CIVIL CODE OF TURKMENISTAN
SAPURMURAT TURKMENBASHI
Book 1
GENERAL PROVISIONS
Chapter 1
Main provisions
Section 1
Civil legislation
Article 1 Basics of commencement of the civil legislation
1. Civil legislation bases itself on the recognition of the
equality of the participants of relations, regulated by it, on
the inviolability of property, on the freedom of contract, on
the inadmissability of the interruption into the private
business, on the necessity of free exercise of the civil
rights, on the restoration of the violated rights and their
protection.
2. Natural and legal persons are free in establishment of
their rights and obligations on the basis of contract and are
free in determination of any contract conditions if they do not
contradict the law.
Civil rights may be restricted only on the basis of law in
order to protect the morals, health, rights and legal
interests of other persons, safety of the society and state
and environment.
3. Goods, services and finances shall have a free circulation
all over the territory of Turkmenistan.
Restrictions on the circulation of goods, services and
finances may be launched in accordance with the legislation.
Article 2 Relations, which are regulated by the civil
legislation.
1. Civil legislation determines the legal status of the
participants of the civil relations, the basics of formation
and the order of the exercise of the property right; it
regulates contract and other types of obligations and also
other property private non-property relations connected with
them.
Family, living, labour relations, the relations on the usage
of natural resources and on the protection of environment,
which correspond to the characteristics mentioned in absatz
1 of the present part, are regulated by the civil
legislation if otherwise is not prescribed by the special
legislation.
2. Relations that are connected with the exercise and
protection of the non-alienated rights and freedoms of man and
with other non-material wealth, are regulated by the civil
legislation, since otherwise does not follow out from the
nature of these relations.
3. Any natural and legal persons may be the subjects of the
civil relations. This rule applies to the citizens of
Turkmenistan, to the foreign citizens and to the persons
without citizenship, who may or may not be involved into the
entrepreneurial activity.
4. The entrepreneurship is an individual activity performed
on its own risk and directed onto the systematic receive of
profit out of the usage of property, intellectual property,
sale of goods or services to the people and out of the work
performance.
5. Civil legal relations between the state bodies and
institutions and natural and legal persons are regulated by the
civil legislation if these relations are not regulated by other
legislation.
Article 3 Acts of the civil legislation
1. Civil legislation consists of the present Code and other
laws and legislative acts, which regulate the relations
mentioned in the Article 2 of the present Code.
2. Legislative acts adopted upon the corresponding laws, are
applied for the regulation of the civic relations only in cases
when they do not contradict the law.
Article 4 Validity of the civil legislation through the time
Acts of the civil legislation do not have the reverse force and
are applied to the relations, which arise after their launch.
The force of the law comprises the relations appeared before
the law was launched only when its directly stipulated by the
law.
Article 5 Customs of the business relations
1. The custom of the business relation is considered as set
and widely used rule of behaviour in some field of the
entrepreneurial activity, which (the behaviour - RG) is not
foreseen by the legislation, regardless whether it is fix in
some type of a document.
2. The customs of the business relation are not applied, if
they contradict the obligatory provisions of the legislation
for the participants of this business relation.
Article 6 Application of the civil legislation on analogy
1. In cases, when the relations foreseen by parts 1,2 of the
Article 2 of the present Code are not directly regulated by the
legislation or by the agreement of the parties and there is no
applicable custom of business relation, then they shall be
regulated by the similar norm of the civic legislation (analogy
of the law), if it does not contradict their nature.
2. If it not possible to use the analogy of the law, then the
rights and obligations of the parties are determined on the
basis of common sense of the civic legislation (analogy of the
law).
3. The court shall not have the right to refuse in trial
procedure on the civil cases, when there is no norm of law or
it not clear.
4. The application of the analogy norms, which restrict civil
rights and establish obligation, is not allowed.
Article 7 Civil legislation and international agreements
If the international agreement of Turkmenistan established
other rules rather than those, which are foreseen by the civic
legislation, then the rules of the international agreement
shall apply.
Section 2
Appearance of the civic rights and obligations, exercising and
protection of the civic rights
Article 8 Grounds of appearance of the civil rights and
obligations
Civic rights and obligations arise out of the grounds foreseen
by the legislation, and also out of the actions of the natural
and legal persons, which are not foreseen by the legislation,
but due to the basics and the sense of the civil legislation
they do create civic rights and obligations.
In accordance with this, civic rights and obligations arise:
(1) out of the contracts and other types of transactions
foreseen by the law, as well as out of the contracts and other
types of transactions , which are not foreseen by the law but
do not contradict to it;
(2) out of the acts of the state bodies and bodies of local
governance, which are foreseen by the law as the ground for
appearance of the civic rights and obligations;
(3) out of the court decision that has established civil
rights and obligations;
(4) as the result of formation and acquisition of the property
on the grounds, which are not restricted by the law;
(5) as the result of creation of the pieces of science,
literature, art, inventions and other results of the
intellectual activity;
(6) as the result of damage to another person;
(7) as the result of an unjustified enrichment;
(8) as the result of other actions of the natural and legal
persons;
(9) as the result of events, which are connected to the
occurrence of the civil and legal consequences in the context
of legislation.
Article 9 Exercising of the civil rights
1. Natural and legal persons at their own decision shall
exercise civil rights, which belong to them.
2. Refusal of natural and legal persons from exercising their
rights does not lead to the termination of these rights, except
for the cases foreseen by the law.
3. The subjects of the civil legal relations shall
conscientiously exercise their rights and obligations, and
shall not cause damage to other persons by their actions (non-
actions).
4. In case of not following the requirements foreseen by the
part 3 of the present Article , the court may refuse the person
in protection of his right.
5. In case, when the law puts the protection of civil rights
into dependence on the fact whether these rights were exercised
conscientiously and reasonably, the conscience and
reasonableness of the participants of the civil legal relations
is to be supposed.
Article 10 Legal protection of the civil rights
1. Protection of the violated or disputable civil rights
shall be performed by the court, wirtschafts court, arbitrage
(hereinafter – court) according to the institutional order of
cases, established by the procedural legislation or by the
contract.
2. The law or the contract may foresee the settlement of a
dispute between the parties before they apply to the court.
3. Protection of the civil rights in the administrative order
shall be performed only in cases foreseen by the law. The
decision taken in the administrative order, may be reconsidered
in the court.
Article 11 Ways of protection of the of the civil rights
Protection of the civil rights is to be performed by means of:
1. Recognition of the right
2. Restoration of the situation existed before the right was
violated, and by means of stopping the actions, which are
violating the right or which are creating a threat of its
violation
3. Recognition of the transaction as invalid one and by means
of application of the consequences of its invalidity
4. Recognition of the invalidity of the state body act or of
the act of the local governance body
5. Sentencing to performance of the obligation in kind
6. Self protection of the civil rights
7. Repatriation (reimbursement) of damages
8. Vertragsstrafe
9. Compensation of the moral damage
10. Termination or modification of the legal relation
11. Non-appliance of the state body act or of the act of the
local governance body (which are contradicting the law) by the
court
12. By other means, foreseen by the law
Article 12 Recognition of the invalidity of the act, which is
not corresponding the legislation
Act of the state body or of the body of the local governance
that is violating the civil rights and the protected interests
of the natural or legal person, is considered invalid since the
moment of its adoption.
In case where the court recognizes such an act as invalid one,
then the violated right is the subject for restoration or
protection by other means, foreseen by the Article 11 of the
present Code.
Article 13 Self protection of the civil rights
Self protection of the civil rights is to be admissible (is
allowed).
Ways of the self protection shall be in fit with the violation
and shall not overcome the boundaries (frames) of the actions,
necessary for the stoppage in case if the assistance of the
competent organs does not come in time.
Article 14 Reimbursement of the damages
1. The person, whose right is violated, may require the full
reimbursement of his damages. Refusal from the right to require
the reimbursement of the damages, which is based on the
preliminary agreement, is not allowed.
2. Damages mean the expenses, which the person, whose right
is violated, has made and would have to make in order to
restore the violated right; it means the loss or the damage of
his property (real/actual damage), and also the non-received
profits, which this person would receive upon the conditions of
a usual civil relation, if his right wouldn’t be violated
(missed/lost profit).
If the person, who has violated the right, has received
profit resulted out of this action, then the person, whose
right is violated, shall have the right to require
reimbursement (along with other damages) of the missed/lost
profit amounted not less than such a profit would be.
Article 15 Protection of the personal non-property rights and
other non-material wealth
Personal non-property rights and other non-material wealth are
protected in cases and in order foreseen by the present Code
and by other laws, as well as in those cases and within those
boundaries, where the usage of the ways of protection of the
civil rights falls out of the nature of the violated right and
out of the character of the consequences of this violation.
Article 16 Protection of honor, dignity and entrepreneurial
reputation
1. Physical or legal entity shall have right to require on
court proceeding to disprove information discrediting his
honor, dignity or entrepreneurial reputation, if person,
spreading the information, does not prove that information
corresponding reality.
2. On the requirement of interested persons, it shall be
allowed protection of honor and dignity of physical person
after his death.
3. If the information, discrediting honor, dignity or
entrepreneurial reputation of physical or legal entity shall be
spread in mass media, they must be disproved in the same mass
media.
4. If pointed information is in documents issued by
organization, such document shall be change or revoke.
5. Disprove order in other cases shall be established by
court.
6. Physical or legal entity, with respect to which in mass
media were published information, damaging their rights or
interests protected by law, shall have right to publish his
answer in the same mass media.
7. If court decision is not fulfilled, court shall have right
to impose a penalty on infringer, fined in rates and order
stipulated by procedural legislation, to State. The payment of
penalty shall not free the infringer from fulfillment of
actions stipulated by court.
8. Physical or legal entity, with respect to which it shall
be spread information discrediting his honor, dignity or
entrepreneurial reputation, shall have right, with disproving
the information, to require the compensation of costs and
compensation of moral damage, because of their spread.
9. If it is impossible to fix person spreading discrediting
honor, dignity or entrepreneurial reputation of physical or
legal entity, the person, with respect to which such
information was spread, shall apply for court with application
on recognition of spread information not due to reality.
Article 17 Protection of rights on proper portrayal
No one shall have right to publish and spread published
portrayal of any person without approval of this person. Such
approval shall not be required in cases when publishing and
spreading of portrayal is connected with requirements of court,
organs of investigating, when taking a picture or obtaining of
portrayal is produced in public circumstances, as well as in
other cases stipulated by law.
Approval of person for publishing and spreading of his
portrayal shall be supposed, if portrayed person posed for fee.
Article 18 Right for protection of private life secret
1. Natural person shall have right for private life: secret
of correspondence, notes, records, private life, birth,
adoption, medical or legal secrets, secret of contribution and
e.t.a.
Recovering of private life secret shall be possible only in
cases, stipulated by law.
2. Publishing of notes, records and notes shall be permitted
only author approval, and of letters – with approval of author
and addressee. In case of death of anyone of them, mentioned
documents can be published with approval of living spouse and
children of dead person, and in further – with approval of
generation in the line of descent.
Chapter 2
Entities
Section 1
Physical Entities
Article 19 Definition of the physical entity
Upon the physical entities one understands the citizens of
Turkmenistan, citizens of other countries and the persons
without citizenship.
Article 20 Legal ability of the physical entity
1. The ability to have the civil rights and obligations
(civil legal ability) is recognized equally for all the
physical entities.
2. The legal ability of the physical entity appears upon the
moment of his birth and is terminated upon his death.
3. The right to be a heir appears upon the moment of
conception; the execution of such a right depends on birth.
Article 21 The name of the physical entity
1. The physical entity acquires and executes the rights and
obligations under its name which shall include last name and
first name and also upon the will of the person, the patronymic
if otherwise is not derived from the legislation or national
custom.
In certain cases and in order foreseen by the legislation,
the physical entity may use the pseudonym (an assumed name).
2. The physical entity shall have the right to change his
name in order imposed by the legislation. The changing of the
name by the physical entity shall not be the ground for the
termination or changing of his rights and obligations acquired
by his previous name.
The natural person have to submit the new name to its
creditors.
If the person don´t submit the new name, the person is
obliged to compensate damages, caused by this.
The person can claim, that documents with the old name are
changed on its own costs.
3. As well as the name as also each alteration of the name is
to register in the competent register.
4. Under the name of a different person it is illegitimate to
acquire rights and duties.
Article 22 Place of Residence
1. The place of residence of a natural person is the place of
habitual residence. There may be several places of residence.
2. Minors take the place of residence of their parents
having rights of guardianship.
3. The place of residence is not lost by the person
leaving it compulsorily or in fulfilment of a public duty for a
limited time.
Article 23 Active capacity of natural person
1. Capacity of natural person to acquire and execute civil
rights on his power and actions, and to establish civil
liabilities and to execute them (civil active capacity) shall
arise in complete volume with attaining the majority that is
attaining 18 years old.
2. In the case, when law shall commit consummation of
marriage until the attaining 18 years old, the natural person,
not attaining 18 years old, shall acquire active capacity in
complete volume with consumption of marriage.
Active capacity acquired as a result of consummation of
marriage shall remain in complete volume in the case of
discharging a marriage until attaining 18 years old.
When recognizing the marriage invalid, court can accept
decision on loss of complete active capacity by under age
spouse at the moment defined by court.
3. Under age natural persons at the age until seven years
(juvenile) shall be incapable.
Article 24 Intolerableness of deprivation or limitation of
capacity and active capacity
1. Natural person shall not be deprived of capacity.
2. No one shall be limited in capacity and active capacity
other than in cases or order established by law.
3. Non-observance of conditions and order of limitation of
natural persons active capacity or their rights to busy with
entrepreneurial or other activity shall involve the invalidity
of deed issued by state or other body establishing due
limitation.
4. Full or partial rejection of natural person from capacity
of active capacity and other deals purposeful onto limitation
of capacity or active capacity shall be worthless.
Article 25 Limited active capacity of under age natural persons
1. Under age natural persons at the age from seven until
eighteen years shall have limited active capacity.
2. For validity of deal that made by natural person with
limited active capacity shall be approval of legal
representative of the person, excluding the cases, when person
with limited active capacity shall acquire favor on deal.
Article 26 Recognition of incapable natural person
1. Natural person, who in consequence of mental disease
(mental illness, imbecility), can not realize meaning of his
actions or conduct them, can be recognized by court incapable.
Tutelage for him shall be established.
2. On the behalf of natural person recognized incapable,
tutor shall make the deals.
3. If the reasons by force of what, the natural person was
recognized incapable, shall be fall away, the court shall
recognize him capable. The established tutelage shall be
disaffirmed on the base of court decision.
Article 27 The limitation of active capacity of natural persons
1. Natural person, who in consequence of abuse of alcohol
drinks and drugs shall put a family in difficult economic
conditions, can be limited by court in active capacity.
Guardianship shall be established over him. Such person shall
be empowered to make deals on property disposal, to receive
salary and dispose salary, pension or any types of profit only
with guardian approval, excluding everyday deals.
2. If the reasons by force of what, the natural person was
limited in active capacity, shall be fall away, the court shall
disaffirm the limitation of active capacity. The established
guardianship shall be disaffirmed on the base of court
decision.
Article 28 Entrepreneurial activity of natural person
1. Natural person shall have a right to busy with
entrepreneurial activity without legal entity foundation.
2. The entrepreneurial activity of natural persons realizing
without legal entity foundation shall apply regulations of the
present Code, which are regulating entrepreneurial activity of
legal entities.
Article 29 Property amenability of natural person
Natural person shall be amenable for his obligations by all
owned property, excluding property on which can not be applying
prosecution in accordance with law.
List of natural persons property on which can not be applying
prosecution shall be established by civil procedural
legislation.
Article 30 Insolvency (Bankruptcy) of individual entrepreneur
1. Individual entrepreneur, who is not in position to meet
creditor requirements connected with realization of
entrepreneurial activity by him, can be recognized insolvent
(bankrupt) on the court decision.
2. When realization procedure for recognition bankruptcy of
individual entrepreneur, his creditors for requirements, that
not connected with entrepreneurial activity realization, shall
have rights to lay claims. Requirements of appointed creditors
that not applied in this order shall be valid after completion
of bankruptcy procedure of individual entrepreneur.
3. In the case of recognition the individual entrepreneur the
insolvent(bankrupt), the meeting of individual entrepreneur
creditors requirements shall be realized at the expense of
property owned by him, and on which can be applying of
prosecution, in followings:
first place- meeting requirements of natural persons, before
which entrepreneur shall incur liability for damage for life
and health, by way of capitalization of due periodical
payments and requirements to alimony prosecution;
second place- accomplishing sacks on retirement benefits and
payment to persons working in accordance with labor
contract, but neither more than three month before;
third place – meeting requirements of creditors, provided by
pledge of property owned by individual entrepreneur;
fourth place- clearing off debts on obligatory payments to
the budget and extra-budget funds;
fifth place – accomplishing payments with other creditors in
accordance with law.
The requirements of creditors of each place shall be met
after the meeting requirements of previous place creditors.
4. After the payments completion, the individual
entrepreneur, recognized the bankruptcy, shall be set free from
fulfillment of rest requirements connected with his
entrepreneurial activity and other requirements laid to the
fulfillment and taken into account when recognizing the
individual entrepreneur the bankruptcy.
The requirements of natural persons, when individual
entrepreneur shall incur liability for damage for life and
health, shall be valid as well as other personal
requirements.
5. The reasons and order the court recognition of individual
entrepreneur insolvent (bankrupt) shall be established by law
on insolvent (bankrupt).
6. In accordance with court decision the natural person,
recognized the bankrupt, can be permitted to busy with
entrepreneurial activity during definite duration that can not
be more than maximal duration established by law on insolvent
(bankrupt).
Article 31 Guardianship and tutorship
1. Guardianship and tutorship shall be established for
protection of rights and interests of incapable natural persons
or natural persons with limited active capacity.
2. Guardians and tutors shall appear for defense of rights
and interests of wards in relations with any persons and
organizations, including courts without special competency.
3. Guardianship and tutorship shall be established over under
age natural persons in the absence of parents, adopters, and
depriving of paternal rights by court, as well as in cases when
such natural persons on other reasons shall remain without
paternal care, and, in particularly, when parents shall avoid
their breeding or protection of rights and interests.
Article 32 Guardianship
1. Guardianship shall be established under incapable natural
persons.
2. Guardians shall be representatives of wards by virtue of
law and shall make all necessary deals on their behalf and in
their profits.
Article 33 Tutorship
1. Tutorship shall be established under natural persons with
limited active capacity.
2. Tutors shall approve perpetration of deals which wards
have not rights to perpetrate independently.
Tutors shall assist to wards in realization of their rights
and fulfillment of obligations, as well as shall protect
them from abuse of third persons sides.
Article 34 Organs of Guardianship and Tutorship
1. Organs of Guardianship and Tutorship shall be local
government organs, and where there are not- chaykhims of etraps
or towns.
2. Court shall be obliged, within three days from the
entering into the force decision on recognition the natural
person incapable or on limitation of active capacity, to inform
organs of Guardianship and Tutorship locating at the permanent
address of the natural person for establishing under him the
guardianship and tutorship.
Article 35 Guardians and Tutors
1. Only of age capable natural persons can be appointed the
Guardians and Tutors. Natural persons deprived of paternal
rights can not be appointed the guardians and tutors.
2. Guardian or Tutor can be appointed only with his approval.
At this shall be taken into consideration his moral and other
personal features, ability to execute obligations of tutors or
guardians, relations existing among him and person being
required in guardianship and tutorship, and if possible –
willing of ward.
3. Guardian and Tutor shall be appointed by the organs of
guardianship and tutorship at the permanent address of person
being required in guardianship or tutorship, during one month,
when mentioned organs was informed on necessity to establish
guardianship or tutorship under natural person. In the presence
of reasonable circumstances the guardian and the tutor can be
appointed by the organs of guardianship and tutorship at the
permanent address of guardian (tutor). If during one month
shall not be appointed guardian or tutor to the person being
required in guardianship and tutorship, the fulfillment of
tutor or guardian obligations shall be placed temporarily on
the organs of guardianship and tutorship.
The appointment of Guardian or Tutor can be appeal in court
by interested persons.
4. Guardians or Tutors of natural persons being required in
guardianship and tutorship and being, or being placed in due
breeding, medical institutions, or institution of social care
of population, or the same type institutions, shall be these
institutions.
Article 36 Performance of Responsibilities by guardians and
tutors
1. Responsibilities on guardianship and tutorship shall be
performed gratuitously. Guardians and Tutors shall have rights
to require compensation of expenses connected with the
performance of responsibilities on guardianship and tutorship.
2. Guardians and Tutors of under age natural persons shall be
obliged to live jointly with wards. Separate living of tutor
and wards attaining 16 years old shall be allowed with the
approval of organs of guardianship and tutorship, under the
condition that it shall not reflect unfavorably on breeding and
protection of rights and interests of ward.
Guardians and Tutors shall be obliged to inform organs of
guardianship and tutorship about changing permanent address.
3. Guardians and Tutors shall be obliged to care about
supporting of wards, providing them by nursing and treatment,
and to protect their rights and interests.
Guardians and Tutors of under age natural persons shall be
obliged to care about their education and breeding.
4. Responsibilities, stated in the point 3 of the present
article, shall not be placed on tutors of age natural persons
limited by court in active capacity.
5. If the reasons by force of what, the natural person was
recognized incapable or limited in active capacity in
consequence of abuse of alcohol drinks or drugs, shall be fall
away, guardian or tutor shall appeal for court about
recognition of ward capable and about disaffirming guardianship
and tutorship.
Article 37 Disposal of property belonging to ward
1. Profits of ward natural person, including profits, that
due to ward from managing of his property, excluding profits,
that ward shall have right dispose independently, shall be
dispose exclusively by guardian or tutor in ward interests and
with previous approval of organs of guardianship and tutorship.
Without previous approval of organs of guardianship and
tutorship the guardian or tutor shall have right to make
costs that necessary for supporting the ward at the expenses
of amounts due to ward as his profit.
2. Guardian shall not have right, without previous approval
of organs of guardianship and tutorship, to make, and tutor –to
approve deals on alienation, including exchange or donation of
property belonging to ward, its lease (rent), gratuitous usage
or pledge, deals involving rejection of rights belonging to
ward, property division or share apportionment, as well as any
deals involving declining of property belonging to ward.
Order to dispose the property belonging to wards shall be
established by law.
3. Guardian, tutor, their spouses, nearest relatives shall
not have rights to make contracts with ward, excluding property
assignment as a donation or in gratuitous usage, as well as
perform the ward when making the deals or court proceeding
among ward and spouse of guardian or tutor and their nearest
relatives.
Article 38 Trust management of ward property
1. Perforce of permanent management of unmovable and dear
movable property of ward, the organs of guardianship and
tutorship shall make trust management deal with manager
determined by this organ. In this case guardian or tutor shall
preserve their competency concerning the ward property, that is
not transferred to the trust management.
When realization by manager his competency on property
management, the action of regulations, stated in points 2
and 3 of Article 37 of the present Code, shall be applied on
the manager.
2. Trust management of ward property shall be terminated in
accordance with reasons stipulated by law for termination trust
management of ward property deal, as well as in cases of
termination the guardianship and tutorship.
Article 39 Release of tutor and guardian from their
responsibilities
1. Organ of guardianship and tutorship shall release guardian
or tutor from fulfillment of responsibilities in cases of
return the minor to his parents or his adoption.
When placing the ward in due breeding, medical institutions,
or institution of social care of population, or the same
type institutions, organ of guardianship and tutorship shall
release previously appointed guardians or tutors from their
requirements, if it is not in conflict to ward interests.
2. In the presence of reasonable conditions (illness, change
of property conditions, misunderstanding with ward and e.t.a.)
guardian or tutor can be released from fulfillment
responsibilities on his request, if it is not in conflict to
ward interest.
3. In cases of undue fulfillment of responsibilities, which
are on guardian or tutor, including usage of guardianship or
tutorship in mercenary purposes or abandonment of ward without
care or assistance, organ of guardianship and tutorship shall
release guardian or tutor from fulfillment of responsibilities
and accept necessary measures to make answer of guilty person
in accordance with law.
Article 40 Termination of guardianship and tutorship
1. 1.Guardianship and tutorship on of age natural persons
shall be terminated in cases of issuing by court decision on
recognition of ward capable or dissafirmance of limitation of
legal capacity in accordance with application of guardian,
tutor or organ of guardianship and tutorship.
2. 2.When the attaining 7 years old by juvenile ward the
guardianship on him shall be terminated, and person performing
guardian responsibility shall become tutor of under age natural
person without additional decisions for it.
3. Tutorship on under age natural person shall be terminated
without special decision when the attaining 18 years old by
under age ward, as well as his consummation of marriage (point
2 Article 23) and in other cases of acquiring full legal
capacity by him until attaining of age.
Article 41 Patronage on legal capacity natural persons
1. On the request of age legal capacity natural person, which
in accordance with health conditions can not realize and
protect his rights and fulfill obligations, can be established
tutorship in form of patronage.
2. Patron (assistant) of age legal capacity natural person
can be appointed by organs of guardianship and tutorship only
with approval of this person.
3. Disposal of property, belonging to of age legal capacity
natural person, shall be realized by patron (assistant) on the
base of deal on trust management or commission. The realization
of everyday or other deals, directed on support and meeting
everyday requirements of ward, shall be done by patron with
ward approval.
4. Patronage on of age legal capacity natural person,
established in accordance with point 1 of the present Article,
shall be terminated on the request of natural person, which is
under patronage.
Patron (assistant) of natural person, which is under
patronage, shall be released from fulfillment of placed on
him obligations in cases, stipulated by Article 39 of the
present Code.
Article 42 Recognition of natural person missing without trace
Natural person can be recognized missing without trace upon the
application of interested persons, if his location is unknown
and during 1 year there are no traces at his permanent address
about his location.
Owing to the impossibility to fix day of receiving last
information about missing natural person, the start of
calculation for recognition natural person missing without
trace shall be first date of month, following the month where
have been received last information about missing person, but
owing to the impossibility to fix this month- January 1 of
following year.
Article 43 Aftermath of recognition of natural person missing
without trace
1. Property of natural person recognized missing without
trace, on necessity of constant management, shall be
transferred on the base of court decision to person, determined
by organ of guardianship and tutorship and shall act on the
base of trust management deal concluded with the organ.
From this property shall be issued support to persons, which
person missing without trace is obliged support, and shall
be compensate debts for other obligations of person missing
without trace.
2. Organ of guardianship and tutorship can appoint manager of
property before the year expires from the date of receiving
information about missing person.
3. Aftermath of recognition of person missing without trace,
not stipulated by the present Article, shall be stipulated by
law.
Article 44 The affirmation of decision on recognition the
natural person missing without trace
In the case of attendance or discovery of place of performance
of natural person recognized missed without trace, the court
shall affirm the decision on recognition him missing without
trace. On the base of court decision it shall be affirmed
decision on management of property of the natural person. He
shall not have right to claim compensation of profit obtained
in result of due property conduction, but he shall have right
to claim compensation of damage, appeared in result of not due
property conduction.
Article 45 Announcement of the natural person dead
Court can announce natural person dead, if at his permanent
address there are no information about his place of performance
during five years, and if he shall miss without trace on
circumstances threatening the mortal danger or giving reasons
to suppose his death from definite incident, - during 6 month.
1. Serviceman or any natural person missing without trace in
accordance with military operations can be announced by court
dead at least three years expires from the date of military
actions end.
2. Death date of natural person, announced dead, supposed day
of entering into legal force the court decision on his death
announcement. In cases of announcement of the natural person
dead, missing without trace on circumstances threatening the
mortal danger or giving reasons to suppose his death from
definite incident, court can recognize date of supposed death
as death date of the natural person.
Article 46 Consequences of attendance of natural person
announced dead
1. In the case of attendance or discovery of place of
performance of natural person announced dead, the court shall
affirm the decision on announcement him dead.
2. In spite of his attendance time, natural person can
require from any person to return saved property, which
transferred gratuitously to this person after announced natural
person dead, excluding cases, stipulated by point 2 Article 211
of the present Code.
3. Persons, to whom property of natural person announced
dead transferred on compensated contracts, shall be obliged to
return the property, if it shall be proved that when acquiring
the property, they knew that natural person announced dead was
alive. On impossibility to return such property in kind, it
shall be compensated his cost.
4. If property of natural person announced dead was
transferred to the State and realized by it, so after
affirmation court decision on announcement natural person dead,
during one month to the natural person shall be returned sum
obtained from property realization
Article 47 Registration of Status Acts
1. State registration shall be obliged to the followings
Status Acts:
a) birth;
b) marriage consumption;
c) marriage discharge;
d) adoption;
e) change of name;
f) death of natural person.
2. Registration of Status Acts shall be maintain by organs of
registration of Status Acts by insertion of due records in
books of registration of status acts and issuance of
certificates on the base of these records.
3. Amendments to the records of status acts shall be
maintained by organs of registration of Status Acts on presence
of sufficient reasons and absence of dispute among interested
persons.
On the presence of dispute among interested persons or
refusal of organs of registration of Status Acts to amend
records, the dispute shall be settled by court.
Cancellation and restoration of the records of status acts
shall be maintained by organs of registration on the base of
court decision entering into legal force.
4. Organs, maintaining the records of status acts, order of
registration of these acts, amendments, cancellation and
restoration of registration of Status Acts, forms of act books
and certificates, as well as order and duration of book
keeping, shall be terminated by law.
Section 2
Legal persons
Article 48 Definition of the legal person
1. Legal person is an organization, which in its ownership
has an individualized property and which is responsible for its
obligations by this property; on behalf of its name it may
acquire and exercise property and personal non-property rights,
carry out the responsibilities and to be defendant and
plaintiff in the court.
2. The state takes part in civil legal relations as a legal
person. The competence of the state is performed through its
organs (bodies).
Legal persons, formed by the state, participate in the civil
legal relations on the common basis.
Article 49 Legal capacity of the legal person
1. Legal person, which is not being an entrepreneurial, shall
have the right to perform an activity correspondent to the
purposes and foreseen by the statutory documents.
An entrepreneurial legal person shall have the right to
perform any activity not restricted by the law.
Some types of activities, the list of which is determined by
the law, are allowed to be performed by the legal persons
only on the basis of the special permit (license). The right
to perform such an activity by the legal person appears
since the moment of obtaining the permit (license).
2. Legal capacity of the legal person appears since the
moment of its registration and terminates at the moment of the
registration of its liquidation.
3. Legal person may be restricted in rights only in cases and
in order, foreseen by the law.
Article 50 Entrepreneurial legal persons
Entrepreneurial legal persons are those, whose task is the
entrepreneurial (commercial) activity with purpose of receiving
profit. The entrepreneurial legal persons are formed in
accordance with the Law of Turkmenistan “On Entrepreneurs”.
Article 51 Non - entrepreneurial legal persons
1. Non – entrepreneurial legal persons are those, whose task
is not the entrepreneurial (commercial) activity with purpose
of receiving profit. An entrepreneurial activity, which carries
out an auxiliary character, does not change the matter of the
non- entrepreneurial legal person. Non- entrepreneurial legal
persons are formed by means of unions (associations) and
foundations.
2. Legal person is considered as a union (association) if
several persons have a common purpose, and by this, the
existence of the union does not depend on changes of its
members. In order to form a union (association) it is necessary
to have not less than five (5) members.
3. Legal person is considered a foundation, when one or
several founders transfer special property into the ownership
of an independent subject (which does not members) for the sake
of achieving the common purpose.
Article 52 Public registration of the legal persons
1. Legal person is to be the subject for the public
registration in order, determined by the law. The data of the
state registration (including for the commercial organizations
– its name) are included into the uniform state register of the
legal persons, opened for the public.
The breach of the established order for the formation of the
legal persons or the non-correspondence of its statutory
documents shall lead to the refusal in the state
registration of the legal person. The refusal in
registration motivated as purposelessness of the formation
of the legal person is not allowed.
The refusal in state registration as well as the tendency
for such a registration may be reconsidered in the court.
2. The legal person is considered as formed since the moment
of its public registration.
Article 53 Statutory documents of the legal persons
1. Legal person shall act on the basis of the by-laws
(charter) or on the basis of the statutory agreement. In cases
foreseen by the law, the legal person, which is not being a
commercial organization, may act on the basis of the common
provision on the organization of such type.
Statutory agreement of the legal person shall be concluded,
and its founder (participants) shall certify the by-laws.
Legal person, formed according to the present Code by one
founder, shall act on the basis of the charter, certified by
the founder.
2. The charter other statutory documents of the legal person
shall determine (point out) the name of the legal person, its
location, the order of management of the legal person’s
activity, as well as other info (data), provided by the law on
legal persons of the relevant type. The statutory documents of
the non-commercial organization and of unitary enterprises (and
in cases foreseen by the law – in other commercial
organizations), shall determine the subject matter and the
purpose of the activity of the legal person. Statutory
documents of other types of commercial organizations may
foresee the subject matter and the purposes of their activity.
In the statutory agreement the parties (founders) shall
create (form) a legal entity, determine an order of the
joint activity upon its formation and the conditions of
transfer of their property and participation in its
activity. Agreement shall determine the conditions and the
order of distribution of the profit and loss between the
participants, the management of the legal person. Upon the
consent of the founders, the statutory agreement may include
other conditions as well.
3. The changes of the statutory documents get their force for
the third parties since the moment of the state registration,
and in cases, established by the law – since the moment of
notification of the organ, which performs the state
registration. However, the legal persons and their founders
(participants) shall not have the right to refer to the absence
of the registration of such changes, when related to the third
parties, who acted taking into account these changes.
Article 54 Organs of the legal person
1. Legal person acquires civil rights and carries out civil
responsibilities through its organs, acting according to the
legislation and statutory documents. The order of appointment
of the legal person’s organs is determined by the legislation
and by the statutory documents.
2. The person, who in virtue of the law or in virtue of the
statutory documents of the legal person, acts on behalf of the
legal person, shall act conscientiously and reasonably in the
interests of the represented legal person. It shall, upon the
requirement of the founders (participants, members) of the
legal person, cover the damages, caused by him to the legal
person, since otherwise is not provided by the law or by the
statutory documents.
Article 55 Name and location of the legal person
1. Legal person has its own name, containing the reference on
its legal and organizational form. The names of the non-
commercial organizations, unitary enterprises (and in cases
provided by the law – other commercial organizations) shall
contain the reference on the character of activity of the legal
person. Inclusion of the references into the full or shortened
official name (name of the state) into the name of the legal
person, inclusion of this name or the elements of the state
symbolic into the requisites of documents or into the
advertisement materials of the legal person is allowed in
order, established by the Cabinet of Ministers.
2. The location of the legal person shall be determined by
the place of its state registration, if otherwise is not
established in the statutory documents of the legal person.
3. The name and location of the legal person shall be
mentioned in its statutory documents.
4. Legal person, which is being a commercial organization
shall have its firm name.
Legal person, whose firm name is registered in the
established order, has an exclusive right for its usage.
The order for its registration and for the usage of the firm
manes is determined by the legislation according to the
present Code.
The person, which is illegally using other’s registered firm
name, shall, upon the requirement of the possessor of the
right on the firm name, stop its usage and cover the caused
damages.
Article 56 Representative offices and branches
1. Representative office is a separated subdivision of the
legal person, situated out of its location and which is
performing protection and representation of the interests of
the legal person, and executes transactions on behalf of its
name as well as other types of legal actions.
2. Branch is a separated subdivision of the legal person,
situated out of its location and which is performing all or
part of legal person’s functions, including the functions of
the representative office.
3. Representative offices and branches are not the legal
persons. They are entitled to the property of the legal person,
which has formed them and they act on the basis of the
authorized regulations.
The legal person appoints heads of the branches and of the
representative offices and they act on the basis of the
power of attorney.
Representative offices and branches shall be mentioned in
the charter of the legal person that has formed them.
Subsection 2
General provisions on unions and foundations
Article 57 Registration of unions and foundations
1. Associations acquire legal personality upon registration
in the Register of Associations or Register of Foundations.
Registration shall be permitted on condition that the charter
of the union or foundation is permitted by the Ministry of
Justice. The minister of justice may authorize courts to issue
permits.
2. The right of demand of the permit and registration shall
take place if the charter complies with the law requirements
and unless the objectives of the legal person presented for
registration are in conformance with the effective law,
acknowledged moral norms or constitutional-legal principles of
Turkmenistan. As to foundations, their property must correspond
to the objectives set.
3. In order to receive a permit and registration it shall be
necessary to submit an application to the Ministry of Justice,
signed by all the founders and members of the board, and the
charter.
4. The Ministry of Justice must issue a permit within a two
month period. If no decision is made within this period the
permit shall be considered to have been issued.. The court must
make a decision on registration within a month period after the
date the application was submitted. If no decision is made
within this period the registration shall be considered to have
effected.
5. Refusal to issue a permit or to register must be well-
founded,it must forsee the possibility and order of appealing.
The refusal may be appealed in court.
Article 58 Bye-laws of Unions and foundations
1. The organisation and the structure of the union and
foundation shall be regulated by the charter.
2. The charter must contain:
a) Objective of activity;
b) Name;
c) Place of location (Legal address);
d) First and family names of all members of the board, place
and date of their birth, profession and place of residence, the
schedule of board sessions and making decisions at them.
e) in point ”d” the same data on founders.
3. The charter must also contain:
a) Functions of other management and supervision bodies;
b) Order of liquidation and property disposition;
c) Powers of the assembly of members of the union.
4. For foundations in addition to what is stated in paragraph
two the charter must contain:
a) Amount and type of donations;
b) Instructions as to how to use profits
5. The charter must be notarized.
Article 59 Data of registration
1. Registration shall include the following data: name of a
legal person and its place of location, objective of activity,
date of charter adoption, personal data of founders, personal
data of members of the board and possible restrictions of their
representative powers.
2. Registration data shall be subject to publishing.
3. Any person shall have the right to get familiar with
register entries and demand a written extract.
Article 60 Registration of amendments
The changes of facts which are subject to registration must be
immediately presented to court in the form certified by the
board. They shall be introduced into the register and
published.
Article 61 State control of Unions and Foundations’ activities
1. The Ministry of Justice shall be responsible for the
effectuation of a legal control over unions and foundations.
2. He must abolish registration if a union or a foundation
basically are engaged in commercial activity or if effectuation
of objectives forseen by their charter became impossible.
Article 62 Management and representatives
1. The right of managing belongs to members of board and in
individual cases special representatives. This shall be their
duty at the same time.
2. The management limits shall be specified by the objectives
of a union or a foundation.
3. The charter may stipulate the power of individudal
management or establish joint management of two or more
persons.
4. The charter may forsee as well effectuation of what
actions may require consent of other supervisory bodies.
Article 63 Management powers in relations with third parties
1. The board represents the union or foundation in their
relations with third persons. The charter must establish
whether the persons authorized to representation shall act
individually or jointly.
2. The charter may restrict the powers of representatives.
These restrictions shall be valid for third persons only when
they are registered except for instances when a third person
was aware of these restrictions.
3. The charter may forsee a special representative of a union
or a foundation. The charter must specify the limits of powers
of such a representative and its form, that also shall be
subject to registration.
Article 64 Liability
1. The union and foundation shall bear responsibility for the
damage incurred by them to a third person as a result of such
actions of members of board or other representatives, which
entail obligation to compensate for the damage if these actions
refer to the range of functions of the person who has incurred
this damage.
2. The persons authorized to representation must act in good
faith. They shall bear responsibility for the violation of this
duty for the damage incurred. Refusal in compensation for the
damage made shall be invalid if it is necessary for
satisfaction of claims of third persons.
3. The members of a union or foundation shall not bear
responsibility for the obligations undertaken by the union or
foundation, as well as unions and foundations shall not bear
responsibility for the obligations of their members.
Article 65 Reorganisation and liquidation of unions and
foundations
1. Liquidation of a union or foundation shall take place in
instances stipulated in their charters as a result of
achievement of the objective set, bankruptcy or abolishing the
permit by the Ministry of Justice.
2. When liquidating all current matters must be finalised,
demands established, pecuniary expression of the property left
specified, creditors satisfied and balance distributed among
competent persons.
3. The persons authorized to accept property may be defined
by the charter. In case such definition is missing, the
Ministry of Justice at its discretion shall transfer the
property left to one or several unions or foundations with
similar objections. In the absence of such organizations the
property may be transferred to a charity organization or to the
state.
4. The information concerning liquidation shall be subject to
publishing. The distribution of the property shall be permitted
on the expiry of one year after publishing.
5. Liquidation shall be implemented by the board. Under
special circumstances court may nominate other liquidators.
Liquidators shall bear responsibility as board members.
§ 1
Special provisions on unions
Article 66 The Board
1. The board shall be elected by a general assembly of
members for four years, unless the charter establishes
otherwise. The powers of the board shall extend until a new
board is elected. The charter shall also specify the
remuneration for the board members’ labour.
2. The nomination may be abolished at any moment. The
abolishing of the nomination may be put down to some important
circumstances.
3. If the number of board members does not reach the minimum
specified by the charter, the court responsible for registering
may nominate for the transition period members who are lacking.
In this case board members must summon general assembly, which
must make a final decision.
Article 67 General Assembly
1. The board shall summon the general assembly of members. It
must be summoned with a period of two weeks not less than once
a year in instances stipulated in the charter or when it is
required for the interests of the union. Moreover, the assembly
must be summoned if the tenth part of all the members demands
it in writing and specifies its agenda.
2. The assembly shall be summoned by means of directing a
written message to all members or by publishing this message in
the union publishing organ not later than two weeks before the
assembly.
3. The assembly of members shall adopt decisions on all the
issues which relate to the competence of the board. The
decision shall be valid provided its subject was declared when
summoning the assembly.
4. The decision shall be adopted by the majority of members
present at the assembly, and the decision on the amendment of
the charter - by the majority of three fourth of voices. It
shall be necessary to have to have four fifth of voices of all
members. The members absent from the assembly may take part in
voting in written form.
Article 68 Commissions
The assembly of members may in accordance with the charter set
up commissions to which functions of the assembly may be
transferred for the period between assemblies, especially for
the supervision over the union activity. The members of the
commission may be only members of the union.
Article 69 Special Organs
For the consultancy purposes in the process of implementing
tasks set before the union the assembly may set up special
bodies (consulting council, curatorium, administrative
council), if it is stipulated by the charter. These organs may
include also persons who are not members of the union.
Article 70 Membership
1. Admittance to the union membership shall be effected by
the board on the basis of a written statement of an applicant.
2. Every member shall have the right to leave the union. The
charter may foreseen a specified leaving period, which must not
exceed two years. Leaving the union which has been caused by
significant circumstances cannot be restricted by the leaving
period.
3. Membership shall not pass to other persons or inherited
unless provided for otherwise by the charter.
4. If there are considerable reasons the general assembly may
expel a member from the union. The expelled member shall have
the right to appeal against this decision in court.
5. If the union have neccessary social, cultural or other
functions for the person, which want to be a member of the
union, the person can claim, that it became a member of the
union, if this not contradict general principles of the union.
§ 2
Special provisions on foundations
Article 71 Foundations for destinataires
The objective of the foundation may be also maintenance of
certain persons or precisely specified circles. All the persons
having the right to a share from the foundation property
(destinators) may with the consent of all the board members
abolish the foundation, or alter its objective, if this is
supported by the Ministry of Justice. The property left shall
be distributed among destinators.
Article 72 Obligation to contribute to funds
1. The founder (founders) by the documents on establishment
of the foundation, certified notarially, must take an
obligation to contribute to the foundation the amount of
property sufficient for the achievement of the objective set.
If the property is insufficient, the founder shall be refused
the permit to set up a foundation.
2. Before the permit is issued the refusal to transfer
property shall be possible at any time. The property must be
transferred in full within a month’s period after the issue of
the permit, otherwise the permit becomes void.
3. Unless provided otherwise in the charter, the objectives
of the foundation must be financed from the revenues received
from the property. If these revenues are not sufficient for a
certain period of time, the activity of the foundation must be
either respectively reduced or suspended and revenues must be
added to the property.
4. An annual report on the status of the foundation property
must be prepared according to the respective form.
Article 73 Supervisory Board
1. With an aim of nominating the board and special
representatives, recall and supervision over them, the charter
may stipulate the formation of curatorium, whose members shall
be invited by the founders of the foundation, and after their
death - either by destinators or by the Ministry of Justice, or
within the charter limits it may be supplemented with new
members (co-optation).
2. In all other instances the Ministry of Justice shall
verify so that the management of the foundation be effected in
accordance with laws and the charter. The Ministry of Justice
may at any time receive the information on the activity of the
foundation and check its documentation.
3. The supervision body may suspend the decision or events
undertaken by the board, declare them void, and demand their
abrogation, if they are contrary to the law or charter.
4. The supervision body shall provide conformance of the
board and other bodies to the charter. If the charter regulates
these relations insufficiently, this body may give additional
instructions.
Article 74 Change of purpose of fund
Apart from Article 210 the following rules shall apply to
foundations without destinators: if the achievement of the
objective set is impossible or there is another ground for the
foundation to be abolished, the Ministry of Justice may, unless
the charter states this, demand that the objective be changed
instead of liquidation or effectuate the merger with other
foundations so that to preserve similarity with the initial
objective. Even if a single founder is alive, his consent is
required.
Chapter 3
Contracts and representations
Section 1
General provisions
Article 75 Definition and types of contracts
1. The transaction is an expression of will which is directed
at the arising, changing or terminating a legal relation.
2. Contracts may be concluded unilaterally, bilaterally or
between several parties. A unilateral contract can only create
duties for other persons within those cases foreseen by law or
by reason of agreement with the parties concerned.
Article 76 Expression of will
1. The expression of will requiring to be accepted by the
other party shall be valid only at the moment when it reaches
it.
2. The expression of will shall not be considered valid, if
the other party preliminarily or at once announces its refusal.
3. The death of a person who concluded a transaction or his
lack of dispositive legal capacity may not affect the validity
of the expression of will, if this event ensued after the
conclusion of the transaction or expression of will.
Article 77 Interpretation of expression of will
When interpreting a will it must be established as a result of
a reasonable discussion and not only by a literal sense.
Article 78 Nullity of contract without purpose
The transaction shall not take place, if by external expression
or by other circumstances the precise content of the
transaction cannot be established.
Article 79 Invalidity of contract which contradicts civil order
and public morals
The transaction which is contrary to social interests, norms of
morals and rules set up by law.
Article 80 Invalidity of contract through duress
The transaction may be considered void, if there is an obvious
disparity between the execution specified by the transaction
and the reward stipulated for this execution and the
transaction was concluded only due to the fact that one of the
parties had abused its market power or had taken advantage of a
difficult position of the other party or of its inexperience.
Article 81 Invalidity of fictitious contracts
1. The transaction concluded only for the sake of appearances
(feigned transaction) shall be void.
2. If by means of a feigned transaction parties are willing
to conceal another one, the rules applicable to feigned
transactions shall apply.
Article 82 Invalidity of contract without serious purpose
1. The expression of will made not being in earnest and
reckoning that it would not be disclosed.
2. The receiver of the will must be compensated for the
damage which arose as a consequence of his trust to the
earnestness of the will expressed, unless he knew or could know
about lack of earnestness.
Article 83 Invalidity of contract due to legal incapacity or
mental illness
1. The declaration of intent of a minor or a person whose
legal incapacity has been declared by Court Order is invalid.
2. The will expressed in case of lost consciousness or mental
desease may be deemed void.
3. The display of will by a mentally deseased shall be void
and in the instance if he has not been deemed to lack
dispositive legal capacity.
Article 84 Invalidity of contract concluded without prescribed
form
1. 1.The transaction which has been concluded in violation of
the form established by by law or charter, as well as the
transaction concluded without a permit if it is required for
this transaction.
2. The contested transaction shall be also void from the
moment of its conclusion if it is contested. Contesting must be
effected with regard to the other party.
3. Any interested person shall have the right to contesting.
Article 85 Conversion of contracts *(from invalid to valid)
In event a voidable transaction meets the requirements
stipulated for another transaction, the latter shall apply, if
on knowing about the voidable transaction, parties want it to
be valid.
Article 86 Validation of invalid contract
1. If a person who has concluded an undoubtedly void
tranaction confirms it, his actions shall be considered to be a
conclusion of a transaction anew.
2. If a transaction is confirmed by a person entitled to
contest it, by this he shall lose the right to contesting.
3. In event an undoubtedly voidable transaction is confirmed
by both parties then in case of doubts they shall be obliged to
transfer to each other whatever was due to them if the
transaction had been valid from the first.
4. The confirmation shall become valid only when a contract
or a transaction are not contrary to the morals and public
order.
Article 87 Partial Invalidity
1. The invalidity of a part of a transaction shall not entail
invalidity of its other parts, if it is possible to assume that
the transaction could have been concluded without the part
which is void.
2. If one of the parts of a transaction deals with standard
terms of contracts and they are void or became parts of minor
importance, the contract as a whole shall remain valid.
Section 2
Civil dispositive legal capacity as condition for transaction
to be valid
Article 88 Validity of contract made by under age natural
person
1. If under age natural person shall make contract without
necessary approval of valid representative for it, the validity
of contract shall depend on further approval of representative,
excluding cases, when under age natural person shall receive
profit.
2. If under age natural person shall become legal capable
completely, he shall decide issue on his command inpendenly.
Article 89 Refusal to validate contract minor’s contract
1. Before the contract is approved the other party shall have
the right to refuse from the contract.
2. If the other party knew about the minority of the person,
then it may refuse only in the event if the minor assumed that
he could have got the consent of his representative; it cannot
refuse also in the event if during the conclusion of the
contract the party was aware of the absence of the consent of
the representative.
Article 90 Facilitation/Emancipation of minor to conclude
contracts
1. The contract concluded by a minor without consent of his
legal representative, shall be considered valid, if in order to
execute action stipulated by the contract the minor has
disposed of the funds transferred to him by his legal
representative or with the consent of this representative by
third persons for same purposes or for free disposition.
2. If a legal representative gives a minor the right to
independent management of the enterprise or to independent
entry into industrial relations, then in traditional for these
spheres relations this minor shall be treated as person having
full dispositive legal capacity. These rules shall apply both
when founding an enterprise as well as when liquidating an
enterprise, at the beginning and at the end of industrial
relations.
3. The permission to manage an enterprise shall require the
permit of a legal representative of trusteeship and
guardianship bodies.
Article 91 Invalidity of contract without consent of legal
guardian
1. A unilateral transaction concluded by by a minor without
an obligatory consent of the legal representative shall be
void.
2. Such a transaction shall be void also when the consent of
the legal representative is available but the minor has not
submitted a written document confirming this consent owing to
which the party with which the transaction was concluded,
immediately repudiated it. Such repudiation shall be impossible
if the other party was informed about this consent of a legal
representative.
Article 92 Necessity of prior consent to validate contract
A permit shall be required for the transaction concluded before
the restriction of dispositive legal capacity, if it is
established that the ground due to which the dispositive legal
capacity was restricted obviously existed also during the
conclusion of the transaction.
Section 3
Form of transaction
Article 93 Form for validity of contract
For the sake of validity of the transaction it shall be
necessary to observe its form established by law. If such a
form is not established, parties may establish it by
themselves.
Article 94 Form of contract
1. On the simple written form for validity of contract will
be enough the signatures of persons that participating in the
contract.
2. The reviving of signature, repeatness of signature and its
copy with means of mechanical equipment shall be available only
in cases, when this is adapted, as well in signing securities,
that issued in large quantity.
3. If form of contract shall require its notarization, then
when making contract shall be notaree or other person,
stipulated by law.
Article 95 Signature by proxy
A person who is unable to sign a transaction with his own hand
due to his illiteracy, physical defects or illness may assign
signing a transaction to another person. The signature of the
latter must be certified officially. For all that there must be
an indication of the reason owing to which the person who
concluded a transaction was unable to sign it with his own
hand.
Article 96 Conclusion of contract with preparation of several
documents
Upon conclusion of a contract the parties are obliged to sign
one and the same document. If when concluding a transaction
there have been compiled several acts with similar content, it
shall be sufficient for each party to sign the copy which is
assigned for the respective party.
Section 4
Contested transactions
Subsection 1
Transactions concluded under the influence of delusion
Article 97 Definition
The transaction may be contested if the expression of will took
place on the basis of essential delusion.
Article 98 Substantial error
An essential delusion may be:
a) When the person wanted to conclude a transaction different
from the one with regard to which he expressed his consent;
b) When the person is mistaken in the content of the
transaction which he wanted to conclude;
c) When there are no circumstances which parties proceeding
from good faith principles considered as ground for the
transaction to be concluded.
Article 99 Error as to party
1. Delusion in relation to the personality of a counteragent
shall be considered essential only when the person himself or
personal properties are a principal ground for the conclusion
of the transaction.
2. The delusion in relation to principal properties of the
subject shall be considered essential only when it matters for
the determination of the cost of this subject.
Article 100 Error in law
Delusion in law (right) shall be essential only if it was sole
and principal ground for the conclusion of the transaction.
Article 101 Error in Motive
Delusion in relation to the motive of the transaction shall not
be considered essential except for instances when a motive by
itself was a subject of the transaction.
Article 102 Consent to contract
The expression of will under the influence of delusion cannot
be contested if the other party agrees to execute the
transaction in accordance with the wish of the party willing to
contest the transaction.
Article 103 Minor mistakes
Minor errors in computation or in expression of will, made in
writing shall entitle to corrections but not to contest.
Article 104 Liability to damages for contract induced by
mistake
1. The contest shall be valid only if it was effected within
a month’s period after the moment when the ground for the
contest became known.
2. If the transaction has been contested and delusion has
been caused by negligence of the person who has the right to
contest. he shall be obliged to compensate the other party for
the damage incurred as consequence of invalidity of the
transaction. The duty to compensate shall not arise if the
other party was aware of delusion or owing to its negligence
did not know about it.
Article 105 Error due to fault of mediator
The expression of will wrongfully communicated by the agent may
be contested on grounds, similar to those which have been used
for the tarnsactions concluded under the influence of delusion
in accordance with article 98.
Subsection 2
Transactions concluded under fraud
Article 106 recognition of invalidity of contract concluded by
fraud
1. If a person has been deceived with an aim of concluding a
transaction, it shall have the right to demand that the
transaction be void. It happens when it is obvious that if
there had not been fraud the transaction would not have been
executed.
2. If one of the parties fails to mention the circumstances
under which if revealed the other party would not express its
will, the deceived party may demand that the transaction be
void. The duty to make it known shall take place only when the
other party expects it in good faith.
Article 107 Irrelevancy of motive behind fraud
In order to deem the transaction executed by means of fraud to
be void it does not matter, whether the party when
communicating wrong data was pursuing an objective to receive
profit or to incur the other party damage.
Article 108 Fraud by third party
When fraud took place on the part of third persons it shall be
possible to demand that the transaction be void if the person
who benefited by this transaction knew or must have known about
the fraud.
Article 109 Period for challenge
A transaction may be contested within a year period. The
computation of the period shall ensue from the moment when the
person entitled to contest came to know about the grounds for
contesting.
Subsection 3
Transactions executed under the influence of violence
Article 110 Definition of duress
Violence or threat of violence in relation to a person who has
executed a transaction shall entitle him to demand that the
transaction be void even when the violence derived from third
persons.
Article 111 Nature of duress
1. The invalidity of a transaction may be caused by such
violence which by its nature may influence the person and
inspire him with an idea that danger threatens him personally
or his property.
2. When estimating the character of violence the person’s
age, sex and way of life should be taken into consideration.
Article 112 Duress towards Relatives
Violence shall be a ground for demanding that the transaction
be void even when it was directed against the spouse, other
members of his family or close relatives of one of the parties.
Article 113 Legal limits to duress
With reference to the rules stated in articles 110-112 such
actions which are not effected with illegal purposes and with
illegal means, except for instances when the purpose and means
do not match.
Article 114 Period of challenge
The transaction executed under the influence of violence may be
contested within a year from the moment this violence occurred.
Section 5
Transactions, executed under condition
Article 115 Definition
The transaction shall be considered to be executed under
condition when it is dependent on the future and unknown
phenomenon and its execution shall be postponed till it comes
or the transaction shall terminate as soon as it comes.
Article 116 Invalid condition
The condition shall be void unless it conforms with the
requirements of law or norms of morals or its execution is
impossible. The transaction dependent on any of such conditions
shall be completely void.
Article 117 Condition dependent on will
A condition, the occurrence of which depends solely upon the
intention of one party to the contract is deemed dependant on
volition/will. A contract concluded under such a condition is
invalid.
The condition whose coming depends on the parties in the
transaction shall be considered dependent on will. The
transaction executed under such condition shall be void.
Article 118 Positive conditions
1. If a transaction has been executed under a condition that
a certain phenomenon will come within a certain period of time,
the condition shall be considered to be no longer in force, if
this time expired and the phenomenon did not come.
2. If the time limit has not been defined, the condition may
be effected at any time. the condition may be deemed to be no
longer in force, when it becomes clear that it will never come.
Article 119 Negative conditions
1. If a transaction has been executed under condition that a
certain phenomenon will not come at a certain time, the
condition shall be considered to have been executed even when
before the expiration of the time limit it becomes clear that
the phenomenon will never come.
2. If the time limit has not been defined, the condition
shall be considered to have been executed only when it becomes
clear that the phenomenon will never come.
Article 120 Inadmissibility of influence on occurrence of
condition
1. The person who has executed a transaction under a certain
condition shall not have the right before the condition comes
to effectuate an action which may prevent from performing his
obligations.
2. If a condition comes at a certain period of time and the
person has already effected such an action, he shall be obliged
to compensate the other party for the damage that arose as a
result of this action.
Article 121 Condition postponing contract
The transaction shall be considered to have been executed under
a postponing condition, if the origin of rights and duties
stipulated by the transaction depends on the future and unknown
phenomenon, or a phenomenon, that has already come but the
parties are still unaware of that.
Article 122 Condition cancelling contract
The transaction shall be considered to have been executed under
a canceling condition, if the coming of this condition entails
termination of the transaction and restores the status that
existed before the execution of the transaction.
Article 123 Influence of good faith on condition
1. If the coming of the condition was delayed due to the
party’s bad faith which is not interested in the coming of this
condition, the condition shall be considered to have come.
2. If the coming of the condition was promoted by the party’s
bad faith which was interested in the coming of the condition,
this condition shall not be considered to have come.
Section 6
Agreement in transactions
Article 124 Definition
1. If the validity of the transaction depends on the
agreement of a third person, then it shall be possible that
agreement as well as refusal be expressed to both of the
parties.
2. There is no need in observing in agreement an established
for a transaction form.
3. If a transaction whose validity depends on the agreement
of a third party has been executed with the consent of a third
party then sentences two and three of article 230 respectively
shall apply.
Article 125 Prior consent
The consent (permission) given beforehand may be abolished
before the execution of the transaction, unless the parties
agreed upon otherwise. Both parties must be informed about
abolition.
Article 126 Subsequent consequent
The subsequent consent (approval) may have a retroactive force
to the moment of the execution of the transaction, unless
provided for otherwise.
Article 127 Dispositions by unauthorised persons
1. The disposition of the credit by a person not authotized
to do so shall be valid if it was effected with the consent of
the plenipotentiary person.
2. A disposition becomes valid when the authorised person
approves it, or when the disposing party acquires the object,
or when he is succeeded by the authorised person and the latter
assumes unlimited liability for obligations pertaining to the
estate. In the last two cases, where several inconsistent
dispositions over the object have been made, only the earliest
disposition is valid.
Section 7
Representation in transactions
Article 128 Definition
1. The transaction may be also executed by a representative.
Authority for representation either follows from a law or
arises on the basis of the power of attorney.
2. The rule indicated in paragraph one shall not apply if
proceeding from the character of the transaction it must have
been executed directly by the person himself, or when the law
prohibits conclusion of a transaction by a representative.
Article 129 Effect of contract of representation
1. With regard to the transaction executed by a
representative within the limits of his competence and in the
name of the person whom he represents, the rights and duties
shall arise only with the person represented.
2. If a transaction has been executed in the name of another
person, the lack of the right to representation cannot be used
by the other party, if the represented person has created such
circumstances under which the other party assumed in good faith
the availability of this authority.
3. If when executing a transaction the representative does
not points at his authority as representative, the transaction
shall create consequences directly for the person represented
only in case the other party must have assumed this
representation. Same rule shall apply when the other party does
not care who it will conclude a transaction with.
Article 130 Representation with limited powers
The transaction executed by a representative shall be valid
even when the representative is restricted in his dispositive
legal capacity.
Article 131 Lack of expression of will
1. When contesting a transaction due to the shortage of will
expressed, the will of the representative shall be d ecisive.
2. If the shortage of will concerns such circumstances which
have not been specified beforehand by the represented person,
this shortage shall give the right to contesting only when this
shortage derives from the represented person.
Article 132 Power of representation/attorney
1. Authority shall be issued by the expression of will in
relation to the representative or the third person with whom
the contract will be conclude.
2. The form required for the transaction for which
authorization was issued shall not be required for the
expression of will. This rule shall not apply if a special form
has been established.
Article 133 Obligation to inform about alteration in power
Third persons must be informed of the change or abolition of
the power of attorney. If this requirement is not observed the
change and abolition of authority cannot be used in relation to
third persons, except for instances when the parties knew or
must have known about them at the moment of concluding a
contract.
Article 134 Grounds for terminating power of representation
The authority for representation shall terminate:
a) by the repudiation of the person authorized;
b) by the abolition of the authority by the person who has
issued it;
c) by death of a person who has issued the authority, or by
lack of full civil dispositive capacity, unless established
otherwise;
d) by the performance;
e) by publication in the official press of Turkmenistan
declaring the authorities issued to the person invalid;
f) by the expiry of the period for which the authorities have
been granted.
Article 135 Obligation of representative upon termination of
powers
After the termination of authorities the representative must
return the document certifying his authorities to the person
who issued it; he shall have no right to keep this document.
Article 136 Conclusion of contract without power of
representation
1. If a person without authorities of a representative in the
name of another person concludes a contract, the validity of a
contract shall depend on the consent of the person whom he
represents.
2. If the other party requires the consent of the person whom
he represents, this consent must be communicated only to this
party. The consent may be given within a two week period after
the demand; if this did not happen, the demand shall be
considered to be rejected.
Article 137 Right to refuse
Before giving consent for the conclusion of the contract the
other party shall have the right to repudiate the contract,
except for instances when this party has found out of the lack
of authorities at the conclusion of the contract.The
repudiation of the contract may be made in relation to the
representative as well.
Article 138 Liability of representative without powers
1. The person who concludes a contract in the capacity of a
representative if he cannot confirm his authorities of a
representative shall be obliged at the discretion of the other
party either perform the obligation or compensate for the harm
if the person who is represented refuses to give his consent to
conclude a contract.
2. If the representative was not aware of the lack of
authorities of a representative, he shall be obliged to
compensate only for the damage incurred to the other party due
to his trust in the authorities of a representative.
3. If the other party knew or should have known about the
lack of authorities of the representative, the responsibility
shall not be laid upon the representative.
The representative shall not bear responsibility even when
his civil dispositive legal capacity was restricted, except
for the instances when he acted with the consent of his
legal representative.
Article 139 Prohibition against self-dealing
The representative cannot, unless provided for otherwise by the
agreement, conclude contracts with himself in the name of the
person whom he represents, in his name or in the capacity of a
third person, except for the instances when the transaction has
already been concluded for the performance of some obligation.
Chapter 4
Periods
Section 1
Calculation of periods
Article 140 Sphere of application of the rules for calculation
of the periods
The rules foreseen by the present chapter shall apply to the
periods mentioned in the laws, in the court decisions and in
transactions.
Article 141 Commencement of the period
1. If the commencement of the period is determined by some
event or by the moment of time, which will occur during the
day, then the day, on which the event or the moment occur,
shall not be included into the period.
2. If the commencement of the period is determined by the
commencement of some day, then the day shall be included in to
the period. This rule shall apply also to the birthday when
calculating an age.
Article 142 Termination of the period
1. The period that is calculated by days, shall expire with
the termination of the last day of the period.
2. The period that is calculated by weeks, months or by the
time comprising several months (year, half a year, quarter)
shall expire (in case provided in the part 1 of the Article 141
of the present Code) by termination of that day of the last
week or of the last month, which, due to its name or its number
corresponds the day, which is the being the event or the moment
of time, and in case provided in the part 2 of the Article 141
of the present Code, it shall expire by termination of that day
of the last week or the last month, which goes before the day
that, due to its name or its number corresponds the first day
of the period.
3. If the period is calculated by months and in the last
month there is no that date, since which the period commences,
then the period shall terminate at the last day of this month.
Article 143 Half a year, quarter, half a month
1. Half a year is a period of six months; quarter is a period
of three months; half a month is period of fifteen days.
2. If a period consists of one or several full months and
half a month, then these fifteen days shall be counted at the
end of the period.
Article 144 Prolongation of a period
In case of delay, a new period shall be calculated since the
moment of the expiration of the precedent period.
Article 145 Calculation of a monthly and annually periods
1. If a period is calculated in months or in years in such a
way that there is no need for its persistent current, then a
month is considered as thirty days, and a year as three hundred
and sixty five days.
2. Beginning of the month is the first date of the month;
middle of the month is the fifteenth of the month; end of the
month is the last date of the month.
Article 146 Dayoffs (weekends) and holidays
If the expression of the will or the execution of an obligation
must be done in a certain day or during some period, but this
day or the day of this period are either being the dayoffs
(weekends) or being the day, which is declared as a state
holiday or a day-off (or as any other non-working day), then
the following working day shall be considered as a day of the
termination of the period.
Section 2
Period limitations
Article 147 Definition of the period limitation
1. The right to demand other person to perform some action or
to abstain from this performance is restricted by the period
limitation.
2. Period limitation does not apply on:
a) personal non-property rights, if otherwise is not foreseen
by the law;
b) requests for the reimbursement of the damage to the life
or health of the person. However, the requests for the
reimbursement of the damage, brought upon the expiration of
three years since the moment of appearance of the right to
reimburse such a damage, shall be satisfied not more than for
three years, precedent to the brought action;
c) requests of the clients of the banks and other credit
institutions, concerning their savings brought in there.
3. The total period limitation shall be ten years.
Article 148. Period limitation for the contract requirements
1. Period limitation for the contract requirements shall be
three years; period limitation for the contract requirements
related to the immovable property shall be six years.
2. Period limitation for the requirements arising out of the
periodical performance of the obligations shall be three years.
3. In a certain cases the law may foresee other period
limitations.
Article 149 Start of period
The course of the period of limitations shall start from the
moment the demand arises. If a demand relates to the necessity
of restraining from some action, the course of the period of
limitations shall start with the moment of the breach of this
demand.
Article 150 Start by action of the creditor
If the arising of a demand depends on actions of the creditor,
the course of the period of limitations shall start with the
time when the creditor could effect the action thereof.
Article 151 Suspension of the period limitation on agreement
1. The course of the period of limitations shall suspend for
the period of delay in the performance of the obligation
(moratorium).
2. The procedure stated in paragraph one shall not apply in
relation to the counter-demand the right to produce which
belongs to the creditor.
Article 152 Suspension of the period limitation on the factual
circumstances
1. Period limitation suspends for the time, during which an
authorized person didn’t have a possibility to protect his
right by means of court due to the suspension of the activity
of the justice organs, which took place during last six months
of the period limitation.
2. The same rule shall apply if the force majeure (Act of
God) turned out to be an obstacle.
3. Since the day of the termination of the circumstance that
was the ground for suspension of the period limitation, its
current shall continue. The rest of the period shall be
prolonged up to six months; if the period limitation is less
than three months, then it shall be prolonged up to the period
limitation itself.
Article 153 Suspension of the period limitation due to the
family circumstances
Period limitation upon the claims of the spouses to each other
shall be suspended for the time until they are married. This
rule also applies to the mutual claims of the parents and
children for the period of the minority of the children, as
well as it applies to the mutual claims of the guardian and
those under his wardship for the whole period of the existence
of the guardian.
Article 154 Application of the suspension
Period of time, during which the suspension of the period
limitation occurs, shall not be calculated into the period
limitation.
Article 155 Suspension of the period limitation in relation to
the persons, who are limited in legal capacity
1. If the legally incapable person or the person who is
limited in legal capacity does not have a legal representative,
then the period limitation in relation to this person shall
terminate only after six months since the occurrence of the
moment, when this person will be recognized as capable or when
a legal representative will be appointed to it. If the period
limitation is less than six months, then the established period
limitation shall be applied instead of six-month period.
2. The rules, which are mentioned in the part 1 of the
present Article shall not be applied if the person, who is
limited in capacity, does possess a civil-procedural capacity.
Article 156. Interruption in the period limitation by
recognition of the debt
Period limitation is interrupted, if the debtor recognizes the
requirements of an authorized person by paying part of the debt
or the percents or by other way.
Article 157 Interruption in the period limitation by bringing
an action into the court
Period limitation is interrupted, if an authorized person
brings an action on satisfaction or recognition of the
requirement, or by other way he will try to meet his
requirement by means of application into the state body or into
the court for issuing of the decision for recognition of the
decision of other court. Accordingly, the Article s 157 and 158
of the present Code shall apply.
Article 158 Continuation and termination of the interruption in
the period limitation upon the bringing of an action
1. Bringing an action shall terminate interruption in the
period limitation since the moment when the decision enters
into a legal force or as a result of the settled relations
between the parties by other way.
2. If the process is interrupted due to the agreement of the
parties or because the case is not being ran, then the
interruption of the period limitation shall terminate since the
moment of the last procedural action of the parties or of the
court. New period limitation that has commenced after the
interruption, shall be interrupted the same way as upon the
bringing of an action, when one of the parties restarts the
process (case).
Article 159 Interruption in the period limitation upon the
refusal from the action
1. Interruption in the period limitation shall not take
place, if the action will be recalled back or it will be
refused in rendering of the case by the decision of the court,
entered into the legal force.
2. If an authorized person during six months will bring an
action again, then the period limitation shall be considered as
interrupted by the first action. In relation to this period the
rules of the Articles 153-155 of the present Code shall be
applied.
Article 160 Consequences of the interruption in the period
limitation
If the period limitation is interrupted, then the time, which
has expired before the interruption, shall not be calculated;
the new period limitation shall start only upon the termination
of the interruption.
Article 161 Period limitation on the claim, which has a legal
force
1. The claim, authorized by the (entered into the legal
force) decision of the court, is expired in ten years, even if
for such type of the claims there is a shorter period
limitation.
2. If an authorized claim provides in the future the
performance of the periodically continuous actions, then the
shorter period limitation shall be applied.
Article 162 Period limitation upon the succession
If the thing, in relation to which there is a property claim,
will go into the possession of the third party in the order of
succession, then the part of the period limitation (that is
expired when the predecessor owned the thing) shall be
calculated for the benefit of the successor.
Article 163 Consequences of the expiration of the period
limitation
1. Upon the expiration of the period limitation, the assigned
person shall have the right to refuse from performance.
2. Performance and satisfaction of the claim with expired
period limitation may not be recalled back, even if at the
moment of performance the assigned person was not aware of the
expiration of the period limitation. The same rule shall be
applied to the recognition of the contract obligations and to
the creating of securities.
Article 164 Period limitation upon the additional obligations
Shall the period limitation on the substantive claim be
expired, then the period limitation on the additional
obligations shall be expired as well, even if the special
period limitation for them didn’t expire.
Article 165 Invalidity of the agreement on the change of the
period limitations
Period limitations and the order of their calculation may not
be changed by the agreement of the parties.
Book 2
Law of Property
Chapter 1
Property
Article 166 Definition
In accordance with the present Code property shall be any
material and immaterial thing and intangible benefit, which may
be used and disposed of by physical and legal persons, and
which may be acquired without restrictions, unless prohibited
by law and contrary to moral norms.
Article 167 Things
Property may be movable and immovable.
Article 168 Immovable Property
Immovable property includes a land plot, minerals in it, plants
growing on it, as well as buildings and constructions which are
attached to it.
Article 169 Constituent Parts
1. A constituent of property the separation of which is
impossible without destruction of this property or this
constituent or without destroying its essential constituent
(purpose) may be an object of an individual law only in
instances stipulated by law.
2. The main essential constituents of a land plot include
buildings, constructions, and things that are inseparably
connected with the land plot, not for temporary purposes which
may be specified by a contract.
Article 170 Accessory/Component Part
1. Accessory shall be a movable thing which is not a
constituent of a thing, but it is assigned to maintain the main
thing, connected with by common economic purpose due to which
it is in a spatial link with the main thing and traditionally
is considered to be an accessory.
2. A thing connected with a land plot and its separation from
land is possible without losing cost of goods or essential
losses, also shall be deemed an accessory.
Article 171 Specific and Generic Goods
1. Specific goods are things, which are different to other
things on characteristic items. Specific goods cannot be
replaced by other things.
2. Generic goods are things, which are assignable by items
all things of this kind have and which are defined by type or
amount. Generic things can be replaced by other things.
Article 172 Fruits
1. The fruit of a thing shall be income, capital gain and
advantage which this thing brings.
2. The fruit of the right shall be income and advantages
received as a result of exercise of this right.
3. The fruit of a thing and right shall be incomes and
advantages which this thing or right provide by means of legal
relations.
4. Competence to a thing or right shall enable the receipt of
fruits from this thing or this right according to the period
and extent of this competence.
5. If a person is obliged to return fruits, it may demand
compensation of the expenses born in connection with these
fruits, if these expenses are consequence of correct economic
activity and does not exceed the cost of fruits.
Article 173 Accessory and Limited Rights
1. An accessory right is one which is linked to another right
in such a way that it cannot exist without the latter right.
2. A limited right is one which is derived from a more
comprehensive right which is burdened with the limited right.
Article 174 Protection of intellectual rights
In those areas provided by the law a special right
(intellectual property) of a natural or legal person will be
recognised upon receipt of the results of intellectual activity
and will apply equally to the form of individualisation
(company name, trade mark, service mark).
The use of such rights by third parties can only take place
with consent of the entitled person.
Article 175 Intangible Assets
1. Intangible assets are claims and rights which are
assignable or capable and determined to confer a material
advantage on the owner or which entitle the owner to make
claims against a third party.
2. Life, health, dignity of a person, its intangibility,
honour and reputation, business reputation, private life,
private and family secrets, choice of place of residence, right
to name, copyrights and other private intangible rights and
property which a person owns since birth or acquires by reason
of Law, can only be transferred in those cases provided by the
Law and in the way particularly provided hereunder. Intangible
rights of deceased persons can be exercised by other persons
including the heirs in those cases provided by Law.
Chapter 2
Possession
Article 176 Defintion
1. Ownership arises by means of a volitional achievement of
the actual command of the property.
2. The person who though exercises the actual command of the
property but in favour of another person and the powers of an
owner have been received from the person thereof shall not be
considered to be an owner; the person who has presented powers
shall be deemed to be an owner.
3. If the person owns the thing as an usufructuar, mortgage
holder, lessee, employer, keeper, or on the basis of any other
similar legal relation (direct ownership), in virtue of which
it is entitled or has to (in relation to other person)
temporary own the thing, then the latter person is also being
an owner (indirect ownership).
4. If several persons possess parts of property, they shall
be considered to be owners of individual parts.
5. If several persons possess one thing jointly, they shall
be considered to be co-owners.
Article 177 Termination of possession
1. Ownership shall be considered terminated, if the owner
concedes his property for ever or in some other way loses his
command of it.
2. A temporary obstacle to the execution of the power over
the thing doesn’t terminate the ownership.
Article 178. Succession
Ownership shall be succeeded by inheritance.
Article 179. Presumption of the ownership
1. In relation to the possessor of the movable thing it shall
be considered that he is an owner of the thing. This rule does
not work in relation to the previous possessor of the thing if
he lost this thing or the thing was stolen, or by any other
means it gone away from his possession, except for those cases,
when we speak about money and securities.
2. In relation to the previous possessor it shall be
considered that he used to be a possessor of the thing during
the time when he possessed it.
Article 180 Possession in good faith
The holder who possesses his property lawfully or who as a
result of a thorough auditing due may be deemed to be a
competent person, shall be a holder in good faith.
Article 181 Claim of Return of Holder in Good Faith
If a holder in good faith is deprived of the property, he may
demand from a new holder that his property be returned. This
rule shall not apply when a new owner has a best ownership
right. The demand of return may apply also in relation to the
person with a best ownership right if he has acquired this
property by violence or fraud.
Article 182 Claim of Desistment of Holder in Good Faith
If a holder in good faith has not been deprived of property,
but in some way or the other he is prevented from exercising
ownership, he as well as an owner may demand that the obstacles
be eliminated. Moreover, he may demand compensation for harm
caused by the infringement of property. This rule on
compensation for harm shall apply also when the demand of
elimination of obstacles is impossible.
Article 183 Defensive Rights of Lawful Holder
1. A lawful holder cannot be presented a demand on return of
the property. Within the lawful ownership fruits of property
and rights shall be considered his property.
2. This rule concerns also relations between a direct and
indirect owners.
Article 184 Duty of Holder in Good Faith to Deliver 1
1. A holder in good faith who has no ownership right to
property or he has lost this right, shall be obliged to return
this property to a competent person. Until a competent person
exercises this right, fruits of property and rights shall
belong to the owner.
2. A holder in good faith may demand from a competent person
compensation for the improvements and expenses made for the
period of ownership in good faith, as well as the costs that
have not been repaid by using this property and fruits
received. The cost of fruits not received through his fault
must be deducted.. Same rule concerns the improvements which
entailed rise in price of the property, if this rise in price
did not exist at the moment of return of the property.
3. A holder in good faith may refuse from returning property
untill his demands are satisfied.
Article 185 Duty of Holder in Bad Faith to Deliver 2
A holder in bad faith must return to the competent person both
property and profit, fruits from property or rights. The holder
shall be obliged to compensate for the fruits which he has not
received through his own fault. He may demand compensation for
costs and improvements made only when by the moment of return
they entail enrichment of the competent person. Other demands
in relation to a holder in bad faith shall remain without
changes.
Article 186 Acquisition by Possession
1. If a person within five years running possesses property
like his own, he shall acquire an ownership right to it
(adverse possession).
2. The acquisition of the ownership right shall not be
permitted if the acquirer possessed property in bad faith or
afterwards found out that the property did not belong to him.
Article 187 Presumption by Possession
If the person possessed the thing in the beginning and at the
end of some period of time, then it shall be considered that
the person possessed the thing as an owner during the whole
mentioned period.
Article 188 Acquisition by Possession on registered goods
If a person is put in the public register in the capacity of a
land owner or an owner of some other immovable property in such
a way that he did not acquire the ownership right to it, he
shall acquire the ownership right, if registration has existed
for fifteen years and he has been possessing it for all these
years as an owner.
Article 189 Termination by reasonable claims
Possession of the thing shall be terminated if the owner brings
a reasonable claims to the possessor.
Article 190 Best Right on Acquisition
The holder who on legal grounds possessed and used property for
more than ten years shall have a best right to the acquisition
of the property hereof.
Chapter 3
Property
Section 1
Contents of property
Article 191 Ambit of Property Right
1. An owner may within the limits established by law or
other, and in particular, by contract freely possess and use
property (a thing), not permit possession of this property by
other persons, disposition of it, unless neighbours’rights or
other third persons’rights are infringed or this act is an
abuse of the right.
2. An abuse of the right shall be also such use of property
which causes harm, and herewith the privilege of the owner’s
interests is not specified strictly and the necessity for his
actions is not justified.
3. The right to use shall include also the possibility for
the person not to use his property. The law may establish a
duty to use and maintain property unless non-application and
lack of maintenance infringe public interests. In this case the
duty to perform these duties may be laid down on the owner or
he may transfer this property into someone else’s use for a
respective reward.
Article 192 Extension to Constituent Parts
The ownership right to property shall extend also to the
constituents of the property hereof.
Article 193 Claim of Transfer, Elimination and Desistment
1. The owner may demand that the holder return the property,
except for instances when the holder had the right of
possession of this property.
2. If the property right is breached by other way, except for
expropriation of the thing, then the owner may demand to take
away the breach. If the abuse continues again, the owner may
demand to stop this action by bringing an action to the court.
Article 194 Co-Ownership
1. Common property shall arise by virtue of a law or a
transaction. Each of the owners may make demands in relation to
third persons concerning common property. Each of the owners
shall have the right to demand and to obtain property only in
favour of all co-owners.
2. A thing in common property may be pledged or in some other
legal way encumbered in favour of and in the interest of one of
co-owners.
3. Unless the law or a contract establish otherwise, the
common property maintenance costs shall be laid on co-owners in
equal shares.
4. Each owner shall have the right of pre-emption of a share
in common property.
Section 2
Law on Occupiers of Adjoining Property
Article 195 Duty to Exercise Consideration
Owners of neighbouring land plots or other immovable property
except for rights and duties stipulated by law must have mutual
respect for each other. Any plot or other immovable property
which may give rise to bilateral influence.
Article 196 Access of Imponderable Substances
1. The owner of the land plot or other immovable property
cannot prohibit the influence of gas, steam, smell, smoke,
noise, heat, viabration or similar influence from the
neighbouring land plot on his own, unless they prevent the
owner from using his plot or insignificantly breach his right.
2. Same rule shall be in effect in instances when the
influence is essential, but it was caused by a regular use of
the other plot and it cannot be stopped by such measures which
for this kind of users shall be deemed to be a regular economic
activity. If the owner is obliged to put up with such an
influence, he may demand from the land owner who exerts
influence relevant compensation in a pecuniary form, when the
influence exceeds regular use and economically admissible
limits acknowledged for the given location.
Article 197 Dangerous Constructions
The owner may demand prohibition of the construction and
operation of such constructions in relation to which it is
obvious primordial that they infringe his land. If the
construction has been erected according to the border distance
established by law, its removal may be demanded only in
instances if the intolerable infringement is already available.
Article 198 Immanent Collapse of Buildings
If a neighbouring building threatens to come down on the land
plot, the owner may demand necessary measures to be taken for
preventing this threat. It shall not be permissible to change
directions of underground and sewage waters crossing several
land plots or to manupulate them so that it will entail
reduction of the amount of water or deterioration of its
quality on other land plots. It shall not be permissible to
change natural flow of rivers.
Article 199 Falling Fruit
Fruits that fell down from the tree or from the bush to the
neighbouring land territory are to be considered as the fruits
from this land territory.
Article 200 Roots and branches from the neighbouring land
territory
Owner of the land territory may cut and leave at his the roots
of the tree or of the bush, which ran into his territory from
the neighbouring territory. The same rule shall apply on the
dangled branches of the trees and bushes from the neighbouring
land territory.
Article 201 Violation of the land territory borders during the
building
1. If the owner of a land territory during the building has
built the part of the neighbouring land territory with no
intent or carelessness, then the neighbour must let happen such
a violation of the borders, except for those cases, when he
declared about his objection before or right after such a
violation of the borders.
2. In this case the neighbour shall be paid the money
compensation. The mentioned compensation shall be paid
annually, in advance.
Article 202 Passage through somebody else’s possession
1. If the land territory does not have connection with some
public road, with electric lines, gas and water pipelines, then
the owner may demand from his neighbours that they would let
the usage of their lands for the installation of the necessary
communication. The neighbour, through the territory of whom the
necessary communication will go through, must be paid the money
compensation. Upon the agreement between the parties, this
compensation may be paid in a lump-sum form.
2. The obligation to let the passage through the possession
does not arise, if the previous connection with the land
territory has been destroyed by the arbitrariness actions of
the owner.
Article 203 Erection of the frontier boundary path
1. The owner of the territory may demand from the owner of
the neighbouring territory to take part in erection of the
strong frontier boundary path or to take part in restoration of
the already existed boundary path, which was effaced or
damaged.
2. The expenses for the erection shall be shared equally
between the neighbours, if otherwise does not follow out of
their legal relations.
Article 204 Disputability of the border
1. If, due to the disputability it is not possible to
determine the real border, then the factual possession of the
neighbours shall be used in determination of the boundary path.
If the factual possession cannot be established, then the equal
part of the disputable area shall be added to each of the land
territories.
2. If the determination of the border according to these
provisions will lead to the result, which contradicts the
established facts (e.g., it does not correspond to the
established area of the land territory), then, upon the action
of one of the parties the court shall determine the border.
Article 205 Joint usage of the frontier facilities
1. If two land territories are divided by fence or by other
facility, then it shall be considered that the owners of the
land territories are entitled to the joint usage of the
facilities, unless some other external elements point out that
the facility belongs to one of the neighbours.
2. If the neighbours are entitled to the joint usage of the
frontier facility, then each of them may use the facility in
such a way that it won’t disturb the neighbour during the joint
usage. Expenses for the maintenance of the facility are to
shared equally between the neighbours. As long as one of the
neighbours will be interested in existence of this facility, it
may not be torn off or modified without his consent.
Section 3
Acquisition and termination of the property right
Subsection 1
Acquisition and Termination of Property Rights in Immovables
Article 206 Transfer of Property in Immovables
1. For a transfer of immovables it is necessary that the
transferor declares his consent to registration in a notarial
document and that the acquirer accepts the declaration,
whereupon registration must take place in the Public Register
provided for this purpose. The document can be combined with
the notarial contract of sale. Both the transferor and the
acquirer can apply for registration.
2. The notarial document must contain an exact description of
the title and transfer. Side considerations can be left out.
Where a party is represented by an appointed representative,
the power of attorney must be fully outlined in the document.
Article 207 Waiver of Right to Immovable
In case of a waiver of ownership right or some other right it
shall be necessary to present a statement of a competent person
where he waives this right and registration of this statement
in the public register. The statement must be handed over to
the register service. Only after that the statement on the
waiver of rights shall acquire a binding force.
Article 208 Presumption of Ownership in Public Register Entry
Proceeding from the interests of the acquirer the alienator
shall be considered to be an owner, if he was registered as
such in the public register, except for instances when the
acquirer knew that the alienator was not an owner.
Subsection 2
Acquisition and Termination of Property Rights to Movables
Article 209 Transfer of property right
1. In order to transfer the property right on movable thing
it is necessary that the owner, on the basis of the actual
right, would give the thing to the person who acquires it in
virtue of the concluded agreement on transfer. If the person
who acquires the thing already possesses the thing, then only
agreement on transfer of the property right is necessary.
2. If the owner possesses the thing, then the factual
transfer of the thing may be replaced by the agreement between
the owner and the person who acquires; the subject of the
agreement shall be the establishment of the indirect possession
of the thing by the person who acquires it.
3. Transfer of the property right is also considered as such,
when the owner gives to the person the right to demand the
possession from the third parties.
Article 210 Conscientious acquisition from an unauthorized
person
Due to the alienation the acquisitor becomes the owner, even if
the thing did not belong to the alienator, but in relation to
this fact the acquisitor is conscientious. The acquisitor is
not considered conscientious, if he was aware or had to be
aware that the thing does not belong to the alienator. The fact
of conscientiousness must exist before the transfer of the
thing.
Article 211 Lost things
1. Property right may not be acquired if the thing was stolen
from the owner, or it was lost. The same rule works, if the
owner was only an indirect possessor of the thing and if the
possessor lost the thing as well.
2. Given provisions are not to be applied in relation to
money or securities on bearer, and in relation to the things
that were alienated by means