THE CONTRACT OF SALE according to the Civil Code of the Russian Federation O.Evstratova St. Petersburg 2020 BY THE CONTRACT OF SALE, ONE PARTY (THE SELLER) SHALL UNDERTAKE TO CONVEY A THING (COMMODITY) TO THE OWNERSHIP OF THE OTHER PARTY (BUYER), WHILE THE BUYER SHALL UNDERTAKE TO ACCEPT THIS COMMODITY AND PAY A DEFINITE AMOUNT OF MONEY (PRICE) THEREFORE. ARTICLE 454 THE CIVIL CODE 2 Article 420. The Concept of the Contract The contract shall be recognized as the agreement, concluded by two or by several persons onthe institution, modification, or termination of the civil rights and duties. TERMS OF THE SALE AGREEMENT MANDATORY TERMS OF THE SALE CONTRACT The obligatory terms of the purchase and sale agreement are: • Name of the product • The number of goods (or the procedure for determining the number of goods) Article 454 of the Civil Code of the Russian Federation 4 DISPOSITIVE CONDITIONS OF THE SALE CONTRACT • The quality of goods • Completeness of goods • Packaging of goods • The main responsibilities of the seller and the buyer 5 TYPES OF THE CONTRACT OF SALE TYPES OF THE CONTRACT OF SALE The following contracts belong to certain types of sales-purchase agreement • The Contract of Retail Sale (Article 492) • Under the contract of retail sale the seller engaged in the business of retail sales shall undertake to hand over to the buyer goods intended for personal, family, home and any other use unrelated with business activity. The Contract of the Retail sail is a public agreement. • The Supply Contract (Article 506) • Under the contract for delivery the supplier-seller engaged in business shall undertake to transfer to the buyer goods produced or purchased by him within the fixed period or periods of time for use in business or for other purposes unrelated to personal, family, home or any other use. 7 TYPES OF THE CONTRACT OF SALE The following contracts belong to certain types of sales-purchase agreement • The Supply Contract of Goods for State or Municipal Needs (Article 526) • Under the state or municipal contract for the delivery of goods for state or municipal needs the supplier (executor) shall undertake to transfer goods to the state or municipal customer or to another person according to his direction, whereas the state or municipal customer shall undertake to pay for the delivered goods. • The Contract of Sale of Agricultural Produce (Article 535) • Under the contract of sale of agricultural produce the agricultural producer shall undertakes to transfer the farm products he has grown or produced to the purveyor, the person who purchases such products for processing or sale 8 TYPES OF THE CONTRACT OF SALE The following contracts belong to certain types of sales-purchase agreement • The Contract of Energy Supply (Article 539) • Under the contract of power supply the energy supplying organisation shall undertake to transmit power to the user (consumer) through the connected up network, while the user shall undertake to pay for accepted power, and also to observe the conditions of its consumption, provided for by the contract, and to ensure the safety of the operation of its electrical networks and the working order of the devices and equipment use by it and related to the consumption of power • The Contract of Sale of Real Estate (Article 549) • Under the contract of sale of real estate the seller shall undertake to transfer into the buyer’s ownership a land plot, a building or structure, an apartment or other real estate 9 TYPES OF THE CONTRACT OF SALE The following contract belong to certain types of sales-purchase agreement • The Contract of Sale of the Enterprise (Article 559) • Under the contract of sale of the enterprise the seller shall undertake to transfer into the buyer’s ownership the enterprise as a whole as a property complex with the exception of the rights and duties which the seller has no right to hand over to other persons. 10 FEATURES OF SOME TYPES OF CONTRACTS OF SALE THE CONTRACT OF RETAIL SALE Parties of the contract Publicity of the agreement The subject of the contract 12 The seller party of the contract is always a legal entity. The buyer is mostly an individual. The contract can be concluded using a public offer (the advertisements and other proposals addressed to an indefinite circle of persons, shall be regarded as an invitation to make the offers, unless directly pointed out otherwise in the proposal). Only goods intended for personal or family use. THE SUPPLY CONTRACT Parties of the contract The subject of the supply contract Special procedure for concluding the contract 13 Only persons engaged in entrepreneurial activities (legal entities and sole proprietors) are parties to the contract. Only goods intended for business, not for personal or family use. An important condition is an indication in the contract of the delivery time of the goods to the buyer. THE CONTRACT OF SALE OF REAL ESTATE Parties of the contract Real estate (a land plot, a building or structure, an apartment or other real estate) The subject of the contract Special procedure for concluding the contract Both legal entities and individuals can be sellers and buyers under a contract of sale of real estate. As a general rule, the owner of the real estate should act as the seller. The seller can also be a person authorized by the owner under law or contract • The contract for the sale of real estate must be concluded in writing by drawing up a document signed by the parties and is considered concluded from the moment of its signing (except the contract for the sale of residential premises) • The transfer of ownership of real estate from the seller to the buyer is subject to state registration according to Russian law. Therefore, the ownership of real estate arises from the buyer after the signing and state registration of the contract. 14 THANK YOU FOR YOUR CONSIDERATION AND ATTENTION TO THIS MATTER