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Civil law. Part II. Contents of the property trust management agreement (the most important)

Lecture notes, cheat sheets

Directory / Lecture notes, cheat sheets

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71. CONTENT OF THE PROPERTY TRUST MANAGEMENT AGREEMENT

The manager has the right: exercise the powers of the owner (but does not have the right of ownership to the property received under the contract); perform any legal and actual actions in relation to this property in the interests of the beneficiary, but restrictions may be provided for by law or contract; perform actions with property on his own behalf, but at the same time he must warn the counterparty in the transaction that he is a trustee; use negatory and vindication claims to protect the rights to property transferred to him for management; instruct another person to perform their duties with the written consent of the founder or independently in the absence of the possibility of obtaining such consent.

The manager must: act in the interests of the founder or beneficiary; personally manage the property entrusted to him; separate the property entrusted to him from his personal property and reflect it on a separate balance sheet; open a separate bank account enroll all income and expenses from the management of entrusted property; maintain property in proper condition and take care of it the same as with respect to their own property; submit to the founder of the management and the beneficiary a report on their activities within the time limits stipulated by the contract.

The founder has the right: demand from the manager the proper performance of the contract; exercise control over its activities; withdraw from the contract, subject to the payment of remuneration to the manager, stipulated by the contract, notifying him of this 3 months in advance (these rights also arise for the beneficiary, in addition, he has the right to waive his rights granted to him by the contract).

The founder is obliged: pay remuneration to the manager; reimburse him for the necessary expenses; perform creditor obligations related to trust management; warn the manager that the property transferred to him is encumbered with a pledge; not to interfere in the operational and economic activities of managing its property.

The manager is responsible for improper management before the founder or beneficiary in the form of compensation for losses, regardless of his fault, unless he proves that they arose as a result of force majeure or actions of the beneficiary or founder of the management.

The founder responds: for the transfer of property encumbered with a pledge to the manager without warning him (sanction - payment of remuneration to the manager for one year); for the transfer to the manager of property burdened with debts (termination of the contract by a court decision and compensation for losses); for interference in the operational and economic activities of the manager (compensation for losses); for late payment of remuneration to the manager (forfeit if the founder pays this remuneration himself).

The founder is not responsible for his civil obligations with the property transferred to trust management, with the exception of two cases: when the property transferred by him was encumbered with a pledge, and when he was declared bankrupt.

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