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Civil Code of Turkmenistan

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maglumat (ru)
Last modified
With changes and additions,
introduced as of the 15th

ZAKON
TURKMENISTAN

May 2021

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Kabul edilen senesi

ON APPROVAL AND COMMISSIONING
CIVIL CODE OF TURKMENISTAN
SAPARMURATA TURKMENBASHI

07/17/1998

Namanyň görnüşi

(Bulletin of the Mejlis of Turkmenistan, 1998, No. 2, art. 38)

Codes of Turkmenistan

Article 1. To approve the Civil Code of Turkmenistan Saparmurat Turkmenbashi.

Article 2. Enact the Civil Code of Turkmenistan Saparmurat Turkmenbashi from March 1, 1999, with the exception of
Section 4 “Public Register” of Part 2 of the Code, which comes into force on January 1, 2000.

Article 3. To recognize as invalidated from March 1, 1999:
Law of the Turkmen SSR of December 29, 1963 "On the approval of the Civil Code of the Turkmen SSR" and approved by it
The Civil Code of the Turkmen SSR (Bulletin of the Supreme Soviet of the Turkmen SSR, 1963, No. 36, art. 94);
laws that amended and supplemented the Civil Code of the Turkmen SSR in the period from December 29, 1963 to 1
March 1999.

Article 4. The Civil Code of Turkmenistan Saparmurat Turkmenbashi applies to relations that have arisen after
its entry into force.
On civil legal relations that arose before the entry into force of the Civil Code of Turkmenistan Saparmurat
Turkmenbashi, its provisions apply to those rights and obligations that arose after March 1, 1999.
To civil legal relations arising on the basis of regulatory legal acts, recognized as invalid in connection with
the entry into force of the Civil Code of Turkmenistan Saparmurat Turkmenbashi, these regulatory legal acts are applied,
except when the parties to the relationship themselves express a desire to regulate their relationship in accordance with the provisions
Of the Civil Code of Turkmenistan Saparmurat Turkmenbashi.

Article 5. Until the harmonization of normative legal acts of Turkmenistan with the Civil Code of Turkmenistan
Saparmurat Turkmenbashi, normative legal acts of Turkmenistan are applied insofar as they do not contradict
The Civil Code of Turkmenistan Saparmurat Turkmenbashi. Regulatory legal acts on issues that, according to
The Civil Code of Turkmenistan Saparmurat Turkmenbashi can only be regulated by laws, are valid until the adoption
and the enactment of relevant laws.

Article 6. Until the entry into force of Section 4 "Public Register" of Part 2 of the Civil Code of Turkmenistan Saparmurat
Turkmenbashi registration of rights to real estate and transactions with it is carried out in accordance with the current rules for registration of rights
on real estate and transactions with it.

Article 7. The effect of part 4 "Copyright" of the Civil Code of Turkmenistan Saparmurat Turkmenbashi applies to
relations associated with the creation and use of objects of copyright and related rights that arose after the entry into force
Of the Civil Code of Turkmenistan Saparmurat Turkmenbashi.
With respect to works for which, by March 1, 1999, the established 25-year term of copyright protection has not expired,
the copyright terms provided for by Articles 1094-1095 of the Civil Code of Turkmenistan apply
Saparmurat Turkmenbashi.
For performances for which twenty-five years have not expired by March 1, 1999 after their first performance, the term
protection of the rights of the performer, provided for by paragraph 1 of Article 1123 of the Civil Code of Turkmenistan Saparmurat Turkmenbashi.
On phonograms and videograms for which twenty-five years have not expired by March 1, 1999 after their first publication, or
the first entry, the term of protection of the related right provided for in paragraph 3 of Article 1123 of the Civil Code extends
Turkmenistan Saparmurat Turkmenbashi.
On programs of a broadcasting organization for which twenty-five years have not elapsed after the first broadcast by such organization
over the air (by cable), the term of protection of the related right provided for in paragraph 4 of Article 1123 of the Civil Code extends
Turkmenistan Saparmurat Turkmenbashi.

Article 8. The statute of limitations established by the Civil Code of Turkmenistan of Saparmurat Turkmenbashi shall apply to those
claims, the terms of presentation of which, stipulated by the earlier legislation in force, did not expire before March 1, 1999.

Article 9. To instruct the Cabinet of Ministers of Turkmenistan:
by March 1, 1999, to bring the regulatory standards into line with the Civil Code of Turkmenistan Saparmurat Turkmenbashi
legal acts of the Cabinet of Ministers of Turkmenistan and other state bodies vested with the right to adopt regulatory
legal acts;
by January 1, 2000, develop and approve all the necessary regulatory legal acts and take organizational measures
on the formation and maintenance of the public register service;
from March 1, 1999 to re-register housing construction cooperatives, transforming them into partnerships
owners of residential premises.

President of Turkmenistan

Saparmurat Turkmenbashi

Ashgabat city
Jul 17, 1998
No. 294-I

CIVIL CODE
TURKMENISTAN

PART I.
GENERAL PROVISIONS

SECTION 1. GENERAL PROVISIONS

CHAPTER 1. CIVIL LAW

Article 1. Basic principles of civil
legislation
1. Civil legislation is based on the recognition of the equality of participants in the relations regulated by it, inviolability
property, freedom of contract, the inadmissibility of arbitrary interference by anyone in private affairs, the need
unimpeded exercise of civil rights, ensuring the restoration of violated rights, their judicial protection.
2. Individuals and legal entities are free to establish, on the basis of a contract, their rights and obligations and determine any
contractual conditions, if they do not contradict the law.
Civil rights can only be limited on the basis of law in order to protect morals, health, rights and legal
interests of other persons, ensuring the security of society and the state, environmental protection.
3. Goods, services and financial assets move freely throughout the territory of Turkmenistan.
Restrictions on the movement of goods, services and financial resources may be introduced in accordance with the law.

Article 2. Relations governed by civil
legislation
1. Civil law determines the legal status of participants in civil turnover, the grounds for the emergence and
the procedure for exercising ownership rights, regulates contractual and other obligations, as well as other property and related
personal non-property relations with them.
Family, housing, labor relations, relations on the use of natural resources and environmental protection,
meeting the criteria specified in the first paragraph of this clause are governed by civil law, if
special legislation does not provide otherwise.
2. Relations associated with the exercise and protection of inalienable human rights and freedoms and other intangible benefits,
are governed by civil law, insofar as otherwise does not follow from the essence of these relations.
3. The subjects of civil relations can be individuals, legal entities and the state. This rule applies to
citizens of Turkmenistan, foreign citizens and stateless persons, both engaged and not engaged
entrepreneurship.
An entrepreneurial is an independent, risk-based activity aimed at systematic
making a profit from the use of property, the sale of goods, the performance of work or the provision of services to persons.
4. Civil legal relations of state bodies and organizations with individuals and legal entities are governed by
civil law, if these relations should not be regulated by other legislation.

Article 3. Acts of civil legislation

1. Civil legislation consists of this Code, other laws and other normative legal acts governing
relations specified in Article 2 of this Code.
2. By-laws are applied to regulate civil relations only in cases where they are not
are contrary to the law.

Article 4. Operation of civil legislation
in time
Acts of civil legislation are not retroactive and apply to relations arising after their introduction into
act.
The action of the law applies to relations that arose before its entry into force, only in cases where this is directly
provided by law.

Article 5. Business customs
1. The custom of business turnover is recognized as established and widely used in any area of ​entrepreneurial activity.
a rule of conduct that is not provided for by law, regardless of whether it is recorded in any document.
2. Business customs that contradict the statutory provisions that are binding on the participants in the relevant relationship
or contracts do not apply.

Article 6. Application of civil
legislation by analogy
1. In cases where the relations provided for in paragraphs 1 and 2 of Article 2 of this Code are not directly regulated
legislation or agreement of the parties and there is no business custom applicable to them, to such relations, if this
does not contradict their essence, the norm of civil law is applied, which regulates similar relations (analogy of the law).
2. If it is impossible to use the analogy of the law in these cases, the rights and obligations of the parties are determined based on the general
began and the meaning of civil legislation (analogy of law).
3. The court does not have the right to refuse to administer justice in civil cases in cases where there is no rule of law or it is not clear.
4. It is not allowed to apply by analogy the norms restricting civil rights and establishing liability.

Article 7. Civil law
and international treaties
If an international treaty of Turkmenistan establishes rules other than those provided for by the civil
legislation, the rules of an international treaty apply.

CHAPTER 2. ESTIMATION OF CIVIL RIGHTS AND OBLIGATIONS, EXERCISE AND PROTECTION
CIVIL RIGHTS

Article 8. Grounds for occurrence
civil rights and obligations
Civil rights and obligations arise from the grounds provided for by law, as well as from the actions of physical and
legal entities, which, although not provided for by them, but due to general principles and the meaning of civil legislation, generate
civil rights and obligations.
In accordance with this, civil rights and obligations arise:
a) from contracts and other transactions provided for by law, as well as from contracts and other transactions, although not provided for by law, but
not contradicting it;
b) from acts of state bodies and local self-government bodies, which are provided by law as a basis
the emergence of civil rights and obligations;
c) from a court decision that established civil rights and obligations;
d) as a result of the creation and acquisition of property on grounds not prohibited by law;
e) as a result of the creation of works of science, literature, art, inventions and other results of intellectual activity;
f) as a result of causing harm to another person;
g) as a result of unjust enrichment;
h) as a result of other actions of individuals and legal entities;
i) as a result of events with which the legislation connects the onset of civil law consequences.

Article 9. Exercise of civil rights
1. Individuals and legal entities, at their discretion, exercise their civil rights.
2. The refusal of individuals and legal entities to exercise their rights does not entail the termination of these rights, with the exception of
cases provided by law.
3. The subjects of civil legal relations are obliged to exercise their rights and obligations in good faith, not to cause their
actions (inaction) harm to others.
4. In case of non-compliance with the requirements provided for in paragraph 3 of this article, the court may refuse to protect the person
the right that belongs to him.
5. In cases where the law makes the protection of civil rights dependent on whether these rights were exercised in good faith and reasonably,
the conscientiousness and reasonableness of the participants in civil relations is assumed.

Article 10. Judicial protection of civil rights
1. The protection of violated or disputed civil rights is carried out by the court, the economic court, the arbitration court (hereinafter referred to as the court) in
in accordance with the jurisdiction of cases established by procedural legislation or an agreement.
2. A law or an agreement may provide for the settlement of a dispute between the parties before going to court.
3. Protection of civil rights in the administrative procedure is carried out only in cases provided for by law. Decision,
adopted in an administrative manner, can be appealed in court.

Article 11. Ways to protect civil rights
Protection of civil rights is carried out by:
a) recognition of the right;
b) restoring the situation that existed before the violation of the right, and suppression of actions that violate the right or pose a threat
its violation;
c) recognizing the transaction as invalid and applying the consequences of its invalidity;
d) invalidation of an act of a state body or local self-government body;
e) an award to the performance of an obligation in kind;
f) self-defense of civil rights;
g) compensation for losses;
h) collection of a forfeit;
i) compensation for moral damage;
j) termination or change of the legal relationship;
k) non-application by the court of an act of a state body or local self-government body that is contrary to the law;
l) in other ways provided by law.

Article 12. Invalidation of an act that does not comply with legislation

An act of a state body or local self-government body violating civil rights and legally protected interests
natural or legal person is invalid from the moment of its acceptance.
If the court declares such an act invalid, the violated right is subject to restoration or protection in other ways,
provided for in Article 11 of this Code.

Article 13. Self-defense of civil rights

Self-defense of civil rights is allowed.
Self-defense methods must be proportionate to the violation and must not go beyond the actions necessary for it.
warnings or suppression, if the assistance of the competent authorities is not received on time.

Article 14. Compensation for losses
1. A person whose right has been violated may demand full compensation for the losses caused to him. Invalid based on
by prior agreement waiver of the right to claim damages.
2. Losses are understood as expenses that the person, whose right has been violated, has made or will have to make in order to restore
the violated right, loss or damage to his property (real damage), as well as lost income that this person
would have received under the normal conditions of civil turnover, if his right had not been violated (loss of profit).
If the person who violated the right received income as a result, the person whose right was violated has the right to demand compensation,
along with other losses, lost profits in the amount not less than such income.

Article 15. Protection of personal non-property rights and
other intangible benefits
Personal non-property rights and other non-material benefits are protected in the cases and in the manner provided for by this
The Code and other laws, as well as in those cases and those limits in which the use of methods of protecting civil rights follows
from the essence of the violated right and the nature of the consequences of this violation.

Article 16. Protection of honor, dignity and business reputation

1. An individual or legal entity has the right to demand in court the refutation of those defaming his honor, dignity or business
the reputation of the information, unless the person who disseminated such information proves that they correspond to reality.
At the request of interested persons, it is allowed to protect the honor and dignity of an individual even after his death.
2. If information defaming the honor, dignity or business reputation of an individual or legal entity is disseminated in
mass media, they must be refuted in the same media.
If the specified information is contained in a document issued by the organization, such a document is subject to replacement or withdrawal.
The procedure for refutation in other cases is established by the court.
3. An individual or legal entity in respect of whom the mass media have published information that infringes upon
his rights or interests protected by law, has the right to publish his answer in the same mass media.
4. If the decision of the court is not executed, the court shall have the right to impose a fine on the offender, collected in the amount and in the manner provided for
procedural legislation, to the state's income. Payment of a fine does not relieve the offender from the obligation to comply
action provided for by a court decision.
5. An individual or legal entity in respect of whom information has been disseminated that discredits his honor, dignity or business
reputation, has the right, along with the refutation of such information, to demand compensation for losses and compensation for moral damage,
caused by their spread.
6. If it is impossible to establish the person who disseminated information defaming the honor, dignity or business reputation of the physical
or a legal entity, then the person in respect of whom such information is disseminated has the right to apply to the court with an application for
recognition of the disseminated information as untrue.

Article 17. Protection of the right to one's own
picture
No one has the right to publish and distribute the published image of any person without the consent of that person. Such consent
not required in cases where the publication and dissemination of the image is connected with the requirements of the court, the bodies of inquiry and
investigation when photographing or otherwise obtaining an image is carried out in a public environment, as well as in other
cases provided by law.
The person's consent to the publication and distribution of his image is presumed if the person portrayed has posed for a fee.

Article 18. Right to protection of privacy
1. An individual has the right to protect his personal life: secrets of correspondence, diaries, notes, notes, intimate life, birth,
adoption, medical or legal secrets, secrets of deposits, etc.
Disclosure of the secrets of personal life is possible only in cases established by law.
2. Publishing diaries, notes, notes, etc. allowed only with the consent of their author, and letters - with the consent of their author and addressee. IN
in the event of the death of any of them, these documents may be published with the consent of the surviving spouse and the children of the deceased, in
subsequent - with the consent of other descending descendants.

SECTION II. FACE

CHAPTER 1. INDIVIDUALS
Article 19. Concept of a natural person

Individuals are understood as citizens of Turkmenistan, foreign citizens, as well as stateless persons.

Article 20. Legal capacity of a natural person
1. The ability to have civil rights and obligations (civil legal capacity) is recognized equally for all
individuals.
2. The legal capacity of a natural person arises at the moment of his birth and terminates by death.
3. The right to be an heir arises from the moment of conception; its fulfillment depends on birth.

Article 21. Name of a natural person
1. An individual acquires and exercises rights and obligations under his own name, including his surname and his own name, and
also, at his request, a patronymic, unless otherwise follows from legislation or national custom.
In cases and in the manner prescribed by law, an individual may use a pseudonym (fictitious name).
2. An individual has the right to change his name in the manner prescribed by law. The change of a name by an individual is not
the basis for the termination or change of his rights and obligations, acquired under the same name.
An individual is obliged to take the necessary measures to notify his debtors and creditors about the change of his name and bears
the risk of consequences caused by the lack of information of these persons about the change of his name.
An individual who has changed his name has the right to demand that appropriate changes be made to the documents drawn up at his own expense.
in his former name.
3. The name received by an individual at birth, as well as the change of name, are subject to registration in the manner prescribed for
registration of acts of civil status.
4. Acquisition of rights and obligations under the name of another person is not allowed.

Article 22. Place of residence of an individual
1. The place of residence is the place where a natural person permanently or predominantly resides.
2. The place of residence of minors under the age of fourteen or persons under guardianship is the place
residence of their parents, adoptive parents or guardians.
3. The place of residence is not lost if the person is forced or for the performance of state duties
have to be absent from this place for a certain period.

Article 23. Legal capacity of a natural person
1. The ability of an individual to acquire and exercise civil rights of his own free will and by his actions, create for
civil obligations and fulfill them (civil legal capacity) arises in full with the onset
majority, that is, upon reaching the age of eighteen.
2. In the case when the law allows marriage before reaching the age of eighteen, an individual who has not reached
eighteen years of age, acquires full legal capacity from the time of marriage.
The legal capacity acquired as a result of marriage is retained in full even in the event of divorce until
reaching eighteen years of age.
If the marriage is declared invalid, the court may decide on the loss of the minor spouse of full legal capacity with
moment determined by the court.
3. Minors under the age of seven (minors) are legally incompetent.

Article 24. Inadmissibility of deprivation and restriction of legal capacity and legal capacity

1. An individual cannot be deprived of legal capacity.
2. No one can be limited in legal capacity and capacity other than in the cases and procedure established by law.
3. Failure to comply with the conditions established by law and the procedure for limiting the legal capacity of individuals or their right to practice
entrepreneurial or other activity entails the invalidity of an act of a state or other body establishing
corresponding limitation.
4. Full or partial refusal of an individual from legal capacity or capacity and other transactions aimed at
limitation of legal capacity or legal capacity are void.

Article 25. Limited legal capacity
minors
1. Minors between the ages of seven and eighteen have limited legal capacity.
2. For the validity of a transaction made by a person with limited legal capacity, the consent of his legal representative is required, for
except for cases when a person with limited legal capacity receives benefits under the transaction.

Article 26. Recognition of a natural person
incapacitated
1. An individual who, due to a mental disorder (mental illness or dementia), cannot understand the meaning
their actions or to direct them, may be declared incompetent by the court. Guardianship is established over him.
2. On behalf of a natural person who has been declared incapable, transactions are made by his guardian.
3. If the grounds, by virtue of which the natural person was recognized as incapable, have disappeared, the court shall recognize him as capable. On the
On the basis of a court decision, the guardianship established over him is canceled.

Article 27. Restriction of legal capacity of physical
persons
1. An individual who, due to the abuse of alcoholic beverages or drugs, puts his family in
difficult financial situation, may be limited by the court in legal capacity. Guardianship is established over him. Such
a person has the right to conclude transactions on the disposal of property, receive and dispose of wages, pensions or other types
income only with the consent of the trustee, with the exception of small transactions of a domestic nature.
2. If the grounds by virtue of which the natural person was restricted in active legal capacity have ceased to exist, the court shall cancel the restriction of his
legal capacity. On the basis of a court decision, the guardianship established over a natural person is canceled.

Article 28. Entrepreneurial activity
natural person
1. An individual has the right to engage in entrepreneurial activity without forming a legal entity.
2. To entrepreneurial activities of individuals carried out without forming a legal entity, respectively
the rules of this Code, which regulate the activities of legal entities, apply.

Article 29. Property liability
natural person
An individual is responsible for his obligations with all property belonging to him, with the exception of property for which in
foreclosure cannot be levied in accordance with the law.
The list of property of individuals, which cannot be foreclosed, is established by the civil procedural
legislation.

Article 30. Insolvency (bankruptcy)
individual entrepreneur
1. An individual entrepreneur who is unable to satisfy the claims of creditors related to the implementation of
entrepreneurial activity, can be declared insolvent (bankrupt) by a court decision.
2. When carrying out the procedure for declaring an individual entrepreneur bankrupt, his creditors for obligations not
related to the implementation of his entrepreneurial activity, also has the right to present his claims. Requirements of these
creditors not declared by them in this manner remain in force after the completion of the bankruptcy procedure of the individual
entrepreneur.
3. Satisfaction of the claims of creditors of an individual entrepreneur in the event of his recognition as insolvent (bankrupt)
carried out at the expense of his property, which can be foreclosed, in the following order:
first of all, the requirements of individuals are satisfied, to which the entrepreneur is responsible for
causing harm to life or health, by capitalizing the corresponding time-based payments, as well as requirements for
collection of alimony;
secondly, settlements are made for the payment of severance benefits and wages with persons working under an employment contract,
but not more than three months;
in the third place - the claims of creditors are satisfied, secured by the pledge owned by the individual
property owner;
fourthly, arrears of obligatory payments to the budget and extra-budgetary funds are repaid;
fifth, settlements are made with other creditors in accordance with the law.
The claims of the creditors of each priority are satisfied after the claims of the creditors of the previous priority are satisfied.
4. After completion of settlements with creditors, an individual entrepreneur declared bankrupt is released from execution
the remaining obligations associated with his entrepreneurial activities and other requirements for performance and
taken into account when the entrepreneur was declared bankrupt.
The claims of individuals to whom the declared bankrupt is liable for causing harm remain in force
life or health, as well as other personal requirements.
5. The grounds and procedure for the court declaring an individual entrepreneur insolvent (bankrupt) or declaring his
insolvency (bankruptcy) are established by the law on insolvency (bankruptcy).
6. By a court decision, an individual declared bankrupt may be prohibited from engaging in entrepreneurial
activities for a certain period, which cannot exceed the maximum period established by the law on
insolvency (bankruptcy).

Article 31. Guardianship and curatorship
1. Guardianship and guardianship are established to protect the rights and interests of incapacitated or partially capable individuals
persons.
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2. Guardians and trustees act in defense of the rights and interests of their wards in relations with any persons and organizations in
including in courts, without special authority.
3. Guardianship and trusteeship of underage natural persons shall be established in the absence of their parents,
adoptive parents, deprivation of parental rights by the court of parents, as well as in cases where such individuals for other reasons
left without parental care, in particular, when parents shy away from their upbringing or protection of their rights and interests.

Article 32. Guardianship
1. Guardianship is established over incapacitated individuals.
2. Guardians are representatives of the wards by virtue of the law and make all necessary transactions on their behalf and in their interests.

Article 33. Guardianship
1. Guardianship is established over individuals with limited legal capacity.
2. Trustees give their consent to the performance of those transactions that individuals under guardianship are not entitled to
commit yourself.
Trustees assist the wards in the exercise of their rights and performance of duties, and also protect them from
abuse by third parties.

Article 34. Bodies of guardianship and guardianship
1. Bodies of guardianship and trusteeship are local self-government bodies, and in settlements where they do not exist - khyakims of etraps
or cities.
2. The court shall be obliged, within three days from the time of the entry into force of the decision on recognizing a natural person as incapacitated or
on the limitation of his legal capacity to inform the guardianship and trusteeship authority at the place of residence of such an individual for
establishing guardianship or trusteeship over him.
3. The body of guardianship and trusteeship at the place of residence of the wards shall supervise the activities of their guardians and trustees.

Article 35. Guardians and Trustees
1. Only adult capable natural persons may be appointed as guardians and trustees. Cannot be assigned
guardians and trustees are individuals deprived of parental rights.
2. A guardian or curator may be appointed only with his consent. In this case, his moral and other personal
qualities, the ability to fulfill the duties of a guardian or curator, the relationship existing between him and the person,
in need of guardianship or guardianship, and if possible - and the desire of the ward.
3. A guardian or curator is appointed by the guardianship and trusteeship body at the place of residence of the person in need of guardianship or
guardianship, within a month from the moment when the specified authorities became aware of the need to establish guardianship or
guardianship over an individual. In the presence of noteworthy circumstances, the guardian or trustee may be
appointed by the guardianship and trusteeship body at the place of residence of the guardian (curator). If a person in need of guardianship or
guardianship, no guardian or curator has been appointed within a month, the performance of the duties of a guardian or curator is temporary
assigned to the body of guardianship and trusteeship.
The appointment of a guardian or curator may be challenged in court by interested persons.
4. Guardians and trustees of individuals in need of guardianship or guardianship and are or are placed in
relevant educational, medical institutions, social welfare institutions or other similar
institutions are these institutions.

Article 36. Execution by guardians and trustees
their responsibilities
1. Duties of guardianship and guardianship are performed free of charge. Guardians and trustees have the right to demand compensation for expenses,
related to the performance of duties of guardianship and guardianship.
2. Guardians and curators of underage individuals are obliged to live together with their wards. Separate
residence of the trustee with a ward who has reached the age of sixteen is allowed with the permission of the guardianship and trusteeship body at
provided that this does not adversely affect the education and protection of the rights and interests of the ward.
Guardians and trustees are obliged to notify the guardianship and trusteeship authorities about the change of place of residence.
3. Guardians and trustees are obliged to take care of the maintenance of their wards, to provide them with care and treatment, to protect them
rights and interests.
Guardians and custodians of minors should take care of their education and upbringing.
4. The duties specified in paragraph 3 of this article shall not be imposed on the trustees of adult individuals,
limited by the court in legal capacity.
5. If the grounds by virtue of which an individual was recognized as incapable or partially incapacitated due to
alcohol or drug abuse, have disappeared, the guardian or curator is obliged to apply to
by the court on the recognition of the ward as capable and on the removal of guardianship or trusteeship from him.

Article 37. Disposal of the property of the ward
1. Income of a ward of an individual, including income due to a ward from the management of his property, for
with the exception of income, which the ward has the right to dispose of independently, is spent by the guardian or trustee
exclusively in the interests of the ward and with the prior permission of the guardianship and guardianship authority.
Without the prior permission of the guardianship and trusteeship body, the guardian or curator has the right to make the necessary
maintenance of the ward costs at the expense of the amounts owed to the ward as his income.
2. The guardian may not, without the prior permission of the guardianship and trusteeship body, perform, and the trustee may not consent to
making transactions for the alienation, including the exchange or donation of the ward's property, renting it out (for rent), in
gratuitous use or as a pledge, transactions entailing the abandonment of the rights belonging to the ward, the division of his property or allotment
from his shares, as well as any other transactions involving the reduction of the ward's property.
The procedure for managing the property of the ward is determined by law.
3. The guardian, trustee, their spouses and close relatives are not entitled to make transactions with the ward, except for the transfer
property to the ward as a gift or for free use, as well as represent the ward in the conclusion of transactions
or litigation between the ward and the spouse of the guardian or guardian and their close relatives.

Article 38. Trust management
the property of the ward
1. If necessary, permanent management of immovable and valuable movable property of the ward, the guardianship body and
trusteeship enters into an agreement on the trust management of the property with the manager appointed by this body. In that
In this case, the guardian or trustee retains his authority over the property of the ward that has not been transferred to
trust management.
When the manager exercises the powers to manage the property of the ward, the manager is subject to
the effect of the rules provided for by paragraphs 2 and 3 of Article 37 of this Code.
2. Trust management of the property of the ward is terminated on the grounds provided by law for termination
property trust agreements, as well as in cases of termination of guardianship and trusteeship.

Article 39. Release and suspension of guardians and trustees from the performance of their duties

1. The body of guardianship and trusteeship releases the guardian or trustee from the performance of his duties in cases of return
minor to his parents or his adoption.
When the ward is placed in an appropriate educational, medical institution, institution of social protection of the population, or
another similar institution, the guardianship and trusteeship body releases the previously appointed guardian or curator from execution
them of their duties, if this does not contradict the interests of the ward.
2. If there are valid reasons (illness, change in property status, lack of understanding with the ward and
etc.) the guardian or trustee may be released from the performance of his duties at his request.
3. In cases of improper performance by a guardian or curator of his duties, including when he uses
guardianship or trusteeship for mercenary purposes or when the ward is left without supervision and the necessary assistance, the guardianship authority and
guardianship can remove the guardian or trustee from these duties and take the necessary measures to
bringing the guilty person to responsibility established by law.

Article 40. Termination of guardianship and guardianship
1. Guardianship and trusteeship over adult individuals shall be terminated in cases of a court decision on
recognition of the ward as capable or cancellation of restrictions on his legal capacity at the request of the guardian, trustee or body
guardianship and trusteeship.
2. Upon reaching the age of seven by the minor ward, guardianship over him is terminated, and the person who performed the duties
guardian, becomes the guardian of the minor without an additional decision on this.
3. Guardianship over a minor is terminated without a special decision upon reaching the minor wards
eighteen years old, as well as when he marries (paragraph 2 of Article 23) and in other cases when he acquires full legal capacity up to
reaching the age of majority.

Article 41. Patronage over capable persons
individuals
1. At the request of an adult capable natural person who, for health reasons, cannot independently
to exercise and defend his rights and fulfill his duties, he may be placed under guardianship in the form of patronage.
2. The guardian (assistant) of an adult capable natural person may be appointed by the guardianship and trusteeship body
only with the consent of such a person.
3. The disposal of property belonging to an adult capable ward is carried out by the trustee
(assistant) on the basis of a contract of assignment or trust concluded with the ward. Committing household and
other transactions aimed at the maintenance and satisfaction of the ward's everyday needs are carried out by his trustee
(assistant) with the consent of the ward.
4. Patronage of an adult capable natural person, established in accordance with paragraph 1 of this article,
terminated at the request of an individual under patronage.
The trustee (assistant) of an individual who is under patronage is exempted from performing the tasks assigned to him
duties in the cases provided for in Article 39 of this Code.

Article 42. Recognition of an individual is unknown
absent
An individual may, at the request of interested persons, be recognized by the court as missing if his location
it is unknown and during the year there is no information about his place of residence at his place of residence.
If it is impossible to establish the day of receipt of the latest information about the absence of the beginning of the calculation of the period for recognition
an unknown absence is considered the first day of the month following the one in which the latest information about
absent, and if it is impossible to establish this month - the first of January of the next year.

Article 43. Consequences of recognizing a natural person
missing
1. The property of a natural person recognized as missing, if necessary, is transferred to permanent management.

on the basis of a court decision to a person who is determined by the guardianship and guardianship authority and acts on the basis of an agreement on
fiduciary management concluded with this body.
From this property, maintenance is issued to persons whom the missing person is obliged to maintain, and the debt for
other obligations of the missing person.
2. The body of guardianship and trusteeship may even before the expiration of a year from the date of receipt of information about the place of stay of the absent person
appoint a manager of his property.
3. The consequences of recognizing a person as missing, not provided for by this article, shall be determined by law.

Article 44. Cancellation of the decision on recognizing an individual as missing

In the event of the appearance or discovery of the place of stay of a natural person recognized as missing, the court cancels the decision on
recognizing him as missing. On the basis of a court decision, the management of the property of this individual is canceled.
It does not have the right to claim compensation for the benefits obtained as a result of proper housekeeping, but it has the right to demand
compensation for damage resulting from improper housekeeping.

Article 45. Declaration of an individual as deceased
1. An individual may be declared deceased by a court if there is no information about his place of residence at his place of residence during
five years, and if it disappeared under circumstances that threatened death or giving reason to assume its death from
a certain accident - within six months.
2. A soldier or other natural person who has disappeared in connection with hostilities may be declared by a court
dead no earlier than three years after the end of hostilities.
3. The day of death of an individual who is declared deceased is the day of entry into force of a court decision on declaring him
dead. In the event that an individual who has gone missing under circumstances that threatened death is declared dead, or
giving grounds to assume his death from a certain accident, the court may recognize the day of death of this physical
face the day of his alleged death.

Article 46. Consequences of the appearance of a natural person,
declared dead
1. In the event of the appearance or discovery of the place of stay of a natural person declared deceased, the court cancels the decision to declare
him dead.
2. Regardless of the time of his appearance, an individual may demand from any person the return of the preserved property that
passed to this person free of charge after the natural person was declared dead, except for the cases provided for
paragraph 2 of Article 211 of this Code.
3. Persons to whom the property of an individual, declared deceased, was transferred under compensated transactions, are obliged to return it to him.
property, if it is proved that, when acquiring the property, they knew that the natural person declared deceased was alive. When
the impossibility of returning such property in kind is reimbursed for its value.
4. If the property of the person declared deceased was transferred to the treasury and sold by it, then after the cancellation of the court decision on the announcement
to the deceased, this person is returned within a month the amount received from the sale of property.

Article 47. Registration of acts of civil
fortunes
1. The following acts of civil status are subject to state registration:
a) birth;
b) marriage;
c) divorce;
d) adoption (adoption);
e) establishing paternity;
f) change of name;
g) death of an individual.
2. Registration of acts of civil status is carried out by the bodies of registration of acts of civil status by making
relevant entries in the civil registration books (act books) and the issuance of certificates on the basis of these
records.
3. Correction and amendment of civil status records shall be carried out by the civil status registration authority upon
there are sufficient grounds and the absence of a dispute between the parties concerned.
In the event of a dispute between the interested parties or the refusal of the vital statistics body to correct or
amendment of the record, the dispute is resolved by the court.
Cancellation and restoration of civil status records is carried out by the civil registration authority on
on the basis of a court decision that has entered into legal force.
4. Bodies carrying out the registration of acts of civil status, the procedure for registering these acts, the procedure for changing,
restoration and cancellation of civil status records, forms of act books and certificates, as well as the procedure and terms
storage of act books are determined by law.

CHAPTER 2. LEGAL ENTITIES
§one. General Provisions

Article 48. Concept of a legal entity

1. A legal entity is an organization that owns separate property and is responsible for its
obligations of this property, can, on its own behalf, acquire and exercise property and personal non-property
rights, bear obligations, be a plaintiff and a defendant in court.
2. The state participates in civil legal relations as a legal entity. The powers of the state are exercised by its organs.
Legal entities formed by the state participate in civil legal relations on a general basis.

Article 49. Legal capacity of a legal entity
1. A non-entrepreneurial legal entity is entitled to carry out activities consistent with the objectives and
provided for by its constituent documents.
An entrepreneurial legal entity has the right to carry out any activity not prohibited by law.
Some types of activities, the list of which is determined by law, legal entities have the right to carry out only on the basis of
special permission (license). The right to carry out such activities in a legal entity arises from the moment it receives
permits (licenses).
2. The legal capacity of a legal entity arises from the moment of its state registration and terminates at the time of termination
registration of its liquidation.
3. A legal entity may be limited in rights only in cases and in the manner prescribed by law.

Article 50. Business legal entities
Entrepreneurial are legal entities whose task is entrepreneurial (commercial) activities with
the purpose of making a profit. Business legal entities are created in accordance with the law.

Article 51. Non-entrepreneurial legal
faces
1. Non-entrepreneurial are legal entities whose task is not an entrepreneurial (commercial)
activities for the purpose of making a profit. Ancillary entrepreneurial activity does not change its nature
non-entrepreneurial legal entity. Non-business legal entities are created in the form of public organizations
and funds.
2. A legal entity is a public organization if a common goal is set by several persons, while its
existence does not depend on changes in its members. For the establishment of a public organization, at least five
members.
3. A legal entity is a foundation when one or more founders to achieve a common public benefit goal
transfer special property to the ownership of an independent entity that has no members.

Article 52. State registration
legal entities
1. A legal entity is subject to state registration in the manner prescribed by law. State registration data, in
including for commercial organizations - company name, included in the Unified State Register of Legal Entities,
open to the public.
Refusal of state registration, as well as evasion of such registration, can be appealed in court.
2. A legal entity is considered to be created from the moment of its state registration.

Article 53. Constituent documents of the legal
faces
1. A legal entity acts on the basis of constituent documents.
The constituent agreement of a legal entity is concluded, and the charter is approved by its founders (participants).
A legal entity created in accordance with this Code by one founder acts on the basis of the charter approved by
by this founder.
2. The charter and other constituent documents of a legal entity must determine the name of the legal entity, its place
location, the procedure for managing the activities of a legal entity, as well as other information provided by the law on
legal entities of the corresponding type.
In the memorandum of association, the parties (founders) determine the procedure for the creation and operation of a legal entity, the terms of transfer
him of his property and participation in his activities. The agreement also determines the conditions and procedure for distribution between
participants in profits and losses, management of the activities of a legal entity, withdrawal of founders (participants) from its composition. IN
the memorandum of association by agreement of the founders may include other conditions.
3. Changes in constituent documents become effective for third parties from the moment of state registration, and in cases where
established by law - from the moment the state registration authority is notified of such changes. but
legal entities and their founders (participants) are not entitled to refer to the lack of registration of such changes in relations with
third parties acting on these changes.

Article 54. Bodies of a legal entity
1. A legal entity acquires civil rights and assumes civil obligations through its bodies operating in
in accordance with the legislation and constituent documents. Procedure for Appointment or Election of Bodies of a Legal Entity
determined by legislation and constituent documents.
2. A person who, by virtue of the law or the constituent documents of a legal entity, acts on its behalf, must act in
the interests of the legal entity it represents in good faith and reasonably.

Article 55. Name and location
legal entity
1. A legal entity has its own name, containing an indication of its organizational and legal form.
2. The location of a legal entity is considered to be the location of its administration. A legal entity can only have one
location (legal address). The other location of the legal entity is considered the location of the branch.
3. The name and location of a legal entity shall be indicated in its constituent documents.
4. A legal entity that is a commercial organization must have a firm name.
A legal entity, the firm name of which is registered in accordance with the established procedure, has the exclusive right of its
use.
The procedure for registration and use of company names is determined by legislation in accordance with this
The Code.
A person who unlawfully uses someone else's registered company name, at the request of the owner of the right to
the company name is obliged to stop using it and compensate for the damage caused.

Article 56. Representative offices and branches
1. A representative office is a separate subdivision of a legal entity located outside its location and
protecting and representing the interests of a legal entity, performing transactions on its behalf and other legal
actions.
2. A branch is a separate subdivision of a legal entity located outside its location and performing
all or part of its functions, including the functions of representation.
3. Representative offices and branches are not legal entities. They are endowed with property by the legal entity that created them and
act on the basis of the provisions approved by him.
Heads of representative offices and branches are appointed by a legal entity and act on the basis of its power of attorney.

§ 2. GENERAL RULES ON PUBLIC ORGANIZATIONS
AND FUNDS

Article 57. Registration of public organizations and foundations

1. Public organizations and foundations begin their activities as legal entities from the moment of registration. Registration
public organizations and foundations are produced by the Ministry of Adalat. The procedure for registration of public organizations,
pursuing political or other socially significant goals (political parties, religious organizations,
trade unions, etc.) is determined by special laws.
2. The right to demand registration takes place if the articles of association comply with the requirements of the law and the purpose of the submitted for registration
legal entity does not contradict the current legislation, recognized moral norms or constitutional
legal principles of Turkmenistan. The purpose of the property of the funds must correspond to the intended goals.
3. For registration, an application and articles of association signed by all founders and members of the board are required.
4. The Ministry of Adalat must make a decision on registration within one month from the date of submission of the application.
5. Refusal to register must be justified, provide for the possibility of appeal and its procedure. Refusal may be
appealed in court.
(As amended by the Law of Turkmenistan dated October 21, 2003 - Vedomosti of the Mejlis of Turkmenistan, 2003 No. 4, art. 36)

Article 58. Charter of public organizations and foundations

1. The organization and structure of public organizations and foundations are regulated by the charter.
2. The charter must contain:
a) the goals of the activity;
b) name;
c) location (legal address);
d) the procedure for the liquidation and distribution of property;
e) the names and surnames of all members of the management board, place and date of their birth and place of residence, the procedure for scheduling meetings of the management board, and
making decisions on them;
f) the powers of members of a public organization (foundation).
3. The charter may also contain:
a) the functions of other management and control bodies;
b) the powers of a meeting of members of a public organization.
4. For foundations, in addition to the one specified in paragraph 2 of this article, the charter must contain:
a) the minimum amount and type of donation;
b) instructions on the use of the amounts.
5. The articles of association must be notarized.

Article 59. Registration data

1. Registration includes the following data: the name of the legal entity and its location, the purpose of its activities,
the date of adoption of the charter, the identity of the founders, the identity of the board members and possible restrictions on their representative powers.
2. Registration data are subject to publication.
3. Any person has the right to familiarize himself with the entries in the register and demand written extracts.

Article 60. Registration of changes

Changes in the facts that are subject to registration must immediately be submitted to the Ministry of Adalat in a certified
board form. They are entered in the register and published.
(As amended by the Law of Turkmenistan dated October 21, 2003 - Vedomosti of the Mejlis of Turkmenistan, 2003 No. 4, art. 36)

Article 61. State control over the activities of public organizations and foundations

1. State control over the legality of the activities of public organizations and foundations is carried out by the Ministry of Justice.
2. The Ministry of Adalat cancels registration if a public organization or foundation has mainly switched to an entrepreneurial one.
activity or if the implementation of the purpose provided for by the charter becomes impossible.
(As amended by the Law of Turkmenistan dated October 21, 2003 - Vedomosti of the Mejlis of Turkmenistan, 2003 No. 4, art. 36)

Article 62. Leadership and representation

1. Board members and, in some cases, special representatives have the right to lead. This simultaneously constitutes their
duty.
2. The limits of leadership are determined by the charter in accordance with the objectives of the public organization or foundation.
3. The articles of association may provide for the authority of one person to conduct business alone or establish joint leadership of two or
several persons.
4. The charter may provide for a list of actions, the implementation of which requires the consent of other control bodies.

Article 63. Competence of the management board in relations with third parties

1. The Board represents a public organization or foundation in relations with third parties. The charter must contain provisions
whether the persons authorized to represent them will act alone, several of them jointly, or all jointly.
2. The charter may limit the powers of the representative office. These restrictions apply to third parties only when they
are registered in the registry, unless the third party was aware of these restrictions.
3. The charter may provide for the appointment of a special representative of a public organization or foundation. The charter should be
the limits of the powers of such a representation and its form have been regulated, which is also subject to registration.

Article 64. Liability

1. The public organization and the foundation are responsible for harm caused to third parties as a result of such actions of members
of the board or other representatives in the performance of their duties entrusted to them, which entail the obligation to compensate
harm.
2. The persons entitled to be represented must conduct business in good faith. If they violate this obligation, they bear
responsibility to a public organization or foundation for the harm caused. Refusal to compensate for harm is invalid if
it is necessary to satisfy the claims of third parties.
3. For the obligations of a public organization or foundation, their members are not responsible. Also not responsible
public organization and foundation for the obligations of its members.

Article 65. Termination and liquidation of a public organization or foundation

1. A public organization and a foundation are liquidated and cease their activities in cases stipulated by the charter as a result of
achievement or impossibility of achieving the goal, cancellation of registration by the Ministry of Adalat.
2. Upon liquidation, current affairs must be completed, requirements established, and the monetary value of the remaining
property, creditors are satisfied and the remaining property is distributed among eligible persons.
3. The persons authorized to accept the property may be determined by the charter. In the absence of such a definition, the Ministry
adalat, at its discretion, transfers the remaining property to one or more public organizations or foundations,
pursuing the same or a similar goal as the liquidated public organization or foundation. In the absence of such
organizations, a decision may be made to transfer this property to a charitable organization or the state.
4. Information on liquidation is subject to publication. Distribution of property is allowed only after one year after
publications.
5. The liquidation is carried out by the management board. In the presence of special circumstances, the Ministry of Adalat may appoint others
liquidators. The liquidators are responsible as board members.
(As amended by the Law of Turkmenistan dated October 21, 2003 - Vedomosti of the Mejlis of Turkmenistan, 2003 No. 4, art. 36)

§ 3. Special rules on public organizations

Article 66. Management Board

1. The board of a public organization is elected by the general meeting of members for a four-year term, unless the charter provides
other. The powers of the board continue after this period until the election of a new board.
2. The decision on the election of the board may be canceled at any time. By the charter, the cancellation of an election may be associated with the presence
important circumstances.

Article 67. General meeting

1. The general meeting of members of a public organization is convened by the board. It must be convened at least once a year at
in cases stipulated by the charter or when the interests of a public organization require it. In addition, the meeting must be
convened if required by a tenth of the members in writing and with an indication of the agenda.
2. The meeting is convened by sending a written message to all members or by publication in the printed organ
public organization no later than two weeks before the meeting.
3. The meeting of members makes decisions on all issues that are not within the competence of the board. The decision is valid only
provided that its subject was announced at the calling of the meeting.
4. The decision is taken by a majority of votes of the members present at the meeting, and the decision to amend the charter - by a majority of
three quarters of the vote. A four-fifths majority is required for a decision to change the purpose of a public organization
all members. Members not present at the meeting may vote in writing.

Article 68. Commissions

The meeting of members may, in accordance with the charter, form commissions to which the functions of the meeting may be delegated for a period
between meetings, especially to monitor the activities of a public organization. Commission members may
be only members of a public organization.
Page 3

Article 69. Special bodies

In order to advise in the process of carrying out the tasks of a public organization, a meeting of members may create special
bodies (advisory board, curatorium, administrative board), if provided for by the statutes. In such bodies there may be
persons who are not members of a public organization are also united.

Article 70. Membership in a public organization

1. Admission to membership in a public organization is carried out by the board on the basis of a written application from the applicant.
2. Each member has the right to withdraw from a public organization. The charter may provide for a specific withdrawal period, which is not
must exceed two years. Leaving a public organization caused by important circumstances cannot be limited
release date.
3. Membership is not transferred to other persons and does not pass by inheritance, unless otherwise provided by the charter.
4. In the presence of significant grounds, the general meeting of members may expel a member from the public organization. Excluded
the member has the right to appeal this decision in court.
5. If a public organization for those wishing to join it performs important functions in the implementation of social,
cultural or other tasks, this person has the right to demand admission to membership in a public organization, if this does not contradict
the basic principles of public organization.

§ 4. Special rules on foundations

Article 71. Foundations for destinators

The purpose of a foundation may also be to support certain individuals or specifically defined circles of persons. All persons entitled to
receiving a share from the property of the foundation (destinators), with the consent of all board members, can abolish the foundation or change the purpose of the foundation,
if supported by the Ministry of Adalat. The remaining property is distributed among the destinators.
(As amended by the Law of Turkmenistan dated October 21, 2003 - Vedomosti of the Mejlis of Turkmenistan, 2003 No. 4, art. 36)

Article 72. Obligation to ensure the payment of a contribution to the fund

1. The founder (founders), with a notarized document on the foundation of the foundation, must undertake to contribute to
fund property in the amount necessary to achieve the goal of the fund. If the property is not enough, then it should be refused
permission to create a foundation.
2. Prior to registration, it is possible to refuse the transfer of property at any time. Within one month after registration the property
must be transferred in full, otherwise the registration will expire.
3. The objectives of the foundation must be financed from the income received from the property, unless otherwise provided by the charter. If on
for a certain time, these incomes are not enough, the activities of the fund should be accordingly reduced or
suspended and income added to the property.
4. A report on the condition of the fund's property must be prepared annually in the appropriate form.

Article 73. Supervisory body

1. For the purpose of appointing the board and special representatives, their recall and control over them, the charter may provide for
formation of a supervisory body (curatorium), whose members are invited by the founders of the foundation. After the death of the founders
the composition of the supervisory body can be replenished with new members (co-optation) by the decision of the destinators or in the order,
defined by the charter.
2. In all other cases, the Ministry of Adalat monitors that the fund is managed in
compliance with laws and regulations. The Ministry of Adalat can at any time receive information on the activities of the foundation and
check its documentation.
3. The supervisory body can suspend decisions and measures of the board, declare them invalid or demand them.
cancellation if they are contrary to law or statute.
4. The supervisory body ensures that the appointment of the board and other bodies is in line with the charter. If the charter is not enough
regulates these relations, this body can give additional instructions.
(As amended by the Law of Turkmenistan dated October 21, 2003 - Vedomosti of the Mejlis of Turkmenistan, 2003 No. 4, art. 36)

Article 74. Changing the purpose of the foundation

If it is impossible to achieve the intended goal without destinators or there is another reason for the liquidation of the foundation,
The Ministry of Adalat may, in the absence of relevant provisions in the charter, instead of liquidation, request a change in purpose or
merge with other funds in such a way as to maintain similarity with the original purpose. If at least one of the
of the founders, his consent is required.
(As amended by the Law of Turkmenistan dated October 21, 2003 - Vedomosti of the Mejlis of Turkmenistan, 2003 No. 4, art. 36)

SECTION 3. TRANSACTIONS AND REPRESENTATION

CHAPTER 1. GENERAL PROVISIONS
Article 75. Concept and types of transactions

1. A transaction is an expression by individuals and legal entities of their will aimed at establishing, changing or
termination of civil rights and obligations.
2. Transactions can be unilateral and bilateral or multilateral (contracts).
A unilateral transaction can create obligations for other persons only in cases established by law or by agreement with these
by persons.

Article 76. Validity of expression of will
1. A declaration of will in relation to another person, if it was made in the absence of the latter, comes into force from the moment he receives
expression of will.
2. An expression of will is not considered valid if the other party declares its refusal in advance or immediately.
3. The validity of the expression of will is not affected by the death of the person who expressed the will, or the deprivation of his legal capacity, if
these events took place after the will.

Article 77. Interpretation of expression of will
When interpreting the will, it is necessary to follow the real will, without adhering to the literal meaning.
expressions.

Article 78. Impossibility to establish content
expression of will
The transaction does not take place if the content cannot be accurately established by external expression and no other circumstances.
expression of will.

Article 79. Invalidity of a transaction that contradicts the foundations of law and order and morality

A transaction made in violation of the rules established by law and contrary to public interests is invalid,
norms of morality.

Article 80. Invalidity of the transaction due to abuse of its position

A transaction may be invalidated if there is a clear inconsistency between the execution specified by the transaction and
the remuneration provided for this performance and if the transaction was concluded only due to the fact that one of the parties abused
their prevailing market position or took advantage of the other party's predicament or inexperience.

Article 81. Invalidity of imaginary and sham transactions

1. A transaction made only for the sake of appearance, without the intention to create the corresponding legal consequences (imaginary
deal).
2. If a sham transaction was made to cover up another transaction (a sham transaction), then the rules relating to
covered deal.

Article 82. Lack of Serious Intention

1. An expression of will made without serious intention, in the expectation that the absence of such intention will not be noticed,
negligible.
2. The person in respect of whom the expression of will has been committed must be compensated for the damage that has arisen due to the fact that it
trusted the will, if it did not know and could not know about the frivolity of intentions.

Article 83. Nullity of expression of will

1. The expression of the will of an incapacitated person is null and void.
2. The expression of will committed in an unconscious state or in a state of temporary mental disorder is null and void.
activities.
3. The expression of the will of a mentally ill person is also void if it is not recognized as incapacitated.

Article 84. Invalidity of a transaction made in violation of the established form

1. Invalid is a transaction, at the conclusion of which the form established by law was not observed. Failure to comply with the form,
established by the terms of the transaction itself, entails, if in doubt, the invalidity of the transaction.
2. If the transaction, which can be contested, is contested, then it is considered as invalid from the moment of its execution.
The challenge is made against the other party.
3. Any interested person has the right to challenge.

Article 85. Transaction conversion

If the terms of an invalid transaction meet the requirements for another transaction, then the rules apply,
relating to the latter, if, having learned about the invalidity of the transaction, the parties wish it to be valid.

Article 86. Confirmation of invalid transaction

1. If the person who has made an invalid transaction confirms it, then his confirmation as a transaction is again.
2. Disputing is not allowed if the disputed transaction has been confirmed by a person who has the right to challenge.
3. If an invalid agreement is confirmed by the parties, then they are obliged, if there is a doubt, to transfer to each other everything that
they would have received on the condition that the contract was valid from the outset.
4. Confirmation becomes valid only if the transaction does not contradict the foundations of law and order and morality.

Article 87. Invalidity of a part of a transaction

1. The invalidity of a part of the transaction does not entail the invalidity of its other parts, if it can be assumed that the transaction would be
committed without including its invalid part.
2. If one of the parts of the transaction concerns the standard terms of contracts and they are invalid or become insignificant constituent
parts of the contract, the contract as a whole remains valid.

CHAPTER 2. FUNCTIONALITY AS A CONDITION
VALIDITY OF THE TRANSACTION
Article 88. Validity of a transaction made by a minor

1. If a minor enters into a contract without the necessary consent of the legal representative, then the validity
the contract is subject to the subsequent approval of the representative, unless the minor benefits.
2. If a minor has become fully capable, he himself decides on the validity of his will.

Article 89. Cancellation of a contract concluded by a minor

1. Before the approval of the contract concluded by the minor, the other party has the right to withdraw from the contract.
2. If the other party knew about the minority of the person, she can declare a refusal only if the minor is false
misled her, claiming that he had the consent of a representative.

Article 90. Emancipation of a minor

1. An agreement concluded by a minor without the consent of a legal representative shall be considered valid if for performance
the actions stipulated by the contract, the minor disposed of the funds that were transferred to him by the legal representative
or with the consent of this representative - third parties for these purposes or for free disposal.
2. If the legal representative grants the minor the right to independently manage the enterprise, or
independent entry into labor relations, then in the relations usual for these spheres it becomes capable. These rules
apply both at the establishment of an enterprise, and in relation to its liquidation and the beginning or end of labor relations.
3. Permission to run an enterprise requires the consent of the legal representative, agreed with the guardianship and guardianship authorities.

Article 91. Invalidity of a transaction concluded without the obligatory consent of a legal representative

1. A unilateral transaction made by a minor without the necessary consent of a legal representative is invalid.
2. Such a transaction is also invalid if the consent of the legal representative is available, but the minor has not provided
a written document confirming this, as a result of which the party with whom the transaction was made immediately refused
her. Such a refusal is unacceptable if the other party has been informed of this consent of the legal representative.

Article 92. Necessity of permission for a transaction concluded before limitation of legal capacity

For a transaction concluded before the limitation of legal capacity, permission is required if it is established that the basis on which
there was a limitation of legal capacity, it clearly existed at the time of the transaction.

CHAPTER 3. FORM OF THE TRANSACTION

Article 93. Compliance with the form as a condition for the validity of the transaction

For the transaction to be valid, it is necessary to comply with the statutory form. If no such form is established, the parties may
define it yourself.

Article 94. Form of transaction

1. In a simple written form, the signatures of the parties involved in the transaction are sufficient for the validity of the transaction.
2. Signature restoration, repetition and reproduction by mechanical means is permissible where it is customary, and
precisely when signing on securities, the issue of which is carried out in large quantities.
3. If the form of the transaction requires its completion in a notarial order, then a notary must be present at the transaction, or
another person prescribed by law.

Article 95. Transferring signature to another person

A person who is unable to sign the transaction with his own hand due to illiteracy, physical disability or illness may
entrust the signing of the transaction to another person. The signature of the latter must be officially certified. In this case, the
the reason due to which the person who entered into the transaction was unable to sign it with his own hand.

Article 96. Conclusion of a transaction with the preparation of several documents

If several documents of similar content are drawn up during the transaction, then each party only needs to sign one
a copy that is intended for the relevant party.

CHAPTER 4. DISPUTED TRANSACTIONS

§ 1. Transactions made under the influence of delusion

Article 97. Concept

The transaction can be challenged if the expression of will is made on the basis of material error.

Article 98. Material error

A delusion is considered material if:
a) the person wanted to make another transaction, and not the one to which he expressed his consent;
b) the person is mistaken in the content of the transaction that he wished to complete;
c) there are no circumstances that the parties, based on the principles of good faith, considered as the basis of the transaction.

Article 99. Delusion regarding the content of the will

A delusion regarding the content of an expression of will is a delusion concerning such properties of a person or thing that
civil circulation are considered essential.

Article 100. Delusion in the motive of the transaction

Delusion in the motive of the transaction is not considered material, except for those cases when the motive was the subject
agreement.

Article 101. Delusion in law

A delusion in law is significant only if it was the only and main reason for committing
transactions.

Article 102. Consent of the counterparty to the transaction

The expression of will under the influence of delusion cannot be challenged if the other party agrees to execute the transaction in accordance with
the desire of the party intending to challenge the transaction.

Article 103. Minor errors

Minor errors in counting or in the expression of will in writing give the right to correction, but not to challenge.

Article 104. Validity of the challenge

1. The challenge is valid only if it is carried out within a month from the moment the grounds for
challenging.
2. If the transaction is contested and the delusion is caused by the negligence of the person entitled to challenge, he is obliged to compensate the other
to the party harm caused by the invalidity of the transaction. The obligation to compensate for harm does not arise if the other party
knew about delusion or due to her own negligence she was not aware of it.

Article 105. Delusion due to error of an intermediary

An expression of will incorrectly communicated by a person acting as an intermediary may be challenged on the same grounds,
that a transaction made under the influence of delusion in accordance with Article 98 of this Code.

§2. Fraudulent transactions

Article 106. Concept

1. A person forced to express his will by means of deception is entitled to demand that this transaction be declared invalid. it
takes place when it is clear that the transaction would not have been completed without deception.
2. If one party is silent about the circumstances, in case of identification of which the other party would not express its will, then
the latter may demand that the transaction be declared invalid. The obligation to disclose only occurs when another
the party had expected this in good faith.

Article 107. Recognition of the invalid transaction made by deception

For the invalidation of a transaction made by deception, it does not matter that, by providing false information, the party
pursued the goal of obtaining any benefit or harm to the other party.

Article 108. Cheating by a third party

In case of fraud on the part of a third party, it is possible to demand that the transaction be declared invalid, if you knew or should
was to know the person who benefits from this transaction.

Article 109. Term for challenging

The deal can be challenged within one year. The term is calculated from the moment when the person entitled to dispute learned about
the existence of a basis for contestation.

§ 3. Transactions made under the influence of violence or threat of violence

Article 110. Concept

Violence or threat of violence against the person who made the transaction gives him the right to demand recognition of the transaction
void even if the violence or threat of violence came from a third party.

Article 111. Nature of violence or threat of violence

1. The invalidity of the transaction entails such violence or threat of violence, which by its nature may have an impact on the person and
instill that he personally or his property is in real danger.
2. When assessing the nature of violence or the threat of violence, the age and sex of the person and the circumstances of life should be taken into account.

Article 112. Violence or threat of violence against loved ones

Violence or the threat of violence is the basis for the requirement to declare the transaction invalid and if it is directed
against a spouse, other family members or close relatives of one of the parties.

Article 113. Violence or threat of violence, carried out with the use of lawful means

In the understanding of the above rules of Articles 110-112 of this Code, such
actions that are not carried out either for illegal purposes or with the use of illegal means, except when
the means and the end do not correspond to each other.

Article 114. Term of challenge

A transaction made under the influence of violence or threat of violence can be challenged within one year from the date of termination
violence or threats of violence.

CHAPTER 5. CONDITIONAL TRANSACTIONS

Article 115. Concept

The transaction is considered completed under the condition when the emergence or termination of rights and obligations is made dependent on
circumstances of an expected in the future and unknown event by the fact that the execution of the transaction is postponed until it occurs or the transaction
ends upon the occurrence of this event.

Article 116. Invalidity of a condition that contradicts the foundations of law and order and morality

A condition that is contrary to the foundations of law and order and morality, or the fulfillment of which is impossible, is invalid. Deal,
dependent on any such condition is completely invalid.

Article 117. Condition depending on the will

A condition that depends on will is such a condition, the occurrence or non-occurrence of which depends on the parties to the transaction. A deal done
under such a condition is invalid.

Article 118. Positive conditions

1. If the transaction is made under the condition that any event occurs within a certain period of time, the condition is considered to be invalid,
if this period has expired and the event has not occurred.
2. If no deadline is specified, then the condition can be met at any time. The condition can be declared invalid when
it is clear that the event is no longer possible.

Article 119. Negative conditions

1. If the transaction is made under the condition that any event does not occur within a certain period, the condition is considered fulfilled and
when it is clear before the expiration of the term that the occurrence of this event is impossible.
2. If the term is not specified, the condition is considered fulfilled only when it becomes clear that the event will not occur.

Article 120. Inadmissibility of influencing the occurrence of a condition

1. A person who has made a transaction under a certain condition is not entitled to perform any action, which
may interfere with the fulfillment of his obligations.
2. If the condition occurs within a certain period of time and the person has already performed such an action, he is obliged to compensate the other party
the harm resulting from this action.

Article 121. Transaction with suspensive condition

A transaction is considered completed under a suspensive condition if the occurrence of the rights or obligations provided for by the transaction
depends on the expected in the future and unknown event or an event that has already occurred, but is not yet known to the parties.

Article 122. Transaction under a canceling clause

A transaction is considered completed under a canceling condition if the occurrence of this condition entails the termination of the transaction and
restores the position that existed before the transaction.

Article 123. Importance of good faith upon the occurrence of a condition

1. If the occurrence of the condition was delayed in bad faith by the party for which the occurrence of the condition is not favorable, the condition shall be deemed
coming.
2. If the onset of the condition was promoted in bad faith by a party for whom the onset of the condition is beneficial, the condition is not
is considered to have occurred.

CHAPTER 6. CONSENT TO TRANSACTIONS

Article 124. Concept

1. If the validity of the transaction depends on the consent of a third party, then both consent and refusal to it can be expressed both before
one or the other side.
2. To express consent, it is not required to comply with the form established for the transaction.
3. In the event that a transaction, the validity of which depends on the consent of a third party, is made with his consent, the rules apply
paragraph 2 of Article 91 of this Code.

Article 125. Advance consent (permission)

The consent (permission) given in advance may be canceled prior to the transaction, unless the parties have agreed otherwise. Cancellation
must be communicated to both parties.

Article 126. Subsequent consent (approval)

Subsequent consent (approval) is retroactive from the date of the transaction, unless otherwise specified.

Article 127. Disposal of an object by an unauthorized person

1. Disposal of any object by an unauthorized person is valid if it was carried out with the permission of an authorized person.
faces.
2. The order becomes valid if the authorized person approves it or when the person who ordered it acquires
subject, or when he will receive it by inheritance from an eligible person and will be fully liable for legacy.
If, in the last two cases, several conflicting orders have been made on this subject, then indeed
initial disposition.

CHAPTER 7. REPRESENTATION AND ATTORNEY

Article 128. Representation

1. A transaction can be made through a representative. The entitlement to represent is arising from the law or arises
on the base of the power of attorney.
2. This rule does not apply if, due to the nature of the transaction, it must be made directly by the person himself or when
the law prohibits the conclusion of a transaction through a representative.

Article 129. Actions of the representative

1. Under a transaction made by a representative within the limits of his authority and on behalf of the person he represents, the rights and obligations
occur only in the person represented.
2. If the transaction is made on behalf of another person, then the absence of the right of representation cannot be used by the other
party to the transaction, if the represented created circumstances in which the other party in good faith assumed that
such powers.
3. If, when making a transaction, the representative does not indicate his representative powers, then the transaction creates consequences
directly for the person represented only if the other party should have assumed representation. Also
the rule also applies when the other party does not care with whom it makes a deal.

Article 130. Limited legal capacity of a representative

A transaction made by a representative is also valid if the representative is of limited legal capacity.

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Article 131. Defects of will, knowledge, duty of knowledge

1. If the legal consequences of the expression of will can be influenced by vices of will, knowledge or the obligation to know certain
circumstances, then the personality is not taken into account, but the representative.
2. If a representative authorized by a power of attorney acted in accordance with certain instructions of the principal, then
the latter has no right to refer to the ignorance of the representative of such circumstances that are well known to the principal.

Article 132. Representative powers

1. The issuance of a power of attorney is carried out by means of an expression of will addressed to the authorized person or to a third party in relation to
which the representation should take place.
2. For the expression of will, it is not required to comply with the form established for the transaction, for the conclusion of which the
power of attorney. This rule does not apply if a custom form is set.

Article 133. Change or cancellation of power of attorney

A change or cancellation of a power of attorney must be notified to third parties by an appropriate means. Failure to do so
the requirements for changing and canceling a power of attorney cannot be used against third parties, except for cases when
the conclusion of the contract, the parties knew or should have known about it.

Article 134. Grounds for termination of a power of attorney

The power of attorney is terminated:
a) refusal of the trustee;
b) cancellation of the power of attorney by the person who issued it;
c) the death of the person who issued the power of attorney, or the onset of his incapacity, unless otherwise established;
d) execution;
e) expiration of the term for which the power of attorney was issued.

Article 135. Return of power of attorney

After the termination of the power of attorney, the authorized person is obliged to return it to the principal; it has no right to withhold
power of attorney.

Article 136. Conclusion of a transaction without representative powers

1. If a person enters into a contract on behalf of another person in the absence of the authority to represent, then the validity of this
contract depends on the approval of the contract by the latter.
2. If the other party asks the represented person to declare approval, the statement of approval may be
addressed only directly to this side. Approval can only be claimed up to two weeks after
receipt of the request, if approval is not received, then it is considered that it was refused.

Article 137. Right to withdraw from the contract

Until approval is obtained, the other party has the right to withdraw from the contract, unless, at the conclusion of the contract, it was
aware of the lack of authority. A statement of withdrawal from the contract may also be addressed to the representative.

Article 138. Responsibility of a representative in the absence of powers to represent

1. A person who has entered into an agreement as a representative without the authority to represent is obliged at the choice of the other party
or to fulfill the contract, or to compensate for losses in the event that the person represented refuses to approve the contract.
2. If the representative did not know about the lack of authority, he is obliged to reimburse only those losses that arose from the other party
due to the fact that she believed in the authority.
3. A representative is released from liability if the other party knew or should have known about the lack of authority.
The representative is not responsible even when his legal capacity has been limited, except for cases when he
acted with the consent of his legal representative.

Article 139. Inadmissibility of making a deal with oneself

A representative is not entitled, if he is not expressly allowed to do so, to conclude transactions on behalf of the person he represents with him personally or on his own
name, nor as a representative of a third party, except in cases where the transaction is limited solely to the execution
obligations.

SECTION 4. TIME

CHAPTER 1. CALCULATION OF TERMS

Article 140. Application of the rules for calculating time limits

The rules provided for in this section shall apply to the terms specified in laws, court decisions and transactions.

Article 141. Commencement of the running of the term

1. If the beginning of the course of the period is determined by any event or moment in time that occurs during the day, then the day on
which falls on an event or moment is not included in the time limit.
2. If the beginning of the course of the term is determined by the beginning of a day, then this day shall be included in the term. This rule also applies to
birthday when calculating age.

Article 142. Expiration of the term

1. The term, calculated in days, expires with the end of the last day of the term.
2. A period calculated in weeks, months or a time spanning several months - a year, half a year, a quarter, expires in
the case specified in paragraph 1 of Article 141 of this Code, with the end of the day of the last week or last month, which
by its name or by its number corresponds to the day on which the event or moment of time falls, and in the case,
specified in paragraph 2 of Article 141 of this Code - with the end of that day of the last week or last month,
preceding the day, which by its name or its number corresponds to the start day of the period.
3. If the term is calculated in months and in the last month there is no date from which the term began, then the term expires with the end
last day of this month.

Article 143. Half-year, quarter, half-month

1. A half-year means a period of six months, a quarter - a period of three months, a crescent - a period of fifteen days.
2. If the period consists of one or more full months and half a month, then these fifteen days are counted at the end
term.

Article 144. Extension of the term

In the event of a postponement, the new term is calculated from the moment of the expiration of the previous term.

Article 145. Calculation of monthly and annual terms

1. If the period is calculated in months or years in such a way that its continuous flow is not required, then the month is considered thirty
days, and the year is three hundred and sixty-five days.
2. The beginning of the month means the first day of the month, the middle of the month - the fifteenth day of the month, and the end of the month last day of the month.

Article 146. Days off and holidays

If the expression of will or the performance of an obligation must be made on a certain day or within a certain period, and
this day or the last day of this period falls either on weekends or on the day that is at the place of expression of will or
the fulfillment of the obligation is recognized as a public holiday or other non-working day, then instead of this day, the day of expiration
the next working day is considered.

CHAPTER 2. PRIVACY PERIODS

Article 147. Concept of limitation of actions

1. The right to demand from another person to perform any action or to refrain from performing it is limited by the period
prescription.
2. The limitation period does not apply to:
a) personal non-property rights, unless otherwise provided by law;
b) claims for compensation for harm caused to the life or health of a person. However, claims made after three years from
the moment the right to compensation for such harm arises, are satisfied for the past time not more than three years,
preceding the filing of a claim;
c) requirements of depositors regarding deposits made to banks and other credit institutions.
3. The general limitation period is ten years.

Article 148. Limitation period for contractual claims

1. The limitation period for contractual claims is three years, and for contractual claims related to immovable things six years.
2. The limitation period for claims arising from obligations subject to periodic performance is three years.
3. In some cases, the law may provide for other limitation periods.

Article 149. Commencement of the course of the limitation period

1. The course of the limitation period begins from the moment the claim arises.
2. If the demand consists in the need to refrain from any action, then the course of the limitation period begins with
the moment the specified action was performed.

Article 150. Appearance of a claim

If the occurrence of the claim depends on the actions of the creditor, then the course of the limitation period begins from the moment when
the lender could have taken this action.

Article 151. Suspension of the course of the limitation period on legal grounds

1. The course of the limitation period is suspended for the period of the deferral of the fulfillment of the obligation (moratorium).
2. The procedure specified in paragraph 1 of this article shall not apply in relation to a counterclaim, the right of presentation of which
belongs to the lender.

Article 152. Suspension of the course of the limitation period on the basis of actual circumstances

1. The course of the limitation period is suspended for the time during which the eligible person was deprived of the opportunity to defend his
the right through the courts due to the suspension of the activities of the judiciary, which took place in the last six months of the term
limitation period.
2. The same rule applies if the obstacle was the action of a force majeure.
3. From the date of termination of the circumstance that served as the basis for the suspension of the limitation period, the course of its term continues.
The remaining part of the term is extended to six months, and if the limitation period is less than six months, to the limitation period.

Article 153. Suspension of the course of the limitation period for family reasons

The course of the limitation period for the claims of spouses to each other is suspended for the entire time between them there is
marriage. This rule also applies to the mutual claims of parents and children - for the period of minority of children, and for
mutual requirements of the guardian (curator) and the ward - for the entire duration of the guardianship (guardianship).

Article 154. Effect of suspension

The period of time when the course of the limitation period is suspended does not count towards the limitation period.

Article 155. Suspension of the course of the limitation period in respect of persons with limited legal capacity

1. If an incapacitated person or a person with limited legal capacity does not have a legal representative, then during the term of the claim
prescription, in relation to this person ends only six months after the moment when this person will
recognized as legally capable or a legal representative will be appointed to him. If the limitation period is less than six months, then instead of
six months, the statutory limitation period applies.
2. The rules specified in paragraph 1 of this article shall not apply if a person with limited legal capacity has a civil
procedural capacity.

Article 156. Interruption of the course of the limitation period by recognition of debt

The course of the limitation period is interrupted if the debtor recognizes the claims of the eligible person by paying part of the debt or
interest, provision of security or otherwise.

Article 157. Interruption of the course of the limitation period by filing a claim with a court

The course of the limitation period is interrupted if the entitled person brings a claim for satisfaction or confirmation of the claim,
or in some other way will try to satisfy his demand, such as by filing a statement about the existence of a demand in
a state body, to a court - to issue an order to enforce a decision of another court or to implement
executive action. Articles 158 and 159 of this Code apply accordingly.

Article 158. Duration and termination of the interruption of the limitation period upon filing a claim

1. The interruption in the course of the limitation period by filing a claim shall be terminated from the moment the decision enters into law.
force or due to the settlement of relations between the parties in any other way.
2. If the process is suspended due to the agreement of the parties or because the court case is not pending, then the interruption of the limitation period
ends from the moment of the last procedural action of the parties or the court. The new statute of limitations, which began after the break,
is interrupted in the same way as in the filing of a claim, when one of the parties resumes the process.

Article 159. Interruption of the limitation period in case of withdrawal from the claim

1. A break in the course of the limitation period does not take place if the claim is withdrawn or the claim is denied without
consideration of the case on the merits by a court decision that entered into legal force.
2. If the authorized person submits a claim again within six months, the limitation period shall be deemed to be interrupted first.
claim. With respect to this period, the rules of Articles 154-156 of this Code shall apply accordingly.

Article 160. Consequences of interruption in the course of the limitation period

If the course of the limitation period is interrupted, then the time elapsed before the interruption is not taken into account; new statute of limitations
begins only at the end of the break.

Article 161. Period of limitation of actions on a legally enforceable claim

1. A claim confirmed by a court decision that has entered into legal force shall be extinguished ten years ago, even if for such
a shorter limitation period is established for the type of claims.
2. If a recognized requirement ensures the performance in the future of periodically repeated actions, then more than
short limitation period for claims of this kind.

Article 162. Period of limitation in case of legal succession

If the thing in respect of which there is a real claim is transferred by succession into the possession of a third party, then part
the limitation period that expired when the thing was owned by the predecessor is set off in favor of the assignee.

Article 163. Consequences of the expiration of the limitation period

1. After the expiry of the limitation period, the obliged person has the right to refuse to perform.
2. A claim fulfilled with an expired statute of limitations cannot be reclaimed, at least at the time
the obligated person did not know about the expiration of the limitation period. The same rule applies to the recognition of contractual obligations.
and to the provision of security by the obligated person.

Article 164. Limitation period for additional obligations

With the expiration of the limitation period for the main claim, the limitation period expires and for the additional
obligations, even if a special limitation period has not expired for them.

Article 165. Invalidity of an Agreement on Changing the Limitation Periods

The limitation periods and the procedure for calculating them cannot be changed by agreement of the parties.

PART 2.
PROPERTY (PROPERTY) LAW

SECTION 1. PROPERTY

Article 166. Concept

Property is any object and intangible benefit that can be owned, used and disposed of by physical and
legal entities and the acquisition of which is possible without restrictions, if it is not prohibited by law or does not contradict the norms
morality.
The types of property, the presence of which in circulation is not allowed or is limited, must be directly indicated in the law.

Article 167. Immovable and movable things

1. A thing can be immovable and movable.
2. Immovable things (real estate, real estate) include land plots, subsoil plots, isolated water
objects and everything that is firmly connected with the land, that is, objects, the movement of which without proportionate damage to their purpose
impossible, including forests, perennial plantings, buildings, structures.
3. Items not related to real estate, including money and securities, are recognized as movable property.

Article 168. Indivisible things

A thing is recognized as indivisible, as a result of the division of which its parts lose the properties and purpose of the original thing.

Article 169. Complicated things

If dissimilar things form a single whole, allowing it to be used for a common purpose determined by the being
connections, they are seen as one thing (a tricky thing).
The effect of a transaction concluded regarding a complex thing applies to all its constituent parts, unless the contract stipulates
other.

Article 170. Main thing and accessory

A thing intended to serve another (main) thing and related to it by a general purpose (belonging) should
the fate of the main thing, unless otherwise provided by the contract.

Article 171. Individually defined things and things determined by generic characteristics

1. An individual-definite thing is recognized as being isolated from other things according to its inherent characteristics. Individualcertain things are irreplaceable.
2. Things determined by generic characteristics (generic thing) are things that have characteristics inherent in all things.
of the same kind, and determined by number, weight, measure. Generic things are interchangeable.

Article 172. Fruit

1. The fruit of a thing is the income, gains and benefits that the thing gives.
2. The fruit of the right is the income and benefits obtained as a result of the exercise of this right.
3. The fruit of a thing and right is also income and benefits that this thing or right provides through
legal relations.
4. Eligibility for a thing or right makes it possible to obtain the fruits of this thing or this right in accordance with the period and scope
of this authority.
5. If a person is obliged to return the fruits, he may demand reimbursement of expenses incurred in connection with these fruits, if these
the costs are the result of correct economic activity and do not exceed the value of the fruit.

Article 173. Accessory and limited rights

1. Accessory law is a law that is so connected with another law that it cannot exist without it.
2. A limited right is a right derived from the broader right that is encumbered by this limited right.

Article 174. Protected results of intellectual activity

In the cases and in the manner established by this Code and other laws, the exclusive right (intellectual
property) of an individual or legal entity for the results of intellectual activity and equated funds
individualization of a legal entity, individualization of products, work or services performed (company name,
trademark, service mark, etc.).
The use of the results of intellectual activity and means of individualization, which are the object of exclusive
rights, can be carried out by third parties only with the consent of the copyright holder.

Article 175. Intangible benefits

1. Intangible benefits are requirements and rights that can be transferred to other persons or are intended to
to provide a benefit to their owner or to give their owner the right to demand something from others.
2. Life and health, personal dignity, personal integrity, honor and good name, business reputation, inviolability
privacy, personal and family secrets, the right to free movement, choice of place of stay and residence, the right to a name, the right
authorship, other personal non-property rights and other intangible benefits belonging to an individual from birth or in
force of law, inalienable and otherwise untransferable. In cases and in the manner prescribed by law, personal
non-property rights and other non-material benefits that belonged to the deceased can be exercised and protected by others
persons, including the heirs of the copyright holder.

SECTION 2. OWNERSHIP

Article 176. Acquisition of ownership

1. Possession is acquired by achieving actual dominion over the thing.
2. The owner is not considered to be a person who, although it exercises actual possession of the thing, is in favor of another person, and the authority
owner they received from that person. Only the person who has granted the authority is recognized as the owner.
3. If a person owns a thing as a usufructuary, pledgee, tenant, tenant, custodian or otherwise
similar legal relationship (direct ownership), by virtue of which it has the right or is obliged in relation to another person to temporarily own
certain thing, the latter is also the owner (indirect ownership).
4. If several persons jointly own one thing, they are considered co-owners.
5. If parts of one thing are owned by several persons, they are considered the owners of separate parts.

Article 177. Termination of possession

1. Possession ceases if the owner permanently cedes the thing or otherwise loses actual dominion over the thing.
2. A temporary obstacle to the exercise of power over a thing does not terminate possession.

Article 178. Inheritance

Ownership is inherited.

Article 179. Presumption of ownership

1. With regard to the owner of a movable thing, it should be considered that he is the owner of the thing. This rule does not apply to
the previous owner of the thing, if he lost this thing or it was stolen from him, or it was otherwise withdrawn from his possession, except for those
cases when it comes to money and bearer securities.
2. With regard to the previous owner, it should be considered that he was the owner of the thing during the time he owned it.

Article 180. Bona fide owner

A bona fide owner is the owner who lawfully owns the thing or who, on the basis of an inspection carried out with
due diligence in a business relationship may be determined by an eligible person.

Article 181. Demand of a bona fide owner to return a thing from illegal possession

If the bona fide owner is deprived of possession, he may, within three years, demand the return of the thing from the new owner. it
the rule does not apply when the new owner has preemptive ownership. The claim for the return of ownership may be
applied to a person who has a preemptive right if he acquired a thing by violence or deception.

Article 182. Demand of a bona fide owner to remove unlawful obstruction

If the bona fide owner has not been deprived of the thing, but is otherwise prevented from exercising possession, he, as the owner
may require the removal of obstacles. He may also demand compensation for damage caused by an encroachment on
possession. This rule on compensation for damage is also applied in the case when it is impossible to demand the removal of obstacles.

Article 183. Legal possession

1. A claim for the return of the thing cannot be presented to the rightful owner. During lawful possession, the fruits of the thing and
rights are considered his property.
2. This rule also applies to relations of direct and indirect ownership.

Article 184. Obligations of the bona fide owner

1. A bona fide owner who does not have the right to own a thing or has lost such a right is obliged to return the thing to the authorized
face. As long as the entitled person does not exercise this right, the fruits of the thing and the rights belong to the owner.
2. The bona fide owner may demand from the eligible person compensation made during the bona fide possession period.
a thing of improvements and expenses, as well as amounts spent that are not compensated by the use of this thing and received
fruits. The value of the fruit not received through his fault shall be deducted. The same rule applies to improvements that
entailed a rise in the price of the thing, if the rise in price still existed at the time of the return of the thing.
3. The bona fide owner may refuse to return the thing until his claims are satisfied.

Article 185. Obligations of the dishonest owner

The dishonest owner must return to the entitled person both the thing and the received benefit, the fruits of the thing or right.
The owner is obliged to compensate for the fruits that he did not receive through his own fault. Reimbursement of costs and improvements incurred on the item
may demand only if they, by the time of return, entail the enrichment of the eligible person. Other requirements in
the attitude of the unscrupulous person remains unchanged.

Article 186. Acquisition of the right of ownership of movable things due to the limitation period

1. If a person has continuously owned a movable as his own for five years, then he acquires the right of ownership to it.
(acquisitive prescription).
2. Acquisition of the right of ownership of a movable thing is inadmissible if the acquirer owned the thing in bad faith or
later found out that the thing did not belong to him.

Article 187. Continuous possession of a thing

If a person owned a thing at the beginning and end of any period of time, then it should be considered that this person owned the thing as
owner during the entire specified period.

Article 188. Acquisition of title to immovable property due to limitation period

If a person is entered in the public register as the owner of a land plot or other immovable property in such a way that he does not
acquired ownership of them, it acquires ownership if the registration has existed for fifteen
years and it all this time owned them as an owner.

Article 189. Termination of possession of a thing due to claims of the owner

Possession of the thing is terminated if the owner makes reasonable claims to the owner.

Article 190. Preemptive right to acquire a thing

The owner who, on legal grounds, for more than ten years owned and used the thing, has a preemptive right
acquiring this thing.

SECTION 3. PROPERTY

CHAPTER 1. CONTENT OF OWNERSHIP

Article 191. Concept. Content of ownership

1. The owner may, within the limits of the restrictions established by law or contract, freely own and use the property
(thing), prevent other persons from owning this property, dispose of it, if this does not violate the rights of neighbors or
other third parties, or if this action does not constitute an abuse of the right.
2. Abuse of the right is considered to be such use of property, which only causes harm to others, and at the same time clearly
the advantage of the owner's interests has not been determined and the need for his actions is not justified.
3. The right to use also includes the possibility of a person not to use his thing. The law may establish
the obligation to use or care and maintain, if the failure to use these things or lack of care for them encroaches on
public interest. In this case, the owner may be obliged to fulfill these obligations himself or
transfer this thing for the use of other persons for an appropriate remuneration.

Article 192. Ownership of an essential component of a thing

The right of ownership to a thing also extends to the essential constituent parts of this thing.

Article 193. Claiming a thing from illegal possession and demanding the removal of obstacles

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1. The owner may demand from the owner to return the thing, unless the owner had the right to own this thing.
2. If the right of ownership is violated in any other way, except for the confiscation or deprivation of the thing, the owner may demand from
the offender to eliminate the violation. If the encroachment continues again, the owner may demand the termination of such
actions by filing a claim in court.

Article 194. Common property

1. Common property arises by virtue of law or on the basis of a transaction. Each of the owners can make requirements for
to third parties regarding the property in common ownership. Each owner has the right to claim the thing only in
the benefit of all co-owners.
2. A thing in common ownership may be pledged or otherwise legally encumbered in favor and in
interests of one of the co-owners.
3. Expenses for the care and maintenance of a thing in common ownership shall be equally borne by the co-owners, if by law
or the contract does not provide otherwise.
4. Each co-owner has the right of pre-emptive purchase of a share in common ownership.

CHAPTER 2. NEIGHBORHOOD LAW

Article 195. Concept. Obligation to Mutual Respect

Owners of neighboring land plots or other immovable property, except for the rights and obligations provided for by law,
must mutually respect each other. Any land plot or other immovable property from which may originate is recognized as neighboring.
bilateral influences.

Article 196. Permissible neighborly influence

1. The owner of a plot or other real estate cannot prohibit the impact from a neighboring plot on his plot of gas,
steam, smell, soot, smoke, noise, heat, vibration or similar effects, if they do not interfere with the owner in using his
site or slightly violate its right.
2. The same rule applies in cases where the impact is significant, but it is caused by the usual use of another site and is not
can be prevented by such measures that for this type of users are recognized as normal economic activity.
If the owner is obliged to endure such an impact, he can demand from the owner of the site that makes the impact,
appropriate compensation in cash when impacts exceed those recognized for the area as normal
use and economically acceptable limits.

Article 197. Inadmissible encroachment

The owner may request the prohibition of the construction or operation of such structures in relation to which it is initially clear that
that they unacceptably encroach on his site. If the structure was erected in compliance with the distance from the border established by law,
its demolition can only be required if the unacceptable encroachment is already present.

Article 198. Demand to eliminate the threat

If a building threatens to collapse on a land plot from a neighboring plot, the owner may require the neighbor to implement
necessary measures to prevent this threat. It is unacceptable to change the direction of waste and groundwater,
flowing on several plots of land or such manipulation that will entail a decrease in the amount of water and
deterioration of its quality on other land plots. Violation of the natural course of rivers is unacceptable.

Article 199. Fruits fallen from trees

Fruits that have fallen from a tree or bush onto an adjacent plot of land are considered fruit from that plot. This rule is not
applies if the adjacent land plot is in public use.

Article 200. Roots and branches from a neighboring plot

The owner of a land plot can cut and keep the roots of a tree or bush that have penetrated to it from a neighboring land plot.
plot. The same rule applies to overhanging branches of trees and bushes from a neighboring land plot.

Article 201. Violation of the boundaries of a land plot during construction

1. If the owner of the land plot during construction, without intent or gross negligence on his part, built up a part of the neighboring
land, then the neighbor must allow such a violation of the borders, except for those cases when he declared his
objection before or immediately after such a boundary violation.
2. In this case, monetary compensation must be paid to the neighbor as compensation. The specified payment must be made
annually in advance for a year in advance.

Article 202. Passage through someone else's possession

1. If the land plot is deprived of communication with any public road, electricity, gas and water supply networks, then
the owner can demand from the neighbors that the latter allow the use of their land plots to establish
required message. The neighbor, through whose section the necessary message will pass, must be paid a monetary compensation,
which, by agreement between the parties, can be made in the form of a one-time payment.
2. The obligation to allow passage through the possession does not arise if the already existing communication with the land plot has been eliminated
arbitrary actions of the owner.

Article 203. Construction of the border line

1. The owner of a plot may require the owner of a neighboring plot to take part in the construction of a solid demarcation
boundary or in the restoration of an already existing, but worn out or damaged boundary.
2. The costs of demarcation are distributed equally between neighbors, if from the existing legal relations between them does not follow
other.

Article 204. Contested Border

1. If, due to controversy, it is impossible to determine the true border, then the determining factor for delimitation is the actual
ownership of neighbors. If actual ownership cannot be established, then each land plot must be attached
equal part of the disputed area.
2. If the determination of the boundary in accordance with these prescriptions will lead to a result that is contrary to the established
facts, in particular, does not correspond to the established size of the land plot, then at the request of one of the parties, the border is determined
court.

Article 205. Joint use of border facilities

1. If two land plots are separated by a fence or another structure used as a border, then it should be considered that
owners of land plots have the right to share facilities, unless there are any external signs
indicate that this building belongs to one of the neighbors.
2. If neighbors have the right to share the border facility, each of them may use the facility
so that it does not interfere with a neighbor in sharing. The costs of the care and maintenance of the structure are apportioned between
equal neighbors. Until one of the neighbors is interested in the existence of this structure, it cannot be
removed or changed without his consent.

CHAPTER 3. ACQUISITION AND TERMINATION
PROPERTY RIGHTS

§ 1. Acquisition and termination of rights
ownership of immovable property

Article 206. Procedure for Acquisition of the Right of Ownership to Immovable Things

1. To acquire an immovable, a notarized document and registration of the acquirer with
public register. An application for registration can be submitted by both the transferor and the acquirer.
2. The document must clearly indicate the basis for the acquisition of the immovable. If one of the parties participates through
representative, then the document must also clearly indicate the power of attorney.

one
Section 206. Acquisition
of the right of ownership to an immovable ownerless thing

1. An ownerless thing is an immovable thing that does not have an owner, or the owner of which is unknown.
2. An ownerless immovable thing at the request of the local executive authority, on the territory of which it is located,
is taken into account by the state body that registers the right to real estate.
Upon the expiration of one year from the date of registration of the ownerless immovable property, the local executive authority authorized
manage the property on the territory of which it is located, may apply to the court with an application for the recognition of this immovable
property ownerless and transferring it to state ownership.
one
The Code was supplemented by Article
206 by the Law of Turkmenistan dated September 25, 2010 - Bulletin of the Mejlis of Turkmenistan 2010, No. 3,

Article 63.
(As amended by the Law of Turkmenistan dated March 2, 2019 - Bulletin of the Mejlis of Turkmenistan, 2019, No. 1, art .___).

Article 207. Waiver of ownership

To relinquish ownership or other right, a statement by the authorized person is required that he waives this.
rights, and registration of this statement in the public register. The application must be submitted to the registry service. After that, the statement about
waiver is binding.

Article 208. Protection of the interests of the acquirer

Based on the interests of the acquirer, the alienator is considered the owner if he is registered as such in a public
registry, unless the acquirer knew that the transferor was not the owner.

§2. ACQUISITION AND TERMINATION OF THE RIGHT
MOBILE PROPERTY

Article 209. Transfer of ownership

1. For the transfer of ownership of a movable, it is necessary that the owner, on the basis of a valid right, transfer
thing to the acquirer pursuant to the transfer agreement concluded between them. If the purchaser already owns the thing, then
one agreement on the transfer of ownership is enough.
2. If the owner owns the thing, then the actual transfer of the thing may be replaced by an agreement between the owner and the acquirer on
the establishment of indirect ownership of the thing by the acquirer.
3. The transfer of ownership is also considered to be the granting by the owner to the acquirer of the right to claim ownership from third parties.

Article 210. Acquisition in good faith from an unauthorized person

As a result of alienation, the acquirer becomes the owner, even if the thing did not belong to the alienator, but in relation to this
of fact, the acquirer is in good faith. The acquirer is not considered bona fide if he knew or should have known that the thing was not
belongs to the alienator. The fact of good faith must exist before the transfer of the thing.

Article 211. Lost things

1. The right of ownership cannot be acquired if the thing was stolen from the owner, lost or otherwise lost by him.
The same applies if the owner was only an indirect owner of the thing, and also if the thing was lost by the owner.
2. These regulations do not apply to money or bearer securities, as well as to things
alienated by public auction.

Article 212. Reservation clause

If the seller of the movable thing has agreed to retain ownership of the thing until the purchase price is paid, then it follows
to consider that title is transferred under the suspensive condition of payment of the purchase price in full and that the seller is entitled to
terminate the contract if the buyer is late.

Article 213. Acquisition of the right of ownership to movable ownerless thing

1. A movable thing shall be considered ownerless if the former owner, with the aim of giving up ownership, ceases to own the thing.
2. A person who has taken possession of an ownerless movable thing acquires the right of ownership to this thing, if the appropriation of the thing does not
is prohibited by law or the appropriation does not violate the rights of the person who had the right to receive this thing.

Article 214. Find

1. The person who found the lost thing is obliged to immediately notify the lost or the owner, or another person who has
the right to receive a thing.
2. If the person who found the thing does not know any of those persons who have the right to receive the thing, or he does not know their place
stay, then it is obliged to immediately notify the police or other local authority about its find and about the circumstances that
could be essential for the identification of the person entitled to receive the thing.
3. The person who has found the thing is obliged to keep it. After one year from the date of notification of the relevant authority about the find
the person who finds the thing acquires the right of ownership to it, except for cases when, before the expiration of the specified period, he becomes
the person who has the right to receive the thing is known, or the latter will declare his right to the relevant authority. With the acquisition
property rights terminate all other rights to that thing.
4. The person who has found the thing may demand from the person entitled to receive the thing a remuneration in the amount of up to five percent.
the cost of the thing found. In addition, the person who found the thing has the right to demand from the person who has the right to receive the thing, or
the relevant body for reimbursement of expenses for the maintenance of this thing.
5. If the person who has found the thing refuses the right of ownership, then the relevant authority may, after one year, sell
a thing from a public auction and get a profit or, if it is a thing of little value, to alienate it free of charge, or
destroy her.
6. A perishable thing or thing, the storage of which requires disproportionate costs, must be sold at a public auction.
the person who found the thing. The money received from the sale of a thing replaces the thing itself.

Article 215. Treasure

If a thing that has remained hidden for so long that it has become impossible to establish its owner (treasure), there will be
is found and the person who discovered it will take possession of the thing, then the ownership of this thing is acquired in equal shares
the person who found the thing, and the owner of the property in which the treasure was hidden.

Article 216. Connection with a land plot

If the movable thing is connected to the land in such a way that it becomes an essential part of this
land plot, then the ownership of the land plot extends to this thing.

Section 217. Joining with movable thing

1. If movable things are interconnected in such a way that they become essential components of a single
things, then the former owners become co-owners; their shares are determined on the basis of the ratio of the value that
had things at the time of their connection.
2. If one of the things is considered as the main thing, then its owner acquires the right of ownership and
affiliation.

Article 218. Ownership of the results of processing materials

If a new movable thing is made by processing or alteration of the material, then the manufacturer and owner of the material
become co-owners of a new thing. The shares are determined in proportion to the cost of the material and production costs,
unless otherwise provided by agreement.

Article 219. Termination of rights upon transfer of ownership

Upon the transfer of ownership in accordance with Articles 216 - 218 of this Code, all other existing on
this thing is right.

Article 220. Compensation for damage due to loss of rights

1. A person who has lost his right in the cases provided for in Articles 216-218 of this Code, as well as in case of violation of his rights
otherwise, may demand monetary compensation from the person in whose favor the change of law occurred. Not allowed
presentation of a demand for the restoration of the previous state.
2. The rule provided for in paragraph 1 of this article does not apply if the new owner acquired the thing for compensation
a contract with a third party.

CHAPTER 4. RIGHT OF OWNERSHIP TO RESIDENTIAL PREMISES

§ 1. General Provisions

Article 221. Concept

1. In apartment buildings, the right of ownership of the apartment (the right of ownership of the dwelling) and that part is recognized
a building that is not used as a living space (ownership of a non-residential area).
2. The right of ownership of residential premises and the right of ownership of non-residential areas shall be recognized as the right of an individual
property.
3. A land plot, part of a building, structures and installations that do not constitute individual property are
common property of the owners of the dwelling. The sizes of shares in common property are determined in accordance with
the number of apartments (residential premises).
4. The right of individual ownership can only exist for an isolated residential building or other isolated
parts of the building. Garage plots are considered to be isolated if their boundaries are clearly delineated as a result of use during
long time designation.

Article 222. Preemptive right to purchase residential premises

1. Tenants of a dwelling who have lived in it for more than three years have the preferential right to purchase it. FROM
they apply to the last owner with a statement on the exercise of this right.
2. If a person acquires a rented dwelling, in which the acquirer does not live for rent, then he takes a place
landlord

Article 223. Grounds for acquiring the right of individual ownership of a dwelling

1. To acquire the right of individual ownership of a residential premises and to terminate it, a transaction and its registration are required
in the public registry.
2. The transaction is subject to notarization.

Article 224. Subject of the right of individual property

1. The subject of individual property rights is the area determined in accordance with paragraph 2 of Article 221 of this
Of the Code, as well as the constituent parts of this area, which can be altered, separated or added in such a way that
as a result, the common property or the rights of the owner of any other living quarters were not unjustifiably violated,
based on the right of individual ownership, or the appearance of the building would not change.
2. Parts of the building that ensure its strength and safety, as well as those in the common use of the owners of the structure and
devices cannot be the subject of individual property rights even if they are located on a
individual property area.
3. By agreement between the owners of residential premises, those parts of the building that
are subject to individual property rights.

Article 225. Determination of the share in common property

1. The share of the owner of residential premises in common ownership is determined by the ratio of the area in his
individual property, with the entire area being individually owned. It is assumed that the area
utility rooms and buildings (basements and others) make up one third of the total area.
2. In the event of liquidation of the partnership of owners, the share of owners of residential premises is determined in accordance with paragraph 1
of this article.

Article 226. Inadmissibility of alienation of individual property without taking into account the corresponding share in common property

1. Alienation, pledge or encumbrance in any other way of individual property is not allowed without taking into account the corresponding share in
common property.
2. The rights to a share in common property shall also apply to the individual property assigned to it.

Article 227. Registration in the public register of the ownership of the living space

1. A separate page in the public register is filled in for each ownership right to a dwelling.
2. In the land register, the construction material must be attached to the materials of registration of the ownership of the residential premises.
a certificate certified by the building department, which reflects the design of the building, as well as the location and dimensions of parts of the building,
in common ownership. Separate areas assigned to the same apartment are marked with a common number.

§2. RELATIONSHIPS OF OWNERS OF RESIDENTIAL PREMISES

Article 228. Registration of agreements in the public register

1. The relationship between the owners of residential premises is determined by this Code.
2. Agreements that regulate the relationship between the owners of residential premises differently from the norms of this Code,
as well as modification or termination of such agreements are effective for third parties only when these agreements
registered in the public register.
3. Decisions for which a majority of votes are required in accordance with this Code or by agreement of the parties,
are valid after their adoption and for those owners of residential premises who did not participate in the voting or
voted against this decision.

Article 229. Association of owners of residential premises

1. The totality of individual owners constitutes an association of owners of residential premises, which is not
a legal entity.
2. The owner does not have the right to demand the abolition of the partnership of owners of residential premises. Such a requirement is permissible only
when the building is completely or partially collapsed.

Article 230. Rights of the owner of the living quarters

1. The owner of a residential premises may, at his discretion, use parts of the building in his ownership and
exclude any influence of other persons on them, unless such action violates the law or the rights of third parties.
2. Each owner of a residential premises has the right, in accordance with Articles 231 and 232 of this Code, to use the general
property. For other use of common property, each owner must be allocated an appropriate share
according to the rules of Article 225 of this Code.
3. The issues specified in paragraphs 1 and 2 of this article are regulated in detail by the regulation on the partnership of owners of residential
premises, which in accordance with subparagraph "a" of paragraph 4 of Article 236 of this Code is presented by the chairman
associations of owners of residential premises and approved by the general meeting of owners.

Article 231. Obligations of the owner of residential premises

1. Every owner of a living space is obliged:
a) keep in such a state and use in this way the parts of the building that are in his individual property, so that
this did not violate the rules of cohabitation of owners and did not harm them;
b) take care that the persons employed in his enterprise, which is located in the building, or the persons to whom he transfers in
the use of a land plot or part of a building that is in its individual or common ownership, respected
duties set out in subparagraph "a";
c) allow the impact on parts of the building that are in his individual ownership, and on common property, if it is
the impact meets the conditions stipulated in subparagraphs "a" and "b";
d) allow authorized persons to enter and use parts of the building that are in individual ownership, if it is
it is necessary to bring the common property into proper condition and for maintenance; the resulting harm is subject to
reimbursement;
e) allow the measures necessary for the construction of communication and supply networks. The owner in whose favor
such measures are carried out, is obliged to compensate for the harm arisen in this case.
2. If the building is destroyed by more than half, and the damage is not provided by insurance or otherwise, then it cannot be claimed
reconstruction of the building. In this case, the partnership is liquidated.

Article 232. Right to use common property

1. Each owner of a dwelling may, in accordance with his share, use the common property.
2. Each owner of a living space, regardless of the location of his living space in the building, is obliged to others
owners to bear, in accordance with their share, the costs of common property, in particular, the maintenance of the house in a proper
condition, repair, management and sharing of common property.
3. The owner who did not vote for activities not related to the maintenance of the house in proper condition and current repairs,
is not obliged to reimburse the costs incurred as a result of such events. However, he does not have the right to claim for
use arising from these activities.
4. The share is determined in accordance with Article 225 of this Code.

Article 233. Determination of shares upon liquidation of a partnership

In the event of liquidation of the partnership, the shares of the owners of the common property are determined in accordance with the value of their residential property.
premises at the time of liquidation. If the value of the share of common property has changed as a result of activities that were not
supported by the owner of the dwelling, such changes are not taken into account when assessing the value of this share.

Article 234. Exclusion from the partnership

1. If the owner of the dwelling has so grossly violated his obligations to other owners that further
the continuation of the partnership with him became impossible, other owners may demand from him the alienation of the living space.
2. The grounds for such a requirement are evident when:
a) the owner of the dwelling, despite a written warning, grossly violates the obligations provided for in Article
231 of this Code;
b) the owner of the residential premises for more than three months delays the payment provided for in Article 232 of this
Of the Code, the amounts and arrears in total will exceed three percent of the value of his entire dwelling, although the bank could
give him a loan, the security of which would be his living quarters.
3. The decision on the requirements specified in the first part of this article shall be made by a two-thirds majority of the persons entitled to
vote.

§ 3. Management

Article 235. Management bodies in an association of owners of residential premises

The management of common property is entrusted to the owners of residential premises in accordance with Articles 236-240 of this Code and to
the chairman of the partnership of owners of residential premises in accordance with Articles 241 - 243 of this Code, and upon formation
of the advisory council, management is carried out in accordance with Article 244 of this Code.

Article 236. Management of common property

1. Management of the common property is assigned jointly to the owners of residential premises, if this Code or
otherwise is not determined by the agreement of the owners of residential premises.
2. Each owner of a residential premises is entitled, without the consent of other owners, to take the necessary measures to
prevention of harm directly threatening common property. This owner has the right to demand compensation for him
costs incurred.
3. Each owner of a dwelling may require such management that is consistent with the agreements reached and
the decisions taken, and if there are no agreements and decisions, then the common interests of the owners of residential premises.
4. The proper management in accordance with the general interests of the owners of residential premises, in particular, includes:
a) adoption of the regulations and internal regulations of the partnership of owners of residential premises;
b) the appropriate maintenance of the common property and maintenance, if necessary to ensure the suitability of the building for
residence;
c) appropriate insurance of common property;
d) fundraising for maintaining the building in a proper manner;
e) adoption of an economic plan;
f) the implementation of all measures that are necessary for the construction of communication and supply networks for the benefit of the owners
living quarters.

Article 237. Competence of owners of residential premises

Residential property owners jointly resolve the following issues:
a) drawing up economic and financial plans;
b) full or partial restoration of the building;
c) adoption of regulations and internal regulations;
d) appointment and dismissal of the chairman of the partnership;
e) hearing the reports of the chairman of the partnership;
f) determination of the amount of expenses for the maintenance of the building.

Article 238. Meeting of owners of residential premises

1. The owners of residential premises make decisions at the meetings of the owners.
2. For the decision to be valid, it is necessary that its subject has already been announced by the time the meeting is called.
3. A decision may be made without a meeting if the owners of the living quarters declare their consent to it in writing.

Article 239. Convocation of a meeting of owners of residential premises

1. The meeting of owners of residential premises is convened by the chairman of the partnership at least once a year.
2. The meeting is called by the chairman of the partnership and when it is required by more than one quarter of the owners of residential
premises. If the chairman of the partnership is absent or, in violation of his duties, evades the convocation of the meeting, then
the meeting can also be called by one of the owners of the dwelling.
3. The meeting is convened within a week after a written statement about the need to convene the meeting, if there is no urgent
necessity.
4. The meeting is chaired by the chairman, unless the meeting decides otherwise.
5. The decision taken by the meeting is reflected in the minutes, which is drawn up by the chairman of the meeting or the chairman
the audit commission. Each owner of a dwelling has the right to check the protocol.

Section 240. Competence of a meeting to make decisions

1. When making a decision, each owner has one vote. If one dwelling has several owners, then they
may only exercise their voting rights jointly.
2. The meeting is competent to make decisions if more than half of the owners of residential premises who have
voting right.
3. If, in accordance with paragraph 2 of this article, the meeting is not authorized to take decisions, the chairman may convene a new
meeting with the same order of the day. This meeting is competent to make decisions regardless of the number of people present, about which
to be announced when the meeting is called.
4. The owner of the residential premises does not have the right to vote if the decision concerns management transactions with this owner
common property or disputes with other owners or if the owner is obliged to alienate the residential
premises.
5. The decision is taken by a simple majority of votes, if this Code or the regulation on the partnership of owners
residential premises are not provided otherwise.

Article 241. Powers of the chairman of an association of owners of residential premises

1. The chairman of the association of owners of residential premises is obliged:
a) comply with the decisions of the meetings of the owners of residential premises and take care of the observance of the internal regulations;
b) take the necessary measures for the proper maintenance and current repair of the common property;
c) in cases of urgent need to take other necessary measures for the proper maintenance of common property;
d) manage the common money.
Page 6

2. The chairman has the right, on behalf of all owners of residential premises:
a) claim, receive and pay sums to cover expenses incurred, debts and mortgage interest, if it concerns
common affairs of owners of residential premises;
b) carry out settlements, fulfill obligations and other monetary transactions related to the current management of common property;
c) conclude transactions and present the necessary documentation if they concern the interests of the owners of residential premises;
d) to appear in court or other bodies, if the owners of residential premises authorize him to do so.
3. The chairman is obliged to keep the money of the owners of residential premises separately from his property. Disposal of this money
may be subject to the consent of one of the owners of residential premises or a third party.
4. The chairman, if necessary, acts on the basis of a power of attorney issued by the owners of residential premises, in which
the scope of his representative powers is determined.

Article 242. Business plan

1. The chairman must prepare a business plan before the beginning of each year.
2. The business plan must contain:
a) estimated income and expenses for the management of common property;
b) the obligation of the owners of residential premises for expenses in accordance with their shares;
c) collection by the owners of residential premises of funds for the proper maintenance of the building in accordance with subparagraph "d" of paragraph 4
Article 236 of this Code.
3. Each owner of a dwelling is entitled to carry out measures for the proper
maintenance and current repair of the building. In such cases, the chairman takes this work into account, evaluates it and enters into the financial plan.
For the owner of a dwelling, contributions for expenses are reduced in accordance with the labor expended.
4. The owners of residential premises are obliged, on the basis of the chairman's request, to make a certain advance in security
approved financial plan. In case of difficulties with payments, the chairman can use the appropriate loans
bank.
5. The decision to approve the business plan gives the chairman the right to take out a loan.
6. The chairman is obliged to submit a financial report at the end of the calendar year.
7. The owners of residential premises at any time can demand from the chairman a report on the work done.

Article 243. Obligation to repair living quarters

1. Each owner of a dwelling is obliged to other owners to bear the costs of maintaining the common property,
its current repair, management and other expenses.
2. The expenses provided for in paragraph 1 of this article are made in the amount of the value of the share of each owner of the residential
premises.
3. Unless otherwise specified, expenses determined for the current year shall be paid in twelve equal installments. If not
fundraising is envisaged for the proper maintenance of the building, the chairman may require the advance payment of these amounts
before filing an application for building renovation.

Article 244. Advisory Board

1. The owners of residential premises may, by a simple majority vote, decide on the formation of an advisory council.
The advisory board consists of a chairman and two members.
2. The advisory board assists the chairman in carrying out his tasks.
3. Financial and economic plans, results of the implementation of the economic plan, reports, estimates before consideration at the meeting
residential property owners should check the advisory board and make an appropriate conclusion.
4. The advisory council is convened by the chairman as required.

CHAPTER 5. RESTRICTED USE
PROPERTY OF OTHER PERSONS

§ 1. Right of building

Article 245. Concept

1. The land plot may be transferred for the use of another person in such a way that the person in whose favor
transfer, acquired the alienable and inheritable right to have a structure on the surface or below the surface of the land
(building right).
2. The right of building may extend to the use of a part of the land plot that is not required for building, if it
provides advantages for using the structure.
3. The right to build may have a definite term or be indefinite, but may not be limited by a canceling condition.

Section 246. Applicability of real estate regulations

1. The rules for the acquisition of real estate are applied to relations related to the emergence and acquisition of building rights.
of things.
2. A building erected on the basis of a building right is the main component of a building right.

Article 247. Alienation of the right to build

If the consent of the owner is required for the alienation or lease of the building right, then he can refuse this consent only
if there are compelling reasons.

Article 248. Fee for the right to build

1. The owner of the right to build may be obligated by contract to pay for this right in the form of periodic
payments. This right of the owner of the land is inseparable from the ownership of the land.
2. The right to build may be terminated unilaterally only in connection with failure to make payments for two years. In other cases, for
termination of the building right requires the consent of the owner of the building right.
3. The parties may determine the payment for the right of development with a ten-year interval, if economic conditions do not provide for
other. This fee should be determined taking into account economic conditions.

Article 249. Registration of the right to build

The right to build is entered in the public register among the property rights of persons who are not owners, only as
priority right. This order cannot be changed.

Article 250. Termination of the right to build

The right to build does not stop with the destruction of the structure erected on the land plot.

§ 251. Compensation upon termination of building rights

1. In case of termination of the right to build up, the owner of the land plot must provide the owner of the right to build
appropriate compensation for buildings erected on the site. An amount that is not considered due compensation is
less than two-thirds of the cost of the building.
2. The owner of the land plot may, in exchange for the payment of compensation, extend the owner of the building right this right to
the estimated life of the structure. If the owner of the building right refuses such an extension, he also loses the right
claims for compensation.
3. The owner of the building right is not entitled to transfer the building or its component parts upon termination of the building right.

Article 252. Registration of the right to demand compensation

1. The right to claim compensation arising upon the termination of the building right replaces the place of the building right in the public register and
replaces it in the same order.
2. If the right to build up by the time of the end of its term is still encumbered with a mortgage, then the mortgagee has the right of pledge on the claim
reimbursement.

Article 253. Succession upon termination of the right to build

Upon termination of the development right, the owner of the land plot becomes a party to the lease or lease agreement concluded
a person with the right to build.

§ 2. Usufruct

Article 254. Concept

A thing or right may be transferred for use to another person in such a way that the person in whose favor the transfer was made
will be entitled as the owner to use this thing or right and not allow use by third parties, however, unlike
owner, he does not have the right to pledge, alienate or inherit this thing (usufruct). For collateral or deposit in
lease of this thing or this right requires the consent of the owner. After the abolition of the usufruct, the owner becomes a participant
existing employment or lease relationship.

Article 255. Legal regulation of the establishment of usufruct

Usufruct can be installed both over movable and immovable things, and over intangible goods. When establishing
usufruct, the same rules apply as for the acquisition of movable and immovable things, as well as intangible goods.

Article 256. Types of usufruct

1. Usufruct can be paid or free.
2. The usufructuary can exist temporarily or throughout the life of the person who took it (usufructuary). Usufruct
terminated by the death of an individual or liquidation of a legal entity in whose favor the usufruct was established.

Article 257. Determination of the state of a thing

1. The usufructuary and the owner, prior to the transfer of the thing, can determine the state of the things transferred under the usufructuary.
2. When establishing a usufruct on a set of things, the usufructuary and the owners are obliged to provide each other with assistance in
drawing up an inventory of things. The inventory must be marked with a note on the day it was drawn up and signed by both parties; each side
may require formal verification of the signature. The costs are paid by the party who requests the inventory or
signature certificates.

Article 258. Rights and obligations of the usufructuary

1. The usufructuary has the right to own the thing.
2. When exercising his right, the usufructuary is obliged to preserve the previous economic purpose of the thing and to own it in
in accordance with the rules of good housekeeping.
3. The usufructuary has no right to alter a thing or subject it to significant changes.
4. The usufructuary acquires the right of ownership and the fruits that he will extract contrary to the rules of proper housekeeping.
or extracts in excessive quantities if it has become necessary due to a special circumstance. In this case, he must
to compensate the owner for the damage caused to the thing as a result of such use.
5. The usufructuary must take care of the proper maintenance of the thing in accordance with its economic purpose. Usufructuary
is not responsible for such changes and deterioration of the item, which are the result of normal wear and tear of the item. He is obliged
improve and repair an item only to the extent necessary to maintain the item in its normal condition.
6. The usufructuary is obliged at his own expense to insure the thing for the entire period of the usufructuary, if the insurance complies with the proper conduct
farms. The insurance must be carried out in such a way that the right of claim against the insurer is
provided to the owner. If the thing is already insured, then the usufructuary must make a payment during the entire usufructuary
insurance premiums insofar as he would be liable for insurance.
7. If the thing is destroyed or damaged or the need for emergency work is revealed to improve and repair the thing, or
measures to protect it from unforeseen danger, the usufructuary is obliged to immediately notify the owner of this. Such
the obligation is imposed on the usufructuary even if a third party submits a claim for the right to a thing.
8. If the usufructuary incurs expenses in relation to the thing to which he was not obliged, then the owner's obligation to reimburse them
is determined in accordance with the prescriptions for the conduct of other people's affairs without commission. The usufructuary has the right to withdraw the device, which
he equipped the thing.
9. If the object of the usufruct is a land plot together with inventory, then the usufructuary may dispose of individual
inventory items within the limits of proper housekeeping. He must compensate for normal losses as well as replace items
inventory disposed of in accordance with proper housekeeping; items acquired by him from the moment of their accession to
the inventory become the property of the person who owns the inventory.

Article 259. Termination of usufruct

1. The usufructuary is obliged to return the thing to the owner at the end of the usufructuary term.
2. The usufruct is terminated if it coincides in one person with the right of ownership of the thing.

§ 3. Servitudes

Article 260. Concept

1. A land plot can be encumbered in favor of the owner of another land plot (dominant land plot)
in such a way that the latter has the right to use someone else's land plot in certain cases or that on someone else's
land plot, certain actions could not be performed, or so that the exercise of the right that follows from
ownership of the encumbered land plot in relation to the dominant land plot (easement).
2. The parties may agree on remuneration in the form of periodic payments.

Article 261. Terms of servitude

1. An easement may only constitute such an encumbrance that gives the entitled person an advantage in using
land plot. The content of the easement cannot go beyond the limits established by the above prescription.
2. In the implementation of the easement, the authorized person must observe the interests of the owner of the encumbered land plot.

Article 262. Maintenance of structures on an encumbered site

If the implementation of the land easement requires the presence of a structure on the encumbered plot, then it can be determined that
the owner of this land plot must maintain this structure insofar as it is required by the interests of the eligible
faces. If the owner has the right to joint use of the structure, then it can be determined that the authorized person
must contain the structure insofar as it is necessary for the owner to exercise the right of use.

Article 263. Division of dominant land plot

In the event of a division of the land plot of an eligible person, the land easement remains in effect in relation to separate parts; but
when in doubt, the easement may only be exercised in such a way that it does not become more burdensome for
the owner of the encumbered land plot. If the easement provides the advantages of only one part, then it ceases in
the relation of the rest of the parts.

Article 264. Division of the encumbered land plot

In the event of the division of an encumbered land plot, those parts of it that are not subject to the exercise of the land easement,
exempt from it if the implementation of the easement is limited to a certain part of the encumbered land
plot.

Article 265. Protection of land easement from violation

In case of violation of the land easement, the eligible person is granted the rights of a bona fide owner.

Article 266. Limited personal easement

1. An immovable thing may be encumbered in favor of a certain person with an easement under the conditions provided for in Article 260
of this Code. Such an encumbrance may also consist in the fact that the entitled person is granted the right to use the building.
or part of the building for living, with the release of the owner of the premises (limited personal easement).
2. Limited personal easement is not transferable. The exercise of the easement may be transferred to another person only if
in case it was allowed.

CHAPTER 6. PROPERTY AS A VEHICLE
ENSURING REQUIREMENTS

§ 1. Pledge

Article 267. Pledge

1. Movable things and intangible benefits, the transfer of which to other persons is allowed, may be encumbered to ensure
claims in such a way that the creditor (pledgee) has the right to claim satisfaction at the expense of the value of the thing.
2. The right of pledge may also be established in relation to a future or contingent claim, if this claim by the time
the occurrence of the collateral can be determined.

Article 268. Procedure for pledge of movable things and securities

1. Transfer to other persons of movable things and endorsed as required securities, as well as other intangible benefits
is made in the order established for their purchase. If in connection with the property there is a claim against third
persons, then when the right of pledge arises, it is mandatory that the third party be informed about the pledge of the thing.
2. The pledger and the pledgee may notarize the pledge. In this case, the deposit arises after registration in
the public register so that the transfer of ownership of the property and the application to other creditors of the pledge are not required. In document
the identity of the pledger, possible third parties - debtors, the pledgee, as well as the amount of the secured
requirements, benefit and satisfaction period.

Article 269. Consequences of early execution

If a claim is pledged and the debtor fulfills the obligation before the expiration of the term of the pledge, then the performance replaces the claim
(surrogation).

Article 270. Rights of a bona fide pledgee

If the transfer of the subject of pledge to another person is carried out by transferring the document and the pledger owns this thing (right) to
at the time of the occurrence of the pledge, without having the right to transfer them as a pledge, the pledgee is considered a bona fide acquirer if
he did not know or could not know about it. This good faith of the pledgee gives him an advantage over third parties.

Article 271. Limits of pledge

The pledge secures the claim and other additional rights related to it.

Article 272. Acquisition of debtor's rights

If the pledgor is not at the same time a personal debtor of the claim secured by the pledge, then he may submit
to the pledgee an objection to which the personal debtor is entitled.

Article 273. Priority of claims

If the claim is secured at the same time by the property of the debtor and third parties, then the third parties may require that the creditors before
the use of their property initially satisfied their claims at the expense of the debtor's property.

Article 274. Extension of pledge to property values ​included in the subject of pledge

The pledge applies to all property values, which includes the subject of pledge in the ownership.

Article 275. Pledge with transfer of ownership

1. If the subject of pledge is secured by the transfer of ownership, then the pledgee is obliged to properly maintain it. He has the right to receive
the benefit that counts against the secured claim. He may demand from the pledger compensation for incurred in connection with
the subject of the necessary expenses.
2. If the pledgee does not properly fulfill the obligations imposed on him, the pledgor may demand
transfer of the item to a third party.
3. If there is a danger of destruction of the pledged item or a significant reduction in its value, the pledger may
demand the return of the item and offer the pledgee another means of securing the claim. About the danger of death
the pledged item or a significant reduction in its value, the pledgee is obliged to immediately notify the pledger and
set a deadline for him to offer another means of security. If the pledgor does not offer another means within this period
security, then the pledgee has the right to sell the item. When selling, the rules for the sale of the pledged item are applied. The proceeds
as a result of the sale, the amount replaces the pledged item. Until the expiration of the term of the pledge, this amount is kept with the corresponding charges.

Article 276. Obligations of the pledger when registering the right of pledge

1. If the right of pledge is registered, then the pledger is obliged to keep the subject of pledge and properly maintain it. It
is eligible to continue to benefit from this item.
2. If it can be assumed that the pledgor cannot fulfill these obligations, the pledgee may demand the transfer
subject to him. If the case concerns a pledged right that is registered, then the pledgee has the right to inform the debtor about it third party. From the moment of notification, the debtor is obliged to fulfill the requirement of the pledgee upon the due date.

Article 277. Subsequent pledge

For the subsequent pledge of the pledged item by the pledgee, the prior consent of the pledger is required.

Article 278. Conclusion of transactions on the subject of pledge

To conclude transactions on the subject of pledge, the prior consent of the pledgee is required.

Article 279. Multiple pledge

The same item can be pledged several times. The order of priority is determined in accordance with the moment of the pledge.

Article 280. Protection of the rights of the pledgee

If the pledgee is prevented from exercising his right, he may use the same
rights as the owner.

Article 281. Transfer of the right of pledge to a new creditor

1. With the transfer of the right of claim to a third party, the right of pledge also passes to the new creditor.
2. Each of the third parties, whose legal position may deteriorate as a result of the alienation of the subject of pledge, is entitled to
fulfill the demand and thus take over the right of pledge.
3. The subject of the pledge cannot be transferred to another person without the transfer of the corresponding demand. If during the transfer of the request
the transfer of the subject of pledge is excluded, then the right of pledge also disappears.

Article 282. Termination of pledge

The pledge is terminated simultaneously with the claim for which it exists.

Article 283. Termination of pledge by refusal of pledge

1. The pledge is terminated when the pledgee declares to the pledgor or the owner that he refuses the subject of the pledge.
2. If the pledge is secured by the transfer of possession, it shall terminate when the possession is returned to the pledger.

Article 284. Termination of pledge due to transfer of the subject of pledge into the ownership of the pledgee

The pledge is terminated if it, together with the right of ownership, is in the hands of one person. This rule does not apply until
the rights of a third party are encumbered by a claim, for which there is a pledge.

Article 285. Obligations of the pledgee upon termination of the pledge

If the pledge is terminated, the pledgee is obliged to return the item in his possession to the pledger or the owner.

Article 286. Satisfaction of the claims of the pledgee

1. Satisfaction of the pledgee's claims is made by selling the subject of pledge or, accordingly, by another implementation of this
subject.
2. The pledgee is entitled to sell the object if the deadline for full or partial fulfillment of the monetary claim comes.

Article 287. Invalidity of an agreement on the direct transfer of ownership to the pledgee

An agreement by virtue of which the ownership of the pledged item is transferred to the pledgee is invalid if his
the request will not be met or will not be met in a timely manner.

Article 288. Sale of the subject of pledge

The pledgee has the right to sell the pledged object only when it is necessary to satisfy his claim.

Article 289. Sale of a multiple mortgaged item

If the item has been pledged several times, only the pledgee has the right to claim its sale.
precedes the right of pledge of other persons. If he refuses to use this right, the subsequent
mortgagees.

Article 290. Transfer of the subject of pledge to a person who has the right to sell

1. The subject of the pledge must be transferred to the pledgee who has the right to sell this subject.
2. If the implementation of the requirement depends on the performance of a particular legal action, then the pledgee may require
the pledger of the implementation of this action. If the pledgor does not fulfill the requirement of the pledgee within two weeks, then
the pledgee is entitled, on behalf of the pledger, to carry out this action in relation to third parties.

§ 291. Notice of sale

The pledgee is obliged to warn the owner about the upcoming sale of the item, indicating the amount of money that can
be raised as a result of the sale. The sale cannot be carried out until two weeks after the warning.

Article 292. Sale at public auction

1. The sale of the subject of pledge is carried out at a public auction.
2. If the subject of pledge has a stock or market value, then the pledgee may entrust the sale of the subject to a special
commercial establishments.

Article 293. Inadmissibility of selling the subject of pledge at a price lower than the cost of the material

The subject of the pledge cannot be alienated at a price lower than the cost of the material. At the request of the pledgor before the sale
this price is set by the expert.

Article 294. Other rules for the sale of the subject of pledge

1. The owner and the pledgee may agree to sell the item in a different manner from that set forth in this
chapter. If a third party has the right to the subject of pledge and as a result of alienation of the subject of pledge it is terminated, for alienation
the consent of this third party is required.
2. If a different procedure for the sale of the subject of pledge is in the interests of the parties, then each of them may require that
the item was sold in that order. If the parties still do not reach an agreement, then the decision is made by the court.

Article 295. Participation in the auction of the pledgee and the owner

The mortgagee and the owner can jointly participate in the auction. The price offered by the owner may be rejected,
if the amount is not paid in cash.

Article 296. Sale for cash

The subject of the pledge can be sold only on the condition that the buyer immediately pays the purchase amount in cash and that he
loses its rights if it does not. When selling without this condition, the purchase price should be considered as received
the mortgagee; his rights against the purchaser are not affected.

Article 297. Consequences of lawful alienation

1.With the lawful alienation and transfer of the subject of pledge, the acquirer receives the same rights as if he acquired the thing from
owner.
2. If the subject is alienated as a subject of pledge so that the alienator does not have the right of pledge or if for satisfaction
If there was no need for the sale, then the bona fide acquirer still acquires the unencumbered property.

Article 298. Procedure for the implementation of requirements

The implementation of the claims is made by the payment of the debtor in favor of the creditor.

Article 299. Proceeds from sale

To the extent that the amount received from the sale of the subject of pledge is due to the pledgee in order to satisfy it,
the claim is considered fulfilled by the owner. The remaining revenue is treated as collateral,
substitute collateral.

§ 2. Mortgage

Article 300. Concept

1. An immovable thing may be encumbered to secure a claim in such a way that the person in whose favor
the encumbrance was established, the right was given to receive satisfaction of one's claim at the expense of this thing (mortgage).
2. A mortgage may be established in relation to a future or contingent claim, if at the time of the establishment of the mortgage it
the requirement can be specified. A maximum amount can also be determined within which the amount must be made.
satisfaction at the expense of real estate. This amount is determined and entered in the public register.
3. The claim secured by the mortgage may be replaced by another claim. This requires the agreement of the owner and
the lender (mortgage) and the registration of this agreement in the public register.

Article 301. General mortgage

If, to secure the claim, a mortgage is established for several things (general mortgage), then each thing can be turned over
collection on demand in full. The creditor may, at its discretion, claim satisfaction in whole or in part for
account of every single thing.

Article 302. Owner's mortgage

Page 7

If the claim, for which the mortgage has been established, does not arise, is terminated or passes to the owner of the immovable
things, the mortgage is transferred to him (owner's mortgage).

Article 303. Registration of mortgage

1. The mortgage arises from the moment of registration in the public register. Registration is carried out in accordance with the established procedure.
submission by the owner of the immovable and the mortgagee of notarized documents. They should contain
the owner of the real estate, the mortgagee, the alleged debtor is a third party, as well as the amount of secured
requirements, benefits and deadlines.
2. A mortgage may be established in such a way that the creditor's right arising from the mortgage is determined only by the content
a secured requirement that the creditor cannot invoke registration in support of his claim. Such a mortgage
entered in the register as a guarantee (security) mortgage. Large mortgages can only be guaranteed.

§ 304. Repeated encumbrance of immovable with mortgage

1. One and the same immovable property may be encumbered with a mortgage several times. Priority is established accordingly
the time of establishing the mortgage.
2. If the owner of the immovable undertakes to another person to terminate the mortgage, provided that the mortgage is consolidated
together with the right of ownership in one person, this obligation can be registered in the public register.

Article 305. Rights of an owner who is not a personal debtor of a claim secured by a mortgage

1. If the owner of the immovable is not at the same time a personal debtor of the obligation secured by the mortgage, he nevertheless
may submit a counterclaim to the mortgagee, the right to which only the personal debtor has the right, in particular counterclaims
on offset of monetary obligations and claims related to the appeal.
2. If the deadline for the fulfillment of the claim depends on the termination of the relationship, the termination is valid only if about
this will be announced by the owner to the creditor or the creditor to the owner.

Article 306. Right of the owner to the satisfaction of the obligee

1. The owner of the immovable is entitled to satisfy the obligee when the due date has already come or the personal debtor
is authorized to perform the appropriate action.
2. If the owner is not a personal debtor, the claim passes to him if the owner satisfies the creditor.
3. Upon the satisfaction of the creditor, the owner may demand the documents necessary for making a correction to the public
register or termination of the mortgage.

Article 307. Extension of mortgage to fruits of immovable

1. The mortgage also applies to the fruits of the immovable, if they are not obtained as a result of normal economic activity or
not yet alienated.
2. By virtue of a mortgage, interest on demand and legal costs are covered by the immovable property.

Article 308. Obligation to maintain a thing encumbered with a mortgage

1. The owner is obliged to preserve the real value of the thing. If, due to the deterioration of the security circumstances of the mortgage,
threat, the lender can determine the appropriate time for the owner to prevent this threat.
2. If the thing is insured, the insurance organization may pay, after the deterioration of the circumstances, the sum insured to the policyholder
only when the fact of the occurrence of harm has already been reported to the creditor. The creditor may prevent the payment of the amount if he
fears that the amount will not be used to restore the item.
3. If it turns out that the owner cannot fulfill his obligations, the creditor has the right to demand the transfer of management to him.
thing. The decision on such a requirement is made by the court.
4. An agreement by virtue of which the owner undertakes the obligation not to alienate, not to use or otherwise
not to encumber the immovable in a manner. The validity of such a transaction for third parties cannot depend on the consent of the creditors.

Article 309. Transfer of mortgage and claims secured by it to another person

The mortgage and the claim secured by it can be transferred to another person only simultaneously and jointly. When transmitting
claims against the new lender are transferred and the mortgage. The transfer of the claim is considered valid only on the condition that
the notarized mortgage document is transferred to the new lender and it is registered in the public register at
as a new lender.

Article 310. Obligations of a debtor to a new creditor

If, after the transfer of the claim to the new creditor, the debtor pays the old creditor, this payment does not relieve him of obligations
before the creditor and in the event that he did not know anything about the transition.

Article 311. Presumption of the accuracy of an entry in the public register upon transfer of a mortgage and claims against a new creditor

The mortgage and claim are also transferred to the new lender, as was the case with the previous lender. Registered in the public
registry data, based on the interests of the creditor, are considered correct. In this case, the debtor cannot refer to what is not
there is a requirement. This rule does not apply if the new lender was aware of incorrect registry entries.

Article 312. Rights of third parties

1. Any third party whose position has deteriorated as a result of the sale of the mortgage is entitled to fulfill the requirement and such
by transferring the mortgage to yourself. Upon the satisfaction of the creditor, it may require appropriately certified documents and
register yourself as a mortgagee.
2. If the personal debtor satisfies the creditor, the mortgage is transferred to him and he can demand compensation from the owner.

Article 313. Refusal of a claim or mortgage by a creditor

1. If the lender waives the claim or mortgage, the mortgagee becomes the owner. The refusal is valid if
provided that it is registered in the public register.
2. If the creditor refuses the mortgage, but not the claim, the personal debtor will still be free if he, in turn, could
get a refund from your mortgage.
3. If the owner has the right to challenge, which excludes the long-term use of the mortgage, he may require
the lender to give up the mortgage.

Article 314. Demanding the sale of a thing encumbered with a mortgage

1. If the debtor delays the satisfaction of the claim, the security of which is the mortgage, the mortgagee is entitled
demand the sale of an immovable.
2. The sale is carried out in accordance with the rules and regulations of the Civil Procedure set out in this chapter.
code. The norms of this Code are applied as special norms.

Article 315. Forced sale

1. Forced sale from public auction is carried out by the court on the basis of the application of the creditor; the court appoints a specialist
(expert).
2. A public announcement is made about the court decision. In addition, the court is obliged to report the pending public auction.
authorized persons entered in the register.

Article 316. Other forms of sale of immovables

1. The court may, upon a joint application of the owner and the creditor, establish another form of sale. Until such a decision is made, the court
must hear the parties.
2. The agreement by virtue of which the ownership of the real estate is transferred to the lender is void if he is not satisfied
or not completely satisfied.

Article 317. Rights of the debtor after sale

1. After making a decision to sell a thing at a public auction, the debtor loses the right to keep the fruits of the thing.
2. If the debtor himself or with his family lives in a building or part of a building encumbered with a mortgage, he remains the tenant and
must pay rent according to market conditions.

Article 318. Prevention of bidding

1. The owner or a third party, whose rights may be violated as a result of the auction, has the right to suspend the auction by satisfying
requirements.
2. The auction may be suspended for a maximum period of up to six months by the owner's submission to the court of an application,
if the authorized person considers that by means of suspension the bidding can be prevented, and if on the basis of personal and
economic relationship of the owner or in accordance with the nature of the debt suspension is acceptable. The statement is not
is subject to satisfaction if the temporary suspension entails unreasonable negative results for the creditor.

Article 319. Participation in the auction of the creditor, debtor and owner

The creditor, debtor and owner are eligible to participate in the auction, during which the debtor and creditor must submit
security that the expert recognizes as appropriate.

Article 320. Repeated bidding

If, during the first auction, an offer is not made, amounting to seventy percent of the value of the thing assessed by the expert,
the bidding must be reopened. Repeated tenders must be announced in the same form as the first, and with an indication of that
the fact that they are being repeated. When re-bidding, the lowest price should be sufficient at least to cover the costs
on the process and claims of the creditor. If this does not happen, no bidding takes place. The costs of the auction are borne by the owner.

Article 321. Cancellation of auction due to sale of thing

1. The buyer of the thing at the auction is obliged to transfer to the expert who carried out the compulsory execution the purchase price, from which
performance-related expenses are deducted.
2. The buyer becomes the owner of the thing only after payment of its value.
3. As a result of the transfer of ownership, all mortgages and property rights that encumbered the thing and are registered are terminated.
after the mortgage of the lender who carried out the enforcement. All other limited rights to a thing remain unchanged.
4. The new owner becomes a participant in the lease and lease relations that existed at the time of the transfer of ownership.
Due to the transfer of ownership to the new acquirer, the original owner is regarded as a lessee in
according to market conditions.

Article 322. Procedure for the distribution of proceeds from the sale of a thing

1. If the person entitled to sell the thing is registered by the sole mortgagee or the income received from the auction for
the deduction of expenses covers the claims of all creditors, the expert, after clarifying the costs, distributes the purchase price to the creditors.
The remainder is transferred to the person whose item was sold.
2. If the purchase price is insufficient to satisfy all the claims secured by the mortgage, the expert specifies the costs, makes
the remaining amount to a special account, draws up a distribution plan in accordance with the order of entries in the register and
presents it to the court. The court approves this plan and directs the experts to carry out the distribution on the basis of the plan.

Article 323. Joint liability of the state in connection with the conduct of an auction in an improper manner

If the officially appointed expert does not fulfill the duties assigned to him in connection with the bidding, for the inflicted
as a result of this harm, the state and the expert are jointly and severally liable to the participants.

Article 324. Compulsory administration of a thing

1. On the basis of the application of the mortgagee authorized for compulsory execution, the court may, instead of compulsory expropriation
things at the auction to establish compulsory control of the thing (sequestration). In such cases, the court appoints an administrator or transfers
management functions to the owner.
2. Before making a decision, the court must hear the persons registered in the public register, whose rights may be infringed.
by forced control.
3. Compulsory control can be established only if it is assumed that as a result of the implementation of such
management income will exceed current management costs.
4. If the debtor himself or with his family lives in a building or part of a building over which compulsory management is established,
he must pay for the use of the dwelling according to market conditions.
5. The manager receives the fruits of the thing and, on the basis of a plan drawn up by him and approved by the court, distributes them at the end of the year for
deduction of all costs, which include management costs.
6. Compulsory administration shall be terminated if the creditor is satisfied or it is clear that through such
management will not achieve the satisfaction of creditors.

SECTION 4. PUBLIC REGISTER

Article 325. Purpose of the public register

1. The public register is available for review by any interested person. The right to be entered in the public register
property and other property rights to immovable things.
2. The procedure for organizing a public register is determined by a separate law.

Article 326. Presumption of accuracy and completeness of register data

1. Regarding the data of the register, the presumption of reliability and completeness applies, that is, an entry in the register is considered reliable as long as
its inaccuracy will not be proven.
2. In favor of a person who, on the basis of a transaction from another person, acquires something registered in the register in the name of the alienator
right, the entry in the register is considered reliable, unless this entry is protested or the acquirer knew about the inaccuracy
records.

Article 327. Requesting consent to correct an inaccurate entry

1. If, in the name of a person, an entry is made in the register about a right that no longer belongs to him, the person whose rights and legal status
infringed upon as a result of this registration, may require consent to correct the entry from the person whose rights apply
correction.
2. In order to establish the owner, a complaint may be made about the inaccuracy of the register. When filing a complaint, it is assumed
inaccuracy of the register.

Article 328. Priority of rights registered in the register

1. The order of the rights registered in the register is determined according to the sequence of the time of their registration. Date
registration is considered the day of submission of the application for registration.
2. The order can be changed later. This requires the consent of the exchangers and registration
changes in the registry.
3. When registering a right, the owner may stipulate a condition that any right be registered before
another right. This condition is also subject to registration.

Article 329. Preliminary entry in the public register

1. To ensure the requirement to register the right to the thing being registered, a preliminary entry may be made in the register.
Such an entry is allowed for future or contingent claims.
2. Registration made after prior registration does not have any impact on the person protected
by pre-registration, unless that registration prejudices or terminates his claim.
3. Registration of a preliminary appointment is made in order to establish the owner with the permission of the person whose things to be registered.
concerns this entry.
4. If the person whose property the pre-entry concerns has a right of appeal and this complaint excludes the use of
secured by prior appointment for a long time, it may require the lender to cancel
pre-registration.
5. If the acquisition of any right is invalid for the person in whose favor the preliminary appointment was made, he may
require the acquirer to consent to registration, which will be necessary for the fulfillment of the requirement secured by
by prior appointment.

PART 3. LAW OF OBLIGATIONS

SECTION 1. GENERAL PROVISIONS OF OBLIGATIONS

Article 330. Concept

1. By virtue of an obligation, the creditor has the right to demand from the debtor to perform any action. The fulfillment of an obligation may
consist in the fact that the debtor refrains from taking action.
2.With regard to its content and nature, an obligation may place on each of the parties special concern for rights and property.
the other side. Commitment can be limited and only this.

Article 331. Contract

1. For an obligation to arise or to change its content, it is necessary to conclude an agreement between its participants, except
cases when the obligation arises as a result of harm (tort), unjust enrichment or other grounds,
provided by law.
2. Obligations provided for in Article 330 of this Code may arise even on the basis of the preparation of the contract.
3. A negotiator may demand from another participant reimbursement of expenses incurred to conclude a contract that
due to the negligence of the other participant was not concluded.

Article 332. Provision of information

The right to receive this or that information may follow from the obligation. Providing information implies a duty
submission of relevant documents. The provision of information must be ensured also in the case when it has
value for determining the content of the obligation and the counterparty may, without prejudice to its rights, provide such information. Costs
upon providing the information, the recipient must compensate the obliged person.

CHAPTER 1. CONTRACT LAW

§one. General Provisions

Article 333. Freedom of contract

1. Persons may freely conclude contracts within the limits of the law and determine the content of these contracts. If in order to protect
essential interests of society or the individual, the validity of the contract depends on the permission of the state, it must be
regulated by a separate law.
2. If one of the parties to the contract holds a dominant position in the market, in this area of ​activity it is entrusted
obligation to conclude a contract. She cannot unreasonably offer the counterparty unequal terms of the contract.
3. Persons who purchase or use property and services for the purpose of entrepreneurship or the satisfaction of their
vital interests, cannot be refused to conclude an agreement if the other party to the agreement acts within its
entrepreneurial activity.

Article 334. Agreement on the transfer of property

An agreement under which one party undertakes to transfer all of its property or a significant part of its property, or to burden
his usufruct, must be notarized.

Article 335. Agreement on the transfer of future property

An agreement under which one of the parties undertakes to transfer all of its future property or a significant part of its future property
or burden him with usufruct is insignificant.

Article 336. Contract on inheritance of a living third person

1. The contract on the inheritance of a third person who is alive is null and void. The same rule applies to a binding contract
inheritance share or legacy in relation to the inheritance of a living third person.
2. These rules do not apply to an agreement concluded between future heirs by law regarding the legal or
obligatory hereditary share of any of them. Such an agreement is subject to notarization.

Article 337. Form of contract on immovable

A contract by which one party commits to transfer or acquire ownership of immovable property to the other,
subject to notarial certification. A contract concluded without observing this form is valid if it
registered in the public register.

Article 338. Extension of the validity of the obligation to belonging

If a person assumes an obligation to alienate or encumber a thing, then this obligation also applies to
belonging of a thing, insofar as the contract does not provide otherwise.

Article 339. Determination of the method of execution

1. If the method of execution must be determined by one of the parties or a third party, then it is assumed that the determination must be made
at fair discretion. The determination is made by a statement addressed to the other party.
2. If the determination is made at the fair discretion of one of the parties, then it is binding for the other party only in
the case when it corresponds to justice. If the definition does not meet the criterion of fairness, then the method of execution
determined on the basis of a court decision; the same applies if the party delays in determining the method of performance.

Article 340. Analogy

The rules on contractual obligations also apply to other non-contractual obligations, unless otherwise follows from
the nature of the obligation.

§ 2. Conclusion of the contract

Article 341. Conclusion of a contract

1. The contract is considered concluded if the parties have reached agreement on all its essential conditions in compliance with the established
for this form.
2. The essential terms of the contract are those according to which, at the will of even one of the parties, the agreement must
was achieved or as essential elements of the contract, they are recognized by law.
3. Under the contract, an obligation may arise to conclude a subsequent contract. The form established for the contract,
also applies to the preliminary agreement.

Article 342. Form of contract

1. If the law establishes a certain form for the validity of the contract or the parties have provided for such a form for
contract, the contract comes into force only after the fulfillment of the requirement for such a form.
2. If the parties have agreed in writing, the contract may be concluded by drawing up one document signed
by the parties; a telegraph, telex or exchange of letters is sufficient to ensure compliance with the form.

Article 343. Offer

1. An offer to conclude a contract (offer) is considered made if in this offer addressed to one person or
to several persons, it is expressed that in case of consent (acceptance), the person who made the offer (the offeror) is ready to fulfill his
sentence.
2. An offer addressed to an indefinite circle of persons constitutes an invitation to an offer, if in this offer directly
not stated otherwise.

Article 344. Acceptance

1. An offer made to a person present (through direct contact) must be accepted immediately.
2. An offer made to an absent person may only be accepted until the time during which the person who made the usual
offer, may await a response.

Article 345. Term of acceptance

If the offeror has specified a time limit for acceptance, the acceptance can only be carried out within that time period.

Article 346. Delay in acceptance

If the acceptance arrives at the offeror with a delay and it is clear from the acceptance that it has been sent in a timely manner, the acceptance can only be
considered belated if the offeror informs the other party without delay.

Article 347. New offer

1. A belated acceptance of an offer shall be recognized as a new offer.
2. If the answer expresses consent to the conclusion of the contract, but on other conditions than provided for by the offer, such a response
is considered a refusal of the offer and, at the same time, a new offer.

Article 348. Change of acceptance

If in a business relationship the acceptance is carried out on amended terms, the contract is considered concluded if the acceptor had
the right to reckon with the consent of the provider and the latter will not immediately declare its refusal.

Article 349. Acceptance by default

1. If an entrepreneur carrying out activities for others receives an offer for the performance of such activities from a person with
with whom he has business contacts, he is obliged to respond to this offer within a reasonable time; his silence will be considered acceptance. Also
the rule also applies in cases where the entrepreneur receives such an offer from the person from whom he requested orders for implementation
similar activities.
2. If the entrepreneur rejects the offer, and the goods have already been sent, he is obliged, in order to avoid harm, to temporarily store these goods in such a way.
so as not to harm him.

Article 350. The contract concluded on the street

1. An agreement between a consumer and a person selling within their enterprise, on the street, in front of the house and in similar places,
valid only if the consumer does not reject the contract within one week in writing, unless the performance
the contract takes place upon its conclusion.
2. The same rule applies to loans (consumer loans) issued for non-commercial purposes and agreements on
insurance.

Article 351. Local traditions

If individual expressions of the contract can be interpreted in different ways, preference should be given to the one that is usually
taken at the place of residence of the parties to the contract. If the parties have different places of residence, the decisive place is
residence of the acceptor.

Article 352. Incomprehensible meanings

In the presence of mutually exclusive or meaningful expressions, preference should be given to the meaning that is more
others are consistent with the content of the contract.

Article 353. Commercial customs and traditions

When determining the rights and obligations of the parties to the contract, trade customs and traditions may be taken into account.

Article 354. Interpretation of mixed contracts

When interpreting mixed contracts, the rules on contracts that are closest to the essence of performance and to it are taken into account.
correspond.

Article 355. Recognition of debt

For the validity of a contract recognizing the existence of an obligation relationship (recognition of the existence of a debt),
a written statement of recognition is required. If for the emergence of an obligation relationship, the existence of which was
recognized, provided for some other form, for a debt recognition agreement also requires such a form. If the debt is recognized on
based on calculation (payment) or by agreement, compliance with the form is optional.

§ 3. Standard conditions of the contract

Article 356. Concept

1. The standard terms of the contract are pre-formulated terms for repeated use, which are one
the party (making the offer) represents to the other party and through which rules are to be established,
differing from the norms of law or complementing them.
2. If the terms are specified in detail by the parties, this is not considered to be the standard terms of the contract.

Article 357. Inclusion in the contract of standard terms

1. The standard conditions only then become integral parts of the contract concluded between the proposer and the other
side when:
a) the party making the offer at the place of conclusion of the contract will make a visual inscription and refer to these conditions;
b) the other party has the opportunity to familiarize himself with these conditions and, if he agrees to accept these conditions.
2. If the other party is an entrepreneur, the standard terms of the contract become an integral part of the contract, provided that
that in the event of the necessary prudence in the business relationship, he should have provided for it.

Article 358. Unusual provisions of standard contract terms

The provisions of the standard terms of the contract, which are so unusual in form that the other party could not provide for them, do not
become an integral part of the contract.

Article 359. Interpretation of an unclear text in favor of the other party

If the text of the standard terms of the contract is unclear, it is interpreted in favor of the other party.

Article 360. Invalidity of conditions contrary to the principles of good faith and trust

The standard clause of the contract is invalid, despite its inclusion in the contract, if it is contrary to the principles of trust and
good faith is harmful to the other party to the contract. In this case, the circumstances should be taken into account, if there is
which were included in the agreement, these conditions, the mutual interests of the parties and more.

Article 361. Discrepancy between standard contract terms

In the standard terms and conditions of the contract, which the party making the offer applies to individuals who are not engaged in
entrepreneurial activity are invalidated:
a) the provisions by which the proposing party sets a disproportionately long or short period for
acceptance of an offer or refusal from it or the performance of a particular work (terms of acceptance and fulfillment of obligations);
b) the provisions by which the party making the offer establishes for the performance of its obligations different from legal
norms are disproportionately long or insufficiently defined terms (terms in case of violation of obligations);

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c) provisions that give the right to the party that made the offer to refuse unreasonably and without the grounds specified in the contract
fulfillment of their obligation; this rule does not apply to long-term liabilities (waiver clause
obligations);
d) provisions that give the party making the offer the right to change the promised work or deviate from it, if consent to
it is unacceptable to the other party (condition for the change);
e) provisions that give the proponent the right to claim disproportionately high compensation from the other party
costs incurred.

Article 362. Invalidity of standard conditions

In the standard terms of the contract, which the party making the offer applies to an individual, does not
engaged in entrepreneurial activity are also recognized as invalid:
a) Provisions providing for price increases in an unreasonably short time. This rule applies in long-term
commitment relationship (short-term price increases);
b) provisions that limit or exclude the right of a party to the contract to refuse to fulfill the obligation,
granted to her by this Code, or the right of a party to the contract to refuse to perform the contract until the other
the party has not fulfilled the obligations imposed on it (the right to refuse to perform);
c) provisions by which a party to the contract is deprived of the right to set off indisputable obligations or obligations established by a court decision (prohibition
offset of mutual claims);
d) provisions exempting the party making the offer from the statutory obligation to warn the other
the party or give her a time limit for the performance of the obligation (warning about the performance of the obligation, the appointment of a time limit);
e) an agreement on the claim for an amount in excess of the amount of damage (an overstated claim for compensation for harm);
f) provisions excluding or limiting liability for damage caused by violation of the requirement due to gross
negligence of the party making the offer or its representative (responsibility for negligence);
g) the provisions to which, in the event of a violation of the basic obligation, the party making the offer is limited or
the right of the other party to the contract is excluded to withdraw from the contract, or by which the other party to the contract is deprived of the right or in spite of
paragraph "e" of this article restricts her right to demand compensation for harm caused by non-performance (violation
requirements for the fulfillment of the main obligation);
h) provisions which, in the event of partial fulfillment of the obligation by the party that made the offer, deprive the other party of
of the contract of the right to demand compensation for damage for non-performance of the contract as a whole or to withdraw from the contract if it is no longer
is interested in partial performance (loss of interest in case of partial performance of an obligation);
i) provisions that, in contrast to the rules provided by law, limit the liability of the party making the offer
for deficiencies in the item when supplying new goods and performing work.

§ 4. Contracts in favor of a third party

Article 363. Right to demand performance of contract

The performance of the contract in favor of a third party may be claimed by both the creditor and this third party, if the law or the contract does not
it is established otherwise, or something else does not follow from the essence of the obligation itself.

Article 364. Clause in the contract

1. In the absence of a special clause, based on the circumstances of the case, in particular, from its purpose, it is necessary to establish the following:
a) whether the third party should acquire the right or not;
b) whether this right arises immediately or does it arise in the presence of certain prerequisites;
c) whether or not the parties to the contract are entitled to terminate or change the right of a third party without his consent.
2. The party that made a reservation in the contract in favor of a third party retains the right to replace the third party specified in the contract
regardless of the consent of the counterparty.

Article 365. Refusal of a third party

If a third party waives the right acquired under the contract, the creditor may himself demand performance if from the contract or
the essence of the obligation does not imply otherwise.

§ 5. Refusal to execute the contract

Article 366. Consequences of cancellation of the contract

1. If one of the parties withdraws from the contract, then in the event of withdrawal from the contract, the performance and benefits received are returned to the parties.
2. In return for the return in kind, the debtor shall be obliged to pay compensation if:
a) based on the nature of the acquired, its return is impossible;
b) the received item is used by the party, alienated, legally burdened, reworked or altered;
c) the received item was damaged or destroyed; wear and tear caused by appropriate use is not taken into account.
3. If the contract provided for mutual performance, the monetary compensation shall be replaced by this performance.
4. The obligation to reimbursement does not arise:
a) if the defect of the item, giving the right to withdraw from the contract, was revealed during the processing or transformation of this item;
b) if the damage or destruction of the item occurred through the fault of the creditor;
c) if the item was damaged or destroyed by an authorized person, despite the fact that he treated it with the same care as with
your own things. What is left is subject to return.
5. In case of violation of obligations arising from paragraph 1 of this article, the creditor may, in accordance with article 405 of this
Of the Code to demand compensation for harm.

Article 367. Compensation for harm

1. If the debtor does not receive benefits as a result of the violation of the rules for the use of the thing, although he had the opportunity to do so, he is obliged
compensate the creditor for harm.
2. If the debtor returns the thing, reimburses its value in money or in accordance with subparagraphs "a" and "b" of paragraph 3 of Article 366
of this Code, the claim for compensation for harm is unacceptable, he must be reimbursed the necessary costs associated with
the content of the thing. Other costs are reimbursable only if the creditor benefits from them.

Article 368. Simultaneous performance of obligations upon withdrawal from the contract

The obligations arising from the withdrawal from the contract must be fulfilled by the parties directly and simultaneously.

Article 369. Notification

Withdrawal from the contract is made with the notification of the other party.

Article 370. Term for withdrawal from contract

If the term for withdrawal from the contract has not been established, then such a period for the withdrawing person may be determined by the other party to the contract. Right
withdrawal from the contract is lost if before the expiration of the term it was not declared about it.

Article 371. Indivisibility of the right of withdrawal

If several persons participate on one or the other side of the agreement, the withdrawal can only be made by all participants.
in solidarity. If the right to withdraw from the contract is lost for one of the eligible persons, this right is forfeited for all.

Article 372. Inadmissibility of withdrawal from the contract

It is inadmissible to withdraw from the contract in connection with non-fulfillment of an obligation if the debtor could be released from the obligation by offset
obligations and after the release will immediately declare the offset of obligations.

Article 373. Loss of right

If the contract is concluded under the condition that, based on the contract, the debtor must lose his rights in the event of failure to fulfill his
obligations, then upon the occurrence of such a case, the creditor has the right to withdraw from the contract.

Article 374. Error in the grounds for reconciliation

1. An agreement by which a dispute or uncertainty about a legal relationship is eliminated by mutual concessions (reconciliation) is invalid, if
based on the content of the agreement, this reconciliation is based on untrue circumstances and the dispute or
uncertainty would not have arisen with knowledge of the actual circumstances of the case.
2. Uncertainty in a legal relationship is equated with doubt about the possibility of fulfilling any requirement.

CHAPTER 2. FULFILLMENT OF OBLIGATIONS

§ 1. General Provisions

Article 375. Presumption of the existence of an obligation

1. Every performance implies the existence of an obligation.
2. Obligations must be performed properly, in good faith, at the agreed time and place.

Article 376. Place of performance of obligation

1. If the place of performance was not determined in advance or it does not appear from the essence of the obligation, then performance must be
made at the place of residence of the debtor at the time the obligation arose.
2. If, before the fulfillment of the obligation, the debtor's place of residence or the location of his enterprise and the creditor in
In this connection, additional costs will arise, the debtor must reimburse these costs to the creditor.
3. If, before the fulfillment of the obligation, the place of residence of the creditor or the location of his enterprise changes and in connection with this
if the costs or the risk of performance increase, then the creditor is charged with both the reimbursement of unnecessary expenses and additional
risk.

Article 377. Early performance of an obligation

The debtor has the right to fulfill the obligation ahead of schedule, if the creditor, for a valid reason, does not refuse to accept the performance.

Article 378. Term of performance

1. If the term for performance has not been determined or is not clear from the circumstances, the creditor may demand immediate performance,
and the debtor has the right to make it immediately.
2. If the period has been determined, then it should be considered that the creditor cannot demand performance earlier than this period.

Article 379. Requirement for early execution

If a period is set for the performance of the obligation in favor of the debtor, the obligee may immediately demand
performance if the debtor has become insolvent or the value of the stipulated security has decreased or not at all
represented such.

Article 380. Fulfillment of an obligation under a conditional transaction

If the validity of the transaction depends on the occurrence of any condition, the obligation must be performed on the day of occurrence
this condition.

Article 381. Right to refuse performance under a bilateral obligation

If the debtor has from the same legal relationship on which his obligation is based, such a claim against the creditor, according to which
the deadline for performance has come, then he has the right, unless it otherwise follows from the obligation, to refuse to fulfill his obligation before
fulfillment of the obligation by the creditor.

Article 382. Consumer credit

1. The on-demand agreement together with the loan agreement form an interconnected transaction in which the loan serves as financing
purchase price and both contracts are considered as economic unity. Economic unity is considered when
the debtor (buyer) relies on the seller's assistance in preparing or concluding a loan agreement.
2. The beneficiary with a consumer loan may refuse to repay the loan if the resulting
of a compensated contract, an objection to the seller gives him the right to refuse to fulfill his obligation.

Article 383. Fulfillment of an obligation by a third party

1. If it does not follow from the law or the contract and from the nature of the obligation that the debtor is obliged to perform the obligation personally, this
the obligation can be performed by a third party.
2. The creditor may refuse to accept the performance offered by the third party if the debtor is against it.

Article 384. Satisfaction of a creditor by a third party

1. If the creditor has made a foreclosure on the thing belonging to the debtor, then everyone who, as a result of the compulsory
execution threatens to lose the right to this thing, has the right to satisfy the creditor.
2. If the third party satisfies the creditor, the right of claim shall pass to this person. Such a transfer of law cannot take place in
damage to the creditor.

Article 385. Acceptance of performance by an unauthorized person

1. The debtor is obliged to fulfill his obligation with the acceptance of this performance by the creditor or a person who, by law or decision
the court is competent to accept the performance.
2. If the performance of the obligation was accepted by an unauthorized person, the obligation will be deemed fulfilled, provided that the obligee
has consented to this or has benefited from this performance.

Article 386. Alternative obligation

If several methods of performance of the obligation are possible, provided that the performance must be made by one of
of these methods, then in case of doubt the right of choice belongs to the debtor.

Article 387. Choice of obligation to be performed

If it turns out that of the two actions to be performed, the debtor has the right to refuse one of them, the
obligation to perform another action.

Article 388. Procedure for choosing an alternative obligation

In accordance with Article 386 of this Code, the choice is made by means of a declaration of this to the other party or
implementation of execution. A selected obligation is recognized as an initially enforceable obligation.

Article 389. Selection of more than two obligations to be performed

The rules of Articles 386-388 of this Code shall also apply in cases where the subject of the choice of the obligation consists of more than
two obligations to be fulfilled.

Article 390. Fulfillment of an obligation in parts

The debtor has the right to fulfill the obligation in parts, if the creditor agrees to this.

Article 391. Right of the obligee to accept another performance

The creditor is not obliged to accept performance other than that provided for by the contract; this rule also applies when
execution is of great value.

Article 392. Quality of performance of obligation
If the quality of performance is not specified in detail in the contract, the debtor is obliged to perform at least average quality work and
deliver things of average quality.

Article 393. Fulfillment of an obligation determined by generic characteristics

If the subject of the obligation is determined by generic characteristics, then, as long as it is possible to provide a thing of this kind, the debtor is responsible for
non-performance even in the event that non-performance occurred through no fault of his.

§ 2. Fulfillment of monetary obligations

Article 394. Concept

The monetary liability is expressed in local currency. The parties can establish a monetary obligation in a foreign
currency, unless prohibited by law.

Article 395. Procedure for determining annual interest

In cases where, in accordance with a law or an agreement on an obligation, interest must be charged, the latter is charged on
rate of 4% per annum, unless otherwise specified.

Article 396. Procedure for reclaiming paid in excess of an obligation

Paid in excess of the obligation may be reclaimed in accordance with the rules of unjust enrichment.

Article 397. Place of performance of monetary obligation

1. If the place of performance for the monetary obligation is not determined, then the debtor is obliged to make payment at the place of residence
the lender or the location of his business at his own risk and expense.
2. If the creditor has a bank account designated for crediting money in the place or country where the
payment, then the debtor can fulfill his monetary obligation by crediting to this account, except for cases when against this
the creditor objects.

Article 398. Priority for the fulfillment of monetary obligations

1. If the debtor is entrusted with the performance of several similar actions arising from different obligations, and the fact that
fulfilled, is not enough to cover all debts, then the obligation that the debtor chooses in the performance is covered, and if
the debtor does not choose, then the debt, the due date of which came first, must be covered.
2. If the deadlines for the fulfillment of the requirements have come at the same time, first of all, the demand must be fulfilled, the fulfillment
which is the most burdensome for the debtor.
3. If the claims are equally burdensome, the least secured claim is subject to execution first.

Article 399. Priority of covering legal costs

Due to the debtor's payments, which are not enough to cover the entire debt, the due date of which has come, in the first place
litigation costs are covered, then the main execution (debt) and finally interest.

Article 400. Fulfillment of monetary obligations upon a change in the exchange rate of the monetary unit

If, before the due date of payment, the value of the monetary unit (exchange rate) has increased or decreased or the currency has changed, the debtor
is obliged to make payment at the rate corresponding to the time of occurrence of the obligation. When changing the currency to the base
exchange relations should be based on the rate that existed between these monetary units on the day the currency was changed.

§ 3. Delay of the creditor

Article 401. Concept

1. The creditor is considered overdue if he does not accept the performance offered to him, the due date of which has come.
2. If the debtor is obliged to perform the obligation only against the performance of the obligation by the obligee, then the obligee is considered
overdue, if he, although he is ready to accept the performance proposed by the debtor, but for his part does not perform the required
counter execution.

Article 402. Obligation of a creditor to compensate for harm

The creditor must compensate the damage caused to the debtor as a result of the culpable delay in accepting the fulfilled obligation.

Article 403. Liability of a debtor in case of delay of a creditor

For the entire time of the creditor's delay, the debtor is only liable for intent and gross negligence.

Article 404. Consequences of delay of a creditor

In case of delay, the creditor, regardless of his fault:
a) is obliged to reimburse the debtor for unnecessary expenses incurred in connection with the storage of the subject of the obligation;
b) carries the risk of accidental damage or destruction of the thing;
c) is deprived of the right to receive interest on a monetary obligation.

CHAPTER 3. CIRCUMSTANCES IMPROVING THE PERFORMANCE OF OBLIGATIONS

§ 1. General Provisions

Article 405. Demand for compensation for damage in case of violation of obligations

1. In case of violation of the obligation by the debtor, the creditor may demand compensation for the damage caused by this. This rule is not
applies if the debtor is not held liable for the breach of the obligation.
2. In the event of the debtor's delay, the creditor may assign the debtor a period necessary for the performance of the obligation. If the debtor does not
will fulfill the obligations and within this period, the creditor has the right to demand compensation for harm in return for fulfilling the obligation.
3. The appointment of an additional period is not necessary if it is clear that this will not lead to any result or when there is
special circumstances that, based on the interests of both parties, justify the immediate use of the right of claim
compensation for harm.

Article 406. Inadmissibility of a preliminary agreement on exemption from compensation for harm

1. Unless otherwise provided for and does not follow from the essence of the obligation, the debtor shall be liable only for compensation for damage caused
deliberate or careless actions.
2. A preliminary agreement on the release of the debtor from the obligation to compensate for harm in case of violation by him is inadmissible
commitment by willful actions.

Article 407. Liability of the debtor for the actions of his representative

For the actions of his legal representative and other persons used to fulfill his obligations, the debtor bears
responsibility to the same extent as in case of one's own guilty actions.

Article 408. Liability of the debtor upon receipt of the subject of performance from another person

The debtor is responsible for the performance even when the subject of performance he should have received from another person and could not
receive, unless otherwise follows from the contract or other circumstances.

Article 409. Bringing a contract into conformity with changed circumstances

1. If the circumstances that became the basis for the conclusion of the contract, after the conclusion of the contract, clearly changed and the parties did not
would have concluded it or would have concluded with a different content, if they had provided for these changes, then it may be required
bringing the contract in line with the changed circumstances, since taking into account individual cases, in particular based on
the type of norms, the party to the contract cannot be required to strictly adhere to the unchanged contract.
2. Cases when the representations that became the basis of the contract turned out to be incorrect are also equated to changes in circumstances.
3. The parties, first of all, must make every effort to bring the contract in line with the changed circumstances.
4. If it is impossible to bring the agreement into conformity with the changed circumstances or the other party does not agree with this, then
the party whose interests have been violated may withdraw from the contract.

Article 410. Refusal from long-term contractual obligations

1. Any party to the contract may, for good reason, withdraw from the contract for long-term obligations without
compliance with the terms of termination of the contract. The ground is considered to be respectful if the party terminating the contract due to
specific circumstances, including force majeure and taking into account mutual interests, an extension cannot be required,
continuation of the contractual relationship until the expiration of the agreed period or time limit for termination of the contract.
2. If the basis is also a violation of contractual obligations, termination of the contract is permissible after an ineffectual expiration
deadline for correcting deficiencies or unsuccessful warning. Accordingly, paragraph 2 of Article 416 of this
Of the Code.
3. An eligible person may withdraw from the contract within a reasonable time after becoming aware of the grounds for termination.
contract.
4. If the already performed is no longer of any interest due to the termination of the contract, the termination may
extend to this performance as well. To ensure the return of the performed, the rules of Articles 366 are applied accordingly.
368 of this Code.
5. With respect to claims for compensation for harm, the rules of Article 417 of this Code shall apply accordingly.

§ 2. DELAY OF THE DEBTOR

Article 411. Concept

The debtor is considered overdue if:
a) the obligation will not be performed within the period established for its performance;
b) the obligation is not fulfilled even after the warning made by the creditor upon the due date.

Article 412. Impossibility to fulfill an obligation

It is not considered delayed if the obligation has not been performed due to circumstances that have arisen through no fault of the debtor.

Article 413. Liability of the debtor

The debtor is liable for any negligence during the delay. He is also responsible for accidentally
the impossibility of execution that occurred during the delay, except for cases when losses would have occurred and if
timely performance of the obligation.

Article 414. Inadmissibility of calculating interest on interest

1. For the period of delay, interest is charged on the monetary obligation in the amount established by law. If the creditor otherwise
legal grounds may require higher interest, then the latter are charged accordingly.
2. Accrual of interest on interest for the period of delay is not allowed.

Article 415. Right of the creditor to compensation for losses

The creditor has the right to demand compensation for losses caused by delay.

§ 3 BREACH OF OBLIGATIONS UNDER BILATERAL AGREEMENTS

Article 416. Establishment of an additional term in case of violation of obligations

1. If one party to the contract violates the obligations arising from the bilateral contract, the other party may, after
ineffectual expiration of the additional period established by it for the fulfillment of the obligation to withdraw from the contract. If a
based on the nature of the breach of the obligation, no additional period is applied to the establishment of an additional period
equates to a warning. If the obligation has been partially violated, the creditor may withdraw from the contract only if
the execution of the remainder lost interest to him.
2. There is no need for an additional time limit or warning when:
a) it is clear that this will not lead to the desired results;
b) the obligation was not fulfilled within the period established by the contract and, according to the contract, the creditor connected the continuation of the relationship with
timely execution;
c) on special grounds and taking into account mutual interests, immediate termination of the contract is justified.
3. Cancellation of the contract is unacceptable when:
a) the violation of the obligation is insignificant;
b) the requirements of paragraph 2 of Article 330 of this Code have been violated and the creditor, despite this, may be required to leave
the strength of the treaty;
c) the creditor himself is fully or most responsible for the violation of the obligation;
d) the obligation is opposed by a counter claim that has already been submitted by the debtor or will be presented immediately
after cancellation of the contract.
4. The creditor is entitled to withdraw from the contract before the expiration of the performance period, if it is obvious that there will be grounds for refusal to
contract.
5. The debtor may establish a term for cancellation of the contract for the creditor. If the creditor does not exercise this right within this period, he may
to withdraw from the contract only in case of ineffectual expiration of the corresponding period established by him or after
warnings.

Article 417. Compensation for damage upon withdrawal from a contract

1. Upon withdrawal from the contract, the creditor may demand compensation for damage caused to him by non-performance of the contract.
2. This rule does not apply if the reason for withdrawal from the contract was not due to the fault of the debtor.

CHAPTER 4. OBLIGATION TO COMPENSATE DAMAGE

Article 418. Obligation to restore the original position

1. The person obliged to compensate for the harm must restore the situation that would have existed if the circumstance did not occur,
obligating to make a refund.
2. If, due to bodily injury or damage to health, the victim has lost the ability to work or it has decreased, or
his needs are growing, the harm must be compensated for by paying the victim a monthly maintenance.
3. The victim has the right to demand the costs of treatment in advance. The same rule applies if necessary professional
retraining.
4. In return for maintenance, the victim may demand compensation if there are important grounds.

Article 419. Impossibility of restoring the original position

If compensation for damage by restoring the original position is impossible or necessary disproportionately for this

large expenses, the creditor may be given a refund.

Article 420. Inadmissibility of preliminary refusal to claim compensation for harm

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Waiver of the right to claim compensation for damage caused by violation based on prior agreement is inadmissible
obligations.

Article 421. Unearned income

The harm must be compensated not only for the actual loss of property, but also for the lost income. Unreceived
income is considered that the person did not receive and which he would have received if the obligation was duly fulfilled.

Article 422. Determination of harm

Compensation is subject only to the damage that the debtor could have foreseen and which is direct
the consequence of the injurious action.

Article 423. Monetary compensation

1. Monetary compensation for non-property damage may be demanded only in cases precisely established by law.
2. In cases of bodily injury, damage to health, as well as imprisonment, the victim may for non-pecuniary damage
claim a reasonable and equitable monetary compensation.

Article 424. Determination of the amount of harm

When determining the amount of harm, the interests that the creditor had in relation to the proper performance of the obligation must also be taken into account.
To determine the amount of harm, the place and time of the contract must be taken into account.

Article 425. Fault of the victim in the occurrence of harm

1. If the occurrence of harm was also facilitated by the actions of the victim, the obligation to compensate for harm and the amount of compensation depend on
the fault of which of the parties caused the most harm.
2. This rule also applies in cases where the victim's guilt is expressed in the failure to take measures to prevent or reduce
harm.

CHAPTER 5. ADDITIONAL SECURITY

Article 426. Types of additional means of securing the fulfillment of obligations

The parties may, to ensure performance, provide for the contract and additional means: forfeit, deposit and guarantee
the debtor.

§ 1. FAILURE

Article 427. Concept

1. Forfeit - a sum of money determined by agreement of the parties, which the debtor is obliged to pay to the creditor for non-performance or
improper performance of an obligation.
2. The rules on forfeit shall be applied accordingly in case of non-fulfillment of obligations arising from the deposit.

Article 428. Form of determination of forfeit

1. The parties to the contract are free to determine the penalty, which may exceed the possible harm.
2. Agreement on forfeit requires written form.

Article 429. Inadmissibility of Simultaneous Demand for Payment of Penalty and Performance of Obligation

1. The creditor cannot demand the simultaneous payment of the forfeit and the performance of the obligation, if the forfeit is not provided for those
cases when the debtor fails to fulfill his obligations at the specified time.
2. The creditor is always entitled to demand compensation for damage.

Article 430. Reduction of penalty by court

The court may, taking into account the circumstances of the case, reduce an unreasonably high penalty.

§ 2. PROBLEM

Article 431. Concept

A deposit is an amount of money issued by one party to the other in confirmation of the fact of the conclusion of the contract.

§ 432. Set-off of advance against payment

The deposit is counted towards the stipulated obligations, and if it is not counted, after the execution of the contract it must be
returned.

Article 433. Set-off of a deposit against compensation for harm

1. If the person who gave the deposit guiltyly violates the obligations imposed on him, the deposit remains with the recipient. At the same time, the deposit
is counted towards compensation for harm.
2. If the failure to fulfill the obligation is caused by the guilty actions of the recipient of the deposit, he must return the deposit in double
size. In this case, the person who gave the deposit may demand compensation for harm.

§ 3. Debtor's guarantee

Article 434. Concept

The debtor's guarantee is an obligation by virtue of which the debtor undertakes to perform any unconditional action that
goes beyond the subject of the contract.

Article 435. Validity of the guarantee

The guarantee is considered valid if it does not contradict the rules stipulated by the law or does not unnecessarily bind the debtor.

Article 436. Form of guarantee

The guarantee must be in writing.

Chapter 6. Termination of Obligations

§ 1. Termination of obligations by performance

Article 437. Termination of obligations by performance in favor of the creditor

The obligation relationship is terminated by the performance of the obligation in favor of the creditor (performance).

Article 438. Termination of obligations by novation

Obligation relations also terminate in the event that the creditor, instead of the one provided by the obligation as
fulfillment takes the fulfillment of another obligation (novation).

Article 439. Acceptance of performance of obligation

1. At the request of the debtor, the creditor must issue a document confirming the full or partial acceptance of the performance.
2. A document drawn up on receipt of a debt, which does not contain information about interest, implies that interest has been paid and
the money relation ceases completely.
3. When the debt is paid periodically, in parts, the document on the payment of its last part, unless otherwise established, gives
grounds for assuming that the previous part has also been paid.

Article 440. Details of the document on acceptance of debt

The performance document drawn up by the creditor or an authorized person must contain data on the volume and type
debt, name and surname of the debtor or the person paying the debt, time and place of performance.

Article 441. Right to claim a debt document

If a debt document is issued on the claim, the debtor, together with the performance document, may demand the return of this
document or its cancellation. If the creditor cannot return the debt document, the debtor has the right to demand an officially certified
a certificate stating that the obligation has been terminated.

Article 442. Reimbursement of expenses for the issuance of an execution document

1. The costs of issuing a performance document shall be borne by the debtor, unless it follows from the agreement between him and the creditor
other.
2. If the creditor changes his place of residence or dies and leaves the heirs in another place of residence, the increased expenses,
associated with the issuance of a document of execution are assigned to the creditor or his heirs.

Article 443. Refusal to perform due to failure of the obligee to fulfill his obligations

If the creditor refuses to issue a performance document, return the debt document or admit that the debt
canceled, the debtor has the right to refuse his performance. In this case, the creditor is considered overdue.

§ 2. Termination of obligation by deposit

Article 444. Concept

1. If the creditor delays in accepting the performance or the location of its location is unknown, the debtor has the right to surrender the subject of performance on
storage in a court or notary, and deposit money or securities into a notary's deposit account.
2. As a result of the deposit, the debtor is released from the obligation to the creditor.

Article 445. Transfer of the deposited property to the creditor

The court or notary must transfer the deposited property to the creditor. The court or notary selects the custodian, and the documents
remain with them.

Article 446. Suitability of subject for deposit

The item must be suitable for storage. Perishable items are not accepted for storage.

Article 447. Place of storage

Storage should be carried out at the place of execution.

Article 448. Requirement for the acceptance of the subject by the creditor

The court or notary informs the creditor of the acceptance of the subject for safekeeping and requires him to accept the subject.

Article 449. Reimbursement of expenses related to storage

All storage costs are the responsibility of the lender.

Article 450. Claim by the debtor of the deposited item

1. The debtor shall have the right to demand the return of the item deposited before its acceptance by the creditor. If he demands a return
item, it is considered that storage did not take place.
2. The debtor may return the surrendered item if the creditor refuses it or if the period provided for in article
451 of this Code.
3. If the debtor returns the item, the storage costs shall be borne by him.

Article 451. Period of storage of the subject of performance

The court or notary will keep the item for up to one year. If during this period the creditor does not accept the item, this is reported
the debtor with the requirement to return the surrendered item. If the debtor does not receive
subject, it is considered state property.

§ 3. Termination of obligation by offset of mutual claims

Article 452. Possibility of offsetting obligations

1. Mutual claims existing between two persons can be terminated by offsetting them, if the deadline for fulfillment has come
these requirements.
2. Set-off of claims is also possible when the deadline for the fulfillment of one of the claims has not yet arrived, but the party entitled to do so
requirement, supports offset. The offset of claims is carried out by notifying the other party about it.

Article 453. Period of limitation of claim for offset

The limitation period of the claim does not exclude the offset of the obligation, if by the time the limitation period on the claim has not expired and its offset is still
was possible.

Article 454. Readable Requirements

If the requirements being read out do not fully cover each other, only the one whose volume is less than the volume of the other is read out.
requirements.

Article 455. Multiple read-out claims

1. If the party to the agreement notified of the set-off has several claims subject to set-off, the rules of Article 398 shall apply.
of this Code.
2. If the party to the other party, along with the main obligation, is obliged to pay interest and other
expenses, the rules of Article 399 of this Code apply.

Article 456. Set-off of obligations at different places of performance

Set-off of obligations is also permissible when different places are provided for the fulfillment of obligations.

Article 457. Inadmissibility of offsetting obligations

Offsetting liabilities is inadmissible:
a) if the offset of claims was previously excluded by agreement;
b) if the subject of the obligation cannot be foreclosed or the subject of the obligation constitutes a means of subsistence;
c) if the obligation provides for compensation for harm caused by damage to health or death;
d) in other cases provided by law.

§ 4. Termination of obligation by forgiveness of debt

Article 458. Concept

Debt forgiveness, entailing the termination of the obligation, can be made by agreement of the parties.

Article 459. Consequences of debt forgiveness for other joint and several debtors

1. Forgiveness of a debt to one of the joint and several debtors also releases other joint and several debtors, except in cases where the creditor
reserves a claim to them.
2. In this case, the creditor may, in respect of the remaining joint and several debtors, use only one claim minus the share
released debtor.

Article 460. Consequences of forgiving a debt to the principal debtor

1. Forgiveness of the debt to the principal debtor also frees the guarantors.
2. The release of the surety from the payment of the debt does not release the principal debtor from the performance of the obligation.
3. The release of one of the guarantors from the payment of the debt shall also release other guarantors.

Article 461. Consequences of waiver of claims under a bilateral agreement

Refusal by one of the parties to a bilateral agreement from its demand does not entail the termination of the obligation. She is obliged to fulfill
their obligations stipulated by the contract until the other party also waives its claim.

§ 5. Other grounds for termination of obligations

Article 462. Termination of obligations in the event that the debtor and the creditor are the same person

Obligations are terminated if the debtor and the creditor are the same person.

Article 463. Termination of an obligation due to the death of a debtor

1. The death of the debtor shall entail the termination of the obligation if performance is impossible without his personal participation.
2. The death of the obligee entails the termination of the obligation if the performance was intended personally for the obligee

Article 464. Termination of an obligation due to termination of a legal entity

The obligations of a legal entity terminate from the moment of registration of the completion of its liquidation.

Chapter 7. Assignment of Claim

Article 465. Assignment

The claim can be transferred by the creditor to another person under an agreement with him (assignment of the claim). Since the conclusion of such
of the contract, the original creditor gives way to the new creditor.

Article 466. Inadmissibility of assignment

1. The assignment of the claim is not allowed if the obligation in relation to the new creditor cannot be performed without change
its content or if, by agreement with the debtor, the assignment was excluded.
2. The assignment of a claim is excluded if it cannot be presented for collection.

Article 467. Transfer of means of security upon assignment of claim

1.With the assignment of the claim to the new creditor, the security rights securing the claim for the mortgage, as well as the rights from
the surety established by this requirement.
2. The right to priority satisfaction in the case of compulsory execution or bankruptcy proceedings related to
the assigned claim may be exercised by the new creditor.

Article 468. Transfer of documents and information

The original creditor is obliged to inform the new creditor of the information necessary for the exercise of the right of claim, as well as
transfer the documents at his disposal necessary to confirm the demand.

Article 469. Certification of assignment

The original creditor is obliged to issue to the new creditor at his request an officially certified document on
concession. The costs of certifying such a document shall be borne by the new creditor.

Article 470. Objections of the debtor

The debtor has the right to present to the new creditor the objections and counterclaims that he had at the time of the assignment
claims against the original creditor.

Article 471. Notice of assignment

1. The debtor has the right to fulfill his obligation in favor of the original creditor until he is informed of the assignment
requirements.
2. If the creditor notifies the debtor that he has ceded his claim, then in relation to the debtor he has no right to dispute
the validity of the assignment, of which he notified the debtor, even if in reality it was not made or is
invalid.
3. The notice can be revoked only with the consent of the person who was indicated as the new creditor.

Article 472. Multiple assignment

If the initial creditor agrees on the assignment of the same claim with several persons entitled to
the debtor will be the one with whom the original creditor established a relationship earlier than others.

Article 473. Transition of a claim into force of law

With regard to the transfer of a requirement by force of law or a court decision, the rules provided for in Articles 466 - 472 shall apply.
of this Code.

Article 474. Transfer of other rights

The rules on the assignment of a claim are accordingly applied to the transfer of other rights, unless otherwise provided by law.

Chapter 8. Transfer of Debt

Section 475. Transfer of Debt

A third party under a contract with a creditor can take over the debt in such a way as to take the place of the original debtor.

Article 476. Transfer of debt by agreement with the debtor

1. If a third party, in agreement with the debtor, assumes the debt, then the validity of the agreement depends on the consent of the creditor.
2. If the creditor refuses to agree, the transfer of the debt is considered invalid.

Article 477. Objections of the person who took over the debt

1. The person who has assumed the debt may raise objections against the creditor's claim based on the legal relationship between
the creditor and the original debtor. Such a person cannot present for offset a claim belonging to the original
to the debtor.
2. The person who has assumed the debt cannot raise objections to the creditor based on such a legal relationship between him and
the original debtor, which is the basis for the transfer of debt.

Article 478. Termination of surety and pledge rights

In the event of a debt transfer, all sureties and pledge rights provided to secure it are terminated.

Chapter 9. The plurality of creditors or debtors in an obligation

§ 1. Joint and several creditors

Article 479. Joint and several powers

If several persons are entitled to demand performance in such a way that each of them can demand performance in full, and on
the debtor is assigned only a one-time execution, they are jointly and severally entitled persons - joint and several creditors.

Article 480. Grounds for the emergence of joint and several powers

Joint and several powers arise by virtue of a contract, law or the indivisibility of the subject of the obligation.

Article 481. Performance of an obligation to any creditor

The debtor may, at his discretion, fulfill the obligation to any creditor, if one of the creditors did not present to him
a claim with the requirement specified in Article 479 of this Code.

Article 482. Fulfillment of an obligation to one of the creditors

The fulfillment of an obligation in full to one creditor releases the debtor from obligations to other creditors.

Article 483. Consequences of refusal of one of the joint and several creditors

If one of the joint and several creditors waives the claim against the debtor, then the debtor is released from paying that part
which was due to the given creditor.

Article 484. Inadmissibility of using facts related to another creditor

The debtor cannot use facts in relation to one of the creditors that are related to the other creditor.

Article 485. Rights of the heirs of a joint and several creditor

If the joint creditor has several heirs, only that part of the right to the debt is transferred to each of them, which
corresponds to his hereditary share.

Article 486. Obligations of a joint and several creditor to other creditors

1. The joint and several creditor, who has completely received the performance from the debtor, is obliged to issue to the remaining creditors the amount owed to them.
share.
2. In mutual relations, joint and several creditors have equal shares, unless otherwise established between them.

§ 2. Joint and several debtors

Article 487. Joint and several obligations

If the performance of the obligation is imposed on several persons in such a way that each of them must participate in the performance
obligations in full, and the creditor has the right to demand only a one-time performance, they are joint and several
debtors (joint and several obligation).

Article 488. Grounds for the emergence of a joint obligation

A joint and several obligation arises by virtue of a contract, law or the indivisibility of the subject of the obligation.

Article 489. Right of the obligee to demand performance from any obligor

The creditor may, at his discretion, demand performance from any debtor, in whole or in part. Before execution
obligations in full obligations of the remaining debtors remain in force.

Section 490. Counterclaim of a joint and several debtor against a creditor

The joint and several debtor is entitled to present to the creditor all counterclaims that arise from the essence of the contract or for which
only he has the right, or which are common to all joint and several debtors.

Article 491. Consequences of the fulfillment of an obligation in full by one of the debtors

The fulfillment of the obligation in full by one debtor frees the remaining debtors from fulfillment. The same rule applies to
in relation to the offset made by the debtor to the creditor.

Article 492. Inadmissibility of using facts related to another joint and several debtor

The facts connected with one of the joint and several debtors can be used only in relation to this person, if from the essence
obligations do not imply otherwise.

Article 493. Claim against one of the joint and several debtors

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Filing a claim against one of the debtors does not deprive the creditor of the right to bring a claim against the rest of the debtors.

Article 494. Consequences of Delay in Acceptance of Performance

1. The consequences of the creditor's delay in accepting performance from one of the joint and several debtors shall also apply to the rest.
joint and several debtors.
2. The consequences of failure to comply with the deadlines for performance by one of the joint and several debtors cannot be used in relation to
other joint and several debtors.

Article 495. Obligations of heirs of joint and several debtors

If one of the joint and several debtors has several heirs, these heirs are obliged to fulfill the obligation in proportion to their
hereditary share. This rule does not apply if the requirement is indivisible.

Article 496. Consolidation of the creditor's claim with the debt of one of the joint and several debtors

If the creditor's claim is combined with the debt of one of the joint and several debtors, with respect to the remaining debtors, the obligation
terminates in the amount attributable to the share of this debtor.

Article 497. Right of recourse in the performance of an obligation in full by one of the debtors

1. The debtor who has fulfilled the joint and several obligation has the right of recourse against the remaining debtors
in proportion to their shares, but minus their share, unless otherwise provided by an agreement or law.
2. If it is impossible to determine the scope of liability of the debtors, they are equally responsible to each other.

Article 498. Consequences of insolvency of a joint and several debtor

If one of the debtors turns out to be insolvent, the share attributable to him is proportionately distributed among the others.
solvent debtors.

Article 499. Compensation to a joint and several debtor

If only one joint and several debtor benefited from the joint and several obligation, then the joint and several debtor who did not receive such
benefits, may require satisfaction to fulfill its obligation.

Article 500. Consequences of the expiration of the limitation period

Suspension or termination of the course of the limitation period in relation to one of the joint and several debtors shall have no effect in relation to
other debtors.

Section 2. Certain types of obligations

Chapter 1. Purchase and sale. Mena

§ 1. General Provisions

Article 501. Concept. Content

1. Under the contract of sale, the seller is obliged to transfer to the buyer the ownership of the property, related documents and
deliver the goods.
2. The buyer is obliged to pay the agreed price to the seller and to accept the purchased property.
3. If the contract does not explicitly indicate the price, the parties may agree on the means of determining it.

Section 502. Expenses related to the sale of a movable

The costs associated with the transfer of the thing, in particular for weighing, measuring and packing, are borne by the seller, and the costs,
associated with the receipt and transfer of goods from the place of conclusion of the contract to another place, - to the buyer, if the contract does not
otherwise provided.

§ 503. Expenses related to sale of immovable

The buyer of immovable property shall bear the costs of execution of the purchase and sale agreement, notarization
transfer of ownership, registration in the public register and submission of the necessary documents.
(As amended by the Law of Turkmenistan dated March 30, 2007 - Bulletin of the Mejlis of Turkmenistan, 2007 No. 1, article 40)

Article 504. Obligations of the seller to forward the goods

1. If the seller transfers the goods to the carrier under the contract and these goods are not clearly marked with any identification marks or any
or by other means, the seller must inform the buyer about the shipment of the goods and send him a detailed list of the goods.
2. If the dispatch of the goods is entrusted to the seller, he must conclude the contracts necessary for the delivery of the goods to the agreed place.
and the conditions usual for such transportation.
3. If the seller is not obliged to insure the goods during transportation, he, at the request of the buyer, must transfer to him all available
information that is necessary to conclude such an insurance contract.

Article 505 - declared invalid by the Law of Turkmenistan dated March 30, 2007 - Vedomosti of the Mejlis of Turkmenistan, 2007,
No. 1, article 40.

Article 506. Passing the risk of accidental destruction of a thing

1. Simultaneously with the transfer of the sold thing, the risk of accidental loss or damage to the thing passes to the buyer, if the parties do not
agreed otherwise.
2. If the seller, at the request of the buyer, sends the sold thing to a place other than that provided for in the contract, the risk
accidental loss or damage of the thing passes to the buyer from the moment the seller transfers the thing to the carrier or the person responsible
for doing this.

Article 507. Acceptance of goods

The goods are considered accepted if the buyer takes an action indicating acceptance.

Article 508. Grounds for cancellation of the contract

1. Any party to the contract may refuse to fulfill its obligations if, after the conclusion of the contract, it turns out that there is
a real danger that the other party will not fulfill a significant part of its obligations.
2. Refusal is inadmissible if the security of the parties is ensured.

Article 509. Sale of goods to several persons

If the seller has sold the same product to several persons, priority is given to the buyer in whose possession he entered the
first of all, and if the property was not transferred to any of them, - to the one with whom the contract was previously concluded.

Article 510. Delivery of sold goods in parts

When delivering the sold goods in parts, if due to the failure of one party to fulfill only one delivery obligation
a real danger has been created that the obligations and subsequent deliveries will not be fulfilled, the other party may, after
withdraw from the contract at the appropriate time.

Article 511. Obligation to hand over a thing without defects

The seller must deliver the item free of defects to the buyer.

Article 512. Thing free from defects

1. A thing has no defects if it corresponds to the conditioned quality. If the quality has not been determined in advance, the thing
is considered to be free from defects if it is suitable for the use stipulated by the contract, or usual.
2. It is equivalent to a defect if the seller transfers only one part of the thing, a completely different thing, in small quantities, or if
the flaw has one part of the thing, unless the flaw has no significant effect on performance.

Article 513. Sale of an object free from the rights of third parties

1. The seller is obliged to provide the buyer with the sold item without encumbrance with the rights of third parties.
2. Equated to the presence of encumbrance with the rights of third parties, if a non-existent right is registered in the land register.

Article 514. Obligations of the seller when selling a thing that has a defect

1. If the thing sold has a defect, the seller must either correct this defect, or, in the case of a generic thing,
replace the thing at the time necessary for this.
2. The seller shall be responsible for the reimbursement of the costs necessary to correct the costs, including transportation, travel, cost
performance of work and materials.
3. The seller may refuse both to correct the defect of the thing and to replace it if this requires disproportionately large costs.
4. If the seller, for the purpose of rectifying the defect, transfers to the buyer an item that does not have defects, he may require
buyer's return of the defective item.

Article 515. Buyer's right to terminate the contract

1. The buyer may, in connection with the defect of the thing, demand the termination of the contract in accordance with Article 366 of this Code.
2. The seller must reimburse the buyer for the costs incurred.

Article 516. Demand for price reduction

If the buyer does not require either the correction of the defect of the thing or its replacement with a new one after the expiration of the time given to the seller for this time and
nor cancellation of the contract, he may demand a price reduction in the amount necessary to correct the defect. Means
the value that existed at the time of the conclusion of the contract.

Article 517. Right to refuse to accept goods

1. The buyer has the right to refuse to accept the goods if the seller has delivered the goods in less quantity than is provided.
agreement. If the buyer accepts such a product, he will pay the cost in proportion to the negotiated price.
2. If the quantity of the goods exceeds the one stipulated by the contract, the buyer can accept this quantity and is obliged to pay for it.
in proportion to the contractual price, or accept only the amount provided by the contract, and return the surplus at the expense of
the seller.

Article 518. Procedure for compensation for damage related to purchase and sale

Damage caused by a defect in a thing or violation of other conditions determined by the contract shall be compensated in accordance with the general
rules.

Article 519. Acceptance by the buyer of a thing that has a defect

1. If the buyer, when accepting the thing, knew about the defect of the thing and nevertheless accepted it, he does not have a right of claim in connection with
disadvantage of things.
2. If the buyer is an entrepreneur, he is obliged to immediately check the thing, otherwise he loses the right
claims in connection with the defect of the thing, if within the appropriate time period after the discovery of the defect or within the period during which he
should have become aware of the presence of a defect, will not submit a claim to the seller.
3. If the seller was deliberately silent about the defect of the thing, he cannot exercise the right provided for in this article.

Article 520. Expiry date of a thing

If the seller determines the shelf life of the thing, it is assumed that the deficiency of the thing discovered during this period gives
the buyer the right to claim.

Article 521. Exclusion of liability of the seller

The contract may limit or exclude liability for the sale of a thing that has a defect, however, such an agreement
it is not valid if the seller was deliberately silent about the lack of the item.

Article 522. Transfer of rights or other property

1. The rules governing the sale and purchase of things also apply to the sale and purchase of rights or other property.
2. In the event of a sale of a right, the seller undertakes to substantiate the validity of this right and to bear the transfer costs.
3. If a right is sold that allows the possession of a thing, the seller is obliged to transfer to the buyer the thing that is free from
disadvantages.

Article 523. Repeated sale of a thing

If the thing is sold several times, the right securing the obligation is transferred to each subsequent buyer. Buyer
may, within the limits of its rights, make a claim against each seller in the series of these purchases and sales.

Article 524. Right to withhold a thing

If the buyer did not accept the thing on time, the seller is obliged to keep the thing and in this case he has the right to retain this thing until
until he is paid compensation for the storage of the thing.

§ 525. Return of thing by buyer

If the buyer has accepted the thing, but rightfully wants to return it, he must take care of its storage; the buyer has the right to leave with
the item itself until the seller reimburses the related costs.

Article 526. Expenses for storage of things

The party obliged to keep the thing may, at the expense of the other party, store the thing in the warehouse of a third party, if this does not entail
disproportionate costs.

Article 527. Rights of the keeper of the thing

1. A party that stores a thing in accordance with the rules specified in Articles 524-526 of this Code may sell this thing in compliance with
the relevant rules if the other party hesitates to accept the thing or to reimburse storage costs; about this she should
inform the other party.
2. The party that sells the thing is entitled to retain from the proceeds an amount corresponding to the costs of storage and sale.
things, and the remaining amount must be transferred to the other party.

Article 528. Peculiarities of storage of perishable food

If, in the cases provided for in Articles 524 and 525 of this Code, the thing is perishable or it is depreciated,
or its storage is associated with high costs, the party entrusted with the storage is obliged to sell it in accordance with
the conditions provided for in Article 527 of this Code.

§ 2. Purchase and sale with payment by installments

Article 529. Concept

When buying and selling by installments, the seller is obliged to transfer the thing to the buyer before the price is paid. The buyer pays the price according to
parts at certain times.

Article 530. Form of the contract of purchase and sale by installments

1. The contract of purchase and sale by installments must be concluded in writing.
2. The contract must indicate:
a) the amount of payment in cash;
b) the amount to be paid in installments and the time of payment;
c) the size of real annual interest.
3. The seller must provide the buyer with copies of the documents.

Article 531. Presumption of the conclusion of a contract from the moment of transfer of a thing

If the contract is concluded without observing the requirements of Article 530 of this Code, it is considered concluded from the moment of transfer
things. In this case, the buyer is obliged to pay only the price of the thing without interest.

Article 532. Bilateral restitution in case of default

If the seller reserves the right to withdraw from the contract in the event that the buyer does not fulfill the assigned
obligations, then in case of refusal, each of the parties is obliged to return to the other party everything that was received under the contract. Agreement,
the opposite is not valid.

§ 3. Ransom

Article 533. Concept

If the seller has agreed on the right to redeem under the sale and purchase agreement, then the redemption is considered valid when the seller declares
the buyer that he wishes to exercise his right. Such a declaration does not require compliance with the form set for
sales contracts.

Article 534. Price of redemption

The buyback is made at the original price. In this case, the person making the reverse sale has the right to demand compensation
expenses incurred by him before the redemption in relation to the purchased item, to the extent that the value of the item has increased due to
these costs. The device with which this person has equipped the item being purchased may be seized by him.

Article 535. Fate of property in the course of purchase and sale

The retailer is obliged to hand over the purchased item with its accessories to the redeemer.

Article 536. Compensation for harm incurred before redemption

If the person who carries out the reverse sale, before exercising the right of redemption, through his own fault, allows the deterioration, destruction of the thing or
the impossibility of issuing the purchased item for another reason or significantly changes this item, then it bears
liability for losses incurred due to this reason.

Article 537. Invalidity of disposition of a thing prior to redemption

If the retailer has disposed of the purchased item prior to exercising the right of redemption, then he is obliged
eliminate the resulting rights of third parties.

Article 538. Period of limitation of redemption

The redemption period cannot exceed five years. Extension of this period is unacceptable.

§ 4. Option

Article 539. Option

The parties may agree that the buyer unilaterally has the right to purchase a particular item up to a certain
time or a certain event (purchase option) or under the same conditions, the seller has the right to sell the item to the buyer
(sell option). In relation to option contracts, the rules of sale and purchase apply, unless the parties have agreed otherwise.

§ 5. Right of first purchase

Article 540. Concept

1. A person entitled to a pre-emptive purchase may exercise this right if the obligated person concludes with a third party
contract of sale.
2. The right of pre-emptive purchase is not transferred to other persons and does not pass by inheritance, unless otherwise provided.

§ 541. Obligation to notify about pending sale of thing

1. The obligated person must immediately inform the holder of the pre-emptive right of the content of the contract, which
he intends to conclude with a third party.
2. The right of pre-emption is exercised by communication to the obligated person. Through communication between the authorized
the person and the obligated person conclude a purchase and sale agreement on the terms that the obligated person will offer to a third party.
3. The holder of the preemptive right to purchase may exercise this right only within the period established by the obligated
face.

Article 542. Invalidity of agreement on non-application of the right of pre-emption

An agreement existing between the obligated person and a third party is invalid if the sales contract is thereby placed in
dependence on not using the right of pre-emption or if the obligated person has the right to withdraw from the contract when
use of the right of pre-emption.

Article 543. Fulfillment of additional obligations

1. If a third party has assumed an additional obligation under the contract, the fulfillment of which is possible for the owner of the right
he does not have a preferential purchase, the latter must pay its cost in return for an additional obligation.
2. If the monetary value of the additional obligation is impossible, then the use of the right of preferential
purchases; an agreement on an additional obligation becomes invalid if the agreement is concluded with the aim of circumventing the right of the preemptive
purchases.

Article 544. Purchase and sale subject to the approval of the thing

A purchase and sale agreement may be concluded subject to the approval of the thing, if the buyer does not reject the thing within the agreed period.
If the thing is rejected, the parties are obliged to return to each other what they received under the contract.

§ 6. Mena

Article 545. Concept

1. The parties to the barter agreement are responsible for the mutual transfer of ownership of the property.
2. Each of the parties to the exchange agreement is considered the seller of the property that it exchanges and the buyer of what it receives in return.

Article 546. Inequality of the property being exchanged

If the property being exchanged is unequal, by agreement of the parties, part of the property may be reimbursed in cash.

Article 547. Rules applicable to me

In relation to the barter agreement, the relevant sales rules apply.

Chapter 2. Giving

Article 548. Concept

Under the donation agreement, the donor transfers the property free of charge into the ownership of the donee with the consent of the latter.

Article 549. Conclusion of a donation contract. Gift promise

1. A donation agreement is considered concluded from the moment of transfer of property.
2. If the subject of donation is property to which the right of ownership arises only if the established
the law of the form, for a donation contract, it is mandatory to comply with this form
3. A promise of a gift gives rise to an obligation to donate if the promise is notarized.

Article 550. Inadmissibility of donation

A person is not entitled to donate property if the donation of property puts dependent persons in a difficult economic situation
donor.

Article 551. Lack of donated property

If the donor with malicious intent conceals the lack of the donated property, he is obliged to compensate the donee for the damage caused in connection with
this harm.

Article 552. Donation

1. The parties may establish that the validity of the donation contract depends on the fulfillment of a particular condition or achievement
a specific purpose. This purpose can also serve the general benefit (donation).
2. The fulfillment of the condition may be required, in addition to the donor, by each person in whose interests the condition was set.
3. If the donee does not fulfill the conditions, the donor may withdraw from the contract.

Article 553. Cancellation of donation due to ingratitude of the donee

1. The donation can be canceled if the donee shows great ingratitude towards the donor or his relatives
relatives.
2. If the donation is lawfully canceled, the donated property may be claimed by the donor.
3. The donation may be canceled within one year after the donor becomes aware of the circumstance giving the right
cancel the donation.

Article 554. Claiming the presented thing

1. If after the donation the donor finds himself in a difficult situation and he cannot support himself and his dependents, he
has the right to demand the donated thing from the recipient of the gift, if this thing really exists.
2. The claim of the thing is not allowed if the donor is in poverty due to his intent or gross negligence.

Chapter 3. Property lease

Article 555. Concept

Under a property lease agreement, the lessor is obliged to transfer the property to the lessee for a specified time. The employer is obliged to pay
to the lessor the agreed rental payment.

Article 556. Transfer of the rented thing in good condition

The lessor is obliged to transfer the rented thing to the lessee in a condition suitable for use, provided for by the contract, and for
throughout the entire time of hiring to maintain such a state of things.

Article 557. Obligation to hand over a thing free of defects

The renter must hand over to the renter a thing free of defects.

Article 558. Transfer of a thing free of the rights of third parties

The lessor is obliged to transfer the thing to the renter without encumbrance with the rights of third parties.

Article 559. Thing free from defects

Leased property is free from defects if it has the agreed properties. If these properties are not specified,
leased property is recognized as free from defects if it is suitable for the activities provided for by the contract or
for normal use.

§ 560. Reduction of rent due to lack of thing

1. If the thing rented out turns out to be inadequate, the rent to the lessor is reduced as much as it has decreased
suitability of property; when the defect is corrected, this right becomes invalid. A minor flaw is not taken into account.
2. The contract of lease of dwelling premises, concluded to the detriment of the interests of the tenant, is invalid.

§ 561. Compensation for losses incurred due to lack of thing

1. If a defect that reduces the suitability of the property exists at the time of the conclusion of the contract or is revealed later in
due to circumstances for which the lessor is responsible, or if the lessor delays in correcting the defect,
the employer can demand compensation for damages without losing the right to demand a reduction in the rent.
2. If the lessor hesitates to correct the defect, the tenant may eliminate it himself and demand reimbursement of expenses.

Article 562. Consequences of not making a claim regarding the lack of a thing

If by the time of the conclusion of the contract the tenant is aware of the lack of property and he does not make a claim in this regard, he does not have
the rights provided for in Article 560 of this Code arise.

Article 563. Invalidity of agreement on release from liability
Page 11

An agreement by virtue of which the liability of the lessor for the defects of the leased property is excluded or
limited if the landlord deliberately concealed the shortcomings.

Article 564. Obligation to allow influence when renting premises

The tenant of the premises must allow such measures in relation to the subject of the lease that are necessary for the proper
maintenance of a room or building. The landlord should, if possible, notify the employer of these activities and not
allow the implementation of activities that are not caused by the need.

Article 565. Cancellation of contract

1. If the rented premises in whole or in part are transferred to the tenant out of time, or he was subsequently deprived of the right
use, the employer may withdraw from the contract without observing the term provided for the termination of the contract. Refusal from
the contract is allowed only if the lessor does not eliminate the circumstances within the time period established by the tenant,
obstructing use.
2. There is no need to set a time limit if, due to circumstances giving rise to the cancellation of the contract, the employer
lost interest in this agreement.
3. An agreement on the lease of a dwelling that excludes or restricts the right to terminate the contract is void.

Article 566. Termination of a residential premises contract by a tenant

If the dwelling or other premises intended for people to live in it is in such a state that it
creates a significant danger to their health, the employer may terminate the employment contract without meeting the deadlines. With this right
the employer also possesses if he knew about the danger at the time of the conclusion of the contract or did not make a claim in this regard.

Article 567. Obligations of the lessee upon discovery of a defect in the rented thing

If the rented property has a deficiency or it becomes necessary to take measures to protect the property from
unforeseen danger, the tenant must immediately inform the landlord about it. The same rule applies to
cases if a third party claims its rights to the property.

Article 568. Encumbrances in relation to rented property

The legal encumbrances in relation to the rented property are borne by the lessor.

Article 569. Obligations of the lessor

1. The renter is obliged to reimburse the renter for the necessary expenses related to the thing.
2. The obligation to reimburse other expenses is determined in accordance with the rules on the conduct of other people's affairs without a mandate.

Article 570. Rights of a lessee to things with which he has equipped the leased thing

1. The tenant is entitled to keep with himself what he has equipped the leased property.
2. The landlord of the dwelling may replace the exercise of the right specified in paragraph 1 of this article by the corresponding
compensation, except in cases where the tenant, for good reason, does not agree with the landlord.

§ 571. Liability for normal wear and tear of a thing

The lessee is not responsible for the change or deterioration of the rented thing caused by the use provided for
agreement.

Article 572. Expenses for current repairs

1. Carrying out routine repairs is usually the responsibility of the employer. He is not allowed to alter or reconstruct a residential
premises without the consent of the landlord.
2. The employer is obliged to perform the work at his own expense.
3. The landlord may demand compensation for damages caused by the failure of the tenant to fulfill the obligations provided for
paragraph 1 of this article.

Article 573. Consent of the lessor to sublease

The lessee is not entitled to transfer the rented thing to a third party (sub-lease) without the consent of the lessor. Not recognized as a third party
family members of the employer.

Article 574. Inadmissibility of refusal of the lessor for sublease

The landlord cannot refuse to sublease the dwelling if, on good grounds, the tenant wishes to partially
or completely lease the dwelling he rented to a third party. This rule does not apply if the identity of the third party
gives significant grounds for refusal, the living space is unnecessarily overloaded or, for other reasons, sub-rent is unacceptable for
lessor.

Article 575. Fate of sublease upon termination of employment relationship

If the sub-lease is intended to circumvent the guarantees of termination of the contract, at the end of the lease relationship, the landlord assumes the rights and
responsibilities that existed between the employer and the sub-tenant.

Article 576. Amounts of securing employment relations

1. If the contract of lease of residential premises entrusts security for the fulfillment of the obligation, the amount of security is not
must exceed three times the rent. If the amount must be paid in advance, the employer is entitled to
make it monthly in equal installments within three months.
2. The security paid in advance shall be subject to statutory interest and, at the end of the employment relationship,
returned to the employer along with interest.
3. Any other agreement concluded to the detriment of the employer is invalid.

Article 577. Procedure for paying rent

1. The rent must be paid at the end of the term of the lease. If the payment of the rent is determined by segments
time, it must be entered after these periods of time.
2. Payment of additional costs is obligatory only if there is an agreement between the parties.

Article 578. Consequences of failure to pay rent due to the fault of the employer

If the employer, through his fault, has obstacles to the implementation of the use, he is not exempted from paying the rent.

Article 579. Early termination of the contract on the initiative of the tenant of residential premises

The tenant of the residential premises is entitled to terminate the lease agreement ahead of schedule if he warns about it earlier than a month in advance
landlord and propose a solvent and acceptable tenant willing to be the tenant for the remainder of the term
hiring.

Article 580. Requirements of a lessee as opposed to requirements of a lessor

If, contrary to the claims for rent, the employer has the right of retention or the right to set off another claim arising from
from the employment relationship, the employer can use these rights in cases where the contract provides for something else, if he
will warn the landlord in advance.

Article 581. Termination of the contract on the initiative of the lessor

The landlord may terminate the contract ahead of schedule if the tenant, despite the landlord's warning, to a large extent
damages the rented item or creates a real risk of such damage.

Article 582. Termination of contract due to failure to pay rent

The landlord can terminate the contract early if the tenant has not paid the rent for three months.

Article 583. Termination of employment relationship by expiry of term

1. The employment relationship terminates at the end of the contract.
2. If the lessee uses the property even after the expiration of the term, and the lessor does not dispute this, the contract is renewed for
indefinite term.
3. If the term of the lease agreement has not been determined, the lease relationship shall be terminated by an application for termination of the agreement.

Article 584. Right to demand extension of lease contract for an indefinite period

If the lease agreement for residential premises is concluded for a specified period, the tenant may not later than two months before
termination of the employment relationship by a written statement to request an extension of the employment contract for an indefinite period, if
the landlord has no good reason to terminate the lease.

Article 585. Term of termination of the contract

The term for termination of the lease agreement is three months, unless due to the circumstances of the case or from the agreement of the parties
it follows otherwise.

Article 586. Termination of the contract of lease of residential premises in the presence of valid reasons

1. The landlord can terminate the lease only if there are good reasons.
2. The reason is valid:
a) if the employer has been guilty and to a large extent in breach of his obligations;
b) if the landlord needs living space directly for himself or his close relatives;
c) if the tenant refuses to pay the increased rent offered by the lessor, which corresponds to
the hired board existing on the market.
3. If the subject of the contract is a furnished living space, the landlord may terminate the contract in compliance with the deadline
termination.

Article 587. Form of termination of a contract

Termination of the lease agreement for residential premises must be formalized in writing.

Article 588. Extension of the contract of lease of residential premises on the initiative of the tenant

The tenant has the right to demand from the landlord the extension of the lease agreement for the dwelling, regardless of the existing with the landlord
good reasons if the expiration of the term of employment puts the employer or his family members in a difficult position. Heavy
a provision is also considered when the lease of another dwelling on acceptable terms cannot be carried out.

Article 589. Obligations of an employer upon termination of a lease contract

1. Upon termination of the property lease agreement, the tenant is obliged to return the property to the lessor in the state in which
received from him, subject to normal wear and tear or in the condition stipulated by the contract.
2. The lessee of the land plot does not have the right of retention in order to satisfy his claims.
3. If the lessee has transferred the property for use to a third party, the lessor may, after the termination of the lease contract
demand the return of the property from a third party, if he does not establish an employment relationship with the sub-tenant.

Article 590. Compensation for damage caused by non-return of leased thing

1. If the tenant does not return the rented property at the end of the employment relationship, the landlord has the right to demand that
indemnification for the payment of the established fee for the period of delay in the return.
2. An agreement by which the employer is obliged to compensate in an amount exceeding the inflicted is void.
harm.

Article 591. Right of Pledge of Lessee's Things

The landlord of a land plot, house or dwelling in order to secure his claims arising from the lease relationship,
has the right to pledge the things contributed by the tenant. The right of pledge expires simultaneously with the removal of things from the rented area,
if it is done in accordance with normal life relationships.

Article 592. Form of a lease agreement for a land plot

A lease agreement for a land plot for a period exceeding one year must be drawn up in writing. In case of non-compliance with the form
it is assumed that the contract is concluded for an indefinite period. Termination of the contract is allowed only after the first year.

Article 593. Procedure for termination of an agreement concluded for a period exceeding ten years

If the lease agreement is concluded for a period exceeding ten years, after ten years, each of the parties may terminate the contract within the term,
established by Article 585 of this Code.

Article 594. Transfer of the rights of the employer to the members of his family

If a lease agreement is concluded for a dwelling and the tenant in it, together with his family members, conducts a common household
farm, in the event of the death of the tenant, his family members enter into legal relations with the lessor. They are entitled to the established
the statutory deadline for terminating the lease.

Article 595. Legal succession upon alienation of leased property

If the lessor alienates the leased property to a third party after the transfer of this property to the lessee,
the acquirer replaces the lessor and the rights and obligations arising from the lease are transferred to him.

Article 596. Period of limitation for claims for compensation for harm

1. In connection with the change or deterioration of the property, the lessor has the right to demand compensation for damage, and the lessee has the right
file a claim for expenses incurred within six months.
2. The course of the limitation period at the request of the lessor for compensation for damage begins from the moment the property is returned, and the period
limitation at the request of the tenant - from the moment of termination of the lease of the property.

Article 597. Disputes between spouses upon dissolution of marriage

1. If the spouses, upon divorce, do not reach an agreement on which of them should live in the rented dwelling, the dispute shall be resolved by the court.
2. It does not matter to the court which of the spouses is the employer. If the court recognizes the spouse's right to living quarters,
who is not an employer, that spouse becomes a party to the employment relationship.

Article 598. Protection of the rights of the employer

The tenant has the right to defend his property from any violator, including the owner.

Chapter 4. Leasing

Article 599. Concept. Content

1. Under a lease agreement, the lessor is obliged to transfer to the lessee for use certain property for the specified
contract term. The lessee is obliged to pay remuneration at a specified frequency.
2. The lessor is obliged to manufacture or acquire the property provided for by the contract.
3. The lessee under the agreement may be obliged or have the right after the expiration of the term of the agreement, which ends in full
amortization of the subject of the agreement, buy or rent the subject of the lease agreement. In all cases, the calculation of remuneration must
take into account the fact of depreciation. If there is no such provision in the contract, the lessee is entitled to buy the item.

Article 600. Form of leasing agreement

The lease agreement is concluded in writing. The contract must contain:
a) full price;
b) the amount of the lease remuneration and the timing of its payment;
c) the amount of the final payment and in case of early execution of the contract - the procedure for its calculation.

Article 601. Liability of the lessor

1. The lessor, in accordance with the rules of the lease agreement, is liable to the lessee for late delivery
property or non-performance thereof, as well as for the supply of property that has defects.
2. The parties may agree that the lessee, prior to making claims to the lessor, must demand
satisfaction from the supplier of the property.

Article 602. Liability of the lessee

In case of early termination of the contract through the fault of the lessee, the lessor cannot make claims that are not
concern his performance interests. Residual value is taken into account when determining requirements
leased property, the balance of interest on the lease interest and other saved expenses.

Article 603. Other rules applicable to leasing

In relation to leasing, the rules of the lease agreement are applied, which do not contradict Articles 599-602 of this Code.

Chapter 5. Rent

Article 604. Concept

1. Under a lease agreement, the lessor is obliged to transfer certain property to the lessee for temporary use and provide it for
during the lease term the opportunity to enjoy the fruits if they are received in the form of income resulting from the correct
housekeeping. The tenant is obliged to pay the agreed rent to the landlord. The rent can be defined as
in money and in kind. The parties may agree on other means of determining the rent.
2. With respect to the lease agreement, the rules of the lease agreement shall apply, unless otherwise specified in Articles 604-628 of this Code.

Article 605. Termination of a lease agreement concluded for a period exceeding ten years

If the lease is concluded for a period exceeding ten years, each of the parties, after this period, may terminate the lease.
relationship within six months, unless otherwise provided by the contract.

Article 606. Lease of a land plot together with inventory

1. If the land is rented out together with the inventory, the tenant is responsible for the maintenance of each part
inventory.
2. The tenant is obliged to replace the parts of the inventory that have become unusable for reasons beyond the tenant's control. The tenant is obliged
to compensate for the loss of the livestock listed as inventory, despite the correct management of the economy.
3. The tenant must have the inventory in this condition and during the lease period replace it in such a volume that corresponds to
an orderly economy. The separate inventory acquired by him by joining the general inventory turns into
the property of the lessor.

Article 607. Risk of accidental destruction of inventory

1. If the tenant of the land plot accepts the inventory according to the appraisal and undertakes the obligation at the end of the lease
to return such also according to the assessment, he bears the risk of accidental death and damage. Within the limits of proper housekeeping, he
can dispose of individual parts of the inventory.
2. At the end of the lease, the tenant must return the inventory to the landlord. The landlord can refuse to receive
the inventory purchased by the tenant, if it is excessive for the proper management of the land plot or excessive
roads; simultaneously with the refusal, the ownership of the not accepted inventory is transferred to the tenant. If there is a difference between
by appraisal of the inventory received and returned, this difference must be refunded in money. The assessment should be based on
the prices that were in effect at the time of the end of the lease are laid.

Article 608. Right of pledge of inventory

1. The tenant of the land plot has the right to pledge the inventory in his possession according to the
the lessor's requirements for the rental equipment.
2. The landlord can revoke the tenant's right to a deposit if he provides other security. He can free any part
inventory from the right of pledge, if he offers appropriate security for the value of these parts.

Article 609. Inadmissibility of prohibition on disposal of separate parts of inventory

The terms of the contract that impose on the tenant the obligation not to dispose of parts of the inventory or to dispose of them only with
the consent of the lessor, and also not to sell to the lessor, are only valid if the lessor undertakes to purchase
inventory at the end of the lease.

Article 610. Sublease

1. The lessee does not have the right to sublease without the consent of the lessor.
2. The lessor may declare a refusal to lease out certain parts of the leased property, if this causes him
significant damage.
3. The lessee is liable to the lessor for the fact that the sub-lessee or lessee has used the thing differently than this
allowed by the landlord. The lessor may directly suspend such use of the property by the sub-lessee, or
the employer.

Article 611. Early return of leased property

1. If the tenant returns the property before the end of the lease, he is exempted from the rent only if
in its place will propose a new solvent and acceptable tenant for the lessor. The new tenant must agree
accept a lease on the same terms.
2. If the tenant is unable to offer such a tenant, he must pay the rent until the end of the lease.

Article 612. Termination of an open-ended lease agreement

1. If the lease term is not determined when renting the property, termination of the contract is permissible only by the end of the lease year; he can
be terminated no later than one month after the end of the rental year.
2. These rules also apply if the lease relationship can be terminated earlier than the term established by law.

Article 613. Termination of a lease agreement in case of death of the lessee

1. In the event of the death of the tenant, both his heirs and the landlord can terminate the lease within six months.
after the end of the quarter of the calendar year.
2. The heirs may refuse to terminate the contract and demand an extension of the lease if they directly or
through third parties, they can carry out the correct economic use of the leased property.

Article 614. Compensation for damage in case of failure to return leased property

If the tenant does not return the leased property after the end of the lease, the landlord may require
rent for the delay in returning the property, as well as the benefits that the tenant received during this time or that he
would have received during the rental year. The landlord may also claim other damages.

Chapter 6. Lease of agricultural land

Article 615. Concept

1. Under a lease agreement for agricultural land, a land plot is leased out together with residential and
outbuildings serving for its economic use (enterprise), or without them.
2. Lease of agricultural land shall be subject to the lease rules, if the lease of agricultural land is not
established otherwise.

Article 616. Form of contract

The agricultural land lease agreement must be concluded in writing.

Article 617. Description of the leased property

When concluding a lease agreement, the lessor and the lessee draw up a description of the rented item, which must include
quantity, as well as the condition of the thing at the time of its transfer. The same rule applies when terminating a lease. Description
must contain an indication of the day it was made and must be signed by both parties.

Article 618. Obligations of the lessor and lessee

The lessor is obliged to transfer the rented thing to the lessee in a condition suitable for its intended use,
established by the contract, and maintain it in this condition during the entire lease term. The lessee is obliged to produce for his
invoice for current repairs of rented items, in particular residential and utility buildings, roads, trenches, drainages and hedges. It
is obliged to use the rented item in an appropriate manner.

Article 619. Pledge right of lessor

The lessor, in order to secure his claims arising from the lease agreement, has a pledge right to the things brought in by the lessee,
and also on the fruits of the rented thing. The lien cannot be exercised in relation to future claims for reimbursement.

Article 620. Reimbursement of Necessary Expenses

The lessor is obliged to reimburse the lessee for all necessary expenses incurred by the latter in relation to the thing.

Article 621. Reimbursement of expenses incurred with the consent of the lessor

Other expenses, except for those provided for in Article 620 of this Code, to which the lessor has agreed, he must reimburse
to the tenant at the end of the lease.

Article 622. Compensation for unharvested crops

1. If the lease terminates during the rental year, the landlord must reimburse the tenant for the cost of the not yet separated, but
according to the rules of good housekeeping of the fruits to be separated by the end of the lease year. In this case, it is necessary
take into account the risks associated with harvesting accordingly.
2. If the value specified in paragraph 1 of this article cannot be determined for reasons due to the season, then
the lessor must reimburse the tenant for the costs of obtaining these fruits to the extent that they are caused by proper management
farms.

Article 623. Obligations of the lessee to the new lessee

1. At the end of the lease, the lessee must leave the structures in good condition to the next lessee,
agricultural products in such quantity, which is necessary for farming until the next harvest, even if
such products were not transferred to him at the conclusion of the lease.
2. If the lessee is obliged to leave the products in a larger volume and in better condition than he received at the conclusion of the contract
lease, then he can demand from the tenant reimbursement of their cost.

Article 624. Obligation to return the leased item

1. The lessee is obliged, after the termination of the lease relationship, to return the leased property in a condition that ensures
a proper continuation of the farm that existed before the return.
2. The lessee does not have the right to retain the land plot to secure his claims against the lessor

Article 625. Right of the lessee to withdrawal

1. The lessee has the right to withdraw the device with which he has equipped the thing. The landlord can prevent the exercise of the right to
seizure by paying appropriate compensation, unless the lessee has a legitimate interest in the seizure.
2. An agreement precluding the tenant's right of withdrawal is valid only if a proportionate
refund.

Article 626. Requirements for the extension of a lease agreement

The lessee may require the lessor to renew the lease if:
a) the leased economy constitutes the economic basis of its existence;
b) the land plot constitutes the economic basis for the existence of his enterprise;

Article 627. Termination of a lease agreement with expiry of the term

The lease agreement terminates upon the expiration of the period for which it was concluded. An agreement concluded for a period of at least three years may
be extended indefinitely, if the other party does not declare to the offer of one party to extend the lease relationship
failure within three months. The offer and the refusal from it must be made in writing.

Article 628. Termination of a lease agreement concluded for an indefinite period

If the lease term is not set, then each party can terminate the lease by declaring the termination no later than the third
working day of the lease year with termination of the agreement at the end of the next lease year. If in doubt, the rental year
the calendar year is considered. An agreement that sets a shorter term for termination must be drawn up
writing.

Chapter 7. Franchising

Article 629. Concept

A franchise agreement is a long-term commitment that independent businesses mutually commit to as
the need to promote the sale of goods and the provision of services through the fulfillment of specific obligations.

Article 630. Obligations of the franchisor

1. The franchisor is obliged to provide the franchisee with non-property rights in a standard form, commodity and trade
marks, samples, packaging, concept of acquisition, marketing and organization of activities, and other information necessary for
sales promotion.
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2. The franchisor is obliged to protect the program of joint actions from the interference of third parties, to constantly improve it and
support the franchisee by learning business skills, providing information and improving
qualifications.

Article 631. Obligations of the franchisee

The franchisee is obliged to pay remuneration, the amount of which is essentially calculated taking into account the share of sales contributed to
the franchise program, with the prudence of a conscientious entrepreneur, actively carry out activities and accept services and
purchase goods through the franchisor or persons named by him, if this is directly related to the purpose of the contract.

Article 632. Transfer of information

When concluding an agreement, the parties must frankly and fully acquaint each other with the circumstances of the case related to
franchise and provide information to each other in good faith. They are obliged not to disclose the information entrusted to them and in
if the contract is not concluded.

Article 633. Form and content of the contract

A written form is required for the franchise agreement to be valid. In addition to clearly indicating bilateral obligations,
the duration of the contract, the terms of termination or extension of the term and other essential elements, the parties must make in
text of the agreement full description of the franchising program.

Article 634. Duration of the contract

1. The duration of the contract is determined by the parties, taking into account the demand, which is associated with the sale of this product and services.
2. If the duration of the contract is not specified or it exceeds ten years, either party is entitled to terminate the contract with
compliance with the one-year term for termination. If neither party exercises this right of termination
contract, the contract is extended for two years. In case of termination of the contract due to the expiration of the term or on the initiative of the parties,
the parties should, in compliance with the principle of mutual trust, endeavor to extend the contract on the same or amended terms until
the actual end of the business relationship.

Article 635. Loyal Competition

1. The parties are obliged to have loyal competition among themselves even after the end of the contractual relationship. Within these limits in
the franchisee may be subject to a prohibition on competition limited to a certain locality, which is not
may exceed one year.
2. If the prohibition of competition could endanger professional activities, the franchisee must be given
adequate compensation despite the expiration of the contract.

Article 636. Liability of the franchisor

The franchisor is responsible for the rights and information provided by the franchise program. If no rights exist or
the franchisor is guilty of violating other contractual obligations, the franchisee is entitled to reduce the indemnity. The size
the reduction should be determined by the opinion of an independent expert, the costs of which are borne by the parties.

Chapter 8. Loan

Article 637. Concept

Under the loan agreement, the lender undertakes to transfer the thing to the borrower for temporary free use.

Article 638. Liability of the lender

The lender is only liable for intent or gross negligence.

Article 639. Liability for defects

If the lender deliberately kept silent about the shortcomings of the right or the thing transferred for free use, then he is obliged to compensate
the damage caused to the borrower.

Article 640. Use of a thing for its intended purpose

The borrower cannot use the received thing otherwise than it is established by the contract. He is not entitled without permission
the lender to transfer the thing for use to a third party.

§ 641. Obligation to bear expenses

1. The borrower must bear the usual expenses for the maintenance of the thing transferred for free use.
2. The obligation of the lender to reimburse other expenses is determined on the basis of the rules for conducting other people's affairs without a mandate.
The borrower has the right to withdraw the device with which he equipped the thing.

Article 642. Wear of a thing

The borrower is not responsible for the change or deterioration of the thing, which occurred as a result of its use in accordance with
with the appointment established by the contract.

Article 643. Obligation to return

1. The borrower shall be obliged to return the thing received for gratuitous use upon the expiration of the term of the loan agreement.
2. If the term of the loan agreement is not determined, then the borrower must return the thing after the end of the use of the thing for the purposes,
specified in the loan agreement. The lender may demand the return of the thing earlier if a period sufficient for
the borrower could use the thing.
3. If the term of the loan agreement has not been determined and cannot be established on the basis of the purposes for using the thing, then the lender
may demand the return of the item at any time.

Article 644. Right to terminate a loan agreement

The lender may terminate the loan agreement if:
a) if, due to the occurrence of an unforeseen circumstance, he himself needs this thing;
b) if the borrower uses the thing not for the purpose established in the contract, in particular, if he, without having the right to do so,
will transfer the thing for use to a third party or if he exposes the thing to significant danger due to the lack of proper
discretion;
c) death of the borrower;
d) termination of the legal entity that is the borrower.

Chapter 9. Loan

Article 645. Concept

1. Under the loan agreement, the lender transfers money or other replaceable items into the ownership of the borrower, and the borrower undertakes to return
to the lender received with things of the same kind, quality and quantity.
2. A person who owes money or other replaceable things on another basis may agree with the creditor that the money or
things were considered the subject of a loan agreement.

Article 646. Form of contract

The loan agreement is concluded orally. By agreement of the parties, the written form can also be used. At the conclusion
orally, its validity cannot be established solely on the basis of the testimony of witnesses.

Article 647. Interest under the contract

1. Under the loan agreement, the parties may provide for the payment of interest, which should be in reasonable accordance with the maximum
the sizes established by the Central Bank of Turkmenistan. Invalid interest agreement in violation of this
regulations.
2. Unless otherwise agreed, interest shall be paid at the end of each year, and if the loan is to be repaid
before the end of the year, then upon return.

Article 648. Termination of contract

1. If the loan repayment period is not established, then it is determined by the application of the borrower or lender to terminate the contract.
2. Notification of termination of the loan agreement must be made three months in advance.
3. If interest is not charged, then the borrower has the right to return the loan without observing the deadline for the application for termination of the contract.

Article 649. Revocation of loan promise

A person who has promised to provide a loan may, if in doubt, withdraw this promise if the property
the situation of the other party will deteriorate significantly, as a result of which the satisfaction of the claim for repayment of the loan will be in jeopardy.

Chapter 10. Consecutively

Article 650. Concept

1. Under the work contract, the contractor undertakes to perform the work stipulated by the contract, and the customer is obliged to pay the contractor
agreed remuneration.
2. The subject of the contract can be both the manufacture or change of a thing, or another result achieved by performing the work.
or the provision of a service.
3. Drawing up an estimate associated with a contract may not be paid, unless otherwise provided by the agreement.

Article 651. Remuneration

1. Remuneration is considered tacitly agreed if the performance of the work in accordance with the circumstances can be expected

only for a fee.
2. If the amount of remuneration has not been established, then as such, if there are approved prices, it is considered
remuneration in accordance with rates, and in their absence, remuneration usually paid for such work.

Article 652. Exceeding the cost estimate

1. If the basis of the contract was the estimate of costs without guarantee of its correctness on the part of the contractor and it turns out that
the work cannot be performed without significantly exceeding the estimate, then if the customer terminates the contract for this reason
the contractor is only entitled to the claim specified in Article 668 of this Code.
2. The contractor is obliged to immediately inform the customer about the possible excess of the estimate.

Article 653. Obligation of the contractor to personally perform the work

The contractor shall be obliged to personally carry out the work only in cases where this arises from the circumstances of the case or from the nature of the work.

one
Article 653. General
contractor and subcontractor

1. If it does not follow from the law or the contract the obligation of the contractor to perform the work provided for in the contract personally, the contractor
by agreement with the customer, has the right to involve individuals and legal entities (subcontractors) in the performance of their obligations. IN
In this case, the contractor acts as the general contractor.
2. The general contractor who engaged a subcontractor in the performance of the work contract in violation of the provisions of paragraph 1
of this article or the contract, is liable to the customer for losses caused by the participation of the subcontractor in the performance
contract.
3. The general contractor is liable to the customer for the consequences of non-performance or improper performance
obligations by the subcontractor in accordance with the rules of paragraph 1 of Article 383 of this Code, and to the subcontractor responsibility for non-fulfillment or improper fulfillment by the customer of obligations under the work contract.
Unless otherwise provided by law or contract, the customer and the subcontractor are not entitled to present claims to each other related to
violation of the contract concluded by each of them with the general contractor.
(The code is supplemented by articleone
653 by the Law of Turkmenistan dated May 4, 2012 - Bulletin of the Mejlis of Turkmenistan 2012, No. 2, article 50)

Article 654. Assistance of the customer

1. The contractor may demand compensation for damage if the customer does not accept the work properly performed. The customer is obliged
to compensate for damage even if he does not perform the actions necessary for the performance of work.
2. The amount of compensation is determined based on the duration of the delay and on the amount of the established remuneration, as well as
taking into account the costs saved by the contractor due to delay and the benefits gained by him as a result of using his work
forces for the time of delay.

Article 655. Contractor's pledge right

To ensure the requirements under the contract, the contractor is granted a pledge right for the manufactured or repaired by him
movable things of the customer, if they are in his possession during manufacture or repair.

Article 656. Security mortgage when performing construction work

In order to secure its claims under the contract, a contractor erecting a structure or part of a structure may require
establishing a security mortgage on a land plot given for construction by the customer. If the work has not been completed yet, then he
may require the provision of a security mortgage only in the amount of that part of the remuneration that corresponds to
the work performed, taking into account the costs not included in the remuneration.

Article 657. Right of the customer to terminate the contract

Until the completion of the work, the customer can demand termination of the contract at any time. If the customer terminates the contract, then
the contractor has the right to demand the payment of a specified remuneration less what the contractor has saved or acquired in
as a result of termination of the contract.

Article 658. Obligation to perform work without defects

The contractor is obliged to perform the work in such a way that it has the promised properties and is free from defects,
which would destroy or reduce its value and suitability for normal or contractual use.

Article 659. Elimination of deficiencies

1. The customer may demand elimination of deficiencies if the work does not meet the promised properties. The contractor has the right to refuse
in the elimination of deficiencies, if it requires a disproportionate cost.
2. If the contractor delays the elimination of deficiencies, then the customer may independently eliminate the deficiencies and demand
reimbursement of expenses.

Article 660. Time limit for elimination of deficiencies. Termination of the contract or reduction of remuneration

1. The customer may appoint the contractor an appropriate period to eliminate the deficiencies specified in Article 658 of this
Of the Code, while stating that after this period, he will refuse to accept the elimination of deficiencies. If there are no flaws
promptly eliminated, then after the expiration of the term, the customer has the right to demand termination of the contract or reduction of remuneration
contractor.
2. No deadline is required if elimination of defects is impossible or if the contractor refuses to eliminate them, or special
the interests of the customer justify immediate termination of the contract or reduction of the contractor's remuneration.
3. Termination of the contract is not allowed if the defects only slightly reduce the value or suitability of the product for
use.

Article 661. Performance of work from the materials of the contractor

If the contractor undertakes to perform work from his own material, then he must transfer to the customer the manufactured item and the right
ownership of it. The purchase and sale regulations apply to the contract for the manufacture of a replaceable item.

Article 662. Obligation to prevent

The contractor is obliged to promptly warn the customer that:
a) the material received from the customer does not meet the quality requirements or is unusable;
b) if the customer's instructions are fulfilled, the work performed will not be free from defects that destroy or reduce it
value and suitability for normal or contractual use;
c) there are any circumstances beyond the contractor's control that create a risk of destruction or devaluation, and
product suitability for use.

Article 663. Payment of remuneration

Remuneration must be paid upon acceptance of the work performed. If the work is to be accepted in parts, and
remuneration is also established for the performance of individual parts, then the remuneration must be paid for each part in
the moment of acceptance of the relevant part of the work.

Article 664. Acceptance of work

1. The customer is obliged to accept the work performed in accordance with the contract, unless its acceptance turns out to be impossible due to
quality of work.
2. If the customer accepts a work that has shortcomings, knowing about them, then he has the right to present the requirements specified in Articles
659 and 660 of this Code, only if, when accepting a job, he stipulates his rights in relation to the discovered
disadvantages.

Article 665. Warranty

If the contractor has issued a warranty for the work performed, then the discovery of a defect during the warranty period gives rise to
the right to demand its elimination.

Article 666. Contractual exclusion of liability

An agreement that fully or partially excludes the contractor's liability for defects in the work is void if the contractor
deliberately kept silent about the shortcomings.

Article 667. Distribution of risk

1. The contractor bears the risk of accidental death or deterioration of the work performed until the time of acceptance of the work. If the customer is late
acceptance of the job, then the risk is transferred to him.
2. The contractor is not responsible for accidental loss or accidental deterioration of the material provided to him by the customer.

Article 668. Responsibility of the customer

The contractor may demand payment of part of the remuneration in accordance with the work performed and compensation not included in
remuneration of costs if the result of the work is lost or the quality of work has deteriorated, or if the work has become impossible even before
the moment of its acceptance due to deficiencies in the material provided by the customer, or due to an order made
by the customer regarding the performance of the work, and this was not facilitated by the circumstances for which the contractor is responsible.

Chapter 11. Tourist services

Article 669. Concept

Under the agreement on tourist services, the travel organizer (tourist company) undertakes to provide the tourist with
a set of all travel services. The tourist is obliged to pay the agreed fee to the travel organizer for
services provided.

Article 670. Replacement of a tourist by a third party

1. Before the start of the trip, the tourist may demand that a third party take part in the trip instead. Organizer
travel may object to a third party if the latter does not meet special requirements for participation in this trip
or if his participation would be contrary to the requirements of the law.
2. The travel organizer may demand from the tourist reimbursement of additional expenses caused by participation in the trip.
third party.

Article 671. Provision of guarantees and elimination of defects

1. The travel organizer is obliged to organize the trip in such a way that it has a guaranteed level and does not have
deficiencies that destroy or diminish the value or ability of travel to satisfy the usual or
the purposes stipulated by the contract.
2. If the trip does not have this level, then the tourist may require elimination of deficiencies. The travel planner can
refuse to remedy deficiencies if it requires a disproportionate cost.
3. If the travel organizer does not eliminate the shortcomings within a reasonable timeframe indicated by the tourist, then the tourist can eliminate himself
shortcomings and demand reimbursement of the necessary expenses incurred by him. The timing is optional if the organizer
travel will refuse to correct the deficiencies or if the tourist has a special interest in the immediate elimination of deficiencies.

Article 672. Reduction of remuneration

If the trip has disadvantages, then the reward decreases based on the time during which the disadvantages existed.
The remuneration is not reduced if the tourist does not report deficiencies.

Article 673. Termination of a contract on the initiative of a tourist due to a lack

1. If significant damage is caused to the trip due to a deficiency specified in Article 671 of this Code, then the tourist
can terminate the contract. The same rule applies if he cannot take part in a trip on a respectful
the reason that the organizer of the trip knows about.
2. Termination of the contract is permissible only if the travel organizer does not eliminate the deficiencies within a reasonable time. IN
there is no need to determine the time limit if the elimination of the deficiencies is impossible, or the travel organizer refuses them
elimination, or if the immediate termination of the contract is justified by the special interests of the tourist.
3. If the contract is terminated, the travel organizer loses the right to receive the established remuneration for his
services. However, he has the right to demand remuneration for services already rendered that did not have any defects.
4. If the contract provided for the return delivery of the tourist, then after the termination of the contract, the travel organizer is obliged to
deliver it back. In this case, additional costs are borne by the travel organizer.

Article 674. Compensation for harm

1. If the disadvantages of the trip have arisen due to circumstances for which the organizer of the trip is responsible, then
the tourist may, regardless of his rights to reduce remuneration or to terminate the contract, demand compensation for damage,
caused by non-performance.
2. If the trip is disrupted or was not organized properly, the tourist may demand an appropriate monetary
reimbursement for wasted vacation time.

Article 675. Limitation period

1. The requirements provided for by Articles 671 - 674 of this Code, the tourist can present to the organizer of the trip during
one month after the end of the travel period specified in the contract. After the expiration of the specified period, the tourist can present
his claims, if he is not guilty of the delay in the presentation of the claim.
2. The limitation period for the tourist's claims is six months. The limitation period begins on the day when the organizer
travel will reject the tourist's claim.

Article 676. Permissible limitation of liability

The travel organizer, in agreement with the tourist, may limit his liability to the size of the triple payment for his services,
if a:
a) the harm caused to the tourist will not be caused by willful or negligent actions;
b) the travel organizer is solely responsible to the tourist for damage caused by the fault of one of the
performers of individual travel arrangements.

Article 677. Cancellation of contract prior to travel

1. The tourist can withdraw from the contract at any time before the start of the trip.
2. Upon cancellation of the contract, the travel organizer loses the right to receive the agreed remuneration. However, he can
claim appropriate compensation, the amount of which is determined on the basis of the amount of the agreed remuneration less
expenses saved by the travel organizer, as well as deducting the benefits that he could receive as a result of providing his
services in a different way.

Article 678. Termination of a contract due to force majeure

1. If, due to the action of force majeure unforeseen at the conclusion of the contract, the journey will be significantly complicated
or there is a threat to its implementation, both the tourist and the travel organizer can terminate the contract.
2. Upon termination of the contract in such cases, the rules of the first sentence of clause 3 and the first sentence of clause 4 shall apply.
Article 673 of this Code. Additional costs for the return delivery of the tourist are borne by the parties in equal shares. In the rest
in cases the tourist bears additional costs.

Article 679. Inadmissibility of agreements that infringe on the legal rights of a tourist

The rules of Articles 669 - 678 of this Code cannot be changed to the detriment of the tourist.

Chapter 12. Transportation

§ 1. Contract of carriage

Article 680. Concept

Under the contract of carriage, the carrier is obliged to deliver the cargo or transport passengers to the place for an agreed fee.
destination.

Article 681. Liability of the carrier

1. The carrier is liable for damage caused to the passenger, as well as for damage or loss of his baggage.
2. Responsibility does not arise if the harm is caused as a result of force majeure or by the passenger or his
luggage.
3. The liability of the carrier cannot be excluded or limited by the contract.

Article 682. Obligation to conclude a contract

A person who publicly offers the delivery of goods and the carriage of passengers is obliged to conclude a contract of carriage, if absent
grounds for refusal.

Article 683. Carriage by several vehicles

If a loaded car on one section of the route will be delivered by sea, rail or air and in
in cases provided for in Article 696 of this Code, the cargo will not be unloaded, then the rules of this Chapter apply for
transportation in general.

Article 684. Form of contract

The contract of carriage is drawn up in the form of a waybill. Regardless of the absence of the consignment note, its deficiencies or loss of content and
the validity of the contract of carriage is determined by the rules of this chapter.

Article 685. Rules for drawing up a consignment note

1. The waybill is drawn up in triplicate, signed by the sender and the carrier. The first copy remains for the sender,
the second is attached to the cargo, and the third is kept by the carrier.
2. If the cargo to be transported is distributed over several vehicles or it is a cargo of different types, or
divided into separate lots, both the sender and the carrier may require the preparation of as many waybills as
there are types of transport or cargo.

Article 686. Requisites of the consignment note

1. The waybill must contain the following data:
a) date and place of issue;
b) name and address of the sender;
c) the name and address of the carrier;
d) the place and date of the transfer of the cargo, as well as the place of delivery of the cargo;
e) name and address of the recipient;
f) the usual name of the type of cargo, the type of packaging, for cargo fraught with danger - their generally recognized designation;
g) quantity, signs and numbers of the transported cargo;
h) weight or other designation of the amount of cargo;
i) expenses related to transportation (transportation price, additional expenses, customs duties and other expenses arising from
the moment of concluding the contract and before the delivery of the goods);
j) marks of customs and other similar services;
k) a note that the carriage, regardless of the agreement of the parties, is subject to the rules of this chapter.
2. If necessary, the invoice must contain the following data:
a) prohibition of reloading to other transport;
b) expenses incurred by the sender;
c) the size of the margins to be paid when sending the goods;
d) the value of the cargo and special interests in its delivery;
e) instructions of the sender to the carrier about cargo insurance;
f) the agreed date for the completion of the carriage;
g) a list of documents handed over to the carrier.
3. The waybill may contain other data, the entry of which the parties consider appropriate.

Article 687. Liability of the sender

1. The sender is responsible for all costs and damage incurred due to the fact that in the waybill incorrectly or not
completely presented:
a) the data listed in subparagraphs "b", "d", "e", "f", "g", "h" and "k" of paragraph 1 of Article 686 of this Code;
b) the data listed in paragraph 2 of Article 686 of this Code;
c) all other data or instructions of the sender on the preparation of the consignment note or for inclusion in it.
2. If the carrier, at the request of the sender, enters into the consignment note the data listed in paragraph 1 of this article, then before
once proven otherwise, the carrier is deemed to have acted on behalf of the sender.
3. If the consignment note does not contain the data provided for in subparagraph "l" of paragraph 1 of Article 686 of this Code, then the sender shall bear

responsibility for all those costs and damage that have arisen for the owner of the rights to the goods due to the fact that these data were not indicated.

Article 688. Obligations of the carrier upon receipt of cargo

Page 13

1. Upon receipt of the cargo, the carrier is obliged to check:
a) the correctness of the data on the number of places, signs and dimensions of the cargo indicated in the consignment note;
b) the external condition of the cargo and its packaging.
2. If the carrier is deprived of the opportunity to check the data specified in subparagraph "a" of paragraph 1 of this article, then he shall enter in
consignment note conditions to be fulfilled. In the same way, he must make conditions regarding the external condition of the cargo and
its packaging. These instructions are not obligatory for the sender, unless he explicitly acknowledged them in the consignment note.
3. The sender may require the carrier to double-check the weight of the goods or their amount otherwise indicated.
He may also require the carrier to check the composition of the cargo to be carried. The carrier has the right to demand
reimbursement of costs associated with these checks. The results of the rechecking should be noted on the invoice.

Article 689. Presumption of conclusion of a contract of carriage

1. Until proven otherwise, the waybill (bill of lading or other form accepted in carriage) is evidence that
that the contract has been concluded, its content has been determined and the cargo is accepted by the carrier for shipment.
2. If the conditions of the carrier are not indicated in the consignment note, then, until the opposite is proved, it shall be considered that the goods and their packaging under
externally were in good condition and that the number of places, marks and numbers coincide with the data recorded in the delivery note.

Article 690. Liability of the sender for damage caused by poor-quality packaging of goods

The sender is liable to the carrier for the damage caused to persons caused by poor-quality packaging of the goods,
the carrier's property, as well as the costs associated with poor-quality packaging, unless the defects were obvious or
The carrier knew about this upon acceptance of the cargo and, in this regard, did not stipulate any conditions.

§ 691. Obligation of sender to provide necessary information

1. The sender must attach to the waybill all the documents necessary for the performance of customs and other similar actions
before the delivery of the goods or hand over these documents to the carrier and provide him with all the necessary information.
2. The carrier is not obliged to check the accuracy and sufficiency of these documents and information. The sender is responsible
before the carrier for damage caused by defects and inaccuracies of documents and data, except when it happened by
the fault of the carrier.
3. The carrier is responsible for the loss or misuse of those specified in the consignment note or transferred to the carrier.
documents; he cannot be held liable more than that which arises in the event of the loss of the cargo.

Article 692. Rights of the sender

1. The sender is entitled to dispose of the goods, demand the termination of carriage, change the place of delivery of the goods and demand from
carrier, so that he does not transfer the goods to other persons, except for those indicated in the waybill.
2. This right shall terminate simultaneously with the transfer of the second copy of the consignment note to the consignee or, if he has used his
the right in accordance with paragraph 1 of Article 693 of this Code. From this point on, the carrier must follow the instructions of the consignee.
3. The consignee has the right to dispose of the goods already upon drawing up the consignment note, if the sender has made the appropriate notes in
overhead.
4. If the recipient, when exercising the right of disposal, indicated to deliver the goods to a third party, the latter is not entitled to
turn to name another recipient.
5. The exercise of the right of disposal must comply with the following provisions:
a) if the sender or, in the cases specified in paragraph 3 of this article, the recipient wishes to exercise his right of disposal,
then he must submit the first copy of the consignment note, which must reflect the new instructions given to the carrier and
the carrier must be reimbursed for all costs and losses incurred after the implementation of these instructions;
b) the execution of the order must be possible at the moment when it comes to the person who must carry out this order, and
it is unacceptable that it interfere with the normal production activities of the carrier and harm the goods of other
senders or recipients;
c) instructions should not cause dismemberment of the cargo.
6. If the carrier, on the basis of subparagraph "c" of paragraph 5 of this article, cannot fulfill the instruction received, he
must immediately inform the person who gave the order.
7. A carrier that does not comply with the instructions given in compliance with the requirements of this article, or complies with these instructions without
in order to demand the first copy of the consignment note, is liable to the authorized person for the resulting
harm.

Article 693. Rights of the consignee when handing over the goods

1. Upon delivery of the cargo to the place provided for its transfer, the consignee is entitled to demand from the carrier the transfer of the second
a copy of the consignment note on the basis of confirmation of receipt and the cargo will be deemed transferred. If there is a shortage of cargo or
the goods were not delivered within the time limits provided for in Article 700 of this Code, the recipient may, on his own behalf, apply against
the carrier's rights arising from the contract.
2. The recipient using the rights granted to him by paragraph 1 of this article is obliged to pay the entire amount of expenses incurred
from the invoice. In a dispute about this, the carrier is obliged to transfer the thing only if the recipient provides him with security.

Article 694. Impossibility to perform a contract

1. If, prior to the acceptance of the goods at the place provided for its transfer, it is impossible to fulfill the contract on the conditions specified in
consignment note, or performance has become impossible, then the carrier must demand, in accordance with Article 692 of this Code, from
the authorized person of the order about the thing.
2. If the circumstances give the possibility of carriage differing from the conditions specified in the consignment note, and the carrier could not receive in
during the corresponding period of instructions of the authorized person about the cargo, provided for in Article 692 of this Code, then he must
to take such measures, which, based on the interests of the authorized person, will be recognized as the best.

Article 695. Circumstances preventing the transfer of cargo

1. If, after the arrival of the cargo at the place of destination, circumstances arise that prevent the transfer of the cargo, then the carrier must
require instructions from the sender. If the sender has not provided instructions and the recipient refuses to accept the goods,
the carrier is entitled to dispose of the goods himself without presenting the first copy of the consignment note.
2. The consignee may demand the transfer of the goods even when he refused to accept, but the carrier has not yet received from the sender
opposite directions.
3. If the condition preventing the transfer of the goods arose after the consignee in accordance with paragraph 3 of Article 692 of this
Of the Code gave instructions on the transfer of goods to a third party, then when applying the rules provided for in paragraphs 1 and 2 of this article,
the recipient replaces the sender and the third party replaces the recipient.

Article 696. Right to reimbursement of expenses incurred on the basis of instructions of the sender

1. The carrier is entitled to reimbursement of expenses incurred by him as a result of the receipt or execution of the sender's instructions,
except for the cases when the need for these expenses arose through his fault.
2. In the cases provided for by paragraph 1 of Article 694 and Article 695 of this Code, the carrier may urgently unload the cargo at the expense of
an authorized person; after unloading, the carriage is considered complete. Thereafter, the carrier must store the goods for the authorized
faces. He can delegate this to a third party. In such cases, he is responsible only for the selection of a third party. Everything
costs arising from the consignment note and expenses are paid from the value of the goods.
3. The carrier may, without waiting for the instructions of the authorized person, give an order to sell the goods in the case of perishable
products or if the condition of the cargo justifies such actions, or when storage costs exceed the value of the cargo. It
can sell the goods in other cases, if within a certain time does not receive instructions from one of the parties.
4. If the goods have been sold in accordance with this article, the proceeds less expenses related to the goods must be
transferred to the authorized person. If these costs exceed income, the carrier may claim the difference.
5. The rules of sale are determined by the laws and customs of the location of the goods.

Article 697. Carrier's right of lien

In connection with the costs incurred from the contract of carriage, the carrier has the right to pledge the cargo as long as he is entitled
dispose of this cargo.

§ 2. Liability of the carrier

Article 698. Concept

1. The carrier is responsible for the loss or damage to the cargo in whole or in part, if the cargo is lost or damaged during the period from
the moment of its receipt before delivery, as well as for late delivery.
2. The carrier is released from liability if the loss, damage or delay in delivery of the goods occurred through the fault of
of an authorized person, or at his direction, for which the carrier is not responsible, as well as due to such defects in the cargo or
circumstances that the carrier could not eliminate and could not prevent their consequences.
3. The carrier cannot, for the purpose of exemption from liability, refer to any defects of the used for carriage.
vehicle, nor the fault of the lessor of this vehicle or the fault of the employer's staff.
4. The carrier, subject to the conditions specified in paragraphs 2, 3, 4 and 5 of Article 699 of this Code, shall be released from liability,
if the loss or damage to the cargo has arisen due to a special danger associated with the following circumstances:
a) an open, unobstructed vehicle is used if its use has been expressly agreed and noted in the consignment note;
b) the cargo is not packed or is poorly packed;
c) inspection, loading, stowage or unloading of cargo is carried out by the sender, recipient or a third party acting for them;
d) due to the peculiarities of certain goods, the risk of their loss or damage in whole or in part is assumed, in
particular breakage, rusting, corrosion, shrinkage, spills, normal losses and exposure to insects or rodents;
e) the cargo intended for transportation is insufficiently marked or numbered;
f) animals are transported.
If, on the basis of this article, the carrier is not responsible for individual circumstances that caused damage, then he bears
liability only to the extent that caused damage by the circumstances for which the carrier is responsible on the basis of this
articles.

Article 699. Burden of proof

1. Proof that the loss of or damage to the goods, delay in delivery resulted in the circumstances specified in paragraph 2 of Article 698
of this Code is the responsibility of the carrier.
2. If the carrier proves that, based on the circumstances of a particular case, the shortage or damage could have occurred as a result of
one or more of the dangers listed in paragraph 4 of Article 698 of this Code, it is considered that the harm has arisen from this.
The competent person can prove that the harm did not arise from this danger, or not only from this danger.
3. This does not apply in the presence of the circumstances provided for by subparagraph "a" of paragraph 4 of Article 698 of this Code in case of loss
or the death of the transported cargo in extreme conditions.
4. If the carriage is carried out by a vehicle that has special equipment to protect the cargo from heat, cold,
temperature difference or from the wind, then the carrier may refer to paragraph 4 of Article 698 of this Code only if
proves that he has taken the necessary measures for the selection, operation and use of this equipment and has performed all
the requirements presented to him.
5. The carrier may apply subparagraph "g" of paragraph 4 of Article 698 of this Code only if he proves that he has fulfilled
all the activities assigned to him and the instructions given to him.

Article 700. Delay in delivery of cargo

Delivery is considered overdue if the goods were not delivered within the agreed period or, if the period was not agreed upon, usually
the time required for transportation, taking into account the circumstances that are associated with the determination of the time for connecting parts of the cargo
together when loading it in parts, if the time limit that the prudent carrier should have observed in the usual
conditions.

Article 701. Loss of cargo

1. An authorized person may, without providing additional evidence, consider the goods lost if, within thirty days
after the agreed period, the goods will not be delivered to the appointed place or if such a period was not agreed upon after
sixty days after the carrier receives the shipment.
2. A competent person may, upon compensation for damage in connection with the loss of cargo, in writing demand that he immediately
informed if the lost cargo is found within one year after the refund. The answer to this requirement must also be given
in writing.
3. The competent person may, within thirty days after the receipt of such notification, demand that the goods be handed over to him after
fulfillment of claims arising from the consignment note and subject to the return of the received compensation, if necessary - for
deduction of expenses incurred in compensation for harm; his claims for reimbursement due to delayed carriage in accordance with
Articles 704 and 706 of this Code remain unchanged.
4. If the demand provided for in paragraph 2 of this article is not submitted, or there is no reference to the thirty-day period,
provided for in part three of this article, or the cargo is found after one year after payment, then the carrier may
dispose of the cargo in accordance with the rules in force at the location of the cargo.

Article 702. Right to demand additional payment

If the cargo is handed over to the recipient without additional payment, which the carrier should have received after delivery of the cargo to the destination, then
the carrier may, with reference to the recipient's recourse, demand compensation from the sender.

Article 703. Rules for sending dangerous goods

1. If the sender sends goods that are dangerous, then he is obliged to provide the carrier with accurate information and
warn about the danger of the cargo, and, if necessary, insure this cargo. If this obligation is not included in the consignment note, then on
the consignor and consignee are obliged to prove by other means that the carrier knew about the type of goods and
expected danger.
2. The carrier may at any time and in any place unload, destroy or render harmless the goods without obligation to compensate for the damage,
are dangerous, and about the danger of which, according to paragraph 1 of this article, he was not aware of anything; sender also
bears responsibility for damage and costs caused by the delivery for carriage or carriage of these goods.

Article 704. Determination of the value of cargo in case of its loss

1. If, in accordance with the provisions of this chapter, the carrier is obliged to compensate for damage caused in whole or in part
loss of cargo, compensation for damage is carried out at the prices for this product in force at the place of transfer and at the time of transfer.
2. The cost of the cargo is determined at the exchange price, in the absence of such a price - at the market price, and in the absence of such price - similarly
cargo of a similar type and value.
3. The amount of transportation, customs and other expenses similar to them are subject to return, however, in case of loss of the entire cargo - in full, and in case of
loss of part of it - partially.
4. If the delivery of the goods is delayed and the authorized person proves that this has caused damage, the carrier is obliged to compensate for the damage
within the value of this cargo. A greater amount of compensation may be claimed in the event that, according to Article 706
of this Code, there was a special interest in this carriage or the value of the goods was indicated.

Article 705. Compensation for damage in case of damage to cargo

1. In case of damage to the cargo, the carrier must reimburse the amount by which the value of the cargo has decreased. Specified amount
is determined in the manner prescribed in paragraphs 1, 2 and 3 of Article 704 of this Code.
2. Compensation for harm should not exceed:
a) the amount that would be payable in the event of the loss of the entire cargo - when the entire cargo has been completely depreciated due to damage;
b) the amount that would be payable in case of loss of part of the cargo - when due to damage, only one part of the cargo has depreciated.

Article 706. Notation of special interest in the consignment note

1. The sender may, on the basis of the additional payment made, indicate his special interest in this carriage.
in case of loss or damage to cargo or delay.
2. If a special interest in this carriage has already been expressed, regardless of the compensation provided for in Articles 704 and 705
of this Code of harm, additional compensation for harm may be required in the amount expressed in interest.

Article 707. Claim of Interest on Compensation for Secured Damage

1. A person eligible for the cargo may demand the payment of five percent per annum from the compensation for damage secured to him. Score
interest starts from the day the claim was filed with the carrier, and if no claim was filed, from the day the claim was filed.
2. If compensation for harm is established in monetary units that do not circulate in the country, and payment is required, the rate
is determined in accordance with the rate in force on the day of payment at the place of payment of the compensation for harm.

Article 708. Non-contractual requirements for carriage

1. If the shortage, damage or delay in transportation may entail non-contractual requirements under the current rules, then
the carrier may, on the contrary, refer to the provisions of this chapter which exclude his liability or
determine or limit the amount of compensation.
2. If claims without contractual liability for loss, damage or delay in respect of
one of the persons, he may refer to the provisions of this chapter, which exclude his responsibility or determine either
limit the amount of compensation for harm.

Article 709. Inadmissibility of releasing the carrier from liability

The carrier cannot refer to those provisions of this chapter that exclude his liability or exempt him from
burden of proof if the harm is caused by his fault.

§ 3. Complaint (claim) and claim

Article 710. Concept. Content

1. If the recipient accepts the goods in such a way that he does not check it together with the carrier and does not present claims to the carrier
of a general nature with regard to shortages and losses, until proven otherwise, the recipient shall be deemed to have accepted
the goods in the condition specified in the consignment note; the claims referred to must be submitted on the day of acceptance of the goods - if the matter concerns
noticeable from the side of shortages or damage, and in the case of externally imperceptible shortages and damage - no later than one week from
day of acceptance; Saturdays and Sundays, as well as holidays, are not included in this period. If the shortage and damage externally
invisible, these claims must be made in writing.
2. If the consignee and the carrier have jointly checked the condition of the goods, evidence contrary to the results of the check,
is allowed only if the shortage and damage are outwardly invisible and the recipient within seven days after acceptance (Saturday,
Sunday and public holidays do not count) will not submit a written claim.
3. The claim for compensation for damage due to delay is possible only if, within twenty-one days from the date of acceptance of the goods
the consignee will file a written claim against the carrier.
4. When calculating the time limits provided for in this article, the days of dispatch of the goods, their inspection or delivery are not counted.
to the recipient.
5. The carrier and the consignee shall assist each other in carrying out the necessary checks and establishing the necessary facts.

Article 711. Limitation period for rights arising from carriage

The limitation period for the rights arising from the transportations provided for in this chapter is one year. By intent or rude
negligence this period is equal to three years. The course of the limitation period is calculated:
a) in case of partial loss, damage to the cargo or delay - from the date of arrival of the cargo;
b) in case of complete loss of the cargo - from the thirtieth day after the expiration of the agreed period of carriage or, if such a period was not agreed, - from
the sixtieth day after the acceptance of the goods by the carrier;
c) in all other cases - upon the expiration of three months after the date of the conclusion of the contract of carriage.

Article 712. Suspension of the course of the limitation period

1. The limitation period is suspended from the day the written complaint is sent to the carrier until the day when the carrier sends
written waiver of the complaint. If the complaint is partially recognized, during the limitation period for the disputed part of the complaint
continues. The burden of proof of receipt of a complaint or of giving an answer to it rests with the person who relies on them.
Other complaints concerning the same subject matter do not suspend the limitation period.
2. Overdue claims cannot be used by way of a counterclaim or challenge.

§ 4. Transport by successive carriers

Article 713. Liability of successive carriers

If, under one contract, transportation is carried out by successive different carriers, then each of them bears
responsibility for the transportation in general; the second and each subsequent carrier by receiving the cargo and the waybill
become a party to the contract.

Article 714. Obligation to hand over relevant documents

1. The carrier accepting the goods from the previous carrier is obliged to issue a confirmation of receipt of the goods, dated and
a document signed by him. On the second copy of the invoice, he must indicate his name and address. If necessary, he makes
the second copy of the consignment note provided for in paragraph 2 of Article 688 of this Code and the confirmation of receipt of the goods.
2. The relationship between the carriers replacing each other shall be governed by Article 689 of this Code.

Article 715. Claims for Compensation of Damage in Respect of Reciprocal Carriers

Claims for compensation for damage due to loss, damage or delay in carriage, except for a counterclaim or dispute,
can be applied only in relation to the first, last or that carrier, during the carriage of which the cargo was
lost, damaged, or the delivery of the goods was overdue; the same claim may be brought against several carriers.

Article 716. Right of recourse in compensation for harm

If, in accordance with this Chapter, the carrier has already compensated for the damage, he has the right of recourse in the following cases:
a) if the carrier, who committed the loss or damage to the goods, alone must compensate for the damage to be compensated by him or
by several carriers;
b) if the loss or damage was committed by two or more carriers, then each of them must reimburse the amount,
an appropriate share of responsibility; if it is impossible to establish, each of them is liable in proportion to the share
in the received remuneration;
c) if it is impossible to establish which of the carriers should be charged with the obligation to reimburse, then all must pay
carriers in the proportion specified in subparagraph "b" of this article.

Article 717. Consequences of the Carrier's Insolvency

If one of the carriers is insolvent, then the amount that he should have paid, but did not pay, is distributed between

other carriers in proportion to their share in the received remuneration.

Article 718. Contesting the exercised right of recourse

The carrier in respect of which, in accordance with Articles 716 and 717 of this Code, a claim has been made in accordance with the procedure
recourse, cannot challenge the correctness of payment of the amounts made by another carrier by a court decision, if the carrier, in
in respect of whom the claim was carried out by way of recourse, was duly warned about the process and could accept
participation in the process.

Article 719. Mutual agreement between successive carriers

Carriers have the right to agree among themselves and on issues other than those specified in Articles 716 and 717 of this Code.

Article 720. Invalidity of agreements

1. Any agreement, other than those specified in Article 719 of this Code, which directly or indirectly does not correspond to
the provisions of this chapter.
2. Any agreement by which the carrier assigns claims arising from cargo insurance and any other agreement shall be void.
a similar agreement that transfers the burden of proof to another person.

Chapter 13. Assignment

Article 721. Concept

Under the contract of commission, the attorney is obliged to perform one or more of the actions assigned to him on behalf of and at the expense of the principal.

Article 722. Remuneration for instructions

1. The principal shall be obliged to pay remuneration to the attorney only in cases stipulated by the contract or by law.
2. The remuneration shall be considered unconditionally agreed if, according to the circumstances of the case, the action is expected only
onerous.
3. If the amount of remuneration has not been determined, then in the presence of any price list, the remuneration for
the price list, and in the absence of a price list - the usual remuneration.

Article 723. Transfer to a third party

1. The attorney is obliged to personally execute the order, unless he was allowed to entrust it to a third party or he
I am forced to do so in view of the circumstances. Connection of auxiliary persons is allowed.
2. If the assignment of the assignment to a third party is permitted, the attorney shall be liable only for the fault that lies with him for
entrustment and selection of this person.

Article 724. Derogation from instructions

1. The attorney is obliged to comply with the instructions of the principal.
2. The attorney has the right to deviate from the instructions of the principal if, based on the circumstances, he can assume that the principal,
knowing the state of affairs, I would approve of such a deviation. Before deviating from the instructions of the principal, the attorney is obliged to notify
the principal and await his decision, except in cases where delay may cause danger for execution.
3. If the execution by the attorney of the instructions of the principal can cause him significant harm, the attorney can only
follow the instructions when he informs the principal about the harm, and the latter does not change his instructions.

Article 725. Obligation to provide information and report

1. The attorney is obliged, at the request of the principal, to provide him with the necessary information, to inform him of the state of affairs,
and upon execution of the order, submit a report.
2. An agreement that limits or excludes in the future the duties of the attorney specified in paragraph 1 of this article,
requires writing.

Article 726. Confidentiality

1. The attorney is obliged not to disclose the facts known to him within the limits of his activity, in the preservation of the secrecy of which the principal
is legitimately interested if, on the basis of the law, there is no obligation to disclose the secret or the principal authorizes
the attorney to reveal the secret.
2. The obligation of non-disclosure also exists after the end of the contractual relationship.

Article 727. Obligation to transfer the results of performance to the principal

1. The attorney is obliged to transfer to the principal everything that he received for the execution of the order or acquired as a result of its execution
2. If the attorney uses for his own purposes the money that he must transfer to the principal or use in his interests, then he
is obliged to accrue interest on this money for the period of their use in their own interests.

Article 728. Property of the principal

Property acquired by the attorney at the expense of the principal and on his own behalf when performing the commissioned action or transferred
to him by the principal for the execution of the order, in the relations of the attorney with the creditors is considered the property of the principal.

Article 729. Reimbursement of expenses

The principal is obliged to reimburse the expenses that were incurred by the attorney for the purpose of executing the order and which, based on
circumstances, was entitled to consider necessary.

Article 730. Obligation to pay advance

At the request of the attorney, the principal is obliged to pay him an advance to cover the costs necessary for the execution of the order.

Article 731. Compensation for harm incurred without fault

1. The principal is obliged to compensate also the harm that has occurred through no fault of his own, which has arisen from the attorney in the execution of the order,
if the harm occurred due to the instructions of the principal as a result of significant danger associated with the execution of the order.
2. The claim provided for in paragraph 1 of this article does not arise if the resulting harm must be covered by
remuneration or if the harm occurred as a result of the actions of the attorney. If compensation for harm becomes controversial,
the burden of proof rests with the attorney.

Article 732. Compensation for harm caused by guilty actions

If the order is executed by the attorney free of charge, then he is responsible only for harm caused intentionally or by
negligence.

Article 733. Termination of contract

1. The Principal may at any time cancel the order, and the Attorney may terminate the agreement of the order.
2. The attorney may terminate the contract only when the principal has the opportunity to take other measures to perform
of the assigned actions, except in cases where there is a valid reason for the immediate termination of the contract. If a
the attorney terminates the contract immediately and without a valid reason, then he is obliged to compensate the principal for the caused by this
losses.
3. If the contract is terminated by the principal, he is obliged to reimburse the attorney for all necessary expenses incurred by the attorney at
the commissioned action, and if the contract was compensated, pay remuneration in accordance with the amount of performed
work.

Article 734. Death or incapacity of the principal

1. The contract does not terminate due to the death of the principal or his declaring incompetent, unless otherwise follows from the content
errands.
2. If the contract is to terminate with the death of the principal or because of his declaring incompetent, then with the likelihood of unfavorable
consequences due to the suspension of the order, the attorney continues to perform his duties until
the heir or legal representative of the principal will not take other measures to protect their interests.
3. If the contract is terminated due to the death of the principal or his declaring incompetent, then it is considered extended in favor of
an attorney until he is informed of the grounds for terminating the contract.

Article 735. Death of attorney

1. The contract is terminated with the death of the attorney, unless otherwise follows from the content of the order.
2 The heir must immediately notify the principal of the death of the attorney and continue the execution of the order if
suspension of the order may entail unfavorable consequences for the principal. Attorney's heir continues execution
instructions until the principal takes other measures to protect their interests.

Chapter 14. Trust management of property

Article 736. Concept

1. Under a fiduciary management agreement, the owner (one party) transfers for a certain period to the trustee
(to the other party) movable or immovable property or rights to it into trust, and the other party accepts them and
undertakes to manage them in the interests of the owner.
2. Transfer of property to trust does not entail the transfer of ownership of it to trust
to the manager.
(As amended by the Law of Turkmenistan of September 25, 2010 - Bulletin of the Mejlis of Turkmenistan 2010, No. 3, Article 63)

Article 737. Rights and obligations of a trustee

1. The trustee is obliged to dispose of the entrusted property on his own behalf, but at the expense of risk and expense
the principal of the property. At the same time, in relation to real estate, there are rules according to which relations,
related to its alienation, must be agreed with the owner.
2. The trustee in relations with third parties uses the powers of the owner. If the confidential
the manager, contrary to the interests of the principal, does not show prudence, which he should show in relation to his own affairs, then
he is obliged to compensate for the harm caused by this action.
(As amended by the Law of Turkmenistan of September 25, 2010 - Bulletin of the Mejlis of Turkmenistan 2010, No. 3, Article 63)

Article 738. Reimbursement of expenses related to the trust management of property

1. The trustee does not receive remuneration from the trustee for activities related to the trust of property,
unless otherwise provided by agreement of the parties.

Page 14

2. All costs associated with the trust management of the property shall be borne by the principal.
3. The fruits of the thing remain with the principal of the property.

Article 739. Form of contract for trust management of property

1. The contract of trust management of property is concluded in writing.
2. If the subject of the contract is real estate, then it is subject to state registration in the public register and
is considered concluded from the moment of registration.
(As amended by the Law of Turkmenistan of September 25, 2010 - Bulletin of the Mejlis of Turkmenistan 2010, No. 3, article 63)

Article 740. Responsibility of the trustee

In relations with third parties, the trustee is responsible.

Article 741. Application of the rules of the contract of agency

In relation to the grantor of property, the relevant rules of the contract of trust apply.

Chapter 15. Transport expedition

Article 742. Concept

1. Under the forwarding agreement, the forwarder undertakes, on his own behalf and at the expense of the customer, to carry out actions related to transportation
cargo. The customer is obliged to pay the agreed fee.
2. In relation to the expedition, the rules of the contract of agency shall apply, unless otherwise provided in this Chapter.

Article 743. Requirement of good faith from the freight forwarder

The freight forwarder must send the goods in good faith, select the persons involved in the transportation, respect the interests of the customer and
follow his instructions.

Article 744. Obligations of the customer

1. The customer must, at the request of the forwarder, promptly provide him with information about the cargo, as well as give instructions,
necessary for the processing of transport documents, provide the necessary information on the performance of customs and other
actions and, if necessary, on making customs payments. In addition, the customer must submit the required documents,
confirming the accuracy of the specified information.
2. When transporting goods containing a hazard, the customer must warn the freight forwarder about the exact type of hazard and
the need to tell him about security measures.
3. The cargo, the danger of which the forwarder was not aware of, may at any time and place be unloaded, destroyed or
rendered harmless without imposing the obligation to compensate for harm.
4. The customer is obliged, if the type of goods so requires, to pack it in accordance with the requirements of the carriage.
5. If identification marks are required for the identification of cargo, they must be marked in such a way that they are clearly
visible before delivery.
6. The customer is responsible for the damage that will be caused to the forwarder as a result of non-fulfillment of the requirements provided for
the previous paragraphs of this article, except for cases when the forwarder in accordance with paragraphs 3 and 4 of this article
did not comment on the lack of packaging or identification marks or their deficiencies, although this was clear to him or he had
information about this when accepting the cargo.

Article 745. Individual inspection of goods

The customer may, under the condition of a special remuneration, demand from the freight forwarder a piece-by-piece check of the goods upon acceptance.

Article 746. Obligation to insure cargo

Cargo insurance is assigned to the freight forwarder only if he receives an order from the customer. Unless otherwise specified
The freight forwarder is obliged to insure the goods only under normal conditions.

Article 747. Contract of insurance of expedition

If the customer does not declare an explicit refusal in writing, the freight forwarder is obliged with an insurance company selected by him at the expense of
of the customer to conclude an insurance contract against damage that may be caused to the customer by the actions of the forwarder when performing
order. The freight forwarder must inform the customer with whom he has concluded the freight forwarding insurance contract.

Article 748. Obligation to timely report harm

On the basis of an insurance contract concluded in accordance with Article 747 of this Code, the customer must take care of
timely reporting of harm. If a message of harm is sent to a freight forwarder, he is obliged to forward the message immediately
insurance organization or insurance organizations.

Article 749. Consequences of non-receipt of goods

If at the place of destination the recipient does not accept the goods or, for other reasons, it is impossible to accept the goods, rights and obligations
forwarder are determined according to the rules of carriage.

Article 750. Impossibility of checking the condition of the cargo upon acceptance

If it is impossible to check the condition of the cargo in the presence of the parties, then before the opposite is proved, the acceptance of the cargo
is considered to be a confirmation that the cargo was accepted without any shortage and damage, unless the recipient indicates to the handing over the cargo
on the general nature of the harm. If the shortage or damage is obvious, then this must be reported on the day of acceptance
cargo or, in other cases of shortages or damage, - no later than three days after the acceptance of the cargo.

Article 751. Right to Carry Cargo on Your Own

1. Unless otherwise agreed, the forwarder has the right to transport the goods on his own. The exercise of this right must not contradict
the rights and interests of the customer.
2. If the freight forwarder uses this right, then he simultaneously acquires the rights and obligations of the carrier of the goods.

Article 752. Liability of the freight forwarder

For obligations arising from the forwarding contract, the freight forwarder is usually liable if he or his assistants
are guilty of anything.

Article 753. Harm caused by a third party

If the damage is caused by a third party participating in the contract, at the request of the customer, the forwarder is obliged to transfer his claims to him
to a third party, unless, on the basis of a special agreement, the forwarder assumes the use of the claim for
customer account and risk.

Article 754. Compensation for damage caused by guilty actions of the forwarder

1. The freight forwarder cannot rely on provisions of this chapter which exclude or limit his liability or
transfer the burden of proof if the harm was caused to them intentionally or through gross negligence.
2. The same rule applies to assistants who are not contractually responsible if the harm is caused by them intentionally or by
gross negligence.

Article 755. Procedure for payment of remuneration

The remuneration is payable after the freight forwarder hands over the goods to the transport organization.

Chapter 16. Mediation

§ 1. General Provisions

Article 756. Concept

The person who undertakes to pay remuneration to the broker for identifying the possibility of concluding a contract or for mediation in
the conclusion of the contract, pays remuneration only if the conclusion of the contract takes place due to the identification
the possibility of its conclusion or as a result of mediation. If the contract is concluded under a suspensive condition, then
Mediation fees can only be claimed if this condition is met. If the amount of remuneration is not
is established, then the agreed remuneration is usually paid for such work. Agreement concluded in
the difference from the first and second sentences to the detriment of the customer is invalid.

§ 757. Compensation for brokerage service

1. For the services provided for by the broker, which are not related to intermediary activities, the remuneration may
to be agreed regardless of whether or not the contract will be concluded as a result of the broker's activities.
2. The broker, in accordance with Article 756 of this Code, cannot negotiate an advance or receive it.
3. The costs of the broker are reimbursed only if this has been agreed; this rule also applies when the contract has not been
concluded. An agreement providing for the reimbursement of expenses that is not necessary for the implementation of the
mediation agreements.

Article 758. Exclusive assignment

1. If the customer must, within a certain period of time, refuse the services of another broker (exclusive order), then the broker
is obliged during this time to facilitate the conclusion of the contract. If the customer acts contrary to the above, the broker may,
if the contract was concluded using the services of another broker, claim compensation for damage. The contract may provide
the total amount of compensation for harm as the existence of harm is proven. This amount should not exceed two percent of the price
contract, if the contract concerned mediation in the conclusion of a sales contract.
2. An agreement concluded without observing these rules and to the detriment of the customer is invalid.
3. The exclusive assignment agreement is concluded in writing.

Article 759. Termination of mediation contract

1. The contract of mediation may be terminated at any time if the term of the contract has not been determined.
2. An exclusive order can be terminated only in the presence of important circumstances. After six months, it may
be terminated at any time without meeting any deadlines. The right to terminate the contract may be declared inadmissible
and for a longer time, if this is required by the peculiarities of the type or subject of the contract being concluded.

Article 760. Inadmissibility of payment of remuneration to a broker

1. Payment of remuneration to a broker or reimbursement of expenses is not allowed if the contract concluded with a third party concerns
an item belonging to the broker. The same rule applies when, due to special circumstances, harm may arise,
which will interfere with the broker in the implementation of the interests of the customer. These are the cases:
a) when the broker is the legal entity or company in which a third party is legally and economically involved;
b) when the third person is the legal entity or company in which the broker participates in a legal and economic manner;
c) when a broker with a third party is in an official or labor relationship;
d) when the broker is the spouse of a third party.
2. The broker has the right to receive remuneration or reimbursement of expenses if, before entering into an agreement with a third party
will warn the customer about these circumstances.
3. The rules of paragraph 1 of this article shall also apply if another person acts at the expense of a broker or the contract was concluded for
third party account.
4. The broker loses the right to remuneration and reimbursement of expenses if, contrary to the content of the contract, he has acted for a third party.
5. An agreement that contradicts the rules provided for in paragraphs 1, 2 and 3 of this article is invalid.

§ 2. Mediation in the rental of dwellings

Article 761. Housing broker

1. With respect to a contract by which a person undertakes to be an intermediary for the conclusion of a contract for the lease of residential premises (housing
broker), the general rules of mediation apply, unless otherwise follows from the rental contract.
2. The rules on mediation in the rental of accommodation do not apply to contracts that deal with tourism and
housing mediation for business trips.

Article 762. Inadmissibility of receiving remuneration

1. The requirement of a housing broker for remuneration or reimbursement of expenses is inadmissible if:
a) the lease agreement for the same dwelling extends the existing lease relationship or changes it in a different way;
b) a lease agreement is concluded for a residential area managed by a broker.
2. A housing broker cannot claim compensation for actions that he performs in connection with the conclusion of a residential lease agreement.
premises, except for the remuneration provided for by paragraph 1 of Article 757 of this Code.
3. The contract concluded to the detriment of the customer is invalid.

§ 3. Loan mediation

Article 763. Loan Broker

In relation to an agreement under which a person undertakes to be an intermediary in the conclusion of a loan agreement (loan broker), the following applies:
general rules for mediation, unless specific rules follow from this chapter.

Article 764. Form of contract

1. The contract must be concluded in writing.
2. The agreement must indicate the amount of the broker's remuneration for the loan, indicating certain percentages of the loan. Moreover,
the contract must indicate: the amount of the loan, the term, interest and time of repayment, the repayment rate, the duration of the interest term and
additional costs, the total amount payable by the customer, the last name, first name and patronymic of the lender and his address. These rules
do not apply if the order relates to a loan secured by a pledge of land or to a loan issued for the acquisition of land, as well as to
a loan that the customer must use for his independent professional or entrepreneurial, or departmental
or service activities.
3. The text of the agreement should not be associated with an application for a loan. The loan broker must give the customer a copy of the contract.

Article 765. Obligation to pay remuneration

The customer is obliged to pay remuneration only if, as a result of mediation, he received a loan. Agreement concluded during
harm to the interests of the customer is invalid.

§ 4. Trade broker

Article 766. Concept

1. The rights and obligations of a trading broker are possessed by a person who for other persons, not being permanently authorized by them to
based on contractual relations, as its professional activity, takes on mediation in contracts for
the acquisition or alienation of goods or securities, insurance, cargo transportation, the hiring of ships or other objects
trade turnover.
2. The rules on a trade broker do not apply to transactions other than those indicated, for example, to mediation in transactions with
real estate, even if mediation is carried out by a commercial broker.

Article 767. Final text of the treaty
1. The trader must, unless the parties or local regulations exempt him from doing so, immediately after the conclusion of the transaction
submit to each party the final text of the agreement signed by him, in which the contracting parties are indicated,
subject and terms of the transaction, in particular when selling goods or securities - their type and quantity, as well as the price and delivery time.
2. In transactions that should not be completed immediately, the final text of the contract is presented to the parties for
signing and each party is sent the final text of the contract signed by the other party.
3. If one party refuses to accept or sign the final text of the contract, the trader will promptly notify
about this the other side.

Article 768. Negotiated task
1. If one party accepts the final text of the contract in which the trader reserves the indication of the other
of the contracting party, then it turns out to be a related transaction with the party to be indicated retroactively, unless against
the latter will not be able to raise a valid objection.
2. The other party is indicated within the time limit in accordance with local regulations, and in the absence of such - within the time limit,
commensurate with the circumstances.
3. If such an instruction has not been made or a demand is made against the specified person to execute the transaction. Demand
is excluded if, at the request of the trader, this party does not immediately declare that it requires the execution of the transaction.

Article 769. Preservation of designs
1. The trade broker, unless the parties or local regulations exempt him from doing so, retains the sample of each given to him.
goods sold by the sample through its intermediation until the goods are accepted without objection to their condition
or the transaction will not be completed otherwise.
2. The trade broker designates the sample by means of a label.

Article 770. Lack of authority for collection
The merchant is not deemed to be authorized to accept payments or any other form of payment stipulated by the contract.

Article 771. Responsibility to both
parties
The trader is liable to each of the parties for damages caused through his fault.

Article 772. Right to claim remuneration from
both sides
If there is no agreement between the parties on who should pay the brokerage fee, then in the absence of other local
of the rules, each party must pay half of the remuneration.

Article 773. Journal

The trade broker is obliged to keep a journal and enter in it every day all concluded transactions. Entries are made in chronological
order and must contain the information specified in Article 767 of this Code. The entered data is signed daily
trade broker.

Article 774. Extracts from the journal
The trade broker is obliged at any time to provide the parties at their request with extracts from the journal, which are signed by him and
contain everything written by him in relation to the transaction concluded through his mediation.

Chapter 17. Sales Representative

Article 775. Concept
A sales representative is a person who, as a self-employed person, has been entrusted with constantly mediating
for another entrepreneur (entrepreneurs) in transactions or conclude them on his behalf. Self-reliant is the one who is in
mostly free to organize their activities and determine their working hours.

Article 776. Duties of a sales representative
The sales representative must provide a financial statement to the entrepreneur for whom he works. He is obliged to
agreed terms, and if the terms are not agreed, within ten days after the end of each quarter in writing
provide the entrepreneur with data on all completed transactions and calculations of remuneration for services.

Article 777. Payment of remuneration
1. A sales representative is entitled to remuneration if the entrepreneur has completed the transaction.
2. If it is clearly determined that the third party will not perform the performance, then the right to remuneration is invalid; already received
amounts must be returned.
3. The sales representative is also entitled to remuneration if it is clearly determined that the entrepreneur did not complete the transaction
in whole or in part, or does it differently from the way it was agreed. The entitlement to remuneration is invalid if
the completion of a transaction if it is based on circumstances beyond the control of the entrepreneur.
4. The entrepreneur pays the remuneration to the sales representative at the end of the month in which the agreement is concluded.
5. Departure from the rules of this article to the detriment of the sales representative is not allowed.

Article 778. Amount of remuneration
1. If the amount of remuneration is not agreed, then the usual rate in this field of activity is considered agreed.
2. The remuneration is calculated based on the amount that the entrepreneur or a third party must pay. Payment discounts
cash is not provided; the same applies to additional costs, namely: transportation, packaging,
customs, taxes, unless the additional costs are specifically charged to a third party.
3. In the case of the conclusion of contracts for the transfer for use and contracts of use with a certain duration
remuneration is calculated based on the amount at the time when a third party can terminate the contract for the first time: trading
the representative is entitled to further appropriately calculated remuneration if the contract continues.
4. If an insurance contract is concluded, the remuneration is calculated from the insured amount. If this amount is not determined,
This remuneration is calculated in proportion to the insurance premium.

Article 779. Special remuneration
1. If a sales representative undertakes to vouch for the fulfillment of obligations under the transaction, then he can claim a special
reward; this right cannot be excluded for the future. The obligation can only be taken on a specific transaction or
for such transactions with certain third parties in which the sales representative mediates or enters into.
Acceptance of a commitment requires a written form.
2. The right to special remuneration arises with the conclusion of the transaction.

Article 780. Competition clause
1. A sales representative is not entitled, without the consent of the entrepreneur, to act outside the territory or circle of customers, or the sphere in
within which the sales representative mediates or concludes transactions for the entrepreneur, either directly or
participate indirectly in the activities of a competing entrepreneur (competition clause), except in cases of financial participation
in another enterprise. Consent to participate in the activities of a competing entrepreneur is deemed to have been issued if, upon
entering into a contractual relationship, the entrepreneur was aware of the fact of such participation.
2. In case of violation of this obligation by the sales representative, the entrepreneur may demand compensation for damage; Besides
In addition, the entrepreneur may require the sales representative to hand over prisoners to him for a competing
the entrepreneur of transactions, the return of the profit received from these transactions or the refusal of the claim for profit.
3. If the contract stipulates that the competition clause is valid after the end of the contractual relationship, then such a clause
valid only if the entrepreneur pays compensation for this, which is calculated according to the rules of Article 782
of this Code. Such an agreement is valid for a period not exceeding one year.

Article 781. Validity of the contract
1. An agreement with a sales representative is concluded for a period of one year, unless otherwise provided by the agreement. If neither side
three months before the expiration of the contract does not declare its termination, then the contract is considered extended for another
one year.
2. Immediate termination of the contractual relationship is possible in the presence of significant circumstances.

Article 782. Right to compensation
1. A sales representative may demand from the entrepreneur at the end of the contractual relationship, proportionate compensation, if and
insofar as:
a) the entrepreneur, and after the termination of the contractual relationship, has significant benefits from the business relationship with new customers,
which the sales representative has found;
b) the sales representative, as a result of the termination of the contractual relationship, loses the right to the remuneration that he would have if
continuation of such transactions with the already concluded or feasible in the future transactions with the clients he has found.
2. The search for a client is equal to such a significant expansion of business relations with the client by the sales representative that it
economically corresponds to the search for a new client.
3. The maximum compensation is the annual remuneration, calculated on the basis of the average amount over the last five years of activity.
sales representative. With a shorter duration of the contractual relationship, the average value is decisive
remuneration for the period of activity.
4. The right to compensation does not arise if:
a) the sales representative terminated the contractual relationship, unless the behavior gave a justified reason for this
an entrepreneur or if the sales representative cannot be considered capable of continuing his activities due to age or
due to illness;
b) the entrepreneur terminated the contractual relationship due to the fault of the sales representative;
c) on the basis of an agreement between an entrepreneur and a sales representative instead of a sales representative in a contractual relationship
a third party enters; the agreement cannot be concluded before the end of the contractual relationship.
d) the right to claim compensation cannot be excluded for the future. This requirement can be made within a year after
termination of contractual relations

Chapter 18. Commissioner

Article 783. Commission agent
A commission agent is a person who, in the course of fishing, takes over the purchase or sale of goods on his own behalf, or
securities at the expense of another person (principal).

Article 784. Duties of the Commission Agent
1. The commission agent shall be obliged to execute the transaction assumed upon himself with the care of an honest merchant; at the same time he observes the interests
the principal and follows his instructions.
2. The commission agent provides the principal with the required information, in particular, immediately notifies the commission about the performance; is he
is obliged to submit to the principal a report on the transaction and convey to him what he requested from the transaction.
3. The commission agent shall be liable to the consignor for the execution of the transaction if, simultaneously with the notification of the completion of the transaction, he fails
indicates the third party with whom he entered into a transaction.

Article 785. Instructions of the Principal
If the commission agent does not act in accordance with the instructions of the principal, then he is obliged to compensate the latter for losses; the consignor is not
is obliged to acknowledge the action of the transaction in relation to himself.

Article 786. Price Limits
1. If the commission agent made a sale at a price lower than the established one, or exceeded the price set for him to buy, then
the consignor, if he wants to reject the transaction as not made at his expense, must declare this immediately after the notification of
execution of the transaction; otherwise, the deviation from the specified price is considered approved.
2. If the commission agent, simultaneously with the notification of the completion of the transaction, is called to cover the difference in price, then the principal has no right
to reject the transaction. The principal's right to recover damages in excess of the difference in price remains unaffected.

Article 787. Favorable conclusion
1. If the commission agent enters into a transaction on more favorable terms than the principal established for him, then this is in favor of the principal.
2. This applies in particular if the price at which the commission agent sold exceeds the lowest price determined by the principal,
or if the price at which he bought does not reach the highest price specified by the principal.

§ 788. Damaged or defective
commission item
If the goods to be sent to the agent are in a damaged or defective condition when dispatched, which
is found during inspection, then the commission agent in relation to the carrier or the consignor is obliged to take care of the proof
the condition of the goods and immediately provide information to the consignor; if he does not do this, he is obliged to compensate for the losses.

Article 789. Responsibility of the commission agent for the goods
1. The commission agent is responsible for the loss and damage of the goods in his storage, unless the loss or
the damage is not based on circumstances that cannot be prevented by the care of an honest merchant.
2. The commission agent is responsible for the absence of insurance of the goods only if the principal has indicated to him
carry out insurance.

Article 790. Advance payment. Credit
1. If the commission agent, without the consent of the principal, has provided an advance payment to a third party or issued a loan, then the commission agent acts at his own risk.
2. If local regulations provide for a deferral in the payment of the purchase price, then, unless otherwise indicated,
the commission agent has the right to do so as well.
3. If the commission agent, without having the authority to do so, sells on credit, then he is obliged to immediately pay as a debtor
the purchase price to the consignor, if the price would have been lower when selling for cash, then the commission agent will only refund the lower price and,
if the latter is lower than the price set for it, - also the difference in accordance with Article 786 of this Code.

Article 791. Commission Commissioner.
Reimbursement of expenses
The commission agent may charge a commission if the transaction is executed. If the transaction is not executed, he nevertheless has the right to
delivery commissions, if applicable by local regulations; he may also charge a commission if the execution
the transaction concluded by him was not carried out for reasons related to the personality of the principal.

Article 792. Similar transactions
1. The rules of this chapter shall also apply if the commission agent, when engaging in his commercial trade, takes upon himself
conclusion at the expense of others on their own behalf of a transaction of a different type than that specified in Article 783 of this Code. Same
is valid if a merchant who is not a commission agent, when engaging in his trade, accepts an opinion

transactions in the designated manner.
2. A commission for the sale and purchase within the meaning of the provisions of this chapter is also a commission that has as its subject matter a delivery.
movable irreplaceable thing made from material acquired by the entrepreneur.

Page 15

Article 793. Applicability of the rules
The rules on the sales representative apply to the activities of the commission agent in matters not regulated by this chapter.

Chapter 19. Public promise of reward. Competition

Article 794. Concept

The person who made a public statement about the appointment of a reward for the commission of any action, in particular for the achievement
a certain result, is obliged to pay a reward to the one who performed the specified action, even if this person acted without taking into account
the publicly promised reward.

Article 795. Cancellation

1. A public promise of a reward can only be canceled before the performance of the announced action. Cancellation of a public promise
valid if announced in the same way as the promise of the award, or if special notice is given.
2. A public promise of an award may indicate a waiver of the right to cancel it; in case of doubt, such refusal
is implied if a deadline has been set for the performance of the action.

Article 796. Demanding an award by several persons

1. If the action for which the award was assigned was performed by different persons, then the one who was the first has the right to the award.
performed an action.
2. If the action is committed by several persons at the same time, then everyone has the right to an equal part of the award. If the reward is
its properties cannot be divided or if, in accordance with a public promise, only one person should receive it, then
the person who will receive the award is determined by lot.

Article 797. Competition

The public promise of a reward, which is based on the establishment of an award for the best performance of work, is valid only
when, when announcing a competition, a deadline for the performance of work

Article 798. Inadmissibility of changing the conditions of the competition

It is unacceptable to make changes to the tender conditions that could damage the participants in the tender.

Article 799. Determination of the winner

The decision on which of the submitted works deserves preference is taken by the person indicated at the announcement of the competition, and
in the absence of the latter, by the person who appointed the award. This decision is mandatory for all participants.

Article 800. Winning several persons in a competition

When submitting works of equal dignity, the prize is issued according to the rules provided for in paragraph 2 of Article 796 of this
Of the Code.

Article 801. Ownership of the work performed

The person who has appointed the award may demand the transfer of ownership of the work performed to him only if he
when publicly promising an award, indicated that such a transfer should be made

Chapter 20. Storage

Article 802. Concept

Under the storage agreement, the custodian undertakes to keep the movable property transferred to him by the depositor.

Article 803. Gratuitousness of storage

1. Storage is carried out free of charge, unless otherwise specified by the agreement. If the keeper carries out storage within
entrepreneurial activity, then the remuneration is considered agreed upon in silence about it.
2. If the amount of remuneration has not been determined, then in the presence of tariffs, the tariff rate is considered to be agreed, and in the absence of
tariffs - the usual remuneration.

Article 804. Obligation of the custodian in case of gratuitous storage

If the thing is accepted for storage free of charge, then the custodian is obliged to show such discretion with which he usually treats
their own affairs.

Article 805. Transfer for storage to a third party

1. The keeper shall not have the right to transfer the thing for storage to a third party without the consent of the depositor.
2. If the transfer for storage to a third party is made with the consent of the depositor, then the custodian is responsible only for the fault,
which lies with him in the choice of the third party and the storage location.

Article 806. Inadmissibility of using the thing deposited for storage

The keeper does not have the right to use the thing deposited with him without the consent of the depositor, unless the use
thing is necessary.

Article 807. Changing the order of storage of things

The keeper has the right, if necessary, to change the procedure for storing things. He must inform the depositor about this. The keeper also
is obliged to inform him about the claims of third parties for the thing deposited.

Article 808. Compensation for damage caused by the properties of a thing

The bailor must compensate the keeper for the harm caused by the storage of the thing deposited with him, except for cases when he does not
knew and could not know about the dangerous properties of the thing.

Article 809. Term for the return of a thing deposited for storage

The depositor may at any time demand the return of this thing, even if a storage period has been established.

Article 810. Demand of the custodian to take the thing back

1. The keeper of the thing may at any time demand from the depositor to take the thing for himself, if the storage period has not been determined.
2. The custodian may exercise this right only in such a way that the depositor could keep the thing in another way, except
cases when there is an important reason for the return of the deposited item.

Article 811. Place of return of things deposited for storage

The return of the thing must take place at the place specified in the contract, unless an agreement has been reached on another place
return. Shipping costs are the responsibility of the depositor.

Article 812. Obligation to transfer fruits of things deposited for storage

1. The keeper is obliged to transfer to the depositor the fruits received during storage.
2. The bailor shall be obliged to reimburse the custodian for the necessary expenses for the storage of the thing.

Article 813. Liability of the custodian for intent or gross negligence

If a deadline is set for the return of the thing deposited, then after this deadline, the keeper is only liable
for intent or gross negligence.

Article 814. Obligation to pay remuneration

If storage was carried out on a reimbursable basis, then the depositor is obliged upon termination of the contract to pay the custodian
agreed remuneration.

Article 815. Right of withholding of a thing deposited for storage

Until the due remuneration is received and the costs incurred in connection with the storage are reimbursed, the custodian may refuse
transfer of the thing deposited.

Article 816. Specifics of depositing generic things

If the generic things are deposited in such a way that the property must pass to the keeper, and the keeper is obliged to return
things of the same kind, quality and quantity, the relevant rules of the loan agreement apply.

Article 817. Peculiarities of depositing in hotels

Hotels, sanatoriums and rest houses are responsible for harm caused to the guest by loss, destruction or damage
things he had with him. This rule does not apply to money and jewelry, unless they have been deposited specifically.

Article 818. Release from liability in case of force majeure

1. Liability is excluded if the harm was caused by force majeure, by the guest or a person accompanying the guest, or
properties of the thing itself.
2. The obligation to compensate for damage does not apply to a car and things left in it.

Chapter 21. Delivering for storage to a warehouse

Article 819. Concept

The relevant provisions of the storage agreement apply to the storage contract if
this chapter does not provide otherwise.

Article 820. Obligation to bona fide fulfillment of storage obligations

The warehouse keeper must, with the prudence of a conscientious business executive, fulfill the obligations to store the items handed over to him.
storage of goods.

Article 821. Checking by the custodian of the quantity of goods

1. The keeper is not obliged, when accepting the goods for storage, to check their quantity, dimensions, weight, type, quality and other properties, if from
otherwise does not follow from the rules of this chapter.
2. If the goods transferred to the custodian for storage, upon transfer, turns out to be damaged or incomplete, which is also noticeable during
external examination, then the custodian is obliged to immediately inform the depositor about this; if he does not fulfill this duty, then he
must make amends.

Article 822. Right to Inspect the Goods Put in Storage

The keeper is obliged to allow the depositor to inspect the delivered goods, take samples or carry out
necessary activities.

Article 823. Duty to Notify

The keeper is obliged to immediately inform the depositor that he is transferring the stored goods to another warehouse, or if
discovers that the properties of the goods have changed or there is a danger of this. He must report this to the last known to him.
to the owner of the warehouse certificate. If this obligation is not fulfilled, he is obliged to compensate for the damage that has occurred.

Article 824. Obligation to compensate for harm

The keeper is liable for damage caused by the loss or damage of the goods transferred to him for storage, except in cases where
when a conscientious custodian could not have prevented it.

Article 825. Peculiarities of keeping generic things

1. When storing generic things, the keeper only then has the right to mix them with things of the same type and property, if there is
resolution.
2. The depositor has the right of common ownership to the goods formed as a result of such mixing. Share of everyone
the depositor is determined according to the quantity of goods delivered by them.
3. The custodian is obliged to return the goods to each depositor in accordance with the share due to him, without asking for consent.
the rest of the depositor.

Article 826. Sale of goods deposited for storage

If the stored goods deteriorate and change so much that they may be depreciated, and the custodian does not have time to
messages or he cannot inform the authorized person about it, then he is entitled to sell the goods. Proceeds from the sale of goods
the amounts minus storage and sale costs are transferred to the depositor.

Article 827. Warehouse certificate

Upon acceptance of the goods, the custodian is obliged to issue a warehouse certificate to the depositor.

Article 828. Details of the warehouse receipt

1. The warehouse receipt must indicate:
a) the date of issue of the warehouse certificate and the registration number;
b) the name (name) of the parties and the address;
c) the place of storage of the goods;
d) a description of the goods to be stored (quantity, size or weight) and its quality; if there is a package - a description of the package;
e) the amount of remuneration and other necessary expenses;
f) the price of insurance, if the goods deposited are subject to insurance;
g) the term of the agreement;
h) signature of the custodian, certified by the appropriate seal.
2. If the conditions specified in this article are not fully reflected in the warehouse certificate, then this does not exempt the parties from
responsibility.
The parties have the right to include other conditions in the warehouse receipt.

Article 829. Warrant

The owner of the warehouse receipt can, by means of a pledge certificate, pledge the goods deposited in storage as security
other obligation in such a way that the goods will not be taken out of the warehouse (guarantees).

Article 830. Warrant warehouse certificate

If the keeper issues an order warehouse certificate, then it can be transferred to a third party by means of endorsement.

Article 831. Liability for endorsed warehouse certificate

1. If the warehouse certificate is issued by means of endorsement, the custodian is liable to the owner of this
certificates for the accuracy of the information specified in it, except in cases where the certificate explicitly states that this data
are based on the information of the depositor or a third party.
2. If the custodian knew about the inaccuracy of the data, he is responsible even if he made the note specified in clause
1 of this article.
3. In case of mixed storage, the custodian shall not have the right to make the mark specified in paragraph 1 of this article.

Article 832. Presumption of correctness of endorsement

1. The keeper who issued the warehouse order certificate is obliged to return the stored goods only to the legal owner
warehouse certificate.
2. If a pledge warehouse certificate is issued, the custodian must demand its return.
3. The custodian is not obliged to check the correctness of the endorsement. The transfer is certified by a corresponding inscription in the warehouse.
testimony.

Article 833. Loss of warehouse certificate

1. In case of loss or destruction of a warehouse certificate or a certificate of pledge, their legal owner has the right to apply to
an application to the court and demand the invalidation of the lost document and the issuance of a new certificate instead. Court
considers the application in a special procedure.
2. On the basis of a court decision, the keeper issues a repeated warehouse certificate and a certificate of pledge.

Article 834. Pledge of goods deposited for storage

1. To pledge the goods handed over to the warehouse for storage, the owner must make a special inscription on the pledge certificate, and so
transfer it.
2. The endorsement must provide information about the identity of the depositor and the creditor and the scope of the obligation.
3. The custodian is notified of the transfer of the certificate of deposit, who makes the appropriate note.

Article 835. Transfer of the right of pledge to the new owner of the warehouse certificate

1. In connection with the costs of storing the goods, the custodian has the right to pledge the goods as long as he is in his possession.
2. If the warehouse receipt is issued by endorsement, the right of pledge exists in relation to the new owner.

Article 836. Inadmissibility of the requirement to take back the goods deposited for storage

The keeper does not have the right to demand from the depositor to take back the stored goods before the expiration of the established period, and if such
the deadline is not set, then before the expiration of three months after delivery. If the storage period is not defined or after a certain period
the custodian keeps the goods in the warehouse, he can demand from the depositor to pick up the goods only after one month
after the termination of the contract.

Article 837. Appointment of an additional term

1. If, after the expiration of the storage period, the holder of the warehouse certificate evades taking the goods out of the warehouse,
the custodian must give him an additional two weeks. If within this period the goods are not collected, the keeper has the right
sell it.
2. The amount received from the sale, minus the expenses due to the custodian, shall be transferred to the holder of the warehouse certificate.

Chapter 22 Insurance

§ 1. General Provisions

Article 838. Concept

1. Under the insurance contract, the insurer is obliged to reimburse the policyholder for damage caused by the occurrence of an insured event, in
in accordance with the terms of the contract. In case of insurance for a fixed amount, the insurer is obliged to pay the sum insured

or take another agreed action.
2. The policyholder is obliged to pay the insurance premium (premium).
3. The insurance contract is considered concluded from the moment of payment of the insurance premium (premium), unless otherwise provided
the legislation of Turkmenistan and the rules of insurance of the corresponding type of insurance.
(As amended by the Law of Turkmenistan dated December 22, 2012 - Bulletin of the Mejlis of Turkmenistan, 2012, No. 3, art. 109__)

Article 839. Obligation to conclude an insurance contract

The insurer who offered to conclude an insurance contract is obliged to conclude this contract, if there are no real
grounds.

Article 840. Compulsory state insurance

The law may provide for compulsory state insurance, in respect of which the rules of this
chapters, if it does not contradict the legislation on compulsory insurance.
(As amended by the Law of Turkmenistan dated December 22, 2012 - Bulletin of the Mejlis of Turkmenistan, 2012, No. 3, Article 109)

Article 841. Insurance contract (insurance certificate-policy)

1. The insurer is obliged to hand over to the policyholder a signed document on insurance - an insurance contract (insurance certificate-policy).
2. The insurance certificate must contain:
a) data on the identity of the parties and their location (place of residence);
b) the name (name) of the insured item or person;
c) type of insurance risk;
d) the beginning and duration of insurance;
e) sum insured;
f) insurance premium, place of payment and term;
j) franchise;
k) signatures of the parties.
3. If the subject of insurance is the life of a person, the following additional data is required:
a) place of calculation of profit and participation in it;
b) the amount of the ransom, payments that are not contributions, and the limits within which these payments are guaranteed.
(As amended by the Law of Turkmenistan dated December 22, 2012 - Bulletin of the Mejlis of Turkmenistan, 2012, No. 3, article 109)

Article 842. Reinsurance contract

The risks assumed by the insurer on the basis of an insurance contract may be fully or partially reinsured for another
insurer (s). In this case, the insurer under the insurance contract (main contract) that has entered into the contract
reinsurance is considered in this last contract by the policyholder.
The relationship between the insurer and the reinsurer is governed by the reinsurance contract or in the manner prescribed
legislation of Turkmenistan. At the same time, the obligations of the insurer to the policyholder are fully preserved.
(As amended by the Law of Turkmenistan dated December 22, 2012 - Bulletin of the Mejlis of Turkmenistan, 2012, No. 3, article 109)

Article 843. Consequences of loss of insurance certificate

1. If the contract stipulates that the insurer must fulfill his obligations only after the submission of the insurance
certificates, but the certificate is lost or destroyed, the policyholder may require performance only if
the certificate was declared null and void subject to special rules.
2. In case of loss or destruction of the insurance certificate, the policyholder may demand a duplicate from the insurer. Issuance costs
the duplicate is borne by the policyholder.

Article 844. Rights of an insurance agent

1. The powers of the insurance agent to carry out intermediary activities are determined by the relevant documents
insurer.
2. An insurance agent acting as an intermediary in concluding an insurance contract is entitled to conclude such an agreement.
3. An insurance agent carrying out his activities on behalf of and on behalf of the insurer is entitled to remuneration.
(As amended by the Law of Turkmenistan dated December 22, 2012 - Bulletin of the Mejlis of Turkmenistan, 2012, No. 3, art. 109)

Article 845. Commencement of insurance

1. Insurance starts at 24 hours on the day of the conclusion of the contract and ends at 24 hours on the last day of the period provided for
agreement.
2. If the insurance contract is concluded for a period exceeding five years, then each of the parties may terminate the contract after three
months after the warning about it.
3. The agreement that the insurance relationship will be prolonged by silence and it will not terminate ahead of schedule shall be void if
the contract is extended for more than one year. The policyholder is obliged to always comply with the three-month term for cancellation of the contract.

Article 846. Consequences of an increase in insurance premium

If the insurer has increased the insurance premium, the policyholder may, in compliance with the monthly term of termination of the contract, terminate
contract. A slight increase in the insurance premium does not give rise to such a right.

Article 847. Obligation to provide information

1. When concluding a contract, the policyholder must inform the insurer of all circumstances known to him that have significant
significance for the occurrence of danger or insured event. Circumstances that may have an impact are material
on the decision of the insurer to withdraw from the contract or conclude it with amended content.
2. A circumstance about which the insurer clearly and unambiguously requests the policyholder in writing is also considered essential.
3. If the insurer has not been notified of significant circumstances, he may withdraw from the contract. The same meaning is also
then, if the insurer deliberately evades reporting a material circumstance.
4. Termination of the contract is unacceptable if the insurer knew about the hidden circumstance or the policyholder was not guilty of not reporting
such a circumstance.

Article 848. Consequences of reporting incorrect data

1. The insurer may cancel the contract even if the message about a material circumstance contains incorrect
data.
2. Cancellation of the contract is unacceptable if the inaccuracy of the data was known to the insurer and the policyholder was not guilty of submitting
incorrect data. The insurer may terminate the contract within one month after reporting this data.

Article 849. Termination of an insurance contract due to failure to provide information

If the policyholder had to answer written questions about the circumstances of the danger, the insurer has the right to terminate the contract
due to the failure to communicate the circumstances, about which the questions were not raised, but the policyholder was deliberately silent about them.

Article 850. Term for termination of an agreement due to failure to provide information

1. Within one month after not reporting the information provided for in this Chapter, the insurer may terminate the contract.
This period starts from the moment when the insurer becomes aware of the breach of the obligation to report.
2. The policyholder must be notified of the termination of the contract.

Article 851. Termination of the contract after the occurrence of an insured event

If the insurer terminates the contract after the occurrence of the insured event, he is not released from the performance of his obligations,
if the circumstance, the obligation to report about which was violated, does not affect the occurrence of the insured event and the performance
responsibilities of the insurer.

Article 852. Obligation to communicate information about increased danger

1. The policyholder is obliged to immediately inform the insurer about the increased danger that arose after the conclusion of the contract, if this
would have a significant impact on the conclusion of the contract.
2. In this case, the insurer has the right to terminate the contract in compliance with the one-month period or to demand an appropriate
increase in the insurance premium. If the policyholder has deliberately caused an increase in danger, the insurer may terminate the contract,
without observing the monthly deadline.

Article 853. Obligation to report the occurrence of an insured event

1. Having learned about the occurrence of an insured event, the policyholder is obliged to immediately inform the insurer about it.
2. The insurer may, upon the occurrence of an insured event, demand from the policyholder any information that is necessary for
establishing the insured event or the scope of the obligation.
3. The insurer cannot rely on an agreement, according to which it is released from its obligations, if the policyholder does not
fulfills the obligations of the message, and this does not significantly violate the interests of the insurer.
4. The insurer must fulfill his obligations after the occurrence of the insured event and the determination of the amount of the insurer's payments.

§ 2. Insurance premium

Article 854. Obligation to pay insurance premium

1. The policyholder receives an insurance contract after paying the insurance premium.
2. If interest in insurance is lost, the insurer may demand a portion of the insurance premium corresponding to the duration
the risk taken. The insurer may claim remuneration corresponding to the service provided.
(As amended by the Law of Turkmenistan dated December 22, 2012 - Bulletin of the Mejlis of Turkmenistan, 2012, No. 3, article 109)

Article 855. First insurance premium

Until the timely payment of the first or one-time insurance premium, the insurer is free from its obligations.

Article 856. Late payment of insurance premium

1. If the insurance premium is not paid on time, the insurer may determine in writing a two-week period for payment. Wherein
the consequences of the delay must be indicated.
2. If after the expiration of the term, an insured event occurs and by this time the policyholder has delayed the payment of the premium or payment
percent, the insurer is released from its duties.
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Article 857. Termination of the contract due to late payment of the insurance premium

If the policyholder fails to pay the insurance premium on time, the insurer may notify the policyholder a month earlier about
terminate the contract and terminate it in the event of an ineffectual expiration of this period.

Article 858. Termination of payment of insurance premium

The policyholder may terminate the payment of the insurance premium if, after the conclusion of the contract, it turns out that the economic situation
the insurer has deteriorated so much that there is a real danger of failure to fulfill its obligations under the contract in case
the occurrence of an insured event.

§ 3. Damage insurance

Article 859. Obligation to compensate for harm in money

The insurer must compensate for the damage in money.

Article 860. Limits of compensation for harm

The insurer will indemnify for damage only up to the sum insured.

Article 861. Insurance comparison

1. If it turns out that the sum insured significantly exceeds the value of the insured interest (insurance valuation), as
the policyholder and the insurer may require a reduction in the sum insured in order to prevent excessive insurance from
an immediate corresponding reduction in the premium.
2. If the policyholder enters into a contract to obtain improper income by overstating the insurance, the contract is considered
invalid. The contributions paid to the insurer prior to the invalidity of the contract remain to him, if by the time of the conclusion
the contract did not know about the invalidity.

Article 862. Features of property insurance

If the property is insured and it does not follow otherwise from the circumstances of the case, the value of the property shall be deemed to be the insured amount.

Article 863. Insurance of lost profits

Insurance also applies to benefits that were not received due to the occurrence of an insured event, if provided
insurance contract or the legislation of Turkmenistan.
(As amended by the Law of Turkmenistan dated December 22, 2012 - Bulletin of the Mejlis of Turkmenistan, 2012, No. 3, article 109)

Article 864. Insurance of the aggregate of things

If a set of items is insured, the insurance applies to all items included in it.

Article 865. Amount of insurance compensation

The insurer is not obliged to pay the insured an amount in excess of the damage caused even if the remuneration for
the insurance exceeds the sum insured at the time of the insured event.

Article 866. Reduced or incomplete insurance. Double insurance

1. If the sum insured is less than the insurance estimate at the time of the insured event (reduced or incomplete insurance),
the insurer shall indemnify only that part of the damage that is equal to the assessment of the sum insured and the insurance premium.
2. A person who has simultaneously insured the same interest with several insurers is obliged to immediately notify about it
to every insurer.
3. If the interest is insured against the same risk with several insurers and the sums insured in aggregate exceed
insurance estimate or for other reasons the total amount of indemnities that would be paid by each insurer if
the absence of an insurance contract with another insurer exceeds all losses (double insurance), then insurers like
joint and several debtors are obliged to the policyholder within the amount for which they have entered into an agreement with the policyholder, however
the policyholder is not entitled to receive in aggregate an amount exceeding the amount of real harm.

Article 867. Invalidity of double insurance

If the policyholder has taken out double insurance in order to obtain an illegal income, then each contract concluded with this
purpose is considered invalid.

Article 868. Fault of the policyholder upon the occurrence of an insured event

The insurer is released from the performance of his obligations if the policyholder has caused an event provided for by the insurance
intentionally or by gross negligence.

Article 869. Obligation to comply with instructions of the insurer

1. The policyholder is obliged, upon the occurrence of the event provided for by the insurance, to prevent or reduce the damage and in this connection
follow the instructions of the insurer.
2. The insurer is obliged to reimburse the expenses incurred as a result of the execution of his instructions.

Article 870. Insurance of damage caused by force majeure

The insurer is liable for damage caused as a result of force majeure only if it
stipulated by the terms of the insurance contract or the legislation of Turkmenistan.
(As amended by the Law of Turkmenistan dated December 22, 2012 - Bulletin of the Mejlis of Turkmenistan, 2012, No. 3, article 109)

Article 871. Demand for compensation for harm by a third party

1. If the policyholder can file a claim against a third party for compensation for damage, then this claim shall pass to the insurer,
if he reimburses the harm to the policyholder. If the policyholder waives his claim against a third party or the right to
securing his claim, then the insurer is released from the obligation to compensate for damage to the extent that he could receive in
as a result of the exercise of the right to reimbursement of their expenses or in connection with the presentation of a claim.
2. If the insured's right to claim compensation for harm concerns a family member living with him, the transfer of the right
excluded unless a family member intentionally caused harm.

Article 872. Consequences of alienation of insured property

If the insured property has been alienated, then the rights of the policyholder are transferred to the acquirer.

Article 873. Obligation to notify about alienation of insured property

The insurer must be immediately notified of the alienation of the insured property. If the acquirer or alienator
did not immediately notify the insurer about this, he is released from the obligation to indemnify if the insured event occurred through
month from the moment the insurer should have received the message.

Article 874. Termination of insurance upon alienation of insured property

1. The insurer shall have the right to terminate the relationship of insurance with the purchaser in compliance with the one-month term for terminating the contract.
The right to terminate the contract becomes invalid if the insurer does not use this within one month from the moment when
it became known about the alienation of property.
2. The acquirer has the right to terminate the insurance contract; he can terminate the contract only immediately or by the end of the current
period of insurance. The right of termination is lost if the acquirer, within one month after the acquisition, does not
will exercise this right, and if the acquirer was not aware of the insurance, the right of termination remains in effect until the expiration
one month from the time he learned about the insurance relationship.
3. If the insurance contract is terminated on the basis of the rules of this article, the alienator is obliged to pay the insurer the insurance
contribution, but not more than what was due for the period of insurance, including the moment of termination of the contract; in this case
the purchaser is not responsible for the payment of the sum insured.

Article 875. Conclusion of an insurance contract in favor of another person

The policyholder may conclude an insurance contract with the insurer on his own behalf for the benefit of another person.

Article 876. Rights of another person in an insurance contract

1. When insuring in favor of another person, the rights arising from this contract belong to that person. Insurance claim right
only the policyholder has a certificate.
2. The insured person may exercise his rights without the consent of the policyholder and demand the exercise of his
rights in court only if the insurance certificate is in his hands.

Article 877. Rights of the policyholder

1. The policyholder may, on his own behalf, exercise the rights belonging to the insured person under the contract.
2. If the insurance certificate is issued, the policyholder may, without the consent of the insured person, receive the sum insured or transfer
the right to the insured person only if he owns the insurance certificate.
3. The insurer is obliged to make payments in favor of the insured only if the insured proves that the insured
the person agreed with the insurance contract.

§ 4. Civil liability insurance

Article 878. Concept

Under a civil liability insurance contract, the insurer is obliged to release the policyholder from the obligation that
is assigned to him in front of a third party regarding liability arising during the period of insurance.

Article 879. Demand for direct compensation for harm

The insurer, within the limits of its obligation, is obliged to directly compensate for the damage if the person who suffered the damage presents
demand for him.

Article 880. Court and extrajudicial expenses

Insurance includes legal and non-judicial costs incurred to defend against claims of a third party, if based on
the circumstances of the case require reimbursement of such costs.

Article 881. Release of the insurer from liability

The insurer is released from liability if the policyholder deliberately caused the occurrence of a circumstance due to which
he is liable to a third party.

Article 882. Liability in case of compulsory state insurance

1. If the insurer is completely or partially free from the obligation to the policyholder, then under the law
compulsory state insurance, his liability to a third party remains in force.
2. If the insurer satisfies the claims of a third party, the claim of the third party in relation to the policyholder shall pass to
the insurer.
(As amended by the Law of Turkmenistan dated December 22, 2012 - Bulletin of the Mejlis of Turkmenistan, 2012, No. 3, article 109)

§ 5. Life insurance

Article 883. Concept

1. Life insurance may concern the policyholder personally or another person.
2. If the life insurance contract is concluded in favor of a third party, then the written consent of this person or his legal
representative.

Article 884. Inadmissibility of refusal to conclude a contract

If the policyholder violates his obligation to report information when concluding the contract, the insurer cannot refuse
agreement, if five years have passed since the conclusion of the agreement. Withdrawal from the contract is allowed if the obligation to report information is not
performed on purpose.

Article 885. Termination of a contract in case of periodicity of payment of insurance premiums

If insurance premiums are paid periodically, the insurer can terminate the insurance relationship at any time, but to
the end of the current insurance period.

Article 886. Transfer of the right to compensation to a third party

1. In case of accumulative insurance, the insurer may transfer the right to receive to a third party, as well as replace the third party with another
a person, unless otherwise provided by the contract. The insurer's right to replace a third party entitled to receive, if available
doubts are also recognized in cases where the name of a third party is included in the contract.
2. A third party entitled to receive it can only exercise it upon the occurrence of an insured event, if the policyholder does not
gave other instructions.

Article 887. Inappropriate third party

1. If the obligation of the insurer does not correspond to the right of a third party in case of endowment insurance, this right remains
to the insured.
2. If a third party does not use its right to receive benefits in end-to-end insurance, this right remains with the policyholder.

Article 888. Release of the insurer from the obligation to compensate for harm

1. If the contract is concluded in the event of the death of another person, and not the policyholder, the insurer is released from its obligations in the event,
when the policyholder has caused the death of such a person by illegal actions.
2. If in the case of death insurance a third party has the right to receive, this right is not recognized if this person intentionally
illegal actions caused the death of the person whose life was insured.

Article 889. Exemption from compensation for suicide

1. Unless otherwise provided by the contract, in life insurance, the insurer is released from his obligations if the person, life
whom she was insured would commit suicide.
2. The heirs of the policyholder have the right to demand the return of the paid insurance premiums.

Article 890. Amendment of the insurance contract

1. The policyholder may, at any time before the end of the current insurance period, demand the replacement of the insurance contract.
an agreement with the termination of the payment of insurance premiums in the future.
2. If the policyholder requires such a replacement, then from that moment on, the sum insured or the amount of benefit provided for in the contract
is replaced by the amount, which is determined taking into account the age of the insured person, if the amount received in the form of the insurance premium
will be treated as a one-time fee.

Article 891. Deductions upon termination of a contract

If the life insurance contract is terminated due to refusal, termination or appeal, the insurer is obliged to refund the premiums
to the extent that he received them under such an agreement. The insurer can make reasonable deductions.

Article 892. Consequences of Compulsory Execution

1. If the enforcement of the decision is carried out on the basis of an insurance claim or the proceedings are carried out in connection with
the insurer's bankruptcy, the person specifically named as the recipient is entitled to replace the policyholder in the contract
insurance. If the person with the right to receive benefits participates in the contract, he must satisfy all the requirements
the lender or secure the mass of bankruptcy within the amount that he may require from the insurer upon termination
contract.
2. If the person who has the right to receive benefits is not interested in receiving it or is not named by name, then such a right
acquired by the spouse or children of the policyholder.

§ 6. Accident insurance

Article 893. Concept

1. An accident insurance contract may be concluded both in relation to the policyholder and in relation to another person.
2. If the insurance contract was concluded not by the insured person, but in his favor, then the rules apply to this contract
life insurance.

Article 894. Consequences of causing harm to health

If the obligation of the insurer does not depend on the deliberate infliction of damage (harm) to health, then the lack of intention
assumed until proven otherwise.

Article 895. Consequences of deliberately causing an accident

1. The insurer is released from his obligations if, when insuring another person, the person in whose favor the
the insurance contract, by deliberately illegal actions will cause an accident.
2. If another person has the right to receive benefits, then he is deprived of this right if he causes an accident
deliberate illegal actions.

Article 896. Obligation to report an accident

If the obligations are to be performed in favor of the beneficiary, then this person is obliged to declare the accident. it
the rule also applies to the obligation to communicate information and transfer documents.

Article 897. Inadmissibility of the right of recourse

The policyholder has no recourse against the person liable for the harm.

Chapter 23. Banking services

§ 1. Calculations

Article 898. Concept

1. Under the agreement on the bank account, the credit institution is obliged to make payments from the current account of its client within the limits
the amounts available on the account and credit the amounts received on the account.
2. On the basis of the owner's instructions, it is possible to carry out the same operations with cash.
3. By agreement of the parties, the owner of the current account may be obliged to pay the maintenance costs.

Article 899. Obligation to issue account statements

1. A credit institution is obliged to keep books for cash and non-cash payments.
2. The credit institution is obliged to provide the account holder with information on the account status within the time frame stipulated by the contract.
(account statement), and the account holder is entitled to request information about the account status at any time.

Article 900. Writing off funds from the account

The credit institution is obliged to write off funds from the account with the permission or on the basis of the owner's instructions
accounts. Otherwise, it is obliged to reintroduce the damage caused and the incorrectly transferred amounts to the account holder's asset.

§ 901. Consequences of canceling the order of the account holder

1. The account holder has the right to cancel the order given to the credit institution as long as the transfer is not yet actually valid.
implemented. In other cases, the credit institution is obliged to immediately inform the relevant persons of the refusal to execute.
2. In case of timely cancellation, the credit institution is obliged to re-credit the amount to the owner's account.

Article 902. Obligation to keep secrets

1. The credit institution is obliged to keep the secrecy of account-related and other facts that have become known to it in the course of business relations.
with the account holder, except as otherwise provided by law, or if the matter concerns ordinary banking information, do not
infringing on the interests of the account holder.
2. This obligation of the credit institution remains in effect even after the termination of the agreement.

Article 903. Termination of contract

1. The bank account agreement can be terminated by both parties at any time.
2. The credit institution may terminate the agreement only in such a way that the account holder could otherwise obtain the settlement
service, unless there are important reasons for termination.

Article 904. Payment on the basis of a check

With the appropriate agreement, the credit institution is obliged within the asset to reimburse the checks signed by the account holder in
in accordance with the current legislation of Turkmenistan. For this, the provisions of the agreement on cashless payments apply.

Article 905. Collection of a check

A credit institution is obliged, even without an additional agreement, under a settlement agreement to make
collection of the checks presented by the owner by timely presentation to the credit institution, and in case of non-payment
- take the necessary measures to ensure.

§ 2. Bank loan

Article 906. Concept

Under a bank loan agreement, the lender transfers or is obliged to transfer to the borrower a repayable loan in the form of a loan.

Article 907. Interest rates on a bank loan

1. By agreement of the parties, the loan may be fixed or variable interest rates.
2. If the agreement provides for variable interest rates and the creditor could determine them, he is obliged to determine them on the basis of
justice. He must, as market rates rise or fall, adjust his rates to match them.
3. The change in interest should correspond to the discount rate of the Central Bank of Turkmenistan.
4. When concluding a loan agreement, the limits of raising and lowering interest rates and the minimum
the interval between changes.
5. The lender is obliged to inform the borrower in an acceptable form about the interest rates on the loan.
6. If no annual interest rate is specified, only the statutory annual interest rate applies. If in calculating
no reimbursement of expenses was provided for per annum interest, these expenses are not reimbursed.

Article 908. Interest rates established by law

1. If the borrower delays payments assigned to him under the bank loan agreement, then the amount owed must be
the amount charged is three percent higher than the discount rate of the Central Bank fixed for the corresponding period
Turkmenistan.
2. If the lender terminated the bank loan agreement due to the delay in repayment of the loan, then the right of claim arises
the statutory interest rate. This rule does not apply to the right of the lender or borrower to prove
in some cases, the presence of more or less harm.

Article 909. Application of additional security

1. If, when issuing a loan, property or personal security was agreed, then the lender may, in case of incomplete repayment of the loan
require the application of additional security.
2. The lender is obliged, at the request of the borrower, to return the collateral in excess of the agreed repayment limits.

Article 910. Termination of contract

1. If a fixed interest rate has been agreed for a loan for a certain period, the borrower may terminate the loan.
contract if the interest obligation ends before the deadline for the return and a new agreement has not been entered into
interest rate. The termination period is one month.
2. If the borrower is a consumer and the loan is not secured by a mortgage, the right of termination arises six months after
obtaining a loan, and the termination period is three months.
3. The right of termination exists in any case after ten years. The termination period is six months.
4. The debtor may terminate a loan at any time with a variable rate of interest within a three-month period.

Article 911. Compensation for damage in case of early repayment of credit

If the borrower repays the loan before the end of the credit relationship, then the lender may demand an appropriate reimbursement
harm. At the same time, the cost of the saved expenses, as well as the benefit that the creditor could
receive as a result of other use of the loan currency or if the borrower deliberately did not allow its receipt.

Article 912. Termination of credit relations upon repayment of credit in installments

The lender may terminate the credit relationship if the loan is to be repaid in installments and the borrower is delayed as
at least two terms in a row. Termination is effective if and after granting an additional two-week deadline for payments
will not be produced.

§ 3. Contribution

Article 913. Concept

1. By making a sum of money (deposit), the credit institution acquires ownership of it and is obliged upon occurrence
term in the same currency to return the amount received.
2. If the term is not specified, the amount of money may be claimed at any time.
3. Deposits must be charged with interest accordingly.

Article 914. Liability of the heads of credit institutions

1. The recipient of the savings and the head of the credit institution are obliged to provide the depositor with information on liquidity and
bank bonitet.
2. The person who guiltyly gave incorrect information or refused to provide the necessary information is obliged to compensate
the depositor is harmed as a result of incorrect information.
3. The directors of the bank shall be jointly and severally liable, who publicly in advertising brochures or otherwise
disseminate incorrect information about the liquidity and bonitet of the bank.

Article 915. Savings book

If a credit institution issues a savings book, then it is entitled to fill it in both in name and to the bearer. If a
the bearer is unauthorized, then the credit institution is released from liability only if it, when filling out
the book did not act intentionally or through gross negligence.

§ 4. Documentary (commodity) letter of credit. Documentary collection

Article 916. Concept

1. By opening a letter of credit, a credit institution (which opened a bank) is obliged at the request and order of the client (who gave
order of a letter of credit) instead of the specified document, pay to a third party (remitter) at his instruction or a sum of money, or
pay the bill transferred by the payee, or make an acceptance, or instruct another bank to carry out this operation, if
the conditions of the loan are met.
2. The client is obliged to pay the agreed fee.

Article 917. Collection order

By a collection order, a credit institution (bank) eligible for a collection operation assumes the obligation to
on behalf of the client (principal) to issue trading securities in exchange for acceptance or, if necessary, in return for payment
payer.

Article 918. Customs of international law

Unless otherwise agreed, the rights and obligations of the parties are determined according to the established customs of a documentary credit or
documentary collection in international circulation.

§ 5. Bank guarantee

Article 919. Concept

By virtue of a bank guarantee, a bank, another credit institution or an insurance organization (guarantor) at the request of another person
(the principal) undertakes a written commitment that, in accordance with the terms of the undertaken obligation, he will pay the creditor
the principal (beneficiary) a sum of money based on the written request of the beneficiary.

Article 920. Remuneration for a bank guarantee

1. The bank guarantee ensures the proper performance by the principal of his obligations in relation to the beneficiary.
2. For the issuance of a bank guarantee, the principal shall pay the guarantor the agreed remuneration.

Article 921. Independence of the guarantor's obligation from the basic obligation

The obligations of the guarantor in relation to the beneficiary, provided for by the bank guarantee, in the relationship between them are not
depend on the underlying obligation for which it was issued, even if the guarantee contains an indication of this obligation.
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Article 922. Inadmissibility of revoking a bank guarantee

A bank guarantee cannot be revoked, unless otherwise provided therein.

Article 923. Inadmissibility of transferring to another person the claim belonging to the beneficiary

Based on the bank guarantee, the beneficiary's right to claim against the guarantor cannot be transferred to a third party if
the warranty does not provide otherwise.

Article 924. Entry into force of a bank guarantee

The bank guarantee comes into force from the date of its issue, unless otherwise provided by the guarantee.

Article 925. Form of presentation of demand

1. The requirement of the beneficiary for the payment of a sum of money against a bank guarantee must be presented to the guarantor in writing
form with the attachment of the documents specified in the guarantee. In the demand or in the annex to it, the beneficiary must indicate what
a violation by the principal of the basic obligation, in support of which the guarantee was issued, is expressed.
2. The claim of the beneficiary must be presented to the guarantor before the expiry of the guarantee for which it was issued.

Article 926. Obligation of the guarantor upon receipt of the claim of the beneficiary

1. After receiving the request of the beneficiary, the guarantor must immediately inform the principal of this and give him a copy
requirements along with all related documents.
2. The guarantor must, within a reasonable time, consider the request of the beneficiary with the attached documents and show reasonable diligence
to establish whether or not the claim with the enclosed documents complies with the warranty conditions.

Article 927. Refusal of the guarantor to satisfy the claim of the beneficiary

1. The guarantor must refuse to satisfy the beneficiary's demand, if this demand or the documents attached to it are not
comply with the terms of the guarantee or are presented to the guarantor after the expiry of the period specified by the guarantee. The guarantor must
immediately inform the beneficiary about the refusal to satisfy his demand.
2. If, prior to the satisfaction of the beneficiary's claim, the guarantor became aware that the main
the obligation in the relevant part has already been fulfilled in full, has ceased on other grounds or is invalid, then he
must immediately report this to the beneficiary and the principal. Re-request of the beneficiary received after such
guarantor's warnings are subject to execution by the guarantor.

Article 928. Limits of the obligation of the guarantor

1. The obligation of the guarantor in relation to the beneficiary, provided for by the bank guarantee, is limited to the payment of the amount for
which the guarantee is issued.
2. Unless otherwise provided by the guarantee, the responsibility of the guarantor in relation to the beneficiary for non-performance or improper
the performance of the obligation arising from the guarantee is not limited to the amount for which the guarantee was issued.

Article 929. Grounds for termination of the obligation of the guarantor

1. The obligations of the guarantor in relation to the beneficiary are terminated:
a) payment to the beneficiary of the amount for which the guarantee was issued;
b) expiration of the period specified by the guarantee for which it was issued;
c) refusal of the beneficiary from his rights arising from the guarantee and their return to the guarantor;
d) written confirmation of the guarantor of the beneficiary's waiver of his rights.
2. The termination of the obligations of the guarantor on the grounds provided for in paragraphs "a", "b" and "c" of paragraph 1 of this article does not depend on
whether or not the warranty has been returned to him.
3. The guarantor, who becomes aware of the termination of the guarantee, must immediately inform the principal about it.

Article 930. Right of recourse

1. The right of the guarantor to demand from the principal, by way of recourse, the payment of the amount that was issued to the beneficiary under the bank guarantee,
is determined by the agreement of the guarantor with the principal, in the execution of which the guarantee was issued.
2. The guarantor shall not have the right to demand from the principal the return of the amount reimbursed to the beneficiary contrary to the terms of the guarantee or due to
violation of the obligation of the guarantor in relation to the beneficiary, unless otherwise provided by the agreement of the guarantor with the principal.

Chapter 24. Surety

Article 931. Concept

1. Under the contract of suretyship, the surety undertakes to the creditor of a third party to be responsible for the performance of the last
obligations.
2. A surety may also be given in relation to a future or contingent liability.

Article 932. Written form

1. For the validity of the surety, a written statement of the surety and an indication in the document on the surety is required
the maximum quantified amount of the guarantor's liability.
2. If anyone, within the scope of their professional activities, declares a surety, the observance of the written
forms are optional.

Article 933. Scope of the obligation of the surety

1. To establish the scope of the guarantor's obligations, the content of the main obligation is decisive. The same applies
in the event that the main obligation is changed due to the fault or delay of the main debtor. Chief Deal
the debtor after the establishment of the surety does not affect the volume of the surety's obligations.
2. The surety bears the costs of termination of the contract and litigation, which must be reimbursed to the creditor
the main debtor.

Article 934. Refusal of the surety

The surety may refuse to execute the creditor until the creditor makes an unsuccessful attempt to enforce
performance against the main debtor.

Article 935. Joint liability of the surety

If the guarantor assumes liability jointly and severally or in another equivalent form, then a claim may be brought against him and
without an attempt to enforce collection, if the main debtor is late in payment or was unsuccessfully warned or his
insolvency is obvious.

Article 936. Several guarantors

If several persons give surety for the same obligation, then they are liable as joint and several debtors, even if they
did not undertake the guarantee jointly.

Article 937. Responsibility for obligations assumed by previous creditors

The guarantor, who has undertaken to the creditor to fulfill the obligations assumed by the previous creditors, also bears
liability together with them as an ordinary surety together with the main debtor.

Article 938. Limits of liability of the surety

1. The guarantor in all cases is liable only within the maximum amount specified in the surety document.
2. Unless otherwise agreed, the guarantor shall be liable within the above maximum amount for:
a) the amount corresponding to the main obligation, in particular and when the main debt has changed due to the fault of the main debtor, or
due to late payment. For the contractual penalty or the total amount of damage that is stipulated by the end of the contract, he
bears responsibility only if it is specifically agreed;
b) the costs of terminating the contract and legal costs that are subject to reimbursement to the main debtors, if the surety had
the ability to avoid them by fulfilling the obligation;
c) interest payable by the principal debtor in accordance with the contract, if this was expressly agreed.

Article 939. Objections of the surety

1. The surety may present to the creditor all objections belonging to the main debtor. In the event of the death of the principal debtor
the surety cannot invoke the limited liability of the heir under the obligation.
2. The surety does not lose the right to objections if the main debtor refuses them.

Article 940. Objections with reference to the contestability and the possibility of offset

1. The surety may refuse to execute the creditor while the main debtor has the right to dispute the transaction underlying his
obligations.
2. A similar right is recognized for the surety as long as the creditor is able to obtain satisfaction by setting off his
claims against the claim of the principal debtor subject to collection.

Article 941. Reduction of liability of the surety

If the creditor, to the detriment of the guarantor, reduces the security rights or other means of security or benefits, then liability
the guarantor is reduced by the amount corresponding to the above reduction.

Article 942. Consequences of delay in payment by the principal debtor

1. If the main debtor is late in payment, the creditor must inform the surety about this. Lender at the request of the surety in
at any time must provide him with information about the state of the principal debt.
2. If the creditor does not perform one of these actions, then he loses the right to his claims against the surety in the amount in which
failure to perform could result in harm.

Article 943. Termination of a contract with an indefinite surety

1. If the surety is indefinite, the surety is obliged to comply with the three-month term for the termination of the contract.
2. In the case of an urgent surety, after the expiration of five years, the contract may be terminated in compliance with the three-month period.
3. In case of unilateral termination of the contract, the guarantor shall be obliged to fulfill the obligations assumed before the termination.

Article 944. Requirements of the surety for release

1. If the guarantor has given a surety on behalf of the main debtor or, as a result of the issuance of a surety,
an attorney in relation to the main debtor in accordance with the regulations on the conduct of other people's affairs without an assignment, then he may
demand from the main debtor release from surety if:
a) the property status of the main debtor has significantly deteriorated;
b) the proceedings against the main debtor have become significantly complicated due to the change of place of residence, place
location of the enterprise or the place of residence of the main debtor, which occurred after the provision of the surety;
c) the creditor has obtained a court decision on compulsory execution in relation to the surety.
2. If the deadline for the fulfillment of the main obligation has not yet arrived, then the main debtor may, in return for release, provide
to the surety the appropriate security.

Article 945. Transfer of claim to surety

Since the surety has satisfied the creditor, the claim of the creditor against the main debtor passes to him.
The transfer of the claim cannot be made to the detriment of the creditor. Objections of the Principal Debtor Based on a Legal Relationship
between him and the surety are not affected.

Chapter 25. Contract account (current account)

Article 946. Concept. Content

1. Under the contract of current account, the parties in business relations between themselves undertake to make
relations of claims and obligations for payments to one account and not to fulfill them separately until the time of periodic settlements.
2. The balance of the account revealed as a result of calculations is due to be paid within the agreed period. If, when settling the invoice, the party
the balance of the amount belongs, does not require payment, this balance is entered into the current account.
3. Settlements generate a balance claim, which, for performance purposes, replaces the claim placed on the contract account.
4. Calculations are made once a year, unless otherwise specified.

Article 947. Cancellation of current account

If in doubt, the current account can be canceled at any time with settlements.

Article 948. Interest on payments made

The stipulated payments must be paid interest in the amount of interest rates provided by law, if
the contract does not provide otherwise.

Article 949. Personal or proprietary security of a claim entered into a contractual account

1. If there is personal or material security for the claims entered into the current account, the creditor, even after settlements, may
claim satisfaction at the expense of this security for the amount of the balance existing in his favor.
2. The rule of paragraph 1 of this article shall also apply in the case when joint and several liability exists on demand.

Chapter 26. Debt obligations

§ 1. Bearer debt

Article 950. Concept

1. If the person has issued a document, which contains an obligation to perform performance to the holder of the document (debt
bearer obligation), then the holder may demand performance from this person, unless
the holder is not entitled to dispose of the document.
2. The validity of the signature on the document can be made dependent on the observance of a special form by means of
making an appropriate entry in the document. The signature can be executed in any technically possible way.

Article 951. Objections of the issuer of the document

The issuer of the document can present the holder of the promissory note only those objections that relate to
the validity of its issue, either follows from the text of the document, or is based on direct relations between the person,
the issuer of the document, and the holder of the document.

Article 952. Rules for the transfer of rights

1. The right provided by the document is transferred in accordance with the established rules for the transfer of movable things. Right can be
also transferred under an agreement concluded with a third party.
2. The legal holder of the document is the person who acquired the document lost in any way, with the exception of
cases when it, acquiring this document, acted with malicious intent or gross negligence.

Article 953. Claims against bearer

1. The person who issued the document can challenge the validity of the debt obligation with any holder, proving that it is not
issued a promissory note. In addition, it may present to the holder any counterclaim arising from
document.
2. If the person who issued the document uses technical means to sign the document, he cannot, in relation to the owner
refer to the fact that he had no right to use this tool, unless the acquirer knew about the forgery or acted
casually.
3. If the document is transferred by the original holder to another person, then the person who issued the document cannot put forward the subsequent
to the holder a counterclaim arising from his direct relationship with the original holder, unless
the subsequent holder of the document acted to the detriment of the debtor with malicious intent or gross negligence.
4. If the counterclaim does not arise from direct relations, it may be presented only to the holder
who acquired the ownership of the document by alienation and, when acquiring it, acted with malice or committed
gross negligence.

Article 954. Obligations of the person who issued the document

1. The person who issued the document is obliged to fulfill his obligation only when the security is transferred to him.
2. A debtor performing obligations to the holder is released from his obligations if he did not act intentionally
or by gross negligence and has the opportunity to prove the holder's bad faith.

Article 955. Conversion into a registered document

Converting a bearer debt into a document in the name of a specific eligible person can be
carried out only by the person who issued the document. However, the latter is not obliged to such a transformation.

Article 956. Re-issue

If the bearer debt becomes unsuitable for further circulation due to damage, then, if
the ability to reliably establish the main content and distinctive features of a debt obligation, its holder
may require the issuer of the document to provide him with a new promissory note, subject to return
damaged document. The holder bears all costs and must pay them in advance.

Article 957. Recognition of a document as invalid

1. A lost or destroyed bearer promissory note may be declared null and void by a court if in
the document did not provide otherwise.
2. The person who issued the document is obliged at the request of the last holder to provide him with all the information necessary for
hearing the case in court and to prohibit making payments, and issue the necessary evidence. Last holder upfront
pays for the costs of issuing certificates.

Article 958. Consequences of recognizing a document as invalid

If a bearer debt has been declared invalid, then the person in whose favor the decision on
the termination of this document, regardless of the right to present a claim from the document, may be required from a person,
issuing the document, issuing a new bearer promissory note to replace the document that has been declared invalid. This
the person bears all costs and must pay them in advance.

Article 959. Period of limitation

1. A claim arising from a bearer promissory note shall terminate thirty years after the occurrence of
the deadline for the document.
2. In the document itself, the person who issued it may establish a different duration and a different beginning of the term for presentation.
3. The beginning of the limitation period and its course are suspended by the holder's submission of a statement prohibiting the production of payments in favor of
the person who presented the document.

Article 960. Debt obligations to bearer without indication of the creditor

If a person issues a promissory note in which the creditor is not named, under circumstances indicating that he had
the intention to undertake an obligation in relation to the holder, then the rules of paragraph 1 of Article 950, Articles 952954 and 959 of this Code.

§ 2. Order promissory notes

Article 961. Concept

1. A debt document by which the person who issued it promises payment to the named person upon presentation of the document can be issued
in the form of an order debt obligation.
2. The signature can be executed by any technically possible means.

Article 962. Endorsement

1. The right can be transferred by endorsement and issuance of a document.
2. The endorsement is made on or attached to the document.
3. An endorsement does not require the name of the endorser and may only consist of a signature (blank endorsement). Plenipotentiary
the owner can fill out a blank endorsement on his own or someone else's behalf, issue a blank document or make himself
its subsequent endorsement to a specific person.

Article 963. Transfer of rights

If a debt warrant is acquired on the basis of an endorsement, Article 953 of this article shall apply accordingly.
Of the Code.

Article 964. Requirement for performance

The holder of an order bond certified by successive endorsements may require
execution in return for the delivery of the signed document in accordance with the promise, except for cases when he does not have the authority to do so.

Article 965. Consequences of payment to an incompetent person

Payment to an unauthorized person who has proven his right through successive endorsements will release the debtor if
he did not act on purpose or gross negligence.

Article 966. Replacement of a document and its loss of force

If claims with significant value are guaranteed in the order debt, the rules apply accordingly
the issuance of a document replacing the bearer debt document, and the recognition of this document as invalid.

Article 967. Period of limitation of claims

Regarding the limitation period for claims arising from order debt obligations, the rules in force in
bearer debt.

§ 3. Personal debt obligations

Article 968. Concept

1. Documents drawn up in the name of a certain person can be issued under the condition that the debtor will be charged with the payment
only in return for the delivery of the document.
2. Unless otherwise specified, the right indicated in the document is transferred according to the rules established for this right.
3. If a document is lost or destroyed, it shall be declared invalid by a special procedure, unless otherwise provided.
This rule does not apply if documents containing rights with negligible value are lost.

Article 969. Conditions for the validity of a transaction and payment

If a document issued in a specific name contains an indication that the promised payment can be made to anyone
to the bearer, then any transaction between the debtor and the holder of the document, as well as the payment, is valid if the debtor does not
acted intentionally or through gross negligence.

Chapter 27. Joint activity (partnership)

Article 970. Concept

Under an agreement on joint activities (partnership), its participants undertake to mutually contribute to the achievement of a common goal
in the way specified in the contract.

Article 971. Agreement on joint activities

1. An agreement on joint activities may be concluded in writing or orally.
2. An agreement concluded in writing must contain:
a) the name of the participants and their addresses;
b) data on the type of joint activity and purpose;
c) the rights and obligations of the participants;
d) the structure and functions of the governing bodies;
e) rules and conditions for the distribution of income and losses between participants;
f) the procedure for withdrawing from the contract;
g) duration of activity;
h) the procedure for terminating the contract and distributing the remaining property.

Article 972. Contributions of participants

1. Participants in joint activities must make the contributions provided for by the contract. If the size of the contribution is not determined, then
participants contribute it in equal shares.
2. The contribution can be made both in money and property, as well as the provision of services.

Article 973. Common property of participants

1. The contributions of the participants in joint activities and the items acquired for the partnership in the course of business make up the total
property of the participants.
2. The property of the partnership is also that which was acquired on the basis of the right included in the property of the partnership, or in
as compensation for the destruction, damage or seizure of an item included in the property of the partnership.

Article 974. Inadmissibility of transferring a share to a third party

1. A share in the form of property or rights cannot be transferred by a participant to a third party without the consent of other participants. Refusal to
consent is only allowed if there is a valid reason.
2. The rest of the parties to the agreement have the preemptive right to acquire a share transferred to a third party.

Article 975. Conduct of business

1. Doing business in a partnership and representation in relation to third parties is carried out jointly by all its participants;
for the implementation of each transaction, the consent of all participants in the partnership is required. If, according to the partnership agreement, the decisions
adopted by a majority of votes, then the majority is determined on the basis of the total number of participants in the partnership, and not the size
contribution.
2. If, under the partnership agreement, the conduct of business is provided to all or several of its participants in such a way that everyone has the right
act alone, then each participant can object to the conclusion of the transaction to others. In case of objection, the transaction
cannot be concluded.
3. If, under the partnership agreement, the conduct of business is provided to one or more of its participants, then the other participants
partnerships are suspended from business.
4. A participant in a partnership, if there is a serious reason for this, may be deprived of the partnerships provided to him under the partnership agreement
powers to conduct business by decision of the majority of the remaining participants; serious reason may be, in particular, gross
breach of duty or failure to conduct business properly.
5. The rights and obligations of the participant in the partnership, managing its affairs, are determined in accordance with the rules on the contract
instructions, unless otherwise follows from the partnership agreement.

Article 976. Participation in profit and loss

If the shares of participants in profit and loss are not established, then each participant has a share in profit and loss, respectively
your contribution.

Article 977. Non-transferability of participant's rights

The claims of the participants in the partnership in relation to each other arising from their relationship under the contract are not subject to
transfer to third parties.

Article 978. Cancellation of an agreement on joint activities

1. If the term of joint activity is not specified in the agreement, each of the participants may at any time refuse to participate in
joint activities. If the term is determined, then withdrawal from the partnership before the expiration of the term is allowed only if there is
a serious reason; in particular, such a reason is considered if one of the participants intentionally or by gross negligence
violates the basic obligations assigned to him under the contract, or if the performance of the obligation becomes impossible.
2. If one of the participants in the partnership leaves its composition, then his share in the common property of the partnership passes to the rest.
participants. The latter are obliged to return to the exited participant the items that he handed over to the partnership for use and
pay him what he would have received in the division of common property in the event that the joint activity would be terminated in
the moment of its release. If by the time of the withdrawal of one of the participants, the value of the partnership's common property is not sufficient for
to cover general debts and to return deposits, then the leaving participant is obliged to provide the remaining participants with the missing
amount according to its share of losses
3. An agreement that restricts or cancels the right to terminate the contract by changing the above rules is void.

Article 979. Grounds for termination of joint activities

1. Grounds for termination of joint activities are:
a) the expiration of the term of joint activity specified by the agreement;
b) the decision of the participants;
c) the opening of bankruptcy proceedings on the common property of the partnership;
d) achievement of the goal of joint activity established by the agreement or if it has become impossible to achieve this goal.
2. An agreement on joint activities may provide for other grounds for its termination, such as:
a) death of one of the parties to the agreement;
b) bankruptcy of one of the parties to the agreement.

Article 980. Procedure for termination of joint activities

1. After the termination of joint activities between the participants, the property of the partnership is divided. On termination
joint activities must be completed unfulfilled transactions.
2. From the common property of the partnership, first of all, the common debts must be paid. If common property is not enough for
payment of common debts and return of deposits, then its participants are obliged to make the missing amount in proportion to their share of losses.
If one of the participants is not able to pay the amount due to him, then it must be paid by the rest of the participants in
the same ratio.
Page 18

Chapter 28. Lifetime content

Article 981. Concept

A person who has undertaken to provide lifelong support (breadwinner) must provide it to the recipient
content (dependent) throughout his life. Lifetime maintenance can be set in cash or in kind
expression (living quarters, food, care and other necessary assistance).

Article 982. Form of contract

The contract for life support must be concluded in writing. If under the contract of lifelong maintenance is transferred
real estate, it is subject to notarization.

Article 983. Amount of content

The amount of lifelong maintenance is determined by agreement of the parties.

Article 984. Frequency of provision of content

The frequency of content provision is established by agreement of the parties based on its nature and purposes.

Article 985. Inadmissibility of alienation of transferred property

1. During the life of a dependent without his consent, the breadwinner does not have the right to alienate, pledge or otherwise burden the transferred
property. It is inadmissible to foreclose on this property in connection with the debts of the breadwinner.
2. If the dependent transfers immovable property to the breadwinner, then as security for the claim, he has the right to pledge this property.

Article 986. Contesting an agreement on life maintenance

Lifetime maintenance contract may be challenged by other persons who have a legal right to receive maintenance
from the breadwinner, however, they could not receive it due to the conclusion of the contested contract by the breadwinner. In case of termination
the property is returned to the dependent.

Article 987. Risk of accidental loss of or damage to transferred property

Accidental loss or damage to the property transferred to the breadwinner does not release him from the obligation to provide maintenance.

Article 988. Cancellation of contract for life maintenance

1. Both the breadwinner and the dependent may withdraw from the life support contract if, due to violation of contractual
obligations, the relationship of the parties has become unbearable or, for other serious reasons, it is extremely difficult or impossible for him
continuation.
2. The transferred immovable property, upon termination of the contract, is returned to the dependent, and the expenses incurred by the breadwinner up to
termination of the contract are not reimbursed, unless otherwise provided by the contract.

Article 989. Consequences of the death of the breadwinner

In the event of the death of the breadwinner, the obligation to provide life support passes to the heirs who received the transferred
property. Refusal of the heir from this obligation entails the termination of the contract, and the property is returned to the dependent.

Chapter 29. Games. Bet

Article 990. Lack of Obligation

No obligation arises from a game or a bet. The claim for the return of performed on the basis of a game or a bet is not subject to
satisfaction because there was no obligation.

Article 991. Lottery and drawing

A lottery agreement or a drawing agreement is binding if the lottery or drawing is permitted
the state.

Section 992. Transaction for Difference

If the contract, the subject of which is the delivery of goods or the transfer of securities, is concluded so that the difference between
the price set in the contract and the exchange or market price at the time of delivery was paid by the losing party
to the winning side, then such an agreement is considered a game. The same applies if the intention to pay the difference
existed only on one side, but the other side knew or should have known about such an intention.

Section 3. Obligations by law

Chapter 1. General rights

Article 993. Concept

If the right belongs to several persons together with the determination of shares, the rules of this chapter apply, unless from the law
it follows otherwise.

Article 994. Equality of shares

Unless otherwise specified, each owner has an equal share.

Article 995. Right to fruits

1. Each share owner owns a portion of the fruit commensurate with his share.
2. Each shared owner has the right to use the joint object so as not to prejudice the use of others.

Article 996. Management of a common subject

1. The shared object shall be managed jointly by the co-owners.
2. Each share owner has the right to carry out the measures necessary for the storage of the item, without the consent of the rest
share owners.

Article 997. Adoption of a decision in the management of a common subject

1. By a majority of votes, a decision may be made on the management and use of a common subject in accordance with its
features. The majority of votes are calculated in accordance with the shares.
2. Each shared owner may, for reasons of equity, claim management and use,
consistent with the interests of all equity owners, unless it is regulated by an agreement or a majority decision.
3. Without the consent of the share owner, it is not allowed to reduce his rights to a share of use.

Article 998. Extension of the rules for managing a common subject to a legal successor

If the equity owners have determined the rules for the management and use of the item, then these rules apply to
assignee.

Article 999. Procedure for disposition of a common subject

Each share owner can dispose of his share, and the disposal of a common object is made only jointly.

Article 1000. Expenses for the maintenance of a general subject

Each share owner in relation to other share owners is obliged to bear the costs associated with the common item,
proportionate to your share.

Article 1001. Cancellation of common law

1. Each shared owner has the right to demand the abolition of the common law.
2. If by agreement the right to demand cancellation is permanently excluded or limited by a period, then cancellation may still be required
with good reason.
3. An agreement by which the right to demand cancellation is excluded or limited in opposition to these rules is void.

Section 1002. Agreement to Abolish Common Law

If the right of the equity owners to demand the cancellation of the common law is excluded for a specified period, the agreement becomes null and void if
death of the share owner, unless otherwise specified by the agreement.

Article 1003. Cancellation of common law in case of division in kind

The common law is canceled by division in kind if the common object (or objects) can be divided into homogeneous parts without
reducing their cost. The distribution of equal shares between the equity owners is made by lot.

Article 1004. Cancellation of common law by alienation

1. If division in kind is excluded, then the common law is terminated by the sale of the object, the sale of a pledged thing or land

plot and distribution of proceeds. The rules of compulsory sale of real estate are applied to the land plot.
property. If the alienation of a common item to a third party is unacceptable, then the item must be sold at a public auction among
share owners.
2. If the common item has not been sold, each share owner may request a re-bidding; while he must cover
costs if the retry fails.

Article 1005. Joint and several liability of shared owners

1. If the shared owners are jointly and severally liable for a claim which they, in accordance with Article 1000
of this Code shall perform in proportion to their shares or have undertaken to fulfill such an obligation,
each shared owner may, upon termination of the common law, demand that the debt be paid off at the expense of the common item.
2. If the sale of a common item is necessary to cover the debt, then the sale shall be made in accordance with the rules of Article 1004 of this
Of the Code.

Article 1006. Satisfaction of claims in relation to co-owners

If a shareholder has a common law claim against another shareholder, then
the termination of this right, he may demand coverage of his claim from that part of the common property that is due
to the debtor.

Article 1007. Liability of shared owners upon termination of common law

If, upon termination of the common law, the common object is transferred to one of the share owners, then each of the remaining share
the owners, in accordance with their share, are liable in the same way as the seller in connection with a lack of a thing or right.

Article 1008. Period of limitation for demand for cancellation of common law

A common law revocation claim has no statute of limitations.

Chapter 2. Conducting other people's affairs without commission

Article 1009. Obligations of conducting other people's affairs

A person (executor) who manages the affairs of another person (owner) without receiving instructions from the latter or having no other
powers, is obliged to conduct business as required by the interests of the owner, taking into account his actual or perceived will.

Article 1010. Conduct of business for the purpose of preventing danger

1. If the purpose of doing business is to prevent a real danger threatening the owner, then the contractor is responsible
only for intent and gross negligence.
2. The performer who was harmed while preventing a danger that really threatened another person or property, which
was not included in the legal obligations of the performer, the harm must be compensated by the person who created the danger, or by the person, the benefits
whom the performer tried to save.

Article 1011. Obligation to notify

The contractor is obliged to notify the owner as soon as possible about taking over the business and wait for his decision if
delay will not cause unfavorable consequences.

Article 1012. Submission of a report on the work performed

The performer is obliged to submit to the owner a performance report and return to him everything received as a result of the performance.

Article 1013. Reimbursement of expenses

If the conduct of business is in the interests and actual or perceived will of the owner, then the executor has the right to demand
reimbursement of their expenses.

Article 1014. Inadmissibility of reimbursement of expenses incurred

The contractor cannot claim reimbursement of the costs incurred if the conduct of his affairs is contrary to the interests and actual or
the alleged will of the owner. If the performer could have known about this, he is obliged to compensate for the damage caused by the performance.

Article 1015. Assumption of execution of one's affairs

The rules of this chapter do not apply if, when conducting other people's affairs, the performer assumed that these were his own affairs.

Chapter 3. Unjust enrichment

Article 1016. Obligation to return

A person who, without a legal basis, due to the performance of an obligation by another person or otherwise at the expense of the latter
acquired any property, is obliged to return the received to this person. This obligation also applies if:
a) the legal basis has disappeared subsequently, or if the result, at which the execution is directed in accordance with
the content of the transaction;
b) an objection has been filed in relation to the claim, as a result of which the satisfaction of the claim was impossible within
long term.

Article 1017. Impossibility of claiming return

The property provided for the purpose of fulfilling an obligation cannot be reclaimed for return if:
a) the person who performed the obligation knew that he was not obliged to perform;
b) the execution was carried out out of moral duty or to maintain decency;
c) the limitation period has expired.

Article 1018. Failure to achieve a result

The claim for a return due to failure to achieve the result to which the execution was directed is not allowed if
obtaining such a result from the outset seemed impossible and the person performing the obligation knew about it or
obstructed the achievement of the result in bad faith.

Article 1019. Return of unjust enrichment in kind

1. The property that constitutes the unjust enrichment of the acquirer must be returned to the victim in kind.
2. The acquirer is liable to the victim for any, including for any accidental, shortage or deterioration is unreasonable
acquired property, which occurred after he learned or should have learned about the unjustified enrichment. Before
moment he is responsible only for intent or gross negligence.

Article 1020. Compensation for the cost of unjust enrichment

1. If it is impossible to return the unjustified property in kind, the acquirer must compensate the victim
the actual value of this property at the time of its acquisition, as well as losses caused by the subsequent change
the value of the property, if the acquirer has not reimbursed its value immediately after learning about the frivolity
enrichment.
2. A person who unjustifiably temporarily used someone else's property without the intention to acquire it or someone else's services must
reimburse the victim for what he has saved as a result of such use, at the price that existed at the time when it ended
use, and in the place where it took place.

Article 1021. Consequences of unjustified transfer of rights to another person

A person who has transferred, by assignment of a claim or in any other way, his right to another person on the basis of
non-property or invalid obligation, has the right to demand the restoration of the previous situation, including
return to him of documents certifying the transferred right.

Article 1022. Compensation to the victim of lost income

1. A person who unjustifiably received the property is obliged to return or reimburse the victim all the income that he
extracted or should have extracted from this property from the time when it learned or should have learned about the frivolity
enrichment.
2. The amount of unjust enrichment is subject to interest for the use of other people's funds from that
time when the acquirer learned or should have learned about the unjustified receipt of funds.

Article 1023. Reimbursement of expenses for property subject to return

When returning unjustifiably received or reimbursing its value, the recipient has the right to demand compensation from the contractor
incurred necessary costs for the maintenance and preservation of property from the time from which he is obliged to return income from
offset of the benefits received by him. The right to reimbursement of costs is lost if the recipient deliberately withheld the property,
subject to return.

Article 1024. Increased liability in the absence of a legal basis

1. If the recipient at the time of receipt knows about the absence of a legal basis for the acquisition or learns about it, then the obligation
return of unjust enrichment arises at the time of acquisition or at the time when the recipient learns about the absence of such
grounds, as if the claim for return at that moment had been accepted for judicial proceedings.
2. If the recipient, by accepting the performance, violates the prohibition or good manners established by law, then he is obliged to return from the moment
receiving.

Article 1025. Order of an unauthorized person

1. If the unauthorized person has disposed of the item and this order is valid for the authorized person, then the first is obliged
return to the authorized person everything received as a result of this order. If the result of the order has a gratuitous
character, then this obligation is imposed on the person who directly derived legal benefit on the basis of such
orders.
2. If the unauthorized person has performed a performance that is valid in relation to the entitled person, then the unauthorized
the person is obliged to return to the entitled person what was received as a result of the performance.

Article 1026. Execution in violation of law or good morals

The person who accepted the performance is obliged to return what was received if the purpose of the performance was established in such a way that due to
acceptance of execution, this person has violated the law or good manners. A claim for refund is not allowed if the person who carried out
the performance itself is guilty of such a violation, except for those cases when the performance consisted in the assumption of an obligation; not
it is allowed to demand the return of what was provided for the purpose of fulfilling such an obligation.

Section 4. Tort obligations

Chapter 1. General Provisions

Article 1027. Concept

A person who has caused harm to another person by unlawful intentional or negligent actions is obliged to compensate him for this
harm.

Article 1028. Consequences of the dissemination of information causing harm

1. A person who deliberately or by gross negligence disseminates or discloses information inflicting on another person
property damage is obliged to be compensated if this information is clearly incorrect.
2. The person who reported the information, not knowing about their falsity, is not obliged to compensate for the harm if he himself or the addressee of his message were
have a legitimate interest in receiving such a message.

Article 1029. Liability of a minor for harm caused

1. A person under the age of ten shall not be held liable for harm caused to other persons by him.
2. A minor who has reached the age of ten shall not be liable for harm caused to him to another person, if during
causing harm, he could not comprehend the meaning of his act.
3. Parents or persons responsible for the supervision of minors are obliged to compensate for harm caused to other persons
unlawful actions of a minor. Liability is excluded in cases where the persons responsible for supervision do not
could prevent harm.

Article 1030. Compensation for harm caused by a mentally ill person

1. If a mentally ill or mentally ill person causes harm to another person by unlawful actions, he shall not be charged
obligation to compensate for harm.
2. If a person is entrusted with the obligation to monitor the tortfeasor, he shall be obliged to compensate for the harm, unless
preventing this harm was impossible.

Article 1031. Compensation for harm caused in a state of temporary mental disorder

A person who is temporarily unconscious or mentally disturbed is not responsible for
the harm done. If a person has brought himself to such a state by using alcoholic beverages, narcotic or similar
funds, it is not exempt from liability, except in cases when it turned out to be in such a state through no fault of its own.

Article 1032. Compensation for harm caused in the performance of official duties

A person is obliged to compensate for the harm caused by his employee to a third party by an unlawful act in the performance of his
labor (official) duties. Responsibility does not arise if the employee did not act guilty.

Article 1033. Joint and several liability for causing harm

1. If several persons participated in causing harm, they shall be liable as joint and several debtors.
2. Not only the one who directly caused it, but also the one who induced it or contributed to it, bears responsibility for harm,
and also the one who knowingly took advantage of the harm caused to another.

Article 1034. Compensation for damage incurred as a result of the operation of vehicles

1. The owner of a vehicle intended for the carriage of passengers and delivery of goods, if the operation of it
vehicles entailed the death, injury or health disorder of people or damage to things, is obliged to compensate
to the victim the resulting harm.
2. The obligation to compensate for harm provided for in paragraph 1 of this article does not occur when the harm was caused by force majeure,
except in cases where the harm has arisen during the operation of air transport.
3. If a person uses a vehicle without the owner's permission, he is obliged to compensate for the damage instead of the owner. Wherein
the owner is obliged to compensate for the damage caused if the use of the vehicle became possible through his fault. The rule
the first sentence does not apply if the user has been designated by the owner to drive the vehicle or if
this vehicle was handed over to him by the owner.

Article 1035. Liability for damage caused by danger emanating from the structure

1. If there is a special danger from this or that structure from the energy produced in it, placed there or supplied there
either flammable or explosive, poisonous or poisonous substances, the owner of this building is obliged, if practical
the realization of this danger entailed the death, injury or health disorders of people or damage to the cargo, compensate
to the injured the resulting harm. The same liability applies to owners of flammable or
explosive, poisonous and toxic substances, when an increased danger emanates from these substances.
2. If an increased danger emanates from this or that building or thing on other grounds that differ from those specified in
paragraph 1 of this article, the owner of a building or thing is obliged to similarly compensate for the damage arising from the implementation of
danger.
3. The obligation to compensate for harm, provided for in paragraph 1 of this article, does not occur if the harm has arisen inside the
in the possession of the owner of the building or within the territory of his land plot.
4. The obligation to compensate for harm provided for in paragraph 1 of this article is excluded if the harm was caused by force majeure,
except for cases when the harm is caused by an accident of power transmission lines, or damage to oil, gas, water and oil product pipelines.
5. The harm resulting from the use of radioactive substances must be compensated by the person using these substances.

Article 1036. Compensation for damage caused by extinguishing a fire

Damage caused to other persons when extinguishing a fire, preventing its spread to neighboring apartments and buildings,
reimbursed by the person guilty of the fire.

Article 1037. Inadmissibility of excluding the obligation to compensate for harm

1. The obligation to compensate for harm provided for in Articles 1034 and 1035 of this Code cannot be excluded in advance, or
limited if it concerns an individual. The same rule applies to damage caused to things, except in cases
when an exemption from liability or limitation of liability has been agreed between the person liable to make compensation,
and a legal entity.
2. Agreements that contradict the rules of paragraph 1 of this article are invalid.

Article 1038. Compensation for harm caused to animals

If an animal harms a person's life, bodily integrity or health, or damages a thing, then the owner
the animal is obliged to compensate the victim for the harm caused. The obligation to compensate does not arise if the harm was caused
pets intended for professional, entrepreneurial activities or for
receiving funds for the maintenance of the owner, and at the same time the owner of the animal showed due diligence in civil circulation
when supervising the animal, or if damage would still occur if such care was shown.

Article 1039. Compensation for damage caused by collapse of a building

1. The owner of a building or other structure is obliged to compensate for damage caused by the collapse of a building or other structure
in whole or in part, except in cases where the damage was not caused by improper maintenance or lack of structure or
other structure.
2. If damage is caused by those thrown out or dropped out or poured out of the building, the person who occupies
appropriate living quarters, except in cases where the harm occurred due to force majeure or through the fault of the victim.

Article 1040. Responsibility of the state for harm caused to a civil servant

1. If a civil servant deliberately or through negligence violates his official duties in relation to third parties,
the state or the body in which this employee works is obliged to compensate for the resulting harm. By intent or rude
negligence, the employee, together with the state, is jointly and severally liable.
2. The obligation to compensate for harm does not arise if the victim deliberately or by gross negligence did not try
legal means to prevent harm.
3. Harm caused to a rehabilitated citizen as a result of unlawful conviction, unlawful involvement in a criminal
responsibility, illegal application as a preventive measure of detention or recognizance not to leave, application in
as an administrative penalty of arrest or correctional labor, is reimbursed by the state, regardless of the fault of officials
persons of bodies of inquiry, preliminary investigation, prosecutor's office and courts. With intent or gross negligence, these persons, together with
the state is jointly and severally responsible.

Article 1041. Compensation for harm in case of death of the victim

1. In the event of the death of the victim, the tortfeasor must, by assigning maintenance, compensate for the harm to persons whose maintenance
assigned to the deceased. This obligation is in force as long as the victim would be obliged to provide
content.
2. The obligation to maintain by agreement may be replaced by a one-time compensation if there are important grounds for this.

Article 1042. Compensation for harm caused by a medical institution

Harm caused to the health of a person during treatment in a medical institution (as a result of surgery, misdiagnosis
etc.), is reimbursed on a general basis. The cause of harm is released from liability if he proves that the harm did not occur due to
his fault.

Article 1043. Period of limitation of actions

The limitation period for a claim for compensation for damage caused as a result of a tort is three years from the moment when
the victim became aware of the harm or the person obliged to compensate for the harm.

Chapter 2. Liability for harm caused by
poor quality product

Article 1044. Responsibility of the manufacturer of a defective product

1. The manufacturer of a defective product, regardless of whether he was in a contractual relationship with the victim, bears
liability for harm caused by this product, except when:
a) he did not release this product for sale;

b) based on the circumstances of the case, it can be assumed that the defect that caused harm, the product at the time of its release for sale was not
had;
c) the product is made neither for sale or for other economic purposes, nor within the scope of their professional activities;
d) the product has a defect, however, when it was released for sale, it complied with the standards in force at that time, or
Page 19

e) the identification of the deficiency was impossible, taking into account the level of science and technology at the time of the release of the product for sale.
2. The responsibility of the manufacturer of a part of the product is also excluded if the defect is caused by the design of the product, the part
which it is, or this part is manufactured as directed by the manufacturer of this product.
3. The manufacturer's obligation to compensate for damage is reduced or completely eliminated if the occurrence of harm has entailed the perpetrator
the action of the victim or the person responsible for him.
4. The liability of the manufacturer is reduced if the damage is caused simultaneously by a defect in the product and the action of a third party.

Article 1045. Concept of low-quality product

1. A product is considered defective if it does not provide the reliability that, taking into account all the circumstances, was expected from it.
product.
2. A product is not considered to be of poor quality only due to the fact that a better quality product was subsequently introduced into circulation.

Article 1046. Concept of product

1. According to this Code, any movable thing is recognized as a product even if it is part of another movable or
real estate, as well as electricity. Products not yet considered unprocessed, obtained as a result of agriculture.
agricultural products, livestock products, beekeeping and fish farming (natural agricultural
products). The same procedure applies to products obtained by hunting.
2. According to this Code, the manufacturer is the person who made the final product, main element or
part of the product. Manufacturers are all those who, on their own behalf, with a trademark or other distinctive sign, act
as a manufacturer.
3. A manufacturer is also considered to be a person who takes out a product for sale, rent, leasing or any other form of business.
goals in the field of its activities in compliance with the conditions provided for by this Code.
4. If it is impossible to establish the identity of the manufacturer, then any supplier shall be recognized as the manufacturer, unless it is
within one month after the request for this, provide data on the identity of the manufacturer or the person who supplied him with this
product. This rule also applies to imported goods, when it is impossible to establish the original distributor, despite the fact that
the name of the manufacturer is known.

Article 1047. Burden of proof

The burden of proving responsibility for harm caused by low-quality products rests with the victim.

Article 1048. Joint and several liability

If the obligation to compensate for the same damage is imposed on several producers, they are liable as
joint debtors.

Article 1049. Compensation for harm caused by damage to health

According to Article 1044 of this Code, the obligation to compensate for harm applies to harm caused by death,
health disorders or personal injury.

Article 1050. Period of limitation of actions

1. According to Article 1044 of this Code, the limitation period for the claim is three years from the moment when a person who has
the right to compensation, has learned about the harm, defect or the person who is obliged to compensate for the harm.
2. According to Article 1044 of this Code, the claim is extinguished after ten years from the moment when the manufacturer issued
to sell the product that caused the harm.

Article 1051. Inadmissibility of exclusion of liability

The manufacturer's liability for a defective product cannot be excluded or limited in advance. Contrary to this
the agreement is invalid.

PART 4. THE RIGHT OF INTELLECTUAL
PROPERTY

SECTION 1. GENERAL PROVISIONS

Article 1052. Objects of intellectual property rights

1. Objects of intellectual property rights include the results of intellectual activity and those equated to them
means of individualization, which are granted legal protection.
2. The results of intellectual activity include:
1) works of science, literature and art;
2) programs for computers;
3) databases;
4) execution;
5) phonograms, videograms;
6) communication on the air or by cable of radio or television broadcasts (broadcasting of on-air or cable broadcasting organizations);
7) inventions;
8) utility models;
9) industrial designs;
10) selection achievements;
11) topology of integrated circuits;
12) production secrets (know-how);
13) other results of intellectual activity in cases stipulated by legislation and international treaties
Turkmenistan.
3. The means of individualization of a legal entity, individualization of products, works or services performed include:
1) company names;
2) trademarks and service marks;
3) appellations of origin of goods;
4) commercial designations;
5) other means of individualization in cases stipulated by the legislation of Turkmenistan.

Article 1053. Intellectual rights

Intellectual rights are the rights to the results of intellectual activity and equated means
individualization. Intellectual rights include an exclusive right, which is a property right, and in cases,
stipulated by the legislation of Turkmenistan, as well as personal non-property rights and other rights (the right to follow, the right
access and others).

Article 1054. Intellectual rights and property rights

1. Intellectual rights do not depend on the ownership of the material medium (thing), in which the corresponding
the result of intellectual activity or a means of individualization.
2. The transfer of ownership of the thing does not entail the transfer or grant of intellectual rights to the result of intellectual
activity or means of individualization, expressed in this thing, with the exception of cases provided for
legislation of Turkmenistan.

Article 1055. The author of the result of intellectual activity

1. The author of the result of intellectual activity is a person whose creative work has created such a result.
The authors of the result of intellectual activity are not recognized as persons who have not made a personal creative contribution to the creation of such
result, including those who provided it to the author only technical, consulting, organizational, material assistance or
assistance or only contributed to the registration of rights to such a result or its use, as well as persons who carried out
control over the implementation of the relevant work.
2. The author of the result of intellectual activity shall have the right of authorship, and in the cases provided for by this Code,
- the right to a name and other personal non-property rights.
The right of authorship, the right to a name and other personal non-property rights of the author are inalienable and non-transferable. Waiver of these rights
insignificant.
Authorship and author's name are protected indefinitely. After the death of the author, protection of his authorship and name may be exercised by any
the person concerned, to whom he entrusts the protection of authorship, the name of the author and the inviolability of the work after death, for
except for the cases when the author of the will is appointed.
3. The exclusive right to the result of intellectual activity created by creative labor initially arises from his
the author. This right can be transferred by the author to another person under a contract, as well as pass to other persons on other grounds,
established by law.
4. Rights to the result of intellectual activity created by the joint creative work of two or more persons (co-authorship),
jointly owned by the authors.

SECTION 2. EXCLUSIVE RIGHT

Article 1056. Exclusive right

1. An individual or legal entity with the exclusive right to the result of intellectual activity or to
means of individualization (copyright holder), has the right to use such a result or such a means at his own discretion by any
in a way that does not contradict the law. The copyright holder can dispose of the exclusive right to the result of intellectual
activities or means of individualization, unless otherwise provided by the legislation of Turkmenistan.
The copyright holder may, at his discretion, allow or prohibit other persons from using the result of the intellectual
activities or means of individualization. The absence of a prohibition does not count as consent (permission).
Other persons cannot use the corresponding result of intellectual activity or means of individualization without
the consent of the copyright holder, except for the cases provided for by the legislation of Turkmenistan. Using the result
intellectual activity or means of individualization (including their use in the ways provided
legislation of Turkmenistan), if such use is carried out without the consent of the copyright holder, is illegal and
entails liability established by the legislation of Turkmenistan. The exceptions are cases when using
the result of intellectual activity or means of individualization by persons other than the copyright holder, without his consent
allowed by the legislation of Turkmenistan.
2. The exclusive right to a result of intellectual activity or a means of individualization may belong to one
person or several persons together.
3. In the case when the exclusive right to the result of intellectual activity or to a means of individualization
belongs to several persons jointly, each of the rightholders can use such a result or such a means for
at its discretion, unless otherwise provided by this Code or an agreement between the copyright holders. Relationship
persons to whom the exclusive right belongs jointly are determined by agreement between them.

Article 1057. Duration of exclusive rights

1. Exclusive rights to the results of intellectual activity and means of individualization are valid for
a certain period established by the legislation of Turkmenistan.
2. The duration of the term of the exclusive right to the result of intellectual activity or means
individualization, the procedure for calculating this period, the grounds and procedure for its extension, as well as the grounds and procedure for terminating
exclusive rights before the expiration of the term are established by the legislation of Turkmenistan.

Article 1058. Validity of exclusive and other intellectual rights on the territory of Turkmenistan

1. On the territory of Turkmenistan there are exclusive rights to the results of intellectual activity and funds
individualizations established by the legislation and international treaties of Turkmenistan.
2. When recognizing the exclusive right to the result of intellectual activity or means of individualization in accordance with
with the international treaty of Turkmenistan, the content of the law, its effect, restrictions, the procedure for its implementation and protection
are determined by the legislation of Turkmenistan, regardless of the provisions of the legislation of the country of origin of the exclusive
rights, unless otherwise provided by such an international treaty or the legislation of Turkmenistan.

Article 1059. State registration of the results of intellectual activity and means of individualization

1. In cases stipulated by the legislation of Turkmenistan, the exclusive right to the result of intellectual activity
or a means of individualization is recognized and protected subject to state registration of such a result or such
funds.
2. In cases where the result of intellectual activity or means of individualization is subject to
the legislation of Turkmenistan of state registration, alienation of the exclusive right to such a result or to such
a remedy under a contract, a pledge of this right and the granting of the right to use such a result or such a means under a contract, and
equally and the transfer of the exclusive right to such a result or to such a means without a contract, are also subject to state
registration, the procedure and conditions of which are established by the legislation of Turkmenistan.
3. The basis for state registration of the transfer of the exclusive right to the result of intellectual activity or
means of individualization by inheritance is a certificate of the right to inheritance, except in the case provided
Article 1281 of this Code.
4. In cases stipulated by the legislation of Turkmenistan, state registration of the result of intellectual
activities can be carried out at the request of the copyright holder. In these cases, to the registered result
intellectual activity and the rights to such a result shall be governed by the rules of parts two and three of this article.

Article 1060. Disposal of exclusive right

1. The copyright holder can dispose of his exclusive right to the result of intellectual activity
or a means of individualization in any way that does not contradict the law and the essence of such an exclusive right, including
by its alienation under an agreement to another person (agreement on alienation of exclusive rights) or by granting it to another person
the right to use the corresponding result of intellectual activity or means of individualization within,
established by the agreement (license agreement).
The conclusion of a license agreement does not entail the transfer of exclusive rights to the licensee.
2. To agreements on the disposal of the exclusive right to the result of intellectual activity or means of individualization,
including to agreements on the alienation of exclusive rights and licensing (sublicense) agreements, the general
provisions on obligations and on the contract, unless otherwise established by the rules of this section and does not follow from the content
or the nature of the exclusive right.
3. An agreement that does not explicitly state that the exclusive right to a result of intellectual activity or a means
individualization is transferred in full, is considered a licensing agreement, with the exception of an agreement concluded in
regarding the right to use the result of intellectual activity specially created or created for inclusion in
complex object.
4. Terms of an agreement on the alienation of an exclusive right or a license agreement that restrict the right of persons to create
results of intellectual activity of a certain kind or in a certain field of intellectual activity, or
alienate the exclusive right to such results to other persons are void.
5. In the event of an agreement on the pledge of the exclusive right to the result of intellectual activity or to a tool
individualization, the pledger has the right during the term of this agreement to use such a result of intellectual
activity or such means of individualization and to dispose of the exclusive right to such result or to such means
without the consent of the pledgee, unless otherwise provided by the contract.

Article 1061. Transfer of exclusive rights to other persons without contract

The transfer of the exclusive right to the result of intellectual activity or means of individualization to another person without
conclusion of an agreement with the rightholder is allowed in cases and on the grounds established by the legislation of Turkmenistan, in
including in the order of universal succession (inheritance, reorganization of a legal entity) and when foreclosure on
property of the copyright holder.

SECTION 3. LICENSE AGREEMENT

Article 1062. License Agreement

1. Under the license agreement, one party is the owner of the exclusive right to the result of intellectual activity or to
the individualization tool (licensor) grants or undertakes to grant the other party (licensee) the right to use
such a result or such a means within the limits stipulated by the contract.
The licensee can use the result of intellectual activity or a means of individualization only within the limits of those rights and
in the ways provided by the license agreement. The right to use the result of intellectual activity
or means of individualization not expressly specified in the license agreement shall not be deemed to have been provided to the licensee.
2. The period for which the license agreement is concluded cannot exceed the period of validity of the exclusive right to the result
intellectual activity or a means of individualization. In case of termination of the exclusive right, the license
the contract is terminated.
3. The license agreement must provide for the subject of the agreement and methods of using the result of intellectual property.
activities or means of individualization.
4. The license agreement may provide for:
1) granting the licensee the right to use the result of intellectual activity or means of individualization with
retaining the right of the licensor to issue licenses to other persons - a simple (non-exclusive) license;
2) granting the licensee the right to use the result of intellectual activity or means of individualization without
retaining the right of the licensor to issue licenses to others - an exclusive license.
5. Unless otherwise provided by the license agreement, the license is assumed to be simple (non-exclusive).

Article 1063. Sublicense agreement

1. With the written consent of the licensor, the licensee may, by agreement, grant the right to use the result of intellectual property
activities or means of individualization to another person (sublicense agreement).
2. Under a sublicense agreement, the sublicensee may be granted the rights to use the result of an intellectual
activities or means of individualization only within the limits of those rights and those methods of use that are provided for
a license agreement for the licensee.
3. A sublicense agreement concluded for a period exceeding the term of the license agreement is deemed to be concluded on
the term of the license agreement.
4. Responsibility to the licensor for the actions of the sublicensee is borne by the licensee, if the license agreement does not provide
other.
5. The rules of this Code on the licensing agreement shall apply to the sublicense agreement.

Article 1064. Compulsory license

In cases stipulated by the legislation of Turkmenistan, the court may, at the request of an interested person, make a decision on
granting this person the right to use the result of intellectual activity, the exclusive right to which
owned by another person (compulsory license).

SECTION 4. COLLECTIVE MANAGEMENT OF PROPERTY RIGHTS

Article 1065. Organizations for the management of property rights

Subjects of rights have the right to create organizations that manage property rights on a collective basis. The procedure for creating such
organizations and the limits of their powers are determined by the legislation of Turkmenistan.

SECTION 5. PROTECTION OF INTELLECTUAL RIGHTS

Article 1066. Disputes related to the protection of intellectual rights

Disputes related to the protection of violated or disputed intellectual property rights are considered and resolved by the court.

Article 1067. Protection of intellectual rights

1. Intellectual rights are protected in the ways provided by the legislation of Turkmenistan, taking into account the essence
of the violated right and the consequences of the violation of this right.
2. Methods for the protection of intellectual rights provided for by this Code can be applied upon request
copyright holders, organizations for the management of rights on a collective basis, as well as other persons in the cases established
legislation of Turkmenistan.

Article 1068. Protection of exclusive rights

1. Protection of exclusive rights to the results of intellectual activity and means of individualization is carried out in
in particular, by submitting a demand:
1) on the recognition of the right - to a person who denies or otherwise does not recognize the right, thereby violating the interests of the rightholder;
2) on the suppression of actions that violate the right or create a threat of its violation - to the person who commits such actions or
making the necessary preparations for them;
3) on compensation for damages - to the person who unlawfully used the result of intellectual activity or means
individualization without concluding an agreement with the copyright holder (non-contractual use) or otherwise violating
his exclusive right and who caused him damage;
4) on the seizure of a material carrier, equipment and materials, mainly used or intended for
violation of exclusive rights - to its manufacturer, importer, custodian, carrier, seller, other
distributor, unscrupulous purchaser;
5) on the publication of a court decision on the committed violation with an indication of the actual rightholder - to the offender
exclusive right.
2. In order to secure a claim in cases of violation of exclusive rights to material carriers, equipment and materials, in
in relation to which the assumption of violation of the exclusive right to the result of intellectual activity has been put forward, or
means of individualization, interim measures established by procedural legislation can be taken
Turkmenistan, including seizure of material carriers, equipment and materials.
3. In the case when the manufacture, distribution or other use, as well as the import, transportation or storage of material
carriers in which the result of intellectual activity or a means of individualization is expressed, lead to a violation
exclusive right to such a result or such a means, such tangible media are considered counterfeit and by decision
ships are subject to withdrawal from circulation and destruction without any compensation, unless other consequences are foreseen
legislation of Turkmenistan.
4. In cases where the violation of the exclusive right to the result of intellectual activity or to a means of individualization
recognized in the prescribed manner as unfair competition, protection of the violated exclusive right may
carried out both in the ways provided for by this Code, and in accordance with other legislation
Turkmenistan.

Article 1069. State regulation of relations in the field of intellectual property

Regulation of relations in the field of intellectual property is carried out by the authorized state body for
intellectual property.

PART 5. Inheritance law

Section 1. General Provisions

Article 1070. Concept

1. The transfer of the property of the deceased person (testator) to other persons (heirs) is carried out by law or will or by
both reasons.
2. Inheritance by law - the transfer of the property of the deceased to the persons specified in the law - is applied if the testator did not leave
will, or if the will is fully or partially declared invalid.

Article 1071. Heirs

When inheriting by:
a) the law - persons who were alive at the time of the death of the testator, as well as the children of the testator who were born alive after
his death;
b) a will - persons who were alive at the time of the death of the testator, as well as those who were conceived during his life and
were born after his death, regardless of whether they are his children or not, as well as legal entities.

Article 1072. Legal entities as heirs

In the case of inheritance by will, legal entities formed at the time of opening the inheritance are called to inherit.

Article 1073. Children born out of wedlock as heirs of father

A child born out of wedlock is considered the father's heir if paternity is established in the manner prescribed by law. If such a child
dies before the father, his children can claim the share of the inheritance, which was due to their father.

Article 1074. Unworthy heir

A person who deliberately prevented the testator from exercising
of his last will and by this contributed to the fact that he or persons close to him were called to inherit or their
share in the inheritance, or has committed a deliberate crime or other immoral act against the last will of the testator,
expressed in his will, if these circumstances are confirmed by the court (unworthy heir).

Article 1075. Parents who cannot be heirs

Parents who have been deprived of parental rights and who have not been restored by the day of the opening of the inheritance cannot be heirs of children by law
in these rights. Persons who maliciously evaded the duties assigned to them under the law cannot be heirs either.
the content of the testator, if this circumstance is confirmed by the court.

Article 1076. Deprivation by the court of the right of inheritance

The circumstance that constitutes the basis for depriving an unworthy heir of the right of inheritance must be
established by the court on the claim of a person for whom the deprivation of an unworthy heir of the right of inheritance entails certain
property consequences.

Article 1077. Forgiveness of an unworthy heir

A person convicted of committing actions entailing the loss of the right of inheritance, despite this, is allowed to inherit if
the testator will forgive him and express this decision in a clear form in the will. Revocation of forgiveness is not allowed.

Article 1078. Obligations of a person recognized as an unworthy heir

If a person is recognized by the court as an unworthy heir after receiving the inheritance, he is obliged to return everything received by
inheritance along with fruits and income.

Article 1079. Term for filing a claim for recognition as an unworthy heir

A claim for recognizing a person as an unworthy heir must be brought by the interested person within five years from the moment when
this person took possession of the inheritance.

Article 1080. Inherited share of a person deprived of the right of inheritance

1. The share of the person deprived of the right of inheritance goes to the rest of the heirs, called to inherit, and is distributed
equally between them.
2. The rule provided for in paragraph 1 of this article shall not apply if the person deprived of the right of inheritance has been appointed
heir.

Article 1081. Opening of inheritance

The inheritance is opened as a result of the death of a citizen or his declaration by the court as dead.

Article 1082. Time of opening of inheritance

The time of opening the inheritance is the day of death of the testator or the date of entry into force of the court decision on declaring the person
dead.

Article 1083. Inheritance of persons who died on the same day

In case of death on one day of persons entitled to inherit one after another, the inheritance is opened after each of them.
whatever.

Article 1084. Opening of inheritance after declaring a person deceased

The consequence provided for in Article 1141 of this Code also occurs if the court has declared several persons dead.
due to loss under the same circumstances; in this case, the time of entry into force of the decision on their
being declared dead.

Article 1085. Place of opening of inheritance

1. The place of opening of the inheritance is the place of residence of the testator, and if it is unknown, the place where the inheritance is located.
2. If the inheritance is located in different places, the place of opening of the inheritance is considered to be the location of the immovable property or
its valuable part, and if there is no real estate, - the location of the movable property or its main part.

Article 1086. Place of opening of inheritance of persons residing abroad

The place of opening the inheritance after the death of a citizen of Turkmenistan temporarily residing abroad and deceased there is
the place of his residence prior to his departure abroad, and if it is unknown - the location of the inheritance or its main part.

Article 1087. Place of opening of inheritance of persons permanently residing abroad

The place of opening of the inheritance after the death of a citizen permanently residing abroad is the country where he lived.

Article 1088. Opening of inheritance abroad

A citizen of Turkmenistan residing in Turkmenistan receives an inheritance in a foreign state in accordance with
the legislation of this state.

Article 1089. Inherited property

1. Inheritance (inherited property) includes the totality of both property rights (hereditary asset)
the testator, and his obligations (hereditary liability), which the testator had at the time of death.
2. The inheritance includes the share in the common property owed to the deceased, and if the division of property in kind is impossible, then
the value of this property.

Article 1090. Future property

The testator may provide in the will of property that he did not have at the time of drawing up the will, if by
at the moment of opening the inheritance, such property will be his property.

Article 1091. Inadmissibility of inheritance of rights and obligations of a personal nature

The inheritance does not include property rights and obligations, which are of a personal nature and can only belong to
the testator, as well as the rights and obligations provided for by law or contract, which are valid only during the life of the creditor and
the debtor and terminated by their death.

Article 1092. Protection of non-property rights of the testator

The non-property rights of the testator, not included in the inheritance, can be exercised and protected by the heirs in
in the manner prescribed by law.

Article 1093. Consequences of increasing property provided for by will

If the testator, after drawing up the will, has increased the immovable property provided for by the will by acquiring
such property, which, although it accompanies the bequeathed immovable property, it will not be inherited if there is no new
disposition of property acquired after drawing up a will.

Article 1094. Co-heirs

If there are several heirs, the inheritance before its division between the heirs belongs to all heirs in the form of a single property.
From this property, the necessary expenses for the care of the testator and the treatment of the disease of the latter can be incurred,
funeral, protection and management of inheritance, wages, execution of the will. These requirements should be
satisfied from the value of the inheritance mainly in front of all other claims, including those secured by a mortgage
or other collateral.

Article 1095. Right to claim things from inheritance

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1. If the testator has incorrectly left a thing to the heir, its owner shall have the right to claim the thing in accordance with the general procedure.
2. If the property of the deceased is hidden in the property of another person, it is mandatory to identify this part of the property and transfer
to the appropriate person.

Section 2. Inheritance by law

Article 1096. Heirs by law

1. In case of inheritance by law, the heirs with the right of an equal share are:
first of all - children (including adopted children), spouse and parents (adoptive parents) of the deceased, as well as the child of the deceased,
born after his death;
in the second place - the brothers and sisters of the deceased, his grandfather and grandmother, both on the father's side and on the mother's side.
2. The adopted child and his offspring do not inherit after the death of their parents and other blood relatives in the ascendant, and
after the death of blood sisters and brothers.
The adoptee's parents and other blood relatives in the ascendant, as well as his blood sisters and brothers, do not inherit
after the death of the adopted child or his offspring.
3. Grandchildren, great-grandchildren and children of the latter are considered heirs by law, if by the time of opening the inheritance they are not alive
parents who were supposed to be the heirs of the testator, and inherit equally in the share that, when inherited by
the law would be due to their deceased parent.
Grandchildren, great-grandchildren and children of the latter cannot be heirs if their parents refused to accept the inheritance

Article 1097. Priority in inheritance by law

The presence of at least one of the heirs of the previous queue excludes the inheritance of the next queue.

Article 1098. Rights of disabled persons upon inheritance

Disabled persons who were dependent on the testator and cannot independently support themselves, if they are not
mentioned in the will, have the right to demand maintenance (alimony) from the inheritance. The amount to be paid in the form
content can be reduced taking into account the volume of the hereditary asset.

Article 1099. Position of divorced spouses upon inheritance

The spouses who dissolve the marriage cannot be heirs after each other.

Article 1100. Deprivation of the right of inheritance upon dissolution of marriage

By a court decision, the spouse may be deprived of the right of inheritance by law, if it is confirmed that the marriage with the testator is at least
than three years before the opening of the inheritance was actually terminated and the spouses lived separately.

Article 1101. Loss of the right of inheritance due to invalidation of marriage

The surviving spouse loses the right of inheritance if there were grounds for declaring the marriage invalid and the testator
a claim was brought.

Article 1102. Transfer to the treasury of property that does not have heirs

1. If there are no heirs either by law or by will, or none of the heirs has accepted the inheritance, or all heirs are deprived of
inheritance rights, property that has no heirs is transferred to the treasury; if the testator was supported by institutions
for the elderly, disabled, medical, educational and social welfare institutions - in their property.
2. Property without heirs in the form of shares of a company or a share, a share in a cooperative shall be transferred to them, if the law does not
otherwise provided.

Section 3. Succession by will

Article 1103. Concept

An individual may, in the event of death, leave his property or part of it to one or more persons as from the circle
heirs and outsiders.

§ 1104. Person who can be testator

The testator may be an adult capable person who, at the time of drawing up the will, could reasonably judge his
actions and clearly express their will.

Article 1105. Drawing up a will by a testator personally

The will must be drawn up personally by the testator. Drawing up a will through a representative is not allowed.

§ 1106. Joint testament

The will must contain the order of one testator. Joint drawing up of a will by two or more persons does not
allowed. Only spouses can draw up a joint will of mutual inheritance, which can be canceled by
the requirement of one of the spouses, but even during the life of both spouses.

Article 1107. Determination of the share by the testator

1. The testator may determine in the will the shares of the heirs appointed by the will from the inheritance, or indicate specifically to which
what property will go from the heirs. If there is no such indication in the will, the inheritance is divided equally among the heirs.
2. If several heirs are appointed by the will, but the share of only one heir is determined in it, the remaining heirs
receive the remaining property in equal shares.

Article 1108. Distribution of inheritance between heirs by will

If several heirs are appointed by the will and the share assigned to one of the heirs includes the entire inheritance, all
heirs by will must receive equal shares.

Article 1109. Inheritance of property left outside a will

If the shares of the heirs appointed under the will do not fully cover the entire inheritance, for the property remaining outside the will
inheritance by law is carried out, which also applies to those heirs by law to whom part of the property was bequeathed, if
the will does not provide otherwise.

Article 1110. Proportional increase in shares between heirs by will

If there are only heirs appointed by will, their shares shall be proportionally increased if each heir is
the will has its own share, but the shares of all, taken together, do not exhaust the inheritance completely.

Article 1111. Inadmissibility of the participation of a third party in determining the share

The testator cannot entrust another person with determining who should receive a share from the inheritance and in what amount.

Article 1112. Impossibility of precise identification of heirs

If the testator has determined the identity of the heir by such characteristics that may apply to several persons, and it is impossible
to determine which of them the testator had in mind, they are all considered heirs with the right to equal shares.

Article 1113. Deprivation of the right of inheritance by will

1. The testator may deprive one, several or all of the heirs by law and is not obliged to justify this.
2. A person deprived of inheritance by direct indication in a will cannot become an heir by law to that part of the property that
was not included in the will, as well as when the heirs by will refused to accept the inheritance.

Article 1114. Retention of the right to inherit

Heirs by law, not specified in the will, retain the right of inheritance to that part of the inheritance that has not been affected
will; they will also receive the property provided for by the will, if at the time of opening the inheritance not a single one is alive
of the heirs by will or they all refused to accept the inheritance.

Article 1115. Inadmissibility of inheritance by law

If by the will, all inheritance property was distributed among the heirs by will, but by the time of opening
inheritance of one of the heirs is not alive, inheritance by law does not arise and his share of the property will be equally received by others
heirs by will.

Section 4. Form of will

Article 1116. Notarial form

1. A will must be in writing. In this case, a written testament in notarial form or without is allowed.
such.
2. The notarial form requires that the will be drawn up and signed by the testator and certified by a notary, and where not
notary, - archyn.

Article 1117. Writing a will by a notary

1. It is permissible that a will from the words of the testator was written by a notary in the presence of two witnesses. When writing a will, there may be
generally accepted technical means have been applied.
2. A will, written down by a notary from the words of the testator, must be read by the testator and signed in the presence of the notary, and

witness.

Article 1118. Persons equated to a notary

When certifying a will, the following are equated to a notary:
a) the chief physician, chief, their deputies for the medical part and the doctor on duty of a hospital, hospital, other medical institution,
sanatorium, director or head physician of a home for the disabled and elderly, if the testator is being treated or lives in this institution;
b) the head of search, geographical and other similar expeditions, if the testator is on such an expedition;
c) the captain of the ship or aircraft, if the testator is on the ship or aircraft;
d) the commander (chief) of a military unit, formation, institution and school, if there is no notary at the point of deployment of the military unit and
if the testator is a soldier or employee in a military unit, a civilian or a member of his family;
e) the head of the place of deprivation of liberty, if the testator is in places of deprivation of liberty.

Article 1119. Signing of a will by another person

If the testator, for any reason, cannot sign the will himself, at his request, another person may sign.
the presence of the testator himself and the notary. At the same time, the reasons for which the testator could not sign the
will.

Article 1120. Will of a deaf and dumb person

1. If the testator is deaf and dumb or he is deaf and dumb and illiterate, he must make a testamentary disposition with a notary in
the presence of two witnesses and one such person who can explain to him the essence of the case and confirm with his signature that
the content of the will is in accordance with the will of the testator.
2. A testator who is blind or illiterate must make a testamentary disposition before a notary in the presence of three witnesses, oh
than the corresponding record should be made and read to it.
3. Writers and readers may be witnesses, but the writer should not be a reader.
4. The record must indicate who made the record and who read it to the testator. The recording must be signed by witnesses and
certified by a notary.

Article 1121. Witnesses of the Will

Minors declared incompetent, heirs by will and their
ascendants and descendants, sisters, brothers, spouse and legatorium.

Article 1122. Secret of Will

A notary, another person who attested a will, a witness, as well as persons who signed the will instead of the testator, are not entitled to
opening an inheritance to disclose information regarding the content of the will, its preparation, amendment or revocation.

Article 1123. Household Will

The testator can write a will in his own hand and sign it.

Article 1124. Keeping a will with a notary

1. The testator may hand over a written and signed application in a sealed envelope to a notary (or another
the relevant official) in the presence of three witnesses, as evidenced by his signature on the envelope.
2. The storage of this type of will must be ensured by its official deposit with a notary (or other
relevant official).

Article 1125. Drawing up a will with the use of technical means

The text of the will may be written by conventional technical means, but the signature must be executed
testator. In such a case, the will must be drawn up and signed by the testator in the presence of two witnesses who
confirm that the will was drawn up in their presence using technical means. Probate attestation
witnesses must be made immediately after signing it by the testator, by means of an appropriate inscription on
will in the presence of the testator and two witnesses, indicating the names, surnames and place of residence of the witnesses.

Article 1126. Closed Will

1. At the request of the testator, witnesses must attest the will without becoming familiar with its contents (closed will). IN
In such a case, witnesses must be present when the will is drawn up.
2. When certifying a closed will, witnesses must indicate that the will was drawn up personally by the testator in their presence,
but their content is unknown to them.

Article 1127. Date of drawing up of the will

The will must indicate the date it was drawn up. The absence of a date entails the invalidity of the will only when not
doubts about the legal capacity of the testator will be dispelled during the preparation, amendment or revocation of the will, as well as during
the presence of several wills.

Article 1128. Familiarization of interested persons with the content of the will

After the death of the testator, the notary appoints the day and familiarizes the interested parties with the content of the will, what should be
the corresponding protocol was drawn up. If the envelope containing the will was sealed, the integrity must be noted
print.

Section 5. Appointment of an heir

Article 1129. Alternate heir

1. The testator has the right to name in the will of another heir (alternate heir) in case the heir appointed by him dies
before the opening of the inheritance either will not accept the inheritance, or will be deprived of the right of inheritance.
2. The refusal of the heir by will from the inheritance in favor of the person appointed instead of the heir is not allowed.
3. A spare heir can be any person who, according to Articles 1129-1131 of this Code, can be an heir.

Section 6. Compulsory portion

Article 1130. Concept

The children of the testator, his parents and his spouse, regardless of the content of the will, have a compulsory share, which
must be half of the share due to them in inheritance by law (compulsory share).

Article 1131. Moment of occurrence of the right to claim a compulsory share

The right to claim a compulsory share arises from the moment the inheritance is opened. The right to such a claim is inherited.

Article 1132. Determination of the volume of the compulsory portion

The full amount of the compulsory share is determined from the entire inheritance, including the property that is provided for execution
testamentary waiver or any action for a generally useful purpose.

Article 1133. Determination of the obligatory share of each of the heirs

When determining the compulsory share of each of the heirs, all heirs by law who would have been called must be taken into account.
for inheritance, if there was no will. Testamentary heirs are not taken into account.

Article 1134. Set-off of the property received as a compulsory share

The person who has the right to receive the compulsory share is obliged to deduct in the compulsory share everything that he received from the testator
during his lifetime - with an indication that what was accepted is subject to offset in a mandatory share.

Article 1135. Consequences of renunciation of testamentary renunciation

A person who has the right to receive a compulsory share and at the same time is the recipient of a testamentary refusal (legate) may
claim a compulsory share if he waives the testamentary waiver. If it does not renounce the testamentary renunciation, then it loses
the right to a compulsory share within the value of the testamentary refusal.

Article 1136. Separation of a compulsory share from property not provided for by a will

If the will does not provide for all the inheritance property, the compulsory share is allocated primarily from
property not provided for by the will, and if this is not enough, it is replenished at the expense of the property provided for by the will
property.

Article 1137. Increase of compulsory share due to donated thing

If the bequeather donated the thing to a third party, then the person entitled to a compulsory share may demand replenishment
compulsory share in the amount by which his compulsory share will increase if the donated thing is inherited. Gift not
is taken into account if ten years have passed since the date of the gift transfer by the time the inheritance was opened.

Article 1138. Right to Demand Replenishment of a Share

If the person entitled to receive a compulsory share is bequeathed property that is less than half of the share that he
would have received in inheritance by law, he can claim the share for which the share received by him by will is less
half of the share that he would have received if he inherited by law.

Article 1139. Refusal to accept a compulsory share

1. The heir who is entitled to receive a compulsory share may refuse to accept it, but this does not entail an increase
obligatory share of other co-heirs. His share goes to the heirs by will.
2. Acceptance of a compulsory share or refusal from it must be made within the time established for the acceptance of the inheritance
or abandoning it.

Article 1140. Deprivation of the right to receive a compulsory share

1. Deprivation of the right to a compulsory share is possible in the presence of circumstances that entail the deprivation of the right to inherit in general.
2. Deprivation of the right to receive a compulsory share may be made by the testator during his lifetime by going to court.
3. The decision made by the court on the deprivation of the right to receive a compulsory share is valid from the moment of opening the inheritance. Same
the result occurs when the testator went to court during his lifetime, but the decision was made after his death.

Article 1141. Transfer of compulsory share to heirs by will

The share of the heir who has been deprived of the right to receive a compulsory share is transferred to the heirs by will.

Section 7. Testamentary waiver

Article 1142. Concept

The testator may entrust the heir with the execution at the expense of the inheritance in favor of one or more persons of any
obligations (legate testamentary refusal)

Article 1143. Subject of legacy

The subject of a legacy may be the transfer to the recipient of a testamentary refusal (legatorium) of the hereditary
property of things into ownership, use or with other property rights, acquisition and transfer to him of property that is not
included in the inheritance, the performance of a certain work, the provision of services and so on.

Article 1144. Use of living quarters on the basis of testamentary refusal

The testator has the right to impose on the heir, to whom the dwelling house, apartment or other dwelling is transferred, an obligation
transfer to a person who lived with the testator for at least one year before the opening of the inheritance, the right to life
use of the premises or a certain part of it. With the subsequent transfer of ownership of the residential premises
lifetime use remains valid.

Article 1145. Inalienability of the right of lifelong use of residential premises

1. The right to use the living quarters for life is inalienable and does not pass to the heirs of the recipient of the testamentary
refusal.
2. The right to life-long use of a dwelling does not constitute a basis for the members to live in this dwelling.
the family of the recipient of the legacy, unless otherwise provided by the will.

Article 1146. Limits for Execution of Testamentary Renunciation

The heir, who is entrusted with the execution of the testamentary refusal, must execute it within the real value
bequeathed inheritance minus that part of the testator's debts, the repayment of which fell to him.

Article 1147. Execution of testamentary renunciation by other heirs

If the heir, who is entrusted with the execution of the legacy, died before the opening of the inheritance or he renounced the inheritance,
the obligation to fulfill the legacy passes to other heirs who have received his share, unless it follows from the will
other.

Article 1148. Termination of execution of testamentary renunciation

In the event of the death of the heir, who is entrusted with the execution of the testamentary refusal, the obligation to fulfill the testamentary
the refusal is terminated if execution is impossible without his participation.

Article 1149. Execution of legacy in proportion to share in inheritance

When the execution of a testamentary renunciation is entrusted to several heirs, each of them performs it in proportion to his
share in the inheritance, unless otherwise provided by the will.

Article 1150. Term for Execution of Testamentary Renunciation

The recipient of the testamentary renunciation has the right to demand the execution of the testamentary renunciation within the three-year term of the claim.
prescription, calculated from the date of opening of the inheritance.

Article 1151. Legacy upon receipt of compulsory share

When the heir under the will, who is entrusted with the execution of the testamentary refusal, also has the right to receive a compulsory share,
he performs the legacy only within the limits of that part of the bequest, which he received in excess of the obligatory share.

Article 1152. Liability of the recipient of testamentary renunciation

The recipient of a legacy is not responsible for the debts of the testator.

Article 1153. Renunciation of testamentary renunciation

The recipient of a testamentary renunciation has the right to refuse to accept a testamentary renunciation. In this case, the corresponding share
the inheritance remains with the heir, who will be entrusted with the legacy.

Article 1154. Exemption from execution of testamentary renunciation

If the recipient of the testamentary refusal to accept it, the heir entrusted with the execution of the testamentary
refusal, is released from the obligation to fulfill it.

Article 1155. Transfer of legacy to heirs

If the recipient of the legacy died after the opening of the inheritance, but did not have time to give consent to the acceptance of the testamentary renunciation,
the right to receive this waiver passes to his heirs, who will accept the testamentary waiver instead.

Article 1156. Testamentary renunciation for generally useful purposes

1. The testator may entrust the heir with the performance of any action for generally useful purposes, which may have both
property and non-property nature.
2. If the assigned act concerns property, the rules governing legacy shall apply.
3. In the event of the death of the heir, to whom the will was entrusted with the commission of any action for generally useful purposes, the execution
this obligation passes to other heirs who have accepted the inheritance.
4. The executor of the will may demand from the heir the execution of the action entrusted to him by the court, and if there is none, then any
heir, as well as an interested public and religious organization, foundation, state bodies or local authorities
self-government.

Section 8. Amendment or revocation of a will

Article 1157. Possibilities for changing a will

The testator can always change or revoke a will:
a) drawing up a new will, directly annulling the previous will or part of it, which is contrary to the new will;
b) submitting an application to a notary body;
c) destruction of all copies of the will by the testator or, by his order, by a notary.

Article 1158. Inadmissibility of restoration of canceled will

A will, canceled by a subsequently drawn up will, cannot be restored even if the will,
drawn up later, will be canceled by making a statement.

Article 1159. Multiple Wills

If the testator has made several wills, but they supplement and do not completely replace each other, all wills remain valid.
A previous will remains in effect insofar as its precepts are not changed by a subsequent will.

Article 1160. Priority of notarial will

1. If one person has made several wills, of which only one is made in notarial form, priority is given
a will drawn up in a notarial form.
2. A notarial will cannot be revoked by a will of a different form.

Article 1161. Grounds for declaring a will invalid

A will becomes invalid if:
a) the person in whose favor the will is drawn up will die before the testator;
b) the property bequeathed was lost during the life of the testator or alienated by him;
c) the sole heir refuses to accept the inheritance.

Article 1162. Invalidity of Will

1. A will is declared invalid if there are circumstances that entail the invalidity of transactions in general.
2. Testamentary dispositions that are contrary to law or the public interest, or conditions that are unclear or
contradict each other - are invalid.
3. A will may be declared invalid by a court if it was drawn up in violation of the rules established by law, as well as
in a state where the person could not understand the meaning of his action and direct it.

Article 1163. Invalidity of individual testamentary dispositions

1. Disposition of a will, on the basis of which a call to inherit a thing that is not in inheritance occurs -

invalid.
2. If someone is bequeathed a sum of money that is not in the estate, such disposition of the will
invalid.
3. Invalid order of the will that the heir will receive the inheritance for a certain period or not from the date of death
the testator, and later, and also about the indication of the person to whom the inheritance should pass after the death of the heir.
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Article 1164. Invalidity of testamentary disposition due to impossibility of its execution

Disposition of a will that cannot be executed by an heir for health reasons or other objective
reasons, may be invalidated at the suit of the heir.

Article 1165. Consequences of the invalidity of one of the testamentary dispositions

If one of several testamentary dispositions is invalid or invalidated and the testator did not leave others
orders, the remaining dispositions of the will remain in force.

Article 1166. Receipt of Inheritance in Case of Invalidity of Will

If the will is declared invalid, the heir, who is deprived of the right of inheritance by this will, shall have the right to receive
inheritance on a general basis.

Article 1167. Challenging the validity of a will

The validity of the will can be challenged by the heirs under the law and other interested persons in the circumstances,
entailing the invalidity of the transaction.

Article 1168. Term for filing a claim

1. A claim for recognizing a will as invalid may be brought within two years from the date of opening the inheritance.
2. This limitation period does not apply to the owner's claim when the testator incorrectly bequeathed someone else's to the heir.
property as yours.

Section 9. Execution of Will

Article 1169. Subjects of Will Execution

In the absence of an indication in the will, its execution is entrusted to the heirs by will. The heirs may mutually
an agreement to entrust the execution of the will to one of them or to another person.

Article 1170. Appointment of the executor of the will

For the purpose of accurate execution of testamentary dispositions, the testator may designate one or more
executors of the will, both from the number of heirs by will, and another person who is not an heir. In the latter case
the consent of the executor of the will is necessary, which he must express by an inscription on the will itself or in an attached to
bequest statement.

Article 1171. Refusal to execute a will

The executor of the will has the right at any time to waive the obligation imposed on him by the testator, as previously
must warn the heirs by will.

Article 1172. Appointment of the executor of a will by a third person

The testator may entrust the appointment of the executor of the will to a third party who, after opening the inheritance, must
immediately appoint the executor of the will and inform the heirs about it. It may refuse to do this.
assignments, which must also be immediately reported to the heirs.

Article 1173. Execution of will in whole or in part

The executor of a will may be entrusted with the execution of the will in whole or in part of its orders.

Article 1174. Protection and administration of inheritance

The executor of the will is obliged from the moment of opening the inheritance to start protecting and managing the inheritance; he is eligible
perform all actions necessary for the execution of the will. Within the limits of these powers, the heirs lose the right to manage.
inheritance.

Article 1175. Protection and administration of inheritance by several executors

If there are several executors of the will, individual actions are allowed only for the purpose of protecting the inheritance, in other cases
agreement between them is necessary.

Article 1176. Reimbursement of Expenses for Execution of Will

1. The executor of the will performs his duties free of charge, although he may receive remuneration, if such is provided.
will.
2. The executor of the will has the right to reimburse from the inheritance the necessary expenses incurred for the storage and management
property.
3. An executor of a will who is not an heir is not entitled to make other expenses from the inheritance, except in cases where
provided for in Article 1244 of this Code.

Article 1177. Report of the executor

After the execution of the will, the executor of the will is obliged, at the request of the heirs, to submit to them a report on his activities.
The executor of the will performs his functions until the inheritance is accepted by all heirs.

Article 1178. Removal of executor of testament

When the performer fulfills his duties, the interested person may apply to the court with a demand for dismissal
executor of the will.

Article 1179. Responsibility of the executor of the will

If the executor of the will intentionally or by gross negligence deviates from the execution of the will
duties and thereby cause harm to the heirs, he must be held liable for this harm.

Section 10. Acceptance of inheritance and refusal to accept it

Article 1180. Acceptance of inheritance

1. The inheritance is accepted by the heir, whether he is the heir by law or by will.
2. An inheritance is considered to be an accepted heir when he submits an application to the notary office at the place of opening of the inheritance.
acceptance of the inheritance or actually proceeds to the ownership or management of the property, which undoubtedly indicates the acceptance
them inheritance.
3. If the heir has actually started to own part of the inheritance, it is considered that he has accepted the inheritance in full, in whatever way
not expressed and wherever it is.
4. If one of the heirs refuses to accept a share from the inheritance in favor of another heir, such an action is considered
acceptance of inheritance.

Article 1181. Acceptance of inheritance by incapacitated person

A legally capable person may accept the inheritance. Disabled and partially capable persons accept the inheritance through their
legal representatives.

Article 1182. Acceptance of inheritance through representative

The heir may accept the inheritance personally or through a representative.

Article 1183. Term for Acceptance of Inheritance

The inheritance must be accepted within six months from the date of opening the inheritance.

Article 1184. Special term for acceptance of inheritance

If the right to receive an inheritance arises when the other heirs do not accept the inheritance, the inheritance must
be accepted within the remaining time from the period established for accepting the inheritance, and if this time is less than three months,
- it is extended up to three months.

Article 1185. Extension of the term for accepting inheritance

1. The period established for the acceptance of the inheritance may be extended by the court if it recognizes the valid reason for the delay. By
the expiration of the term, the inheritance can be accepted without going to court, if all other heirs agree to this,
accepting the inheritance.
2. In the case provided for in paragraph 1 of this article, the heir who has delayed the acceptance of the inheritance, his share of the property,
received by other heirs or passed into the ownership of the state, is issued in kind from what is left; his
the amount of the value of the rest of the property due to him is also transferred.

Article 1186. Inadmissibility of disposing of inheritance

The heir, who did not wait for the appearance of other heirs and proceeded to the ownership or management of the inheritance, is not entitled
dispose of the inheritance before the expiration of six months from the date of opening the inheritance or until the receipt of a certificate of the right to
inheritance, except for the costs of caring for the testator, for treatment during his illness and burial, the maintenance of those who were
dependent persons of the testator, payment of wages, protection and management of the inheritance.

Article 1187. Right to income earned before initiation of a claim

If the heir by law, who did not know about the existence of the will, proceeded to own the inheritance, and the heir by will did not
knew about the invalidity of the will or if the heirs by law and by will did not know about other closer heirs by
the law or the existence of another will, they are left with the income received from the inheritance before the initiation of the claim; they also have the right
demand all the capital they have invested in the inheritance.

Article 1188. Consequences of alienation of certain things from inheritance

If the things included in the inheritance are sold before the dispute is initiated, the sale and purchase will be considered valid and remain in
force, and the amount received from the sale of things is transferred to the actual heir.

Article 1189. Inherited transmission

If the heir dies after the opening of the inheritance, but before the acceptance of the inheritance, the right to receive a share from the inheritance passes to him
heirs (inherited transmission). The heirs of a deceased heir must accept the inheritance within a time period,
remaining until the end of the inheritance acceptance period. If this period is less than three months, it must be extended to three months.

Article 1190. Consequences of not accepting inheritance by inherited transmission

1. Failure to accept inheritance by inheritance does not deprive the heir of the opportunity to receive an inheritance that
directly due to the deceased heir.
2. In case of refusal to receive property by inheritance transmission, the property is transferred to the persons called to receive
inheritance along with deceased heirs.

Article 1191. Inventory of inheritance

The heir has the right to demand an inventory of the inheritance, for which a two-month period is established, which is included in the general period for
acceptance of inheritance.

Article 1192. Emergence of ownership of inheritance

Accepted inheritance is considered the property of the heir from the date of opening the inheritance.

Article 1193. Term for refusal to accept inheritance

The heir may refuse to accept the inheritance within three months from the day when he learned or should have learned that he
is called to inherit. If there is a valid reason, this period may be extended by the court, but for no more than two months.
Refusal to accept the inheritance must be formalized in a notary body.

Article 1194. Inadmissibility of partial acceptance of inheritance

1. Acceptance of inheritance or rejection of it partially under any condition or for any period is not allowed.
2. If the heir renounces part of the inheritance or stipulates any condition, it shall be considered that he has renounced the inheritance.

Article 1195. Refusal of the heir to accept agricultural land

A non-agricultural heir may refuse to accept land, equipment, tools
agricultural purposes and livestock, however, this is not considered a refusal to accept the inheritance at all.

Article 1196. Acceptance of several shares from inheritance

If, for various reasons, the heir is entitled to several shares from the inheritance, he may accept one share and refuse the other.
or give up all the shares.

Article 1197. Refusal from part of inheritance

The heir has the right to refuse the part of the inheritance that belongs to him by the right of increment, despite the rest
inheritance.

Article 1198. Refusal in favor of other persons

The heir may refuse to accept the inheritance in favor of other persons from among the heirs by law or by will.
It is inadmissible to renounce inheritance in favor of a person who is recognized as an unworthy heir or who has been deprived of the right of inheritance by direct
indication of the will. Such a refusal can be appealed in court by the rest of the heirs.

Article 1199. Increase in share upon renunciation of inheritance

If the heir refused to accept the inheritance, but did not declare in whose favor he refused, his share is added to the share of those called to
inheritance under the law of heirs, and if the entire inheritance is distributed by will, - to the share of heirs by will and
distributed between them in proportion to their shares, unless otherwise provided by the will.

Article 1200. Refusal of the sole heir from inheritance

If the heir who refused the inheritance is the only heir among the heirs of this line, the inheritance
goes to the heirs of the next turn.

Article 1201. Refusal in favor of several heirs

If the heir refuses to accept the inheritance in favor of several persons, he can indicate the share of each of them. With absence
of such an indication, his share is divided equally among the heirs, in favor of whom the refusal to accept the inheritance was declared.

Article 1202. Refusal of inheritance in favor of grandchildren

Refusal of the inheritance in favor of the grandson (granddaughter) is allowed if by the day of the opening of the inheritance his parent is not alive, who
would have to be the heir of the testator, or if the grandson is the heir by will.

Article 1203. Inadmissibility of the treasury's refusal to accept inheritance

The treasury does not have the right to refuse to accept the inheritance transferred to it.

Article 1204. Inadmissibility of refusal after submitting an application to a notarial body

It is not allowed to refuse the inheritance after the heir has submitted an application to the notary body at the place of opening of the inheritance.
acceptance of an inheritance or receipt of a certificate of inheritance.

Article 1205. Irreversibility of renunciation of inheritance

1. The statement of the heir to refuse to accept the inheritance is irreversible.
2. If the heir is an incapacitated person or a person with limited legal capacity, the rejection of the inheritance is allowed with the permission of the court.

Article 1206. Refusal in case of actual possession of inheritance

The heir who actually proceeded to own or manage the inheritance within the time set for acceptance
inheritance, may refuse to accept the inheritance, about which he must apply with a statement to a notary body.

Article 1207. Transfer of the right to refuse by inheritance

1. The right to refuse inheritance passes by inheritance.
2. If the heir died before the expiration of the period established for refusing to accept the inheritance, then this period does not end until
the expiration of the time remaining after the death of the heir.
3. Each of several heirs of a deceased heir can only give up his inheritance share.

Article 1208. Refusal to accept inheritance through a representative

Refusal of inheritance through a representative is possible if the order (power of attorney) specifically provides for the authority to refuse.

Article 1209. Term for challenging refusal

Acceptance or refusal to accept the inheritance may be challenged within two months from the day when the person concerned learned about
that there is an appropriate basis for this.

Article 1210. Time of occurrence of legal consequences of acceptance of inheritance

The legal consequences of accepting or refusing to accept an inheritance arise from the moment the inheritance is opened.

Section 11. Division of inheritance

Article 1211. Concept

The division of the inheritance is carried out by agreement of the heirs who accept the inheritance, according to the share due to each of them
by law or testament.

Article 1212. Determination by the testator of the procedure for division of inheritance

The testator may determine the procedure for the division of the inheritance by a will, in particular, entrust the division of the inheritance to a third party.
The decision of a third party is not binding on the heirs if it is manifestly unfair. In this case, the section is made by decision
court.

Article 1213. Allocation of a share from an inheritance in kind

Each heir may demand the allocation of his share in kind from both movable and immovable property, if such
allocation is possible or not prohibited by law.

Article 1214. Set-off of a gift to the share of an heir

When the inheritance is divided, the value of the property received by him as a gift from
the testator for five years before the opening of the inheritance.

Article 1215. Sale of inheritance by agreement of joint heirs

By agreement of the co-heirs, the sale of the entire inheritance and the distribution of money between the heirs according to their
shares.

Article 1216. Transfer of inheritance to one co-heir

By agreement of the co-heirs, the transfer of the entire inheritance to one co-heir is possible, who, in turn, is obliged to pay
other co-heirs appropriate compensation.

Article 1217. Suspension of division of inheritance

The co-heirs may agree that the division of the inheritance be suspended for a certain period of time.

Article 1218. Shared ownership of indivisible property

Unless otherwise established by the agreement of all heirs accepting the inheritance, the property, the division of which will entail the loss or
weakening of its economic purpose, is not subject to division and becomes the common property of the heirs, respectively
shares.

Article 1219. Division between heirs of agricultural land

1. If the owner of the agricultural land on which the peasant farm is located left it by will
several heirs or a will has not been left and there are several heirs by law, land of agricultural
assignment with a peasant farm located on it can be divided between the heirs, if the departed as a result
division to each of the heirs of the land provides the existence of a viable economy.
2. Division is allowed only if the heirs themselves are going to run the household. If none of the heirs wishes
run a farm, by their agreement, the land with the farm located on it can be sold, and the heirs will receive their share in
the form of money.

Article 1220. Inadmissibility of dividing agricultural land

If the division of agricultural land is not possible, the land must be provided to the heir who resides in
a peasant farm and, together with the testator, ran a farm; if there is no such heir, - to the one who is capable and has the desire
to run the household.

Article 1221. Compensation of a share

An heir who cannot receive a land plot will receive a corresponding share from another property, and if another
property is not enough - appropriate compensation in accordance with the established procedure.

Article 1222. Share of the conceived heir in the division of inheritance

1. If the heir is conceived, but has not yet been born, division is possible only after the birth of such an heir.
2. If a conceived but not yet born heir is born alive, the other heirs have the right to divide the inheritance only with
allocation of the share due to him. In order to protect the interests of the newborn, he must be invited to participate in the section.
representatives.

Article 1223. Imposition of debt obligations on one of the heirs

By agreement of co-heirs, it is allowed to impose full reimbursement of all debt obligations on one of the heirs with
by granting him in return a correspondingly increased share of the inheritance.

Article 1224. Obligation to ensure receipt of share

Each co-heir is obliged to ensure that other co-heirs receive their respective shares. When a co-heir is the result
section acquires the right of claim, other co-heirs must contribute to the debtor's solvency at the time of the division
according to their shares, and if the deadline for the fulfillment of such an obligation has not come, at the time of the fulfillment of the obligation.

Article 1225. Proportional reduction of share

If it turns out that the aggregate of shares determined by the will exceeds the entire inheritance, the share of each heir is reduced
proportionally.

Article 1226. Consideration of disputes upon division of property

In the absence of an agreement between the joint heirs in the division of the inheritance, the dispute shall be considered by the court, which, in the division
property must take into account the nature of the property to be divided, the activities of each of the co-heirs and other
specific circumstances.

Article 1227. Right to dispose of shares

1. Each co-heir may dispose of his share in the inheritance. Contract under which one of the joint heirs disposes
its share must be certified by a notary.
2. A son-heir may not dispose of individual items from his share.
3. When a co-heir disposes of his share, other co-heirs have the right of pre-emptive purchase. Right
the pre-emptive purchase must be completed within two months. This right is inherited.

Article 1228. Termination of the right of priority purchase

The preemptive right is terminated after the share is transferred to the co-heir

Article 1229. Satisfaction of loans upon alienation of a share

In the event of the alienation of the share, the obligation to satisfy the creditor's claim is transferred to the acquirer in accordance with the amount
purchased share.

Article 1230. Equation of Share

Heirs called to inherit are obliged to equalize their shares before dividing the inheritance among themselves to
inheritance all that they received from the testator during his life in the form of the allocation of the parents' property, if the testator did not
established otherwise.

Article 1231. Consequences of the disposal of a descendant

If, before the opening of the inheritance or after its opening, a descendant left, who, as an heir, would be obliged to equalize the share, the obligation
the equation of the share is entrusted to the heir, who must receive his share.

Article 1232. Accounting for a special contribution in the equation

Descendant (descendant) who through their work in the family household, participation in professional and
commercial activity of the testator, significant expenditure on his part or in another way made a special contribution to
preservation and augmentation of the property of the testator, when dividing the property of the testator, he has the right to demand an equation with
relatives who, together with him, are considered heirs by law and require an inheritance.

Article 1233. Inadmissibility to demand an equation

The requirement of the equation cannot take place if the relative received remuneration for the services or the remuneration was
predetermined, or a relative, based on the services rendered, may make any claim under other legal
grounds.

Article 1234. Demand for fair distribution

1. The equation must be fair in accordance with the services rendered and the amount of inheritance.
2. The amount of the equation in the division of property is deducted from the total amount of the inheritance and added to the share of the co-heir who has the right
equation requirements.

Article 1235. Obligation to establish the location of the heir

If there are persons among the heirs whose whereabouts are unknown, the remaining heirs are obliged to take reasonable measures to
establishing their whereabouts and calling for inheritance.

Article 1236. Consequences of the failure of the heir to appear

1. If the heir called to inherit, who is not in place, but his whereabouts are established, within three
months will not give up the inheritance, the other heirs are obliged to notify him of their intention to divide the inheritance.
2. If such heir, within three months after the notification, does not inform the other heirs of the desire to participate in
the agreement on the division of property, the other heirs have the right to divide the property by mutual agreement and allocate a share not
located in the place of the heir.
3. If, within six months after the opening of the inheritance, the whereabouts of the absent heir are not established and from
he has no information about the refusal to accept the inheritance, the other heirs have the right to divide the property in the manner prescribed
paragraph 2 of this article.

Article 1237. Preemptive right

Heirs who, together with the testator, have the right to common ownership of the property, enjoy the priority right
inheritance of property included in common ownership.

Article 1238. Preemptive right to receive a residential building

When the property is divided, the heir who lived with the testator for at least one year before the opening of the inheritance has
preemptive right to receive from the inheritance a residential building, apartment or other residential premises, as well as objects
household items.

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Article 1239. Consideration of property interests of heirs

When exercising the preemptive right, the property rights of other heirs participating in
section of inheritance. If the property is not enough to receive the share due to them, the heirs carrying out
preemptive right, must give them the appropriate monetary or property compensation.

Article 1240. Installment compensation

At the request of the heirs exercising the preemptive right, the court has the right to extend compensation, taking into account its volume, but not
more than ten years.

Section 12. Satisfaction of creditors by heirs

Article 1241. Liability of heirs to creditors

1. The heirs are obliged to fully satisfy the interests of the testator's creditors, however, in proportion to the share of each of them in
the asset received.
2. If the testator for the debts transferred to the heirs was a joint and several debtor, the heirs jointly and severally bear
a responsibility.
3. The heirs who have received the obligatory share are also responsible for the debts of the testator.

Article 1242. Burden of proof

The heir must prove that the debts of the testator exceed the inheritance, unless the inheritance has been described by a notary.

Article 1243. Imposition of payment of debt on heir

The testator can assign the payment of the debt in whole or in part to one or more heirs.

Article 1244. Obligation to notify creditors about opening of inheritance

The heirs are obliged to inform the creditors of the testator about the opening of the inheritance if they know about the debts of the deceased.

Article 1245. Term for Filing Claims of Creditors

1. The creditors of the testator, within six months from the day they became aware of the opening of the inheritance, must present
claims to heirs who have accepted the inheritance, regardless of the date of the claim.
2. If the creditors of the heirs did not know about the opening of the inheritance, they must present a claim to the heirs within one
years from the date of the claim.
3. Failure to comply with these rules entails the loss of the right of claim by creditors.

Article 1246. Application of general terms of limitation of actions

1. The deadline for the presentation of claims by creditors does not apply to claims for expenses related to care and treatment during
the last illness of the testator, the payment of wages, funerals, protection and administration of the inheritance, as well as claims
third parties on the recognition of ownership of property and the reclamation of their property.
2. With respect to the requirements specified in paragraph 1 of this article, the general limitation periods shall apply.

Article 1247. Postponement of the term of performance

If the claim was filed by the creditor before the due date, the heir has the right to postpone the execution until
the due date. With the onset of the term, the creditor has the right to demand performance within the general limitation period.

Article 1248. Priority of the testator's creditors

In satisfying the claims, the testator's creditors have priority over the heir's creditors.

Article 1249. Liability of the Treasury to Creditors

In the transition to the treasury of property that does not have an heir, she is liable for the debts of the testator in the same way as the heir.

Article 1250. Consequences of receiving inheritance by a creditor

If the testator bequeathed his property to the creditor, then this cannot be considered as a set-off of the creditor's right of claim.

Article 1251. Procedure for Satisfying Creditors

The heirs must satisfy the claims of creditors by way of one-off payments, if the agreement between them has not been established
other.

Section 13. Protection of inheritance

Article 1252. Concept

To protect the interests of absent heirs, recipients of testamentary refusal and public interests, a notary
the place of opening the inheritance at the initiative of interested persons, the executor of the will or on his own initiative accepts
necessary measures to protect the inheritance, which continues until the acceptance of the inheritance by all heirs or the expiration of the term,
established for the acceptance of the inheritance.

Article 1253. Obligation of a notary body to protect inheritance

If the inheritance or part of it is not located at the place of opening the inheritance, the notarial body instructs the notary body at the place
finding property to take measures to protect this property.

Article 1254. Inventory of property

In order to protect the property, the notary body describes the inheritance and transfers it for preservation to the heir or another person,
while taking measures to search for heirs who are not at the place of opening the inheritance.

Article 1255. Appointment of a property administrator

If the property needs to be managed, and also when a claim is brought by the heir's creditors, the notary body shall appoint
property manager. The manager is not appointed if at least one of the heirs has accepted the property or is appointed
executor of the will.

Section 14. Inheritance certificate

Article 1256. Concept

1. Persons recognized as heirs may, at the place of opening of the inheritance, demand from the notarial authority a certificate of
inheritance.
2. In cases stipulated by law, obtaining a certificate of inheritance is mandatory.

Article 1257. Period for issuance of a certificate of inheritance

The inheritance certificate is issued to the heirs upon the expiration of six months from the date of opening the inheritance at any time.
A certificate of inheritance is issued earlier than six months in cases where the notary body has information that
except for the persons applying for the certificate, there are no other heirs.

Article 1258. Consent to be included in the certificate

Heirs who did not accept the inheritance within the period established by law may be included in the inheritance certificate with consent
all those heirs who have accepted the inheritance. Consent must be expressed in writing prior to the issuance of a certificate of
inheritance.

Article 1259. Issuance of a certificate of inheritance to heirs of an heir

If the heir, called to accept the inheritance, dies after the opening of the inheritance, without having time to accept it within the specified time,
his heirs can obtain a certificate of inheritance for the property remaining after the death of the original testator.

Article 1260. Issuance of certificates of inheritance to co-heirs

A certificate of inheritance can be issued both for the entire inheritance and for its part. The certificate is issued to everyone
to heirs together, and to each separately at their request. Issuance of a certificate of inheritance to one of the heirs for one
part of the inheritance does not deprive other heirs of the right to receive a certificate for the rest of the inheritance.

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