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1. A person who intentionally or negligently, or in any other manner without any legal grounds acquires something that he could not and ought not to have acquired shall be obliged to return all that to the person on whose account it was acquired, except in cases provided for by this Code.


2. The same obligation shall arise where the grounds upon which the property is acquired become subsequently extinct, except in cases established in Article 6.241 of this Code.


3. The acquired property must be restituted in kind. Where the property has been lost or damaged, its fair value at the time of acquisition, as well as any losses caused by a subsequent change in the value of the property, must be compensated in cash. The acquirer of the property shall be liable towards the aggrieved person for any deterioration or shortage, including that of accidental character, of the property acquired that occurred after the acquirer became aware or should have become aware of the unjust enrichment, or the reception of a thing not due.  Until the moment indicated above, the acquirer of the property shall be liable only for his deeds performed intentionally or in gross negligence.


4. Where a person in good faith sells the property acquired in the manner indicated in paragraph 1 of this Article, he shall be bound to repay only the amount received for the property sold.


5. The provisions of this Chapter shall likewise apply with respect to the obligations the performance of which is not connected with a


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the property sold.


5. The provisions of this Chapter shall likewise apply with respect to the obligations the performance of which is not connected with a transference of property but only with a supply of appropriate services, as well as in cases where the claim is connected with the recovery of a thing from illegal possession, or the restitution of performance resulting from an invalid transaction, or the compensation for damage, or the repayments between the parties to an obligation, or with the supply of services to each other.


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Article 6.238. Right of a supposed debtor to demand the return of a debt unjustly paid

If a person mistakenly believing himself to be the debtor has paid the debt he was not bound to pay, he shall be entitled to demand the return of the paid sum from the person who received the payment. The aforesaid right shall become extinct where in consequence of the payment the person has destroyed the document proving the debt.  In this case, the supposed debtor may claim the paid sum from the actual debtor.

 


Article 6.239. Obligation to return property transferred to a third person gratuitously

Where a person who has received property not due gratuitously transfers it to a third person, the obligation to return such property shall pass on to the third person.


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1. A person who has received property without due legal grounds must return it and reimburse any income that he has received or should have received from this property from the time he became aware or should have become aware that the property he received was not due. An interest at the rate of five per cent per annum shall be payable for the sum of money received unduly. This interest shall be calculated from the moment when the person became aware or should have become aware of the reception or saving of the money not due.


2. If the recipient in good faith has accepted property not due by mistake, he shall in turn be entitled to claim reimbursement of the necessary expenses incurred by him in maintaining the unduly received property during the period indicated in paragraph 1 of this Article. Such recipient shall forfeit the right to claim reimbursement of the expenses if the person entitled to recover the property relinquishes that right and leaves the property to the person who has received it unjustifiably.


3. The person who has received property without due legal grounds and who has failed to ensure the maintenance of that property to the extent that a reasonable debtor would have ensured must reimburse for the decrease in the property that occurred after the recipient became aware or ought to have become aware that he was obliged to return the property.


4. Where the nature of the unduly received property is such that it cannot be returned, the value of what was received or performed at the time of the receipt or performance must be


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unduly received property is such that it cannot be returned, the value of what was received or performed at the time of the receipt or performance must be reimbursed if the recipient has been enriched, or if he has requested the performance thereof, or if he has consented to a counter-action.


5. Where a transaction is declared null and void, and the performance cannot be evaluated in monetary terms, or what has been received cannot be returned due to its nature, an action for repayment or compensation may not be satisfied if this would be contrary to the criteria of good faith, reasonableness and justice.


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Article 6.241. Property that cannot be recovered


1. The following property may not be recovered as received unduly:


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1. The following property may not be recovered as received unduly:


1) property transferred for the purposes of performance of an obligation prior to the expiry of the time limit allotted for the performance of that obligation unless the source of the obligation provides otherwise;


2) property transferred for the purposes of performance of an obligation after the expiry of the limitation period;


3) property transferred by a person who is aware of the absence of his duty to perform the obligation, or by a person who, even though not bound to perform the obligation, nevertheless makes the performance and where this was in accordance with good morals;


4) amounts unduly paid as compensation for damage resulting from bodily injury or death, as well as salary or wages or equivalent payments, also pensions and maintenance, provided that the recipient has acted in good faith or there has been no accounting error.


2. Where a person, without there being a legal ground to do so, accepts a sum of money that is assigned to a third person who has no right to receive it and delivers this sum to that third person, he shall be released from the obligation to repay the money if he proves that he did not know and ought not to have known that he was under an obligation to repay the money, and that he was unable to deliver that sum of money to the third person who had the right to receive it.


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Article 6.242. Unjust enrichment


1. A person in bad faith who has enriched himself without any legal grounds at the expense of another person must compensate the latter for damages to the extent of the unjust enrichment.


2. A reduction in the enrichment may be taken into consideration and the sum subject to repayment may be reduced accordingly if this reduction results from a cause which cannot be imputed to the unjustly enriched person.


3. Enrichment shall not be considered unjust and achieved in bad faith if it results from such performance of an obligation where the party to the obligation who has suffered loss is unable, through his own fault, to exercise his rights in such a way as to avoid the loss, and the other person has been enriched as a result of actions performed by the impoverished party exclusively in his own interests and at his own risk.

 


CHAPTER XXI

GAMBLING AND WAGERING


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CHAPTER XXI

GAMBLING AND WAGERING

 


Article 6.243. Effects of gambling and wagering


1. No obligations shall arise on the ground of gambling and wagering, except in cases established by laws. Claims relating to gambling and wagering shall not be defended in judiciary proceedings, except in cases established by laws.


2. In the events where games or wagers are prohibited by laws, no action may be brought by the benefited party (winner) claiming the agreed sum to be paid, likewise no recovery of the paid sum may be instituted by the losing party (loser).


3. The losing party (loser) shall have the right to recover what he has paid following the outcome of a game or wager where the loser is a minor or has been subjected to coercion, threat, deception or other unfair acts.


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1. Lottery or any other games based on risk and chance shall constitute a basis for obligations only if organised and carried out in accordance with the procedure established by laws.  Otherwise, Articles 6.237 and 6.242 of this Code shall apply to the claims arising from lottery and games.


2. Where lottery or other games are organised pursuant to the procedure established by laws, a contract between the organiser and the participant of a lottery or other game shall be considered concluded in the form of either a ticket of the lottery or game, or a receipt, or any other document indicated in the regulations for the organisation of the lottery or any other game. These regulations shall be approved by the organiser of the lottery or the game concerned. The regulations must contain information about the time of the lottery or other game, rules for determining the winner, the amount of the prize and the procedure of its payment. The regulations must be made publicly available.


3. Where the organiser of a lottery or any other game refuses to organise it at the established time, the participants of such lottery or other game shall have the right to claim from the organiser compensation for the actual losses incurred due to the cancellation of the lottery or other game or due to the postponement of the period of time allotted for the organisation of the lottery or other game.


4. The organiser shall be bound to pay to the persons who are acknowledged as winners in accordance with the regulations of the lottery


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game.


4. The organiser shall be bound to pay to the persons who are acknowledged as winners in accordance with the regulations of the lottery or other game the winnings in the amount and form (in money or in kind) established by the regulations. The winnings must be paid within the time limit established by the regulations and, where such time limit is not established, it must be paid within one month of determining the results of the lottery or other game. If the organiser of a lottery or other game fails to comply with this obligation, the winner shall have the right to demand from the organiser payment of the winnings and compensation of damages.


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1. Civil liability shall mean a pecuniary obligation one party to which has the right to claim compensation of damages (damage) or demand payment of the penalty (fine, default interest), and the other party is bound to compensate for damages (damage) arising therefrom, or pay the penalty (fine, default interest).


2. Civil liability shall be of two types: contractual liability and non-contractual (delictual) liability. 


3. Contractual liability shall mean a pecuniary obligation resulting from a failure to perform a contract or from its defective performance where one party to the obligation has the right to claim compensation of damages or demand payment of penalty (fine, default interest), and the other party is bound to compensate for damages, or to pay penalty (fine, default interest) caused by the failure to perform the contract, or by a defective performance thereof.


4. Non-contractual (delictual) liability shall mean a pecuniary obligation which is not related to contractual relations, except in cases where it is established by laws that delictual liability also results from damage related to contractual relations.


5. A creditor, before bringing claims for compensation of damages against a person who, in accordance with laws or the contract, is additionally liable together with another person (subsidiary liability), must bring a claim for damages against the principal debtor.  If the principal debtor refuses to compensate damages or if the


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person (subsidiary liability), must bring a claim for damages against the principal debtor.  If the principal debtor refuses to compensate damages or if the creditor does not receive a response to his claim from the debtor within a reasonable time, the creditor may bring a claim for damages against the debtor who is subsidiarily liable.


6. A creditor shall not be entitled to claim damages from the subsidiarily liable debtor where the creditor can satisfy his claim by the set-off of a counter-claim of the principal debtor.  Before compensating damages to the creditor, the subsidiarily liable debtor must accordingly notify the principle debtor. If an action for damages has been brought against the subsidiarily liable debtor, he must also involve the principal debtor to participate in the judicial proceedings. Otherwise, the principal debtor shall be entitled to invoke against the counter-claim of the subsidiary debtor all defences which he would have been entitled to invoke against the creditor.


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Article 6.246. Unlawful actions


1. Civil liability shall arise from non-performance of a duty established by laws or a contract (unlawful omission), or from performance of actions that are prohibited by laws or a contract (unlawful act), or from violation of the general duty to act with care.


2. It may be established by laws that damage must be compensated by a person who has not caused the damage himself but who is liable for the actions of the person who caused the damage (indirect civil liability).


3. Damage caused by lawful actions must be compensated only in cases specified by laws.

 


Article 6.247. Causation

The only damages to be compensated shall be those relating to actions (acts or omissions) giving rise to civil liability of the debtor in such a manner that the damages, taking into account their nature and that of the civil liability, can be imputed to the debtor as a result of his actions (acts or omissions).


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Article 6.248. Fault as a condition for civil liability


1. Civil liability shall arise only upon the existence of the fault of the obligated person, except in cases established by laws or a contract when civil liability arises without fault.  The fault of a debtor shall be presumed, except in cases established by laws.


2. Fault may be expressed by intention or negligence.


3. A person shall be deemed to be at fault where, having regard to the essence of the obligation and other circumstances, he failed to behave with the care and caution necessary under the conditions in question.


4. Where damage has also been caused through the fault of the creditor himself, the damages to be compensated shall be reduced proportionately to the degree of fault of the creditor, or the debtor may be released from civil liability.


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Article 6.249. Damage and damages


1. Damage shall include the loss of or damage to property sustained by a person and the expenses incurred (direct damages) as well as the incomes of which he has been deprived, i.e. the incomes he would have received if unlawful actions had not been committed. Damage expressed in monetary terms shall constitute damages. Where the amount of damages cannot be proved by the party with precision, it shall be determined by the court.


2. If the person who is liable towards another person has derived benefit from his unlawful actions, the benefit received may, upon the demand of the creditor, be attributed to damages.


3. The court may postpone the assessment of damage which has not yet occurred or assess future damage on the basis of the actual probability of its occurrence. In such cases, the court may adjudge either to pay a specific sum of money or to make periodic payments, or it may obligate the debtor to furnish security upon compensation for damage.


4. In addition to the direct damages and the incomes of which a creditor has been deprived, damages shall comprise:


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1) reasonable costs to prevent or mitigate damage;


2) reasonable costs incurred in assessing civil liability and damage;


3) reasonable costs incurred in the process of recovering damages within extrajudicial procedure.


5. Damage shall be assessed according to the prices valid on the day when the court judgment was passed unless the law or the nature of the obligation requires the application of prices that were valid on the day the damage arose or on the day when the action was brought.


6. In the event where one and the same action has created both damage and benefit for the aggrieved person, the benefit received may, without prejudice to the criteria of reasonableness, good faith and justice, be computed into damages to be repaired.


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Article 6.250. Non-pecuniary damage


1. Non-pecuniary damage shall be deemed to be a person’s physical pain, emotional suffering, inconveniences, mental shock, emotional depression, humiliation, deterioration of reputation, diminution of possibilities to associate with others, etc., evaluated by the court in terms of money.


2. Non-pecuniary damage shall be compensated only in cases provided for by laws.  Non-pecuniary damage shall be compensated in all cases where it is incurred due to crime, health impairment or deprivation of life, as well as in other cases provided for by laws. In determining the amount of non-pecuniary damage, the court shall take into consideration the consequences of such damage sustained, the gravity of the fault of the person by whom the damage is caused, his financial status, the amount of pecuniary damage sustained by the aggrieved person, also any other circumstances of importance for the case, likewise to the criteria of good faith, justice and reasonableness.


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Article 6.251. Compensation of damages in full


1. The damages incurred must be compensated in full, except in cases when limited liability is established by laws or a contract 


2. The court, having considered the nature of liability, the financial status of the parties and their interrelation, may reduce the amount of repairable damages if awarding full compensation would lead to unacceptable and grave consequences. However, the reduction may not be less than the amount for which the debtor has or ought to have covered his civil liability by compulsory insurance.

 


Article 6.252. Agreements between the parties upon exclusion or limitation of civil liability


1. An agreement between the parties upon exclusion of civil liability for damages (damage) sustained by the reason of the debtor’s intentional fault or gross negligence, as well as any agreement concerning the limitation of the amount of civil liability for damages sustained by the reasons indicated above shall be null and void. It shall be prohibited to exclude or limit civil liability for impairment of health, deprivation of life or non-pecuniary damage.


2. The mandatory legal rules establishing civil liability, as well as the form or amount thereof, may not be modified by an agreement between the parties.


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1. The grounds for non-application of civil liability or for exemption therefrom shall cover the following events which may, in whole or in part, release a person from civil liability: a superior force (force majeure), actions of the State, actions of a third party, actions of the aggrieved party, immediate necessity, indispensable defence and self-defence.


2. ‘Superior force’ means unavoidable events that cannot be controlled or escaped by the debtor, and which were not and could not have been foreseen (Article 6.212 of this Code).


3. ‘Actions of the State’ means binding and unforeseen actions (acts) of public authorities which render the performance of an obligation impossible and which could not be disputed by the parties.


4. ‘Activities of a third person’ means injurious actions (acts or omissions) committed by a person for whom neither the creditor nor the debtor is liable.


5. ‘Actions of the aggrieved person’ means actions committed through the fault of the aggrieved person himself and resulting in the appearance or increase of his damages.  Such actions may be expressed in the form of consent of the aggrieved person to suffer the damage or to assume the risk. This consent of the aggrieved person may be the grounds for exemption from civil liability only under condition that such consent and causing of damage is not contrary to the mandatory legal provisions,


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person may be the grounds for exemption from civil liability only under condition that such consent and causing of damage is not contrary to the mandatory legal provisions, public order, good morals, and the criteria of good faith, reasonableness and justice.


6. ‘Immediate necessity’ means the actions of a person by which he is compelled to cause damage in order to avert danger to himself, to other persons or to their rights, as well as to the interests of the society or the State by avoiding imminent occurrence of greater damage to the person who has already sustained damage or to any other person, providing that causing the damage in the concrete circumstances was the only way of avoiding greater damage. The court, taking into consideration the circumstances of the case and acting in accordance with the principles of good faith and justice, may obligate the damage to be compensated by the person in whose interests the injurious act was committed.


7. ‘Indispensable defence’ means the actions undertaken by a person with the purpose of defending himself or another person, property, inviolability of dwelling, other rights, interests of the society or the State against an initiated or imminent and direct unlawful dangerous assault, providing that such actions do not exceed the limits of indispensable defence.


8. ‘Self-defence’ means the actions of a person by which he lawfully enforces his right in the instances where competent authorities fail to provide timely assistance and where, in the absence of


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actions of a person by which he lawfully enforces his right in the instances where competent authorities fail to provide timely assistance and where, in the absence of self-defence measures, the implementation of that right would be rendered impossible or essentially obstructed. However, a person who employs self-defence unlawfully or without due cause must compensate the damage caused.  


9. Other grounds for exemption from civil liability or for the non-application thereof may be established by laws or agreements between the parties.


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Article 6.254. Civil liability insurance


1. In the instances provided for by laws or a contract, civil liability may be insured by concluding a contract of insurance against civil liability. Relationships connected with civil liability insurance shall be regulated by this Code and other laws.


2. Where the insurance benefit due to the insured person is not sufficient for the compensation of damage in whole, the difference between the insurance benefit and actual amount of damage shall be redressed by the insured person liable for the damage caused.


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Article 6.255. Preventive action


1. The grounds for bringing a preventive action shall be the emergence of real danger that damage may be inflicted in the future.  Preventive action shall be deemed to be the action intended to prohibit the exercise of actions likely to create real danger of the infliction of damage in the future.


2. Where the damage results from the operation of an undertaking or installation, or from any other economic or non-economic activities, and there is a real danger for a repeated arising of damage resulting from the same sources, the court may, upon the request of the plaintiff, charge the defendant with the obligation to suspend or terminate the activities indicated above. The court may refuse to satisfy the request upon the suspension or termination of such activities in the instances where the suspension or termination thereof would be contrary to public order.


3. The refusal of the court to satisfy the preventive action shall not exclude the right to claim compensation of damage caused by the activities upon termination or suspension of which the preventive action is dismissed.

 


SECTION TWO

CONTRACTUAL LIABILITY


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SECTION TWO

CONTRACTUAL LIABILITY

 


Article 6.256. Grounds for arising of contractual liability


1. Every person must perform his contractual obligations in a proper and timely manner.


2. Where a person fails to perform his contractual obligation or performs it defectively, he must pay compensation for damages caused to the other contracting party, and/or a penalty (fine, default interest).


3. Where the performance of a contract falls within professional activity of one of the parties, the party concerned must also perform the contract in accordance with the requirements applicable to that professional activity.


4. In the event of failure to perform or defective performance of a contractual obligation by an undertaking/trader, the undertaking/trader shall be liable in all cases if it/he fails to prove that the failure to perform or defective performance has resulted from a superior force unless otherwise provided for by laws or the contract. 

 


Article 6.257. Liability for actions of third persons

A debtor who engages the services of third persons in performance of his obligation shall be liable towards the creditor where non-performance of the obligation or defective performance thereof results from the fault of the third persons concerned unless the law or the contract provides for the liability of the direct executor.


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1. It may be provided for by laws or a contract that the party liable for failure to perform an obligation or defective performance thereof must pay a penalty (fine, default interest).


2. Where penalty is established, the creditor may not concurrently demand from the debtor the performance of the principal obligation and the payment of the sum stipulated in the penal clause (the penalty), except in the cases where the time limit for performance of the obligation is delayed by the debtor.  An agreement between the parties providing for any other stipulation shall be null and void. In the event of a claim for compensation of damages, the penalty shall be included in the damages.


3. The sum stipulated as a penalty (fine, default interest) may be reduced by the court if it is unreasonably excessive, or if the creditor has benefited from the partial performance of the obligation. However, this sum may not be reduced below the damages payable for the non-performance of the obligation or defective performance thereof. Penalty shall not be reduced once it has been paid.


4. The non-performing party (undertaking or trader) shall be liable only for the damages which he foresaw or could reasonably have foreseen at the time of the conclusion of the contract as being likely to result from the non-performance of obligation.


5. Where the party dissolves the contract on the grounds that the other party has violated it and and concludes, within a reasonable period of


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Where the party dissolves the contract on the grounds that the other party has violated it and and concludes, within a reasonable period of time, a contract replacing the dissolved contract, it shall be entitled to claim compensation from the party that has violated the contract for the difference in price and other subsequent losses.


6. Damages shall be calculated either in the currency in which the monetary obligation was expressed or in the currency in which the loss was suffered, whichever is more appropriate to the parties according to the circumstances of the case.


7. Unless otherwise provided for in the contract, interest on the damages for non-performance of an obligation shall be calculated from the moment of the non-performance.


8. The provisions of this Article shall not apply where this Code provides for other rules in respect to individual types of contracts.


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Article 6.259. Fault of the creditor


1. In the event of the non-performance of an obligation or defective performance thereof due to the fault of both parties, the liability of the debtor may be correspondingly reduced or the debtor may be fully relieved from liability.


2. The rule established in paragraph 1 of this Article shall also apply in the cases where the creditor, through his intentional fault or negligence, contributes to the failure in the performance of the obligation or to the increase of damages caused by its defective performance, likewise where the creditor, through his intentional fault or negligence, has failed to take measures to reduce the damages.


3. The rules established in this Article shall correspondingly apply in the cases where the liability of the debtor for the non-performance of the obligation or for its defective performance arises in accordance with laws or the contract irrespective of the existence of his fault.


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Article 6.260. Effects of a debtor’s default by the delay in performance of an obligation


1. A debtor shall be deemed to have delayed performance of an obligation where he fails to perform it within the time limit established for the performance of the obligation.


2. The debtor who has delayed performance of the obligation shall be liable towards the creditor for the damages caused by the delay in performance, as well as for the impossibility to perform the obligation which accidentally results from the delay.


3. The creditor shall have the right to refuse performance offered to him after the delay therein and may claim for damages caused by the delay in performance where the debtor’s default by delay in performance results in the creditor’s loss of interest in that performance.  


4. The debtor shall not be considered to be delayed in the performance as long as the obligation cannot be performed as a consequence of delay in the performance made by the creditor himself.

 


Article 6.261. Effects of a debtor’s default by delay in the performance of a monetary obligation

The debtor delayed in the performance of a monetary obligation must pay interest resulting from the contract or law, which is considered to be minimal damages.  In addition, where the creditor proves any other damages, he shall be entitled to the compensation thereof.


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Article 6.262. Effects of a creditor’s default by delay in the performance of an obligation


1. A creditor shall be considered to be delayed in performance if he refuses to accept the proper performance proposed by a debtor, or fails to perform the actions until the performance of which the debtor could not perform his obligations.


2. Where the creditor is delayed in performance, the debtor shall acquire the right to be compensated for damages caused by the delay unless the creditor proves that the time limit which has been set for the performance lapsed without the obligation having been performed not through the fault of the creditor himself nor through the fault of the persons obligated by laws or authorised by the creditor to accept the performance.


3. With regard to monetary obligations, the debtor shall not be obliged to pay interest (penalty) for the period of the creditor’s delay.

 


SECTION THREE

NON-CONTRACTUAL (DELICTUAL) LIABILITY


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SECTION THREE

NON-CONTRACTUAL (DELICTUAL) LIABILITY

 


Article 6.263. Obligation to compensate for damage caused


1. Every person shall have the duty to abide by the rules of conduct so as not to cause damage to another person by his actions (act or omission).


2. Any damage caused to a person or property and, in the cases established by the law, non-pecuniary damage must be fully compensated by the liable person.


3. In cases provided for by law, a person must compensate for the damage caused by the actions of another person or the damage caused by the things in his custody.

 


Article 6.264. Liability of an employer for damage caused by the fault of his employees


1. An employer must compensate for damage caused by the fault of his employees in the performance of their service (official) duties.


2. For the purposes of this Article, employees shall be considered to be persons carrying out work on the basis of an employment contract or a civil contract and acting on the instructions or under the control of the legal or natural person concerned.


3. Where, in cases established by laws, the employer and the employee are solidarily liable for damages, the employee shall be liable towards the employer exclusively in the event of intention or negligence on the part of the employee.


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Article 6.265. Liability for damage caused by others


1. Where damage is caused by a person, who is not an employee, acting on the instructions of another person who is not his employer, it must be compensated solidarily by both persons concerned.


2. A represented person and the representative executing his mandate shall be solidarily liable for the damage caused by the latter.

 


Article 6.266. Liability of the owner/possessor of construction works


1. If damage has been caused by the collapse of buildings, construction works, installations or other constructions, including roads, or by other defects therein, the owner/possessor of the indicated objects must compensate for the damage unless he proves the occurrence of the circumstances indicated in paragraph 1 of Article 6.270 of this Code.


2. It shall be presumed that the owner/possessor of buildings, construction works, installations or other constructions is the person indicated in the public register as their owner/possessor.


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Article 6.267. Liability for damage caused by animals


1. Damage caused either by domestic animals or wild animals that are in a person’s custody must be compensated by their owner/possessor unless he proves the occurrence of the circumstances indicated in paragraph 1 of Article 6.270 of this Code.  The person shall also be liable for the damage caused by animals that have escaped from him.


2. Damage caused by wild animals shall be compensated in accordance with the procedure established by laws.


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Article 6.268. Liability for damage caused by a natural person incapable of understanding the meaning of his actions


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1. A legally capable natural person who has inflicted damage being in such a state where he was incapable of understanding or controlling his actions shall not be liable for the damage caused.  However, the person shall not be exempted from liability if has brought himself into that state by the use of alcoholic drinks, narcotic or psychotropic substances, or in any other way.


2. In the event where damage has been caused to the health or life of a person, the court, having regard to the financial situation of the aggrieved person and the person who caused the damage, the criteria of good faith and reasonableness and other circumstances relevant to the case, may award compensation for the damage in whole or in part from the person who caused the damage.


3. The damage caused by a person declared to be of limited legal capacity in a certain area by reason of a mental or behavioural disorder shall be compensated under the ordinary procedure established for the compensation of damage.


4. Where damage has been caused by a person who by reason of his mental or behavioural disorder was incapable of understanding or controlling his actions, the court may obligate the person’s spouse who resides with him, his parents, or his children of full age to compensate for the damage, provided that they were aware of the mental state of the person concerned but failed to take any steps to have him declared to be of limited legal capacity in a certain area.


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Article 6.269. Damage caused by a person in indispensable defence or self-defence


1. A person who causes damage in legitimate exercise of self-defence or in defence of another person shall not be liable for damage suffered by the assailant.


2. In the event indicated in paragraph 1 of this Article, the aggrieved person may claim compensation for the damage from the person against whose unlawful actions defence was used, i. e. from the assailant.


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1. A person whose activities involve increased danger to the surrounding persons (operation of motor vehicles, machinery, use of electrical or nuclear energy, explosive or toxic substances, construction activities, etc.) must compensate for damage caused by the sources of increased danger, unless he proves that the damage was caused by superior force or by intent or gross negligence on the part of the aggrieved person.


2. The defendant under this Article shall be the possessor of the source of increased danger, i.e. the person who operates the source by the right of ownership or trust or on any other legitimate grounds (loan for use, lease, or any other contract, power of attorney, etc.).


3. The possessor of the source of increased danger shall not be liable for the damage caused if he proves that he has lost the ability to operate the source as a result of unlawful actions of other persons. In such event, the person or persons who unlawfully took possession of the source of increased danger shall be liable for the damage caused. Where the loss of operation of the source of increased danger results also from the fault of the possessor, the latter and the person who unlawfully took possession of the source of increased danger shall be solidarily liable for the damage. Upon having compensated for the damage, the possessor shall acquire the right of recourse for the recovery of sums paid against the person who unlawfully took possession of the source of increased danger.


4. In the event where damage


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recourse for the recovery of sums paid against the person who unlawfully took possession of the source of increased danger.


4. In the event where damage was caused to a third person by the interaction of several source of increased danger, the possessors of the sources concerned shall be solidarily liable for the damage caused.


5. The damage incurred by the possessors of sources of increased danger as a result of the interaction between the sources shall be compensated in accordance with the general provisions.


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Article 6.271. Liability for damage caused by unlawful actions of public authorities


1. Damage caused by unlawful acts of state-level authorities must be compensated by the State from the state budget, irrespective of the fault of a concrete civil servant or other employee of the state-level authority. Damage caused by unlawful acts of municipal-level authorities must be compensated by the municipality from its own budget, irrespective of the fault of its employees.


2. For the purposes of this Article, the term ‘authorities’ shall mean any entity of public law (state or municipal institution, official, civil servant or any other employee of these authorities, etc.), as well as a private person performing the functions of a public authority.


3. For the purposes of this Article, the term ‘act’ shall mean any action (action or omission) of a public authority or its employees which directly affects the rights, freedoms and interests of persons (legal acts or individual acts, administrative acts, physical acts, etc. adopted by state or municipal institutions, with the exception of court judgments – verdicts in criminal cases, decisions in civil and administrative cases and orders).


4. Civil liability of the State or a municipality under this Article shall arise where employees of public authorities fail to act in the manner prescribed by laws for these institutions and their employees.


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Article 6.272. Liability for damage caused by unlawful actions of pre-trial investigation officers, prosecutors, judges and the court


1. Damage resulting from unlawful conviction, or unlawful application of a pre-trial detention measure, as well as from unlawful detention, or unlawful use of procedural coercive measures, or unlawful imposition of an administrative penalty in the form of arrest shall be compensated by the State in full, irrespective of the fault of pre-trial investigation officers, officers of the prosecutor’s office or the court.


2. Damage resulting from unlawful actions of a judge or a court in civil proceedings shall be compensated by the State in full where the damage is caused by the fault of the judge or any other officer of the court.


3. In addition to pecuniary damage, non-pecuniary damage shall also be compensated.


4. Where the damage arises from intentional actions of pre-trial investigation officers, officers of the prosecutor’s office or the court or judges, the State, after the damage has been compensated, shall acquire the right of recourse against the officers concerned for recovery, within the procedure established by laws, of the sums in the amount provided for by laws.


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Article 6.273. Defendants in respect of the obligation of the State or municipality to compensate for damage


1. In cases concerning compensation for damage where the damage must be compensated by the State, the State shall be represented by the Government or an institution authorised by the Government.


2. In cases concerning compensation for damage where the damage must be compensated by a municipality, the municipality shall be represented by the municipal institution through the fault of which the damage has occurred.

 


Article 6.274. Liability for damage caused by immediate necessity

The court may, having regard to the circumstances in which the damage was caused, likewise other circumstances indicated in paragraph 6 of Article 6.253 of this Code, obligate the person in whose interests the person who caused the damage acted to redress the damage caused by immediate necessity.

 


Article 6.275. Liability for damage caused by minors under fourteen years of age


1. Parents or guardians of a minor under fourteen years of age shall be liable for damage caused by such a minor unless they prove that the damage was caused not through their fault.


2. An educational, training or health care institution, as well as a guardianship/curatorship institution shall be liable for damage caused by a minor under fourteen years of age under their supervision unless they prove that the damage was caused not through their fault.


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Article 6.276. Liability for damage caused by a minor between fourteen and eighteen years of age


1. Liability for damage caused by a minor between fourteen and eighteen years of age shall arise on the general grounds.


2. In cases where a minor between fourteen and eighteen years of age has no sufficient property or earnings to compensate for the damage caused by him, the respective part of the damage must be compensated by his parents or curator unless they prove that the damage was caused not through their fault. The same legal effects shall occur where a minor between fourteen and eighteen years of age was under the supervision of an educational, training or health care institution, or a guardianship/curatorship institution at the time when the damage was caused.  


3. The obligation of the persons indicated in paragraph 2 of this Article to compensate for the damage shall terminate when the person who caused the damage attains the age of majority or when he, before attaining majority, acquires the property or earnings sufficient for the compensation of damage.

 


Article 6.277. Civil liability of parents with restricted parental authority for damage caused by their minor children

Parents whose parental authority has been restricted due to their fault shall be liable for damage caused by their minor children on general grounds where the actions of their minor children result from the improper exercise of their parental authority, except in cases when a guardian or curator is appointed to the minor.


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Article 6.278. Liability for damage caused by a natural person declared legally incapable in a certain area


1. Where damage is caused by a natural person declared legally incapable in a certain area, compensation shall be due from the latter’s guardian or an institution charged with the custody of the person unless they prove that the damage was caused not through their fault.


2. The obligation of the guardian or a relevant institution to compensate for damage shall not terminate even if the person who caused the damage is declared legally capable after the injurious act was committed.


3. Where the guardian dies or has no sufficient funds to compensate for the damage caused to the health or life of a person, while the person who has caused the damage has sufficient funds, the court may, taking into consideration the financial situation of both the person who is legally incapable in a certain area and the aggrieved person, as well as other circumstances relevant to the case, order recovery from the property of the person legally incapable in a certain area.


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Article 6.279. Liability for damage caused jointly by several persons


1. Where several persons jointly take part in causing damage, they shall be solidarily liable for compensation thereof.


2. In determining the reciprocal claims of solidarily liable persons, the different degree of gravity of their respective fault shall be taken into consideration, except in cases when it is otherwise provided for by laws.


3. The aggrieved person may not claim more from all the liable persons than he could claim if only one person were liable.


4. Where damage may have resulted from different actions performed by several persons and they are liable for compensation, but it is established that the damage actually resulted from actions of only one of those persons, the obligation to compensate for the damage shall rest upon all these persons jointly unless the other persons prove that the damage could not have resulted from the event (actions) for which they are responsible.


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Article 6.280. Right of recourse against the person who caused damage


1. A person who has compensated for the damage caused by another person shall have the right of recourse (the right of counter-claim) against the person by whom the damage was caused in the amount equal to the paid compensation unless a different amount is established by the law.


2. The person who has compensated for the damage caused by several persons jointly shall have the right of recourse against each of them in proportion to the degree of gravity of their fault.   Where it is impossible to determine the degree of gravity of the fault of each of them, the portions of damage under compensation attributable to each of them shall be considered to be equal.


3. Parents, guardians or curators, likewise the institutions indicated in Articles 6.275, 6.276 and 6.278 of this Code shall not have the right of recourse against a minor or a natural person declared legally incapable in a certain area after having compensated for the damage caused by them.


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Article 6.281. Method and amount of compensation for damage


1. When awarding compensation for damage, the court shall, taking into consideration the circumstances of the case, obligate the person liable for causing the damage to compensate for it in kind (to deliver a thing equivalent in kind and quality, to repair the damaged thing, etc.) or to fully compensate for the damage caused.


2. Where the court judgment on the compensation for damage in kind is not executed within a reasonable time, the creditor shall have the right to demand compensation in cash.


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Article 6.282. Assessment of damage in the light of the degree of the aggrieved person’s fault and the financial situation of the person who caused the damage


1. If the aggrieved person’s gross negligence contributed to causing or increasing damage, depending on the degree of the aggrieved person’s fault (and on the degree of the fault of the person by whom the damage was caused, in the event of the existence of such fault), compensation for damage may be reduced or the claim for damages may be dismissed unless otherwise provided for by laws.


2. The fault of the aggrieved person shall not be taken into consideration in recovering compensation for the damage caused by the death of the breadwinner and in compensating the costs of funeral expenses.


3. The court may, taking in consideration the serious financial situation of the person who caused the damage, reduce the amount of the reparable damage, except in cases when the damage was caused intentionally.


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Article 6.283. Compensation for damage caused to another person’s health


1. Where the damage sustained by a natural person is bodily harm, i.e. he is mutilated or his health is impaired in any other way, the person liable for the damage caused shall be bound to compensate the aggrieved person for all his damages suffered, including non-pecuniary damage.


2. Damages in cases referred to in paragraph 1 of this Article shall be composed of the incomes the aggrieved person would have received had he not sustained the bodily harm, expenses related to the rehabilitation of health (costs of medical treatment, additional nourishment, purchase of medication, prosthetics, care of the injured person, acquisition of special means of transport, retraining of the injured person and other costs necessary for the rehabilitation of health).


3. If the health of the aggrieved person deteriorated after the judgment on the compensation for damages was passed, he shall have the right to bring an action for compensation of additional expenses, except in the cases when the damage was compensated in the form of a definite lump sum.


4. This Article shall apply to the extent that the aggrieved person is not covered by social insurance against accidents at work within the procedure established by laws.


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Article 6.284. Liability for damage caused by fatal injury


1. In the event of death of a natural person, the right to compensation for damage caused by the latter’s death shall be acquired by the persons who were under his maintenance or at the time of his death were entitled to be maintained by him (minor children, spouses, parents incapacitated for work, or other factual dependants incapacitated for work), likewise the children of the deceased born after his death.   These persons shall also have the right to compensation for non-pecuniary damage.


2. Persons who have the right to compensation for damage caused by the death of their breadwinner shall be compensated for that part of the deceased person’s income which they received or were entitled to receive when the deceased person was alive.


3. The amount of the damage to be compensated may not be changed, except in cases when a child is born after the death of the breadwinner.


4. This Article shall apply only in cases where the aggrieved person is not insured by social insurance against accidents at work in accordance with the procedure established by laws.


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Article 6.285. Compensation for damage caused to the health of a natural person under fourteen years of age


1. In the event of mutilation or other impairment of health of a natural person under fourteen years of age who has no independent income, the person liable for the damage caused shall be obliged to compensate for the expenses connected with the impairment of health of the aggrieved person and for non-pecuniary damage.


2. Upon the attainment of the age of fourteen years by the aggrieved person, the person liable for the damage caused must also compensate such person for the damage connected with the loss or reduction of his capacity for work, taking into consideration the skills which the minor had prior to the injury, as well as the financial situation of his parents and that of the person by whom the damage was caused, likewise any other circumstances relevant to the case.


3. If at the time of the impairment to his health the natural person under fourteen years of age had independent income, he must be compensated for the damage in the amount equal to his independent income lost due to the impairment to his health.


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Article 6.286. Change of the amount of compensation upon the demand of the aggrieved person subsequent to a change of his capacity for work

An aggrieved person who has partially lost his capacity for work shall have the right at any time to demand from the person liable for the damage a corresponding increase of the compensation for the damage sustained if his capacity for work has decreased thereafter in connection with the impairment to health in comparison with that which remained at the time when the compensation was awarded, except in cases when the compensation for damage was awarded in the form of a definite lump sum.

 


Article 6.287. Change of the amount of compensation upon the demand of the persons ordered to pay compensation for damage

The person ordered to pay compensation for damage caused by mutilation or other impairment of the health of another person shall have the right to demand a corresponding reduction of the compensation if the capacity for work of the aggrieved person has increased in comparison with the remaining capacity for work he had at the time when the compensation was awarded, except in cases when the compensation for damage was awarded in the form of a definite lump sum.


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Article 6.288. Payment of the compensation for damage


1. Damage shall be compensated from the day when it was caused; if the damage occurred later, it shall be compensated from the day of its occurrence.


2. Where the persons who have the right to compensation for damage apply for such compensation after a lapse of three years from the day when the damage was caused, the compensation shall be paid from the day it was applied for. 


3. Damage related to mutilation or any other impairment of health of the aggrieved person, as well as fatal damage shall be compensated by periodic payments or a lump sum payment of the full amount of the damage.  Where the damage is compensated by periodic payments, these payments shall be indexed in accordance with the procedure established by laws.


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Article 6.289. Compensation for damage after the termination of a legal person or after the death of a natural person obliged to compensate for the damage


1. After the reorganisation of a legal person obliged to compensate for the damage which has caused impairment of health of a natural person or loss of his life, claims for damages shall be brought against the successor to the rights of the legal person. After the liquidation of a state or municipal enterprise or agency, the obligation to compensate for the damage shall be transferred to the State or the municipality. In the event of death of the natural person obliged to compensate for the damage, claims for damages shall be brought against the heirs of the deceased. The latter shall satisfy such claims in accordance with the rules established in Book Five of this Code.


2. Where a legal person obliged to compensate for the damage resulting from the injury to a natural person’s health or from a natural person’s death is liquidated, the respective sums for compensation of damage shall be capitalised by an immediate recovery of a definite lump sum in accordance with the procedure established by laws, or by concluding a contract of insurance.


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Article 6.290. Imputation of social insurance payments


1. Payments of social insurance awarded in cases of impairment of health or death shall be included into the amount of the repairable damage.


2. Payments of voluntary insurance shall not be included into the amount of the repairable damage.


3. Institutions of social insurance which have paid insurance payments shall acquire the right of recourse against the person who caused the damage, except in the cases where insurance contributions on behalf of the aggrieved person were paid by the same person who caused the damage.

 


Article 6.291. Compensation of funeral expenses


1. In the event of death of the aggrieved person, the person liable for the damage which is related to the death shall be obliged to compensate the expenses for the funeral to the person who incurred those expenses. Only such funeral expenses that conform to the criterion of reasonableness shall be subject to compensation.


2. Funeral allowance payable in the cases established by laws shall be included into the funeral expenses.

 


SECTION FOUR

LIABILITY FOR DAMAGE CAUSED BY DEFECTIVE PRODUCTS OR DEFECTIVE SERVICES


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Article 6.292. Liability of a producer and a supplier of services


1. A producer or a supplier of services must compensate for damage caused by defective products or defective services.


2. A producer shall mean the manufacturer of a finished product, a component part of a product or of raw materials, the supplier of services or any other person who by marking the product/services with his name, trade mark or any other distinctive sign indicates himself as a manufacturer/supplier of services.


3. Any person who in effectuation of his commercial activity imports into the territory of the states of the European Economic Area a defective product with the aim of selling, leasing or distributing it in any other way shall be held liable as a producer.


4. In the event where it is impossible to identify the producer of a product, any person involved in the sale of the product shall be regarded as producer unless he informs the aggrieved person within a reasonable period of time of the producer or the supplier of the product.  This rule shall also apply in cases where a product has been imported without the indication of the importer, although the producer of the imported product is known.


5. The provisions of this Section shall apply only where the products/services are purchased for the purposes of consumption but not for commercial purposes.


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Article 6.293. Concept of a product and services


1. For the purposes of this Section, the term ‘product’ shall mean any movable thing (property), including primary agricultural products and game/poultry, as well as a movable thing (property) incorporated into another movable or immovable thing.  Electricity shall also be regarded as a product.


2. For the purposes of this Section, the term ‘service’ shall mean any activity by which a concrete material or non-material need of a consumer is being satisfied, with the exception of health care services, legal services, education services, heating, gas and water supply, waste water disposal and transport services.


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Article 6.294. Concept of defectiveness


1. A product/service shall be considered defective if it does not conform to the safety requirements which a consumer can reasonably expect. Whether a product/services is defective or not shall be determined on the basis of the following criteria:


1) the indicated characteristics (advertisement) of a product/services;


2) whether a product/services may be used for the intended purpose;


3) the time when a product/services was/were put into circulation;


4) defects of the construction or composition of a product/services, or any other defects thereof;


5) other circumstances.


2. A product may not be considered to be of defective quality for the sole reason that a better product has subsequently been put into circulation.

 


Article 6.295. Conditions of liability 

Damage shall be compensated if the aggrieved person proves the occurrence of damage, existence of defects in the product/service and the causal link between the defects and the damages.

 


Article 6.296. Solidary liability  

Where damage results from the actions performed by several persons (e.g., those of the producer of a defective product and a person who incorporates the defective product into another product), these persons shall be held solidarily liable.


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Article 6.297. Fault of an aggrieved person

In the event where the aggrieved person himself or the person who has the right to claim damages contribute through their fault to causing or increasing the damage, the amount of damage subject to compensation may be reduced or the recovery of the damage may be excluded at all, taking into account all the circumstances of the case.


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Article 6.298. Exemption from liability


1. The producer shall be exempted from liability if he proves that:


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1) the product was not put into circulation by him;


2) taking into consideration the circumstances, there are grounds to presume that the product was not defective at the time when it was put into circulation, or that its quality deteriorated later;


3) the product was manufactured not for the purposes of sale, lease or for any other form of commercial distribution, nor it was manufactured or distributed in the course of the producer’s business activities;


4) the defect of quality of the product resulted from the observance of mandatory rules established by the corresponding state institutions;


5) at the time of putting the product into circulation, the level of scientific and technical knowledge was not sufficient to identify the defect of quality;


6) the product manufactured by him was incorporated into another product and the damage occurred because of the construction of the other product, or because of the instructions for use provided by the producer of the whole product.


2. The liability of the producer shall not be reduced if the damage was caused by both the defectiveness of the product and by an act or omission of a third person. 


3. The liability of the producer may be reduced or he may be exempted from liability if, taking into account all the circumstances, damage was caused by both the defectiveness of the product and the fault of the aggrieved person or that of another person for whom the aggrieved person is responsible.


4.  Laws may


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product and the fault of the aggrieved person or that of another person for whom the aggrieved person is responsible.


4.  Laws may lay down conditions for the exemption of a service supplier from liability other than those laid down in paragraph 1 of this Article.


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Article 6.299. Damage subject to compensation


1. For the purposes of this Section, the term ‘damage’ shall mean:


1) damage resulting from loss of life or health impairment, including non-pecuniary damage;


2) damage caused to the aggrieved person’s property which was intended and normally used to satisfy personal needs, with the exception of the defective product itself, where the amount of the damage is not less than five hundred euros. This sum shall not apply when damage is caused by defective services.


2. The provisions of this Section shall not apply to compensation for nuclear damage.

 


Article 6.300. Limitation period


1. Actions for compensation of damages (damage) caused by the use of defective products/services may be brought within three years from the date on which the aggrieved person became aware or should have become aware of the damage caused to him, the defect and the identity of the producer.


2. The right to bring an action referred to in paragraph 1 of this Article shall be extinguished by the lapse of ten years from the day on which the defective product that caused the damage was put into circulation by the producer.

 


SECTION FIVE

COMPENSATION FOR DAMAGE RESULTING FROM MISLEADING ADVERTISING


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Article 6.301. Concept of misleading advertising


1. For the purposes of this Section, ‘misleading advertising’ shall mean any information related to economic and commercial, financial or professional activities which is promulgated in any form and by any means of conveyance with the aim to promote the sales/supply of goods or services, including the sales/supply of immovable property, rights and obligations, where such information in any way, including the manner of its presentation, deceives or is likely to deceive the persons to whom it is addressed or whom it reaches, and which causes damage by reason of its deceptive nature.


2. In determining whether the advertising which has caused damage is misleading, account shall be taken of its truthfulness, comprehensiveness and the criteria of its presentation:


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1) the statements presented in advertising are incorrect if the advertiser cannot prove their truthfulness at the moment of their announcement. Whether there is sufficient evidence to prove the truthfulness of the statements shall be decided on a case-by-case basis taking into consideration concrete circumstances of the case. Testimony of persons whose activities are not related to the promulgated information shall not be considered sufficient evidence to prove the truthfulness of that information;


2) information communicated in an advertisement is not comprehensive if a certain element of information is omitted which, taking into account other information presented in that advertisement, is necessary in order to avoid deception of the consumers of advertising;


3) the advertising is presented in such a manner and form which enables its consumers to perceive an inferred misleading proposition in that advertisement;


4) taking into account the manner and form of advertising, the consumers of advertising conclude that the communicated information is truthful and comprehensive and make such decisions which can be expected in the relevant circumstances from ordinary consumers of advertising.


3. In determining whether advertising is misleading, account must be taken of the information it contains concerning:


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1) the advertiser or another person, their activity, registered office, trade name, trade mark or service mark, copyright or related rights, patents, licences, etc.;


2) the goods and services: their origin or the place of production, identity, experience or qualification of the producer or supplier of services, date and method of manufacture, purpose, quantity, composition, energy value, uses, fitness for designation and suitability for consumption/use, date, place and method of tests or checks carried out on the goods or services, ways of consumption/use, compliance of goods/services with the established standard, certification, official acknowledgement and awards at fairs and exhibitions, bonuses, gifts or prizes awarded for the goods or services purchased; likewise the use of scientific or professional terms, technical or statistical data of experiments, etc.;


3) the conditions of purchase and consumption/use of goods/services: the price or the manner in which the price is calculated, terms of payment, guarantees, terms of delivery, change, repair, maintenance or return, the volume of sale and supply, the reason or purpose of a special offer, etc.;


4) comparison of goods and services with other goods or services.


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Article 6.302. Subject of liability


1. Damage resulting from misleading advertising shall give rise to liability on the part of advertiser, producer, intermediary or publisher of advertising.


2. The advertiser shall be liable unless he proves that the damage has been caused not through his fault.


3. The producer, intermediary or publisher of advertising shall be liable for damage resulting from misleading advertising only if they were aware or ought to have been aware that the advertising was misleading or that consumers were misled as to their actions in producing and publishing the advertisement, or if the producer, intermediary or publisher of advertising fail to prove the identity of the advertiser (producer).

 


Article 6.303. Conditions of liability

Persons indicated in Article 6.302 of this Code shall be liable for damage resulting from misleading advertising unless they prove that the published information corresponds to reality, and that there is no fault of theirs in relation to the content or presentation of the information and the occurrence of damage.

 


Article 6.304. Prohibition and refutation of misleading advertising

Upon the request of the persons concerned, the court hearing the case on the compensation for damage may order prohibition of further publication of misleading advertising or the prohibition of misleading advertising which has been prepared but not yet published; the court may likewise order to publish an adequate refutation of the misleading advertising.


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PART IV

NOMINATE CONTRACTS

 


CHAPTER XXIII

PURCHASE AND SALE

 


SECTION ONE

GENERAL PROVISIONS

 


Article 6.305. Concept of a sales contract


1. A sales contract shall be a contract by which one party (the seller) undertakes to transfer ownership or trust of the thing/goods to another party (the buyer) and the latter undertakes to accept the thing/goods in exchange for a fixed amount of consideration (price). 


2. The provisions of this Chapter shall also apply to the purchase and sale of securities and currency unless other laws establish special rules for the purchase and sale thereof.


3. Specific features of the purchase and sale of things (goods) of certain types may be established by relevant laws. 


4. The provisions of this Chapter shall apply to the purchase and sale of property rights to the extent this is in conformity with the origin and essence of the said rights.


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Article 6.306. Subject matter of a sales contract


1. The things which form the subject matter of a sales contract may be either existing things, owned or possessed by the seller, or things to be manufactured or acquired by the seller in future, securities and other things or property rights.


2. Yield, crop and other future things may also form the subject matter of a sales contract.


3. The subject matter of a sales contract may be characterised both by individual characteristics and by its type.


4. The term of a sales contract regarding the subject matter of the contract shall be deemed to have been agreed if the content of the contract makes it possible to determine the name and quantity of the thing/goods.


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Article 6.307. Sale of the thing of another’s


1. A sales contract under which the thing is sold by a person other than the owner or than a person charged with its sale or authorised to sell it by the owner or entitled under law to sell it may be declared null and void on the basis of an action filed by the owner, possessor or buyer of the thing.


2. Such sales contract shall not be null and void if the seller becomes the owner of the thing sold during the performance of the contract.


3. Where the contract is declared null and void on the ground provided for in paragraph 1 of this Article, the thing shall be returned to the owner, except in the cases provided in Article 4.96 of this Code.


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Article 6.308. Prohibition to buy or sell a thing


1. A person charged with the sale of a thing of another person shall not have the right to purchase the thing either directly or through intermediaries, save for the exceptions established by laws. This prohibition shall also apply to a person charged with administration of the property of another person in accordance with the provisions of Book Four of this Code.


2. The person charged with administration of the property of another person may not sell his own property for a price paid out of the property which he administers.


3. Persons specified in paragraphs 1 and 2 of this Article shall not have the right to apply for the annulment of the sales contract concluded in violation of the rules laid down in this Article.

 


Article 6.309. Promise of sale or of purchase


1. The promise of sale of a thing with delivery thereof to the future buyer for actual possession shall be equivalent to the purchase and sale of the thing.


2. Any amount paid on the occasion of a promise of sale shall be recognised to be a deposit (advance payment) on the price unless otherwise agreed by the parties.


3. Failure by the promissor, whether he be the seller or the buyer, to execute the deed in the form prescribed by laws shall entitle the beneficiary of the promise to obtain a judgment in lieu thereof.


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Article 6.310. Expenses incidental to the formation of a sales contract -


1. Unless the parties agree otherwise, the expenses incidental to the formation of  a sales contract shall be assumed by the buyer.-


2. The expenses of delivery of the things, weighing and calculating (checking the quantity) thereof shall be assumed by the seller unless otherwise agreed by the parties.


3. The expenses incidental to the acceptance of the things, the drawing up of the deed of transfer and acceptance shall be assumed by the buyer.

 


Article 6.311. Form of the sales contract

The form of the sales contract shall be established by the rules set for the form of conclusion of transactions. Laws may prescribe special rules for the formation of certain sales contracts.

 


Article 6.312. Sales contract containing a clause relating to the use of the thing to be sold


1. The person who is a seller of a thing may include a clause in the contract stipulating that the thing must be used for a certain purpose, without prejudice to the rights and legitimate interests of other persons.


2. In the event of breach by the buyer of the condition set out in the sales contract, the seller shall be entitled to bring an action for the fulfilment of the condition or for dissolution of the contract, recovery of the thing and damages.


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1. The price of the thing to be sold shall be fixed in cash by agreement between the parties.


2. Where the price is not fixed in the sales contract either expressly or impliedly, or the manner for fixing the price is not specified in the contract, it shall be considered, unless otherwise agreed by the parties, that the parties have impliedly made reference to the price generally charged at the time of the conclusion of the contract for such thing sold under comparable circumstances in the trade concerned and, where the price is non-existent, the price meeting the criteria of reasonableness.


3. Where the price must be fixed according to the weight of the things, it shall be determined by the net weight unless otherwise agreed by the parties.


4. If the price is to be fixed by one of the parties and the price fixed in the said manner clearly fails to meet the criteria of reasonableness, the price in the contract must be replaced by a price meeting the criteria of reasonableness regardless of the agreement between the parties.


5. Where the price is to be fixed by a third person, but he does not or cannot fix the price, the price which meets the criteria of reasonableness shall be deemed to be the price of the contract.


6. Where the price is to be fixed on the basis of criteria which are non-existent or have disappeared or which cannot be established, the price shall be fixed on the basis


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to be fixed on the basis of criteria which are non-existent or have disappeared or which cannot be established, the price shall be fixed on the basis of the criteria of the closest value.


7. Where the contract provides that the price must be changed having regard to certain indices affecting the price (cost, expenses, etc.) but does not specify the procedure for changing the price, the price shall be determined according to the ratio of the indices at the moment of conclusion of the contract and delivery of the thing. Where the seller delays delivery of the thing, the price shall be fixed according to the ratio of the said indices at the moment of conclusion of the contract and delivery of the thing provided for in the contract.


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1. Unless bound to pay the price at a specified place, the buyer must pay the price to the seller at the place of delivery of the thing.


2. Unless bound to pay the price at a specified time, the buyer must pay the price at the time of delivery, under the contract or this Code, of the thing or documents of disposal thereof to the buyer.


3. The buyer shall not be obliged to pay the price until he has had an opportunity to examine the things, except where the agreement between the parties provides otherwise.


4. Unless otherwise provided by the contract, the buyer must pay the full price immediately.


5. If the buyer fails to pay in due time for the things delivered to him, the seller shall be entitled to demand payment of the price and interest as provided for by law or contract.


6. Where the buyer refuses to accept delivery of the thing and to pay the price, the seller may, at his own discretion, demand from the buyer the payment of the price or refuse to perform the contract.


7. Where the seller is bound under the contract to deliver to the buyer not only the things for which the buyer has not yet paid the price, but also other things, the seller may suspend the delivery of the latter things until the buyer pays in full for the previously delivered things, unless otherwise provided for by law or the contract.


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Article 6.315. Payment for the thing in advance


1. Where the contract provides that the buyer is bound to pay a part or the whole of the price in advance of delivery of the thing (advance payment), the buyer must pay the price at the date specified in the contract. 


2. If the buyer fails to pay the price in advance, the seller shall be entitled to suspend the performance of the contract.


3. Where the seller, having received the advance payment, fails to deliver the thing to the buyer within the prescribed time limit, the latter shall be entitled to demand from the seller delivery of the thing or reimbursement of the amount paid.


4. Where the seller, having received the advance payment, fails to deliver the thing to the buyer within the prescribed time limit, he shall be bound to pay interest on the received amount fixed by law or under the contract, unless otherwise provided for by the contract. Interest shall begin to accrue from the date on which the seller was bound to deliver the thing and shall be payable until the date on which the buyer is actually delivered the thing or the price paid is refunded.


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Article 6.316. Insurance of the thing


1. A sales contract may impose an obligation on the seller or the buyer to insure the thing. -


2. Where the party obliged to insure the thing fails to perform this obligation, the other party shall be entitled to insure the thing and claim reimbursement for the expenses incidental to insurance or repudiate the contract.

 


SECTION TWO

GENERAL OBLIGATIONS AND RIGHTS OF THE SELLER


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Article 6.317. Obligation of the seller to deliver the things


1. Under the sales contract, the seller must deliver the things to the buyer, i.e. put the things into the buyer’s possession by the right of ownership/trust and give warranty of title to the things and the quality thereof.


2. The seller’s warranty (guarantee) of title to and quality of the things shall exist regardless of whether or not such warranty is stipulated in the sales contract (warranty under law).


3. Unless otherwise provided for by the contract, the seller must deliver the things together with their appurtenances and accessories in the condition as it was at the time of conclusion of the sales contract.


4. The seller’s obligation to deliver the things shall be deemed performed when the seller puts the things into the buyer’s possession or consents to the buyer taking possession of the things and any obstacles to the buyer’s right of possession are removed.


5. Delivery expenses shall be assumed by the seller unless the contract provides otherwise.


6. Where the sales contract provides that the buyer pays the price only after the delivery of the things, the seller shall not be obliged to deliver the things if the buyer has become insolvent after the conclusion of the contract.-


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Article 6.318. Place and time of delivery of the things and documents


1. The seller must, together with the things, deliver to the buyer the related documents and the titles of ownership in his possession, where this is prescribed by the contract or this Code.  If the seller himself needs the above documents for exercising other rights not related to the things sold, the seller must deliver to the buyer copies of the documents certified in accordance with the established procedure.


2. If the seller is not obliged to deliver the things at a specific place, the following shall be deemed to be the delivery of the things:


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1) where the sales contract provides for the carriage of the things, handing of the things to the first carrier for delivery to the buyer, unless otherwise provided for in the contract;


2) where, in cases other than those referred to in point 1 of this paragraph, things have to be drawn from certain stocks or manufactured and at the time of the conclusion of the contract the parties knew thereof, placing the things at the disposal of the buyer or the person indicated by him at the place where the stocks are located or manufactured;


3) in cases other than those referred to in points 1 and 2 of this paragraph, placing the things at the disposal of the buyer at the place where the seller had his place of business or residence at the time of the conclusion of the contract or where the things are transmitted to the person indicated by the buyer.


3. The fruits and revenue from the things shall belong to the buyer from the time of delivery of the things.


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Article 6.319. Time limit for delivery of the things


1. The seller must deliver the things to the buyer at the time provided in the sales contract.  Where the time limit for delivery is not specified in the contract, the things must be delivered within a reasonable time after the conclusion of the contract. In this case, Article 6.53 of this Code shall apply accordingly.


2. The sales contract shall be deemed to contain a clause for performance within a specified period of time if it is clear from the content of the contract that, in the event of breach of that time limit, the buyer loses an interest in the contract. Where the contract contains such a clause, the seller shall be entitled to perform the contract by the expiration of the time limit or after the expiration thereof only where the buyer grants his consent.


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1. Unless otherwise provided for in this Code or in the sales contract, the risk of accidental perishing of or damage to the things shall pass to the buyer from the moment when the seller is deemed, by law or contract, to have duly fulfilled his obligation to deliver the things, regardless of the time of passing of the right of ownership.


2. The risk of accidental perishing of or damage to the things sold during the carriage thereof shall pass to the buyer from the conclusion of the sales contract, unless the contract or trade customs provide otherwise.


3. A contractual term that the risk of accidental perishing of or damage to the things passes to the buyer from the handing of the things to the first carrier may be declared null and void at the buyer’s request if, at the time of entry into the sales contract, the seller knew, or ought to have known, that the things had perished or had been damaged, however, he did not notify the buyer thereof.


4. If the thing perished or was damaged after its delivery through no fault of the seller, the buyer must pay the price to the seller. The above rule shall also apply in cases where the seller was unable to deliver the thing to the buyer because the latter did not cooperate sufficiently with the seller and thereby breached the contract.


5. Where the subject matter of the contract are things characterised by description of the kind of the things and the buyer refuses to accept the things


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Where the subject matter of the contract are things characterised by description of the kind of the things and the buyer refuses to accept the things or is otherwise in breach of the contract, the risk of accidental perishing of or damage to the things shall pass to the buyer from the moment when the seller identifies the things and notifies the buyer thereof.


6. If the buyer brings a justified action for the nullity of the contract or replacement of the things, the risk of accidental perishing of or damage to the things shall be borne by the seller.


7. If the risk of accidental perishing of or damage to the things stays with the seller even after the delivery thereof to the buyer, the seller shall be liable for the perishing of or damage to the things, even though this would have occurred as a result of the buyer’s actions. However, from the moment the buyer could have reasonably foreseen that he had to return the things to the seller, the buyer shall be responsible for the safekeeping thereof.


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1. The seller shall be bound to warrant the buyer that the things delivered are free from any rights or claims of a third party, unless the buyer agreed in advance to accept the things subject to such rights or claims, whereas the seller gave a due notice thereof to the buyer.


2. The seller shall be bound to discharge the delivered things of pledge (hypothec) irrespective of the registration of the pledge (hypothec), unless the buyer, after he has been given notice by the seller of the encumbrances, agrees to buy the things.


3. The seller shall be bound to warrant the buyer that the delivered things have not been seized and they are not an object of a legal action, also that the seller has not been deprived of the right to dispose of the things and that there are no encumbrances.


4. The seller of an immovable thing shall be bound to warrant the buyer that there are no violations or restrictions of public law that could affect the buyer’s right of ownership of that thing.


5. In cases where, at the time of conclusion of the contract, the seller has duly informed the buyer of the rights of third parties to the delivered things or of encumbrances of these rights, likewise where such rights of the third parties or such encumbrances have been registered in the public register, the buyer may not invoke the circumstance that the seller has breached his


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the third parties or such encumbrances have been registered in the public register, the buyer may not invoke the circumstance that the seller has breached his obligation.


6. Where the seller breaches his obligations specified in paragraphs 1 to 4 of this Article, the buyer shall be entitled to demand reduction of the price or to rescind the contract, unless the seller proves that the buyer was aware or ought to have been aware of the rights of third parties to the things or encumbrances of such rights.


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Article 6.322. Obligations of the seller and the buyer in case of an action brought by a third party for the taking of the thing


1. Where an action for the taking of the thing is brought against the buyer by a third party on the grounds which arose before the performance of the sales contract, the buyer must bring the seller to be a party to the suit and the seller must join in the suit on the part of the buyer.


2. If the buyer fails to bring the seller to be a party to the suit, the seller shall be exempt from liability with respect to the buyer if he proves that, by taking part in the suit, he would have been able to prevent the taking of the sold thing from the buyer.


3. The seller who has been brought by the buyer to be a party to the suit but has not participated therein shall forfeit the right to argue that the buyer has failed to properly perform the procedural steps.


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Article 6.323.  Seller’s liability where the sold thing is revendicated against the buyer


1. Where the sold thing is revendicated against the buyer by the court on the grounds which arose before the performance of the contract, the seller must restore the price and pay the damages suffered by the buyer, unless the seller proves that the buyer was aware or ought to have been aware of the grounds.


2. Agreement between the parties to exclude or limit the liability of the seller shall be null and void if the seller, being aware that the third person has rights to the thing sold, fails to notify the buyer thereof.  

 


Article 6.324. Consequences of failure to perform the obligation to deliver the thing


1. If the seller refuses without a valid reason to deliver the thing to the buyer, the latter shall have the right to refuse to perform the sales contract and claim damages.


2. Where the seller refuses to deliver the individually determined thing, the buyer may resort to remedies provided for in Article 6.60 and 6.213 of this Code.


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Article 6.325. Consequences of failure to perform the obligation to deliver appurtenances, accessories and deeds


1. In case of failure or refusal by the seller to deliver to the buyer the appurtenances, accessories or deeds that he is obliged to deliver under the contract or by law, the buyer shall have the right to fix a reasonable time limit for the seller to perform the obligation.


2. Where the seller fails to perform his obligation within the time limit fixed by the buyer, the buyer shall have the right to refuse acceptance of the thing unless otherwise provided for by the contract.

 


Article 6.326. Seller’s obligation to preserve the sold thing


1. Where the right of ownership or trust passes to the buyer before the delivery of the sold thing, the seller must preserve the thing before the delivery and prevent it from deteriorating.


2. The buyer must reimburse the seller’s expenses incidental to preservation of the thing unless the contract provides otherwise.


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Article 6.327. Requirements in respect of the thing


1. The quality, quantity and other criteria of the thing sold must comply with the terms of the contract or, in the absence of contractual specifications, correspond to the regular requirements.


2. The seller shall not be liable under paragraph 1 of this Article for any lack of conformity of the thing if, at the time of the conclusion of the contract, the buyer was aware or could not have been unaware of such lack of conformity. 


3. The seller shall be liable under the contract and this Code for any lack of conformity which exists at the time when the right of ownership passes to the buyer, even though the lack of conformity becomes apparent at a later date.


4. The seller shall be also liable for any lack of conformity which occurs after the time indicated in paragraph 3 of this Article and which is due to a breach of any of the seller’s obligations, including a breach of any guarantee that for a period of time the things will remain fit for their ordinary purpose or for some particular purpose or will retain the specified qualities or characteristics.


5. The buyer shall forfeit the right to rely on a lack of conformity of the things if he does not give notice to the seller specifying the nature of the lack of conformity within a reasonable time after he has discovered or ought to have discovered it.


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Article 6.328. Right to examine the thing


1. Unless otherwise agreed by the parties, the buyer shall have the right, from the moment of entry into the sales contract or presentation of the offer, before making the payment or before accepting the thing, to examine the thing at any place, at any time or in any manner which correspond to the criteria of reasonableness.


2. Unless otherwise agreed by the parties, the expenses of examining the thing shall be assumed by the buyer. The buyer shall have the right to claim from the seller reimbursement of the expenses of the examination if it is established during the examination that the thing does not correspond to the requirements set out for it.

 


Article 6.329. Quantity of things


1. The quantity of things which the seller is bound to deliver to the buyer shall be established in the sales contract in units of weight, quantity, volume or other units or in monetary terms. The contractual term regarding the quantity of the things may be agreed between the parties, establishing in the contract only the procedure for determining the quantity. Where the performance of the contract has been initiated, the contract shall be deemed concluded in respect of the quantity of things actually accepted by the buyer.


2. Where the quantity of the things to be delivered cannot be determined from the content of the sales contract and its interpretation, the contract shall be deemed not to have been concluded.


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Article 6.330. Legal consequences of breach of the contractual term relating to the quantity of the things


1. If the seller, in breach of the contract, delivers to the buyer a quantity of things less than that indicated in the sales contract, the buyer shall be entitled, unless the contract provides otherwise, either to demand that the buyer makes up any deficiency in the quantity or to reject the delivered things and refuse to pay the price or, where the price has already been paid, to claim recovery of the price and damages.


2. Where the seller delivers to the buyer a quantity of things greater than that indicated in the sales contract, the buyer must give notice thereof to the seller within the time limit specified by laws or in the contract or, where there is no fixed time limit, within a reasonable time. If, upon receipt of the buyer’s notice, the seller fails to notify within a reasonable time of further actions that should be taken, the buyer shall have the right to take delivery of all things or refuse to take delivery of the things in excess of the contractual quantity, unless otherwise provided for in the contract.


3. If the buyer takes delivery of the things in excess of the contractual quantity, the price paid for the additional things shall be the same as the price specified in the contract, unless the parties have agreed otherwise.


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Article 6.331. Range of things


1. Where it is provided in the sales contract that the seller must deliver things of a particular kind, model, size, colour or property characterised by other description (range of things), the seller must deliver things which are in conformity with the range of things agreed by the parties.


2. Where neither the range of things nor the procedure of determination thereof is specified in the contract, but it is evident from the content and substance of the contract that the things must conform with a certain range, the seller must deliver to the buyer things of the range that would conform with the needs of the buyer of which the seller is aware of at the moment of entry into the contract, or he shall be entitled to repudiate the contract.


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Article 6.332. Legal consequences of breach of the condition concerning the range of things


1. Where the seller delivers to the buyer things which do not conform with the range provided for in the sales contract, the buyer shall have the right to refuse to accept delivery and pay for it or, if the payment has already been made, demand restoration of the price paid, unless the contract provides otherwise.


2. Where the seller delivers to the buyer both the things which conform with the range and those which do not, the buyer shall be entitled to choose:


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1) to accept the delivery of the things which conform with the range and refuse to accept the non-conforming things;


2) to refuse to accept the entire delivery;  


3) to demand replacement of the things which do not conform with the range with the things provided for in the contract;


4) to accept the entire delivery.


3. Where the buyer refuses to accept the delivery of the things which do not conform with the range or demands replacement thereof, he shall have the right to refuse to pay for the said things and, where the payment has already been made, to demand restoration of the price paid.


4. The things which do not conform with the range shall be deemed accepted if the buyer fails, within a reasonable time after the receipt thereof, to give notice to the seller of his refusal to accept the things.


5. If the buyer does not refuse to accept the things which do not conform with the range, he must pay for them the price agreed with the seller. Where the seller fails through his own fault to agree with the buyer upon the price within a reasonable time, the buyer must pay for the things at the price usually paid at the time of conclusion of the contract under analogous circumstances for analogous things.


6. The rules laid down in this Article shall apply to the extent that the sales contract does not provide otherwise.


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1. The seller must deliver to the buyer things the quality of which meets the terms and conditions of the sales contract and the requirements of documents determining the quality of things. The seller shall be liable for the defects of the things provided the buyer proves that the defects appeared before the delivery of the things or due to reasons which arose before the delivery of the things.


2. The laws or the contract may provide for the seller’s obligation to warrant the buyer that the things meet the terms and conditions of the contract and to warrant, at the moment of conclusion of the contract, against any latent defects which render them unfit for the use for which the things were intended or which so diminish their usefulness that the buyer would not have bought them or paid so high a price had he been aware of them. However, the seller shall not be obliged to warrant against any latent defects known to the buyer or any apparent defects that can be perceived by a prudent and diligent buyer without any need of expert inspection.


3. Where the seller warrants the quality of the things, he shall be liable for the defects thereof unless he proves that the defects appeared after the delivery of the things to the buyer due to the buyer’s breach of the rules governing the use or storage of the things or through the fault of third persons or as a result of superior force.


4. Where the quality of the things is not covered by the contract, the seller must deliver the things to the buyer


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of superior force.


4. Where the quality of the things is not covered by the contract, the seller must deliver the things to the buyer in the condition fit for the use for which they are usually intended.  If, however, at the time of conclusion of the contract the buyer made known to the seller the particular purpose for which he buys the things, the seller must deliver to the buyer things of such quality which would make the things fit for that particular purpose.


5. Where the contract is concluded according to a sample, model or description, the seller must deliver to the buyer things which correspond to the sample, model or description, except for the derogations set out in the contract.


6. The things shall be deemed not to meet quality requirements if they lack the qualities which the buyer could have reasonably expected, i.e. which are necessary for the things to be fit for the purpose they would ordinarily be used or for a particular purpose. 


7. The things shall be deemed not to conform with the contract if the quantity, volume or weight of the delivered things does not conform with the conditions of the contract or things of the kind other than that provided for in the contract have been delivered.


8. Sale under judicial authority shall not give rise to the seller’s obligation to warrant the quality of the sold things, whereas the buyer may not invoke the fact that the seller has sold a thing of inadequate quality, except where the


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warrant the quality of the sold things, whereas the buyer may not invoke the fact that the seller has sold a thing of inadequate quality, except where the seller was aware of the defects of the things sold.


9. Where the rights of succession are sold without specifying the property, the seller shall be obliged to warrant only that he is the successor.


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10. The warranty of the quality of the things provided for in paragraph 2 of this Article must also be given by the producer, distributor, supplier, importer or any other persons distributing the things in his own name.


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Article 6.334. Rights of buyers of things of inadequate quality


1. Where the things sold do not correspond to the quality requirements and the seller has not discussed the defects with the buyer, upon buying things of inadequate quality the buyer shall be entitled to demand, at his own choice:


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1) that the thing which is characterised in the contract by its kind be replaced by the thing of adequate quality unless the defects are minor or appeared due to the fault of the buyer;


2) that the purchasing price be reduced accordingly;


3) that the seller eliminates the defects free of charge within a reasonable time or reimburses the buyer’s expenses for the elimination of defects if these can be eliminated;


4) to restore the price and repudiate the contract, where the sale of things of inadequate quality is a material breach of contract.


2. If the purchased things perish by reason of a latent defect that existed at the time of conclusion of the sales contract, the seller must restore the price to the buyer. If the loss results from superior force, or is due to the fault of the buyer, the buyer shall be only compensated for the difference between the value of the things at the time of their loss and the price of the things.


3. If the things perished by reason of a latent defect of which the seller was aware or ought to have been aware, he must not only restore the price, but also pay all damages suffered by the buyer.


4. The terms and conditions of the contract excluding or limiting the seller’s liability for the defects of the things shall be null and void unless he has disclosed to the buyer the defects of which the seller was aware or ought to have been aware or in the


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things shall be null and void unless he has disclosed to the buyer the defects of which the seller was aware or ought to have been aware or in the case where a buyer buys things at his own risk from a seller who is not a professional seller.


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Article 6.335. Period of warranty of quality of things


1. The law or the contract may provide that the warranty of quality of things given by the seller is valid for a certain period of time.  In this case, the warranty shall be valid for all component parts of the things unless otherwise established by law or the contract.


2. The period of warranty shall start to run from the moment of delivery of things unless the contract provides otherwise.


3. Where obstacles within the seller’s control prevent the buyer from using the things for which a period of warranty of quality has been set, the warranty period shall not run until the seller removes the obstacles.


4. Unless otherwise specified in the contract, the period of warranty shall be extended for the period the buyer was unable to use the things due to the defects, provided the buyer duly notified the seller of the perceived defects.


5. The component parts shall have the same period of warranty of quality as the principal thing, which shall commence to run together with the period of warranty of quality of the principal thing, unless otherwise provided for by the contract.


6. Where the seller replaces a thing or its component part within a fixed period of warranty of quality, the period of warranty of quality that has been fixed for the replaced thing or its component part shall be applied with respect to the thing or the component part presented in replacement, unless the contract provides otherwise.


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Article 6.336. Period of fitness for use of things


1. Law or other legal statutes may fix periods of time upon the expiration whereof relevant items of things shall be deemed unfit for their ordinary purpose (period of fitness for use).  In such cases, the producer, importer, seller or any other person who distributes the things in his own name must explicitly indicate the period of fitness for use of the things.


2. A thing for which the period of fitness for use has been fixed must be delivered to the buyer by the seller within the time limit which would allow the buyer to use the thing for its purpose before the expiration of the period of its fitness for use.


3. The period of fitness for use shall be fixed by indicating the date of manufacture of the thing and the period of time running from the said date during which the thing is fit for use or by indicating the specific calendar day of expiration of its fitness for use period.


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Article 6.337. Inspection of quality of things


1. The laws or the sales contract may establish mandatory inspection of quality of the things and the procedure and time limits for performing the inspection. 


2. Unless the procedure and time limits for quality inspection of the things are established by laws or the contract, the inspection of quality of the things must be carried out within a reasonable time period and in accordance with the usual conditions for the quality inspection of things and custom of the trade.


3. Where the laws or the sales contract provide for the seller’s obligation to inspect the quality of the things which are delivered to the buyer (trial, examination, measurement, etc.), the seller must, together with the things, hand over to the buyer documents certifying the performance of the quality inspection of the things.


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1. Unless the contract or laws establish otherwise, the buyer shall have the right to file claims regarding the defects of the things sold, provided they were established within the time limits specified in this Article.


2. Where the time period of warranty of quality or fitness for use of the item of the thing has not been established, the buyer may file claims regarding the defects of the thing within a reasonable time but not later than within two years from the day of delivery of the thing, unless a longer time limit is provided for by law or the contract. The time limit for filing claims in respect of the defects of the thing transported or conveyed by post shall run from the day of arrival of the thing at the appointed destination.


3. Where the time period of warranty of quality of the thing has not been fixed, claims regarding the defect of the thing may be filed provided the defects are established within the period of warranty. If the period of warranty of quality valid for the component parts is shorter than the period of warranty of quality of the principal thing, the claim regarding the defects of the component part may be filed within the period of warranty of quality of the principal thing. Where a period of warranty of quality applied in respect of the component part is longer than that of the principal thing, a claim regarding the defects of the component part discovered within the period of warranty may be filed regardless of the expiration of the period of warranty of quality of the principal thing.


4. The


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discovered within the period of warranty may be filed regardless of the expiration of the period of warranty of quality of the principal thing.


4. The buyer may file claims regarding a thing, in respect of which a time period of fitness for use has been fixed, provided the defects are established within the time period of fitness for use of the thing. 


5. Where the period of warranty of quality fixed for a thing in the contract is less than two years and the defects of the thing are established after the expiration of the time period but not after the lapse of two years from the day of delivery of the thing, the seller shall be liable for the defects of the thing if the buyer proves that the defect appeared before the delivery of the thing or due to the reasons which appeared before the delivery and for which the seller is liable.


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Article 6.339. Completeness of things


1. The seller must deliver to the buyer things which are in conformity with the requirements of the terms and conditions of the sales contract, which determine the completeness of things.


2. If the contract does not cover the completeness of things, the seller must deliver things complete with all accessories so that they comply with the custom of the trade and the usual requirements.

 


Article 6.340. Complete set of things


1. If the sales contract provides for the seller’s obligation to deliver to the buyer a certain assortment of things constituting a set (set of things), the seller shall be deemed to have fulfilled his obligation only when he delivers all the items constituting the set.  


2. The seller must deliver to the buyer all items of the set at the same time if, by virtue of the contract or the nature of the obligation, the contract cannot be performed otherwise.


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Article 6.341. Legal consequences of delivery of incomplete things


1. In case of delivery by the seller of incomplete things, the buyer shall have the right to demand, at his choice:


1) reduction of the price of the thing;


2) delivery by the seller of the missing accessories within a reasonable time.


2. Where the seller fails to deliver the missing accessories within a reasonable time, the buyer shall have the right, at his choice:


1) to demand that the incomplete things be replaced with complete things;


2) to refuse to perform the contract and demand restoration of the price, where that breach constitutes a material breach of contract.


3. The rules provided for in paragraphs 1 and 2 of this Article shall also apply in cases where the seller is in breach of his obligation to deliver to the buyer a set of things, unless the rules are not applicable under the contract or due to the nature of the obligation.


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Article 6.342. Containers and packaging of things


1. Unless the contract or the nature of the obligation provides otherwise, the seller must deliver to the buyer things in containers and packaged, except in cases where due to the nature of the things there is no need to deliver them in containers or packaged.


2. Where the contract does not lay down requirements regarding the containers and packaging of things, the things must be delivered packaged in the manner customary for such things, whereas in cases where the containers and packaging may be varied, the things must be packaged in such a manner or in such containers which would ensure fitness of the type of things during storage or carriage under normal conditions. 


3. Where mandatory requirements regarding containers or packaging are established by laws or other legal acts, the seller, being a trader, must deliver the things to the buyer in containers or packaging which conform to the requirements set by laws or other legal acts.


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Article 6.343. Legal consequences of violation of requirements relating to containers and packaging of things


1. Where the seller, in breach of his obligation, delivers to the buyer things in bulk or without containers or incorrectly packaged or in unfit containers, the buyer must refuse to accept them and require the seller to package the things or to deliver them in containers or to supply the packaging or containers, unless otherwise provided for by the contract or determined by the nature of the obligation or things.


2. Unless the contract provides otherwise, in the cases specified in paragraph 1 of this Article, the buyer may make demands established in Article 6.334 of this Code instead of the demands established in paragraph 1 of this Article.

 


SECTION THREE

GENERAL OBLIGATIONS AND RIGHTS OF THE BUYER


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Article 6.344. Buyer’s obligation to pay the price and other expenses


1. The buyer shall be obliged to pay the price of the things within the time limits laid down in the contract or laws and at the specified place.


2. For late payment of the price, the buyer shall be obliged to pay interest, which starts to run from the time of delivery of the things or the expiration of the period agreed by the parties, unless the contract or laws provide otherwise.


3. The buyer shall also be obliged to pay any other expenses incidental to the deed of purchase and sale.  


4. Where the laws establish that the sales contract must be concluded in a notarised form and thereafter must be registered in the public register, the buyer shall be obliged to pay the price of purchase into the notary’s deposit account at the time of conclusion of the contract, whereas the notary shall transfer the money to the seller following the registration of the contract in the public register, unless the agreement between the parties provides for a different settlement procedure.


5. Where the buyer has sufficient grounds to believe that due to the seller’s fault an action may be brought against him for revendication of the things sold or encumbrance of rights thereto, he may suspend payment of the price, unless the seller guarantees possible payment of damages to the buyer.


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Article 6.345. Legal consequences of the buyer’s non-performance of the obligation to pay the price


1. Where the movable things have already been delivered to the buyer but the latter fails to pay the sale price, the seller shall have the right to repudiate the contract, notifying the buyer thereof in writing and recover the things.  If only a part of the price has not been paid, the seller may recover only the unpaid part of the thing, provided the thing is divisible. The seller shall retain the right of recovery only until the things are in the country of their delivery or until they have been transferred for consideration to a third party, have not been pledged or subject to the right of usufruct.


2. In case of insolvency of the buyer, the seller may not recover the things for which the price has not been paid if, within a reasonable time, the buyer’s administrator offers to pay the price or presents a guarantee of performance of the obligation.


3. In all other cases not specified in paragraphs 1 and 2 of this Article, the legal consequences provided for in Article 6.314 of this Code shall emerge.


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Article 6.346. Buyer’s obligation to accept the things


1. The buyer must accept the delivered things, unless he is entitled to demand replacement of the things or rescission of the contract.


2. Unless otherwise provided for by laws or the contract, the buyer must take such measures and perform such actions which are necessary, in accordance with the requirements normally expressed, for the due delivery and acceptance of things.


3. Where the buyer, in breach of his obligation, does not accept or refuses to accept things, the seller shall have the right to demand that the buyer accept the things or to refuse to perform the contract.


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Article 6.347. Buyer’s obligation to preserve the things


1. Where the buyer has the right under the law or the contract to return to the seller the things delivered to him, the buyer must properly preserve the things to be returned until their return. In this case, the buyer shall be entitled to retain them until he has been reimbursed his reasonable expenses by the seller.


2. If the things to be returned to the seller have been placed at the buyer’s disposal at their destination, he shall be obliged to return them at his own expense, unless the seller or his agent is present at the destination or provided this does not cause the buyer unreasonable inconvenience or unreasonable expense.


3. If the things are perishable, the rules laid down in paragraph 5 of Article 6.375 of this Code shall apply.


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Article 6.348. Buyer’s obligation to notify the seller of improper performance of the sales contract


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1. The buyer must notify the seller of the breach of any terms and conditions of the contract specifying the quality, quantity, range, completeness, containers and packaging of the things within the time limit established by law or the contract or, where the time limit is not established, within a reasonable time after the breach of a certain term or condition was discovered or, in view of the nature and purpose of the things, ought to have been discovered.


2. In case of failure by the buyer to perform the obligation laid down in paragraph 1 of this Article, the seller shall have the right to refuse, fully or in part, to meet the buyer’s demands to replace the things, to deliver the missing things, to eliminate the defects of the things, to complete the things, to pack the things or deliver them in containers or to replace the containers or packaging, provided that he proves that following the breach of the obligation by the buyer his demands can no longer be met or that meeting of the demands would cause the seller unreasonable expenses compared to those the seller would have incurred if the buyer had duly notified the seller of the breach of the contract.


3. If the seller was aware or ought to have been aware of the non-conformity of the things delivered by him to the terms and conditions of the sales contract, he shall lose the right to invoke the rules laid down in paragraphs 1 and 2 of this Article.


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Article 6.349. Prohibition to dispose of things


1. If the sales contract provides that the title to delivered things is reserved until the payment of full price or fulfilment of other conditions, before the title to the things passes to the buyer, the latter shall have no right to sell or otherwise dispose of the things, unless the purpose of the contract or characteristics of the things determine otherwise.


2. In case of non-fulfilment of the conditions of the sales contract, on which the passing to the buyer of the title to the things is made conditional under the contract, the seller shall have the right to recover the things from the buyer, unless otherwise provided for by the contact.

 


SECTION FOUR

SPECIFICS OF CONSUMER SALES CONTRACTS

 


Article 6.350. Concept of a consumer sales contract


1. Under a consumer sales contract, the seller, being a trader, shall undertake to sell a good to the buyer, being a consumer, while the buyer shall undertake to pay the price. A consumer contract under which goods and services are sold shall be considered a consumer sales contract.


2. The Retail Trade Rules shall be approved by the Government of the Republic of Lithuania or an institution authorised by it.


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Article 6.3501. Scope of application


1. The provisions of this Section shall apply to consumer sales contracts, including contracts relating to goods to be produced.


2. The provisions of this Section shall not apply to contracts for the supply of digital content or digital services other than digital content and digital services which comply with the following requirements:


1) they are incorporated in or inter-connected with a good with digital elements in such a way that without the digital content or digital service the good would not be able to perform its functions;


2) they are supplied together with a good containing digital elements under the same sales contract, irrespective of whether the digital content or digital service is supplied by the seller or another person. In the event of doubt as to whether the supply of incorporated or inter-connected digital content or an incorporated or inter-connected digital service forms part of the sales contract, the digital content or digital service shall be presumed to be covered by the sales contract.


3. The provisions of this Section shall not apply to:


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1) physical media used solely as a means of delivering digital content;


2) goods which are realised in accordance with the procedure laid down by the Code of Civil Procedure during enforcement proceedings and in other cases provided for by laws;


3) the purchase and sale of second-hand goods by public auction;


4) the purchase and sale of live animals.


4. For the purposes of this Section:


1) ‘functionality’ means the ability of goods to perform their functions having regard to their purpose;


2) ‘compatibility’ means the ability of the goods to function with hardware or software with which goods of the same type are normally used, without the need to convert the goods, hardware or software;


3) ‘interoperability’ means the ability of the goods to function with hardware or software different from those with which goods of the same type are normally used;


4) ‘durability’ means the ability of goods, when used normally, to maintain their required functions and performance characteristics.


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Article 6.351. Form of a consumer sales contract

Unless the laws provide otherwise, a consumer sales contract shall be deemed concluded from the moment the buyer chooses the thing to be purchased or expresses his will in any other manner.

 


Article 6.352. Public offer


1. Presentation of the things in advertisements, general circulation catalogues or descriptions shall be deemed a public offer, provided that the principal conditions of the sales contract are specified.


2. Display of things in shop windows, on the counter or in other places of their sale, also demonstration of samples of the things or offering of information on the things on sale (description, catalogues, photographs, etc.) in the place of their sale shall be considered as public offer, irrespective of whether or not the price of the thing or other conditions of the sales contract are indicated, unless the seller explicitly and unambiguously states that certain things are not for sale.


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Article 6.353. Seller’s obligation to inform the buyer


1. The seller must provide the buyer with information in accordance with Articles 6.2286 or 6.2287 of this Code.    


2. The seller must indicate the selling price of each thing or of the things of one kind and the price of a suitable standard unit of a thing. The selling price shall be the final price of a thing or of the quantity of things, including all taxes. A standard unit price shall mean the price, including all taxes, of one kilogram, one litre, one metre, one square metre or one cubic metre of a thing.


3. The selling price of a thing or the price of a standard unit may be omitted where the things:


1) are supplied in the performance of services;


2) are sold by auction or are works of art or antiques.


4. The price of a standard unit of the things may be omitted where:


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1) these are things whose price does not depend on their weight or measurement;


2) the price of the standard unit is the same as the selling price;


3) these are things or groups of things specified in the Rules On Labelling and Indication of Prices of Items (Goods) for Sale. They shall be approved by the Government of the Republic of Lithuania or an institution authorised by it.


5. Only a standard unit price of things must be indicated where things are not pre-packaged and their quantity is determined in the presence of the customer.


6. The selling price and the standard unit price must be conspicuous, unambiguous, clearly legible and easily identifiable.


7. In any advertisement of the thing, the indicated selling price must be accompanied by the standard unit price, save for the exceptions specified in paragraphs 3 and 4 of this Article.


8. The seller must provide the buyer with information about the price reduction applied. Any notice of reduction of the price of a thing must include information on the previous price. The previous price shall be considered to be the lowest price charged by the seller during the 30-day period preceding the price reduction. In cases where the price of a thing is gradually reduced, the previous price shall be considered to be the price of the thing prior to its first reduction. If the thing has been offered to buyers for less than 30 days, the actual time limit for offering the thing to


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thing prior to its first reduction. If the thing has been offered to buyers for less than 30 days, the actual time limit for offering the thing to buyers shall apply. The provisions of this paragraph shall not apply to perishable products or to things which rapidly lose their commercial value.


9. The buyer shall be entitled to examine the things before entering into the contract and to demand that the seller inspect the things in his presence or demonstrate the way they are used, provided this is possible given the nature of the things.


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10. In case of failure by the seller to promptly provide the buyer with an opportunity to obtain the information specified in paragraphs 1 to 8 of this Article at the place of sale of the things, the buyer shall have the right to claim from the seller compensation of damages for any loss occasioned by avoidance to conclude the contract or, where the contract has been concluded, to rescind the contract unilaterally within a reasonable time and to demand refund of the price paid and compensation of other damages. The seller must refund the price paid by the buyer and compensate for other damages without delay, but not later than fourteen days after the date of termination of the contract or the date of receipt of the buyer’s claim for damages.


11. The seller who fails to provide the buyer with an opportunity to receive the relevant information about the things shall be liable for the defects of the things which appeared after the delivery of the things to the buyer, if the buyer proves that the defects appeared because he did not possess the relevant information.

 

Article 6.354. No longer effective from 13 June 2014.


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Article 6.354. No longer effective from 13 June 2014.

 


Article 6.355. Sale of things conditional on acceptance thereof by the buyer within a certain period


1. A consumer sales contract may contain a provision that the buyer is bound to accept the things within a certain period fixed in the contract, within which the seller has no right to sell the things to another buyer.


2. Unless otherwise provided for in the contract and if the buyer fails to arrive within the fixed period or fails to perform other actions necessary for the acceptance of the things within the period fixed in the contract, the buyer shall be deemed to have refused to perform the contract.


3. The seller’s additional expenses incidental to the transfer of the things to the buyer within a certain time period shall be included in the price of the things, unless the contract or laws provide otherwise.


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Article 6.356. Sale of things by sample


1. A consumer sales contract may be concluded on the basis of samples of the things offered to the buyer by the seller (description of the goods, catalogues of goods, models, etc.).


2. Unless otherwise provided for by laws or the contract, a contract by sample shall be deemed concluded when the seller delivers the things to the destination specified in the contract, and in case there is no indication of the destination in the contract, to the consumer’s place of residence.   


3. The buyer shall have the right to repudiate the contract by sample before the transfer of the things. In such case, however, the buyer must reimburse the seller’s reasonable expenses incidental to the performance of the contract prior to the repudiation, unless the contract provides otherwise.

 

Article 6.357. No longer effective from 13 June 2014.


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Article 6.357. No longer effective from 13 June 2014.

 


Article 6.358. Sale of things by vending machines


1. If things are sold by vending machines, the owner of the machines must inform the buyer in a notice on the machine or in any other way about the seller (seller’s name and registered office), mode of operation of the machine, as well as the actions the buyer is bound to perform in order to be delivered the thing and the sequence of the actions.


2. In this case, the contract shall be deemed concluded from the moment the buyer performs the actions required in order to obtain delivery of the thing from the vending machine.


3. In case of non-delivery to the buyer of the thing payment for which has been made, the seller must promptly, upon the buyer’s demand, deliver the thing or restore the price.


4. The rules specified in this Article shall also apply where the machines are intended for the exchange of money, acquisition of token money or exchange of currency unless special rules establish otherwise.


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Article 6.3581.   Requirements for the sale of certain types of things and certain types of places of trading

Requirements for the sale of certain types of things only in designated places of trading (specialised shops, specialised divisions of shops, markets or other places of trading) and requirements for certain types of places of trading may be laid down by law.


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1. Where a consumer sales contract provides that the things must be delivered to the buyer, the seller shall be bound to deliver the things to the place indicated by the buyer or, where there is no indication of the place of delivery, to the buyer’s place of residence.


2. The seller must deliver the things to the buyer by transferring them or their possession to him not later than within thirty days from the conclusion of the contract, unless the parties agree otherwise.


3. The contract shall be deemed performed from the moment of delivery of the things to the buyer or, in the buyer’s absence, from the delivery of the things to the person who presents a receipt or any other document confirming conclusion of the contract or the right to receive the delivered things, unless the contract provides otherwise.


4. Where the seller fails to fulfil his obligation to deliver the things within the time limit set in the contract or in paragraph 2 of this Article, the buyer shall present a demand for the delivery of the things within an additional reasonable period, taking into account the circumstances. Where the seller fails to deliver the things within the additional time limit set by the buyer, the buyer shall have the right to unilaterally terminate the contract.


5. Paragraph 4 of this Article shall not apply where the seller has refused to deliver the things or where the delivery within the time limit laid down in the contract is essential in the light of all the circumstances relating to the conclusion


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to deliver the things or where the delivery within the time limit laid down in the contract is essential in the light of all the circumstances relating to the conclusion of the contract or where, before the conclusion of the contract, the buyer has informed the seller that the delivery of the things within the time limit laid down in the contract is essential.    In these cases, where the seller fails to deliver the things within the time limit set in the contract or in paragraph 2 of this Article, the buyer shall have the right to unilaterally terminate the contract without delay.


6. When the contract is terminated, the seller must immediately reimburse the buyer for any sums he has paid. In addition, the buyer shall have the right to exercise any other remedies established in this Code.


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Article 6.3591. Risk transfer

Where a consumer sales contract provides for the carriage of the things and the seller dispatches the things to the buyer, the risk of accidental perishing of or damage to the things shall pass to the buyer when he or a person designated by him, other than the carrier, accepts the things. Where the things are handed over to the carrier selected by the buyer and the seller has not offered such delivery, the risk provided for in this paragraph shall pass to the buyer when the things are handed over to the carrier.

 

Article 6.360. No longer effective from 13 June 2014.

 

 


Article 6.361. Lease-purchase contract


1. It may be stipulated in the contract that until the passing of ownership of the things to the buyer he remains the lessee of the delivered things (lease-purchase contract).


2. Unless the contract provides otherwise, the buyer shall become the owner of the things upon full payment of the sale price.


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Article 6.362. Replacement and return of things


1. The buyer shall be entitled to replacement of the purchased things, other than food products, at the place of purchase or elsewhere, as indicated by the seller, within fourteen days from the delivery thereof to the buyer, unless the seller has set a longer time period, receiving in exchange analogous things of different measurements, form, colour model or completeness. In case of a difference in prices between the things to be replaced and things offered in replacement, the buyer must pay the seller the recalculated price.


2. If the buyer does not possess things suitable for replacement, the buyer shall have the right to return the things to the buyer within the time period set in paragraph 1 of this Article and recover the money paid. The seller must refund the buyer the price paid by the latter without delay, but not later than within fourteen days from the return of the thing.


3. The buyer’s claim for replacement of the things shall be satisfied provided the things have not been in use, have not been damaged, have retained their fitness for use, and have not lost their merchantability and the buyer is in possession of proof confirming that he purchased the things from the seller.


4. The procedure for replacing and returning the things and the list of non-replaceable and non-refundable things are laid down in the Retail Trade Rules.


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Article 6.363. Quality requirements for goods


1. The seller must deliver to the consumer goods meeting the requirements laid down in this Article.


2. The goods must comply with all of the following requirements, provided that they are applicable:


1) be of the description, quantity and quality, and possess the functionality, compatibility, interoperability and other features, as required by the sales contract;


2) be fit for any particular purpose for which the consumer requires them and which the consumer made known to the seller at the latest at the time of the conclusion of the sales contract, and in respect of which the seller has given acceptance;


3) be supplied with all accessories and instructions, including on installation, as required by the sales contract;


4) be supplied with updates, as required by the sales contract.


3. In addition, the goods must meet all of the following requirements:


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1) be fit for the purposes for which goods of the type would normally be used, taking into account any applicable legal provisions, technical standards or, in the absence of such technical standards, applicable codes of conduct;


2) where applicable, be of the quality such as the sample or model supplied to the consumer by the seller before the conclusion of the contract and correspond to the description of that sample or model;


3) where applicable, be delivered along with any accessories (including packaging, installation or other instructions) which the consumer may reasonably expect to receive;


4) be of the quantity and possess the features, including in relation to durability, functionality, compatibility and security, normal for goods of the same type and which the consumer may reasonably expect, given the nature of the goods and taking into account any public statements made by or on behalf of the seller, or other persons, including the manufacturer, particularly in advertising or labelling the goods;


4. The public statements referred to in point 4 of paragraph 3 of this Article shall not bind the seller if he proves that at least one of the following conditions is met:


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1) the seller was not, and could not reasonably have been, aware of the public statement in question;


2) by the time of conclusion of the contract, the public statement had been corrected in the same way as, or in a way comparable to how, it had been made;


3) the decision to acquire the goods could not have been influenced by the public statement.


5. The seller of goods with digital elements must ensure that the consumer is informed of and supplied with updates, including security updates, that are necessary to ensure the adequate quality of the goods:


1) for the period that the consumer may reasonably expect, given the type, purpose and digital elements of the goods and taking into account the circumstances and nature of the contract, where the sales contract provides for a single act of supply of digital content or a digital service;


2) for the period indicated in paragraph 2 of Article 6.364 of this Code, where the sales contract provides for a continuous supply of digital content or a digital service over a period of time.


6. Where the consumer fails to install, within a reasonable time, updates supplied in accordance with paragraph 5 of this Article, the seller shall not be liable for any lack of conformity resulting solely from the lack of the relevant update, provided that both of the following conditions are met:


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1) the seller informed the consumer about the availability of the update and the consequences of the failure of the consumer to install it;


2) the failure of the consumer to install or the incorrect installation by the consumer of the update was not due to shortcomings in the installation instructions provided to him.


7. Where, at the time of the conclusion of the sales contract, the consumer was specifically informed that a particular characteristic of the goods was deviating from the requirements laid down in paragraphs 3 or 5 of this Article and the consumer expressly and separately accepted that deviation when concluding the contract, it shall be considered that the goods are of adequate quality.


8. The seller shall be liable for any lack of conformity resulting from the incorrect installation, fitting or assembly of the goods in the following cases:


1) the installation is the subject matter of the sales contract and it has been carried out by or under the responsibility of the seller;


2) the installation had to be carried out by the consumer and was not properly done due to inaccurate installation instructions provided by the seller and, in case of improper installation of goods with digital elements, by the seller or supplier of the digital content or digital service.


9. Where a violation of intellectual property or any other rights of other persons prevents or limits the consumer’s use of the goods, the consumer shall be entitled to the remedies in accordance with the provisions of Article 6.3641 of this Code.


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1. The seller shall be liable to the consumer for any non-conformity with the quality requirements of the goods, including goods with digital elements, at the time of delivery of the goods and which becomes apparent not later than within two years from the delivery of the goods (statutory guarantee).


2. Where the contract for the sale of goods with digital elements provides for a continuous supply of digital content or a digital service over a period of time, the seller shall be liable for any defects in the digital content or digital service which occur or become apparent within two years of the delivery of the goods with digital elements. Where the contract provides for a continuous supply of the digital content or digital service for more than two years, the seller shall be liable for any defects in the digital content or digital service which occur or become apparent during the period of supply of the digital content or digital service provided for in the contract.


3. The seller and the consumer may agree on a shorter term of liability of the seller for second-hand goods than laid down in paragraphs 1 and 2 of this Article, but this period may not be less than one year.


4. A defect in goods, including goods with digital elements, which becomes apparent within one year of its delivery shall be deemed to have existed at the time of delivery, unless the seller proves otherwise or where this is incompatible with the nature of the goods or the nature of the defect.


5. Where the contract


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unless the seller proves otherwise or where this is incompatible with the nature of the goods or the nature of the defect.


5. Where the contract for the sale of goods with digital elements provides for a continuous supply of digital content or a digital service over a period of time, the burden of proof with regard to whether the digital content or digital service is of adequate quality during the period specified in paragraph 2 of this Article shall shall lie with the seller if the defect becomes apparent during that period.


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Article 6.3641. Consumer rights when the goods are of inadequate quality


1. Where the goods do not meet the quality requirements, the consumer shall have the right, in accordance with the conditions laid down in this Article, to demand that the adequate quality of the goods be ensured, a proportional reduction in the price of the goods or to unilaterally terminate the sales contract.


2. In order to ensure the adequate quality of the goods, the consumer shall have the right to choose to require repair or replacement of the goods, unless it would be impossible to comply with the requirement or it would entail disproportionate costs for the seller compared to the costs of complying with the other requirement, taking into account all the circumstances, including:


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1) the value of the goods, if the goods had no defects;


2) the significance of the defects/non-conformity of the goods;


3) whether the application of another requirement would not cause inconvenience to the consumer.


3. The seller shall have the right to refuse to ensure the adequate quality of the goods if repair or replacement of the goods is impossible or would entail disproportionate costs for the seller, taking into account all the circumstances, including those referred to in points 1 and 2 of paragraph 2 of this Article.


4. The consumer shall have the right to demand a proportionate reduction in the price of the goods or to terminate the sales contract in accordance with Article 6.3643 of this Code where:


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1) the seller has not repaired or replaced the goods or the repair or replacement of the goods does not meet the requirements laid down in paragraphs 2 and 3 of Article 6.3642 of this Code, or the seller has refused to ensure the adequate quality of the goods in accordance with paragraph 3 of this Article;


2) the defect of the goods has occurred despite the seller’s attempts to ensure the quality of the goods;


3) the defect of the goods is of a serious nature;


4) the seller has declared, or it is clear from the circumstances, that the seller will not ensure the adequate quality of the goods within a reasonable time, or without significant inconvenience for the consumer.


5. The consumer shall not have the right to terminate the contract where the defect is minor. The burden of proof with regard to whether the defect is minor shall lie with the seller.


6. The consumer shall have the right to suspend payment of the price or part of the price of the goods until the seller performs the seller’s obligations under this Section.


7. The consumer shall be entitled to compensation for damage caused by the inadequate quality of the goods.


8. In order to exercise the rights set out in this Article, the consumer must inform the seller of the non-conformity with the quality requirements of the goods not later than within two months from detection of the non-conformity. The burden


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non-conformity with the quality requirements of the goods not later than within two months from detection of the non-conformity. The burden of proving that the consumer has missed that time limit shall lie with the seller.


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Article 6.3642. Repair or replacement of the goods


1. The seller shall have an obligation to ensure that the goods are repaired or replaced in compliance with the following requirements:


1) free of charge, i.e. without charging for the costs necessary to repair or replace the goods, including costs of postal services, transport services, work or materials;


2) within a reasonable time from the moment the seller has been informed by the consumer about the inadequate quality of the goods;


3) without causing any significant inconvenience to the consumer, taking account of the nature of the goods and the purpose for which the consumer required the goods.


2. The consumer shall return the goods to the seller for repair or replacement. The costs of returning the goods shall be borne by the seller.


3. If the goods have been properly installed, fitted or assembled before the defect becomes apparent, taking into account their nature and purpose, the seller’s obligation to repair or replace the goods shall include the removal of the goods and the installation of the repaired or replaced goods or covering the costs of removing and installing the goods.


4. The seller shall not be entitled to demand payment from the consumer for the normal use of the replaced goods during the period prior to their replacement.


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Article 6.3643. Price reduction and termination of the sales contract


1. The price reduction must be proportionate to the decrease in the value of the goods received by the consumer compared to the value that the goods would have in the absence of defects.


2. The consumer shall exercise his right to terminate the sales contract by submitting to the seller a statement expressing his decision to terminate the sales contract.


3. Where only part of the goods delivered under the sales contract become defective and there are grounds for terminating the contract laid down in Article 6.3641 of this Code, the consumer shall be entitled to terminate the sales contract only in respect of defective goods and other directly related goods acquired together.


4. In the event of termination of the sales contract by the consumer:


1) the consumer must return the goods to the seller at the seller’s expense;


2) upon receipt of the returned goods or proof provided by the consumer that the goods have been dispatched, the seller must, within fourteen days at the latest, return the price paid for the goods to the consumer.


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1. ‘Quality guarantee (commercial guarantee) of the goods’ means the obligation of the seller or manufacturer (guarantor) to the consumer, additional to the statutory guarantee of the goods, to refund the price paid or to replace, repair or provide maintenance services of the goods if the goods do not meet the conditions or other requirements set out in the quality guarantee document or advertising published at the time of conclusion of the contract or prior to the conclusion of the contract or other requirements not related to those laid down in Article 6.363 of this Code. For the purposes of this Article, the ‘producer’ means the manufacturer of goods, the importer of goods into the territory of the Union or any person purporting to be a producer by placing his name, trade mark or other distinctive sign on the goods.


2. The quality guarantee of the goods shall bind the guarantor in accordance with the terms and conditions set out in the quality guarantee document and related advertising published at the time of the conclusion of the contract or before the conclusion of the contract. Unless other legal acts provide otherwise, where the producer provides the consumer with a quality guarantee as to the durability of the goods during a given period, the producer shall be directly liable to the consumer for the repair or replacement of the goods in accordance with Article 6.3642 of this Code for the duration of that guarantee. The producer may offer more favourable conditions to the consumer in the quality guarantee document for the


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of this Code for the duration of that guarantee. The producer may offer more favourable conditions to the consumer in the quality guarantee document for the durability of the good.


3. Where the terms and conditions set out in the quality guarantee document are less favourable to the consumer than those set out in the related advertising, the terms and conditions set out in the advertising shall apply, unless the advertising has been corrected prior to the conclusion of the contract, in the same or a similar way to that in which it was published.


4. The quality guarantee document must be made available to the consumer on a durable medium at the latest on delivery of the goods. The quality guarantee document must be be expressed clearly and intelligibly. It must contain all of the following information:


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1) a clear statement that, as a result of the inadequate quality of the goods, the consumer is entitled by law to require the seller to ensure the free exercise of the rights set out in Article 6.3641 of this Code and that the quality guarantee of the goods does not affect the exercise of those rights;


2) the name and address of the guarantor;


3) the procedure to be followed by the consumer to ensure that the quality guarantee of the goods is fulfilled;


4) the goods covered by the quality guarantee;


5) the terms and conditions of the quality guarantee of the goods.


5. The consumer shall have the right to claim the quality guarantee of the goods regardless of the fact that it has been granted in breach of the requirements laid down in paragraph 4 of this Article.


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Article 6.365. No longer effective from 13 June 2014.

 

Article 6.366. No longer effective from 13 June 2014.

 

Article 6.367. No longer effective from 13 June 2014.

 

Article 6.368. No longer effective from 13 June 2014.


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1. The parties to timeshare, long-term holiday product, resale or exchange contracts shall be the seller, a person acting for purposes relating to business or profession or any person acting on behalf of, or for the benefit of, the seller, and the buyer, a natural person acting for purposes other than business or profession.


2. ‘Timeshare contract’ means a contract concluded for a duration of more than one year whereby the buyer, for consideration, acquires the right to use overnight accommodation at a given time for more than one period of occupation.


3. ‘Long-term holiday product contract’ means a contract concluded for a duration of more than one year whereby the buyer, for consideration, acquires the right to obtain discounts or other benefits in respect of accommodation separately or in combination with travel or other services.  Payments under long-term holiday product contracts may be made only in annual instalments of equal value in accordance with the payment schedule. No later than fourteen days before the date of payment of each instalment, the seller shall, using a durable medium accessible to the buyer, notify the buyer of the obligation to pay an annual instalment.    


4. By means of a resale contract, the seller shall, for consideration, assist the buyer in buying or selling timeshare rights or a long-term holiday product.


5. When concluding an exchange contract, the buyer


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assist the buyer in buying or selling timeshare rights or a long-term holiday product.


5. When concluding an exchange contract, the buyer shall, for consideration, join a timeshare exchange system which allows an access to overnight accommodation or other services in exchange for giving other persons temporary access to the rights deriving from a timeshare contract.


6. When determining the period of validity of a timeshare or long-term holiday product contract, consideration shall also be given to the implied terms of the contract with regard to renewal or extension of the period of validity of the contract.


7. A timeshare right or a long-term holiday product may not be offered or sold as investment services.


8. Within a reasonable period of time before the conclusion of timeshare, long-term holiday product, resale or exchange contracts, the seller must provide the buyer, free of charge and on a durable medium accessible to him, with the clear and accurate information provided by the Government or an institution authorised by it on the terms of the contracts. Buyer information forms shall be approved by the Government or an institution authorised by it.


9. The buyer information referred to in paragraph 8 of this Article shall be an integral part of the contract and may not be altered unless the parties expressly agree otherwise. The seller shall have the right to unilaterally alter the information referred to in paragraph 8 of this Article only where the alterations are made due to circumstances outside the


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The seller shall have the right to unilaterally alter the information referred to in paragraph 8 of this Article only where the alterations are made due to circumstances outside the seller’s will, which the seller could not have foreseen and whose consequences could not have been avoided even if every care had been taken. In addition to the information referred to in paragraph 8 of this Article, the contract shall also indicate the identity of each party, their place of residence/registered office, and the date and place of conclusion of the contract; the contract must be signed by the parties. In all cases, before the conclusion of the contract the terms of the contract and the possible amendments thereto referred to in this paragraph must be made available to the buyer on a durable medium accessible to him and clearly indicated in the contract. The seller must give one copy of the contract to the buyer at the time of the conclusion of the contract.


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10. Prior to the conclusion of the contract, the seller must clearly inform the buyer of the right to repudiate the contract, the repudiation periods set out in paragraphs 1, 2 and 3 of Article 6.370 of this Code and the prohibition of advance payments provided for in paragraph 8 of Article 6.370 of this Code. The buyer shall sign under the above-mentioned terms of the contract separately in the form referred to in paragraph 8 of this Article.


11. The contract presented to the buyer must be accompanied by a repudiation form laid down in legal acts and approved by the Government or an institution authorised by it.


12. The information referred to in paragraph 8 of this Article shall be submitted to the buyer and the contract shall be drawn up, at the choice of the buyer, in the official language or one of several official languages of the Member State in which the buyer resides or the nationality of which the buyer holds, provided this language is also an official language of the European Union. Where the seller carries out his activities in the Republic of Lithuania, the contract shall also be drawn up in Lithuanian. For the purposes of this paragraph, the term ‘Member State’ means a Member State of the European Union or a Member State of the European Economic Area.


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13. Any advertisement offering a timeshare right, a long-term holiday product, or the conclusion of resale or exchange contracts must inform where and how the buyer can obtain the information referred to in paragraph 8 of this Article on the terms of the contract. Any invitation to an event that will involve offers to conclude timeshare, long-term holiday product, resale or exchange contracts must clearly state the commercial purpose and nature of the event. During such an event, the buyer must be given the opportunity to obtain, at any time, the information referred to in paragraph 8 of this Article on the terms of the contracts.


14. Where the subject matter of timeshare, long-term holiday product, resale or exchange contracts is an immovable thing situated in the Republic of Lithuania or the contract is not directly related to an immovable thing but the seller carries out his activities in the Republic of Lithuania or redirects, by any means, these activities to the Republic of Lithuania, this Article and Article 6.370 of this Code shall apply irrespective of the fact that foreign law is applicable to the contract.


15. Any waiver of the buyer’s rights granted to him in accordance with this Article and Article 6.370 of this Code shall not be valid.


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Article 6.370. Buyer’s right of repudiation in the case of timeshare, long-term holiday product, resale or exchange contracts


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1. The buyer shall have the right, without giving any reason, to unilaterally repudiate timeshare, long-term holiday product, resale or exchange contracts by informing, on a durable medium accessible to him, the seller thereof within fourteen days from the date of conclusion of the respective contract, including the preliminary contract, or from the date of receipt of such a contract, whichever date is later. When repudiating the contract, the buyer shall have the right to use the form specified in paragraph 11 of Article 6.369 of this Code. Where an exchange contract is offered to the buyer together with a timeshare contract, both contracts shall be subject to the same period of repudiation of fourteen days from the date of conclusion of the timeshare contract, including the preliminary contract, or from the date of receipt of such a contract, whichever date is later.


2. Where the buyer has not been provided with the information referred to in paragraph 8 of Article 6.369 of this Code on the terms of the contract or the provided information does not include all the mandatory particulars, the buyer shall have the right to unilaterally repudiate the contract within three months and fourteen days from the date of conclusion of the contract, including the preliminary contract, or from the date of receipt of such a contract, whichever date is later, in accordance with the procedure laid down in paragraph 1 of this Article. Where the information on the terms of the contract containing all the mandatory particulars is served on the buyer within


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procedure laid down in paragraph 1 of this Article. Where the information on the terms of the contract containing all the mandatory particulars is served on the buyer within three months from the date of conclusion of the contract, including the preliminary contract, or from the date of receipt of such a contract, whichever date is later, the buyer shall have the right to repudiate the contract, including the preliminary contract, within fourteen days from the date of serving the information on the terms of the contract on him.


3. Where at the time of conclusion of the contract the buyer has not been provided with a form of a repudiation of the contract, as laid down in legal acts, the buyer shall have the right to unilaterally repudiate the contract within one year and fourteen days from the date of conclusion of the contract, including the preliminary contract, or from the date of receipt of such a contract, whichever date is later, in accordance with the procedure laid down in paragraph 1 of this Article. Where the form of a repudiation of the contract containing all the mandatory particulars is served on the buyer within one year from the date of conclusion of the contract, including the preliminary contract, or from the date of receipt of such a contract, whichever date is later, the buyer shall have the right to repudiate the contract within fourteen days from the date of serving the form of a repudiation of the contract on him.


4. Where the buyer exercises the right to repudiate timeshare, long-term


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form of a repudiation of the contract on him.


4. Where the buyer exercises the right to repudiate timeshare, long-term holiday product, resale or exchange contracts when the given rights are paid for fully or in part by a consumer credit granted to the buyer by the seller or a third party in accordance with the contract concluded between the seller and the third party, the buyer shall have the right to terminate the consumer credit agreement without incurring any costs.


5. Upon exercise of the right to repudiate a timeshare or long-term holiday product contract, all additional exchange or other contracts, whereby the buyer receives services relating to the timeshare or long-term holiday product contract from the seller or third parties under agreement with the seller, shall also terminate. The buyer may not be obliged to pay the costs due to the termination of the additional contracts referred to in this paragraph.


6. When the buyer exercises the right to repudiate a contract, as laid down in this Article, the obligations of the parties to perform the contract shall terminate and the buyer shall not incur any costs or pay for the services provided prior to the date of a repudiation of the contract.


7. The buyer’s right to repudiate a contract provided for in this Article shall not be subject to any restrictions in the form of additional obligations or payments or to any limitation or abolition.


8. Until the end of the period when the buyer has the


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in the form of additional obligations or payments or to any limitation or abolition.


8. Until the end of the period when the buyer has the right to repudiate a timeshare, long-term holiday product or exchange contract or until the performance of a resale contract or its expiry otherwise, the seller or the third party shall be prohibited from accepting any advance payment from the buyer. An advance payment shall be considered to be the issuing of the buyer’s guarantee, an amount reserved in the bank account, the acknowledgement of the debt, and the payment of any amount of money to the seller or the third party.


9. Where a long-term holiday product contract is concluded, the buyer shall, after the payment of the second or subsequent instalment, have the right to terminate the contract by notifying the seller thereof not later than within fourteen days of receipt of the notice of payment without paying any fine and incurring any additional costs.


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SECTION FIVE

SPECIFICS OF WHOLESALE CONTRACTS

 


Article 6.371. Concept of a wholesale contract

Under the wholesale contract, the seller, who is the person engaged in trade, or his agent shall undertake to deliver, at a specific time, things manufactured or purchased by him to the buyer under the right of ownership/trust for the latter’s business needs or other needs not related to personal, family or household need, whereas the buyer shall undertake to pay the price.

 


Article 6.372. Time limits for the delivery of things


1. Where a long-term contract for the sale of things has been concluded under which things are delivered in lots and the contract does not provide for the time limits for the delivery of things, the lots of things must be delivered on a monthly basis in equal parts, unless a different conclusion is to be drawn having regard to the custom of the trade or the essence of the obligation.


2. In case of failure by the seller to deliver all things within the specified time limit, the things that have not been delivered by the due date must be delivered within the remaining time limit(s), except where the contract provides otherwise.


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Article 6.373. Delivery of things


1. If the means of transportation and terms of transportation of the things by the seller to the buyer are not specified in the contract, the seller shall be bound to arrange for carriage of the things by means of transportation appropriate in the circumstances and according to the usual terms for such transportation, unless it is reasonable to infer otherwise in view of the custom of the trade or the essence of the obligation.


2. The contract may stipulate the buyer’s obligation to collect the things from the seller’s place of business or any other place (warehouse, railway station, etc.).

 


Article 6.374. Acceptance of things


1. The buyer must take the necessary measures to ensure that all delivered things are accepted in due manner within the time limit fixed in the contract or, where the time limit is not fixed, within a reasonable time, and to examine the quantity and quality of the things in accordance with the procedure provided for in the contract and promptly notify the seller of the discovered defects and deficiency in the quantity.


2. Where the buyer has to collect the things from the carriers’ organisation, he must check conformity of the things with the information contained in the shipping documents and accept the things in accordance with the regulations of that means of transportation.


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Article 6.375. Preservation of the unaccepted things


1. The buyer who refuses to accept the things delivered to him under the contract must preserve the things (responsible preservation) and promptly notify the seller of his refusal.


2. Upon receipt of the notification specified in paragraph 1 of this Article, the seller must, within a reasonable period of time, take the things back or inform the buyer what he should do with them. In case of failure by the seller to do so, the buyer shall have the right to re-sell the things or return them to the seller.


3. The seller must reimburse the buyer for the necessary expenses incidental to the preservation, sale or return of the things. Having sold the things, the buyer shall make the necessary deduction of expenses incidental to the sale and preservation of the things and restore the balance to the seller.


4. In case of refusal by the buyer to accept the things in the absence of the grounds provided for by law or the contract, the seller shall have the right to demand from the buyer payment of the full price.


5. In case the things are perishable and the application of the rules laid down in paragraph 2 of this Article is not possible for the said reason, the buyer may re-sell the things without waiting for the seller’s response.


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Article 6.376. Taking possession of the things


1. In case the buyer is bound under the contract to take possession of the things at the seller’s place of business or any other place, when taking possession of the things at the place of their delivery the buyer must examine their quantity and quality, unless the contract provides otherwise.


2. If the buyer fails to take possession of the things within the time limit fixed in the contract or, where the time limit is not fixed, within a reasonable time period after the seller has notified that the things may be taken possession of, the seller shall have the right to repudiate the contract or demand payment of the price and reimbursement of expenses incidental to preservation of the things.


3. If the buyer is bound to indicate the things he is purchasing by specifying their volume, form or otherwise, but fails to do so within a reasonable time, the seller may himself do this having regard to the needs of the buyer he is aware of.

 


Article 6.377. Containers and packaging


1. Unless otherwise provided for in the contract, the buyer must return to the seller, at his own expense, the reusable containers and packaging in which the things were delivered.


2. Other containers shall be returned only in cases provided for in the contract.


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Article 6.378. Sale of things of inadequate quality or completeness

Where the things delivered by the seller are of inadequate quality or completeness, the buyer shall have the right to make demands specified in Articles 6.334 and 6.341 of this Code, except in cases where the seller, upon receipt of the buyer’s notification, promptly replaces the things of inadequate quality with quality things or delivers the product in its completeness.


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Article 6.379. Unilateral rescission of the contract


1. The buyer shall have the right to unilateral rescission of the contract in the event of a fundamental breach thereof by the seller.


2. A breach of the contract committed by the seller shall be deemed fundamental if:


1) the delivered things are of inadequate quality and their defects cannot be eliminated within the time period the buyer finds acceptable;


2) the seller has missed more than twice the time limit set for the delivery of the things where under the long-term contract the things had to be delivered within the fixed time limits.


3. The buyer shall be considered to have committed a fundamental breach of the contract and the seller shall acquire the right to a unilateral rescission of the contract if the buyer:


1) has failed more than twice to make timely payment for the things delivered when due;


2) has failed more than twice to take possession of the things delivered within the set time limits.

 


SECTION SIX

PUBLIC PROCUREMENT CONTRACTS


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SECTION SIX

PUBLIC PROCUREMENT CONTRACTS

 


Article 6.380. Concept of a public procurement contract

Under a public procurement contract, a state or municipal institution or a state or municipal enterprise, agency or organisation shall purchase things or make payment for works or services (including lease) with the resources of the state budget, municipal budgets, State Social Insurance Fund budget and other state or municipal funds for the purpose of meeting the needs of the State or municipality, or the needs of state or municipal institutions, enterprises, agencies and organisations.

 


Article 6.381. Specifics of conclusion of public procurement contracts

Public procurement contracts shall be concluded by holding competitive bidding, except where the laws establish otherwise.

 


Article 6.382. Regulation of public procurement contracts

The provisions of this Code shall apply to public procurement contracts to the extent it is not established otherwise by other laws.

 


SECTION SEVEN

ENERGY SALES CONTRACTS


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Article 6.383. Concept of an energy sales contract


1. Under an energy (or energy resources) sales contract, the energy supply enterprise shall undertake to supply the subscriber, through the connected energy supply network, with the amount of energy of the type provided for in the contract, whereas the subscriber shall undertake to pay for the supplied energy and comply with the energy consumption regime specified in the contract, ensuring safety of exploitation of the energy supply network and maintenance in good condition of the installations and facilities owned by him.


2. An energy sales contract shall be concluded with the subscriber only provided he is in possession of energy consuming devices and internal network which meet the prescribed technical requirements and which are connected to the energy supply network and where energy metering devices are installed.  In the case of the construction of new energy supply networks, advance contracts for the purchase and sale of energy shall not be subject to the requirements of this paragraph. In cases set out by legal acts, an energy sales contract may be concluded with a subscriber also where there is no direct accounting of the above energy resources between the energy supplier and subscriber.


3. An energy sales contract shall be a public contract (Article 6.161 of this Code).


4. Where an energy sales contract is a consumer contract, the provisions of this Code regulating consumer contracts and consumer sales contracts shall apply mutatis mutandis to an energy sales contract.


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Article 6.384. Conclusion and extension of an energy sales contract


1. Where under the contract the subscriber is a natural person who uses energy for domestic consumption, the contract shall be deemed concluded from the moment the consumer’s equipment is connected to the energy transmission network. The contract shall be considered concluded for the term of unlimited duration, unless the contract provides otherwise.


2. If, before the expiration of the term of the contract, neither of the parties declares that the contract will be terminated or modified or that a new contract will be concluded, the energy sales contract concluded for a term of limited duration shall be deemed extended for the same period and under the same conditions.


3. If, before the expiration of the contract’s term of limited duration, one of the parties to the contract proposes to conclude a new contract, pending the conclusion of the new contract, the conditions of the previous contract shall apply to the relations between the parties.


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Article 6.385. Energy amount and rates (tariffs)


1. The energy supply enterprise must sell to the subscriber the amount of energy provided for in the contract in compliance with the energy supply regime agreed between the parties. The amount of the energy supplied and consumed shall be determined on the basis of energy meter readings or in any other manner specified in the contract.


2. The contract may provide for the subscriber’s right to change the amount of energy received provided that the subscriber would compensate for the losses incurred by the energy enterprise due to the requirement to ensure the supply of a larger amount of energy not provided for in the contract.   


3. The subscriber, in the case of a natural person who is a consumer using energy for domestic consumption, may use as much energy as he needs. 


4. Energy rates (tariffs) shall be fixed in accordance with the procedure established by law.


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Article 6.386. Energy quality


1. Energy quality must conform to the standards of the contract and quality standards as well as to the requirements established by other regulations.


2. If the energy supply enterprise violates the energy quality requirements, the subscriber shall be entitled to refuse to pay for the energy. However, the energy supply enterprise in this case shall be entitled to request that the subscriber compensate for the value of what the subscriber saved without a legal justification by using energy.


3. The subscriber shall be entitled to compensation of damages incurred by him due to the supply of energy of inadequate quality.

 


Article 6.387. Buyer’s duties relating to the maintenance of installations


1. The subscriber must ensure the adequate condition of the energy supply network, other facilities and installations owned by him and safety of their operation, also comply with the established energy consumption regime and notify the energy supply enterprise without delay of any accident, fire, damage of energy metering equipment or any other violations related to the use of energy.


2. In the case of a natural person who is a consumer using energy for domestic consumption, the adequate technical condition and safe operation of the energy supply network, energy metering equipment and their safe use must be ensured by the energy supply enterprise, unless otherwise provided for by the contract or laws.


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Article 6.388. Payment for energy


1. The subscriber shall pay for the amount of energy actually used according to the readings of the energy meters, unless the contract establishes otherwise.


2. Unless legal acts provide otherwise, payment procedure shall be established by agreement between the parties.

 


Article 6.389. Sub-subscriber


1. The subscriber may, without exceeding the capacity permitted for use, transmit to another person (sub-subscriber) electricity received from the energy supply enterprise without the latter’s consent.


2. The subscriber may transmit heat, cold and hot water to another person (sub-subscriber) only provided the supply enterprise gives its consent thereto.


3. In the cases provided for in paragraphs 1 and 2 of this Article, the subscriber shall remain liable to the energy supply enterprise under the energy sales contract.


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1. If under the energy sales contract the subscriber is a natural person who is a consumer using energy for domestic consumption, he shall be entitled to unilateral rescission of the contract notifying the energy supply enterprise thereof, provided that he has fully paid for the energy consumed. The consumer residing in a multi-apartment house may exercise this right only if such an act will not be detrimental to the residents of other apartments in that house.


2. If the subscriber is a legal person, the energy supply enterprise shall be entitled to unilaterally refuse to perform the contract on the grounds provided for in Article 6.217 of this Code unless the contract provides otherwise.


3. Termination, suspension or limitation of energy supply shall only be allowed by agreement between the parties, except in cases where state energy supervisory authorities identify such deficiencies in the subscriber’s installations which may cause an accident or endanger human life and safety.   The energy supply enterprise must notify the subscriber in advance of the termination, suspension or limitation of energy supply.


4. Termination, suspension or limitation of energy supply without coordination with the subscriber or without prior notice to the subscriber shall be allowed only in cases when this is necessary in order to prevent an accident or as a response to an accident in the energy supply network. However, in such cases, the subscriber must also be promptly notified of the termination, suspension or limitation of energy supply.


5. Termination of electricity and heat, hot


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the subscriber must also be promptly notified of the termination, suspension or limitation of energy supply.


5. Termination of electricity and heat, hot water and gas supply to multi-apartment dwellings due to arrears in payment of individual apartment owners/tenants for the electricity, gas and water consumed shall be prohibited.


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Article 6.391. Scope of application

The provisions of this Article shall apply with respect to supply of electricity, heat energy, gas, oil and oil products, water and other forms of energy through the distribution network, unless the laws establish otherwise or unless, taking into account the essence of the obligation, a different conclusion should be made.

 


SECTION EIGHT

CONTRACTS FOR THE SALE OF AN IMMOVABLE THING

 


Article 6.392. Scope of application


1. The provisions of this Section shall apply with respect to the purchase and sale of land, buildings, residential houses, apartments, and other immovable things.


2. The provisions of this Section shall apply to the purchase and sale of enterprises to the extent that the provisions of Section Nine of this Chapter (Articles 6.402 to 6.410 of this Code) do not establish otherwise.


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Article 6.393. Form of a contract


1. A sales contract of an immovable thing must be in a notarial form, with the exception of the sales contracts of an immovable thing concluded in the course of bankruptcy proceedings.


2. Non-compliance with the requirements of the form shall render the contract null and void.


3. A sales contract of an immovable thing may be invoked against third persons only in the event of it being registered in the public register in accordance with the procedure established by laws.


4. Ownership of an immovable thing shall pass to the buyer from the moment of delivery of the thing. The fact must be registered in the document executed in accordance with the procedure established in Article 6.398 of this Code. If any of the parties avoids registering the fact of passing of ownership of an immovable thing, the court may, at the request of the other party, adopt a decision on the registration of the contract. In such case, the contract shall be registered on the basis of the court decision. The party who has unjustifiably avoided registering the passing of ownership right must compensate the other party for the damages incurred by reason thereof.


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1. Under the sales contract of a building, installation or other immovable thing, the seller shall transfer to the buyer, together with the right of ownership to the thing, the rights specified in paragraphs 2 and 3 of this Article to the part of the land plot which is occupied by the thing and which is necessary for the thing to be fit for the purpose it would ordinarily be used.


2. Where the seller is the owner of the land plot on which the immovable thing being sold is situated, the buyer shall be transferred the rights of ownership to the land plot or the right of land lease or right of superficies, depending on what is provided for in the contract. A contract in which the buyer’s rights to the land plot are not contemplated may not be certified by a notary and, if certified, shall be null and void.


3. Where the owner of the immovable thing is not the owner of the land plot on which the thing is situated, he may sell the immovable thing without the consent of the owner of the land plot only provided that this is in compliance with the conditions of use of the land plot laid down by laws and/or the contract. In the event of sale of such an immovable thing, the buyer shall acquire the right to use the appropriate part of the land plot under the same terms and conditions as the seller of the immovable thing.


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Article 6.395. Rights to an immovable thing in the event of sale of a land plot


1. In the event of sale of a land plot containing buildings, construction works, installations, plantations or other objects, the issue of passing of the right of ownership thereto must be contemplated in the contract.    If the issue is not contemplated in the contract, the right of ownership to the buildings, construction works, installations, plantations or other objects situated on the land plot shall be deemed to have passed to the buyer of the land plot.


2. If the land plot containing buildings or other immovable things belonging to the seller by the right of ownership is sold without transferring to the buyer the rights of ownership to the above-mentioned immovable thing, the seller shall retain the right to use the part of the land plot which is occupied by the immovable thing and is necessary for the use thereof by the right of superficies or any other right and under the terms and conditions provided for in the contract.


3. Where the seller’s right to use a part of the land plot and the conditions of use are not contemplated in the sales contract, the servitude shall be established for the seller with respect to the part of the land plot which is occupied by an immovable thing and which is necessary for it to be used for the purpose it would ordinarily be used.


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Article 6.396. Subject matter of the contract


1. The sales contract of an immovable thing must contain the information relating to the immovable thing which the seller is obliged to transfer to the buyer under the contract, also the indication of the location of the thing in the relevant land plot or the location of the immovable thing being sold in another immovable thing.


2. If the information specified in paragraph 1 of this Article is not presented in the contract, the contract may not be certified by a notary and, if certified, shall be null and void.


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Article 6.397. Price


1. The price of the immovable thing being sold must be indicated in the sales contract of the immovable thing. The regulations set forth in paragraphs 2 to 6 of Article 6.313 of this Code shall not apply to sales contracts of the immovable thing. If the price is not indicated in the contract, the contract shall be deemed not to have been concluded.


2. The price of the land plot being sold shall include the price of the buildings, construction works, installations, plantations and other objects located on the plot, unless the laws and contract provide otherwise.


3. Where only the price of the area or any other measurement unit of the thing is indicated in the sales contract of an immovable thing, the price of the entire thing shall be determined according to the size of the immovable thing actually transferred to the buyer.


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Article 6.398. Transfer of a thing


1. Transfer and acceptance of an immovable thing must be executed by the transfer and acceptance deed or any other document provided for in the contract, signed by the seller and buyer.


2. Unless otherwise provided for by the laws or contract, the seller’s obligation to transfer the immovable thing shall be deemed performed from the moment of transfer of the thing to the buyer and signing of the relevant document regarding the transfer thereof.


3. Where one of the parties to the contract avoids signing the document of transfer specified in the contract, it shall be deemed that the buyer refuses to accept and the seller refuses to transfer the thing.


4. The circumstance that the buyer has accepted an immovable thing which does not conform with the terms and conditions of the sales contract shall not constitute grounds for releasing the seller from liability for improper performance of the contract even in the cases where such non-conformity was contemplated in the document of transfer of the thing.

 


Article 6.399. Transfer of a thing of inadequate quality

Where, under the sales contract of an immovable thing, the seller transfers to the buyer a thing of inadequate quality, the provisions of Article 6.334 of this Code shall apply, except with respect to the buyer’s right to request replacement of the thing of inadequate quality with a thing of adequate quality.


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Article 6.400. Conditions and content of sales contracts of a residential house or apartment

In addition to the conditions provided for in Articles 6.396 and 6.397 of this Code, the essential condition of the sales contract of a residential house or apartment, which at the moment of its sale is inhabited by the persons who, under laws or contracts, retain the right to use the residential premises after the change of owner thereof, shall be the listing (list) of such persons and the content of their right to use the residential premises which are being sold.


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Article 6.401. Contract for the sale of a planned residential house or apartment


1. The buyer, being a natural person, may conclude a preliminary sales contract of a planned residential house or apartment whereby the seller, being a legal person, undertakes, by itself or upon enlisting the help of other persons, to build the residential house or apartment provided for in the preliminary contract and thereafter to conclude a sales contract of the residential house or apartment with the buyer, whereas the buyer undertakes to purchase the built residential house or apartment for the price indicated in the preliminary contract.


2. The following must be indicated in the preliminary contract:


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1) the buyer’s right to repudiate the preliminary contract within ten days from the date of conclusion of the contract;


2) the price of the planned residential house or apartment and the terms and conditions of its revision or changing;


3) the description of the subject matter of the contract and the works to be  performed by the seller;


4) the time limits for the construction of the residential house or apartment;


5) encumbrances of the right to the residential house or apartment (both existing and future);


6) the contractor, architect, engineer and other persons who will carry out and supervise the construction work;


7) the legal status of the land plot on which the house or apartment will be built and the rights to the land plot of the buyer of the residential house or apartment.


3. Where the preliminary contract provides for the seller’s right to claim indemnity from the buyer for the losses the seller would suffer if the buyer exercised the right specified in point 1 of paragraph 2 of this Article, the amount of indemnity may not exceed one-fifth of the price of the immovable thing indicated in the sales contract.


4. The project of the residential house or apartment, its estimate and other documents shall constitute an inseparable part of the preliminary contract.


5. It may also be stipulated in the preliminary contract that the buyer finances the construction of the residential


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part of the preliminary contract.


5. It may also be stipulated in the preliminary contract that the buyer finances the construction of the residential house or apartment under the conditions laid down in the contract whereas the seller shall perform the functions of the customer. In this case, the buyer shall acquire the right of full ownership of the residential house or apartment upon payment of the full construction price provided for in the preliminary contract.


6. Unless otherwise provided for in the preliminary contract, one party to the preliminary contract may mortgage the planned residential house or apartment only in case the other party gives its written consent thereto.


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SECTION NINE

PURCHASE AND SALE OF AN ENTERPRISE

 


Article 6.402. Concept of a contract for the sale of an enterprise


1. Under a contract for the the sale of an enterprise, the seller shall undertake to transfer to the buyer by the right of ownership the whole enterprise as a property complex or a substantial part of the enterprise, with the exception of the rights and duties which the seller has no right to transfer to other persons, while the buyer shall undertake to accept it and pay the price.


2. The right to the name of the firm, trade name or service name or to other marks identifying the seller or his goods or services supplied by him, also to the rights possessed by the seller under the licence agreement shall pass to the buyer, unless otherwise provided for in the contract.


3. The seller’s rights which he acquired under authorisations/licences shall be transferred to the buyer only provided the possibility of such transfer has been stipulated by the laws or the licence. The transfer to the buyer alongside with the enterprise of obligations which he cannot perform since he does not have the authorisation/licence for the performance of such obligations shall not release the seller from liability to creditors for non-performance of such obligations. In such cases, the seller and the buyer shall be jointly liable to creditors for non-performance of the obligations.


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Article 6.403. Form of a contract


1. A contract for the sale of an enterprise must be a document in writing, signed by both parties to the contract, certified by a notary and containing the accompanying documents specified in Article 6.404 of this Code.


2. Non-compliance with the requirements as to the form of the contract shall render the contract null and void.


3. A contract for the sale of an enterprise may be invoked against third parties only provided it has been registered in the public register in the manner established by law and relevant amendments have been made in the Register of Legal Entities.


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Article 6.404. Content of the contract and the accompanying documents


1. The contract must specify the composition of assets of the enterprise being sold and the price of the enterprise as well as the person to whom the payment will be made and who will settle with the creditors of the enterprise (Article 6.405 of this Code).


2. In order to fulfil the duty specified in paragraph 1 of Article 6.405 of this Code, the following accompanying documents must be drawn up, agreed between the parties and signed before the signing of the contract:


1) the deed of inventory of the enterprise assets;


2) the balance sheet of the enterprise;


3) the opinion of an independent auditor regarding the composition and price of the assets of the enterprise;


4) the list of debts (obligations) of the enterprise, specifying the amount of the debt, time limits for performance and kinds of security of the obligations, creditors and their addresses.


3. The assets, rights and duties specified in the documents provided for in paragraph 2 of this Article shall be transferred to the buyer, save for the exceptions indicated in the contract and Article 6.402 of this Code.


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1. The buyer must not later than twenty days before the conclusion of the contract notify in writing all creditors of the enterprise named in the list of enterprise debts (obligations) of the intended sale of the enterprise. In the event of failure by the buyer to fulfil the above duty, the seller’s creditors shall have the right to submit their claims directly to the buyer. It shall not be necessary to notify the creditors of the enterprise of the sale thereof only if the price of the enterprise is paid in cash and the amount thereof is sufficient to settle with all creditors of the enterprise.


2. Having received the notification specified in paragraph 1 of this Article, the creditor of the enterprise must within twenty days from the date of receipt thereof notify the buyer in writing of the share and nature of his claim.


3. The buyer shall pay part of the price provided for in the contract to the person specified in the contract, who shall be charged with settling with the creditors of the enterprise, while the remaining amount shall be paid to the seller. Only a bank, other credit institution or insurance company may be chosen by the parties as the person to be charged with settling with the creditors.


4. The person charged with settling with the creditors of the enterprise shall, within twenty days from the payment of the price, draw up and send to the creditors the deed of price distribution for the settlement of debts of the enterprise that is being sold.


5. Unless the


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up and send to the creditors the deed of price distribution for the settlement of debts of the enterprise that is being sold.


5. Unless the creditors contest the deed of price distribution, they shall be paid the share of the price proportionate to the amount of their claims.


6. In the event the creditor(s) file objections to the deed of price distribution within twenty days from the receipt of the deed of price distribution, the person to whom the price has been paid must apply to the court for the determination of the priority of creditors and procedure of satisfaction of claims.


7. The buyer shall not have to comply with the procedure laid down in this Article if he presents to all creditors of the enterprise an acceptable security for the satisfaction of claims. If the buyer has duly performed his duties specified in this Article, the creditors of the enterprise shall lose the right to assert any claims against him or the assets of the sold enterprise, however, they shall retain the right to address their claims to the seller.


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Article 6.406. Legal consequences of violation of right of the enterprise creditors


1. In case of improper performance by the buyer of the duties laid down in Article 6.405 of this Code, the fact of sale of the enterprise may not be set up against the creditors of the enterprise whose right of claim arose before the conclusion of the contract for the sale of the enterprise, unless the buyer satisfies the creditors’ claims by paying for the value of assets of the purchased enterprise.


2. The claims of creditors provided for in paragraph 1 of this Article may be satisfied if submitted within one year from the day on which they became aware or ought to have become aware of the sale of the enterprise and provided that not more than three years have elapsed from the date of sale of the enterprise.


3. The seller and buyer of the enterprise shall be jointly and severally liable for the actions of the person to whom the price was paid and who had to settle with the creditors, however, the buyer shall only be liable to the extent of the value of the assets of the enterprise purchased by him.


4. The creditors of the enterprise whose claims were secured by pledge (mortgage) and who were excluded from the distribution of the price or whose claims were not satisfied in full shall retain their rights in any case.


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Article 6.407. Transfer of the enterprise


1. The seller shall transfer the enterprise to the buyer under the deed of transfer and acceptance. The deed must contain the information relating to the enterprise and its assets, the condition of the assets, obligations of the parties to the creditors of the enterprise and the performance thereof.


2. Unless the contract provides otherwise, the seller must prepare the enterprise for sale and draw up the deed of transfer and acceptance at his own expense.


3. The enterprise shall be deemed transferred to the buyer from the moment the deed of transfer and acceptance is signed by both parties.


4. The risk of accidental perishing of or damage to the assets of the enterprise shall pass to the buyer from the moment of signing of the deed of transfer and acceptance of the enterprise.


5. Where the contract provides that the seller retains the right of ownership to the enterprise until the buyer pays the full amount of the price or until he fulfils other conditions, the buyer shall be entitled, until ownership of the enterprise passes to him, to use the assets of the enterprise and the incidental rights to the extent and in the manner that is required for the purpose for which the enterprise was acquired.


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1. In case the seller is transferred an enterprise which does not conform to the quality and other requirements contemplated in the contract, the buyer may exercise the rights provided for in Articles 6.321 to 6.323, 6.330, 6.334, 6.341, unless otherwise provided for in paragraphs 2 to 4 of this Article or in the contract.


2. Where the enterprise is transferred and accepted under the transfer and acceptance deed in which the defects of the enterprise or its assets are specified, the buyer shall be entitled to demand a reduction in the price if, under the contract, he is not entitled to present any other demands in such a case.


3. The buyer shall be entitled to demand a reduction in the price if he has been assigned the seller’s debts (obligations) not specified in the contract or the enterprise transfer and acceptance deed, except in cases where the seller proves that the buyer was aware or ought to have been aware of the debts (obligations) at the moment of conclusion of the contract and transfer of the enterprise.


4. If the seller receives the buyer’s notification of discovery of defects of the transferred assets or of the fact that certain assets provided for in the contract are altogether missing, the seller shall have the right to promptly replace the assets of inadequate quality with assets of adequate quality or to offer to the buyer the missing assets.


5. Where the defects of the enterprise for which the


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inadequate quality with assets of adequate quality or to offer to the buyer the missing assets.


5. Where the defects of the enterprise for which the seller is liable render the enterprise unfit for the use indicated in the contract and the defects cannot be eliminated or the seller has not eliminated them within the fixed lime limit, the buyer shall have the right to apply to the court for the dissolution or modification of the contract and compensation for the damage.


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Article 6.409. Legal effects of nullity of transactions and dissolution or modification of a contract

For a contract for the sale of an enterprise, the legal effects of nullity of transactions and modification or dissolution of a contract provided for in this Code shall arise only provided this does not essentially violate the rights of the seller’s and buyer’s creditors and their interests protected under law and is not contrary to public order.

 


Article 6.410. Cases in which the provisions of this Section do not apply


1. The provisions of this Section governing the purchase and sale of an enterprise shall not apply in cases where the pledged assets of the enterprise are sold, as well as when the assets of the enterprise are sold by a bailiff.


2. The provisions of this Chapter regulating the purchase and sale of an enterprise shall apply in the course of bankruptcy proceedings to the extent that the law regulating the insolvency of legal persons does not provide otherwise.

 

 


SECTION TEN

SALE BY INSTALMENT


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SECTION TEN

SALE BY INSTALMENT

 


Article 6.411. Contract of sale by instalment


1. Under a contract of sale by instalment (credit), the seller shall retain the right of ownership to the thing which is being sold until the payment of the full sale price set in the contract, unless the contract provides otherwise.


2. A reservation of ownership in respect of the thing which is not subject to registration, acquired for the service or operation of an enterprise, may be used against third persons only if the sales contract has been registered in the public register in accordance with the procedure prescribed by law.

 


Article 6.412. Risk of accidental perishing of or damage to the things

The risk of accidental perishing of or damage to the things transferred to the buyer shall be borne by the buyer, except in consumer contracts, unless otherwise provided for by the contract of sale by instalment.

 


Article 6.413. Form and content of a contract


1. A contract of sale by instalment must be in writing.


2. The price of the thing and the amount of regular instalments, the schedule of payment of regular instalments and settlement procedure must be specified in the contract.


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1. The price of the thing and the procedure for effecting settlement in the sale thereof under an instalment contract shall be established by agreement between the parties. Unless the parties establish otherwise in the contract, subsequent change in the price of the thing sold by instalment shall not affect mutual settlement between the parties. Where, in case of a reservation of ownership right to the property, the buyer fails to comply with the schedule of payment of regular instalments laid down in the contract, the seller may demand immediate payment of the instalments due or take back the sold thing. Unless otherwise provided for in the contract, the buyer shall have the right to demand refunding his instalments from the seller who has taken back the thing. If the buyer has paid more than half or the price of the thing, the seller shall have no right to take back the thing, unless the contract provides otherwise. The costs of depreciation and use of the thing provided for in the contract shall be deducted from the repayable instalments.


2. Where the right of ownership passes to the buyer from the moment of delivery of the thing, it shall be considered, from the moment of delivery of the thing to the buyer until the payment of the full price, that the thing has been pledged to the seller seeking to secure performance of obligations by the buyer (compulsory pledge (mortgage), unless the contract provides otherwise.


3. Where the buyer without having obtained the


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obligations by the buyer (compulsory pledge (mortgage), unless the contract provides otherwise.


3. Where the buyer without having obtained the seller’s consent transfers to another person the things delivered to him or the things are seized due to unlawful actions of the buyer, the seller shall have the right to demand immediate payment of the balance of the sale price due.


4. If the contract of sale by instalment has been registered, the seller, having taken the things back, must within twenty days or within sixty days, where the subject matter of the contract is an immovable thing, cancel the registration of the contract in accordance with the procedure established by law.


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Article 6.415. Interest

The contract of sale by instalment may provide for the obligation of the buyer to pay interest in case of his default on the timely payment of regular instalments. In this case, the period for which the interest is payable shall run from the day of lapse of the time limit until the payment of instalments.

 


Article 6.416. Specifics of sale by instalment where the buyer is a consumer

The provisions of this Code regulating consumer contracts shall apply to the contracts of sale by instalment where they are consumer contracts.

 


CHAPTER ELEVEN

SALE WITH A RIGHT OF REDEMPTION


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CHAPTER ELEVEN

SALE WITH A RIGHT OF REDEMPTION

 


Article 6.417. Contract of sale with a right of redemption


1. Under a sales contract with a right for redemption, the seller shall undertake to sell the thing at the same time reserving the right to redeem the sold thing, whereas the buyer shall undertake to possess, use and dispose of the thing in such a way as to allow the seller to exercise the right of redemption.


2. A sales contract with a right of redemption in respect of the things which are not subject to registration, acquired for the service or operation of an enterprise, may be used against third persons only if it has been registered in the public register in accordance with the procedure established by law.


3. The seller shall have the right of redemption for a maximum term of five years. In case the contract provides for a longer term of the above right, it shall be reduced to five years.


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1. The seller wishing to exercise his right of redemption must give notice of his intention to the buyer or any other person against whom he intends to exercise this right. Such notice must be published not later than twenty days before the date of exercise of the right of redemption if the thing is movable and not later than before sixty days if the thing is immovable. In case the contract has been registered, notice of the intention to exercise the right of redemption must also be given to the data processor of the public register.


2. Where the seller exercises his right of redemption, he shall take back his thing free of any charges or encumbrances, or additional contributions or compensation to the buyer provided the notice of the intention to exercise the right of redemption was published in accordance with the procedure laid down in this Law.


3. If the buyer of an undivided part of a thing which is subject to a right of redemption acquires the remaining part of the undivided thing, he may require the seller, exercising his right of redemption, to buy the rest of the thing acquired by the buyer.


4. Where the thing is sold by several sellers jointly by way of a single contract, and they wish to redeem the thing or where several heirs left by the seller wish to exercise the right to redeem the thing, the buyer shall be entitled to require one seller or heir to buy back not only his share but also the whole thing.


5.


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thing, the buyer shall be entitled to require one seller or heir to buy back not only his share but also the whole thing.


5. Where it is provided for in the contract that the right of redemption is the security of a loan, the seller shall be treated as a borrower (receiver of the loan) and the buyer shall be treated as a mortgagee.


6. The specifics of purchase and sale of securities with the right of redemption shall be established by separate laws.


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1. Sale of things by auction shall mean that things are offered for sale to several persons through an intermediary – the auctioneer, and the contract is deemed concluded with the buyer – the bidder of the highest price for the thing offered for sale.


2. A public auction shall be a method of sale where the things or services are offered for sale to several persons who participate in the auction personally or who are enabled to participate personally and who are publicly competing by bidding through the auctioneer, while the contract for the purchase of the things or services is concluded with the bidder offering the highest price.


3. An auction sale may be either voluntary or forced. The peculiarities of an action as a forced sale shall be determined by the Code of Civil Procedure.


4. The regulations laid down in this Section shall apply to the purchase and sale by auction of things owned by the State and municipalities to the extent it is not provided otherwise by other laws.


5. Where, after the auction, the contract is concluded between the trader and the consumer, the rules governing consumer contracts shall apply to the contract, unless other laws provide otherwise. Where a contract is concluded by way of a public auction, the information specified in points 2 and 3 of Article 6.2287 of this Code may be furnished about the auctioneer.


6. Where, following a public auction in respect of second-hand goods, a contract is concluded between the trader and the consumer, clear


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Where, following a public auction in respect of second-hand goods, a contract is concluded between the trader and the consumer, clear and comprehensive information must be easily accessible to the consumer that the contract is not subject to the provisions of this Code governing the specifics of consumer sales contracts.


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Article 6.420. Price and conditions of the auction


1. The seller may fix the initial price of the thing offered for sale and any other conditions of the auction. However, unannounced conditions of the auction may not be set up against the bidders, unless the auctioneer has announced the conditions to the bidders before receiving the bids.


2. The seller shall have the right not to disclose his identity, but if his identity is not disclosed to the successful bidder, the auctioneer shall be liable for all the obligations of the seller to the successful bidder.


3. The bidder shall have no right to withdraw his bid.


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Article 6.421. Moment of conclusion of the contract


1. The sales contract by auction shall be deemed concluded when the auctioneer announces this by the fall of his hammer or any other customary action. If, at the moment when the completion of the auction sale of the thing is announced by the fall of the auctioneer’s hammer, a new bid is received, the auctioneer shall have the right to extend the auction or declare the thing sold for the last price bid before the fall of the hammer.


2. The entry in the auctioneer’s register of the bid and the name of the successful bidder shall constitute proof of the conclusion of the contract.  In the absence of such an entry, the fact of the conclusion of the contract may be proved on the basis of the testimony of witnesses.


3. In case an immovable thing is sold at the auction, the seller and the buyer must conclude a contract in the form prescribed by law within ten days of the sale.


4. Where an enterprise is sold at the auction, the requirements laid down in Articles 6.403 to 6.407 of this Code must also be complied with.


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Article 6.422. Payment of the price


1. The buyer must pay the price in accordance with the procedure and within the time limits prescribed by the conditions of the auction.


2. If the buyer does not pay the price in compliance with the established procedure and within the set time limits, the auctioneer shall be entitled to exercise all the rights of the seller. Moreover, the auctioneer shall have an additional right to announce, after notifying the buyer within a reasonable time, that he is holding a new auction for the resale of the thing. In such event, a false bidder shall not be entitled to bid again at a new auction. He shall be bound to cover the auctioneer’s expenses incidental to arranging and holding a new auction and also pay the difference in prices if the thing was resold at a lesser price than the price the false bidder did not pay.

 


Article 6.423. Withdrawing the thing from auction

If the auctioneer has invited to make bids, the thing for the sale whereof auction sale has been announced may not be withdrawn, except in cases where no bid has been received within a reasonable time. In a special auction, the thing for the sale whereof the auction has been announced may be withdrawn at any time.


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Article 6.424. Protection of the buyer’s rights

When a thing, which the buyer has purchased by auction, is arrested in compliance with requirements of the creditors of the seller, the buyer shall be entitled to withdraw from the contract and to request that the seller refund to him the paid amount and compensate for the damage incurred, provided that the buyer was neither aware nor could have been aware of the creditors’ claims regarding the property.

 


SECTION THIRTEEN

PURCHASE AND SALE OF RIGHTS

 


Article 6.425. Contracts for the purchase and sale of rights

The provisions of this Chapter shall apply to contracts for the purchase and sale of rights to the extent this is not contrary to the nature and essence of the rights.


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Article 6.426. Sale of rights of succession


1. A person who, upon accepting the property received by succession, sells rights of succession without specifying in detail the property affected shall be bound to warrant to the buyer only his quality as an heir.


2. The seller shall be bound to hand over to the buyer all the fruits and revenues he has received from the succession together with the capital of any claim due and the price of any things he has sold which formed part of the succession.


3. The buyer shall be bound to reimburse the seller for the expenses incidental to accepting the succession and pay the amounts due to the seller from the succession.


4. The buyer shall be bound to reimburse the seller for the debts of the succession that he has paid.


5. The buyer shall also be bound to pay the debts of the succession for which the seller is liable.


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Article 6.427. Sale of litigious rights


1. A right shall be litigious when it is contested by a person bringing an action or there is reason to presume that such an action maybe brought.


2. No advocate, judge, notary or bailiff or their family members or close relatives shall have the right to acquire contested litigious rights. Contracts, concluded by the above persons for the purchase and sale of litigious rights shall be null and void.


3. Where litigious rights are sold, the person from whom they are claimed shall be fully discharged by paying to the buyer the sale price, the costs related to the sale and interest on the price. This right of redemption may not be exercised where the sale is made to a creditor in payment of what is due to him or to a co-heir or co-owner of the rights sold. Nor may the right of redemption be exercised where a court has rendered a judgment affirming the right sold.

 


SECTION FOURTEEN

PECULIARITIES OF CONCLUSION OF OTHER SALES CONTRACTS

 


Article 6.428. Sales contracts of securities and currency

Peculiarities of conclusion of sales contracts of securities and currency shall be established by separate laws.


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Article 6.429. Conclusion of a sales contract by way of a tender


1. A sales contract shall be concluded by way of a tender by the seller with the buyer determined by the tender commission in accordance with the conditions of the tender.


2. Conclusion of a sales contract by way of a tender shall be regulated by this Code and the regulations of the tender. The regulations shall be approved by the organiser of the tender or any other authorised person.

 


Article 6.430. Conclusion of sales contracts on the exchange


1. Conclusion of sales contracts on commodity or stock exchanges shall be regulated by the laws determining the activities of the exchange and the rules for trading on the exchange.


2. The general rules of conclusion of sales contracts provided for in this Chapter shall apply to sales contracts concluded on commodity or stock exchanges to the extent that they are in conformity with the laws regulating the activities of the exchange or the essence of the contract.


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Article 6.431. Sales contract with a reservation regarding the right of ownership


1. Under the sales contract with a reservation regarding the right of ownership, the seller shall retain the right of ownership to the thing being sold until the performance by the buyer of the obligations provided for in the contract.


2. Under a sales contract with a reservation regarding the right of ownership, the buyer shall have no right of disposal of the thing being sold until he fulfils the conditions specified in the contract.

 


Article 64311. Sales contract of a motor vehicle

The sales contract of a motor vehicle must contain the data about the motor vehicle which the seller is bound to transfer to the buyer under the contract. In the sales contract, the seller must indicate (declare) the mileage data to the buyer and inform the buyer of all traffic or other accidents that have caused damage to the motor vehicle during the seller’s ownership of the motor vehicle and of all traffic or other accidents that have caused damage to the motor vehicle as far as the seller is aware of. The list of mandatory particulars about a motor vehicle and its defects to be indicated in the sales contract shall be approved by the Government or an institution authorised by it.

 


CHAPTER XXIV

EXCHANGE


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CHAPTER XXIV

EXCHANGE

 


Article 6.432. Concept of a contract of exchange


1. Under a contract of exchange, each of the parties shall undertake to transfer to the ownership of the other party one thing in exchange for another.


2. The provisions governing sales contracts (Chapter XXIII of this Book) shall apply to the contract of exchange if this is not contrary to the provisions of this Chapter and the essence of exchange. Within the contract of exchange, each of the parties shall be deemed to be the seller of the goods being transferred and the buyer of the goods being accepted in exchange.

 


Article 6.433. Price and expenses of concluding a contract


1. Unless otherwise provided for by the contract of exchange, it shall be presumed that the goods subject to exchange are of equal value and exchanged without any extra payment, while the expenses for the transfer and acceptance thereof must be effectuated in each instance by that party which bears the respective duties.


2. Where the contract provides that the goods to be exchanged are not of equal value, the party obliged to transfer the goods whose price is lower than the price of the goods being transferred in exchange shall not be bound to pay the difference in price to the other party unless otherwise provided for by the contract.


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Article 6.434. Performance of the obligation to transfer things

Both parties shall be bound to perform the obligation to transfer the respective things simultaneously unless otherwise provided for by the contract.

 


Article 6.435. Legal consequences for eviction of things acquired under a contract of exchange


1. In the event when a thing acquired by a party under a contract of exchange is evicted pursuant to the claim of a third person, this party shall have the right to claim from the other party either damages or recover the things transferred to the latter in exchange.


2. If a party, after having received the things transferred to him in exchange, becomes aware that the other party was not the owner of those things, he shall have the right to return the things received to the party who has transferred them. In this event, the other party (in bad faith) may not demand from the party who has returned the things to deliver the things the latter has promised in exchange.

 


CHAPTER XXV

GIVING IN PAYMENT AND ALIENATION FOR RENT


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CHAPTER XXV

GIVING IN PAYMENT AND ALIENATION FOR RENT

 


Article 6.436. Concept of a contract of giving in payment


1. Under a contract of giving in payment, the debtor shall transfer his property which is not pledged to a creditor into the latter’s ownership in payment of his monetary or any other property debt.


2. A contract of giving in payment shall be governed by the rules pertaining to sales contracts. The person who transfers property according to the contract of giving in payment (debtor) shall assume all duties of the seller.


3. A contract of giving in payment shall be deemed to be concluded at the moment when the property is delivered to the creditor.

 


Article 6.437. Prohibition to agree on giving in payment in advance

The parties shall be prohibited from including a clause in the contract by which the creditor reserves an irrevocable right to become the owner of the property of the debtor or the right to dispose of it if the debtor fails to perform his obligation. Such contract clauses shall be null and void.


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Article 6.438. Contract of alienation for rent


1. Under a contract of alienation for rent, the lessor shall transfer the ownership of an immovable thing to the lessee in exchange for a rent. The obligation to pay the rent shall rest on the lessee.


2. The rent shall be payable at the end of each year in money or in kind from the day on which the contract enters into force unless the contract provides otherwise.


3. The lessee (payer of rent) shall have the right to relinquish at any time periodical annual payments of rent by informing about this the lessor (recipient of rent) and offering instead to pay the capital value of the rent in a lump sum payment.  However, the lessee (payer of rent) may not transfer the obligation to pay the capital value of the rent in a lump sum payment to the insurer of the thing or to any other person.


4. The lessee shall be personally liable towards the lessor for the payment of rent. He shall not be discharged from the performance of his obligations upon relinquishing his ownership right in the immovable or due to its destruction by force majeure.


5. Any other relationships between the lessee and the lessor which are not established in this Article shall be regulated by the corresponding rules pertaining to sales contracts and to life annuities.


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CHAPTER XXVI

RENT

 


SECTION ONE

GENERAL PROVISIONS

 


Article 6.439. Concept of a contract of rent


1. Under a contract of rent, one party – the payer of rent (debtor) – shall undertake, gratuitously or in exchange for the capital transferred to his ownership, to perform periodical payments to the other party – the recipient of the rent – of a monetary amount determined in the contract (rent) or to grant maintenance to the recipient of the rent in any other form.


2. Duty to pay rent may be established not only by a contract but likewise by laws, a court judgment or a will. In such cases, payments of rent shall be correspondingly governed by the provisions of this Chapter.


3. It shall be presumed that a non-returnable loan constitutes a life annuity for the benefit of the lender.


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Article 6.440. Capital transferable under a contract of rent


1. Under a contract of rent, the recipient of the rent may undertake to transfer to the ownership of the payer of rent a movable or immovable thing or a sum of money.


2. Where the transfer of an immovable thing for payment is provided for by a contract, such a contract shall constitute a sales contract for rent and shall be correspondingly governed by the provisions regulating a sales contract.


3. If the capital is a sum of money, it may be paid in a lump sum or by instalments.

 


Article 6.441. Contract of rent for the benefit of a third person

It may be provided under a contract of rent that the recipient of the rent shall be a third person, but not the person who transfers ownership of the capital for the benefit of the payer of rent.


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Article 6.442. Duration of a contract of rent


1. It may be provided under the contract of rent that a rent is constituted for the life of the recipient of rent (life annuity), in perpetuity (permanent rent) or for a fixed term.


2. Rent for life (life annuity) may be established as maintenance for life.


3. It may be stipulated in the contract that the payment of rent shall be continued after the death of the recipient of rent for the benefit of his heir or any other person.


4. A contract of rent set up for a deceased person or a person who dies within the following thirty days from the day when the contract was formed shall be null and void. The same rule shall apply also in the case where a rent is constituted for a person who does not exist on the day when the contract is formed unless the recipient of rent had already been conceived at that time and was born alive.


5. Where a life annuity is set up for the lifetime of several persons successively, it shall have effect only if the first of those persons existed on the day the contract was concluded or if he had already been conceived at that time and was born alive.


6.  In all cases, the duration of contract of rent may not exceed one hundred years from the date of conclusion of the contract of rent.


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Article 6.443. Form of a contract of rent


1. A contract of rent must be in the notarial form.


2. A contract of rent providing for the alienation of an immovable thing under payment of rent may be invoked against third persons only upon that contract being registered in the public register in accordance with the procedure established by laws.

 


Article 6.444. Encumbrance of rights in an immovable thing by rent


1. A rent shall be deemed to encumber the right in an immovable thing if this thing is transferred under the condition of payment thereof.  In the case of alienation of such thing by the payer of the rent, his obligations under the contract of rent shall pass to the acquirer of the thing.


2. The person who has transferred an immovable thing, the rights in which are encumbered by rent, to the ownership of another person shall be subsidiary liable with the new owner of the thing with regard to the claims of the recipient of the rent for violation of the contract of rent unless their solidary liability has been established by laws or the contract.


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Article 6.445. Security for payment of rent


1. When an immovable thing is transferred under condition of payment of rent, the recipient of the rent shall acquire the right of pledge on this immovable thing as security of the obligation of the payer of the rent (forced hypotheque).


2. If, under the contract of rent, a movable thing or a sum of money is transferred to the payer of rent, the essential condition of the contract of rent shall be the duty of the payer of rent to grant security for the performance of his obligation or to insure his civil liability for the failure to perform or improper performance of the contract of rent.


3. If the payer of rent fails to fulfil the duties provided for in paragraph 2 of this Article, likewise, in the event of loss or substantial deterioration, under the circumstances for which the recipient of rent is not liable, of the thing by which performance of obligations of the payer of rent is secured, the recipient of rent shall have the right to dissolve the contract and claim compensation of damages.

 


Article 6.446. Interest for delay of payment of rent

In the event of delay of the payment of rent, the payer of rent shall pay the interest established by laws or a contract to the recipient of rent.


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Article 6.447. Protection of interests of a recipient of rent


1. The capital accumulated for the payment of rent shall not be subject to seizure on the ground of claims of the payer’s creditors and no exaction may be levied thereon. In the event of a dispute, the amount of non-seizable means shall be established by the court.


2. A stipulation to the effect that the rent is inalienable or that no exaction may be levied thereon shall be without effect unless the rent is paid gratuitously to the recipient as maintenance. In such event, the stipulation shall have effect only in respect of the amount of rent necessary to maintain the recipient.

 


Article 6.448. Substitution of a payer of rent


1. A payer of rent shall have the right to transfer his duty to pay rent to an insurance enterprise entitled to engage in such activity by paying it the value of the rent. In such event, the insurance enterprise shall acquire all rights and duties of the payer of rent.


2. The consent of the recipient of rent shall not be necessary for the substitution of the payer of rent provided for in paragraph 1 of this Article, however, the recipient of rent shall have the right to demand that the duty to pay rent be transferred to an insurance enterprise other than the one chosen by the payer of rent.


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SECTION TWO

RENT IN PERPETUITY (PERMANENT RENT)

 


Article 6.449. Recipient of rent in perpetuity (permanent rent)


1. Only natural persons or non-profit legal persons engaged in guardianship/curatorship may be recipients of rent in perpetuity (permanent rent) to the extent that this is not contrary to laws and the documents of their activities.


2. The rights of the recipient under a contract of rent in perpetuity (permanent rent) may be transferred by means of assignment of claim, or inheritance, or by reorganisation of the legal person unless otherwise provided for by laws or by the contract.

 


Article 6.450. Form and amount of rent in perpetuity (permanent rent)


1. Rent in perpetuity (permanent rent) shall be paid in money.  Its amount shall be established by the contract of rent.


2. It may be stipulated in the contract of rent in perpetuity (permanent rent) that the payment of rent may be effectuated by means of transferring things, carrying out works, or rendering services whose price corresponds to the value of the monetary amount of the rent.


3. Unless otherwise provided for by the contract, the amount of rent to be paid shall be indexed taking into account the minimum monthly wage established by legal acts.


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Article 6.451. Periods of payment of rent in perpetuity (permanent rent)

Unless otherwise provided for by the contract of rent, the rent in perpetuity (permanent rent) shall be paid at the end of every month.


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Article 6.452. Right of the payer of rent to purchase rent in perpetuity (permanent rent)


1. The payer of permanent rent shall have the right to refuse further payment of rent in perpetuity (permanent rent) by means of purchasing it.


2. The refusal to pay rent shall be valid only on condition that the recipient is notified by the payer of rent not later than three months prior to the termination of the payment of rent or within a longer period established by the contract.  Nevertheless, even in this event, the obligation to pay rent shall not terminate until the entire amount of the purchase is received by the recipient of the rent unless otherwise provided for by the contract. 


3. A clause of a contract of rent in perpetuity (permanent rent) upon the waiver of the payer’s right to purchase rent shall be null and void.


4. It may be provided for by a contract of rent that the right of purchase of rent in perpetuity (permanent rent) may not be effectuated during the life of the recipient of rent or during another period which cannot exceed thirty years from the day of concluding the contract of rent.


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Article 6.453. Purchase of rent in perpetuity (permanent rent) at the demand of the recipient of rent 

The recipient of rent in perpetuity (permanent rent) shall have the right to demand the purchase of rent by the payer thereof in the instances when:


1) the payer of rent fails to effectuate the payment within the set time limit by more than one year unless otherwise provided for by the contract;


2) the payer of the rent violates his obligation to secure the payment of rent (paragraph 2 of Article 6.445 of this Code);


3) the payer of rent is declared to be insolvent or other circumstances have arisen which clearly testify that the payer of the rent will not be able to pay the rent in the amount and within the time limits which have been established by the contract;


4) the immovable thing transferred under the contract of rent has become common ownership of several persons; 


5) in other cases established by the contract.


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Article 6.454. Purchase price of rent in perpetuity (permanent rent)


1. The purchase of rent in perpetuity (permanent rent) shall be made at the price determined by the contract of rent.


2. If the price of the purchase of rent is not determined in the contract, the property which has been transferred for payment under the contract of rent in perpetuity (permanent rent) shall be purchased at the price corresponding to the yearly amount of the payable rent.


3. If the price of the purchase of rent is not determined in the contract, the property which has been transferred under payment of rent gratuitously shall be purchased at the price corresponding to the sum equal to the yearly amount of the payable rent and the value of the transferred property.

 


Article 6.455. Risk of accidental perishing or damage of property transferred under payment of rent in perpetuity (permanent rent)


1. The risk of accidental perishing or damage of property transferred gratuitously under payment of rent in perpetuity (permanent rent) shall be borne by the payer of rent.


2. In the event of accidental perishing or damaging of property transferred for payment under payment of rent in perpetuity (permanent rent), the payer of rent shall have the right to demand either termination of his obligation to pay the rent or a change of the conditions for the payment thereof.


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SECTION THREE

RENT FOR LIFE 

 


Article 6.456. Recipient of rent for life


1. A rent for life may be paid to a natural person who has transferred property under the condition of payment of rent or to another natural person specified by him.


2. A rent for life may be paid to several natural persons. In this case, the participatory share of right to receive rent shall be equal unless otherwise provided for by the contract of rent.


3. In the case of death of one of the recipients of rent, his participatory share in the right to receive rent shall pass to the recipients of rent who survive him unless otherwise provided for by the contract of rent. The obligation to pay the rent shall terminate upon the death of the last recipient of rent. In the event of rent being constituted for the benefit of both spouses, on the death of either of the spouses the rent shall be reverted upon the life of the surviving spouse unless otherwise provided for by the contract of rent.


4. The contract of rent for life set up for the lifetime of a person who was dead at the moment of concluding the contract shall be null and void.


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Article 6.457. Amount of rent for life


1. A rent for life shall be determined in the contract as a sum of money to be paid periodically to the recipient of rent during his life.


2. Rent for life shall be paid in sums and within periods stipulated in the contract. In the instances where the periods of the payment are not indicated in the contract, the rent must be paid every month by the first day of the following month.

 


Article 6.458. Dissolution of contract of rent for life at the demand of the recipient of rent


1. In the case of essential violation of a contract of rent for life by the payer of rent, the recipient of rent shall have the right to demand from the payer of rent the purchase of rent under the conditions provided for in Article 6.454 of this Code or dissolution of the contract and compensation of damages.


2. If an apartment, dwelling house or other property under payment of rent for life has been alienated gratuitously and the contract has been violated essentially by the payer of rent, the recipient of rent shall have the right to require a return of that property. In this case, the value of the property shall be set off against the purchase price of the rent.


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Article 6.459. Risk of accidental perishing or accidental damaging of property transferred under payment of rent for life

Accidental perishing or accidental damaging of property transferred under payment of rent for life shall not relieve the payer of rent from the obligation to pay it under the conditions established in the contract.

 


SECTION FOUR

LIFE ANNUITY

 


Article 6.460. Contract of life annuity


1. Under a contract of life annuity, the annuitant – a natural person – shall transfer a dwelling house, apartment, land plot or other immovable thing belonging to him to the ownership of the debtor of the annuity and the latter shall be obliged to maintain the annuitant and/or another person(s) specified by him for life.


2. The provisions of Section Three of this Chapter which regulate rent for life shall apply to a contract of life annuity unless otherwise provided for by this Section.


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Article 6.461. Duty to grant life annuity


1. The duty of the debtor of the annuity to grant life annuity to the annuitant shall include providing him with a dwelling, clothes and other wear, alimentation and, where the state of health of the annuitant so requires, also providing care for him. The duty of the debtor of the annuity to pay the expenses of funeral services of the annuitant may also be provided for in the contract.


2. The value of the entire amount of annuity may be determined by the parties in the contract of life annuity.   In this case, the value of the total amount of maintenance per month may not be less than the amount of one minimum monthly wage. 


3. When deciding on the dispute between the parties concerning the content and amount of annuity, the court must be guided by the criteria of good faith, reasonableness and justice.

 


Article 6.462. Replacement of a life annuity by periodical payments

The possibility of replacing a life annuity in kind by the payment of periodical payments in money may be established by the parties in the contract. These periodical payments shall be paid during the life of the annuitant.


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Article 6.463. Right of the debtor of the annuity to dispose and use alienated property


1. The debtor of the annuity may alienate, pledge or otherwise encumber the right in an immovable thing transferred to him in exchange for life annuity only upon prior written consent of the annuitant.  Such written consent must be confirmed by a notary.


2. The debtor of the annuity must take all necessary measures in order to prevent any decrease of the value of the thing transferred to him.

 


Article 6.464. Termination of life annuity


1. The obligation of life annuity shall terminate with the death of the recipient of the annuity. 


2. In the event of essential violation by the debtor of the annuity of his obligations, the annuitant shall have the right to demand from the debtor of the annuity the return of the immovable thing transferred to him or the payment of the purchase price thereof under the conditions established in Article 6.454 of this Code. In this case, the debtor of the annuity shall have no right to demand compensation of the expenses related to the maintenance of the annuitant.

 


CHAPTER XXVII

GIFT


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CHAPTER XXVII

GIFT

 


Article 6.465. Concept of a contract of gift


1. Under a contract of gift, one party (donor) transfers by gratuitous title property in ownership or a property right (claim) to another party (donee) or relieves the donee of a property duty to himself or to a third person.


2. A promise to gift property or a property right or to relieve someone of a property duty in the future shall not constitute a contract of gift. However, the beneficiary of the promise to be gifted in the future shall have the right to claim from the promisor damages incurred in preparing to accept the gift if the donor has refused to conclude the contract of gift without any justifiable grounds.


3. A contract of gift providing for the right of the donor to recover by his unilateral decision the gifted property or the property right shall be null and void.


4. Requirements in regard of a contract of gift whose parties are spouses shall be established by the provisions of Book Three of this Code.


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Article 6.466. Transactions not deemed to be a gift


1. A contract providing for the transfer of a gift to the ownership of the donee after the death of the donor shall be null and void.  Relations of such kind shall be governed by the provisions regulating legal relationships of inheritance.


2. The donee’s unconditional renouncement of succession or a property right that he has not yet acquired shall not constitute a gift.


3. When between the parties to a contract of gift there exists a counter transfer of certain property or property rights or counter obligations, such contract shall not be deemed to be a gift. Legal consequences resulting from simulated transactions shall occur in such event. When one person transfers to another person property or a property right for remuneration, the contract of gift may be deemed to be constituted only for the part of the property or the property right in excess of the remuneration unless a different conclusion may result from the essence of the obligation concerned.


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Article 6.467. Contract of gift under condition


1. A person, in gifting the property, may establish a condition for the property to be used exclusively for a definite purpose without prejudice to the rights and legitimate interests of other persons.


2. In the event when the donee fails to comply with a condition established in the contract of gift, the donor shall have the right to demand, within judicial proceedings, the compliance with that condition or annulment of the contract of gift and return of the property.


3. A contract of gift providing for a duty of the donee to repay debts or perform other obligations which do not exist at the time of conclusion of the contract shall be null and void, except in cases where the future debt or obligation is clearly specified in the contract.

 


Article 6.468. Right of refusal of a donee to accept a gift


1. The donee shall have the right to refuse to accept the gift at any time before it is transferred to him.


2. If the contract of gift is made in the written form, the donor shall have the right to demand from the donee who has unreasonably refused to accept the gift compensation of damages caused by the refusal.


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Article 6.469. Form of a contract of gift


1. A contract of gift of a sum of money exceeding one thousand five hundred euros must be concluded in the written form.


2. A contract of gift of immovable property likewise a contract of gift whose object exceeds fourteen thousand five hundred euros must be made in the form of a notarial act.


3. A contract of gift of a thing or a property right in it shall create legal consequences to the third persons only in the event if the contract is registered in the public register.


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1. A person legally incapable in this area may not act in the capacity of a donor. A person with limited legal capacity in this area may act in the capacity of a donor with the consent of the curator. Where the curator does not give his consent, the consent to act in the capacity of a donor may be granted by the court at the request of the person with limited legal capacity in this area. The consent of the curator shall not be required where the person with limited legal capacity in this area gives symbolic gifts, the value whereof does not exceed the amount of one base social benefit. It shall be prohibited for the guardian of a person legally incapable in this area to give the property of the latter as a gift in the name of the latter, except for giving symbolic gifts, the value whereof does not exceed the amount of one base social benefit.


2. Only the guardian of a person legally incapable in this area shall have the right to accept gifts made to the latter, except for symbolic gifts, the value whereof does not exceed the amount of one base social benefit. A person with limited legal capacity in this area shall have the right to accept gifts made to him with the consent of the curator. Where the curator does not give his consent, the consent to accept gifts may be granted by the court at the request of the person with limited legal capacity in this area. The consent of a curator shall not be required where a person with limited legal capacity in this area


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of the person with limited legal capacity in this area. The consent of a curator shall not be required where a person with limited legal capacity in this area accepts symbolic gifts, the value whereof does not exceed the amount of one base social benefit.


3. A contract of gift shall be null and void where the donor is a person who does not own the gift or is not properly authorised to conclude such contract.


4. No longer effective from 14 July 2006.


5. A gift shall not be permitted to politicians, officials of state and municipal institutions, and other public servants, as well as to their close relatives where it is connected with the official position of the politician, official or public servant or with the performance of their official duties.


6. A contract of gift of property which does not exist at the time of conclusion of the contract likewise a contract of gift of property to be created in future shall be null and void.


7. A contract of gift may be annulled upon the action of the donor or his heirs if, at time when the contract of gift was concluded, the donor was terminally ill which rendered him incapable of expressing his true will.


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Article 6.471. Limitations to make a gift


1. The gift of property in joint common ownership shall be permitted exclusively upon the written consent of all participants in the joint common ownership.


2. The gift of property managed by the right of trust shall be permitted exclusively upon the written consent of the owner of the property unless otherwise provided for by laws or the contract.


3. The gift of the right of claim shall be effectuated in compliance with the rules established in Articles 6.101 to 6.104 and Article 6.107 of this Code.


4. A gift by means of the performance for the donee of his obligation to a third person or by acceptance of the debt of the donee to a third person shall be effectuated in compliance with the rules established in Articles 6.50, 6.115, 6.116, 6.118 and 6.119 of this Code.


5. A power of attorney to perform a gift in which the subject matter of the contract of gift is not specified and the donee is not named shall be null and void.


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1. The donor shall have the right to start judicial proceedings with the action in revocation of a gift if the donee has committed an attempt on his life or the life of his close relatives, or has intentionally caused them serious bodily injury, also if, taking into consideration the nature of the gift, the personal qualities of the parties to the contract of gift and their interrelations, the donnee has committed against the donor such actions which are undoubtedly strictly reprehensible from the point of good morals.  In the event of the intentional deprivation of life of the donor made by the donnee, the heirs of the donor shall have the right to bring an action in revocation of a gift.


2. The donor shall also have the right to start judicial proceedings with the action in revocation of a gift if the treatment by the donee of the gifted property, which is of great non-pecuniary value to the donor, creates a real threat of its loss.


3. The revocation of a gift shall obligate the donnee to restore to the donor the property he has received under the contract of gift in accordance with the provisions of this Book pertaining to restitution if this property still exists at the moment of revocation of the gift.


4. The action in revocation on the grounds provided for in this Article may be brought by the donor or by his heirs within a one-year limitation period which is calculated from the day the donor or his heirs became aware or ought to have


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the donor or by his heirs within a one-year limitation period which is calculated from the day the donor or his heirs became aware or ought to have become aware of the arising of such grounds.


5. The provisions of this Article shall not apply to ordinary gifts of domestic character and to presents of minor value.


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Article 6.473. Duties of a donor


1. The donor must, under the contract, transfer the property to be gifted without any encumbrance of the right thereto which is not established in the contract and which would hinder the use or disposal, as well as the possession of the property by the donee.  


2. The donor may transfer only those rights in connection with the property gifted which he himself holds therein.


3. The donor shall not be liable for the latent defects in the property gifted if he was not aware or could not have been aware thereof.


4. The donee may claim from the donor compensation of damages if the donee has incurred expenses in connection with the lifting of the encumbrances of the right to the property or with the elimination of defects in that property, and if the donor was aware or should have been aware of those encumbrances and defects but failed to disclose that to the donee.


5. The donor shall pay the expenses related with the conclusion and performance of the contract unless otherwise provided for in the contract.

 


Article 6.474. Liability of the donee for debts of the donor

Unless otherwise provided for by laws or the contract, the donee shall only be liable for the debts of the donor which are directly connected with the received gift.


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Article 6.475. Compensation for damage

Damage caused to the life, health or property of the donee as a consequence of defects of the property gifted shall be compensated by the donor on the general grounds if it is proved that the defects arose before the transfer of the property to the donee and were not obvious, while the donor, although being aware of them, failed to disclose this to the donee.


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Article 6.476. Donations (aid and charity)


1. A gift of property or property right for certain useful purposes shall be deemed to be a donation.


2. No authorisation or consent shall be required for the acceptance of donations.


3. A donation must be used for the determined designation. If the donation is accepted by a legal person, the latter must keep accounts of all operations relating to the use of the donated property.


4. The designation of the donation may be stated by the person who makes the donation or expressed by the request or actions of the person receiving the donation. If the use of donated property in accordance with the specified designation becomes impossible in the consequence of a change of circumstances, it may be used for another designation only with the consent of the donor, and in the event of the donor’s death/termination, only by a decision of the court.


5. In the event of donated property being used not in accordance with the designation specified by the donor, the donor or his successors shall have the right to demand within judicial proceedings revocation of the donation. This provision shall not apply in respect of donations of domestic character or those of minor value.


6. Article 6.467 of this Code shall not apply to donations.

 


CHAPTER XXVIII

LEASE

 


SECTION ONE

GENERAL PROVISIONS


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CHAPTER XXVIII

LEASE

 


SECTION ONE

GENERAL PROVISIONS

 


Article 6.477. Concept of a contract of lease


1. Under a contract of lease one party (lessor) shall undertake to grant to the lessee a thing for payment in temporary possession and use, and the other party (lessee) shall undertake to pay a lease payment.


2. The subject matter of a contract of lease may be any durable thing. Laws may establish the kinds of things the lease of which is prohibited or restricted.


3. A thing or its features enabling to define the thing which is to be transferred by the lessor to the lessee must be specified in the contract of lease.   In the absence of such features in the contract, and if the subject matter of the contract of lease cannot be determined on the basis of other features, the contract of lease shall not be considered concluded.


4. A lessor may be the owner of the property under lease or the persons to whom the right to lease another’s thing is granted by law or by the owner of that thing.


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Article 6.478. Form of a contract


1. A contract of lease for a period of more than one year must be concluded in written form.


2. A contract of lease of immovable things for a period of more than one year may be invoked against third persons only in the event if it is registered in the public register in accordance with the procedure established by laws.

 


Article 6.479. Term of a contract


1. A contract of lease may be fixed-term or concluded for an indefinite period, but in all cases the term of lease may not exceed one hundred years.


2. The term of a contract of lease shall be determined by agreement between the parties. If the term of the contract of lease has not been determined in the contract, the contract of lease shall be considered to have been concluded for an indefinite period.


3. Other terms may be established by laws for the leasing of property which is owned by the State.


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Article 6.480. Consequences of a contract of lease concluded for an indefinite period

If the contract of lease is indeterminate, both of the parties shall have the right at any time to repudiate the contract having warned the other party one month in advance, and in the event of the lease of immovable things, three months in advance. A more extensive period may be established in the contract of lease for the issue of warning about the termination thereof.

 


Article 6.481. Continuance of use of property after the expiry of the term of a contract

A contract of lease shall be considered to become concluded for an indefinite period where the lessee continues to use the property for more than ten days after the expiry of the term of the contract without any opposition from the lessor.


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Article 6.482. Preferential right of the lessee to renew a contract of lease


1. The lessee who has duly performed his duties assumed under the contract of lease shall have a preferential right before other persons to renew the contract upon the expiry of the term thereof.


2. The lessor must inform the lessee in writing within the period determined in the contract of the latter’s right to conclude a contract of lease for a new term, and if such period is not determined in the contract, within a reasonable period before the termination of the contract of lease.


3. When concluding a contract of lease for a new term, the conditions of the contract may be modified by agreement between the parties.


4. If the lessor refused to conclude a contract with the lessee for a new term, but within a year from the termination of the contract of lease concluded a contract of lease upon the same thing with another person without informing the previous lessee, the latter shall have the right, at his choice, to claim either the transfer to him of the rights and duties of the lessee under the contract of lease concluded or compensation of damages resulting from the refusal to conclude a contract of lease for a new term.

 


SECTION TWO

RIGHTS AND DUTIES OF PARTIES TO A CONTRACT OF LEASE


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SECTION TWO

RIGHTS AND DUTIES OF PARTIES TO A CONTRACT OF LEASE

 


Article 6.483. Delivering property to the lessee


1. The lessor must deliver property to the lessee in the state corresponding to the conditions of the contract and designation of the property. The lessor must guarantee that the thing is fit to be used for the purpose for which it is leased throughout the whole period of the lease.


2. The lessor shall not be held liable for the defects of the property leased which were stipulated by him when concluding the contract.


3. The lessor must deliver to the lessee the documents relating to the thing leased and appurtenances thereof (technical passport, certificate of quality, etc.) which are necessary for the use of that thing unless otherwise provided for by the contract.


4. Neither the lessor nor the lessee shall have the right to change the form and designation of the leased property during the period of the lease.


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Article 6.484. Consequences of not delivering the thing to the lessee   

In the event of the failure by the lessor to deliver into the use of the lessee the leased thing, its documents and appurtenances, the lessee shall have the right to recover this thing from the lessor and to claim damages caused by the delay of performance or to demand dissolution of the contract and compensation of damages caused by the non-performance of the contract.


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Article 6.485. Liability of the lessor for defects of the thing


1. The lessor shall be liable for defects of the thing leased which wholly or partially obstruct the use thereof for its designation even in those instances where the lessor was not aware of those defects at the time of concluding the contract.


2. In the event of discovery of such defects as indicated in paragraph 1 of this Article, the lessee shall have the right at his choice:


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1) to demand from the lessor either elimination of those defects free of charge or a commensurate reduction of the lease payment, or compensation of the expenses of the lessee incurred in the elimination of the defects;


2) to withhold the amount of expenses incurred for the elimination of defects from the lease payment if the lessor was informed of this in advance;


3) to demand the dissolution of the contract before time.


3. The lessor who has been informed about the demands of the lessee or about the latter’s intention to eliminate the defects of the thing at the expense of the lessor shall have the right to replace the leased thing of inadequate quality with another analogous thing of adequate quality or to eliminate the defects of the thing himself free of charge. 


4. In the event where, after the satisfaction of the demands of the lessee or after the withholding of expenses for the elimination of defects from the lease payment, damages caused to the lessee are not fully compensated, he shall have the right to demand the reparation of the uncompensated part of the damages.


5. The lessor shall not be liable for those defects of the leased thing which were stipulated by him when concluding the contract or which should have been known to the lessee, or which could have been noticed by the lessee without any additional inspection when concluding the contract or delivering the thing, but which were not discovered through his own gross


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could have been noticed by the lessee without any additional inspection when concluding the contract or delivering the thing, but which were not discovered through his own gross negligence.


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Article 6.486. Rights of third persons to leased property


1. A lease of a thing shall not terminate or change the rights of third persons to that thing.


2. Prior to the conclusion of a contract of lease, the lessor must inform the lessee about all rights of third persons to the thing upon lease (pledge, servitude, usufruct, etc.).  If the lessor fails to perform this duty, the lessee shall have the right to demand a reduction of lease payment or dissolution of the contract and compensation of damages.


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Article 6.487. Lease payment


1. The lessee must pay the lease payment on time. Unless otherwise provided for by laws or the contract, he shall have the right to demand a commensurate reduction of the lease payment if, due to circumstances for which he is not responsible, conditions of the use of the thing established in the contract or the state of the thing have deteriorated substantially.


2. If the concrete amount of the lease payment or the method of its calculation is not determined in the contract, each of the parties to the contract shall have the right to apply to the court with the request to appoint independent experts for determination of the amount of the lease payment.


3. Upon agreement between the parties, the lease payment may be established in the following forms:


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1) a fixed sum of money to be paid in a lump sum or in instalments;


2) a portion of the products, fruits or incomes received from the use of the leased thing; 


3) certain services supplied to the lessor by the lessee;


4) the duty of the lessee to improve the state of the leased thing at his own expense;


5) the duty of the lessee to transfer to the lessor a thing stipulated in the contract into his ownership or under lease.


4. The parties may agree on a combination of these forms for the determination of the amount of the lease payment or may establish another form of calculating the lease payment.


5. Unless otherwise provided for by the contract of lease, the lease payment may be changed by agreement between the parties within the periods agreed between them, but not more often than twice a year if laws do not foresee differently.


6. Unless otherwise provided for by the contract of lease, in the event of essential violation by the lessee of the periods for paying the lease payments, the lessor shall have the right to demand from the lessee effectuation of the lease payment in advance within the periods established by the lessor, but not for more than two consecutive payment terms.


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Article 6.488. Right of a lessee to incomes received from the leased thing

The incomes, fruits, livestock increase received from the leased thing shall belong to the lessee unless otherwise provided for by the contract.

 


Article 6.489. Use of leased property


1. The lessee must use the leased thing in accordance with the contract and designation of the thing.


2. The lessee must use the leased thing in such a way as not to hinder the use of that thing by other lawful users. 


3. The lessee shall be liable towards the lessor and other lessees for the performance of the duty determined in paragraph 2 of this Article. In addition, the lessee shall be liable for actions of other persons to whom he grants the right or possibility to use the leased thing.


4. Where one of the lessees violates the duty provided for in paragraph 2 of this Article, the other lessees shall be entitled to a reduction of the lease payment if the lessor has been notified of the hindrances.


5. The lessor shall have the right, without prejudice to the rights of the lessee, to check if the lessee uses the leased thing in a proper way. In addition, the lessor shall have the right to show the leased thing to a prospective lessee or acquirer.


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1. The lessee shall have the right to sublease the leased thing only with the written consent of the lessor unless otherwise provided for by the contract. The contract of sublease may not be concluded for a period exceeding the term of the contract of lease.


2. A refusal of the lessor to consent to the sublease of the thing must be reasonably motivated. If the lessor refuses to consent without any reasonable grounds, the lessee shall have the right to dissolve the contract before its expiry.


3. If the consent of the lessor for the sublease of a thing is not necessary, the lessee, before concluding the contract of sublease, must inform the lessor about the contract of sublease and the sublessee.


4. If the contract of lease is void, the contract of sublease shall also be void.


5. The rules established in this Article shall also apply to the lease for use.


6. The lessee shall be liable towards the lessor both in the event of sublease and the lease for use.   If a sublessee substantially violates the contract of sublease and inflicts damage by his actions to the lessor or to other lawful users of that thing, the lessor shall have the right to demand dissolution of the contract of sublease.


7. In the event where the lessor fails to perform his obligations under the contract of lease, the


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of the contract of sublease.


7. In the event where the lessor fails to perform his obligations under the contract of lease, the sublessee may also submit a claim on behalf of the lessee.


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Article 6.491. Assignment or encumbrance of rights and duties of a lessee


1. The lessee shall have the right, upon the written consent of the lessor obtained in advance, to assign his rights and duties under the contract of lease, to pledge the right of lease or to transfer it as a property contribution or to effectuate any other encumbrance thereof unless otherwise provided for by the contract of lease.


2. In the event of the assignment of the rights and duties of the lessee to another person in accordance with the procedure established in paragraph 1 of this Article, the lessee shall be relieved from his obligations towards the lessor resulting from the contract of lease.


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1. The lessor must make major repairs of the leased thing at his own expense unless otherwise provided for by laws or the contract. 


2. If the lessor fails to comply with the duty provided for in paragraph 1 of this Article, the lessee shall acquire the right, upon obtaining the authorisation of the court, to make major repairs and recover from the lessor the price of the repairs, or to withhold it from the lease payment, or to dissolve the contract and claim damages caused by failure to perform the contract. In this event, the lessee must submit to the lessor the estimate and invoice of the works of major repairs.


3. The lessee must provided all the conditions necessary for the proper performance of the duty of the lessor indicated in paragraph 1 of this Article.


4. In the performance of his duty indicated in paragraph 1 of this Article, the lessor shall have the right to require from the lessee to temporarily desist from the use of the leased thing if major repairs are necessary and urgent. If major repairs are not urgent and the lessee does not agree to be temporarily dispossessed of the leased thing, the lessor must obtain the authorisation of the court for the temporary restriction of the lessee’s right to use the leased thing.


5. The lessee whose right to use the leased thing is restricted shall have the right to obtain reduction of the lease payment, to demand


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The lessee whose right to use the leased thing is restricted shall have the right to obtain reduction of the lease payment, to demand compensation, or to apply for the dissolution of the contract of lease.


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Article 6.493. Duty of a lessee with regard to maintenance of a leased thing


1. The lessee must maintain the leased thing in a proper state and bear expenses for the maintenance of the thing and to make its current repairs at his own expense unless otherwise provided for by laws or the contract.


2. The lessee, on becoming aware of damage or any other serious defects of the leased thing for the elimination of which urgent major repairs are necessary, must immediately inform the lessor thereof.


3. In the event where the lessor, after he was informed by the lessee, fails to eliminate the defects, the lessee shall have the right to undertake the necessary repair works even without the authorisation of the court when it is necessary to ensure the preservation of the leased thing; in doing so the lessee shall inform the lessor accordingly and subsequently submit to him the documents confirming the value of the performed works as well as the replaced parts of the thing. Where necessary, the lessee may perform the necessary repairs of the thing by withholding the amount of the expenses from his payment of lease.


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Article 6.494. Validity of a contract in the event of the transfer of a thing to another owner or in the event of death of a lessee


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1. When the right of ownership of the leased thing passes from the lessor to another person, the contract of lease to be registered shall remain in force for the new owner, provided the rights resulting from the contract of lease have been registered in the public register in accordance with the procedure laid down by law.


2. The contract of lease shall remain valid even where the thing is passed from one state/municipal institution (lessor) to another.


3. Transfer of the right of ownership to the leased property from the lessor to another person shall be the grounds for the termination of the contract of lease in case of a demand of the lessee.


4. In the event of death of a lessee – natural person – who was leasing an immovable thing, his rights and duties under the contract of lease shall be passed to his heirs unless otherwise provided for by laws or the contract. In such event, the lessor shall have no right to refuse the heir of the deceased lessee the assignment of the rights and duties of the previous lessee for the remaining period of the lease, except in the cases when the conclusion of the contract was conditioned by the personal qualities of the lessee.


5. In the event of expropriation of the thing for public needs, the contract of lease shall terminate from the moment when the new owner of the expropriated thing (possessor) acquires possession of that thing.


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Article 6.495. Duty of a lessor to inform about a contract of lease

The lessor, in selling or in any other way transferring a leased thing, as well as pledging it or otherwise encumbering the right of ownership thereto, must inform the purchaser of the thing or the party to any other contract about the contract of lease in operation, likewise to inform the lessee of the intended sale, any other alienation of the thing, or of the encumbrance of the right thereto.

 


SECTION THREE

TERMINATION OF A C CONTRACT OF LEASE

 


Article 6.496. Termination of a contract of lease upon expiry of its time limit

A fixed-term contract of lease shall terminate upon expiry of its time limit unless the parties renew the contract by concluding a new agreement or in accordance with the procedure laid down in Article 6.481 of this Code.


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Article 6.497. Dissolution of a contract before expiry of the term upon demand of the lessor


1. The lessor shall have the right to bring an action before a court for the dissolution of a contract of lease before expiry of the term if:


1) the lessee uses the thing in violation of the contract or not according to the designation of the thing;


2) the lessee intentionally or through negligence worsens the state of the thing;


3) the lessee fails to pay the payment of lease;


4) the lessee fails to perform major repairs in those cases where the laws or the contract obligate him to do so;


5) there exist other grounds provided for by the contract of lease.


2. Unless otherwise provided for by the contract of lease, termination of the contract of lease before expiry of the term shall also entail the termination of the contract of sublease.


3. The lessor shall have the right to demand dissolution of the contract of lease before expiry of the term only after he has sent a written warning to the lessee about the necessity to perform the obligation or eliminate violations within a reasonable time, but the lessee, having received such warning, failed to perform the obligation or to eliminate the violations within a reasonable time.


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Article 6.498. Dissolution of a contract before time upon demand of a lessee

The lessee shall have the right to bring an action to a court for dissolution of a contract of lease before time, if:


1) the lessor fails to carry out the repairs he is obliged to;


2) the thing by virtue of circumstances for which the lessee is not liable becomes not fit for use;


3) the lessor fails to transfer the thing to the lessee or hinders the use of the thing in accordance with its designation and the conditions of the contract;


4) the thing transferred has defects which were not stipulated by the lessor and were unknown to the lessee and which render the thing impossible to be used in accordance with its designation and the conditions of the contract;


5) there exist other grounds provided for by the contract of lease.


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Article 6.499. Return of a thing to the lessor


1. Upon the termination of the contract of lease, the lessee must return the thing to the lessor in the state he received it, taking into account normal wear and tear, or in the state agreed in the contract.


2.  In the event where the lessee returns the thing after the term, the lessor shall have the right to demand effectuation of the lease payment for the entire time of the delay and compensation for damages incurred by such delay.


3. In the event of the failure on the part of the lessee to return the leased thing, he must compensate the lessor for the value of that thing, likewise to effectuate the payment of lease and compensate for other damages incurred by the lessor.

 


Article 6.500. Liability of a lessee for deterioration of a thing

In the event of the lessee causing deterioration of the leased thing, he must compensate the lessor for damages caused by the deterioration, except in the cases where the lessee proves that the deterioration occurred not due to his fault.


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Article 6.501. Improvement of a thing


1. In the instances where the lessee with the permission of the lessor has made improvements of the leased thing, he shall have the right to compensation of the necessary expenses incurred by him for that purpose.


2. In the event where the improvements made by the lessee without the permission of the lessor are separable without harm to the leased thing, and where the lessor does not agree to compensate for them, they may be taken out by the lessee.


3. The value of improvements which are not separable without harm to the leased thing made by the lessee without the permission of the lessor shall not be subject to obligatory compensation.


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Article 6.502. Liability of a lessee for loss of a thing


1. The lessee shall be liable for the loss of a thing unless he proves that the loss was not due to his fault or the fault of other persons to whom he, upon the permission of the lessor, granted the right of use of the leased thing or allowed access thereto.


2. The lessee shall not be liable for the loss of an immovable thing by the reason of fire unless it is proved that the fire occurred due to his fault or the fault of other persons to whom he, upon the permission of the lessor, granted the right of use of the leased thing or allowed access thereto.


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Article 6.503. Purchase of leased property


1. It may be provided for by laws or the contract of lease that the leased thing shall pass to the ownership of the lessee upon the expiry of the time limit of the contract of lease or before the expiry thereof if the lessee pays the entire amount of the price stipulated by the contract of sale by instalment (leasing).


2. Where the condition on the purchase of the leased thing is not provided for in the contract, it may be established by an additional agreement between the parties in which they may agree upon the set-off of the previously paid lease payment against the price of the thing. 


3. A prohibition of purchase of the leased thing may be established by laws or the contract.

 


SECTION FOUR

CONSUMER LEASE


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SECTION FOUR

CONSUMER LEASE

 


Article 6.504. Concept of a contract of consumer lease


1. Under a contract of consumer lease, the lessor, i.e. the person whose permanent business activity is leasing of things, shall undertake to grant a movable thing to the lessee (consumer) into his temporary possession and use for payment for the personal purposes of the lessor or his family, or for household purposes thereof, provided that it is not connected with business or professional activity, while the lessee shall undertake to pay the payment of lease.


2. A contract of consumer lease shall be a consumer contract and shall be regulated, mutatis mutandis, by the rules governing consumer contracts established by this Code.

 


Article 6.505. Term of a contract of consumer lease


1. The term of a contract of consumer lease may not exceed one year.


2. Rules established in Articles 6.481 and 6.482 of this Code shall not apply to the contract of consumer lease.


3. The lessee shall have the right to repudiate the contract at any time, having warned the lessor about that not later than ten days before the repudiation of the contract.


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Article 6.506. Form of a contract of consumer lease

A contract of consumer lease must be concluded in written form or in any other specially determined form (invoice, tag, etc.).

 


Article 6.507. Duty of the lessor to make repairs of the thing under a contract of consumer lease

The lessor must make major and current repairs of the thing leased under a contract of consumer lease.

 


Article 6.508. Delivery of a thing to the lessee

Upon the conclusion of the contract of consumer lease, the lessor must, in the presence of the lessee, check the state of the thing being leased, familiarise the lessee with the rules for the use of that thing or furnish him with written instructions on the use thereof.


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Article 6.509. Elimination of defects in a leased thing


1.  In the event of discovery of defects in the leased thing which wholly or partly obstruct the use thereof, the lessor must, within ten days from the date of receiving the statement of the lessee concerning the defects, unless a shorter period has been determined by the contract of consumer lease, eliminate the defects free of charge on the site or replace it with an analogous thing in a proper state.


2. In the instances where the defects in the thing appeared as a consequence of a violation by the lessee of the rules for the use and maintenance of the thing, the lessee must compensate the lessor for the costs of repair and transportation of the thing. 

 


Article 6.510. Lease payment


1. The lease payment shall be determined in the contract of consumer lease in the form of a sum of money to be paid in a lump sum or in several instalments.


2. In the event where the lessee returns the thing to the lessor before time, the latter must return to the lessee the corresponding part of the lease payment calculated from the day following the day of the actual return of the thing.


3. The lessor shall have no right to unilaterally increase the lease payment after the conclusion of the contract.


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Article 6.511. Limitation of the rights of the lessee

The lessor under the contract of consumer lease shall have no right to sublease a leased thing, to transfer his rights and duties under the contract of consumer lease to another person, to conclude a contract of loan for use in respect of that thing, to pledge the rights under the contract of consumer lease, or transfer them in the form of property contribution.

 


SECTION FIVE

LEASE OF MEANS OF TRANSPORT WITH PROVISION OF

SERVICES RELATING TO DRIVING AND TECHNICAL MAINTENANCE

 


Article 6.512. Concept of a contract of lease of means of transport with provision of services relating to driving and technical maintenance


1. Under a contract of lease of means of transport with provision of services relating to driving and technical maintenance, the lessor shall undertake to grant means of transport to the lessee for his temporary use for payment and render services with regard to driving and technical maintenance thereof, while the lessee shall undertake to pay the lease payment.  


2. The rules established in Articles 6.481 and 6.482 of this Code shall not apply to a contract of lease of means of transport with provision of services relating to driving and technical maintenance.


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Article 6.513. Form of a contract

Irrespective of its duration, a contract of lease of means of transport with provision of services relating to driving and technical maintenance must be concluded in writing.

 


Article 6.514. Duty of the lessor relating to maintenance of means of transport 

The lessor must, throughout the entire period of the contract of lease, ensure the proper technical state of the means of transport leased, likewise make the current and major repairs and provide necessary appurtenances.


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Article 6.515. Duty of the lessor to provide services relating to driving and technical maintenance


1. The lessor must provide services relating to driving and technical maintenance of means of transport, which would allow ensuring its normal and safe operation in accordance with the conditions of the contract of lease.  In the contract of lease of means of transport, the parties may foresee other services to be provided to the lessee by the lessor.


2. The lessor must ensure that the skills of the person or persons who drive the means of transport as well as other requirements established thereto conform to the criteria determined in laws and the contract of lease of means of transport.


3. Persons driving the leased means of transport shall be employees of the lessor. They shall follow the instructions of the lessor with respect to the technical maintenance of the means of transport, as well as to the requirements of the lessee with respect to the use of the means of transport.


4. Unless otherwise provided for by the contract of lease of means of transport, expenses relating to the sustenance of the persons driving the leased means of transport, as well as their wages shall be borne by the lessor.


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Article 6.516. Duty of the lessee to pay the expenses connected with the use of means of transport for commercial purposes

Unless otherwise provided for by the contract of lease of means of transport, the lessee must bear expenses arising from the use of means of transport for commercial purposes, the cost of fuel and other materials utilised, as well as the payment of dues.

 


Article 6.517. Insurance of means of transport

Unless otherwise provided for by the contract of lease of means of transport, the duty to insure the means of transport and the civil liability of its operator shall rest upon the lessor.

 


Article 6.518. Contracts with third persons


1. Unless otherwise provided for by the contract of lease of means of transport, the lessee shall have no right to sublease the means of transport to third persons without the consent of the lessor.


2. Unless otherwise provided for by the contract of lease of means of transport, the lessee shall have the right, without the consent of the lessor, to conclude in his own name contracts of carriage as well as other contracts with third persons where this is not contrary to the purposes of the use of the means of transport.


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Article 6.519. Liability for damage caused to means of transport

Where the leased means of transport is destroyed or damaged, the lessee must compensate the lessor for the damage caused if the lessor proves that the means of transport was destroyed or damaged due to the circumstances for which the lessee is responsible.

 


Article 6.520. Liability for damage caused to third persons

The lessor shall be held liable for the damage caused to third persons by the leased means of transport.  Having compensated the damage, the lessor shall have the right of recourse against the lessee for recovery of the amount paid in the event where the damage was caused through the fault of the lessee.

 


Article 6.521. Peculiarities of lease of individual types of means of transport with provision of services relating to driving and technical maintenance 

Peculiarities of lease of certain types of means of transport with provision of services relating to driving and technical maintenance may be determined by the codes regulating individual modes of transport.

 


SECTION SIX

LEASE OF MEANS OF TRANSPORT WITHOUT PROVISION OF

SERVICES RELATING TO DRIVING AND TECHNICAL MAINTENANCE


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Article 6.522. Concept of a contract of lease of means of transport without provision of services relating to driving and technical maintenance


1. Under a contract of lease of means of transport without provision of services relating to driving and technical maintenance, the lessor shall undertake to provide the means of transport to the lessee in temporary possession and use for payment, while the lessee shall undertake to pay the payment of lease.


2. The rules established in Articles 6.481 and 6.482 of this Code shall not apply to the contract of lease of means of transport without provision of services relating to driving and technical maintenance.

 


Article 6.523. Form of a contract

Irrespective of its duration, a contract of lease of means of transport without provision of services relating to driving and technical maintenance must be concluded in writing.

 


Article 6.524. Duty to maintain the means of transport

The lessee must, throughout the entire period of lease, ensure the technical maintenance and proper state of the means of transport leased and effectuate current and major repairs thereof unless otherwise provided for by the contract.

 


Article 6.525. Duty of the lessee in respect of driving and operation of the means of transport

The driving and commercial and technical operation of the means of transport leased shall be ensured by the lessee with his own forces and at his own expense.


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Article 6.526. Duty of the lessee with regard to payment of expenses connected with the use of the means of transport and other expenses

Unless otherwise provided for by the contract of lease of means of transport, the lessee must bear expenses connected with the use and sustenance of the means of transport, likewise pay insurance contributions.

 


Article 6.527. Contracts with third persons


1. Unless otherwise provided for by the contract of lease of means of transport, the lessee shall have no right, without the consent of the lessor, to sublease the means of transport to third persons under the conditions of the contract of lease.


2. Unless otherwise provided for by the contract of lease of means of transport, the lessee shall have the right, without the consent of the lessor, to conclude in his own name contracts of carriage as well as other contracts with third persons where this is not contrary to the purposes of the use of the means of transport.

 


Article 6.528. Liability for damage caused to third persons

The lessee shall be held liable for the damage caused to third persons by the leased means of transport.


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Article 6.529. Peculiarities of lease of individual types of means of transport without provision of services relating to driving and technical maintenance

Peculiarities of lease of certain types of means of transport without provision of services relating to driving and technical maintenance may be determined by the codes regulating individual modes of transport.

 


SECTION SEVEN

LEASE OF BUILDINGS, CONSTRUCTION WORKS AND INSTALLATIONS

 


Article 6.530. Concept of a contract of lease of buildings, construction works and installations


1. Under a contract of lease of buildings, construction works and installations, the lessor shall undertake to transfer for payment a building, construction works or installation to the lessee in temporary possession and use or temporary use, while the lessee shall undertake to pay the payment of lease.


2. The provisions of this Section shall apply to the lease of enterprises to the extent that they are not contrary to the provisions of Section Eight of this Chapter.

 


Article 6.531. Form of a contract


1. A contract of lease of buildings, construction works and installations must be concluded in writing.


2. A contract of lease of buildings, construction works and installations may be invoked against third persons only if it is registered in the public register.


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1. Under a contract of lease of buildings, construction works and installations, the rights of the use of that part of the land plot which is occupied by the relevant buildings, construction works and installations and is necessary for the use thereof in accordance with their designation shall pass to the lessee simultaneously with the transfer of the subject matter of lease.


2. In the event where the lessor is the owner of the land plot on which the leased buildings, construction works or installations are situated, the land plot shall be provided for the use of the lessee under the right of lease or on any other right stipulated in the contract of lease of buildings, construction works and installations.


3. In the event where the rights of the lessee to the land plot occupied by the relevant buildings, construction works or installations are not determined in the contract of lease of buildings, construction works and installations, it shall be deemed that the lessee is granted, for the entire period of the lease, the right to use gratuitously that part of the land plot which is necessary for the use of the buildings, construction works and installations in accordance with their designation. 


4. The lease of buildings, construction works or installations situated on the plot of land which does not belong to the lessor by the right of ownership shall be permitted without the consent of the owner of this plot exclusively where this is not contrary to laws or the contract between the owner of the plot of land and the


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without the consent of the owner of this plot exclusively where this is not contrary to laws or the contract between the owner of the plot of land and the lessor of the buildings, construction works and installations.


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Article 6.533. Right of the lessee to use a land plot in the event of substitution of its owner

In the event where the land plot occupied by the leased buildings, construction works or installations is sold or transferred on any other grounds into the possession of another person under the right of ownership, the lessee shall retain the right to use that part of land plot which is necessary for the use of buildings, construction works and installations in accordance with their designation under the same terms as existed before the alienation of the land plot into the ownership of another person, providing the contract of lease was registered in the public register in accordance with the procedure established by laws.

 


Article 6.534. Payment of lease


1. The payment of lease shall be determined by agreement between the parties.


2. The payment of lease established in the contract shall include payment for the use of the land plot on which the leased buildings, construction works or installations are situated unless otherwise provided for by laws or the contract of lease.


3. In the instances where the payment of lease has been established per unit of space of the building, construction works or installation or any other dimension thereof, the lease payment shall be determined taking into account the actual size of the leased building, construction works or installation.


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Article 6.535. Transfer of a building, construction works or installation


1. The transfer of a building, construction works or installation and the acceptance thereof shall be effectuated under the transfer and acceptance deed. The deed shall be signed by both parties.


2. Unless otherwise provided for by laws or the contract, the obligation of the lessor to transfer the building, construction works or installation to the lessee shall be considered to have been performed after the actual granting of the building, construction works or installation to the lessee or upon the signing of the transfer and acceptance deed.


3. In the event of one party of the contract avoiding to sign the transfer and acceptance deed of a building, construction works or installation under the conditions agreed in the contract of lease, it shall be considered as a refusal, respectively, by the lessor to perform his obligation with regard to the transfer of the relevant building, construction works or installation, or by the lessee to accept them.


4. Upon the termination of a contract of lease of a building, construction works or installation, they must be returned to the lessor in accordance with the rules determined in this Article.

 


SECTION EIGHT

LEASE OF AN ENTERPRISE


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1. Under a contract of lease of an enterprise, the lessor shall undertake to grant to the lessee in temporary possession and use for payment an enterprise as a property complex used for business purposes, while the lessee shall undertake to pay the payment of lease. The granting of an enterprise as a property complex to the lessee shall also comprise a transfer of the plot of land, buildings, construction works, installations, equipment, other means of production specified in the contract, raw materials, stocks, working capital, rights to the use of the land, water and other natural resources, buildings, construction works or installations, likewise any other property rights connected with the enterprise, the rights to the product or service mark and the name of the firm as well as other exclusive rights. The transfer of an enterprise as a property complex shall also comprise the assignment of the rights to claim and obligation of debts determined in the contract of lease. The transfer of the rights of possession and use of property which is in the ownership of other persons, likewise the transfer of rights of possession and use of land and other natural resources shall be effectuated in accordance with the procedure established by laws.


2. The rights of the lessor acquired by him on the basis of an authorisation (licence) may not be transferred to the lessee under the contract of lease of the enterprise, except in cases provided for by laws or the contract. The inclusion in the composition of obligations of the transferable enterprise of such


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lease of the enterprise, except in cases provided for by laws or the contract. The inclusion in the composition of obligations of the transferable enterprise of such obligations whose performance by the lessee is impossible in the absence of pertinent authorisation (licence) shall not relieve the lessor from the relevant obligations to the creditors.


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Article 6.537. Rights of the creditors of the enterprise in the event of its lease


1. The lessor of an enterprise must, before the transfer thereof to the lessee, notify in writing the creditors of the enterprise about its lease.


2. A creditor of the enterprise who has not communicated to the lessor in writing his prior consent to the delegation of the debt shall have the right, within three months from the date of receiving notification about the lease of the enterprise, to demand dissolution of the contract concluded by him or early performance of that contract and compensation of damages.


3. A creditor of the enterprise who has not been informed about the lease of the enterprise in accordance with the procedure established in paragraph 1 of this Article shall have the right to bring the claims provided for in paragraph 2 of this Article against the lessor within the period of one year from the date when he became aware or should have become aware of the lease of the enterprise.


4. Upon the lease of the enterprise, the lessor and the lessee shall be solidarily liable for the debts of the enterprise which were delegated to the lessee without the creditor’s consent.


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Article 6.538. Form of a contract


1. A contract of lease of an enterprise must be concluded in written form by means of drawing up one document.


2. Failure to comply with the requirements as to the form of a contract of lease of an enterprise shall render the contract null and void.


3. A contract of lease of an enterprise may be invoked against third persons only where it has been registered in the public Real Property Register and the Register of Legal Entities.

 


Article 6.539. Transfer of an enterprise


1. The transfer of a leased enterprise shall be effectuated under the transfer and acceptance deed.


2. The preparation of the enterprise for the transfer, including the drawing up of the transfer and acceptance deed, shall be the duty of the lessor to be performed at his own expense unless otherwise provided for by the contract of lease of the enterprise.


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Article 6.540. Use of property of a leased enterprise


1. Unless otherwise provided for by the contract of lease of the enterprise, the lessee shall have the right, without the consent of the lessor, to sell, exchange, transfer for temporary use raw materials, stocks, manufactured products which are part of the property of the leased enterprise, to sublease them and transfer his rights and obligations in respect of those valuables under the contract of lease, on condition that this does not entail violation of the provisions of the contract of lease of the enterprise and reduction of the value of the enterprise.


2. Unless otherwise provided for by the contract of lease of the enterprise, the lessee shall have no right, without the consent of the lessor, to make changes in the leased enterprise as a property complex, perform its reconstruction, modernisation, expansion of its capacity, technical re-equipment or introduce any other transformations.


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Article 6.541. Duty of a lessee to ensure the operation of a leased enterprise


1. The lessee of an enterprise must, within the entire term of the lease, ensure proper technical state of the enterprise and perform its current and major repairs.


2. The lessee must bear all the expenses relating to the operation of the leased enterprise, pay for the insurance of the property of the enterprise and effectuate any other payments unless otherwise provided for by the contract of lease of the enterprise.

 


Article 6.542. Improvements of an enterprise


1. The lessee of an enterprise shall have the right to compensation for the expenses incurred in respect of inseparable improvements of the enterprise providing that the consent of the lessor for such improvement was obtained, except in cases when otherwise provided for by the contract of lease of the enterprise.


2. The lessor may be relieved from the obligation to compensate expenses indicated in paragraph 1 of this Article if he can prove that the expenses of the lessee increased the value of the enterprise incommensurately to the improvements of its quality and/or operational properties, or that when effectuating such improvements the criteria of good faith and reasonableness were violated.


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Article 6.543. Arising of effects of nullity of transactions and other legal effects to a contract of lease of an enterprise

The provisions of this Code concerning the effects of nullity of transactions, the legal effects of dissolution or change of a contract, likewise those providing for the return of property or the recovery in kind shall apply to contracts of lease of an enterprise to the extent that this does not violate in essence the rights and interests of the lessor, lessee and other persons, and is not contrary to public order.

 


Article 6.544. Return of a leased enterprise

In the event of the termination of a contract of lease of the enterprise, the lessee must return the enterprise to the lessor in accordance with the rules established in Articles 6.536, 6.537 and 6.539 of this Code.  The preparation of the enterprise for the transfer, likewise the drawing up of the transfer and acceptance deed shall be the duty of the lessee to be performed at his own expense unless otherwise provided for by the contract of lease of the enterprise.

 


CHAPTER XXIX

LEASE OF LAND


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CHAPTER XXIX

LEASE OF LAND

 


Article 6.545. Concept of a land lease contract


1. Under a land lease contract, one party (lessor) shall undertake to transfer for payment a plot of land to the other party (lessee) in temporary possession and use for the purposes specified in the contract and under conditions established therein, while the lessee shall undertake to pay the payment of land lease indicated in the contract.


2. Separate laws of the Republic of Lithuania may stipulate the peculiarities in respect of the lease of land to diplomatic and consular missions of foreign states, likewise the lease of land plots located in free economic zones, the territory of the seaport or any other specific locations.

 


Article 6.546. Subject matter of a land lease contract

The subject matter of a land lease contract shall be a plot of land (or a part thereof) in the state or private ownership formed in accordance with the procedure established by laws and registered in the Real Property Register.


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Article 6.547. Form of a land lease contract


1. A land lease contract must be concluded in writing.


2. A land lease contract may be invoked by the parties against third persons only if it is registered in the public register in accordance with the procedure established by laws.


3. A land lease contract must be appended with the plan of the land plot to be leased, and in the event of the land to be leased for the period of up to three years, with the scheme of the land plot.  These documents shall form an inseparable part of the land lease contract.

 


Article 6.548. Lessor of land and the lessee of land


1. The lessor of land in private ownership shall be the owner of the private land.


2. A contract of lease of public land shall be formed, within its remit, by an institution which performs the functions of the manager of public land.


3. In the event of a plot of land belonging to several persons under the right of co-ownership, the land plot concerned may be leased upon the written consent of all the co-owners.


4. Lessees may be natural and legal persons of the Republic of Lithuania and foreign states.


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Article 6.549. Duration of a land lease contract


1. The duration of a contract of lease of land in private ownership shall be established by agreement between the lessor and the lessee.  The parties may also conclude an open-ended land lease contract.


2. The duration of a contract of lease of public land shall be established by agreement between the lessor and the lessee; nevertheless, the term may not exceed ninety-nine years.


3. A shorter maximum duration of a land lease contract may be stipulated by laws.


4. Where the land plot pursuant to the territorial planning documents is allocated to be used for public needs, such land plot shall be leased only for a period until it is expropriated for the intended purposes.  In the event of the contract being concluded for a longer period, it shall be deemed to be concluded only for the duration until the expropriation of the land plot.


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Article 6.550. Content of a land lease contract


1. The following must be indicated in a land lease contract: 


1) the lessor of the land;


2) the lessee of the land;


3) the data on the object of the land lease registered in the land cadastre and the public register;


4) duration of the lease of land;


5) the principal designation of land use;


6) conditions of use of the construction works and installations situated on the leased land and belonging to the owner of the land or any other persons by the right of ownership, as well as conditions for erecting new buildings and construction works, building of roads and water reservoirs, or other conditions, likewise the intended use of the buildings or construction works upon the expiry of the time limit of the land lease contract;


7) conditions of use of the surface and subterranean waters, mineral  resources (with the exception of amber, oil, natural gas and quartz-sand) found in the leased land to the extent that they are not contrary to laws;


8) special conditions of the use of land;


9) restrictions on the use of land;


10) land servitudes and other real rights;


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10) land servitudes and other real rights;


11) payment for the land lease.  It shall include payment for the land reclamation installations, roads, bridges, engineering equipment, etc., likewise indexing of the payment in the event of the lease of public land;


12) other commitments of the lessor and the lessee related to the use of the land plot and its return upon the expiry of the land lease contract;


13) liability for infringements of the land lease contract.


2. A land lease contract may not provide for:


1) authorisation issued to the lessee to represent the owner of the land and dispose of the private land of this owner and any other immovable property situated therein;


2) the right of a lessee of land in private ownership to change the principal designation of land use.


3. The conditions of the land lease contract, which determine the manner of use of the leased land, must not conflict with the interests of environmental protection and those of the owners or users of the neighbouring land plots, as well as public interests.


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Article 6.551. Lease of public land


1. Public land, with the exception of cases provided for in paragraph 2 of this Article, shall be leased by competitive bidding in accordance with the procedure established by the Government to a person who offers the highest payment for the lease of land.


2. Public land shall be leased not by competitive bidding in the instances when it is built over by buildings, construction works or installations that belong to natural or legal persons by the right of ownership or are leased by them, likewise in other cases provided for by laws.

 


Article 6.552. Payment of land lease


1. Payment of lease of land in private ownership shall be determined by agreement between the lessor and the lessee.


2. Payment of lease of public land which is not leased by competitive bidding shall be determined in accordance with the procedure established by legal acts.


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Article 6.553. Sublease of land


1. The lessee of land shall have the right, upon written consent of the lessor, to sublease the leased land in compliance with the requirements and conditions stipulated in the land lease contract.


2. Land designated for agricultural purposes may not be subleased for any other purposes than determined in the land lease contract.


3. The contract of the sublease of land shall be concluded in accordance with the requirements laid down for a land lease contract.

 


Article 6.554. Reimbursement of expenses incurred by the lessee for the improvement of land designated for agricultural purposes

Expenses incurred by the lessee for the improvement of land designated for agricultural purposes shall be reimbursed where it is provided for in the land lease contract or when both parties agree (by additional written agreement) prior to the commencement of the work concerned upon the character, scope and costs of the land improvement work.


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Article 6.555. Duty of the lessor to repair land reclamation installations, roads, bridges and other engineering facilities 


1. Unless otherwise provided for by laws or the land lease contract, the lessor must repair, at his own expense, land reclamation installations, roads, bridges and other engineering facilities owned by him.  In the event where the lessor fails to perform this duty, which renders the land plot impossible to be used for its designation, the lessee shall have the right to dissolve the contract.


2. Where the lessor fails to perform the repair work indicated in paragraph 1 of this Article, which has been declared necessary and urgent by the relevant public authorities, the lessee shall have the right to perform the repair work himself and recover from the lessor, within judicial proceedings, the repair expenses necessary to ensure the functioning of the leased property.


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Article 6.556. Duty of the lessee in regard to the preservation of the soil and its quality, proper maintenance of land reclamation installations, roads, bridges, other engineering facilities and plantations


1. The lessee shall be prohibited from performing any actions in the leased land plot which might result in destruction or pollution of the fertile layer of the soil. Unless otherwise provided for by the land lease contract, the lessee must perform, at his own expense and within the procedure established by laws, minor maintenance work of the land reclamation installations, roads, bridges and other engineering facilities belonging to the lessor, preserve protective and other signs, likewise ensure the compliance with the environmental requirements in the territory. Where the lessee fails to perform these duties, the lessor shall have the right to recover, within the judicial proceedings, from the lessee the funds necessary for the performance of the indicated work and damages incurred as a result of the non-performance of the duties specified in this Article, and to dissolve the land lease contract.


2. In the event of improper use of agricultural land by the lessee which results in deterioration of its quality, the lessee of the land must compensate the lessor for the damages caused.


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Article 6.557. Right of the lessee to compensation for erected buildings, construction works and installations


1. Upon the expiry of the time limit of the land lease or upon its dissolution before the term, the owner of the land shall compensate the lessee for the erected buildings, construction works and installations, the construction of which was provided for in the land lease contract; and where the buildings remain in the possession of the lessee by the right of ownership, the latter shall have the right to the land servitude, providing that it was stipulated in the land lease contract or in the additional written agreement.


2. In the event where the buildings, construction works and installations were erected without permission, or where the erected buildings, construction works and installations were not stipulated in the land lease contract, the lessee must demolish them and restore the land plot. If the lessee fails to comply, this shall be executed by the lessor at the expense of the lessee, or the buildings, construction works and installations concerned shall pass to the lessor by the right of ownership, providing they conform to the requirements established in the territorial planning documents and are legitimised in accordance with the procedure established by laws.


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Article 6.558. Validity of a land lease contract upon the substitution of the lessee of land


1. Upon the death of the lessee, the rights and duties thereof related with the lease contract shall pass on to his heirs, providing that they do not relinquish these rights and duties. In the event of the lessee’s heirs relinquishing the land lease contract, they must compensate the lessor for the damages incurred in connection with this.


2. Where the lessee of land is a legal person and it is being reorganised, his rights and duties pursuant to the contract shall pass on to the new legal person.

 


Article 6.559. Validity of a land lease contract upon the substitution of the lessor of land

In the event of the death of the land owner, or passing of the land ownership rights to another owner on any other legal grounds, or upon the substitution of the lessor of public land, the land lease contract shall be valid in respect to the new owner of the land or the new lessor of public land, providing that the contract was registered in the public register in accordance with the procedure established by laws.


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Article 6.560. Duty of the lessor to notify about the lease contract

Before executing the sale or any other alienation of the leased land, likewise before mortgaging the land or otherwise encumbering the rights thereto, the lessor must notify the acquirer of the land plot as well as the prospective mortgager about the existence of the land lease contract, while the lessee must be notified about the forthcoming alienation of the land plot or any other encumbrance of the rights thereto.

 


Article 6.561. Prohibition to lease mortgaged land

In the event of failure by the owner of mortgaged land to satisfy debt obligations within the time established in the contract, and after a ruling is passed by a mortgage judge to arrest the mortgaged land, it shall be prohibited to lease the land concerned.


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Article 6.562. Expiry of a land lease contract

A land lease contract shall be terminated:


1) upon the expiry of the time limit of lease;


2) after the death of the lessor of land where his heirs do not assume the rights and duties related to the lease contract, or in the case of absence of any heirs;


3) upon liquidation of the legal person that was the lessor of the land;


4) when the leased land is sold, gifted or otherwise alienated to the lessee;


5) upon the dissolution of the land lease contract on the grounds established in Articles 6.563, 6.564 and 6.565 of this Code;


6) by agreement between the parties. 

 


Article 6.563. Dissolution of a land lease contract upon the expropriation of land for public needs

In the event of the land being expropriated for public needs, the land lease contract shall be dissolved and the damages incurred by the lessor and the lessee compensated in accordance with the procedure established by laws.


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Article 6.564. Dissolution of a land lease contract at the demand of the lessor before the expiry of its time limit


1. A land lease contract may be dissolved at the demand of the lessor before the expiry of its time limit:


1) if the lessee of the land fails to use the land in conformity with the contract or the principal designation of land use;


2) if the lessee of the land fails to execute payment for the land lease within the period of three months from the payment date established in the land lease contract;


3) in other cases provided for by law.


2. A written notice about the dissolution of a land lease contract must be given by the lessor to the lessees of agricultural land not later than three months prior to the dissolution of the lease contract, and to the lessees of any other land, not later than two months prior to the dissolution of the lease contract.


3. In the event of a contract of the lease of agricultural land being dissolved before the expiry of its time limit at the demand of the lessor, the harvest shall be gathered by the lessee, or the lessor shall compensate the lessee for the damages incurred due to the dissolution of the contract.


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Article 6.565. Dissolution of a land lease contract at the demand of the lessee before the expiry of its time limit


1. In the event of lease of agricultural land, a lease contract of such land may be dissolved before the expiry of its time limit at the demand of the lessee upon prior notification of the lessor not later than three months before the dissolution, and in the event of lease of any other land, not later than two months before the dissolution of the contract of lease.


2. In the event of failure by the lessor to perform the duties specified in Article 6.555 of this Code, the lessee shall have the right to dissolve the land lease contract without being bound by the procedure established in paragraph 1 of this Article.

 


Article 6.566. Right of a lessee to renew a land lease contract

Upon the expiry of the time limit of a land lease contract, and along with the previous lessee there being several other contenders for the lease of the land on the same conditions, priority right to form a new land lease contract shall be awarded to the former lessee, providing that he duly performed the duties assumed under the land lease contract.

 


CHAPTER XXX

LEASING (FINANCIAL LEASE)


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CHAPTER XXX

LEASING (FINANCIAL LEASE)

 


Article 6.567. Concept of a leasing (financial lease) contract


1. Under a leasing (financial lease) contract, one party (the lessor) shall undertake to acquire from a third party a thing specified by the other party (the lessee) and place it, in return for payment, at the possession of the lessee for business purposes provided that, upon payment of the total amount stipulated in the leasing contract, the thing will pass to the ownership of the lessee, unless otherwise provided for by the contract. The provisions of this Chapter shall also apply mutatis mutandis in cases where the lessor is the owner of the leased property.


2. The lessor shall select the seller and the thing in accordance with the instructions of the lessee and shall not be liable with respect to the selection of the seller or the leasing object, unless otherwise provided for by the leasing contract.


3. The lessor may, under the contract, be a bank or another legal person operating for profit.


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Article 6.568. Subject matter of a leasing contract


1. The subject matter of a leasing contract may be any non-consumable movable or immovable thing, with the exception of land and natural resources.


2. The lessor may transfer to third parties all or part of his rights related to the leasing contract and its subject matter. Such transfer of rights shall be without prejudice to the lessor’s obligations under the leasing contract where the time limit for meeting such obligations is due before transfer of such obligations to third parties and shall be without prejudice as to the substance of the leasing contract.


3. The lessee may transfer the right to the use of the subject-mater of the leasing contract or any other right under the leasing contract only upon a prior written consent of the lessor.


4. Unless otherwise provided for by the leasing contract, the lessor shall have no right, without a written consent of the lessee, to pledge the leasing object.

 


Article 6.569. Lessor’s duty to notify of the leasing contract

When acquiring a thing for the purpose of leasing it to the lessee, the lessor must notify the seller of his intention to transfer the thing, under leasing conditions, to a specific lessee.


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Article 6.570. Transfer of the leasing object


1. Unless otherwise provided for by the leasing contract, the seller shall transfer the thing, which is the subject matter of the leasing contract, directly to the lessee at the latter’s place of business.


2. Where the thing (the subject matter of the leasing contract) is not transferred to the lessee within the time limit specified in the leasing contract and if the time limit has not been specified in the leasing contract– within a reasonable time limit, the lessee shall have the right to terminate the leasing contract and claim damages where the failure to timely transfer the thing is due to circumstances the responsibility for which lies with the lessor.


3. The lessee shall have the right to suspend the payment of rentals until such time as the lessor has dully fulfilled his obligation to transfer the thing.


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Article 6.571. Risk of accidental perishing of or damage to the thing


1. The risk of accidental perishing of or damage to the thing (the subject matter of the leasing contract) shall pass to the lessee from the moment when such thing is transferred to him, unless otherwise provided for by the leasing contract.


2. The lessee shall bear all costs in relation to the maintenance and repair of the thing.


3. Unless otherwise provided for by the leasing contract, the lessor shall not be liable to the lessee for the defects of the subject matter of the leasing contract, with the exception of cases where the lessee relied on the lessor’s experience and knowledge and also where the lessor intervened in the selection of the seller and the subject matter of the contract.


4. The lessee must use and maintain the thing with diligence and due care and keep it in the condition in which it was handed over to him subject to fair wear and tear and to any modification agreed by the parties in the contract.


5. Where the lessee fails to comply with the duty provided for in paragraph 4 of this Article, the lessor shall have the right to require the payment of the total price of the contract or termination of the contract and compensation for damages.


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Article 6.572. Effect of the leasing contract on third parties


1. The lessor’s right of ownership in the subject matter of the leasing contract which is not subject to registration may be enforced against third parties only if the leasing contract has been registered in accordance with the procedure established by laws.


2. In the case of the lessee’s bankruptcy, the lessor’s rights may be enforced against the lessee’s creditors and the insolvency administrator only if the leasing contract has been registered in accordance with the procedure established by laws.

 


3. The leasing contract whose subject matter is an immovable thing shall mutatis mutandis be subject to the rules provided for in paragraph 2 of Article 6.478 of this Code.


4. The lessee shall be liable for any damages incurred by third parties as a result of the use of the subject matter of the leasing contract.


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Article 6.573. Seller’s liability


1. The seller shall be directly bound towards the lessee with respect to all claims resulting from the contract for the sale of the leasing object (with respect to the quality and completeness of the property, hand-over period, etc.). Save for the duty to pay for the acquired property, the lessee shall enjoy all rights and duties of the buyer provided for in this Book to the same extent as if he were a party to the sales contract. However, the lessee shall not have the right to terminate the sales contract without the consent of the lessor.


2. The lessor and the lessee shall have the rights and duties of solidary obligation with respect to the seller’s creditors.


3. Unless otherwise provided for by the leasing contract, the lessor shall not be liable to the lessee for the failure on the part of the seller to comply with his obligations, with the exception of cases where the lessor was responsible for the selection of the seller. Where the seller is selected by the lessor and the former is in breech of the sales contract, the lessee shall have the right to make claims resulting from such contract, at his own discretion, to both the seller and the lessor.  In such case, the seller and the lessor shall be solidarily liable to the lessee.


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Article 6.574. Termination of the leasing contract

In the event of a material breech of the leasing contract by the lessee, the lessor must require in writing that the lessee eliminates, within a reasonable time limit, the breach if this is possible taking into account specific circumstances. Where the lessee fails to do so, the lessor shall have the right to require early payment of rentals or to terminate the leasing contract. Where the leasing contract is terminated, the lessor shall have the right to require that the subject matter of the agreement be returned to him and to recover such damages as would place the lessor in the position in which he would have been had the lessee duly performed the contract.  

 


CHAPTER XXXI

LEASE OF DWELLINGS

 


SECTION ONE

GENERAL PROVISIONS

 


Article 6.575. Scope of application

The provisions of this Chapter shall determine the procedure of formation, performance and termination of contracts of lease of dwellings where the premises concerned belong to:


1) natural persons;


2) the State or municipalities;


3) legal persons.


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Article 6.576. Concept of a contract of lease of a dwelling

Under a contract of lease of a dwelling, the lessor shall undertake to provide, for payment, the lessee with a dwelling for temporary possession and use for residence, while the lessee shall undertake to use the premises in accordance with their designation and pay the payment of lease.

 


Article 6.577. Grounds for concluding a contract


1. Contracts of lease of state-owned or municipal dwellings shall be concluded upon the decision of state or municipal institutions. Enterprises, offices or organisations shall conclude contracts of lease of dwellings with their employees within the framework of a collective agreement, and in the event where such agreement is not concluded, the lease shall be effectuated on the grounds and within the procedure of an agreement between the administration and the employees.


2. Contracts of lease of dwellings leased by enterprises, offices or organisations and natural persons on commercial grounds (for profit) shall be concluded by agreement between the parties.


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1. Parties to a contract of lease of a dwelling shall be the lessor and the lessee.   


2. The lessor shall be the owner of the dwellings or the possessor thereof upon any other legal grounds.  A lessee may act in the capacity of a lessor of dwellings if he forms a contract of sublease under the procedure established by laws.


3. A lessee shall be a natural person who concludes a contract of lease of a dwelling in his own name and in his own interests, or those of his family, or the former members of his family. In the event where a minor who does not have parents or cannot live with them remains residing in the dwelling, a contract of lease of the dwellings in his name may be formed by a person authorised by law.


4. The lessor shall have no right to refuse forming a contract of lease of a dwelling with a person, or to extend it, or to impose more onerous conditions on the lessee for the sole reason that the person concerned is a pregnant woman or this person has minor children, with the exception of cases where such refusal is justified by the size of the dwelling or by the arrest thereof (paragraph 2 of Article 6.587 of this Code).


5. Dwellings may be provided for the possession and/or use of legal persons on the grounds of a contract of lease of a dwelling or upon any other contract. Such dwellings may be


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the possession and/or use of legal persons on the grounds of a contract of lease of a dwelling or upon any other contract. Such dwellings may be used by the legal person exclusively for housing natural persons.


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Article 6.579. Form of a contract


1. In the event where the lessor is the State, municipality or a legal person, a contract of lease of a dwelling must be concluded in writing. It shall be signed by an authorised official and the lessee. 


2. Contracts of lease between natural persons may be concluded orally.


3. A fixed-term contract of lease of a dwelling must be concluded in writing irrespective of who is the party thereto.


4. A contract of lease of a dwelling may be invoked against third persons only in the event of it being registered in the public register in accordance with the procedure established by laws.


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Article 6.580. Content of a contract


1. A contract of lease of a dwelling must include the following data: the address of the leased premises, the number of rooms or any other premises, dwelling space, engineering (technical) installations present in the premises, the appurtenances and the conditions for the use of common premises, the amount of the lease payment and periods for this payment, and the procedure for the payment for public utilities.


2. A contract of lease of a dwelling may likewise provide for other conditions.


3. At the time of concluding a contract of lease of a dwelling, the lessor must submit to the lessee a copy of the the statutes of the association of owners of the residential building or a copy of any other document establishing the requirements for the care, use and maintenance of common premises and other rules. A copy of this document shall be an inherent part of a contract of lease of a dwelling. However, a lessee shall have no right to demand dissolution of the contract of lease of a dwelling solely on the grounds of the lessor’s failure to furnish him with a copy of this document.


4. Null and void shall be the terms of the contract of lease of a dwelling which:


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1) establish civil liability of the lessee without the fault thereof;


2) enable the lessor to unilaterally modify the terms of a lease contract;


3) establish the dependence of the lessee’s rights upon the number of his family members, with the exception of cases where the change of the lessee’s rights is justified by the size of the dwelling;


4) limit the right of the lessee to purchase things or receive services from persons whom the lessee wishes to chose at his own discretion;


5) provide the lessor with the right to demand from the lessee the payment of lease in the form of a lump sum for the whole duration of the lease in the event of the lessee’s delay to make the payment of lease for one period;


6) enable the lessor to perform unilateral assessment of the state of the dwelling and make a conclusion on it being fit for residence;


7) establish civil liability of the lessee in excess of the actual damage inflicted to the lessor.


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Article 6.581. Subject matter of a contract

Only a fit for residence dwelling house or its part, a separate apartment or an isolated dwelling consisting of one or several rooms with related non-residential premises may be the subject matter of a contract of lease of a dwelling. A part of a room or a room which is connected with another room by a common entrance (communicating rooms), likewise non-residential premises (kitchens, corridors, storage rooms, etc.) may not be the subject matter of a separate contract of lease of a dwelling. In apartments which are leased to several lessees under separate contracts of lease, such non-residential premises may be leased for common use.


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Article 6.582. Duration of a contract


1. A contract of lease of a dwelling may be open-ended or fixed-term.


2. A written contract of lease shall be deemed to be concluded from the date when the parties sign it, while an oral contract shall be deemed to be concluded from the day when the parties agree on the conditions of the contract or a permission to take residence in the premises concerned is given.


3. A fixed-term contract, the duration of which is determined by a certain event, shall become open-ended in the case of non-occurrence of this event.  Where the date of the occurrence of the event concerned is put forward to a later time, the fixed term of the contract shall be postponed accordingly.  


4. The parties may renew a fixed-term contract of lease of a dwelling by concluding a new fixed-term or open-ended contract of lease.


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1. The lessee shall effectuate payment for the lease of the dwelling.


2. The lessee must effectuate the lease payment for the dwellings every month not later than by the twentieth calendar day of the following month unless other periods are provided for by agreement between the parties. Payment of lease for the state and municipal dwellings shall be calculated in accordance with the procedure established by the Government.


3. Payment of lease for the dwellings leased out by enterprises, offices and organisations to their employees shall be determined in the collective agreement, and in the instances where organisations do not conclude such agreements, it shall be determined by agreement between the organisation and the employees concerned; however, the maximum amount of the lease payment may not exceed the maximum lease payment determined in accordance with the procedure established by the Government.


4. The amount of lease payable for dwellings leased out on commercial grounds by enterprises, offices, organisations and legal persons shall be determined by agreement between the parties; however, the maximum amount of the lease payment may not exceed the maximum lease payment determined in accordance with the procedure established by the Government.


5. The lessor shall have no right to demand the payment of lease in advance, with the exception of the lease payment for the first month.


6. The contract of lease of a dwelling may provide for an adjustment of the amount of lease payment by agreement between the parties, but not more often than once a year. The clauses of a contract of lease


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an adjustment of the amount of lease payment by agreement between the parties, but not more often than once a year. The clauses of a contract of lease of a dwelling entitling the lessor to unilaterally adjust the lease payment or to demand such adjustment before the expiry of a twelve-month period from the date of conclusion of the contract or more often than once a year shall be null and void.


7. In the event of a dispute between the parties, the lessee shall have the right to perform the payment of lease into a depository account in accordance with the procedure established in Article 6.56 of this Code.


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Article 6.584. Payment for water, energy and public utilities


1. In the event of lease of state or municipal dwellings, payment for cold and hot water, electric energy, gas, heating and public utilities (disposal of garbage, lifts, cleaning of common-use premises and the territory, etc.) shall be effectuated separately from the payment of lease.   Payment for cold and hot water, electric energy, gas, heating and public utilities shall be executed in accordance with the procedure established by the Government within the period indicated in paragraph 2 of Article 6.583 of this Code. 


2. The amounts, periods and procedure of payment for public utilities in the event of lease of dwellings by legal persons to their employees shall be determined within the framework of the collective agreement, and in the instances where organisations do not conclude such agreements, it shall be determined by agreement between the administration and the employee concerned.


3. In the event of lease of dwellings by legal and natural persons on commercial grounds, the issues of payment for cold and hot water, electric energy, gas, heating and public utilities shall be determined by agreement between the parties.


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Article 6.585. Validity of a contract of lease of a dwelling upon the change of the owner of the dwelling

In the event of the right of ownership to a dwelling having passed from the lessor to another person, the contract of lease of a dwelling shall remain valid in respect of the new owner, providing the contract of lease of the dwelling was registered in the public register in accordance with the procedure established by laws.


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1. A contract of lease of a dwelling may be declared null and void upon the grounds of nullity of transactions established in this Code when, inter alia, the data presented to the lessee in respect of the lessor’s rights to the dwelling are false; the contract of lease of a dwelling prejudices valid rights of other persons to that dwelling; the actions of officials related to the conclusion of the contract of lease of a dwelling were unlawful.


2. A contract of lease of a dwelling may not be declared null and void upon the demand of the lessor if he knew that the other person, at the moment of conclusion of the contract, by reason of his condition was unable to comprehend the meaning of his actions or to control them, or the contract was concluded with a lessee who was legally incapable in this area or of limited legal capacity in this area.


3. In the event of a contract of lease of a dwelling being declared null and void, the lessee, together with all other persons residing with him, shall be evicted without other dwelling being granted to them, except in cases specified in paragraph 4 of this Article.


4. In the event of a contract of lease of a state or municipal dwelling being declared null and void on the grounds of it having violated valid rights of other persons to that dwelling while the lessee did not know and could not have known thereof, the lessee, together with all other persons residing with


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other persons to that dwelling while the lessee did not know and could not have known thereof, the lessee, together with all other persons residing with him, shall be evicted with another dwelling being granted to them.  In other instances, the lessee shall be entitled only to compensation for damages incurred by him.


5. A contract of lease of a dwelling may be declared null and void within a three-year limitation period. This time limit shall start to run from the date of conclusion of the contract.


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1. The lessor must transfer to the lessee a dwelling that is vacant and fit for residence, as specified in the contract of lease of the dwelling. The dwelling shall be deemed not fit for residence if it is in such a state that residing therein would pose danger to the health or safety of the lessee or that of his family members, or public safety and health.


2. The lessor shall have no right to refuse to conclude or extend a contract of lease of a dwelling, or to impose more onerous conditions for the sole reason that the lessee or a member of the lessee’s family is pregnant, likewise if the lessee or a member of the lessee’s family has children, with the exception of cases where the lessor cannot lease the dwelling due to its arrest or because of the size thereof (paragraph 4 of Article 6.578 of this Code).


3. Clauses of a contract of lease of a dwelling which exclude or limit civil liability of the lessor in respect of the lessee, or which establish liability of the lessee without his fault, shall be null and void.


4. Clauses of a contract of lease of a dwelling which enable the lessor to unilaterally modify the conditions of the lease contract because of an increase in the number of the lessee’s family members, or restrict the right of the lessee to purchase things or receive services from persons chosen by the lessee


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the lessee’s family members, or restrict the right of the lessee to purchase things or receive services from persons chosen by the lessee shall be null and void.


5. Clauses of a contract of lease of a dwelling which establish in respect of the lessee penalty in excess of real damages incurred by the lessor, or which entitle the lessor to demand from the lessee the payment of lease in the form of a lump sum for the whole duration of the lease in the event of the lessee’s failure to pay the lease on time shall be null and void.


6. The lessor must ensure the proper use of the dwelling house in which the leased dwelling is situated, provide or ensure that the necessary public utilities specified in the lease contract are provided to the lessee for payment, guarantee the repair of the common property of the multi-apartment house and of the equipment for the provision of public utilities situated in the house.


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1. Members of the lessee’s family shall be the spouse/cohabitee, their minor children, parents of the lessee and those of the spouse, residing together with the lessee.


2. Children of full age, their spouses/cohabitees and grandchildren of the lessee shall be attributed to his family members where they maintain a common household with the lessee.


3. Guardians and person under guardianship, having taken residence in the dwelling of their guardian or the person under guardianship, shall not acquire the rights of a member of the family of the guardian or the person under guardianship. In the event where they continue to reside together and maintain a common household after the termination of guardianship, they may be recognised as family members under judicial proceedings upon the request of either of them.


4. Close relatives, other dependants who have resided with the lessee, his family members or with any one of them at least for a period of one year and have maintained a common household, may be recognised as family members of the lessee under judicial proceedings.


5. By taking residence in the leased dwelling, parents, children of full age and their spouses/cohabitees shall acquire the rights of family members if they maintain a common household with the lessee and upon consent of the lessee and his family members.


6. The lessee and his family members of full age shall be liable towards


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and upon consent of the lessee and his family members.


6. The lessee and his family members of full age shall be liable towards the lessor for the actions of the lessee’s family members who violate the contract of lease of a dwelling.


7. The number of persons residing in a dwelling shall be limited by the necessity to ensure normal sanitary conditions and availability of normal conveniences for each of them.


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Article 6.589. Rights and duties of the lessee’s family members


1. The family members of the lessee of a dwelling shall have the same rights and duties arising from the contract of lease of a dwelling as the lessee himself.


2. Natural persons who have ceased to be members of the lessee’s family but continue to reside in the leased dwelling shall have the same rights and duties as the lessee and his family members.


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1. In accordance with the contract of lease of a dwelling, the right to take occupancy of the dwelling shall be enjoyed by those family members of the lessee as well as former family members who are indicated in the contract. In the event of those persons failing to take occupancy of the dwelling within six months from the date of conclusion of the contract, they shall forfeit the right to take this occupancy. For persons who are temporarily away, this term shall start to run upon the expiry of the time limit established in Article 6.591 of this Code; in the event of an earlier return of these person, it shall start to run from the date of their return.


2. The lessee of a state or municipal dwelling or the members of his family of full age shall have the right, upon the consent of other family members of full age, to house in the dwelling the spouse/cohabitee, children, his own parents and those of his spouse. Minor children shall not need such consent for taking occupancy together with their parents. The lessee of dwellings of enterprises, offices, organisations and natural persons leased out on commercial grounds shall have the right to house the persons specified in this paragraph only with the permission of the lessor. Such permission shall not be required in respect of the spouse/cohabitee of the lessee or his family member and their minor children. The contract of lease of a dwelling may establish other clauses regulating the taking of occupancy by family


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the lessee or his family member and their minor children. The contract of lease of a dwelling may establish other clauses regulating the taking of occupancy by family members.


3. Having taken occupancy, a family member shall acquire equal rights and duties with other family members or former family members of the lessee  to the dwelling unless otherwise agreed at the moment of taking occupancy.


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Article 6.591. Preservation of the right to use a state or municipal dwelling upon temporary departure


1. Upon temporary departure of the lessee, the right to the state or municipal dwelling shall be retained by his family member or a former family member for six months on condition that the lease payment and public utilities will be paid.


2. Upon temporary departure of the lessee, the right to the state or municipal dwelling shall be retained by his family member or a former family member for the whole duration of the absence thereof in the following cases:


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1) upon departure to receive medical treatment: for the whole duration of the treatment;


2) upon departure to study: for the whole duration of the study;


3) upon departure for an extended business trip abroad: for the whole duration of the business trip;


4) upon departure to take over the duties of a guardian or curator: for the whole duration of those duties;


5) in respect of children placed in an educational institution, or with relatives, a guardian or curator: for the whole duration of the children’s stay at the institution or with the persons concerned;


6) in respect of conscripts or persons serving in an international military unit: for the duration of the service established by laws;


7) in respect of detained persons: for the whole duration of investigation and court proceedings.


3. Upon the expiry of the circumstances indicated in paragraph 2 of this Article, the temporarily absent lessee, his family member or a former family member shall retain the right to the leased dwelling for a further six months.


4. Upon the expiry of the period indicated in paragraph 3 of this Article, the temporarily absent lessee, his family member or a former family member shall forfeit the right to the leased dwelling.


5. In the event where the temporarily absent person, who returns after the fixed term, is accepted by the remaining lessee, members of the family or former members of the


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where the temporarily absent person, who returns after the fixed term, is accepted by the remaining lessee, members of the family or former members of the family to take occupancy of the leased dwelling, the forfeited right to the leased dwelling shall be deemed restored.


6. Upon the action of the temporarily absent person, the court may recognise his right to the leased dwelling if it is established that he has missed the term specified in this Article due to important reasons.


7. The right of a temporarily absent person to a leased dwelling shall terminate before the term specified in this Article in the event of a dissolution of the contract of lease of a dwelling unless it is otherwise provided for in the contract.


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Article 6.592. Use of a state or municipal dwelling upon temporary departure of the lessee, a member of his family or former member of his family

Upon temporary departure of the lessee of a state or municipal dwelling, a member of his family or former member of his family, the remaining members of the family or former members of the family shall have the right to maintain occupancy of the dwelling. In the event where there are no remaining lessee, members of his family or former members of the family, the departing lessee may sublease the dwelling or temporary residents may take occupancy of the dwelling. Upon the return of the person who was temporarily absent, the sub-lessee or the temporary resident must immediately vacate the dwelling, and the persons who fail to vacate the dwelling concerned shall be evicted without prior notice and without another dwelling being provided to them.


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Article 6.593. Reservation of a state or municipal dwelling

In the event of the lessee, a member of his family or all members of his family departing to another location or abroad for a period exceeding six months, the state or municipal dwelling leased by him may be reserved. A dwelling shall be reserved on condition that the payment of lease and for public utilities will be effectuated. A decision in respect of reservation shall be taken by a relevant state or municipal institution. A refusal to execute reservation may be disputed under judicial proceedings. The reservation of a dwelling shall be made in the form of a written contract between the relevant state or municipal institution and the departing persons, providing that the remaining family members give their consent thereto. The consent of the remaining persons shall be expressed in the form of their signature in the reservation contract. A refusal to give consent may be disputed under judicial proceedings.


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Article 6.594. Use of a reserved state or municipal dwelling


1. In the instances where not all members of the family depart, the reserved state or municipal dwelling shall be used by the remaining persons.  In the event of departure of the lessee and all of his family members, the lessee shall have the right to permit the dwelling to be used by other persons under a contract of sublease or allow temporary dwellers to take occupancy thereof.  It may be stipulated in the contract of reservation that the State or municipality will lease the dwelling under a fixed-term contract of lease.


2. Upon the return of the lessee or any member of his family, the persons maintaining occupancy in the dwelling concerned must, upon the demand of the former,  immediately vacate the dwelling, irrespective of the termination of the reservation period. 


3. Persons who fail to vacate the reserved dwelling shall be evicted without prior notice and without other dwelling being provided to them.


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Article 6.595. Sublease of a dwelling


1. The lessee shall have the right, upon the written consent of all the family members residing together with him as well as that of the lessor, to sublease the dwelling. The contract for the sublease of a dwelling may be formed both in written and oral form, and for fixed or indeterminate term; however, the duration of the contract of sublease may not be longer than the duration of the contract of lease.


2. The payment for the sublease of a dwelling shall be determined by agreement between the parties.


3. Upon the termination of the period of sublease, the sublessee shall have no priority for a renewal of the contract and must, upon the demand of the lessee, vacate the premises held under the contract of lease. In the event where a contract of sublease is formed without a term being fixed, the lessee must notify the sublessee three months in advance about the dissolution of the contract of sublease.  In the event of the refusal of the sublessee to vacate the dwelling, he must be evicted under judicial proceedings without another dwelling being provided to him.


4. Upon concluding a contract of sublease, the lessee shall continue to be liable towards the lessor under the contract of lease.


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Article 6.596. Temporary dwellers


1. Having agreed among themselves and having accordingly informed the lessor beforehand, the lessee and his family members may allow temporary gratuitous occupancy in the dwelling in their use to other persons (temporary dwellers) without forming a contract of sublease. Upon the demand of the lessee or his family members, temporary dwellers must vacate the dwelling immediately. In the event of their refusal to vacate the dwelling, the lessee and his family members shall have the right to apply to the court for the eviction of the temporary dwellers without another dwelling being provided.


2. The lessee shall be liable towards the lessor for the actions of temporary dwellers.


3. The lessor shall have the right to deny permission for the occupancy of temporary dwellers in the instances where their occupancy would violate sanitary requirements and pose threat to the health and safety of others or would infringe the legitimate interests of the lessor.


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Article 6.597. Eviction of sublessees and temporary dwellers upon termination of the contract of lease of a dwelling


1. Upon termination of a contract of lease of a dwelling, a contract of sublease shall also terminate at the same time. The sublessee, as well as the temporary dwellers who refuse to vacate the dwelling shall be evicted under judicial proceedings without another dwelling being provided to them.


2. Rules providing for the priority of the lessee to renew a contract of lease of a dwelling shall not apply in respect of a contract of sublease.


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Article 6.598. Modification of a contract


1. A contract of lease of a state or municipal dwelling may be modified in the cases specified in Articles 6.599 to 6.603 of this Code. In the instances where the lessee, his family members or former family members refuse to modify the contract of lease on the grounds established in the collective agreement or the agreement between the administration and the employees, the dispute between the parties to the contract of lease of a dwelling shall be resolved in judicial proceedings.


2. Any modification of a contract of lease of dwellings of enterprises, offices, organisations and legal persons leased out on commercial grounds may be effectuated exclusively upon agreement between the lessee and the lessor.


3. Upon modification of a written contract of lease of a dwelling, a new written contract shall be concluded with the modifications of the previous contract indicated therein.


4. The lessor must notify the lessee in writing of the intended modifications of the clauses of the contract of lease of a dwelling in accordance with the time limits and the procedure established in paragraph 4 of Article 6.607 of this Article.


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Article 6.599. Modification of a contract upon dividing the apartment


1. An adult member of the family of the lessee and a former member of the family shall have the right to conclude a separate contract of lease of a dwelling (to divide the apartment) if the lessor, the lessee and other family members of full age do not object.  Such family member, taking in regard the part of the dwelling area attributable to him, may lease a separate isolated dwelling premise.  In such event, separate contracts of lease of dwellings shall be concluded with every lessee. The lessee, his family members of full age or former family members may determine the procedure and conditions for the use of the leased dwelling without modifying the contract of lease.


2. Any disputes arising from the division of an apartment or determination of the procedure and conditions for the use of the leased dwelling shall be resolved in judicial proceedings.


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Article 6.600. Modification of a contract where one dwelling is exchanged for several ones


1. In the event where such possibilities exist, the State or a municipality may exchange, with the consent of the lessee, his family members or former family members, the dwelling leased by them for several other dwellings. In this event, every member of the family shall be entitled to an area not exceeding ten square meters of the contractual dwelling space, while the dwelling occupied before shall remain within the hold of the municipality. Upon the request of the lessee, his family members of full age or former family members, one contract of lease of a municipal dwelling may be exchanged for several ones. Any disputes arising from the modification of a contract where one dwelling is exchanged for several ones shall be resolved in judicial proceedings.


2. The lessees and their family members who were not entitled to state support before the modification of the contract may acquire this right after the lapse of five years from the modification of the contract.


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Article 6.601. Modification of a contract upon the uniting of the lessees into one family


1. When several natural persons (lessees) maintaining occupancy of one leased dwelling under separate contracts of lease unite to make one family, they may conclude one contract of lease of the leased dwellings (to join the apartments) upon the consent of their family members and the lessor.  The contract shall be concluded with the lessee proposed by the members of the united family.


2. Refusal of a lessee to conclude one contract of lease may be challenged in court.

 


Article 6.602. Modification of a contract upon recognition of another family member as the lessee


1. Upon the agreement between the lessee and his family members, the original lessee may be replaced by another person.


2. Upon the agreement between the family members of the lessee, the contract of lease of a dwelling shall be changed in the event of the lessee’s death where his family members continue to occupy the leased dwelling and inform the lessor accordingly within two months after the lessee’s death.


3. Disputes arising from the recognition of a family member as the lessee shall be resolved in judicial proceedings.


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Article 6.603. Modification of a contract upon the transfer of a vacated room


1. In the event where, in a dwelling leased by the State or municipality to several lessees under separate contracts of lease, an adjacent room which is not isolated from the dwelling of one of the lessees is vacated, at the request of that lessee this room shall be transferred to his use.


2. In the instances where an isolated room is vacated, it shall be transferred to the use of the lessee who has the least total useful floor area per one family member, or to another lessee in the event of a refusal by the former. In the event of refusal by all the lessees, the vacated dwelling shall be leased to other lessees.


3. Upon the vacated room being transferred to another lessee, the contract of lease of the dwelling shall be modified.


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Article 6.604. Modification of a contract of lease of a dwelling after termination of labour relations by the lessee


1. Where the lessee terminates the labour relations with the legal person whose dwelling he is leasing, this shall not constitute grounds for the termination of the contract of lease of a dwelling. In this event, the contract of lease of a dwelling may be modified by the legal person on the grounds and in accordance with the procedure determined in the collective agreement, and in the organisations where such agreement is not concluded, pursuant to the agreement between the administration and the employees. Any disputes between the legal person and the lessee, his family members or former family members related with such modification of the contract shall be resolved in judicial proceedings.


2. Upon termination of the labour relations between the lessee and the lessor, the payment for the lease of the dwelling shall be determined in accordance with the procedure established in paragraph 4 of Article 6.583 of this Code.


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Article 6.605. Right of the lessee to modify and change the plan of the dwelling


1. The lessee of a dwelling of the State, municipalities and legal persons and his family members may modify and change the plan of the dwelling and non-residential premises only upon written permission of the lessor and the consent of the family members of full age residing together, as well as upon the consent of other persons concerned whose rights and legitimate interests may be violated in the course of executing modification and change of the plan of the dwelling and non-residential premises. In the event of disagreement between the lessee, his family members and other persons concerned, the dispute may be resolved in judicial proceedings.


2. Paragraph 1 of this Article shall not apply in the instances of current repair of the dwelling which must be performed by the lessee unless otherwise provided for by the contract.


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Article 6.606. Relocation of the lessee for the duration of major repairs and reconstruction of the dwelling


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1. Upon the necessity to perform major repairs or  reconstruction of the premises leased by the State, municipalities, enterprises, offices and organisations to their employees, the repairs of which cannot be effectuated without vacating the premises, and in the event where the dwelling is retained after the repairs, the lessor shall offer to the lessee together with his family members to temporarily take residence in another dwelling for the duration of the repairs. The dwelling offered must conform to sanitary and technical requirements. In the event of the lessee’s refusal to move to the dwelling offered, the lessor may demand his relocation under judicial proceedings.


2. In the instances where the leased dwelling might be rendered smaller or larger in area as a consequence of the major repairs or reconstruction, the lessee shall have the right of choice whether to lease that dwelling. Where the lessee agrees to lease the increased or reduced dwelling after the repairs or reconstruction, he shall move or be relocated to another dwelling for the duration of the repairs or reconstruction in accordance with the procedure established in paragraph 1 of this Article.


3. The contract of lease of a dwelling shall not be interrupted for the duration of the major repairs or reconstruction; however, the lessee shall have the right to pay the lease payment for the temporary dwelling.


4. The lessee shall have the right to move back into the dwelling after the completion of the major repairs or reconstruction. Where the lessee refuses to lease the increased


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shall have the right to move back into the dwelling after the completion of the major repairs or reconstruction. Where the lessee refuses to lease the increased or reduced dwelling, likewise where the dwelling is not retained as a result of major repairs or reconstruction, the lessee shall be provided with another properly equipped dwelling.  In the cases where the lessee refuses to move into another adequately equipped dwelling provided, the lessor may relocate him under judicial proceedings.


5. Issues related to vacating, for the duration of major repairs or reconstruction, dwellings leased by enterprises, offices, organisations and legal persons on commercial grounds as well as other related issues shall be resolved by agreement between the lessor and the lessee.   In all cases, the lessor must inform the lessee about the intended repair work due to which the lessee has to be temporarily relocated not later that fourteen days in advance before the start of the work. In the event where the lessor lacks the possibility to temporarily relocate the lessee for the duration of the repair, he must, before the date of the relocation, pay compensation to the lessee adequate to cover the costs of temporary relocation thereof. By agreement between the parties, the costs of the relocation of the lessee for the duration of the repair may be included into the future lease payment.


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1. Upon expiration of the term of the contract of lease, the lessee shall have priority right to conclude a contract of lease of the dwelling for a new term providing that he duly performed the conditions of the contract. The contract shall be renewed for the same term, and where the previous term of the contract exceeded twelve months, the contract shall be renewed for twelve months unless the parties agree otherwise.


2. The lessor must, not later than three months before the termination of the contract of lease, inform the lessee in writing about his proposal to conclude a new contract of lease under the same or different conditions or about his refusal to renew the contract where he does not intend to lease out the premises concerned at least for a period of one year.  In the event of failure by the lessor to perform this duty, and if the lessee does not refuse to renew the contract, the contract of lease shall be deemed to be renewed for the same period and under the same conditions.


3. In the instances where the lessor, after having refused to renew a contract of lease, leases the same dwelling within a period not exceeding one year to another person under the same conditions, the lessee shall have the right to demand that such contract be declared null and void and claim compensation of damages caused by the refusal to renew the contract. This provision shall not apply in the event where the lessee refused to renew the contract under the conditions proposed by the lessor and


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renew the contract. This provision shall not apply in the event where the lessee refused to renew the contract under the conditions proposed by the lessor and did not apply to the court for the approval of the conditions of the contract.


4. Upon renewing the contract, the lessor shall have the right to modify the conditions of the contract of lease, likewise the term of the contract of lease and the amount of the lease payment if he has informed the lessee about the intended modification of the conditions in writing not later than three months and not earlier than six months before the expiry of the period of the contract of lease. In the cases where the duration of lease is shorter than twelve months, such notification must be submitted to the lessee not later than one month before the expiry of the term of the contract of lease. The clauses of the new contract of lease must be clearly indicated in the notification.


5. In the event where the lessee disagrees with the modifications of the clauses of the contract of lease proposed by the lessor, he must, within one month from the date of receiving the notification, inform the lessor in writing about such disagreement or about a dissolution of the contract of lease.  Where the lessee fails to comply with this requirement, he shall be deemed to have agreed with the new clauses for the renewal of the contract of lease.


6. In the event where the lessee objects to the modifications of clauses of the contract of


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for the renewal of the contract of lease.


6. In the event where the lessee objects to the modifications of clauses of the contract of lease proposed by the lessor and informs the latter accordingly within the time limits and in accordance with the procedure established in paragraph 5 of this Article, the lessor wishing to renew the contract of lease under new conditions shall have the right, within one month from the receipt of the notification from the lessee, to apply to court for the determination of the conditions of the contract of lease under judicial proceedings. Where the lessor fails to do that, the contract shall be deemed to have been renewed under the previous conditions.


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Article 6.608. Exchange of dwellings


1. A lessee of a state or municipal dwelling, having received written consent of all his family members of full age residing together with him, including those temporarily absent, and with the consent of the lessor, may exchange the dwelling with another lessee of a state or municipal dwelling.


2. Objections of the State or municipalities to such exchange of dwellings may be challenged in court.  


3. The exchange of dwellings shall be formalised by new contracts of lease.   The contract of exchange shall become effective from the last day of the conclusion of a new contract of lease of a dwelling, and where the dispute is decided by the court, from the day when the court judgment becomes final.


4. In the event where the family members fail to agree upon the exchange, while the change of dwellings might offer a possibility of resolving the conflict developed in the family, any of the family members shall have the right to demand within judicial proceedings compulsory exchange of the leased dwelling by another dwelling or dwellings in different houses/apartments.

 


SECTION TWO

TERMINATION OF A CONTRACT OF LEASE OF A DWELLING


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Article 6.609. Right of a lessee to dissolve the contract


1. The lessee of a dwelling shall have the right to dissolve the contract of lease by giving the lessor a written notice a month in advance.  In the event of failure by the lessee to comply with this requirement, the lessor shall have the right to compensation of damages incurred.


2. The lessee may revoke his warning before the expiration of its time limit if the lessor has not concluded a contract of lease of that dwelling with another lessee.


3. In the event where the lessee, his family members and former family members depart to take residence elsewhere, the contract of lease of a dwelling shall be deemed to be dissolved from the date of their departure.


4. Upon receiving the lessee’s warning in respect of the dissolution of the contract, the lessor shall have the right to inspect the condition of the dwelling premises upon having informed the lessee beforehand about the date and time of such inspection. In this event, the lessor shall also have the right to show the premise to a prospective lessee upon having informed the lessee beforehand about the date and time of such visit. Except in urgent cases, the lessor shall have no right to inspect the dwelling premise or show it to a prospective lessee in the hours between 9:00 p.m. and 9:00 a.m.


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Article 6.610. Procedure of dissolving a contract and evicting persons

A contract of lease of a dwelling may be declared null and void, it may be dissolved, likewise the eviction of natural persons from the dwelling premises may be executed exclusively within judicial proceedings, except in the cases of eviction executed with the sanction of the public prosecutor provided for in this Code.

 


Article 6.611. Dissolution of a contract upon the violation of conditions of the contract of lease by the lessee

In the instances where the lessee regularly (at least for three months unless a more extended period is provided for in the contract) fails to pay the lease payment or the payment for public utilities, where the lessee, his family members or other persons residing together with him destroy or damage the dwelling or use it for a purpose other than its designation, the contract of lease may be dissolved and the persons concerned evicted from the dwelling without other dwelling being provided. In the event where the lessee, his family members or other persons residing together with him create, by their improper behaviour, such conditions which render it impossible for other persons who reside together or in the neighbourhood to lead a normal life, they may be evicted upon the request of the lessor or the latter persons without other dwelling being provided.


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Article 6.612. Eviction from wilfully occupied dwellings

Where persons wilfully occupy a dwelling, i.e. move in without concluding a contract of lease, they shall be evicted through court proceedings, without another dwelling being provided.    In the instances where persons wilfully occupy a dwelling, i.e. move in without concluding a contract of lease, they shall be evicted within judicial proceedings without another dwelling being provided to them.

 


Article 6.613. Effects of termination of a fixed-term contract of lease of a dwelling 

Upon the expiration of the time limit of a contract of lease of a dwelling, the lessee, his family members or former family members must vacate the dwelling upon the demand of the lessor, while those who fail to comply shall be evicted without another dwelling being provided to them.


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Article 6.614. Dissolution of an open-ended contract of lease of a dwelling


1. An open-ended contract of lease of a dwelling leased by legal and natural persons on commercial grounds may be dissolved upon the demand of the lessor with a written notice issued to the lessee six months in advance.


2. Upon the expiration of the time limit indicated in paragraph 1 of this Article, the lessee, his family members or former family members must vacate the dwelling, while those who fail to comply shall be evicted without another dwelling being provided to them.

 


Article 6.615. Eviction from dwelling houses or apartments at risk of collapse

Where dwellings of the State, municipalities or legal persons are at risk of collapse or become unfit for habitation due to natural disasters, fire or technical wear and tear, natural persons shall be evicted with the sanction of the public prosecutor with another adequately equipped dwelling being provided to them. This dwelling shall be provided by the owner of the building where the dwelling which is at risk of collapse or unfit for habitation is located. In such instances, the former contract of lease shall be deemed to have terminated.


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Article 6.616. Dissolution of a contract and eviction of persons with another adequately equipped dwelling being provided


1. Natural persons may be evicted from dwellings of the State, municipalities and legal persons leased to their employees with another adequately equipped dwelling being provided to them in the following instances:


1) the residential house in which the dwelling is located is subject to demolition;


2) the dwelling is not retained after major repairs, reconstruction or change of planning of the premises;


3) the dwelling is converted into premises for other designation.


2. Another adequately equipped dwelling shall be provided by the lessor or other legal person in whose interests the residential house is being demolished, reconstructed or whose planning is being changed and the dwelling is converted into premises for other designation.


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Article 6.617. Provision of another adequately equipped dwelling to evicted persons


1. Another adequately equipped dwelling provided must be located in the same residential district and be properly equipped in accordance with the conditions of that district, it must also conform to the sanitary and technical requirements.


2. Another adequately equipped dwelling provided may not be of smaller floor area or have fewer rooms than the previously occupied dwelling. Where in the previously occupied dwelling the useful floor area per member of the family was smaller than established by laws, upon eviction, the floor area provided may not be smaller than established. The dwelling provided must be of such size as to avoid the necessity of sharing a room by two persons over nine years of age of different gender, except spouses, and must conform to the condition of health of those to be evicted as well as to other circumstances.


3. Upon the request of the lessee, he may be also provided with a smaller dwelling.


4. The court judgment upon the dissolution of the contract of lease of a dwelling and eviction of the lessee must indicate the total floor area and the number of rooms in the dwelling to be provided to the evicted person.

 


SECTION THREE

EMPLOYEE HOUSING ACCOMMODATION


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SECTION THREE

EMPLOYEE HOUSING ACCOMMODATION

 


Article 6.618. Legal status of employee housing accommodation


1. Employee housing accommodation shall be provided by the employer for the purpose of housing employees/civil servants, taking in regard the character of their employment/service or conditions established by laws, for the period until the change in the character of their employment/service, termination of the labour relations with the employer, or disappearance of the conditions established by law.


2. Dwellings shall be attributed to the category of employee housing accommodation or removed therefrom as well as the lists of the categories of employees eligible for employee housing accommodation shall be determined by a decision of a public authority or a governmental institution, a municipal council or a management body of the legal person concerned.


3. Public authorities or governmental institutions, municipal councils or legal persons shall attribute to the category of employee housing accommodation only vacated dwellings belonging to them by the right of ownership or trust.


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Article 6.619. Procedure for providing and using employee housing accommodation


1. The decision concerning the provision of employee housing accommodation shall be taken by a person authorised by a public authority or a governmental institution, an executive municipal institution or a management body of the legal person. On the basis of this decision, a contract of lease of employee housing accommodation shall be concluded.  The conclusion of such a contract shall be effectuated in accordance with the procedure established by this Code in respect of contracts of lease of a dwelling unless otherwise provided for by laws.


2. The procedure for the use and accounting of employee housing accommodation shall be established by the Government or its authorised institution.


3. Employee housing accommodation shall be used in accordance with the rules of the contract of lease of a dwelling established in Articles 6.581 to 6.587, paragraph 1 of Article 6.590, and Articles 6.605 and 6.606 of this Code.

 


Article 6.620. Eviction from employee housing accommodation

Upon the termination of an employment/service contract, the employee to whom employee housing accommodation was provided in accordance with the established procedure must vacate the leased employee housing accommodation together with the family members residing with him.  Natural persons who fail to do so shall be evicted without another dwelling being provided to them, except in cases stipulated in Article 6.616 of this Code.


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Article 6.621. Eviction from employee housing accommodation by providing another dwelling

In the cases stipulated in Article 6.616 of this Code, natural persons evicted from employee housing accommodation shall be provided with another dwelling, likewise in the events when the evicted persons are:


1) employees/civil servants discharged from employment/service as a result of their capacity for work having been rated at 0-40 per cent or having been rated as having high or moderate special needs due to the reasons related to their employment/service;    

 


2) members of the family of an employee/civil servant who was the lessee of the employee housing accommodation and is dead or missing due to the reasons related to the employment/service.

 


Article 6.622. Provision of another dwelling to evicted natural persons

Another dwelling provided to evicted natural persons must be in the same residential district and conform to the sanitary and technical requirements.

 


SECTION FOUR

LEASE OF A DWELLING IN DORMITORIES


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SECTION FOUR

LEASE OF A DWELLING IN DORMITORIES

 


Article 6.623. Dormitories


1. Workers, civil servants, students and pupils may be accommodated in dormitories during their time of employment or study. Dormitories shall be dwelling houses built and equipped specifically for this purpose. The procedure for providing accommodation in a dormitory and the use thereof shall be established in the collective agreements of legal persons. In the organisations where such agreement is not concluded, this procedure shall be established upon the agreement between the administration and the employees, and in educational establishments and higher education and research institutions, upon the decision of the management bodies thereof.


2. Upon the expiration of the employment contract or the period of study, the employees shall be evicted from the dormitory, except in cases provided for by Article 6.621 of this Code. The persons who study shall be evicted at the end of an academic year. Dormitory dwellers may be evicted without other dwelling being provided in the instances where they create, by their improper behaviour, such conditions which render it impossible for others to maintain occupancy together or in the neighbourhood, likewise in the instances where they continuously damage the dwelling or use it not according to its designation.


3. Eviction from dormitories shall be effectuated in accordance with the judicial proceedings.


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Article 6.624. Prohibition to sublease dormitory dwellings

Lessees who maintain occupancy in dormitories shall have no right to sublease their dwelling or to provide occupancy for temporary dwellers. 

 


Article 6.625. Temporary relocation

In the event of necessity (due to repair, emergency, etc.), the lessor shall have the right to relocate the lessee without the latter’s consent from one dwelling in the dormitory to another dwelling either in the same or another building within the same neighbourhood.

 


SECTION FIVE

HOTELS, HOMELESS SHELTERS AND RESIDENCY IN

THE PREMISES OF HEALTH AND SOCIAL CARE INSTITUTIONS


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Article 6.626. Hotels


1. Legal and natural persons shall have the right to possess hotels, which are especially equipped premises for the temporary accommodation of visitors.


2. Hotels shall be established and operated on commercial grounds.


3. Natural persons who maintain occupancy in the hotel for a longer period than agreed or without paying for the hotel, or violate the requirements for the use of the hotel, shall be evicted with the sanction of the public prosecutor under the motion of the administration without another dwelling being provided.


4. This Article shall also apply for short-term (not exceeding two months) contracts of lease of dwellings concluded for the time of holiday and for recreational purposes.

 


Article 6.627. Homeless shelters

The rules in respect of the operation and use of homeless shelters established on charity or any other grounds and granting the possibility to gratuitously spend the night for persons in need shall be determined and registered with the municipality by their founders. Any disputes related with the use of such homeless shelters and eviction therefrom shall be decided pursuant to those rules.


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Article 6.628. Residency in the premises of health and guardianship/curatorship institutions

Persons who, for the purposes of medical treatment or care, temporarily or permanently reside in the premises of health and guardianship/curatorship institutions shall not be deemed to be lessees.  The relationships between such persons and health and guardianship/curatorship institutions shall be determined by relevant service contracts and laws.

 


CHAPTER XXXII

UNCOMPENSATED USE OF A THING (LOAN FOR USE)

 


Article 6.629. Concept of a contract of loan for use


1. Under a contract of uncompensated use of a thing (loan for use), one party (lender) shall transfer a durable thing for temporary uncompensated possession and use to another party (loan recipient), while the loan recipient shall undertake to return this thing in the same state in which it was received, taking into account normal wear and tear, or in a state stipulated in the contract.


2. Provisions of paragraphs 2 and 3 of Article 6.477, Articles 6.478, 6.479, 6.481, paragraphs 1 and 2 of Article 6.489, and Article 6.501 of this Code shall apply correspondingly to a contract of loan for use.


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Article 6.630. Limitations on concluding a contract of loan for use

Legal persons operating for profit shall have no right to transfer a thing under a contract of loan for use to persons who are founders, participants or members of the bodies of those legal persons.

 


Article 6.631. Legal effects of a promise to transfer a thing for uncompensated use

Failure to honour a promise to transfer a thing for uncompensated use without adequate grounds shall vest the loan recipient with the right to claim compensation of expenses incurred in relation with the acceptance of the thing to be transferred for uncompensated use.

 


Article 6.632. Lender

The right to transfer a thing for uncompensated use shall be enjoyed only by the person who is the owner of the thing, or by other persons authorised by the owner or by laws.


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Article 6.633. Transfer of a thing for uncompensated use


1. The lender must transfer a thing to the loan recipient in a state corresponding to the conditions of the contract of loan for use and the designation thereof.


2. A thing shall be transferred to the loan recipient with all of the auxiliaries and documents relating thereto (instruction manuals for use, technical passport, etc.) unless otherwise provided for by the contract.


3. In the event where such auxiliaries and documents were not transferred, and without them the thing cannot be used for its designation, or its use without the auxiliaries and documents loses value for the loan recipient, the latter shall have the right to require such auxiliaries and documents to be transferred to him by the lender, or to dissolve the contract and demand from the lender compensation for the damages suffered.


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Article 6.634. Liability of the lender for defects of the thing


1. The lender shall be liable for defects of the thing transferred for uncompensated use which he intentionally or through gross negligence did not stipulate when concluding the contract for use, as well as for the damage caused to the loan recipient by these defects.


2. In the event of discovery of such unstipulated defects, the loan recipient shall have the right, at his choice, to require from the lender uncompensated elimination of the defects or compensation of the costs of their elimination, or dissolution of the contract and compensation of the direct damages incurred.


3. The lender, who was notified about the demands of the loan recipient, or of his intention to eliminate the defects of the thing at the expense of the lender, shall have the right to immediately replace the defective thing with another analogous thing of adequate quality.


4. The lender shall not be liable for the defects which were stipulated by him at the time of conclusion of the contract, likewise for the defects that were known to the loan recipient beforehand or ought to have been discovered by the loan recipient during the transfer of the thing, or its inspection, or testing when concluding the contract.


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Article 6.635. Rights of third persons to the thing transferred under the contract of loan for use


1. The transfer of a thing for uncompensated use shall not constitute grounds for the change or termination of the rights of third persons in that thing, providing those rights have been registered in the public register in accordance with the procedure established by laws, except in cases where those rights are not subject to registration pursuant to laws.


2. When concluding a contract of loan for use, the lender must warn the loan recipient about the rights of third persons in the thing transferred. The failure to perform this duty shall give the loan recipient the right to demand dissolution of the contract and compensation for the direct damages incurred.

 


Article 6.636. Duty of the loan recipient to maintain and preserve the thing

The loan recipient must maintain and preserve the thing transferred to him under the contract, likewise to perform current and major repairs, and to bear all expenses for the maintenance thereof unless otherwise provided for by the contract. 

 


Article 6.637. Duty of the loan recipient to use the thing in accordance with its designation


1. The loan recipient must use the thing transferred to him only in accordance with its designation specified in the contract. 


2. Without prior written consent of the lender, the loan recipient shall have no right to let third persons use the thing transferred to him.


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Article 6.638. Risk of accidental perishing of or damage to the thing


1. The loan recipient shall bear the risk of accidental perishing of or damage to the thing if the thing perished or was damaged while being used for other purposes than those indicated in the contract, or transferred to a third person without prior written consent of the lender. The loan recipient shall also bear the risk of accidental perishing of or damage to the thing if he continued using the thing after the expiry of the time limit of the contract of loan for use, or taking into account the actual circumstances, he could have saved the thing by using his own property, but failed to do so.


2. If the loan recipient, with the purpose of saving the thing transferred to him, destroys his own thing, or permits it to be destroyed, he shall have the right to claim from the lender compensation for the necessary and immediate expenses incurred in the attempt to save the transferred thing.


3. The loan recipient shall not be liable for accidental perishing of or damage to the thing if it occurred in the course of its normal use in accordance with its designation indicated in the contract.


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Article 6.639. Liability for damage caused to third persons

The loan recipient shall be liable for damage caused to third persons as a consequence of the use of the thing transferred under the contract of the loan for use unless he proves that the damage was caused by intent or gross negligence of the lender or a person to whom the thing was transferred with the consent of the lender.

 


Article 6.640. Prohibition to use the right of retention   

The loan recipient shall have no right of retention in respect of a thing transferred to him, except in cases where the obligation of the lender entails compensation of necessary and immediate expenses related with the preservation of the thing.


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Article 6.641. Dissolution of a contract of loan for use before time


1. The lender shall have the right to demand dissolution of the contract before time in the instances where the loan recipient:


1) uses the thing not in accordance with its designation;


2) fails to fulfil the duty to maintain and preserve the thing;


3) substantially worsens the state of the thing;


4) transfers the thing to third persons without the consent of the lender.


2. The lender shall also have the right to demand dissolution of the contract of loan for use before time in the instances where due to unpredicted and extraordinary circumstances the thing is urgently and inevitably needed by the lender himself.


3. The loan recipient shall have the right to demand dissolution of the contract before time:


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1) in the event where defects of the thing are discovered, which make the normal use of the thing impossible or obstructed and about the existence of which he did not know or could not have known at the time of concluding the contract;


2) if the thing, by virtue of circumstances for which the loan recipient is not liable, becomes not fit for use in accordance with its designation;


3) if at the time of concluding the contract the lender failed to warn him about the rights of third persons in that thing;


4) in the event of the failure by the lender to transfer the auxiliaries or documents related to the thing.


