Amendments to the Civil Code could simplify the procedure of proving the good faith of business entities

Ivan Shiyonok, Advocate at the Law Firm "YUST"

The Codification Council has elaborated a draft law to amend the Civil Code of Russia. This draft law is principally aimed at improving those legal norms, which comprise its general provisions, and on the basis of which the more specialized legal institutes are formed.

The norms stipulated by Article 1 of the CCRF as the basic principles of the civil legislation are the most important element of the general provisions of civil law. Therefore, the amending of the first part of the CCRF has fully reasonably affected said basic principles. The normative regulation of these provisions, as well as that of more specific institutes, needs improving. It is particularly evident in the case of the good faith category.

Good faith is the most important criterion of evaluation of the conduct of civil relationship subjects. The settlement of certain cases by a court of arbitration often depends on the good faith issue. However, the current legislative provisions in this part provide insufficient regulation of criteria of evaluation of the good faith of the subjects’ conduct.

The article’s readers will find out:

• What circumstances may confirm the good faith of a subject of the civil circulation;
• How the criteria of evaluation of good faith of legal entities are different from the criteria for individuals.

Full version of the publication is available here.

Arbitration Practice magazine website: http://arbitr-praktika.ru/