Government Decree No. 33 / 1955 Coll.

Regulation on economic contracts

Valid Effective from 20.07.1955
33.
Government Regulation
of 28 May 1955
on economic contracts.
The Government of the Czechoslovak Republic orders, with the agreement of the President of the Republic pursuant to § 15 paragraph 1 of Act No. 12 / 1955 Coll., on the State Plan for the Development of the National Economy of the Czechoslovak Republic for 1955:

Část prvá.

Initial provision.
§ 1.
The supply and procurement of products, works and performance required to fulfil the national economic development plan shall be subject to economic agreements specifying the tasks set out for each supplier and customer and organising their relations.
§ 2.
(1) Economic, budgetary and other organisation of the socialist sector are obliged to conclude economic contracts in accordance with the plan.
(2) Economic contracts are not concluded only where they are so expressly provided for or where other means of delivery and collection obligations are prescribed. The provisions of this Regulation shall apply mutatis mutandis to such commitments. The single agricultural cooperatives do not conclude economic agreements.
(3) Exemptions from the obligation to conclude economic contracts may provide for the main arbitration of the Czechoslovak Republic.
§ 3.
(1) As a rule, framework, partial and direct contracts are concluded.
(2) Framework contracts are concluded by framework suppliers and framework customers designated by the relevant ministries in agreement with the main arbitration of the Czechoslovak Republic. Framework contracts shall provide for deliveries and withdrawals of products to individual suppliers and customers, as well as for quarters, and shall determine who to conclude sub-contracts with and for which quantities.
(3) Sub-contracts shall be concluded by suppliers and customers identified in the framework contract. The framework contracts shall be implemented by the works contracts and shall provide detailed arrangements for the supplies and purchases of products which are attributable to individual suppliers and customers. Sub-contracts shall be concluded for the year-round period and for all quantities of products to be delivered and withdrawn under the framework contract during the annual planning period between the same suppliers and customers.
§ 4.
(1) Other forms of economic contracts may be used instead of framework contracts and sub-contracts. These are, for example, direct, joint, seasonal, short-term, one-off transactions and such. These forms of economic contracts are used when, in view of the organisation of individual sectors of the national economy, the characteristics of the products supplied or the way in which they are supplied, they are needed to organise more effectively the relationship between suppliers and customers. More detailed regulations on these contracts will be issued by the main arbitration of the Czechoslovak Republic.
(2) Direct contracts shall be concluded by direct suppliers and customers, if they are not framework contracts. Direct contracts may also be concluded for longer than annual periods. There are several suppliers or customers in share contracts as unit-holders, each of which is responsible only for the supply or collection of the proportion of products it has taken over in the conclusion of the contract. Seasonal contracts shall provide for the delivery and collection of products for less than the annual seasonal season. One-off contracts shall not exceed the annual planning period and shall be concluded on one-off deliveries.
§ 5.
The authorities which shall breakdown the tasks of any part of the plan or framework contract shall be required to carry out the breakdown in a timely, correct and complete manner.
§ 6.
In the event of changes to the plan or framework contracts, changes in the organisation or in the activities of the Contracting Parties and of the Parties to the amendment, the Parties to the amendment shall be obliged, at the same time as the amendment, to take measures to ensure that economic contracts are fulfilled, amended or cancelled, or new economic contracts are concluded.
§ 7.
Products delivered under economic contracts shall be used by customers for the purposes set out in the plan.

Část druhá.

Specific provisions on economic contracts.
§ 8.
The content of the economic contracts and the procedure for their conclusion, performance, changes, cancellations and adjustments to the basic conditions of supply (basic conditions of collection). The second part of this Regulation applies only if the basic conditions of delivery (basic conditions of collection) or the general rules of the main arbitration of the Czechoslovak Republic are not otherwise established.
§ 9.
Framework contracts shall be concluded no later than 30 days and partial, direct and unit-holders' contracts no later than 60 days from the date of approval of the plan by the Government. The other contracts shall be concluded within 30 days of the date on which the parties knew to conclude the contract.
§ 10.
(1) The supply ministries (central authorities) are obliged to notify the customer ministries (central authorities) of the amount of the funds centrally planned (products decentralised planned on the production main management) within 5 days of the date of approval of the plan by the government.
(2) If the customer ministry has more than one framework contra-hents, it is required to send an extract of this schedule to the relevant supplier ministry at the same time as the breakdown of the funds to its framework contra-hents.
§ 11.
(1) The Framework Buyer and, where direct contracts are entered into on centrally divided funds, the Customer Ministry or its body, are required to deliver to the Framework Supplier the breakdown of the Funds in the group range to individual sub-direct customers, indicating the annual and quarterly rates. This schedule must be delivered no later than 7 days from the date on which the supplier's ministry notified the customer's Ministry of the amount of funds to the centralised planned products (products decentralised planned on production main management).
(2) A group product range is defined as the designation according to the list of the products to be incorporated, for other products the designation according to the nomenclature of the supply ministry for the submission of requirements, unless the supply ministry agrees with the customer ministry on a different breakdown.
§ 12.
The following rules shall apply to the conclusion of economic contracts for the supply and purchase of products:
(a) the framework contractor is obliged to send a draft contract to the framework customer, as recommended in two signed copies (in the case of the supply of products of a investment nature in three copies) no later than 10 days from the date of receipt of the breakdown of the funds to sub-customers;
(b) the framework buyer must sign the contract no later than 8 days after the date of receipt of the proposal and return it to the framework contractor as recommended;
(c) the partial (direct) supplier is obliged to send a draft contract to the customer, as recommended in two signed copies (for the supply of products of a three-copy nature) no later than 45 days after the date of approval of the State Plan by the Government;
(d) the partial (direct) buyer must sign the contract no later than 10 days after the date of receipt of the draft and return it to the subcontractor as recommended;
(e) If the customer does not agree (framework, partial, direct) with the draft contract, he shall add to the signed contract an inventory of the amendments which he proposes and forward together with the signed contract recommended by the supplier. The list of amendments shall include the customer's text of those provisions which he does not agree with, after which the contract is to be supplemented. The list of amendments must be numbered in the same way as in the contract and the list must be signed. The connection of the inventory of changes does not relieve the customer of the obligation to sign the contract. However, in the case of its signature, it shall note that it attaches to the contract an inventory of amendments;
(f) if the customer has added a list of changes to the contract, the supplier shall, within 10 days of the date of receipt of the contract of changes, remove all discrepancies in the contract with the customer and, if no agreement is reached, submit non-agreed discrepancies in the next 5 days to the relevant arbitration authority. If they do not, they have accepted the changes proposed by the customer.
§ 13.
If the plan has been amended, the parties are obliged to make appropriate amendments or cancellations of economic contracts as soon as they have learned of the change of plan. Paragraph 10 to 12 shall apply mutatis mutandis to their practice.
§ 14.
(1) Economic contracts are concluded on the basis of the plan and the basic conditions of delivery (basic conditions of collection).
(2) The provisions binding on both parties may provide that prior contracts shall be concluded before the plan is approved. Preliminary contracts shall be linked to the state of the planning works at the time of conclusion of these contracts. Unless otherwise specified, the provisions on contracts shall apply mutatis mutandis to them.
§ 15.
Framework contracts shall include in particular:
(a) the quantity and group range of products to be supplied and the distribution of the total quantity of products between suppliers and customers (year-round and quarterly breakdowns);
(b) the manner and time limits for the submission of specifications and transport needs;
(c) the structure of contractual relations, i.e. an accurate indication of the economic, budgetary or other organisation of the socialist sector to be concluded between them;
(d) property penalties for non-compliance with the obligations under the framework contract (non-implementation of the breakdown of the framework contract and below) and for late conclusion of sub-contracts, non-submission of specifications and below.
§ 16.
The sub-direct contracts shall include in particular:
(a) the quantity and range of products to be delivered and the distribution of the total quantity of products into quarterly shares;
(b) the manner and time limits for the submission of specifications and transport needs;
(c) the quality and completeness of the products (number and date of the national standard or technical conditions, if they need not be attached to the contract);
(d) delivery periods;
(e) the financial volume of the contract;
(f) the method of settlement;
(g) property penalties for failure to comply with the contract.
§ 17.
The reservation of random or other unforeseen circumstances shall not be taken into account.
§ 18.
Economic contracts shall be concluded, amended and cancelled in writing.
§ 19.
(1) The quantities of products must also be expressed in the economic contract in the units in which the products are planned (weight, length, volume, etc.).
(2) In framework (direct) contracts, the quantity of products must be determined in accordance with the plan, in subcontracts in accordance with the framework contract. Derogations may be agreed only after the plan has been amended, after the breakdown of the framework contract.
§ 20.
Economic contracts shall not be concluded on the retail scope of supply. The retail supply range and the smallest supply quantities shall be determined by the supplier ministries in agreement with the customer ministries; If this is not the case, the retail scope and the smallest supply quantities shall be determined by framework counterparties (central authorities) in the contract or in the breakdown of the funds.
§ 21.
Delivery periods shall be set in such a way that the plan is implemented evenly. Partial (direct) contracts (specifications) must specify delivery periods within the quarter for at least months. In addition to the final delivery period for the whole product, delivery periods for each part may be set for particularly complex products. In the case of seasonal products, delivery periods shall be set to ensure the timely use of the products during the relevant season. Early deliveries may be made only with the consent of the customer.
§ 22.
Unless otherwise provided in the economic contract, the customer may refuse to accept part of the products for which the supplier has exceeded the delivery deadline when supplying products to market funds after prior written notice by the supplier. For other products, the customer may do so only after 30 days after delivery. The refusal shall be effective only if the notification of the refusal has been received by the supplier before the shipment of the products. The refusal of late delivery shall not render the property liable for failure to fulfil the contract.
§ 23.
The place and time of completion shall be specified in the economic contract at the latest.
§ 24.
The quality of the products must be determined in accordance with national standards, in the case of approved technical conditions. Where national standards have not been issued or technical conditions have been approved, quality may be determined according to section standards, samples, collections, specifications of essential characteristics, analyses, quality labels and such as. If the quality is agreed upon according to the samples, the stamped and sealed samples shall be stored on both sides.
§ 25.
The product range must be specified for the entire duration of the contract. The economic contract may provide that the parties shall specify the range of quarterly specifications. In this case, the procedure and deadlines for the negotiation of specifications will also be agreed in the economic contract. The agreed specifications are part of an economic contract.
§ 26.
The supplier is obliged to deliver the products complete with all necessary parts, even if these parts do not produce themselves.
§ 27.
(1) Prices are determined in accordance with the price regulations in force on the date of conclusion of the contract, unless later price provisions provide that prices are to be charged otherwise.
(2) If the economic contract refers to fixed prices, these prices must be indicated. Where reference is made to the price list, the date of approval and the price list number shall be indicated.
(3) Where prices are not set, they shall be determined by the parties in accordance with the relevant rules in the economic contract.
(4) Indicative prices based on actual costs (resulting calculations) are only allowed for products first produced in the country (in development). In such a case, however, the contract must specify the method and time limit of the definitive pricing agreement.
§ 28.
Property sanctions shall be laid down in the contract as follows:
(a) a supplier who does not deliver the products at all or deliver only part of the quantity agreed on within the contractual delivery period shall be obliged to pay the customer, for each day of delay, a penalty payment of 0,05% of the price of the products not delivered on the last delivery date, but no more than 30 days. If the delay lasts more than 30 days, the supplier shall pay the customer a one-off penalty of 5% of the price of the non-delivered products;
(b) a customer who does not withdraw the products at all within the agreed delivery period, withdraws only part of the quantity agreed or makes it impossible to deliver the products on time shall be obliged to pay a periodic penalty payment of 0,05% of the price of the products not taken at the last delivery date but no more than 30 days. If the delay lasts more than 30 days, the customer is obliged to pay the supplier a one-off penalty of 5% of the price of the non-recovered products.
§ 29.
A periodic penalty payment or fine shall also be provided for in the economic contract for infringements of other obligations imposed on the parties by the economic contract. In such cases, the amount of periodic penalty payments or fines shall be graduated according to the importance of the supply, the nature of each contractual obligation and the degree of non-compliance.
§ 30.
(1) A Party which has not complied with any of the time limits laid down for the procedure for the conclusion, amendment or termination of a framework contract is required to pay the other Party a fine of 200, - CZK for each day of delay, but not more than 4000, - CZK. In the case of other contracts, the fine shall be 100 CZK for each day of delay, but no more than 2000 CZK.
(2) The framework contra-hent, which has drawn up the framework agreement late, incomplete or incorrectly, is obliged to pay the second framework contra-hent a fine of 200, - Kčs for each case and day of delay, but no more than 4000, - Kčs. The same is true of the authorities which are dividing the plan into direct contrahents. For the schedules made by the Regional National Committees, these fines shall apply to the respective administrations (trade unions) of the Regional National Committees.
(3) A framework contra-hent which, at the same time as the change in the plan, the change in the framework contract, the change in the organisation of the Contracting Parties and the change in the organisation of the Contracting Parties, has not taken measures to ensure that the economic contracts are fulfilled, amended or cancelled, or other economic contracts are concluded, is obliged to pay the second framework contra-hent for each case and day of delay a fine of 200, - Cčs, but not more than 4000, - Cčs. The same applies if the Party to which the amendment relates infringes these obligations.
§ 31.
Entitlement to property sanctions, after the full amount of property sanctions, shall not be granted to a party which has, in whole or in part, made it impossible to fulfil an obligation or obligation.
§ 32.
The Party shall not waive the obligation to comply with the contract by paying property penalties.
§ 33.
In the event of non-compliance with supplies or withdrawals of products to be carried out under an economic contract in at least two delivery periods of the relevant contract period, the basis for calculating the periodic penalty payments shall be determined by including supplies only when the obligation of the previous period of the current year is fully fulfilled. This is not the way in which products are disposed of according to government-approved operational balances and products delivered in shorter than monthly delivery periods.

Část třetí.

Specific arrangements for commitment between economic, budgetary and other socialist sector organisations.
§ 34.
(1) Entitlements from obligations between economic, budgetary and other socialist sector organisations shall cease within one and a half years of the date on which the entitlement is established.
(2) The claims for liability for defects, claims for property penalties and reimbursement of the price paid for defective products not received shall cease six months after the date on which the entitlement is acquired.
(3) Where, in respect of certain entitlements, general or specific provisions provide for shorter periods for their termination or shorter limitation periods, such entitlements shall cease to exist within such shorter periods.
(4) If arbitration or judicial proceedings have been initiated within the time limit set for the termination of the rights, the proceedings shall not cease until the proceedings have ceased and the party shall proceed accordingly.
(5) A decision may be taken only if the party concerned requests that it be enforced within one year of the legal authority of the decision.
§ 35.
(1) The transactions made in the current year are to be counted against the performance of contracts concluded for that year. Supplies from contracts concluded for the preceding year shall not be permitted to be delivered in the current year.
(2) The date of approval of the plan by the Government shall cease to be the date of expiry of all obligations to supply and purchase the products if they are in conflict with the plan. This is without prejudice to claims for damages.
(3) The legal consequences of non-compliance with economic contracts concluded for the preceding year continue to exist.
§ 36.
The immunity, reduction or netting of property penalties between the Parties shall be void.
§ 37.
If a Contracting Party again, whether it is in breach of obligations with the same or with another Party, the arbitration authorities may increase the penalty or fine.
§ 38.
Quantitative and qualitative acceptance must always be made when products are delivered under economic contracts.
§ 39.
A Party which, in breach of an undertaking which ensures that the plan is implemented, damages another Party shall be liable if it fails to prove that it has not caused the damage. Damage is only paid if it is not covered by property sanctions. When determining the amount of compensation, account shall be taken of whether the injured party has done whatever is necessary to reduce or avert the damage.

Část čtvrtá.

Power.
§ 40.
(1) The main arbitrator of the Czechoslovak Republic issues general provisions on economic contracts, including provisions on quantitative and qualitative acceptance of products and on liability for defects of products.
(2) The supplier ministries, in agreement with the customer ministries - and with the approval of the Government, if the Government has reserved approval - issue provisions on the basic conditions of supply governing issues common to all suppliers and customers of a particular product type. For the supply of market funds and for the supply of goods for export, the customer ministries may issue, in agreement with the ministries, basic terms of supply.
§ 41.
Main Arbiter of the Czechoslovak Republic:
(a) issue directives for the preparation of basic supply conditions (basic collection conditions);
(b) ensure that cooperation between ministries is reconciled in the development of basic delivery conditions (basic collection conditions) and in the identification of framework contra-hents;
(c) give opinions on the draft basic terms of supply (basic terms of collection), the approval of which has been reserved by the Government;
(d) issue guidelines for the conclusion of economic contracts for each year;
(e) monitor the state of conclusion and execution of economic contracts.

Část pátá.

Transitional and final provisions.
§ 42.
Where the existing provisions on limitation periods or termination of entitlement provide for a period longer than those laid down in paragraphs 1 and 2 of Paragraph 34, the rights for which those time limits have started to run before the application of this Regulation shall cease to exist and shall expire at the latest by the expiry of the time limits laid down in paragraphs 1 and 2 of Article 34, calculated since the entry into force of this Regulation.
§ 44.
All provisions are repealed if they contravene this Regulation, in particular the provisions of Act No. 99 / 1950 Coll., on Economic Contracts and State Arbitration.
§ 45.
This Regulation shall enter into force on the day of its publication; All members of the government will do it.
Zaporocký v. r.
Broad v. r.
Dr Dolansky v. r.
Maj-Gen Dr. Cap v. r.
Kopecký v. r.
Ing. Jankovcová v. r.
Dr Skoda v. r.
Bark v. r.
Ing. Shimonek v. r.
Dr Kylý v. r.
Plojhar v. r.
Dr. Nove v. r.
David v. r.
Děuriš v. r.
Krajčir v. r.
Kromir
Machachová v. r.
Dr. Unedible v. r.
Polack v. r.
Stoll v. r.
Uher v. r.
Lamb
Jonah v. r.
Reitmajer v. r.
Smida v. r.
Dr Bartuška v. r.
Dvořák v. r.
Dr Kahuda v. r.
Malek v. r.
Maurer v. r.
Dr Neuman v. r.
Nosek v. r.
Pospíšil v. r.
Ing. Púčik v. r.

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Regulation Information

CitationGovernment Decree No. 33 / 1955 Coll., on Economic Contracts
Regulation Type-
Author-
CollectionCode of Laws
Date of Promulgation20.07.1955
Effective from20.07.1955
Effective until-
Status Valid
The regulation text is for informational purposes only.
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