__86_0---------------------------------------------------- CL__3------------------------------------------------------- __86_0---------------------------------------------------- ### SEE PART 3 FOR BEGINNING ### Article 282. Cancellation of the Contract Ahead of Time on Demand of the Lease-taker 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: 1) if the lease-giver does not make overall repair of the property which is obliged to do; 2) if the property due to the circumstances for which the lease-taker is not unswerable is turned to a condition unsuitable for use. Article 2821. Specific Features of Regulation of Lease Relations for Certain Types of Property Specific features of the regulation of lease relations for certain types of property, including the lease of plots of land, shall be determined by the Law of the Republic of Belarus "On Lease", the Code of land of the Republic of Belarus and other special legislation. Article 283. Contract of Rent for Household Purposes According to the contract of rent for household purposes citizens shall be given for temporary paid use items of household, musical instruments, sport implements, cars and other property designed for personal (family, home) use. Conditions and procedures of rent for household purposes shall be established by the general rules on the contract of property lease (Articles 271 to 276 and 281 of this Code). The property taken on rent shall not be transferred, handed over or given on sublease. Article 284. Typical Contracts of Rent for Household Purposes The Council of Ministers of the Republic of Belarus shall establish typical contract for separate kinds of property taken on rent for household purposes. deviations from the conditions of the typical contracts that limit the rights of the users shall not be valid. Article 285. Term of the Contract of Rent for Household Purposes The term of the contract of rent for household purposes must not exceed the term established by the relevant typical contract (Article 284 of this Code). The lease-taker shall have the right to reject the contract of rent for household purposes at any time. Chapter 28. RENT OF LIVING ROOMS Article 286. Rent of the Living Room Specific features of the regulation of relations of rent of living rooms shall be established by the Living Code of the Republic of Belarus and other acts of the living legislation. Articles 287, 288, 289, 290, 291, 292, 293, 294, 295, 296, 297, 298, 299, 300, 301, 302, 303, 304, 305, 306, 307, 308, 309, 310, 311, 312, 313, 314, 315, 316, 317, 318, 319, 320, 321, 322, 323, 324, 325, 326, 327, 328, 329, 330, 331, 332, 333, 334 have lost their force. Chapter 29. FREE OF CHARGE USE OF PROPERTY Article 335. Contract on the Free of Charge Use of Property According to a contract on free of charge use of the property one party shall undertake to transfer or transfers the property for free of charge temporary use to the other party while the latter shall undertake to return the same property. The contract on free of charge use of the property shall be liable to respective rules of Articles 266, 267, 269, 271 (part one), 274, 276 and 280 of this Code. Article 336 has lost its force. Article 337. Consequences of the Failure to Provide Property for Free of Charge Use If the organization which has undertaken according to the contract the obligation to transfer property for free of charge use does not provides this property then the rules of Article 272 of this Code shall be applied. However in this case the other party shall be reimbursed only for the losses expressed in the expenses made by this party, the loss or the damage of the property. Article 338. Responsibility for Drawbacks of the Property Transferred for Free of Charge Use The party which has transferred property for free of charge use shall be answerable for drawbacks of this property which this party, intentionally or through a grave carelessness, did not specify when transferring the property. Article 339. Transfer of the Property Received for Use to a Third Person The person which has received property for free of charge use shall have the right to provide this property for use by a third person only with the agreement of the person which has transferred the property remaining at the same time responsible before him. Article 340. Cancellation of the Contract Ahead of Time The person which has transferred property for free of charge use shall have the right to demand that the contract be canceled ahead of time in cases envisaged by paragraphs one and two of Article 281 of this Code as well as if the other party, without his consent, has given the property, given to this party for free of charge use, to a third person. Article 341 has lost its force. Article 342. Termination of the Contract The contract on free of charge use of property, beside the general grounds for the termination of the obligations, shall be terminated also in case of the death of the citizen or the termination of the legal person participating in the contract. Chapter 30. CONTRACTUAL WORK Article 343. Contract on Contractual Work According to the contract on contractual work the contractor shall undertake to perform at his risk a definite piece of work as ordered by the customer from his or one's own materials while the customer shall undertake to accept and pay for the performed work. The citizen may undertake the performance of work by the contract on contractual work only when this is not forbidden by the current legislation. Article 344. Estimate A strict or rough estimate may be drawn up for the performance of the work envisaged by the contract. If it has become necessary to significantly exceed the rough estimate he contractor shall be obliged to inform of it the customer in time . In this case the customer shall have the right to reject the contract and reimburse the contractor for the expenses made by him. If the contractor has not notified the customer of the exceeding of the estimate, he shall be obliged to perform the work without demanding the reimbursement of extra-estimate expenses. Article 345. Performance of Work Using Materials of the Contractor and His Resources The contractor shall be obliged to perform the work stipulated by the contract using his materials and his resources inasmuch as the law or contract does not specify otherwise. The contractor performing the work using his materials shall be answerable for the good quality of the materials. Article 346. Performance of Work Using Materials of the Customer If the work is performed in full or in part using materials of he customer the customer shall be answerable for the correct use of this material. The contractor shall be obliged to provide to the customer a report on the consumption of materials and return the remaining material. Article 347 has lost its force. Article 348. Obligation of the Contractor to Preserve the Property Entrusted to Him The contractor shall undertake all measures to preserve the property entrusted to him by the customer and shall bear responsibility for any error which has entailed the loss or damage of this property. Article 349. Risk of Accidental Perish of Materials Risk of accidental perish or accidental damage of materials shall be born by the party which has provided the material. Article 350. Circumstances about Which the Contractor Must Inform the Customer The contractor shall be obliged to inform the customer in time: 1) about unsuitability or bad quality of the material received from the customer; 2) about the fact that the observance of the instructions of the customer threatens the suitability or strength of the performed work; 3) about the presence of other circumstances beyond control of the contractor which threaten the strength or suitability of the work performed. Article 351. Consequences of the Failure of the Customer to Fulfil the Demands of the Contractor If the customer despite the timely and grounded warning on the part of the contractor does not replace, in the adequate time period, unsuitable or bad-quality material, does not modify the instructions on the method of work performance or does not correct other circumstances which endanger the strength and suitability of the work, the contractor shall have the right to reject the contract and exact the losses incurred by him. Article 352. Rights of the Customer during the Performance of Work If the contractor does not begin in time to perform the contract or if he performs the work that slowly that the completion of it in the stipulated time becomes obviously impossible, the customer shall have the right to eject the contract and demands that the losses be reimbursed. If during the performance of the work it becomes obvious that the work will not be performed as required, the customer shall have the right to appoint for the contractor the adequate time for the correction of the drawbacks, and if the contractor does not meets this requirement in the time appointed for him the customer shall have the right to reject the contract or demand that the losses be reimbursed or to charge a third person to this work at the expense of the contractor. In case of justified reasons the customer shall have the right, at any time before the work has been completed, to reject the contract paying to the contractor remuneration for the work done and reimbursing him for the losses caused by the cancellation of the contract counting in the amount the contractor has saved due to the cancellation of the contract. Article 353. Obligation of the Customer to Accept the Work Performed by the Contractor The customer shall be obliged to accept the work performed by the contractor and to inspect it. If the customer does not notify immediately the contractor about the deviations from the conditions of the contract which have worsened the work or about other drawbacks in the work, he shall lose the right in future to refer to these deviations from the conditions of the contract or the drawbacks in the work. As regards deviations from the conditions of the contract or other drawbacks in the work which could not have been detected during the ordinary way of its acceptance, the customer shall be obliged to inform the contractor immediately on their detection. Article 254. Payment of Remuneration to the Contractor The customer shall be obliged to pay for the work performed by the contractor on acceptance of the whole work, unless the law or contract specifies otherwise. Article 355. Settlement between the Parties in Case of Perish of the Object of the Contract or of Impossibility to Complete the Work If the object of the contract, before being accepted, has accidentally perished or the work is not possible to complete not through a guilt of the parties, the contractor shall not have the right to demand remuneration for the work. If the perish of the object of the contract or the impossibility to complete the work have occurred due to drawbacks of the material supplied by the customer or due to his orders as to the methods of the work performance, or have occurred after expiration of the time limit for the acceptance of the performed work by the customer, provided the contractor has observed the rules of Articles 350 and 351 of this Code, the contractor shall retain the right to receiving remuneration for the work. Article 356. Rights of the Customer in Case the Contractor Violates the Contract If the contractor has allowed deviations from the conditions of the contract which have worsened the work or has allowed other drawbacks in the work, the customer shall have the right, on his own choice, to demand: free of charge correction of the above drawbacks within the adequate period of time or reimbursement of the expenses incurred by the customer which have been required to correct the drawbacks of the work using his own resources, if the contract stipulates such right of the customer, or a correspondent decrease of remuneration for the work. If the work includes substantial deviations from the conditions of the contract or other substantial drawbacks, the customer shall have the right to demand that the contract be rejected and the losses be reimbursed. Article 357. Term of Prescription for the Lawsuits on Liability of the Contractor A suit connected with deviations by the contractor from the conditions of the contract which have worsened the work or other drawbacks in the work may be mad within six months from the day the work was accepted, or - if the drawbacks could not have been detected with the ordinary method of acceptance of work - within one years from the day the work was accepted. A suit related to such drawbacks in a building or works which could not have been detected with the ordinary method of work acceptance, if one of the parties is a citizen, may be made within three years from the day the work was accepted. If the contract for the performance of work envisaged a period of guarantee and the application related to the drawbacks in the work has been submitted within the period of guarantee, the term of prescription by the suit shall begin from the day of the application on the drawbacks or - in relations between organizations - from the day the drawbacks were detected in the work. Article 358. Rules on Definite Types of the Contracts The rules on definite types of contracts on contractual work between organizations as well as the rules on such contracts on the servicing of household needs of the citizens (household order) shall be established by the legislation of the Republic of Belarus. The Council of Ministers of the Republic of Belarus shall adopt typical contracts related to definite types of service for the citizens. Deviations from the conditions of typical contracts which restrict the rights of the customers shall be invalid. Article 359. Household Order According to a household order the organization which services the household needs of the citizens shall undertake to perform for the customer a definite piece of work using one's own material or, on the wish of the customer, of his material, while the customer shall undertake to accept the work and pay for it. If the work is made using material of the contractor, the cost of material shall be paid by the customer in full or in part in accordance with the typical contract with the final settlement to be made when the customer received the work performed by the contractor. In cases stipulated by the typical contract material may be provided by the contractor on credit (with payment by installments). A future change of the price of the material provided on credit shall not entail recalculations. If the work is performed using material of the customer the receipt given by the contractor when making the contract must specify the precise name of the material and its value as agreed by the parties. The contract on the household order shall be liable to the rules on the contract on contractual work unless the law stipulated otherwise. Article 360. Rights of the Customer in Case of a Substantial Violation of the Contract on Household Order by the Contractor If substantial deviations from the conditions of the contract or other substantial drawbacks have been detected in the thing made of material of the customer, the customer shall have the right, on his own choice, to demand either that another thing be made of a similar kind of material of the same quality or that the contract be canceled and the losses be reimbursed. Article 361. Consequences of the Failure of the Customer to Appear to Receive the Work Performed If the customer has failed to appear to receive the thing made according to a contract on household order, the contractor shall have the right, on expiration of six months after the day when, according to the contract, the thing had to be transferred to the customer and two warnings of the customer, to sell the thing in the established manner and place the amount received, less all payments due to the contractor, on the deposit of a notary office in the name of the customer. Chapter 31. CONTRACT OF CAPITAL CONSTRUCTION Article 362. Contract of Capital Construction According to the contract of capital construction the contracting organization shall undertake, by its own force and resources, to build and transfer to the customer organization the facility in accordance with the approved designing estimates and within the established time period while the customer shall undertake to provide to the contractor the construction site, transfer to him the approved designing estimates, secure timely financing of the construction, accept the completed facilities and pay for them. Provision for construction purposes of technological, energy, electrical-engineering and general factory equipment and devices and machinery shall be the responsibility of the customer except cases stipulated by the legislation. The legislation may oblige the customer to provide materials for construction purposes. Article 363. General Contractor and Subcontractor The contract of capital construction shall be made by the customer with one construction organization and in cases and in the manner as specified by the legislation with two or more construction organizations which shall have the right to act as the general contractor and charge, on the basis of a subcontract, specialized organizations to perform separate sets of work (Article 196 of this Code). The contract on the performance of equipment mounting operations shall be made by the customer either with the general contractor or with the supplier of the equipment. On agreement with the general contractor contracts on the performance of mounting or other special operations may be made by the customer with mounting or other specialized organizations. Article 364. Rights of the Customer The customer shall exercise control and technical supervision over the correspondence of the scope, cost and quality of the work performed with the designs and cost estimates. He shall have the right to check, at any time, the progress and quality of construction and mounting operations as well as he quality of materials used, without interfering into operative and economic activities of the contractor. Drawbacks in the performance of the work or in materials used to perform the work made by the contractor (or a subcontractor) must be corrected by the contractor at his own expense. Article 365. Responsibility of the Parties for the Violation of the Contract on Capital Construction In case of the failure to meet obligations of the contract of capital construction or in case of their inadequate meeting, the party responsible for this shall pay the established penalty (fine) as well as to reimburse in the amount which is not covered by the penalty the losses expressed by the expenses made by the other party, the loss or damage of the property of this party. The amounts of penalties (fines) paid by the contractor for the failure to observe the time of performance of separate operations shall be returned to the contractor in case when all operations (work) on the facility are completed by the final term established by the contract. Article 366. Rules on the Contracts of Capital Construction Contracts of capital construction shall be made and performed in compliance with the rules approved by the Council of Ministers of the Republic of Belarus or according to he procedure established by the Council of Ministers. Chapter 32. TRANSPORTATION Article 367. Contract on Transportation of Cargo and Plan of Cargo Transportation According to the cargo transportation contract the transport organization (carrier) shall undertake to deliver the cargo, entrusted to it by the consignor, to the place of destination and give it out to the person authorized to receive the cargo (consignee) while the consignor shall undertake to pay for the transportation of the cargo the established payment. Article 368. Contract on Transportation of Passenger According to the passenger transportation contract the carrier shall undertake to transport the passenger to the place of destination and - in case the passenger has submitted a luggage - to deliver the luggage to the place of destination and give it out to the person authorized to receive the luggage; the passenger shall undertake to pay the established fares and - if he has submitted a luggage - to pay for the transportation of the luggage. Article 369. Conditions of Transportation of Cargo, Passengers and Luggage Conditions of transportation of cargo, passengers and luggage and the liabilities of the parties on these transportation shall be defined by the statutes (codes) of individual kinds of transport and the rules issued according to the established manner. Transportation in the Republic of Belarus of cargo, passenger and luggage by automobile transport means and liabilities of the parties on these transportation shall be regulated by this Code, the Statute of the Automobile Transport of the Republic of Belarus approved by the Council of Ministers of the Republic of Belarus and the rules of transportation issued in the established manner. Article 370. Liability for the Failure to Meet Obligation on the Transportation Contract The carrier, consignor and consignee shall bear property liability for the failure to meet the obligations of the transportation contract in cases and in the manner established by the legislation of the contract. Articles 371, 372, 373, 374 have lost their force. Article 375. Termination of the Transportation Contract on Demand of the Passenger The passenger shall have the right to reject the contract of transportation by long-distance automobile facilities and, having returned back the ticket before the departure of the bus (route taxi), receive the money paid for it: 1) if the departure of the bus (taxi) is delayed; 2) if the passenger is given in the bus (taxi) a place of a lower class that specified in the ticked sold to him; 3)in other cases envisaged by the Statute of Automobile Transport of the Republic of Belarus. In case the travel is terminated due to an illness or accident the passenger shall be paid back the travel fares in proportion to the remaining distance of the travel. Article 376. Liability of the Carrier for the Loss, Partial Loss or Damage of the Cargo or Luggage The carrier shall be responsible for the loss, partial loss or damage of the cargo and luggage accepted for transportation, if he does not prove that the loss, partial loss or damage has happened because of guilt which is not his own fault (Articles 218 and 220 of this Code). Transport statutes (codes) may envisage cases when the proof of the guilt of the carrier for the loss, partial loss and damage of cargo shall be the responsibility of the consignee or consignor. Article 377. Amount of Liability of the Automobile Transportation Organization for the Loss, Partial Loss or Damage of the Cargo The carrier (automobile transportation organization) shall be answerable for the damage caused during transportation of cargo or luggage by the automobile transport: 1) in case of the loss or partial loss of the cargo or luggage - in the amount of the cost of the cargo or luggage lost of partially lost; 2) in case of a damage of the cargo or luggage - in the amount for which the cost of it has been decreased; 3) in case of the loss of the cargo or luggage which has been submitted for transportation with the declared value - in the amount of the declared value of the cargo or luggage if it is not proved that this value is below its actual cost. Article 378. Claims and Suits to Transportation Before a suit is made to the carrier related to the transportation a claim must be made to the carrier. Claims may be made within six months while claims for the payment of fines and bonuses - within 45 days. The carrier shall be obliged to consider the claim made and notify the claimant on meeting or rejection of the claim within three months or - in relation to claims to the transportation effected by carriers of different types of transport by the same document - within six months, and a claim on the payment of a fine or bonus - within 45 days. If a claim has been rejected or the answer has not been received within the time established by this Article, the claimant shall be given two months for making a suit as from the day the answer was received or the time established for the answer has been expired. A six-month period shall be established to the making by the carrier of suits stemming from transportation to the consignors, consignees or passengers. The term of prescription by the lawsuit and the procedure of making suits on disputes connected with international transportation shall be established by transport statutes (codes) or international agreements (treaties). Article 379. Liability of the Carrier for the Causing of Death or Damage to Health of the Passenger Liability of the carrier for the causing of death or damage to health of the passenger shall be defined by the rules of the chapter on the obligations arising due to the causing of harm of this Code, unless the law does not stipulate a higher liability. Chapter 33. INSURANCE Article 380. Insurance Contract According to the insurance contract one party (insurer) shall undertake, in case of insurance case, to pay insurance reimbursement or the insurance amount to the other party (the insured) or another person authorized to receive this amount, while the other party shall undertake to pay insurance fees within the established time and meet other conditions of the contract. Insurance relations shall be regulated by special legislation. Articles 381, 382, 383, 384 have lost their force. Chapter 34. KEEPING OF PECUNIARY RESOURCES AND SETTLEMENT Article 385. Regulation of Relations on the Keeping of Pecuniary Resources and Settling of Payments Relations on the keeping of pecuniary resources by banks, execution by them of other bank operations, including operations based on contracts of bank accounts and bank deposits, shall be regulated by special legislation. Articles 386, 387, 388, 389 have lost their force. Chapter 35. LOAN Article 390. Loan Contract According to the loan contract one party (creditor, lender) shall transfer to the other party (borrower) for ownership (full economic management or operative management) money or things defined by typical characteristics, while the borrower shall undertake to return to the creditor the same amount of money and the equal number of things of the same type and quality. The loan contract for the amount over five minimum salaries must be made in writing. The loan contract shall be considered made from the time the money or things are transferred. Collection of interests on the loan contract shall be allowed only in cases established by the legislation as well as according to lending operations of cashdesks of mutual help and pawnshops. Article 391. Disputing the Loan Contract The borrower shall have the right to dispute the loan for the absence of money proving that money or things in reality have not been received by him from the creditor or have been received in the mount smaller than specified in the contract. In cases when the loan contract must be made in writing (Article 390 of this Code) it shall not be allowed to dispute it for the absence of money by witness evidence except in case of actions liable to criminal responsibility. Article 392. Loan Operations of Banks Loan operations of banks shall be regulated by special legislation. Article 3921. Loan Operations of Pawnshops Pawnshops shall give to the citizens loans secured by items of household or personal use in accordance with the legislation on pawn. The limit amount and number of loans which may be given to one person as well as the time period for which loans are given shall be determined by the Typical Statute of the Pawnshop approved by the Council of Ministers of the Republic of Belarus. Article 393. Loan Operations of Public-Help Cashdesks and Art-Union Funds Public-help cashdesks of trade union committees of enterprises, institutions and organizations shall give to workers and clerks long-term and short-term loans. Mutual-help cashdesks in collective farms shall give loans to collective farmers. Funds of art unions shall give loans to workers of literature and art. Mutual-help cashdesks of pensioners of social security departments of executive committees of regional, urban, town-district Soviets of Peoples' Deputies shall give long- and short-term loans to pensioners. The time periods and conditions of giving loans shall be defined by typical (exemplary) statutes of public-help cashdesks and statutes of art-union funds. Chapter 36. AGENCY Article 394. Contract of Agency According to the contract of agency one party (agent) shall undertake to perform definite legal actions in the name and at the expense of the other party (trustee). The trustee shall undertake to pay the agent remuneration if payment of remuneration is stipulated by the law or the contract. Article 395. Performance of Agency in Accordance with the Instructions of the Trustee The agent shall undertake to perform the agency given to him in accordance with the instructions of the trustee. The agent shall have the right to deviate from these instructions if it is necessary, due to circumstances of the case, in the interests of the trustee and the agent could not ask the trustee in advance or did not receive in due time the answer to his request. In this case the agent shall be obliged to inform the trustee of the made deviations as soon as this notification became possible. Article 396. Person Execution of the Agency by the Agent The agent shall undertake to execute personally the agency given to him. He shall have the right to transfer the execution of the agency to another person (deputy) only in cases stipulated by Article 70 of this Code. In these cases the agent shall be responsible only for the selection of the deputy. The trustee shall have the right to reject the deputy selected by the agent. Article 397. Report of the Agent The agent shall be obliged to: 1) report to the trustee on his demand all information on the progress of execution of the agency; 2) on execution of the agency, without delay, present to the trustee a report with justifying documents attached, if this is required by the nature of the agency; 3) without delay, transfer to the trustee all received in connection with the execution of the agency. Article 398. Duties of the Trustee The trustee shall be obliged, without delay, to accept from the agent all executed by the latter in accordance with the contract. The trustee shall be also obliged, unless the contract does not stipulate otherwise: 1) to provide the agent with the resources necessary to execute the agency; 2) to reimburse the agent for the expenses incurred which were necessary to execute the agency; 3) on execution of the agency - to pay the agent the remuneration if such is to be paid (Article 394 of this Code). Article 399. Termination of the Contract The contract of agency shall be also terminated, except the general grounds for the termination of the obligations, due to: 1) it being canceled by the trustee; 2) the rejection by the agent; 3) the death of the citizen participating in the contract, or recognizing him incompetent, partially competent or missing; 4) the liquidation of the legal person. The trustee shall have the right to cancel the agency while the agent shall have the right to reject the agency at any time. An agreement on the rejection of these rights shall be invalid. If the agent has rejected the contract in conditions when the trustee is deprives of possibility to secure his interests in other ways, the agent shall be obliged to reimburse for the losses caused by the termination of the contract. Article 400. Consequences of the Termination of a Partially Executed Contract If the contract of agency has been terminated before the agency has been executed in full, the trustee shall be obliged to reimburse the agent for the expenses incurred while executing the agency, or when the agent was due to receive remuneration - also to pay him the remuneration in proportion to the work performed by him. This rule shall not be applied to the execution by the agent of the agency after he has learned or must have learned about the termination of the agency. Article 401. Liabilities of the Successors of the Agent In case of death of the agent his successors shall be obliged to inform the trustee about termination of the contract of agency and take measures required to protect the property of the trustee. Similar obligations shall be born by the liquidator of the legal person which has acted as the agent. Chapter 37. COMMISSION Article 402. Contract of Commission According to the contract of commission one party (commission agent) shall be obliged on the instruction of the other party (client) to make, for remuneration, for the client one or several transactions in his own name. Commission shops shall make contracts of commission for the sale, through retail system, of both new and second-hand consumer goods and home items, art products, applied art products, antiquities, with the exception of articles which are forbidden to be accepted and sold through commission shops. The procedure of approval of these rules shall be established by the Council of Ministers of the Republic of Belarus. Article 403. Form of the Contract The contract of commission must be made in writing (Article 49 of this Code). Article 404. Rights and Duties of the Commission Agent on Transactions with the Third Person As regards a transaction made by the commission agent with a third person, the commission agent shall acquire the rights and become liable, although the client has been mentioned in the transaction or has entered with the third person into direct relations on the execution of the transaction. Article 405. Rights of Ownership of the Client Property which has been received by the commission agent from the client or has been acquired by the commission agent for the client shall be the property of the latter. Article 406. Execution of the Commission Agency The commission agent shall be obliged to execute the undertaken agency on conditions most beneficial for the client. If the commission agent makes a transaction on conditions more beneficial that those specified by the client, all benefit shall be transferred to the client. Article 407. Deviations from the Instructions of the Client The commission agent shall have the right to deviate from the instructions of the client in cases stipulated by Article 395 of this Code. The commission agent who has sold the property at a price below the one established by the client shall be liable to reimburse the latter for the difference if he does not prove that it has not been possible to sell the property at the established price and the sale at a lower price has prevent even greater losses. If the commission agent buys the property at a price above the price set for him by the client, the client who does not wish to accept such purchase shall be obliged to notify about this the commission agent without delay on receiving a notification on the making of a transactions with a third person. Otherwise, the purchase shall be recognized as accepted by the client. If the commission agent informs that he accepts the difference in price for his expense the client shall not have the right to reject the transaction made for him. Article 408. Price of Things Sold by the Commission Agent The sale price of things accepted by the commission shop shall be determined by agreement of the parties. The sale price of antiquities and unique things and works of art shall be determined through a special evaluation. The price of a thing, that has not been sold within the period set by the rules (Article 402 of this Code), may be reduced on agreement with the client. If the client does not appear for the revaluation of the thing when called, the shop shall reduce the price in accordance with the rules. The sale price for excessive agricultural produce accepted by a consumer cooperative organization from collective farms for sale shall be determined by agreement of the parties. Article 409. Execution by the Commission Agent of a Transaction with the Third Person The commission agent must execute all obligations and exercise all rights stemming from the transaction made by him with a third person. The commission agent shall not be answerable before the client for the execution by the third person of a transaction made with him for the client, except cases when the commission agent undertakes the guarantee of performance by the third person of this transaction (del credere). In case the third person violates the transaction made with him by the commission agent, the commission agent shall be obliged, without delay, to notify of it the client, collect and provide the necessary proofs. The client, when informed of the violation by the third person of the transaction made with him by the commission agent shall have the right to demand that the claims of the commission agent to this person on the above transaction be transferred to him (client). Article 410. Liability of the Commission Agent for the Loss, Partial Loss or Damage of the Property of the Client The commission agent shall be answerable before the client for the loss, partial loss or damage of the property of the client held by the commission agent, if he does not prove that the loss, partial loss or damage has been made by no fault of his. If when the commission agent accepts a property sent by the client or received by the commission agent for the client this property has damages or losses which can be seen during its outside inspection as well as if somebody causes damage to the property of the client kept by the commission agent, the commission agent shall be obliged to take measures to protect the rights of the client, collect the required proofs and inform about all this, without delay, the client. The commission agent who has not insured the property of the client kept by him shall be answerable for this only in cases when the client has instruction him to insure this property or if he insurance of the property is compulsory on the strength of the law. Article 411. Report of the Commission Agent on the Execution of the Agency On executing the agency the commission agent shall be obliged to submit to the client a report and to transfer to him everything received on the executed agency as well as, on the order of the client, transfer to him all the rights in relation to a third person stemming from the transaction made by the commission agent with this third person. If the client has objections on the report he shall be obliged to inform of them the commission agent within three months as from the day the report was received. Otherwise, the report shall be considered accepted provided no other agreement has been made. The commission shop shall pay the money to the client, less the commission fee due to the shop, not later than three days after the thing was sold. Article 412. Acceptance of the Execution of the Agency by the Client The client shall be obliged: 1) to accept from the commission agent everything executed on his instruction; 2) to inspect the property acquired by the commission agent for him and inform the latter without delay about drawbacks detected in this property; 3) exempt the commission agent from the obligations undertaken by him for the execution of the agency before the third person. Article 413. Commission Fee On executing the agency the commission agent shall have the right to receive from the client remuneration. If the commission agent has undertaken the guarantee for the execution of the transaction by a third person (Article 409 of this Code), then for the guarantee the commission agent shall receive from the client a special remuneration. The amount of remuneration as well as remuneration for del credere shall be determined by the agreement of the parties, unless the law specified otherwise. Article 414. Reimbursement of Expenses for the Execution of the Agency The client shall be obliged, in addition to the payment of the commission remuneration, and in relevant cases payment of remuneration for del credere too, to reimburse the commission agent for the amounts spent by him on the execution of the agency. The commission agent shall not have the right for reimbursement of expenses related to the keeping of the clients' property, unless the law or the contract specified otherwise. All expenses on the delivery of agricultural produce transferred for commission to the place of their sale specified in the contract shall be referred to the expense of the client, unless the contract stipulated otherwise. Article 415. Deduction by the Commission Agent of the Amounts Due to Him The commission agent shall have the right to deduct from all amounts received by him at the expense of the client the amounts due to him according to the contract of commission. Article 416. Execution of the Agency by the Commission Agent after the Death of the Client or Termination of the Legal Person Who Is the Client In case of the death of the client, or if the client has been recognized incompetent, partially competent, missing as well as in case of the termination of the legal person who acts as the client, the commission agent shall be obliged to continue the execution of the agency given to him until the successors or respective representatives of the client give relevant instructions. Article 417. Refusal of the Commission Agent to Execute the Agency The commission agent shall not have the right, unless the contract stipulates otherwise, to refuse to execute the undertaken agency, with the exception of cases when this is caused by the impossibility to execute the agency or the violation by the client of the contract of commission. The commission agent shall be obliged to inform in writing the client of the refusal; in this case, the contract of commission shall retain its force within two weeks as from the day the client was informed by the commission agent about the refusal to execute the agency. If the commission agent refuses to execute the undertaken agency due to a violation of the contract of commission by the client, he shall have the right to receive both the reimbursement of the expenses incurred and the commission remuneration. Article 418. Disposal of the Property of the Client after the Refusal of the Commission Agent to Execute the Agency The client, notified about the refusal of the commission agent to execute the agency shall be obliged, within one month from the day the refusal was received, to dispose of the property being held by the commission agent. The same obligation shall also be on the client in case he cancels the agency given by him to the commission agent (Article 419 of this Code). If the client within the above period does not dispose of the property held by the commission agent, the commission agent shall have the right to place this property on keeping at the expense of the client or for the purpose of coverage of his requirements to the client - sell this property at the price possibly most beneficial for the client. Article 419. Cancellation of the Agency by the Client If the client has canceled the agency given by him to the commission agent in full or in part before the commission agent makes relevant transactions with third persons, he shall be obliged to pay the commission agent the commission remuneration for the transactions made by him before the cancellation of the agency, as well as reimburse the commission agent for the expenses incurred by him before the cancellation of the agency. The citizen shall have the right to demand, at any time, that the things placed by him to the commission shop for sale which have not been sold as yet should be returned, reimbursing the storage (keeping) expenses at the established rates. Chapter 38. KEEPING Article 420. Contract of Keeping According to the contract of keeping one party (the keeper) shall undertake to keep the property transferred to it by the other party and return this property untouched. The contract of keeping made between organizations may also envisage the obligation of the keeper to accept for keeping the property which will be transferred to it by the other party. The contract of keeping shall be free of charge, unless the law or contract stipulates otherwise. __89_0---------------------------------------------------- CL__3------------------------------------------------------- __89_0---------------------------------------------------- ### SEE PART 5 FOR CONTINUE ###

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