NEW CIVIL CODE COMES INTO EFFECT10.12.2013
On 1st of January 2014 the new Civil Code comes into effect. The article briefly describes the most important changes compared to the previous legislation.
At the close of November 2013 perhaps the last proposal for suspending legal effect of the new civil code did not pass. Therefore, beginning in January 2014 the new code of private law is most likely to start affecting lives of all of us.
The new regulation comprises almost 4 000 articles and completely changes the whole field of private law and encroaches property and family relations of all persons, entities and entrepreneurs.
Due to extensity and multiplicity of individual changed fields let us bring to you merely a headword summary of these changes.
Should you wish so, we are ready to trace co-operatively with you the fields in which the changes will concern you or documents and procedures you use, in order to assist you with application of the new regulation into your enterprising or your private life.
What should we be therefore prepared for?
1) The adoption of the new Civil Code and the Act on Business Corporations is the most significant change in the Czech legal system for the past 50 years.
2) The Commercial Code, the current Civil Code, the Family Code, the Act on Residential Property, the Act on Commercial Lease, as well as dozens of other important acts will be abolished as of 1st of January 2014.
3) All contracts concluded after 1st of January 2014 will need to be adapted to the new legislation. Not only references to the statutory provisions, but the content of such contracts itself will need to be adapted in accordance with the new legislation.
4) The rents of apartments and commercial premises concluded even before 1st of January 2014 will be also governed by the new legislation. This will cause a change in the termination terms of the lease agreements and other essential parts of leases.
5) The legal relationships between entrepreneurs will continue to be governed by the Civil Code. The new Civil Code removes the existing duality of legislation for citizens and businessmen.
6) The new legislation brings a revolution into the inheritance law.
7) Constructions will newly be parts of the land. The existing separate ownership of the constructions will come to an end, as these will become parts of the land on which they are situated.
8) There will be new public registers and lists introduced (in addition to the existing ones such as the commercial register or the cadastre) and confidence in accuracy of the data they keep will be strengthened.
9) The new legislation brings a number of yet unused legal terms, which we will encounter in everyday life. For instance “výprosa”, “pacht”, “služebnost”, “výměnek”, “kvitance”, “závdavek”, “švagrovství”, “závod”, “adhézní smlouvy” etc. A significant number of new institutes will be regulated, such as pre-contractual liability, disproportionate shortening, contract assignment, substantial change in circumstances.
10) The new legislation will bring an increased protection for the weaker party – such as if the consumers or entrepreneurs are acting without coherence of their own business. This protection is reflected to the requirements of previously used legal documents (general terms and form contracts), which parts may become invalid from 1st of January 2014.
The above-mentioned 10 points are really a brief and generalized summary of the most significant changes. Nevertheless, we will be glad to provide to you more detailed information in relation to your business or your personal life.
Let us wish you all the best in your enterprising and private life also in the coming year 2014,
Arzinger & Partners, law office