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Коммерческое право. Коммерческое обязательство (самое важное)

Lecture notes, cheat sheets

Directory / Lecture notes, cheat sheets

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26. COMMERCIAL OBLIGATION

According to Art. 307 of the Civil Code in force obligations one person (debtor) is obliged to perform a certain action in favor of another person (creditor), such as: transfer property, perform work, pay money, etc., or refrain from a certain action, and the creditor has the right to require the debtor to fulfill his obligations . Thus, the essence of legal obligations is to oblige specific persons to certain behavior, providing for a property goal.

Commercial commitment arises from the agreement of participants in commercial activities, which should take into account a certain variety of obligations and features of their implementation. The terms of business contracts are, in fact, aimed at the legal regulation of the fulfillment of obligations. The wording of these conditions forms the legal structure of the contract.

Proper performance is enshrined in the Civil Code as the only principle for the performance of obligations. Its essence boils down to the following: an obligation must be fulfilled in accordance with its terms and requirements of the law, other legal acts, and in the absence of such conditions and requirements, in accordance with business practices or other usually imposed requirements (Article 309 of the Civil Code).

Proper execution possible with the obligatory observance of the following five elements:

▪ proper subject;

▪ appropriate subject;

▪ proper method of execution;

▪ proper place of performance;

▪ proper deadline.

Due performance means that the obligation is terminated.

Default occurs when, at the time of expiration of the obligation to fulfill the obligation, one of the following two conditions is found out:

a) the debtor did not perform those actions that are provided for by the agreement, and the parties actually remain in the position that existed before the conclusion of the agreement; in other words, the action constituting the subject of the contract has not been committed;

b) the actions of the debtor resulted in significant damage to the creditor.

Improper execution are those cases when the performance is provided, but it does not meet the requirements (conditions) fixed in the contract (i.e. non-fulfillment of certain terms of the contract).

Since non-performance or improper performance does not terminate the obligation, then, in addition to incurring property liability (for example, indemnification), the main obligation of the debtor is to properly fulfill his obligation. But if the parties foresee that the probability of non-performance is high, then for such a situation they can provide in the contract for the use of the right to secure performance (for example, a pledge) or the use of some method of terminating the obligation (for example, compensation).

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