SAMPLE CONTRACTS

National law – CZ – Contract law – chapter 2

The most common types of contracts include, for example, a purchase contract, a loan, a lease, a credit, a deposit, transport contract, a contract of work.

Purchase contract

The Purchase Contract serves to make a transfer of ownership of the property from one person (the seller) to the other (the buyer). This agreement contains the obligation for the seller to surrender the purchased item to the buyer and to allow him / her to acquire ownership of it. The buyer has an obligation to take over the item in question and to pay the purchase price, but the purchase price does not have to be paid until he has the opportunity to check it. Any costs incurred by the seller in connection with the delivery of the item at the place of performance are paid by the seller himself, e.g. packaging, transport to the place of performance. Similarly, the costs associated with the takeover of the item at the place of delivery are covered by the buyer himself, e.g. transport from the place of performance.

Danger of damage to the case (after the risk of damage to the goods from the seller to the buyer no longer causes damage to the seller to violate the obligation to perform properly and to deliver the damaged item undamaged) goes hand in hand with the charging of the property right.

To conclude the purchase agreement, it is necessary for the parties to agree on at least the essential requirements – the expression of the thing to sell and buy something, to specify the thing, to determine the purchase price for which it is being transferred. By negotiation of these requirements a purchase contract will be established. In the case of a purchase contract for movable assets, it is possible to conclude the contract without fixing the purchase price. The agreed purchase price is the price at which the comparable item is sold at the time of the purchase agreement under similar terms.

The seller is obliged to alert the purchaser in the negotiation of the purchase contract of the defects he knows about. Buyers are obligated to follow the maintenance instructions of the seller. Otherwise, if buyers fail to obey instructions, they lose the warranty.

The purchase agreement may be negotiated as a sub-arrangement, such as reservation of the right of ownership, reservation of the re-sale and sale, pre-emption right, trial purchase, clause of the better buyer, price clause.

Loan

We know 3 types of loans:

  1. An informal contract whereby the lender free of charge gives the client a specific intended use without the duration of the sale or the purpose for which it is intended to be used. This is a friendly help. It is not stipulated that the subject must be an unusable thing. The debtor must return the matter to the borrower on request or at any time, but it may not cause the lender to cause difficulties (for example, returning at an inappropriate time or inappropriate manner) against his will. The Prosecutor shall compensate for the damage caused to the case unless it is the damage that arose from the normal use of the thing to be counted on.
  2. The second type as a borrowing provides more obligations to both parties than the lender, first of all the temporary use of the non-usable property, that is, the arrangement of the duration of the loan. The loan is free of charge, but it is necessary to negotiate the purpose of using the item, unless agreed, should be used in a reasonable way. The borrower may not leave the matter to another person without the permission of the lender. If this happens, the lender may request the return of the case back before the expiration of the agreed duration of the borrower. The general may require the borrower to return the property prematurely only if the borrower uses it in contravention of the contract or it is possible to negotiate the reason for early repayment, which the lender could not predict. The borrower is obliged to give the borrower a thing in a state fit for its use and instruct the borrower to use the thing unless it is a generally known rule.
  3. The third type of a loan is an agreement by which the borrower undertakes to leave a species-specific representative thing to the borrower and the borrower undertakes to return the thing of the same kind over time. If the money is subject to interest, interest can also be negotiated, but this is not necessary. The loan is not determined for what purpose the funds are to be used.

Lease agreement

By the lease, the landlord undertakes to leave the tenant for temporary use. The Lessee undertakes to pay to the Lessor a consideration known as rent. The subject of the lease may be a real estate (or part of it) or a movable thing. It is also possible to rent a thing that will only occur in the future if it is possible to determine it sufficiently precisely when the lease is concluded.

The contract can be concluded verbally, only for renting an apartment and a house with a view to securing housing needs prescribed by law in a mandatory written form
The rental agreement should include a description of the subject of the lease, the date of the lease of the subject of the lease to the lessee, the condition in which the subject of the lease is situated upon its taking over by the lessee, the purpose of the lease, the period to which it is concluded, the amount of the rent, the rights and obligations of the parties, (the deposit is typical), the possibility of premature termination of the lease, the possibility of making changes, etc.
The lease agreement can be negotiated for a fixed or indefinite period. If the contract does not specify the time agreed, the lease is negotiated for an indefinite period.
The rent is paid in the agreed amount(money) and in the agreed terms. Rent may also be negotiated in a currency other than the Czech crowns or, for example, in regular rentals of the tenant.

Lessor:

  • has the right to secure its claims against the lessee by the lawful detention right,
  • handed over a thing with everything that is necessary for proper use of the thing,
  • has an obligation to provide the lessee with undisturbed use of the property for the duration of the lease
  • is not responsible for the defect of the leased thing, which at the time of conclusion of the lease was known by the parties and which does not prevent the use of the case

Tenant:

  • is obliged to use the thing as a proper economic operator for the purpose or for the usual purpose, and to pay the rent
  • if the defect is to be remedied by the landlord, the lessee can only use the thing with difficulty and the landlord has not received a defect even after the tenant has informed the tenant of the right to a reasonable rent discount or he can make the repair himself and claim the costs
  • has an obligation to notify the landlord that the rented property has a defect to be remedied by the landlord as soon as it has been discovered or discovered
  • has an obligation to enable the landlord to inspect, lease or access the rented property for the purpose of carrying out the necessary repairs or maintenance of the item, the lessor must notify the lessee in advance of the inspection in good time

Credit / Loan

The CC does not stipulate formal requirements and the conclusion of the credit agreement, so it can also be concluded orally. A credit/loan is a pledge contract, since the borrower is entitled to interest. It is a consensual contract. The creditor undertakes, under the terms agreed by the parties, to provide the borrowed on demand funds up to a certain maximum amount.

The loan can also be negotiated as a bond for a particular purpose. Breach of this obligation creates the right of the creditor to withdraw from the contract. If the time for the funds to be returned is not agreed, it is returned within one month of the request.

Deposit

Within the deposit/custody, the occupier undertakes to take over from the custodian to keep it for him. The subject of custody can be both a foreign matter and a thing of its own. For safekeeping, it is necessary to set up the custody of the parties. For example, a forgotten coat in a restaurant does not mean a safe deposit.

Transport contract

The contract of carriage deals with the relationship between the passenger (sender of the consignment) and the carrier. In the case of a foreign element, that is, in cross-border movement, the content of the contractual relationship is usually governed by international treaties, such as the Convention on the Contract for the International Carriage of Goods by Road.

The CC refers to the so-called transport rules, which may include, for example, transport documents, the rights and obligations of the carrier and the passenger in the course of transport, contracts for the transport of persons and things need not be in writing. If the carrier carries a thing, it has the right to require the sender to confirm the shipment’s order.

The essential terms of the contract are, in the case of passenger transport, the designation of the carrier and the passenger, the beginning and end of the shipment and the passenger’s obligation to pay the carrier fares. In the case of the transport of a thing, the essential part of the contract is the designation of the sender and the consignment, the place of dispatch, and the destination and the sender’s obligation to pay the freight.

The basic rule for liability for damage to the consignment is that the carrier is responsible for the damage which is detrimental to professional care, within the time frame between the takeover and the unloading at the place of destination. The carrier has a notification obligation in the event of a loss event.

 

Contract for work

By a contract for work, the contractor undertakes to carry out the work at his own expense and for the client and the client undertakes to take over the work and pay the price for it.

Whether it is a contract of work or a contract of sale in a specific case, it must be considered in several respects:

  1. Material aspect – if the thing is made of material that was mostly brought by the client or the work predominates over the material, it is a contract of work
  2. the nature of the subject of performance – in the case of maintenance, repair or modification of the thing, it is a contract of work

The works contract does not have to be written in writing, the essential terms of the contract for the work are the designer and the client, the specification of the work and the obligation to pay the price of the work.

If the defective performance is a material breach of contract, the Customer is entitled to:

  • to eliminate the defect by delivering a new item without defect or by supplying the missing item
  • to remove the defect by repairing the item
  • a reasonable discount on the price of the work
  • withdraw from the contract

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