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Civil Law #4

Civil Law #4. Zhanat Alimanov, assistant professor. CONTRACT Rescission * Termination ** Voidance *** art. 401 art. 367 art. 159 Damages Restitution & discharge of obligations . Remark. * расторжение ; ** прекращение; *** признание недействительным.

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Civil Law #4

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  1. Civil Law #4 Zhanat Alimanov, assistant professor

  2. CONTRACT Rescission* Termination** Voidance*** art. 401 art. 367 art. 159 Damages Restitution & discharge of obligations Remark *расторжение; **прекращение; *** признание недействительным

  3. Section 1 (General Provisions), Labor Code Section 2 (Employment Relationships), Labor Code Find out what are the differences between Civil & Labor Codes (with references to articles). Home assignment

  4. Terms • To rescind – расторгнуть • Rescission – расторжение • Material Breach – существенное нарушение • Unilateral Refusal – односторонний отказ

  5. Step 1 (Formation of Contract)

  6. Step 2 (How to avoid contract obligations?)

  7. PLAN • Excuses from Liabilities • Breach vs. Material Breach (Rescission)

  8. VI. Excuses from Liabilities

  9. Andrei agreed to build a two storied (двухэтажный) pub for Boris for 10 mln. Theymade contract. When Andrei was digging foundation of the pub. He found underground waters which would 40 times increase cost of the construction, up to 400 mln. Andrei says that it is impossible to implement the contract. Example 1

  10. Is Andrei excused (освобождается) from his obligations? Example 1

  11. Is Andrei excused (освобождается) from his obligations? NO. Art. 359 (2) & 374 Example 1

  12. Impossibility Impossibility: must be real, not commercial EXCUSE from Liability Art. 359 (2) & 374

  13. Let’s assume that Andrei invested heavily in foundation as well as tried to divert the waters, but failed to provide sufficiently solid foundation. Given such foundation, Andrei managed to build only one storied (одноэтажный) pub. Besides, he was one month late. Boris sues for damages including lost profit. Example 2

  14. Was Andrei in breach of contract? What are consequences of the breach? Does Andrei have to pay damages? Example 2

  15. Was Andrei in breach of contract? Art. 349 What are consequences of the breach? Art. 350 Does Andrei have to pay damages? NO. Art. 359. Example 2

  16. NOT GUILTY Not Guilty: he did everything that he could to perform properly EXCUSE from Liablity (articles 359, 404)

  17. VII. Breach vs. Material Breach

  18. Let’s assume that Boris considers this as material breach of contract. He would like to rescind the contract. What are the differences between Material breach (Rescission); Breach? What are the differences between consequences of: Material breach (Rescission); Breach? Example 3

  19. BREACH Material Ordinary Rescission No Rescission NO OBLIGATIONS OBLIGATIONS Consequences (art. 401, 403, 354)

  20. Let’s assume that Boris considers this as material breach of contract. He would like to rescind the contract. What are the differences between consequences of: Material breach (Rescission); Boris does NOT have to pay money under the contract & right to damages Breach? Boris has to pay money, he has the right only to damages. Example 3

  21. Step 1 (Formation of Contract)

  22. Step 2 (How to avoid contract obligations?)

  23. Step 3 (Consequences for Non-Compliance) *расторжение => прекращение обязательств

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