The paper describes the types of trigger events that can be agreed by the parties to an indemnity agreement. It also analyses the essential terms required for an indemnity agreement to be enforceable (“concluded”). The paper makes the conclusion that the parties must agree upon either the amount of indemnity or the procedure to ascertain such amount (clause 1, article 406.1 of Russia's Civil Code). The paper discusses bad faith conduct that facilitates the occurrence of a trigger event. It also describes the application of clauses 2, 3 and 4 of article 406.1 by the courts. The paper analyses the importance of making a distinction between indemnities and representations (article 431.2 of Russia's Civil Code). The paper also clarifiers the interplay between article 406.1 and clause 3, article 310 of Russia's Civil Code, analyses the legal effect of article 406.1 of Russia's Civil Code in respect of contracts made before 1 June 2015, and considers the correlation between article 406.1 of Russia's Civil Code and obligations that arise not from the contract, but by the operation of law.
|Translated title of the contribution||Indemnity under article 406.1 of Russia's Civil Code: The doctrine and judicial approach. Part 2|
|Journal||ЕВРАЗИЙСКИЙ ЮРИДИЧЕСКИЙ ЖУРНАЛ|
|State||Published - 2019|