Chapter 27. The concept and terms of the contract.
Article 420. The Concept of the Contract.
1. A contract is an agreement of two or several persons on the establishment, amendment or termination of civil rights and obligations.
2. The rules on bilateral and multilateral transactions provided for in Chapter 9 of this Code shall apply to contracts.
3. The general provisions on obligations (Articles 307 - 419) apply to the obligations arising from a contract, unless otherwise provided by the rules of this chapter and the rules on individual types of contracts contained in this Code.
4. For treaties concluded by more than two parties, the general provisions on a treaty shall apply, if this does not contradict the multilateral nature of such treaties.
Article 421. Freedom of contract.
1. Citizens and legal entities are free to enter into a contract.
A compulsion to conclude an agreement is not allowed, except for cases when the obligation to enter into an agreement is provided for by this Code, a law or an obligation voluntarily accepted.
2. The parties may conclude an agreement, both provided for and not stipulated by law or other legal acts.
3. The parties may conclude a contract containing elements of various contracts provided for by law or other legal acts (mixed contract). The relations of the parties under a mixed contract are applied in the relevant parts of the rules on contracts, the elements of which are contained in the mixed contract, unless otherwise follows from the agreement of the parties or the substance of the mixed contract.
4. The terms of the contract are determined at the discretion of the parties, except when the content of the relevant condition is prescribed by law or other legal acts (Article 422).
In cases when the condition of the contract is stipulated by the norm, which is applied to the extent that the agreement of the parties does not establish otherwise (the dispositive norm), the parties may by their agreement exclude its use or establish a condition different from that provided for in it. In the absence of such an agreement, the condition of the contract is determined by the dispositive rule.
5. If the condition of the contract is not determined by the parties or the dispositive norm, the relevant conditions are determined by the customs of business turnover applicable to the relations of the parties.
Article 422. Contract and Law.
1. A contract must comply with the rules binding on the parties, established by law and other legal acts (imperative norms) in force at the time of its conclusion.
2. If, after the conclusion of the contract, a law has been adopted, which establishes binding rules for the parties other than those that were valid during the conclusion of the contract, the conditions of the concluded contract shall remain in force, unless the law establishes that its effect applies to relations arising from previously concluded of contracts.
Article 423. Charged and gratuitous contracts.
1. An agreement under which a party must receive payment or another consideration for the performance of its duties is paid.
2. A contract is recognized as gratuitous, according to which one party undertakes to provide something to the other party without receiving payment or other consideration from it.
3. The contract is assumed to be compensated, unless the law, other legal acts, content or substance of the contract otherwise.
Article 424. Price.
1. Execution of the contract is paid at the price established by agreement of the parties.
In cases stipulated by law, prices are applied (tariffs, rates, rates, etc.) established or regulated by authorized state bodies.
2. Price change after the conclusion of the contract is allowed in the cases and on the conditions stipulated by the contract, the law or in the manner prescribed by law.
3. In cases when the price in the paid agreement is not stipulated and cannot be determined on the basis of the terms of the agreement, the execution of the agreement must be paid at a price which, under comparable circumstances, is usually charged for similar goods, works or services.
Article 425. Validity of the contract.
1. The contract enters into force and becomes binding on the parties from the time of its conclusion.
2. The parties shall have the right to establish that the conditions of the contract concluded by them apply to their relations that arose before the conclusion of the contract.
3. A law or contract may provide that the termination of the term of the contract entails the termination of the obligations of the parties under the contract.
An agreement in which there is no such condition shall be recognized as valid until the moment of the end of performance by the parties of the obligation specified in it.
4. The expiration of the contract does not exempt the parties from liability for its violation.
Article 426. Public Contract.
1. A public contract is a contract entered into by a commercial organization and establishing its obligations to sell goods, perform works or provide services that such an organization, by the nature of its activities, must carry out in relation to everyone who applies to it (retail, transportation by public transport, communication services, power supply, medical, hotel services, etc.).
A commercial organization does not have the right to give preference to one person over another in relation to the conclusion of a public contract, except as required by law and other legal acts.
2. The price of goods, works, and services, as well as other conditions of a public contract, shall be the same for all consumers, unless the law and other legal acts allow the provision of privileges for certain categories of consumers.
3. The refusal of a commercial organization to conclude a public contract in the presence of the opportunity to provide the consumer with relevant goods, services, to perform for him the relevant work is not allowed.
In case of unjustified evasion of a commercial organization from concluding a public contract, the provisions provided for by paragraph 4 of Article 445 of this Code shall apply.
4. In cases provided for by law, the Government of the Russian Federation may issue rules that are binding on the parties when entering into and executing public contracts (model contracts, regulations, etc.).
5. Terms of a public contract that do not meet the requirements established by clauses 2 and 4 of this article shall be void.