Publication

Supreme Court vs Supreme Commercial Arbitration Court: a preliminary agreement and earnest money

Supreme Court vs Supreme Commercial Arbitration Court: a preliminary agreement and earnest money

Is it possible to secure the obligations arising from a preliminary agreement by earnest money?

02 February 2016

Who is to pay for extra works?

Who is to pay for extra works?

Disputes over recovery of the cost of works performed under a construction contract are numerous and various. Most often the parties cannot agree on who is to pay for works which are not provided for when entering into the contract, but arise in the course of construction. On whom is the burden of paying for extra costs, the customer or the contractor?

28 January 2016

Penalties: proportionality to consequences

Penalties: proportionality to consequences

Specifying the amount of penalty for a failure to perform or an improper performance of an obligation does not warrant that in the event of a dispute the penalty will be recovered upon a creditor’s claim in the exact amount agreed by the parties when contracting.

21 January 2016

State procurement contract. Risk management

State procurement contract. Risk management

Unstable economic environment makes businessmen that assumed obligations when competition was tough and economic conditions favorable most vulnerable.

Freedom of contract when resolving construction related disputes

Freedom of contract when resolving construction related disputes

Of the fundamental principles of Russian civil law is the freedom of contract under which parties to civil relations may enter into various (including untitled or mixed) contracts at their own discretion by independently determining their terms and conditions. However, the existing court practice is not that liberal when it comes to applying this principle to certain contractual obligations.

20 January 2016

Lower quality means lower price

Lower quality means lower price

When works performed by a contractor are defective, the customer may claim a proportionate reduction of the contract price. Such remedy by the customer causes most questions in courts.

15 January 2016