Russia

Article 5. Customs in business practice.

1. A custom in business practice is recognized to be a rule of behavior not provided for by the legislation that has long developed and been in wide use in some business field regardless of whether or not it has been recorded in a document.

2. Business practice customs conflicting with the legislation or contract provisions that are binding on the parties to appropriate relations shall not be applied.

Article 6. Application of civil legislation by analogy. See also Agreed Obligations

1. In the cases where relations specified by pts. 1 and 2 in article 2 of this Code are not directly regulated by the legislation or by the parties' agreement and there is no applicable business custom, civil legislation regulating similar relations (analogy of the statute) is applied to such relations unless this is contrary to their essence.

2. If it is impossible to use the statute analogy, the parties' rights and duties are determined proceeding from general principles and tenor of civil legislation (analogy of the law), as well as requirements of conscientious, reason and justice.

Article 140. The Money (Hard Currency)

1. The rouble shall be the legal means of payment, which shall be accepted by its face value on the entire territory of the Russian Federation. The payments on the territory of the Russian Federation shall be effected both in cash and cashless.

2. The cases of, the procedure and the terms for the use of foreign currency on the territory of the Russian Federation shall be defined by the law or in conformity with the established order.

Article 164. State Registration of Transactions

1. Transactions with land and other real estate shall be subject to State registration in the instances and according to the procedure provided for by Article 131 of this Code and by the law on the registration of rights to real estate and transactions with it.

2. State registration of specified types of transactions with real estate may be established by a law.

Article 165. Consequences of Failure to Comply with Notarial Form of Transaction and Requirement for Registration Thereof see also Validity

1. The failure to comply with the notarial form and in the instances established by a law, with the requirement concerning State registration of a transaction shall entail its invalidity. Such a transaction shall be considered null and void.

2. If one party has wholly or partially performed a transaction requiring notarial certification, and the other party evades such certification of the transaction, the court shall have the right at the demand of the party which performed the transaction to deem the transaction to be valid. In this event, subsequent notarial certification of the transaction shall not be required.

3. If a transaction requiring State registration has been concluded in the proper form but one of the parties evades the registration thereof, the court shall have the right at the demand of the other party to render a decision concerning registration of the transaction. In this event, the transaction shall be registered in accordance with the court decision.

4. In the instances provided for by points 2 and 3 of this Article the party which unjustifiably evades notarial certification or State registration of a transaction must compensate the other part for losses caused by the delay in concluding or registering the transaction

Article 313. Discharge of the Obligation by the Third Person see also Termination Parties

1. The discharge of the obligation may be imposed by the debtor upon the third person, unless the debtor's duty to discharge the obligation in person follows from the law, from the other legal acts, from the terms of the obligation or from its substance. In this case the creditor shall be obliged to accept the discharge, offered by the third person instead of by the debtor.

2. The third person, undergoing the threat of losing his right to the property of the debtor (the right of the lease, of the mortgage, etc.) as a result of the creditor's turning the penalty onto this property, may at his own expense satisfy the creditor's claim without obtaining the debtor's consent. In this case, the rights of the creditor by the obligation shall pass to the third person in conformity with Articles 382-387 of the present Code.

Article 318. The Increase of the Amounts, Paid Out for the Maintenance of the Citizen see also Remedies

Article 318. The Increase of the Amounts, Paid Out for the Maintenance of the Citizen

The amount, paid out by the direct pecuniary obligation for the maintenance of the citizen: to recompense for the harm, inflicted to the life or to the health, by the contract for a life maintenance, and in the other cases - shall be indexed taking into account the level of the inflation in the procedure and cases stipulated by law.

Article 314. The Term of the Discharge of the Obligation see also Termination

1. If the obligation stipulates, or allows to stipulate the day of its discharge or the period of time, within which it shall be discharged, the obligation shall be subject to discharge on this particular day or, correspondingly, at any moment within this period.

2. In the cases, when the obligation does not stipulate the deadline for its discharge and does not contain the terms, making it possible to define this deadline, it shall be discharged within a reasonable term after the inception of the obligation. The obligation, which has not been discharged within a reasonable term, the same as the obligation, the term of whose discharge has been defined by the moment of demand, shall be discharged by the debtor within seven days from the day of the creditor's presenting the claim for its discharge, unless the duty of the discharge within a different term follows from the law, from the other legal acts, from the provisions of the obligation, from the customs of the business turnover, or from the substance of the obligation.

Article 315. Advanced Discharge of the Obligation see also Termination

The debtor shall have the right to discharge the obligation in advance of the deadline, unless otherwise stipulated by the law, by the other legal acts or by the terms of the obligation or follows from its substance. However, an advanced discharge of the obligations, involved in the performance by its parties of the business activity, shall be admitted only in the cases, when the possibility to discharge the obligation before the fixed date has been stipulated by the law, by the other legal acts or by the terms of the obligation, or follows from the customs of the business turnover or from the substance of the obligation.

Article 316. The Place of Discharge of the Obligation see also Termination

Unless the place of the discharge has been defined by the law, by the other legal acts or by the agreement or follows from the customs of the business turnover or from the substance of the obligation, the discharge shall be effected:

  • by the obligation to transfer the land plot, the building, the structure or the other immovable property - at the place of location of the property;
  • by the obligation to transfer the commodity or the other property, envisaging its shipment - at the place of the ceding the property to the first shipper for its being forwarded to the creditor;
  • by the other obligations of the businessman to transfer the commodity or the other property - at the place of the manufacture or of the storage of the property, if this place has been known to the creditor at the moment of the inception of the obligation;
  • by the pecuniary obligation - at the place of residence of the creditor at the moment of the inception of the obligation, and if the creditor is a legal entity - at the place of its location at the moment of the inception of the obligation; if the creditor by the moment of the discharge of the obligation has changed the place of his residence or the place of his stay and has informed about this the debtor - at the new place of the creditor's residence or stay, with referring the expenses, involved in the change of the place of discharge, onto the creditor's account;
  • by all the other obligations - at the place of residence of the debtor, and in case the debtor is a legal entity - at the place of its location.

Article 317. The Currency of the Pecuniary Obligations see also Termination

1. The pecuniary obligations shall be expressed in roubles (Article 140).

2. In the pecuniary obligation it may be stipulated that it shall be liable to the payment in roubles in the amount, equivalent to the definite amount in the foreign currency, or in the agreed monetary units (ECU, the "special borrowing rights", etc.). In this case, the amount liable to the payment in roubles shall be defined in conformity with the official exchange rate of the corresponding currency or of the conventional monetary units by the day of the payment, unless the other exchange rate or the other day of its formulation has been established by the law or by the parties' agreement.

3. The use of the foreign currency and also of the payment documents in the foreign currency on the territory of the Russian Federation by obligations shall only be admitted in the cases, in the order and on the terms, defined by the law or established in conformity with the procedure, laid down by it.

Article 319. Priority for Satisfaction of Claims under the Monetary Obligation see also Termination

The amount of the effected payment, insufficient for the discharge of the pecuniary obligation in full, in the absence of another agreement, shall first of all cover the creditor's expenses, involved in the enforcement of the discharge, then - the interest, and in the remaining part - the basic amount of the debt.

Article 320. Discharge of the Alternative Obligation see also (Termination)

The debtor, who is obliged to transfer to the creditor this or that property, or to perform one of the two or of several actions, shall have the right of choice, unless otherwise following from the law, from the other legal acts or from the terms of the obligation.

Article 399. The Subsidiary Liability

1. Before presenting the claims against the person, who, in conformity with the law, with the other legal acts or with the terms of the obligation, is bearing liability in addition to the liability of the other person, who is the principal debtor (the subsidiary liability), the creditor shall be obliged to present the claim against the principal debtor. If the principal debtor has refused to satisfy the claim of the creditor, or if the creditor has not received from him, within a reasonable term, a response to the presented claim, this claim may be presented against the person, bearing the subsidiary liability.

2. The creditor shall have no right to claim the satisfaction of his claim against the principal debtor from the person, bearing the subsidiary liability, if this claim may be satisfied by offsetting the claim of regress to the principal debtor, or by an indisputable recovery of the means involved from the principal debtor.

3. The person, bearing the subsidiary liability, shall be obliged, before satisfying the claim, presented against him by the creditor, to warn about it the principal debtor, and if the claim has been filed against such a person - to draw the principal debtor into the court case. Otherwise, the principal debtor shall have the right to put forward against the claim of regress of the person, bearing the subsidiary liability, the objections, which he has had against the creditor.

Article 421. Freedom of Contract. See also Agreed Obligations

1. Citizens and legal entities shall be free in concluding a contract. Coercion to conclude a contract shall not be permitted except for instances when the duty to conclude a contract has been provided for by this Code, by a law, or by a voluntarily accepted obligation.

2. The parties may conclude a contract which is either provided for or is not provided for by a law or other legal acts.

3. The parties may conclude a contract which contains elements of various contracts provided for by a law or other legal acts (mixed contact). The rules on contracts whose elements are contained in a mixed contract shall apply in respective parts to the relations of the parties under a mixed contract unless it follows otherwise from the agreement of the parties or the essence of the mixed contract.

4. The conditions of a contract shall be determined at discretion of the parties except for instances when the content of the respective condition has been prescribed by a law or other legal acts (Article 422).

In instances when a condition of a contract has been provided for by a norm which applies insofar as not established otherwise by agreement of the parties (dispositive norm), the parties may by their agreement exclude the application thereof or establish a condition which differs from that provided therein. In the absence of such agreement, the condition of the contract shall be determined by the dispositive norm.

5. If a condition of a contract has not been determined by the parties or by a dispositive norm, the respective conditions shall be determined by the customs of business usage applicable to the relations of the parties.

Article 424. Price.

1. The performance of a contract shall be paid for at the price established by agreement of the parties.

In the instances provided for by a law the prices (tariffs, scales of prices, rates, etc.) established or regulated by duly empowered State agencies shall be applied.

2. A change of the price after the conclusion of a shall apply shall be permitted in the instances and on the conditions provided for by contract, by a law, or according to the procedure established by a law.

3. In instances when the price has not provided for in a contract for compensation or may not be determined by proceeding from the conditions of the contract, the fulfillment of the contract must be paid for at the price which under comparable circumstances is usually recovered for similar goods, jobs, or services.

Article 427. Model Conditions of Contract. See also Agreed Obligations

1. It may be provided in a contract that its individual conditions shall be determined by model conditions worked out for contracts of the respective type and published in the press.

2. In instances when a reference to model conditions is not contained in the contract, such model conditions shall apply to the relations of the parties as customs of business practice if they meet the requirements established by Article 5 and by Article 421(5) of this Code.

3. Model conditions may be stated in the form of a model contract or other document containing these conditions.