Civil Code of the Republic of Kazakhstan (Special part) (1 July, 1999. № 409-1, has been amended by the 2012)
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Civil Code of the Republic of Kazakhstan

(Special part)

(1 July, 1999. № 409-1, has been amended by the 2012)

 

See also version 2001 year

 

Section 4. Certains of obligations


Chapter 25. Sale


Paragraph 1. General Terms of Sale

 

Article 406. Contract of Sale

1. According to the sales contract, one party (the seller) agrees to transfer the property (goods) in the property, economic management or operative control of the other party (the buyer), the buyer agrees to take the property (goods) and pay a certain amount of money for it (the price).

2. By purchasing and selling of securities and currency values the provisions provided for in this item shall be applied, if the legislation does not have special rules for their sale.

2-1. Features of the sale of goods by the Islamic Bank in carrying out of banking operations shall be established by legislative acts of the Republic of Kazakhstan, regulating the banking sector.

3. In the cases provided by the this Code or other laws, peculiarities of the sale of certain categories of goods shall be determined by legislative and other normative legal acts.

4. The provisions of this paragraph shall apply to the sale of property rights, unless it otherwise follows from the content or the nature of those rights.

5. Regulations under this section shall be applied for certains of contracts of sale (retail sales, supply of goods, energy supply, contracting, sale of business), unless otherwise provided by the rules of the this Code on contracts for these transactions.

6. When selling property in accordance with the procedure established for the execution of judicial decisions, an officer of the court shall act as the vendor.

 

Article 407. The Terms of the Contract for Product

1. Goods under a contract of sale may be anything, in compliance with the rules of Article 116 of this Code.

2. Contract may be concluded for the sale of goods, available from the seller at the time of conclusion of the contract, as well as the goods that will be created or acquired by seller in the future, unless otherwise provided by legislation or follows from the nature of the goods.

3. The condition of the product is considered to be consistent if the contract allows you to define the name and quantity of the goods (material conditions).

 

Article 408. The Seller’s Obligation to Transfer the Goods

1. The seller is obliged to transfer the goods, provided by the contract.

2. Unless otherwise provided by the contract, the seller is obliged to transfer the goods to the buyer with its accessories simultaneously, as well as related documents (documents proving the completeness, quality, safety, operation, etc.) provided by normative and legal acts, or by contract.

 

Article 409. Term of Performance of Obligations to Transfer Goods

1. Term of performance of obligations to transfer the goods to the buyer by the seller shall be defined by the contract, if the contract does not allow to determine the term - it shall be determined in accordance with the rules set out in article 277 of this Code.

2. The contract of sale shall be concluded with the condition of its execution to the strictly defined time period, unless the contract shall clear that if there is a violation of the deadline, the buyer loses interest in the performance of the contract.

The seller shall not be entitled to perform such an agreement before or after a specified period, without the consent of the buyer.

Legislative acts or contract may establish cases of performance of the contract of sale in parts (intermediate deadlines for the performance of the contract).

 

Article 410.Time of Performance of the Seller’s Obligations to Transfer Goods

1. The seller's obligation to transfer goods to the buyer, unless otherwise provided by the contract of sale, shall considered to be fulfilled, when:

1) hanging of goods to the buyer or the person specified by him (her), if the contract provides for the seller’s obligation to deliver the goods;

2) deliver the goods at the buyer's disposal, if the goods shall be delivered to the buyer or the person specified by him (her) at the location of the goods.

The product shall be supplied to the buyer, when the deadline provided for under the contract, the goods are ready to be transferred to the appropriate place and the buyer, in accordance with the terms of the contract is aware of the readiness of the goods for the transfer. This product shall not be considered to ready for transfer, if it is not identified for the purposes of the contract, by marking or otherwise.

2. In cases, where the contract of sale shall not followed the seller's obligation to deliver goods or transfer the goods to the buyer at its location, the obligation of the seller to transfer the goods to the buyer shall be considered to be executed at the moment of delivery of the goods to the carrier or the organization due for delivery to the buyer, unless the contract provides otherwise.

 

Article 411. Passing the Risk of Accidental Loss of Goods

1.The risk of accidental loss or accidental damage of the goods, which is provided by the contract of sale, shall be passed to the buyer, when in accordance with legislative acts or the contract, the seller is considered to perform his (her) duty to transfer the goods to the buyer.

2. The risk of accidental loss or accidental damage of the goods, which is sold on the way, shall be passed to the buyer since the moment of conclusion of the contract of sale, unless otherwise provided by the contact or customary business practice.

A condition of the contract, that the risk of accidental loss or accidental damage of the goods passes to the buyer, since the moment of delivery of the goods to the first carrier, and at the request of the buyer could be found invalid by a court, if, at the time of conclusion of the contract the seller knew or ought to have known that the goods are lost or damaged and not reported it to the buyer.

 

Article 412. The Seller’s Obligation on the Preservation of Sold Goods

When the property right, the right of economic management or operational control pass to the buyer before delivering the goods, the seller shall be obliged to preserve the goods before transferring and prevent its deterioration.

The buyer shall be obliged to reimburse to the seller the necessary costs, unless otherwise provided by agreement of the parties.

 

Article 413. The Seller’s Obligation is to Transfer the Goods that are Free from the Rights of Third Parties

1. The seller is obliged to transfer the goods, which are free of any rights of third parties, except in the case, where the buyer has agreed to take the goods, which are encumbered to the rights of third parties.

Failure by the seller of this duty gives the buyer the right to demand a reduction in the price of goods or cancellation of the contract and claim damages, if it can be shown that the buyer knew or should have known about the rights of third parties on this product.

2. The rules provided in paragraph 1 of this Article shall be applied in the case at the time of goods transferring to the buyer, whether the claims of third parties are presented, and of which the seller is aware about the claims, which are subsequently found to be legally valid.

 

Article 414. The Seller’s Liability in the Case of Seizure of the Goods from the Buyer

1. In the case of seizure the goods from the buyer by third parties on the grounds that arose before the execution of the contract, the seller must compensate the buyer incurred losses, unless it shall be proved that the buyer knew or should have known about the presence of these grounds.

2. The parties' agreement upon releasing of the seller from the liability or limitation of liability is not valid in the case of demand of the purchased goods from the buyer by third parties.

 

Article 415. Obligations of the Buyer and Seller in the case of filing out for the Seizure of Goods

1. If a third party gives the buyer the suit on seizure of goods on the grounds of arisen execution of the contract, the buyer is obliged to bring the seller the participation in the case, and the seller is obliged to enter the case on the side of the customer.

2. The non-involvement by the buyer of the seller to the case shall release the seller from the liability to the buyer, if the seller can prove that by participating in the case, he (she) could have prevented the seizure of goods, which is sold by the buyer.

3. The seller, who has been attracted to the participation in the case, but did not take part in it, shall be deprived of the right to prove the buyer’s irregularity on proceedings in the case.

 

Article 416. The Consequences of Breaching Duties on Transferring the Goods

1.If the seller refuses to hand over the sold goods to the buyer, the buyer shall be entitled to refuse on the performance of the sale contract.

2.When the seller refuses to transfer a certain individual thing, the buyer shall be entitled to present a claim to the seller under Article 355 of this Code.

 

Article 417. Consequences of Breaching Duties to Transfer Ownership and Documents Relating to the Goods

1. If the seller shall not supply or refuses to hand over the accessories of the goods or documents belonging to it, which he (she) must pass (paragraph 2 of article 408 of the Code) to the customer, the buyer has the right to appoint him a reasonable time their transfer.

2. In the case, where the accessories or documents relating to the goods are not delivered within the specified period of time by the seller, the buyer shall be entitled to refuse to accept the goods, unless otherwise provided by the contract.

 

Article 418. The Quantity of Goods

The quantity of the goods, which shall be transferred to the buyer, in the relevant units or in monetary terms provided by the contract. The condition on the number of goods may be agreed by the contract establishing the order of its definition.

 

Article 419. The Consequences of a Breach of the Contract on the Quantity of Goods

1. If the seller has transferred to the buyer fewer goods than defined by the contract in breach of the contract, the buyer has the right, to demand the transfer of the missing quantities or refuse from the transferred goods and its payment, and if he (she) paid for to demand the return paid for a sum of money, unless otherwise provided by the contract.

2. In the case, when the seller has delivered the goods to the buyer in an exceeding quantity that is specified in the contract and the buyer must notify the seller in accordance with paragraph 1 of Article 436 of this Code. If the seller shall not be ordered the goods within a reasonable time after receiving the message from the buyer, the buyer shall have the right to take all the goods, unless otherwise provided for by the contract.

3. In the case, when the buyer shall accept the goods in an exceeding quantity, which is specified in the contract, the goods shall be paid at the price in accordance with the contract defined for the goods, if a price is not determined by agreement of the parties.

 

Article 420. The Range of Goods

If the contract of sale shall be subject to transfer the goods in a certain ratio by, models, sizes, colors and other characteristics (range), the seller must give the buyer the goods in assortment, agreed to by the parties.

 

Article 421. The Consequences of a Breach of the Contract on the range of Goods

1. When transferring the range of goods, which is specified in the contract by the seller, and is not appropriate to the contract, the buyer has the right to refuse their acceptance and payment for it, and to demand the return of money, if they have already paid.

2. If the seller has transferred to the buyer, the goods in violation of the terms of the contract, along with the goods, which range corresponds to the contract, the buyer shall be entitled to choose:

1) to accept goods that comply with the range terms of the contract, and abandon the rest of the other goods;

2) to abandon all of the transferred goods;

3) to require the replacement of goods, which is not appropriate with the terms on the range of goods provided by the contract;

4) to accept all the transferred goods.

3. When refusing of goods, which assortment does not appropriate to the contract, or the request for replacement of the goods, which is not appropriate with the contract, the buyer shall be entitled to refuse to pay for these goods, and to demand the return of money, if they have already paid.

4. Products that do not appropriate with the terms of the contract on the range shall be considered to adopted, if the buyer within fifteen days after their receiving, shall not inform the seller about his (her) rejection of goods.

5. If the buyer has not abandoned from goods assortment, which do not appropriate with the contract, he (she) shall be obliged to pay them on the price agreed with the seller. If the seller has not taken the necessary measures to harmonize prices within fifteen days, the buyer shall pay for the goods at a price, which was generally charged for similar goods, under comparable circumstances at the moment of conclusion of the contract.

6. The rules of the present Article shall be applied unless otherwise provided by the contract of sale.

 

Article 422. The Quality of the Goods

1.The seller is obliged to transfer to the buyer, the goods which quality should be corresponded to the contract.

2. When the conditions on the quality of goods are absent in the contract, the seller is obliged to transfer the goods, which are appropriate for the purposes for what this of goods are generally used.

If the seller when concluding a contract has been concluded about the specific purposes of acquiring the goods by the buyer, the Seller shall be obliged to transfer the goods, which are fit for usage in accordance with these purposes.

3. When selling goods on the sample and (or) on the description, the Seller shall be obliged to transfer the goods to the buyer, which are corresponded to the sample and (or) description.

4. If in accordance with the legislative acts, which provides the order on the mandatory requirements to the quality of the sold goods, the Seller, who engaged in entrepreneurial activity, shall be obliged to transfer the goods to the Buyer, which are corresponding to these mandatory requirements.

Under the agreement between the Seller and the Buyer can be transferred goods, which are corresponded to the high quality requirements compared with the mandatory requirements, which were set out in the order established by legislative acts.

5. The goods, which the seller shall be obliged to transfer to the buyer, shall comply with the requirements of this Article, at the time its transferring to the buyer, unless a different time for determining conformity with these requirements are not provided by the contract and it within a reasonable time should be suitable for the purpose for which this of goods are generally used.

 

Article 423. Expire Date of Goods

1. Legislation, regulatory requirements of State standards or other mandatory rules can be defined the period of time after which the goods are considered to be unfit for its intended use (expire date), as well as cases where the expire date of the product is indicated on the product.

2. Goods, for which set the expiration date, the Seller is obliged to transfer to the Buyer, taking into account that they can be used for intended purpose until the expiration date.

 

Article 424. Calculation of the Expiration Date of Goods

The expiration date of the goods shall be determined by the period of time calculated from the date of its producing, and during which time the goods are fit for usage or by the date before which the goods are fit for usage.

 

Article 425. Guarantee of the Quality of Goods

1. In the case where the contract provides the seller’s guarantee on the quality of the goods, the Seller is obliged to transfer the goods, which shall meet the requirements of Article 422 of the Code, for a period of time established by the contract (warranty period).

2. Guarantee of the quality of the goods extends to all its constituent parts (components), unless otherwise provided by the contract.

 

Article 426. The Procedure for Calculating the Guarantee Period

1. The warranty period shall begin from the moment of transfer of the goods to the buyer (article 410 of the this Code), unless otherwise provided by the contract.

2. If the buyer is unable to use the goods, due to circumstances beyond the control of the seller and for which has been established the warranty period by the contract, the warranty period shall not be flowed until the relevant circumstances shall not be fixed by the seller.

Unless another is provided by the contract, the warranty period shall be extended by the time during which the goods could not be used because of the deficiencies found in it, providing a notice of the seller about the defects of goods in accordance with the Article 436 of this Code.

3. Unless another is provided by the contract, the warranty period for a complementary part of the product shall be considered equal to the warranty term of the product and will run concurrently with the warranty period for the main product.

4. Unless another is provided by the contract, the warranty period shall be started to run again, when replacing the product (components).

 

Article 427. Verification of the Quality of the Goods

1. If legislation or contract provides for verification of the quality of the goods, it must be carried out in accordance with the requirements provided by them.

In cases, where the State standards and other normative documents on standardization set mandatory requirements to the verification of the quality of goods, the quality control should be carried out in accordance with the instructions contained therein.

2. If the conditions for verification the quality of the goods are not provided in the manner prescribed by paragraph 1 of this Article, the verification of quality of the goods shall be carried out in accordance with the customs of trade or other commonly used terms of the verification of the goods that to be transferred under the contract.

3. If the legislative acts, the mandatory requirements of State standards and other normative documents for standardization or contract provides for the seller’s duty to verify the quality of the goods, which are transferred to the buyer (testing, analysis, inspection, etc.), the seller must provide the buyer, upon of his (her) request evidence of verification the quality of the goods.

 

Article 428. The Consequences of Transfer of Goods that are of Defective Quality

1. If defects in the goods had not been stipulated by the seller, the buyer, who handed over the goods of inadequate quality may choose to require from the seller:

1) proportionate reduction of the purchase price;

2) free elimination of the goods defect within a reasonable time;

3) compensation of their expenses for elimination of defects in the goods;

4) replacement of inadequate quality of goods to the goods, which are appropriate to the contract;

5) failure to execute the contract and return the paid amount of money for the goods.

Terms and conditions of the buyer’s refusal from the rights provided in this paragraph shall be invalid.

2. In the case of inadequate quality of the parts of goods, which are included in series (article 432 of the this Code), the buyer has the right in respect of this part of the goods to exercise the rights provided in paragraph 1 of this Article.

3. In the case where the seller of the goods of improper quality was not its manufacturer, the requirements for replacement or free removal of defects may be brought on the buyer's choice to the seller or the manufacturer.

4. The rules of this Article shall apply, unless otherwise established by the this Code or other legislation.

 

Article 429. Material Defects for which the Seller Bears Responsibility

1. The seller shall be responsible for defects of the goods if the buyer can prove that they have arisen before the transfer to the buyer or for reasons that have arisen before that moment.

The seller shall be responsible for defects of the sold goods and in the case if he (she) did not know about them. The agreement to release the seller from liability or its limitation is not valid.

2. In respect of the goods for which the seller provided the guaranteed quality, and the seller shall be responsible for defects of goods, unless he (she) proves that the defects in the goods arose after their transferring to the buyer as a result of the breach of the rules regarding the usage of the goods by the buyer or its storage or actions of third parties or force majeure.

 

Article 430. Terms of Detection the Defects in the Transferred Goods

1. Unless another is not provided by legislative acts or contract, the buyer has the right to bring claims arising from the defects of goods that are found in the terms, which are established in this Article.

2. If the goods do not have warranty period or expiration date, requirements related to defects in the goods may be brought by the buyer, in the case if the deficiencies in the sold goods were found within a reasonable period of time, but within two years from the date of transfer of the goods to the buyer, if longer terms are not set by legislative acts or contract. Deadline for identifying defects in the goods, which are transported or sent by mail, is calculated from the day of receipt of the goods at the place of destination.

3. The buyer shall be entitled to bring claims arising from defects of goods, if the goods have warranty period and defects are found within this period.

In the case, where the component parts in the contract is quarantined for a shorter duration than the main product, the buyer shall be entitled to make claims about the shortcomings of the component parts, if they are found within the warranty period on the main product.

If the component of the product is installed in the contract a warranty period longer than the warranty period for the main product, the buyer shall be entitled to make a claim about the shortcomings of the product, in the case if the deficiencies in the component product are found within the warranty period on it, regardless of the expiration of the warranty period on the main product.

4. According to the goods, which the expiry date has been set, the buyer is entitled to make a claim about the shortcomings of the goods if they are detected during the expiry day of the product.

5. In cases where the contract warranty period is less than two years and material defects are found by the buyer after the expiration of the warranty period, then within two years from the date of transfer of the goods to the buyer, the seller shall be liable if the buyer proves that the material defects occurred before the transfer of goods to the buyer or for reasons that have arisen so far.

 

Article 431. Completeness of the Goods

1. The seller must transfer the goods to the buyer which are conformed to terms of the contract on completeness.

2. If the contract is not defined completeness of the goods, the seller must transfer goods to the buyer, the completeness of which is determined by the business practice or another specified requirements.

 

Article 432. Set of Products

1. If the contract provides for the seller’s obligation to transfer a certain set of goods in the set (set of products) to the buyer, the obligation is considered to be executed since the moment of transferring all goods included in the set.

2. Unless another is provided by the contract or follows from the nature of the obligation, the seller is obliged to transfer all the goods included in the set to the buyer, at the same time.

 

Article 433. Consequences of the Transfer of Products on Incomplete Set

1. In the case of transferring incomplete goods (Article 431 of this Code), the buyer may, at his (her) discretion to demand from the seller:

1) a proportional reduction of the purchase price;

2) the re-supply of goods within a reasonable time;

3) a replacement of the incomplete goods to complete;

4) failure to perform the contract and return the amount of money paid for the goods.

2. Consequences provided in paragraph 1 of this Article shall also apply in the case of seller’s violation of obligations on transferring a set of products to the buyer (Article 432 of this Code), unless another is provided by law or contract or follows from the nature of the obligation.

 

Article 434. Tare and Packaging of Goods

1. Unless another is provided by the contract or follows from the nature of the obligation or the nature of the goods, the seller is obliged to transfer the goods in the tare and (or) package.

2. If the contract does not specify requirements for tare and packaging, the goods must be contained or packaged in the usual manner for such goods or, in the absence of it, should be done in the method for preservation of the goods of this under normal conditions of storage and transportation.

3. If legislation is provided with mandatory requirements for tare and (or) packaging, the seller, who engaged in entrepreneurial activity, shall be obliged to transfer the goods in the container and (or) package, which respond to these regulatory requirements.

 

Article 435. Consequences of Transferring the Goods Without Tare and (or) Packaging and (or) Improper Tare and (or) Packaging

1. In the case, when goods which require containing and (or) packaging are transferred to the buyer without containing and (or) packaging or improper containing and (or) packaging, the buyer has the right to require the seller to contain and (or) pack the goods appropriately or replace improper goods and (or) packaging, unless the contract, the nature of the obligation or the nature of the goods stipulate otherwise.

2. Instead of presenting the requirements specified in paragraph 1 of this Article to the seller, the buyer shall be entitled to present to him (her) any other requirements arising from the transfer of inadequate quality goods (Article 428 of this Code).

 

Article 436. Notice to the Seller about the Improper Execution of the Contract

1. The buyer must notify the seller on breaching of the contract on the number, range, quality, completeness, containing and (or) packaging of the goods within the period prescribed by legislative acts and otherwise, normative legal acts, or contract, and if the term is not set, within a reasonable time after breaching the terms of the contract, which is found on the basis of the nature and destination of goods.

2. In case of non-execution of obligations under paragraph 1 of this Article by the buyer, the seller has the right to completely or partially refuse to meet the requirements of the buyer, if he (she) shall prove that late notice is caused inability to respond to the requirements of the buyer or led to the seller disproportionate costs in comparison with those, which he (she) would have occurred if he (she) was timely notified on breaching of the contract.

3. If the seller knew or should have known that the goods, which are transferred to the buyer do not meet the requirements of the contract before, he (she) shall not be entitled to rely on the buyer's failure to perform obligations under paragraph 1 of this Article.

 

Article 437. The Buyer’s Responsibility to Take the Goods

1. The buyer must accept the goods transferred to him (her) by the seller, except the cases, where in accordance with the rules of this chapter, he (she) shall have the right to require replacement of the goods or cancel the contract.

2. Unless another is provided by legislation or contract, the buyer is obliged to take actions, which in accordance with the usual requirements are necessary on his (her) part to ensure the transfer and receipt of the goods.

3. In cases, where the buyer in violation of the legislation or contract does not accept or refuse to accept the goods, the seller shall be entitled to require recipient of the goods or cancel the contract from the buyer.

 

Article 438. The Price of the Goods

1. The buyer is obliged to pay costs under the contract, or, if it is not provided for and cannot be determined by the contract, on the basis of its terms, at a price determined in accordance with the rules of Article 385 of the this Code, and to make actions on his (her) own expense, which according to the legislation, contract or usual requirements are necessary to make the payment.

2. When the price is set depending on the weight of the goods, it shall be determined by the net weight, unless another is provided by the contract.

3. If the contract provides that the price of the goods is changed depending on the indicators for the price of the product (cost, expenses, etc.), but does not define a way to revise the prices, price shall be determined on the basis of the ratio at the time of conclusion of the contract and at the time of the execution of the obligations on transfer of the goods. In the case of delay the obligation to transfer goods by the seller, the price shall be determined on the basis of the ratio at the time of conclusion of the contract and on the day of transfer the goods provided by the contract, or if this date is not defined, on the day determined in accordance with Article 277 of this Code.

The rules provided in this paragraph shall be applied, unless another is provided by this Code and other legislative acts, or followed from the nature of the obligation.

 

Article 439. Payment for Goods

1. If the terms of the contract and legislative acts do not obligate to pay the price for a certain period of time, the buyer after the transfer of the goods or documents for this goods shall be obliged to pay it without delay.

2. If the contract does not provide the installment payment for the goods, the buyer is obliged to pay the seller the amount of total price of transferred goods.

3. If the buyer does not pay for transferred goods in accordance with the contract, the seller has the right to demand payment of the goods and the penalty payment for the use of other people's money (Article 353 of this Code).

4. If the buyer is in breach of contract, refuses to accept and pay for the goods, the seller may choose to ask for payment of goods or cancel the contract.

5. In cases where the seller according to the contract shall be obliged to transfer the buyer, except unpaid another goods, he (she) is entitled to suspend the transfer of those goods until full payment of all previously transferred goods, unless another is provided by legislative acts or contract.

 

Article 440. Advance Payment for Goods

1. In cases, where the contract provides the buyer's obligation to pay the price in full or in part before the transfer of goods (advance payment) by the seller, the buyer must make payment within the period stipulated in the contract, and if the term of the contract did not provide it within the period determined in accordance with Article 277 of this Code.

2. In the case of non-execution of the obligation to pre-payment according to the contract by the buyer, the rules are provided in Article 284 of this Code.

3. In cases where the seller, who has received the amount of advance payment, does not perform his (her) duties on transferring the goods within the prescribed period (article 409 of this Code), the buyer has the right to demand the transfer of the paid goods or refunding of the advance payment for the goods, which the seller has not transferred.

4. If the seller fails to perform the obligation to transfer pre-paid goods and another is not provided in the contract of sale, the forfeit to the amount of the advance payment shall be paid in accordance with Article 353 of this Code, from the day when transfer of goods are made under the contract and before the day of transfer of the goods to the buyer or return the amount paid in advance to them. A contract may provide the seller’s obligation to pay the penalty to the amount of the advanced payment from the date of receipt of this amount.

 

Article 441. Payment for Goods Sold on Credit

1. In cases, where the contract provides for payment of the goods after a certain period of time after its transferring to the buyer (sale of goods on credit), the buyer shall make payment within the period provided by the contract, and if the term of the contract is not provided it, within the period determined in accordance with Article 277 of this Code.

2. In the case of non-execution of the obligation on transferring goods by the seller, rules are provided for in article 284 of the Code.

3. In cases, where the buyer, who has received the goods, does not perform the obligation to pay for it within the period provided in the contract, the seller has the right to require the payment for transferred goods or returning the unpaid goods.

In cases, where the buyer do not execute the obligation to pay for transferred goods within the contract period and another is not provided by this Code and the contract, the forfeit on the overdue amount is payable in accordance with Article 353 of this Code from the date when the goods should have been paid and until the date of payment for the goods by the buyer.

4. The contract may provide the buyer's obligation to pay a forfeit to the amount which correspond to the price of goods, beginning from the day of the transferal of goods by the seller.

5. Sale of goods on credit is performed at a price in effect on the day of the sale. Subsequent change of prices on sold in credit goods shall not be recalculated, unless another is provided by legislative acts or contract.

 

Article 442. Payment by Installments on the Sale of Goods in Credit

1. The contract for the sale of goods on credit may provide an installment payment.

Contract for the sale of goods on credit with the condition on the installment payment is considered to be concluded, when in it, along with other essential terms of the contract are provided the sale, the price, the order, terms and amount of payments.

2. When a buyer does pay for the goods, which sold on credit within the contract period, the seller, unless another is provided by the contract, shall be entitled to cancel the contract and demand the return of sold goods, except in cases where the amount of received payments from the buyer, more than half the price of goods.

 

Article 443. Goods Insurance

1. The contract of sale may provide the seller’s or the buyer’s obligation to insure the goods, unless another is provided by legislative acts.

2. In cases, where the party, who is obliged to insure the goods, does not provide insurance in accordance with the terms of the contract, the other party shall have the right to insure the goods and require from the obligated party the compensation of insurance costs or cancel the contract.

 

Article 444. Preservation of the Ownership Right on Goods for the Seller

1. In cases, where the contract provides that the ownership of the goods is only transferred to the buyer until the payment of goods or other circumstances, The buyer shall not be entitled to dispose of the goods, or dispose of them in any other way, until the ownership of goods is transferred to him (her), unless another is provided by legislative acts or contract or followed from the purpose and characteristics of the goods.

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