Act No. 138 / 1970 Coll.
Law amending and supplementing certain provisions of the Economic Code
Valid
Effective from 01.01.1971
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138
THE LAW
of 21 December 1970
amending and supplementing certain provisions of the Economic Code
The Federal Assembly of the Czechoslovak Socialist Republic decided on this law:
Economic Code No. 109 / 1964 Coll., as amended, is amended as follows:
1. The following shall be inserted after Paragraph 18:
Socialistic organisations may only engage in economic activities to the extent specified by the subject matter of the activity provided for in the instrument of incorporation, in the Statute or in the statutes, or in any other act which authorises them to do so; Article 60 (1) applies to the scope of the economic activity of budgetary organisations. Organisations shall not exceed or otherwise pursue an economic activity which is unfairly defined. Unless otherwise provided in the legislation, the retail sale of products produced, modified or otherwise processed by the organisation, and the provision of related works or services, ancillary sales of products related to the work or performance provided, and, where appropriate, other supplies, works or performance, shall not exceed the scope of the activity, provided that they are carried out on an occasional, isolated and short-term basis. ';
Article 24 (1) reads as follows:
"(1) Legal acts of socialist organisations are invalid if they are contrary to or circumventing the legislation or their purpose, or are contrary to the principles of economic policy of the Czechoslovak Socialist Republic, or if their object is impossible to comply with. Fulfilment is not impossible if it can only take place under difficult conditions or with greater costs or after the specified time. '
3. Paragraph 24 is added to the following paragraph:
"(4) An organisation which knew or had to know that a legal act was invalid shall be obliged to make good the damage caused by the invalidity of the legal act to an organisation which trusted the legal act in force. '
4. The following shall be inserted after Paragraph 50 under the heading "Transfers and amendments to production programmes':
The production programme shall be allowed to be transferred between state economic organisations only if the effectiveness and economy of the transfer has been safely established and provided for the smooth supply of the national economy to at least the extent and quality of the national economy and the proper fulfilment of its obligations towards abroad. '
5.
(1) Transfers of production programmes may be made either by an agreement requiring the approval of the superior authority or, where appropriate, the superior central authority or the regional national committee, if it has reserved its approval, or by the measures of the superior authority (central authority or regional national committee). In the case of organisations managed by different bodies, agreements between these bodies are needed.
(2) The agreement or, where appropriate, the measure of a superior body must define the type and extent of the production transferred, the extent of the rights and obligations transferred and the necessary cooperation and specify the date on which the transfer of the production programme takes place.
(3) If the management of national assets is also to be transferred when the production programme is transferred, the procedure laid down in Section 68 shall be followed. ';
6.
Planning acts
(1) The rules governing the planning of the development of the national economy shall specify whether and in which sections the competent authorities shall issue, within the scope laid down by them, such planning acts defining the future supply of products or works between organisations and, where appropriate, other cooperation between them (hereinafter referred to as "planning acts"). These planning acts are the basis on which certain organisations are obliged to conclude economic contracts.
(2) The authorities issuing planning acts amending or repealing are required to ensure, in particular, the supply and subcontracting of planning acts for:
(a) tasks determined by the government responsible for the task;
(b) planned tasks for the development of science and technology;
(c) ensuring state defence and security;
(d) exports and to ensure the commitments made in the negotiations on international economic relations by the authorities empowered to do so;
(e) vital health care needs. "
7. Paragraph 116, including the title, reads:
Supply preparation contract
(1) The Treaty on the preparation of supplies obliges one or more organisations to conclude a future contract within a specified period of time and on the expected extent of performance.
(2) A contract for the preparation of supplies may also include commitments for mutual cooperation in order to properly and in time to prepare future transactions.
(3) A contract on the preparation of supplies is established if the agreement on its whole content is reached.
(4) The implementing act may provide for the details of the contract for the preparation of supplies and may, by way of derogation, be adapted to its origin; an obligation to conclude such a contract may be provided for by law. ';
8.
(1) Organisations are obliged to cooperate in the provision of the planned tasks and to help each other to ensure the best possible needs of the national economy. In particular, they shall undertake, when concluding economic contracts for the supply of products, works or performance in quality, range and within the time limits most appropriate for the whole national economy to carry out the planned tasks, and to fulfil their obligations properly.
(2) Organisations shall not restrict the production or release from the production programme of products, works or performances contrary to the requirements of customers unless authorised by the superior authority or, where appropriate, the superior central authority or the Regional National Committee, if they have reserved their approval. Where products are intended for sale to citizens or for export products, the competent authority shall, after consultation with the Ministry of Trade or the Federal Ministry of Foreign Trade, give its consent. Paragraph 51 applies mutatis mutandis.
(3) Organisations may not refuse the conclusion of an economic contract for the supply of products, works or works under normal conditions, provided that the acceptance of an undertaking does not jeopardise the performance of other of their obligations; In so doing, they shall be required to meet, as a matter of priority, the supply requirements for the security of the needs identified as a priority in the State Plan and the requirements of those customers for which they have been established. ';
9. The following shall be inserted after Paragraph 119:
(1) Organisations may not abuse their economic status to obtain unjustified or disproportionate benefits at the expense of other organisations or consumers. In particular, they shall not:
(a) to enforce disproportionate economic conditions when concluding economic contracts or other agreements, in particular to enforce performance agreements which, at the time of the conclusion of the contract, are manifestly disproportionate to the performance of the organisations provided;
(b) to agree to the conclusion of an economic contract for the acceptance of an undertaking which is not related to the subject of the performance sought,
(c) to stop or restrict the sale of products, to hide or to accumulate products in order to create a shortage of products in order to maintain or to obtain an unjustified increase in prices or other unjustified economic benefits.
(2) Organisations may not, on their own or in agreement with other organisations in their economic activities, engage in acts which, contrary to the interests of the development of the national economy, restrict or otherwise adversely affect the activities of other organisations or are harmful to consumers.
(3) An organisation having a legal interest may require economic arbitrage to refrain from such action and to eliminate the unlawful situation of an organisation which has suffered damage in breach of the provisions of the preceding paragraphs; an organisation which has suffered such damage may seek compensation, including loss of profits. Where the interests of consumers or the national economy have been damaged by the conduct, the organisation shall pay twice as much to the State budget as it has obtained illegally; However, the amount which the organisation is obliged to pay as a property penalty to the State budget on the basis of other legislation shall be credited to that obligation. ';
10.
(1) Organisations may agree to amend or withdraw an undertaking unless the law or nature of the undertaking so excludes; they may also agree to apply for a decision on economic arbitrage.
(2) Where one organisation seeks to amend or withdraw an obligation under a planning act, the other organisation shall accede to the amendment or cancellation. The same shall apply where a measure which is provided for by law as a precondition for the performance of an undertaking or where the performance of an undertaking by at least one of the organisations has been brought into conflict with a measure taken by the relevant central authority or national committee under the law; the organisation on whose part the reason for the change or cancellation of the undertaking has arisen shall be obliged to reimburse the other organisation for the necessary costs incurred by it in the preparation for the performance of the undertaking, the modification of the undertaking or its cancellation. ';
11.
(1) Unless this is excluded by legislation, organisation agreement or the nature of the undertaking, the rights of the undertaking may be transferred by agreement to another organisation. As long as an organisation that is under an obligation to comply is not aware of the procedure, it may comply with an organisation originally authorised.
(2) Obligation from the undertaking may be taken over by another organisation by agreement only with the agreement of the approved organisation, unless it is taken over by decision or with the agreement of the superior authorities.
(3) The rights and obligations of the undertaking may be transferred directly between the state organisations by a measure of a superior body; If there are organisations managed by different authorities, such arrangements shall require agreements between them. ';
12. The following shall be inserted after Paragraph 129:
An organisation which has concluded a contract or other agreement for an indefinite period of time shall be entitled to terminate it at least six months in advance, unless the nature of the undertaking, the law or the agreement implies that there may be termination or, where appropriate, notice periods.
(1) The undertaking ceases to exist if its performance becomes impossible (§ 24 (1)); However, it shall not cease if the failure to perform is caused by the undertaking.
(2) If only part of the performance is impossible, the undertaking will cease only in so far as that part is concerned. However, where it results from the nature of the contract or from the purpose of the performance known to the organisations when the undertaking was established that the fulfilment of the remainder would be economically unjustified, the obligation shall cease to exist in its entirety. ';
13. Article 131 (3) reads as follows:
"(3) The period for the termination of the right to compensation shall begin from the first day of the year following the date on which the injured organisation became aware of the amount of the damage and the organisation responsible for it. However, the right to compensation may be exercised no later than the end of the second year following the expiry of the time limits for the claim of defects if the damage caused by defective performance is caused; in other cases, no later than the end of the tenth year following the occurrence of the damage. ';
14. § 132 reads:
(1) If the approved organisation receives a written recognition of the undertaking in both grounds and scope, the original period for the termination of the right shall cease to run. The entire period shall run again from the date on which the original period was to end. If recognition concerns only part of the undertaking, these consequences arise only with regard to that part. A commitment with these effects can only be accepted once.
(2) In the event that, in the event of non-cash payments, the creditor has legitimately ordered the payment of the claim to the cash institution, the period for the termination of the rights shall cease to run on that date. Where a refund order has been withdrawn or returned, or where a refund ban has been issued, the whole period shall run again from the date on which the original period was to end. ';
15.
(1) This is replaced by the fact that the property of the damaged organisation has been reduced by a harmful event. In the case of damage to agricultural and forestry crops (crops), to livestock production and to the damage caused by the cessation of production on agricultural and forestry land, what would have been achieved by the injured organisation had there not been a harmful event (loss of profit); in other cases, the income forgone shall be replaced only if the organisation has grossly infringed its obligations. However, in the event of a breach of an undertaking, the damage which the organisation which caused the damage could not have been foreseen as a normal consequence of such a breach when the undertaking was established.
(2) The damage is replaced by money; However, if the injured organisation so requests and if it is possible and effective, the damage shall be replaced by an indication of the previous situation.
(3) Damage compensation shall be charged to property penalties for which the injured organisation is entitled as a result of failure to fulfil obligations that have been caused by the breach.
(4) In legislation, the extent of compensation may be determined by derogation for certain cases. '
16. § 149 reads:
The right to compensation resulting from defective performance shall be without prejudice to the loss of liability rights. ';
17. § 153 reads:
(1) An economic contract is established when an agreement is reached on the subject-matter and the time of performance and, where appropriate, on other elements which, when the contract is negotiated, one of the organisations declares that such agreement is necessary for the creation of the contract. If the price is made up of an agreement between the organisations, the contract shall be concluded only if the agreement on the amount of the price or the way in which the price will be determined is also reached.
(2) The agreement on the subject-matter and time of performance, where applicable, the price and other formalities laid down as a condition for the establishment of the contract may be replaced by:
(a) when concluding a contract for the supply of products, where the contract is submitted by the customer, by not informing the supplier, within one month of receipt by the supplier of a proposal for amendments or additions relating to the subject matter or time of performance, or, where applicable, the prices or other particulars provided as a condition for the creation of the contract, that the supplier does not agree with such amendments or additions; in this case, the contract shall be concluded in the wording of the amendments and additions proposed by the supplier;
(b) where the nature of the undertaking does not exclude it, by providing the required performance and by not rejecting it without undue delay by the supplier; where only part of the required performance is provided, the contract is concluded only to the extent that the performance provided is performed;
(c) a decision on economic arbitrage where the organisations so agree and where the obligation to conclude an economic contract at least one of the organisations at the request of the other organisation results from legislation or from a contract for preparing supplies. An organisation seeking the conclusion of a contract shall replace the second organisation with an increase in costs resulting from the conclusion of a contract where the expected extent of such an increase has been alerted before the conclusion of the contract; This does not apply if the organisation seeks the conclusion of a contract on the basis of a planning act or on the basis of a measure under Paragraph 118 or a contract for the preparation of supplies.
(3) Where a contract is created but the organisation has not agreed on formalities other than the subject matter and time of performance, or, where applicable, the price or other requirement provided for as a condition for the creation of a contract, such formalities shall become part of the contract, as amended and supplemented in the adoption of the draft contract, if the organisation which made the proposal does not request economic arbitrage within one month of the date of the conclusion of the contract. Unless otherwise provided for in the decision on economic arbitrage, its decision has had effect since the inception of the contract.
(4) If an agreed price is higher than that allowed under the price regulations, the price agreed shall be the maximum price allowed.
(5) Replacement of the price agreement may be otherwise adjusted in the price rules. "
18. § 155 reads:
(1) Where a joint commitment by several organisations is to be established by an economic contract and is not jointly and severally committed, the organisation shall set out the shares in the contract in which each organisation is authorised or committed, or, where appropriate, which of them and by what time it shall determine the shares. If the organisation which is obliged to determine the shares under the contract does not do so within the specified time limit, it shall be obliged or entitled to do so itself. If the shares are not laid down in the contract or are not determined, the organisation shall be bound or entitled to the same extent.
(2) If all organisations do not sign the contract, those of them signing the contract shall be empowered by other organisations, otherwise they shall be obliged or entitled themselves. ';
19. The following shall be inserted after Paragraph 155:
(1) Where several organisations are jointly and severally committed to the same performance under the Agreement, the beneficiary organisation may require the full performance of any of them, provided that the nature of the undertaking does not imply that it can only be fulfilled by the joint activities of all. If one of the obligated organisations is fulfilled, the undertaking of the other organisations to the organisation is terminated.
(2) In a reciprocal relationship, organisations are committed equally, unless otherwise agreed. If one of the organisations cannot fulfil the obligation, the share shall be distributed to the others in the same way.
(3) An organisation against which a claim has been claimed in excess of its share must notify the other organisations without undue delay and give them the opportunity to object to the claim; may also request that the other jointly committed organisations fulfil the obligation to the extent of the shares in them or, where appropriate, to claim compensation from them to the extent of the shares in them. However, this is without prejudice to the rights of the approved organisation.
(1) Where an organisation is committed simultaneously to several organisations for indivisible performance, either of the beneficiary organisations may require the performance. The fulfilment of one of the eligible organisations shall cease to be a liability.
(2) The relationship between jointly authorised organisations determines whether and to what extent the organisation which has received the performance is bound by something. "
20. Paragraph 161 (2) reads as follows:
"(2) Before issuing the planning acts, the supplier shall, at the request of the customer, conclude a contract only if the delivery or sub-delivery required to carry out the tasks referred to in Article 115 (2) or, where applicable, the supply ordered in time under the contract for preparing the supply; After the publication of the planning acts, organisations are obliged to adapt the contracts concluded (Section 125). Under the same conditions, the supplier shall also be obliged to conclude a contract for products for which planning acts are not issued, if they are to ensure the defence or security of the State. ';
Article 21 (191) (4) reads as follows:
"(4) The provision and negotiation of other increases or reductions shall be possible only if legislation so provides; in which the provision and negotiation of surcharges and haircuts may also be modified by derogation. ';
22. the following paragraph is added to Paragraph 196:
"(4) The Standardisation and Measurement Office may, on a proposal from a central authority superior to the customer, determine, after consultation with a central authority superior to the supplier, that the organisations are obliged to arrange for a verification of the quality of supply of certain products by statistical acceptance. '
23. Paragraph 201 (1) (a) reads as follows:
"(a) if the defect is unremovable, require either a new impeccable performance to the extent of the defective performance or, if this is not possible, to demand the cancellation of the contract. The same right shall apply to products intended for sale to citizens if the defect occurs again after repair or if the product has more defects; ';
Article 24 (204) (1) reads as follows:
"(1) The supplier who is late in supplying the products is obliged to pay the customer 5% of the price of the non-delivered products for the first day of delay and, if the delay is more than one month, an additional penalty of 5% of the price of the products not delivered during the month following the delivery period. The obligation to pay the periodic penalty payment for the first day of delay shall be reduced to 0,5% of the price of those undelivered products which the supplier has subsequently completed no later than 15 days after the agreed delivery period. '
25. Paragraph 213 (4) reads as follows:
"(4) In the case of supplies of products the price of which is made up of an agreement between the supplier and the customer, the delivery order may only be issued if the agreement on the amount of the price and, where appropriate, the agreement on how the price is determined, unless the provisions on prices provide otherwise. '
26. the following paragraph is added to Paragraph 213:
"(5) If the delivery order does not comply with the conditions set out in paragraphs 1 and 4, it shall be invalidated and shall be deemed to be a draft economic contract, unless otherwise required by the agreement to be reached when the contract is concluded. The supplier shall be obliged to return the invalid delivery order to the customer within 10 days of receipt if the economic contract is concluded. '
27. Article 283 (1) reads as follows:
"(1) The subject-matter and time of execution shall be agreed if the agreement is at least in such detail as is appropriate to the documentation transmitted. ';
Article 28 (290) reads as follows:
If the delivery has isolated minor defects or isolated minor unfinished matter which, in itself or in combination with others, does not prevent the entry into service (use) and does not make the operation (use) difficult, the customer is obliged to take over the delivery. A supply whose defects prevent the entry into service (use) shall not be taken over. '
29. Paragraph 291 becomes paragraph 1 and the following paragraph is added:
"(2) The provisions of paragraph 1 shall not apply if the supplier, at the start of the relevant work, knew or had to know about defects in materials, machinery, equipment or defects in the project documentation concerning his supply and customer for defects, or if the supplier has provided incorrect project documentation for the processing of the project documentation. ';
30. Article 295 (1) reads as follows:
"(1) A supplier who is late in complying with the delivery obligation is obliged to pay the customer a penalty of 0,5% of the delivery price for each month of delay. However, for the supply of sets of machines and equipment which are fully or partly dealt with as tasks of the State Research and Development Work Plan, organisations may negotiate property sanctions differently. '
31. The following shall be inserted after Paragraph 320:
Where some of the activities of the investor are carried out by another organisation (e.g. an engineering or project engineering organisation), the provisions of this Title shall also apply to that organisation when dealing with the investor. ';
32. The following shall be inserted after Paragraph 356:
"Competition
(1) An organisation which declares a tender for a particular product, work or performance must define in the notice the subject matter and time of the competition, the amount of any remuneration, the method of evaluation of the competitive proposals and other conditions of competition.
(2) The conditions of the tender must be laid down in writing and published in an appropriate manner. An organisation that has announced a tender may use competition proposals only under competitive conditions.
(3) The organisation which has declared the competition is obliged to grant the announced remuneration to those organisations which, according to the evaluation carried out, met the conditions of the competition.
(4) An organisation which participates in a tender shall be entitled to reimbursement of the costs associated with the submission of a tender only if the conditions of competition so provide.
(5) Public competition can only be withdrawn for serious reasons. The appeal must be made in the same way as the competition has been announced or in another equally effective way. If the invitation to tender is withdrawn, the organisation which has declared it shall be obliged to reimburse the costs incurred by the organisations which have fully or partly fulfilled their conditions before the withdrawal of the competition.
If an organisation declares competition for the most appropriate proposal to conclude a contract, it shall call for proposals to conclude the contract. An organisation which has submitted a competitive proposal (tender) shall be bound by it for the period specified in the proposal but at least for the period specified in the terms of the competition. The organization that announced the competition will only make a commitment by adopting a proposal.
Closer competition
If organisations declare a closer competition, only invited organisations may participate. The conditions of the narrower competition shall not be published. Otherwise, the tender clause shall apply mutatis mutandis to narrower competition.
Public promise
(1) The public promise is committed to an organisation which has declared publicly that it will pay the remuneration or provide other performance to an organisation which will fulfil the conditions laid down in the public promise.
(2) If the terms of the public promise do not specify anything else, the organisation which will meet them first shall receive the remuneration.
(3) If the conditions of public promise are fulfilled at the same time by several organisations and the content of the conditions indicates that only one reward is to be awarded, the remuneration shall be distributed equally between them. '
33. The following shall be inserted after Paragraph 360:
"Interest and special purpose contracts
(Association agreements)
(1) The Treaty on Association obliges socialist organisations to combine their activities or part of their means of achieving a specific purpose, or in any other common interest.
(2) The association agreement shall define the activity which is the subject of the grouping, the manner in which it is implemented, the rights and obligations of the organisations involved, the amount of the shares by which the organisation contributes to the costs of carrying out the agreed activity and the consequences of the breach of the contractual obligation.
(3) An association agreement will be established if the agreement on its whole content is reached. The validity of the contract requires written form and approval of the superior body (s); If the organisations pool funds, they also approve the Czechoslovak State Bank. The competent authority (s) may require organisations to conclude a contract for the association if it is in the interest of developing the national economy to carry out certain activities from one place (gesture).
(4) A new socialist organisation may be established under the association agreement if the central administration responsible for the activities of the established organisation so agrees. That authority shall also approve the status or statutes of the established organisation and amend them and shall act as economic management body against the organisation. If it is the responsibility of giving consent to the establishment of an organisation to several central government bodies, these bodies shall agree which of them shall act as economic management body vis-à-vis the established organisation. The established organisation shall be entered in the company register. The members of the association shall be jointly and severally responsible for the obligations of the organisation, unless the assets of the organisation are sufficient to cover them; unless otherwise provided for in the contract, they shall settle among themselves according to the amount of their shares.
(5) The association agreement is terminated by agreement between the participating organisations or in the cases provided for in the contract. An organisation created under a contract of association may also be abolished by the authority which exercises the function of economic management over it. '
34. The following shall be inserted after Paragraph 361:
In their management, organisations may use the repayable funds provided in the form of loans by the bank or other monetary organisations or authorities authorised to provide loans under the legislation. Other organisations shall not provide each other with such means unless otherwise provided for in the legislation. '
35. The following shall be inserted after Paragraph 378:
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Regulation Information
| Citation | Act No. 138 / 1970 Coll., amending and supplementing certain provisions of the Economic Code |
|---|---|
| Regulation Type | - |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 28.12.1970 |
|---|---|
| Effective from | 01.01.1971 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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