CIVIL CODE OF THE REPUBLIC OF ARMENIA Adopted by the National Assembly on 5 May 1998 ...

779 Pages·2017·1.37 MB·English

CIVIL CODE OF THE REPUBLIC OF ARMENIA
Adopted by the National Assembly
on 5 May 1998

FIRST SECTION

GENERAL PROVISIONS

CHAPTER 1

CIVIL LEGISLATION AND OTHER LEGAL ACTS CONTAINING NORMS
OF CIVIL LAW

Article 1. Relations regulated by civil legislation and by other legal acts
containing norms of civil law
1. The civil legislation of the Republic of Armenia consists of this Code and other
laws containing norms of civil law.
Norms of civil law contained in other laws must comply with this Code.
2. Civil legislation, as well as the decrees of the President of the Republic of
Armenia and the decisions of the Government of the Republic of Armenia containing
norms of civil law (hereinafter referred to as “other legal acts”) shall determine
the legal status of participants in civil circulation, the grounds for arising and
the procedure for the exercise of the right of ownership and other property rights,
exclusive rights to the results of intellectual activity (intellectual property), shall
regulate contractual and other obligations as well as other property relations and
personal non-property relations related thereto.
Participants in relations regulated by civil legislation and other legal acts shall be
deemed to be natural persons — the citizens of the Republic of Armenia, citizens of
foreign states, stateless persons (hereinafter referred to as “citizens”) — and legal
persons, as well as the Republic of Armenia and the communities (Article 128).
Rules prescribed by the civil legislation and other legal acts shall apply to the relations
with the participation of foreign legal persons, unless otherwise provided for by law.
3. Civil legislation and other legal acts shall regulate the relations among persons
exercising entrepreneurial activity or those with the participation thereof.
4. Family, labour relations, relations pertaining to the use of natural resources and
protection of the environment shall be regulated by civil legislation and other legal
acts, unless otherwise provided for by family, labour, land, nature conservation and
other special legislation.
5. Relations pertaining to the exercise and protection of inalienable human rights
and freedoms and other intangible assets shall be regulated by civil legislation and
other legal acts, unless otherwise arises from the essence of these relations.
6. Civil legislation and other legal acts shall not apply to property relations,
including tax, financial and administrative relations, based on administrative or other
authoritative subordination of one party over another, unless otherwise provided for
by the legislation.

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Article 2. Entrepreneurial activity
Entrepreneurial activity shall be considered the independent activity of a person
conducted at own risk, the basic purpose of which is to gain profit from the use of
property, sales of goods, performance of works, or provision of services.

Article 3. Principles of civil legislation
1. Civil legislation is based on the principles of equality, autonomy of will, and
property autonomy of the participants of relations regulated thereby, inviolability of
ownership, freedom of contract, impermissibility of arbitrary interference by anyone
in private affairs, necessity of unhindered exercise of civil rights, ensuring
the reinstatement of violated rights, judicial protection thereof.
2. Citizens and legal persons shall acquire and exercise civil rights upon their will
and to their benefit. They shall be free in the establishment of their rights and
responsibilities on the basis of a contract, in determining any condition of the contract
not contradicting with the legislation.
Civil rights may be restricted only by law, where it is necessary for the purposes of
protection of state and public security, public order, health and morals of the public,
rights and freedoms, honour and good reputation of others.
3. Goods, services and financial means shall move freely in the entire territory of
the Republic of Armenia.
Restrictions on movement of goods and services may be introduced in accordance
with law where those are necessary for ensuring the safety of people, protection of life
and health, preservation of nature and of cultural values.

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Article 4. Other legal acts
1. In accordance with Article 78 of the Constitution of the Republic of Armenia,
the relations stipulated in Article 1 of this Code may — within the term prescribed by
the National Assembly of the Republic of Armenia — be regulated also by
the decisions of the Government of the Republic of Armenia that have the force of
law.
2. On the basis of this Code and other laws and for the execution thereof,
the President of the Republic of Armenia shall have the right to adopt decrees
containing norms of civil law.
3. On the basis of this Code and other laws, of the decrees of the President of
the Republic of Armenia and for the execution thereof, the Government of
the Republic of Armenia shall have the right to adopt decisions containing norms of
civil law.
4. In case a decree of the President of the Republic of Armenia, a decision of
the Government of the Republic of Armenia contradicts this Code or other law, this
Code or the respective law shall apply.
5. The operation and application of norms of civil law contained in the decrees of
the President of the Republic of Armenia and the decisions of the Government of
the Republic of Armenia shall be determined by the rules of this Chapter.
6. Ministries and other bodies of executive power, as well as local self-government
bodies may issue acts containing norms of civil law only in the cases and to the extent
provided for by this Code, other laws and legal acts.

Article 5. Operation of civil legislation and other legal acts in time
1. Acts of civil legislation and other legal acts shall not have retroactive effect and
shall apply to relations having arisen after the entry into force thereof.
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The operation of law shall extend to the relations having arisen before the entry into
force thereof only in the cases where it is directly provided for by law.
2. With respect to the relations having arisen before the entry into force of an act
of civil legislation or other legal act, it shall apply to the rights and responsibilities
having arisen after the entry into force thereof. Relations of parties to a contract
concluded before the entry into force of an act of civil legislation or other legal act
shall be regulated in accordance with Article 438 of this Code.

Article 6. Civil legislation, other legal acts and international treaties
1. International treaties of the Republic of Armenia shall apply directly to
the relations mentioned in Article 1 of this Code, except for the cases when it follows
from the international treaty that promulgation of a domestic act is required for
the application thereof.
2. Where an international treaty of the Republic of Armenia prescribes norms other
than those provided for by the civil legislation and other legal acts, the norms of
the international treaty shall apply.

Article 7. Customary business practices
1. Customary business practice shall be the rule of conduct developed and widely
applied in any area of entrepreneurial activity, not provided for by the legislation,
regardless of the fact of being fixed in any document.
2. Customary business practices contradicting the mandatory provisions of
legislation or contract shall not be applied.

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Article 8. Interpretation of civil law norms
Civil law norms must be interpreted in accordance with the literal sense of the words
and expressions contained therein.
In case of different interpretations of the words and expressions used in the text of
civil law norms, preference shall be given to the interpretation complying with
the principles of civil legislation as stated in point 1 of Article 3 of this Code.

Article 9. Application of civil law norms by analogy
1. In the cases where relations provided for in Article 1 of this Code are not directly
regulated by law or upon agreement of the parties and there is no customary business
practice applicable thereto, the norms of civil legislation regulating similar relations
(analogy of statute) shall be applied to such relations, unless it contradicts the essence
thereof.
2. In case of impossibility to use analogy of statute, the rights and responsibilities of
parties shall be determined on the basis of principles of civil legislation (analogy of
law).
3. Application by analogy of norms restricting civil rights and prescribing liability
shall not be permitted.

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CHAPTER 2

ARISING OF CIVIL RIGHTS AND RESPONSIBILITIES EXERCISE
OF CIVIL RIGHTS

Article 10. Grounds for arising of civil rights and responsibilities
1. Civil rights and responsibilities shall arise from the grounds provided for by law
and other legal acts, as well as from the actions of citizens and legal persons which,
despite not being provided for by law or other legal acts, give rise to civil rights and
responsibilities by virtue of principles of civil legislation.
In accordance therewith, civil rights and responsibilities shall arise:
(1) from contracts and other transactions provided for by law, as well as from
the contracts and transactions which, despite not being provided for by law, do not
contradict thereto;
(2) from the acts of state and local self-government bodies that are provided for by
law as grounds for the arising of civil rights and responsibilities;
(3) from a judicial act prescribing civil rights and responsibilities;
(4) as a result of obtaining property on the grounds permitted by law;
(5) as a result of creating works of science, literature, art, of inventions and other
results of intellectual activity;
(6) as a consequence of causing damage to another person;
(7) as a result of unjust enrichment;
(8) as a result of other actions of citizens and legal persons;
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(9) as a result of events with respect to which the law or other legal act envisages
generation of civil law consequences.
2. Rights to property, subject to state registration, shall arise from the moment of
the registration thereof.

Article 11. Exercise of civil rights
1. Citizens and legal persons shall at their discretion exercise the civil rights
belonging thereto, including the right of protection thereof.
2. Renunciation by citizens and legal persons to exercise their rights shall not entail
termination of these rights, except for the cases provided for by law.

Article 12. Extent of exercise of civil rights
1. Actions of citizens and legal persons exercised solely with the intention to cause
damage to another person, as well as abuse of a right in other form shall not be
permitted.
Use of civil rights for the purpose of limiting the competition, as well as abuse of a
dominant position in the market shall not be permitted.
2. In case of not maintaining the requirements provided for by point 1 of this
Article, the court or the arbitration tribunal may refuse a person in respect of
the protection of the right belonging thereto.
(Article 12 amended by HO-68-N of 25 December 2006, edited by HO-74-N of
19 June 2015)

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CHAPTER 3

PROTECTION OF CIVIL RIGHTS

Article 13. General provisions
1. Protection of civil rights shall be carried out by the court or the arbitration
tribunal (hereinafter referred to as “court”), in accordance with the jurisdiction over
cases prescribed by the Civil Procedure Code of the Republic of Armenia.
2. A contract may provide for regulation of a dispute between the parties before
applying to court.
3. Protection of civil rights through administrative procedure shall be carried out
only in the cases provided for by law. A decision taken under administrative procedure
may be appealed against in the court.
(Article 13 supplemented by HO-74-N of 19 June 2015)

Article 14. Ways of protection of civil rights
Protection of civil rights shall be carried out through:
(1) recognition of the right;
(2) restoration of the situation having existed before the violation of the right;
(3) prevention of actions violating the right or creating a threat for the violation
thereof;
(4) applying the consequences of the invalidity of a void transaction;
(5) declaring a disputable transaction as invalid and applying the consequences of
the invalidity thereof;
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(6) declaring an act of a state or local self-government body as invalid;
(7) not applying by the court of the act of a state and local self-government body that
contradicts the law;
(8) self-protection of the right;
(9) enforcing the performance of the duty in kind;
(10) compensation for damages;
(11) levy a default penalty;
(12) termination or alteration of a legal relation;
(13) other ways provided for by law.

Article 15. Declaring as invalid the act of a state or local self-government
body
1. The act of a state or local self-government body not complying with law or other
legal acts and violating the civil rights and interests protected by law of a citizen or a
legal person may be declared as invalid by the court.
In case of declaration of an act as invalid by the court, the violated right shall be
subject to protection by ways provided for by Article 14 of this Code.
2. The Constitutional Court of the Republic of Armenia shall, in accordance with
Article 100 of the Constitution of the Republic of Armenia, determine the compliance
of the laws, the decisions of the National Assembly of the Republic of Armenia,
the decrees and executive orders of the President of the Republic of Armenia,
the decisions of the Government of the Republic of Armenia with the Constitution of
the Republic of Armenia.

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