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“Economic Relations and Obligations” in the LHS Back

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On Wednesday, 07th of August, the Counsel and Senior lawyer of Court law and Dispute Resolution Practice told students of Legal High School about the implementation of obligations in economic relations and disputes related to their implementation.

In their report, Andriy Ilyuk and Oleksandr Bannikov raised the issues of the principles of obligations, subject, methods and types of ensuring their fulfillment. There were also determined the circumstances that relieve from obligations – the circumstances of force majeure.

The lecture was begun on the definitions of basic concepts. Then, speakers went on to the principles. Thus, the principle of actual implementation provides an obligation of fulfillment in kind, but not its replace with cash equivalent. The principle of proper fulfillment is a compliance of obligations with the requirements of the law.

Depending on the number of persons on each side of the obligation, there are the active, passive and mixed plurality of persons. The order, procedure and sequence of commitments of obligation form the way in which they are fulfilled. In this part of the lecture, the Counsel explained in detail the meaning of the concept, since the Civil Code does not contain a general rule that would define it. He also disclosed the types and consequences of breaches of obligations, the procedure for ensuring fulfilment.

Therefore, they found out that the methods of fulfilling the obligations can be attributed to: one-time or in part; with a plurality of persons on the side of the debtor and / or creditor; fulfillment of partial and joint obligations; depositing a debt on a notary’s deposit.

Each block was illustrated by interesting examples of the lawyer’s court practice. Failure to comply with the requirements of the payment agreement is clearly revealed by the High Commercial Court’s decision in the case No. 910/1459/16. An obligation to perform actions for implementation of obligations – Supreme Court’s decision in case No. 905/1926/16. You can follow the procedure for recovering penalties for obligations’ failure to fulfill, late fulfilment or failure to fulfill in full in the decision of the Northern Commercial Court of Appeal dated 11.04.2019. in case No. 910/21564/16.

Finally, the experts spoke about the circumstances of the insurmountable action: “force majeure” and “hardship”. Sometimes the circumstances can be changed so much that the terms of the contract simply cannot be fulfilled. As an example, the Law of Ukraine “On Temporary Measures for the Period of the Anti-Terrorist Operation” dated 02.09.2014 No. 1669-VII ” and the decision of the Northwest Economic Court of Appeal dated 01.07.2019 in case No. 903/470/16, where the court examined the preconditions the occurrence of force majeure, which led to the issuance of a certificate of force majeure.

An example of “hardship” was the decision of an Economic court on termination of the contract in connection with the seizure of bank accounts of the enterprise, searches, seizures, etc., and the activities of NABU in fact of which are blocked all economic transactions of the parties under the contract.