• A
  • A
  • A
  • ABC
  • ABC
  • ABC
  • А
  • А
  • А
  • А
  • А
Regular version of the site

Decree of the Plenary Session of the Supreme Court of 23 June 2015 № 25 “On the Application by Courts of Some Provisions of Section I of the First Part of the Civil Code of the Russian Federation”

It is one of the most sweeping and comprehensive decrees of the supreme courts in this century. The decree is related to large-scale legislative changes in the Civil Code, that were recently made. It consists of 133 paragraphs. Here are some of the most essential provisions:

- the behaviour of a party to a contract may be regarded as unscrupulous not solely on the basis of a well-grounded declaration of the other party to that effect, but also at the initiative of the court, if an evident departure from standards of good faith behaviour is found by the court in the actions of the first party. In such a case the court, when considering the case, shall indicate and offer to discuss particular circumstances which clearly testify to such unscrupulous behaviour, even though the parties themselves did not refer to it;

- a transaction which has been made with illegal purpose in circumvention of a law, shall be governed by those civil law rules which had been circumvented;

- if a plaintiff refers in his suit to legal rules which are found by court to be inapplicable to the present case, such wrong reference should not serve as a ground for dismissing his suit (by this holding the right of the court to change the qualification of a suit is finally acknowledged);

- since the lost profits constitute a non-received income, one should take into account, when solving the disputes related to its compensation, that assessment of such lost profits presented by the plaintiff is often an approximate one and probabilistic in nature, and that this circumstance may not per se serve as a ground for dismissing the suit;

- all uncertainties and contradictions in the provisions of charter documents of a legal person regarding the limitations upon the powers of its general director should be interpreted as if such limitations were non-existent;

- it is not prohibited to make a transaction under condition subsequent or condition precedent whose emergence depends, among other things, upon the actions of a party to the transaction (e.g., the conclusion of a contract of supply under condition precedent as to receipt of a bank guarantee which ensures the discharge of buyer’s obligations on payment for goods; or the making of lease contract under condition precedent regarding the registration of the lessor’s right of ownership to it);

- the consent to conclude a transaction is itself a transaction and may be contested as such; - the recognition of a debt may be qualified as a transaction;

- if it is found that a gift of a part of a share in a company was made with the purpose to avoid the application of the rules on other shareholders’ preemptive right with regard to the remaining part of the share, the contracts of gift and subsequent sale should be viewed as a single sales contract made in violation of the aforementioned rules and in circumvention of the law;

- making transaction by a person not having the respective occupational license does not entail its invalidity – the other party to the transaction may repudiate the contract and demand the compensation of losses;

- if mutual considerations within a transaction are grossly incommensurate (diverge several times as much), such incommensurability is a sign of its clearly damageable character;

- when a transaction on behalf of a company is made by a person lacking any powers to conclude it, and the counterparty of the legal person was relying in good faith on the information about his powers found in the Register of Companies, such transaction shall create, change or terminate the civil rights and duties for the company from the moment of its making (Arts 51 and 53, Civil Code) only in the event that the information in question has been entered into the Register as a result of unscrupulous actions of third persons or otherwise against the will of the company;

- publication by a citizen of his image on the Internet does not give to other persons the right to use such image without the consent of the citizen. Such consent, however, may be an indirect one and be apparent from the circumstances – for instance, if it is provided by the conditions of use of the web site on which the citizen has published his image; all the same, the decree of the Plenary Session enables the citizen to withdraw at any moment his consent to the use of the picture. However, the consent is not required, if the citizen is a public figure.

Document  (775.90Kb)


 

Have you spotted a typo?
Highlight it, click Ctrl+Enter and send us a message. Thank you for your help!
To be used only for spelling or punctuation mistakes.