According to the draft law, grounds for unilateral refusal of the customer from the contract for the supply of goods (works, services) for state and municipal needs will be limited.
MOSCOW, 26 Nov. The bill, which limits the scope for unilateral refusal of the customer from the contract for the supply of goods (works, services) for state and municipal needs, submitted to the Duma by legislative Assembly of St. Petersburg. Relevant information is available in the electronic database of the lower house of Parliament.
Under the contract for supply of goods unilateral refusal of the customer will be possible in the cases of supply of goods of improper quality and incomplete goods, disadvantages and fitting which is not resolved within a reasonable period, and repeated violation of the terms (periods) of delivery.
Under contract to perform work or services unilateral waiver is allowed if they are not started within a contract term, prolonged or repeatedly violated the terms (periods) for their implementation, violated the terms of the contract.
However, the customer will not be entitled to unilaterally refuse execution of the contract according to the circumstances, if they occurred through his fault. In addition, the customer will be required to conduct appropriate due diligence in cases of supply of goods of inadequate quality, incompleteness of the goods, violation of the terms of the contract. And to terminate such a contract, the customer will be able only if the examination confirms such violations, and the contractor will not eliminate them.
The draft law introduces a procedure of appeal against the decision of the customer about the unilateral termination of the contract in the FAS. While the FAS will be able to suspend the termination of the contract for the term of consideration of the relevant complaint and give the customer a requirement for the continued performance of the contract with the selected contractor. Control body in the sphere of procurement will not be entitled to qualify the conclusions of the expert organization.
The bill proposes to prescribe these grounds for unilateral refusal of the customer from the contract directly in the law “On contract system in procurement of goods, works, services for state and municipal needs”. According to the regional legislators, making these changes will allow “to administer the procedure of the unilateral termination of contracts and to avoid mass abuses by customers.”
But as it is now
Currently, the termination of the contract is allowed by agreement of the parties, by court order, and in the case of a unilateral refusal of the parties to the contract from its execution in accordance with the civil legislation. In this case the customer is entitled to unilaterally refuse execution of the contract on the grounds provided by the Civil code, if it was stipulated in the contract.
This approach gives the customer ample opportunity to terminate the contract unilaterally, especially on contracts for performance of works and rendering of services. The customer at any time before delivery to it of result of work may refuse to perform the contract, paying the contractor part of the established price of proportionally executed part of works.
In addition, in the case of a unilateral refusal of the customer from the contract the supplier (contractor, performer) with which he was terminated can be entered in the Register of unfair suppliers, which deprives him of the right to participate for two years in public procurement.