Civil law. Part II. Conclusion and termination of a supply agreement (most important)

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Civil law. Part II. Conclusion and termination of a supply agreement (most important)

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8. CONCLUSION AND TERMINATION OF THE SUPPLY CONTRACT

Order of conclusion the contract has features: one of the parties to the future contract sends the counterparty offer - an offer to conclude an agreement with her, and the other party sends acceptance - consent to conclude a contract. If the acceptor has changed the terms of the contract in his response, this response is not considered an acceptance, but an offer, to which the counterparty must respond within 30 days. The party that violated this rule will have to compensate the other party for losses (this rule is provided for in Article 507 of the Civil Code, called “Settlement of disagreements when concluding a contract”).

Handover procedure:

▪ the goods are transferred by shipment by the supplier either to the buyer himself or to a person indicated by him;

▪ the goods can be transferred at the supplier’s location (sampling) on the basis of a shipping order, which must be sent to the supplier 30 days before delivery (clause 2 of Article 509 of the Civil Code);

▪ goods can also be transferred at the location of the supplier, such transfer is called sampling (Article 510 of the Civil Code);

▪ the right to choose transport for delivery of goods belongs to the supplier (clause 1 of Article 510 of the Civil Code);

▪ reusable containers and packaging means in which the goods were delivered must be returned to the supplier (Article 517 of the Civil Code);

▪ goods delivered ahead of schedule and accepted by the buyer are counted against the number of goods to be delivered in the next period (part 2, clause 3, article 508 of the Civil Code);

▪ in case of short delivery of goods, the supplier is obliged to make up for the under-delivered quantity of goods in the next period (clause 1 of Article 511 of the Civil Code);

▪ delivery of goods of one type in greater quantities than provided for in the contract is not counted towards covering the shortfall of goods of another type and is subject to replenishment (clause 2 of Article 512 of the Civil Code), etc.

It should be noted that the conditions for the transfer of goods under a supply contract are formulated by the legislator in the form of the rights and obligations of the parties concerned.

Grounds for termination of the contract supplies are:

▪ improper execution of the contract;

▪ agreement of the parties to terminate the contract;

▪ unilateral refusal to fulfill the contract in the event of a significant violation of the contract by the other party (Article 523 of the Civil Code).

Grounds for unilateral refusal to execute supply contracts are:

▪ violations committed by the supplier;

▪ delivery of goods with defects that cannot be eliminated within a time period acceptable to the buyer (clause 2 of Article 523 of the Civil Code);

▪ repeated violation of delivery deadlines for goods (clause 2 of Article 523 of the Civil Code);

▪ delivery of poor quality or incomplete goods (clause 1 of Article 518, Article 519, clause 2 of Article 480 of the Civil Code).

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