Chapter 49. Assignment.

Article 971. The contract agreement.
1. Under the contract of assignment, one party (attorney) undertakes to perform certain legal actions on behalf of and at the expense of the other party (principal). The rights and obligations under the transaction made by the attorney arise directly from the principal. 2. The contract of assignment may be concluded with an indication of the period during which the attorney is entitled to act on behalf of the principal, or without such indication.

Article 972. Attorney's fee.
1. The principal shall be obliged to pay to the attorney a remuneration, if it is provided for by a law, other legal acts, or an instruction agreement. In cases where the contract of assignment is related to the business activities of both parties or one of them, the principal shall pay the attorney a fee, unless otherwise provided by the contract. 2. If there is no condition in the paid agreement on the amount of remuneration or on the procedure for its payment, the remuneration shall be paid after the execution of the order in the amount determined in accordance with paragraph 3 of Article 424 of this Code. 3. An attorney acting as a commercial representative (clause 1 of Article 184) is entitled, in accordance with Article 359 of this Code, to retain things in his possession that are to be transferred to the principal in order to secure their claims under the contract of assignment.

Article 973. Execution of instructions in accordance with the instructions of the principal.
1. The attorney is obliged to execute the order given to him in accordance with the instructions of the principal. The instructions of the principal must be valid, feasible and specific. 2. The attorney shall have the right to deviate from the instructions of the principal if, in the circumstances of the case, this is necessary in the interests of the principal and the attorney could not previously request the principal or did not receive an answer to his request within a reasonable time. The attorney is obliged to notify the principal of the deviations made as soon as notification becomes possible. 3. An attorney acting as a commercial representative (clause 1 of Article 184) may be granted by the principal the right to withdraw in the interests of the principal from his instructions without first requesting it. In this case, the commercial representative is obliged to notify the principal of the deviations made within a reasonable time, unless otherwise provided by the contract of assignment.

Article 974. Duties of the attorney.
Attorney must: personally execute the assignment given to him, with the exception of the cases specified in Article 976 of this Code; report to the principal on his request all information on the course of the execution of the order; to transfer to the principal without delay everything received on transactions executed in pursuance of the order; upon execution of the order or upon termination of the contract of order until its execution, without delay, return to the principal a power of attorney whose validity has not expired, and submit a report with attachment of supporting documents if required by the terms of the contract or the nature of the order.

Article 975. Duties of the principal.
1. The principal shall be obliged to issue to the attorney a power of attorney (powers of attorney) for the performance of legal actions provided for by the contract of assignment, with the exception of cases provided for in paragraph two of clause 1 of Article 182 of this Code. 2. The principal shall, unless otherwise provided by the contract: reimburse the attorney for costs incurred; to provide the attorney with the means necessary for the execution of the order. 3. The principal shall be obliged without delay to accept from the attorney everything executed by him in accordance with the contract of commission. 4. The principal shall be obliged to pay the attorney a remuneration if, in accordance with Article 972 of this Code, the contract of assignment is paid.

Article 976. Transfer of the execution of an order.
1. An attorney shall have the right to transfer the execution of an order to another person (deputy) only in the cases and on the conditions provided for by Article 187 of this Code. 2. The principal shall have the right to withdraw a deputy elected as attorney. 3. If the possible deputy attorney is named in the contract of assignment, the attorney shall not be responsible either for his choice or for the conduct of his affairs. If the right of the attorney to transfer the execution of the order to another person is not stipulated in the contract or is provided for, but the deputy is not named in it, the attorney is responsible for the choice of the deputy.

Article 977. Termination of the contract of commission.
1. The contract of assignment is terminated due to: cancellation of instructions by the principal; attorney failure; death of the principal or attorney, recognition of any of them as incapable, partially capable or untraceable. 2. The principal has the right to cancel the order, and the attorney to refuse it at any time. An agreement to waive this right is void. 3. A party that refuses a contract of assignment that provides for the attorney to act as a commercial representative must notify the other party of the termination of the contract no later than thirty days, if the contract does not provide for a longer period. In case of reorganization of a legal entity that is a commercial representative, the principal shall have the right to cancel the order without such prior notice.

Article 978. Consequences of the termination of the contract of commission.
1. If the contract of assignment is terminated before the commission is fully executed by the attorney, the principal shall reimburse the attorney for the costs incurred in the execution of the order, and when the attorney was paid a fee, also pay him the remuneration in proportion to his work. This rule does not apply to the execution by an attorney of an order after he has learned or should have known about the termination of the order. 2. The cancellation by the principal of the order shall not be the basis for the compensation of losses caused to the attorney by the termination of the agreement of the order, with the exception of cases of termination of the agreement providing for the attorney to act as a commercial representative. 3. The refusal of the attorney to execute the order of the principal does not constitute grounds for compensation for losses caused to the principal by termination of the contract of assignment, except for cases of refusal of the attorney in conditions when the principal is unable to otherwise secure his interests, as well as refusal to perform the contract providing for the attorney as commercial representative.

Article 979. Obligations of the heirs of the attorney and liquidator of the legal entity that is the attorney.
In the event of the death of the attorney, his heirs are obliged to notify the principal of the termination of the contract of assignment and take the measures necessary to protect the principal's property, in particular, to keep his belongings and documents, and then transfer this property to the principal. The same obligation lies with the liquidator of the legal entity, who is an attorney.

<< Chapter 48 TKRF Back to table of contents Chapter 50 TKRF >>