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6. The provisions of this Chapter shall apply in respect of a contract of sub-franchise unless it arises otherwise from the peculiarities of the sub-franchise.


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Article 6.769. Remuneration under a franchise contract


1. The franchisee must pay to the franchiser the remuneration determined in the franchise contract.


2. The remuneration may be determined in the form of a fixed lump sum and/or payable in instalments, deductions being made from the receipts of the franchisee or calculated in any other way specified in the contract.

 


Article 6.770. Duties of the franchiser


1. The franchiser must:


1) transfer to the franchisee technical and commercial documentation and submit other information necessary to the franchisee in order to exercise the rights granted to him under the franchise contract, likewise train the franchisee and his employees with regard to all the issues related with the exercise of the transferred rights;


2) issue to the franchisee licences provided for by the contract and ensure their formalisation in accordance with the established procedure.


2. Unless otherwise provided for by the franchise contract, the franchiser must:


1) ensure the registration of the franchise contract;


2) render to the franchisee ongoing technical and consultative support and assistance in training of the franchisee’s employees;


3) execute control of the quality of goods produced, work performed or services rendered by the franchisee under the franchise contract.


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Article 6.771. Duties of the franchisee

Taking into account the character and peculiarities of the activity performed, as well as the terms of the franchise contract, the franchisee must:


1) use in his activities, in the manner specified in the franchise contract, the trade name, and the trade and service mark of the franchiser;


2) ensure the quality of the goods produced, work performed or services rendered under the franchise contract;


3) comply with the directions and instructions of the franchiser in respect of the use of the rights, external and internal design of the business premises of the franchisee, as well as any other terms of activity specified in the franchise contract;


4) render to buyers/clients any additional services which they could reasonably expect in acquiring/ordering goods, work or services directly from the franchiser;


5) not divulge to other persons any commercial/industrial secrets or any other confidential information received from the franchiser;


6) conclude a sub-franchise contract where this duty is provided for in the franchise contract;


7) inform the buyers/clients, by the most obvious means to them, that the franchisee is acting under the franchise contract and is using the trade name, trade and service mark of the franchiser or any other symbols of individualisation thereof.


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Article 6.772. Limitation of the rights of the parties


1. The parties to a franchise contract may provide for only such conditions for limiting competition which are not prohibited by the competition law.


2. In the event where the requirement set forth in paragraph 1 of this Article is satisfied, the franchise contract may establish the following limitations of the rights of the parties:


1) obligation of the franchiser not to grant to other persons analogous complexes of exclusive rights for the use thereof on the territory consolidated for the franchisee, or refrain from own analogous activity in the same territory;


2) obligation of the franchisee not to compete with the franchiser in the territory specified in the contract in the business activity carried out by the franchisee with the use of the exclusive rights granted to him;


3) prohibition for the franchisee to receive, under a franchise contract, analogous exclusive rights from competitors/potential competitors of the franchiser;


4) obligation of the franchisee to agree with the franchiser upon the location of the business premises determined in the contract, as well as the external and internal design thereof.


3. The terms of a franchise contract limiting the rights of the parties thereto may be declared null and void upon the grounds and in accordance with the procedure established by the law regulating competition if these terms limit competition.


4. The terms of a franchise contract prohibited by the competition law shall be invalid, in particular such terms by virtue of which:


1) the franchiser is entitled to determine the prices, or their lower limit, of the goods produced or work performed, or services rendered by the franchisee;


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2) the franchisee is entitled to sell goods, perform work or render services exclusively to a certain category of buyers/clients or exclusively to buyers/clients residing in the territory determined in the franchise contract.


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Article 6.773. Liability of the franchiser in relation to claims brought against the franchisee


1. The franchiser shall be subsidiary liable for claims brought against the franchisee concerning the quality of the goods, work or services sold or rendered by the franchisee under the franchise contract.


2. With regard to claims brought against the franchisee as the manufacturer of the goods/products of the franchiser, the franchiser shall be solidarily liable with the franchisee.

 


Article 6.774. Right of the franchisee to conclude a franchise contract for a new term


1. The franchisee who has duly performed his duties under a franchise contract shall have the right, upon the expiry of the term of the franchise contract, to conclude a new contract for a new term on the same conditions.


2. The franchiser shall have the right to refuse to conclude a franchise contract for a new term provided that he undertakes not to conclude, within three years from the date of expiry of the term of the contract, with any other persons, an analogous franchise contract which would extend over the same territory on which the terminated contract operated. If, before the expiry of the three-year time limit, the franchiser wishes to grant the same exclusive rights to other persons, he must propose conclusion of a new contract to the franchisee or compensate the damages incurred by him.  When concluding a new contract, the conditions thereof may not be more onerous for the franchisee than the conditions of the previous contract.


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Article 6.775. Change of the conditions of a franchise contract

A franchise contract may be modified by agreement between the parties upon general grounds.  The fact of modification of the contract may be invoked against third persons only if this fact has been registered in accordance with the procedure established in paragraph 2 of Article 6.767 of this Code.

 


Article 6.776. Termination of a franchise contract


1. Each party to a franchise contract concluded for an indefinite period shall have the right to repudiate the contract having notified the other party thereof six months in advance unless a more extended period has been established in the contract.


2. The dissolution (termination) of a franchise contract shall be subject to registration in accordance with the procedure established in paragraph 2 of Article 6.767 of this Code.


3. In the event where the franchiser loses the right to the trade name or a trade/service mark without a replacement thereof by a new analogous right, the franchise contract shall terminate.


4. In the event of bankruptcy proceedings being initiated against the franchiser or the franchisee, the franchise contract shall terminate.


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Article 6.777. Substitution of the parties


1. If one or more of the exclusive rights which constitute the subject matter of the franchise contract pass to another person, the franchise contract shall remain valid. The new franchisee shall become a party to the franchise contract in that part of the rights and duties which is related to the exclusive rights transferred thereto.


2. In the event of the death of the franchiser or the franchisee, their rights and duties under the franchise contract shall pass to the heir on condition that he is an entrepreneur and continues the business or starts a business within six months from the date of opening of the inheritance. Otherwise, the franchise contract shall terminate. The effectuation of the rights and performance of the duties of the deceased under the franchise contract, before the acceptance of these rights and duties by the heir, shall be executed by the property administrator appointed by the court.

 


Article 6.778. Effects of change of the trade name and trade/service mark of the franchiser

In the event of a change of the trade name or trade/service mark of the franchiser which constitute the subject matter of the franchise contract, the franchise contract shall be valid in respect of the new trade name or trade/service mark unless the franchisee demands termination of the contract and compensation of damages. In the event of the continuation of the validity of the contract, the franchisee shall have the right to request commensurate reduction of the franchiser’s remuneration unless otherwise provided for by the contract.


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Article 6.779. Effects of termination of exclusive rights


1. In the event of the expiry of an exclusive right which constitutes the subject matter of a franchise contract or where this right terminates upon any other grounds, the franchise contract shall continue to be valid, except for the terms and conditions relating to the terminated right, while the franchisee shall have the right, unless otherwise provided for in the contract, to require commensurate reduction of the remuneration due to the franchiser.


2. In the event of termination of any of the exclusive rights, the fact of concluding a franchise contract shall be subject to re-registration unless the franchisee demands termination of the contract and compensation of damages.

 


CHAPTER XXXVIII

COMMISSION


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CHAPTER XXXVIII

COMMISSION

 


Article 6.780. Concept of a commission contract


1. Under a commission contract, one party (the commission agent) shall undertake to conduct, upon the mandate of the other party (the committent), for remuneration, one or several transactions in his own name but at the expense of the committent.


2. The commission agent shall acquire the rights and duties in respect of the transaction concluded by the commission agent with a third person, even though the committent was also named to the third person or entered into direct relations with the third person in regard to the performance of the transaction. 


3. A commission contract may be fixed-term or open-ended.  


4. A contract of commission may be concluded with or without specifying the territory of the performance thereof, likewise with or without a duty of the committent not to grant to third persons the right to conclude a contract in his interests and at his expense, the conclusion of which has been entrusted to the commission agent.


5. A commission contract may or may not specify the things that are the subject matter of the contract.


6. The peculiarities of individual types of commission contracts may be determined by laws.


7. In the instances where parties to a commission contract are enterprises/entrepreneurs, the commission contract may only provide for such conditions to limit competition which are not prohibited by the competition law.


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Article 6.781. Remuneration for commission


1. The committent must pay remuneration to the commission agent. In the event where the commission agent acted as surety for the performance of the transaction by a third person, the committent must also pay additional remuneration to the commission agent in the amount established in the contract. If the amount of the remuneration for commission or the additional remuneration is not established in the contract, it shall be determined in accordance with the provisions of Article 6.198 of this Code.


2. In the event of failure to perform a commission contract due to reasons for which the responsibility falls upon the committent, the commission agent shall retain his right to remuneration for the commission as well as compensation for the expenses incurred.

 


Article 6.782. Performance of commission


1. The commission agent must perform the assumed commission mandate on the conditions most advantageous to the committent and in accordance with the instructions of the committent or, in the absence of such instructions, in accordance with the usual business customs and the requirements of business practice.


2. In the instances where the commission agent concluded a transaction on conditions more advantageous than those specified by the committent, the additional advantage derived from the transaction shall be enjoyed by the commission agent unless otherwise provided for by the contract.


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Article 6.783. Liability for failure to perform the transaction


1. The commission agent shall not be liable towards the committent for the failure of a third person to perform the transaction concluded with him at the expense of the committent, except in cases when the commission agent acted as surety for the performance of the transaction by the third person, or failed to display the necessary caution in the selection of the third person as a party to the transaction.


2. In the event of the failure of a third person to perform the transaction concluded with the commission agent, the latter must immediately inform the committent thereof, collect the necessary evidence, and, at the demand of the committent, assign the right of claim to him in respect of that transaction.


3. In the instances provided for in paragraph 2 of this Article, the commission  agent may assign the right of claim to the committent irrespective of any prohibition or limitation of such assignment in the transaction between the commission agent and the third person. Nevertheless, assignment of the right of claim in such cases shall not relieve the commission agent from liability against the third person for the violation of the agreement prohibiting or limiting the assignment of the right of claim.


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Article 6.784. Sub-commission


1. Unless otherwise provided for by the commission contract, the commission agent shall have the right, for the purpose of performing the commission contract, to conclude a contract of sub-commission with another person. Nevertheless, even in such instances, the commission agent shall remain liable towards the committent for the actions of the sub-commission agent. 


2. Under a contract of sub-commission, the commission agent shall acquire the rights and duties of the committent with respect to the sub-commission agent.


3. Upon the termination of a contract of sub-commission, the committent shall have no right, without the consent of the commission agent, to enter into direct relations with the sub-commission agent unless otherwise provided for by the contract.


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Article 6.785. Deviation from the instructions of the committent


1. The commission agent shall have the right to deviate from the instructions of the committent in the circumstances where this is necessary for the interests of the committent, and where the commission agent could not obtain in advance the approval of the committent, or did not receive any reply within a reasonable time after his enquiry was sent. In this event, the commission agent must inform the committent about the deviations as soon as it becomes possible.


2. In the instances where the commission agent operates as an enterprise/entrepreneur, the committent may grant the commission agent the right to deviate from his instructions without prior permission. In this event, the commission agent must inform the committent about the deviations within a reasonable period unless otherwise provided for by the contract.


3. The commission agent who has sold a thing at a price lower than agreed with the committent must compensate to the latter for the difference in prices unless he proves that he had no possibility to sell the thing at the agreed price and the sale at a lower price enabled the committent to avoid even greater losses. In the instances where the commission agent was obliged to acquire the committent’s permission in advance to sell a thing at a lower price, he must also prove that he had no possibility to obtain such permission in advance.


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4. If the commission agent has purchased a thing at a higher price than agreed with the committent, the latter, not wishing to accept such purchase, must notify the commission agent thereof within a reasonable time upon receipt of the notice from the commission agent about the conclusion of a transaction with a third person. Otherwise, it shall be deemed that the committent has accepted the performance of the obligation.  If the commission agent informs that he accepts the difference in prices at his own expense, the committent shall have no right to repudiate the concluded contract.


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Article 6.786. Right of ownership of the committent


1. Things received by the commission agent from the committent or acquired at the expense of the latter shall be in the ownership of the committent from the moment of the transfer.


2. The commission agent shall have the right to retain the things in his possession which are subject to transfer to the committent or to the person indicated by the latter if the committent fails to perform his obligations in respect of the commission agent.


3. In the event where the committent is declared insolvent (bankruptcy proceedings have been initiated against him), the commission agent shall lose the right of retention and acquire the right of pledge in respect of the thing concerned, while his claims for the amount of the thing retained shall be satisfied together with the claims secured by the pledge.

 


Article 6.787. Satisfaction of claims of the commission agent from the amounts due to the committent 

The commission agent shall have the right, in accordance with the contract of commission, to deduct the amounts due to him from all the amounts received by him on the account of the committent. Nevertheless, the creditors of the committent who enjoy preference with respect to priority of satisfaction of their claims to the commission agent shall not lose the right to satisfy their claims from the amounts deducted by the commission agent.


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Article 6.788. Liability of the commission agent for the loss, shortage or damage of the committent’s thing


1. The commission agent shall be liable towards the committent for the loss, shortage or damage of the committent’s thing situated with the commission agent unless he proves that this happened not through his fault.


2. If the commission agent, in accepting a thing transferred by the committent or received by the commission agent for the committent, notices damage or shortage thereof which is evident from external inspection, likewise if damage has been caused by somebody to the committent’s thing situated with the commission agent, the commission agent must take measures to protect the rights of the committent, gather the necessary evidence and immediately notify the committent thereof.


3. The commission agent who has not insured the committent’s thing situated with the commission agent shall be liable towards the committent exclusively in the cases where the latter has obligated him to insure the property at the expense of the committent, or if the commission agent was obliged to insure the thing pursuant to the commission contract or the law.


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Article 6.789. Report of the commission agent 


1. Upon the performance of the commission, the commission agent must submit a report to the committent and transfer to him everything he has received under the commission, likewise transfer, upon the demand of the committent, all the rights acquired by the committent in respect of a third person arising from the transaction concluded by the commission agent.


2. In the instances where the committent has objections with regard to the report, he must inform the commission agent accordingly within three months from the date of receipt of the report. Otherwise, the report shall be considered to be accepted unless there is another agreement.

 


Article 6.790. Duty of the committent to accept performance of commission

The committent must:


1) accept from the commission agent everything received under the commission;


2) inspect the thing acquired for him by the commission agent and notify the latter without delay about any defects discovered in the thing;


3) relieve the commission agent from the commitments assumed by him to a third person in the performance of the commission.


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Article 6.791. Compensation for expenses incurred in the performance of the commission


1. The committent must, in addition to the commission payment and, in relevant instances, also additional payment for the suretyship assumed (del credere), compensate the commission agent for the necessary expenses incurred by him in the performance of the commission unless otherwise  agreed between the parties.


2. The commission agent shall have no right to demand compensation for the deposit of the committent’s thing situated with the commission agent unless otherwise provided for by the law or the contract.

 


Article 6.792. Termination of a commission contract


1. A commission contract shall terminate as a consequence of: 


1) refusal by the committent to perform the commission contract;


2) refusal by the commission agent to perform the commission contract in the cases provided for by the law or contract;


3) death of the commission agent, declaration thereof to be legally incapable in this area, of limited legal capacity in this area or to be missing, liquidation thereof or declared insolvent (initiation of bankruptcy proceedings).


2. In the event where bankruptcy proceedings are initiated against the commission agent, all the rights and duties with regard to a transaction concluded by him under the instructions of the committent shall pass to the committent.


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Article 6.793. Revocation of commission


1. The committent shall have the right, at any time, to withdraw from the commission contract by revoking the commission given to the commission agent. In this event, the commission agent shall have the right to demand compensation for the expenses caused by the revocation of the commission. 


2. In the instances where the commission contract was concluded for an indeterminate term, the committent must inform the commission agent about the revocation of the commission not later than thirty days in advance unless the commission contract provides for a more extended period. In such cases, the committent must remunerate the commission agent for the transactions concluded by him before the revocation of the commission and compensate the commission agent for the damages suffered.


3. Having revoked the commission, the committent must, within the period established in the contract, or immediately if such period has not been established, instruct the commission agent of how to dispose of the committent’s thing situated with him. Where the committent fails to perform this duty, the commission agent shall have the right to hand over the thing for deposit at the expense of the committent or sell it at a most advantageous price for the committent.


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Article 6.794. Refusal by the commission agent to perform commission


1. Unless otherwise provided for by the contract, the commission agent shall have no right to refuse performance of the commission assumed, except in cases where the refusal is caused by the impossibility to perform the commission or the committent has violated the commission contract.


2. In the instances where the commission agent has the right to refuse commission, he must inform the committent in writing about his refusal. The commission contract shall continue to be valid for two weeks from the date when the committent receives the notification from the commission agent about the refusal of the commission.


3. In the instances where the commission agent refuses performance of the commission assumed on the grounds that the committent has violated the commission contract, he shall be entitled to both compensation of the expenses incurred and the remuneration for the commission.


4. Having refused performance of the contract, the commission agent must take measures necessary for the protection of the committent’s thing.


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Article 6.795. Instructions in respect of property in the event of refusal by the commission agent to perform commission or upon revocation of the commission by the committent


1. The committent, having received the notification of the commission agent about the latter’s refusal to perform commission, must, within one month from the date of receipt of the notification, issue instructions concerning his property situated with the commission agent.


2. If the committent fails to issue instructions in regard of his thing situated with the commission agent within the established period, the commission agent shall have the right to hand over the thing for deposit at the expense of the committent or, with the purpose of satisfying his claims related with the committent, to sell the thing at the most advantageous price for the committent.

 


CHAPTER XXXIX

DISTRIBUTION

 


Article 6.796. Concept of a distribution contract


1. Under a distribution contract, one party (the distributor) shall undertake, within a fixed period or with no term being determined, to purchase in his name and at his expense from the other party (the producer/supplier) goods/services and sell them to the final consumer or to other distributors, as well as to perform other work related to the resale of goods/services, while the producer/supplier shall undertake to sell goods/services to the distributor, as well as to perform other work related to the distribution of goods/services.


2. Only enterprises/entrepreneurs may be parties to a distribution contract.


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Article 6.797. Duration of a distribution contract

A distribution contract may be fixed-term or open-ended.

 


Article 6.798. Form of a distribution contract

A distribution contract must be concluded in writing. Failure to comply with this requirement shall render the contract null and void.

 


Article 6.799. Distributor

The distributor shall be an independent enterprise/entrepreneur which purchases in its/his name and at its/his expense goods from the producer or other distributor and resells them to the final consumer or other distributors.

 


Article 6.800. Types of distribution contracts


1. Distribution contracts may be exclusive and selective.


2. Under an exclusive distribution contract, the producer/supplier shall undertake to sell goods indicated in the contract as intended for resale only to one distributor in a concrete territory exclusively attributed to the distributor or to a concrete group of consumers exclusively attributed to the distributor.


3. Under a selective distribution contract, the producer/supplier shall undertake to sell goods intended for resale only to certain distributors who conform to the technical, qualification or any other criteria determined by the producer/supplier.


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Article 6.801. Limitation of rights of the parties


1. The parties to a distribution contract may provide for only such conditions for limiting competition which are not prohibited by the competition law. Supervision of such conditions shall be executed by a relevant authority pursuant to the procedure established by laws. The competition law may establish additional requirements for the validity of such conditions (registration, etc.).


2. Where all the requirements established in paragraph 1 of this Article are complied with, the parties may determine the following clauses in an exclusive distribution contract:


1) preventing the distributor from producing or distributing goods that compete with the goods indicated in the contract;


2) obligating the distributor to purchase the goods indicated in the contract only from the producer/supplier;


3) preventing the distributor from searching for customers and establishing branches and representative offices in any other territory than indicated in the contract.


3. The parties shall have no right to determine in the distribution contract the price of resale of the goods, or any other exclusive conditions contradictory to the requirements of the competition law.


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Article 6.802. Rights and duties of the distributor


1. The parties may establish in the contract that the distributor who duly performs the contract shall be entitled to additional remuneration for the additional services supplied or the work performed in the interests of the producer/supplier.


2. The parties may also establish the maximum level of the distributor’s profit derived from the resale of the goods unless otherwise provided for by the competition law.


3. Unless otherwise provided for by the contract and the competition law, the distributor must: 


1) sell the goods only in the territory or to persons indicated in the contract;


2) ensure effective distribution of goods;


3) organise the advertising and advertising campaigns for the goods of the producer/supplier;


4) ensure adequate qualification of his employees and their training;


5) ensure adequate storage and warehousing of the goods and continuous replenishing of the stock, establish and maintain a network of trade warehouses;


6) sell the goods under the trademark of the producer/supplier or in the special packaging or with other labelling of the producer/supplier;


7) avoid establishing branches and representative offices in any other territory than determined in the contract;


8) purchase the goods in certain batches or a certain minimum amount within the period established in the contract;


9) sell the goods within a certain period established in the contract;


10) provide technical service to the goods after their sale or provide the buyers of those goods with any other guarantee or servicing;


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10) provide technical service to the goods after their sale or provide the buyers of those goods with any other guarantee or servicing;


11) furnish the producer/supplier with information about the market conditions, its changes and conduct market research;


12) avoid producing goods which compete with the goods established in the contract;


13) avoid revealing commercial secrets or any other confidential information of the producer/supplier;


14) upon the termination of the contract, return to the producer/supplier all the documents, materials, trade samples, etc. received from him.


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Article 6.803. Rights and duties of the producer/supplier


1. The producer/supplier shall have the right to control the warehouses and any other premises of the distributor where the goods purchased from the producer/supplier are stored or sold, as well as control the compliance with other conditions of the contract.


2. Unless otherwise provided for by the contract, the producer/supplier must:


1) sell the goods of adequate quality and guarantee their quality, sell the goods within the time periods and to the extent established in the contract;


2) sell the goods agreed upon only to the distributor and avoid selling goods directly to the consumer;


3) train the employees of the distributor;


4) supply the distributor with advertising material;


5) pay the distributor the remuneration established in the contract for additional services supplied by the distributor.


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Article 6.804. Dissolution of a distribution contract


1. Each party to an open-ended contract shall have the right, at any time, to terminate it having notified in writing the other party thereof not later than three months in advance before the intended dissolution of the contract, unless a more extended period for notice is established in the contract.


2. Upon the dissolution of a fixed-term contract before its expiry, the distributor shall have the right to demand compensation for the income loss for the remaining period of the validity of the contract where the contract is dissolved due to the fault of the producer/supplier. Where the contract is dissolved due to the fault of the producer/supplier, the distributor shall also have the right to demand remuneration for additional services, unless otherwise provided for by the contract.


3. Where the contract is dissolved due to the fault of the distributor, the producer/supplier shall have the right to claim compensation for damage, unless otherwise provided for by the contract.

 


Article 6.805. Renewal of a contract

In the instances where after the expiry of a fixed-term distribution contract the parties continue the performance thereof, the contract shall be deemed renewed under the same conditions for the same period of operation.


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Article 6.806. Liability of the parties to a distribution contract towards third persons


1. For the damage caused to third persons, the distributor and producer/supplier shall be liable on general grounds.


2. For the damage caused to the consumer by goods or services of inadequate quality, liability of the distributor and producer/supplier shall arise in accordance with the rules established in Articles 6.292 to 6.300 of this Code.


3. The clauses of the distribution contract by which the producer/supplier is relieved from liability for damage caused to consumers by goods produced/services supplied shall be null and void.

 


CHAPTER XL

CARRIAGE

 


Article 6.807. General provisions of carriage


1. The carriage of goods, passengers and luggage shall be subject to the contract of carriage.


2. Carriage conditions shall be laid down by this Code, codes of individual modes of transport, other laws, international treaties to which the Republic of Lithuania is a party, as well as other transport legislation.

 


Article 6.808. Contract for the carriage of goods


1. Under the contract for the carriage of goods, the carrier shall undertake to carry the goods handed over to him by the consignor to the point of destination and to deliver them to the person entitled to receive such goods (the consignee), while the consignor/consignee shall undertake to pay a specified charge for the carriage of the goods.


2. The conclusion of the contract of carriage shall be confirmed by a bill of lading or another document.


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Article 6.809. Contract for the carriage of passengers


1. Under the contract for the carriage of passengers, the carrier shall undertake to carry passengers to the point of destination and, where the passengers hand over their luggage to him, to carry the luggage to the point of destination and deliver it to the person entitled to receive such luggage, while the passengers shall undertake to pay a specified charge for the carriage and, where appropriate, for the carriage of their luggage.


2. The conclusion of the contract for the carriage of passengers shall be confirmed by a ticket; the handing over of luggage shall be confirmed by a luggage ticket or any other document provided for by transport legislation.

 


Article 6.810. Charter-party


1. Under a charter-party (charter), one party (the owner) shall undertake to provide to the other party (the charterer), in return for consideration, a means of transport or some part thereof for the carriage of goods, passengers or luggage.


2. The procedure and conditions for the conclusion of a charter-party shall be laid down by codes of individual modes of transport and other laws.


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Article 6.811. Direct combined transport


1. Relationships between transport undertakings in relation to the carriage of goods, passengers or luggage by different modes of transport under a single document of carriage (direct combined transport) as well as organisation of such transport operations shall be regulated by agreements concluded between appropriate transport organisations.


2. Where one carrier entrusts another carrier with the performance of all or part of his obligations, the latter shall also be deemed to be the party to the contract of carriage.  The consignor/consignee shall be deemed to have discharged his obligations by payment to one of the carriers.

 


Article 6.812. Public transport services


1. A legal person (entrepreneur) engaged in the provision of transport services shall be deemed to be providing public transport services if, subject to a law or an authorisation (a licence), he is obliged to provide regular scheduled freight or passenger services at the request of any person.


2. The contract for the provision of public transport services shall be a public contract.


3. Public transport undertakings must provide transport services to any individual, with the exception of cases provided for by law when they are entitled to refuse to enter into contracts of carriage.


4. Passengers, as well as consignors and consignees of goods must conform with the rules governing the activities of public transport undertakings.


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Article 6.813. Carriage charges


1. The carriage of goods, passengers and luggage shall be subject to a charge to be determined by mutual agreement of the parties, unless otherwise provided for by the law.


2. The charge for the carriage of goods, passengers and luggage by public transport shall be established on the basis of tariffs adopted in accordance with the procedure laid down by laws.


3. Any operations or services provided for by the carrier at the request of the consignor of goods shall be remunerated by mutual agreement of the parties, unless such operations and services are subject to established tariffs.


4. The carrier shall be entitled to retain goods and luggage entrusted to him until carriage charges and other amounts due to him have been paid, unless otherwise provided for by law or the contract of carriage.


5. If, in cases provided for by law, charges for the carriage of certain categories of passengers, goods or luggage are subject to preferential arrangements, the carriers shall be compensated for the costs incurred by them to this effect in accordance with the procedure established by laws.

 


Article 6.814. Provision of means of transport


1. Means of transport to be provided by the carrier to the consignor must be in a proper condition and provided within the time limits stipulated in the consignor’s order, the contract of carriage or the contract for the organisation of carriage.


2. The consignor shall be entitled to refuse the means of transport provided to him if they are not suitable for the carriage of certain goods.


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Article 6.815. Loading/unloading of goods 


1. Loading/unloading operations shall be undertaken by the carrier or the consignor/consignee subject to the procedure provided for by the contract of carriage and in accordance with the rules established in the codes of appropriate modes of transport or other legal acts.


2. Where the consignor/consignee is in charge of loading/unloading operations by his own efforts and means, he must do this within the time limit prescribed by the contract of carriage, law or other legal acts.

 


Article 6.816. Time limits for the delivery of goods, passengers and luggage 

The carrier must deliver goods, passengers or luggage to the point of destination within the time limits prescribed by the contract, law or other legal acts or, where such time limits are not prescribed, within a reasonable period.

 


Article 6.817. Liability for the breach of the contract of carriage


1. The parties shall be liable for the failure to perform or improper performance of the contract of carriage on the grounds and in accordance with the procedure laid down in the contract of carriage, this Code, as well as the codes of individual modes of transport and other laws.


2. The terms and conditions of the contract of carriage that exclude or limit the carrier’s civil liability shall be null and void, save for the exceptions laid down by the law.


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Article 6.818. Liability for the failure to provide or to use the means of transport


1. The carrier shall be liable for the failure to provide the means of transport and the consignor shall be liable for the failure to supply the goods or the failure to use the means of transport provided to him on the grounds and in accordance with the procedure laid down by the contract of carriage or laws.


2. The carrier and the consignor shall be exempt from liability for the failure to provide the means of transport or the failure to use them if this is due to:


1) force majeure;


2) termination or restriction of the carriage of goods on certain routes subject to procedures laid down by transport legislation;


3) other cases provided for by the codes of individual modes of transport or other laws.


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Article 6.819. Carrier’s liability for delay of the means of transport


1. Where a means of transport used for the carriage of passengers fails to commence its journey at the specified time or where it fails to reach the point of destination at the specified time (with the exception of means of transport engaged in urban and suburban services), the carrier shall pay to the passenger a penalty laid down by transport legislation, unless the carrier proves that this was due to force majeure, elimination of a breakdown of the means of transport which posed a risk to the health or life of passengers, or due to other circumstances beyond the carrier’s control.


2. Where due to delay of the means of transport the passenger withdraws from the contract of carriage, the carrier must reimburse the passenger for the carriage charge that the latter has paid.


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Article 6.820. Carrier’s liability for the failure to preserve the goods or luggage


1. The carrier shall be liable for the failure to preserve (loss, shortage, damage of) the goods or luggage from the time he accepts the goods or luggage until the delivery thereof to the consignee or any other authorised person, unless the carrier proves that the full or partial loss or damage of the goods or luggage was due to circumstances that the carrier could not have avoided and the elimination of which was beyond the carrier’s control.


2. The extent of the carrier’s liability for the damage caused due to the loss, shortage or damage of the goods or luggage shall be laid down by the contract of carriage or the law.


3. In addition, where the carrier fails to preserve the goods or luggage and where the carriage charges are not included into the value of the goods or luggage, the carrier must reimburse the consignor/consignee for the carriage charges paid by the latter for the carriage of goods or luggage.


4. Documents drafted unilaterally by the carrier with regard to the reasons for the failure to preserve the goods or luggage or the damage thereof may be litigated in the court of law and must be assessed by the court together with other evidence in the case validating the grounds for the carrier’s liability. 

 


Article 6.821. Presentation of claims to the carrier 

The codes of individual modes of transport or other laws may lay down obligatory presentation of claims to the carrier before addressing the court of law.


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Article 6.822. Contracts for the organisation of carriage


1. Where goods are carried continuously and there is a need for setting time limits and procedures for the provision of means of transport and goods, the carrier and the consignor shall enter into a long-term contract for the organisation of carriage.


2. Under the contract for the organisation of carriage, the carrier shall undertake to accept at the time specified in the contract and the consignor shall undertake to supply for carriage the goods in the amount specified in the contract. The contract for the organisation of carriage shall lay down the scope of means of transport and the goods, time limits, payment procedures and other conditions.

 


Article 6.823. Carrier’s liability for the death or injury of the passenger

The carrier’s liability for the death or injury of the passenger shall be determined pursuant to the rules set out in Section Three (Articles 6.263 to 6.291) of Chapter XXII of this Code, unless the law or the contract of carriage provide for a broader extent of the carrier’s civil liability.

 


CHAPTER XLI

FREIGHT FORWARDING


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Article 6.824. Concept of freight forwarding and a contract of freight forwarding


1. Freight forwarding shall mean the organisation of the carriage of goods and operations related thereto provided for in the contract of freight forwarding.


2. The freight forwarder shall mean a legal person (entrepreneur) who has concluded a contract of freight forwarding with the customer whereby he has undertaken to transport, at the expense of the customer/customer’s client and on the customer’s or his own behalf, the customer’s goods as well as to perform any other operations related thereto.


3. Under a contract of freight forwarding, one party (the freight forwarder) shall undertake, for remuneration and at the expense of the other party, i.e. the customer/customer’s client, to provide or organise services provided for in the contract and related to the carriage of goods.


4. A contract of freight forwarding shall be deemed concluded from the moment when the freight forwarder acknowledges the receipt of an order. 


5. The contract of freight forwarding may provide for the freight forwarder’s duty to organise the carriage of goods by the means of transport and the route of the freight forwarder’s or the client’s choice, the freight forwarder’s duty to conclude contracts of carriage or any other contracts on his own or the client’s behalf, to ensure the dispatch, loading or unloading of goods, as well as for any other duties related to the carriage of goods.


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6. The contract of freight forwarding may provide for such additional services to be provided by the freight forwarder as obtaining from appropriate bodies documents necessary for the export or import of goods, carrying out customs or other formalities, inspecting the quantity and condition of goods, loading or unloading of goods, paying fees, charges and other amounts to be paid by the customer/the customer’s client, keeping and storing of goods, as well as providing other services.


7. The rules of this Chapter shall also apply in cases where, under the contract, the freight forwarder’s duties are performed by the carrier.


8. The contract of freight forwarding may be either fixed-term or open-ended.


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Article 6.825. Form of a contract of freight forwarding


1. The contract of freight forwarding shall be concluded in writing or by way of placing an order by any appropriate means of communication.


2. A bill of lading may also constitute a contract of freight forwarding when completed by the freight forwarder and signed by the customer/customer’s client.


3. The client must issue an authorisation to the freight forwarder if this is necessary for the performance of the freight forwarder’s duties.

 


Article 6.826. Freight forwarder’s liability


1. The freight forwarder shall be liable for the failure to perform or improper performance of the contract of freight forwarding in accordance with the procedure laid down in the contract.


2. Where the freight forwarder proves that the breach of the contract of freight forwarding was due to the failure to perform or improper performance of the contract of carriage, the freight forwarder’s liability towards the customer/customer’s client shall be established pursuant to the same rules as are applied to the appropriate carrier’s liability towards the freight forwarder.


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Article 6.827. Documents and information to be furnished to the freight forwarder


1. The customer/the customer’s client must furnish the freight forwarder with documents and other information on the properties of goods, carriage conditions as well as any other details necessary to enable the freight forwarder to duly fulfil his obligations.


2. The freight forwarder must notify the customer/customer’s client of any omissions in the information furnished to him and, in the case where not all information has been received, he must demand that the client furnish all the necessary information.


3. Where the customer/customer’s client fails to furnish the necessary information, the freight forwarder shall have the right to suspend the performance of the contract until such time as the information is supplied. 


4. The customer/customer’s client shall be liable for the damages incurred by the freight forwarder as a result of the failure on the part of the customer/customer’s client to comply with the duties laid down in this Article.


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Article 6.828. Invoking a third party for the performance of an obligation 


1. The freight forwarder shall have the right to invoke third parties for the performance of his obligations, unless the contract provides for the freight forwarder’s obligation to perform the contract personally.


2. Full or partial transfer of the obligation to perform the contract to third parties shall not release the freight forwarder from his obligation towards the customer/customer’s client with respect to the performance of the contract.


3. Where third parties are invoked by the freight forwarder, in full or in part, for the performance of the contract, the freight forwarder shall acquire the rights of the customer/customer’s client with respect to such third parties.

 


Article 6.829. Unilateral termination of the contract


1. Each party shall have the right to unilaterally terminate an open-ended contract of freight forwarding by one month’s notice to the other party, unless a more extended period of notice is provided for in the contract.


2. The party which unilaterally terminates the contract must reimburse the other party for the resulting damage.

 


CHAPTER XLII

DEPOSIT

 


SECTION ONE

GENERAL PROVISIONS


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CHAPTER XLII

DEPOSIT

 


SECTION ONE

GENERAL PROVISIONS

 


Article 6.830. Concept of a contract of deposit


1. Under a contract of deposit, one party (the depositary) shall undertake to keep in his possession a movable thing delivered to him by the other party (the depositor) and to restore it safely preserved to the depositor, whereas the depositor shall undertake to pay remuneration, if this is established by the contract.


2. By agreement between the parties, a contract of deposit may be onerous or gratuitous.


3. Where the depositary is a legal person (entrepreneur) for whom safekeeping constitutes one of the activities he engages in (professional depositary), the contract of deposit or the documents of incorporation of the legal person may provide for the depositary’s obligation to accept into possession from the depositor a thing within the period specified in the contract.


4. A contract of deposit shall be deemed concluded from the moment of delivery of the thing to the depositary.


5. The rules laid down in this Section shall apply to special types of deposit to the extent it is not established otherwise by the provisions of other sections of this Chapter. 

 


Article 6.831. Form of a contract of deposit


1. The custody contract concluded by natural persons must be in writing if the value of the thing/things exceeds one thousand five hundred euros.


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2. If the contract of deposit provides for the depositary’s obligation to accept the thing into possession for safekeeping in future, the contract must be in writing in all cases.


3. A contract of deposit shall be recognised as having been concluded in writing if the delivery of a thing to the depositary is certified by:


1) a receipt or any other document issued by the depositary;


2) a token (number) or any other sign.


4. Failure to abide by the ordinary written form shall not deprive the parties of the right to rely on the evidence presented by witnesses in case of a dispute regarding the identity of the thing that has been delivered for safekeeping and restored.


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Article 6.832. Obligations and rights of the depositary


1. The depositary must use all available means to ensure the preservation of the thing put in his possession.


2. Unless the contract establishes otherwise, the depositary shall have no right, without the depositor’s permission, to make use of the thing deposited with him or to permit the use thereof by other persons.


3. The depositary shall not have the right to require the depositor or the person to whom the thing is to be restored to prove that they are the owners of, or otherwise entitled to, the thing delivered for safekeeping.


4. The depositary must restore the thing to the depositor on demand, even before the expiry of the period of deposit.


5. The depositary shall have the right to request that the person to whom the thing is returned produce a receipt or any other document evidencing conclusion of the contract of deposit and the person’s right to withdraw the thing.


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Article 6.833. Performance of the obligation to deliver a thing for safekeeping


1. Having undertaken to accept a thing for safekeeping, the depositary shall have no right to require the delivery of the thing to him for safekeeping.  However, the depositor, who fails to deliver the thing for safekeeping within the time period set in the contract, must indemnify the depositary for any loss incurred by the depositary due to the failure to deliver the thing, unless otherwise established in the contract. The depositor shall be released from the liability if he notifies the depositary of his refusal to deliver the thing within a reasonable time.


2. Unless otherwise established in the contract, the depositary shall have the right to refuse to accept the thing for safekeeping if it has not been delivered to him within the time period set in the contract.


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Article 6.834. Period of deposit


1. The depositary must preserve the thing for the period of deposit set in the contract.


2. Where the period of deposit is not set in the contract and cannot be set under the conditions of the contract, the depositary must preserve the thing until the restoration thereof is demanded by the depositor or any other person entitled to withdraw the thing.


3. Where it is stipulated that the period of deposit expires from the moment the restoration of the thing is demanded, the depositary shall be entitled, upon the expiration of the time period of deposit customary under the conditions, to demand that the depositor withdraw the thing within a reasonable time from the receipt of such a notice. In case of failure by the depositor to withdraw the thing, the rules set in Article 6.843 of this Code shall apply.

 


Article 6.835. Mixing of things

In the cases specified in the contract of deposit, things delivered for safekeeping may be mixed with other things of the same type and quality delivered for deposit by other persons.   In such cases, the depositor shall be restored the quantity of the things of the same type and quality which is provided for in the contract.


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Article 6.836. Conditions of safekeeping of a thing


1. The depositary must preserve the thing in accordance with the conditions of safekeeping set in the contract.  Where the conditions of safekeeping are not set in the contract or not all conditions are set, the depositary must preserve the thing under such conditions which would ensure maximum protection of the thing.


2. In all cases, the depositary must ensure that he complies with the requirements for implementation of safety measures (fire-prevention, sanitary, etc.), laid down in laws and other legal acts.


3. In case of gratuitous deposit, the depositary must take as much care of the thing as he would take of his own things.


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Article 6.837. Change of the conditions of safekeeping


1. If a change of the conditions of safekeeping is necessary, the depositary must forthwith notify the depositor thereof and receive his instructions. Where an immediate change of the conditions of safekeeping is necessary in order to avoid the perishing or damage of the thing, the depositary shall have the right to change the manner, place and other conditions of safekeeping without the depositor’s instructions.


2. If a thing is in danger of perishing or if a thing is delivered for safekeeping in a damaged condition, also if there are other circumstances which preclude guaranteeing safety of the thing, whereas the depositor may not be expected to take urgent measures, the depositary shall be entitled to sell the thing or a part thereof at the market price of the locality of deposit. If the specified circumstances occur for reasons for which the depositary is not liable, he shall have the right to claim reimbursement of the costs relating to the sale of the thing.


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Article 6.838. Safekeeping of hazardous things


1. Flammable, explosive or other hazardous things may be at any time rendered harmless or destroyed by the depositary. The depositor shall not be indemnified for the losses incurred by reason thereof, if the depositor did not notify the depositary of the hazardous qualities of the things when delivering the hazardous things for safekeeping. In such cases, the depositor shall be liable for the losses caused to the depositary and third persons due to the safekeeping of such things.


2. Where hazardous things are delivered for safekeeping to a professional depositary, the rules of paragraph 1 of this Article shall apply only in the cases where the things were delivered for safekeeping under an incorrect name and at the moment of acceptance thereof the depositary could not determine the hazardous qualities of the things from their external examination.


3. Where deposit is for remuneration, the payment made to the depositary in the cases provided for in paragraphs 1 and 2 of this Article shall not be refunded, and where no payment was made, the depositary shall be entitled to recover the full amount thereof from the depositor.


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4. If the depositary accepts the hazardous things specified in paragraph 1 of this Article for safekeeping knowing of the hazardous qualities thereof, the depositary shall be entitled to render the things harmless or destroy them without indemnifying the depositor for the losses if danger arises to the life or property of the depositary or third persons and the depositor fails to meet the depositary’s demand for immediate withdrawal of the things. In such cases, the depositor shall not be liable to the depositary and third persons for the losses incurred by them due to the safekeeping of such things.


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Article 6.839. Transfer of things for safekeeping to a third person


1. Unless the contract of deposit establishes otherwise, the depositary shall have no right to transfer the things for safekeeping to a third person without the depositor’s consent, except in cases where the interests of the depositor have to be safeguarded due to the circumstances that have arisen and the depositary has no possibilities to obtain the depositor’s consent.


2. Having transferred the things for safekeeping to a third person, the depositary must forthwith notify the depositor thereof.


3. Transfer of the things to a third person for safekeeping shall preserve the validity of the contract of deposit between the depositor and depositary. The depositary shall be liable to the depositor for the actions of the third person.


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Article 6.840. Remuneration for deposit


1. Where the contract of deposit is onerous, the depositor must pay the depositary a remuneration upon the termination of safekeeping. The parties may agree that payment of the remuneration will be made in instalments upon the expiration of the time period set in the contract.


2. Where payment of the remuneration in instalments has been agreed upon, the depositor’s failure to effect payment for more than one period shall entitle the depositary to terminate the contract and demand from the depositor immediate withdrawal of the thing.


3. If the contract of deposit expires before the date set in the contract due to the circumstances for which the depositary is not responsible, he shall be entitled to the portion of remuneration corresponding to the duration of safekeeping and, in cases provided for in paragraph 1 of  Article 6.838 of this Code, to the full amount of the remuneration. Where the contract of deposit expires due to the circumstances for which the depositary is responsible, he shall have no right to demand payment of remuneration and must refund the depositor the amounts paid.


4. In case of failure by the depositor to withdraw the thing upon the expiration of the period of deposit, he must pay an appropriate remuneration for further safekeeping of the thing. The above rule shall also apply where the depositor must withdraw the thing prior to the expiry of the period of the contract of deposit.


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5. The depositary shall have the right to retain the thing delivered to him for safekeeping until he is paid the full amount of the remuneration by the depositor.


6. The rules of this Article shall apply unless the contract of deposit establishes otherwise.


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Article 6.841. Reimbursement of expenses related to safekeeping


1. Unless the contract of deposit establishes otherwise, the depositary’s expenses related to the safekeeping of the thing shall be entered in the remuneration for deposit.


2. If the contract of deposit is gratuitous, the depositor must reimburse the depositary for the necessary expenses related to safekeeping, unless otherwise established by the law or the contract.


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Article 6.842. Extraordinary expenses of deposit


1. The depositary shall be reimbursed for the expenses of deposit which are in excess of the regular expenses of such type of deposit and which could not have been foreseen by the parties at the moment of conclusion of the contract of deposit (extraordinary expenses), provided that the depositor gave his consent to incurring such expenses or subsequently approved such expenses, as well as in other cases provided for in the contract of deposit.


2. Where it is necessary to incur extraordinary expenses, the depositary must notify the depositor thereof and obtain his consent.  In case of failure by the depositor to give his response to the depositary within a reasonable time, consent to incur extraordinary expenses shall be deemed to have been granted.


3. If the depositary incurs extraordinary expenses without the depositor’s consent where such consent could have been obtained and the depositor has not approved the expenses, the depositary shall have the right to demand reimbursement for the extraordinary expenses only taking into account the amount of the damage that could have been caused to the thing preserved if the extraordinary expenses had not been incurred.


4. Unless otherwise established in the contract of deposit, reimbursement for the extraordinary expenses shall be paid separately from the remuneration for deposit.


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Article 6.843. Depositor’s obligation to withdraw the thing


1. Upon the expiry of the period of the contract of deposit as well as of the period fixed by the depositary for withdrawing the thing, the depositor must forthwith withdraw the thing delivered for safekeeping.


2. In case of failure by the depositor to withdraw the thing, the depositary shall have the right, upon giving the depositor a written notice to that effect, at his own discretion sell the thing in his custody for the market price of the locality of safekeeping. If the value of the thing in custody exceeds six hundred euros, the depositary shall have the right to sell it only by auction. 


3. The proceeds from sale of the thing shall be transferred to the depositor upon deducting therefrom the amounts due to the depositary.


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Article 6.844. Depositary’s obligation to restore the thing


1. The depositary must restore to the depositor or any other person authorised by him the identical thing that was delivered to the depositary for safekeeping, save for the exceptions provided for in Article 6.835 of this Code.


2. The thing must be restored in the same condition in which it was handed over for safekeeping, having regard to its normal wear and tear, amortisation or change due to its natural qualities.


3. Unless otherwise established by the contract of deposit, the depositary must restore to the depositor, together with the thing, the fruits and revenues received therefrom in the course of its safekeeping.


4. The thing must be restored at the place where it was handed over for safekeeping, unless the contract establishes otherwise. Where the contract of deposit is gratuitous, the cost of restoration of the thing shall be borne by the depositor. Where the contract of deposit is onerous, the cost of restoration of the thing shall be borne by the depositary.


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Article 6.845. Grounds for the depositary’s liability


1. The depositary shall be liable for the loss, shortage or damage of the things delivered to him.


2. Where the contract of deposit is onerous, the depositary shall be in all cases liable for the loss, shortage or damage of the things delivered to him, unless it was caused by force majeure. Where the contract of deposit is gratuitous, the depositary shall be liable only if he is at fault.


3. A professional depositary shall be liable in all cases, except where the thing was lost or damaged due to or by force majeure.


4. The depositary shall be liable for the loss, shortage or damage of the thing after the arising of the depositor’s obligation to withdraw the thing only where there has been the depositary’s malice or gross negligence. 


5. Where the depositary’s heir or other legal representative sells the thing delivered for safekeeping without knowing or ought to have known that the thing is not in the depositary’s ownership, the heir or other legal representative must return only the price he has received or assign to the depositor his claim against the buyer in good faith if the price has not been paid.


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Article 6.846. Amount of the depositary’s liability


1. The depositary must compensate the depositor for any damage connected with the loss, shortage or damage of the thing.


2. Where the contract of deposit is gratuitous, the depositary shall be liable for:


1) the loss or shortage of the thing in the amount of the value of the thing or of the missing part thereof;


2) the damage of the thing in the amount of the reduction of the value of the thing.


3. Where, due to the damage of the thing for which the depositary is liable, the value thereof has been reduced to the extent that it may no longer be used for its previous purpose, the depositor shall have the right to refuse withdrawing the thing and to demand that the depositary compensate for the value of the thing and for all losses, unless otherwise established by the contract.

 


Article 6.847. Compensation for damage inflicted on the depositary

The depositor must compensate for the damage inflicted on the depositary due to the qualities of the thing kept in custody if the depositary was not aware and could not have been aware of those qualities when accepting the thing for safekeeping, whereas the depositor was aware or ought to have been aware thereof.

 


Article 6.848. Termination of the contract of deposit on the depositor’s demand

The depositor shall have the right to demand, at any time, restoration of the thing, whereas the depositary must restore it even before the expiry of the period of the contract of deposit.


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Article 6.849. Necessary deposit


1. Necessary deposit shall take place where a person is compelled, by an unforeseen and unavoidable urgent necessity (accident, natural disaster, etc.) to entrust the custody of his property to another person.


2. In case of a necessary deposit, the depositary may not refuse to accept the thing for safekeeping without a serious reason. 


3. In case of a necessary deposit, the depositary shall be liable in the same manner as a depositary under the contract of gratuitous deposit.


4. The delivery of a patient’s things to a health or guardianship/curatorship institution shall be presumed to be a necessary deposit.

 


Article 6.850. Deposit under law

The rules of this Section shall also apply with respect to deposit obligations which arise under law, unless the law establishes otherwise.

 


SECTION TWO

WAREHOUSING

 


Article 6.851. Concept of a warehouse contract


1. Under a warehouse contract, the warehouse (the warehouse-keeper) shall undertake to safeguard for consideration the goods deposited with it/him by the owner/depositor of the goods and to restore them to the specified person after safekeeping.


2. For the purposes of this Section, the warehouse shall be considered to be a legal person (entrepreneur) whose principal type of activity is safekeeping of goods and provision of other services connected with the safekeeping of goods.


3. The warehouse contract shall be executed by issuing a warehouse certificate.


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Article 6.852. Warehouse of common use


1. Only a warehouse which is bound, under law or documents relating to its activities, to accept goods for safekeeping from any owner of the goods shall be recognised as a warehouse of common use.


2. The contract of safekeeping of goods deposited with a public warehouse of common use shall be recognised as a public contract.

 


Article 6.853. Inspection of goods


1. Unless otherwise provided for in the warehouse contract, the warehouse must inspect, at its own expense, the goods when accepting them for safekeeping and determine the amount of the goods (number, volume, weight, etc.) as well as assess the outward appearance thereof.


2. During the safekeeping of good, the warehouse must provide the owner of the goods with an opportunity to examine the goods in storage, take samples thereof and apply other measures necessary for ensuring the safety of the goods.

 


Article 6.854. Changing the conditions of safekeeping of goods


1. If the conditions of safekeeping of goods set in the warehouse contract require changing in order to ensure safety of the goods, the warehouse shall be entitled to apply the necessary measures at its discretion. Where this necessitates material changes in the conditions of safekeeping laid down in the warehouse contract, the warehouse must notify the owner of the goods accordingly.


2. If changes which are not provided for in the warehouse contract are detected in the stored goods during their safekeeping, the warehouse must promptly draw up an appropriate record, notifying the owner of the goods thereof on the same day.


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Article 6.855. Inspection of the released goods


1. The person to whom the goods are released and the warehouse shall have the right to demand to examine the goods being released and to inspect their quantity. Expenses related to the inspection shall be defrayed by the party demanding to examine or inspect the goods.


2. Where the released goods have not been examined and inspected in the presence of both parties, a written statement regarding the shortage or damage of the goods must be submitted at the time of release of the goods or within three days from the release thereof, provided the shortage or damage could not have been detected by normal examination of the goods.   In such case, the burden of proof of the shortage or damage of the goods shall fall on the person to whom the goods are released.


3. In the absence of the statement provided for in paragraph 2 of this Article, the warehouse shall be deemed to have released the goods in accordance with the conditions of the warehouse contract, until it is proved to the contrary.


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Article 6.856. Warehousing documents


1. Having received the goods for safekeeping, the warehouse shall issue one of the following documents confirming the warehouse contract:


1) a double warehouse certificate;


2) an ordinary warehouse certificate;


3) a warehouse receipt.


2. A double warehouse certificate shall consist of two parts, i.e. a warehouse certificate and a pledge certificate (Article 6.857 of this Code), which shall be separable.


3. A double warehouse certificate, each one of its two parts, and an ordinary warehouse certificate shall be securities. 


4. Goods received for safekeeping with a double warehouse certificate, if the parts thereof have been separated, or with an ordinary warehouse certificate may be an object of pledge during the period of safekeeping by way of pledging the corresponding certificate.


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Article 6.857. Double warehouse certificate and its content


1. The following must be indicated in each part of the double warehouse certificate:


1) the name and place of the warehouse;


2) the number of the warehouse certificate;


3) the name and registered office of the owner/depositor of the goods;


4) the name and quantity of the goods (units, weight, volume, etc.) and, in case the goods have been an object of pledge, the amount of the pledge;


5) the time period of safekeeping of the goods or instruction for their safekeeping until the demand for their release;


6) the amount of remuneration for the deposit or the tariffs on the basis of which it is to be calculated and the procedure of payment for deposit;


7) the date of issue of the warehouse certificate.


2. A document shall not be deemed to be a double warehouse certificate if at least one of the requisite items listed in paragraph 1 of this Article is missing.


3. A double warehouse certificate shall be a document of title granting the right to dispose of the goods.


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Article 6.858. Rights of the holder of warehouse and pledge certificates


1. The holder of a warehouse and pledge certificate shall be entitled to dispose of the goods in storage in the warehouse.


2. The holder of a warehouse certificate which has been separated from the pledge certificate shall be entitled to dispose of the goods, however he shall have no right to reclaim the goods from the warehouse until the repayment of the credit granted against the pledge certificate.


3. The holder of a pledge certificate shall have the right of pledge on the goods in an amount equal to the sum of the credit granted against the pledge certificate and the interest thereon. When the goods are being pledged, a notice to that effect shall be made in the warehouse certificate.

 


Article 6.859. Transfer of warehouse and pledge certificates   

Warehouse and pledge certificates may be transferred to another person either together or separately by way of inscriptions of transfer (on the basis of endorsement).


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Article 6.860. Release of goods under the double warehouse certificate


1. The warehouse shall release the goods to the holder of the warehouse and pledge certificate (double warehouse certificate) only in exchange for both of these certificates together.


2. The holder of the warehouse certificate who does not have a pledge certificate but has paid the amount of debt on it, shall be released the goods by the warehouse in exchange for the warehouse certificate and a receipt evidencing payment of the full amount of the debt.


3. If the warehouse releases the goods in violation of the rules laid down in this Article, it must pay to the holder of the pledge certificate the entire amount secured by the pledge.


4. The holder of the warehouse and pledge certificates shall be entitled to demand that goods be released to him in parts. In such cases, in exchange for the original certificates, new certificates shall be issued to him for the goods remaining in the warehouse.

 


Article 6.861. Ordinary warehouse certificate


1. An ordinary warehouse certificate shall be a bearer instrument granting the bearer the right to the release of the goods.


2. An ordinary warehouse certificate must contain the particulars provided for in points 1, 2, and 4 to 7 of paragraph 1 of Article 6.857 of this Code as well as an indication that it has been issued to the bearer.


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Article 6.862. Deposit of things with the right of their disposal

If the law or the contract establishes the right of the warehouse to dispose of the things deposited for safekeeping, the rules regulating the loan contract (Chapter XLIII of this Code) shall also apply to the relationships between the parties, however, the place and time of release of the things shall be governed by the provisions of this Chapter.

 


SECTION THREE

SPECIAL TYPES OF DEPOSIT


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Article 6.863. Temporary deposit (sequestration) of things which are the object of a dispute


1. Sequestration shall be a contract of deposit by which two or more persons who are in dispute over the right to a thing place the thing in the hands of another person chosen by them (sequestrator).   This person shall undertake to restore the thing, upon the resolution of the dispute, to the person who will then be entitled to it.


2. The object of sequestration may be an immovable thing as well as a movable thing.


3. The parties shall select the sequestrator by mutual agreement. They may select a party to the dispute to act as sequestrator. Where the parties disagree on the selection of the sequestrator, he shall be appointed by the court hearing the dispute. A person may be appointed sequestrator only with his consent.


4. The sequestrator shall have the right to perform any necessary acts in respect of the sequestered thing which may be performed by a simple property administrator, save for the exceptions established by agreement between the parties or a court ruling.


5. The sequestrator shall be entitled to remuneration unless otherwise stipulated by the contract or a court ruling.


6. The sequestrator shall restitute the thing to the person specified in the court judgment or ruling.  If the parties enter into a settlement agreement, the thing shall be restored to the persons specified in the settlement agreement.


7. Upon the termination of sequestration, the sequestrator must render an account of his management of the property and deliver it to the parties or the court.


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8. Where a person is appointed sequestrator of the attached property by the court, the bailiff, the tax administrator or any other officer, the sequestration shall be subject, in addition to the provisions of this Article, to those laid down in the Code of Civil Procedure.


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Article 6.864. Deposit of things with a pawnshop


1. A contract for depositing things owned by a natural person with a pawnshop shall be a public contract.


2. A contract for depositing things with a pawnshop shall be certified by a pawn ticket issued to the pawnor.


3. The price of the things deposited with the pawnshop shall be set by agreement between the parties.


4. The pawnshop must insure, at its own expense and for the benefit of the pawnor, the thing deposited with it for the amount equal to the price of the thing set by agreement between the parties.


5. Where a thing deposited with the pawnshop is not redeemed within the time period set in the contract, the pawnshop must keep the thing for one more month at the pawnor’s expense. Upon the expiration of the said time period, the pawnshop shall have the right to sell the thing in the manner laid down in paragraph 2 of Article 6.843 of this Code.


6. The proceeds of such sale shall be used to cover the expenses of the pawnshop which may have arisen in relation to the storing of the thing and other amounts due to it, while the balance shall be repaid by the pawnshop to the pawnor.


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Article 6.865. Deposit of things with hotels


1. A hotel shall be liable, without a special agreement with the person who lodges with it, in the same manner as a depositary, for the loss, shortage or damage of the personal effects of the said person.  The hotel shall be entitled to retain, as security for payment of the cost of lodging and services actually provided by the hotel, the personal effects brought into the hotel by the guest.


2. Under paragraph 1 of this Article, the hotel shall be liable for the loss, shortage or damage of the things which:


1) were kept in the hotel room or at any other place in the hotel during the person’s lodging with the hotel;


2) were entrusted by the hotel guest as deposit to the hotel staff for safekeeping within the hotel or outside it;


3) were placed as deposit with the hotel for a reasonable time starting from the moment the person takes up lodging with the hotel and after his departure.


3. Where the property has not been deposited with the hotel, with the exception of the cases where the hotel has refused to accept the property which the hotel is bound to accept for safe custody, the civil liability for the loss, shortage or damage of the personal effects of a person who lodges with it shall be limited to the price, multiplied by one hundred, paid for the overnight lodging at the hotel by that person. The civil liability for the loss, shortage or damage of one thing of a person who lodges with the hotel shall be limited to the price, multiplied by fifty, paid for the overnight lodging at the hotel by that person.


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4. The hotel shall be liable and its civil liability shall not be limited pursuant to paragraph 3 of this Article where the damage, destruction or loss of the property is caused through the fault of the hotel or any person for whose actions the hotel is responsible


5. The hotel must accept for deposit sums of money, jewellery and other valuables brought by the persons who lodge with it, unless the things are dangerous to the people around or, by reason of their large size or excessive value, are cumbersome to the hotel and its guests.


6. A hotel, accepting for deposit sums or money or other valuables, shall have the right to require them to be properly packaged and marked.


7. Unless the hotel administration is immediately notified by the person lodging with the hotel of the disappearance, shortage, damage or destruction of his things, the hotel shall be released from liability for failure to preserve the things.


8. The hotel shall not be liable for failure to preserve the things if this was due to the fault of the owner of the things, the persons accompanying him or invited to the hotel or due to force majeure or because of the properties of the thing. Neither shall the hotel be liable for failure to preserve the vehicles of the hotel guests left outside the hotel’s guarded parking lot, and the things or animals left in the said vehicles.


9. An agreement between the parties or a unilateral statement by the hotel that the hotel is not liable for the safety of the things of its guests or establishing a limited liability shall be null and void.  The limited liability of the hotel shall be defined in paragraph 3 of this Article.


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10. The rules of this Article shall also apply to the deposit of things with motels, rest homes, residential care homes, sanatoria and other similar institutions.


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Article 6.866. Deposit of things with a bank


1. A bank shall have the right to accept for deposit securities, precious metals and precious stones, other valuables and documents.


2. The contract of deposit of things with a bank shall be certified by the storage certificate issued to the depositor by the bank.


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Article 6.867. Deposit of valuables in an individual bank safe


1. The contract of deposit may provide for the safekeeping of the client’s valuables in an individual bank safe/safe deposit box or an isolated vault of the bank allotted for use by the client.


2. Under the contract of deposit of valuables in an individual bank safe, the client shall have the right to place the valuables in the safe and take them from the safe by himself. The bank shall issue the client with the key to the safe and the client’s identification card or any other document certifying the client’s right to enter the bank depository where the client’s individual safe is located and to open the safe.


3. The contract of deposit may also provide for the client’s right to work in the bank with the valuables deposited in the individual bank safe.


4. The bank shall accept from the client the valuables to be deposited in the safe and shall also supervise their placement in and withdrawal from the safe and shall hand over to the client the valuables taken from the safe. Where the contract stipulates that the client uses the individual safe personally, the bank must ensure that the client is able to place the valuables in the safe and withdraw them from the safe unattended by anyone, bank employees included. The bank must also ensure the client’s free entry into the bank depository where his individual safe is located.


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5. Unless otherwise provided by the contract of deposit, the bank shall be released from liability for the failure to preserve the valuables placed in the individual safe if it proves that under the conditions of safekeeping, no person was allowed access to the contents of the safe without the client’s knowledge or that the valuables were lost due to force majeure.


6. Where, under the contract, the individual safe is allotted for use to another person and the liability of the bank for the preservation of the valuables placed in the safe is not established, the rules regulating the contract of lease shall apply to the contract of this type.


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Article 6.868. Deposit of things in left luggage offices of transport companies


1. General use left luggage offices of transport companies must accept for safekeeping personal effects of passengers and other persons, irrespective of whether or not the passenger possesses travelling tickets. The contract of deposit in left luggage offices of transport companies shall be a public contract.


2. Conclusion of the contract of deposit in a left luggage office, except for automatic safety deposit boxes, shall be confirmed by issuing the depositor with a receipt or token.  In case of loss of the receipt or token, the thing shall be released to the depositor after he proves his ownership of the thing.


3. The time period of safekeeping of the thing in the left luggage office shall be set by agreement between the parties. Transport companies shall have the right to set maximum time periods for the safekeeping with possible extension by agreement between the parties. Things that are not retrieved within the set period shall be stored for one more month and thereafter sold in accordance with the procedure established in paragraph 2 of Article 6.843 of this Code.


4. In case of loss, shortage or damage of the things deposited for safekeeping, the transport company must, within twenty-four hours after the filing of the claim, compensate for the value specified when the depositor delivered the things for safekeeping.


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Article 6.869. Deposit of things in the cloakroom


1. It shall be presumed that the safekeeping of things in cloakrooms is gratuitous, except in cases when the things are delivered upon explicit agreement of deposit for remuneration.


2. Irrespective of whether the contract of deposit is onerous or not, the depositary must take all measures within his power in order to ensure the safekeeping of the things delivered to the cloakroom.


3. The rules of this Article shall also apply in the cases when natural persons leave their outer clothing, headgear and other similar things in enterprises, institutions, organisations or means of transport in the places designated for that purpose without a special delivery thereof for safekeeping.

 


CHAPTER XLIII

LOAN

 


SECTION ONE

GENERAL PROVISIONS

 


Article 6.870. Concept of a loan agreement


1. Under a loan agreement, one party (the lender) shall transfer into the ownership of the other party (the borrower) money or consumable generic things, and the borrower shall undertake to repay the lender the same amount of money (the amount of the loan) or return the same amount of things of the same kind and quality, and to pay the interest unless otherwise established in the agreement.


2. The loan agreement shall be deemed concluded from the moment of transfer of money or things.


3. The borrower shall become the owner of the things/money transferred to him. From the moment of transfer of the things, the risk of accidental loss or damage of the things shall pass to the borrower.


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Article 6.871. Form of a loan agreement


1. The loan agreement of natural persons must be made in writing if the amount of the loan exceeds six hundred euros.


2. If the lender is a legal person, the loan agreement must be made in writing in all events notwithstanding the amount of the loan.


3. The requirements of a written form shall be satisfied by a loan receipt or any other debt instrument, signed by the borrower, confirming the transfer of the subject matter of the loan agreement to the borrower.


4. Where the amount of the loan exceeds three thousand euros and the transaction is made in cash, the loan agreement must be drawn in the notarial form.

 


Article 6.872. Interest


1. The amount of interest on the use of the amount of loan and the procedure of payment thereof shall be established by agreement between the parties. If the parties have not agreed on the amount of interest, the interest shall be determined based on the average interest rate of commercial banks of the place of residence or business of the borrower which existed at the moment of conclusion of the loan agreement.


2. Except when otherwise agreed by the parties, the interest shall be paid on a monthly basis until repayment of the amount of the loan.


3. It shall be presumed that the loan agreement is gratuitous if the subject matter of the loan agreement comprises generic things, unless otherwise established in the loan agreement. If the subject matter of the loan agreement is money, the loan agreement shall be presumed to be onerous.


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Article 6.873. Obligation of the borrower to repay the amount of the loan


1. The borrower must repay the received loan to the lender at the time and in accordance with the procedure laid down in the agreement.


2. In cases when the term for repayment of the amount of the loan is not set forth in the agreement or the loan is to be repaid upon demand, the borrower must repay the amount of the loan within thirty days from the day when the lender made the demand for performance of the agreement, unless otherwise established in the agreement.


3. Unless the loan agreement provides otherwise, the borrower shall be entitled to repay the amount of the gratuitous loan prior to the term.    


4. The amount of the non-gratuitous loan may be repaid by the borrower prior to the term only upon consent of the lender.


5. Unless otherwise prescribed by the loan agreement, the amount of the loan shall be deemed repaid from the moment of its transfer to the lender or crediting to the bank account of the lender.


6. When the subject matter of the loan is an amount of money, the borrower must repay a nominal amount only, notwithstanding the changes of the value of a monetary unit, unless otherwise established in the agreement.


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Article 6.874. Consequences of the breach of the agreement by the borrower


1. In case of failure by the borrower to timely repay the amount of the loan, the borrower must pay the interest established in Article 6.210 of this Code from the day when the amount of the loan had to be repaid until the day of its actual repayment, notwithstanding the payment of the interest set forth in Article 6.37 of this Code, unless otherwise established in the loan agreement.


2. If the loan agreement provides for repayment of the amount of the loan in instalments and a regular instalment is not repaid when due, the lender shall be entitled to demand repayment of all the outstanding amount of the loan together with the accrued payable interest.


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Article 6.875. Contesting of the loan agreement


1. The borrower shall have the right to contest the loan agreement if he has not actually received the money or things, or if he has received less than specified in the agreement.  Such circumstances must be proved by the borrower.


2. If the loan agreement had to be made in writing (Article 6.871 of this Code), it shall not be permitted to contest the loan agreement subject to the testimony of witnesses in accordance with paragraph 1 of this Article, except for the cases stipulated in Article 1.93 of this Code or if the loan agreement is concluded by fraud, compulsion or real threat, or by virtue of wilful arrangement of the borrower’s agent with the lender, or due to existing grave circumstances.


3. If it is proved that money or things have not actually been transferred to the borrower, the loan agreement shall be deemed not concluded. When the borrower has received less money or things than provided for in the agreement, the loan agreement shall be deemed concluded for the actually received amount of money or things.

 


Article 6.876. Legal consequences of the loss of security for fulfilment of the borrower’s obligations

If the borrower fails to fulfil the obligation under the loan agreement to provide the security for the fulfilment of his obligations or if the provided security is lost or its conditions deteriorate due to the circumstances beyond the lender’s control, the lender shall be entitled to request the borrower to repay the amount of the loan prior to the term as well as to pay the interest, unless otherwise established in the loan agreement.


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Article 6.877. Purpose loan


1. Where the loan agreement is concluded with the provision that the borrower will use the amount of the loan for a certain purpose (the purpose loan), the borrower must ensure that the lender is able to control the usage of the amount of the loan by the borrower.


2. If the borrower uses the amount of the loan for a purpose other than that set forth in the loan agreement or if he breaches the condition established in paragraph 1 of this Article, the lender shall be entitled to request the borrower to repay the amount of the loan prior to the term and pay the interest, unless the agreement provides otherwise.

 


Article 6.878. Bill of exchange

If the borrower issues a bill of exchange under which he undertakes to repay the received amount of the loan on the term specified in such note, the relations between the parties shall be governed by the provisions of this Chapter to the extent such provisions do not contradict the law regulating the bills of exchange.


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Article 6.879. Bond


1. In cases provided by laws, a loan agreement may be concluded by issuing and selling bonds.


2. A bond shall be deemed a security which confirms its holder’s right to receive from the person who has issued such bond, within the term specified in the bond, the amount of the nominal value of the bond or any other property equivalent. A bond shall also grant its holder the right to receive the interest specified in the bond on the nominal value of the bond or other property rights. 


3. The provisions of this Chapter shall apply to the relations between the person who has issued the bond and the holder of the bond only if the laws do not prescribe otherwise.

 


Article 6.880. Substitution (novation) of the debt by the loan obligation

By agreement of the parties, the debt arising from the purchase and sale, lease or any other contract may be substituted by the loan obligation according to the rules set forth in Articles 6.141 to 6.144 of this Code.

 


SECTION TWO

CREDITING


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SECTION TWO

CREDITING

 


Article 6.881. Concept of a crediting agreement


1. Under a crediting agreement, a bank or any other credit institution (the creditor) shall undertake to grant to the borrower monetary funds (the credit) in the amount and under the terms and conditions established in the agreement, and the borrower shall undertake to repay the received amount to the creditor and pay the interest.


2. The provisions of Section One of this Chapter shall apply to crediting relations to the extent they do not contradict the essence of the crediting agreement and the rules set forth in the present Section.

 


Article 6.882. Form of a crediting agreement

The crediting agreement must be made in writing. Failure to comply with this requirement shall make the crediting agreement null and void.


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Article 6.883. Refusal to grant or accept the credit


1. The creditor shall be entitled to refuse to grant to the debtor, in full or in part, the credit provided for in the agreement upon disclosure of the circumstances expressly evidencing that the credit will not be repaid in due time.


2. The borrower shall be entitled to refuse to accept the credit, in full or in part, upon notification of the creditor to that effect before the term set forth in the agreement for granting of the credit, unless otherwise established in the agreement.


3. If the borrower breaches the obligation for the purposive usage of the credit as established in the agreement (Article 6.877 of this Code), the creditor shall be entitled to refuse to continue crediting the borrower and demand repayment of the granted credit prior to the term.

 


Article 6.884. Crediting with goods


1. The parties may enter into an agreement on crediting with goods establishing an obligation of one party to transfer to the other party the generic things. Such agreement shall be subject to the provisions of this Section, unless otherwise specified in the agreement between the parties.


2. The quantity, assortment, completeness, quality, containers and packaging of the goods to be transferred shall be determined in accordance with the rules of Articles 6.327 to 6.333 of this Code, unless otherwise stipulated by the agreement of the parties and this is not contrary to the essence of the agreement.


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Article 6.885. Commercial crediting


1. In an agreement the performance whereof is related to the transfer into the ownership of the other party of money or generic things, the parties may provide for the granting of the credit. The credit may be granted by deferring or apportioning the advance payment, payment for goods, works or services (commercial crediting).


2. The relations of the commercial crediting shall be subject to the provisions of this Section, unless otherwise stipulated by the agreement of the parties and this is not contrary to the essence of the agreement.   

 


SECTION THREE

CONSUMER CREDIT

 


Article 6.886. Concept of a consumer credit agreement


1. Under a consumer credit agreement, the creditor shall grant or promise to grant to the borrower credit in the form of a deferred payment, loan or other similar financial accommodation, except for agreements for the continued provision of services of the same kind or for the supply of goods of the same kind, where the borrower pays for such services or goods for the duration of their provision or supply by means of instalments.


2. When providing a consumer credit service, the creditor must ensure the adequate implementation of the principle of responsible lending.


3. Relationships pertinent to consumer credit shall be regulated by this Code and other laws.


4. Under this Article, the creditor shall be a person who, in accordance with the procedure and in the cases laid down by law, grants or promises to grant consumer credit in the course of his commercial practices.

 

Article 6.887. No longer effective from 1 April 2011.


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Article 6.887. No longer effective from 1 April 2011.

 

Article 6.888. No longer effective from 1 April 2011.

 

Article 6.889. No longer effective from 1 April 2011.

 

Article 6.890. No longer effective from 1 April 2011.

 

Article 6.891. No longer effective from 1 April 2011.

 


CHAPTER XLIV

BANK DEPOSIT

 


Article 6.892. Concept of a bank deposit agreement


1. Under a bank deposit agreement (the deposit), one party (a bank or any other credit institution) shall undertake to accept from the other party (the depositor) or, having received the amount of money (deposit) transferred to the other party, shall undertake to return such deposit and pay interest on it under the terms and procedure established in the agreement.


2. When the depositor is a natural person, the bank deposit agreement shall be deemed a public contract.


3. The relations between the bank or any other credit institution and the depositor, who has an account in which the deposit has been entered, shall be governed by the provisions of Chapter XLVI of this Book regulating the bank account agreement, unless the rules of the present Chapter provide otherwise and this is not contrary to the essence of the bank deposit agreement.


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Article 6.893. Right to accept deposits


1. The right to accept deposits shall be vested only in the banks or any other credit institutions having the permit (licence) issued for such activity in accordance with the procedure prescribed by laws.


2. If the deposit was accepted by a person not entitled to do so or if the deposit was accepted in violation of the operational rules of the banks, the depositor shall have the right to demand immediate repayment to him of all the paid amounts, the interest determined by laws and damages to the extent not covered by the interest.


3. Unless the law provides otherwise, the legal consequences set forth in paragraph 2 of this Article shall also apply when:


1) the monetary funds are collected from the sale of shares or other securities the issue whereof is recognised as unlawful;


2) the monetary funds are collected from the issue of bills of exchange or other securities and their holders are not granted the right to receive the monetary funds on first demand.   

 


Article 6.894. Form of a bank deposit agreement


1. The bank deposit agreement must be made in writing.


2. The depositor’s book, the deposit certificate or any other document issued by a bank or any other credit institution, which complies with the operational rules of  banks or other credit institutions, shall be recognised as a written form of the agreement.


3. If the written form is not observed, the bank deposit agreement shall be null and void.


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Article 6.895. Types of deposits


1. The bank deposit agreement may include the obligation of the bank or any other credit institution to pay the deposit on first demand (demand deposit) or the obligation of the bank or any other credit institution to pay the deposit after the lapse of a certain term (fixed-term deposit).


2. The legal acts regulating the activities of the banks or any other credit institutions and the parties by agreement may also provide for other types of deposits.


3. Notwithstanding the type of the deposit, the bank or any other credit institution must pay the deposit in full or in part on the first demand of the depositor. The provision of the agreement stipulating the depositor’s waiver of the right to withdraw the deposit on first demand, with the exception of irrevocable fixed-term deposits, shall be null and void.


4. The irrevocable fixed-term deposit shall not grant the depositor the right to withdraw the deposit or part thereof before the expiry of the term specified in the agreement, except in the cases specified in Article 6.8951 of this Code.  Prior to the conclusion of the irrevocable fixed-term deposit agreement, the bank or other credit institution must inform the depositor about the peculiarities of the irrevocable fixed-term deposit, the differences from other proposed deposits, and the conditions for the conclusion, renewal and termination of the fixed-term deposit agreement.  The obligation to prove that this information has been provided to the depositor shall be borne by the bank or any other credit institution.


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5. In case when the deposit is paid to the depositor before the maturity of the term established in the agreement or prior to the occurrence of other circumstances set forth therein (except for demand deposits), the interest shall be paid in the amount corresponding to the interest on the demand deposits, unless otherwise established in the agreement.


6. If the depositor does not demand payment of the fixed-term or irrevocable fixed-term deposit after the expiry of its term, or other circumstances specified in the contract arise, the agreement shall be deemed renewed on the conditions of the demand deposit, unless otherwise established in the agreement. The depositor must express his consent to the bank or other credit institution for the renewal of each agreement on the conditions of the irrevocable fixed-term deposit at least fourteen days and not more than sixty days before the expiry of the term of the irrevocable fixed-term deposit. The obligation to prove the receipt of the depositor’s consent shall be borne by the bank or any other credit institution.


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Article 6.8951. Termination of the irrevocable fixed-term deposit agreement

In extraordinary circumstances (loss of work, serious illness, death of the depositor, his spouse, child or other close relative, or other important circumstances provided for in the contract), or in other cases with the consent of the bank or any other credit institution, the depositor, who is a consumer, shall have the right to terminate the irrevocable fixed-term deposit agreement or withdraw part of the deposit before the expiry of the term. In all such cases, the bank or other credit institution must pay out all or part of the deposit on demand by the depositor, without any additional costs arising to the depositor from the termination of the agreement.


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Article 6.896. Interest


1. The bank or any other credit institution shall pay to the depositor the interest in the amount established in the agreement.


2. The amount of the interest may be differentiated according to the type of deposit.  It shall be prohibited to set the amount of the interest based on the depositor’s personal, official or other characteristics which are not related to the amount, type or term of the deposit.


3. Where the amount of the interest is not specified in the agreement, the bank or any other credit institution shall pay an average interest rate which existed on the day of conclusion of the agreement in the place of conclusion thereof.


4. Unless the agreement provides otherwise, the bank or any other credit institution shall be entitled to unilaterally change the amount of the interest paid for the demand deposits. If the bank or any other credit institution reduces the amount of the interest, the new interest rate shall apply in respect of the deposits paid prior to notification of the depositors about the reduction of the amount of the interest only after the lapse of one month from such notification, unless otherwise established in the agreement.


5. The bank or any other credit institution shall have no right to unilaterally reduce the amount of contractual interest paid on irrevocable fixed-term deposits.  The bank or any other credit institution shall have no right to unilaterally reduce the interest payable on other deposits (except demand deposits), unless otherwise specified by the agreement.


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Article 6.897. Calculation and payment of interest


1. Calculation of the interest on deposits shall commence from the day following the day of acceptance of the deposit and shall be calculated until the day preceding the day when the deposit is paid or written off from the account on other grounds.


2. Unless the agreement provides otherwise, the interest shall be paid to the depositor upon his demand, after the expiry of the quarter, separately from the amount of the deposit. The deposit shall be increased by the amount of the unpaid interest and the interest shall be calculated on the increased amount.


3. The deposit shall be paid together with the interest accrued until that moment.

 


Article 6.898. Guarantees for the return of deposits.


1. The bank and any other credit institution shall secure the return of deposits in accordance with the established procedure by compulsory insurance thereof and, in cases determined by laws, by other means.


2. When entering into the bank deposit agreement, the bank or any other credit institution must furnish to the depositor the information about the guarantees for the return of the deposit.


3. If the bank or any other credit institution fails to perform its obligation to secure the return of the deposit, as well as in case of loss or worsening of the guarantees, the depositor shall have the right to demand from the bank or any other credit institution immediate return of the deposit, payment of the interest and compensation for the loss.


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Article 6.899. Right of third persons to pay money into the depositor’s account

Third persons shall have the right to pay money into the depositor’s account unless otherwise established in the agreement. In such event, the bank or any other credit institution must transfer all the amounts received on behalf of the depositor into the depositor’s account.  In such cases, it shall be presumed that the depositor has agreed to accept the amounts of money from third persons and has provided them with the necessary details of his deposit account.


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Article 6.900. Deposits for the benefit of third persons


1. A deposit may be made in the bank or any other credit institution for the benefit of a third person. Unless the agreement provides otherwise, such third person shall acquire the depositor’s rights from the moment of his first demand to the bank or any other credit institution or from the moment of any other expression of his intention to exercise the depositor’s rights.


2. The essential condition of the bank deposit agreement for the benefit of a third person shall be the name and surname or the title of the third person.


3. The bank deposit agreement for the benefit of the third person who died prior to the moment of conclusion of the agreement or did not exist at the moment of conclusion thereof shall be null and void.


4. A person who has entered into the bank deposit agreement for the benefit of a third person shall have the right to exercise the depositor’s rights only until the moment when the third person states his intention to exercise the depositor’s rights.


5. The provisions regulating the agreement for the benefit of a third person, shall apply to the deposit agreement of the bank or any other credit institution only to the extent they do not contravene the rules established in this Article and the essence of the bank deposit agreement.


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Article 6.901. Depositor’s book


1. Unless the agreement provides otherwise, the bank deposit agreement shall be documented in the form of the depositor’s book. The depositor’s book may only be issued in the depositor’s name.


2. The depositor’s book must specify the name of the bank or any other credit institution, their address, e-delivery box address and other details, the depositor, the amount of the deposit, all terms and conditions of the agreement, as well as the accounting of the amounts of money paid into and from the account, and the computed and paid interest.


3. All operations in respect of the deposit shall be performed only upon submission of the depositor’s book.


4. If the book is lost or unfit for use, it shall be replaced in accordance with the procedure determined by the bank or any other credit institution.

 


Article 6.902. Deposit certificate


1. The deposit certificate shall be a security certifying the amount of the deposit and the depositor’s rights to the deposit, as well as the interest upon expiration of the term prescribed for the deposit.


2. The deposit certificate may only be issued in the depositor’s name.

 


CHAPTER XLV

FACTORING


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CHAPTER XLV

FACTORING

 


Article 6.903. Concept of a factoring agreement


1. Under a factoring agreement, one party (the factor) shall transfer or undertake to transfer to the other party (the client) the money in exchange for the monetary claim of the client (the creditor), related to the sale of goods, performance of works or provision of services, against a third person (the debtor), and the client shall assign or undertake to assign to the factor the monetary claim against the debtor (financing on condition that the monetary claim is assigned) and to pay the remuneration set forth in the agreement.


2. The client may assign the monetary claim against the debtor to the factor also with a view to securing the performance of his obligations to the factor.


3. The factoring agreement may establish the factor’s obligation to handle the client’s bookkeeping, provide to the client financial services related to the monetary claims which are the subject matter of the assignment.


4. The factoring agreement may be long-term or executed in respect of each individual case.

 


Article 6.904. Factor

Under a factoring agreement, the factor may be only a bank or any other profit-seeking legal person entitled to perform factoring activities in accordance with the procedure prescribed by laws.


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Article 6.905. Subject matter of a factoring agreement


1. The subject matter of a factoring agreement in respect of which the financing is provided may be a monetary claim under which the payment term has matured (the existing claim) and a future right to receive the amounts of money (the future claim).


2. The monetary claim which is the subject matter of the factoring agreement must be defined in the agreement concluded between the factor and the client in such a way that the existing claim can be identified at the moment of conclusion of the factoring agreement and the future claim can be identified no later than at the moment when it arises.


3. By the assignment of the future monetary claim, it shall be recognised that such claim has passed to the factor upon arising of the right to claim from the debtor the amounts of money established in the agreement. If the assignment of the monetary claim is related to a certain event, the assignment shall be recognised as having occurred upon the occurrence of such event. In such cases, no additional formalisation of the assignment of the monetary claim shall be required.


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Article 6.906. Client’s liability towards the factor


1. Unless the factoring agreement provides otherwise, the client shall be liable towards the factor for the validity of the assigned monetary claim which is the subject matter of the agreement.


2. The monetary claim to be assigned shall be valid if the client has the right to assign such claim and the circumstances due to which the debtor would have the right not to satisfy the claim are unknown at the moment of the assignment.


3. If the factor demands the satisfaction of the monetary claim assigned to him and the debtor fails to satisfy it or satisfies it improperly, the client shall not be liable for such actions of the debtor, unless otherwise established in the agreement.

 


Article 6.907. Invalidity of the prohibition to assign the monetary claim


1. The assignment of the monetary claim to the factor shall be also valid in cases when the agreement made between the client and the debtor prohibits or limits such action.


2. The rule established in paragraph 1 of this Article shall not release the client from the obligations and liability towards the debtor for the breach of the condition of the agreement which prohibits or limits the assignment of the claim.

 


Article 6.908. Subsequent assignment of the monetary claim


1. Unless the factoring agreement provides otherwise, the factor shall have no right to further assign the monetary claim assigned to him.


2. If the factoring agreement permits a subsequent assignment, such assignment shall accordingly be subject to the provisions of this Chapter.


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Article 6.909. Performance of the monetary claim


1. The debtor must pay the amounts of money to the factor if the debtor has received from the client or the factor a written notification about the assignment of the monetary claim to the factor and the notification specifies the monetary claim and the factor to whom the obligation is to be performed.


2. At the debtor’s request, the factor must provide him with evidence of the assignment of the monetary claim within a reasonable time. If the factor fails to perform this obligation, the debtor shall be entitled to perform the obligation to the client.


3. The performance of the monetary claim to the factor in accordance with the rules set forth in this Article shall release the debtor from the performance of an appropriate obligation to the client.


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Article 6.910. Factor’s rights to the amounts of money received from the debtor


1. If the financing of the client under the factoring agreement manifests itself in the purchase of the monetary claim from the client, the factor, having purchased such claim, shall acquire the right to all the amounts received from the debtor when the latter performs the demand and the client shall be liable towards the factor if the latter receives less from the debtor than he has paid to the client for the purchased claim, unless otherwise established in the agreement.   


2. If the client has assigned the monetary claim to the factor in order to secure the performance of his obligations to the factor, the factor shall submit to the client a report and transfer to him the amount in excess of the debt of the client secured in this way, unless otherwise established in the agreement. If the factor receives from the debtor a smaller amount than the client’s secured debt, the client shall be liable towards the factor for the remaining uncovered part of the debt.

 


Article 6.911. Cross claims of the debtor


1. When the factor makes a claim against the debtor for the payment of money, the debtor shall be entitled to set off his cross monetary claims, arising from the agreement between the debtor and the client, provided that the debtor already had such claims at the moment of receipt of notification of the assignment of the claim to the factor.


2. The debtor may not use for his defence against the factor the claims which the debtor could have bought against the client due to the client’s breach of the prohibition to assign the monetary claim.


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Article 6.912 Repayment to the debtor of the debts received by the factor


1. When the client breaches the agreement concluded with the debtor, the debtor shall have no right to demand from the factor the repayment of the amounts the latter has already received if the debtor is entitled to receive such amounts directly from the client.


2. The debtor who is entitled to recover the amounts paid to the factor directly from the client shall have the right to demand from the factor the repayment of such amounts if the debtor proves that the factor has not paid the amount set forth in the factoring agreement to the client or has paid it in the knowledge that the client did not fulfil his obligation to the debtor.

 


CHAPTER XLVI

BANK ACCOUNT


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CHAPTER XLVI

BANK ACCOUNT

 


Article 6.913. Concept of a bank account agreement


1. Under a bank account agreement, the bank shall undertake to accept and credit the money into the account opened by the client (the owner of the account), follow the client’s instructions concerning the transfer and payment of certain amounts from the account, as well as to carry out any other operations performed by the bank, and the client shall undertake to pay the bank for the services and operations effected.


2. The bank may dispose of the funds in the client’s account provided that it secures the client’s right to freely dispose of such funds.


3. The bank shall have no right to determine and control the use of the money by the client or impose any other limitations of the client’s right to dispose of the funds in the account at his own discretion, except as provided for by law or the bank account agreement.


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Article 6.914. Conclusion of a bank account agreement


1. Upon the conclusion of a bank account agreement, a bank account shall be opened with the bank for the client or his indicated person subject to the terms and conditions provided for in the agreement.


2. The bank must conclude a bank account agreement with the client who makes an application to open such account, subject to the terms and conditions declared by the bank for opening of a certain type of account, which must comply with the requirements set by laws and legal acts governing the activities of banks.


3. The bank shall have no right to refuse to open an account if the possibility for its opening is set forth in the law, operational documents of the bank or the licence issued to the bank, except for the cases when such refusal is permitted by laws.


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Article 6.915. Approval of the right to dispose of the funds in the account


1. The rights of the persons entitled to dispose, in the name of the client, of the funds in the account shall be approved by law or any other legal act and the documents stipulated in the bank account agreement, which must be submitted to the bank in the accordance with the established procedure.


2. The client shall have the right to instruct the bank to withdraw funds from the account at the request of third persons. Such instructions shall be accepted by the bank if the client specifies in writing the necessary details allowing to identify the person who has the right to withdraw the funds from the account.


3. The bank account agreement may provide that the right to dispose of the funds in the account shall be confirmed by electronic means of payment using a person’s signature, code, password or other data confirming that the instruction was given by the person entitled to do so.

 


Article 6.916. Operations performed by the bank

The bank must perform all operations to the client which are established for an appropriate type of accounts by the law, other legal acts governing the activities of the bank as well as banking customs, unless otherwise established in the bank account agreement.


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Article 6.917. Time limits for performance of operations


1. The bank must credit to the client’s account the funds not later than on the day following the day on which it received an appropriate payment document, unless the bank account agreement provides for a different time limit.


2. The bank must pay or transfer the funds upon the client’s instruction not later than on the day following the day on which it received an appropriate payment document, unless otherwise established in the bank account agreement.

 


Article 6.918. Crediting of the account


1. If the bank pays money from the client’s account in accordance with the bank account agreement, notwithstanding the fact whether or not there is any money in the account (crediting of the account), it shall be deemed that the bank grants to the client a credit of an appropriate amount from the day of payment of the money.


2. The relations between the bank and the client in respect of the crediting of the account mutatis mutandis shall be governed by the provisions of Chapter XLIII of this Book, unless otherwise established in the bank account agreement.

 


Article 6.919. Fees for banking services and operations


1. The client shall pay for the services provided and operations performed by the bank under the terms and procedure stipulated in the bank account agreement.


2. The bank shall be entitled to write off from the client’s account, on quarterly basis, the amounts owed to the bank for the services provided to the client, unless otherwise established in the bank account agreement.


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Article 6.920. Interest for the use of the funds in the account

The bank shall pay to the client the interest set forth in the agreement for the use of the funds in the account, unless otherwise established in the bank account agreement. The interest shall be transferred to the client’s account within the established time limits, and if such time limits are not established, upon the expiration of each quarter.

 


Article 6.921. Set-off of mutual claims of the bank and the client


1. The monetary claims of the bank and the client related to the overdraft, payment for the banking services and payment of interest shall result in a set-off, unless otherwise established in the bank account agreement.


2. The set-off of the claims provided for in paragraph 1 of this Article shall be effected by the bank. The bank must notify the client about the effected set-off within the time limit established in the agreement, and, if such time limit is not established, within a reasonable time.

 


Article 6.922. Grounds for withdrawal of the funds from the account


1. The funds shall be withdrawn from the account upon the instruction of the client.


2. Without the client’s instruction, the funds may be withdrawn by the court judgment and in other cases determined by law or the bank account agreement.

 


Article 6.923. Order of sequence of withdrawal of the funds

The funds shall be withdrawn in the order of receipt of the client’s instructions and other documents (calendar order of sequence) unless otherwise specified by the law.


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Article 6.924. Liability of the bank for improper performance of operations

If the bank fails to credit the received funds into the client’s account on time or groundlessly withdraws them from the account, also if it does not follow the client’s instructions concerning the transfer or payment of the funds from the account, the bank must pay the client the interest set forth in the bank account agreement, and, if such interest is not established, the interest set forth in Article 6.210 of this Code.

 


Article 6.925. Bank secrecy


1. The bank must secure the confidentiality of the bank account, the deposit, all related operations and the client.


2. The information pertaining to bank secrecy may be disclosed only to the clients or their agents and, in the cases and under the procedure prescribed by laws, to the relevant state-level authorities, officials and other persons.


3. If the bank discloses the secret of the bank, the client shall be entitled to claim compensation from the bank for the damage incurred thereby.

 


Article 6.926. Limitations on the disposal of the account

It shall be prohibited to restrict the client’s possibility to dispose of the funds in the account, except for the cases when the funds in the account are seized or if the operations performed by the bank are suspended in the cases and under the procedure prescribed by laws.


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Article 6.927. Termination of the bank account agreement


1. The bank account agreement may be terminated at any time upon the application of the client.


2. At the request of the bank, the bank account agreement may be terminated where:


1) the amount of the funds in the client’s account decreases so that it is below the minimum amount established in the agreement, and the client does not increase it within one month from the day of the notification sent by the bank;


2) for more than one year, the client’s account contains no monetary funds  and no operations have been performed with the client’s account, and the bank account agreement does not establish otherwise.


3. Where the conditions for the termination of the bank account agreement referred to in point 2 of paragraph 2 of this Article are fulfilled, the bank account agreement may be terminated also in the case of a registered seizure of the monetary funds held in the account or other restrictions on the disposal of such funds. Upon termination of the bank account agreement by the bank, the seizure of  monetary funds or other restrictions on the disposal thereof shall cease to be valid and shall be deregistered in accordance with the procedure laid down in the Law of the Republic of Lithuania on the Register of Property Seizure Acts.


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4. The balance of the funds in the account shall be released to the client or transferred upon the client’s instruction to any other account not later than within five working days from the day of receipt of an appropriate written application of the client. If the client has given no instruction to transfer the funds to any other account, the bank shall transfer the funds to the internal accounts of the bank.


5. The termination of the bank account agreement shall be the ground for closing of the account. The bank account agreement shall be valid until the closing of the account.


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Article 6.928. Bank accounts

The provisions of this Chapter shall apply respectively to the correspondent accounts or other accounts of banks, unless otherwise established by laws or the legal acts regulating banking activities.

 


CHAPTER XLVII

SETTLEMENTS OF ACCOUNTS

 


SECTION ONE

GENERAL PROVISIONS

 


Article 6.929. Settlement in cash and non-cash


1. Settlements involving natural persons who are not engaged in economic and commercial activities may be effected in cash, without limitation of the amount, or in non-cash.


2. Settlements between legal persons, as well as settlements involving natural persons who are engaged in economic and commercial activities, shall be effected in non-cash, and in the cases and under the procedure prescribed by laws, also in cash.


3. Settlement in non-cash shall be effected through banks with which appropriate accounts are opened, unless otherwise established by law or unless limited by the settlement forms used.


4. Settlements by cheques and bills of exchange shall be accordingly regulated by the law on cheques and the law on bills of exchange.

 


Article 6.930. Means of settlements in non-cash


1. Settlements in non-cash shall be effected using payment orders, letters of credit, cheques, bills of exchange, collection and other means of settlement established by laws.


2. The parties shall be entitled to choose and determine any means of mutual settlement established in paragraph 1 of this Article.


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Article 6.9301.  Order of priority of settlements in cash and non-cash


1. The debtor, as a natural or legal person who does not have sufficient funds to satisfy all claims made, must effect settlements in the following order of priority: 


1) first in line, settlements according to enforceable documents regarding the compensation for damage caused by injury or death, and recovery of maintenance;


2) second in line, settlements according to enforceable documents regarding the payments arising from employment and copyright agreements;


3) third in line, settlements according to payment documents regarding contributions to the budget (state, municipal, State Social Insurance Fund and Compulsory Health Insurance Fund) and state monetary funds;


4) fourth in line, settlements according to enforceable documents to satisfy other monetary claims;


5) fifth in line, settlements according to other payment documents in the calendar order of priority.


2. Settlement of claims in the same line shall be effected in the calendar order of receipt of payment documents.


3. The order of priority of settlements in enforcement proceedings, bankruptcy, restructuring and other cases provided for by laws shall be established by other laws.

 


SECTION TWO

SETTLEMENTS BY PAYMENT ORDERS


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SECTION TWO

SETTLEMENTS BY PAYMENT ORDERS

 


Article 6.931. GENERAL PROVISIONS


1. When making settlements by payment orders, the bank shall undertake, subject to the payer’s instruction, to transfer the indicated amount from the payer’s account to any other account specified by the payer with the same bank or any other bank, within the time limits established by laws or in accordance with the procedure prescribed by laws, unless the bank account agreement or the operational rules of the bank provide for shorter time limits.


2. The rules of this Section shall also apply to the settlements when the bank transfers the funds upon the instruction of the person who has no account with the same bank, unless otherwise established by laws or the operational rules of the bank.


3. Settlements by payment orders shall be regulated by laws and the operational rules of banks.


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Article 6.932. Terms and conditions of performance of the payment order


1. The content and form of the payment order, as well as the content and form of the documents submitted along with the payment order must comply with the requirements set forth by the laws and operational rules of the bank.


2. Where the payment order fails to comply with the requirements specified in paragraph 1 of this Article, the bank may request to particularise the details of the payment order. Such request must be sent by the bank to the payer immediately upon the receipt of the payer’s order. If within the time limit established by laws or the operational rules of banks and, if no such time limit is established, within a reasonable time, the bank does not receive a reply to its request, the bank shall be entitled not to perform the payment order and return it to the payer, unless otherwise established by the law, operational rules of the bank or the agreement made between the bank and the payer.


3. The bank shall perform the payer’s order if there is money in the payer’s account, unless otherwise established in the agreement made between the bank and the payer. The payment orders shall be performed observing the order of priority of writing the funds off from the account established in Article 6.923 of this Code.


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Article 6.933. Performance of the order


1. The bank, having accepted a payment order, shall transfer the amount of money indicated in the order to the payee’s bank for crediting of such amount to the account of the person specified in the order within the time limit referred to in paragraph 1 of Article 6.931 of this Code.


2. The bank shall be entitled to use the services of other banks for the performance of operations related to the performance of the payment order.


3. The bank must immediately notify the payer at the latter’s request about the performance of the order. The content and form of such notification shall be established by the operational rules of the bank and the agreement made between the bank and the payer.

 


Article 6.934. Liability for failure to perform or improper performance of the payment order


1. The bank, having failed to perform or improperly performed the payment order, shall be liable under the general rules of the contractual civil liability.


2. If the failure to perform or improper performance of the payment order is due to the fault of any other bank whose services have been used for the performance of certain operations, the liability towards the payer shall lie with the bank which accepted the payment order, unless otherwise established by law or the agreement.


3. Where the bank unlawfully withholds the funds by reason of violation of the rules of settlement, the bank must pay the interest set forth in Article 6.210 of this Code.

 


SECTION THREE

LETTER OF CREDIT


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SECTION THREE

LETTER OF CREDIT

 


Article 6.935. GENERAL PROVISIONS


1. In case of settlement by letters of credit, the bank which has opened the letter of credit and acting at the request and instruction of the payer or in its own name (the issuing bank) shall undertake to pay the money to the payee or accept and pay the bill of exchange issued by the payee, or authorise any other bank (the executing bank) to pay the money to the payee or accept and pay upon maturity the bill of exchange, or authorises any other bank to buy the documents (negotiate) provided that the submitted documents comply with the conditions of the letter of credit.


2. When designating another bank as the executing bank, the issuing bank may authorise it to withdraw the total amount referred to in the documents of the letter of credit from its account with the executing bank or undertake to transfer, upon the request of the executing bank, to the account indicated by the latter, or authorise the executing bank to apply to any other indicated bank for the payment.


3. Settlements by letters of credit shall be regulated by laws and the operational rules of the bank.


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Article 6.936. Revocable letter of credit


1. The revocable letter of credit shall be a letter of credit that may be changed or annulled by the issuing bank without prior notice to the payee. The change or annulment of the letter of credit shall not give rise to any obligations on the part of the issuing bank towards the payee.  


2. The issuing bank or the confirming bank, if any, must compensate the executing bank under the revocable letter of credit if, prior to the annulment of the letter of credit or change of the conditions, the documents conforming to the conditions of the letter of credit were submitted to such bank.


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Article 6.937. Irrevocable letter of credit


1. The irrevocable letter of credit shall be a letter of credit that may not be changed or annulled without the consent of the issuing bank, the confirming bank, if any, and the payee.


2. At the request of the issuing bank, any other bank which performs the operations in respect of the letter of credit may confirm the irrevocable letter of credit (the confirmed letter of credit). Such confirmation shall mean that the confirming bank undertakes, in addition to the obligation of the issuing bank, to make the payment or other operations subject to the conditions of the letter of credit.


3. The irrevocable letter of credit, confirmed by the confirming bank, may not be changed or annulled without the consent of the confirming bank.


4. Unless explicitly specified in the letter of credit whether it is revocable or irrevocable, the letter of credit shall be deemed irrevocable.


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Article 6.938. Performance of the letter of credit


1. For the purposes of performance of the letter of credit, the payee shall submit to the issuing bank, the confirming bank, if any, or the executing bank the documents confirming that all the conditions of the letter of credit have been met.  In case of breach of at least one of these conditions, the letter of credit shall not be performed.


2. If the executing bank has made the payment or carried out any other operation subject to the conditions of the letter of credit, the issuing bank or the confirming bank, if any, must compensate all the expenses incurred by such bank. All the expenses related to the performance of the letter of credit shall be borne by the payer.

 


Article 6.939. Refusal to accept the documents


1. If the issuing bank or the confirming bank, if any, or the executing bank, which acts in their name, refuses to accept the documents which do not conform to the conditions of the letter of credit, such bank must immediately notify thereof, specifying the reasons for its refusal, the bank from which the documents were received, or the payee if the documents were received directly from him.


2. If the issuing bank or the confirming bank, if any, establishes that the documents fail to conform to the conditions of the letter of credit, the bank shall be entitled to refuse to accept such documents and demand from the executing bank the repayment of the amount paid to the payee in violation of the conditions of the letter of credit, together with the interest, or refuse to compensate the amounts paid.


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Article 6.940. Liability of the bank for violation of the conditions of the letter of credit


1. Liability towards the payer for the breach of the conditions of the letter of credit shall lie with the issuing bank, and towards the issuing bank, with the confirming bank, if any, and/or the executing bank, to the exclusion of exceptions set forth in this Article.


2. If the issuing bank or the confirming bank, if any, or the executing bank, which acts in their name, refuses, without due grounds, to pay the funds after the payee submits the documents conforming to the conditions of the letter of credit, it shall be liable towards the payee.


3. If the confirming bank, if any, and/or the executing bank improperly pays the funds under the letter of credit, in violation of the conditions of the letter of credit, the liability towards the payer shall lie with the confirming bank, if any, and/or the executing bank, unless otherwise established in the agreement between the payer and the issuing bank. 

 


Article 6.941. Closing of the letter of credit

The letter of credit shall be closed:


1) upon expiration of the term of the letter of credit;


2) upon annulment of the letter of credit by the issuing bank;


3) upon payment by the bank of the amount established in the letter of credit to the payee or performance of other operations prior to expiration of its validity term.

 


SECTION FOUR

COLLECTION


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SECTION FOUR

COLLECTION

 


Article 6.942 GENERAL PROVISIONS


1. Collection shall mean operations performed by the bank (the instructing bank) with the documents upon the client’s order, with the purpose to receive the payment and/or the payment acceptance or issue documents, upon receipt of the payment and/or the payment acceptance or under other conditions.


2. The instructing bank, upon receipt of the client’s order, may use the services of any other bank (the collecting bank) for the performance of such order.


3. Liability for non-execution or improper execution of the client’s order shall lie with the instructing bank, unless otherwise established in the agreement between the client and the bank.


4. Settlements by collection shall be regulated by laws and the operational rules of the bank.


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Article 6.943. Execution of the collection order


1. If the received collection instructions are incomplete or the bank cannot follow them for certain reasons, or if not all the documents specified in the collection order have been received, or if the documents fail to comply with the collection order, the collecting bank or the submitting bank shall immediately notify to that effect the party from whom the collection order was received. If the deficiencies reported by the bank are not eliminated or adjusted instructions are not received, the bank shall be entitled to return the documents and refuse to execute the order.


2. The documents shall be submitted to the payer in the form in which they were received, except the bank markings and records which are necessary for the performance of the collection operation. 


3. If the documents are to be paid upon their submission, the collecting bank must submit them for payment immediately after it receives the collection order.


4. If the documents are to be paid within a certain period of time, the collecting bank must submit the documents for the payer’s acceptance immediately after it receives the collection order, and must state its request for payment not later than within the payment time limit specified in the document.


5. Partial payments may be accepted only in the cases provided for by laws or the collection order.


6. The collecting bank must immediately transfer the received (collected) amounts to the instructing bank which shall credit them to the client’s account. The collecting bank shall be entitled to deduct from the collected amounts the fee due to such bank and the incurred expenses.


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Article 6.944. Notification on operations performed


1. Where the collecting bank does not receive the payment and/or the acceptance, it must immediately notify to that effect the instructing bank and specify the reasons for which the payment has not been received or its acceptance has been refused.


2. The instructing bank must immediately communicate the information received from the collecting bank to the client and request his instructions on further actions.


3. Having received no instructions from the instructing bank within the time limit set forth in the operational rules of the bank or the agreement or within a reasonable time, where such time limit is not set forth, the collecting bank shall be entitled to return all the documents to the instructing bank.

 


CHAPTER XLVIII

PUBLIC PROMISE OF REWARD


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Article 6.945. Obligation to pay reward


1. A person who has publicly promised to pay reward to a person who will perform a lawful action indicated in the announcement within the time limit specified in the announcement (find a lost thing, etc.), must pay the promised reward to any person who has performed the said action.


2. The obligation to pay reward shall be subject to the condition that the content of the public promise makes it possible to identify the person who makes such promise. The person who has responded to the public promise shall be entitled to request the promise to be confirmed in writing. If the person has not exercised such right, he shall bear the risk of adverse consequences if it subsequently transpires that the person who promised the reward was not the one indicated in the public announcement.


3. If the amount of reward is not specified in the public announcement, such amount shall be fixed by agreement of the parties, and in case of failure to reach such agreement, by a court judgment.


4. The obligation to pay reward shall arise notwithstanding whether the person who performed the action specified in the announcement did so due to the public promise of reward or not.


5. If the action specified in the announcement was performed by several persons, the right to reward shall be vested in the person who was the first to perform such action. When it is impossible to establish which person was the first to perform such action, or when several persons performed such action together, the reward shall be paid to such persons in equal parts, unless they agree otherwise.


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6. The compliance of the action performed with the conditions indicated in the announcement shall be determined by the person who publicly promised the reward unless otherwise established in the announcement. In case of a dispute between the persons, the dispute shall be resolved in court.


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Article 6.946. Revocation of the public promise to pay reward


1. The person who has publicly promised to pay reward shall be entitled to revoke it in the same way as it was made, except for the cases when:


1) the announcement itself contained the statement that it is irrevocable;


2) the promise is irrevocable in its essence;


3) a certain time limit has been set for the performance of the action indicated in the announcement;


4) one or several persons have already performed the action indicated in the announcement prior to its revocation.


2. The revocation of the public promise to pay reward shall not release the person who has announced such promise from the obligation to compensate for the damage incurred by the persons in preparation to perform the action indicated in the announcement. However, the amount of damages to be compensated may not exceed the amount of the promised reward.

 


CHAPTER XLIX

PUBLIC TENDER


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Article 6.947. Announcement of a public tender


1. A public promise of a person to pay a specific remuneration (award) for the best performance of a certain work or any other result (the announcement of a tender) shall obligate such person to pay the promised remuneration to the person whose work or any other result, according to the conditions of the tender, is recognised as the winner of the tender. A public promise of a person to grant a special right for the best project of the implementation of a certain right shall also be deemed a tender. Such public promise shall obligate the person to grant the special right to the person whose project, according to the conditions of the tender, is recognised as the winner of the tender.


2. The announced tender must specify the task, the term for the fulfilment of the task, the amount of remuneration (award) or the special right to be granted, the place of presentation of works or projects, the procedure and time of evaluation thereof, as well as any other conditions of the tender.


3. A public tender may be announced only in order to achieve a certain public or private goal, without prejudice to good morals or public order.


4. A public tender may be open, when the tender organiser’s offer to participate in such tender is addressed to all who wish to participate therein and is published in the press or other media, or closed, when the offer to participate in the tender is sent only to certain persons at the discretion of the organiser of the tender.


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5. The conditions of an open public tender may establish certain qualification requirements for tenderers if the organiser of the tender makes a preliminary selection of the persons who express their wish to participate in the tender.


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Article 6.948. Change of tender conditions or revocation of the tender


1. It shall be permitted to change tender conditions or revoke the tender only in the first half of the term set for the delivery of works.


2. Notification on the change of tender conditions must be given to the tenderers in accordance with the same procedure as the announcement of the tender.


3. Upon the change of tender conditions or revocation of the tender, the organiser of the tender must compensate the expenses incurred by each person who had performed the work stipulated in the tender conditions prior to the moment when he learnt or ought to have learnt about the change of the tender conditions or revocation of the tender.


4. The organiser of the tender shall be exempt from the compensation of the expenses stipulated in paragraph 3 of this Article if he proves that the work performed was not related to the tender (prior to the announcement of the tender) or does not conform to the tender conditions.


5. Where the change of tender conditions or revocation of the tender is in breach of the requirements set forth in paragraphs 1 and 2 of this Article, the organiser of the tender must pay the remuneration to the person who performed the work conforming to the tender conditions.


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Article 6.949. Decision to pay remuneration (award) or grant a special right


1. The decision to pay remuneration (award) or grant a special right must be adopted and communicated to the tenderers while announcing the established terms and procedure of the tender.


2. If two or more persons (co-authors, collective of performers) are recognised as the winner of the tender, the remuneration to them shall be apportioned in accordance with the procedure established by agreement of such persons, and in case of a dispute among them, the remuneration shall be apportioned by the court based on the contribution of each of such persons.


3. If one award is allotted for two or more persons, it shall be apportioned in accordance with the procedure established in the rules of the tender, and if the rules of the tender do not provide for such procedure, in equal parts unless otherwise agreed by the winners themselves.

 


Article 6.950. Use of works of science, literature, art and architecture awarded under a tender

If the subject matter of a public tender was the creation of a work of science, literature, art or architecture, the person who has announced the public tender shall acquire the priority right to enter with the winner of the tender into an agreement on the use of the created work and payment of the relevant remuneration to the author of the work, unless the tender conditions provide otherwise.


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Article 6.951. Return of works or projects presented for tender to the tenderers

The person who has announced the public tender must return to the tenderers the works or projects for which no remuneration (award) is assigned or no right is granted, unless otherwise established while announcing the tender.

 


Article 6.952. Indemnification of tenderers in case of non-observance of the rules of the tender by the person who has announced the tender


1. If the person who has announced the tender does not observe the announced procedure or terms for the evaluation of the works or projects, the author of the presented work or project which complies with other requirements of the tender shall acquire the right to receive compensation for the damage incurred.


2. If the winner of the tender is not granted a special right(s), he must be compensated for damages.

 


CHAPTER L

TRUST OF PROPERTY

 


Article 6.953. Concept of a property trust agreement


1. Under a property trust agreement, one party (the trustor) shall assign to the other party (the trustee) its property by the right of trust for a certain period of time, and the other party shall undertake to possess, use and dispose of such property in the interests of the trustor or his designated person (the beneficiary).


2. The assignment of property to any other person by the right of trust shall not change the ownership right to the property.  The trustor shall remain the owner of the assigned property.


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Article 6.954. Content of the right of trust of property


1. The content of the right of trust of property shall be established in Article 4.106 of this Code.


2. The law or agreement may impose limitations on the rights of the trustee to possess, use or dispose of the property.

 


Article 6.955. Conclusion of transactions


1. The trustee shall conclude, in his own name, the transactions related to the property assigned to him by the right of trust, but he must indicate that he is acting by the right of trust of property.  The fact of the right of trust must be disclosed in the form established for the transaction to be concluded.


2. If the trustee fails to perform the obligation referred to in paragraph 1 of this Article, he shall be liable towards third persons by his property.

 


Article 6.956. Objects of the right of trust


1. The objects of the right of trust may be movable and immovable things, securities or any other property.


2. The state or municipal property which is possessed, used or disposed of by a state or municipal enterprise, institution or organisation by the right of trust may not be assigned to any other person by the right of trust, except for the cases when such enterprise, institution or organisation is liquidated or reorganised, as well as other cases provided for by law.

 


Article 6.957. Founder of the right of trust (trustor)

The founder of the right of trust (trustor) may be the owner of the property or any other person established by law who is vested with such right.


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Article 6.958. Trustee


1. The trustee may be a natural or legal person.  


2. The law may specify the persons who are not entitled to be trustees.


3. The trustee may not be the sole beneficiary under a property trust agreement.

 


Article 6.959. Essential conditions of a property trust agreement


1. A property trust agreement must specify the following:


1) the property assigned by the right of trust;


2) the trustor, the trustee and, if the agreement is made for the benefit of a third person (the beneficiary), the beneficiary;


3) the remuneration of the trustee and the procedure for its payment if the remuneration is set fort in the agreement;


4) the validity term of the agreement.


2. A property trust agreement may be concluded for the term not exceeding twenty years.  The law may also establish longer maximum terms for the validity of the agreement.


3. If, upon the expiration of the validity term of the agreement, neither party states its wish to terminate the agreement, the agreement shall be deemed extended under the same conditions for a new term of the same duration.


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Article 6.960. Form of a property trust agreement


1. A property trust agreement must be made in writing.


2. The immovable property trust agreement must be in the notarial form. It may be used against third persons only after it has been registered in the public register in accordance with the procedure prescribed by laws.   


3. Failure to comply with the requirements set in respect of the form of the agreement shall render the trust agreement null and void.

 


Article 6.961. Separation of property


1. The property assigned to the trustee by the right of trust must be separated from the property of the trustor and the trustee. The trustee must draw up and keep the accounting (the balance-sheet) of the property assigned to him and must open a separate bank account for settlements.


2. It shall be prohibited to recover from the property assigned by the right of trust subject to the actions brought by the creditors of the trustor, except for the cases when bankruptcy proceedings are instituted against the trustor or the trustor becomes insolvent. Upon the institution of bankruptcy proceedings against the trustor or his becoming insolvent, the right of trust of property shall expire and the property must be returned to the trustor.


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Article 6.962. Assignment of the mortgaged (pledged) property by the right of trust


1. The assignment of the mortgaged (pledged) property to any other person by the right of trust shall not deprive the mortgagee (pledgee) of the right to recover from such property.


2. The trustee must be informed that the property assigned to him is mortgaged (pledged). If the trustee was not aware or could not have been aware of the mortgage (pledge) of the property, he shall be entitled to demand the termination of the property trust agreement and the payment of remuneration due to him and compensation for the loss.


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Article 6.963. Rights and duties of the trustee


1. The trustee, complying with the law and agreement, shall exercise the owner’s rights in respect of the property assigned to him by the right of trust.


2. All the rights acquired by the trustee in exercising the owner’s rights shall be an integral part of the property assigned to him. The obligations arising in the course of the activities carried out by the trustee shall be fulfilled using the property assigned to him.


3. The trustee shall be entitled to protect the right of trust in the same ways that are used to protect the right of possession and ownership.


4. The trustee must submit a report on his activities to the trustor and the beneficiary in accordance with the procedure and time limit established in the agreement. If the time limit for the submission of the report is not provided, the report must be submitted once a year.  The owner shall have the right to control the trustee’s activities at any time.


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Article 6.964. Duty to perform the agreement personally


1. The trustee must personally possess, use and dispose of the property assigned to him, to the exclusion of exceptions established in paragraph 2 of this Article.


2. The trustee shall be entitled to authorise any other person to perform certain actions required in respect of possession of the property provided that this is stipulated in the agreement or a prior written consent to that effect has been received from the trustor, or if it is necessary in order to protect the interests of the trustor or the beneficiary and it was not possible to receive the consent from the trustor within a reasonable time.


3. The trustee shall be liable for the actions of the person authorised by him to perform such actions, as if it were the actions of the trustee himself.


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Article 6.965. Trustee’s liability


1. The trustee who has failed to take due care of the property assigned to him and the interests of the trustor and the beneficiary must indemnify the beneficiary or the trustor for the damage incurred due to the loss or damage of the property, as well as the loss of income.


2. The trustee shall be exempted from compensation for the damage if he proves that the loss has been incurred due to force majeure or the actions of the trustor or the beneficiary.


3. Where the trustee enters into a transaction in excess of the powers granted to him or in violation of limitations established in the agreement, he shall be personally liable under such transaction. If third persons were not aware and could not have been aware of the excess of powers or violation of limitations, this shall result in the legal consequences set forth in paragraph 4 of this Article. In such case, the trustor shall be entitled to claim from the trustee compensation for damage.


4. The debts under obligations which accrued during possession, use and disposal of property by the right of trust shall be covered from the entrusted property. If such property is not sufficient, the recovery shall be made from the trustee’s property, and, when the latter property is not sufficient, from any other property of the trustor.

 


Article 6.966. Remuneration for the trustee

The trustee shall be entitled to the remuneration set in the agreement and reimbursement of the necessary expenses from the proceeds from the property assigned to him, unless otherwise established in the agreement.


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Article 6.967. Expiration of the property trust agreement


1. The property trust agreement shall expire in the following cases:


1) when the beneficiary dies or is liquidated, unless otherwise established in the agreement;


2) when the beneficiary waives the benefit received under the agreement, unless otherwise established in the agreement;


3) when the trustee dies, is recognised legally incapable in this area or of limited legal capacity in this area, missing, or is liquidated;


4) when bankruptcy proceedings are instituted against the trustor;


5) when the trustor or the trustee waives the agreement because the trustee is not in a position to perform the agreement personally;


6) when the trustor waives the agreement on any other grounds and pays the trustee the remuneration established in the agreement and compensates the necessary expenses incurred by virtue of termination of the agreement.


2. Any party that wishes to waive the agreement must give the other party a six-month prior written notice to that effect, unless the agreement establishes any other time limit.


3. Upon the expiration of the property trust agreement, the trustee must return the property to the trustor, unless otherwise established in the agreement.

 


Article 6.968. Peculiarities of the right of trust of property

Laws may establish certain peculiarities of the right of trust of property when the trustee is a state or municipal enterprise, institution or organisation, also when the right of trust of property arises on grounds other than under the agreement.

 


CHAPTER LI

JOINT ACTIVITIES (PARTNERSHIP)


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CHAPTER LI

JOINT ACTIVITIES (PARTNERSHIP)

 


Article 6.969. Concept of an agreement on joint activities (partnership)


1. By an agreement on joint activities (partnership), two or more persons (the partners), by cooperating their property, work or knowledge, shall undertake to act jointly for a certain goal or certain activities which do not contravene the law.


2. No longer effective from 1 September 2012.


3. Where the goal of joint activities is not related to the seeking of profit, the agreement on joint activities shall be referred to as the association agreement.


4. An agreement on joint activities (partnership) must be made in writing and, in the cases prescribed by the law, in the notarial form. Failure to comply with the requirements set in respect of the form of the agreement shall render the agreement null and void.

 


Article 6.970. Contributions of the partners


1. A contribution of a partner shall be deemed everything such partner contributes to the joint activities, i.e. money, any other assets, professional or any other knowledge, skills, reputation and business relations.


2. It shall be presumed that the contributions of the partners are equal unless otherwise established in the agreement on joint activities.  The contribution shall be valued in cash by agreement of all partners.


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Article 6.971. Co-ownership of the partners


1. The property contributed by the partners, which was previously in their ownership, as well as the production, income and fruits resulting from joint activities, shall be partial co-ownership of all the partners, unless otherwise established by law or the agreement on joint activities.


2. If the contributed property previously was not the ownership of a partner, and the partner uses such property on any other grounds, this property shall be used in the interests of all the partners and shall also be deemed the property which is jointly used by all the partners, unless otherwise established by the law. 


3. One of the partners appointed by joint agreement of all the partners shall be in charge of the accounting of the joint property.


4. The joint property shall be used, possessed and disposed of by joint agreement of all the partners. In case of a dispute, at the request of any of the partners, the procedure shall be established by the court.


5. The obligations of the partners related to the maintenance of the joint property, and the coverage of any other expenses, shall be established in the agreement on joint activities.


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Article 6.972. Management of joint affairs


1. In managing joint affairs, each of the partners shall be entitled to act on behalf of all the partners, unless the agreement on joint activities provides that joint affairs are managed by one of the partners or all the partners together. If the affairs can be managed only by all the partners together, the conclusion of each transaction shall require the approval by all the partners.


2. In case of relations with the third persons, the right of a partner to conclude transactions on behalf of all the partners shall be approved by the power of attorney issued by the remaining partners or the agreement on joint activities.


3. In case of relations with the third persons, the partners may not rely on limitations of the rights of the partner who has concluded the transaction to act on behalf of all the partners, except for the cases where they prove that, at the time of conclusion of the transaction, the third person knew or ought to have known about such limitations.


4. A partner who has concluded the transaction on behalf of all the partners in excess of the powers granted to him, or who has concluded the transaction in his own name in the interests of all the partners, shall be entitled to claim from the other partners the indemnification of the loss incurred if he proves that such transactions were necessary in order to protect the interests of the other partners. The partners who have incurred damage by virtue of such transactions shall be entitled to claim from the partner who has concluded such transactions compensation for such damage.


5. The decisions related to joint affairs of the partners shall be adopted by joint agreement of the partners, unless otherwise established in the agreement on joint activities.


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Article 6.973. Right of the partners to information

Each partner shall be entitled to have access to the documents concerning the management of joint affairs, notwithstanding whether or not he is authorised to manage the joint affairs. Any agreements imposing limitations on, or cancelling, the above-mentioned right shall be null and void.

 


Article 6.974. Joint expenses and joint damages 


1. The distribution of joint expenses and joint damages related to the joint activities shall be established in the agreement on joint activities. In the absence of such agreement, each partner shall be liable for the joint expenses and joint damages in proportion to the amount of his part of such expenses or damages.


2. The agreement which fully releases one of the partners from the coverage of the joint expenses or joint loss shall be null and void.

 


Article 6.975. Liability of partners under joint obligations


1. If the agreement on joint activities is not related to the economic and commercial activities of the partners, each partner shall be liable under joint contractual obligations to the extent of all his property in proportion to his part of such obligations.


2. Under the joint non-contractual obligations, the partners shall be solidarily liable.


3. If the agreement on joint activities is related to the economic and commercial activities of the partners, all the partners shall be solidarily liable under the joint obligations, notwithstanding the ground for appearance of such obligations.


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Article 6.976. Distribution of profit


1. The profit, obtained from the joint activities shall be distributed among the partners in proportion to the value of the contribution of each of them into the joint activities, unless otherwise established in the agreement on joint activities.


2. The agreement to exclude any of the partners while distributing the profit shall be null and void.

 


Article 6.977. Separation of the interest of a partner

The creditors of a partner shall be entitled to claim the separation of the partner’s interest from the joint property pursuant to the rules established in Book Four of this Code.


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Article 6.978. Expiry of the agreement on joint activities


1. The agreement on joint activities shall expire:


1) when one of the partners is recognised as legally incapable, of limited legal capacity or missing, unless the agreement on joint activities or later arrangement of the remaining partners establishes to retain the agreement on joint activities among the remaining partners, except for the cases when the agreement on joint activities is valid without the above mentioned partner;


2) when bankruptcy proceedings are instituted against one of the partners, to the exclusion of exceptions established in point 1 of this paragraph;


3) in case of death or liquidation or reorganisation of one of the partners, unless the agreement on joint activities or later arrangement of the remaining partners establishes to retain the agreement on joint activities among the remaining partners or substitute the deceased or liquidated or reorganised partner with his legal successors;


4) when one of the partners refuses to continue as a participant of the open-ended agreement on joint activities, to the exclusion of exceptions established in point 1 of this paragraph;


5) when the fixed-term agreement on joint activities is terminated at the request of one of the partners, to the exclusion of exceptions established in point 1 of this paragraph;


6) upon the expiry of the term of the agreement on joint activities;


7) upon separation of the interest of one of the partners from the joint property at the request of his creditors, to the exclusion of exceptions established in point 1 of this paragraph;


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2. Upon the expiry of the agreement on joint activities, the things assigned for the joint use by all the partners shall be gratuitously returned to the partners who have assigned them, unless otherwise agreed by the parties.


3. From the moment of expiry of the agreement on joint activities, its participants shall be solidarily liable towards the third persons for the outstanding joint obligations.


4. The property which is the joint ownership of the partners after the expiry of the agreement on joint activities shall be distributed in accordance with the rules established in Book Four of this Code.


5. The partner who has contributed a distinctive thing shall be entitled to demand, after the expiry of the agreement on joint activities, to return him the thing unless the interests of other partners and creditors are infringed by such return.


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Article 6.979. Waiver of the open-ended agreement on joint activities


1. The partner who wishes to withdraw from the open-ended agreement on joint activities must notify to that effect the other partners at least three months prior to the intended withdrawal, unless otherwise established by laws or the agreement.


2. Agreements imposing the limitations on the right of the partners to waive the open-ended agreement on joint activities or cancelling such right shall be null and void.

 


Article 6.980. Termination of the agreement on joint activities at the request of one of the partners


1. One of the partners shall be entitled to terminate the agreement concluded with other partners, which is fixed-term or made for a certain goal, if:


1) other partners are in material breach under such agreement;


2) the partner who wishes to terminate the agreement is no longer able to perform the agreement for important reasons.


2. The partner who has terminated the agreement must indemnify the other partners for the direct damages incurred by virtue of such termination.


3. Upon the termination of the agreement by one of the partners, the agreement shall remain in force in respect of the other partners, to the exclusion of the exceptions established in point 1 of paragraph 1 of Article 6.978 of this Code.


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Article 6.981. Liability of the partner who has terminated the agreement on joint activities

If the agreement on joint activities is terminated upon refusal of one of the partners to be a participant of the agreement, or at the request of one of the partners, the person who is no longer a participant of the agreement on joint activities shall be liable to third persons under the obligations which appeared while he was a participant of the agreement on joint activities as if he were a partner.

 


Article 6.982. Undeclared partnership


1. The agreement on joint activities may stipulate that a partner(s) may not be avowed to third persons (undeclared partnership). Such agreement shall be governed by the rules of this Chapter, to the exclusion of the exceptions established in the agreement and this Article.


2. In case of relations with the third persons, each of the undeclared partners shall be liable to the extent of all his property under all the transactions he has concluded in his own name in the interests of all the partners.


3. All the obligations arising among the partners during their joint activities shall be partial.

 


CHAPTER LII

PEACEFUL SETTLEMENT AGREEMENT


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CHAPTER LII

PEACEFUL SETTLEMENT AGREEMENT

 


Article 6.983. Concept of a peaceful settlement agreement


1. By a peaceful settlement agreement, the parties shall resolve, by means of mutual concessions, an existing judicial dispute, preclude a judicial dispute in the future, resolve an issue of enforcement of the court judgment or any other disputed issues.


2. The obligation of the parties arising from the peaceful settlement agreement in respect of its subject matter shall be deemed indivisible.


3. The peaceful settlement agreement must be made in writing. Failure to comply with this requirement shall render the agreement null and void.

 


Article 6.984. Cases when the peaceful settlement agreement is invalid

The peaceful settlement agreement regarding the legal status or legal capacity of persons, regarding the matters regulated by the mandatory rules of law, as well as regarding the matters related to public order, shall be invalid.

 


Article 6.985. Effect of the peaceful settlement agreement


1. The peaceful settlement agreement, upon approval by the court, shall have the effect of the final judgment (res judicata) on its parties.


2. The peaceful settlement agreement, upon approval by the court, shall be an enforceable document.


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Article 6.986. Recognition of the peaceful settlement agreement as void


1. The peaceful settlement agreement may be recognised as null and void due to essential inequality of its parties (Article 6.228 of this Code), as well as on other grounds of invalidity of transactions.


2. If the peaceful settlement agreement is made based on the transaction which was not in force at the time of making of the peaceful settlement agreement, such peaceful settlement agreement shall be null and void.


3. If the peaceful settlement agreement is made based on written documents which later appear as counterfeit, such peaceful settlement agreement shall be null and void.


4. The peaceful settlement agreement shall be null and void if, at the moment of making of the peaceful settlement agreement, one or both parties did not know that the issue, which is the subject matter of the peaceful settlement agreement, had already been resolved by a final court judgment.


5. The peaceful settlement agreement shall be null and void if, after its conclusion, documents emerge confirming that one of the parties to the peaceful settlement agreement is not or was not entitled to what it has been granted by the peaceful settlement agreement.


6. The error of the parties in respect of the rules of law, except for the mandatory rules of law, shall not be the ground for recognising the peaceful settlement agreement as void.

 


CHAPTER LIII

INSURANCE


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CHAPTER LIII

INSURANCE

 


Article 6.987. Concept of an insurance agreement

Under an insurance agreement, one party (the insurer) shall undertake to pay, subject to the insurance contribution (premium) established in the agreement, to the other party (the policyholder) or the third person for whose benefit the agreement has been made, the insurance benefit established in the insurance agreement to be calculated in accordance with the procedure prescribed in the insurance agreement, if an insured event set forth in the law or the insurance agreement occurs.

 


Article 6.988. Forms and branches of insurance


1. Insurance may be compulsory and voluntary.


2. The branches of insurance shall be life and non-life insurance.


3. The types and conditions of compulsory insurance as well as the branches of insurance and the interests of insurance shall be governed by other laws.


4. Only the interests protected by laws may be insured.

 


Article 6.989. Form of an insurance agreement


1. The insurance agreement must be made in writing.


2. The insurance agreement shall be approved by the insurance certificate (policy).


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Article 6.990. Procedure for conclusion of an insurance agreement


1. The insurance agreement shall be concluded when the insurer accepts the proposal (application) of the policyholder submitted to the insurer, or when the policyholder accepts the insurer’s proposal to enter into the agreement. In the cases determined by the rules of the type of insurance, the application of the policyholder must be made in writing. In such case, the form and content of the written application shall be determined by the insurer.


2. The policyholder shall be liable for the accuracy of the data submitted in the proposal (application). Upon the conclusion of the insurance agreement, the written application by the policyholder shall become an integral part of the insurance agreement.


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Article 6.991. Insurance certificate (policy)


1. The insurance certificate (policy) must contain the following:


1) the number of the insurance certificate (policy);


2) the name of the insurer, the address of its registered office and e-delivery box;


3) the name, surname or title of the policyholder, the insured person or the beneficiary;


4) the group of insurance and the name and number of the rules of a certain type of insurance;


5) the object of insurance;


6) the sum insured, except for the cases when the specific sum insured is not established;


7) the insurance premium and the terms for its payment;


8) the type of insurance;


9) the validity term of the insurance agreement;


10) the record that the policyholder has been informed of the rules of the type of insurance and has received a copy thereof;


11) the signature of the person authorised by the insurer to conclude the insurance agreement and the stamp of the insurer when the incorporation documents of the insurer establish the ensurer’s obligation to hold a stamp, or facsimiles thereof;


12) the date of issue of the insurance certificate (policy).


2. The procedure for the registration and protection of the insurance certificates (policies) shall be established by laws.


3. If the insurance certificate (policy) fails to conform to the content of the written application by the policyholder, and the agreement was made by accepting the application of the policyholder to enter into such agreement, the written application of the policyholder shall prevail.


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Article 6.992. Conclusion of the insurance agreement according to standard conditions


1. If the insurance agreement is concluded according to the rules of the type of insurance drafted in the procedure prescribed by laws, the insurance agreement shall accordingly be governed by Articles 6.185 to 6.187 of this Code.


2. The insurer must provide public access to the rules of the type of insurance and, prior to the conclusion of the insurance agreement, provide the policyholder with their copies.


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Article 6.993. Obligation to disclose information


1. Prior to the conclusion of the insurance agreement, the policyholder must provide to the insurer all the available information about the circumstances which can have material effect on the probability of occurrence of the insured event and the amount of potential loss in respect of such event (insurance risk), if the insurer does not know and should not know of such circumstances. 


2. Material circumstances about which the policyholder must inform the insurer shall be deemed the circumstances indicated in the standard conditions of the insurance agreement (rules of the type of insurance), as well as the circumstances on which the insurer has requested the policyholder in writing to provide information.


3. If the policyholder fails to provide a reply to the written inquiry by the insurer about certain circumstances, and the insurer, notwithstanding this fact, has entered into the insurance agreement, the insurer shall lose the right to claim the termination of the insurance agreement or recognise it as null and void on the basis of the failure by the policyholder to provide the information.


4. If, after the conclusion of the insurance agreement, it is established that the policyholder has furnished to the insurer knowingly misleading information about the circumstances stipulated in paragraph 1 of this Article, the insurer shall be entitled to request that the insurance agreement be declared null and void, except for the cases when the circumstances which have been concealed by the policyholder disappeared prior to the insured event or had no effect on the insured event.


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5. If, after the conclusion of the insurance agreement, it is established that the policyholder has failed, through negligence, to submit the information stipulated in paragraph 1 of this Article, the insurer must, not later than within two months from becoming aware of such circumstances, propose to the policyholder to change the insurance agreement. If the policyholder refuses to do so and does not respond to the submitted proposal within one month (and, in the case of life insurance, within two months), the insurer shall be entitled to request termination of the insurance agreement.


6. If the policyholder has failed, through negligence, to provide the information stipulated in paragraph 1 of this Article, the insurer, upon the occurrence of the insured event, must pay a part of the insurance benefit to be paid to the policyholder subject to the fulfilment of the obligation provided for in paragraph 1 of this Article, proportionate to the ratio between the agreed insurance premium and the insurance premium which would have been established for the policyholder if the latter had fulfilled the obligation stipulated in paragraph 1 of this Article.


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7. If the insurer, being aware of the circumstances which have not been reported by the policyholder through negligence, had not concluded the insurance agreement, the insurer, within two months from his becoming aware that the policyholder has not submitted, through negligence, the information stipulated in paragraph 1 of this Article, shall be entitled to request termination of the insurance agreement.  Upon the occurrence of the insured event, the insurer shall be entitled to refuse to pay the insurance benefit only if he proves that no insurer, being aware of the circumstances which have not been indicated by the policyholder through negligence, would have concluded the insurance agreement.


8. During the conclusion and within the validity term of the insurance agreement, the insurer must provide the policyholder with the following information: the name of the insurer, the type of the insurance company, its address and e-delivery box address, the address of the insurer’s division or the insurer’s representative (if the insurance agreement is concluded in any other place than the insurer’s registered office), the procedure for settlement of disputes arising from or related to the insurance agreement, the response of the insurer when the policyholder breaches the conditions of the insurance agreement, possible cases of increase of insurance risk, as well as other information referred to in the legal acts regulating insurance activities.


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Article 6.994. Right of the insurer to assess the insurance risk


1. Prior to the conclusion of the insurance agreement, the insurer shall be entitled to inspect the property to be insured, and, if necessary, to order, at his own expense, an expert examination for determination of its value.


2. If the insurance interest is related to the life and health of a natural person, the insurer shall be entitled to demand from the policyholder documents confirming the age, state of health, and profession of the policyholder/insured person and other circumstances relevant for the insurance risk.

 


Article 6.995. Confidentiality of information

The insurer shall have no right to disclose information, obtained in the course of his insurance activities, about the policyholder, the insured person or the beneficiary, their health and property status, as well as other confidential information established in the insurance agreement, to the exclusion of exceptions stipulated by laws. The insurer, having breached such obligation, must indemnify the policyholder, the insured person or the beneficiary for the pecuniary and non-pecuniary damage.


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Article 6.996. Entry into force of the insurance agreement


1. The insurance agreement, unless it provides otherwise, shall enter into force from the moment of payment by the policyholder of the full insurance contribution (premium) or the first instalment thereof.


2. If the policyholder fails to pay the insurance contribution (premium) stipulated in paragraph 1 of this Article, the insurance agreement shall terminate, unless otherwise established in the agreement.


3. Insurance shall apply to all insured events occurring after the entry into force of the insurance agreement, unless otherwise established in the agreement. If the insurance agreement establishes the application of insurance also to the insured events which occurred prior to the entry into force of the insurance agreement, such condition shall be valid if the parties to the insurance agreement were not aware of the insured event which occurred prior to the entry into force of the insurance agreement.

 


Article 6.997. Sum insured


1. The amount of insurance of property interests and the amount of the insurance benefit (the sum ensured) the insurer undertakes to pay shall be established by agreement of the parties to the insurance agreement or by the law.


2. In case of non-life insurance, to the exclusion of exceptions provided for by laws, the sum insured may not exceed the actual value of the property insured or the property risk (the value of insurance).


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Article 6.998. Contesting the sum insured

The sum insured indicated in the insurance agreement may not be contested after the conclusion of the agreement, except for the cases when the insurer, having failed to exercise his right to assess the risk of insurance, was defrauded due to indication of the knowingly misleading value of insurance or an arithmetic or spelling mistake.

 


Article 6.999. Partial insurance


1. Where the sum insured established in the non-life insurance agreement, except for cases provided for by laws, is lower than the value of insurance, upon the occurrence of the insured event, the insurer must indemnify the policyholder (beneficiary) a part of the damages incurred, proportionate to the ratio between the sum insured and the value of insurance.


2. The insurance agreement may also provide for a higher insurance benefit, but not exceeding the value of insurance.

 


Article 6.1000. Additional insurance

If only a portion of the value of property or risk (insurance) is insured in the non-life insurance agreement, except for cases stipulated by laws, the policyholder (beneficiary) shall be entitled to additionally insure them by entering into an additional insurance agreement with the same or any other insurer. However, in such cases, the total sum insured under all insurance agreements may not exceed the value of insurance.


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Article 6.1001. Legal consequences of the insurance which exceeds the value of insurance


1. If the sum insured, specified in the insurance agreement, exceeds the value of insurance, the insurance agreement shall be null and void in respect of the portion of the sum insured which exceeds the value of insurance. However, the paid insurance benefit which exceeds the value of insurance may not be recovered.


2. If the insurance contributions (premiums) are paid periodically and, upon the establishment of the circumstances stipulated in paragraph 1 of this Article, the insurance contribution (premium) has not been fully paid, the remaining payable amount of the insurance contribution (premium) shall be reduced in proportion to the amount of the reduction of the sum insured.


3. If the sum insured is increased due to fraud on the part of the policyholder, the insurer shall be entitled to request that the insurance agreement be declared null and void and to claim compensation for the loss incurred to the extent such loss is not covered by the received insurance contribution (premium).


4. The rules of this Article shall also apply in the cases when the sum insured exceeds the value of the insurance for the same object under several insurance agreements with different insurers (double insurance). In such case, the insurance benefit to be paid by each of the insurers shall be reduced in proportion to the reduction of the sum insured under an appropriate insurance agreement.


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Article 6.1002. Insurance against various risks


1. The object of insurance may be insured against different risks by concluding one or several insurance agreements with the same or different insurers. In such case, the total sum insured under all insurance agreements shall be permitted to exceed the value of insurance.


2. If the obligation of the insurers to pay the insurance benefit for the same consequences of the same insured event is stipulated under several insurance agreements made pursuant to paragraph 1 of this Article, the consequences set forth in Article 6.1001 of this Code shall arise.

 


Article 6.1003. Co-insurance

The object of insurance may be insured under one insurance agreement jointly by several insurers (the co-insurance). Unless the insurance agreement provides for the rights and obligations of each of the insurers, all the insurers shall be jointly and severally liable towards the policyholder (beneficiary) for the payment of the insurance benefit.


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Article 6.1004. Insurance contribution (premium)


1. The policyholder (beneficiary) must pay for the insurance protection to the insurer, subject to the terms set forth in the agreement or law, the established amount or amounts of money (the insurance contribution (premium)).  


2. The insurance agreement may establish that the insurance contribution (premium) is to be paid at once or periodically within the time limits stipulated in the agreement. Where the insurance contribution (premium) is paid periodically, the insurance agreement may provide for legal consequences of the failure to make a regular contribution within the established time limit.


3. If the insured event occurs prior to the payment of the insurance contribution (premium) which is due, the insurer shall be entitled to set off the outstanding amount against the insurance benefit.

 


Article 6.1005. Substitution of the insured person

The policyholder shall be entitled to substitute the insured person with any other person only upon receipt of the written consent of the insurer, unless otherwise established in the insurance agreement.


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Article 6.1006. Substitution of the beneficiary


1. The policyholder shall be entitled to substitute the beneficiary indicated in the insurance agreement with any other person, to the exclusion of the exceptions stipulated in laws or the agreement, upon prior written notification to the insurer.


2. If the beneficiary has been appointed upon the consent of the insured person, the beneficiary may be substituted only upon the consent of the insured person.


3. The beneficiary may not be substituted with any other person if he has fulfilled any obligations under the insurance agreement or has made a claim against the insurer to pay the insurance benefit.

 


Article 6.1007. Performance of the insurance agreement where there are both the policyholder and the beneficiary


1. If the insurance agreement is concluded for the benefit of a third person (the beneficiary), the liability towards the insurer for the performance of the agreement shall lie with the policyholder, unless otherwise established in the insurance agreement.


2. The insurer shall be entitled to request that the insurance agreement be performed by the beneficiary if the policyholder has not performed the agreement and the beneficiary makes a claim against the insurer for payment of the insurance benefit.


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Article 6.1008. Substitution of the insurer


1. The insurer shall be entitled to assign its rights and obligations under the insurance agreement to any other insurer or insurers in accordance with the procedure prescribed by the insurance agreement, upon the receipt of the permission from the relevant state institution which exercises the supervision of insurance.


2. The insurer must give a two-month prior notification to the policyholder about its intention to assign its rights and duties, unless a longer term is provided for in the insurance agreement.

 


Article 6.1009. Termination of the insurance agreement before the expiry of the term


1. The insurance agreement may be terminated before the expiry of the term established therein if, after the entry into force of the agreement, the possibility for occurrence of the insured event or the insurance risk disappeared due to the circumstances which are not related to the insured event (the object of insurance perished for reasons not related to the insured event, etc.).


2. The policyholder shall be entitled to terminate the insurance agreement in any case.


3. If the insurance agreement is terminated on the grounds established in paragraph 1 of this Article, the insurer shall be entitled to the part of the insurance contribution (premium) which is proportionate to the validity term of the insurance agreement.


4. If the policyholder terminates the insurance agreement before the expiry of the term, the insurance contribution (premium) paid to the insurer shall not be refunded, unless otherwise established in the insurance agreement.


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Article 6.1010. Increase and decrease of the insurance risk


1. If, during the validity term of the insurance agreement, there is a material change in the circumstances stipulated in the insurance agreement, which increases or is likely to increase the insurance risk, the policyholder must notify the insurer to that effect immediately upon learning about such changes.


2. The insurer which has been notified about the increase of the insurance risk shall be entitled to request the change of the conditions of the insurance agreement or increase the insurance contribution (premium). If, in such case, the policyholder does not agree to change the conditions of the insurance agreement or to pay the increased insurance contribution (premium), the insurer shall be entitled to apply to court for termination or amendment of the insurance agreement upon a material change in the circumstances (Article 6.204 of this Code).


3. If the policyholder fails to fulfil the obligation stipulated in paragraph 1 of this Article, the insurer shall be entitled to request the termination of the agreement and to claim damages to the extent that they are not covered by the received insurance contribution (premium). However, the insurer shall have no right to request termination of the insurance agreement if the circumstances which could have led to an increase in the insurance risk have disappeared.


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4. If, during the period of validity of the insurance agreement, there is a material change in the circumstances established in the insurance agreement which decrease or may decrease the insurance risk, the policyholder shall be entitled to request the change of the conditions of the insurance agreement or the reduction of the insurance contribution (premium). If, in such case, the insurer does not agree to change the conditions of the insurance agreement or to pay the reduced insurance contribution (premium), the policyholder shall be entitled to apply to court for termination or amendment of the insurance agreement upon a material change in the circumstances (Article 6.204 of this Code).


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Article 6.1011. Change of the owner of the insured property


1. If the ownership right to the insured property passes from the person in whose interests the insurance agreement has been concluded to any other person, the rights and obligations under the insurance agreement shall pass to the new owner of the insured property, except for cases when the property from the original owner is taken in a compulsory procedure or the insurance agreement provides otherwise. 


2. The new owner of the property must immediately notify the insurer in writing about the assignment of the ownership right.

 


Article 6.1012. Obligation of the policyholder to notify about the insured event


1. Upon becoming aware of the insured event, the policyholder must notify the insurer or its representative to that effect within the time limit and in the manner stipulated in the agreement. The beneficiary shall be subject to the same obligation if he is aware of the insurance agreement concluded for his benefit and intends to exercise his right to the insurance benefit.


2. If the policyholder (beneficiary) fails to fulfil the obligation set forth in paragraph 1 of this Article, the insurer shall be entitled to refuse to pay the insurance benefit or reduce it in consideration of whether the policyholder has failed to fulfil his obligation intentionally or through negligence, except for the cases when it is proved that the policyholder became aware of the insured event in good time or when the failure to notify about the insured event has no effect on the insurer’s obligation to pay the insurance benefit.


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Article 6.1013. Obligation to take measures to mitigate the loss


1. Upon occurrence of the insured event, the policyholder must take reasonable measures available to him to mitigate the potential damage, following the insurer’s instructions provided that such instructions have been given to the policyholder.


2. The necessary expenses incurred by the policyholder while mitigating the damage or following the insurer’s instructions must be covered by the insurer, notwithstanding the fact that the measures in question have not produced a positive result. Such expenses shall be covered in proportion to the ratio between the sum insured and the value of insurance, notwithstanding the fact that the expenses, together with the amount of the loss, exceed the sum insured.


3. The insurer shall be released from compensation for damage if the damage was caused by the deliberate failure of the policyholder to take reasonable measures available to him to mitigate or prevent such damage.


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Article 6.1014. Release from payment of the insurance benefit


1. The insurer shall be released from payment of the insurance benefit if the insured event has occurred through a malicious act of the policyholder, the insured person, or the beneficiary, to the exclusion of the exceptions established in paragraphs 3 and 4 of this Article. The insurer must pay the insurance benefit if malicious acts or omission are socially valuable (indispensable defence, performance of a civil duty, etc.).


2. The law may determine cases in which the insurer is released from payment of the insurance benefit due to the fact that the insured event occurred through gross negligence on the part of the policyholder or the beneficiary.


3. The insurer shall not be released from payment of the insurance benefit under the civil liability insurance agreement if the damage to health or death has been caused through the fault of the person liable for such damage.


4. The insurer shall not be released from payment of the insurance benefit when such benefit is to be paid under the insurance agreement in case of the death of the insured, where the reason of the death was suicide, but the insurance agreement had been in force for more than three years.


5. Unless the insurance agreement provides otherwise, the insurer shall be released from payment of the insurance benefit also in the following cases:


1) if the insured event occurred due to the acts of war or impact of radioactive radiation;


2) if the damage was caused by confiscation, seizure or destruction of property following the instructions of the state-level authorities;


3) in other cases stipulated by law.


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3) in other cases stipulated by law.


6. The laws may also establish other cases of the release from payment of the insurance benefit.


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Article 6.1015. Assignment of the rights of the policyholder to compensation for damage onto the insurer (subrogation)


1. Unless the insurance agreement provides otherwise, the the right to claim the paid amounts from the person liable for the damage incurred shall pass over to the insurer who has paid the insurance benefit. If the damage was caused intentionally, the right of claim shall pass over to the insurer, notwithstanding the fact that subrogation is prohibited by the insurance agreement. Subrogation shall not apply in the case of insurance against accidents and illness, civil liability insurance, as well as in other cases prescribed by laws. 


2. Having passed over to the insurer, the right of claim shall be exercised in compliance with the rules establishing the relations between the policyholder (beneficiary) and the person liable for the damage.


3. The policyholder (beneficiary) must provide the insurer with all the information which is necessary for the insurer to duly exercise the assigned right of claim.


4. If the policyholder (beneficiary) has waived his right of claim or if it has become impossible to exercise such right through the fault of the policyholder (beneficiary), the insurer shall be released from payment of the insurance benefit, in whole or in part, and shall be entitled to request the refund of the benefit which had already been paid.


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Article 6.1016. Reinsurance


1. The insurer may, in whole or in part, insure the risk of payment of the insurance benefit by concluding reinsurance agreements with other insurers. In such case, the insurer under the original insurance agreement shall become the policyholder under the reinsurance agreement.


2. The reinsurance agreements mutatis mutandis shall be subject to the rules of this Chapter.


3. In case of reinsurance, the insurer under the original insurance agreement shall remain liable towards the policyholder for the payment of the insurance benefit.

 


Article 6.1017. Mutual insurance


1. Natural and legal persons may insure the property interests on a mutual basis by combining the funds necessary for such insurance in self-insurance societies.


2. The activities of self-insurance societies shall be regulated by laws.


3. The rules of this Chapter shall apply to mutual insurance to the extent that other laws do not provide otherwise.

 


Article 6.1018. Special branches and groups of insurance

The rules of this Chapter shall apply to branches and groups of insurance prescribed by law to the extent that other laws do not provide otherwise.

 

 

Annex to

the Civil Code

of the Republic of Lithuania

 

 


LEGAL ACTS OF THE EUROPEAN UNION IMPLEMENTED BY THIS LAW


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1. Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts, as last amended by Directive (EU) 2019/2161 of the European Parliament and of the Council of 27 November 2019.


2. Directive 98/6/EC of the European Parliament and of the Council of 16 February 1998 on consumer protection in the indication of the prices of products offered to consumers, as last amended by Directive (EU) 2019/2161 of the European Parliament and of the Council of 27 November 2019.


3. Directive 2008/122/EC of the European Parliament and of the Council of 14 January 2009 on the protection of consumers in respect of certain aspects of timeshare, long-term holiday product, resale and exchange contracts.


4. Directive 2011/83/EU of the European Parliament and of the Council of 25 October 2011 on consumer rights, amending Council Directive 93/13/EEC and Directive 1999/44/EC of the European Parliament and of the Council and repealing Council Directive 85/577/EEC and Directive  97/7/EC of the European Parliament and of the Council, as last amended by Directive (EU) 2019/2161 of the European Parliament and of the Council of 27 November 2019.


5. Directive (EU) 2015/2302 of the European Parliament and of the Council of 25 November 2015 on package travel and linked travel arrangements, amending Regulation (EC) No 2006/2004 and Directive 2011/83/EU of the European Parliament and of the Council and repealing Council Directive 90/314/EEC.


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6. Directive (EU) 2016/943 of the European Parliament and of the Council of 8 June 2016 on the protection of undisclosed know-how and business information (trade secrets) against their unlawful acquisition, use and disclosure.


7. Directive (EU) 2017/1132 of the European Parliament and of the Council of 14 June 2017 relating to certain aspects of company law.


8. Directive (EU) 2019/770 of the European Parliament and of the Council of 20 May 2019 on certain aspects concerning contracts for the supply of digital content and digital services.


9. Directive (EU) 2019/771 of the European Parliament and of the Council of 20 May 2019 on certain aspects concerning contracts for the sale of goods, amending Regulation (EU) 2017/2394 and Directive 2009/22/EC, and repealing Directive 1999/44/EC.


