The Presidium of SAC RF approved the “guaranteed retention”
Retention of a part of the payable price of work results, is a fairly common method used for the enforcement of warranty obligations of the contractor. In reviewing this kind of dispute, the courts, as a rule, did not see anything objectionable in the contractual terms, according to which part of the price of work would be paid by the customer to the contractor only after the warranty period expired. However, in cases where the obligation to pay for work are stipulated by the parties as dependant on the occurrence of an event, which does not meet the grounds of inevitability, the courts recognized this condition as contrary to Article 190 of the RF Civil Code. Analysis of this question was carried out by the example – dated 23 July 2013 – review by the Presidium of SAC RF of Case No. A40-131858/11 involving the dispute between Mobile Design and Construction Association Shakhtospetsstroy CJSC (Krasnodar Region, Sochi) and RAKSON LLC (Moscow Region, Odintsovo) on debt collection under the contract on subcontracting of construction – in our new review. (This legal update is available only in Russian)
