THE SUPREME SOVIET OF THE REPUBLIC OF BELARUS

CIVIL CODE OF THE REPUBLIC OF BELARUS APPROVED BY THE LAW OF THE REPUBLIC OF BELARUS

of June 11, 1964 PUT INTO FORCE as of January 1, 1964 Official text with alterations and additions as on July 1, 1994 The Preamble has lost its force. (Law of March 3, 1994 - Records of the Supreme Soviet of the Republic of Belarus, 1994, N 13, p.183) Section I GENERAL PROVISIONS Chapter 1. BASIC PROVISIONS

Article 1. Tasks of the Civil Legislation of the Republic of Belarus The civil legislation of the Republic of Belarus regulates the property and associated personal non-property relationship based on the equality of the parties. In cases envisaged by the law the civil legislation also regulates other personal non-property relationship. Article 2. Relations Regulated by the Civil Legislation of the Republic of Belarus The civil code of the Republic of Belarus as well as other acts of the civil legislation of the Republic of Belarus regulate the following relations mentioned in Article 1 of this Code: relations between organizations; relations between citizens and organizations; relations between citizens. The civil legislation of the Republic of Belarus shall not be applied to property relations based on administrative subordination of one party to the other, as well as to taxation and budgetary relations, except the cases envisaged by the legislation. The civil legislation shall be applied to family, labour relations and relations on the use of natural resources and the protection of the environment meeting the signs specified in Article 1 of this Code in cases when such relations are not regulated by family, labour legislation and the legislation on the use of natural resources and the protection of the environment, respectively. Article 3 has lost its force (Law of March 3, 1994 - Records of the Supreme Soviet of the Republic of Belarus, 1994, N 13, p. 183.) Article 4. Grounds for the Appearance of Civil Rights and Duties Civil rights and duties appear on the grounds envisaged by the legislation of the Republic of Belarus, as well as on actions of citizens and organizations which, although not envisaged by the law, nevertheless generate civil rights and duties on the strength of common principles and essence of the civil legislation. In according with this the civil rights and duties appear: from transactions (deals) envisaged by the law as well as from transactions (deals) although not envisaged by the law but not in contradiction to it; from administrative acts which generate legal civil consequences on the strength of the legislation; as a result of the creation of inventions, industrial specimens, works of science, literature and other results of intellectual activities; as a result of harm caused to other person, no less than as a result of the acquisition or saving of property at the expense of resources of the other person without sufficient grounds; due to other actions by citizens and organizations; due to events with which the law connectes the onset of legal civil consequences. Article 5. Exercise of Civil Rights and the Execution of Duties Civil rights are guarded by the law except in cases when they are exercised in contradiction to the purpose of such rights. When exercising the rights and executing the duties citizens and organizations must observe the laws, respect the rules of public life and the moral principles of the society. Article 6. Protection of Civil Rights The protection of the civil rights shall be effected according to the established manner by the court, economic or arbitration court by way of: recognition of these rights; reinstitution of the status which existed before the rights were violated and suppression of actions which violate the right; adjudicating the execution of duties in reality; interruption or alteration of legal relations; the exaction from the person, who has violated the right, of the damages caused, and in cases envisaged by the law or a contract - penalties (fines, late charges), as well as in other ways envisaged by the law. In cases specifically envisaged by the law the protection of the civil rights shall be executed in the administrative manner. Article 7. Protection of Honour, Dignity or Business Reputation The citizen or legal person shall have every right to demand that the court should rule to refute information which discredits their honour, dignity or business reputation if the person who has spread such information does not prove that this information is true to fact. If information which is not true to fact and discredits the honour, dignity or business reputation of the citizen or legal person has been spread in mass media it must be refuted in the same source of the mass media. In case when an information, which is not true to fact, discredits the honour, dignity or business reputation of the citizen, is contained in a document issued from a legal person, such document shall be liable to substitution. The procedure for the refuting of discrediting information in other cases shall be established by the court. The citizen or legal person in relation to which the mass media have published information infringing upon their rights and legal interests shall have the right to publish their response in the same source of the mass media. The demand of the citizen or legal person for the publication of the refuting document or the response in the mass media shall be considered by the court only in the case when such publication has been refused or it has not been made in the manner established by the law. Moral (non-property) harm caused to the citizen as a result of the spreading by the mass media of information that is not true to fact and that discredits his honour, dignity or business reputation shall be reimbursed on the decision of the court by the mass media as well as by the guilty official persons and citizens in the amount defined by the court. Article 8 has lost its force. Chapter 2. PERSONS 1. Citizens Article 9. Legal Capacity of Citizens Capacity to possess civil rights and duties (legal capacity of citizens) shall be recognized equally in respect to all citizens of the Republic of Belarus. Legal capacity of the citizens shall appear at the time of his birth and shall cease with his death. Article 10. Content of the Legal Capacity of Citizens The citizen may: have property by the right of property (ownership); inherit property; carry on entrepreneurial activities and other activities that are not banned by the legislative acts; create independently or jointly with other citizens and organizations the legal person; make transactions (deals) that are not banned by the law and take part in liabilities; chose the place of living; possess the right of the author (copyright) for an invention, work of science, literature, art or other result of intellectual activity; possess other property and personal non-property rights. Article 11. Competence of Citizens Competence of the citizen to acquire, through his actions, the civil rights and create for himself civil duties (competence of citizens) shall appear in the full amount with the onset of the legal age, that is, on reaching of the age of eighteen. Article 12. Intolerance of the Restriction of the Legal Capacity and the Competence of Citizens No one may be restricted in the legal capacity or competence except in cases and in the manner envisaged by the law. Transactions aimed at restricting the legal capacity or competence shall be invalid. Article 13. Competence of Persons under Legal Age Who Are under Fifteen Transactions (deals) on behalf of the persons who are under fifteen shall be made by their parents (adoptive parents) or guardians. However they shall be entitled to make minor everyday transactions. Article 14. Competence of Persons under Legal Age between Fifteen to Eighteen Persons who are under legal age between fifteen to eighteen shall make transactions with the consent of the parents, adoptive parents or guardians However they shall have the right to make minor everyday transactions, dispose of their salaries and wages or scholarship, exercise copyright and the right of invention for their works, inventions, rationalization proposals and industrial specimens, rights for their discoveries. If sufficient grounds are present, the guardianship authority may, on its own initiative, or an application of public organizations or of other interested persons, restrict in, or deprive the person under legal age between fifteen and eighteen of, the right to dispose independently of his salary, wages or scholarship. In cases when the law allows marriage before the age of eighteen, the persons who has married before this age shall acquire the competence of citizens in the full amount as of the time of the marriage. Article 15. Right of Persons under Legal Age to Place Deposits in Credit Institutions and Dispose of Them The right of persons under legal age to place deposits in credit institutions and dispose of them shall be determined by the law. Article 16. Recognition of a Citizen as Having No Competence Due to a Mental Derangement or Mental Weakness A citizen who, due to a mental derangement or mental weakness, is not able to understand the importance of his actions or control them may be recognized by the court as incompetent according the procedure established by the Civil Procedural Code of the Republic of Belarus. This person shall be taken under guardianship. Transactions on behalf of the person who is mentally deranged or mentally weak and recognized as incompetent shall be made by his guardian. In case of a recovery or a substantial improvement of the health of the citizen recognized as incompetent the court shall recognize him as competent. The guardianship over this person shall be canceled on the basis of the decision made by the court. Article 17. Restriction of Competence of Citizens Who Abuse of Alcoholic Beverages and Narcotic Substances The citizen who puts his family into a grave material position due to his abuse of alcoholic beverages or narcotic substances, may be restricted by the court in his competence according to the procedure established by the Civil Procedural Code of the Republic of Belarus. This person shall taken under guardianship. He shall be able to make transaction on the disposal of property as well as to obtain salaries and wages, pension or other kinds of incomes and dispose of them only on consent of the guardian with the exception of minor everyday transactions. When the citizens stops to abuse of alcoholic beverages or narcotic substances the court shall cancel the restriction of his competence. The decision by the court shall be used to cancel the guardianship over this person. Article 18. Place of Residence The place of residence shall be the place where the citizens reside permanently or predominantly. The place of residence of persons who are under fifteen or citizens who are under guardianship shall be the place of residence of their parents (adoptive parents) or the guardianship. Article 19. Recognition of a Citizen as Missing The citizen may be recognized by the court as missing if within one year at the place of his permanent residence no information has been received on his whereabouts. If it is not possible to establish the day when the latest information was received on the missing person, the beginning of the missing shall be the first day of the month which follows after the month when the latest information on the missing person was received, or - if it impossible to establish this month - the first of January of the next year. Article 20. Protection of the Property of the Missing Person The property of the person recognized as missing shall be taken into guardianship by the ruling of the court. This property shall be used to provide maintenance to the persons whom the missing person is obliged to maintain by the law as well as to repay debts on other liabilities of the missing person. On application of the interested persons the body of guardianship may assign the guardian for the protection of the property before the expiration of one year from the day the latest information on the whereabouts of the missing person was received. Article 21. Consequences of the Appearance or Detection of the Missing Person In case of the appearance or detection of the whereabouts of the citizen who has been recognized as missing, the court shall cancel the decision on the recognition of the person as missing. The decision of the court shall be used to cancel the guardianship over the property of this person. Article 22. Declaration of the Person Dead A citizen may be declared by the court as being dead if at the place of his permanent residence no information has been received on his whereabouts within three years, or - if he has been missed in circumstances that threatened with death or gave grounds to presume his death as a result of an accident - within six months. A serviceman or another citizen who has been missed in connection with war actions may be declared by the court as being dead not earlier than on expiration of two years as of the day the war actions were ceased. The day of death of a citizen declared as being dead shall be the day the decision of the court on his declaring as being dead came into effect. In case of declaration as being dead of a citizen who has been missed in circumstances that threatened with death or gave grounds to presume his death as a result of an accident, the court may recognize the day of death of this citizen as the day of his presumed death. Article 23. Consequences of the Appearance of the Citizen Who Has Been Declared as Being Dead In case of the appearance or the detection of the whereabouts of the citizen who has been declared as being dead the court shall cancel the correspondent decision. Irrespective of the time of his appearance, the person may demand that any person should return the preserved property which has been transferred free of charge to this person after the citizen was declared as being dead. If the property of the citizen who has been declared as being dead was alienated by his successors to third persons who by the time of the appearance of the person has not paid in full the purchase price, then the person who has appeared shall be returned the right to demand the unpaid amount. Persons to which the property of the person declared as being dead has been transferred by paid transactions shall be liable to return to him this property, if it has been proved that, when acquiring the property, they knew that the person declared as being dead was alive. If the property of the citizen declared as being dead has been transferred by the right of succession to the State and has been realized, then on the cancelation of the decision on the declaration of the person as being dead he shall be returned the amount received from the realization of the property. 2. Legal Persons Article 24. Notion of the Legal Person Legal persons shall be recognized organizations which possess individual property, can on their behalf acquire property and personal non-property rights and bear liability, be plaintiffs and defendants in the court of justice, economic or arbitration court. Article 25. Types of Legal Persons Types of legal persons, the procedure of their formation and legal status shall be determined by the legislation of the Republic of Belarus. Article 26 has lost its force. Article 27. Statute (Regulation) of the Legal Person The legal person shall act on the basis of a statute (regulation). Article 28. Legal Capacity of the Legal Person The legal person shall possess the legal capacity of the citizen in compliance with the established purposes of his activities. The legal capacity of the legal person shall appear from the time of the approval of his statute (regulation). If the legal person or his statute (regulation) is subject to the state registration, the legal capacity of the legal person shall appear from the time of registration of this person or of his statute (regulation). Article 29. Bodies of the Legal Person The legal person shall acquire civil rights and shall undertake civil liabilities through his bodies acting within the rights given to them by the law or the statute (regulation). The procedure for the appointment or election of the bodies of the legal person shall be defined by the statute (regulation). Article 30. Name of the Legal Person The legal person must have his name. The name of the legal person who are economic subjects must contain the type of the legal person, the place of his location and the special name which allows to differentiate him from other legal persons, and in cases envisaged by the legislation - also the object of his activities. It shall not be allowed to use in the name of the legal person: reference to the official name of the state (both full or abbreviated) with the exception of state bodies; names the use of which is at variance with the legislation or public moral; proper names of persons if they do not coincide with the name of the founders and the founders have not obtained the permission of such persons (their successors). Article 31. Place of Location of the Legal Person The place of location of the legal person shall be recognized the place of location of his permanently acting body. Article 32. Subsidiaries and Representations of the Legal Person The legal person may open subsidiaries (filials) and representations according to the procedure established by the legislation of the Republic of Belarus. The head of the subsidiary or representation shall act on the basis of powers of attorney obtained from the correspondent legal person. Article 33. Responsibility of the Legal Person for His Liabilities The legal person shall be answerable for his liabilities with the property owned by him (assigned to him) which may be claimed by the law of the Republic of Belarus. Article 34. Differentiation of the Responsibility of the State and State Organizations The State shall not be liable for the liabilities of the state organizations which are legal persons, while these organization shall not be liable for the liabilities of the State. The conditions and the procedure of the giving of resources for the cover of indebtedness of the institutions and other state organizations which are subsidized from the state budget, if such liability may not be covered with their estimates, shall be established by the law. Article 35. Differentiation of the Responsibility of the State Organization and Its Subordinate Enterprise, Other Organization and Its Enterprise State organization shall not liable for the liabilities of its subordinate enterprise which is the legal person, while such enterprise shall not be liable for the liabilities of the organization to which it is subordinated. Other organization shall not liable for the liabilities of its enterprise which is the legal person (Article 25 of this Code), while this enterprise shall not be liable for the liabilities of the above organization. Exception from these rules shall be allowed in cases envisaged by the legislation of the Republic of Belarus. Article 36. Differentiation of the Responsibility of an Amalgamation and Organizations Constituting this Amalgamation The amalgamation shall not be liable for the liabilities of the organizations which constitute this amalgamation, no less than the latter shall be liable for the liabilities of the amalgamation which they are members of, if such liability is not envisaged by the law or the statute. Article 37. Differentiation of the Responsibility of the Organization and Its Participants The organizations shall not be liable for the liabilities of their participants. The participants of the organization shall not be liable for its liabilities. Losses of the organization may be distributed among its participants in accordance with its statute (regulation). Article 38. Differentiation of the Responsibility of the Cooperative or of Another Public Organization and of Its Members Members of a cooperative or of any other public organization shall not be liable for its liabilities. However such liability of the members of a cooperative organization in the amount equal to their share may be envisaged by the law of the statute of the organization. A cooperative or another public organization shall not be liable for the liabilities of its members. Article 39. Termination of the Legal Person The legal person shall be terminated by liquidation or reorganization (merger, attachment, division, spin-off or transformation). In case of a merger of the legal person with another legal person all property rights and liabilities of each of them shall be transferred to the legal person which appeared as a result of the merger. In case of attachment of one legal person to another the latter shall be transferred to all property rights and liabilities of the attached legal person. In case of a division of the legal person the property rights and liabilities of the reorganized legal person shall be transferred in respective shares according to the act of division to the new legal persons formed as a result of this division. In case of a spin-off from the legal person of one or several new legal persons property rights and liabilities of the reorganized legal person shall be transferred to each of them according to the act of division in respective shares. In case of a transformation of one legal person to another legal person all property rights and liabilities of the former legal person shall be transferred to the newly appeared legal person. Together with the transfer of the property rights of the legal person also personal non-property rights of this person shall be transferred with the exception of cases envisaged by the law. Decision on the liquidation and reorganization shall be taken by the property owner or the body authorized by him, whereas in cases envisaged by the legislation - by the economic court. The procedure for the liquidation and reorganization shall be determined by the legislation of the Republic of Belarus. Articles 40, 41, 42 have lost their force. Chapter 3. TRANSACTIONS Article 43. Notion and Types of Transactions Transactions shall be recognized as actions of citizens and organizations aimed at establishing, altering or terminating civil rights or duties. Transactions may be unilateral and two- or multilateral (contracts; agreements). Article 44. Forms of Transactions Transactions may be made orally or in writing (simple or notarized). A transaction in relation to which the law does not establish a definite form shall also be considered as made if the behaviour of the person shows his will to make the transaction. Omission shall be recognized as the expression of the will to make a transaction in cases envisaged by the legislation of the Republic of Belarus. Article 45. Oral Transactions Transactions between citizens for the amount that does not exceed ten minimum salaries as well as transactions executed at the time of their making, irrespective of the amount of the transaction, may be made orally unless the law establishes otherwise. In cases when transaction between organizations or between an organization and a citizen are made not in writing, the organization which has paid for commodities or services must receive from the other part a document certifying the reception of money and the grounds for the reception. Article 46. Transactions in Writing Transactions made between organizations or with citizens must be made in writing, except transaction specified in part two of Article 45 of this Code and definite types of transactions in relation to which the legislation of the Republic of Belarus envisages otherwise. Transactions between citizens for the amount in excess of ten minimum salaries, except transactions specified in part one of Article 45 of this Code and other transactions specified in the legislation of the Republic of Belarus, must be made in writing. Transactions in writing must be signed by the persons who make them. If a citizen cannot, because of a physical defect, disease or for any other reasons, sign himself, then on his instruction the transaction may be signed by another citizen. The signature of the latter must be certified by the organization in which the citizen making the transaction works or makes his studies or by the housing organization which maintains the house he lives in, or by the administration of the medical hospital he is treated in, or by a notary body, specifying the reason by which the person making the transaction could not sign it himself. Article 47. Invalidation of the Transaction Which Does not Meets the Requirements of the Law Invalid shall be a transaction that does not meet the requirements of the law, including a transaction that infringes upon personal or property rights of children under legal age. Each party of an invalid transaction shall be obliged to return to the other party everything received by the transaction, or if it is not possible to return the things received in kind - shall be obliged to reimburse the cost of this in money unless the law envisaged other consequences of the invalid transaction. Article 48. Consequences of the Non-observance of the Form of Transaction The non-observance of the form as required by the law shall entail the invalidation of the transaction only in case when such consequence is directly specified in the law. Article 49. Consequences of the Non-observance of the Simple Written Form The non-observance of the simple written form as required by the law (Article 46 of this Code) shall deprive the parties of the right, in case of dispute, to refer to testimonial evidence to confirm the transaction, and in cases which are directly specified by the law shall entail the invalidation of the transaction with the consequences envisaged by part two of Article 47 of this Code. Article 50. Obligatory Nature of the Notary Form and the Consequences of Its Non-observance Notary certification of transactions shall be obligatory only in the cases specified by the law. Non-observance in such cases of the notary form shall entail the invalidation of the transaction with the consequences envisaged by part two of Article 47 of this Code. If one of the parties has executed, in full or in part, a transaction that requires a notary certification, while the other party has evaded of the notary certification of the transaction, the court shall be entitled to recognize, on the demand of the party which has executed the transaction, the transaction invalid provided this transaction does not contain anything illegal. In such case no subsequent notary certification is needed for the transaction. Article 51. Invalidation of a Transaction Made with the Purpose Which Is Against Interests of the State If a transaction has been made with the purpose which has knowingly been against the interests of the State, then, if there has been intent from both parties - if the transaction has been made by both parties - everything received by them on the transaction shall be exacted for the benefit of the State, or if the transaction has been made by one party, everything received by second party and everything which this party has been due to the first party as reimbursement for the things received shall be exacted for the benefit of the State; in case of the intent of one of the parties everything received by this party on the transaction must be returned to the other party, while the things received by the latter party or the things which have been due to it as reimbursement for the executed shall be exacted for the benefit of the State. Article 52. Invalidation of a Transaction of a Legal Person Which Is at Variance with His Purposes Invalid shall be a transaction made by a legal person in contradiction to the purposes specified in his statute, or in the regulation. These transactions shall be liable to the respective rules envisaged by Articles 47 or 51 of this Code. Article 53. Invalidation of a Transaction Made by a Person under Legal Age Who Is under Fifteen Invalid shall be a transaction made by a person under legal age who is under fifteen, except transactions envisaged by Articles 13 and 15 of this Code. Each of the parties of such transaction shall be obliged to return to the other party everything received on the transaction or - if it is not possible to return the things received in kind - shall reimburse the cost in money. The competent party shall be also obliged to reimburse the other party for the expenses incurred by the latter, for the loss or damage of its property, if the competent party has known or must have known of the incompetence of the other party. Article 54. Invalidation of a Transaction Made by a Person under Legal Age Who Is between Fifteen and Eighteen A transaction made by a person under legal age who is between fifteen and eighteen without the consent of his parents (adoptive parents) or guardians (except transactions which he is entitled to make independently in compliance with Articles 14 and 15 of this Code) shall be recognized by the court as invalid through a lawsuit of the parents (adoptive parents) or guardians. In case a transaction has been recognized invalid, the consequences specified by Article 53 of this Code shall be applied. Article 55. Invalidation of a Transaction Made by a Citizen Recognized as Incompetent Invalid shall be a transaction made by a citizen recognized as incompetent due to a mental disease or mental weakness. Such transaction shall be liable to the consequences specified by Article 53 of this Code. Article 56. Invalidation of a Transaction Made by a Citizen Unable to Be Aware of the Importance of His Actions A transaction, made by a citizen, although competent but who at the time the transaction was made was in a state when he was not able to be aware of the importance of his actions or control such actions, shall be recognized by the court as invalid through a lawsuit of this citizen. If such transaction has been recognized invalid, each of the parties shall be obliged to return to the other party everything received on the transaction, or if it is not possible to return the things received in kind - shall be obliged to reimburse the cost in money. The party which at the time the transaction was made was not able to be aware of the importance of its actions or control these actions shall be, in addition, reimbursed by the other part for the expenses incurred, for the loss or damage of its property, if this party knew or must have known about such state of the citizen who made the transaction with it. Article 57. Invalidation of a Transaction Made by a Citizen Who Abuses Alcoholic Beverages or Narcotic Substances A transaction on the disposal of property made without the consent of the guardian by a citizen who has been restricted in his competence because of his abuse of alcoholic beverages or narcotic substances shall be recognized by the court invalid through a lawsuit of the guardian. In case a transaction has been recognized invalid, the consequences specified by Article 53 of this Code shall be applied. The rules of this Article shall not cover transactions made in compliance with part two of Article 17 of this Code. Article 58. Invalidation of a False or Simulated Transaction Invalid shall be a transaction made only for the sake of appearances without the intention to create legal consequences (false). If a transaction has been made for the purpose of concealing another transaction (simulated transaction), then the rules shall be applied which relate to the transaction which has been intended by the parties in reality. Article 59. Invalidation of a Transaction Made under the Influence of Delusion A transaction made under the influence of delusion having a substantial importance shall be recognized invalid through a lawsuit of the party which has acted under the influence of delusion. If such transaction has been recognized invalid, each of the parties shall be obliged to return to the other party everything received on the transaction or - if it is not possible to return the things received in kind - shall be obliged to reimburse the cost of this in money. The party through a lawsuit of which the transaction has been recognized invalid shall have every right to demands that the other party should reimburse the expenses, losses or damages of its property if this party proves that the delusion was caused by the other party. If this is not proved, the party through the lawsuit of which the transaction has been recognized invalid shall be obliged to reimburse the other party for the incurred expenses, losses or damage of its property. Article 60. Invalidation of a Transaction Made under the Influence of Deception, Violence, Threat, Malicious Agreement of the Representative of One Party with the Other Party or Concurrence of Circumstances A transaction made under the influence of a deception, violence, threat, malicious agreement of a representative of one party with the other party, as well as a transaction which a citizen has been forced to make on terms that are extremely unfavourable for him because of a concurrence of grave consequences shall be recognized invalid through a lawsuit of the sufferer or a lawsuit of the organization. If a transaction has been recognized invalid on one of the above grounds, then the sufferer shall have returned back by the other party everything received by this party on the transaction or - if it is not possible to return the things received in kind - shall be reimbursed for the cost of this in money. The property received on the transaction by the sufferer from the other party as well as the property which has been due to him as reimbursement for the property transferred to the other party shall be transferred to the revenues of the State. If it is not possible to transfer the property for the benefit of the State in kind, the cost of this property shall be exacted in money. Besides, the sufferer shall be reimbursed by the other party for the incurred expenses, losses or damage of his property. Article 61. Time from Which the Transaction Shall Be Considered Invalid A transaction recognized invalid shall be considered invalid from the time of its making, however if the content of the transaction implies that it may be terminated only for the future, the validity of the transaction recognized invalid shall be terminated for the future. Article 62. Consequences of the Invalidation of Part of the Transaction Invalidation of part of the transaction shall not entail the invalidation of its other parts if it may be presumed that the transaction would have also been made without the inclusion of its invalid part. Article 63. Transactions Made under Condition A transaction shall be considered as made under a suspensive condition if the parties have made the appearance of the rights and obligations dependent on the circumstance the onset of which is not definitely known. A transaction shall be considered as made under a resolutive condition if the parties have made the termination of the rights and obligation dependent on the circumstance the onset of which is not definitely known. If the onset of the condition has been unfairly prevented by the party to which the onset of the condition is not beneficial, then the condition shall be recognized as having come into effect. If the onset of the condition has been unfairly facilitated by the party to which the onset of the condition is beneficial, then the condition shall be recognized as having not come into effect. Chapter 4. REPRESENTATION AND POWER OF ATTORNEY Article 64. Representation A transaction made by one person (representative) in the name of another person (represented person) on the strength of the powers (authorities) based on a power of attorney, a law or an administrative act shall directly create, alter or terminate civil rights and duties of the person represented. Powers may also be evident from the situation in which the representative operates (a retail vendor, cashier and so on). A representative may not make a transaction in the name of the person represented either in relation to himself or in relation to another person whom he represents at the same time. It shall not be allowed to make through a representative a transaction which may be, through its nature, made only in person, no less than other transactions specified by law. Article 65. Consequences by the Making of a Transaction by a Person Who Is not Authorized or with the Excess of Powers (Authorities) A transaction made in the name of another person by a person who is not authorized to make transactions or made with the excess of powers (authorities) shall create, alter or terminate civil rights and obligations for the represented person only if this transaction is approved by the represented person in future. The future approval of the transaction by the represented person shall make the transaction valid from the time it was made. Article 66. Power of Attorney A power of attorney is a written authorization of one person by another person to represent him in his name before third persons. A power of attorney in the name of a legal person as well as to a legal person may be given only for the making of transactions which do not contradict his statute (regulation). Article 67. Form of the Power of Attorney A power of attorney for the making of transactions which require a notary form as well as of actions in relation to organizations must be notarized except in cases envisaged by this Code and other cases when special rules allow another form of the power of attorney. The following powers of attorney shall be recognized as equal to notarized powers of attorney: 1) powers of attorney of servicemen and other persons, who stay in hospitals, sanatoria and other military medical institutions, certified by the heads, their deputies on medical issues, senior doctors or doctors on duty of these hospitals, sanatoria and other military medical institutions. 2) powers of attorney of servicemen or, in places of location of military units, parts, institutions and military educational institutions where there are no notary offices or other bodies making notary services, powers of attorney of workers and servants, members of their families and members of families of servicemen, certified by commanders (heads) of these units, parts, institutions and establishments; 3) powers of attorney of persons staying in places of deprivation of freedom, certified by the heads of the places of deprivation of freedom (confinement). A power of attorney for the reception of salaries and wages and of other payments connected with labour relations, for the reception of remunerations of authors and inventors, pensions, allowances and scholarship, amounts from banks and for the reception of correspondence, including money transmitting or parcels, may be certified also by the organization in which the giver of the power of attorney works or makes his studies, by the housing organization which maintains the house in which he lives, and by the administration of the medical stationary hospital in which he is being treated. Article 68. Power of Attorney of the Legal Person A power of attorney in the name of a legal person shall be given with the signature of his head and sealed by the stamp of this legal person. A power of attorney in the name of a legal person for the reception or giving out of money or other property values must be also signed by the chief (senior) accountant of this legal person or by another person who is responsible for the management of the accountancy of this legal person. Article 69. Term of the Power of Attorney A power of attorney may be given for a term of not more than three years. If the term is not specified in the power of attorney, it shall be valid within one year from the day it was made. A power of attorney without the date of its making shall be invalid. A notarized power of attorney made for the performance of actions abroad and having no term of validity shall retain its force until it is canceled by the person who gave this power of attorney. Article 70. Transfer of Powers by the Power of Attorney to Another Person (Reassignment) The person to whom the power of attorney has been given must in person make the actions for which he has been empowered (authorized). This person may reassign the making of these actions to another person if the former has been authorized to do this by the power of attorney or is forced to do this by the circumstances so as to protect the interests of the person who has given the power of attorney. A power of attorney that is given as reassignment (transfer) must be notarized. The term of validity of the power of attorney given as reassignment (transfer) may not exceed the term of validity of the power of attorney which was used as a basis to give this power of attorney. The person who has transferred (reassigned) the powers (authorities) to another person must notify of this the person who has given the power of attorney and give him the necessary information on the person to whom the powers have been reassigned (transferred). Failure to fulfil this obligation shall make the person who has transferred powers responsible for the actions of the person to whom he has transferred the powers as for his own actions. Article 71. Termination of the Power of Attorney The validity of the power of attorney shall be terminate as a result of: 1) the expiration of the term of the power of attorney; 2) the cancelation of the power of attorney by the person who has given it; 3) the refusal of the person to whom the power of attorney has been give; 4) the termination of the legal person in the name of whom the power of attorney has been given; 5) the termination of the power of attorney to whom the power of attorney has been given; 6) the death of the citizen who has given the power of attorney, the recognition of him incompetent, or partially competent or missing; 7) the death of the citizen to whom the power of attorney has been given, the recognition of him incompetent, or partially competent, or missing. The person who has given the power of attorney may, at any time, cancel the power of attorney or reassignment (transfer) of it, and the person to whom the power of attorney has been given - refuse this. The agreement on the renounce of these right shall be invalid. The termination of the power of attorney shall also terminate the validity of the transfer (reassignment). Article 72. Consequences of the Termination of the Power of Attorney The person who has given the power of attorney shall be obliged to notify about this cancelation (paragraph two of Article 71 of this Code) the person to whom the power of attorney has been given, as well as third persons known to him before whom the power of attorney has been meant to represent. The same obligation shall be born by the successor of the person who has given the power of attorney in case of its termination on the grounds envisaged in paragraphs four and six of Article 71 of this Code. Rights and obligations which appeared as a result of actions of the person to whom the power of attorney has been given before this person has learned of its termination shall preserve the force for the person who has given the power of attorney and his successors in relation to third persons. This rule shall not be applied if the third person knew or must have known that the validity of the power of attorney has terminated. On termination of the power of attorney the person to whom it has been given or his successor shall be obliged to return the power of attorney immediately.

SEE PART 2 FOR CONTINUE

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