SEE PART 2 FOR BEGINNING

Article 197. Indefinite Term of the Execution of the Obligation If the term of execution of the obligation has not been set or has been defined by the time of the exaction, the creditor shall have the right to demand the execution while the debtor shall have the right to make the execution at any time. The debtor shall be obliged to execute such obligation within seven days after the day the creditor made the claims, if the obligation of the immediate execution does not stem from the law, contract or the essence of the obligation.

Article 198. Execution of the Obligation Ahead of Time The debtor shall have the right to execute the obligation ahead of time unless another stems from the law, contract or the essence of the obligation. The execution of the obligation ahead of time between the organizations shall be allowed only in cases when such is stipulated by the law or the contract as well as on the consent of the creditor.

Article 199. Place of Execution of the Obligation If the place of execution of the obligation has not been specified by the law, contract and is not clear from the essence of the obligation the execution must be made: 1) on the obligation of handing over the building - at the place of location of the building; 2) on the money obligation (except money obligations of the organization) - at the place of residence of the creditor at the time of appearance of the obligation, while if the creditor by the time of execution of the obligation has changed the place of residence and has notified of this the debtor, then at the new place of residence of the creditor - with the payment by the creditor of all expenses connected with the change of place of execution; 3) on all other obligations - at the place of residence of the debtor or if the debtor is the legal person - at the place of his location. Article 200. Currency of Money Obligations Money obligations must be expressed and paid in the national currency. Money obligations may be expressed and paid in foreign currency only in cases and in the manner established by the legislation. Article 201 has lost its force. Article 202. Execution of Mutual Obligations by the Contract Mutual obligations by the contract must be executed at the same time unless the law, contract or the essence of the obligation provides otherwise. Article 203. Execution of the Alternative Obligation The debtor who is obliged to perform one of two or several actions shall have the right to chose unless the law, contract or the essence of the obligation provides otherwise. Article 204. Execution of the Obligation in Which Several Creditors or Several Debtors Participate If several creditors or several debtors participate in an obligation, then each of the creditors shall have the right to demand the execution while each of the debtors shall be obliged to execute the obligation in the equal share with the others inasmuch as the law or contract does not stipulate otherwise. Article 205. Joint Obligations The joint obligation or the joint requirement (demand) shall appear if this is envisaged by the contract or established by the law, in particular when the object of the obligation is indivisible. Article 206. Rights of the Creditor in Case of the Joint Obligation of Debtors In case of the joint obligation of the debtors the creditor shall have the right to demand the performance both by all debtors together and by any of them separately, either in full or in a part of the debt. The creditor who has not obtained full performance of one of the joint debtors shall have the right to demand the part not received from the other joint debtors. Joint debtors shall remain being obliged until the obligation is repaid in full. Article 207. Objections of the Joint Debtors against the Demands of the Creditor In case of the joint obligation the debtor shall not have the right to put forth against the demands of the creditor objections based on such relations of other debtors to the creditor in which this debtor does not take part. Article 208. Performance of Joint Obligation by One of the Debtors The performance of the joint obligation in full by one of the debtors shall exempt other debtors from the performance towards the creditor. The debtor who has performed the joint obligation shall have the right of back demands towards other debtors in the equal share minus the share belonging to himself, unless the law or contract stipulates otherwise. The amount unpaid by one of joint debtors to the debtor who has performed the joint obligation shall be distributed equally between him and other joint debtors. Article 209. Joint Demands In case of joint obligations the demands of any of joint creditors shall have the right to make demands to the debtor in the full amount. The debtor shall not have the right to put forth against the demand of one of the joint creditors objection based on such relations of the debtor with another joint creditor in which this creditor does not participate. The performance of the obligation in full towards one of the joint creditors shall exempt the debtor from the performance towards other creditors. The joint creditor who has received the performance from the debtor shall be obliged to reimburse other creditors, inasmuch as another stems from the relations between them, the shares due to them. Article 210. Performance of the Pecuniary Obligation by Placing the Debt on the Deposit In case when the creditor is not present as well as in case when he evades of the performance or in case of another delay on his part, no less than in case of the absence of the representative of the incompetent creditor, the debtor for the pecuniary obligation or for the obligation on the transfer of securities shall have the right to place the money or securities due from him on the deposit of the notary office which notifies the creditor. The placement of a pecuniary amount or securities on the deposit of the notary office shall be considered as the performance of the obligation. Chapter 19. RESPONSIBILITY FOR THE VIOLATION OF OBLIGATIONS Article 211. Obligation of the Debtor to Reimburse Losses In case of a failure to perform the obligation or in case of inappropriate performance of such obligation by the debtor he shall be obliged to reimburse the creditor for the losses caused to him as a result of the above. Losses shall mean expenses made by the creditor, loss or damage of his property as well as incomes not received by the creditor which he should have received if the obligation had been performed by the debtor. Article 212. Penalty and Losses If a penalty (fine) is established for a failure to perform the obligation or an inappropriate performance of this obligation, then losses shall be reimbursed in the part which has not been covered by the penalty (fine). The law or the contract may envisage the following cases: when it is admitted to exact only penalties (fines) but not losses; when losses may be exacted in the full amount in excess of the penalty (fine); when the creditor may select whether to exact the penalty (fine) or the losses. Article 213. Decrease of the Penalty If the penalty (fine) to be paid is too great if compared with the losses of the creditor, the court shall have the right to decrease the penalty (fine). In so doing, the following must be taken into account: 1) the degree of meeting of the obligation by the debtor; 2) the property status of the citizen participating in the obligation; 3) not only the property interest of the creditor but also any other interest of the creditor which deserves respect. The economic or arbitration court, in exclusive cases, shall have the right, taking into account the interests of the debtor and the creditor which deserve attention, to decrease the penalty (fine) to be paid to the legal person. Article 214. Limitation of the Amount of Liability for the Obligations The legislation of the Republic of Belarus may establish, in relation to definite kinds of obligations, the limited liability for a failure to perform the obligations or for inappropriate performance of them. It shall not be admitted to make agreements between organizations on the limitation of their liabilities if the amount of the liability for the given kind of obligations is strictly defined by the law. Article 215. Duty of the Debtor Who Has Paid the Penalty or Reimbursed for the Losses to Perform the Obligation in Kind The payment of the penalty (fine) established for the case of a delay or another inappropriate performance of the obligation, and the reimbursement of the losses caused by the inappropriate performance shall not exempt the debtor from the performance of the obligation in kind. Article 216. Consequences of a Failure to Perform the Obligation on the Transfer of a Definite Individual Thing In case of a failure to perform the obligation on the transfer of a definite individual thing for the ownership (full management or operation management) or possession by the creditor, the latter shall have the right to demand the withdrawal of this thing from the debtor and its transfer to the creditor. This right shall be lost if the thing has already been transferred to a third person who has a homogeneous right. If the thing has not yet been transferred, the priority shall belong to the creditor in whose favour the obligation was made first, or - if this is impossible to determine - the one who submitted the suit first. Article 217. Consequences of a Failure to Perform the Obligation on the Performance of a Definite Piece of Work In case when the debtor fails to perform the obligation on the performance of a definite piece of work the creditor shall have the right to perform this work at the expense of the debtor inasmuch as the law or the contract does not stipulates otherwise, or to demand that the losses be reimbursed. Article 218. Guilt as a Prerequisite of Liability for the Violation of the Obligations The person who has failed to perform the obligation or has performed the obligated in an inappropriate manner shall bear property liability only if the guilt (intent or carelessness) exists, except cases envisaged by the law or the contract. The absence of the guilt shall be proved by the person who has violated the obligation. Article 219. Liability of the Debtor for the Actions of Third Persons The debtor shall bear liability for a failure to perform the obligation or for inappropriate performance of it by third persons who have been charged to perform it (Article 196 of this Code), if the legislation of the Republic of Belarus does not stipulates that the liability shall be born by the performer himself. Article 220. Decrease of the Amount of Liability of the Debtor in Case of the Guilt of Both Parties If the failure to perform the obligation or its inappropriate performance has been because of a guilt of both parties, the court of justice, economic or arbitration court shall respectively decrease the amount of the liability of the debtor. The court of justice, economic or arbitration court shall also have the right to decrease the amount of the liability of the debtor if the creditor intentionally or through carelessness has facilitated the increase of the amount of the losses caused as a result of the failure to perform or inappropriate performance of the obligation or has not taken measures to reduce them. The rules of this Article shall also be applied respectively in cases when the debtor on the strength or the law or the contract (Article 218 of this Code) bears property liability for the failure to perform or inappropriate performance of the obligation irrespective of his guilt. Article 221. Delay of the Debtor The debtor who has exceeded the time of performance of the obligation shall be answerable before the creditor for the losses caused by the delay as well as for the impossibility of the performance of this obligation if it has occurred accidentally during the time of delay. If as a result of the delay by the debtor the performance has become of no interest for the creditor, he may reject the acceptance of the performance and demand that the losses be reimbursed. In relations between organizations the rejection of the acceptance of the delayed performance shall be admitted only in cases and on conditions established by the law or the contract. The debtor shall not be considered as having made a delay while the obligation cannot be performed due to a delay by the creditor (Article 223 of this Code). Article 222. Delay by the Debtor on the Pecuniary Obligation The debtor who has exceeded the time limit (delayed) for the performance of a pecuniary obligation (liability) shall be obliged to pay for the time exceeded (delay) the amount of the debt increased with due account of inflation. Legislative acts or the contract may establish liability represented by interests (fine, penalty) for the exceeding of the timer limit (delay) in the performance of pecuniary obligations. Article 223. Delay by the Creditor The creditor shall be considered as having exceeded the time limit (delayed) if he has refused to accept the appropriate performance of the obligation offered by the debtor or has not made the actions before which the debtor could not perform his obligation. The creditor shall also be considered as having exceeded the time limit in cases stipulated in Article 224 of this Code. The exceeding of the time limit by the creditor shall entitle the debitor for the reimbursement of the losses caused by the delay if the creditor does not prove that the delay was not caused by an intend or carelessness of his own or of the persons who have been charged to accept the performance on the strength of the law or the order of the creditor. On the pecuniary obligation, the debtor shall not be liable to pay interests for the time of delay made by the creditor. Chapter 20. TERMINATION OF THE OBLIGATIONS Article 224. Termination of the Obligation by the Performance The performance made in the proper manner shall terminate the obligation. The creditor, accepting the performance, shall be obliged to give, on demand of the debtor, a receipt on the acceptance of the performance in full or in part. In case of the performance of transactions between organizations or between these organizations and citizens, made orally, (Articles 45 and 46 of this Code), the organization which has paid for the commodities or services must receive from the other party a document certifying the payment of money or the ground for this payment. If the debtor has given to the creditor a promissory note to certify the obligations, then the creditor, accepting the performance, must return this note or - if it is not possible to return it - specify this in the receipt given by him. The receipt may be substituted by a note made on the promissory note being returned. Possession by the debtor of a promissory note shall certify the termination of the obligation until another has been proved. In case when the creditor refuses to give a receipt, return the promissory note or make a note on the receipt about the impossibility of its return, the debtor shall have the right to delay the performance. In these cases the creditor shall be considered as having exceeded the time limit (delayed). Article 225. Termination of the Obligation by an Offset The obligation shall be terminated by an offset of the counter claim the term of which has come or the term or which is not specified or defined by the time of claiming. To make an offset, it is enough to have an application of one party. Article 226. Inadmissibility of an Offset Offset may not be admitted in relation to the claims (demands): 1) with the expired term of prescription of the lawsuit; 2) on reimbursement of the harm caused by a damage to health or a death; 3) on life maintenance (Article 250 of this Code); 4) in other cases envisaged by the law. Article 227. Offset in Case of Assignment of Claim (Demand) In case of assignment (cession) of a claim (demand) (Article 187 of this Code) the debtor shall have the right to offset against the claim (demand) of the new creditor his claim (demand) to the prior creditor if the term of the claim of the debtor has come before he received a notification of the assignment of the claim or if this term is not specified or defined by the time of claiming Article 228. Termination of the Obligation by the Coincidence of the Debtor and the Creditor in the Same Person The obligation shall be terminated when the debtor and the creditor coincide in the same person. Article 229. Termination of the Obligation by an Agreement of the Parties The obligation shall be terminated by an agreement of the parties, in particular by an agreement on the substitution of one obligation by another obligation between the same persons. Article 230 has lost its force. Article 231. Termination of the Obligation by the Impossibility to Perform It The obligation shall be terminated by the impossibility to perform it if this has been caused by a circumstance for which the debtor may not be answerable (Article 218 of this Code). Article 232. Termination of the Obligation by the Death of the Citizen or the Liquidation of the Legal Person The obligation shall be terminated by the death of the debtor if the performance cannot be effected without the personal participation of the debtor. The obligation shall be terminated by the death of the creditor, if the performance has been designed for the creditor in person. The obligation shall be terminated by the liquidation of the legal person (debtor or creditor). By the legislation of the Republic of Belarus, the performance of the obligation of the liquidated legal person may be imposed on another legal person. II. Individual Types of Obligations Chapter 21. PURCHASE AND SALE Article 233. Sale Contract According to a sale contract the vendor shall be obliged to transfer the property into the property (full economic management or operative management, or control) to the buyer while the buyer shall be obliged to accept the property and pay for it a definite amount of money. Article 234 has lost its force. Article 235. Form of the Sale Contract for a Living House A contract on the sale of a living house (or a part of it), if at least one of the parties is the citizen, must be notarized and registered at the executive committee of the correspondent local Soviet of People's Deputies. The rules of this Article shall also apply to contracts on the sale of dachas. Non-observance of the rules of this Article shall entail invalidation of the contract on the sale of a living house (dacha). Article 2351. Form of the Contract Made between Citizens on the Sale of Construction Materials A contract made between citizens on the sale of construction materials must be notarized, except in cases when the vendor transfers to the buyer the property together with the document on their acquisition at a trade or another organization. Non-observance of the rules of this Article shall entail the application of the rules stipulated by Article 47 of this Code. Article 236. Price Sale of property shall be made by the prices established by the agreement of the parties. The legislation may establish the limit levels of prices for separate kinds of property. Article 237. Consequences of the Vendor's Failure to Perform the Obligation on the Transfer of the Thing If the vendor in violation of the contract does not transfer to the buyer the sold thing, the buyer shall have the right to demand that the sold thing should be transferred to him and the losses caused by a delayed performance be reimbursed, or reject the contract and demand the reimbursement of the losses. Article 238. Consequences of the Buyer's Refusal to Accept the Thing Bought or Pay Its Cost If the buyer in violation of the contract refuses to accept the thing bought or pay for it the established price, the vendor shall have the right to demand that the buyer should accept the thing and pay the price as well as the losses caused by the delay in the performance be reimbursed or reject the contract and demand the reimbursement of the losses. Article 239. Obligation of the Vendor to Inform the Buyer of the Rights of Third Persons for the Thing Being Sold When making the contract the vendor shall be obliged to inform the buyer of all the rights of third persons for the thing being sold (the right of pledge, life use, rights of the employer and so on). Failure to fulfil this rule shall give the buyer the right to demand that the price should be respectively decreased or the contract be canceled and losses reimbursed. Article 240. Obligation of the Vendor to Preserve the Thing Sold When the right of property (the right of full economic management or operative management or control) is transferred to the buyer before the transfer of the thing, the vendor shall be obliged to preserve the thing until its transfer allowing no worsening of it. The expenses necessary for this shall be reimbursed by the buyer to the vendor if this is stipulated by the contract. Article 241. Quality of the Thing Sold Quality of the thing sold must meet the conditions of the contract or - if the contract does not specify this - the requirements met ordinarily. A thing sold to a trade organization must meet the standard, specification or specimens established for the things of this kind if the nature of this type of sale does not specify otherwise. Article 242. Rights of the Buyer in Case He Was Sold a Thing of Inappropriate Quality The buyer who has been sold a thing of inappropriate quality, if its drawbacks were not specified by the vendor, shall have the right to demand on his own choice: either the replacement of the thing, defined in the contract by the gender signs, by a thing of appropriate quality; either the adequate decrease of the purchase price; either the free of charge correction of the drawbacks in the thing by the vendor, or the reimbursement of the buyer's expenses for their correction; either the cancellation of the contract with reimbursement of losses to the buyer. The procedure of the exercise of these rights by the person who has bought a thing in a retail trade enterprise shall be determined by the legislation of the Republic of Belarus. Article 243. Term of Making Claims in Connection with Drawbacks of the Thing Sold The term within which a claim may be made in connection with drawbacks of the thing sold shall be established by the legislation of the Republic of Belarus. If drawbacks of the thing sold were not specified by the vendor before the transfer of the thing to the buyer, the buyer shall have the right to make to the vendor a claim in connection with these drawbacks immediately on detecting them, however not later than six months after the day of the transfer of the thing, while in relation of drawbacks of the building - not later than one year after the day of the transfer of the building into the possession of the buyer; if it is not possible to define the day of transfer or if the building has been in possession of the buyer before the making of the sale contract - after the day of the making of the contract. The Council of Ministers of the Republic of Belarus may establish other terms for making claims on drawbacks of things sold by the retail trade organizations. Article 244. Claims in Connection with Drawbacks of the Thing Sold with the Guarantee Period In cases when in relation to things, sold through retail trade organizations, guarantee periods are established in accordance with Article 260 of this Code, these periods shall be counted from the day of retail sale. The buyer may, during the guarantee period, make claims to the vendor in connection with drawbacks of the sold thing which hamper its normal use. The vendor shall be obliged to correct free of charge the drawbacks of the thing or replace it by a thing of appropriate quality or accept it back with the return to the buyer of the amount paid for it, if the vendor does not prove that the drawbacks appeared due to a violation by the buyer of the rules of use and keeping (storage) of the thing. If the guarantee period established for the making of claims in connection with drawbacks of the thing sold is smaller than the period specified in Article 243 of this Code, then the periods specified in Article 243 of this Code shall apply. Article 245. Term of Prescription by the Lawsuit in Connection with Claims Related to Drawbacks of the Sold Thing A lawsuit in relation to drawbacks of the thing sold may be made not later than six months after the day the claim was made or - if the claim has not been made or it is not possible to establish the time of its making - after the day of expiration of the periods envisaged for the making of claims in relation to these drawbacks (Articles 243, 244 of this Code). Article 246. Obligation of the Vendor in Case a Suit is Made to the Buyer on the Withdrawal of the Thing If a third person makes a suit to the buyer on the withdrawal of the thing on the grounds appeared before the sale of the thing, the buyer shall be obliged to attract the vendor to the participation in the case while the vendor shall be obliged to enter this case on the side of the buyer. If the buyer fails to attract the vendor to the participation in the case the vendor shall be exempted from liability before the buyer if the vendor proves that by participating in the case he could prevent the withdrawal of the sold thing from the buyer. The vendor who has been attracted by the buyer to the participation in the case but has not taken part in it shall be deprived of the right to prove the incorrect management of the case by the buyer. Article 247. Liability of the Vendor in Case the Thing Is Withdrawn from the Buyer on a Decision of the Court If on the strength of the decision made by the court of justice, economic or arbitration court the thing sold is withdrawn from the buyer, the vendor shall be obliged to reimburse the buyer for his losses. The agreement of the parties on cancellation or restriction of liabilities of the vendor shall be invalid if the vendor, knowing about the existence of the rights of a third person for the thing sold, did not inform of it the buyer. Article 248. Sale of Commodities on Credit Durable commodities may be sold to citizens by retail trade organizations on credit (with the payment by installments) in cases and in the manner established by the legislation of the Republic of Belarus. Sale of commodities on credit shall be made at the prices in force at the day of sale. The subsequent alteration of prices for the commodities sold on credit shall not entail a recomputation. The right of property for commodities sold on sale shall appear for the buyer in accordance with the rules of Article 138 of this Code. Chapter 22. Exchange Article 249. Contract of Exchange The contract of exchange between the parties shall be used to exchange one property for another. The contract of exchange shall be liable respectively to the rules of Articles 233 to 2351 and 237 to 247 of this Code. In this case, each participant in the contract of exchange shall be considered as the vendor of the property which he gives and the buyer of the property which he takes. Chapter 23. ALIENATION OF THE LIVING HOUSE (FLAT) ON CONDITIONS OF LIFE MAINTENANCE Article 250. Contract of Alienation of the Living House (Flat) on Conditions of the Life Maintenance According to a contract of alienation of a living house (a flat) on conditions of life maintenance one party (the alienee)shall undertake to provide the other party who is unable to work by the age or the state of health (alienator), for the lifetime with material support (maintenance) in kind (living accommodations, food, care and the required help), while the alienator - to transfer for the ownership of the alienee the living house (the flat). Article 251. Form and Conditions of the Contract The contract of alienation of a living house (flat) on conditions of life maintenance must be made so as to observe the rules of Article 235 of this Code. The contract must envisage the kinds of securities provided to the alienator and specify the cost of the alienated living house (flat) as well as of other property being transferred together with the house (flat). Article 252. Rights and Obligations of the Parties According to the contract of alienation of a living house (flat) on conditions of life maintenance the alienee shall not have the right, during the term of the contract, to attach debts to the acquired house (flat) or alienate it. Claims on the debts of the alienee may not be made in relation to this house (flat). An accidental perish of the house (flat) received from the alienator according to the contract of life maintenance shall not exempt the alienee of obligations undertaken according to the contract. Article 253. Cancellation of the Contract The contract of alienation of a living house (flat) on conditions of life maintenance may be canceled on demand of the alienator in case when the alienee does not perform the obligations undertaken by him according to the contract. The contract of life maintenance may be canceled on demand of the alienee if, on reasons which do not depend on him, his material state has changed to such a degree that he is not able to provide the alienator with the specified maintenance or if the alienator has restored completely his ability to work. In case of death of the alienee during the life of the alienator the contract shall be terminated. If the contract is terminated on the above grounds the house (flat) must be returned to the alienator. Expenses on the maintenance of the alienator made by the alienee before the cancellation of the contract shall not be reimbursed. However if the cancellation of the contract has been caused by the restoration of the ability of the alienator to work the latter shall not have the right to demand that the house (flat) be returned to him but only shall retain the right of life free of charge use of the room provided to him according to the contract. Article 24. GIVING AS A GIFT Article 254. Contract of Gift According to the contract of gift one party transfers free of charge to another party a property for ownership. The contract of gift shall be considered made at the time the property is transferred. Citizens may transfer as a gift a property to organizations on conditions that this property should be used for a definite socially useful purpose. Article 255. Form of the Contract of Gift The contract of gift for the amount exceeding fifty minimum salaries and the contract of gift of currency values for the amount exceeding ten minimum salaries must be notarized. The contract of gift for the transfer of a property by citizens to organizations shall be made in a simple written form. Contract of gift for a living house and construction materials must be made ion the form established by respective Articles 235 and 2351 of this Code. Chapter 25. SUPPLY Article 256. Supply According to the contract of supply the supplier shall undertake to transfer, within the specified term (time) which does not coincide with the time of the making of the contract, to the buyer into ownership (full economic management or operative management) a commodity designed for entrepreneurial or other purposes not connected with the personal (family, home) consumption, while the buyer shall undertake to accept the commodity and pay for it the specified price. The contract of supply shall be liable to the rules of the sale contract unless the legislative acts or the contract specify otherwise. Specifities of supply of commodities for the needs of the State shall be defined by special legislation. Article 257. Term of Supply If the contract envisages the supply of homogeneous commodities by separate batches then, if no other agreement of the parties exists, the supply of commodities within the term envisaged by the contract must be effected at even intervals. In cases when the contract of supply of a set of machines, equipment or other commodities does not envisage the term of supply of its parts, it shall be deemed as performed on the day of supply of the last part of the set. The buyer shall have the right, on notifying the supplier, to reject the acceptance of delayed commodities unless the contract stipulates otherwise. The buyer shall be obliged to accept and pay for the commodities sent by the supplier before the reception of the notification. Article 258. Quality of Supplied Commodities Quality of the supplied commodities must meet the conditions of the contract. If the contract does no include such conditions, the supplier shall be obliged to transfer to the buyer commodities of ordinary quality in accordance with their specific purpose shown in the contract or known by the supplier. If the supplier must not know about the specific purpose of the commodities being sold, they must be suitable for the purposes the commodities of this kind are usually used for. Commodities, the quality of which is specified by standards or other normative and technical documentation established in accordance with the legislation and compulsory for the supplier, must meet the requirements not less than the requirements envisaged by such documents. Article 259. Right of the Buyer and Responsibility of the Supplier in Case When Commodities of Inappropriate Quality Are Supplied If commodities the quality of which does not meet the requirements specified in Article 258 of this Code are supplied, the buyer shall have the right, on his own choice: to demand that the supplier should correct the drawbacks of the commodities, appointing for this purpose, if necessary, an adequate term, or to refuse to pay the commodities in the proportion in which the cost, the actually supplied commodities had at the time of supply, relates to the cost, commodities of appropriate quality would have at that time, or to correct the drawbacks of the commodities at the expense of the supplier having notified him about it in advance. The supplier who has been informed by the buyer about any of the above rights may, without delay, substitute the supplied commodities by commodities of appropriate quality. If the supply of commodities of inappropriate quality represents a substantial violation of the contract, that is, entails for the buyer such a damage that the buyer loses, to a substantial degree, what he should have rightfully presumed when he made the contract, the buyer may demand that the commodities be substituted. In relation to suits stemming from the supply of commodities of inappropriate quality the six-month term of prescription by the lawsuit shall be established counting from the day the buyer receives, in the specified manner, the commodities supplied to him. Article 260. Term of Making Claims in Connection with Drawbacks of Supplied Products The term and the procedure of the establishment by the buyer of drawbacks in the products supplied to him which could not be detected in case of the ordinary acceptance and of the making of claims to the supplier which claims stem from the supply of products of inadequate quality shall be determined by the legislation. In relation to products designed for long-time use or storage, standards or specifications may envisage longer term for the establishment by the buyer in the due manner of the above drawbacks (term of guarantee) with the subsequent making to the supplier of claims on the correction of such drawbacks or on the replacement of the products. The supplier shall be obliged to correct free of charge the drawbacks of the products for which a guarantee term has been set or replace them if he cannot prove that the drawbacks have appeared due to violation by the buyer of the rules of use and storage of the products. Contracts may establish terms of guarantee if they are not envisaged by standards or specifications as well as loner terms of guarantee as compared to those stipulated by the standards or specifications. In relation to consumer goods sold through retail trade organizations the term of guarantee shall be counted from the day the thing was sold through a retail system (Article 244 of this Code). Article 261. Unilateral Refusal to Execute the Contract of Supply A unilateral refusal to execute the contract of supply (in full or in part) may be admitted, if the contract does not specified otherwise, in case of: repeated supply of commodities of inadequate quality; systematic exceeding by the supplier of commodities of the commodity supply final term as stipulated by the contract; systematic or significant delay of payment by the buyer of the supplied commodities in excess of the term stipulated by the contract or if the buyer is declared insolvent. Article 262. Regulation on Supplies. Special Conditions of Supply. Responsibility for the Violation of the Contract of Supply Contracts of supply shall be made and executed in accordance with the Regulation on Supplies approved by the Council of Ministers of the Republic of Belarus and - for some kinds of commodities - in accordance with the Special Conditions of Supplies approved in the manner established by the Council of Ministers of the Republic of Belarus. For violations of obligations of the contract of supply a penalty (fine) and losses shall be exacted. In case of supply of commodities of inappropriate quality or of incomplete commodities the supplier shall be liable to the exaction of a penalty (fine) and, in addition, the losses caused by such supply without counting in the penalty (fine). Chapter 26. CONTRACTING Article 263. Contract of Contracting According to a contract of contracting the producer of agricultural produce undertakes to transfer to the procurer of this produce (the contractor) for ownership (full economic management) the produce produced by producer within the time and in the amount and variety stipulated by the contract while the contractor shall undertake to assist the producer in the production of agricultural produce, accept this produce and pay for it the defined price. The contractor shall also undertake the obligation to transport the produce out if the contract does not stipulates otherwise. The contract of contracting shall be liable to the rules on the contract of supply unless the legislation stipulated otherwise. Chapter 261. SUPPLY OF ENERGY AND OTHER RESOURCES Article 2641. Contract on the Supply of Energy and Other Resources According to the contract on the supply of energy and other resources through the attached network the supplying party shall undertake to provide the other party, i.e. the user (consumer) with the resources stipulated by the contract while the user shall undertake to pay the cost of accepted resources. The supplying party must provide the supply of resources in the amount, within the time and with the quality meeting the established specifications and the conditions of the contract. The supplying party shall have the right to check the system of accounting of the use of resources by the consumer, the technical state of his equipment and plants used to utilize and process the resources without any interference into the economic activities of the consumer. The consumer shall be obliged to secure the conditions of the use of energy and other resources as established by the contract. The legislation may establish specific features for the supply of certain kinds of energy and other resources. Chapter 27. LEASE OF PROPERTY Article 265. Contract on the Lease of Property According to a contract on the lease of property the lease-giver shall be obliged to give to the lease-taker a property for temporary use for payment. Article 266. Form of the Lease of Property The contract on the lease of property between citizens for a term of more than one year must be made in writing. Article 267. Term of the Contract on the Lease of Property The term of the contract on the lease of property shall be defined on the agreement of the parties unless the legislation establishes otherwise. If of the contract on the lease of property has been made without the establishment of the term each of the parties shall have the right to reject the contract at any time notifying of this the other party one month in advance. Article 268 has lost its force. Article 269. Use of Property on Expiration of the Contract If the lease-taker continues to use the property on expiration of the contract with no objects on the part of the lease-giver the contract shall be deemed resumed for an indefinite time. In this case the rules shall be in force as established in part two of Article 267 of this Code. Article 270 has lost its force. Article 271. Provision of Property to the Lease-taker The lease-giver shall be obliged to provide to the lease-taker the property in the condition meeting the conditions of the contract and the purpose of the property. The lease-giver shall not be answerable for the drawbacks of the property which he has specified when making the contract. Article 272. Consequences of the Failure to Provide the Property to the Lease-taker If the lease-giver does not provide for the use by the lease-taker the property given on lease the lease-taker shall have the right to demand from him this property (Article 216 of this Code) and demand the reimbursement of the losses caused by the delay in the performance or to reject the contract and exact the losses caused by the failure to perform it. Article 273. Obligations of the Lease-giver on the Maintenance of the Leased Property The lease-giver shall be obliged to make at his own expense an overall repair of the leased property unless the law or the contract stipulates otherwise. Failure of the lease-giver to meet this obligation shall give the lease-taker the right either to make an overall repair stipulated by the contract or caused by dire necessity and exact from the lease-giver the cost of repair, or include it as part of the lease payment or cancel the contract (Article 282 of this Code) and exact the losses caused by the failure to perform the contract. Article 274. Obligations of the Lease-taker The lease-taker shall be obliged to use the property in accordance with the contract and the purpose of the property, maintain the property in correct condition, make at his own expense current repair, unless the law or the contract stipulated otherwise, and to bear expenses for the maintenance of the property. On termination of the contract on lease the lease-taker shall be obliged to return to the lease-giver the property in the same condition as he has taken it taking into account its normal tear and wear or in the condition specified by the contract. Article 275. Payment for the Use of Leased Property The lease-taker shall be obliged to make, in time, payments for the use of the property. He shall have the right to demand the respective reduction of the lease payment if due to the circumstances beyond control of the lease-taker the conditions of use stipulated by the contract or the state of the property have substantially worsened. Article 276. Responsibility of the Lease-taker for the Worsening of the Property If the lease-taker has allowed any worsening of the leased property he must reimburse the lease-giver for the losses unless he proves that the worsening of he property has occurred not because of him. Article 277. Sublease The lease-taker may give the leased property on terms of a sub-lease only with the consent of the lease-giver. Article 278. Protection of the Rights of the Lease-taker The rights of the lease-taker shall be protected in the manner established by the law (Article 6 of this Code) against any breacher of his possession, including against the property owner. Article 279. Retention of the Force of the Contract on Lease When the Property Is Transferred to Another Person If the right of ownership (the right of full economic management or operative management) for the leased property is transferred from the lease-giver to another person the contract on lease shall retain its force. Article 280. Improvement of the Property In case of an improvement of the leased property on permission of the lease-giver the lease-taker shall have the right to the reimbursement of the expenses mad for this purpose unless the law or the contract stipulates otherwise. Improvement made by the lease-taker without the permission of the lease-giver, if they may be separated without a harm to the property and if the lease-giver does not agree to reimburse their cost may be withdrawn by the lease-taker. The cost of the improvements made by the lease-taker without the permission of the lease-giver which are inseparable without a harm to the property shall not be liable to reimbursement. Article 281. Cancellation of the Contract Ahead of Time on Demand of the Lease-giver The lease-giver may submit to the court of justice, economic or arbitration court a demand on the cancellation of the contract on lease ahead of time, if the lease-taker: 1) uses the property not according to the contract or purpose of the property; 2) worsens the condition of the property deliberately or through carelessness; 3) has not paid the lease payment within three months from the day of expiration of the term of payment, or - according to the renting of property for household use - within one month; 4) does not make overall repair in cases when according to the law or the contract the overall repair shall be the obligation of the lease-taker.


 

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