Act No. 99 / 1950 Coll.

Law on Economic Contracts and State Arbitration

Valid Effective from 01.10.1950
99.
Law
of 13 July 1950
on economic contracts and State arbitrage.
The National Assembly of the Czechoslovak Republic decided on the following Act:

Část první.

Economic contracts.
The concept of economic contracts.
§ 1.
The supply and collection of goods required for the implementation of the single economic plan shall be subject to economic contracts (hereinafter referred to as "contracts') specifying the tasks set out in the implementation plans and bringing the implementation of each implementation plan into line. They shall be closed among themselves by state, national and municipal undertakings, following the case of other authorities managing national assets, public limited companies set up for the purpose of operating foreign trade and international shipping, the Centre for the Management of Agricultural Products, the registered limited-liability community, the Velkodzibuční společnost, the registered limited-liability community, the public authorities or bodies entrusted with the tasks of the public administration, and people's cooperatives.
§ 2.
The provisions of this Act apply mutatis mutandis to services and works.
§ 3.
Types of contracts.
Contracts are framework, partial and direct.
Framework contracts.
§ 4.
Framework contracts shall be allocated to individual suppliers and customers of supplies and purchases of goods and shall determine who enters into a partial contract with whom and under which conditions. They are usually closed for an annual planning period. The competent Ministry shall, in agreement with the State Office, designate a Planning Order in the relevant official list who concludes these contracts.
§ 5.
Where the content of the framework contract differs from the plan, the approval of the State office of the planning or of the authority entrusted to it shall be required for its validity.
§ 6.
Subcontracts.
(1) Sub-contracts shall implement framework contracts and shall provide for more detailed delivery and procurement of goods belonging to individual suppliers and customers. They shall be closed for periods such that supplies and purchases of goods are evenly distributed in accordance with the planned tasks.
(2) Sub-contracts are concluded by undertakings (plants), following the case of public authorities, as a general rule as defined in the framework contract as parties to sub-contracts.
(3) If the sub-contract deviates from the framework contract, the agreement of the parties that have concluded the framework contract shall be necessary for its validity.
§ 7.
Direct contracts.
Where it is not possible or expedient to conclude framework and partial contracts, they may, with the agreement of the competent authorities, be concluded between direct suppliers and customers of the contract directly. Paragraph 5 applies mutatis mutandis.
§ 8.
Preliminary conclusion of contracts.
(1) If necessary, contracts may be concluded before the implementation plans are approved (provisional contracts).
(2) Preliminary contracts shall be linked to the state of the planning works at the time of conclusion of these contracts.
(3) In order to conclude provisional partial contracts, the consent of the authorities authorised to conclude the framework contract is necessary.
§ 9.
Exceptions.
The State Planning Office may, in agreement with the participating ministries, allow an exemption from the obligation to conclude contracts or to limit this obligation to direct contracts.
§ 10.
Enabling central authorities.
(1) The State Planning Office, acting in conjunction with the relevant ministries, shall issue a decree in the relevant official document specifying the conclusion, formalities, content and performance of the contracts, as well as their amendments and cancellations; details according to the needs of each economic sector, sector and sector may be determined in the same way by the ministries to which suppliers are subject in agreement with the ministries to which customers are subject and by the State Planning Office.
(2) The ministries to which suppliers are subject may, in agreement with the ministries to which customers are subject, in the case of the authorities or bodies designated by them, amend or cancel the contracts according to the economic planning needs after the parties have been heard.
§ 11.
Government power.
The Government may, by regulation, regulate the procedure for the conclusion and performance of contracts and their content and formalities, by way of derogation from civil law rules.
§ 12.
Public supplies and work not covered by contracts.
(1) The Government shall provide for the provision of public supplies and works not covered by contracts by the Regulation.
(2) The Ministry, after the authorities or bodies designated by them, may impose an obligation on owners of privately owned undertakings to conclude a public supply or work contract; for serious reasons, they may, after hearing the parties, amend or cancel such contracts.

Část třetí.

Transitional and final provisions.
§ 33.
(1) Undertakings and persons other than those referred to in Article 1 may conclude a contract to invite one of the undertakings or bodies referred to in this Section.
(2) Where the undertaking or person invited does not conclude a contract which is necessary for the performance of an economic plan, the district national committee shall definitively decide on the matter in such a way as to ensure that the economic plan is implemented. His decision replaces the contract.
§ 34.
The competent Ministry may, under the effectiveness of Act No. 241 / 1948 Coll., on the first five-year Economic Plan for the Development of the Czechoslovak Republic (Five-Year Plan Act), authorise exemptions from the provisions of Section 4 as regards the obligation to specify in the framework agreement who will conclude a partial contract with whom.
§ 36.
The provisions of Part One shall not apply to contracts for the production, purchase and supply of agricultural products. The provisions governing the conclusion of these contracts remain unaffected.
§ 37.
All legislation contrary to this law, in particular Government Decree No. 667 / 1920 Coll., on the award of state supplies and works (procurement rules), is hereby repealed.
§ 38.
This Act shall take effect on 1 October 1950; It shall be implemented by the Minister-President of the State Office planning it in agreement with the participating members of the Government.
Gottwald v. r.
Dr John v. r.
Zaporocký v. r.
Dr Dolansky v. r.

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Regulation Information

CitationAct No. 99 / 1950 Coll., on Economic Contracts and State Arbitration
Regulation Type-
Author-
CollectionCode of Laws
Date of Promulgation25.07.1950
Effective from01.10.1950
Effective until-
Status Valid
The regulation text is for informational purposes only.
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