Dissolution and Change of Contract in Uzbekistan

Buyer

• if the seller transfers the goods to the buyer that are subject to the rights of third parties (the buyer did not agree to accept such goods).

Contract of Purchase-Sale

Buyer

• if the seller refuses to transfer the sold product;
• if appurtenances and documents are not transferred by the seller within the specified period (which the buyer has set in case of non-transfer or refusal to transfer these appurtenances or documents);
• if the seller has transferred a smaller quantity of goods;
• if the product assortment does not match;
• If the seller did not meet the buyer’s requirements for completing the goods within a reasonable time.

Seller

• If the assortment is not defined in the contract of sale and the contract does not establish the procedure for determining it, but it follows from the substance of the obligation that the goods must be transferred to the buyer in the assortment;
• In cases where the buyer does not accept or refuses to accept the goods in violation of the law or the contract of purchase-sale;
• If the buyer, in violation of the contract of purchase-sale, refuses to accept and pay for the goods;
• When the buyer does not make the next payment for the goods sold in installments and transferred to him (in the case of installments) within the period established by the contract.

Any of the parties

• In cases where the party obligated to insure the goods and does not carry out insurance in accordance with the terms of the contract.

Buyer

• if the product is sold of poor quality.

Contract of Retail Purchase and Sale

Buyer

• If the buyer is not given the opportunity to immediately get the necessary and reliable information about the product at the point of sale;
• Before delivery of the goods with reimbursement of the seller’s expenses;

One of the parties

• If a long-term contract, refuses or refuses to agree on the quantity of goods to be delivered or other terms of the contract for subsequent periods in accordance with the procedure established by the contract.

Contract of Delivery

Supplier

• If the buyer provides the shipping order within the specified period;
• Non-selection of goods by the buyer within the established or reasonable time.

Buyer

• Has the right to refuse to accept goods whose delivery is overdue by notifying the supplier;
• Has the right to refuse to accept goods if non-conformity of goods is detected during their selection;
• Has the right to refuse to pay for goods of non-confirming quality and incomplete goods.

In the event of a breach that may be deemed material, the following cases are considered:

Violation by the supplier:

• delivery of goods of poor quality with defects that cannot be eliminated within a reasonable time for the buyer;
• repeated violations of the terms of delivery of goods.

Violation by the buyer

• repeated violation of payment terms for goods;
• Repeated non-selection of products.

Procurer

• if it becomes known that due to the failure of the product producer to fulfill the obligation to transfer to the procurer the grown (produced) agricultural products in the quantity and assortment provided for in the contract, and agricultural products cannot be received in the quantity and assortment provided for in the contract.

State Contract for Delivery of Goods for State Needs

Buyer has the right to fully or partially refuse the goods specified in the attachment notice.

Supplier

• If the losses caused to the supplier (executor) in connection with the performance of the state contract are not compensated in accordance with the state contract;
• Upon termination of the state contract on the grounds specified in the previous paragraph.

Buyer

• if it is established that the enterprise is unsuitable for the purposes specified in the contract of sale of the enterprise due to the shortcomings for which the seller is responsible, and these shortcomings are not eliminated by the seller.

Contract of Electric Power Supply

As a General rule, an interruption of power supply, termination or restriction is allowed by agreement of the parties. However, there are 2 exceptions:

1. Interruption of power supply, termination or restriction of power supply unilaterally is possible if there is a threat of accidents with a warning to the subscriber;
2. Interruption of the power supply, termination or restriction of the power supply unilaterally is possible if there is a threat of accidents without warning, but with immediate notification to the subscriber and if it is necessary to take urgent measures to prevent an accident.

A citizen can unilaterally terminate the contract with a notification without any reason.

Organization can unilaterally refuse to perform the contract, provided that the citizen is notified no later than a month in advance if:

• The citizen did not pay for the energy they used

A legal entity (subscriber) has the right to refuse the contract unilaterally for the reasons specified in the “Delivery” section of the current column.

Cancellation of a gift is allowed in court if the donee commits a deliberate crime against the life or health of the donor, members of his family or close relatives.[2]

Contract of Gift

Donee has the right to refuse the gift at any time prior to the transfer of the gift.

Donor is entitled to withdraw from the contract containing the promise to transfer in future to the donee a thing or property right or to release the donee from property obligation if:

• after signing the contract his financial situation deteriorated significantly;
• if the donee has committed a deliberate crime against the life or health of the donor, his family members, or close relatives.[3]

Contract of Rent

Recipient of the Rent

• If payer of rent fails to provide security for the performance of its obligations, or insurance in favor of the recipient of the rent, the risk of non-performance or improper performance of these obligations;
• In the event of loss of security or deterioration of security conditions due to circumstances for which recipient of the rent is not responsible.

Contract of Permanent Rent

Payer of Permanent Rent

• has the right to refuse further payment of rent by its redemption.

Recipient of Rent for Life

• in cases of material violation of the contract of rent for life by the payer.

Property Lease Agreement

Each of the parties

• has the right to cancel the contract at any time without any reason, while notifying the other party in writing about it a month in advance, and if the lease of real estate-then three months in advance;

Alienator

• if the purchaser does not fulfill its obligations under the agreement or performs them in an improper way.

Purchaser

• if, due to circumstances beyond his control, his financial situation has changed to such an extent that he cannot provide the alienator with conditional maintenance, or if the alienator has regained his ability to work.

Contract of Rental

Lessee

• has the right to cancel the contract of rental at any time.

Lessee

• if the documents and appurtenances of the property have not been transferred and the lessee cannot use the property in accordance with its purpose, or is largely deprived of what he was entitled to expect when concluding the contract;
• if the lessor has not provided the leased property within the agreed period or within a reasonable time;
• if deficiencies are found that prevent the use of the property;
• if the lessor has not warned about all the rights of third parties to the leased property;
• if the lessor does not perform its duty to perform major repairs;
• if the lessor does not provide the property for use by the lessee or creates obstacles to using property in accordance with the terms of the contract or assignment of property;
• if the property, due to circumstances for which the lessee is not responsible, is in a condition that is not suitable for use.

Lessor

• If the lessee does not use the property in accordance with the terms of the contract or the purpose of the property, despite a written warning from the landlord;
• If the lessee uses the property with a significant violation of the terms of the contract or the purpose of the property, or with repeated violations, despite a written warning from the lessor;
• If the lessee significantly degrades the property;
• If the lessee does not pay for the use of the property more than twice in a row after the payment period established by the contract has expired;
• If the lessee does not perform major repairs to the property within the time limits set by the contract, or if they are not specified in the contract within a reasonable time in cases where, in accordance with the law or the contract, the lessee is responsible for performing major repairs.

Contract of Finance Leasing

Recipient of Finance Leasing

• Has the right to refuse the delivered property in case of non-delivery, delay in delivery or delivery of property of non-confirming quality.

Recipient of Finance Leasing

• If the property subject to the contract of finance leasing, not transferred to the recipient of finance leasing as specified in this contract period, and if no such period is specified, within a reasonable time and, if delay is admitted on circumstances for which the lessor is responsible;
• In case of non-delivery, delay in delivery or delivery of property of non-confirming quality.

Lessor

• If the recipient of finance leasing commits a material breach of its obligations.

Contract of Rental of Dwelling Premise

Tenant

• With the consent of other citizens permanently residing with him, may terminate the contract at any time with a written notice to the landlord 3 months in advance.

Landlord

• If the tenant does not pay for residential premises for six months, if the contract does not set a longer period, and for short-term rental, if the payment is not made more than twice after the payment period set by the contract;
• In the event of destruction or damage to residential premises by the tenant or other citizens for whose actions he is responsible;
• When using residential premises for committing illegal acts;
• If the tenant or other citizens for whose actions he is responsible, after a warning, continue to use the residential premises for other purposes or violate the rights and interests of neighbors.

Each of the Parties

• if the premise ceases to be suitable for permanent residence, as well as in case of its emergency condition;
• in other cases stipulated by the housing legislation.

Contract of Uncompensated Use (contract of loan)

Each of the Parties

• If the term of free use of the item is not specified in the contract, while notifying the other party one month in advance;

Loan Recipient

• Even if a fixed-term contract is concluded, has the right to withdraw from the contract at any time, subject to one month’s notice to the lender.

Loan Recipient

• If the appurtenances and documents related to the item were not transferred, but without them the item cannot be used for its intended purpose or its use significantly loses value for the loan recipient;
• If the lender does not provide the item to the loan recipient;
• If there are shortcomings that make the normal use of the item impossible or burdensome, and which the lender intentionally or through gross negligence did not stipulate at the conclusion of the contract;
• If the lender did not warn the loan recipient about the rights of third parties to the item when concluding the contract;
• If the item, due to circumstances for which he is not responsible, is in a condition that is not suitable for use.

Lender

• If the loan recipient does not use the item in accordance with the contract or the purpose of the item;
• If the loan recipient does not fulfill the obligations to maintain the item in good condition or its maintenance;
• If the loan recipient significantly worsens the condition of the item;
• If the loan recipient has transferred the item to a third party without the lender’s consent.

Contract of Independent-Work

Customer

• If there is a need for additional work and for this reason – in a significant excess of the approximate price of the work;
• If the contractor does not start executing the contract in a timely manner or performs the work so slowly that it is clearly impossible to complete it by the deadline;
• If, during the performance of the work, it becomes obvious that it will not be performed properly, the customer has the right to assign the contractor a reasonable time to correct the deficiencies and if the contractor does not fulfill this requirement within the appointed time, to withdraw from the contract;
• may withdraw from the contract at any time prior to the delivery of the result of the work, paying the contractor a part of the set price in proportion to the part of the work performed before receiving notification of the customer’s withdrawal from the contract;
• If deviations in the work from the terms of the contract or other shortcomings of the result of work are significant and irremediable, or the detected shortcomings were not eliminated within a reasonable period of time established by the customer.

Contractor

• If the customer, despite the timely and justified warning from the contractor about the circumstances indicated in the first paragraph of article 643 of the civil code of the Republic of Uzbekistan, in reasonable term will not replace unsuitable or substandard material, will not change instructions on the method of execution of the work or not take other necessary measures to eliminate the circumstances threatening the validity or strength work;
• when the customer’s breach of its reciprocal obligations under the contract, in particular non-material, equipment, technical documentation or subject to processing (handling) things, prevents the execution of the contract by the contractor, as well as in the presence of circumstances, obviously testifying that the performance of these duties is not made within the prescribed period;

Contractor

• If there is a significant increase in the cost of materials and equipment to be provided by the contractor, as well as services rendered to it by third parties that could not have been foreseen at the conclusion of the contract, the contractor has the right to demand an increase in the established price of work (estimates), and if the customer refuses to fulfill this requirement, to dissolve the contract;

Contract of Domestic Independent-Work

Customer

• May refuse to pay for services that were imposed by the contractor;
• Can cancel the contract at any time before putting contractor to work, paying the contractor part of the established price of proportionally part of the work performed prior to receipt of the notification of refusal of the customer from the contract and reimburse contractor the expenses incurred up to this point for the purpose of execution of the contract, if they are not included in the part prices.

Customer

• when, due to the incompleteness or unreliability of the information received from the contractor, a contract was concluded for the performance of work that does not have the properties that the customer had in mind.

Contract of Construction Independent-Work

Contractor

• has the right to refuse to perform additional works only in cases when they are not within the scope of the contractor’s professional activity or cannot be performed by the contractor for reasons beyond its control;
• If it is found impossible to use the materials or equipment provided by the customer without compromising the quality of the work performed and the customer refuses to replace them;
• Under the obligation to eliminate defects at the request of the customer, may refuse to perform this duty if the elimination of defects is not directly related to the subject of the construction contract or cannot be performed by the contractor for reasons beyond its control.

Customer

• May refuse to accept the result of work in the event of defects that exclude the possibility of using for the purpose specified in the construction contract and cannot be eliminated by the contractor, the customer or a third party.

Customer

• Under the condition of payment of the full set price (services performed), except in cases where the termination of the contract is caused by the guilty actions of the contractor.

Executor

• Under the condition of full compensation to the customer for losses caused by the dissolution of the contract, except in cases where this was due to the fault of the customer.

Contract of Carriage

Consignor

• has the right to refuse the submitted vehicles that are not suitable for the carriage of the corresponding cargo.

Bank

• when the amount of funds stored in the client’s account is lower than the minimum amount stipulated by the banking rules or the contract, if such amount is not restored within one month from the date of the Bank’s notification;
• if there are no transactions on this account during the year, unless otherwise stipulated in the contract.

Contract of Transport Expediting

Each of the Parties

• by notifying the other party 10 days in advance.

In the event of the death of a citizen or the liquidation of a legal entity – Commission agent, the Commission agreement is terminated.

Credit Contract

Creditor

• may refuse to grant a loan in whole or in part if the borrower is declared insolvent, fails to fulfill its obligations to secure the loan, violates the obligation to use the loan in accordance with the contract, as well as in other cases stipulated by the contract.

Borrower

• has the right to refuse to receive a loan in full or in part, with notification of the creditor before the credit contract deadline for granting the loan, unless otherwise provided by law or the contract.

Trustee Manager

• If the property transferred to the trustee manager was encumbered with the rights of third parties after the conclusion of the contract, and the Trustee Manager was not notified of this within ten days.

In case of improper performance of the Trustee’s duties, the trust management contract is terminated on the basis of its termination through the court.

Contract of Bank Account

Bank

• as the General rule, the Bank does not have the right to refuse to open an account, except in cases where such refusal is caused by the Bank’s inability to accept banking services.

Client

• at the request of the client at any time.

Insurer

• If the insurant (beneficiary) objects to changing the terms of the insurance contract or paying an additional insurance premium;
• If the insurant (beneficiary) fails to comply with the obligation to immediately inform the insurer of significant changes in the circumstances reported to the insurer at the conclusion of the contract, if these changes may significantly affect the increase in the insurance risk.

Contract of Commission

Principal

• has the right to cancel the order at any time (if the attorney is an entrepreneur, then with a notification of this no later than 30 days, unless otherwise provided by the agreement).

Attorney

• may cancel the commission at any time.

Each of the Parties

• When entering into a contract with an indication of the term or with an indication of the purpose as a cancellation condition, for a justifiable reason.

Contract of Commission Agency

Committent

• At any time, while canceling the commission given to the Commission agent;

Commission Agent

• DOES NOT have the RIGHT, unless otherwise provided by the Commission Agency contract, to refuse to perform it, except for the case when the contract is concluded without specifying the term of its validity.

Contract of Trust Management of Property

The contract is terminated if:

• the beneficiary refuses to receive benefits under the contract, unless the contract provides otherwise;
• refusal of the Trustee or founder of the management to perform management due to the inability of the Trustee to personally perform trust management of the property;
• refusal of the management founder.

The contract of complex entrepreneurial license (franchising)

Each of the parties

• Has the right to cancel an indefinite contract for a complex entrepreneurial license at any time by notifying the other party six months in advance, unless the contract provides for a longer notice period.

Contract of Keeping

Transferor                     

• The right to refuse the item if, as a result of damage for which the keeper is responsible, the quality of the item has changed so much that it cannot be used for its original purpose.

Contract of Warehouse Keeping

Goods Warehouse

• In cases where the transferor has concealed the dangerous nature of the goods, which threatens to cause significant damage.

Insurance Contract

Insurant (beneficiary)

• at any time, if by the time of refusal, the possibility of an insured event has not disappeared due to the circumstances specified in part one of article 948 of the civil code of the Republic of Uzbekistan.

Insurer

• may refuse to pay the insurance indemnity if the insurant fails to fulfill the obligation to immediately notify of the occurrence of an insured event;
• has the right to refuse the insurant (beneficiary) to pay the insurance indemnity under the property insurance contract or the sum insured under the personal insurance contract in cases where:
• the insurance contract was terminated before the insured event occurred;
• the insurance contract is void on the grounds stipulated by the civil code of the Republic of Uzbekistan or other laws;
• the insurer is exempt from paying the insurance indemnity or the sum insured on the grounds specified in articles 951-954 of the civil code of the Republic of Uzbekistan;
• the insurer filed a claim for invalidation of the insurance contract on the grounds provided for by this Code or other laws, or for termination of the insurance contract due to the fact that the policyholder (beneficiary) prevented the investigation of the circumstances of the insured event or the determination of the amount of losses caused.

Contract of Simple Partnership

Each of the Parties

•  with an application no later than three months before the expected withdrawal from the contract, unless otherwise specified in the agreement.