Act No. 69 / 1958 Coll.

Law on Economic Relations between Socialist Organisations

Valid Effective from 01.01.1959
Contents
ČÁST PRVNÍ Oddíl I § 1 § 2 Oddíl II § 3 § 4 § 5 § 6 § 7 § 8 § 9 § 10 § 11 § 12 § 13 § 14 Oddíl III Hlava 1 § 15 § 16 § 17 § 18 § 19 § 20 § 21 § 22 § 23 § 24 Hlava 2 § 25 § 26 Hlava 3 § 27 § 28 § 29 § 30 § 31 § 32 § 33 § 34 Hlava 4 § 35 § 36 § 37 § 38 § 39 Hlava 5 § 40 § 41 § 42 § 43 § 44 § 45 Oddíl IV § 46 § 47 § 48 § 49 § 50 Oddíl V Hlava 1 § 51 § 52 § 53 § 54 § 55 § 56 § 57 § 58 Hlava 2 § 59 § 60 § 61 § 62 § 63 § 64 § 65 Hlava 3 § 66 § 67 § 68 § 69 § 70 § 71 § 72 Oddíl VI Hlava 1 § 73 § 74 § 75 § 76 § 77 § 78 § 79 § 80 § 81 Hlava 2 § 82 § 83 § 84 § 85 § 86 § 87 ČÁST DRUHÁ Oddíl I Hlava 1 § 88 Hlava 2 § 89 § 90 § 91 § 92 Hlava 3 § 93 § 94 § 95 § 96 Hlava 4 § 97 § 98 § 99 § 100 § 101 § 102 § 103 § 104 § 105 § 106 § 107 § 108 § 109 § 110 § 111 § 112 § 113 § 114 § 115 § 116 Hlava 5 § 117 § 118 Hlava 6 § 119 § 120 § 121 § 122 § 123 § 124 § 125 § 126 § 127 § 128 § 129 § 130 § 131 § 132 § 133 § 134 § 135 § 136 § 137 Hlava 7 § 138 § 139 § 140 § 141 § 142 § 143 § 144 § 145 Oddíl II Hlava 1 § 146 § 147 § 148 § 149 § 150 § 151 Hlava 2 § 152 § 153 § 154 § 155 § 156 § 157 § 158 § 159 Hlava 3 § 160 § 161 Hlava 4 § 162 § 163 § 164 § 165 § 166 § 167 § 168 § 169 § 170 § 171 § 172 § 173 § 174 § 175 § 176 Hlava 5 § 177 § 178 § 179 Hlava 6 § 180 § 181 § 182 § 183 § 184 § 185 Hlava 7 § 186 § 187 § 188 § 189 ČÁST TŘETÍ § 190 § 191 § 192 § 193 § 194 § 195 § 196 § 197 § 198 § 199 § 200
69
Law
of 17 October 1958
on economic relations between socialist organisations
The National Assembly of the Czechoslovak Republic decided on the following Act:

ČÁST PRVNÍ

GENERAL PROVISIONS

Oddíl I

Preliminary provisions
§ 1
Economic relations between socialist organisations arising from the implementation of the state plan for the development of the national economy are regulated and ensured by binding legal conditions under this law.
§ 2
(1) This Act regulates the obligations between socialist organisations arising from economic contracts, official measures, decisions of the arbitration authorities, damages, unjust enrichment, liability for defects of performance or other facts referred to in this Act or in implementing regulations. Paragraph 82 to 87 also applies to other obligations between socialist organisations.
(2) The Act does not apply to the obligations arising from the implementation of the transport arrangements (conditions) and to the obligations in which at least one of the parties is a single agricultural cooperative. However, the Government may extend its effectiveness to such obligations in whole or in part.

Oddíl II

Basic provisions
§ 3
Socialist organisations are obliged to cooperate and assist each other in implementing the national development plan for the national economy. If necessary, they shall, according to their circumstances and economic possibilities, protect the objects of socialist property, even if they are not in their administration (ownership), and contribute to ensuring the implementation of the national plan for the development of the national economy, even if they are not required to perform tasks themselves.
§ 4
Commitments between socialist organisations must comply with the laws and principles of the economic policy of the Czechoslovak Republic, in particular with the needs of the planned proportional development of the national economy and the principle of economy.
Legal acts of socialist organisations
§ 5
(1) The organisations shall act by their authorities or their representatives. The representative may appoint an additional representative only if the representative organisation has given its express consent.
(2) Those responsible for carrying out specific tasks within the framework of the organisation's activities shall be entitled to all the tasks normally carried out.
§ 6
(1) If the authority exceeds the limits of its authorisation in a legal act, the legal act shall be void only if the other organisation knew or had to know about the excess.
(2) If a representative exceeds the limits of his authorisation in a legal act, the legal act shall be void unless the excess is subsequently approved by the body of the represented organisation. The excess shall be deemed to have been approved if the represented organisation has, on the basis of such a legal act, commenced or accepted the performance of the other organisation. The excess of the specific instructions given by the representatives of the organisation shall not affect the validity of the legal act adopted by the representative if the latter has not been known to the other organisation.
(3) The organisation is not liable for damage caused to another organisation as a result of the annulment of the act referred to in the preceding paragraphs.
§ 7
(1) The legal acts covered by this Act are invalid if they are contrary to law, the principles of economic policy of the Czechoslovak Republic or do not comply with the performance of the tasks of the organisation.
(2) Where performance has been initiated on the basis of a legal act which is invalid pursuant to paragraph 1, all that has been or is to be implemented by an organisation which knew or had to know at the time of the legal act of invalidity must be put into the State budget. Instead of non-cash execution, its monetary value shall be entered in the budget.
§ 8
Where the reason for the annulment concerns only part of the legal act, this shall not affect the validity of the remainder of the act; However, if, in view of the needs of the planned proportional development of the national economy, one part cannot be separated from the other, the whole legal act shall be invalid.
§ 9
The expression of will must be interpreted in accordance with the needs of the planned proportional development of the national economy.
§ 10
In the case of economic contracts and other agreements between organisations, the written form shall apply unless otherwise specified in other provisions or implementing provisions. The requirement of a written form is fulfilled even if the expressions of will were made in different documents, in particular in letters.
Time counting
§ 11
(1) The period of time determined according to the days shall begin on the day following the event which is decisive for its beginning.
(2) The end of the period determined according to weeks, months or years shall be the same as the date on which the event starts. If it is not such a day in the last month, the deadline will end on the last day of the month.
§ 12
(1) Half of the month is 15 days, at the centre of the month on the 15th day.
(2) If the deadline is set for one or several months and a half months, 15 days shall be the last time.
§ 13
If the time limit has been extended, the new time limit shall be deemed to begin on the day following the end of the initial time limit.
§ 14
(1) The rights of acquisition of which are linked to a particular day are acquired at the beginning of that day. The legal consequences of late payment or late payment shall be the end of the last day of the period. However, if only a certain period of the day is intended for speech or performance, or the usual period of the day is determined, such speech or performance may be given only in time at that time.
(2) If the last day of the period intended for expression or performance falls on the day of work, the last day of the period shall be the closest to the next day of work, unless otherwise provided for in the legislation.

Oddíl III

Hlava 1

Liabilities under economic contracts
§ 15
(1) Economic contracts, as provided for in this Act or in the implementing rules, are concluded between organisations on the supply of products, on labour and performance and, where appropriate, on other means of cooperation needed to implement the national economic development plan.
(2) Unless further provisions or implementing provisions provide otherwise, the provisions of this Title shall apply to the conclusion of economic contracts.
§ 16
Establishment of an economic contract
An economic contract shall be established by the adoption of a draft contract, or, where appropriate, under the conditions laid down below, by a decision of arbitration.
Adoption of a draft contract
§ 17
The draft contract shall be accepted if it contains acceptance of all the essential elements of the contract. The essential elements are the identification of the subject and time of execution; an indication of the price is an essential requirement only if one of the organisations declares it such a requirement. If the reply to the draft contract contains an amendment or supplement to the essential requirement, it shall be deemed to be a refusal and a new one.
§ 18
If the draft contract expressly permits it, the organisation to which it is addressed may accept it instead of a written statement by acting within the time limit for its adoption.
Deadline for adoption
§ 19
An organisation which has set a deadline for admission in the draft contract shall be bound by the proposal by the deadline.
§ 20
If the application does not specify a time limit for adoption, the proposing organisation shall be bound for a period of one month from the date of dispatch of the application, but no later than the end of the period within which it is to be fulfilled according to the proposal.
§ 21
If the speech of acceptance is made only after the period during which the proposing organisation is bound, the contract shall be concluded if the proposing organisation has not notified the organisation which has been designated by the proposal of its refusal to accept the proposal as late without undue delay.
§ 22
Withdrawal of the application and withdrawal of acceptance
(1) The draft contract shall cease to be withdrawn only if the appeal is made at the latest at the same time as the proposal. The appeal made orally, by telephone or telegraphically shall also be confirmed in writing without undue delay.
(2) Paragraph 1 shall apply mutatis mutandis to the withdrawal of acceptance.
§ 23
Obligation to conclude economic contracts
(1) An organisation (supplier, customer) is required to conclude an economic contract in cases where this law or implementing provisions expressly so provide.
(2) The supplier is obliged to conclude an economic contract at the customer's request,
(a) if products, works or performances are ordered in due time on the basis of a capacity contract or relevant planning documents;
(b) if the products, works or performances are ordered in time and intended for centralised investment construction, for a task determined by the government or for the security of State defence;
(c) where products, works or performances intended for export are concerned,
(d) if the subcontracting required for the products, work or performance referred to in (b) and (c) is ordered in good time.
§ 24
Arbitration decision on the content of the contract
(1) If an organisation on the content of a contract other than the essential elements of the contract is not assessed (Paragraph 17), the organisation whose proposal has been accepted may apply for a decision within a month of receipt of the application. If they do not do so, the contract with amendments or additions with which her proposal was adopted shall apply.
(2) In cases where there is an obligation to conclude an economic contract, an organisation which is entitled to require the conclusion of an economic contract may request that the full content of the economic contract be determined by an arbitrage decision. In doing so, the arbitration shall take particular account of the comments of the competent authorities.
(3) If part of the content of the contract is determined by the arbitration decision, the effectiveness of that part shall take place at the same time as that agreed by the arbitration decision, unless otherwise specified in the arbitration decision.

Hlava 2

Liabilities under official measures, arbitration decisions and other legal matters
§ 25
If the needs of the planned proportional development of the national economy, state discipline or other important reasons so require, the central authorities and the authorities or bodies empowered by them may require subordinate organisations to conclude contracts or directly impose obligations on them. In the case of organisations subordinate to different central offices or bodies, prior agreements of authorised authorities shall be required. For the same reasons, arbitrage may impose an undertaking on the parties to the arbitration proceedings. The admissibility of the derogation provided for in this Act or in the implementing rules shall also apply to such official measures and arbitration decisions.
§ 26
Implementing rules may provide for other legal elements which give rise to commitments between organisations.

Hlava 3

Liabilities arising from damages
§ 27
(1) An organisation which has caused damage to another organisation by violating an obligation laid down by this law or implementing legislation or by violating another legal obligation to establish a national plan for the development of a national economy or to ensure that it is implemented shall be obliged to make good the damage, unless it proves that it has not caused it.
(2) The organisation shall only be liable for damage caused without fault if it is expressly provided for in this Act or in the implementing rules.
§ 28
(1) The fault of the organisation shall be considered to be the fault of the organisation, with the exception of the one referred to in Paragraph 6 (3), not only the fault of its bodies, but also the fault of its employees (members) in carrying out the obligations arising from the tasks of the organisation.
(2) Persons whose fault is attributed to an organisation correspond only to that organisation, under special rules.
§ 29
Where several organisations are liable for damage, each shall be liable to the extent of its fault. If the guilt rate cannot be established or if there is no liability, they shall be equal in proportion. Implementing rules may provide for something else.
§ 30
If the injured organisation was also liable for damage, in particular by not losing any reduction or reversal, it shall bear the damage in proportion.
§ 31
An organisation which uses other organisations or persons to perform its tasks shall be responsible for the damage caused by such organisations or persons to a third organisation (§ 27 (1)) unless it proves that they have not caused the damage. He shall be entitled to compensation against other organisations and persons for whom he is responsible.
§ 32
The damage is replaced by an indication in the previous situation and, if not possible, in the money.
§ 33
It is replaced by what the property of the damaged organisation has diminished by a harmful event. What the injured organisation would have achieved on a regular basis if there had been no harmful event is replaced only if the damage was caused intentionally or through gross negligence and, moreover, where the legislation so provides.
§ 34
(1) If it is not possible, precisely or without disproportionate difficulty, to establish the level of damage, the arbitrage shall be determined by free consideration.
(2) Damage compensation shall be charged to property penalties, interest on late payments and, where applicable, late payment fees which have been incurred by the injured organisation as a result of failure to comply with an obligation in respect of which damage has been caused.
(3) If the nature or degree of fault so justifies, the importance of the damage and its compensation or other circumstances of particular concern, the arbitrage may reduce the compensation accordingly.

Hlava 4

Undue enrichment liabilities
Unfounded performance
§ 35
(1) An organisation which has accepted transactions for which there is no legitimate reason shall issue them to the organisation which has provided the transactions. In particular, it is required to issue a performance which another organisation has provided it only in error that it is obliged to do so, or only if it has incurred such an obligation in the future, but which has not happened, or a performance for which, after it has been granted, a recognised reason has been waived.
(2) If it has been implemented on the basis of an economic contract which has been invalid or has ceased to be a legal relationship based on it, in particular because one of the organisations has exercised the right to withdraw from the contract, each of the organisations is obliged to publish everything that has been carried out on the basis of such a contract in such a way that none of the organisations receives any harm to the other.
§ 36
(1) An organisation committed to the issue of a performance is obliged to return the subject matter of the performance with accessories and additions and to provide adequate compensation for wear. If return of the subject of performance is not possible, in particular if work or performance has been carried out, the organisation shall replace the price according to the time of receipt of the performance. The organisation shall also issue or replace, where appropriate, the benefits it has benefited from or neglected to benefit from, since it has been able to recognise the unfounded nature of the performance. If the subject-matter of the transaction has been used after the organisation has been able to identify the inadequacy of the transaction, it shall also provide adequate compensation for the use. Cash payments shall be refunded with legal interest from the date of receipt.
(2) An organisation which is obliged to issue a performance may require reimbursement of the necessary costs incurred, even if it replaces only the price. It shall have the right to reimbursement of the costs of use only if it has been incurred before it has been able to ascertain the unfounded nature of the performance. If the organisation only replaces the price, it can count the costs incurred.
Use of the case and costs incurred for another organisation
§ 37
An organisation which has incurred costs pursuant to Article 3 may claim compensation for the organisation for which it has acted, even if that benefit has not occurred or has been thwarted. Where it has applied its case, it may also request reimbursement of the price it had at the time of its application, unless recovery is possible.
§ 38
Each of the organisations that has benefited from the fact that a cause has been sacrificed in common to avert greater damage is obliged to give a proportional compensation to the organisation to which the matter belonged.
§ 39
An organisation which was entitled to take the costs of another organisation shall be liable for compensation.

Hlava 5

Liabilities arising from liability for performance defects
Performance defects
§ 40
Liability for defects
An organisation which has performed shall be responsible for ensuring that the products, works or works have been carried out in quantities which it has indicated at the time of performance that they had the characteristics laid down by law, by contract, by decision of arbitration, by official measures and, where appropriate, by the characteristics that they normally have and that they are free from legal defects.
§ 41
Where the law or the nature of the case does not imply otherwise, the organisation which is being implemented shall be required to examine the performance and, if defects are found, to obtain proof of the state of the products, works or performance.
§ 42
The defects that can be detected in the defined and, where appropriate, the usual means of verification are obvious. Other defects are hidden.
§ 43
(1) An organisation which has been supplied with defective products, work or performance shall have the right to property penalties provided for by law or contract. In addition, it has the right, unless otherwise specified in other provisions, because of liability for defects,
(a) if the defect is irremovable, require an appropriate discount or refuse the performance retrospectively and either demand a new impeccable performance or, to the extent that the performance refused, withdraw from the contract with the consequences set out in Paragraph 35 (2);
(b) if the defect is removable, require free removal of the defect or reimbursement of the cost of the defect or a reasonable reduction.
(2) The provisions of the preceding paragraph shall apply mutatis mutandis to defects in the repairs made by the supplier.
(3) Where quantities are less than those declared by the organisation which has performed, the organisation which has been implemented has the right to property penalties provided for by law or contract; as regards the other consequences, such irregularity shall be considered as partial non-compliance with the contract.
(4) The rights of liability for defects may be governed by the implementing provisions by way of derogation from the provisions of this law.
§ 44
Guarantee
The organisation which is obliged to comply may take responsibility by guarantee agreement for the fact that products, works or performances will have certain characteristics even for a specified period of time after compliance. The implementing rules may specify under which conditions and to what extent the organisation is required to provide a guarantee.
§ 45
The right to compensation resulting from a defect is for the organisation that has been implemented against the organisation that has fulfilled, even if the right of liability for defects has already expired. However, transactions to which the organisation was entitled because of liability for defects may not be claimed for damages or other legal reasons; However, the guarantee agreement is not affected.

Oddíl IV

Amendment of commitments
§ 46
Organisations may amend obligations by contract, unless this is excluded by the law or by the nature of the obligation ratio; If it is not evaluated, arbitration shall decide. If one of the organisations requests a change of commitment on the basis of a planning document, the other organisation shall be obliged to accept the change.
§ 47
(1) Under the conditions set out in Paragraph 46, the approved organisation may, by contract, transfer the right of performance to another organisation. It is responsible for the fact that the law lasted at the time of the procedure.
(2) 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.
§ 48
An organisation that agrees with a compulsory organisation to assume its commitment shall take its place, if the organisation is authorised to do so. Such acceptance may be given either to a compulsory organisation or to an organisation which assumes an undertaking.
§ 49
An organisation which agrees with a compulsory organisation to provide for its performance shall be responsible for its failure to comply. It will not create direct rights for an approved organisation.
§ 50
Paragraphs 25 and 26 apply mutatis mutandis to the amendment of the undertaking.

Oddíl V

Rights and obligations of commitments

Hlava 1

Forms of implementation
Method of performance
§ 51
If it does not result from legislation, from an economic contract or from the nature of the performance that the compulsory organisation must perform itself, it may also use other organisations for the performance.
§ 52
Where several organisations are jointly committed or authorised, the undertaking or the law of each of them shall apply only to that part of the performance which is attributable to it in accordance with the legal fact which was established by the legal relationship. Where parts of the performance of each organisation are not identified, the organisation shall be bound or entitled to the same part. However, in the case of joint obligations established by a contract, the shares must be identified in the contract, or they must be determined by which organisations and by which time the shares will be determined; otherwise the contract is void. If the organisation which is obliged to determine the shares does not do so, it shall be obliged or entitled to do so itself.
§ 53
If a commitment can be fulfilled in several ways, the organisation's right to choose is compulsory, unless otherwise agreed. However, it is impossible to withdraw from the election.
§ 54
(1) Unless further provisions or implementing rules provide otherwise, the approved organisation shall not be obliged to accept the performance of the organisation to comply with any other obligation other than the obligation. The same applies mutatis mutandis to the place of performance.
(2) An approved organisation may not refuse the offered partial performance of an undertaking unless this is contrary to the agreement or the nature of the undertaking.
§ 55
Place of performance
(1) The place of performance is:
(a) for the supply of products, the place where the products are presented for transport to the place of destination to the first national public carrier, post office or transport by a non-public means of transport sent by the customer, or by the customer's establishment, where the products are transported by a non-public means of transport by the supplier;
(b) in the case of work and performance in wages carried out in the supplier's establishment, the places specified under (a); for other works and performances, the place where the work or performance is carried out.
(2) Where there are important reasons for doing so, the implementing act or act, in particular the economic contract, may, exceptionally, provide for a different place of performance.
Time of implementation
§ 56
The time at which the undertaking must be fulfilled shall be determined by an implementing act or act, in particular an economic contract. If the time of performance is not so determined, the approved organisation may require compliance and the compulsory organisation to comply immediately.
§ 57
Unless otherwise specified in the implementing rules, the compulsory organisation may fulfil the obligation before its maturity only with the agreement of the organisation authorised.
§ 58
If the obliged organisation finds that it will not be able to fulfil the obligation in time, it shall immediately notify the organisation, justified with the justification, indicating when it will meet the obligation; However, this is without prejudice to liability for non-compliance. This shall apply mutatis mutandis if the approved organisation finds that it will not be able to accept the performance in due time.

Hlava 2

Extension
Extension of the compulsory organisation
§ 59
Contents
ČÁST PRVNÍ Oddíl I § 1 § 2 Oddíl II § 3 § 4 § 5 § 6 § 7 § 8 § 9 § 10 § 11 § 12 § 13 § 14 Oddíl III Hlava 1 § 15 § 16 § 17 § 18 § 19 § 20 § 21 § 22 § 23 § 24 Hlava 2 § 25 § 26 Hlava 3 § 27 § 28 § 29 § 30 § 31 § 32 § 33 § 34 Hlava 4 § 35 § 36 § 37 § 38 § 39 Hlava 5 § 40 § 41 § 42 § 43 § 44 § 45 Oddíl IV § 46 § 47 § 48 § 49 § 50 Oddíl V Hlava 1 § 51 § 52 § 53 § 54 § 55 § 56 § 57 § 58 Hlava 2 § 59 § 60 § 61 § 62 § 63 § 64 § 65 Hlava 3 § 66 § 67 § 68 § 69 § 70 § 71 § 72 Oddíl VI Hlava 1 § 73 § 74 § 75 § 76 § 77 § 78 § 79 § 80 § 81 Hlava 2 § 82 § 83 § 84 § 85 § 86 § 87 ČÁST DRUHÁ Oddíl I Hlava 1 § 88 Hlava 2 § 89 § 90 § 91 § 92 Hlava 3 § 93 § 94 § 95 § 96 Hlava 4 § 97 § 98 § 99 § 100 § 101 § 102 § 103 § 104 § 105 § 106 § 107 § 108 § 109 § 110 § 111 § 112 § 113 § 114 § 115 § 116 Hlava 5 § 117 § 118 Hlava 6 § 119 § 120 § 121 § 122 § 123 § 124 § 125 § 126 § 127 § 128 § 129 § 130 § 131 § 132 § 133 § 134 § 135 § 136 § 137 Hlava 7 § 138 § 139 § 140 § 141 § 142 § 143 § 144 § 145 Oddíl II Hlava 1 § 146 § 147 § 148 § 149 § 150 § 151 Hlava 2 § 152 § 153 § 154 § 155 § 156 § 157 § 158 § 159 Hlava 3 § 160 § 161 Hlava 4 § 162 § 163 § 164 § 165 § 166 § 167 § 168 § 169 § 170 § 171 § 172 § 173 § 174 § 175 § 176 Hlava 5 § 177 § 178 § 179 Hlava 6 § 180 § 181 § 182 § 183 § 184 § 185 Hlava 7 § 186 § 187 § 188 § 189 ČÁST TŘETÍ § 190 § 191 § 192 § 193 § 194 § 195 § 196 § 197 § 198 § 199 § 200

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Regulation Information

CitationAct No. 69 / 1958 Coll., on Economic Relations between Socialist Organisations
Regulation Type-
Author-
CollectionCode of Laws
Date of Promulgation08.11.1958
Effective from01.01.1959
Effective until-
Status Valid
The regulation text is for informational purposes only.
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