Procedure for Contracts Execution
Term of Contract Execution. The general rule says it is the day mentioned in the contract, or the period of time mentioned in the contract. If it is impossible to determine the term for performing the obligations the obligation shall be performed in reasonable period of time after the obligations under the contract arise.
The obligation not performed in the reasonable period of time as well as the obligation the term of which is determined by the time its performance is claimed, the debtor shall perform in seven days from the day the creditor submits a written claim about its performance unless a duty to perform it in other term is stipulated by the act of legislation, conditions of the obligation or its essence.
The debtor has the right to perform the obligation prior to the term, unless otherwise is provided by legislation or conditions of the obligation or results from the essence of the obligation. However, pre-term execution of obligation connected with entrepreneurial activity of the parties is admitted only when the possibility to perform the obligation prior to the term is stipulated by legation or obligation conditions or results from the essence of the obligation.
Place of Contract Execution. If the place of contract execution is not determined by legislation or contract the general rule says the obligation shall be executed at the place of location of the party that accepts the performance. Exceptions:
1) under the obligation to give a land slot, building, construction or other real estate – the place of location of the property;
2) under the obligation to give the goods or other property involving its transportation – the place the property is given to the first carrier to deliver it to the creditor;
3) under other obligations of the debtor to give the goods or other property – the place of manufacture or storage of the property if the place is known to the creditor at the moment the obligation arises;
4) under monetary obligation – the place the creditor resides at the moment the obligation arises, if the creditor is a legal person – the place of its location at the moment the obligation arises. If the creditor changes the place of location or residence by the moment the obligation to be executed and has notified the debtor about it – the new place of residence or place of location of the creditor and taking from the creditor the expenses connected with the change of the place of execution.
Procedure for Settlements in the Republic of Belarus is regulated by the Edict of the President of the Republic of Belarus of June 29, 2000 No. 359 “On Approving the Procedure for Settlements Between Legal Persons and (or) Individual Entrepreneurs in the Republic of Belarus”, as well as the rules established by the Bank Code of the Republic of Belarus.
The stamp of the bank on the payment instruction is not an evidence of writing-off the money from the account but only proves that it is accepted by the bank for the payment. The right to issue a payment instruction shall be provided directly in the contract otherwise your partner may refuse to make the payment under the instruction.
Method of Contract Execution. When concluding a contract, the parties shall clearly state how they will perform their obligations.
The obligations under the contract shall be duly performed in accordance with the conditions of the obligation and requirements of legislation, and if there are no such conditions and requirements – in accordance with generally specified requirements.
Unilateral refuse to perform the obligation and unilateral change of its condition shall not be admitted, unless otherwise results from legislation or the contract.
The creditor is entitled not to accept the performance of the obligations by parts, unless otherwise is provided by legislation or conditions of the obligation and results form the essence of the obligation.
Unless otherwise is provided by the agreement of the parties and results from the contract, when the obligation is performed the debtor has the right to demand the evidence that the performance is accepted by the creditor or a person authorized to do so by the creditor and bears the risk of consequences for non-fulfillment of such a demand.
The performance of the obligation may be laid by the debtor on some third person, unless conditions of the obligation or its essence or legislation result in the obligation of the debtor to perform this obligation personally. In this case the creditor shall accept the performance offered by the third person instead of the debtor.
Currency of the Monetary Obligation. Any monetary obligation shall be expressed in Belarusian rubles (article 141 of the Civil Code). The money obligation may stipulate that it is subject to payment in Belarusian rubles in the sum equal to a certain sum in foreign currency or in some special monetary units (ECU, Special Drawing Rights, etc.). In this case the sum to be paid in rubles it is determined in accordance with the official rate of the relevant currency or special monetary units on the day of the payment, unless other exchange rate or other date is determined by legislation or agreement of the parties.
Use of foreign currency as well as payment documents in foreign currency, when conducting settlements on the territory of the Republic of Belarus under the obligation, is admitted in cases, in accordance with the procedure and on conditions determined by legislation.
Technical Legal Stage of Contract Execution. Check of everything fulfilled in accordance with quality and quantity, documentary confirmation of the fact of the fulfillment. Act of Acceptance of the Production (Goods) of the quality and quantity is a ground for submitting a relevant claim to the vendor (supplier).
There is one more way for obligation execution that is a set-off of mutual claims. It is possible, when the following conditions are met:
a) the claims shall be mutual (counterclaims);
b) the claims shall be homogeneous (relevant);
c) the term of obligation performance shall fall due.
The set-off is carried out based on the agreement of the parties that is drawn up in the form of a protocol or other bilateral document or under the requirement of one party that is made in the form of statement or letter.