Registration of Transactions

Variations of written form

• Bilateral transactions may be entered into by way of exchanging documents, each one of them shall be signed by the sending party.

• The exchange of letters, telegrams, telephonograms, teletypograms, facsimiles or any other documents which identify the entities and the contents as expression of their will, shall be equated to the execution of transactions in writing, unless it is otherwise stipulated in legislation or in the agreement of the parties.

Legislation and the agreements of parties may establish additional requirements to which the form of the transaction must correspond, in particular, the execution in accordance with a certain of form, affixing the seal

Consequences for a failure to comply with the simple written form

• Shall not entail invalidity of the transaction, but it shall deprive the parties of the right to confirm its conclusion, contents or its execution by witness evidence in the case of a dispute. The parties, however, shall have the right to confirm the execution, contents or the implementation of a transaction by written or any other proofs except for the use of witness's evidence.

• In the cases which are specifically stipulated in legislative acts or in the agreement of the parties, a failure to comply with the simple written form of a transaction shall entail its invalidity.

Failure to comply with the simple written form of a foreign economic transaction, shall entail the invalidity of the transaction

Notarization of Transactions

• In the cases which are stipulated in legislative acts or by the agreement of the parties, written transactions shall be deemed to be entered into only upon their notarization. The failure to comply with these requirements shall entail the invalidity of the transaction

Where a transaction which requires notarization is actually fulfilled by the parties or by one of the parties, and by its contents does not contradict legislation and does not violate the rights of third persons, the court upon the application of the interested party shall have the right to recognize the transaction as valid. In that case the subsequent notarization of the transaction shall not be required

Registration of Transactions

• Transactions which are subject, in accordance with the legislative acts, to state registration or other registration, shall be considered as concluded after their registration, unless it is otherwise stipulated in the legislative acts.

• Where a transaction which requires state registration is executed in a proper form, but one of the parties evades its registration, the court shall have the right upon the claim of the counter party to pass the decision to register the transaction. In this case the transaction shall be registered in accordance with the decision of the court