As of November 19, 2024, all economic entities in the Republic of Belarus are granted the opportunity to enter into a Compensation Agreement for Property Losses (hereinafter referred to as the "Agreement") under Article 309-1 of the Civil Code.
This legal tool has been available since 2018, but only to High-Tech Park (HTP) residents in their relations with each other or with third parties (Part 1, Subclause 5.4, Clause 5 of the Presidential Decree of the Republic of Belarus No. 8 dated December 21, 2017; hereinafter referred to as "Decree No. 8").
The parties to the Agreement must engage in entrepreneurial activities. Consequently, such an Agreement cannot be concluded for transactions between individuals (e.g., granting loans through online lending platforms, purchasing or selling cryptocurrency, real estate transactions, etc.) or between an individual and a commercial organization.
Property losses under the Agreement must not arise due to a breach of obligations by either Party. For instance, breaches do not include the imposition of maximum price margins that result in one party losing a portion of revenue due to state price regulation, lawful unilateral contract termination, compensation for penalties imposed by government authorities, and similar situations. In these cases, property losses can be recovered under the Agreement.
The Agreement must specify the amount of compensation for property losses or the method for determining this amount.
The court cannot reduce the amount of compensation for property losses, except in cases where it is proven that a Party deliberately contributed to increasing the losses. Decree No. 8 further establishes a prohibition for HTP residents on the court reducing the amount of compensation for property losses in cases where a Party failed to take reasonable measures to minimize such losses.
It is important to note that the court will deny claims for property loss compensation if the basis for such compensation under the contract is a breach of the agreement by one of the Parties. We are ready to assist you in drafting a Compensation Agreement for Property Losses and provide consultation on its execution!