Terms

The contract

Party

A participant in a contract: a person or organisation that acquires rights and takes on obligations. An everyday contract usually has two parties.

Subject of the contract

What the contract is concluded for: an item, work, a service, money or a right of use. The law treats the term on the subject as essential.

Essential terms

Terms without agreement on which a contract is not concluded: the subject, terms the law calls essential, and terms one party has demanded agreement on (Article 432(1) of the Russian Civil Code).

Offer

A proposal to conclude a contract on certain terms, addressed to a specific person or to anyone interested. Public terms of service on websites are a common example.

Acceptance

A reply to an offer that means full agreement with its terms. It can be a signature, a payment or clicking an "agree" button, if the offer provides for that.

Termination

Ending a contract before the parties have fully performed their obligations: by agreement, by court decision or unilaterally, if the law or the contract allows it.

Documents

Simple written form

A transaction is set out in a document that reflects its content and is signed by the parties. Under Russian law it is mandatory for transactions between citizens exceeding ten thousand roubles, unless notarisation is required (Article 161(1)(2) of the Russian Civil Code).

Receipt

Written confirmation that a person has received money or an item. It usually states who received what, from whom and on what basis, with a date and signature.

Handover certificate

A document in which the parties record the handover of an item, a home or the result of work, its condition and any remarks. It is signed by both parties.

Claim

A written demand to the other party describing a breach and asking for it to be remedied within a set time. It is usually the first formal step in a dispute.

Notarisation

A special form of transaction in which a notary verifies the parties' identity and the legality of the document. The law requires it for certain transactions; for others the parties may choose it.

Time limits and disputes

Limitation period

The time within which a violated right can be defended in court. Under Russian law the general period is three years (Article 196(1) of the Russian Civil Code); the law may set other periods for some claims.

Penalty

An amount the party in breach must pay for non-performance or delay. Its size and calculation are set by the contract or by law.

Pre-trial procedure

An attempt to settle a dispute before going to court: negotiations, a claim and a reply to it. For some disputes this step is mandatory; for others it is simply sensible.

Version of a law

The text of a law as in force from a certain date after amendments. When checking a rule, look at the version that applies to your situation.

Related sections

• Basics

  The parts of any contract: parties, subject, price, deadlines, liability and termination, and when a contract counts as concluded under Russian law.

• Documents

  What proves an agreement: the contract, a receipt, an acceptance certificate, messages, a payment slip; when the law requires writing and why deadlines matter.

• FAQ

  Short answers to common questions about signing contracts, lending money, receipts and everyday disputes, based on Russian law.