contract of use of property without compensation etc.) shall be used in the interests of all partners and shall comprise, together with the property in their common ownership, the common property of the partners.
2. The bookkeeping of the common property of the partners may be entrusted by them to one of the persons participating in the contract of simple partnership.
3. The use of common property by the partners shall be effectuated by their common consent, and in the event of the failure to achieve consent, in accordance with the procedure established by a court.
4. The duties of the partners with regard to the maintenance of common property and the procedure for the compensation of expenses connected with the fulfillment of these duties shall be determined by the contract.
Article 914. Carrying out Common Affairs of Partners
1. When carrying out common affairs, each partner shall have the right to act in the name of all the partners unless it is established by the contract of simple partnership that carrying out the affairs shall be effectuated by individual participants or jointly by all the participants of the contract of simple partnership.
When carrying out the affairs jointly, the consent of all the partners shall be required for the conclusion of each transaction.
2. In relations with third persons the power of a partner to conclude a transaction in the name of all the partners shall be certified by a power of attorney issued to him by the remaining partners or by the contract of simple partnership concluded in written form.
3. In relations with third persons the partners may not refer to limitation of the rights of the partner, who has concluded the transaction, with regard to carrying out the common affairs of the partners, except for instances when the partners would prove that at the time of concluding the transaction the third person knew or should have known about the existence of such limitations.
4. The partner who has concluded a transaction in the name of all the partners with respect to which his right to conduct the common affairs of the partners was limited, or who has concluded in his own name a transaction in the interests of all the partners, may demand compensation for expenses made by him at his own expense, if there are sufficient grounds to suppose that these transactions were necessary in the interests of all the partners. The partners who incurred losses as a consequence of such transactions shall have the right to demand compensation thereof.
5. Decisions affecting the common affairs of partners shall be adopted by the partners by their common consent.
Article 915. Right of Partner to Information
Each partner shall have the right, irrespective of whether he is authorized to carry out the common affairs of the partners, to be familiarized with all of the documentation relating to carrying out the affairs. The waiver of this right or limitation thereof, including by agreement of the partners, shall be void.
Article 916. Common Expenses and Losses of Partners
The procedure for covering expenses and losses connected with the joint activity of the partners shall be determined by their agreement. In the absence of such agreement, each partner shall bear expenses and losses in proportion to the value of his contribution to the common cause.
An agreement wholly exempting any of the partners from participation in covering the common expenses or losses shall be void.
Article 917. Liability of Partners for Common Obligations
1. Unless the contract of simple partnership is connected with the effectuation of entrepreneurial activity by its participants, each partner shall be liable for common contractual obligations with all of its property in proportion to the value of its contribution to the common cause.
Partners shall be liable jointly and severally for common obligations which arose not from the contract.
2. If the contract of simple partnership is connected with the effectuation of entrepreneurial activity by its participants, the partners shall be liable jointly and severally for all common obligations irrespective of the grounds for the arising thereof.
Article 918. Distribution of Profit
The profit obtained by the partners as a result of their joint activity shall be distributed in proportion to the value of the contributions of the partners to the common cause unless otherwise provided by the contract of simple partnership or other agreement of the partners. An agreement on exemption of any of the partners from participation in the profit shall be void.
Article 919. Partition of Share of Partner at Demand of Creditor of This Partner
The creditor of a participant of the contract of simple partnership shall have the right to submit a demand concerning the partition of the debtor’s share in the common property in accordance with Article 258 of this Code.
Article 920. Termination of Contract of Simple Partnership
l. A contract of simple partnership shall be terminated as a consequence of:
1) deeming of any of the partners to lack active legal capacity, to have limited active legal capacity, or to be missing, unless the contract of simple partnership or subsequent agreement provides for the preservation of the contract in relations between the remaining partners;
2) the declaration of any of the partners to be insolvent (bankrupt), with the exception specified in Subclause 1 of this Clause;
3) the death of a partner (declaring to be deceased) or liquidation or reorganization of a legal person participating in the contract of simple partnership, unless the contract or a subsequent agreement provides for the preservation of the contract in relations between the remaining partners or replacement of the deceased partner (reorganized legal person) by his heirs (legal successors);
4) the refusal, by any of the partners, of further participation in a contract of simple partnership without specification of the period, with the exception specified in Subclause 1 of this Clause;
5) the dissolution of the contract of simple partnership concluded with a specification of the period, at the demand of one of the partners in relations between this partner and the remaining partners, with the exception specified in Subclause 1 of this Clause;
6) the expiry of the period of the contract of simple partnership;
7) the partition of the share of the partner at the demand of creditor of this partner, with the exception specified in Subclause 1 of this Clause.
2. In the event of the termination of a contract of simple partnership, the things transferred to the common possession and(or) use of the partners shall be returned to the partner who granted these things without remuneration unless otherwise provided by the agreement of the parties.
From the time of termination of a contract of simple partnership the participants thereof shall bear joint and several liability for the non-performed common obligations with respect to third persons.
The division of property in the common ownership of the partners and the common rights of demand which have arisen shall be effectuated in accordance with the procedure established by Article 255 of this Code.
A partner who has contributed an individually-determined thing to the common ownership shall have the right, in the event of the termination of the contract of simple partnership, to demand the return of this thing in a judicial proceeding, subject to compliance with the interests of the remaining partners and creditors.
Article 921. Repudiation of Contract of Simple Partnership Without Specification of Period
Declaration of repudiation by a partner of a contract of simple partnership without specification of period must be made by the partner not later than three months before the assumed withdrawal from the contract.
An agreement concerning limitation of the right to repudiate a contract of simple partnership without specification of period shall be void.
Article 922. Dissolution of Contract of Simple Partnership at Demand of Party
Together with the grounds specified in Article 420(2) of this Code, the party to a contract of simple partnership concluded with the specification of a period or with the specification of a purpose as a condition resolutive shall have the right to demand dissolution of the contract in relations between himself and the remaining partners for a justifiable reason with compensation to the remaining partners of the real damage caused by dissolution of the contract.
Article 923. Liability of Partner With Respect to Which Contract of Simple Partnership is Dissolved
In an instance when a contract of simple partnership was not terminated as a result of the declaration of one of the participants concerning repudiation of further participation therein or dissolution of the contract at the demand of one of the partners, the person whose participation in the contract has terminated shall be liable to third persons for common obligations which arose in the period of its participation in the contract as if it has remained a participant of the contract of simple partnership.
Article 924. Nontransparent Partnership
1. It may be provided by a contract of simple partnership that its existence shall not be divulged to third persons (nontransparent partnership). The rules concerning the contract of simple partnership provided for by this Chapter shall apply to such contract unless otherwise provided by this Article or does not arise from the essence of the nontransparent partnership.
2. In relations with third persons each of the participants of a nontransparent partnership shall be liable with all of its property for transactions which this partner concluded in his name in the common interests of the partners.
3. In relations between partners, the obligations which arose in the process of their joint activity shall be considered to be common.
CHAPTER 55
Public Promise of Reward
Article 925. Duty to Pay Reward
1. The person who has announced publicly the payment of monetary remuneration or the issuance of another reward (the payment of a reward) to whomever performs the lawful action specified in the announcement within the period specified therein shall be obliged to pay the promised reward to anyone who performed the respective action, in particular who found a lost thing or present the necessary information to the person who announced the reward.
2. The duty to pay the reward shall arise on condition that the promise of the reward enables it to determine the person by whom it is promised. A person who has responded to the promise shall have the right to demand written confirmation of the promise and shall bear the risk of consequences of the failure to submit this demand if it turns out in reality that the announcement concerning the reward was not made by the person specified therein.
3. If the amount was not specified in the public promise of the reward, it shall be determined by agreement with the person who promised the reward, and in the event of a dispute, by a court.
4. The duty to pay a reward shall arise irrespective of whether the respective action was performed in connection with the announcement made or irrespective thereof.
5. In instances when an action specified in an announcement was performed by several persons, the right to receive the reward shall be acquired by the person who performed the respective action first.
If the action specified in the announcement was performed by two or more persons and it is impossible to determine which of them performed the respective action first, and also if the action was performed by two or more persons simultaneously, the reward shall be divided between them equally or in another amount provided for by an agreement between them.
6. Unless otherwise provided in the announcement concerning the reward and does not arise from the character of the action specified therein, the conformity of the action fulfilled to the requirements contained in the announcement shall be determined by the person who publicly promised the reward, and in the event of a dispute, by a court
Article 926. Revocation of Public Promise of Reward
1. A person who has announced publicly the payment of a reward shall have the right in the same form to renounce this promise, except for instances when in the announcement itself the inadmissibility of a renunciation has been provided for or arises therefrom, or a determined period has been given for the performance of the action for which the reward is promised, or at the time of the announcement concerning the renunciation one or several persons, who responded, already had fulfilled the action specified in the announcement.
2. The revocation of a public promise of a reward shall not relieve the person who announced the reward from compensation of the expenses of persons who responded, incurred by them in connection with the performance of the action specified in the announcement, within the limits of the reward specified in the announcement.
CHAPTER 56
Public Competition
Article 927. Organization of Public Competition
1. A person who has announced publicly the payment of monetary remuneration or issuance of other reward (the payment of a reward) for the best fulfillment of work or achievement of other results (public competition) must pay (issue) the stipulated reward to whomever in accordance with the conditions for conducting the competition is deemed to be the winner thereof.
2. The public competition must be directed towards the achievement of some publicly useful purposes.
3. A public competition may be open when the proposal of the organizer of the competition to take part therein is addressed to all who wish to do so by means of an announcement in the press or other mass media, or be closed when the proposal to take part in the competition is sent to a specified group of persons at the choice of the organizer of the competition.
An open competition may be conditioned by the preliminary qualification of the participants thereof, when a preliminary selection of persons, who wish to take part therein, is carried out by the organizer of the competition.
4. The announcement concerning a public competition must contain at least the conditions specifying the essence of the task, the criteria and procedure for evaluating the results of the work or other achievements, the place, period, and procedure for submitting them, the amount and form of the reward, and also the procedure and periods for the announcement of the results of the competition.
5. To a public competition containing an obligation to conclude a contract with the winner of the competition, the rules provided for by this Chapter shall apply insofar as not provided otherwise by Articles 417-419 of this Code.
Article 928. Change of Conditions and Cancellation of Public Competition
1. A person who has announced a public competition shall have the right to change its conditions or to cancel a competition only during the first half of the period established for the submission of the works.
2. A notice concerning a change of the conditions or cancellation of the competition must be made by the same means as the competition was announced.
3. In the event of a change of the conditions of a competition or the cancellation thereof, the person who has announced the competition must compensate the expenses incurred by any person who fulfilled the work provided for in the announcement until it became known or should have become known to such person that the conditions of the competition changed or of the cancellation thereof.
4. If in the event of the change of the conditions of a competition or in the event of the cancellation thereof the requirements specified in Clauses 1 or 2 of this Article were violated, the person who announced the competition must pay a reward to those who fulfilled the work which satisfies the conditions specified in the announcement.
Article 929. Decision Concerning Payment of Reward
l. A decision concerning the payment of a reward must be rendered and communicated to the participants of a public competition in accordance with the procedure and within the periods established in the announcement concerning the competition.
2. If the results specified in the announcement were achieved in a work fulfilled jointly by two or more persons, the reward shall be distributed in accordance with the agreement reached between them. If such agreement is not reached, the procedure for the distribution of the reward shall be determined by a court.
Article 930. Use of Works of Science, Literature, and Art Conferred with Award
1. If the subject of a public competition consists of the creation of a work of science, literature, or art and the conditions of the competition do not provide otherwise, the person who has announced the public competition shall acquire a preferential right to conclude with the author of the work on which an award is conferred a contract concerning the use of the work with the payment to him a respective remuneration for this.
2. The person who has announced a public competition shall be obliged to return to the participants of the competition works not conferred with an award unless otherwise provided by the announcement concerning the competition and does not arise from the character of the work fulfilled.
CHAPTER 57
Conducting Games and Betting
Article 931. Demands Connected with the Organization of Games and Betting and Participation Therein
The demands of citizens and legal persons connected with the organization of games and betting or participation therein shall not be subject to judicial defense, except for the demands of persons who took part in games or betting under the influence of deceit, coercion, threat, or ill-intentioned agreement of their representative with the organizer of the games or betting, and also the demands specified in Article 932(5) of this Code.
Article 932. Conducting Lotteries, Totalizers, and Other Games by the Republic of Belarus and Administrative Territorial Units or Upon Authorization Thereof
1. Relations between the organizers of lotteries, totalizers (mutual betting), and other games based on risk (the Republic of Belarus, administrative territorial units, persons who have received a special permit (license) from an authorized state body) and the participants of the games shall be effectuated in accordance with the legislation and based on a contract.
1. In the instances provided for by the rules of the organization of the games, the contract between the organizer and the participant of the games shall be formalized by the issuance of a lottery ticket, receipt, or other document.
2. The proposal concerning the conclusion of a contract provided for by Clause 1 of this Article must include the conditions concerning the period of conducting the games and the procedure for the determination of the winnings and the amount thereof.
In the event of a refusal of the organizer of the games to conduct them within the established period, the participants of the games shall have the right to demand compensation from the organizer thereof for real damage sustained because of the cancellation or postponement of the period thereof.
4. For the persons, who in accordance with the conditions of conducting a lottery, totalizer, or other games are deemed to be winners, the winnings must be paid by the organizer of the games in the amount, form (monetary or in kind), and period provided for by the conditions of conducting the games, and if the period is not specified in these conditions, not later than ten days from the time of determining the results of the games.
5. In the event of the failure of the organizer of the games to perform the duties specified in Clause 4 of this Article, the participant who won the lottery, totalizer, or other games shall have the right to demand the payment of the winnings from the organizer of the games, and also the compensation of losses caused by a violation of the contract on the part of the organizer.
CHAPTER 58
Obligations as Consequence of Causing Harm
§ 1. General Provisions on Compensation of Harm
Article 933. General Grounds of Liability for Causing Harm
1. Harm caused to the person or property of a citizen, and also harm caused to the property of a legal person, shall be subject to compensation in full by the person who caused the harm.
The duty of compensation of harm may be placed by the law on a person who is not the causer of the harm.
The duty of the causer of harm to pay compensation to a victim above the compensation of harm may be established by the law or by a contract.
2. A person who has caused harm shall be relieved from compensation of harm if it is proved that the harm was caused not through the fault of this person. Compensation of harm in the absence of the fault of the causer of harm also may be provided for by the law.
3. Harm caused by lawful actions shall be subject to compensation in the instances provided for by the legislation.
Compensation of harm may be refused if the harm was caused at the request or with the consent of the victim, and the actions of the causer of the harm do not violate moral principles of society.
Article 934. Preventing of Causing Harm
1. The danger of causing harm in the future may be grounds for a suit concerning the prohibition of the activity creating such a danger.
2. If the harm caused is the consequence of the operation of an enterprise, installation, or other production activity which continues to cause harm or threatens new harm, a court shall have the right to oblige the defendant, in addition to compensation of harm, to suspend or terminate the respective activity.
A court may reject a suit concerning the suspension or termination of the respective activity only if the suspension or termination thereof is contrary to the state or public interests. The refusal to suspend or terminate such activity shall not deprive the victim of the right to compensation of harm caused by this activity.
Article 935. Causing Harm in State of Necessary Defense
Harm caused in a state of necessary defense, unless the limits thereof were exceeded, shall not be subject to compensation.
Article 936. Causing Harm in State of Extreme Necessity
Harm caused in a state of extreme necessity, that is, in order to eliminate a danger threatening the causer of the harm himself or other persons, if this danger under the given circumstances could not be eliminated by other means, must be compensated by the person who caused the harm.
Taking into account the circumstances under which such harm was caused, a court may place the duty of compensating it on a third person in whose interests the causer of the harm acted or relieve both this third person and the causer of the harm fully or partially from compensation of the harm.
Article 937. Liability of Legal Person or Citizen for Harm Caused by Employee Thereof
1. A legal person or citizen shall compensate harm caused by an employee thereof when performing labor (employment, official) duties.
With regard to the rules provided for by this Chapter, citizens fulfilling work on the basis of a labor contract, and also citizens fulfilling work under a civil legal contract, if in so doing they acted or should have acted under the order of the respective legal person or citizen and under its control for the safe conducting of work, shall be deemed to be employees.
2. Economic partnerships and production cooperatives shall compensate harm caused by their participants (members) when the latter effectuate entrepreneurial, production, or other activity of the partnership or cooperative.
Article 938. Liability for Harm Caused by State Bodies, Bodies of Local Administration or Self-government, and Officials Thereof
Harm caused to a citizen or legal person as a result of the illegal actions (omission) of state bodies, bodies of local administration or self-government, or officials of these bodies, including harm caused as a result of the issuance of an act of a state body or body of local administration or self-government which does not correspond to the legislation, shall be subject to compensation. Harm shall be compensated at the expense, respectively, of the treasury of the Republic of Belarus or treasury of the administrative territorial units.
Article 939. Liability for Harm Caused by Illegal Actions of Bodies of Criminal Prosecution and Court
1. Harm caused to a citizen as a result of the illegal conviction, apllication of compulsory measures of security and medical treatment, illegal arraignment, detention, impreasonment, house arrest, recognisance not to leave and to duly behave, suspension, provisional placement in a psychiatric (psychoneurologic) facility, illegal imposition of an administrative sanction in the form of arrest or correctional work, shall be compensated at the expense of the treasury of the Republic of Belarus, and in the instances provided for by the legislation, at the expense of the treasury of the administrative territorial units, in full, irrespective of the fault of the officials of the bodies of criminal prosecution and the court in accordance with the procedure provided for by legislative acts.
2. Harm caused to a citizen or legal person as a result of the illegal activity of bodies of criminal prosecution, which does not entail the consequences provided for by Clause 1 of this Article, shall be compensated on the grounds and in accordance with the procedure which has been provided for by Article 938 of this Code. The harm caused when effectuating justice shall be compensated if the fault of the judge has been established by the sentence of a court which has entered into legal force.
Article 940. Bodies and Persons Acting in Name of Treasury When Compensating Harm at its Expense
In instances when in accordance with this Code or other legislation the harm caused is subject to compensation at the expense of the treasury of the Republic of Belarus or treasury of administrative territorial units, the respective financial bodies shall act in the name of the treasury unless in accordance with Article 125(3) of this Code this duty is placed on another body, legal person, or citizen.
Article 941. Compensation of Harm by Person Who Has Insured His Liability
A legal person or citizen who has insured his liability by way of voluntary or obligatory insurance to the benefit of the victim (Article 823, Article 825(1)), when insurance compensation is insufficient in order to compensate the harm caused in full, shall compensate the difference between the insurance compensation and the actual amount of damage.
Article 942. Liability for Harm Caused by Minors Up to Fourteen Years of Age
1. For harm caused by a minor who has not attained fourteen years of age (juveniles), parents, adoptive parents or trustee shall be liable, unless they would prove that the harm arose not through their fault.
2. If a juvenile who needs trusteeship is situated in a respective nurturing or medical institution, institution for the social defense of the populace, or other similar institution which by virtue of the act of legislation is the trustee (Article 34), this institution shall be obliged to compensate the harm caused by the juvenile unless it would prove that the harm arose not through the fault of the institution.
3. If a juvenile has caused harm at the time when he was under the supervision of an educational, nurturing, medical, or other institution obliged to effectuate supervision over him, or a person carrying out supervision on the basis of a contract, this institution or person shall be liable for the harm unless this institution or person would prove that the harm arose not through their fault in carrying out the supervision.
4. The duty of the parents, adoptive parents, trustee, educational, nurturing, treatment and other institutions relating to compensation of harm shall not terminate with the attainment of majority by the juvenile or with reception by him of property sufficient to compensate the harm.
If the parents, adoptive parents, trustee, or other citizens specified in Clause 3 of this Article have died or do not have sufficient means in order to compensate the harm caused to the life or health of the victim, and the causer of the harm himself, having full active legal capacity, possesses such means, the court shall have the right, taking into account the property status of the victim and the causer of the harm, and also other circumstances, to adopt a decision concerning compensation of harm fully or partially at the expense of the causer of the harm himself.
Article 943. Liability for Harm Caused by Minors in Age from Fourteen to Eighteen Years
1. A minor from fourteen to eighteen years of age shall bear liability on the common grounds autonomously for harm caused.
2. In an instance when a minor from fourteen to eighteen years of age has no revenues or other property sufficient to compensate harm, the harm must be compensated fully or in the insufficient part by parents, adoptive parents or guardian, unless they would prove that the harm arose not through their fault.
If a minor from fourteen to eighteen years of age who needs guardianship is situated in a respective nurturing or treatment institution, institution for the social defense of the populace, or other similar institution which by virtue of a legislation is the guardian, this institution shall be obliged to compensate the harm fully or in the insufficient part unless it would prove that the harm arose not through its fault.
3. The duty of parents, adoptive parents, guardian, and respective institution with regard to the compensation of harm caused by a minor from fourteen to eighteen years of age shall terminate upon the attainment of majority by the causer of the harm or in instances when, before attaining majority, the minor has revenues or other property sufficient to compensate the harm or when the minor has acquired active legal capacity before attaining majority.
Article 944. Liability of Parents Deprived of Parental Rights for Harm Caused by Minors
A court may place on a parent, deprived of parental rights, liability for harm caused by the minor children thereof, during three years after the deprivation of the parent of parental rights, if the behavior of the child which entailed causing the harm, was a consequence of the improper effectuation of parental duties.
Article 945. Liability for Harm Caused by Citizen Deemed to Lack Active Legal Capacity
1. Harm caused by a citizen deemed to lack active legal capacity shall be compensated by his trustee or the organization obliged to effectuate supervision over this citizen unless they would prove that the harm arose not through their fault.
2. The duty of a trustee or the organization obliged to effectuate supervision with regard to compensation of harm caused by a citizen deemed to lack active legal capacity shall not terminate in the event of the latter being deemed to have active legal capacity.
3. If the trustee is deceased or does not have sufficient means for the compensation of harm caused to the life or health of a victim, and the causer of harm himself possesses such means, the court shall have the right, taking into account the property status of the victim and the causer of the harm, and also other circumstances, to adopt a decision on compensation of harm fully or partially at the expense of the causer of the harm himself.
Article 946. Liability for Harm Caused by Citizen Deemed to Have Limited Active Legal Capacity
Harm caused by a citizen limited in active legal capacity as a consequence of abusing alcoholic beverages, narcotics or psychotropic substances, shall be compensated by the causer of the harm himself.
Article 947. Liability for Harm Caused by Citizen Not Capable to Understand the Meaning of His Actions or Guide These Actions
1. A citizen who has active legal capacity, and also a minor from fourteen to eighteen years of age, who has caused harm in such a state that he could not understand the meaning of his actions or guide these actions shall not be liable for the harm caused by him.
If harm is caused to the life or health of the victim, the court may, taking into account the property status of the victim and the causer of the harm, and also other circumstances, place the duty with regard to compensation of harm fully or partially on the causer of the harm.
2. The causer of harm shall not be relieved from liability if he has brought himself into a state in which he could not understand the meaning of his actions or guide these actions by the use of alcoholic beverages, narcotics, psychotropic substances, or other means.
3. If the harm was caused by a person who could not understand the meaning of his actions or guide these actions as a consequence of mental insanity, the duty to compensate the harm may be placed by a court on a spouse, parents, or children who have reached majority and who have labor capacity and reside jointly with this person, and who knew about the mental insanity of the causer of the harm but did not raise the question of deeming him to lack active legal capacity.
Article 948. Liability for Harm Caused by Activity Creating Increased Danger for Persons Being Around
1. Legal persons and citizens whose activity is connected with an increased danger for persons being around (use of means of transport, mechanisms, high voltage electric power, atomic power, explosive substances, strong poisons, etc; effectuation of construction and other activity connected therewith, and others) shall be obliged to compensate the harm caused by a source of increased danger unless it is proved that the harm arose as a consequence of force majeure or the intent of the victim. The possessor of a source of increased danger may be relieved by a court from liability fully or partially also on the grounds provided for by Article 952(2) and (3) of this Code.
The duty of compensation of harm shall be placed on the legal person or citizen who possesses the source of increased danger by right of ownership or other legal basis, including the right of lease (with the exception of lease of means of transport with a crew, Article 611), warrant for the right to drive means of transport, by virtue of the order of a respective body concerning the transfer of the source of increased danger to this legal person or citizen, and the like.
2. The possessors of sources of increased danger shall bear liability jointly and severally for harm caused as a result of the interaction of these sources (collisions of means of transport, and others) to third persons on the grounds provided for by Clause 1 of this Article.
The harm caused as a result of the interaction of the sources of increased danger to their possessors shall be compensated on the common grounds (Article 933).
3. The possessor of a source of increased danger shall not be liable for harm caused by this source if the possessor would prove that the source appeared beyond his possession as a result of the unlawful actions of other persons. Liability for harm caused by the source of increased danger in such instances shall be borne by the person who unlawfully took possession of the source. If there is fault of the possessor of a source of increased danger in the unlawful seizure of his source from his possession, liability may be placed both on the possessor and on the person who unlawfully took possession of the source of increased danger.
Article 949. Liability for Harm Caused Jointly
Persons who have caused harm jointly shall be liable to the victim jointly and severally.
Upon the application of the victim and in his interests a court shall have the right to place on the persons, who have caused harm jointly, liability in shares determined according to the rules provided for by Article 950(2) of this Code.
Article 950. Right of Regression Against Person Who Caused Harm
l. The person who has compensated harm caused by another person (by an employee when performing his employment, official, or other labor duties, by a person driving means of transport, and so forth) shall have the right of counter demand (regression) against this person in the amount of the compensation paid unless another amount has been determined by the legislation or in accordance with the procedure established by the legislation.
2. The causer of harm who has compensated harm jointly caused, shall have the right to demand from each of the other causers of harm a share of the compensation paid to the victim in the amount corresponding to the degree of fault of this causer of harm. If it is impossible to determine the degree of fault, the shares shall be deemed to be equal.
3. The Republic of Belarus and administrative territorial units, in the event of compensation by them of harm caused by the officials of bodies of criminal prosecution and a court (Article 939(1)), shall have the right of regression against these persons if their fault has been established by the sentence of a court which has entered into legal force.
4. The persons who have compensated harm on the grounds specified in Articles 942-945 of this Code shall not have the right of regression against the person who caused the harm.
Article 951. Means of Compensation of Harm
In satisfying the demand concerning compensation of harm, the court in accordance with the circumstances of the case shall oblige the person liable for causing the harm to compensate the harm in kind (to provide a thing of the same kind and quality, to repair a damaged thing, and so forth) or to compensate the losses caused (Article 14(2)).
Article 952. Taking Account of Fault of Victim and Property Status of Person Who Caused Harm
1. Harm which arose as a consequence of the intent of the victim shall not be subject to compensation.
2. If the gross negligence of the victim himself furthered the arising or the increasing of the harm, depending on the degree of fault of the victim and the causer of the harm, the amount of compensation must be reduced.
In the event of gross negligence of the victim and the absence of fault of the causer of the harm in instances when his liability ensues irrespective of fault, the amount of compensation must be reduced or compensation of harm may be refused unless otherwise provided by the legislation. In the event of causing harm to the life or health of a citizen, refusal of compensation of harm shall not be permitted.
The fault of the victim shall not be taken into account when compensating additional expenses (Article 954(l)), when compensating harm in connection the death of a breadwinner (Article 958), and also when compensating expenses for burial (Article 963).
3. A court may reduce the amount of compensation of harm caused by a citizen, taking into account the property status of the causer of harm, except for instances when the harm was caused by actions committed intentionally.
§ 2. Compensation of Harm Caused to Life and Health of Citizen
Article 953. Compensation of Harm Caused to Life or Health of Citizen When Performing Contractual or Other Obligations
Harm caused to the life or health of a citizen when performing contractual obligations, and also when performing duties of military service, service in the militia, and other respective duties shall be compensated according to the rules provided for by this Chapter unless a higher amount of liability has been provided by the legislation or by a contract.
Article 954. Amount and Character of Compensation of Harm Which Caused Impairment of Health
l. When mutilation or other impairment of health is caused to a citizen, the earnings (income) lost by the victim which he had or could have certainly, and also additional expenses incurred, caused by the impairment of health, including expenses for treatment, additional nourishment, acquisition of medicines, prosthetics, care effectuated by other persons, sanatorium and resort treatment, the acquisition of special means of transport, and training for another profession shall be subject to compensation if it is established that the victim needs these types of assistance and care and does not have the right to receive them free of charge.
2. When determining lost earnings (income), the pensions (except for disability pension assigned to the victim in connection with the corresponding mutilation or other impairment of health), assigned both before and after causing harm to health, shall not be taken into account and shall not entail a reduction of the amount of compensation of harm (shall not be set-off at the expense of compensation of harm). Earnings (income) received by the victim after the impairment of health also shall not be set-off at the expense of compensation of harm.
3. The extent and amount of compensation of harm due to the victim in accordance with this Article may be increased on the grounds of the legislation or the contract.
Article 955. Determination of Earnings (Income) Lost as Result of Impairment of Health
1. The amount of earnings (income) lost by a victim, which is subject to compensation, shall be determined in percentages of victim’s average monthly earnings (income) before the mutilation or other impairment of health or before loss of labor capacity, adjusted in accordance with established procedure, taking into account the inflation, and corresponding to the degree of loss by the victim of professional labor capacity, and in the absence of professional labor capacity, the degree of loss of general labor capacity.
2. As lost earnings (income) of the victim, all types of payment for labor under labor and civil legal contracts, both at the principal place of work and other jobs, levied by the income tax, shall be taken into account. Payments of an extraordinary character, in particular, compensation for unused leave and severance benefit (paid in the event of dismissal), shall not be taken into account. The benefit paid for the period of temporary lack of labor capacity or pregnancy and birth leave shall be taken into account. The incomes from entrepreneurial activity, and also author's royalty, shall be included in the lost earnings; for this purpose, the incomes from entrepreneurial activity being included on the basis of data of tax inspectorate.
All types of earnings (income) shall be taken into account in the amounts accrued before the withholding of taxes.
3. The average monthly earnings (income) of the victim shall be calculated by means of dividing the total amount of victim’s earnings (income) for twelve months of work, which preceded the mutilation, loss or decreasing the labor capacity as a result of mutilation (subject to victim’s selection), by twelve. In case of occupational disease, the average monthly earnings may also be determined for the last twelve months of work, preceding to termination of work, which have caused this disease. In an instance when the victim at the time of causing the harm worked less than twelve months, the average monthly earnings (income) shall be calculated by means of dividing the total amount of earnings (income) for the months actually worked by the number of these months. Months not worked in full shall, at victim’s wish, be substituted by the preceding months fully worked, or excluded from the calculation, when it is impossible to substitute these months.
4. In an instance when the victim at the time of causing harm was not working, the earnings before dismissal or the usual amount of remuneration of an employee of corresponding qualifications in the particular locality shall, at victim’s wish, be taken into account, but not less than five times the basic value established by the legislation.
5. If stable changes improving the property status of victim (increase of earnings in the job held, or the victim was transferred to work paid higher, or the victim took up the job after completing full-time education, and in other instances when the stability of change or possibility of change of payment of labor of the victim is proved) occurred in the earnings (income) of the victim before the mutilation or other impairment of health, then, when determining the average monthly earnings (income), only the earnings (income) which were received or should have received after the respective changes, shall be taken into account.
Article 956. Compensation of Harm in Event of Impairment of Health of Person Who Has Not Attained Majority
1. In the event of the mutilation or other impairment of health of a minor who has not attained fourteen years (juveniles) and does not have earnings (income), the person liable for the harm caused shall be obliged to compensate the expenses caused by the impairment of health.
2. Upon the attainment of fourteen years by a juvenile victim, and also in the event of causing harm to a minor of from fourteen to eighteen years age, not having earnings (income), the person liable for the harm caused shall be obliged to compensate the victim for, in addition to the expenses caused by the impairment of health, also the harm connected with the loss of or reduction of labor capacity, on the basis of the basic value, established by the legislation, multiplied by five.
3. If at the time of the impairment of health a minor had earnings, the harm shall be compensated on the basis of the amount of these earnings, but not lower than the basic value established by the legislation, multiplied by five.
4. After the commencement of labor activity a minor, to whose health harm was caused, shall have the right to demand an increase of the amount of compensation of harm on the basis of the earnings received by him, but not less than the amount of remuneration established for the job occupied by him or the earnings of an employee of the same qualifications at his place of work.
Article 957. Compensation of Harm to Persons Who Have Incurred Damage as Result of Death of Breadwinner
1. In the event of the death of the victim (breadwinner), the following persons shall have right to compensation of harm:
1) persons not capable for labor, who were dependent on the deceased or had, on the day of his death, the right to receive maintenance from him;
2) a child of the deceased, born after his death;
3) one of the parents, spouse, or other member of the family, irrespective of his labor capacity, who does not work and engaged in care for the children, grandchildren, brothers and sisters of the deceased, who were dependent on deceased, not attained fourteen years or, although they had attained the said age, but, in accordance with the conclusion of medical bodies, need care of other person by reason of their state of health;
4) persons who were dependent on the deceased and became not capable for labor within five years after his death.
One of the parents, spouse, or other member of the family who does not work and engaged in care for children, grandchildren, brothers, and sisters of the deceased and became not capable for labor during the period of carrying out care, shall retain the right to compensation of harm after ending the care for these persons.
2. The harm shall be compensated to:
1) a minor: until attaining eighteen years of age;
2) pupils (students) older than eighteen years: until completion of study in educational institutions on full-time form of education, but not more than up to twenty three years of age;
3) women older than fifty-five years and men older than sixty years: for life;
4) disabled persons: for the period of disability;
5) one of the parents, spouse, or other member of the family engaged in care for children, grandchildren, brothers, and sisters dependent on the deceased: until they attain fourteen years of age or until change of the state of their health.
Article 958. Amount of Compensation of Harm Incurred in Event of Death of Breadwinner
l. Harm shall be compensated to persons who have the right to compensation for harm in connection with the death of a breadwinner in the amount of that share of earnings (income) of the deceased, determined according to the rules of Article 955 of this Code, which they have received or had the right to receive for their maintenance while a breadwinner was alive. When determining the compensation for harm to these persons, as the incomes of the deceased, together with earnings (income), a pension, maintenance for life, and other similar payments being received by this person while alive, shall be taken into account.
2. When determining the amount of compensation for harm, pensions (except for corresponding persons in connection with the death of a breadwinner), assigned both before and after the death of a breadwinner, earnings (income) and scholarship, received by these persons, shall not be taken into account as the compensation of harm.
3. The amount of compensation established for each of those having the right to compensation of harm in connection with the death of a breadwinner shall not be subject to further recalculation except for instances of:
1) the birth of a child after the death of a breadwinner;
2) the assignment or termination of the payment of compensation to persons engaged in care for children, grandchildren, brothers, and sisters of a deceased breadwinner;
3) the assignment of the payment of compensation to persons who were dependent on the deceased and became not capable for labor within five years after his death.
The amount of compensation may be increased on the grounds of the legislation or the contract.
Article 959. Subsequent Change of Amount of Compensation of Harm
1. A victim who has partially lost labor capacity shall have the right at any time to demand from the person on whom the duty of compensation of harm has been placed a respective increase of the amount of his compensation if the labor capacity of the victim has decreased thereafter in connection with the causing of impairment of health in comparison with that which remained at the time of awarding compensation for harm to him.
2. A person on whom the duty to compensate harm, which was caused to the health of the victim, has been placed, shall have the right to demand a respective reduction of the amount of compensation, if the labor capacity of the victim increased in comparison with that which was at the time when compensation for harm was awarded.
3. The victim shall have the right to demand an increase of the amount of compensation of harm if the property status of the citizen on whom the duty to compensate harm was placed has improved, and the amount of compensation was reduced in accordance with Article 952(3) of this Code.
4. A court may, at the demand of a citizen who caused harm, reduce the amount of compensation for harm, if his property status, in connection with disability or attainment of pension age, has worsened in comparison with the status at the time of awarding compensation for harm, except for instances when the harm was caused by actions committed intentionally.
Article 960. Increase of Amount of Compensation of Harm in Connection with Increase of Cost of Living and Increase of Basic Value
1. Amounts to be paid to citizens for compensation of harm caused to the life or health of a victim shall be subject, in the event of an increase of the cost of living, to indexing in accordance with the procedure established by the legislation.
2. In the event of an increase of the basic value, established by the legislation, the amounts of compensation for lost earnings (income) and other payments awarded in connection with impairment of health or the death of a victim, shall be increased in proportion to the increase of the basic value.
Article 961. Payments for Compensation of Harm
1. Compensation of harm caused by a reduction of labor capacity or the death of a victim shall be made by monthly payments.
When there are justifiable reasons, the court, taking into account the possibilities of the causer of harm, may, at the demand of the citizen who has the right to compensation of harm, award him the payments due as a lumpsum payment, but for not more than three years.
2. Amounts in compensation of additional expenses (Article 954(l)) may be awarded for a future period within the limits of the periods determined on the basis of the conclusion of medical expert examination, and also in the instances of necessity of advance payment of the cost of the respective services and property, including the acquisition of sanatorium vouchers, payment for travel, and payment for special means of transport.
Article 962. Compensation of Harm in Event of Termination of Legal Person
1. In the event of the reorganization of a legal person deemed, in accordance with the established procedure, to be liable for harm caused to life or health, the duty relating to the payment of the respective payments shall be borne by its legal successor. Demands concerning compensation of harm shall also be submitted to it.
2. In the event of the liquidation of a legal person deemed, in accordance with the established procedure, to be liable for harm caused to life or health, the respective payments must be capitalized for the payment thereof to the victim according to the rules established by the legislation.
Other instances ,under which the capitalization of payments may be made, also may be established by the legislation.
Article 963. Compensation of Expenses for Burial
Persons liable for harm which caused the death of the victim shall be obliged to compensate necessary expenses for the burial to the person who incurred those expenses.
The allowance for burial received by citizens who incurred these expenses shall not be set-off at the expense of compensation of harm.
§ 3. Compensation of Harm Caused as Consequence of Defects
of Good, Work, or Service
Article 964. Grounds for Compensation of Harm Caused as Consequence of Defects of Good, Work, or Service
Harm caused to the life, health, or property of a citizen or the property of a legal person as a consequence of defects of the good, work, or service, related to its design or composition, or other defects, and also as a consequence of unreliable or insufficient information concerning the good, work or service, shall be subject to compensation by the seller or the manufacturer of the good or by the person who fulfilled the work or rendered the service (executor), irrespective of their fault and whether the victim was in contractual relations with them or not.
The rules provided for by this Article shall be applied only in the instances of the acquisition of the good (fulfillment of work, rendering of service) for consumption purposes, and not for use in entrepreneurial activity.
Article 965. Persons Liable for Harm Caused as Consequence of Defects of Good, Work, or Service
1. Harm caused as a consequence of the defects of a good shall be subject to compensation, at the choice of the victim, by the seller or the manufacturer of the good.
2. Harm caused as a consequence of the defects of work or service shall be subject to compensation by the person who fulfilled the work or rendered the service (executor).
3. Harm caused as a consequence of the failure to grant full or reliable information concerning the good (work, service) shall be subject to compensation by the persons specified in Clauses 1 and 2 of this Article.
Article 966. Periods for Compensation of Harm Caused as Result of Defects of Good, Work, or Service
l. Harm caused as a consequence of defects of a good, work, or service shall be subject to compensation if it arose during the established shelf life or service period of a good (work, service), and if the shelf life or service period is not established in accordance with the legislation, within ten years from the date of production of the good (fulfilling work, rendering service).
2. After expiry of periods, specified in Clause 1 of this Article, harm shall be subject to compensation if:
1) in violation of the requirements of the act of legislation, the period of fitness or service period has not been established;
2) the person to whom the good was sold, for whom work was fulfilled, or to whom a service was rendered, was not warned about necessary actions upon the expiry of the shelf life or service period and possible consequences in the event of the failure to fulfill the said actions.
Article 967. Grounds for Relief from Liability for Harm Caused as Consequence of Defects of Good, Work or Service
The seller or manufacturer of a good or executor of work or service shall be relieved from liability, if they would prove that the harm arose as a consequence of force majeure or a violation, by the consumer, of the established rules for the use of the good or the results of the work or service, or storage thereof.
§ 4. Compensation of Moral Harm
Article 968. General Provisions
1. The grounds and amount of compensation of moral harm to a citizen shall be determined by the rules provided for by this Chapter and Article 152 of this Code.
2. Moral harm caused by actions (omission) which violate the property rights of a citizen shall be subject to compensation in the instances provided for by the legislative acts.
3. Compensation of moral harm shall be effectuated irrespective of the property harm subject to compensation.
Article 969. Grounds for Compensation of Moral Harm
Compensation of moral harm shall be effectuated irrespective of the fault of the causer of the harm in instances when:
1) the harm is caused to the life or health of a citizen by a source of increased danger;
2) the harm caused to a citizen as a result of the illegal conviction, apllication of compulsory measures of security and medical treatment, illegal arraignment, detention, impreasonment, house arrest, recognisance not to leave and to duly behave, suspension, provisional placement in a psychiatric (psychoneurologic) facility, illegal imposition of an administrative sanction in the form of arrest or correctional work;
3) the harm was caused by the dissemination of false information defaming honor, dignity, or business reputation of the citizen;
4) in other instances provided for by the legislative acts.
Article 970. Means and Amount of Compensation of Moral Harm
1. Compensation of moral harm shall be effectuated in monetary form.
2. The amount of compensation of moral harm shall be determined by a court depending upon the character of physical and moral suffering caused to the victim, and also the degree of fault of the causer of the harm in the instances when the fault is the grounds for the compensation of harm. When determining the amount of compensation of harm, the requirements of reasonableness and justice must be taken into account.
The character of physical and moral sufferings shall be estimated by the court, taking into account the actual circumstances under which the moral harm was caused and the individual peculiarities of the victim.
CHAPTER 59
Obligations as Consequence of Unfounded Enrichment
Article 971. Duty to Return Unfounded Enrichment
l. A person who without grounds established by the legislation or transaction acquired or saved property (acquirer) at the expense of another person (victim) shall be obliged to return to the latter property unfoundedly acquired or saved (unfounded enrichment), except for instances provided for by Article 978 of this Code.
2. The rules provided for by this Chapter shall be applied irrespective of whether the unfounded enrichment is a result of the behavior of the acquirer of the property, the victim himself or third persons, or occurred besides their will.
Article 972. Relationship Between Demands Concerning Return of Unfounded Enrichment and Other Demands Concerning Defense of Civil Rights
Insofar as not otherwise established by this Code and does not arise from the essence of the respective relations, the rules provided for by this Chapter shall be subject to application also to demands:
1) concerning the return of that performed under an invalid transaction;
2) concerning the vindication of property by the owner from another's illegal possession;
3) by one party in an obligation to another concerning the return of that performed in connection with this obligation;
4) concerning compensation of harm, including that caused by the unfair behavior of the person enriched.
Article 973. Return of Unfounded Enrichment in Kind
Property comprising unfounded enrichment of the acquirer must be returned to the victim in kind.
The acquirer shall be liable to the victim for any, including also for any accidental, shortage or deterioration of the unfoundedly acquired or saved property which occurred after he knew or should have known that the enrichment is unfounded. Before that time he shall be liable only for intent and gross negligence.
Article 974. Compensation of Value of Unfounded Enrichment
1. If it is impossible to return in kind the property unfoundedly received or saved, the acquirer must compensate the victim for the real value of this property at the time of its acquisition, and also the losses caused by the subsequent change of the value of this property, if the acquirer did not compensate its value immediately after he knew about the unfounded enrichment.
2. A person who unfoundedly used another's property temporarily without the intention to acquire it, or used another's services, must compensate the victim for that which was saved by this person as a consequence of such use at the price which existed at the time when the use ended and in that place where it occurred.
Article 975. Consequences of Unfounded Transfer of Right to Another Person
A person who has transferred by means of cession of demand or otherwise a right belonging to him to another person on the basis of a nonexistent or invalid obligation shall have the right to demand the restoration of his previous position, including the return to him of documents certifying the transferred right.
Article 976. Compensation to Victim of Incomes Not Received
1. The person who unfoundedly received or saved property shall be obliged to return or to compensate the victim for all incomes which this person obtained or should have obtained from this property from the time when this person knew or should have known about the unfounded enrichment.
2. Interest shall be subject to being calculated on the amount of unfounded monetary enrichment for the use of means of other person (Article 366) from the time when the acquirer knew or should have known that the reception or savings of monetary means is unfounded.
Article 977. Compensation of Expenditures on Property Subject to Return
In the event of the return of property unfoundedly received or saved (Article 973) or compensation of the value thereof (Article 974), the acquirer shall have the right to demand compensation from the victim of necessary expenditures incurred for the maintenance and preservation of property from the time from which he is obliged to return incomes (Article 976), setting off the advantages received by him. The right to compensation of expenditures shall be lost in an instance when the acquirer intentionally withheld property which is subject to return.
Article 978. Unfounded Enrichment Not Subject to Return
There shall not be subject to return as unfounded enrichment;
1) property transferred in performance of an obligation before the ensuing of the period of performance, unless otherwise provided by the obligation;
2) property transferred in performance of an obligation upon the expiry of the limitation period;
3) earnings and payments equated thereto, pensions, benefits, scholarships, compensation of harm caused to life or health, alimony and other monetary amounts granted to a citizen as means for existence, in the absence of lack of good faith on his part, and in the absence of error of calculations;
4) monetary amounts and other property granted in performance of a nonexistent obligation, if the acquirer would prove that the person requiring the return of the property knew about the absence of the obligation or granted the property for the purposes of charity.
SECTION V
EXCLUSIVE RIGHTS FOR RESULTS OF INTELLECTUAL ACTIVITY (INTELLECTUAL PROPERTY)
CHAPTER 60
General Provisions
Article 979. Legislation on intellectual property
The legislation on the intellectual property consists of this Code and other acts of legislation.
Article 980. Objects of intellectual property
To the object of the intellectual property shall be relegated:
1) the results of intellectual activity:
works of science, literature and art;
performances, phonograms and programs of broadcasting organizations;
inventions, useful models, industrial standards;
selection achievement;
layouts of integrated circuits;
undisclosed information, including trade secrets (know-how);
2) means of individualization of participants of the civil turnover, goods, works or services:
firm names;
trademarks and service marks;
geographical indications;
3) other results of the intellectual activity and means of individualization of participants of the civil turnover, goods, works or services in cases, provided by this Code and other legislative acts.
Article 981. Grounds for Arising of Rights to Objects of Intellectual Property
The legal protection of the objects of intellectual property shall arise by virtue of creation of these objects or as the consequence of granting the legal protection by the authorized state body in cases and in accordance with the procedure, provided by this Code and other legislative acts.
The terms of granting the legal protection of undisclosed information are defined by this Code and other legislative acts.
Article 982. Personal Non-property and Property Rights to Objects of Intellectual Property
1. Personal non-property rights and property rights belong to the authors of results of intellectual activity in relation to these results.
Only property rights belong to the manufacturers of phonograms and broadcasting organizations in relation to these objects.
Personal non-property rights belong to the author irrespective of his property rights and are preserved for him in case of passing his property rights to the results of the intellectual activity to another person.
2. Property rights belong to the holders of the right to the means of individualization of participants of the civil turnover, goods, works or services (hereinafter referred to as the means of individualization) in relation to these means.
3. The right of authorship (the right to be deemed as the author of the result of the intellectual activity) is the personal non-property right and may belong only to the person, whose creative labor has created the result of intellectual activity.
The right of authorship is non-alienable and non-transferable.
If the result is created by the joint creative labor of two or more persons, they shall be deemed to be the co-authors. Concerning individual objects of the intellectual property, a circle of the persons, who are deemed to be the co-authors of the product as a whole, may be limited by the legislation.
Article 983. Exclusive Rights to Objects of Intellectual Property
1. Exclusive right of the legal use of the object of intellectual property at own discretion in any form and any way shall belong to the holder of property rights to the result of intellectual activity or to the means of individualization.
Using of the objects of intellectual property, concerning which the exclusive right belong to the right holder thereof, by other persons, shall be permitted only with the consent of the right holder.
2. The holder of the exclusive right to the objects of intellectual property shall have the right to transfer this right to another person in full or in part, to allow another person to use the object of intellectual property and has the right to procedure it in another way, if this does not disagree with this Code or another law.
3. The restrictions of the exclusive rights, including by granting to other persons the possibility to use the objects of intellectual property, deeming these rights to be void, and termination (nullifying) thereof are permitted in cases, within the limits and in accordance with the procedure, established by this Code or another law.
The restrictions of the exclusive rights are permitted under the condition that such restrictions do not cause damage to normal using of the object of intellectual property and do not restrict the legal interests of the right holders in the ungrounded manner.
Article 984. Transfer of Exclusive Rights to Another Person
1. The property rights, belonging to the holder of exclusive rights to the object of the intellectual property, unless otherwise provided for by this Code or another law, may be transferred by the right holder in full or in part to another person under the contract, and also shall be transferred by inheriting and in accordance with the procedure of legal succession in case of reorganization of the legal person being the right holder.
Transfer of the property rights under the contract or in accordance with the procedure of universal legal succession does not entail transfer or restrictions of the right of authorship and other personal non-property rights. The conditions of contract concerning transfer or restriction of these rights shall be void.
2. The exclusive rights, which are transferred under the contract, shall be determined in it. The rights, which are not specified in the contract as being transferred, shall be deemed to be non-transferable, unless proved otherwise.
3. The rules on the license contract (Article 985) shall apply to the contract, providing for granting the exclusive rights within the period of its validity to another person for a limited period, unless otherwise provided for by the law.
Article 985. License Contract
1. Under the license contract the party, possessing the exclusive rights to use the results of intellectual activity or the rights to the means of individualization (the licensor), shall grant to another party (the licensee) a permit to use the respective object of intellectual property.
The license contract shall be considered to be the contract for compensation.
2. The license contract may provide for granting to the licensee:
1) the right to using of the object of intellectual property with preservation for the licensor of the right to its usage and the right to issue the licenses to other persons (simple, non-exclusive license);
2) the right to using of the object of intellectual property with preservation for the licensor of the right to its usage in a part, not transferred to the licensee, but without the right to issue licenses to other persons (exclusive license);
3) other types of licenses, permitted by the legislative acts.
Unless otherwise provided for in the license contract, the license shall be considered to be simple (non-exclusive).
3. The contract of granting, by the licensee, of the right to using of the object of intellectual property to another person within the limits, defined by license contract, shall be deemed to be the sublicense contract. The licensee has the right to conclude the sublicense contract only in cases, provided for by the license contract.
The licensee shall bear the liability to the licensor for actions of the sub-licensee, unless otherwise provided for by the license contract.
Article 986. Contract on Creation and Using of Results of Intellectual Activity
1. Under the contract, the author may undertake to create in the future the product, invention or another result of intellectual activity and to grant to the customer, not being his employer, the exclusive rights to use this result.
2. The contract, provided in Clause 1 of this Article, shall define the nature of the result of intellectual activity, being subject to creation, as well as purposes or ways of its use.
3. The contracts, obliging the author to grant to any person the exclusive rights to use the result of intellectual activity, which this author will create in the future, shall be void.
4. The conditions of contract, restricting the author in creation, in the future, of the result of intellectual activity of the certain kind or in the certain area, shall be deemed to be invalid.
Article 987. Exclusive Right and Rights of Ownership
The exclusive right to the result of intellectual activity or the means of individualization exists irrespective of the rights of ownership to the material object, in which such result or the means of individualization are expressed.
Article 988. Period of Action of Exclusive Rights
1. The exclusive right to the objects of intellectual property shall act during the period, provided for by this Code or another law.
The law may provide for the possibility of extension of such period.
2. The personal non-property rights concerning the objects of intellectual property are protected without limitation of time.
3. In cases, provided by the law, the action of the exclusive right may be terminated in the consequence of its being non-using during the determined period.
Article 989. Ways of Defense of Exclusive Rights
1. Defense of the exclusive rights shall be effectuated by the ways, provided for by Article 11 of this Code. Defense of the exclusive rights may be effectuated also by way of:
1) withdrawal of material objects, with the help of which the exclusive rights are violated, and material objects, created as the result of such breaches;
2) obligatory publication about the violation committed, with inclusion of the information into it about the person, to whom the violated right belongs;
3) by other ways, provided for by the law.
2. In case of violation of the contracts on using of the result of intellectual activity and means of individualization, the general rules on liability for violation of the obligations shall apply (Chapter 25).
CHAPTER 61.
Copyright and Neighboring Rights
Article 990. Subject of Regulation
This Code and the law on the copyright and the neighboring rights and other acts of legislation, adopted in accordance with this Code, shall regulate the relations, arising in connection with creation and using of the works of science, literature, art (copyright), performances, phonograms, programs of broadcasting organizations for aerial or cable broadcasting (neighboring rights).
Article 991. Scope of Action of Copyright
1. In accordance with this Code and other acts of legislation, the copyright shall extend to the works of science, literature and art, existing in some objective form:
1) on the territory of the Republic of Belarus, regardless of citizenship of authors and their legal successors;
2) outside the borders of the Republic of Belarus, and is recognized for the authors, being the citizens of the Republic of Belarus and their legal successors;
3) outside the borders of the Republic of Belarus, and is recognized for their authors (their legal successors, being the citizens of other states) in accordance with treaties of the Republic of Belarus.
2. The work shall be deemed to be published in the Republic of Belarus, if within thirty days following the date of the first publishing outside the Republic of Belarus it was published on the territory of the Republic of Belarus.
3. When granting protection on the territory of the Republic of Belarus for the work in accordance with the treaties of the Republic of Belarus, the holder of copyright to the work shall be defined in accordance with the legislation of the state, on the territory of which the action or case have taken place, which served as the grounds for holding of copyrights.
Article 992. Objects of Copyright
1. The copyright shall extend to the works of science, literature and art, being the results of creative activity, regardless of the purposes and worth of the work, and of the way of its expression.
2. The copyright shall extend to both published and non-published works, existing in some objective form:
1) written (manuscript, typescript, music record etc.);
2) oral (public pronouncing, public performance etc);
3) sound- or video recording (mechanical, magnetic, digital, optical etc.);
4) image (drawing, outline, picture, plan, technical drawing, cinema-, TV-, video- or photo image etc.);
5) three-dimensional (sculpture, model, mock-up, construction etc.);
6) in other forms.
3. A part of work (including its name), which meets the requirements of Clause 1 of this Article and may be applied autonomously, is an object of the copyright.
4. The copyright shall not extend to ideas, methods, processes, systems, methods, concepts, principles, discoveries, facts.
5. The copyright is not connected with the right of ownership to the material object, in which the work is expressed.
Transfer of the right of ownership to the material object or the right of possession of the material object itself does not entail transfer of any copyrights to the work, expressed in this object, except for the cases, provided for by the legislation on the copyright and neighboring rights.
Article 993. Works, being Objects of Copyright
1. The object of the copyright are:
1) works of literature (the books, brochures, articles etc.);
2) dramatic and music dramatic works, products of choreography and pantomime and other scenario works;
3) musical compositions with a text and without a text;
4) audio- and visual works (the cinema-, TV-, video films, slide films and other cinema- and TV works);
5) works of sculpture, painting, graphics, lithography and other works of graphic art;
6) works of the applied art;
7) works of the architecture, urban planning and landscape art;
8) photographic works and other works, obtained by the manner, similar to photography;
9) maps, plans, outlines, illustrations and plastic works, related to geography, topography and other sciences;
10) computer programs;
11) other product.
2. Protection of the computer programs shall extend to all types of the computer programs (including operating systems), which may be expressed in any language and in any form, including the source code and the object code.
3. To the object of the copyright shall also be relegated:
1) the secondary works (translations, processed works, annotations, abstracts, summaries, reviews, scenarios, music arrangement and other conversions of the science, literature and art creations);
2) collections (the encyclopedias, anthologies, databases) and other compiled works, being, as per the material selection or arranging, the result of creative labor.
The secondary and compiled works are protected by the copyright irrespective of whether the works, on which the secondary and compiled works are based or which are included in the secondary and compiled works, being or not being the objects of the copyright.
Article 994. Objects of Neighboring Rights
The neighboring rights shall extend to performances, stagings, phonograms, programs of broadcasting organization for the aerial and cable broadcasting.
For arising and exercising of the neighboring rights, no formalities need to be observed.
Article 995. Scope of Action of Neighboring Rights
1. The performer’s rights are recognized for him in accordance with this Code and other acts of legislation on the copyright and neighboring rights, if:
1) the performer is a citizen of the Republic of Belarus;
2) the performance, the staging for the first time took place on the territory of the Republic of Belarus;
3) the performance, the staging are recorded on a phonogram in accordance with Clause 2 of this Article;
4) the performance, the staging, not recorded on a phonogram, are included into program for aerial or cable broadcasting in accordance with Clause 3 of this Article.
2. The rights of the phonogram manufacturer are recognized for him in accordance with this Code and other acts of legislation on the copyright and neighboring rights, if:
1) the phonogram manufacturer is a citizen of the Republic of Belarus or legal person, having official location on the territory of the Republic of Belarus;
2) the phonogram is published for the first time on the territory of the Republic of Belarus.
3. The rights of organization of aerial or cable broadcasting are recognized for it in accordance with this Code and other acts of legislation on the copyright and neighboring rights in cases when the organization has an official location on the territory of the Republic of Belarus and effectuates transmissions using the transmitters, located on the territory of the Republic of Belarus.
CHAPTER 62
General Provisions on Right of Industrial Property
Article 996. Subject of Regulation
This Code and the laws, adopted in accordance with it, regulate the relations, arising in connection with creation and using of inventions, useful models, industrial standards, selection achievements and with protection of undisclosed information (know-how), means of individualization of participants of civil turnover, goods, works, services (the firm names, trademarks and service marks, geographical indications).
Article 997. Legislation on Right of Industrial Property
The legislation on the industrial property right consists of this Code and other acts of legislation.
Article 998. Objects of Right of Industrial Property
The industrial property right shall extend to:
1) inventions;
2) useful models;
3) industrial standards;
4) selection achievements;
5) layouts of integrated circuits;
6) undisclosed information, including trade secrets (know-how);
7) firm names;
8) trademarks and service marks;
9) geographical indications;
10) other objects of industrial property and means of individualization of participants of civil turnover, goods, works or services, in cases, provided by the legislation.
CHAPTER 63
Right to Invention, Useful Model, Industrial Standard
Article 999. Legal Protection of Invention, Useful Model, Industrial Standard
The right to invention, useful model, industrial standard shall be protected by the state and certified by a patent.
Article 1000. Conditions of Legal Protection of Inventions, Useful Model, Industrial Standard
1. The rights to invention, useful model and industrial standard are protected under condition of issuing the patent.
2. Legal protection shall be granted for the invention in any area of technology, if it is related to the product or the method, is new, has an invention level and is industrially applicable.
3. A technical decision, relating to the devices, being new and industrially applicable, shall be deemed to be the useful model, for which the legal protection is granted.
4. The artistic or artistic design decision of the product, defining its appearance and being new and original, shall be deemed to be the industrial standard, for which the legal protection is granted.
5. The requirements applied to the invention, useful model, industrial standard, under which the right to obtain the patent shall arise, and the procedure of issuing the patent by the patent body, shall be established by the legislation.
Article 1001. Right to Using of Invention, Useful Model, Industrial Standard
1. The exclusive right to using of the patented invention, useful model, industrial standard shall belong to the patent holder.
The exclusive right to using of the invention, useful model, industrial standard comprises the right to using of the invention, useful model, industrial standard at own discretion, if this does not violate the rights of other persons, and also comprises the right to forbid using of the invention, useful model, industrial standard to other persons.
The exclusive right to using of the patented invention, which is by itself the method of obtaining of the product, shall apply also to the product, directly obtained by this method. In so doing, the new product shall be deemed to be obtained by the patented method, until otherwise is proved.
2. Other persons, not being the patent holders, shall have no right to using of the invention, useful model, industrial standard without permit of the patent holder, except for the cases when using shall not be deemed to be the violation of the patent holder’s rights in accordance with this Code or another law.
3. The effectuation of the following actions without the consent of the patent holder shall be deemed to be a violation of the patent holder’s exclusive rights:
manufacturing, application, import, offer to sale, sale, other bringing into civil turnover or storage for these purposes of the product or article, made with using of patented invention, useful model, industrial standard, as well as effectuation of the specified actions concerning the facility, during functioning or operation of which, in accordance with its purpose, the method protected by the patent shall be effectuated;
application of the method, protected by the patent for the invention, or bringing the product into civil turnover or storage the product for these purposes, if this product is made directly using the method, protected by the patent for the invention.
Article 1002. Period of Validity of Patent
1. The patent is valid since the date of submission of the application into the patent body and preserves validity, under condition of observance of the requirements, established by the legislation, during the following periods:
1) the patent for the invention, during twenty years. If for using of the facility, in which the invention is used, it is required to obtain the permission of the authorized body in accordance with the legislation, the period of validity of the patent for this invention shall be prolonged by the patent body, upon the request of the patent holder, for the period not exceeding five years;
2) the patent for a useful model, during five years with possible extension of this period by the patent body upon the request of the patent holder for the period not exceeding three years;
3) the patent for an industrial standard, during ten years with possible extension of this period by the patent body upon the request of the patent holder for the period not exceeding five years.
2. Protection of the invention, useful model, industrial standard is valid since the date of submission of the application into the patent body. Protection of the rights may be effectuated only after issuing the patent. In case of refusal of issuing the patent, the protection shall be deemed not to have ensued.
3. The priority of the invention, useful model, industrial standard shall be determined in accordance with the procedure, provided for by the legislation.
CHAPTER 64
Rights to New Sorts of Plants and New Breeds of Animals
Article 1003. Conditions for Protection of Rights to New Sorts of Plants and New Breeds of Animals
1. The rights to new sorts of plants and new breeds of animals (selection achievements) are protected under condition of issuing the patent.
A sort of plant, obtained by an artificial way or by selection and having one or several essential features, which distinguish it from the existing sorts of the plants, shall be deemed to be the selection achievement in plant growing.
The breed, that is an integral numerous group of animals of common origin, created by the man and having a genealogical structure and characteristics, which enable to distinguish it from other breeds of animals of this species, sufficiently numerous for reproduction as one breed, shall be deemed to be the selection achievement in cattle breeding.
2. The requirements, under which the right to obtain the patent for the selection achievement appears, and the procedure of issuing such patent shall be established by the legislation.
Article 1004. Copyright to Define Name of Selection Achievement
1. The author of the selection achievement has the right to define its name, which shall meet the requirements, established by the legislation on the selection achievements, and subject to approval by the state body, responsible for testing and protection of the selection achievements.
2. At production, reproduction, offer to sale, sale and other types of selling the protected selection achievements, using of names registered for them is obligatory. Assigning of name, different from the registered one, to seeds or breeding material produced and (or) being sold, shall be not permitted.
3. Assigning of the registered name of selection achievement to seeds or breeding material produced and (or) being sold, not relegating to it, is a violation of the rights of the patent holder and selectionist.
Article 1005. Patent holder’s rights to selection achievement
The exclusive right to using of the selection achievement, within the limits established by the law, shall belong to the holder of the patent for this selection achievement.
Article 1006. Period of Validity of Patent for Selection Achievement
The period of validity of the patent for selection achievement begins since the day of registration of the achievement in the state register of protected selection achievements and issuing the patent, and lasts for twenty years.
Longer periods of the patent validity for individual types of selection achievements may be established by the law.
CHAPTER 65
Right to Layout of Integrated Circuit
Article 1007. Concept of Layout of Integrated Circuit
Layout of an integrated circuit is the spatial geometric location of the set of components of the integrated circuit and connections between these components, fixed on material carrier.
Article 1008. Conditions of Legal Protection of Layouts of Integrated Circuits
1. The legal protection shall apply only to the original layout of integrated circuit.
The layout of the integrated circuit, created as the result of the author’s creative activity, shall be deemed to be original. The layout shall be deemed to be original until otherwise is proved.
2. Legal protection shall not be granted for the layout, the set of components of which is well-known for the developers and manufacturers of the integrated circuit at the date of its creation.
3. Legal protection shall be granted for the layout, consisting of components, which are well-known for the developers and manufacturers of the integrated circuit at the date of its creation, only if the set of such elements, as a whole, meets the requirements of Clause 1 of this Article.
Article 1009. Regulation of Relations, Concerning Creation and Using of Layouts of Integrated Circuits
The relations, concerning creation, protection and using of layout of the integrated circuits, shall be regulated by this Code and other acts of legislation on legal protection of layouts of integrated circuits.
CHAPTER 66
Right to Protection of Undisclosed Information from Illegal Use
Article 1010. Conditions of Legal Protection of Undisclosed Information
1. The person, lawfully possessing technical, organizational or commercial information, including trade secrets (know-how), not known to the third parties (undisclosed information), has the right to protection of this information from illegal use, if the conditions, established by Article 140(1) of this Code, are observed.
2. The right to protection of undisclosed information from illegal use appears regardless of execution of any formalities concerning this information (its registration, obtaining of certificates etc.).
3. The rules on protection of undisclosed information shall not apply concerning the information which, in accordance with the legislation, may not be official or commercial secret (the information on legal persons, on the rights to property and transactions with it, being subject to the state registration; information subject to submission as the state statistical reporting etc.).
4. The right to protection of undisclosed information is valid, while the conditions, provided by Article 140(1) of this Code, are preserved.
Article 1011. Liability for Illegal Use of Undisclosed Information
1. The person who, without legal grounds, has obtained or disseminated the undisclosed information or is using it, must compensate the losses, caused by illegal use of such information, for the one who lawfully possesses this information.
2. If the person, illegally using the undisclosed information, has obtained it from the person, which had no right to disseminate it, and the acquirer of the information did not know and should not have known about it (fair acquirer), the lawful possessor of the undisclosed information shall have the right to demand compensation of losses from such acquirer after the date when the fair acquirer knew that use of this information is illegal.
3. The person, lawfully possessing undisclosed information, has the right to demand from the one, who uses it illegally, an immediate termination of its use. However, the court, taking into account the amount of expenses of the fair acquirer of the undisclosed information for its use, may permit its further using under conditions of the exclusive license for compensation.
4. The person, who autonomously lawfully has obtained the information, constituting contents of the undisclosed information, has the right to use this information irrespective of the rights of the possessor of the corresponding undisclosed information and shall not be liable to him for such use.
Article 1012. Transfer of Right to Protection of Undisclosed Information from Illegal Use
The person, who possesses the undisclosed information, may transfer all or a part of the data, constituting contents of this information, to another person under the license contract (Article 985).
The licensee must take proper measures for protection of the confidentiality of information, obtained under the contract, and has the same rights to its protection from illegal use by the third parties, as the licensor. Insofar otherwise not provided in the contract, the duty to preserve confidentiality of the information shall be borne by the licensee even after termination of the license contract, if the corresponding information remains to be the undisclosed information.
CHAPTER 67
Means of Individualization of Participants of Civil Turnover,
Goods, Works or Services
§ 1. Firm Name
Article 1013. Right to Firm Name
1. The legal person has an exclusive right to use the firm name on goods, packing of the goods, in advertisement, signboards, booklets, invoices, printed matters, official forms and other documentation, connected with its activity, as well as at demonstration of goods on exhibitions and fairs, which are conducted on the territory of the Republic of Belarus.
2. The firm name of the legal person is defined at approval of its Charter and is subject to registration by inclusion into the Unified State Register of Legal persons and Individual Entrepreneurs.
3. The firm name of the legal person, which is so similar to another firm name, which is already registered, that this may result in considering the corresponding legal persons to be the same, may not be registered.
Article 1014. Using Firm Name of Legal Person in Trademark
The firm name of the legal person may be used in a trademark, belonging to it.
Article 1015. Validity of Right to Firm Name
1. The exclusive right to the name, registered in the Republic of Belarus, as designation of the legal person, is valid on the territory of the Republic of Belarus.
For the name, registered or commonly recognized in the foreign state, the exclusive right on the territory of the Republic of Belarus is valid in cases, provided for by the legislation.
2. The validity of the right to a firm name terminates with liquidation of the legal person or with changing its firm name.
Article 1016. Alienation of Right to Firm Name
1. Alienation and transfer of the right to the firm name of the legal person is not permitted, except for the cases of reorganization of the legal person or alienation of the enterprise as a whole.
2. The holder of the right to a firm name may allow using of its name (issue the license) to another person. However, in so doing, the measures shall be stipulated in the license contract, excluding misleading the user.
§ 2. Trademark and Service Mark
Article 1017. Concept of Trademark and Service Mark
1. The trademark and service mark (hereinafter referred to as the trademark) shall be deemed to be the designation, promoting to make difference of the goods or services of one person from the similar goods or services of another persons.
2. Verbal designations, including personal names, combinations of colors, letters, digital, image-making, three-dimensional designations, including the shape of the goods or packing, as well as combinations of such designations, may be registered as the trademarks. Other designations may be registered as the trademarks in cases, provided by the legislative acts.
3. The trademark may be registered in any color or color combination.
Article 1018. Legal Protection of Trademark
1. The legal protection of the trademark on the territory of the Republic of Belarus shall be effectuated on the grounds of its registration in the patent bodies in accordance with the procedure, established by the legislation on trademarks and the service marks, or by virtue of the treaties of the Republic of Belarus.
2. The right to a trademark is protected by the state and shall be certified by a certificate.
3. The certificate for the trademark certifies the priority of the trademark, the exclusive right of the holder for trademark in relation to the goods, specified in the certificate, and contains the image of the trademark.
Article 1019. Exclusive Right to Trademark
1. The possessor of the trademark has an exclusive right to use the trademark and to dispose of it, and also the right to forbid using of the trademark to other persons.
2. Nobody may use the trademark, protected on the territory of the Republic of Belarus, for which the certificate is issued, without permit of its possessor.
Article 1020. Period of Validity of Registration
1. The registration of trademark is valid for ten years since the date of receiving the application in the patent body.
2. The period of validity of registration of the trademark may be prolonged upon application of the possessor, submitted within the last year of its validity, every time for ten years.
Article 1021. Collective Mark
1. The collective mark is a trademark of the association of legal persons, intended for designation of goods, produced and sold by this association, and having identical qualitative or other common characteristics.
2. The collective mark and the right to its using may not be transferred.
Article 1022. Cession of Right to Trademark
The rights to the trademark may be transferred by its possessor under the contract to other person concerning all or part of the goods, for which it is registered.
Cession of the rights to the trademark is not permitted, if it may result in misleading the user concerning the goods or its manufacturer.
Article 1023. Granting License for Using Trademark
The right to use the trademark may be granted by the possessor of the trademark (the licensor) to another person (the licensee) under the license contract.
The license contract shall contain the condition stipulating that the quality of licensee’s goods shall be not worse than the quality of licensor’s goods, and that that the licensor will effectuate supervision over fulfillment of this condition.
§ 3. Geographical Indication
Article 1024. Conditions of Legal Protection of Geographical Indication
1. The geographical indication shall be deemed to be the indication, which identifies the goods as originating from the territory of the country or from the region or the location on this territory, where the determined quality, reputation or other characteristics of goods are considerably connected with geographical origin of these goods.
The term "geographical indication" includes the terms "name of place of origin of goods" and "indication of origin of goods ".
2. The name of place of origin of goods shall be deemed to be the name of the country, settlement, location or another geographical object, used for indication of goods, the special characteristic of which are determined, solely or mainly, by the natural conditions or other factors, typical for this geographical object, or by the combination of these natural conditions and factors.
The historic name of the geographical object may be indicated as the name of place of origin of goods.
The indication, being the name of the geographical object or containing the name of the geographical object, but commonly used in the Republic of Belarus as the indication of the goods certain type, not connected with the place of its making. Shall nor be deemed to be the name of place of origin of goods.
3. The designation, directly or indirectly indicating the place of real origin or making of the goods, shall be deemed to be the indication of origin of goods.
The indication of origin of goods may be represented in the form of the name of geographical object or image.
4. The legal protection of the name of place of origin of goods in the Republic of Belarus shall be granted on the grounds of its registration in the patent body or by virtue of the treaties of the Republic of Belarus.
On the grounds of the registration, the certificate for the right to use the name of the place of origin of goods shall be issued.
The procedure and conditions of registration and issuing a certificate for the right to use the name of the place of origin of goods, deeming such certificate to be void, and termination of validity of the registration and of the certificate shall be defined by the legislation on the names of the place of origin of goods.
5. The legal protection of indication of the origin of goods shall be effectuated on the grounds of using this indication.
The legal protection of the indication of origin of goods consists of non-permission of using the indications of the origin of goods, which are false or mislead the user concerning the real place of the origin of goods. The indication of the origin of goods is not subject to the state registration.
Article 1025. Right to Using of Geographical Indication
1. The person, possessing the right to using of the geographical indication, shall have the right to place it on the goods, packing, in advertisement, booklets, invoices and to use in any other way in connection with bringing the goods into civil turnover.
2. The name of the place of origin of goods may be registered by several persons together for designation of the goods, produced by them on the territory of the determined geographical object, if the special characteristics of these goods are determined, solely or mainly, by the natural conditions or other factors, typical for this geographical object, or by the combination of these natural conditions and factors. The right to using of the name of the place of origin of goods belongs to each of these persons.
The right to using of the name of the place of origin of goods, registered in accordance with existing procedure, may be granted to any legal person or natural person, residing on the territory of the same geographical object and producing the goods with the same characteristics.
3. The person, who in good faith used the name of the geographical object, identical or similar with the registered name of the place of origin of goods, not less than for six months before the date of its first registration, preserves the right to further using of this name for the period, established by the patent body, but not more than for two years since the date of the specified registration.
4. Cession of the right to using of the geographical indication and granting the right of its using on the grounds of the license shall not be permitted.
Article 1026. Scope of Action of Legal Protection of Geographical Indications
1. In the Republic of Belarus, legal protection shall be granted for the geographical indications, located on the territory of the Republic of Belarus.
2. The legal protection of the name of the place of origin of goods, located in another state, shall be granted in the Republic of Belarus, if this name of the place of origin of goods is registered in the country of origin of goods and in the Republic of Belarus in accordance with this Code and the legislation on the name of the place of origin of goods.
3. The legal protection of indication of origin of goods, located in another state, is granted in the Republic of Belarus, if this indication is used in the country of origin of goods.
Article 1027. Period of Validity of Certificate for Right to Using of Name of Place of Origin of Goods
1. The certificate for the right to using of the name of place of origin of goods is valid for ten years since the date of submission of the application to the patent body.
2. The period of validity of the certificate for the right to using of the name of place of origin of goods may be prolonged upon the possessor’s application, submitted within the last year of validity of the certificate, for a period of ten years, with preservation of the conditions, providing for granting of the right to using of the name of place of origin of goods. Prolongation of validity of the certificate is possible without limitation of number of such prolongations.
Article 1028. Liability for Violation of legislation on Geographical Indications
1. The person, having the right to using of the geographical indication, may demand from anyone who uses this indication illegally, to terminate its use, to remove the illegally used geographical indication or designation, similar to it up to confusion, from the goods, packing, forms and similar documentation, to destruct manufactured images of geographical indication or designation, similar to it up to confusion, or, if it is impossible, to destruct the goods and (or) packing.
2. The person, possessing the right to using of the geographical indication, shall have the right to demand compensation of the incurred losses from the party violating this right.
CHAPTER 68
Unfair Competition
Article 1029. Inadmissibility of Unfair Competition
Unfair competition in the Republic of Belarus is not permitted.
The following is deemed to be the unfair competition:
1) any actions, capable by any way to cause confusion concerning legal persons, individual entrepreneurs, goods, works, services or entrepreneurial activity of the competitors;
2) making false statements, while carrying out the entrepreneurial activity, capable to discredit a legal person, individual entrepreneur, goods, works, services or entrepreneurial activity of the competitor;
3) indications or statements, using of which, while carrying out the entrepreneurial activity, may mislead concerning the nature, characteristics, fitness for usage or amount of goods, works, services of the competitor;
4) other actions, contrary to the requirements of this Code and other acts of legislation on competition, while carrying out the entrepreneurial activity.
Article 1030. Liability for Effectuation of Unfair Competition
1. The person, effectuating unfair competition, must terminate the illegal actions and publish the disclaimer of the disseminated information and actions, which constitute the contents of unfair competition.
2. The person, suffered from the unfair competition, shall have the right to demand compensation, from the unfair competitor, of the losses caused.
SECTION VI
INHERITANCE LAW
CHAPTER 69
General Provisions on Inheriting
Article 1031. Inheriting
1. At inheriting, the property of the deceased (the inheritance, inheritance property) is transferred to other persons in the unchanged form, as a single whole and at the same time (the universal succession), unless it arises otherwise from this Code and any other laws.
2. The right of inheritance is guaranteed. Inheriting is regulated by this Code and other acts of legislation adopted in accordance with it.
Article 1032. Grounds for Inheriting
1. The inheriting shall be effectuated by will and by operation of law.
2. The inheriting under the law shall take place, when the will is absent or determines the fate not for the whole inheritance, and also in other cases, established by this Code and other acts of legislation adopted in accordance with it.
Article 1033. Composition of Inheritance
1. The inheritance shall include all the rights and duties, the existence of which shall not terminate with the death of the testator, and which belonged to the testator at the time of opening the inheritance.
2. The rights and duties, inseparably connected with the personality of the testator, shall not be included in the inheritance:
1) the rights of membership (participation) in commercial and other organizations, being the legal persons, unless otherwise established by the law or the constituent documents;
2) the right to compensation of harm, caused to life or health;
3) the right and duties concerning the alimony obligations;
4) the right to pensions, allowances and other payments on the grounds of the legislation on labor and social security;
5) personal non-property rights, not connected with property rights.
3. The personal non-property rights and other nonmaterial benefits, belonging to the testator, may be effectuated and defended by the heirs, unless otherwise established by the legislation.
4. The inheritance shall include accumulation of share in a housing cooperative, housing construction cooperative, country cottage (dacha) cooperative, garage cooperative or other consumer cooperative, or apartment, country cottage (dacha), garage or other premises, the share for which is paid in full, and this property is registered for the testator on the right of ownership in accordance with the procedure established by the legislation. If the testator’s desire for registration of the specified property on the right of ownership was expressed in a written application, submitted to the competent bodies, but the procedure of registration was not completed in connection with the death of the testator, such property may be deemed, by the court, to be the inheritance property upon the demand of the interested persons.
Article 1034. Inheritance of Property, Being in Common Ownership
1. The death of the participant of the common joint property shall be the reason for determination of share of the deceased person in such property and dividing the common property or apportioning from it the deceased participant’s share in accordance with the procedure, established by Article 255 of this Code. In this case the inheritance is opened concerning the common property, falling to the deceased participant share, or, if it is impossible to divide the property in kind, concerning the value of such share.
2. The participant of the common joint property shall have the right to bequeath his share in the common property, that will be determined after his death in accordance with Clause 1 of this Article.
Article 1035. Opening of Inheritance
1. The inheritance is opened in the consequence of death of the citizen or declaring the citizen to be deceased by the court.
2. The time of inheritance opening is the day of death of the citizen, or, in case of declaring the citizen to be deceased, the day determined in accordance with Article 41(3) of this Code.
3. The persons, deceased at the same day, are considered, for the purposes of hereditary succession, as deceased simultaneously and not inheriting one after another. The inheritance is opened after each of them, and the heirs of each of them are called to inheriting.
Article 1036. Place of Inheritance Opening
The place of inheritance opening is the last place of living of the testator, or, if this place is unknown, the place of location of immovable property or the main part of this property, or, if there is no immovable property, the place of location of main part of the movable property.
Article 1037. Heirs
1. The citizens, being alive at the time of the inheritance opening, and those conceived during the life of the testator and born alive after opening the inheritance, may be the heirs by will or by operation of law.
2. The legal persons, which were been created at the time of opening the inheritance, the Republic of Belarus and its administrative territorial units may be the heirs by will.
Article 1038. Unworthy Heirs
1. The persons that have intentionally killed the testator or have made the attempt on the testator’s life, shall be debarred from inheriting both by will or by operation of law. The exception are the persons, concerning whom the testator has made the will already after the attempt on his life.
2. The persons, that promoted the calling of themselves or their near relatives to inheriting or the increase of the inheritance share, being due to them, by drawing up the forged will, making the intentional obstacle to effectuation of the testator’s last wish or other intentional illegal actions, shall be debarred from inheriting both by will or by operation of law.
3. At inheritance by operation of law, the parents shall be debarred from the inheritance after their children, concerning which they were deprived of the parental rights and were not restored in these rights at the time of opening the inheritance, and also the citizens, who fraudulently evaded from fulfillment of the duties of testator maintenance, placed on them by virtue of the act of the legislation, if this circumstance is confirmed in the judicial procedure.
4. The unworthy legal successor may be debarred from the inheritance by the court on the grounds of this Article upon the demand of the person, for whom such debarring creates property consequences connected with the inheriting.
5. The rules of this Article shall apply to the heirs, having the right to the mandatory share in the inheritance.
6. The rules provided for in Clauses 1, 2 and 4 of this Article, shall respectively apply to the gift by will (Article 1054).
Article 1039. Escheated Inheritance
1. If there are no heirs either by operation of law, or by will, or nobody from the heirs have the right to inherit (Article 1038), or all of them have refused from the inheritance, the inheritance shall be deemed to be escheated.
2. The escheated inheritance shall be transferred into the ownership of the administrative territorial unit at the place of location of the corresponding property, comprising the inheritance.
3. The inheritance may be deemed to be escheated by the court on the grounds of the applications of the bodies of local administration and self-government at the place of opening the inheritance after expiry of one year since the day of opening the inheritance. The inheritance may be deemed to be escheated before expiry of the specified period, if the expenses, connected with the inheritance protection and control over it, exceed its value.
4. Protection of the escheated inheritance and control over it shall be effectuated in accordance with Articles 1066-1068 of this Code.
CHAPTER 70
Inheritance by Will
Article 1040. General Provisions
The expression of the citizen’s wish on disposal of the property, belonging to the citizen, in case of death, shall be deemed to be a will.
2. The will may be made by the person, having full active legal capacity.
3. The will shall be made personally. Making of the will through the representative shall not be permitted.
4. The will may contain the orders, given by only one person. Making the will by two or more persons shall not be permitted.
5. The will is a unilateral deal, validity of which shall be determined at the time of drawing up the will.
Article 1041. Freedom of Will
1. The citizen may bequeath all his property or its part to one or several persons, both being and not being the heirs by operation of law, and also to the Republic of Belarus and its administrative territorial units.
2. The testator shall have the right, without explanation of reasons, to disinherit one, several or all the heirs by operation of law. The disinheritance of the heir by operation of law shall not extend to his descendants, inheriting by the right of presentation, unless otherwise arise from the will.
3. The testator has the right to make the will, containing the orders about any property, including such the property, for which the testator may become the owner at the day of opening the inheritance.
4. The testator has the right to condition the acquisition of inheritance by the specific lawful condition concerning the nature of the heir’s behavior, cancel and change the will after its making at any time and is not obliged herewith to indicate or to report to whomever about the reasons of canceling or change of the will.
5. The freedom of will shall be limited by the rules on the mandatory share in inheritance (Article 1064), on non-permission to place on the persons, appointed to be the heirs in the will, the duty in turn to dispose of the property, bequeathed for them, in some determined way in case of their death, on non-permission of inclusion in the will of illegal conditions or conditions of heir’s behavior for acquisition of inheritance, which are impracticable for the heir because of objective reasons.
Article 1042. Sub-appointing of Heirs
1. The testator may, for the case if the heir, specified in the will, would die before opening the inheritance, or would not accept it or would refuse from it, or would be debarred from the inheriting as an unworthy heir in accordance with the procedure, provided by Article 1038, and also for the case of failure of hair by will to meet the lawful conditions specified by the testator, to appoint another heir (sub-appointing of heir).
2. Any person, who may be the hair in accordance with Article 1037 of this Code, may be the sub-appointed heir.
3. The refusal of the heir by will not for benefit of the sub-appointed heir shall not be permitted.
Article 1043. Shares of Heirs in Property. Inheriting of Part of Property Remained Non-bequeathed
1. The property, which is bequeathed to two or several heirs without specifying of their shares in the inheritance and without specifying of what things or the rights, included in the inheritance, shall be intended to whom from the heirs, is considered to be bequeathed to the heirs in equal shares.
2. An indivisible thing (Article 133), bequeathed to two or several heirs, is considered to be bequeathed in shares, corresponding to the value of parts of this thing, bequeathed to the heirs.
3. The part of property, remained non-bequeathed, shall be distributed between the heirs by operation of law, called to inheriting in accordance with the procedure, provided for by Articles 1056-1065 of this Code. Those heirs by operation of law, to whom another part of the property was bequeathed by will, shall be also relegated to these heirs.
Article 1044. General Rules on Form of Will
1. The will shall be drawn up in writing and certified by a notary. Certification of the will by other persons is permitted in cases, provided by Articles 1045(6), 1047 and 1048(2) of this Code. Non-observance of the rules of this Code on the written form of the will and its certification shall entail invalidity of the will.
2. The will shall be signed by the testator with his own hand. If the testator cannot sign a will with his own hand because of physical disability, disease or illiteracy, then, upon the testator’s request, the will may be signed, in presence of the notary or any other person certifying the will in accordance with the law, by another person, with indication of the reasons, because of which the testator could not sign the will with his own hand. The surname, own forename, patronymic and the permanent place of residence of person signing the will shall be specified in the will.
3. When, in accordance with this Code, the witnesses shall be present at drawing up, signing or certification of the will, the following persons may not be such witnesses, and also may not sign the will instead of the testator:
1) the notary or other person, certifying the will;
2) the person, for benefit of whom the will is drawn up or a gift by will is made, the spouse of such person, his children, parents, grandchildren and great-grandchildren, and other heirs by will and by operation of law;
3) the citizen, not having full active legal capacity;
4) illiterate persons;
5) the person, having previous conviction for giving the false evidences;
6) the citizens with such physical disabilities, which prevent them from full understanding of the essence of the events taking place;
7) the persons not knowing the language sufficiently, with the exception of the cases when the closed will is accepted by the notary.
4. Place and the date of certification of the will shall be specified in it, except for the case, provided for by Article 1046 of this Code.
Article 1045. Notarially Certified Will
1. The notarially certified will shall be written by the testator or by the notary from the words of the testator in the presence of witness. When writing the will from the words of the testator by the notary, conventional technical means (the typewriter, personal computer etc.) may be used.
2. The will, written by the notary from the words of the testator, shall be completely read by the testator in the presence of the notary and the witness before signing the will. If the testator is unable to read the will because of the physical disability, disease or illiteracy, the text of will shall be announced for the testator by the witness in the presence of the notary; in such a case, the appropriate record shall be made in the will, with indication of the reasons, for which the testator was unable to read the will personally.
3. If the notarially certified will is drawn up in the presence of the witness, the surname, own forename, patronymic and the permanent place of residence of the witness shall be specified in the will.
4. The notary must warn the witness and the person, signing the will instead of the testator, about the need to keep secret of the will (Article 1050).
5. At certification of the will, the notary must explain to the testator the contents of Article 1064 of this Code.
6. In the cases when the right of execution of notarial actions is granted by the law to authorized officials of the local executive and dispositive bodies, diplomatic agents of the diplomatic representation of the Republic of Belarus, consular officials of consular offices of the Republic of Belarus and consular institutions of the Republic of Belarus, the will may be certified, instead of the notary, by the respective official, subject to observance of the requirements of this Code on the form of the will and the procedure of its notarial certification.
Article 1046. Closed Will
1. Upon the testator’s wish, the will shall be certified by the notary without familiarizing with its contents (closed will).
2. The closed will shall be written and signed by the testator with his own hand. Non-observance of these rules entails invalidity of the will, about which the notary must warn the testator.
3. The closed will shall be transferred in the presence of two witnesses, which put their own signatures on the envelope. Then the envelope, signed by the witnesses and by the testator, with the note on explanation of the requirements, established by Clause 2 of this Article, for the testator, shall be sealed, in the presence of the testator and the witnesses, into another envelope, on which the notary makes an inscription, containing information about the person, from whom the closed will is accepted by the notary, about the place and the date of its acceptance, about the surname, own forename, patronymic and the place of residence of each witness. While accepting the envelope with the will from the testator, the notary must explain to the testator the contents of Article 1064 of this Code.
4. At arrival of the information about the death of the person, who made a closed will, the notary must check such information through the bodies of registration of the acts of the civil state. At arrival of the copy of act record about the death or at submission of the certificate of death of such person by the interested persons, the notary, not later than within fifteen days, shall open the envelope with the will, in mandatory presence of two witnesses. The interested person shall have the right to present at opening the envelope.
5. The notary shall draw up a protocol of opening the envelope with the will. In this protocol, the following data shall be reflected: the place, date and time of opening the envelope; the surname, own forename, patronymic and the permanent place of residence of the notary, witnesses and the interested persons being present; the place of their permanent residence; state of the envelopes and the contents of the records made on them; the fact of announcement by the notary of the document, contained in the envelope; full text of this document; signatures of the notary and witnesses.
6. Not later than at the day following the day of opening the envelope with the will, the notary must send the messages to the interested persons about their right to inheriting.
Article 1047. Wills Equated to Notarially Certified
1. There shall be equated to notarially certified wills:
1) wills of the citizens, being treated in hospitals, military hospitals, other inpatient treatment institution, or living in nursery homes for old and disabled persons, certified by the head doctors, their deputies for medical affairs or doctors on duty of these hospitals and other treatment institutions, and by the heads of the military hospitals, directors or head doctors of the nursery homes for old and disabled persons;
2) wills of the citizens, being during voyage on the ships sailing under the state flag of the Republic of Belarus, certified by the captains of these ships;
3) wills of the citizens, residing in exploratory, Arctic or other similar expeditions, certified by the heads of these expeditions;
4) wills of military servicemen in places of location of military units, where there are no notaries, and wills of the civil persons, working in these units, members of their families and members of the families of military servicemen, certified by the commanders of these units;
5) wills of the persons, held in institutions for the service of punishment in the form of arrest, restriction of freedom, deprivation of freedom, or places of detention, certified by heads of the respective institutions for the service of punishment or chiefs of administrations of the places of detention.
2. The wills, provided for in Clause 1 of this Article, shall be signed by the testator in the presence of a witness, who also shall sign the will.
In all other respects, the rules of Article 1045 of this Code shall respectively apply to such wills, except for a requirement of notarial certification of the will.
3. The will certified in accordance with this Article shall be sent, as soon as possible, by the person who certified the will, through the body of justice to the notary at the place of residence of the testator.
4. The procedure of certification of wills and execution of other actions, related to such certification, by the persons, to whom the right of certification of the wills is granted in accordance with this Article, shall be determined by the legislation.
Article 1048. Will Disposition by Monetary Means in Banks
1. The rights to monetary means, contributed by a citizen in the deposits or being on any other account of the citizen in the bank, may be bequeathed by the citizen on his discretion in accordance with the procedure provided by Articles 1044-1047 of this Code, or by execution of will disposition directly in that bank, in which this account is kept. Concerning the monetary means on the account, such will disposition shall have the power of the notarially certified will.
2. The will disposition for the rights to the monetary means in the bank shall be written with the own hand and signed by the testator, with indication of date of its drawing up, and shall be certified by the bank clerk, having the right to accept for fulfillment the client’s orders concerning the monetary means on the client’s account in accordance with the procedure determined by the legislation.
3. The rights to the monetary means, concerning which the will disposition is made in the bank, are included in the inheritance and are inherited on the common grounds in accordance with this Code. These money means shall be handed over to the heirs on the grounds of the certificate of the right to inheritance and in accordance with it. Before submission to the bank of the certificate of the right to inheritance, the monetary means, not exceeding one hundred times the amount of the basic value, established by the legislation, may be issued from the testator’s account to the heirs, specified in the will disposition.
Article 1049. Cancellation and Changing of Will
1. The testator shall have the right at any time to cancel the will, made by him, as a whole, or to change it by cancellation, change or addition of individual will dispositions, contained in it, or by making a new will.
The will may be cancelled by destruction of all its copies by the testator or, upon the written order of the testator, by the notary.
2. The will, drawn up earlier, is cancelled by the new will completely or in part in which it is contrary to it.
3. The will, made earlier and cancelled completely or partially by the new will, is not restored, if the latter, in turn, is cancelled or changed by the testator.
Article 1050. Secret of Will
The notary or another person, certifying the will, the witnesses, and the citizen, signing the will instead of the testator, shall have no right, before opening the inheritance, to divulge the information, concerning contents of the will, its drawing up, cancellation or changing.
Article 1051. Interpretation of Will
During interpretation of the will by the notary, by the executor of the will or by the court, the literary sense of the words and expressions, used in it, shall be taken into consideration. If the literary sense of some provisions of the will is unclear, it shall be determined by comparing of this provision with other provisions and the sense of the will as a whole. At so doing, the most full effectuation of the assumed will of the testator shall be provided.
Article 1052. Invalidity of Will
1. The will may be deemed to be invalid by the court upon a suit of the person, whose rights or interests are violated by this will. Contestation of he will before opening the inheritance is not permitted.
2. The will shall be deemed to be invalid in case of violation of the rules on the form of the will or other provisions of this Code, entailing invalidity of the will or invalidity of the transactions (Paragraph 2 of Chapter 9). Slips of pen and other insignificant violations of the procedure of drawing up, signing or certification of the will shall not considered as the grounds for deeming it to be invalid, if it is proved that they can not affect understanding of the testator’s will expression.
3. Both will as a whole and individual will dispositions, contained in it, can be deemed to be invalid.
Invalidity of the individual will dispositions shall not affect the remaining part of the will, if it is possible to assume that it would be included in the will in case of absence of the dispositions, deemed to be invalid.
4. Deeming the will to be invalid shall not deprive the persons, specified in it as heirs or as the gift recipients, the right to inherit by operation of law or on the grounds of another will which is valid.
Article 1053. Execution of Will
1. The testator may entrust the execution of will to the person, specified by him in the will, not being the heir (the executor of the will, the executor). The consent of this person to be an executor shall be expressed by him either by inscription, made with his own hand on the will itself, or in the application, enclosed to the will. If the executor is not nominated by the testator, then, by the agreement between the heirs, they shall have the right to entrust the execution of will to one of them or to another person. If such agreement cannot be reached, the executor may be nominated by the court upon the demand of one or several heirs from the persons, offered by them to the court.
The executor shall have the right to refuse from execution of the duties, entrusted to him by the testator, at any time, subject to preliminary notifying of heirs by will. The exemption of he executor from his duties is possible also by the court decision upon the application of the heirs.
2. Unless otherwise established in the will, the executor shall take measures, necessary for execution of the will, including:
1) provide transfer to the heirs of the property, which is due to them in accordance with the wish of the testator and the law;
2) to take the measures, autonomously or through the notary, for protection of the inheritance and control over it in the interests of the heirs;
3) to obtain the amounts and other property, due to the testator, for transferring thereof to the heirs, if these amounts are not subject to transfer to other persons (Article 1090(1));
4) to perform the will imposition or to demand from the heir by will to perform the gift by will (Article 1054) or the will imposition (Article 1055).
3. For the purpose of execution of the testator’s wish, the executor has the right in his own name to conduct affairs, connected with the control over inheritance and execution of the will, including those in the court and other state bodies.
4. The executor shall have the right to compensation of the necessary expenses, connected with the execution of will, at the expense of the inheritance, and to reception of the remuneration over the expenses at the expense of the inheritance, if this is provided for by the will.
Article 1054. Gift by Will
1. The testator has the right to entrust to the heir by will to perform, at the expense of the inheritance, some obligations (the gift by will) for benefit of one or several persons (the recipients of gift by will), who shall acquire the right to demand execution of the gift by will.
The recipients of gift by will may be the persons, which can be or not be the heirs by operation of law.
2. The subject of the gift by will may comprise transferring the thing, being included into the inheritance, to the recipient of gift by will into ownership or on another right in rem, or in use, of acquisition and transfer of the property, not included into the inheritance, to the recipient of gift by will, or execution of the determined works or rendering of the determined services for the recipient of gift by will etc.
3. The heir, to whom the gift by will is entrusted by the testator, shall execute it only within the actual value of the inheritance transferred to this heir, minus the part of the testator’s debt falling on this inheritance.
If the heir, to whom the gift by will is entrusted, has the right to the mandatory share in the inheritance, his duty to perform the gift by will shall be limited by the cost of the inheritance transferred to this heir, which exceeds the amount of his mandatory share.
If the gift by will is entrusted to all or several heirs, the gift by will shall encumber each of them in proportion to the share in the inheritance, insofar as not provided otherwise by the will.
4. To the heir, to whom the dwelling house, apartment or other dwelling premises are transferred, the testator has the right to entrust the duty to grant using of these premises or determined part thereof to the other person for life. In case of the following transfer of the ownership for these dwelling premises, the right of using for life shall preserve power.
The right to using for life is non-alienable, non-transferable and shall not subject to transfer to the heirs of the recipient of gift by will.
The right to using for life, granted to the recipient of gift by will, shall not be the ground for residence of his family members, unless specified otherwise in the will.
5. In case of death of the heir, to whom the gift by will was entrusted, or in case of rejection of the inheritance by this heir, the execution of the gift by will shall be transferred to other heirs, who have obtained the share in the inheritance, or to the administrative territorial unit, if the property became the escheated one.
The gift by will shall not be executed in case of death of the recipient of gift by will before opening the inheritance or after such opening, but before the time when the heir by will has already accepted it.
6. The recipient of gift by will shall not be liable for the debts of the testator.
Article 1055. Imposition
1. The testator may impose on one or several heirs by will the duty to make some actions of propriety or non-propriety nature, directed at effectuation of some publicly useful aim. Such duty may also be imposed on the executor, subject to allocation of part of the property by the testator for execution of imposition by the executor.
The subject of imposition may also comprise maintenance of animals, which belonged to the testator, supervision and care for these animals.
2. The rules contained in Article 1054 of this Code shall apply respectively to the imposition, the subject of which comprise the actions, having a propriety nature.
3. The right to demand execution of the imposition in the court shall belong to the interested persons, to the executor and to any of the heirs, insofar as otherwise not provided for in the will.
CHAPTER 71
Inheritance by Operation of Law
Article 1056. General Provisions
1. The heirs by operation of law shall be called to inheriting in accordance with the order of priority, provided by Articles 1057-1063 of this Code.
The heirs of each priority shall inherit in equal shares, with the exception of heirs, inheriting by the right of presentation (Article 1062).
2. At the inheriting by operation of law, the adoptees and descendants thereof, on one side, and the adoptive parent and relatives thereof, on the other side, shall be equated in full amount to the relatives by birth (the relatives by blood).
3. The adoptee and descendants thereof shall not inherit by operation of law after the death of parents and other relatives by birth of the adoptee, and the parents and other relatives by birth of the adoptee shall not inherit by operation of law after the death of the adoptee and descendants thereof, with the exception of the cases, specified in Clause 4 of this Article.
4. In cases when in accordance with the Code on marriage and family of the Republic of Belarus, upon the court decision, the adoptee preserves the rights and duties concerning one of the parents and other relatives by birth, the adoptee and descendants thereof shall inherit by operation of law after the death of these relatives, and the latter shall inherit by operation of law after the death of the adoptee and descendants thereof.
5. The heirs by operation of law of the each following priority obtain the right to the inheriting in case of absence of the heirs of preceding priority, or debarring them from the inheritance, or non-accepting of the inheritance by them, or their refusal from the inheritance.
6. The rules of this Code on priority of calling of heirs by operation of law to inheriting and on the amount of their shares in the inheritance may be changed by the notarially certified contract of the interested heirs, concluded after opening the inheritance. Such contract shall not affect the rights of the heirs, not participating in it, and also of the heirs, having the right to the mandatory share.
Article 1057. Heirs of First Priority
1. The heirs by operation of law of the first priority shall be the children, spouse and parents of the deceased.
2. The grandchildren of the testator and their direct descendants shall inherit by the right of presentation.
Article 1058. Heirs of Second Priority
1. In case of absence of the heirs of first priority of the deceased, the heirs by operation of law of the second priority shall be blood or non-blood brothers and sisters of the testator.
2. The children of brothers and sisters of the testator (the nephews and nieces of the testator) shall inherit by the right of presentation.
Article 1059. Heirs of Third Priority
In case of absence of the heirs of first and second priority of the deceased, the heirs by operation of law of the third priority shall be the grandfather and the grandmother of the deceased, both on the part of the father and on the part of the mother.
Article 1060. Heirs of Fourth Priority
1. In case of absence of the heirs of first, second and third priority of the deceased, the heirs by operation of law of the forth priority shall be blood and non-blood brothers and sisters of the testator’s parents (the uncles and aunts of the testator).
2. The cousins of the testator shall inherit by the right of presentation.
Article 1061. Heirs of Following Priorities
1. In case of absence of the heirs of first, second, third and fourth priority of the deceased (Articles 1057-1060), the testator’s relatives of the third, fourth, fifth and sixth degree of relation, not relegated to the heirs of the preceding priorities, shall obtain the right to inherit by operation of law; in so doing, the relatives of closer degree of relation shall debar the relatives of more distant degree of relation from inheriting.
2. The degree of relation is determined by the number of the births, separating the relatives from one another. The birth of the testator himself shall not be included in this number.
3. In accordance with this Article, the following persons shall be called to inheriting as:
1) relatives of the third degree of relation: the great-grandfathers and great-grandmothers of the testator;
2) relatives of the fourth degree of relation: the children of full nephews and nieces of the testator (the grandnephews and grandnieces) and full brothers and sisters of grandfathers and grandmothers of the testator (the grand-uncles and grand-aunts);
3) relatives of the fifth degree of relation: the children of grandnephews and grandnieces of the testator (the great grandnephews and great grandnieces), the children of first cousins of the testator, and the children of grand-uncles and grand-aunts of the testator;
4) relatives of the sixth degree of relation: the children of relatives of the fifth degree of relation.
4. The heirs of one degree of relation, called to inheriting, shall inherit in equal shares.
Article 1062. Inheritance by Right of Presentation
1. In cases, provided for by Articles 1057(2), 1058(2) and 1060(2) of this Code, the share of the heir by operation of law, deceased before opening the inheritance or simultaneously with the testator, shall be transferred by the right of presentation to his corresponding descendants and shall be divided between them equally.
2. The descendants of the heir by operation of law, disinherited by the testator, if this is specified in the will (Article 1041(2)), shall not inherit by the right of presentation.
3. The descendants of the heir, deceased before opening the inheritance simultaneously with the testator, which could be debarred from the inheritance on the grounds specified in Article 1038 of this Code, may be debarred by the court from the inheritance by the right of presentation, if the court will consider that calling them to inheriting is contradictory to the grounds of moralities.
Article 1063. Dependents of Testator Not Capable for Labor
1. The citizens relegated to the heirs by operation of law, specified in Articles 1058-1061 of this Code, and not capable for labor at the time of opening the inheritance, but not relegated to the heirs of priority which is called to inheriting, shall inherit together with the heirs of this priority, if they were the dependents of testator for at least a year before the death of the testator, regardless of whether or not they lived with the testator. The disabled dependents, called to inheriting on the grounds of this Clause together with the heirs of one of the preceding priorities, shall inherit not more than one fourth of the inheritance; however, if the testator was obliged by the law to maintain them, they shall inherit equally with the heirs of this priority.
2. The citizens which are, though not being the heirs specified in Article 1057-1061 of this Code, but, at the time of opening the inheritance, were not capable for labor and within not less than one year were the dependents of the testator and lived with him. If there are other heirs by operation of law, they shall inherit together with heirs of that priority, which is called to inheriting, but not more than one fourth of the inheritance. In case of absence of other heirs of the deceased, the specified dependents of the testator, not capable for labor, shall inherit autonomously in equal shares.
Article 1064. Right to Mandatory Share in Inheritance
1. The children of the testator, which are minors or not capable for labor, spouse and parents of the testator, which are or not capable for labor, shall inherit, regardless of the will contents, not less than half the share, which should be due to each of them in case of inheriting by operation of law (the mandatory share).
2. For calculation of the mandatory share, there shall be taken into consideration all that the heir, having the right to such share, shall obtain from the inheritance on any grounds, including the value of the property, consisting of usual household goods, and the value of the gift by will, established for benefit of such heir.
The mandatory share shall be separated from the residuary estate, but if the latter is insufficient from the demised property.
If the exercise of the right to mandatory share in inheritance entails the impossibility to transfer to the testamentary heir the property of which the heir which has the right to mandatory share did not make the use while the testator was alive, and the testamentary heir used as residence (dwelling house, apartment, other dwelling premises, dacha, and so on) or used as the principal source of funds for living (instruments, art studio and so on), the court may, taking into account the property status of heirs which have the right to mandatory share, decrease the size of the mandatory share.
3. Any restrictions and encumberments, established in the will for the heir, having the right to the mandatory share in the inheritance, are valid only concerning the part of the inheritance, transferred to such heir, which exceeds the mandatory share.
Article 1065. Rights of Spouse at Inheriting
1. The right of inheritance, belonging to the spouse by virtue of the will or the law, does not affect spouse’s other property rights, related to marriage with the testator, including the right of ownership to the part of property, jointly acquired while being married.
2. By the decision of the court, the spouse may be debarred from inheriting by operation of law, except for the inheritance on the grounds for Article 1064 of this Code, if it would be proved that marriage with the testator really terminated before opening the inheritance, and the spouses lived separately and did not run the common household during at least five years before opening the inheritance.
Article 1066. Inheritance Protection and Administration
1. To defend the rights of the heirs, the recipients of gift by will and other interested persons, the notary at the place of opening the inheritance shall take the measures, specified in Articles 1067 and 1068 of this Code and other necessary measures for inheritance protection and administration.
2. The measures for inheritance protection and administration shall be taken by the notary upon the application of one or several heirs, the executor, body of local administration and self-government or other persons, acting in the interests of preservation of the inheritance property. The notary has the right to take measures for inheritance protection and administration on own initiative.
3. For the purpose of determining the composition of inheritance and its protection, the notary has the right to request the banks and non-bank credit and financial institutions about the data concerning money (currency), currency values and other values, belonging to the testator, which are available in the deposits or on the accounts, or transferred for safekeeping in these banks or institutions. The notary may report the information obtained only to the executor and to the heirs.
4. The measures for the inheritance protection and administration shall be effectuated from the day of making the inventory in accordance with Article 1067 (1) of this Code for the period, determined by the notary, taking into consideration the nature and value of the inheritance and the time, necessary for the heir, but not more than for one year.
5. The inheritance protection and administration shall be effectuated for compensation (Article 1085), unless otherwise provided for by the legislation.
6. If the inheritance property is located in different places, the notary at the place of opening the inheritance shall, through the bodies of justice, submit the order for protection and administration of this property, mandatory for fulfillment, to the notary or to the official, authorized to effectuate the notarial actions, at the place of location of the corresponding part of the inheritance property.
Article 1067. Measures for Protection of Inheritance
1. For protection of the inheritance, the notary shall make the inventory of inheritance property, at participation of two witnesses, meeting the requirements, established Article 1044(3) of this Code, and the interested persons, wishing to present at making an inventory of the property.
2. The money in cash (currency), included in the inheritance, shall be contributed in the deposit of the notary, a diplomatic agent of the diplomatic representation of the Republic of Belarus, a consular official of the consular office of the Republic of Belarus, and the currency values, articles made of precious stones and metals, securities, not requiring administration, shall be transferred to the bank or non-bank credit and financing institution for storage under the contract in accordance with the procedure, provided for by Article 811 of this Code.
3. The weapons, included in the inheritance, shall be transferred by the notary for storage to the bodies of internal affairs.
4. The property, included into the inheritance, not specified in Clauses 2 and 3 of this Article, if it does not require administration, shall be transferred by the notary under the contract for storage to anybody of the heirs, or, if it is impossible to transfer it to the heirs, to another person, on discretion of the notary.
5. The procedure of making an inventory of the inheritance property by the notary and taking measures by the notary to protect this property, including mandatory and other conditions of the contracts for its storage, as well as the procedure of determining the remuneration for its storage, shall be established by the legislation.
Article 1068. Measures for Inheritance Administration
1. If there is a property in the inheritance, requiring not only protection, but also administration (the enterprise, the share in the charter capital of the business company or the partnership, securities, the exclusive rights etc.), the notary, in accordance with Article 909 of this Code, as the founder of management, shall conclude the contract of trust management of this property.
2. The mandatory and other conditions of the contract of trust management of the inheritance property, the procedure of its conclusion and determination of the amount of remuneration for the trustee manager are established by the legislation in accordance with the rules of Chapter 52 of this Code, unless otherwise arise from the essence of the relations concerning the trust management of the inheritance.
CHAPTER 72
Acquisition of Inheritance
Article 1069. Acceptance of Inheritance
1. To acquire the inheritance, the heir shall accept it.
For acquisition of the escheated inheritance (Article 1039) acceptance of inheritance is not required. Such inheritance is transferred to the ownership of the administrative territorial unit on the grounds of the court decision, by which the inheritance is deemed to be escheated.
2. Acceptance of part of the inheritance by the heir means acceptance of the whole inheritance due to this heir, irrespective of the contents and location of the inheritance.
Acceptance of inheritance under the condition or with the proviso shall be not permitted.
3. Acceptance of inheritance by one or several heirs does not mean acceptance of inheritance by the rest of the heirs.
4. The inheritance accepted shall be deemed to be belonging to the heir since the time of opening the inheritance regardless of the time of the state registration of the heir’s right to this property, if this right is subject to registration.
5. Non-acceptance of inheritance by the heir shall entail the same consequences, as the refusal from the inheritance without specifying the person, for whose benefit the heir has refused from the inheritance, insofar as otherwise established by the law.
Article 1070. Ways of Acceptance of Inheritance
1. Acceptance of inheritance shall be effectuated by submission to the notary at the place of opening the inheritance of the application from the heir for the acceptance of inheritance, or for issuing the certificate of the right to inheritance.
The acceptance of inheritance through a representative is possible, if the authorization for such acceptance is specifically provided for in the power of attorney.
2. It shall be deemed, unless proved otherwise, that the heir has accepted the inheritance, if the heir actually came into possession or managing over the inheritance property, in particular, when the heir:
1) has taken measures for preservation of the property, for its protection from infringements or claims of the third parties;
2) has effectuated, at own expense, the charges on maintenance of the property;
3) has paid, at own expense, the debts of the testator or has acquired from the third parties the amounts due to the testator.
Article 1071. Period for Acceptance of Inheritance
1. The inheritance may be accepted during six months since the day of opening the inheritance.
2. If the right of inheritance appears for other persons in case of refusal of the heir from the inheritance, they may accept the inheritance during the remained part of the period, specified in Clause 1 of this Article, or, if this part is less than three months, during three months.
3. The persons, for whom the right of inheritance appears only in case of non-acceptance of the inheritance by other heir, may accept the inheritance before the expiry of three months since the day of the expiry of the period, specified in Clause 1 of this Article.
Article 1072. Acceptance of Inheritance After Expiry of Established Period
1. Upon the application of the heir, who has missed the period for acceptance of the inheritance (Article 1071), the court may deem this hair as accepted the inheritance, if the reasons of missing the specified period would be deemed to be reasonable, in particular, if the court would determine that this period was missed because the heir did not know and should not have known about opening the inheritance, and under the condition that the heir, who has missed the period for acceptance of the inheritance, applied to the court within six months after the reasons of missing the period have ceased to exist.
After deeming the heir as accepted the inheritance, the court shall resolve the questions of rights of other heirs to the inherited property, resulting thereof, and shall deem to be invalid the certificates for the right to inheritance issued earlier. In this event, issuing of a new certificate of the right to inheritance is not required.
2. The inheritance may be accepted by the heir after expiry of the period, established for its acceptance, without applying to the court, under the condition of consent of all the other heirs, who have accepted the inheritance. The signatures of these heirs under the documents, containing such consent, shall be certified in accordance with the procedure, specified in Article 1083(2) of this Code. Such agreement of the heirs shall be the ground for canceling by the notary of the certificate of the right to inheritance right, issued earlier, and for issuing a new certificate.
If on the ground of the certificate of the right to inheritance issued earlier and later annuled by the notary was effectuated the state registration of rights to immovable property, the new certificate issued by the notary shall be the ground for introducing respective changes in the record of the state registration.
3. The heir, who accepted the inheritance in accordance with this Article after expiration of the established period, has the right to reception of the inheritance, due to him in accordance with the rules of Article 973, 974, 976 and 977 of this Code.
In the event, specified in part one of Clause 2 of this Article, these rules shall be applied insofar as otherwise is not provided for by the notarially certified agreement between the heirs.
Article 1073. Transfer of Right to Acceptance of Inheritance (Inheritance Transmission)
1. If the heir, called to the inheritance by will or by operation of law, deceased after opening the inheritance, not having accepted it, the right to the acceptance of inheritance, which was due to this heir, shall pass to his heirs.
2. The right to accept the inheritance, belonging to the deceased heir, may be effectuated by his heirs on the common grounds in accordance with Articles 1069 to 1072 of this Code.
If the part of the period for acceptance of inheritance, remained after the death of the heir, is less than three months, it is extended up to three months.
After the expiry of the period of acceptance of inheritance, the heirs of the deceased heir may be deemed by the court as accepted the inheritance in accordance with Article 1072 of this Code, if the court would deem the reasons of missing this period by the heirs of the deceased heir to be reasonable.
3. The right of the heir to accept the part of the inheritance as the mandatory share (Article 1064) shall not be transferred to his heirs.
Article 1074. Right to Refuse from Inheritance
1. The heir has the right to refuse from the inheritance within the period, established for acceptance of the inheritance (Article 1071), including in the event when the heir has already accepted the inheritance.
If the heir has accepted the inheritance and has actually came into possession or managing over the inheritance property (Article 1070(2)), the court may upon the application of this heir to deem his as refused from the inheritance even after expiry of the specified period, if the reasons for missing the period would be deemed y the court to be reasonable.
2. The refusal from the inheritance may not be subsequently changed or recalled.
3. The refusal from the inheritance shall be effectuated by submission of the heir’s application to the notary at the place of opening the inheritance.
If the application is submitted to the notary not by the heir himself, the heir’s signature on such application shall be certified by the notary or by the official authorized to execute notarial actions (Article 1045 (6)).
The refusal from the inheritance through a representative is possible, if the authorization for such refusal is specifically provided for in the power of attorney.
4. The refusal from the inheritance in the instances when the heir is the minor or the citizen, deemed to lack active legal capacity or deemed to have limited active legal capacity, is permitted subject to preliminary permission of the bodies of trusteeship and guardianship.
Article 1075. Refusal from Inheritance for Benefit of Another Person, Refusal from Part of Inheritance or Refusal under Condition
1. At refusal from the inheritance, the heir has the right to specify that he has refused from it for benefit of other persons from those who are the heirs by will or by operation of law of any priority, including those who inherit by the right of presentation.
A refusal for benefit of another person shall not be permitted:
1) from the property, inherited by will, if all the property of the testator is bequeathed to the heirs appointed by him;
2) from the mandatory share in the inheritance (Article 1064);
3) if the heir is sub-appointed for the heir (Article 1042).
2. The refusal from the inheritance with a proviso or under the condition shall not be permitted.
3. The refusal from part of the inheritance due to the heir is not permitted. However, if the heir is called to the inheritance both by will and by operation of law, he shall have the right to refuse from the inheritance due to him on one of these grounds or on both grounds.
Article 1076. Right to Refuse from Gift by Will
1. The recipient of gift by will shall have the right to refuse from reception of the gift by will.
The refusal from the part of property due to the recipient of gift by will, refusal for benefit of another person, with proviso or under the condition shall not be permitted.
2. If the recipient of gift by will is simultaneously the heir, his right, provided for by this Article, shall not depend on his right to accept the inheritance or to refuse from it.
3. If the recipient of gift by will has refused from the gift by will, the heir, who is obliged to execute the gift by will, shall be relieved from the duty of its execution.
Article 1077. Increase of Inheritance Shares
1. If the heir would not accept the inheritance, refuse the inheritance without specifying another heir, for whose benefit he refuses from the inheritance, would be debarred from the inheritance on the grounds specified in Article 1038 of this Code or in the consequence of deeming the will to be invalid, that part of the inheritance, which should be due to such heir eliminated, shall be transferred to the heirs by operation of law, called to the inheritance, and is distributed between them in proportion to their inheritance shares.
If the testator bequeathed all the property to the heirs appointed by him, the part of inheritance, which was due to the heir refused from the inheritance or eliminated on other reasons specified above, shall be transferred to the rest of the heirs by will and shall be distributed between them in proportion to their inheritance shares, insofar otherwise not provided for by the will.
2. The rules provided in Clause 1 of this Article shall not apply if the heir is sub-appointed for the heir who has refused or eliminated on other grounds (Article 1042(2)).
Article 1078. Common Property of Heirs in Inheritance
In event of inheriting by operation of law, if the inherited property shall be transferred to two or several heirs, and in event of inheriting by will, if it is bequeathed to two or several heirs without specifying the things and rights, inherited by each of them, the property shall be transferred, since the day of opening the inheritance, to the common share ownership of the heirs. The rules of Chapter 16 of this Code concerning the common share ownership shall apply to the common ownership of the heirs in inherited property, unless otherwise established by the rules of this Code concerning the inheritance.
Article 1079. Dividing of Inheritance Upon Agreement Between Heirs
1. The property, which is included into the inheritance and is being in the common share ownership of two or several heirs, may be divided upon agreement between them.
2. The agreement concerning dividing of the inheritance, including the agreement concerning apportioning of share of one of the heirs, if it is concluded before issuing the certificate of the right to inheritance and is certified notarially, shall be the ground for issuing the certificate of the right to inheritance (Article 1083) to the heirs, with indication of the specific things in the certificate.
3. The agreement of the heirs concerning dividing the inheritance, if it is concluded within six months after issuing the certificate of right to the inheritance and certified notarially, shall be the ground for the state registration, by the heirs, of their right to immovable property in accordance with this agreement.
4. At certification of the agreement concerning dividing the inheritance in accordance with Clause 2 of this Article and issuing the certificate of the right to inheritance, the state duty shall be levied for execution of one of these notarial actions.
Article 1080. Dividing of Inheritance by Court
In event of failure to achieve the agreement by the heirs concerning dividing the inheritance, including that concerning apportioning the share of one of the heirs from the inheritance, the dividing shall be effectuated in the judicial procedure in accordance with Article 255 of this Code.
Article 1081. Protection of Interests of Child at Dividing Inheritance
1. If the heir’s heir is conceived, but not yet born.
2. For protection of the interests of minors, the representative of the body of trusteeship and guardianship shall be invited for participation in drawing up the agreement concerning dividing the inheritance (Article 1079) and for consideration of the case concerning dividing the inheritance in the court (Article 1080).
Article 1082. Priority Right to Specific Objects from Inheritance upon Its Dividing
1. The heir possessing, together with the testator, the right of common ownership in the indivisible thing (Article 133), the share in ownership in which is included in the inheritance, shall have, upon dividing the inheritance, the priority right to reception of the thing, being in the common ownership, on the account of this heir’s inheritance share.
2. The heir who constantly used an indivisible thing (Article 133), included in the inheritance, together with the testator or autonomously, shall have, upon dividing the inheritance, the priority right to reception of this thing on the account of this heir’s inheritance share. The heirs, for whom the dwelling house, apartment or other dwelling premises, belonged to the testator, was the single place of the permanent residence during a year before opening the inheritance, shall have, upon dividing the inheritance, the priority right to reception of this dwelling premises, as well as home utensils and household goods, on the account of inheritance shares of these heirs.
3. Disproportion of the property, the priority right to reception of which is declared by the heir on the grounds of this Article, to the inheritance share of this hare, shall be eliminated by transfer, to the rest of the heirs, of other property from the inheritance or by other compensation, including payment of the corresponding monetary amounts. Unless otherwise established by the agreement between all the heirs, the effectuation of the priority right by any of them shall be possible after providing the respective compensation to other heirs.
Article 1083. Certificate of Right to Inheritance
1. The certificate of the right to inheritance shall be issued at the place of opening the inheritance by the notary or the official, authorized to effectuate such notarial actions.
2. The certificate of the right to inheritance shall be issued upon the application of the heir, who has already accepted the inheritance or accepting it by submitting this application (Article 1070). If the application for the issuance of the certificate of the right to inheritance is not submit by the heir the signature of the heir is to be certified by the notary or by the official authorized to execute notarial actions (Article 1045 (6)). Upon the desire of heirs, the certificate may be issued to all heirs together, or to each heir individually.
3. If, after issuing the certificate of the right to inheritance, the inheritance property would be revealed, for which the certificate was not issued, an additional certificate of the right to inheritance shall be issued.
Article 1084. Periods of Issuing Certificate of Right to Inheritance
1. The certificate of the right to inheritance shall be issued to the heirs after expiry of six months since the day of opening the inheritance, except for the cases, provided for by this Code.
2. At inheritance, both by operation of law or by will, the certificate of the right to inheritance may be issued before expiration of six months since the day of opening the inheritance, if the reliable data are available confirming that, except for the persons who applied for issuing the certificate, there are no other heirs concerning the inheritance or its respective part.
3. Issuing the certificate of the right to inheritance may be suspended upon the court decision in case of dispute concerning the right of ownership to the inheritance property.
Article 1085. Compensation of Expenses Caused by Death of Testator, Inheritance Protection and Administration
1. The necessary expenses caused by the premortal disease of the testator , the expenses on burial of the testator, as well as expenses, connected with the inheritance property protection and administration, shall be compensated at the account of the inheritance within its value.
2. Before receiving the certificate of the right to inheritance by the heirs, the demand for compensation of the expenses, specified in Clause 1 of this Article, may be submitted to the heir, who accepted the inheritance, or to the executor. In case of absence of these persons, the payment of the necessary amounts, including the payment from the deposit or from the account of the testator, may be made upon the decision of the notary. In case of refusal to satisfy the demands, the dispute shall be settled by the court.
3. After receiving the certificate of the right to inheritance by the heirs, the expenses, specified in Clause 1 of this Article, shall be compensated by the heirs within the cost of the inheritance property, transferred to each of them before repayment of the demands concerning the debts of the testator.
Article 1086. Liability of Heir for Debts of Testator
1. Each of the heirs who accepted the inheritance, shall be liable for the debts of testator within the cost of the inheritance property, which has been transferred to this heir.
2. The heir who has obtained the inheritance property both directly, as the result of opening the inheritance, and as the result of inheritance transmission (Article 1073), shall not be liable for the debts of the heir, from whom the right to accept the inheritance was transferred to him; however, the heir shall be liable for the debts of the testator within the value of the inheritance property obtained on both grounds.
3. The heirs shall be liable for the debts of the testator jointly and severally (Article 304), but each of them shall be liable within the limits, specified in Clause 1 of this Article.
4. The creditors of the testator shall have the right, within the limitation period, to submit their demands against the heirs who accepted the inheritance. Before acceptance of the inheritance, the demands of creditors may be submitted against the executor or declared to the inheritance property. In the latter event, consideration of the suit shall be suspended until acceptance of the inheritance by the heirs or its transfer, as the escheated inheritance, to the administrative territorial unit.
CHAPTER 73
Peculiarities of Inheriting of Individual Types of Property
Article 1087. Inheriting of Right to Value of Share in Economic Partnership and to Share in Production Cooperative
1. The inheritance of the participant of the general partnership or a general partner of the special partnership shall include the right to the value of share of this participant in the charter capital of partnership, unless otherwise provided for by the Articles of Incorporation. In case of acceptance of the heir as the participant of the general partnership (Article 78(1)) or as a general partner into the special partnership, the cost of his share shall not be paid to him. The heirs of a participant of general partnership or of a general partner in the special partnership shall bear liability for the obligations of the partnership to the third parties in accordance with the procedure provided by Article 72 of this Code.
2. The inheritance of member of the production cooperative shall include the right to the value of participatory share of the deceased member of the cooperative. If the heir is admitted as the member of the cooperative (Clause 4 of Article 111), the value of participatory share shall not be paid to him.
Article 1088. Inheriting of Share of Contributors in Special Partnership, of Participant (Shareholder) in Economic Company, and of Member of Consumer Cooperative
1. The inheritance of participant of the special partnership, being the contributor, shall include the share of this contributor in the charter capital of the partnership.
2. The inheritance of participant of the limited liability company or the additional liability company shall include the share of this participant in the charter capital of this company, unless it is provided for by the constituent documents of the company that such transfer of share to the heirs is permitted only with the consent of the rest participants of the company. The refusal of consent on transferring the share shall entails the duty of the company to pay the value of share to the heirs in accordance with the procedure provided by Article 92(6) of this Code and by the constituent documents of the company.
3. The inheritance of participant of the join-stock company (the shareholder) shall include the shares which belonged to him.
4. The inheritance of member of the consumer cooperative shall include the share of the deceased member of the cooperative.
5. The heir of the participant of the special partnership, being the contributor, of the participant of the limited liability company or the additional liability company or of the shareholder of joint-stock company shall become the participant (the shareholder) of the corresponding company or partnership, except for the event when, in accordance with the Charter of the limited liability company or the additional liability company, consent of participants of the company is necessary therefor, but there is a refusal to give such consent.
6. The heir of the member of a housing cooperative, housing construction cooperative, country cottage (dacha) cooperative, garage cooperative or other consumer cooperative shall possess the right to be admitted as the member of the corresponding cooperative.
7. Such matters as what heirs may be accepted into the economic partnership, into the company or into the consumer cooperative in the event when the rights of testator concerning the corresponding legal person has been transferred to several heirs, as well as the procedure, ways and periods of payments to the heirs, who did not become the participants of the partnership, the company or cooperative, of the amounts due to them or, instead, issuing the property in kind, shall be defined by the legislation on economic partnerships and companies and on consumer cooperatives, and by the constituent documents of the corresponding legal person.
Article 1089. Inheriting of Things Limited in Turnability
The things, which belonged to the deceased person by right of ownership, the turnover of which is permitted only upon the special permit (the civil weapon etc.), shall be included in the inheritance and shall be inherited in accordance with this Code, subject to observance of the procedure turnover of the corresponding property, established by the legislation.
These things, being included in the inheritance, shall be withdrawn and taken for safe storage by the authorized bodies of the state administration (by the officials) in accordance with the procedure established by the legislation.
No special permission is necessary for acceptance of the inheritance, including the specified things. Herewith, acceptance of the inheritance by the ways, violating the procedure of turnover of the corresponding property, established by the legislation, shall not be permitted.
The heir, not having a special permit, may not possess and use things, limited in turnability, and to dispose of these things otherwise than it is provided by Article 239 of this Code.
If the heir did not apply for reception of the special permission within the period, provided for by the legislation, or the issuance of such permission has been refused for the heir, his ownership right in the specified things is subject to termination in accordance with Article 239 of this Code.
Article 1090. Inheritance of Non-paid Amounts of Salary, Pension, Allowances and Payments for Compensation of Harm
1. The right on reception of the amounts of salary and payments equated to it, pensions, allowances on social insurance, other allowances and payments for compensation of harm to life or health, which were subject to payment to the person, but were not received obtained by him for some reason while alive, shall belong to the members of family, who lived with the deceased, as well as to his dependent persons, not capable for labor, irrespective of whether they lived with deceased person or not.
2. The demands for the payment of amounts on the grounds specified in Clause 1 of this Article may be submitted to the obliged persons within six months since the day of opening the inheritance.
3. If there are no persons, having the right to reception of the amounts, not paid to the deceased, on the grounds specified in Clause 1 of this Article, or such persons have not submitted the demands for payment of these amounts within the specified period, the corresponding amounts shall be included into the inheritance and shall be inherited on the common grounds established by this Code.
Article 1091. Inheritance of Property Granted by Republic of Belarus or its Administrative Territorial Unit Without Compensation or on Preferential Conditions
The means of transport and other property, granted to the person by the Republic of Belarus or its administrative territorial unit without compensation or on preferential conditions in connection with the disability or other similar circumstances, shall be included into the inheritance and inherited on the common grounds established by this Code, except for instances when it follows from the conditions of granting this property, established by the legislation, that it is transferred only for using.
Article 1092. Inheritance of State Awards and Plaques of Honor
1. The state awards, which were granted to the citizen and on which the legislation of the Republic of Belarus on the state awards shall extend, shall not be included into the inheritance. Transfer of these awards after the death of the awarded person to other persons shall be effectuated in accordance with the procedure, established by the legislation of the Republic of Belarus on the state awards.
2. The state awards, belonged to the testator, on which the legislation of the Republic of Belarus on the state awards shall not extend, plaques of honor, commemorative and other plaques, including awards and plaques in the collections, shall be included into the inheritance and inherited on the common grounds, established by this Code.
SECTION VII
INTERNATIONAL PRIVATE LAW
CHAPTER 74
General provisions
Article 1093. Determination of Law, Subject to Application in Civil Legal Relations Complicated by Foreign Element
1. The law, being subject to application in civil-legal relations with participation of the foreign citizens or foreign legal persons or complicated by other foreign element, shall be determined on the grounds of the Constitution of the Republic of Belarus, this Code, other legislative acts, treaties of the Republic of Belarus and the international customs, not contrary to the legislation of the Republic of Belarus.
2. The agreement of the parties concerning selection of the law shall be clearly expressed or shall directly follow from the terms and conditions of the contract and the circumstances of the case, considered in aggregate.
3. If it is impossible to determine the law, which is subject to application, in accordance with Clause 1 of this Article, the law shall be applied, most closely connected with the civil legal relations, complicated by foreign element.
4. The rules of this Section on determination of the law for application by the court shall be accordingly applied by other bodies, authorized to make the decisions concerning the law which is subject to application.
Article 1094. Qualification of Legal Concepts
1. At determination of the law subject to application, the court shall be based on interpretation of the legal concept in accordance with the law of the country of the court, unless otherwise provided for by the legislative acts.
2. If the legal concepts, requiring the legal qualification, are not known in the law of the country of the court or are known under another name or with another contents and may not be determined by interpretation by the law of the country of the court, then, for qualification thereof, the law of the foreign state may be applied.
Article 1095. Determination of Content of Norms of Foreign Law
1. At application of the foreign law, the court or another state body shall determine the content of its norms in accordance with official interpretation and practice of application thereof and with the doctrine in the respective foreign state.
2. For the purpose of determination of the content of rates of the foreign law, the court may apply, in accordance with established procedure, for assistance and explanation to the Ministry of Justice, other competent state bodies of the Republic of Belarus, including those located abroad, or to involve experts.
3. The persons, participating in the case, shall have a right to submit the documents, confirming content of norms of the foreign law, to which they refer for grounding their demands or objections, and in any other way to assist the court in determination of content of these norms.
4. If the content of the norms of foreign law, in spite of the measures, undertaken in accordance with this Article, is not established within a reasonable time, the law of the Republic of Belarus shall be applied.
Article 1096. Remission and Reference to Law of Third Country
1. Any reference to foreign law in accordance with the rules of this Section, except for the instances provided by this Article, shall be considered as the reference to the substantive law, not to the collision law, of the corresponding country.
2. The remission to law of the Republics of Belarus and the reference to the law of the third country shall be applied in the events of application of the foreign law in accordance with Article 1103, Article 1104(1),(3),(5), Articles 1106 and 1109 of this Code.
Article 1097. Consequences of Evasion of Act of Legislation
Agreements and other actions of participants of the relations, regulated by the civil legislation, aimed, in evasion of the rules of this Section concerning the law subject to application, at subordinating the corresponding relations to another. In this event, the law of the corresponding state, subject to application in accordance with this section, shall be applied.
Article 1098. Reciprocity
1. The court shall apply the foreign law regardless of application of the law of the Republics of Belarus in the corresponding foreign state to similar relations, except for the instances when the application of the foreign law on the grounds of reciprocity is provided for by the legislation of the Republic of Belarus.
2. If the application of the foreign law depends on the reciprocity, it shall be supposed that it exists, insofar as otherwise is not proven.
Article 1099. Clause Concerning Public Procedure
The foreign law shall not be applied in instances when its application is contrary to the fundamentals of the law and order (the public procedure) of the Republic of Belarus, as well as in other cases, directly provided for by the legislative acts. In these instances, the law of the Republic of Belarus shall be applied.
Article 1100. Application of Imperative Norms
1. The rules of this section shall not affect the action of the imperative norms of the law of the Republic of Belarus, regulating the corresponding relations regardless of the law subject to application.
2. At application of law of some country (except for the Republic of Belarus), according to the rules of this Section, the court may apply the imperative norms of the law of other country, having close connection with the relation considered, if, in accordance with the law of this country, such norms shall regulate the corresponding relations regardless of the law subject to application. Thereat the court shall take into consideration the purpose and the nature of such norms, as well as the consequences of application thereof.
Article 1101. Application of Law of Country with Plurality of Legal Systems
In instances when a law of the country is subject to application, in which several territorial or other legal systems exist, the legal system in accordance with the law of this country shall be applied.
Article 1102. Retorsions
The reciprocal restrictions (retorsions) concerning the rights of the citizens and the legal persons of the states, in which the special restrictions of the rights of the citizens and the legal persons of the Republic of Belarus exist, may be established by the Government of the Republic of Belarus.
CHAPTER 75
Collision Norms
§ 1. Persons
Article 1103. Personal Law of Natural Person
1. The law of the country, the citizenship of which this person has, shall be considered to be the personal law of the natural person. If the person has two or more citizenships, the law of the country, with which this person is most closely bound, shall be considered to be the personal law of this natural person.
2. For the person without citizenship, the law of the country, in which this person permanently reside, shall be considered to be the personal law of this person.
3. For the refugee, the law of the country which has granted asylum shall be considered to be the personal law of this person.
Article 1104. Legal Capacity and Active Legal Capacity of Person
1. Legal capacity and active legal capacity of person shall be determined by the personal law of the person.
2. The foreign citizens and person without citizenship shall take advantage of the civil legal capacity in the Republic of Belarus equally with the citizens of the Republic of Belarus, unless determined otherwise by the Constitution, laws and treaties of the Republic of Belarus.
3. The active civil legal capacity of the natural person concerning the transactions, effectuated in the Republic of Belarus, and the obligations, arising as a consequence of causing harm in the Republic of Belarus, shall be determined by the legislation of the Republic of Belarus.
4. The capacity of a natural person, carrying out entrepreneurial activity, to be an individual entrepreneur and to have the rights and duties, connected with this, shall be determined by the law of the country, where the natural person is registered as an individual entrepreneur. If there is no country of registration, the law of the country of the main place of effectuation of the individual entrepreneurial activity shall be applied.
5. Deeming of natural person to lack active legal capacity or limitation of active legal capacity of natural person shall comply with the law of the country of the court.
Article 1105. Deeming of Natural Person to be Missed and Declaration of Natural Person to be Deceased
Deeming of natural person to be missed and declaration of natural person to be deceased shall comply with the law of the country of the court.
Article 1106. Name of Natural Person
The rights of the natural person to name, its application and protection shall be determined by the personal law of natural person, insofar as otherwise does not follow from the rules, provided for by the second part of Article 18(2), Article 18(4), Articles 1115 and 1132 of this Code.
Article 1107. Registration of Acts of Civil Status of Citizens of the Republic of Belarus Outside the Republic of Belarus
Registration of the acts of civil status of the citizens of the Republic of Belarus, living outside the territory of the Republic of Belarus, shall be effectuated in consular offices and in the diplomatic representations of the Republic of Belarus in the case of effectuating of consular functions by the latters. Herewith the laws and other acts of legislation of the Republics of Belarus shall be applied.
Article 1108. Recognizing of Documents, Issued by Bodies of Foreign State for Certification of Acts of Civil Status
The documents, issued by the competent bodies of the foreign state for certification of the acts of civil status, executed outside the territory of the Republic of Belarus in accordance with the acts of legislation of the corresponding states concerning the citizens of the Republic of Belarus, foreign citizens and stateless persons, shall be recognized to be valid in the Republic of Belarus under condition of legalization in accordance with the legislation, unless otherwise established by the treaties of the Republic of Belarus.
Article 1109. Trusteeship and Guardianship
1. The trusteeship or guardianship over the minors and over the persons who has reached majority but deemed to lack active legal capacity or limited in active legal capacity shall be established and cancelled in accordance with the personal law of the person, concerning which the trusteeship or guardianship shall be established or cancelled.
2. The duty of the trustee (guardian) to undertake the trusteeship (guardianship) determined in accordance with the personal law of the person appointed as the trustee (guardian).
3. The legal relations between the trustee (guardian) and the person, being under the trusteeship (guardianship), shall be determined in accordance with the law of the country, the institution of which has appointed the trustee (the guardian). However, if the person, being under the trusteeship (guardianship), lives in the Republic of Belarus, the law of the Republic of Belarus shall be applied, if it is more favorable for this person.
4. The trusteeship (guardianship), established over the citizens of the Republic of Belarus, living outside the territory of the Republic of Belarus, shall be recognized to be valid in the Republic of Belarus, if there are no objections of the corresponding consular institution of the Republic of Belarus, grounded on the legislation, against establishing or recognition of the trusteeship (guardianship).
Article 1110. Legal Capacity of Foreign Organizations, Not Being Legal Entities In Accordance With Foreign Law
The civil legal capacity of the foreign organizations, not being legal persons in accordance with the foreign law, shall be determined in accordance with the law of the country, where the organization is established.
Article 1111. Law of Legal Person
The law of the country, where the legal person is established, shall be considered to be the law of this legal person.
Article 1112. Legal Capacity of Foreign Legal Person
1. The civil legal capacity of the foreign legal person shall be determined in accordance with the law of the country, where this legal person is established.
2. The foreign legal person may not refer to restriction of powers of its body or representative concerning effectuation of transaction, if this restriction is not known for the law of the country, in which the body or the representative of the foreign legal person has effectuated the transaction.
Article 1113. National Regime of Activity of Foreign Legal Entities in the Republic of Belarus
The foreign legal persons shall effectuate their entrepreneurial and other activity in the Republic of Belarus, regulated by the civil legislation, in accordance with the rules, established by this legislation for such activity of the legal persons of the Republic of Belarus, unless otherwise provided for by the legislation of the Republic of Belarus for the foreign legal persons.
Article 1114. Participation of State in Civil Legal Relations with Foreign Element
The rules of this section shall be applied on the common grounds to civil legal relations with a foreign element with the state participation, unless otherwise provided for by the legislative acts of the Republic of Belarus.
§ 2. Law Subject to Application to Personal Non-property Rights
Article 1115. Protection of Personal Non-property Rights
The law of the country, where the action or other circumstance has taken place, which served as the ground for demand concerning protection of personal non-property rights, shall be applied to the personal non-property rights.
§ 3. Transactions, Representation, Limitation period
Article 1116. Form of Transaction
1. The form of the transaction shall comply with the law of the place of its conclusion. However, the transaction, concluded abroad, may not be deemed to be invalid as the consequence of non-observance of the form, if the requirements of the law of the Republic of Belarus are observed.
2. The foreign economic transaction, in which at least one participant is the legal person of the Republic of Belarus or the citizen of the Republic of Belarus, shall be concluded in written form, regardless of the place of conclusion.
3. The form of transaction concerning the immovable property shall comply with the law of the country where this property is located. The form of transaction concerning the immovable property, which is registered in the Republic of Belarus, shall comply with the law of the Republics of Belarus.
Article 1117. Power of Attorney
The form and period of validity of power of attorney shall be determined in accordance with the law of the country, where the power of attorney is issued. However, the power of attorney may not be deemed to be invalid as the consequence of non-observance of the form, if the form of power of attorney is in conformity with the requirements of the law of the Republic of Belarus.
Article 1118. Limitation period
1. The limitation period shall be determined in accordance with the law of the country, applicable for regulation of the corresponding relation.
2. The requirements, to which the limitation period shall not extend, shall be determined in accordance with the law of the Republics of Belarus, if at least one of the participants of the corresponding relation is the citizen of the Republic of Belarus or the legal person of the Republic of Belarus.
§ 4. Right of Ownership and Other Rights in rem
Article 1119. General Provisions on Law Applicable to Right of Ownership and Other Rights in rem
1. The right of ownership and other rights in rem in the immovable and the movable property shall be determined in accordance with the law of the country, where this property is located, unless otherwise provided for by the legislative acts.
2. The relegation of property to immovable or movable things, as well as another legal qualification of the property shall be determined in accordance with the law of the country, where this property is located.
Article 1120. Arising and Termination of Right of Ownership and Other Rights in rem
1. Arising and termination of right of ownership and other rights in rem in the property which is the subject of the transaction shall be determined in accordance with the law of the place of conclusion of transaction, unless otherwise established by the agreement of the parties.
2. Arising and termination of right of ownership and other rights in rem in the property, not concerning the transaction, shall be determined in accordance with the law of the country, where this property was located at the time, when the action or any other circumstance, served as the reason for arising or termination of right of ownership and other rights in rem, have taken place, unless otherwise provided for by the legislation of the Republic of Belarus.
Arising of right of ownership and other rights in rem in the property as the consequence of the limitation period is determined by the law of the country, where the property was located at the time of expiry of the limitation period.
Article 1121. Right of Ownership and Other Rights in rem in Means of Transport and Other Property Subject to State Registration
The right of ownership and other rights in rem in the means of transport and other property, which is subject to entering into the state registers, shall be determined in accordance with the law of the country, where these means of transport or the property are registered.
Article 1122. Right of Ownership and Other Rights in rem in Movable Property in Transit
The right of ownership and other rights in rem to movable property, being in transit in connection with the transaction, shall be determined in accordance with the law of the country, from which this property has been dispatched, unless otherwise established by the agreement of the parties.
Article 1123. Protection of Right of Ownership and Other Rights in rem
1. The law of the country, where the property is located, or the law of the country of the court shall be applied to protection of right of ownership and other rights in rem, at the discretion of the applicant.
2. The law of the country, where the property is located, shall be applied to protection of right of ownership and other rights in rem in the immovable property. Concerning the property, which is registered in the Republic of Belarus, the law of the Republic of Belarus shall be applied.
§ 5. Contractual Obligations
Article 1124. Choice of Law by Parties Under Contract
1. The parties under the contract, at conclusion of the contract or later, may choose, upon the agreement between them, the law which is subject to application to their rights and duties under this contract, if this is not contrary to the legislation.
2. The agreement between the parties concerning choice of the law which is subject to application shall be clearly expressed or shall directly follow from the conditions of the contract and circumstances of the case, being considered as a whole.
3. The choice, by the parties under the contract, of the law subject to application, made after conclusion of the contract, shall have the retroactive force and shall be considered to be valid from the time of its conclusion without prejudice to the rights of the third parties.
4. The parties under the contract may choose the law subject to application both for contract as a whole and for its individual parts.
Article 1125. Law Applicable to Contract in Event of Absence of Agreement of Parties
1. When there is no agreement of the parties under contract concerning the law subject to application, the law of the country shall be applied to this contract, where the following party has main place of its activity:
1) the seller, for the contract of purchase-sale;
2) the donor, for the contract of gift;
3) the lessor (renter), for the contract of lease (property rental);
4) the lender, for the contract of use of property without compensation (loan);
5) the independent work contractor, for the contract of independent work;
6) the carrier, for the contract of carriage;
7) the forwarder, for the contract of forwarding;
8) lender (creditor) - in the contract of loan (credit contract);
9) the attorney, for the contract of commission;
10) the commission agent, for the contract of commission body;
11) the depository, for the contract of storage;
12) the insurer, for the contract of insurance;
13) the surety, for the contract of suretyship;
14) the pledgor, for the contract of pledge;
15) the licensor, for the license contract of using exclusive rights.
If it is impossible to determine the main place of activity of the party, specified in Subclauses 1-15 of this Clause, the law of the country, where this party is registered or has a place of residence, shall be applied.
2. To the rights and duties under the contract, the subject of which is the immovable property, and also under the contract of trust management of the property, the law of the country, where this property is located, shall be applied. Concerning the property registered in the Republic of Belarus, the legislation of the Republic of Belarus shall be applied.
3. If there is no agreement of the contractual parties concerning the law subject to application, then, regardless of provisions of Clause 1 of this Article, the lay specified below shall be applied:
1) to the contract on joint activity and to the contracts on f fulfillment of construction, mounting and other works for capital construction, the law of the country, where such activity shall be effectuated or the results provided for by the contract shall be created;
2) to the contract, concluded at the auction, the competition or at the exchange, the law of the country, where the auction or the competition is held or the exchange is located.
4. The law of the country, where the party under contract, carrying out the performance having the critical significance for the content of the contract, has its main place of activity, shall be applied to the contracts, not specified in Clauses 1-3 of this Article, when there is no agreement of the contractual parties concerning the law subject to application. If it is impossible to determine the main place of activity of the party, carrying out the performance having the critical significance for the content of the contract, then the law of the country shall be applied, where this party is established or has a permanent residence. If it is impossible to determine the performance having the critical significance for the content of the contract, then the law of the country shall be applied, with which the contract is most closely bound.
5. Concerning acceptance of performance under the contract, the law of the place of such acceptance shall be taken into consideration, insofar as otherwise not agreed between the parties.
6. If the trade terms, commonly used in the international turnover, are used in he contract, then, subject to the absence of any other indications in the contract, it shall be considered that the parties have agreed application of common meanings of the corresponding terms to the relations thereof.
Article 1126. Law Applicable to Contract on Creation of Legal Person With Foreign Participation
To the contract on creation of the legal person with foreign participation the law of the country shall be applied, where this legal person is established.
Article 1127. Domain of Applicable Law
1. The law, applicable to the contract by virtue of provisions of this paragraph, shall cover, in particular:
1) interpretation of contract;
2) rights and duties of the parties;
3) performance of contract;
4) consequences of failure to perform or improper performance of the contract;
5) termination of contract;
6) consequences of nullity or invalidity of the contract;
7) cession of demand and transfer of debts in connection with the contract.
2. Concerning the ways and procedure of performance, and the measures which shall be taken in the instance of improper performance, in addition to the applied law, the law of the country in which the performance takes place shall also be taken in consideration.
§ 6. Noncontractual Obligations
Article 1128. Obligations From Unilateral Actions
The law of the place of conclusion of the transaction shall be applied to the transactions from unilateral actions (public promise of reward, actions in another's interest without commission etc.). The place of conclusion of the transaction shall be determined in accordance with the law of the Republics of Belarus.
Article 1129. Obligations arising as a consequence of causing harm
1. The rights and duties on the obligations, arising as a consequence of causing harm, shall be determined in accordance with the law of the country, where the actions or other circumstances, served as the reason for demand for compensation of harm, have taken place.
2. The rights and duties on the obligations, arising as a consequence of causing harm abroad, if the parties are the citizens or the legal persons of the same state, shall be determined in accordance with the law of this state.
3. The foreign law shall not be applied, if the action or another circumstance, serving the reason for demand to compensate harm, is not illegal, in accordance with the legislation of the Republic of Belarus.
Article 1130. Liability for Damage Caused to Consumer
To the demand of compensation of damage, which arose for the consumer in connection with the purchase of the goods or rendering of services, at the discretion of the consumer, the law of the country shall be applied, where:
1) the consumer’s place of residence is located;
2) the place of residence or place of location of the manufacturer or of the person which have rendered a service is located ;
3) the consumer has purchased the goods, or the service was rendered to the consumer.
Article 1131. Unfounded Enrichment
1. To the obligations, appearing as the consequence of unfounded enrichment, the law of the country, where the enrichment has taken place, shall be applied.
2. If the unfounded enrichment appears as the consequence of disappearing of the ground, on which the property was purchased or saved, the applying law shall be determined in accordance with the law of the country, to which this ground was subordinated.
3. The concept of the unfounded enrichment shall be defined in accordance with the law of the Republics of Belarus.
§ 7. Intellectual Property
Article 1132. Rights to Intellectual Property
1. The law of the country, where protection of these rights is demanded, shall be applied to the rights to intellectual property.
2. The contracts, the subject of which are the rights to the intellectual property, shall be regulated by the law, determined by the provisions of this Section concerning contractual obligations.
§ 8. Inheritance Law
Article 1133. Relations of Inheriting
The relations of inheriting shall be determined in accordance with the law of the country, where the testator had the last place of permanent residence, insofar as otherwise is not provided for by Articles 1132 and 1135, unless the law of the country, the citizen of which was the testator, was chosen by the testator in the will.
Article 1134. Inheriting of Immovable Property and Property Subject to Registration
The inheriting of the immovable property shall be determined in accordance with the law of the country, where this property is located. Concerning the immovable property, which is registered in the Republic of Belarus, the inheriting shall be determined in accordance with the law of the Republics of Belarus.
Article 1135. Capacity of Persons to Compile and Cancel Will, Form of Will and of Act of Its Canceling
The capacity of person to compile and cancel the will, the form of will and the form of act of canceling the will shall be determined in accordance with the law of the country, where the testator had a place of permanent residence at the time of drawing up the act, unless the law of the country, the citizen of which was the testator, was chosen by the testator in the will. However the will or its canceling may not be deemed to be invalid as the consequence of non-observance of the form, if the form meets the requirements of the law of the place of drawing up the act, or the requirements of the law of the Republic of Belarus.
SECTION VIII
FINAL PROVISIONS
Article 1136. This Code enters into force since July 1, 1999, except for provisions, for which other terms of the entry into force are established in this Section of the Code. As the norms of this Code enter into force, the corresponding norms of the Civil Code of the Republic of Belarus, approved by the Law of the Republic of Belarus of June 11, 1964 (with corresponding changes and additions) shall be considered as becoming invalid.
This Section enters into force since the day of official publishing of this Code.
Article 1137. Until bringing the legislation of the Republic of Belarus in conformity with this Code, the laws and the decisions of the Government shall be applied in that part in which they do not contradict to the Code.
This rule is valid also concerning the acts of the Republic's bodies of the state administration, adopted before the entry into force of the Code, on the matters which, in accordance with the Code, may be regulated accordingly only by the laws of the Republic of Belarus or by the acts of the President of the Republic of Belarus or by the decisions of the Government of the Republic of Belarus.
Article 1138. This Code shall be applied to the relations, which arose after July 1, 1999.
Concerning civil legal relations, which arose before July 1, 1999, the Code shall be applied to those rights and duties, which would arise after coming the Code into force.
Article 1139. Concerning civil legal relations, which arose before July 1, 1999, but were not regulated by the legislation, which was in force at that time, the rules of this Code shall be applied.
Article 1140. The cases, relegated by this Code to the jurisdiction of the court (the economic court), processing for which were not finished in the administrative and other bodies up to July 1, 1999, are subject to consideration by the court (the economic court) in accordance with established jurisdiction.
Article 1141. Chapter 4 ("Legal persons") of this Code shall come into force since the day of official publishing of the Code. Since this day, the commercial organizations may be created exclusively in those forms which are provided by this Chapter.
The legal persons, created before the official publishing of this Code, if their types correspond to those provided by the Code, shall bring their constituent documents in conformity with the Code up to July 1, 1999.
The collective enterprises, as well as enterprises, the property of which is in the ownership of other legal persons and (or) natural persons, but belongs to these enterprises by right of full economic management, up to July 1, 2000, and the lease enterprises, not later than within a month after expiry of the contracts of leasing, concluded before the day of official publishing of the Code, shall be transformed into other types of the legal persons, provided by the Code, or shall be liquidated. After expiry of the specified period, these legal persons are subject to liquidation in the judicial procedure upon the demand of the body, carrying out the state registration, or a public prosecutor.
The legal persons, specified in this Article, shall be relieved from payment of the registration fees at registration of change of their legal status or making changes in their constituent documents in connection with their bringing in conformity with the norms of the Code.
Article 1142. The norms of this Code on the grounds and the consequences of the invalidity of transactions (Articles 163, 166-181) shall be applied to the transactions, the demands for deeming those to be invalid and for the consequences of invalidity of which are considered by the court, by the economic court or the arbitration court after July 1, 1999, irrespective of the time of conclusion of the corresponding transactions.
Article 1143. The periods of limitation period, established by this Code, shall be applied to those suits, the periods of submission of which, provided by the legislation which was in force earlier, have not expired up to July 1, 1999.
To the suit, provided by Article 182(2) of the Code, concerning deeming of the contestable transaction to be invalid, and application of consequences of its invalidity, the right to submission of which arose before July 1, 1999, the limitation period shall be applied, established for the corresponding suits by the legislation which was in force earlier.
Article 1144. Application of Article 235 of this Code (acquisitive prescription) shall extend to the instances when the possession of property began before July 1, 1999 and continues at the time of coming this Code into force.
Article 1145. The procedure of conclusion of the contracts, established by Chapter 28 of this Code, shall be applied to contracts, the offers for conclusion of which have been sent after July 1, 1999.
Article 1146. To the contracts, the offers for conclusion of which have been sent before July 1, 1999, but which were concluded after July 1, 1999, the norms of this Code shall be applied, concerning the form of the contracts of individual types, and also the norms concerning state registration thereof.
The norms of the Code, determining the content of the contracts of individual types, shall be applied to contracts, concluded after coming this Code into force, and also to the contracts, concluded before coming this Code into force, in a part of the rights and duties, which arose after coming this Code into force.
The contracts of franchising, concluded before coming the Code into force, and other contracts, the grounds and the procedure of conclusion (dissolution) thereof, and content of these contracts, in accordance with this Code, shall be regulated by other acts of legislation, in the event of absence of such acts on July 1, 1999, shall remain valid up to issuing of such acts, but not longer then one year after coming the Code into force. In case of adoption of the corresponding acts of legislation, such contracts shall be brought in conformity with the norms of these acts in accordance with the procedure, established by these acts. If on expiration of the specified period, the corresponding acts would not be adopted, then the specified contracts shall terminate.
Article 1147. Until coming the act of legislation into force, concerning registration of the rights to immovable property and transactions with it for the contracts, provided for by Articles 522, 531, and Article 545(3) of this Code, the rules on mandatory notarial certification of such contracts, established by the legislation, which was valid before coming this Code into force, shall remain in force.
Article 1148. The provisions of this Code, mandatory for the parties under the contract, concerning the grounds, the procedure and the consequences of dissolution of the contracts of individual types, shall be applied also to the contracts, which continue to be in force after coming this Code into force, irrespective of date of their conclusion.
The provisions of this Code, mandatory for the parties under the contract, concerning liability for violation of contractual obligations, shall be applied, if the corresponding violations were committed after coming this Code into force, with the exception of the cases, when in the contracts, concluded before July 1, 1999, another liability for such violations was provided.
Article 1149. The application of Articles 938 and 939 of this Code shall extend also to the instances when causing damage to the victim has taken place before July 1, 1999, but not earlier than July 1, 1996, and the damage caused remained non-compensated.
The application of Articles 954-963 of this Code shall extend also to the instances when causing damage to life and health of the person has taken place before July 1, 1999, but not earlier July 1, 1996 and the damage caused remained non-compensated.
Article 1150. The provisions of this Code in a part, concerning the transactions with the land plots, shall be applied as far as turnover thereof is permitted by the land legislation.
Article 1151. To establish that the application of Chapter 60 of this Code shall extend to the works, which have not been recognized to be the objects of the copyright in accordance with the legislation which was in force earlier, if these works were published or otherwise issued after July 1, 1999.
Article 1152. The provisions of this Code shall be applied also to inheritances, opened before coming this Code into force, but not accepted by anybody of the heirs and not transferred by the right of inheritance into the ownership of the state up to July 1, 1999.
Article 1153. The Council of Ministers of the Republic of Belarus shall, within the period up to July 1, 1999, take measures for bringing the legislation in conformity with this Code.
President of the Republic of Belarus A. Lukashenko
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