Chapter 68. The law applicable to property and personal non-property relations.

Article 1205. General provisions on the law applicable to real rights.
1. The content of the right of ownership and other property rights to immovable and movable property, their exercise and protection are determined by the law of the country where this property is located. 2. The ownership of a property as immovable or movable is determined by the law of the country where the property is located.

Article 1206. The law applicable to the emergence and termination of real rights.
1. The emergence and termination of property rights and other property rights to property are determined by the law of the country where this property was located at the time when an action or other circumstance took place that served as the basis for the occurrence or termination of property rights and other property rights, unless otherwise provided by law. 2. The emergence and termination of the right of ownership and other real rights in a transaction concluded in respect of movable property in transit shall be determined according to the law of the country from which this property was sent, unless otherwise provided by law. 3. The emergence of property rights and other property rights to property due to acquisitive prescription is determined by the law of the country where the property was at the time of the expiration of the acquisitive prescription.

Article 1207. The law applicable to real rights to ships and space objects.
The right of ownership and other real rights to air and sea vessels, inland navigation vessels, space objects subject to state registration, their implementation and protection shall apply the law of the country where these vessels and objects are registered.

Article 1208. The law applicable to the statute of limitations.
The statute of limitations is determined by the law of the country to be applied to the relevant relationship.

Article 1209. The law applicable to the form of the transaction.
1. The form of the transaction is subject to the law of the place of its commission. However, a transaction made abroad cannot be invalidated due to non-compliance with the form, if the requirements of Russian law are met. The rules provided for in the first paragraph of this clause shall also apply to the form of the power of attorney. 2. The form of a foreign trade transaction, at least one of the parties to which is a Russian legal entity, is subject, irrespective of the location of the transaction, to Russian law. This rule also applies in cases where at least one of the parties to such a transaction is an individual carrying out entrepreneurial activity whose personal law in accordance with Article 1195 of this Code is Russian law. 3. The form of the transaction in respect of immovable property is subject to the law of the country where the property is located, and in respect of immovable property that is entered in the state register in the Russian Federation, Russian law.

Article 1210. The choice of law by the parties to the contract.
1. The parties to the contract may, at the conclusion of the contract or subsequently, by agreement between each other, choose a law that is applicable to their rights and obligations under the contract. The law chosen by the parties applies to the emergence and termination of the right of ownership and other real rights to movable property without prejudice to the rights of third parties. 2. The agreement of the parties on the choice of the law to be applied must be directly expressed or must definitely follow from the terms of the contract or a combination of the circumstances of the case. 3. The choice by the parties of the law to be applied, made after the conclusion of the contract, has retroactive effect and is considered valid, without prejudice to the rights of third parties, from the moment of the conclusion of the contract. 4. The parties to the contract may choose the law to be applied both for the contract as a whole and for its individual parts. 5. If from the totality of the circumstances of the case that existed at the time of the choice of the law to be applied, it follows that the contract is really connected with only one country, then the parties' choice of the right of another country cannot affect the operation of the mandatory rules of the country with which the contract is actually connected.

Article 1211. The law applicable to the contract in the absence of the parties' agreement on the choice of law.
1. In the absence of an agreement by the parties on the law to be applied, the law of the country with which the contract is most closely related shall apply to the contract. 2. The law of the country with which the contract is most closely associated is considered, unless otherwise provided by law, the terms or substance of the contract, or the totality of the circumstances of the case, the law of the country where the residence is located or the principal place of business of the party that performs the execution for the content of the contract. 3. A party that performs execution that is of decisive importance for the content of a contract shall be recognized, unless otherwise provided by law, the terms or substance of the contract, or the totality of the circumstances of the case, which is, in particular: 1) the seller - in the contract of sale; 2) the donor - in the contract of donation; 3) the landlord - in the lease agreement; 4) the lender - in the contract of gratuitous use; 5) the contractor - in the contract; 6) the carrier - in the contract of carriage; 7) the freight forwarder - in the contract of freight forwarding; 8) the lender (lender) - in the loan agreement (credit agreement); 9) a financial agent - in a contract of financing against the assignment of a monetary claim; 10) by the bank - in the bank deposit agreement (deposit) and the bank account agreement; 11) custodian - in the storage contract; 12) the insurer - in the insurance contract; 13) attorney - in the contract of assignment; 14) commission agent - in the commission agreement; 15) agent - in the agency agreement; 16) the right holder - in the agreement of the commercial concession; 17) by the pledger - in the pledge agreement; 18) the guarantor - in the contract of guarantee; 19) licensor - in a license agreement. 4. The law of the country with which the contract is most closely connected is considered unless otherwise provided by law, the terms or substance of the contract, or the totality of the circumstances of the case, in particular: 1) in respect of a construction contract and a contract for the design and exploration work - the law of the country where the results provided for in the relevant contract are mainly created; 2) with respect to a simple partnership agreement - the law of the country where such partnership is mainly carried out; 3) in relation to an agreement entered into at an auction, by tender or on an exchange, the law of the country where the auction is held, a tender or an exchange is located. 5. To a contract containing elements of various contracts, the law of the country with which this contract, considered as a whole, is most closely related, shall apply, unless otherwise provided by law, the terms or substance of the contract or the totality of the circumstances of the case. 6. If the trade terms used in the international turnover are used in the contract, unless otherwise indicated in the contract, it is considered that the parties have agreed to apply business practices in their relations, denoted by the corresponding trade terms.

Article 1212. The law applicable to the contract with the participation of the consumer.
1. The choice of the right to be applied to the contract, to which the individual is a party, who uses, acquires or orders or intends to use, purchase or order movable things (works, services) for personal, family, household and other needs not related to the implementation activity, cannot entail deprivation of such an individual (consumer) of protection of his rights, provided by the mandatory rules of the law of the country of residence of the consumer, if at least one of the following circumstances: 1) the conclusion of the contract was preceded by an offer in this country, addressed to the consumer, or an advertisement, and the consumer made the necessary actions in the same country to conclude a contract; 2) the counterparty of the consumer or the representative of the counterparty received the order of the consumer in this country; 3) an order for the purchase of movables, the performance of work or the provision of services is made by a consumer in another country, a visit to which was initiated by the consumer’s counterparty in order to encourage the consumer to enter into a contract. 2. In the absence of an agreement of the parties on the law to be applied and in the circumstances specified in paragraph 1 of this article, the law of the country of residence of the consumer shall apply to the contract with the participation of the consumer. 3. The rules established by clauses 1 and 2 of this article do not apply: 1) to the contract of carriage; 2) to the contract on the performance of work or the provision of services, if the work must be performed or the services must be rendered exclusively in a country other than the country of residence of the consumer. The exemptions provided for in this clause do not apply to contracts for the provision of transportation and accommodation services for the total price (regardless of the inclusion in the total price of other services), in particular for contracts in the field of tourist services.

Article 1213. The law applicable to the contract in respect of immovable property.
1. In the absence of an agreement by the parties on the law applicable to the contract in respect of immovable property, the law of the country with which the contract is most closely associated is applied. The law of the country with which such a contract is most closely connected is considered, unless otherwise provided by law, the terms or substance of the contract, or the totality of the circumstances of the case, the law of the country where the immovable property is located. 2. Russian law applies to contracts in respect of land plots, subsoil plots and other immovable property located in the territory of the Russian Federation.

Article 1214. The law applicable to the agreement on the establishment of a legal entity with foreign participation.
The law on the country in which, according to the agreement, a legal entity is to be established is applied to the agreement on the creation of a legal entity with foreign participation.

Article 1215. The scope of the law applicable to the contract.
The right to be applied to the contract in accordance with the rules of Articles 1210-1214, 1216 of this Code shall, in particular, determine: 1) the interpretation of the contract; 2) the rights and obligations of the parties to the contract; 3) performance of the contract; 4) the consequences of non-performance or improper performance of the contract; 5) termination of the contract; 6) the consequences of the invalidity of the contract.

Article 1216. The law applicable to the assignment of the claim.
1. The law applicable to the agreement between the original and new creditors on the assignment of a claim shall be determined in accordance with clauses 1 and 2 of Article 1211 of this Code. 2. The admissibility of the assignment of the claim, the relationship between the new creditor and the debtor, the conditions under which this claim may be presented to the debtor by the new creditor, and the question of the proper performance of the obligation by the debtor is determined by law applicable to the claim that is the subject of the assignment.

Article 1217. The law applicable to obligations arising from unilateral transactions.
Obligations arising from unilateral transactions, unless otherwise provided by law, conditions or the merits of the transaction or a combination of the circumstances of the case, apply the law of the country where the residence is located or the principal place of business of the party accepting the obligations of a unilateral transaction. The validity of the power of attorney and the grounds for its termination are determined by the law of the country where the power of attorney was issued.

Article 1218. The law applicable to the relationship of interest.
The grounds for charging, the procedure for calculating and the amount of interest on monetary obligations are determined by the law of the country to be applied to the respective obligation.

Article 1219. The law applicable to obligations arising from the infliction of harm.
1. To obligations arising from causing harm, the law of the country where the action or other circumstance took place, which served as the basis for the claim for compensation of harm, shall apply. In the event that as a result of such an action or other circumstance a harm has occurred in another country, the law of that country may be applied if the person who caused the harm foresaw or should have foreseen the occurrence of harm in that country. 2. For the obligations arising from causing harm abroad, if the parties are citizens or legal entities of the same country, the law of that country shall apply. If the parties to such an obligation are not citizens of the same country, but have residence in the same country, the law of that country applies. 3. After the commission of an action or the occurrence of another circumstance entailing the injury, the parties may agree to apply the law of the country of the court to the obligation arising from the injury.

Article 1220. The scope of the law applicable to obligations arising from the infliction of harm.
On the basis of the law applicable to obligations arising from the infliction of harm, are determined, in particular: 1) the ability of the person to be responsible for the harm; 2) the imposition of liability for harm on a person who is not the cause of harm; 3) grounds for liability; 4) the grounds for limiting liability and exemption from it; 5) methods of compensation for harm; 6) the amount and amount of compensation for harm.

Article 1221. The law applicable to liability for damage caused as a result of defects in the goods, work or service.
1. To the requirement of compensation for damage caused as a result of defects in the goods, work or service, at the option of the victim, the following shall be applied: 1) the law of the country where the seller or the manufacturer of the goods or another person causing the damage has his place of residence or principal place of business; 2) the law of the country where the victim has a place of residence or principal place of business; 3) the law of the country where the work was performed, the service provided, or the law of the country where the goods were purchased. The choice of the right to victims, provided for by subparagraph 2 or 3 of this paragraph, can be recognized only if the person who caused the damage does not prove that the goods arrived in the relevant country without his consent. 2. If the victim has not exercised the right of choice granted to him by this article, the right to be applied shall be determined in accordance with article 1219 of this Code. 3. The rules of this Article shall apply respectively to claims for compensation for damage caused by inaccurate or insufficient information about a product, work or service.

Article 1222. The law applicable to obligations arising from unfair competition.
For obligations arising from unfair competition, the law of the country whose market is affected by such competition applies, unless otherwise provided by law or the substance of the obligation.

Article 1223. The law applicable to obligations arising from unjust enrichment.
1. To the obligations arising from unjust enrichment, the law of the country where enrichment took place applies. The parties may agree to apply the law of the country of the court to such obligations. 2. If the unjust enrichment has arisen in connection with the existing or proposed legal relationship under which the property was acquired or saved, to the obligations arising from such unjust enrichment, apply the law of the country to which this legal relationship was or could be subject.

Article 1224. The law applicable to inheritance relations.
1. Relations by inheritance shall be determined by the law of the country where the testator had the last place of residence, unless otherwise provided by this article. Inheritance of immovable property is determined by the law of the country where the property is located, and inheritance of immovable property that is entered in the state register in the Russian Federation is defined by Russian law. 2. The ability of a person to draw up and revoke a will, including in respect of immovable property, as well as the form of such a will or act of its revocation shall be determined by the law of the country where the testator had a place of residence at the time of drawing up such a will or act. However, a will or its cancellation cannot be considered invalid due to non-compliance with the form if it meets the requirements of the law of the place where the testament was drawn up or the act of its cancellation or the requirements of Russian law. President of the Russian Federation V. Putin

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