k940001000_.22-07-2024.eng

Civil Code of the Republic of Kazakhstan
Unofficial translation
Enforced by the Decree of the Supreme Council of the Republic of Kazakhstan dated
December 27, 1994.
Unofficial translation
The numbers "I-III" after the word "Section" in the text are replaced respectively by
numbers "1-3" in accordance with the Law of the Republic of Kazakhstan dated 20.12.2004
№ 13 (shall be enforced from 01.01.2005).
GENERAL PART
Section I. General Provisions
Chapter 1. Regulation of Civil Law Relations
Article 1. Relations Regulated by Civil Legislation
1. The civil legislation shall regulate goods and monetary relations and other property
relations based on the premise of equality of the participants, as well as personal non-property
relations linked to property relations. The participants of the relations regulated by the civil
legislation are the citizens, legal entities, state and administrative and territorial units.
2. Personal non-property relations not linked to property relations shall be regulated by
civil legislation, unless they are otherwise provided for by legislative acts or ensue from the
essence of a personal property relation.
3. Civil legislation shall apply to family relations, labor relations and relations associated
with the use of natural resources and the protection of the environment, which meet the
requirements of paragraph 1 of this Article, in the cases where those relations are not
regulated respectively by legislation concerning family, labor, use of the natural resources and
protection of the environment.
4. Civil legislation shall not apply to property relations which are based on the
administrative or any other power subordination of one party by the other, including tax and
other budget relations, except for the cases provided for by legislative acts.
Article 2. The Basic Principles of Civil Legislation
1. Civil legislation shall be based on the principles of the equality of the all parties before
the law, the inviolability of property rights, freedom of agreement, prohibition of arbitrary
interference of in personal affairs, necessity of free exercise of civil rights, provision for the
restitution of violated rights and their defense in the court.
2. Citizens and legal entities shall acquire and exercise their civil rights by their will and
in their interests, as well as refuse from their will and in their interest, unless otherwise
stipulated by legislative acts. They shall be free on establishing their rights and obligations on
the basis of agreements and on specifying any their conditions, which do not contradict
legislation.
3. The movement of goods, services and money shall be unrestricted in the entire territory
of the Republic of Kazakhstan. However, legislation will be introduced to restrict the
circulation of goods and services when it is necessary to protect human safety, the
environment and valuable cultural assets.
Footnote. Article 2 as amended by the Laws of the Republic of Kazakhstan dated
11.07.1997 № 154; dated 25.03.2011 № 421-IV (shall be enforced upon expiry of ten
calendar days after its first official publication).
Article 3. Civil Legislation of the Republic of Kazakhstan
1. The civil legislation of the Republic of Kazakhstan shall be based on the Constitution
of the Republic of Kazakhstan and consist of this Code, other laws of the Republic of
Kazakhstan adopted in accordance with it, the decrees of the President of the Republic of
Kazakhstan having the force of laws, edicts of the Parliament, and edicts of the Senate and
Mazhilis (legislative acts), as well as decrees of the President of the Republic of Kazakhstan,
decrees of the Government of the Republic of Kazakhstan regulating conduct indicated in
paragraphs 1 and 2 of Article 1 of this Code.
2. In case of a contradiction between the provisions of civil law which are contained in the
acts of legislation of the Republic of Kazakhstan, except for those indicated in paragraph 3 of
Article 1 of this Code, and the provisions of this Code, then the provisions of this Code shall
be applied. The provisions of civil law contained in legislation of the Republic of Kazakhstan
and contradicting the provisions of this Code may be applied only after the introduction of the
appropriate amendments into this Code.
3. relations related to the establishment, reorganization, bankruptcy and liquidation of
banks and bakeries, control over banking activities and its audit, control over the activities of
bakeries, licensing of certain types of banking operations, restructuring of banks, the
consequences of the withdrawal of licenses of banks, the implementation of operations with
the warehouse certificates of bakeries, are regulated by this Code in part, not contradicting the
legislative acts governing the bank bakery operations.
Relations between banks and their clients, as well as relations between clients through
banks, shall be regulated by civil legislation in accordance with the procedure established in
paragraph 2 of this Article.
4. Civil relations may be regulated by tradition, including the tradition of business
operation, unless it is in contradiction with the civil legislation effective in the territory of the
Republic of Kazakhstan.
5. Ministries and other central executive bodies, local representative and executive bodies,
may issue acts which regulate civil relations, in the cases and within the limits provided for
by this Code, and by other acts of civil legislation.
6. The rights of the citizens and legal entities which are established by this Code and any
other legislative acts of the Republic of Kazakhstan may not be restricted by the acts of the
bodies of the state administration and local representative and executive bodies. Such acts
shall be invalid from the moment of their adoption and must not be applicable.
7. Foreign individuals and legal entities and also stateless persons shall have the right to
acquire the same rights and they shall be obliged to fulfill the same obligations which are
provided for by civil legislation for the citizens and legal entities of the Republic of
Kazakhstan, unless otherwise stipulated by the legislative acts.
8. If an international treaty ratified by the Republic of Kazakhstan establishes different
rules than those contained in the civil legislation of the Republic of Kazakhstan, the rules of
the indicated treaty shall be applied. The international treaties ratified by the Republic of
Kazakhstan shall be applied to civil relations directly, except for the cases where it ensues
from a treaty that its application requires the issuing of a domestic Law.
Footnote. Article 3 as amended by the Decree of the President of the Republic of
Kazakhstan having the force of Law dated 31.08.95 № 2447; by the Laws of the Republic of
Kazakhstan dated 02.03.1998 № 211; dated 15.01.2001 No 141; dated 29.04.2009 № 154-IV
(the order of enforcement see Art. 2); dated 11.07.2009 № 185 (shall be enforced from
30.08.2009); dated 25.03.2011 № 421-IV (shall be enforced upon expiry of ten calendar days
after its first official publication); dated 02.07.2018 № 168-VI (shall be enforced upon the
expiration of ten calendar days from the date of its first official publication).
Article 4. The Effect of Civil Legislation in Time
1. Civil legislation acts shall not have retroactive force and shall apply to disputes which
arise after their entering into force. The legal force of a civil legislation act shall apply to
relations which arose prior to its enactment in the cases where it is directly provided for by it.
2. According to the conditions which arose prior to the entering of a civil legislation act
into force, it shall be applied to the rights and obligations which arise after its entering into
force. Relations of parties to an agreement concluded prior to the enactment of civil
legislation act which shall be regulated in accordance with Article 383 of this Code.
Article 5. Application of Civil Legislation by Analogy
1. In the cases where the relations provided for by the paragraphs 1 and 2 of Article 1 of
this Code are not regulated directly by legislation or an agreement of the parties and tradition
applicable to such relations does not exist, those provisions of civil legislation shall apply,
which regulate similar relations (analogy of a statute), unless this contradicts their essence.
2. When it is impossible to use the analogies of law in the indicated cases, the rights and
obligations of the parties shall be defined on the basis of the general fundamentals and the
spirit of civil legislation as well as the requirements of good faith, reasonableness and fairness
(analogy of law).
Article 6. Interpretation of Civil Legislation Provisions
1. Provisions of civil legislation must be interpreted literally. Where the possibility of

different understanding of the words used in the text of legislative provisions exists,
preference shall be given to that understanding which is consistent with the provisions of the
Constitution of the Republic of Kazakhstan and the fundamental principles of civil legislation
which are outlined in this Chapter, and first of all in Article 2.
2. When establishing the precise meaning of a provision in civil legislation, it shall be
required to consider the historic conditions under which it was introduced and its
interpretation in judicial practice, unless it contradicts the requirements specified in paragraph
1 of this Article.
Article 7. Grounds for arising, change and termination of civil rights and obligations";
Civil rights and obligations arise, change and terminate from the grounds provided for by
the legislation of the Republic of Kazakhstan, as well as from actions of citizens and legal
entities, which, although not provided for by it, but due to the general principles and meaning
of civil legislation, generate civil rights and obligations.
In accordance with this, civil rights and obligations emerge, change and terminate:
1) from contracts and other transactions provided for by the legislation of the Republic of
Kazakhstan, as well as from transactions, although not provided for by it, but not
contradicting to the legislation of the Republic of Kazakhstan;
2) from administrative acts, which, due to the legislation of the Republic of Kazakhstan,
entail civil and legal consequences;
3) from a court decision establishing civil rights and obligations;
4) as a result of creation, destruction, acquisition or alienation of property on the grounds
not prohibited by legislative acts of the Republic of Kazakhstan, as well as the waiver of
property rights;
5) due to creation of inventions, industrial designs, works of science, literature and art and
other results of intellectual activity;
6) as a result of causing harm to another person, as well as due to unjustified acquisition
or saving of property at the expense of another person (unjust enrichment);
7) due to other actions of citizens and legal entities;
8) due to the events with which the legislation of the Republic of Kazakhstan connects the
onset of civil and legal consequences.
Footnote. Article 7 in the new wording of the Law of the Republic of Kazakhstan dated
27.02.2017 № 49-VI (shall be enforced upon expiry of ten calendar days after the day its first
official publication).
Article 8. The Exercise of Civil Rights
1. Citizens and legal entities shall exercise civil rights belonging to them including the
right to protection at their discretion.
2. The refusal of citizens and legal entities to exercise their rights shall not entail the
cessation of those rights, except for the cases provided for by legislative acts.
3. The exercise of civil rights must not violate the rights and the interests of any other
subjects under legislation, and it must not harm the environment.
4. Citizens and legal entities must act in good faith, reasonably and fairly when exercising
their rights, and comply with the requirements contained in legislation and the moral
principles of the society. Entrepreneurs must also comply with the rules of business ethics.
This obligation may not be excluded or restricted by any agreement. The good faith,
reasonableness and fairness of the acts of participants in civil rights relations shall be
presumed.
5. Actions of citizens and legal entities aimed at causing harm to another person, abuse of
the right in other forms, as well as the exercise of the right in contradiction with its purpose
are not allowed.
6. No one has the right to take advantage of his/her bad faith behavior.
7. In case of non-compliance with the requirements provided for in paragraphs 3 - 6 of
this article, the court may refuse to protect the right belonging to the person.
Footnote. Article 8 as amended by the Law of the Republic of Kazakhstan dated
25.03.2011 № 421-IV (shall be enforced upon expiry of ten calendar days after its first
official publication); dated 27.02.2017 № 49-VI (shall be enforced upon expiry of ten
calendar days after the day its first official publication).
Article 9. Protection of Civil Rights
1. Protection of civil rights is carried out by court, arbitration through: recognition of

rights; restoration of the situation that existed before infringement of a right; suppression of
actions that infringe a right or threaten its infringement; ordering of specific performance;
recovery of damages, penalty; recognition of a disputable transaction as invalid and
application of consequences of its invalidity, application of consequences of invalidity of a
void transaction; compensation for moral harm; termination or change of legal relations;
recognition of an act of a government body or local representative or executive body that does
not comply with the legislation of the Republic of Kazakhstan as invalid or not applicable;
collection of a fine from a state body or official for obstructing a citizen or legal entity from
acquiring or exercising the right, or by other means provided for by legislative acts of the
Legal entities have no right to compensation for moral harm.
The protection of civil rights by compensation for moral damage caused to the consumer
as a result of violation of his rights and legitimate interests provided for by the legislation of
the Republic of Kazakhstan on the protection of consumer rights may be carried out by
subjects of pre-trial settlement of consumer disputes.
2. The appeal for protection of a violated right to a body of power or administration shall
not prevent an appeal to the court with an action to protect a right, unless legislative acts
specify otherwise.
3. In the cases which are specifically provided for in legislative acts, the protection of
civil rights shall be carried out directly by actual or legal acts of the person whose right is
violated (self-defense).
4. The person whose right is violated may require the entire restitution of the damages
inflicted on him (her), unless otherwise stipulated by legislative acts or the agreement.
The concept of damages means the losses, which are incurred or must be incurred by the
person whose right is violated, the loss or the damage of his property (real damage) and also
lost profit which this person would have received under the normal conditions of the turnover,
should his right have not been violated (lost profits).
5. The losses which are inflicted upon a citizen or a legal entity as a result of issuing by a
governmental body of an act which does not comply with legislation, or by any other state
body, and also by acts (failure to act) of the officials of those bodies, shall be subject to
compensation by the Republic of Kazakhstan or by the relevant administrative and territorial
unit.
6. If the emergence of the legal consequences of a violation is related to the guilt of the
violator his guilt shall be presumed, except for the cases where legislative acts stipulate
otherwise.
03.07.2013 № 125-V (shall be enforced upon expiry of ten calendar days after its first official
publication); dated 08.04.2016 № 489-V (shall be enforced upon expiry of ten calendar days
after the day its first official publication); dated 27.02.2017 № 49-VI (shall be enforced upon
expiry of ten calendar days after the day its first official publication); dated 25.06.2020 №
346-VI (shall enter into force upon the expiry of ten calendar days after the day of the first
Article 10. Protection of the Rights of Entrepreneurs and Consumers
1. Enterprise - the independent, initiative activity of citizens, repatriates and legal entities
directed to receiving net income by use of property, production, sale of goods, performance of
work, rendering services, based on the right of a private property (private enterprise) or on the
right of economic maintaining or operational management of the state enterprise (state
enterprise). Entrepreneurial activity shall be carried out on behalf of, for risk and under the
property responsibility of the entrepreneur.
2. The state shall guarantee, protect and support the freedom of entrepreneurial activities.
3. The rights of entrepreneurs who carry out activities which are not prohibited by
legislation shall be protected as follows:
1) possibility of carrying out entrepreneurial activity without obtaining any permits or
sending notifications, except for permits and notifications stipulated by the Law of the
Republic of Kazakhstan "On permissions and notifications";
2) by a simplified procedure for the registration of any of entrepreneurship in all
economic sectors by one registering authority;
3) by restricting, through legislative acts, those audits which are carried out by the state
bodies;
4) by a compulsory termination of entrepreneurial activities based only upon the decision
of the court, which is passed on the grounds established by legislative acts;
5) by establishing through legislative acts of the lists of operations ands of goods and
services which are prohibited for private entrepreneurship, or restricted for export and import;
6) by holding the state bodies, officials and any other persons and organizations
responsible for loss to the entrepreneurs and for illegal impediments to their activities;
6-1) by prohibiting to executive, supervisory and monitoring bodies, to enter into
contractual relations with entrepreneurial entities for the matter of performing the obligations
which are the function of those bodies;
7) by any other means provided for by legislation.
4. Permission or notification procedure is established by the Law of the Republic of
Kazakhstan "On permissions and notifications" depending on the level of danger of the
activity or action (operation) in order to protect the life and health of people, environment,
property, national security law and order.
Permission procedure is established in cases when the requirements for products, the
requirements for mandatory confirmation of compliance, stipulated by the laws of the
Republic of Kazakhstan, are insufficient to achieve the objectives of state regulation.
5. A commercial (entrepreneurial) secret shall be protected by law. The procedure for
identifying the information which constitutes a commercial secret, the methods of its
protection and also the list of information which must not be included among commercial
secrets shall be established by legislation.
6. The protection of the rights of consumers shall be ensured by the means provided by
this Code and any other legislative acts.
In particular, each consumer shall have the right:
- to freely enter agreements to purchase goods and to employ work and services;
- to proper quality and safety of goods (work, services);
- to full and reliable information on goods (work, services);
- and the right to join public associations of consumers.
Kazakhstan having the force of Law dated 27.01.1996 № 2835, by the Laws of the Republic
of Kazakhstan dated July 11, 1997 № 154, dated July 10, 1998 № 283, dated January 12,
2007 № 222 (shall be enforced upon expiry of six months from the date of its publication),
dated 25.03.2011 № 421-IV (shall be enforced upon expiry of ten calendar days after its first
official publication); dated 16.05.2014 № 203-V (shall be enforced upon expiry of six months
after the day its first official publication); dated 29.10.2015 № 376-V (shall be enforced from
01.01.2016); dated 13.05.2020 № 327-VI (shall enter into force after the day of introduction
of some amendments and additions into the Code of the RK "On taxes and other mandatory
payments in budget" (Tax Code)).
Article 11. Prohibition of Abusing the Freedom of Entrepreneurship
1. Monopolistic activities and any other activities aimed to restrict or eliminate legal
competition or the extraction of unreasonable advantages by the restriction of rights and
legitimate interests of consumers, shall not be allowed.
2. Except for the cases provided for by legislative acts, the use by entrepreneurs of civil
rights for the purpose of restricting competition shall not be allowed, in particular:
1) the abuse by entrepreneurs of their dominant position in the market to restrict or
terminate the production or reserve from commodity circulation in order to create shortages or
increase the prices;
2) making and implementing by persons who carry out similar entrepreneurial activities of
agreements concerning prices, subdivision of markets, elimination of any other entrepreneurs
or any other conditions which materially restrict competition ;
3) commission of unfair acts which are aimed at restriction of the legitimate interests of a
person who performs similar entrepreneurial activities and of consumers (unfair competition),
in particular, the misleading of consumers with regard to the manufacturer, designation,
method and place of manufacture, quality or any other properties of goods of other
entrepreneurs, by way of unfair comparison of goods in advertising and in any other
information, copying external design of somebody else's goods and by any other methods.
Measures aimed to control unfair competition shall be established by legislative acts.
Chapter 2. The subjects of the Civil Rights

Paragraph 1. Citizens of the Republic of Kazakhstan and Other Individuals
Article 12. The Definition of an Individual

Citizens of the Republic of Kazakhstan, citizens of other states, as well as stateless
persons shall be understood to be individual persons. The provisions of this chapter shall
apply to any individual persons, unless they are otherwise established by this Code.
Article 13. The Legal Capacity of Citizens
1. The capacity to have civil rights and bear obligations (civil rights capacity) shall be
recognized as equal to all citizens.
2. The legal capacity of a citizen shall arise at the moment of his birth and it shall cease
with his death.
Article 14. The principal Contents of the Legal Capacity of a Citizen
A citizen may own property, including foreign currency, both within the Republic of
Kazakhstan and abroad, unless otherwise established by the Law of the Republic of
Kazakhstan "On Anti-Corruption"; inherit and bequeath property; move freely around the
territory of the republic and choose a place of residence; freely leave the republic and return
to its territory; engage in any activity not prohibited by legislative acts; create legal entities
independently or with other citizens and legal entities; perform any transactions not
prohibited by legislative acts and participate in obligations; have intellectual property rights to
inventions, works of science, literature and art, other results of intellectual activity; demand
compensation for material and moral damage; have other property and personal non-property
rights.
official publication); dated 19.12.2020 № 384-VI (shall enter into force upon the expiry of ten
calendar days after the day of the first official publication).
Article 15. The name of a Citizen
1. A citizen shall acquire and exercise the rights and obligations under his (her) name
including the surname and the proper name and at his (her) discretion - the patronymic name.
2. Legislation may provide for cases of anonymous acquisition of the rights and execution
of obligations, or the use of a pen name (fictitious name) by citizens.
3. The name which is received by a citizen at his birth and also the change of the name
shall be subject to registration in accordance with the procedure established by legislation
concerning the registration of civil status acts.
4. A citizen shall have the right to change his name in accordance with the procedure
established by legislative acts. The change of name shall not be the basis for the cessation or
alteration of his rights and obligations which are acquired under the former name,
anonymously or under a pseudonym.
5. A citizen shall be obliged to take appropriate steps to notify his debtors and creditors of
a change of his name and he shall bear the risk associated with the consequences which are
caused by those persons' unawareness of the change of his name.
6. A citizen who has changed his (her) name shall have the right to require the
introduction of the appropriate amendments into the documents formulated for his (her)
former name.
7. The acquisition of rights and obligations under the name of a different person shall not
be allowed.
8. A citizen has the right to demand prohibition of the use of his name, when this was
done without his consent, except for the cases stipulated by the laws of the Republic of
Kazakhstan.
9. The harm caused to a citizen as a result of the illicit use of his (her) name shall be
subject to compensation in accordance with the provisions of this Code. In the case of a
distortion or use of a citizen's name by ways or in a manner which affect his (her) honor,
dignity or business reputation, the rules provided by Article 143 of this Code shall be applied.
With distortion or use of a citizen or as a way that affects their honor, dignity and business
reputation, the rules provided in Article 143 of this Code shall be applied.
Footnote. Article 15 as amended by the Law of the Republic of Kazakhstan dated January
12, 2007 № 225 (shall be enforced from the day of its official publication); dated 21.05.2013
№ 95-V (shall be enforced upon expiry of six months after its first official publication).
Article 16. The Place of Residence and Legal Address of a Citizen
1. The populated area where a citizen permanently or predominantly resides shall be

recognized as the place of domicile of the citizen.
2. The place of residence of the parents, adopters or guardians of persons who have not
reached 14 years of age or citizens who are under guardianship, shall be recognized as their
place of domicile.
3. A citizen has a legal address used in relations with individuals and legal entities, as well
as the state.
Legal address of the citizen is the place of his (her) registration.
4. A citizen has the right to demand prohibition of the use of information about his place
of residence or legal address when this was done without his consent, except for the cases
stipulated by the laws of the Republic of Kazakhstan.
12.01.2007 № 224 (the order of enforcement see Art. 2); dated 25.03.2011 № 421-IV (shall
be enforced upon expiry of ten calendar days after its first official publication); dated
21.05.2013 № 95-V (shall be enforced upon expiry of six months after its first official
publication); dated 21.05.2024 № 86-VIII (shall enter into force sixty calendar days after the
date of its first official publication).
Article 17. The Legal Capacity of Citizens
1. The capacity of a citizen to acquire and exercise civil rights, create for himself (herself)
civil obligations and execute them (citizen's deed capacity) shall arise in their entire volume
when the citizen reaches the age of majority, that is, upon reaching eighteen years of age.
2. In the case where legislative acts allow entering into marriage prior to reaching
eighteen years of age, a citizen who has not reached 18 years of age shall acquire legal
capacity in its entire volume from the moment of entering into marriage.
3. All citizens shall have equal legal capacity, unless it is otherwise provided for by
legislative acts.
Article 18. The Prohibition of Deprivation and Restriction of Legal Competence and Legal
Capacity
1. No one may be restricted in legal capacity and legal capacity otherwise than in the
cases and in order to the procedure provided for by legislative acts.
2. The non-compliance with the conditions and the procedure established by legislative
acts for restricting the legal competence and the legal capacity of citizens or of their right to
engage in entrepreneurial or any other activities shall entail the invalidity of the act of the
state body or any other authority which established that restriction.
3. Full or partial refusal of a citizen from legal or dispositive capacity and other
transactions aimed at limiting legal or dispositive capacity are null and void, except for cases
when such transactions are permitted by legislative acts.
Article 19. Entrepreneurial Activities of Citizens
1. Citizens shall have the right to engage in entrepreneurial activities without creating
legal entities except for the cases provided for by this Code and other legislative acts.
2. State registration of individual entrepreneurs is their registration as an individual
entrepreneur.
3. The rules of this Code which regulate activities of the legal entities which are
commercial organizations shall apply accordingly to entrepreneurial activities of citizens
which are performed without formation of a legal entity, unless they otherwise ensue from
legislation or from the essence of the legal relations.
4. Individuals are subject to state registration as an individual entrepreneurs in accordance
with the Entrepreneural Code of the Republic of Kazakhstan.
4-1. Is excluded by Law of the Republic of Kazakhstan No 122-VI dated 25.12.2017 (
shall be enforced from 01.01.2018).
5. If an individual entrepreneur carries out activities subject to licensing, he must have a
license to carry out such activities.
A license is issued in the order established by the legislation of the Republic of
Kazakhstan on permissions and notifications.
The Government of the Republic of Kazakhstan has the right to establish a simplified
procedure for issuing licenses to individual entrepreneurs.
02.07.1997 № 144; dated 24.12.2001 № 276 (shall be enforced from January 1, 2002); dated
10.12.2008 № 101-IV (shall be enforced from 01.01.2009); dated 30.06.2010 № 297-IV (
shall be enforced from 01.01.2013); dated 26.12.2012 № 61-V (shall be enforced from
01.01.2013); dated 16.05.2014 № 203-V (shall be enforced upon expiry of six months after
the day its first official publication); No 122-VI dated 25.12.2017 (shall be enforced from
01.01.2018).
Article 20. Property Liability of a Citizen
1. A citizen shall be liable for his (her) obligations with all the property he (she) has,
except for the property upon which in accordance with legislative acts claims may not be
imposed.
2. Is excluded by the Law of the Republic of Kazakhstan dated 27.02.2017 № 49-VI (
shall be enforced upon expiry of ten calendar days after the day its first official publication).
Article 20-1. Restoration of solvency and bankruptcy of a citizen of the Republic of
Kazakhstan
1. In case of inability to meet the claims of the creditor (creditors), procedures for
restoring solvency, extrajudicial or judicial bankruptcy shall be applied to the citizen on the
terms and in the manner provided for by the Law of the Republic of Kazakhstan “On
restoring solvency and bankruptcy of citizens of the Republic of Kazakhstan”.
2. This article shall not apply to individuals registered as individual entrepreneurs as
statutorily required by the legislation of the Republic of Kazakhstan.
Footnote. Chapter 2 shall be supplemented by Article 20-1 in accordance with the Law of
the Republic of Kazakhstan dated 30.12.2022 № 179-VII (shall be enforced sixty calendar
days after the date of its first official publication).
Article 21. Bankruptcy of an individual entrepreneur
1. Insolvency of an individual entrepreneur (Article 52 of this Code) is the basis for
declaring him bankrupt.
2. Bankruptcy of an individual entrepreneur shall be recognized in voluntary or
compulsory order according to the rules set up by the Legislation of the Republic of
Kazakhstan on rehabilitation and bankruptcy. Since the recognition of an individual
entrepreneur as a bankrupt, his registration as an individual entrepreneur is no longer valid.
3. When applying the bankruptcy procedures to an individual entrepreneur, his creditors
for obligations not related to entrepreneurial activity are also entitled to submit their claims if
the due date for such obligations has come. The claims of these creditors, not submitted by
them in this order, as well as claims that were not fully satisfied from the insolvency estate,
remain in force and can be brought to collection to the debtor as an individual after the
bankruptcy proceedings are completed. The amount of these claims shall be reduced by the
amount of satisfaction received in the bankruptcy process of the debtor.
07.03.2014 № 177-V (shall be enforced upon expiry of ten calendar days after the day its first
official publication); as amended by the Law of the Republic of Kazakhstan dated 27.12.2019
№ 290-VІ (shall be enforced upon expiry of ten calendar days after the day of its first official
publication)
Article 21-1. Rehabilitation procedures for an individual entrepreneur
A debtor registered as an individual entrepreneur may be subject to any measures not

contradictory to the Legislation of the Republic of Kazakhstan aimed at restoring his solvency
in order to prevent the termination of his entrepreneurial activity.
These measures shall be implemented under a rehabilitation procedure, the procedure and
terms of implementation of which shall be determined by the Legislation of the Republic of
Kazakhstan on rehabilitation and bankruptcy.
Footnote. Chapter 2 supplemented by Article 21-1 in accordance with the Law of the
Republic of Kazakhstan dated 27.12.2019 № 290-VІ (shall be enforced upon expiry of ten
calendar days after the day of its first official publication).
Article 22. Legal Capacity of Minors at the Ages from Fourteen to Eighteen
1. Minors at the age from fourteen to eighteen shall enter into transactions with the
consent of their legal representatives. The form of such consent must be consistent with the
form which is established by legislation for transactions entered into by minors.
2. Minors from fourteen to eighteen years old shall have the right to independently
dispose of their wages, grants and any other income and the intellectual property rights
associated with the paragraphs created by them, and also to enter into small day-to-day
transactions.
3. If there are sufficient grounds, the court may limit or deprive the minor of the right to
independently use his earnings, scholarships, other incomes and the objects of intellectual
property rights created by him.
4. Minors at the age from fourteen to eighteen shall independently bear responsibility with
regard to the transactions committed by them in accordance with the rules of this Article and
they shall be held responsible for any harm caused by their acts, in accordance with the rules
of this Code.
official publication); dated 31.10.2015 № 378-V (shall be enforced from 01.01.2016).
Article 22-1. Announcement of a Minor’s Full Legal Capacity (Emancipation)
1. A minor who has reached the age of 16 may be declared emancipated if he (she) works
under an employment contract or with the consent of his (her) legal representatives is engaged
in entrepreneurial activities.
2. The Declaration of a minor's full legal capacity (emancipation) shall be carried out by
decision of the tutelage and guardianship authorities with the consent of their legal
representatives or in the absence of such agreement, by a court decision.
3. An emancipated minor shall have civil rights and obligations (including for obligations
which have arisen as a result of harm inflicted by him/her), except those rights and
obligations for the acquisition of which by the legislative acts of the Republic of Kazakhstan
is the age limit.
Legal representatives are not liable for the obligations of an emancipated minor.
Footnote. The Code is supplemented by Article 22-1 in accordance with the Law of the
Republic of Kazakhstan dated 12.01.2007 № 225 (shall be enforced from the date of its
official publication); amended by the Law of the Republic of Kazakhstan dated 25.03.2011 №
421-IV (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 23. The Legal Capacity of Minors Under Fourteen (Children)
Footnote. The title of Article 23 as amended by the Law of the Republic of Kazakhstan
1. For minors (children) who have not reached 14 years of age transactions shall be
committed by their legal representatives on their behalf, unless otherwise provided for by
legislative acts.
2. Minors (children) under the age of fourteen years shall have the right to independently
enter only into small day-to-day transactions which are performed at the moment of their
instigation.
Footnote. The Article 23 as amended by the Law of the Republic of Kazakhstan dated
Article 24. The Consent of the Bodies of Guardianship and Sponsorship to Commitment of
Transactions by Minors and on Behalf of Minors
Legislative acts may establish cases where the commitment of a transaction by a minor
and on behalf of a minor shall require prior consent of the guardianship or sponsorship
authorities.
Article 25. The Right of Minors to Lodge Savings into Banks and to Dispose of Savings
1. Minors shall have the right to lodge their savings in banks and to independently dispose
of their savings which are lodged by themselves.
2. Savings which are lodged by somebody else on behalf of minors who have not reached
fourteen years of age, shall be managed of by their parents or any other legitimate
representatives, while minors who have reached fourteen years of age may independently
dispose of savings lodged on their behalf by somebody else.
Article 26. The Recognition of a Citizen as Legally Incapable
1. A citizen who, as a result of psychiatric disease or mental disability, cannot understand

the meaning of his (her) acts or direct them, may be recognized by the court as incapable, and
in this connection, guardianship shall be established over him (her).
2. On behalf of citizens recognized as incapable, the transactions shall be carried out by
his (her) guardian.
3. In the case of a recovery or a significant improvement of the health of the incapable
person, the court shall recognize him (her) as capable, after which guardianship shall be
alleviated over him (her).
Article 27. Restriction of Citizen’s Legal Capacity
1. A citizen who, as a result of abuse of gambling, betting, alcoholic beverages or narcotic

substances, shall put his family in a difficult financial situation may be limited by the court in
legal capacity in the order established by the Civil Procedure Code of the Republic of
Kazakhstan. Guardianship shall be established over him. He shall have the right to
independently make small household transactions. He can make other transactions, as well as
receive earnings, pensions and other income and dispose of them only with the consent of the
trustee.
2. When a citizen ceases to abuse gambling, betting, alcohol or narcotic substances, the
court cancels the restriction of his legal capacity. On the basis of a court decision,
guardianship imposed on a citizen shall be canceled.
Footnote. Article 27 as amended by the Law of the RK dated 02.07.2020 № 356-VI (shall
enter into force upon the expiry of ten calendar days after the day of the first official
publication).
Article 28. The Recognition of a Citizen as Missing
1. Pursuant to the application of interested persons a citizen may be recognized by the

court as missing, if within one year in the place of his (her) domicile there is no information
on his (her) whereabouts.
2. When it is impossible to establish the date of receipt of the last information concerning
the missing person, the beginning of the absence shall be deemed to be the first date of the
month following the one in which the last information was received on the absentee, and if it
is impossible to establish that month, - it shall be the first of January of the following year.
Article 29. The Protection of Property of a Missing Person
1. On the basis of a court decision, guardianship shall be established with regard to the
property of a person who is recognized as missing. Subsistence shall be paid from that
property to the persons whom the missing person was to support, and his debts shall be repaid
with regard to taxes and any other liabilities.
2. Pursuant to the application of the interested persons, the guardianship and tutorship
authority may appoint an administrator to guard and manage the property until the one year
expires after the date when last information concerning the location of the missing person was
received.
Article 30. The Abolition of a Decision to Recognize a Person as Missing
In the case of arrival or the establishment of the locations of a person who is recognized
as missing, the court shall abolish its decision to recognize him (her) as missing and to
establish guardianship over his (her) property.
Article 31. The Announcement of a Citizen as Deceased
1. Pursuant to the application of interested persons, a citizen may be announced by the

court as deceased, if there is no information about him (her) in the place of his domicile for
three years; and, if he disappeared under circumstances which threatened death or which give
grounds to assume his death in an accident, for six months.
2. A military serviceman, or any other person who is missing in connection with military
actions, may be announced deceased not earlier than upon the expiry of two years from the
date of the termination of the military operations.
3. The date of the death of a person who is announced as deceased shall be deemed to be
the day that the decree of the court, which announced him (her) as deceased, enters into legal
force. In the cases of announcing persons as deceased, a person who is missing under
circumstances which threaten death or which invoke the assumption of his death in an
accident, the court may recognize the date of the assumed death of this person as the date of
his death.
4. When the decision of a court announcing a person as deceased enters into legal force,
his death shall be entered into the books for the registration of civil status acts. The
consequences of such an entry shall be the same as of an entry of actual death.
Article 32. The Consequences of the Appearance of a Person Announces as Deceased
1. In the case that a person who has been announced as deceased, re-appears or his (her)
location is established, the relevant court decision shall be annulled.
2. Irrespective of the time of his (her) re-appearance, the citizen may claim the return of
remaining assets which were free of charge transferred to persons after the announcement of
the citizen as deceased, from those persons.
3. If the property of a person announced as deceased, was sold by his (her) legal successor
to third persons who by the time of re-appearance failed to pay the full purchase price, then
the person who reappeared shall have the right to claim the outstanding amount.
4. The persons to whom the property of a citizen who was announced as deceased was
transferred through commercial transactions, shall be obliged to return to him (her) that
property; and in case they do not have it, they must compensate for its value, if it is proved
that at the time of the acquisition of the property they knew that the citizen who was
announced deceased, was alive.
5. The alienator of the assets who knew at the moment of the alienation that the person
announced as deceased is alive, shall bear, jointly with the buyer, the responsibility to return
or compensate the value of the property.
6. When the property of a person who is announced as deceased was transferred to the
State under its right to inherit and was sold, then, after the abolition of the decision to
announce the person as deceased, he (she) shall be repaid the amount which is received from
selling his (her) property subject to its market value as on the date of the payment.
Paragraph 2. Legal Entities

Footnote. Parts III, IV, V should be considered as the Parts V, VI, VII by the Law of the
Republic of Kazakhstan dated July 10,1998 № 282.
I. General Provisions
Article 33. The Definition of a Legal Entity
1. An organization which pursue the recovery of income as the primary purpose of the
activity (commercial organization) or doesn’t have gaining income as a goal and doesn’t
distribute any net income between the parties (non-profit organization) shall be recognized as
the legal entity.
2. A legal entity has a seal with its name. This requirement does not apply to legal entities
that are entities of private entrepreneurship, except for the cases provided for by this Code
and the laws of the Republic of Kazakhstan.
29.12.2014 № 269-V (shall be enforced from 01.01.2015).
Article 34. Thes and Forms of Legal Entities
1. A legal entity may be an organization which pursues the extraction of profits income as
the principal purpose of its activities (commercial organization), or which does not have the
extraction of profits income as such a goal and which does not distribute earned profits,
earned net income between its participants (non-commercial organization).
2. A legal entity which is a commercial organization (enterprise) may be created solely in
the form of a state-owned enterprise, business partnership, joint-stock company or production
cooperative.
3. A legal entity, which is a non-commercial organization, may be created in the form of
an institution, public association, joint-stock company consumer co-operative, public
foundation, religions association and any other form which is provided for by legislative acts.
A non-commercial organization may engage in entrepreneurial activity only for as long as it
is consistent with the objectives of its charter.
3-1. A legal entity that is a non-commercial organization and maintained at the expense of
the state budget may be formed exclusively in the form of a state-owned institution.
4. Legal entities may create associations.
5. A legal entity shall act on the basis of this Code, the Law concerning each of legal
entities, any other legislative acts and their foundation documents.
11.07.1997 № 154; dated 02.03.1998 № 211; dated 10.07.1998 № 282; 16.12.1998 № 320;
dated 12.01.2007 № 225 (shall be enforced from the date of its official publication); dated
publication).
Article 35. The Legal Competence of a Legal Entity
1. A legal entity may have civil rights and bear obligations associated with its activity in
accordance with this Code.
Commercial organizations, except for state-owned enterprises, may have civil rights and
bear civil obligations, which are necessary for the exercise of anys of activity which are not
prohibited by legislative acts or their foundation documents.
In the cases stipulated by legislative acts, an opportunity to engage in another activity may
be prohibited or restricted for legal entities carrying out certains of activity.
A legal entity may engage in certains of activities, the list of which is defined by
legislative acts, only on the basis of a license.
2. Legal capacity of a legal entity emerges at the time of its establishment and terminates
at the time of completion of its liquidation. Legal capacity of a legal entity in the field of
activity for which a permit is required emerges from the moment of obtaining such permit and
terminates at the time of its withdrawal, expiration of validity or invalidation in accordance
with the procedure established by legislative acts of the Republic of Kazakhstan.
3. The legal competence of a legal entity who is a non-commercial organization and
maintained solely at the expense of the state budget (state institution) shall be defined by this
Code and other legislative acts of the Republic of Kazakhstan.
Footnote. Article 35 as amended by the Laws of the Republic of Kazakhstan dated March
2, 1998 № 211; dated December 16, 1998 № 320; dated 16.05.2014 № 203-V (shall be
enforced upon expiry of six months after the day its first official publication).
Article 36. The Rights of Founders (Participants) with regard to the Property of the Legal Entities
Formed by Them
1. The founders (participants) of a legal entity may have obligatory or corporeal rights
with regard to the separate property of the legal entity.
2. Business partnerships, joint-stock companies and co-operatives shall be recognized as
legal entities which property remains under the obligatory rights of their participants (
foundation parties).
3. The organizations which hold their property under the right of economic jurisdiction or
under the right of operational management shall be recognized as legal entities which
properties remain under the right of ownership or under other corporeal rights of their
foundation parties.
4. Public associations, public foundations and religious associations shall be recognized as
legal entities which properties don’t remain under the right of ownership of their foundation
parties.
5. The rights of the founders (participants) to the property of the legal entities and other
legal forms that they have created, are determined by the legislative acts of the Republic of
Kazakhstan.
10.07.1998 № 282, dated 12.01.2007 № 225 (shall be enforced from the day of its official
publication), dated 27.04.2012 № 15-V (shall be enforced upon expiry of ten calendar days
after its first official publication).
Article 37. Bodies of a Legal Entity
1. A legal entity shall acquire civil rights and assume obligations only through its bodies
which operate in accordance with legislative acts and the foundation documents.
2. Thes of the procedure for appointing or electing the bodies of a legal entity and their
powers shall be defined in legislative acts and the foundation documents.
Article 38. The name of a Legal Entity
1. A legal entity shall have its name, which permits to distinguish it from any other
entities.
The name of a legal entity shall consist of its name and an indication of its organizational
and legal form. It may contain any additional information provided for by legislation.
The name of a legal entity shall be indicated in its foundation documents.
It shall be prohibited to use in the name of a legal entity, names which contradict the
requirements of legislation or the norms of public ethics; the proper names of persons, unless
they coincide with the names of participants, or where the participants failed to obtain the
permission from those persons (their heirs) to use the proper name;
2. Under a specific name, a legal entity shall be included into the National Register of
Business Identification Numbers.
The name of the legal entity shouldn’t entirely or partly duplicate the name of the legal
entities registered in the Republic of Kazakhstan.
The name of a legal entity which is a commercial organization, after the registration of the
legal entity, shall be its business name.
A legal entity shall have an exclusive right to use its business name. A person who illicitly
uses somebody else's business name must terminate the use of such a name and to
compensate the losses caused, pursuant to the requirement of the owner of the right to the
business name.
The rights and obligations of a legal entity which are associated with the use of a business
name shall be determined in legislation.
3. (is excluded № 276 dated 12.24.2001)
4. The use of references to official names of the state bodies of the Republic of
Kazakhstan established by legislative acts, acts of the President and Government of the
Republic of Kazakhstan in the business names, service signs, trademarks of the legal entities
which are not state bodies shall be prohibited.
15.07.1996 № 30, dated 02.03.1998 № 211, dated 16.07.1999 № 440, dated 24.12.2001 №
276 (shall be enforced from 01.01.2002), dated 25.03.2011 № 421-IV (shall be enforced upon
expiry of ten calendar days after its first official publication); dated 24.12.2012 № 60-V (shall
be enforced upon expiry of ten calendar days after its first official publication).
Article 39. The Location of a Legal Entity
1. The place where the permanently operating body of a legal entity is situated shall be
recognized as the location of that legal entity.
2. The location of a legal entity shall be indicated in its foundation documents with the
inscription of its full address.
3. In relations with third parties, a legal entity is not entitled to refer to the inconsistency
of the actual address with the address entered in the National Register of Business
Identification Numbers. At that, third parties are entitled to send mail and other
correspondence to the legal entity both at the address entered in the National Register of
Business Identification Numbers and at the actual address.
Footnote. Article 39 as amended by the Law of the Republic of Kazakhstan dated March 2
, 1998 № 211; dated 24.12.2012 № 60-V (shall be enforced upon expiry of ten calendar days
Article 40. The Founders of a Legal Entity
1. A legal entity may be founded by one or several founders.

2. The owners of the property or the bodies and persons authorized by them, and any
other legal entities in the cases specifically provided for by legislative acts may be founders of
a legal entity. At the same time the legal entities which own the property on the basis of a
right of economic jurisdiction or operational management, may be the founders of other legal
entities with the consent of their owners or the bodies authorized by their owners except the
cases provided for by the Laws of the Republic of Kazakhstan.
3. The founders of the legal entity cannot have any advantage over other members of the
legal entity, who are not its founders, except in cases stipulated by legislative acts of the
Footnote. Article 40 as amended by Laws of the Republic of Kazakhstan dated
16.05.2003 № 416, dated 18.02.2011 № 408-IV (shall be enforced upon expiry of ten
Article 41. Foundation Documents of a Legal Entity
1. Unless otherwise provided by this Code and legislative acts of the Republic of
Kazakhstan, a legal entity carries out its activities on the basis of:
1) the charter and the constituent treaty;
2) the charter;
3) the charter and a written decision on establishment of a legal entity (decision of the sole
founder) if a legal entity is established by one person.
In cases provided by legislative acts of the Republic of Kazakhstan, a legal entity that is a
non-profit organization may act on the basis of a general provision on organizations of this
type or a model charter, the content of which is determined by the relevant authorized state
authority.
A legal entity that is a subject of small, medium and large scale business may carry out its
activities on the basis of a standard charter, the content of which is determined by the
Ministry of Justice of the Republic of Kazakhstan.
2. The foundation agreement of a legal entity shall be entered into and its charter shall be
approved by its foundation parties. No foundation agreement shall be entered into if a
commercial organization is established by one person.
3. The foundation documents of a non-commercial organization and of a state-owned
enterprise, must define the objects and aims of the activities of that legal entity.
Foundation documents of a business partnership, joint-stock company and a production
cooperative may provide the objectives and purposes of their activity.
4. In the foundation agreement parties (founders) undertake to create a legal entity, define
the procedure for their joint activities to create it, the conditions for the vesting into its
ownership (business authority, operational management) of their property and for their
participation in its activities. The agreement shall also define the terms and procedure for the
distribution of net income between the founders, management of the business of the legal
entity, cessation of founders and approve its charter, unless it is otherwise provided for by this
Code or legislative acts concerning specifics of legal entities.
Any other provisions may be included into a foundation agreement by the consent of the
founders.
4-1. The decision of the sole founder shall contain the provisions of transfer of ownership
(economic management, operational management) the property and other solutions that do
not contradict to the legislation of the Republic of Kazakhstan.
The decision of the sole founder-legal entity is taken by the authorities that have the right
to make such decisions in accordance with the legislation of the Republic of Kazakhstan and
the charter of the legal entity.
5. The name of a legal entity, its location, procedure for the formation and the competence
of its bodies, provisions of the reorganization and termination of its activities shall be
provided I n the charter.
If a legal entity is established by one person, then a procedure of the formation of the
property and the distribution of profits shall also be defined in its charter.
Other provisions which do not contradict legislation may be specified in a charter.
6. In the case of contradictions between the foundation agreement and the charter of the
same legal entity, their provisions must apply as follows:
1) those of the foundation agreement, when they are associated with internal relationship
of founders;
2) those of the charter, when their application may have significance for relations of the
legal entity with third persons.
7. Any interested parties shall have the right to peruse the charter of a legal entity.
Footnote. Article 41 as amended by the Laws dated 15.07.1996 № 30; dated 19.06.1997
№ 132; dated 11.07.1997 № 154; dated 02.03.1998 № 211; dated 22.04.1998 № 221, dated
10.07.1998 № 282, dated 16.05.2003 № 416, dated 12.01.2007 № 225 (shall be enforced
from the day of its official publication), dated 04.07.2008 N 54-IV (the order of enforcement
see Art. 2), dated 08.12.2009 № 225 - IV (the order of enforcement see Art. 2), dated
01.03.2011 № 414-IV (shall be enforced from the date of its first official publication); dated
official publication); dated 26.12.2019 № 284-VІ (shall be enforced upon expiry of ten
Article 42. The State Registration and Re-Registration of Legal Entities
1. A legal entity which is a non-profit organization is subject to state registration with the
judicial authorities.
A legal entity that is a commercial organization is subject to state registration with the
State Corporation "Government for Citizens", except for cases stipulated by the legislative
acts of the Republic of Kazakhstan.
The procedure for state registration shall be determined by the legislation of the Republic
of Kazakhstan.
2. State registration data, including the name of legal entities, and for commercial
organizations - the company name, are included in the National Register of Business
Identification Numbers.
3. A legal entity shall be deemed to be created from the moment of its state registration.
4. Branches and representations shall be registered in accordance with the procedure
established by legislative acts.
Branches and representations shall be subject to re-registration in the event that they
change their name.
5. Violation of legal entity formation procedure established by the law or noncompliance
of its foundation documents with the law shall cause the refusal to register the legal entity.
The refusal to register on the basis of non-expedience of the formation of a legal entity shall
not be allowed.
The refusal of state registration, as well as the evasion of such registration, may be
appealed in accordance with the procedure established by the Laws of the Republic of
Kazakhstan.
6. A legal entity shall be subject to re-registration in the following cases:
1) reduction of the size of the charter capital;
2) change of name;
3) alteration of the membership of participants in business partnerships (except for the
business partnerships, in which maintaining of the register of members of an business
partnership is carried out by the professional participant of the paper market, who carries out
activities in maintaining the system of registers of securities holders).
Amendments introduced to foundation documents on specified grounds shall be invalid
without the re-registration of the legal entity.
15.07.1996 № 30; dated 11.07.1997 № 154; dated 02.03.1998 № 211; dated 10.07.1998 №
282; dated 16.05.2003 № 416; dated 08.07.2005 N 72 (the order of enforcement see Art. 2);
dated 25.03.2011 № 421-IV (shall be enforced upon expiry of ten calendar days after its
official publication); dated 28.12.2011 № 524-IV (the order of enforcement see Art. 2); dated
publication); dated 02.04.2019 № 241-VI (shall be enforced dated 01.07.2019); dated
29.06.2020 № 351-VI (shall enter into force from 01.07.2021).
Article 43. Branches, representative offices and other separate structural subdivisions of a legal
entity
1. A branch is a separate subdivision of a legal entity located outside its location and
carrying out all or part of its functions, including the representation functions.
2. A representative office is a separate subdivision of a legal entity located outside its
location and carrying out protection and representation of the interests of a legal entity that
performs transactions and other legal actions on its behalf, except for the cases provided for
by legislative acts of the Republic of Kazakhstan.
3. Branches and representative offices are not legal entities. They are endowed with
property by the legal entity that created them and act on the basis of the provisions approved
by them.
4. Legal entities have the right to establish other separate structural subdivisions, except
for the cases established by laws.
Another separate structural subdivision of a legal entity is a territorially separate
subdivision, at the location of which there are stationary workplaces that perform part of the
functions of a legal entity. The workplace is considered stationary if it is created for a period
of more than one month.
Another separate structural subdivision of a government agency is established in cases
directly stipulated by laws.
5. Heads of structural subdivisions (branches and representative offices) of public
associations are elected in accordance with the procedure stipulated by the charter of the
public association and the regulations on its branch or representative office.
Heads of structural subdivisions (branches and representative offices) of religious
associations are elected or appointed in accordance with the procedure stipulated by the
charter of a religious association and the regulations on its branch or representative office.
Heads of branches and representative offices of other forms of legal entities are appointed
by the authorized body of a legal entity and act on the basis of its power of attorney.
Article 44. The Liability of a Legal Entity
1. Legal entities, except for special financial companies, state Islamic special financial
companies, financed by the founder of institutions and state enterprises, are responsible for
their obligations with all their property.
An institution shall be liable for its obligations with the funds at its disposal. When those
are not sufficient the liability for the obligations of an institution shall be borne by its founder.
A public enterprise shall be liable for its obligations with the funds at its disposal.
When funds of a state owned institution are not sufficient, the liability for its obligations
shall be borne by the Government of the Republic of Kazakhstan or the
administrative-territorial unit by the means of the appropriate budget.
Special financial company shall be responsible for its obligations in manner required by
the legislation of the Republic of Kazakhstan on project financing or securitization.
A state Islamic special financial company is responsible for its obligations with the money
at its disposal.
2. An founder (participant) of a legal entity or the owner of its property shall not be liable
under its obligations, and the legal entity shall not be liable under obligations of founder (
participant) of the legal entity, or of the owner of its property, except for the cases stipulated
by this Code, other legislative acts, or the foundation documents of a given legal entity.
3. The founder (participant) and (or) an official found guilty of intentional bankruptcy in
the proceedings on administrative offenses or criminal proceedings, in case of insufficient
funds from a legal entity following the results of bankruptcy proceedings, shall bear
subsidiary liability to creditors.
4. A legal entity shall bear liability before third persons under obligations assumed by a
body of the legal entity in excess of its powers established by the foundation documents,
except for cases stipulated in paragraph 11 of Article 159 of this Code.
Footnote. Article 44 as amended by the Laws of the Republic of Kazakhstan dated July 11
, 1997 № 154; dated March 2, 1998 № 211; dated December 16, 1998 № 320; dated
November 4, 1999 № 472; dated May 20, 2003 № 417; dated February 20, 2006 № 127 (the
order of enforcement see Art. 2); dated January 12, 2007 № 225 (shall be enforced from the
date of its official publication); dated 01.03.2001 № 414-IV (shall be enforced from the date
of its first official publication); dated 12.01.2012 № 539-IV (shall be enforced upon expiry of
ten calendar days after its first official publication); dated 24.11.2015 № 422-V (shall be
enforced from 01.01.2016); dated 27.02.2017 № 49-VI (shall be enforced upon expiry of ten
calendar days after the day its first official publication); dated 27.12.2019 № 290-VІ (shall be
enforced upon expiry of ten calendar days after the day of its first official publication); dated
Article 45. Reorganization of a Legal Entity
1. Reorganization of a legal entity (merger, acquisition, division, separation,

transformation) shall be carried out upon the decision of the owner of property or the body
authorized by the owner, the founders (participants), and also the body authorized by the
constituent documents of the legal entity, or by decision of the judicial bodies, stipulated by
legislative acts of the Republic of Kazakhstan. Legislation of the Republic of Kazakhstan may
provide for other forms of reorganization.
A legal entity shall be reorganised as a voluntary accumulative pension fund, insurance (
reinsurance) organisation, Insurance Indemnity Guarantee Fund, special financial company,
payment organisation, microfinance organisation with due regard to the specifics envisaged
by the laws of the Republic of Kazakhstan on social protection, insurance and insurance
activity, Insurance Indemnity Guarantee Fund, project financing and securitisation, payments
and payment systems, microfinance activity.
Reorganization of the joint-stock companies shall be carried out taking into account the
peculiarities established by the legislation act of the Republic of Kazakhstan concerning
joint-stock companies.
2. Reorganization may be conducted voluntarily or compulsorily.
3. A compulsory reorganization may be effected pursuant to the decision of judicial
bodies in the cases specified by legislative acts.
If the owner of the property of a legal entity, a body authorized by it, its founders or a
body of a legal entity which is authorized to reorganize it by the foundation documents does
not perform the reorganization of the legal entity within the term defined in the decision of
the judicial body, the court shall appoint an administrator of the legal entity and order him (
her) to carry out the reorganization of the legal entity. From the moment of the appointment
of the administrator all the powers associated with the management of the legal entity's
business shall be transferred to him (her). The administrator shall act on behalf of the legal
entity in the court of law, compile the dividing balance sheet and present it for the approval of
the court together with the foundation documents of the legal entities which emerge as a
result of the reorganization of the legal entities. The approval by the court of the indicated
documents shall be the basis for the state registration of the newly-emerged legal entities.
4. A legal entity shall be regarded to be reorganized, except for the case of reorganization
in the form of acquisition, from the moment of the registration of the newly-emerged legal
entities.
When reorganizing a legal entity by merging with another legal entity, the first of them is
considered to be reorganized from the moment of entering information on termination of
activities of the affiliated legal entity into the National Register of Business Identification
Numbers.
19.06.1997 № 134; dated 18.12.200 № 128; dated 08.07.2005 № 72 (the order of
enforcement see Art. 2); dated 20.02.2006 № 127 (the order of enforcement see Art. 2); dated
30.12.2009 № 234-IV; dated 12.01.2012 № 539-IV (shall be enforced upon expiry of ten
calendar days after its first official publication); dated 24.12.2012 № 60-V (shall be enforced
upon expiry of ten calendar days after its first official publication); dated 21.06.2013 № 106-
V (shall be enforced upon expiry of ten calendar days after its first official publication); dated
26.07.2016 № 12-VІ (shall be enforced upon expiry of thirty calendar days after the day its
first official publication); dated 12.07.2022 № 138-VII (shall be enforced sixty calendar days
after the date of its first official publication); № 226-VII of 20.04.2023 (shall take effect from
01.07.2023).
Article 46. The Legal Succession when Legal Entities are Reorganized
1. When legal entities merge, the rights and obligations of each of them shall be
transferred to the newly-emerged legal entity in accordance with the delivery acceptance act.
2. When a legal entity is acquired by any other legal entity, the rights and obligations of
the acquired legal entity shall be transferred to the latter in accordance with the delivery
acceptance act.
3. When a legal entity is divided, its rights and obligations shall be transferred to the
newly-emerged legal entities in accordance with the dividing balance sheet.
4. When one or several legal entities are appropriated out of a legal entity, the rights and
obligations of the reorganized legal entity shall be transferred to each one of them in
accordance with the dividing balance sheet.
5 . When a legal entity of one is transformed into a legal entity of another (altering its
organizational and legal form), the rights and obligations of the reorganized legal entity shall
be transferred to the newly-emerged legal entity in accordance with the delivery acceptance
act.
Article 47. The Delivery Acceptance Act and Diving Balance Sheet
1. The property rights and obligations of a reorganized legal entity shall be transferred to
the newly created legal entity: in accordance with the delivery acceptance act in the case of
mergers and acquisitions; and in accordance with the dividing balance sheet in the case of
divisions and appropriations.
The delivery acceptance act and dividing balance sheet must contain the provisions
concerning the legal succession with regard to all the obligations of the reorganized legal
entity with regard to all its creditors and debtors, including the obligations which are
challenged by parties.
2. The delivery acceptance act and dividing balance sheet shall be approved by the owner
of the property of the legal entity or by the body which adopted the decision to reorganize the
legal entity, and submitted together with the foundation documents for the registration of the
newly-emerged legal entities or the introduction of amendments to the foundation documents
of existing legal entities.
Failure to present an appropriate delivery acceptance act or dividing balance sheet
together with the foundation documents and also the absence of provisions concerning legal
succession with regard to the obligations of the reorganized legal entity in them shall entail
the denial of the state registration of the newly emerged legal entities.
3. Property (rights and obligations) shall be transferred to a legal successor at the moment
of its registration, unless otherwise provided for by legislative acts or in the decision
concerning the reorganization.
Article 48. The Guarantees of the Rights of Creditors of a Legal Entity in the Case of its
Reorganization
1. Owner of property of a legal entity or the body that made the decision to reorganize a
legal entity shall be obliged to notify the creditors of the reorganized legal entity thereof in
writing. The period for filing claims may not be less than two months from the receipt of
notices by the creditors of the reorganized legal entity.
2. In the case of division or appropriation the creditor of a legal entity under
reorganization shall have the right to demand a premature termination of the obligations, the
debtor under which is that legal entity and compensation of losses.
3. If the dividing balance sheet does not provide for any possibility to identify the legal
successor of the reorganized legal entity or the legal successor has not enough property to
fulfill the obligations aroused prior to the reorganization the newly-emerged legal entities as
well as the legal entity from which another legal entity was appropriated shall be jointly and
severally responsible for the obligations of the reorganized legal entity before its creditors.
02.03.1998 № 211; dated 02.04.2010 № 262-IV (shall be enforced from 21.10.2010); dated
publication).
Article 49. Grounds for the Liquidation of a Legal Entity
1. Upon the decision of the owner of its property or the body authorized by the owner, as
well as the body of the legal entity authorized by the constituent documents, the legal entity
may be liquidated for any reason.
Liquidation of a legal entity - voluntary accumulative pension fund, insurance (
reinsurance) organisation, Insurance Benefits Guarantee Fund, special financial company
shall be performed with due regard to the specifics envisaged by the laws of the Republic of
Kazakhstan on social protection, insurance and insurance activity, Insurance Benefits
Guarantee Fund, project financing and securitisation.
2. A legal entity may be liquidated in accordance with a court decision in the following
cases of:
1) bankruptcy;
2) recognition of registration of a legal entity as invalid, because of violations of
legislation made in the formation of that legal entity, which cannot be eliminated;
3) the absence of a legal entity, as well as the founders (participants) and officers, without
which a legal entity may not operate for one year, at its location or the actual address;
4) carrying out of activities in gross violation of the legislation:
systematically carrying out of activities contradicting the statutory purposes of the legal
entity;
carrying out activities without a proper license or activities prohibited by legislative acts;
5) in any other cases specified by legislative acts.
3. The claim to liquidate a legal entity on the grounds indicated in the second paragraph of
this Article, may be presented to the court by the state body to which the right to file such
claims is granted by the legislative acts, and in the cases of bankruptcy - also by the creditor.
By a court decision on liquidation of a legal entity, the obligation to liquidate a legal
entity may be imposed on the owner of its property, the authority authorized by owner, the
authority authorized to liquidate a legal entity by its constituent documents, the authority (
person) that initiated the procedure for compulsory liquidation of a legal entity, or another
authority (person), if the exercise of the functions of liquidating a legal entity by this authority
(person) not contradictory to the Legislation of the Republic of Kazakhstan.
4. If the value of property of a legal entity, in respect of which a liquidation decision is
taken in the manner prescribed by paragraph 1 of this article, is not sufficient to satisfy the
creditors' claims, such legal entity must be liquidated in accordance with the procedure
established by the legislation of the Republic of Kazakhstan on rehabilitation and bankruptcy.
5. Liquidation of certains of legal entities shall be possible, pursuant to a decision of the
relevant body which is authorized by the state, on the grounds stipulated in legislative acts.
128; dated 24.12.2001 № 276 (shall be enforced from 01.01.2002); dated 20.02.2006 № 127 (
the order of enforcement see Art. 2); dated 12.01.2007 № 225 (shall be enforced from the
date of its official publication); dated 21.07.2007 № 299; dated 30.12.2009 № 234-IV; dated
25.03.2011 № 421-IV (shall be enforced upon expiry of ten calendar days after its official
publication); dated 12.01.2012 № 539-IV (shall be enforced after upon expiry of ten calendar
days after its official publication); dated 21.06.2013 № 106-V (shall be enforced upon expiry
of ten calendar days after its first official publication); dated 07.03.2014 № 177-V (shall be
enforced upon expiry of ten calendar days after the day its first official publication); dated
16.05.2014 № 203-V (shall be enforced upon expiry of six months after the day its first
official publication); dated 27.12.2019 № 290-VІ (shall be enforced upon expiry of ten
calendar days after the day of its first official publication); dated 05.01.2021 № 409-VI (shall
enter into force from 01.01.2022); № 226-VII of 20.04.2023 (shall come into force on
01.07.2023).
Article 50. The Procedure for the Liquidation of Legal Entities
1. The owner of the property of the legal entity or the body that made the decision to
liquidate the legal entity is obliged to immediately notify the judicial body or the State
Corporation "Government for Citizens", which carries out the registration of legal entities, the
state revenue body at the place of registration in writing or via an Internet resource with the
use of an electronic digital signature about it.
2. The owner of the property of a legal entity or a body which took the decision to
liquidate the legal entity shall appoint the Liquidation Commission and establish the
procedure and dates for the liquidation in accordance with this Code.
From the moment that the Liquidation Commission is appointed, it shall acquire the
powers associated with managing of the property and the business of the legal entity. The
Liquidation Commission shall act in the court on behalf of the legal entity under liquidation.
3. Liquidation committee publishes information on liquidation of a legal entity, as well as
the procedure and deadline for filing claims by its creditors in periodicals distributed
throughout the territory of the Republic of Kazakhstan. The period for filing claims may not
be less than two months from the date of publication of the announcement of liquidation,
except for cases of bankruptcy. In case of bankruptcy, the claims of creditors to the bankrupt
should be declared not later than within a month from the date of publication of the
announcement on the procedure for filing claims by creditors.
A Liquidation Commission shall take steps to identify creditors and to recover debts, and
also it shall give creditors written notice about the legal entity liquidation.
4. Upon expiry of the period for creditors to file their claims, the Liquidation Commission
shall compile the intermediary liquidation balance-sheet which shall contain information
concerning the composition of the property of the legal entity under liquidation, the list of
claims filed by the creditors, and also concerning the results of the examination of them.
The intermediary liquidation balance-sheet shall be approved by the owner of the property
of the legal entity or by the body which took the decision to liquidate that legal entity.
When drawing up intermediary liquidation balance-sheet the property of the liquidating
legal entity shall not include allocated assets, which are collaterals for the special financial
company’s obligations in project finance, for the special financial company’s bonds during
securitization, issued in accordance with the legislation of the Republic of Kazakhstan on
project finance and securitization and mortgage property that is following collateral for the
mortgage bonds: rights to claim under the agreement mortgage loan (including mortgage
certificates), as well as government securities of the Republic of Kazakhstan in the cases
where the ownership of the bonds came from their holders or transferred to them on
transactions or on other grounds stipulated by legislative acts of the Republic of Kazakhstan.
Specified property and leased assets shall be transferred by liquidation committee to the
representative of mortgage bond holders, representative of creditors and (or) holders of bonds,
representing, determined in accordance with the legislation of the Republic of Kazakhstan on
project finance and securitization, to satisfy the claims of creditors.
When drawing up an interim liquidation balance sheet, the property of a state Islamic
special financial company being liquidated does not include the property sold to the state
Islamic special financial company on the basis of a decision of the Government of the
Republic of Kazakhstan. The specified property is transferred by the liquidation commission
to the ownership of the Republic of Kazakhstan in the manner and within the terms
determined by the Government of the Republic of Kazakhstan.
5. If a legal entity under liquidation (except for state-owned institutions) is short of funds
for the satisfaction of the creditors' claims, the liquidation commission shall carry out a sale of
the assets of the legal entity in a public auction in accordance with the procedure established
for the execution of court decisions.
When selling pledged property included in the property of the legal entity being liquidated
from a public auction, the requirements of pledge creditors are satisfied mainly to other
creditors within the amount received from the sale of pledged property.
In case of insufficiency of the sum from realisation of a subject of pledge the remained
sum of requirements of the pledge creditor shall be satisfied in order of priority established by
article 51 of the present Code.
6. Payment of money to creditors of the liquidated legal person shall be made by the
liquidation commission in order of priority established by article 51 of the present Code,
according to the intermediate liquidation balance sheet, since the date of its approval. Features
of distribution of property of joint-stock companies shall be established by the legislation of
the Republic of Kazakhstan on joint-stock companies.
If the property of the legal entity being liquidated contains pledged property, the pledge
creditor shall have the right to satisfy its claims by accepting pledged property in kind.
The Liquidation Commission within ten working days from the date of receipt of the
notification from the pledge creditor on acceptance of the pledged property in kind carries out
its assessment.
The transfer of pledged property to the pledge creditor shall be made after the assessment,
taking into account the requirements stipulated by parts five and six of this paragraph.
If the estimated value of the pledged property, less the expenses incurred for the
assessment of the pledged property, is greater than the claims of the pledge lender, the
difference shall be returned by the pledge lender to the property of the legal entity being
liquidated.
If the estimated value of pledged property less expenses incurred for assessment of the
pledged property is less than the claim of the pledge creditor, the claim of the pledge creditor
in the amount of the difference shall be satisfied in order of priority established by Article 51
of this Code.
7. Upon completion of the settlements with creditors, the liquidation commission shall
compile the liquidation balance-sheet, which shall be approved by the owner of the assets of
the legal entity, or by the body which adopted the decision to liquidate the legal entity.
8. The assets which remain upon the satisfaction of creditors' claims shall be used for the
purposes indicated in the foundation agreements.
9. In the event that a public enterprise in liquidation is short of assets, and in the case of
an institution in liquidation being short of monetary resources funds for satisfying the claims
of creditors, the latter shall have the right to appeal to the court with an action to satisfy the
remaining amount of claims at the expense of the owner of the assets of the enterprise or
institution.
9-1. Is excluded by the Law of the Republic of Kazakhstan dated 01.03.2011 № 414-IV (
shall be enforced from the date of its first official publication).
10. Liquidation of a legal entity is considered complete, and a legal entity - ceased its
activity after entering information about this in the National Register of Business
Identification Numbers.
Footnote. Article 50 as amended by the Laws of the Republic of Kazakhstan dated July 5,
1996 № 30; dated July 11, 1997 № 154; dated March 2, 1998 № 211; dated July 10, 1998 №
282; dated December 16, 1998 № 320; dated June 3, 2003 № 426; dated January 10, 2006 №
115 (shall be enforced from the date of its official publication); dated February 20, 2006 №
127 (the order of enforcement see Art. 2); dated January 12, 2007 № 225 (shall be enforced
from the date of its official publication); dated 01.03.2011 № 414-IV (shall be enforced from
the day of its first official publication); dated 12.01.2012 № 539-IV (shall be enforced upon
expiry of ten calendar days after its first official publication); dated 24.12.2012 № 60-V (shall
be enforced upon expiry of ten calendar days after its first official publication); dated
official publication); dated 07.11.2014 № 248-V (shall be enforced upon expiry of ten
calendar days after the day its first official publication); dated 29.10.2015 № 376-V (shall be
enforced from 01.01.2016); dated 24.11.2015 № 422-V (shall be enforced from 01.01.2016);
dated 27.02.2017 № 49-VI (shall be enforced upon expiry of ten calendar days after the day
of its first official publication); № 241-VI dated 02.04.2019 (shall be enforced dated
01.07.2019).
Article 51. Satisfying the Claims of Creditors
1. In case of liquidation of a legal entity, except for cases of bankruptcy, the claims of its
creditors shall be satisfied in the following order:
1) on a first-priority basis, the claims to discharge aliments withheld from wage and (or)
other income as well as the claims of citizens to whom the enterprise in liquidation bears the
liability for causing harm to life and health, by way of capitalizing appropriate periodic
payments shall be satisfied;
2) secondly - calculations shall be made for remuneration for labor and payment of
compensation to persons who worked under an employment contract, payment of arrears for
social contributions to the State Social Insurance Fund, mandatory pension contributions,
deducted from salaries, mandatory professional pension contributions, on deductions and (or)
contributions for mandatory social health insurance to the Social Health Insurance Fund, as
well as payment of fees under copyright contracts, except for the cases when part of the
amounts of claims in accordance with the legislative act of the Republic of Kazakhstan
regulating bankruptcy matters shall be satisfied in the fifth turn;
3) in the third place - creditors' claims on the obligations secured by the pledge of the
property of the bankrupt being liquidated shall be satisfied within the limits of the security
amount, except for the claims of creditors - holders of mortgage bonds secured by the pledge
of the rights of claim under the housing mortgage loan agreements (including the pledge of
mortgage certificates), state securities of the Republic of Kazakhstan in cases when the
ownership of the said bonds has arisen for their holders or has passed to them under
transactions or on other grounds, provided provided by legislative acts of the Republic of
Kazakhstan, and also requirements of creditors which are satisfied according to a part of
second point 5 or a part of second point 6 of article 50 of the present Code;
4) on a fourth -priority basis, the tax and other compulsory payment debt shall be repaid.
5) in the fifth turn - settlements with other creditors in accordance with the legislative acts
of the Republic of Kazakhstan, as well as with the pledge creditors in cases provided for by
part three of paragraph 5 and part six of paragraph 6 of Article 50 of this Code;
2. The claims of each priority shall be satisfied upon the complete satisfaction of the
claims of the previous priority.
3. If assets of a legal entity in liquidation are not sufficient, they shall be distributed
among the creditors of each relevant turn in proportion to the amounts of claims which are
subject to satisfaction, unless otherwise is provided for by law.
4. In the case of the refusal of the liquidation commission to satisfy the claims of a
creditor or of an evasion from their consideration, the creditor shall have the right, prior to the
approval of the liquidation balance-sheet of a legal entity, to appeal to the court with the
action against the liquidation commission. Upon the decision of the court, the claims of the
creditor may be satisfied at the expense of the remaining assets of the legal entity in
liquidation.
5. The assets which remain upon the satisfaction of the claims of creditors of the legal
entity, shall be transferred to its owner or the founders (participants) which have corporeal
rights to those assets or any obligatory rights to the legal entity, unless otherwise provided for
by legislation or the foundation documents of the legal entity.
6. The claims of creditors which are not satisfied because of a shortfall of assets of the
legal entity in liquidation and also those which are not claimed before the approval of the
liquidation balance-sheet shall be deemed to be satisfied.
Also the claims of creditors which are not recognized by the liquidation commission shall
be deemed to be cancelled, unless the creditor appeals to the court with the action, as well as
the claims the satisfaction of which was denied to the creditors by the court.
January 21, 1997 № 68; dated March 2, 1998 № 211; dated July 11, 2001 № 239; dated July
3, 2003 № 426; dated April 8, 2004 № 542 (shall be enforced from January 1, 2005); dated
January 12, 2007 № 225 (shall be enforced from the date of its official publication); dated
after the day its first official publication); dated 16.11.2015 № 406-V (shall be enforced from
01.07.2017); dated 02.04.2019 № 241-VI (shall be enforced upon the expiration of ten
Article 52. Bankruptcy
Bankruptcy is an insolvency of a debtor recognized by a court decision, which is the basis

for its liquidation.
Amendment of part two is provided by the Law of the Republic of Kazakhstan dated
The insolvency of the debtor shall be established by the court, taking into account the
conclusion on financial stability, drawn up in accordance with the Legislation of the Republic
of Kazakhstan on rehabilitation and bankruptcy.
Footnote. Article 52 is in the wording of the Law of the Republic of Kazakhstan dated
21.01.1997 № 68, dated 29.06.1998 № 238, as amended by the Law of the Republic of
Kazakhstan dated 05.07.2008 № 60-IV (the order of enforcement see Art. 2); dated
official publication); dated 16.11.2015 № 406-V (shall be enforced from 01.07.2017); dated
27.12.2019 № 290-VІ (shall be enforced upon expiry of ten calendar days after the day of its
first official publication).
Article 53. Composition in Bankruptcy
1. Recognition of bankruptcy is possible in a voluntary or compulsory procedure.

2. Recognition of bankruptcy in a voluntary procedure shall be carried out on the basis of
the debtor's application to the court.
3. Recognition of bankruptcy in a compulsory procedure shall be carried out on the basis
of the creditor application to the court, and in the cases provided for by legislative acts, also
applications from other entities.
Footnote. Article 53 is in the wording of the Laws of the Republic of Kazakhstan dated
January 21, 1997 № 68; dated July 29, 1998 № 238.
Article 54. Rehabilitation procedures for a legal entity
Any legal entity - a debtor may be subject to any measures not contradictory to the
Legislation of the Republic of Kazakhstan aimed at restoring its solvency in order to prevent
liquidation.
These measures shall be implemented under a rehabilitation procedure, the procedure and
terms of implementation of which are determined by the Legislation of the Republic of
Kazakhstan on rehabilitation and bankruptcy.
27.12.2019 № 290-VІ (shall be enforced upon expiry of ten calendar days after the day of its
Article 54-1. External Monitoring

Footnote. Article 54-1 is excluded by the Law of the Republic of Kazakhstan dated
Article 55. Consequences of initiation of bankruptcy proceedings
1. From the day the court makes a decision on declaring a debtor bankrupt and
commencement of bankruptcy proceedings:
1) the owner of the property of the bankrupt (the body authorized by it), the founders (
participants), all bodies of the bankrupt legal entity are prohibited from alienating the
property and paying off obligations;
2) the terms of all debt obligations of the bankrupt are considered expired;
3) accrual of penalty and remuneration (interest) on all types of debts of the bankrupt is
terminated;
4) disputes of a property nature with the bankrupt's participation that are considered in
court are terminated, if the decisions taken on them have not come into force;
5) claims may be brought against the bankrupt only within the bankruptcy procedure,
except for the claims for implementation of guarantees of third parties, as well as the
enforcement of collateral in cases where the third parties act as a pledger;
6) on the basis of the application of the temporary or bankruptcy administrator and the
provided copy of the court's decision to declare the debtor bankrupt, all restrictions and
encumbrances on the bankrupt estate (collection orders of financial and government agencies
on bank accounts of the debtor, seizure of property, imposed by bailiffs, etc.) are removed
without taking the relevant decisions of the bodies that imposed them;
7) imposition of new arrests on the property of the bankrupt and other restrictions on
disposal of assets of the bankrupt shall be allowed only on claims for recognition of the
transaction null and reclamation of property from unlawful possession, applicable to the
bankrupt;
8) the bankrupt’s estate, not transferred to the purchaser at the time of initiation of
bankruptcy proceedings shall be included in the estate of the bankrupt and the creditor or
purchaser frustrated by failure to fulfill obligations has the right to file claims against the
debtor within bankruptcy procedures.
Article 56. Release of an Insolvent Debtor from Debt

Footnote. Article 56 is excluded by the Law of the Republic of Kazakhstan dated
30.12.2022 № 179-VII (shall be enforced sixty calendar days after the date of its first official
publication).
Article 57. The termination of Activities of a Legal Entity which is a Bankrupt
1. The recognition by the court of a legal entity as insolvent (bankrupt) shall entail its
liquidation.
2. Activities of a bankrupt legal entity shall be deemed terminated upon its deletion from
the National Register of Business Identification Numbers.
publication).
II. Business Partnerships

1. General Provisions
Article 58. The Basic Provisions Concerning Business Partnerships
1. A business partnership shall be recognized to be a commercial organization with its

charter capital divided into shares (contributions) of the founders (participants). Properties
created at the expense of the investments of the founders (participants) and also produced and
acquired by the business partnership in the course of its activities shall belong to it under the
right of ownership.
2. Business partnerships may be created in the form of a full partnership, partnership in
commendam, limited liability partnership, partnership with additional liability.
3. Business partnership, except full and partnerships in commendam can be created by
one person, who becomes its only participant.
Only citizens may be the participants of a full partnership and full partners in a
partnership in commendam.
4. The charter and the foundation agreement shall be the foundation documents of a
business partnership.
The charter shall be the foundation document of a business partnership which is
established by one person (one participant).
5. Is excluded by the Law of the Republic of Kazakhstan dated 24.12.2012 № 60-V (shall
be enforced upon expiry of ten calendar days after its first official publication).
6. The foundation documents of a business partnership must also contain, apart from the
information indicated in paragraphs 4 and 5 of article 41 of this Code, the provisions
concerning the shares of each of participants; the size, composition, deadlines and the
procedure for their making the contributions to the charter capital of the partnership;
concerning the liability of the participants for the violation of the obligations with regard to
making the contributions to the charter capital of the partnership, and any other information
which is contemplated by legislative acts.
7. Excluded by the Law of the Republic of Kazakhstan dated 02.03.1998 № 211.
8. A business partnership may be the foundation party of any other business partnerships,
except for the cases specified in legislative acts.
9. Excluded by the Law of the Republic of Kazakhstan dated 02.07.2018 № 166-VI (shall
be enforced upon expiration of ten calendar days after the day of its first official publication).
11.07.1997 №154; dated 02.03.1998 № 211; dated 10. 07.1998 № 282; dated 16.05.2003 №
416; dated 08.07.2005 № 72 (the order of enforcement see Art. 2); dated 12.01.2007 № 225 (
shall be enforced from the date of its official publication); dated 20.01.2010 № 239-IV; dated
official publication); dated 24.12.2012 № 60-V (shall be enforced upon expiry of ten calendar
days after its first official publication); dated 02.07.2018 № 166-VI (shall be enforced upon
the expiration of ten calendar days after the day of its first official publication).
Article 59. Contributions to the Charter Capital of a Business Partnership. The Share of a
Participant in the Charter Capital and in the Assets of a Partnership
1. A contribution to the authorized capital of an economic partnership may be money,

securities, things, property rights, including rights to the results of intellectual activity, and
other property (with the exception of special financial companies established in accordance
with the legislation of the Republic of Kazakhstan on project financing and securitization,
microfinance organizations established in accordance with the legislation of the Republic of
Kazakhstan on microfinance activities, collection agencies established in accordance with the
legislation of the Republic of Kazakhstan on collection activities, and Islamic special
financial companies established in accordance with the legislation of the Republic of
Kazakhstan on the securities market, the authorized capital of which is formed exclusively by
money).
Contributions of founders (shareholders) to the charter capital in kind or in the form of
property rights are valued in cash by agreement of all founders or by decision of the general
meeting of all shareholders of the partnership. If the value of such contribution exceeds the
amount equivalent to twenty thousand of monthly calculation indices, its evaluation shall be
confirmed by the valuer.
The money's worth of the participants' contributions may be confirmed by accounting
documents of the partnership or the statement of its auditors, when a business partnership is
re-registered.
The founders (participants) of a partnership, within five years from the moment of such
valuation, shall bear joint and several liability to creditors of the partnership within the limits
of the amount on which the value of the contribution was overstated.
In the cases where the right to use property is transferred to a partnership as a contribution
, the size of such a contribution shall be determined by a payment for the use of such property
, as calculated for the entire period indicated in the foundation documents.
It is not allowed to make deposits in the form of personal non-property rights and other
intangible benefits. Also, it is not allowed to make deposits by offsetting the participants'
claims to the partnership, except for the cases provided for by legislative acts of the Republic
of Kazakhstan.
2. Shares of all participants in the charter capital, and accordingly their shares in the value
of property of the business partnership (a share in the property) shall be proportionate to their
contributions into the charter capital, unless it is otherwise stipulated in the foundation
documents.
A participant in an economic partnership has the right to pledge and (or) sell its share or a
part thereof in the property (authorized capital) of the partnership, unless otherwise stipulated
by legislative acts of the Republic of Kazakhstan or constituent documents.
A contract of alienation (assignment) of the right of a retiring participant of an economic
partnership to a share in the property (authorized capital) of a partnership or a part thereof, to
which the individual is a party, shall be notarized.
3. The procedure and deadlines for making the contributions to the charter capital and also
liability for the failure to fulfill the obligations associated with the formation of the charter
capital, shall be established in legislative acts and (or) foundation documents.
4. Reduction of the charter capital of a business partnership shall be allowed only after the
notification of all its creditors. The latter, in this case, shall have the right to demand
premature termination the partnership ahead of time, or execution of the relevant obligations,
and compensation for their losses.
Reduction of the charter capital, in violation of the procedure established in this paragraph
, shall be the basis for the liquidation of the partnership, pursuant upon a decision of the court,
pursuant to an application from interested parties.
127 (the order of enforcement see Art. 2), dated 05.05.2006 № 139 (the order of enforcement
see Art. 2), dated 12.02.2009 № 133-IV (the order of enforcement see Art. 2), dated
official publication), dated 12.01.2012 № 539-IV (shall be enforced upon expiry of ten
calendar days after its first official publication), dated 26.11.2012 № 57-V (shall be enforced
upon expiry of ten calendar days after its first official publication); dated 24.12.2012 № 60-V
(shall be enforced upon expiry of ten calendar days after its first official publication); dated
24.11.2015 № 422-V (shall be enforced from 01.01.2016); dated 27.02.2017 № 49-VI (shall
be enforced upon expiry of ten calendar days after the day its first official publication); dated
21.01.2019 № 217-VI (shall be enforced upon the expiration of ten calendar days after the
day of its first official publication); dated 03.07.2019 № 262-VІ (shall be enforced from
01.01.2020); dated 24.05.2021 № 43-VII (shall enter into force from 01.01.2022).
Article 60. Managing a Business Partnership
1. The general meeting (meeting of the representatives) of the participants shall be the
supreme body of a business partnership.
In business partnerships, except for the full partnership and partnership in commendam,
founded by one person, the powers of a general meeting shall belong to its sole participant.
2. In a business partnership there shall be an executive body (collective or (and)
individual), which carries out the day-to-day management of its activities and which is
accountable to the general meeting (meeting of the representatives) of its participants. The
individual governing body may not be from among its participants.
The following may be formed as collegiate bodies of a partnership:
1) the board (directorate);
2) the supervisory council;
3) other bodies in the cases stipulated in legislative acts, or by a decision of the general
meeting (the meeting of representatives) of participants of a business partnership.
2-1. In cases of recognition of a business partnership as bankrupt or application of a
rehabilitation procedure and appointment of a temporary or bankrupt or rehabilitation
manager in the manner prescribed by law, all powers to manage it are transferred to the
temporary or bankrupt or rehabilitation manager, respectively.
3. The authority of the governing bodies of a business partnership, the procedure for their
election (appointment) and also the procedure for their adoption of decisions shall be
determined in accordance with this Code, legislative acts and the foundation documents.
4. In order to audit, and to confirm the accuracy of financial statements, a business
partnership may hire a professional auditor, who is not related to the partnership or its
participants by property interests (independent audit).
Auditing of a business partnership must be carried out at any time, pursuant to a claim of
one or several participants of the partnership at the expense of its (their) funds.
The procedure for conducting an audit of a business partnership activity shall be
established by legislation and the foundation documents of the partnership.
Footnote. Article 60 as amended by the Laws of the Republic of Kazakhstan dated March
2, 1998 № 211; dated April 22, 1998 № 221; dated May 5, 2006 № 139 (the order of
enforcement see Art. 2); dated January 12, 2007 № 225 (shall be enforced from the date of its
official publication); dated 07.03.2014 № 177-V (shall be enforced upon expiry of ten
Article 61. The Rights and Obligations of Participants of a Business Partnership

1. The participants of a business partnership shall have the following rights:
1) to participate in managing the affairs of the business partnership in accordance with the
procedure which is determined in the foundation documents;
2) to obtain information concerning the activities of the business partnership and to peruse
its documents in accordance with the procedure established by the foundation documents;
3) to participate in distribution of net income. The terms of the constituent documents
providing for elimination of one or more participants from participation in distribution of net
income are void;
4) to obtain in the case of liquidation of a business partnership part of its property which
corresponds to their share in the property of the partnership, which remains after the
settlements with the creditors or its worth;
5) Excluded by the Law of the Republic of Kazakhstan dated 02.03.1998 № 211.
Participants in a business partnership may also have other rights provided for by
legislative acts and constituent documents.
2. The participants of a business partnership shall be obliged as follows:
1) to comply with the requirements of the foundation documents;
2) to make contributions in accordance with the procedure, in the amounts, by the
methods and within the deadlines specified in the foundation documents;
3) not to divulge the information which the business partnership declares as a commercial
secret.
The participants of a business partnership may bear any other responsibilities which are
specified by the legislative acts of the Republic of Kazakhstan and the foundation documents.
, 1997 № 154; dated March 2, 1998 № 211; dated February 19, 2007 № 230 (the order of
enforcement see Art. 2); dated 27.02.2017 № 49-VI (shall be enforced upon expiry of ten
Article 62. Reorganization of Business Partnerships
1. Business partnerships of one may be reorganized into business partnerships of the

others or into joint stock companies or in to production co-operatives upon a decision of the
general meeting of the participants in the cases and in accordance with the procedures
provided for by legislative acts.
2. When reorganizing a full or a partnership in commendam into a joint-stock company,
limited liability or additional liability partnership, each full partner that became a participant
of the joint-stock company, limited liability partnership or additional liability partnership,
shall within two years bear subsidiary liability with all his assets on the obligations which
were reorganized to the joint-stock company, the limited liability partnership or additional
liability partnership from the full or partnership in commendam. The alienation by a former
full partner of his shares shall not exempt him (her) from such a liability.
Footnote. Paragraph 1 of Article 62 is supplemented on the basis of the Law of the
Republic of Kazakhstan dated July15, 1996 № 30 "On Introduction of Amendment and
Supplements into some Legislative Acts of the Republic of Kazakhstan. As amended by the
Law of the Republic of Kazakhstan dated July16, 1999 № 436.
2. Full Partnership
Article 63. The Fundamental Provisions Concerning Full Partnership
1. A partnership, which participants, in the case of the insufficiency of the property of the
full partnership, bear a joint liability upon it obligations with all the property that they have
shall be recognized as a full partnership.
2. A citizen may be the participant of only one full partnership.
Article 64. The Charter Capital of the Full Partnership
The amount of the charter capital of a full partnership shall be determined by it foundation
parties, but it may not be less than the minimum amount specified by legislative acts of the
The minimum size of the charter capital of microfinance institutions, established in the
form of a full partnership shall be determined by the Legislation of the Republic of
Kazakhstan on microfinance activity.
The minimum amount of authorized capital of collection agencies established in the form
of a full partnership is determined by the legislation of the Republic of Kazakhstan on
collection activities.
publication); as amended by the Law of the Republic of Kazakhstan dated 03.07.2019 № 262-
VІ (shall be enforced from 01.01.2020); dated 24.05.2021 № 43-VII (shall enter into force
from 01.01.2022).
Article 65. Managing the Affairs of a Full Partnership
1. The general meeting of a full partnership shall be the supreme body of the full
partnership. Resolutions on the internal issues of a full partnership shall be adopted by
unanimous consent of all the participants. The foundation agreement of a partnership may
stipulate the cases, where a decision is to be adopted by a majority of votes of the participants
. Each participant of a full partnership shall have one vote, unless the foundation agreement
stipulates any other procedure for determining the number of votes of its participants. The
foundation agreement may stipulate that the number of votes which is available to the
participants shall be determined in proportion to their share in the charter capital.
2. Managing a full partnership subject to the provisions of paragraph 1 of this Article,
shall be carried out by the executive bodies of the full partnership. Thes of, the procedure for
the formation of governing bodies and their authority shall be defined in the foundation
documents.
3. A participant of a full partnership shall not have the right to commit in his (her) name
and his (her) interests or in the interests of third persons without consent of other participants,
the transactions which are identical to those which constitute the object of activities of the
partnership. In the case of violating this rule, the partnership shall have the right to demand
from such a participant either compensation of losses incurred by the partnership, or transfer
to the partnership of all the benefits acquired through such transactions.
4. The bodies of a full partnership, to which it is delegated to transact the business of the
partnership, shall be obliged to present comprehensive information about their activities to all
the participants, upon their request.
5. A participant who acts for common interests without authorization, in the cases where
his (her) actions are not approved by all the other participants, shall have the right to claim
from the partnership compensation of expenditures incurred by him (her), under the condition
that he (she) proves that due to his (her) efforts the partnership has economized or
appropriately acquired assets which exceed in their value the expenditures incurred by the
partnership.
Footnote. Article 65 as amended by the Law of the Republic of Kazakhstan dated July 11,
1997 № 154.
Article 66. Transfer of a Share (Part of a Share) of a Participant of a Full Partnership
1. A transfer by a participant of his (her) share (part of share) to any other participants of a
full partnership or to third persons shall be possible only with the consent of all the other
participants.
2. When transferring a share (part of the share) to a third entity, the transfer shall take
place at the same time of the whole set of rights and obligations which belong to the
participant who is exiting the full partnership.
3. In the case of the death of a participant of a full partnership, the legal successor (
inheritor) may enter the partnership with the consent of all the other participants.
4. The legal successor (inheritor) shall bear the liability on the debts of the participant
before the full partnership and also on the debts of the partnership before the third persons,
which arise during the period of the partnership's business.
5. When the legal successor (inheritor) refuses to enter the full partnership or the
partnership refuses to accept the legal successor (inheritor), he (she) shall be paid the value of
his (her) share in the assets of the partnership, which belongs to him (her) on the basis of the
legal succession as determined on the day of the death of the participant.
In those cases the amount of property of the partnership, which is indicated in the
foundation agreement (charter) shall be appropriately reduced within the deadlines provided
for by the foundation agreement (charter) but not later than in three months.
Article 67. Leaving a Full Partnership
1. The participant of a full partnership may leave the partnership at any time notifying
thereof the other participants not later than the term provided for by legislative acts or the
foundation agreement.
2. If the full partnership persists after the exit of a participant, the exiting participant shall
be paid the value his (her) share in the assets of the partnership in proportion to the
contribution made, in accordance with the balance-sheet compiled on the day of the come out.
The contribution may be returned entirely or partially in kind upon the demand of the
participant and with the consent of the partnership. The exited participant shall also be paid
the amount of net revenue which has been received by the partnership in that year during the
period of his (her) being with the partnership within that year, which is owed to him (her).
Properties transferred by the participant of a partnership for use only shall be returned to
him (her) in kind without remuneration.
1997 № 154.
Article 68. The Exclusion of a Participant from a Full Partnership
1. The participants of a full partnership shall have the right to require the exclusion of one
or of several participants from the partnership upon a unanimous resolution of the remaining
participants in a judicial procedure, provided there are serious reasons for that, in particular, a
gross violation by him/her (them) of his/her (their) obligations or when the inability to
manage business becomes established.
2. A participant who is excluded from a full partnership, shall be paid the value of the part
of property in accordance with the procedure determined in paragraph 2 of Article 67 of this
Code.
Article 69. Imposition of a Claim upon the Share of a Participant in a Full Partnership
1. The imposition of a claim upon the share of a participant in the property of a full
partnership for his (her) personal debts shall be allowed only in the case where his/his other
assets are not sufficient to cover the debt. Creditors of such a participant shall have the right
to demand from the full partnership of appropriation of a part of the property of the
partnership in proportion to the share of the debtor in the charter capital for the purpose of
imposing the claim on that property. The part of property of the partnership which is subject
to appropriation, or its worth, shall be determined on the basis of the balance-sheet compiled
at the moment of the presentation by the creditors of their claims to appropriate.
2. The imposition of a claim upon the share of a participant in the property of a full
partnership shall terminate his (her) participation in the partnership, and it shall entail the
consequences which are provided for by Articles 70 and 71 of this Code.
1997 № 154.
Article 70. Liability of Participants for Debts of a Full Partnership
1. If in liquidating a full partnership it so happens that the property available is not

sufficient to cover all its debts, the participants shall bear joint liability for the missing part,
with all their property upon which in accordance with legislative acts, a claim may be
imposed.
A participant of a full partnership shall be liable for the debts of the partnership
irrespective of whether they emerged after or before his (her) entering the partnership, unless
otherwise specified in legislative acts.
2. A participant who repaid the debts of a full partnership in excess of his (her) share in
the property of the partnership, shall have the right to appeal with a regress claim for the
appropriate amount, to the other participants who shall bear a shared liability before him (her)
in proportion to their shares in the property of the partnership.
3. A participant who left a full partnership of his (her) own accord, or was excluded from
the partnership upon the decision of the court, and also a legal successor (inheritor) of a
deceased participant who refused the proposal to enter the partnership, shall be liable for the
obligations of the partnership which arose prior to the moment of their departure, during the
two year period from the date of the approval of the report on the activities for the year in
which they exited the partnership.
4. A participant who left a full partnership in a procedure of transferring his (her) share to
any other participant or third persons, in a procedure of imposing a claim upon his (her) share
in the property of the partnership by a creditor (creditors), and also a legal successor (inheritor
) of a deceased participant, whom the other participants denied acceptance to the partnership,
shall not be liable for the obligations of the partnership.
5. After the cessation of a full partnership, the participants shall be liable upon the
obligations of the partnership, which arose prior to the moment of its cessation, for two years
from the date of the cessation of the partnership.
6. Agreements of participants changing the order of their responsibility for the obligations
of the general partnership provided for in this article are void.
, 1998 № 211; dated 27.02.2017 № 49-VI (shall be enforced upon expiry of ten calendar days
after the day its first official publication).
Article 71. Liquidation of a Full Partnership
1. A full partnership aside from the provisions indicated in Article 49 of this Code, shall
also be liquidated in the case where a sole participant is left in a partnership, if he does not
reorganize the partnership, nor accept new participants within six months.
2. In the cases of a departure or a death of one of the participants of a full partnership, as
well as recognition of one of them as missing, incapable or partially incapable or a bankrupt,
or of the imposition by a creditor of one of the participants of a claim on the property which
corresponds to his (her) share in the charter capital, the partnership may continue its activities,
if it is specified in the foundation documents of the partnership or by agreement of the
remaining participants.
3. If one of the participants left the partnership on the grounds indicated in paragraph 2 of
this Article, the shares of the remaining participants in the charter capital of the partnership
shall be increased in proportion to their contributions, unless otherwise specified in the
foundation documents.
1997 № 154.
3. Partnership in commendam
Article 72. The Fundamental Provisions Concerning a Partnership in Commendam
1. A partnership which includes besides one or more participants who bear additional
liability for the obligations of the partnership with all their property (full partners) also one or
more participants whose liability is limited by the amount of contribution made by them to
the assets of the full partnership (investors) and which do not participate in the partnerships'
entrepreneurial activities, shall be a partnership in commendam.
2. The legal status of full partners who participate in a partnership in commendam and the
liability for the obligations of the partnership shall be determined by the rules concerning the
participants of the partnerships in commendam.
3. A person may be a full partner only in one partnership in commendam.
A full partner in a partnership in commendam may not be a participant of a full
partnership.
4. The rules of this Code concerning full partnership shall apply to partnerships in
commendam, as this does not contradict the provisions of this Code concerning partnerships
in commendam.
, 1998 № 211.
Article 73. Investor of a Partnership in Commendam
1. An investor of a partnership in commendam shall be obliged to make his (her) first

contribution and additional contributions (investments) in the amount, by the method and in
accordance with the procedure which are stipulated in the foundation documents.
2. A partner of a limited partnership has the right:
1) to receive a part of the net profit of the partnership due to its share in the authorized
capital, in accordance with the procedure provided for by the constituent documents;
2) to get acquainted with the financial statements of the partnership, and also to demand
the possibility to verify the correctness of their compilation;
3) to transfer its share in the authorized capital or its part to another partner or a third
party in the manner prescribed by the legislative acts of the Republic of Kazakhstan and the
constituent documents of the partnership. The transfer by the partner of his entire share to
another person terminates his participation in the partnership;
4) to withdraw from the partnership in the manner prescribed by the legislative acts of the
Republic of Kazakhstan and the constituent documents.
Constituent documents of a limited partnership may provide for other rights of the
depositor.
The waiver of the rights provided for by this Code and other legislative acts of the
Republic of Kazakhstan for the partners of the limited partnership, or their limitations,
including the agreement of partners and full partners, is null and void.
3. If an investor commits a transaction in the interest of the partnership in commendam
without due authorization, then in the case of approving his (her) actions by the partnership, it
shall be liable for the transaction before the creditors in the full volume. If approval is not
obtained, the investor shall be liable to third persons independently with all his (her) property,
upon which claims may be imposed in accordance with legislation.
, 1997 № 154, dated March 2, 1998 № 211; dated 27.02.2017 № 49-VI (shall be enforced
upon expiry of ten calendar days after the day its first official publication).
Article 74. Charter Capital of a Partnership in Commendam
1. The charter capital of a partnership in commendam shall be made up of the

contributions of its participants. In the course of business activities, the charter capital may be
altered. The charter capital discounting contributions of the investors shall determine the
share of full partners in the property of a partnership in commendam.
2. The amount of the charter capital shall be determined by the full partners of a
partnership in commendam and it may not be less than the minimum established by
legislative acts.
The minimum size of the charter capital of microfinance institutions, established in the
form of a partnership in commendam shall be determined by the Legislation of the Republic
of Kazakhstan on microfinance activity.
of a command partnership shall be determined by the legislation of the Republic of
Kazakhstan on collection activities.
3. The reduction of the charter capital of a partnership in commendam shall be allowed
after notifying all its creditors. The latter shall have the right in that case to require a
premature termination or execution of the relevant obligations and compensation to them of
their losses. Reduction of a charter fund charter capital in violation of the procedure
established in this Article shall be a reason for the liquidation of the partnership in
commendam in accordance with the decision of the court upon the application of the
interested parties.
11.07.1997 № 154, dated 02.03.1998 № 211, dated 26.11.2012 № 57-V (shall be enforced
upon expiry of ten calendar days after its first official publication); as amended by the Law of
the Republic of Kazakhstan dated 03.07.2019 № 262-VІ (shall be enforced from 01.01.2020);
dated 24.05.2021 № 43-VII (shall enter into force from 01.01.2022).
Article 75. Managing Affairs of a Partnership in Commendam
Managing the affairs of a partnership in commendam shall be carried out by full partners.
The procedure for managing and maintaining affairs of a full partnership by its full partners
shall be established by themselves in accordance with the rules concerning full partnership.
The investors shall not have the right to participate in the managing of the affairs of the
partnership in commendam, nor to act on its behalf other than on the grounds of the power of
attorney. The investors of a partnership in commendam shall not have the right to challenge
the actions of full partners with regard to managing the affairs of the partnership.
Article 76. Cessation of a Partnership in Commendam
1. A partnership in commendam shall be terminated when all the investors participating in

it exit from it. The full partners shall have the right to transform the partnership in
commendam into a full partnership instead of liquidation. A partnership in commendam shall
be liquidated also upon the grounds which are stipulated for the liquidation of a full
partnership.
2. Upon the liquidation of a partnership in commendam the investors shall have a priority
right, as compared to full partners, to receive their contributions from the property of the
partnership, which remain after the satisfaction of the claims of its creditors. The assets which
remain after that of the partnership in commendam, shall be distributed between the full
partners and investors in proportion to their contributions to the assets of the partnership,
unless another procedure is established in the foundation documents.
4. Limited Liability Partnerships
Article 77. Basic Provisions Concerning a Limited Liability Partnership
1. A partnership established by one or several persons, which charter capital is divided

into shares stipulated in the foundation documents shall be recognized as the limited liability
partnership; the participants of a limited liability partnership shall not be liable for its
obligations and they shall bear the risk of losses associated with the activities of the
partnership within the limits of the value of the contributions made by them. Exceptions from
this rule may be provided for by this Code and the legislative acts.
The participants of a limited liability partnership who did not make their contributions in
full, shall bear joint liability for its obligations within the value of the unpaid part of the
contribution of each participant.
2. There is no limit to the number of members that can participate in a limited liability
partnership.
A limited liability partnership cannot have as its only member another partnership
consisting of only one member.
3. Upon the claim by any of its participants there must be conducted an audit of the
activities of the limited liability partnership.
The public reports of a limited liability partnership shall not be required,
except for the cases stipulated in legislation or the foundation documents.
5. Excluded by the Law of the Republic of Kazakhstan dated 02.03.1998 № 211.
4. A limited liability partnership may be voluntarily reorganized or liquidated upon a
unanimous resolution of its participants. Any other grounds for a reorganization or liquidation
of a limited liability partnership shall be determined by this Code and legislative acts.
A limited liability partnership shall have the right to be reorganized into another business
partnership, joint-stock company or a production co-operative.
6. The legal status of a limited liability partnership, the rights and obligations of its
members shall be determined by this Code and legislative acts.
221; dated 16.07.1999 № 436; dated 16.05.2003 № 416.
Article 78. Charter Capital of a Limited Liability Partnership
The size of the charter capital of a limited liability partnership shall be determined by the
founders (participants) of the limited liability partnership and it may not be less than the
amount established by legislative acts.
The minimum size of the charter capital of microfinance institutions established in the
form of a limited liability partnership shall be determined by the Legislation of the Republic
of Kazakhstan on microfinance activity.
of a limited liability partnership shall be determined by the legislation of the Republic of
Kazakhstan on collection activities.
The minimum amount of authorized capital of payment organizations established in the
form of a limited liability partnership shall be determined by the legislation of the Republic of
Kazakhstan on payments and payment systems.
VІ (shall be enforced from 01.01.2020); dated 03.07.2020 359-VI (shall enter into force upon
the expiry of ten calendar days after the day of the first official publication); dated 24.05.2021
№ 43-VII (shall enter into force from 01.01.2022).
Article 79. Managing a Limited Liability Partnership
1. The scope of authority of the bodies of a partnership, as well as the procedure for their
adoption of decisions or for acting on behalf of the partnership shall be defined in accordance
with legislative acts and the charter of the partnership.
2. The following shall be referred to the exclusive authority of the general meeting of the
participants of a limited liability partnership:
1) amendment of the partnership charter including the amendments of the amount of its
charter capital;
2) election (appointment) of the member (members) of the executive body of a
partnership and a premature termination of his/her (their) powers, as well as adoption of a
decision on the transfer of the limited liability partnership or its property into trust
management and defining of the terms of such a transfer;
3) approval of financial statements of the business partnership and distribution of its net
income.
4) the decision concerning reorganization and liquidation of the partnership;
5) election and premature termination of the powers of the supervisory council and (or)
auditing commission (auditor) of a partnership, as well as the approval of reports and
statements of the auditing commission (auditor) of a partnership;
6) approval of internal rules, procedures for their adoption and of other documents which
regulate internal functioning of the partnership;
7) decision of the partnership's participation in other business partnerships as well as in
non-profit organizations;
8) appointment of the liquidation commission and approval of liquidation balance sheets;
9) decision on forced purchase of a share from a participant of the limited liability
partnership in accordance with Article 82 of this Code.
3. Issues recognized as exclusive authority of general meeting of the partnership
participants may not be delegated to an executive authority of the partnership for its deciding,
unless otherwise established by the laws of the Republic of Kazakhstan.
, 1997 № 154; dated March 2, 1998 № 211; dated April 22, 1988 № 221; dated January 12,
2007 № 225 (shall be enforced from the date of its official publication); dated February 19,
2007 № 230 (the order of enforcement see Art. 2); dated 28.10.2019 № 268-VI (shall be
enforced upon expiry of ten calendar days after the day of its first official publication).
Article 80. Transfer of a Share in the Charter Capital of a Limited Liability Partnership to Another
Person
1. A participant of a limited liability partnership shall have the right to sell or in any other
way to assign his (her) share in the charter capital of a partnership or its part, at his (her)
discretion to one or several participants of that partnership.
2. Alienation by a member of a limited liability partnership of its share (part thereof) to
third parties is allowed, unless otherwise provided by the partnership's constituent documents
or by legislative acts.
Participants in a limited liability partnership enjoy priority before third parties for the right
to purchase a share or a part thereof, with the exception of cases provided for by this Code
and the Law of the Republic of Kazakhstan “On Limited liability partnerships”. If the
constituent documents or the agreement of the participants of the partnership do not provide
otherwise, the pre-emptive right to purchase a share (part thereof) is exercised by the
participants in proportion to the size of their shares in the authorized capital of the partnership
.
If a share (or part thereof) is sold with a breach of the pre-emptive right of purchase, any
participant in the limited liability partnership shall be entitled, within three months from the
date of sale, to seek in court the transfer of the rights and obligations of the buyer to him.
3. If the selling of the share of a participant (part thereof) to third persons is not possible
in accordance with the charter foundation documents of a limited liability partnership and the
other participants of the partnership refuse to purchase it, the partnership shall be obliged to
pay to the participant its actual value or to issue to him (her) in kind the assets which
correspond to that value.
4. The share of a participant of a limited liability partnership may be sold prior to its full
payment only in the part which had been paid-up already.
5. If a share of a participant (part thereof) is acquired by the limited liability partnership
itself, it shall be obliged to sell it to any other participants or third persons within the
deadlines and in accordance with the procedure stipulated in legislative acts and the
foundation documents of the partnership, or to reduce its charter capital. During that period
the distribution of net income and also voting in the supreme governing body shall be carried
out without taking into account the share acquired by the limited liability partnership.
6. The shares in the charter capital of a limited liability partnership shall be transferred to
the inheritors of citizens and to the legal successors of legal entities which are participants in
partnership, unless the foundation documents of the partnership stipulate that such a transfer
is permitted only with the consent of the other participants of the partnership. Refusal to
accept the transfer of a share shall entail the obligation of the partnership to pay to the
inheritors (legal successors) of the participant its actual value or to issue to them in kind the
assets worth the same value, in accordance with the procedure and on the conditions
stipulated in legislative acts and in the foundation documents of the partnership.
Legislative acts may stipulate special considerations in the transfer of a share to the legal
successors of legal entities.
, 1997 № 154; dated March 2, 1998 № 211; dated August 7, 2007 № 321 (shall be enforced
from the date of its official publication); dated 21.04.2016 № 504-V (shall be enforced upon
expiry of ten calendar days after the day its first official publication).
Article 81. Additional Contributions by the Participants of a Limited Liability Partnership
Unless the charter of a limited liability partnership provides otherwise, the general
meeting of its participants may take a decision on making by the participants of additional
contributions to the partnership's property. A decision shall be adopted by a majority of three
quarters of votes of all participants of the partnership.
April 22, 1998 № 221.
Article 82. Forced Purchase of a Share from a Participants of a Limited Liability Partnership
In the event of a breach of the obligations of a limited liability partnership's shareholder to

the partnership established by the legislative acts or constituent documents, the partnership, in
accordance with the decision of the General Meeting of Shareholders, has the right to demand
the compulsory redemption of the share of such shareholder in accordance with the procedure
established by the Law of the Republic of Kazakhstan "On Limited Liability Companies and
Additional Liability Companies".
March 2, 1998 № 211; dated 21.01.2019 № 217-VI (shall be enforced upon the expiration of
ten calendar days after the day of its first official publication).
Article 83. Imposition of a Claim upon the Share of a Participant in a Limited Liability Partnership
In the case where the participants' assets are not sufficient to cover his personal debts, the
creditors may require, in accordance with the established procedure, to appropriate the share
of the debtor who is a participant.
, 1998 № 211.
5. Partnerships with Additional Liability
Article 84. Basic Provisions Concerning the Partnership with Additional Liability
1. A partnership, which participants are liable for its obligations with their contributions
to the charter capital, and in the case those are insufficient, additionally with the assets that
belong to them in the amount which is a multiple of the contributions made by themselves
shall be recognize as a partnership with the additional liability.
2. A maximum amount of the liability of the participants shall be stipulated in its
foundation documents charter.
In the case of bankruptcy of one of the participants, his (her) liability for the obligations
of the partnership shall be spread amongst other participants in proportion to their
contributions, unless a different procedure of distribution of the liability is stipulated in
foundation documents.
3. To an additional liability partnership the rules of this code shall be applied concerning
limited liability partnerships, unless otherwise stipulated in this Article.
, 1997 № 154; dated April 22, 1998 № 221.
III. JOINT-STOCK COMPANY
Footnote. Subsection 6 should be considered as the Part III by the Law of the Republic of
Kazakhstan dated July 10, 1998 № 282.
Article 85. Definition of a Joint-Stock Company
1. A legal entity which issues shares for the purposes of raising funds for the performance
of its activities shall be recognized as a joint-stock company. The shareholders of a
joint-stock company shall not be liable for its obligations, and they shall bear the risk of
losses associated with the company's business, within the limits of value of the shares they
hold, except for the cases provided for by legislative acts.
2. A joint-stock company shall possess the assets which are separate from the assets of its
participants, shall be liable for its obligations within the limits of its property and it shall not
bear any liability for the obligations of its participants.
3. A joint-stock company may be created by one person and it may consist of one person
in the case the acquisition by one shareholder of all the shares of the company, unless it is
otherwise stipulated in legislative acts.
4. The legal status of a joint-stock company, the rights and obligations of the shareholders
shall be determined by legislative acts in accordance with this Code. Special considerations
with regard to the legal status of joint-stock companies which are created by way of
privatizing state-owned enterprises, shall be determined in legislation.
5. Non-commercial organizations may be created in a form of the joint-stock company in
the cases provided for by legislation.
282, dated 13.10.2003 № 486, dated 28.12.2011 № 524 - IV (shall be enforced upon expiry of
ten calendar days after its first official publication).
Article 86. Open and Closed Joint-Stock Companies
Article 86 is excluded by the Law of the Republic of Kazakhstan dated May 16, 2003 №
416.
Article 87. Foundation Documents of a Joint-Stock Company
1. The foundation agreement (resolution of the only founder) and the charter shall be the
foundation documents of a joint-stock company.
The foundation documents of the company must contain the information specified in this
The foundation documents of a joint-stock company shall be subject to notarization.
2. The Operation of the foundation agreement (decisions of the sole founder) shall cease
from the date of state registration of the shares.
3. The procedure of the confirmation of the charter of a joint-stock company shall be
approved by the legislative acts of the Republic of Kazakhstan.
Footnote. Article 87 the new wording is in accordance with the Law of the Republic of
Kazakhstan dated May 16, 2003 № 416.
Article 88. Charter Capital of a Joint-Stock Company
Lower limit and the procedure for the formation of the charter capital of a joint-stock
company, as well as the procedure of its expansion shall be defined by the legislative acts of
the Republic of Kazakhstan.
May 16, 2003 № 416; amended by the Law of the Republic of Kazakhstan dated July 8, 2005
№ 72 (the order of enforcement see Art. 2).
Article 89. Expansion of the Authorized and Issued (Paid) Charter Capital
(Article 89 is excluded by the Law of the Republic of Kazakhstan dated May 16, 2003 №
416)
Article 90. Reduction of the Authorized and Issued (Paid) Charter Capital
416)
Article 91. Issue and Distribution of Securities
1. Thes of securities to be issued by joint-stock companies shall be defined by the

legislative acts.
2. The procedure of state registration of authorized shares issue and their placing shall be
defined according with the legislative acts of the Republic of Kazakhstan.
3. A joint stock company shall be entitled to issue secured bonds and unsecured bonds,
except for the cases provided for by the laws of the Republic of Kazakhstan. The terms and
procedure for issuing bonds are established by the legislation of the Republic of Kazakhstan
on securities market.
4. The form, method and the procedure for payment of income on securities shall be
defined in the charters of joint stock companies or in prospectuses of issues (terms of issues)
of securities subject to special considerations provided for by legislative acts.
5. A joint-stock company shall not have the right to pay dividends on company shares:
1) when its owned capital is negative or when its owned capital becomes negative in the
result of paying dividends on its shares;
2) if it meets the signs of insolvency or insolvency in accordance with the legislation of
the Republic of Kazakhstan on rehabilitation and bankruptcy, or these signs will appear in the
partnership as a result of paying dividends on its shares.
Legislative acts of the Republic of Kazakhstan may specify other circumstances
prohibiting payment of dividends on ordinary shares, and issuing of debentures by joint-stock
companies.
6. A joint-stock company shall have the right to issue derivative securities, options and
convertible securities in accordance with the procedure defined by legislation.
10.07.1998 № 282; amended by the Law of the Republic of Kazakhstan dated 16.05.2003 №
416; dated 20.02.2006 № 127 (the order of enforcement see Art. 2); dated 19.02.2007 № 230
(the order of enforcement see Art. 2); dated 15.07.2010 № 338-IV (the order of enforcement
see Art. 2); dated 07.03.2014 № 177-V (shall be enforced upon expiry of ten calendar days
after the day its first official publication); dated 12.07.2022 № 138-VII (shall be enforced
sixty calendar days after the date of its first official publication).
Article 92. Managing a Joint-Stock Company
1. The general meeting of the shareholders of a joint-stock company shall be its supreme
body.
2. The exclusive authority of the general meeting of shareholders shall be defined in
legislative acts.
3. The taking of decisions on the issues comprised by the exclusive authority of the
general meeting of shareholders, may not be delegated to other bodies of the joint-stock
company.
4. A board of directors shall be formed in a joint-stock company, which shall exercise the
general guidance of the company's business, except for deciding on the issues conferred by
this Code, legislative acts and the company's charter, to the exclusive authority of the general
meeting of shareholders. The issues which are conferred by this Code, legislative acts and the
joint-company's charter to the exclusive authority of the board of directors, may not be
delegated to the executive body of the joint-stock company to be decided on.
5. The executive body of a joint-stock company may be a collective body (board) or (and)
a personal one (director, general director, president). It shall carry out the current
management of the activities the joint-stock company and it shall report to the board of
directors and the general meeting of the shareholders.
The authority of the executive body of a joint-stock company shall include the deciding
on all the issues which do not constitute the exclusive authority of any other governing bodies
of the company which is determined by legislation or by the foundation documents.
6. Other bodies may be formed by a joint-stock company in accordance with legislative
acts.
6-1. In cases when a joint-stock company is declared bankrupt or the rehabilitation
procedure is applied and the temporary or bankrupt or rehabilitation manager is appointed in
accordance with the procedure established by law, all powers to manage it are transferred to
the temporary or bankrupt or rehabilitation manager, respectively.
7. The authority of the governing bodies of a joint-stock company and also the procedure
for adopting by them of the resolutions and acting on behalf of the company, shall be
determined by legislation in accordance with this Code and by the foundation documents.
8. (is excluded)
1997 № 154; dated March 2, 1998 № 211; dated July 10, 1998 № 282; dated May 16, 2003
№ 416; dated 28.12.2011 № 524-IV (shall be enforced upon expiry of ten calendar day after
its first official publication); dated 07.03.2014 № 177-V (shall be enforced upon expiry of ten
Article 93. Reorganization and Liquidation of a Joint-Stock Company
1. A joint-stock company may be reorganized or liquidated upon the decision of the

shareholders meeting. Any other grounds and the procedure for reorganization and liquidation
of a joint-stock company shall be determined in this Code and any other legislative acts.
2. A joint-stock company has the right to be transformed into an economic partnership, a
production cooperative or an autonomous education organization in accordance with the Law
of the Republic of Kazakhstan "On the Status of Nazarbayev University", "Nazarbayev
Intellectual Schools" and "Nazarbayev Foundation", as well as into an autonomous cluster
fund in accordance with the Law of the Republic of Kazakhstan "On Innovative Cluster "Park
of Innovative Technologies".
15.07.1996 № 30; as amended by the Laws of the Republic of Kazakhstan dated 16.05.2003
№ 416; dated 19.01.2011 No 395-IV (shall be enforced upon expiry of ten calendar day after
its first official publication); dated 10.06.2014 № 208-V (shall be enforced upon expiry of ten
IV. Subsidiary Organization and Related Joint-Stock Company
Footnote. Sub-section seven should be considered as the part of IV by the Law of the
Republic of Kazakhstan dated July 10, 1998 № 282.
Article 94. Subsidiary Organization
1. A subsidiary is a legal entity whose decisions may be determined by another legal

entity (hereinafter referred to as the main organization) on the basis of the prevailing share of
participation in the authorized capital or the contract concluded between them, or otherwise.
2. A subsidiary organization shall not be liable for the debts of its principal organization.
The holding organization, which in accordance with an agreement (or otherwise) with the
subsidiary organization, has the right to give necessary instructions to the subsidiary company
, is liable together with the subsidiary company on the transactions which are concluded by
the subsidiary company in accordance with such instructions.
In the case of bankruptcy of a subsidiary organization, due to a fault of the principal
organization, the latter shall bear subsidiary liability with regard to its debts.
A subsidiary organization may not purchase shares of the main organization, except for
financial organizations that have the right to own shares of the main organization in the
amount of not more than ten percent of the voting shares of such an organization.
3. The participants of a subsidiary organization shall have the right to demand from the
principal organization of the compensation of losses caused by its fault to the subsidiary
organization, unless it is otherwise established by legislative acts.
4. Special considerations with regard to the status of subsidiary organizations, which are
not specified in this Article, shall be defined by legislative acts.
July 10, 1998 № 282. Amended by the Law of the Republic of Kazakhstan dated May 16,
2003 № 416; dated 22.04.2015 № 308-V (shall be enforced upon expiry of ten calendar days
Article 95. Related Joint-Stock Company
1. A joint-stock company shall be recognized as related if the other (participating,

majority) legal entity has more than 20% of its voting shares.
2. Is excluded by the Law of the Republic of Kazakhstan dated 28.12.2011 № 524-IV (
shall be enforced upon expiry of ten calendar day after its first official publication).
shall be enforced upon expiry of ten calendar day after its first official publication).
4. Special considerations concerning related joint-stock companies and joint-stock
companies mutually participating in issued (paid-up) charter capitals of each other's, which
are not provided for by this Article, shall be defined by legislative acts.
5. The participating (prevailing) legal entity is obliged to publish information on the
acquisition of more than twenty percent of the voting shares of the joint-stock company in the
procedure, established by laws.
524-IV (shall be enforced upon expiry of ten calendar day after its first official publication);
its first official publication).
V. Production Co-operative
Article 96. General Provisions Concerning Production Co-operatives
1. A voluntary association of citizens on the basis of the membership for joint

entrepreneurial activities, which is based on personal labor participation and the co-operation
by the members of their property contributions, shall be recognized as production
co-operatives.
2. Members of a co-operative must be not less than two.
3. Members of a production co-operative shall bear a complimentary (subsidiary) liability
on the obligations of the co-operative in the amounts in accordance with the procedure
stipulated by the law concerning production co-operatives.
4. The legal status of production co-operatives and its members shall be determined in
accordance with this Code and legislative acts.
5. Legal status of an agricultural cooperative established in the form of a production
cooperative, as well as the legal status, rights and duties of its members are determined by this
Code and other laws of the Republic of Kazakhstan, with the exception of cases stipulated by
the Law of the Republic of Kazakhstan "On Agricultural cooperatives".
, 1998 № 211; dated 29.10.2015 № 373-V (shall be enforced from 01.01.2016).
Article 97. Charter of a Production Co-operative
The charter of a production co-operative must contain aside information indicated in

paragraph 5 of Article 41 of this Code, the provisions concerning the size of unit shares of the
co-operative’s members; concerning the composition and the procedure for making
contributions by the co-operative members and their liability for violating obligations
associated with the making of contributions; concerning the nature and the procedure for the
labor participation of its members in the activities of the co-operative, and their liability for
violating the obligations with regard to the personal labor participation; concerning the
procedure for the distribution of losses net income of the co-operative; concerning the
membership and the authority of the governing bodies of the co-operative and the procedure
for their adoption of decisions, in particular concerning the issues on which decisions are
adopted unanimously or by a qualified majority of votes.
, 1997 № 154; dated March 2, 1998 № 211.
Article 98. Property of a production co-operative
1. Property which is in the ownership of a production co-operative, shall be divided into

unit shares of its members in proportion to their contributions, unless it is otherwise stipulated
in the charter of a given co-operative.
2. Net income of a co-operative shall be distributed amongst its members in accordance
with their labor participation, unless any other procedure is stipulated in the charter of the
co-operative.
3. In case of liquidation of a production co-operative, or a member exiting the
co-operative, that member shall have the right to appropriation of his unit share.
, 1997 № 154; dated March 2, 1998 № 211.
Article 99. Managing Production Co-operatives
1. The supreme body of a production cooperative is the general meeting of its members.
A supervisory board may be set up in a production cooperative, which monitors the
activities of the executive body of the cooperative. Members of the supervisory board are not
entitled to act on behalf of the production cooperative.
The executive body of the cooperative is the board or a chairman of the cooperative.
The executive body carries out the current management of the cooperative and is
accountable to the supervisory board and the general meeting of members of the cooperative.
Members of the cooperative may only be members of the supervisory board and the
management board of the production cooperative. A member of the cooperative may not
simultaneously be a member of the supervisory board and a member of the board (a chairman
of the cooperative).
2. The authority of the governing bodies of a productionco-operative and the procedure
for its adoption of decisions as well as their acting on behalf of the co-operative shall be
determined in legislative acts and the foundation documents.
3. The following shall be referred to the executive authority of the general meeting of the
members of a productionco-operative:
1) alteration of the charter of the co-operative;
2) formation of the executive, audit bodies and supervisory council, and the removal of
their members;
3) acceptance and exclusion of the members of the co-operative.
4) approval of financial statements of the co-operative and distribution of its net income;
5) the decision concerning the reorganization or liquidation of the co-operative.
Also, any other issues may be referred by legislative acts and the foundation documents to
the exclusive authority of the general meeting.
3-1. In cases when the production cooperative is declared bankrupt or the rehabilitation
procedure is applied and a temporary or bankrupt or rehabilitation manager is appointed in
accordance with the procedure established by law, all powers to manage it are transferred to
the temporary or bankrupt or rehabilitation manager, respectively.
4. When a decision is adopted by the general meeting a member of a co-operative shall
have one vote.
1997 № 154; dated 07.03.2014 № 177-V (shall be enforced upon expiry of ten calendar days
Article 100. Cessation of Membership in a Production Co-operative

1. A member of a production co-operative shall have the right to leave the co-operative at
his (her) discretion. In that case, he (she) must be paid or given his (her) share and also he (
she) must be issued any other benefits, which are stipulated in the charter.
The return of the share or any other assets to the co-operative member who is leaving
shall be carried out upon expiry reporting period and the approval of the financial statements
of the co-operative.
2. A member of a production co-operative may be excluded from the co-operative upon
the decision of the general meeting in the case of a failure to execute or improper execution of
the duties which are delegated to him (her) by the charter of the co-operative and also in any
other cases which are stipulated in legislative acts and the foundation documents.
The exclusion from membership of a production co-operative may be challenged in the
court.
A member of a production co-operative may be excluded from it upon the decision of the
General meeting in relation to the membership in a similar co-operative.
A member of a production co-operative who is excluded from it shall have the right to get
the share and any other benefits which are stipulated in the charter of the co-operative, in
accordance with the paragraph 1 of this Article.
3. A member of a production co-operative shall have the right to transfer his (her) share or
its part to any other co-operative member, unless otherwise stipulated in legislative acts and
the foundation documents.
The transfer of a share (part thereof) to a citizen, who is not a member of the production
co-operative, shall only be allowed with the consent of the co-operative. In that case, the other
members of the cooperative shall exercise the pre-emption right in the purchase of such a
share (its part).
4. In case of death of a member of a production co-operative, his (her) heirs may be
accepted into the cooperative as members, unless it is otherwise stipulated in the charter of
the co-operative. In the case of a refusal of an heir of the deceased co-operative member to
enter the co-operative, or a refusal of the cooperative to accept an heir, he (she) shall be paid a
share in the property proportionate to the share of the deceased co-operative member, as well
as a part of the co-operative’s net income due to the deceased, and remuneration for personal
labor participation in the activity of the co-operative.
5. The claims against the share of a production co-operative member related to his (her)
personal debts shall be allowed only in the case of the shortage of his (her) other assets for
covering such debts, in accordance with the procedure stipulated in legislative acts and the
foundation documents of the co-operative.
March 2, 1998 № 211; dated August 7, 2007 № 321 (shall be enforced from the date of its
Article 101. Reorganization and Liquidation of a Production Co-operative
1. A production co-operative may be voluntarily reorganized or liquidated upon the

resolution of the General meeting of its members.
Any other grounds and the procedure for reorganization and liquidation of a production
co-operative shall be determined in this Code and other legislative acts.
2. A production co-operative, upon the unanimous decision of its members, may be
transformed into a business partnership.
VI. State Enterprise
Article 102. Fundamental Provisions Concerning the State Enterprise
1. The following shall be referred to state-owned enterprises:

1) those based on the economic management;
2) those based on the right to operational management (public enterprise).
2. The assets of a state-owned enterprise shall be indivisible and it may not be distributed
by contributions (shares, unit shares), including among the workers of the enterprise.
3. The commercial name of state-owned enterprises must contain the indication of the
ownership of its assets.
Note RCLI!
This edition of paragraph 4 is valid dated 01.01.2018 for cities of district importance,
villages, settlements, rural districts with a population of more than two thousand people in
accordance with the Law of the Republic of Kazakhstan dated 11.07.2017 № 90-VI (valid
until 01.01.2020 for cities of district importance, villages, settlements, rural districts with a
population of two thousand people or less, see the archive version of the Civil Code of the
Republic of Kazakhstan dated 25.12.2017 № 268-XIII).
4. A state enterprise shall be established, liquidated and reorganized in accordance with
the laws of the Republic of Kazakhstan.
Note RCLI!
Part one of point 5 is valid dated 01.01.2018 for cities of district importance, villages,
settlements, rural districts with a population of more than two thousand people in accordance
with the Law of the Republic of Kazakhstan dated 11.07.2017 № 90-VI (valid until
01.01.2020 for cities of district importance, villages, settlements, rural districts with a
5. The body of a state enterprise shall be a director, who shall be appointed in accordance
with the procedure established by the laws of the Republic of Kazakhstan.
5-1. In cases when a state enterprise is declared bankrupt or the rehabilitation procedure is
applied and a temporary or bankrupt or rehabilitation manager is appointed in accordance
with the procedure established by law, all powers to manage it are transferred to the
temporary or bankrupt or rehabilitation manager, respectively.
6. (Is excluded).
7. The status of a state enterprise and a public enterprise shall be determined by this Code
and other legislative acts.
02.03.1998 № 211; dated 01.03.2011 № 414-IV (shall be enforced from the date of its official
after the day its first official publication); dated 11.07.2017 № 90-VI (the order of enactment
see paras. 1), p.1 of article 2).
Article 103. Enterprise Based on the Economic Management
1. The charter approved by the foundation party, shall be the foundation document of an
enterprise based on the economic management.
2. An enterprise which is based on the economic management shall be liable on its
obligations with all the property belonging to it.
An enterprise which is based on the economic management shall not be liable upon the
obligations of the state.
The state shall not be liable for the obligations of an enterprise based on the economic
management, except for the cases, stipulated by this Code and other legislative acts.
Footnote. Article 103 as amended by the Law of the Republic of Kazakhstan dated March
2, 1998 № 211.
Article 104. A Public Enterprise
1. An enterprise which possesses the state-owned assets under the right to operational
management shall be a public enterprise.
Note RCLI!
2. The state enterprise shall be established by the decision of the Government of the
Republic of Kazakhstan or the local executive body or the akim's office of the city of district
significance, village, settlement, rural district in accordance with the laws of the Republic of
Kazakhstan.
3. The charter approved by the foundation party shall be the foundation document of the
public enterprise.
4. The commercial name of an enterprise based on the right to operational management,
must contain an indication that the enterprise is public.
5. Business activities of a public enterprise shall be determined by its aims and objectives
which are stipulated in its charter.
6. The Republic of Kazakhstan or the administrative and territorial unit shall bear the
subsidiary liability upon the obligations of public enterprises. With regard to contractual
obligations the liability shall arise in accordance with the procedure as established by
legislative acts concerning state owned enterprises.
16.12.1998 № 320; 01.03.2011 № 414-IV (shall be enforced from the date of its official
publication); dated 11.07.2017 № 90-VI (the order of enactment see paras. 1), paragraph 1 of
Article 2).
VII. Non-Commercial Organization
Article 105. An Institution
1. An organization created and financed by its founder for the performance of managerial,
social and cultural or any other functions of non-commercial nature, shall be recognized as
institution.
Note RCLI!
2. A state institution is an institution established by the state in accordance with the
Constitution of the Republic of Kazakhstan and the laws of the Republic of Kazakhstan or
legal acts of the President of the Republic of Kazakhstan, the Government of the Republic of
Kazakhstan and local executive bodies of regions, cities of national importance, the capital,
districts, cities of regional importance, as well as the apparatuses of the akims of cities of
district importance, villages, settlements, rural districts, and contained only at the expense of
the budget or budget (cost estimate) of the National Bank of the Republic of Kazakhstan, if
additional sources of financing shall not be established by the laws of the Republic of
Kazakhstan.
3. Assumption of the contractual obligations shall be carried out in accordance with the
Budget Code of the Republic of Kazakhstan.
4. Legal rights of the enterprises shall be specified by this Code, legislative acts of the
01.03.2001 № 414-IV (shall be enforced from the date of its first official publication); with
the change introduced by the Law of the Republic of Kazakhstan dated 11.07.2017 № 90-VI (
the order of implementation, see paras. 1), paragraph 1 of Article 2).
Article 106. A Pubic Association
1. In the Republic of Kazakhstan political parties, trade unions and other associations of
citizens created on a voluntary basis for the attainment by them of the goals in common which
do not contradict legislation, shall be recognized as public associations.
Creation and participation features of public associations for individuals shall be specified
by the legislative acts of the Republic of Kazakhstan.
Members (participants) of public associations do not have rights to the property
transferred by them to these associations, including to membership fees, unless otherwise
provided by the legislation of the Republic of Kazakhstan on self-regulation. They are not
liable for the obligations of public associations in which they participate as members (
participants), and these associations are not liable for the obligations of their members (
participants), unless otherwise provided by the legislation of the Republic of Kazakhstan on
self-regulation.
2 - 6. They are excluded by the Law of the Republic of Kazakhstan dated 02.03.1998 №
211.
7. Assets of a public association which is liquidated upon the resolution of the convention
(conference) or the general meeting shall be used on the purposes which are stipulated in its
charter.
Assets of a public association liquidated upon a court decision shall be used in accordance
with this Code or other legislative acts.
8. The legal status of public associations shall be determined by legislative acts in
Kazakhstan having the force of the Law dated 05.10.1995 № 2489; by the Laws of the
Republic of Kazakhstan dated 11.07.1997 № 154; dated 02.03.1998 № 211; dated 15.07.2010
№ 338-IV (the order of enforcement see Art. 2); dated 12.01.2012 № 537-IV (shall be
enforced upon expiry of ten calendar days after its first official publication); dated 21.12.2023
№ 49-VIII (shall be enforced ten calendar days after the date of its first official publication).
Article 107. A Public Foundation

1. A non-commercial organization without any membership, which is founded by citizens
and (or) legal entities on the basis of their voluntary property contributions, and which
pursues social, educational, and any other publicly-useful purposes shall be recognized as a
public foundation.
2. A public foundation shall be a legal entity and in the Civil rights turnover it shall be
represented by the bodies of the foundation, it shall have an independent balance-sheet and
the bank account.
3. The assets which are transferred to a public foundation by its founders shall be property
of the foundation.
Founders of a foundation shall have not property rights with regard to the property of a
given public foundation.
4. Financial source of the fund is the money, as well as other assets of the founders,
voluntary donations and other legal inflows.
5. The procedure for managing a public foundation and the procedure for the formation of
its bodies shall be determined by its charter as approved by the founder.
The charter of a public foundation, aside from the information contained in paragraph 5 of
Article 41 of this Code, must contain information about the institutions of the foundation, on
the procedure for the appointment of the officials of the foundation and their dismissal, the
allocation of the foundation property in the event of its liquidation.
6. The foundation shall be obliged to publish in official publications annually the reports
concerning the use of its assets.
7. Upon the resolution of the court a public foundation may be liquidated in the following
cases:
1) where the assets of the foundation are not sufficient for attaining its objectives and the
probability of obtaining the required assets is not realistic;
2) where the purposes of a foundation may not be reached and appropriate changes of
foundation's objectives may not be made;
3) in the event that the foundations in its activities deviates from the objectives stipulated
in its charter;
4) in any other cases which are stipulated in legislative acts or the foundation documents.
8. The assets which remain after the liquidation of a public association shall be used for
the purposes contemplated in its charter.
V (shall be enforced upon expiry of ten calendar days after the day its first official publication
).
Article 108. Consumer Co-operatives

1. A consumer co-operative shall be recognized as a voluntary association of citizens on
the basis of the membership, for the satisfaction of their financial and or any other needs,
which is implemented by way of its members uniting their property (share) contributions.
In the cases provided by the legislative acts, legal entities may enter the consumer
co-operative.
2. Members of a consumer co-operative shall be obliged to cover within three months
after the approval of the annual balance-sheet the formed losses, by way of additional
contributions. In the case of a failure to execute this obligation, the co-operative may be
liquidated in a judicial procedure upon demand of the creditors.
Members of a consumer co-operative shall jointly bear a subsidiary liability with regard to
its obligations, within the limits of the unpaid amount of the additional contribution of the
co-operative members.
3. The charter of the consumer co-operative must contain, aside from the information
indicated in the paragraph 5 of Article 41 of this Code, the conditions with regard to the size
of the co-operative member shares; the composition and procedure for contribution of shares
by the co-operative members and their responsibility for the violation the obligations
associated with the contribution of the shares; concerning the composition and the authority
of the governing bodies the co-operative and the procedure for adopting by them of the
resolutions, including on the issues, the resolutions on which are to be adopted unanimously
or by a qualified majority of votes; concerning the procedure for the compensation by the
members of the losses incurred by the co-operative.
4. Income received by a consumer co-operative may not be distributed amongst its
members and it shall be used on the charter purposes.
5. In the case of the liquidation of a consumer co-operative, or in the case of departure
from it of a co-operative member, he (she) shall have the right to appropriate his (her) share in
the assets of the consumer cooperative in proportion to his (her) share. In the case of death of
a co-operative member, his (her) heirs shall have the priority right to be accepted as members
of the co-operative, unless otherwise stipulated in the co-operative charter. In the latter case
the co-operative shall pay to the heirs the share in the property of the consumer co-operative,
in proportion to his (her) share.
6. The legal status of the consumer co-operative, and also the rights and obligations of its
members, shall be determined by legislative acts in accordance with this Code.
7. Is excluded by the Law of the Republic of Kazakhstan dated 29.10.2015 № 373-V (
8. Features of the consumer cooperatives - mutual insurance companies are determined by
legislative acts of the Republic of Kazakhstan.
Footnote. Paragraph 1 of Article 108 is supplemented with the paragraph 2 by the Law of
the Republic of Kazakhstan dated March 2, 1998 № 211; dated July 5, 2006 № 164 (the order
of enforcement see Art. 2); dated 29.10.2015 № 373-V (shall be enforced from 01.01.2016).
Article 109. Religious Association
1. A voluntary association of citizens who unite in accordance with the procedure

stipulated in legislative acts, on the basis of their common interests for satisfying their
spiritual needs, shall be recognized as religious associations.
2. (Is excluded) .
3. Religious associations in the Republic of Kazakhstan, which have governing centers
beyond the boundaries of the Republic, shall be subject to registration at the bodies of justice.
Charters (articles) of the governing centers may be used as a basis of charter (articles) of such
religious associations, if they do not contradict legislation of the Republic of Kazakhstan.
4 - 8. (They are excluded).
9. A religious association shall have the right to own the assets which are acquired or
created by it at the expense of its own resources, as well as those donated by citizens, or
organizations, or those transferred by the State, and acquired on any other grounds, which do
not contradict legislative acts.
10. The participants (members) of a religious association shall not retain rights with
regard to the assets which are transferred by them to that organization, including their
membership fees. They shall not be liable for the obligations of the religious association and
the religious association shall not be liable for the obligations of its members.
11. Special considerations concerning the legal status of religious associations shall be
determined in accordance with this Code and legislative acts of the Republic of Kazakhstan.
Kazakhstan having the force of the Law dated October 5, 1995 № 2489. Paragraphs 2, 4-8 are
excluded by the Law of the Republic of Kazakhstan dated March 2, 1998 № 211.
Article 110. Amalgamation of individual entrepreneurs and (or) legal entities in the form of an
association (union)
1. Individual entrepreneurs and legal entities may create associations (unions) in order to
coordinate their entrepreneurial activities, and also to provide and protect their common
interests.
Creation and participation features of legal entity associations (unions), which carry out
their activity in the financial trade, shall be specified by the legislative acts of the Republic of
Kazakhstan.
2. Public associations and any other non-commercial organizations, including institutions,
may voluntarily unite into associations (unions) of those organizations.
3. Associations (unions) shall be non-commercial organizations.
4. Members of an association (union) shall retain their independence and the rights of
legal entities.
5. An association (union) is not responsible for the obligations of its members, unless
otherwise provided by the laws of the Republic of Kazakhstan and the constituent documents.
Members of the association (union) bear subsidiary responsibility for its obligations in the
amount and in the manner prescribed by the constituent documents of the association (union),
unless otherwise stipulated by the laws of the Republic of Kazakhstan.
March 2, 1998 № 211; dated May 16, 2003 № 416; dated January 12, 2007 № 225 (shall be
enforced from the date of its official publication); dated 12.11.2015 № 391-V (shall be
enforced upon expiry of six months after the day its first official publication).
Paragraph 3. Participation of the State and Administrative-Territorial Units In Relations Regulated

by Civil Legislation
Article 111. Participation of the Republic of Kazakhstan in the Civil Law Relations
1. The Republic of Kazakhstan shall act in relations which are regulated by the civil
legislation on the basis of principles which are equal with any other participants in those
relations.
2. The public bodies of the Republic of Kazakhstan within the bounds of their authority
established by legislative acts, regulations or any other acts which determine the status of
those bodies, may by their actions acquire and exercise property and personal non-property
rights and obligations, may act in the court on behalf of the Republic of Kazakhstan.
Any other State bodies, legal entities and citizens may act on behalf of the Republic of
Kazakhstan in the cases and in accordance with the procedure stipulated in legislation, upon
its special mandate.
3. The civil rights disputes in which the Republic of Kazakhstan is a participant shall be
settled by courts.
01.03.2011 № 414-IV (shall be enforced from that of its official publication).
Article 112. Participation of the Administrative and Territorial Units in the Civil Law Relations
1. An administrative and territorial unit shall act in the relations regulated by the civil
rights legislation on principles equal to those by which any other participants of those
relations act.
Part one of point 2 is valid dated 01.01.2018 for cities of district importance, villages,
2. On behalf of an administrative-territorial unit may acquire and exercise property and
personal non-property rights and obligations, act in court, local representative and executive
bodies, as well as the apparatuses of the akims of cities of district significance, villages,
settlements, rural districts within their competence, established by the laws of the Republic of
Kazakhstan, regulations or other acts determining the status of these bodies.
In the cases and in accordance with the procedure stipulated in legislation, and upon
special instructions, local state bodies, legal entities and citizens may act on behalf of an
administrative and territorial unit.
3. In the cases determined by legislation, an administrative and territorial unit may act in
civil rights relations on behalf of the State.
4. The provisions of this Code concerning the participation, respectively, of the State and
its bodies in relations regulated by civil rights legislation shall apply to administrative and
territorial units and their bodies, unless otherwise stipulated by legislation.
5. Civil law rights disputes with the participation of an administrative and territorial unit
shall be settled by the courts.
Footnote. Article 112 as amended by the Law of the Republic of Kazakhstan № 90-VI
dated 11.07.2017 (for the procedure of implementation, see paragraphs 1 and 1 of Article 2).
Article 113. Imposition of Claims for the Obligations of the Republic of Kazakhstan and
Administrative and Territorial Units
1. The Republic of Kazakhstan shall be liable for its obligations with the property of the
State treasury, while an administrative and territorial unit shall be liable for its obligations
with the property of the local treasury.
2. The Republic of Kazakhstan and the administrative and territorial units shall not be
liable for the obligations of one another and also for the obligations of citizens and legal
entities, while citizens and legal entities shall not be liable for the obligations of the Republic
of Kazakhstan and administrative and territorial units except for the cases stipulated by this
Code and legislative acts.
Article 114. Application of the Provisions Concerning Legal Entities to the State and to
Administrative and Territorial Units
The provisions which determine the participation of legal entities in the relations
regulated by civil legislation shall apply to the State and to administrative and territorial units,
unless otherwise ensues from legislative acts.
Chapter 3. Objects in Civil Rights

Paragraph 1. General Provisions
Article 115 of Objects in Civil Rights

1. The property and the personal non-property privileges and rights may be objects in civil
rights.
2. Property benefits and rights (property) shall include: things, money, including foreign
currency, financial instruments, works, services, objective results of creative intellectual
activity, corporate names, trademarks and other means of individualization of products,
property rights, digital assets and other property.
2-1. Legal regime of objects or property rights shall be applied respectively to the money
and the rights (claims) for money liability (rights of claim for payment of money).
3. Life, health, the dignity of a person, honor, good name, business reputation,
inviolability of private life, personal and family secrets, the right to name, the right to be an
author, the right to inviolability of production and any other intangible privileges and rights
shall be referred to the personal non-property privileges and rights.
12.01.2007 № 225 (shall be enforced from the date of its official publication); dated
10.12.2008 № 101-IV (shall be enforced from 01.01.2009); dated 25.06.2020 № 347-VI (
shall enter into force upon the expiry of ten calendar days after the day of the first official
publication).
Article 116. Turnover Capacity of the Objects of Civil Rights
1. Objects of the civil rights may be freely alienated or transferred from one person to
another in the course of the universal legal successorship (inheritance, reorganization of a
legal entity) or by any other method, unless they are exempt from circulation or restricted in
their turnover.
2. Types of property, the alienation of which is not allowed (withdrawn from circulation),
should be directly specified in the laws.
3. Types of property that can belong only to certain participants in the turnover or the
acquisition or alienation of which is allowed by special permission (not fully tradable) are
determined by legislation.
3-1. The concept and types of digital assets, as well as the features of the turnover of
digital assets shall be determined by the legislation of the Republic of Kazakhstan, acts of the
“Astana” International Financial Center.
4. The personal non-property privileges and rights shall be unalienable and
non-transferable by any other method, except for the cases which are established by
legislative acts.
Footnote. Article 116 as amended by the Law of the Republic of Kazakhstan 27.02.2017
№ 49-VI (shall be enforced upon expiry of ten calendar days after the day its first official
publication); dated 25.06.2020 № 347-VI (shall enter into force upon the expiry of ten
Article 117. Movable and Immovable Assets
1. Immovable property (immovable assets, real estate) includes the following: land plots,
buildings, structures, perennial plantations, and other property, which is firmly associated
with their physical location, i.e. entities for which the transportation of which is impossible
without infliction of disproportional damage to their designation.
Apartments and other accommodations, as well as non-residential premises, which are
part of a condominium, shall be recognized as independent immovable property object (type),
if they are in the individual (separate) property.
2. Also, air and sea vessels, vessels of domestic water travel, vessels of river and sea
sailing, and cosmic facilities, shall be equated to immovable objects which are subject to state
registration. Any other assets may be recognized as immovable objects by legislative acts.
Provisions of this Code and other legislative acts, which regulate relations connected to
the immovable things, shall be applied to the things specified in this paragraph in the case
explicitly provided by the legislative acts of the Republic of Kazakhstan.
3. Assets which are not recognized as immovable, including money and securities, shall
be recognized as movable assets. The registration of rights in relation to movable assets shall
not be required, except for the cases stipulated in legislative acts.
official publication), as amended by the Law of the Republic of Kazakhstan dated 22.06.2012
№ 21-V (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 118. State Registration of Rights to Immovable Properties
1. Rise, change and termination of rights (burden of right) to immovable properties shall
be subject to the State registration in the cases provided by this Code and the Law of the
Republic of Kazakhstan "On Registration of Rights to Immovable Property and of
Transactions Therein".
Other objects of State registration related to the immovable properties shall be specified
by the Law of the Republic of Kazakhstan Concerning the Registration of Rights to
Immovable Property and of Transactions Therein.
2. Rights (encumbrances of rights) to immovable property arise, change and terminate
from the moment of state registration, unless otherwise established by this Code and the Law
of the Republic of Kazakhstan "On state registration of rights to real estate." If registration is
not denied, the moment of state registration is the moment of filing the application, and when
electronic registration - the moment of confirmation of occurrence, change or termination of
rights (encumbrances of rights) by the registering authority by sending notification of the
registration.
3. The body which carries out the State registration of the rights to immovable properties
shall be obliged to certify the effected registration, upon the petition of the title holder, by
way of signing a document presented for registration.
4. State registration of the rights to immovable properties and of transactions therein shall
be public. The body which carries out the registration shall be obliged to present the
information concerning the registered which to any person taking into account limitations
specified by the Law of the Republic of Kazakhstan Concerning the Registration of Rights to
5. Denial of state registration of the right to immovable property or unreasonable evasion
of registration may be appealed in accordance with the procedure established by the Laws of
6. The procedure of state registration shall be established in accordance with this Code,
and by the law of the Republic of Kazakhstan Concerning the Registration of Rights to
7. The procedure of the State registration of the air and sea vessels, vessels of domestic
water travel, vessels of river and sea sailing, and cosmic facilities, as the objects equated to
immovable property shall be regulated by the laws of the Republic of Kazakhstan in the
sphere of use of air space and aviation activity, merchant shipping, inland water transport,
cosmic activities.
official publication); as amended by the Law of the Republic of Kazakhstan dated 06.01.2012
№ 529-IV (shall be enforced upon expiry of twenty one calendar days after its first official
publication); dated 29.12.2014 № 269-V (shall be enforced from 01.01.2015); dated
Article 119. An Enterprise
1. A property complex which is used for carrying out entrepreneurial activities shall be
recognized as an enterprise that is an object of rights.
2. As a property complex, an enterprise shall include all thes of assets which are intended
for its operation, including buildings, installations, equipment, tools, raw materials,
inventories, the right to a land plot, the right to claim, debts and also the right to designations
which individualize its activities (commercial name and trade marks), and any other exclusive
rights, unless otherwise stipulated in an agreement.
3. An enterprise as a whole, or a part thereof, may be an object in purchasing and selling,
pledging, leasing and any other transactions which are related to the establishment, alteration
or cessation of corporeal rights.
3-1. Features of the State registration of the rights to the immovable properties,
component of the enterprise as the property complex shall be established by the Law of the
Republic of Kazakhstan Concerning the Registration of Rights to Immovable Property and of
Transactions Therein.
4. When debts are acquired as part of an enterprise recognized as a property complex, the
rights of creditors shall be guaranteed in accordance with the procedure provided for by
Article 48 of this Code.
Article 120. Divisible and Indivisible property
1. Property may be divisible and indivisible.

Divisible property shall be assets, parts whereof do not lose their designation (function) as
result of division.
Indivisible property shall be property which may not be divided without changing its
economic designation (function), or which is not to be subdivided by virtue of a prescription
in a legislative act.
2. Features of indivisible items as objects in law, shall be determined in legislation.
Article 121. Compound Items
1. When heterogeneous items form a single unit which permits the use in accordance with
its designation, determined by the nature of their combination, they shall be deemed to be a
single object (complex objects).
2. The effect of a transaction which is concluded with regard to a compound items, shall
apply to all its constituent parts, unless an agreement provides otherwise.
Article 122. A Principal Item and its Accessory Components
An accessory, that is, an item designed to serve a main item and which is tied to it by joint
economic designations, shall follow the purpose of the main item, unless legislation or
agreement stipulate otherwise.
Article 123. Fruit, Production and Income
Income obtained as a result of using assets (fruit, production, income), shall belong to the
person who uses those assets on a legal basis, unless it is otherwise stipulated in legislation or
in the agreement concerning the use of that asset.
Article 124. Animals
General rules concerning objects shall apply to animals in so far as legislation does not
stipulate otherwise.
Article 125. Intellectual Property
1. In cases and in accordance with the procedure stipulated in this Code and other
legislative acts, an exclusive right of a citizen, or a legal entity shall be recognized with
regard to the results of intellectual creative activities and to the ways of individualization of a
legal entity, of the production by a private person or a legal entity, work performed by it or
services rendered, which are equated thereto (commercial name, trade mark, service mark etc.
).
2. The use of the results of intellectual creative activity and means of individualization,
which may be the object of exclusive rights (intellectual property), may be exercised by third
parties only with the consent of the right holder, except for the cases provided for by
2, 1998 № 211; dated 07.04.2015 № 300-V (shall be enforced upon expiry of ten calendar
days after the day its first official publication).
Article 126. Service and Commercial Secrets
1. Civil legislation shall protect information which constitutes a service or a commercial

secret in a case where the information has actual or potential commercial value by virtue of its
being unknown to third persons, if there is no access thereto on a legitimate basis and the
possessor of the information makes efforts to protect its confidentiality.
2. Persons who by illicit methods obtain such information, and also employees who in
spite of their service agreement, or counter-parties in spite of their civil rights agreement,
divulge a service or a commercial secret, shall be obliged to compensate for the inflicted
damage.
Article 127. Money (currency)
1. The Tenge shall be the monetary unit in the Republic of Kazakhstan.

2. The Tenge shall be the legal tender, which is obligatory for acceptance, in accordance
with its nominal value, in the entire territory of the Republic of Kazakhstan.
3. Payments in the territory of the Republic of Kazakhstan shall be carried out in the form
of cash payments and non-cash payments.
4. The cases, the procedure and the conditions for settlement in foreign currency in the
territory of the Republic of Kazakhstan shall be determined by legislation of the Republic of
Kazakhstan.
Article 128. Currency Assets
1. Thes of assets which are recognized as currency assets and the procedure for
transactions involving them, shall be determined by legislative acts.
2. The right to own currency assets shall be protected in the Republic of Kazakhstan on
common principles.
Paragraph 1-1. Financial Instruments
Footnote. Section 3 is supplemented with the paragraph 1-1 in accordance with the Law
of the Republic of Kazakhstan dated 10.12.2008 № 101-IV (shall be enforced from
01.01.2009).
Article 128-1. Financial Instruments
1. Financial instrument - money, securities, including derivative securities, derivative

financial instruments and other financial instruments, which simultaneously give rise to a
financial asset for one person and a financial liability or an equity instrument for another
person.
2. Financial asset - any asset that represents money, equity instrument of another person,
contractual right to receive money or other financial asset from another person or to exchange
financial assets or financial liabilities with another person on potentially beneficial terms, or
such a contract, the settlement of which will be or may be made by the person's own equity
instruments and which is a derivative instrument under which the person has or may have an
obligation to receive a variable number of own equity instruments or a derivative that will or
may be settled in any other way than by the exchange of a fixed amount of cash or another
financial asset for a fixed number of the entity's own equity instruments.
3. Financial liability is any liability that represents a contractual obligation to deliver cash
or another financial asset to another person or to exchange financial assets or financial
liabilities with another person on potentially unfavourable terms, or a contract that will or
may be settled by the entity's own equity instruments and that is a non-derivative instrument
for which the entity has, or may have, an obligation to provide a variable number of its own
equity instruments, or that is, or may be otherwise settled by exchanging a fixed amount of
cash or another financial asset for a fixed number of the entity's own equity instruments.
4. Equity instrument shall be any contract, confirming the right for the residual claim on
total assets of the organization, remaining after the holdback of all its obligations.
Footnote. Article 128-1 as amended by the Law of the Republic of Kazakhstan № 166-VI
dated. 02.07.2018 (shall be enforced upon the expiration of ten calendar days after the day of
Article 128-2. Derivative Financial Instruments
1. Derivative financial instrument shall be the contract, which cost depends on the value (
including the variation of the value) of underlying asset of the contract, foreseeing the
conduction of the calculation on the current contract in the future.
2. The options, the futures, the swaps and other derivative financial instruments, which
measure up the given features and which particularly represent the combination of the above
listed derivative financial instruments shall refer to the derivative financial instruments.
3. The goods, the standardized consignments of goods, the securities, currency, the
indices, the interest rate and other assets, having market value, the future event or
circumstance, the derivative financial instruments shall be the underlying assets of the
derivative financial instruments.
Article 128-3. The Option
1. The option shall be the derivative financial instruments, according to which one party (
option seller) sells to another party (option buyer) the right to buy or to sell the underlying
asset on the stipulated price and on the settled terms in the future.
2. The option seller shall sell the option to the option buyer for a fee, referred to as
premium. The settled terms of the option shall be regarded as the settlement of the following
obliged terms: of the underlying asset, the total cost of the underlying asset (the sum to which
the option is settled), the cost of the underlying asset (strike price), the option premium, the
term of the option (validity period of the option), of the option.
3. The option shall be considered to be executed, if the option buyer reorganizes the
purchased right.
Article 128-4. The Swap
The swap shall be the derivative financial instrument, according to which the parties agree
to exchange the payments on the underlying assets or by the underlying assets on the settled
terms in the future.
Article 128-5. The Forward
1. The forward shall be the derivative financial instrument, which buyer (or seller)
undertakes an obligation upon the expiry of designated period to buy (or to sell) the
underlying asset on the settled terms in the future.
2. Forward is occurred in the unorganized market.
Article 128-6. The Futures
The futures shall be the derivative financial instrument, tradable only in the organized
market, which buyer (or seller) undertakes an obligation to buy (or to sell) the underlying
asset upon the expiry of designated period, on the standard terms, settled in the organized
market.
Paragraph 2. Securities
Article 129. The Securities
1. A Security shall be the set of the appropriate records and other designations, which
satisfy the property rights.
1-1. The securities may be debt and share.
The debt securities shall be the securities, which prove the obligation of the emitter (
debtor) to pay the principal on the terms issue of the assets.
The share security shall be the security, which proves the right of its owner for the
definite interest in estate in the cases, specified by the legislation of the Republic of
Kazakhstan.
2. The assets, the obligations and others of the securities, determined in accordance with
this Code and other legislative acts of the Republic of Kazakhstan shall refer to the securities.
3. The securities due to the form of issuance shall be subdivided in:
1) certified and uncertificated;
2) equity and private;
3) inscribed, bearer and order.
Certified securities shall be the securities, issued in documentary form ( on the paper or
other material media with the opportunity to read the content of the security without using
special equipment).
Uncertificated securities shall be the securities, issued in non-documentary form (in the
form of the set of electronic records).
3. In the cases which are stipulated in legislative acts, for the exercise of a conveyance of
the rights certified by a security, it shall be sufficient proof to establish in the special register (
usual or electronic records).
Equity securities shall be the securities, which within one issue have similar features and
attributes, which are placed and turned on the terms uniform for the current issue.
Private securities shall be the securities, which do not correspond to the features, indicated
in the part four of this paragraph.
Inscribed security shall be the security, confirming the accessory of the rights, certified by
it, to the person mention in it.
Bearer security shall be the security, confirming the accessory of the rights, certified by it,
to the bearer of the security.
Order security shall be the security, confirming the accessory of the rights, certified by it,
to the person mention in it, and to another person, in the case of transfer of these rights in the
order specified by paragraph 3 of Article 132 of this Code.
4. The possibility of producing a certain of securities in one form or another may be
excluded by this Code and other legislative acts of the Republic of Kazakhstan.
May 16, 2003 № 416, as amended by the Law of the Republic of Kazakhstan dated
10.12.2008 № 101-IV (shall be enforced from 01.01.2009).
Article 130. Confirmation of the Rights for the Securities
1. The right of ownership of a security is proved by the possession of the certificate of

security itself. In the case of transfer of the documentary security for safekeeping to a
professional member of the security market, who is authorized to keep such securities by way
of a license issued to him (her) or in accordance with legislative acts of the Republic of
Kazakhstan, the bank statement, opened by this professional member for tracking purposes,
shall become the confirmation of the rights for this security. In the case of difference between
documentary security and statement of the mentioned account, the statement shall have a
priority.
2.The statement of account, opened for tracking purposes by the professional member of
security market, who is authorized to register the contract with the securities according to the
license issued to him (her) or in accordance with legislative acts of the Republic of
Kazakhstan shall be the confirmation of the right for the uncertified security.
4. The order of opening and conducting by the professional members of the security
market of the accounts, intended for record the securities, as well as the requirements for the
content and designing of the statements of such assets shall be determined by the legislation
of the Republic of Kazakhstan.
16.05.2003 № 416; as amended by the Law of the Republic of Kazakhstan dated 28.12.2011
№ 524-IV (shall be enforced upon expiry of ten calendar days after its first official
publication).
Article 131. The Requirements to Securities
1. Thes of rights which are certified by securities, the obligatory details of securities, and
the requirements with regard to the pro-forma of a security and any other necessary
requirements, shall be determined by legislative acts, or in accordance with the procedure
established thereby.
2. The absence of obligatory details concerning a security or the non-compliance of a
security with the pro-form established there for, shall entail its invalidity.
Article 132. Conveyance of Rights Associated with Securities
1. In order to convey to any person the rights certified by a bearer's security, it shall be
sufficient to hand the security to that person.
2. Rights certified by a registered security issued in documentary form are transferred in
the order established for the assignment of the claim (assignment). In accordance with Article
347 of this Code, the transferor of the security is liable for the invalidity of the relevant claim,
but not for its execution.
2-1. The peculiarities of the transfer of rights on the equity securities and the confirmation
of rights on them shall be determined by the legislative acts of the Republic of Kazakhstan.
3. The right associated with order securities shall be conveyed by means of making on
that security a conveyance inscription, the endorsement. The person who transfers the rights
associated with an order security (endorser) shall be liable not only for the existence of the
right but also for its exercise.
An endorsement executed on a security shall transfer all the rights certified by the security
to the person to whom or by whose order the rights associated with the security (of the
endorsee) are transferred. The endorsement may be blank (without any indication of the
person to whom the consideration must be addressed).
The endorsement may be restricted only by the order to exercise the rights certified by the
security, without any conveyance of those rights to endorser (pre-nomination endorsement).
In this case the endorser shall act as a representative.
Footnote. Paragraph 2 of Article 132 is supplemented with the paragraph by the Law of
the Republic of Kazakhstan dated May 2, 1998 № 211; dated May 16, 2003 № 416; dated
June 3, 2003 № 426; dated 21.06.2013 № 106-V (shall be enforced upon expiry of ten
from 01.01.2016).
Article 133. Execution with regard to Securities
1. The person that issued a security and all the persons who endorsed it shall be jointly
liable to its legitimate owner. In the case of satisfying the claims of the legitimate owner of a
security, related to the execution of the obligation certified by it, by one or several persons
from amongst those liable in relation to the security, they shall acquire the right to revert
claim (regress) to the other persons who had become liable in relation to the security prior to
them.
2. The refusal to execute the obligations certified by a security with the reference to the
lack of basis for the obligations or to its invalidity shall not be allowed.
3. The owner of a security who detected fraud or forgery of the security shall have the
right to present the person that conveyed the security to him (her) with the claim to properly
execute the obligation certified by the security and to compensate losses.
4. The rights associated with securities held by any illegitimate holder shall not be
exercised.
Footnote. Article 133 as amended by the Law of the Republic of Kazakhstan dated June 3,
2003 № 426.
Article 134. Restoration of Securities
The restoration of the rights associated with the lost bearers' securities and order securities
, shall be carried out by the court in accordance with the procedure stipulated in the
procedural legislation.
Article 135. Uncertified Securities
416).
Article 136. A Debenture
1. A bond is a security that certifies, in accordance with the terms of the issue, the right to
receive from the person, who issued the bond, the interest on it and the par value of the bond
in cash or other property equivalent.
2. The debentures shall be issued only as inscribed security equity securities.
3. The Government of the Republic of Kazakhstan, The National Bank of the Republic of
Kazakhstan and commercial organizations shall have the rights to issue the debentures.
4. Thes of the debentures and the order of their issue shall be determined by the
legislation of the Republic of Kazakhstan.
16.05.2003 № 416; as amended by the Law of the Republic of Kazakhstan dated 20.12.2004
№ 13 (shall be enforced from 01.01.2005); dated 12.07.2022 № 138-VII (shall be enforced
Article 137. A Cheque
Footnote. The Article is excluded by the Law of the Republic of Kazakhstan dated
11.07.1997 № 154.
Article 138. A Bill of Exchange
11.07.1997 № 154.
Article 139. A Share
1. A share shall be recognized to be a security which certifies the right of its holder (
shareholder) to receive part of net income of a joint stock company in the form of a dividend,
to participate in managing the business of the joint stock company, and to part of the property
of the joint stock company, which remains after its liquidation, as well as other rights
specified by the legislative acts of the Republic of Kazakhstan.
2. The assets shall be issued for the inscribed security equity securities.
3. Thes of the assets shall be determined by the legislation of the Republic of Kazakhstan.
The procedure of issue of assets shall be determined by the legislation of the Republic of
Kazakhstan on the security market.
4. Non-commercial organizations, established in the organizational legal form of the joint
stock company shall not make payment of the dividends by their assets.
5. The legislative acts of the Republic of Kazakhstan may specify the opportunity to buy
assets under the court decision from the stockholder, disturbing by his (her) actions or
inactivity the interests of the joint stock company.
The legislative acts of the Republic of Kazakhstan may specify the opportunity and basis
of the forced buy of the assets by banks and organizations, conducting certains of bank
operations, as well as insurance (reinsurance) organizations upon the existence of the negative
value of self capital, calculating in the order established by the legislative acts of the Republic
of Kazakhstan.
Footnote. Article 139 new wording is by the Law of the Republic of Kazakhstan dated
May 16, 2003 № 416; as amended by the Law of the Republic of Kazakhstan dated July 8,
2005 № 72 (the order of enforcement see Art. 2).
Article 139-1. Bank Deposit Certificate
Bank deposit certificate shall be the certified private security, confirming the rights of its
holder to receive upon the expiry of circulation period, specified by the terms of issue, or
before its expiration, its nominal cost, as well as compensation in the amount, specified by the
term of issue.
Footnote. Article 139-1 is supplemented by the Law of the Republic of Kazakhstan dated
January 12, 2007 № 225 (shall be enforced from the date of its official publication).
Article 140. Bank Certificate
11.07.1997 № 154.
Paragraph 3. Moral rights
Article 141. Protection of Personal Non-Property Rights
1. A person whose personal non-property rights are violated, apart from the measures
stipulated in Article 9 of this code, shall have the right to compensation of moral damage by
the rules of this Code.
2. Protection of personal property rights shall be carried out by the court in accordance
with the procedure stipulated in civil procedural legislation.
3. Personal non-property rights shall be subject to protection irrespective of the guilt of
the person that violated the right, unless it is otherwise stipulated in this Code. The person
who presented a claim of defense must prove the fact of the violation of his personal
non-property right.
4. The person whose non-property right is violated may at his discretion, claim from the
violator the elimination of the consequences of the violation or at the expense of the violator
to independently undertake the necessary actions, or to delegate their execution to a third
party.
Footnote. Article 141 is supplemented by the Laws of the Republic of Kazakhstan dated
Article 142. Personal non-property rights which are associated with the property rights
In the event that personal non-property and property rights are simultaneously violated,
the amount of compensation for property damage shall be increased by considering the
compensation which is due to the victim because of the violation of his personal non-property
rights.
Article 143. Protection of Honor, Dignity and Business Reputation
1. Through the court a citizen or a legal entity shall have the right to refutation of
information which damages his (her) honor, dignity or business reputation, unless the one
who spreads such information proves that the information is true.
2. Where the information that damages the honor, dignity or business reputation of a
citizen or a legal entity is spread through the mass media, that information must be refuted by
the same mass media without any charge imposed the aforementioned citizen or legal entity.
In the case where specified information is contained in a document issued by an
organization, such a document shall be subject to replacement or annulment with the
obligatory communication to the addressees of the inconsistency of the information contained
in that document.
The procedure for refutation in other cases shall be established by the court.
3. A citizen or a legal entity with regard to which the mass media published information
which restricts his rights or legitimate interests, shall have the right to publish their response
in the same mass media free of any charge.
4. The claim by a citizen or a legal entity to publish a refutation or response in the mass
media shall be considered by the court in a case where the mass media refused such
publication, or did not carry out the publication within one month, and also in the case of its
liquidation.
5. Where a court decision is not executed, the court shall have the right to impose a fine
upon the violator, which shall be taken for the revenue of the budget. The fine shall be
imposed in accordance with the procedure and in the amounts which are established by the
civil procedural legislation. The payment of the fine shall not exempt the violator from the
obligation to execute the action stipulated in the court decision.
6. A citizen or a legal entity with regard to whom information was spread that damages
his (her) honor, dignity or business reputation, shall have the right, apart from the refutation
of such information, to demand compensation for the damage and the moral harm inflicted by
their promulgation.
Regulations of this Article to protect the business reputation of the citizen shall be
relevantly applied in order to protect the business reputation of the legal entity, except for the
requirements to compensate the moral harm. Regulations on compensation of the damages
shall be applied to protect the business reputation of the legal entity according to the
procedure, established by this Code.
7. Where it is impossible to identify the person that spreads the information which
damages the honor, dignity or business reputation of a citizen or a legal entity, the person
with regard to whom such information is spread, shall have the right to appeal to the court
with an application to recognize that the promulgated information as not true.
06.02.2009 № 123-IV (the order of enforcement see Art. 2); dated 25.03.2001 № 421-IV (
shall be enforced upon expiry of ten calendar days after its first official publication).
Article 144. The Right to Protect Secrets of Private Life
1. A citizen shall have the right to protect the secrets of his personal life, including the
secrets of correspondence, telephone conversations, diaries, notes, comments, intimate life,
adoption, birth, lawyer secrets, medical professional secrets, bank deposits and other secrets
protected by the laws of the Republic of Kazakhstan.
Disclosure of the secrets of personal life is possible only in cases expressly established by
2. The publication of diaries, notes, comments and any other documents shall be
permissible only with the permission of their author, and as regards letters, - with the consent
of both their author and the addressee. In the case of death of one of them, specified
documents may be published with the consent of the surviving spouse and the children of the
deceased.
July 11, 1997 № 154; dated 14.07.2022 № 141-VII (shall be enforced ten calendar days after
the date of its first official publication).
Article 145. The Right to Own Picture

1. Nobody shall have the right to use the image of a person's face without his consent, and
in the case of his death, - without the consent of his inheritors.
2. Publication, reproduction, use and distribution of a pictorial work (painting, photograph
, film, etc.) in which another person is displayed shall be permitted only with the consent of
the person displayed, and after his death, with the consent of his children and surviving
spouse. Such consent shall not be required if this is established by the laws of the Republic of
Kazakhstan, or if the person displayed posed for a fee.
23.12.2023 № 51-VIII (shall be enforced ten calendar days after the date of its first official
publication).
Article 146. The Right to Inviolability of Housing
A citizen shall have the right to inviolability of his house, that is, to prevent any attempts
of intrusion into his house against his will, except for the cases stipulated in legislative acts.
Chapter 4. Transactions
Article 147. The Definition of a Transaction
The actions of citizens and legal entities which are aimed at establishing, changing or
terminating civil rights and obligations, shall be recognized as transactions.
Article 148. Unilateral Transactions and Agreements
1. The transactions may be unilateral and bilateral or multilateral (agreements).

2. A transaction, the performance whereof, in accordance with legislation or the
agreement of the parties, requires the expression of the will of one party and this is sufficient,
shall be recognized as a unilateral transaction.
3. In order to enter into an agreement, it shall be necessary to have an expression of the
agreed will of two parties (a bilateral transaction) or of three or more parties (multilateral
transaction).
Article 149. The Legal Regulation of Unilateral Transactions
1. A unilateral transaction shall create obligations for the entity that enters into the
transaction. It may create obligations for other persons only in the cases which are stipulated
in legislative acts or by agreement with those persons.
2. Appropriately, the general provisions concerning obligations and agreements shall
apply to unilateral transactions, inasmuch as it does not contradict legislation, or the nature
and the essence of the transaction.
Article 150. Transactions Entered into Under Condition

1. A transaction shall be considered to be entered into under a delaying condition, where
the parties conditioned the emergence of their rights and obligations upon a circumstance,
with regard to which it is not known whether it will occur or not.
2. A transaction shall be deemed to be entered into under an invalidating provision, when
the parties conditioned the invalidation of the rights and obligations by a circumstance, with
regard to which it is not known whether it will occur or not.
3. When the emergence of a condition is unfairly impeded by a party to which the
emergence of the condition is non-beneficial, then the condition shall be recognized as having
taken place.
When the emergence of a condition is unfairly assisted by a party, for whom the
emergence of the condition is favorable, then the condition shall be recognized as not having
taken place.
Article 151. The Form of Transactions
1. Transactions can be entered into orally or in written form (simple or notary).

2. A transaction for which legislation or the agreement of the parties does not establish a
written form (simple or notary), or any other definite form, may be entered into orally, in
particular, any transactions which are executed by their commitment. Such a transaction shall
be deemed to be entered into also in the case where the will of the person to enter into the
transaction is clear from the behavior of the person.
3. A transaction which is confirmed by issuing a ticket, label or any other sign which is
generally acceptable for confirmation, shall be deemed to be concluded in oral form, unless
otherwise is stipulated in legislation.
4. Silence shall be understood as an expression of the will to enter into a transaction in the
events stipulated by legislation or the agreement of the parties.
5. Transactions to execute an agreement which is concluded in writing may, by agreement
of the parties, be entered into orally, provided that the transaction does not contradict
legislation.
Article 152. The Written Form of Transactions
1. The following transaction must be entered into in writing:

1) those which are carried out in the course of entrepreneurial activities, except for
transactions which are fulfilled by their execution itself, unless it is otherwise stipulated in
legislation for individuals of transactions, nor does it ensue from the customs of the business
practice;
2) for more than one hundred monthly calculation indices, except for the transactions
executed at the very moment they are committed;
3) in any other cases which are stipulated in legislation or the agreement of the parties.
2. A transaction which is executed in writing, must be signed by the parties or their
representatives, unless otherwise ensues from the usual business practice.
It shall be allowed, when entering into transactions, to use facsimile copying of signatures
, unless this contradicts legislation or the requirements of one of the participants.
3. Bilateral transactions may be entered into by way of exchanging documents, each one
of them shall be signed by the sending party.
Unless otherwise stipulated by legislation or agreement of the parties, the exchange of
letters, telegrams, telephone messages, teletypes, faxes, electronic documents, electronic
messages or other documents that determine the subjects and the content of their will, is equal
to completion of transaction in writing.
Laws of the Republic of Kazakhstan and (or) at the request of one of the parties may
establish additional requirements, which must correspond to the form of the transaction, in
particular, the execution of a form on a letterhead of a certain form, seal of a legal entity, if
this person in accordance with the legislation of the Republic of Kazakhstan must have a seal.
4. Where a citizen as a result of a physical shortage, disease or illiteracy is not able to
personally sign, then upon his request a transaction may be signed by any other citizen. The
signature of the latter, unless it is otherwise stipulated in legislation, must be witnessed by a
notary or any other official who has the right to enter into such notary action with an
indication of the reasons for which the person who entered into the transaction failed to sign it
personally.
5. The party that fulfilled a transaction which was executed in writing, shall have the right
to claim from the other party a document which confirms that fulfillment.
The same right shall belong to the party which fulfilled an oral entrepreneurial transaction
, except for the transactions which are fulfilled by their commitment itself.
March 2, 1998 № 211; dated January 7, 2003 № 372; dated 29.12.2014 № 269-V (shall be
enforced from 01.01.2015); dated 24.11.2015 № 419-V (shall be enforced from 01.01.2016);
its first official publication); the Law of the Republic of Kazakhstan № 156-VI dated
24.05.2018 (shall be enforced upon expiration of ten calendar days after the day of its first
Article 153. Consequences of non-compliance with the written form of transaction"
1. Failure to comply with a simple written form of a transaction deprives the parties of the
right, in the event of a dispute, to confirm its commission, maintenance or execution by
witness statements. The parties, however, have the right to confirm the commission,
maintenance or execution of the transaction by written or other evidence other than witness
statements.
2. In cases directly specified in laws of the Republic of Kazakhstan or agreement of the
parties, if a simple written form is not followed, the transaction is considered null and void.
3. In case of non-observance of a simple written form, the foreign economic transaction is
considered null and void.
Article 154. Notarization of Transactions
1. In cases stipulated by laws of the Republic of Kazakhstan or by agreement of the

parties, the written transactions are deemed to be committed only after their notarization.
Failure to comply with the requirement of notarization entails the nullity of the transaction
with the consequences provided for in paragraph 3 of Article 157-1 of this Code, except for
the cases specified in paragraph 2 of this article.
2. Where a transaction which requires notarization is actually fulfilled by the parties or by
one of the parties, and by its contents does not contradict legislation and does not violate the
rights of third persons, the court upon the application of the interested party shall have the
right to recognize the transaction as valid. In that case the subsequent notarization of the
transaction shall not be required.
Article 155. Registration of Transactions
1. Transactions which are subject, in accordance with the legislative acts, to state
registration or other registration, shall be considered as concluded after their registration,
unless it is otherwise stipulated in the legislative acts.
A denial of registration must be formulated in writing, and it may be possible only with a
reference to violation of the requirements of legislation.
2. Where a transaction which requires state registration is executed in a proper form, but
one of the parties evades its registration, the court shall have the right upon the claim of the
counter party to pass the decision to register the transaction. In this case the transaction shall
be registered in accordance with the decision of the court.
26.07.2007 № 311 (shall be enforced upon expiry of ten calendar days after the official
publication), as amended by the Law of the Republic of Kazakhstan dated 25.03.2011 № 421-
IV (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 156. Exchange Transactions

1. Transactions, which subject is the property, permitted to be circulated at the bourse and
which are concluded by the participants of the bourse in accordance with the procedure
established by legislation concerning the appropriate (commodity, stock and other) bourses
and in the charters of bourses, shall be the exchange transactions.
2. Bourse transactions may be documented by broker records, and they shall be subject to
registration by the bourse.
3. Unless otherwise ensues from legislation, from the agreement of the parties or from the
essence of the transaction, the rules for the relevant agreements (purchase and sale
agreements, commission agreements, and other) shall apply to bourse transactions in relation
to the contents.
4. Legislation or rules of exchange trade may provide for the terms of exchange
transactions that constitute commercial secret of the parties and are not subject to disclosure
without their consent, except for information submitted to the authorized financial monitoring
body in accordance with the Law of the Republic of Kazakhstan “On countering legalization (
laundering) of proceeds from crime and financing of terrorism".
5. Disputes related to conclusion of exchange transactions are considered in arbitration
under the relevant exchange, the decision of which may be revoked by the court in cases
provided for by the law of the Republic of Kazakhstan.
6. Is excluded.
02.03.1998 № 211; dated 16.05.2003 № 416; dated 28.08.2009 № 192-IV (shall be enforced
from 08.03.2010); dated 25.03.2011 № 421-IV (shall be enforced upon expiry of ten calendar
days after its first official publication); dated 21.06.2012 № 19-IV (shall be enforced upon
expiry of ten calendar days after its first official publication); dated 10.06.2014 № 206-V (
shall be enforced upon expiry of ten calendar days after the day its first official publication);
dated 08.04.2016 № 489-V (shall be enforced upon expiry of ten calendar days after the day
Article 157. Disputable and void transactions
1. A transaction is void on the grounds established by this Code or other legislative acts,
by virtue of its recognition as such by the court (a disputable transaction) or on the grounds
directly provided for by the legislative acts, regardless of such recognition (null transaction).
A transaction is considered disputable if its nullity is not provided for by legislative acts.
In the event of a dispute over the nullity of a transaction, its invalidity is established by
the court.
2. A transaction is considered invalid if the requirements for the form, content and
participants of the transaction are violated, as well as to freedom of their will on the grounds
established by this Code or other legislative acts.
3. The requirement to recognize a transaction as invalid may be brought by interested
persons, by an appropriate state body or by a prosecutor.
The interested person is a person whose rights and legitimate interests are violated or may
be violated as a result of the said transaction.
The list of persons entitled to claim it to be invalid is established by this Code and (or)
other legislative acts.
Article 157-1. General provisions on consequences of invalidity of transaction
1. A party to the transaction or persons established in paragraph 3 of Article 157 of this

Code shall have the right to file the claim to apply the consequences of invalidity of a void
transaction.
2. An invalid transaction shall not entail legal consequences, except for those associated
with its invalidity, and shall be invalid from the moment of its commission, unless otherwise
provided by this Code, legislative acts of the Republic of Kazakhstan or follows from the
substance or content of the transaction.
3. In case of invalidity of the transaction, each party is obliged to return everything
received on the transaction to the other party, and if it is impossible to return in kind (
including when the received is expressed in the use of property, work performed or service
rendered) - to refund the value of the property to be returned, works performed or services
rendered in money, if other consequences of invalidity of the transaction are not provided for
by this Code or other legislative acts of the Republic of Kazakhstan.
4. The court may recover from the party guilty of committing the actions that caused the
invalidity of the transaction, in favor of the other party, the losses incurred by the latter
related to recognition of the transaction as invalid.
5. If a transaction is aimed at achieving a criminal purpose, the unlawfulness of which is
established by a court verdict (resolution), then if there is intent on both parties, everything
received by them under the transaction or intended for receipt is subject to confiscation upon
the resolution or verdict of the court. In the event that such a transaction is executed in one
party, everything received by the other party shall be confiscated and all that is due from it to
the first party. If none of the parties has started the execution, all that is stipulated by the
transaction for execution is subject to confiscation.
6. If there is intent to achieve a criminal purpose, the unlawfulness of which is established
by the court's verdict (resolution), everything that one of the parties received under the
transaction is to be returned to the other party, and everything received by the latter or due to
it under the transaction is subject to confiscation.
7. In view of specific circumstances, the court is entitled not to apply partially or fully the
consequences provided for in paragraphs 5 and 6 of this article with regard to the confiscation
of property received or receivable under an invalid transaction. In this part, the consequences
occur, stipulated in paragraph 3 of this article.
8. Recognizing the transaction as invalid, the court has the right, subject to specific
circumstances, to confine itself to prohibiting its further execution.
Footnote. Chapter 4 is supplemented by Article 157-1 in accordance with the Law of the
Republic of Kazakhstan dated 27.02.2017 № 49-VI (shall be enforced upon expiry of ten
Article 158. Invalidity of a transaction, the content of which does not comply with the
requirements of the legislation of the Republic Kazakhstan
1. A transaction whose content does not comply with the requirements of the law, as well
as a transaction committed for a purpose that is clearly contrary to the basics of law and order,
is disputable and may be recognized invalid by the court, unless otherwise established by this
2. A transaction aimed at achieving a criminal purpose, the unlawfulness of which is
established by a court verdict (resolution), is void.
3. A person who deliberately entered into a transaction that violates the requirements of
the legislation of the Republic of Kazakhstan, the charter of a legal entity or the competence
of its bodies, may not claim the invalidation of the transaction if such demand is
profit-motivated or with the intention to evade responsibility.
4. In the event that one of the participants in the transaction has committed it with the
intention to evade performance of the obligation or from liability to a third party or state, and
the other party to the transaction knew or should have known about this intention, the
interested person (the state) has the right to demand the invalidation of the transaction.
Article 159. The Basis for the Invalidity of Transactions
1. A transaction that is committed without obtaining the necessary permit or after the
expiry of the permit's validity period is null and void.
2. A transaction that pursues the objectives of unfair competition or violates the
requirements of business ethics may be declared invalid by a court.
3. A transaction committed by a person who has not reached the age of fourteen (minors)
is null and void except for transactions stipulated in Article 23 of this Code.
4. A transaction which is entered into by a junior which reached fourteen years, without
consent of his (her) parents (adopters) or sponsors, except for the transactions which he in
accordance with the law has the right to enter into independently, may be recognized by the
court as invalid upon the action by the parents (adopters) or the guardian. The provisions of
this Article shall not apply to transactions of minors, recognized in accordance with this Code
as completely capable (paragraph 2 of Article 17, Article 22-1 of this Code).
5. A transaction committed by a person recognized incompetent due to mental illness or
dementia is null and void. A transaction committed by a citizen subsequently recognized as
legally incompetent (Article 26 of this Code) is disputable and may be recognized by the
court as invalid on the claim of his guardian if it is proved that at the time of the transaction
the citizen was in a state of mental disorder.
6. Upon the requirement of the guardian the court may recognize as invalid transaction
which is entered into by the person whose deed capacity is restricted by the court.
7. A transaction which is entered into by a citizen who, although capable, but at the
moment of its commitment was in a state that he could not realize the meaning of his actions
or guide them, may be recognized by the court as invalid in accordance with the action of that
citizen, but if when alive the citizen did not have an opportunity to file the action, - after the
death of the citizen upon the action of any other interested persons.
8. A transaction which is entered into as a result of a significant error may be recognized
by the court as invalid upon an action by the party which acted under the influence of
misguidance. The misguidance is material where it relates to the nature of a transaction, the
identity, or to any other qualities of its subject which significantly reduce the possibility of its
intended use. Misguidance in the motives may serve as a basis of invalidity of a transaction
only when such motive is included in its contents as a delaying or annulling condition (Article
150 of this Code).
If the misguidance is a consequence of gross carelessness of the participant in the
transaction, or it is covered by his entrepreneurial risk, the court, taking into account the
specific circumstances and the interest of the other participant of the transaction, shall have
the right to refuse the action to recognize the transaction as invalid.
9. A transaction which is entered into under the influence of fraud, violence, or threat, and
also a transaction that the person was compelled to enter into as a result of a combination of
difficult circumstances and on conditions extremely unprofitable for himself (herself) which
was exploited by the other party (shackling agreement), may be recognized by the court as
invalid upon the action of the victim.
10. A transaction which is concluded as a result of a malicious collusion of the
representative of one party with the other party, may be recognized by the court as invalid
upon the action of the victimized party. Compensation for losses which are inflicted upon the
victimized party (paragraph 4 Article 9 of this Code), may be imposed upon the unfair
representative in the procedure of subsidiary liability.
11. A transaction committed by a legal entity in conflict with the objectives of activity
specifically restricted by this Code, other legislative acts of the Republic of Kazakhstan or
constituent documents, or in violation of the statutory competence of its body, may be
declared invalid on the suit of the owner of the property of the legal entity or its founder (
participant), if it is proved that the other party to the transaction knew or should have known
about such violations.
12. The transactions which are stipulated in paragraphs 3 and 5 of this Article, upon the
claim of the parents, adopters or guardians of infants or of incapable persons by the decisions
of a court may be recognized as invalid, provided they are entered into for the benefit of the
indicated persons.
02.03.1998 № 211; dated 12. 01.2007 № 225 (shall be enforced from the date of its official
publication); dated 25.03.2011 № 421-IV (shall be enforced upon expiry of ten calendar days
after its first official publication); dated 16.05.2014 № 203-V (shall be enforced upon expiry
of six months after the day its first official publication); dated 27.02.2017 № 49-VI (shall be
enforced upon expiry of ten calendar days after the day its first official publication).
Article 160. Fictitious or Faked Transactions
1. A transaction made only for effect, without the intention to create the corresponding
legal consequences (an imaginary transaction), shall be recognized as invalid by the court at
the suit of the interested person, the proper state body or the prosecutor.
2. If one transaction is entered into only for the purpose of hiding another transaction (
faked), then the rules shall be applied which are applicable to the transaction which the parties
actually had in mind.
Article 161. The Consequences of Invalidity of Part of a Transaction
Invalidity of part of a transaction shall not entail the invalidity of its other parts, provided
it is possible to presume that the transaction was entered into without inclusion of its invalid
part.
Article 162. Period of Limitation with regard to Invalid Transactions
1. (Is excluded).
2. The statute of limitations with regard to disputes associated with the invalidity of a
transaction on the grounds stipulated in paragraphs 9 and 10 of Article 159 of this Code, shall
constitute one year from the date of the cessation of the violence or the threat under which the
transaction was entered into, or from the date when the plaintiff learned or should have to
learned about any other circumstances which are the basis for the recognition of the
transaction as invalid.
Footnote. Paragraph 1 of Article 162 is excluded by the Law of the Republic of
Kazakhstan dated March 2, 1998 №211.
Chapter 5. Representation and Power of Attorney
Article 163. Representation
1. A transaction, committed by one person (representative) on behalf of another person (

represented) by virtue of the authority based on power of attorney, legislation, a resolution of
the court or on an administrative act, shall directly create, alter or terminate the civil rights
and obligations of the represented.
The authority may also be clear from the situation in which the representative is acting (
salesman in retail trade, cashier, etc.).
2. The rights and obligations shall be acquired directly by the represented in respect of the
transaction entered into by the representative.
3. A representative may not enter into transactions on behalf of the represented person,
nor in his own name, nor in the name of any other person who he is representing at the same
time.
This rule shall not extend to the commercial representation office.
4. The persons who act, although in somebody else's interest, but in their own name (
commercial intermediaries, executors of will in inheritance etc.) shall not be representatives,
nor the persons who are authorized to enter negotiations with regard to transactions which are
possible in the future.
5. It shall not be allowed to enter through a representative into transactions which by their
nature may be entered into only in person, nor into other transactions in the cases specified in
legislative acts.
Article 164. Representation of Incapable Property
On behalf of incapable persons, transactions shall be entered into by their legitimate

representatives.
Article 165. Representation without Authority
A transaction which is entered into on behalf of another person by the person who is not
authorized to enter into the transaction, or in excess of their powers, shall create, alter or
terminate the civil rights and obligations of the represented only in the case of the subsequent
approval by him (her) of that transaction.
The subsequent approval by the represented shall make the transaction valid from the
moment of its commitment.
Article 166. Commercial Representation
1. The person who permanently and independently represents entrepreneurs in their

concluding agreements (a commercial representative), shall act on the basis of a written
agreement which contains indications of the authority of the representative, and in the case
where such indications do not exist,- also of the power of attorney.
2. A commercial representative may at the same time represent the interests of various
parties of an agreement which is concluded with his participation. In that respect, he shall be
obliged to execute the instructions given to him (her) with the diligence of a usual
entrepreneur.
3. A commercial representative shall have the right to claim payment of the remuneration
owed and the expenses incurred by him (her) when executing the instructions of the parties to
the agreement in equal shares, unless it is otherwise stipulated in the agreement between them
.
4. A commercial representative shall be obliged to keep secret the information which
became known to him (her) concerning commercial transactions, also after the
implementation of the assignment entrusted to him (her).
5. Special considerations concerning commercial representation in certain spheres of
entrepreneurial activity shall be established by legislation.
Article 167. Power of Attorney
1. A written authorization by one person (the grantor) for representation on his behalf,
which is issued to another person (the trustee) shall be recognized as a power of attorney.
2. The power of attorney for managing assets and entering into transactions which require
notarization, must be notarized, unless otherwise stipulated in legislative acts.
3. The following shall be equated to notarized powers of attorney:
1) powers of attorney of military servicemen and of any other persons who are in medical
treatment at hospitals, sanatoria and any other military medical institutions, attested to by the
chiefs, deputy chiefs for medical issues, senior doctors and doctors on duty of those hospitals,
sanatoria and other military medical institutions;
2) powers of attorney of the military servicemen, and at the points of deployment of
military units, institutions and military education organizations where there is no state notary
offices, nor any other bodies which execute notary actions, and also the powers of attorney of
workers and employees, members of their families and family members of the military
servicemen, which are attested by the commanders (chiefs) of those units, formations,
institutions and organizations;
3) powers of attorney of the persons who are in places of imprisonment, certified by the
heads of the places of their incarceration;
4) powers of attorney of capable citizens of full age who are in institutions for the social
protection of the population, certified by the head of that institution or of the relevant body
for the social protection of the population.
5) power of attorney of persons in pre-trial detention centers, certified by the heads of
detention facilities.
4. The power of attorney to receive correspondence, including money and parcels, to
receive wages and other payments from citizens and legal entities may be certified by local
executive bodies of cities of republican significance, the capital, districts, towns of regional
significance, akims of town of district significance, settlement, village, where the grantor
lives, an organization in which he works or studies, the housing maintenance organization at
the place of residence, the administration of the inpatient medical institution in which he is
under treatment, and also by the command of the corresponding military units, when the
power of attorney is issued to the serviceman. The power of attorney sent by telegraph, as
well as by other types of communication, when the document is sent by a communications
employee, is certified by the communication authorities.
5. Third persons shall have the right to consider as authentic a power of attorney which is
issued for the commission of their acts, which is sent by the trustor to the trustee through
facsimile and other method of communication, without use of official bodies of
communication.
6. A power of attorney on behalf of a legal entity shall be issued under the signature of its
head or other person authorized by its constituent documents and sealed by this organization
if the person in accordance with the legislation of the Republic of Kazakhstan must have a
seal.
7. A power of attorney on behalf of a state body, or a commercial or non-profit
organization to receive or pay money and any other material assets, must be signed also by
the chief (senior) accountant of that organization.
8. The procedure for issuing and the pro-forma of the power attorney to enter into banking
transactions and the power of attorney for entering into transactions in the area of trade may
be determined by special-purpose rules.
Footnote. Article 167 as amended by Laws of the Republic of Kazakhstan dated
20.12.2004 № 13 (shall be enforced from 01.01.2005), dated 01.03.2011 № 414-IV (shall be
enforced from the date of its first official publication); by the Constitutional Law of the
Republic of Kazakhstan dated 03.07.2013 № 121-V (shall be enforced upon expiry of ten
from 01.01.2015); dated 27.02.2017 № 49-VI (shall be enforced upon expiry of ten calendar
Article 168. The Term of a Power of Attorney
1. A power attorney may be issued for a term of no longer than three years. Where a
longer term is indicated in a power of attorney, it shall be effective within three years, and if
the effective period is not indicated therein, then it will be valid within one year from the date
of the issue.
2. A power of attorney, which does not specify the date of its issue, is void.
Article 169. Re-Assignment
1. A trustee must personally enter into the actions to which he is authorized. He may
re-assign their commitment to any other person only in the case where he is authorized
thereto by the power of attorney received or is compelled to do that by virtue of
circumstances for the protection of the interests of the trustor.
2. A power of attorney in which the trustee conveys the powers to any other person must
be notarized, except for the cases stipulated in paragraph 4 of Article 167 of this Code.
An original power of attorney shall be submitted to the power of attorney, on which basis
trustee re-assigns his (her) powers to another person. Notarized copy of the original power of
attorney shall be submitted to the power of attorney, on which basis trustee re-assigns to
another person or several person, the separate powers specified in the original power of
attorney.
3. The term of validity of a power of attorney which is issued for re-assignment may not
exceed the term of effect of the original power of attorney on the basis of which it was issued.
4. The trustee who re-assigned the powers to any other person must immediately notify of
that the nominator and to communicate to him (her) the necessary information concerning
that person and his place of residence. The failure to comply with this duty shall impose on
the trustee the liability for the actions the person to whom he re-assigned the powers, as for
his (her) own.
Footnote. Article 169 as amended by the Laws of the Republic of Kazakhstan), dated
Article 170. Cessation of a Power of Attorney
1. The effect of a power of attorney shall cease as a result of the following:

1) expiry of the term of the power of attorney;
2) completion of the actions provided for by the power of attorney;
3) annulment of the power of attorney by the person who issued it;
4) the refusal of the person to whom the power of a attorney is issued;
5) the cessation of the legal entity on whose behalf the power of attorney was issued;
6) liquidation of the legal entity on whose behalf the power of attorney was issued;
7) the death of the person (including declaring the citizen deceased), who issued the
power of attorney, recognizing him as incapable, partially incapable or missing;
8) the death of the citizen (including declaring the citizen deceased), to whom the power
of attorney has been issued, recognizing him as incapable, partially incapable or missing.
2. The person who issued the power of attorney may at any time annul the power of
attorney or sub-assignment, and the person to whom the power of attorney has been issued,
may relinquish it. The agreement to waive this right shall be void.
Article 171. The Consequences of Terminating a Power of Attorney
1. The trustor shall be obliged to notify about the termination of a power of attorney (
Article 170 of this Code) the person to whom the power of attorney is issued, and also third
persons known to him, for representation to whom the power of attorney was issued. The
same obligation shall rest with the legal successor of a person who issued the power of
attorney in the cases of its cessation on the grounds indicated in paragraphs 5 and 7 of Article
170 of this Code.
2. The rights and obligations which arise as a result of the actions of a person to whom the
power of attorney is issued prior to the time when this person learned or should have learned
of its cessation, shall remain valid for the one who issued the power of attorney and his legal
successors with regard to third persons. This rule shall not apply if the third party knew or
should have known that the effect of the power of attorney ceased.
3. Upon the cessation of the power of attorney the person to whom it was issued or his
legal successor must immediately return the power of attorney.
4. With the cessation of the power of attorney the conveyance of the powers associated
with that power of attorney to the other person (re-assignment) shall lose force.
Chapter 6. Calculation of Periods
Article 172. Determining of the Periods

1. A term which is established by legislation, or transaction or is appointed by the court,
shall be determined by a calendar date or an indication of an event which must inevitably take
place.
2. A term may be established also as a period of time which is calculated by years, months
, weeks, days or hours.
Article 173. The Beginning of the Term which is Determined by Period of Time
The course of a term which is determined by a period of time shall begin on the next day
after the calendar date or the arrival of the event which determines its beginning.
Article 174. The Expiry of the Term Determined by Period of Time
1. A term which is measured by years shall expire in the corresponding month, and on the
date of the last year of the term.
The rules which are used for the terms measured by months shall apply to a term which is
measured by one half a year.
2. The rules which are used for the terms measured by months shall apply to the term
which is measured by quarters of year. In this respect, a quarter shall be deemed to be equal to
three months and the calculation of quarters shall be from the beginning of year.
3. A term measured by months shall expire on the corresponding date of the last month of
the term.
A term which is determined as one half of a month shall be handled as a term measured
by days, and it shall be deemed to be equal to 15 days.
If the expiry of a term measured by months falls on such month in which that date does
not exist, then the term shall expire upon the last day of that month.
4. The term which is measured by weeks shall expire on the appropriate day of the last
week of the term.
Article 175. Expiry of a Term on a Non-Working Day
If the last day of a term falls on a non-working day, then the expiry day of the term shall
be the nearest working day following that day.
Article 176. The Procedure for Entering into Actions on the Last Day of a Term
1. If a term is established for any action, this action can be carried out within twenty-four
hours after the expiration of the term.
However, if that action must be entered into in an organization, then that term shall expire
at the hour when in accordance with the established rules that organization ceases the relevant
transactions.
2. Written applications and notifications which are submitted to the post office, telegraph
or any other institution of communications before 24 hours of the last day of a term, shall be
deemed to be submitted within the term.
Chapter 7. Statute of Limitations
Article 177. The Definition of the Limitation Period
1. The statute of limitations is a period of time during which a claim may be satisfied,
which arises from a violation of rights of a person or of an interest protected by law.
2. Statutes of limitation and the procedure for their calculation shall be stipulated in law
and may not be changed by an agreement of parties.
Article 178. Terms of the Limitation Period
1. The general term of the statute of limitations shall be established at three years.
2. For certains of claims legislative acts may establish special-purpose terms of the statute
of limitations, which are shorter or longer as compared to the general term.
3. The rules of Articles 177, 179 - 186 of this Code shall apply also to the special-purpose
terms of the statute of limitations, unless legislative acts stipulate otherwise.
Article 179. The Application of the Limitation Period
1. The requirements to protect a violated right shall be accepted by the court for
consideration irrespective of expiry of the term of the statute of limitations.
2. The statute of limitations shall be applied by the court only upon the application by a
party in the dispute, which is made prior to the adoption of a decision by the court.
3. The expiry of the term of the statute of limitations prior to the presentation of the claim
shall be the basis for the court's passing the decision to deny the action.
With the expiry of the term of the statute of limitations on the principal claim, the term of
the statute of limitations shall expire with regard to additional claims (concerning the
imposition of damages, the responsibility of the trustor etc.).
Article 180. The Course of the Term of the Limitation Period
1. The course of the term of the statute of limitations shall begin on the day when the
person learned or should have learned of the violation of the right. Exceptions from this rule
shall be established by this Code and the other legislative acts.
2. With regard to the obligations which have a definite term for their implementation, the
course of the statute of limitations shall begin upon the expiry of the date of the execution.
3. With regard to the obligations, the implementation term of which is not determined or
is determined by the moment of the call, the course of the statute of limitations shall begin
from the moment when the call for the implementation of the obligation is made, and where
the debtor is granted a privilege term for the implementation of such call, the counting of the
statute of limitations shall begin on the expiry of the indicated term (paragraph 2 of Article
177 of this Code).
4. With regard to the regress obligations the course of the statute of limitations shall begin
from the moment of execution of the principal obligation.
Article 181. The Term of the Statute of Limitations in the Replacement of Persons in an Obligation
The replacement of persons in an obligation shall not entail any changes with regard to
the statute of limitations and the procedure of its calculation.
Article 182. Suspension of the Course of the Statute of Limitations Term
1. The course of the term of the statute of limitations shall be suspended as follows:
1) where the making of the claim is impeded by an event which is extraordinary or
inevitable under those circumstance (force majeure);
2) by virtue of the announcement by the President of the Republic of Kazakhstan of a
postponement of the execution of the obligation of that (moratorium);
3) where the plaintiff or the defendant are military units which are under martial law;
4) where an incapable person has no legal representative;
5) by virtue of suspending the effect of legislation which regulates the relevant relations;
6) when verifying the legality of the sources of acquisition (origin) of the asset in
accordance with the legislation of the Republic of Kazakhstan on the return of illegally
acquired assets to the state.
With regard to actions concerning the compensation for harm caused to life or health of a
citizen, the course of the term of the statute of limitation shall be suspended also in
connection with the application by a citizen to the appointment of a pension or benefit, or the
refusal to appoint those. to appropriate organizations for appointment and/or performance of
payment of pensions or for appointment of a benefit - prior to appointment and/or
performance of payment of pensions or appointment of a benefit or refusal to appoint and/or
performance of payment of pensions or appointment of a benefit.
2. The course of the term of the statute of limitations shall be suspended where the
circumstances indicated in this Article arose or continued to exist during the last six months
of the statute of limitations, and if that term does not exceed six months, - during the course
of the term of the statute of limitations.
3. The course of the statute of limitation shall continue from the date of the cessation of
the obligation which entailed the suspension of the statute of limitations. In that respect, the
remaining part of the term shall be extended up to six months, and where the term of the
statute of limitations does not exceed six months, - up to the term of the statute of limitations.
Footnote. Paragraph 1 of Article 182 as amended by the Laws of the Republic of
Kazakhstan dated June 19, 1997 № 134.; The title of the Article as amended by the Law of
the Republic of Kazakhstan dated March 2, 1998 № 211; dated 12.07.2023 №23-VIII (shall
be enforced ten calendar days after the date of its first official publication.
Article 183. A Break in the Course of the Term of Statute of Limitations
1. The course of the term of the statute of limitations may be interrupted by the
presentation of a claim in accordance with the established procedure and also by the
commitment by the obliged person of the actions which evidence the recognition of the debt
or any other liability.
2. After an interruption, the course of the term of the statute of limitation shall begin anew
; the time which expired prior to the break shall not be included into the new term.
Footnote. Article 183 as amended by the Laws of the Republic of Kazakhstan) dated
Article 184. The Course of the Term of the Statute of Limitations in a Case where the Action is not
Considered
1. If an action is left by the court without consideration, the course of the statute of
limitations which began prior to the presentation of the action shall continue in accordance
with the general procedure.
2. Where the court left without consideration an action which is presented in a criminal
case, then the course of the term of the statute of limitations, which began prior to the
presentation of the action, shall be suspended until the sentence by which the action was left
without consideration enters into legal force. The time during which the statute of limitations
was suspended shall not be included in the term of the statute of limitations. In that respect,
where the remaining part of the term is less than six months, it shall be extended up to six
months.
Article 185. The Restoration of the Term of the Statute of Limitation
1. In exceptional cases where the court recognizes the reason for neglecting the term of
the statute of limitations as serious because of the circumstances which are associated with
the personality of the plaintiff (serious disease, helpless condition, illiteracy, etc.) the violated
right of the citizen shall be the subject to protection. The reasons for omitting the term of the
statute of limitations may be recognized as serious where they took place during the last six
months of the term of the statute of limitations, and where the term is equal to six months, or
is less than six months, - during the term of the statute of limitations.
2. The term of the statute of limitations shall be re-established and it shall begin its course
again in the cases where there in accordance with legislative acts the plaintiff gets the right to
file a new action on the same case in relations with the refusal to execute the court decision in
that case.
Article 186. Execution of an Obligation upon Expiry of the Term of the Statute of the Limitations
A debtor or any other obliged entity that implemented an obligation upon expiry of the
term of the statute of limitations, shall not have the right to claim back the implemented
obligation, even if at the moment of the implementation the indicated person did not know of
the expiry of the statute of limitations term.
Article 187. The Claims to which the Statute of the Limitations Does Not Apply
The statute of limitations shall not apply to the following:

1) claims concerning the protection of non-material assets and personal non-property
rights, except for the cases which are stipulated in legislative acts;
2) claims of investors to the bank to repay their bank investments;
3) claims concerning the compensation for harm caused to life or health of a citizen.
However, the claims which are presented upon the expiry of the statute of limitations shall be
satisfied for no longer than three years preceding the presentation of the claim;
4) claims of a proprietor or any other legitimate owner concerning the elimination of any
violations of his (her) right, where those violations are not associated with deprivation of
ownership (Articles 264, 265 of this Code);
5) in the cases established by legislative acts, - also to any other claims.
Footnote. Article 187 as amended by the Law of the Republic of Kazakhstan dated July
11, 1997 № 154.
Section 2. The Right to Own and Other Proprietary Rights

Chapter 8. General provisions on the right of ownership and other proprietary rights
Footnote. The title of Chapter 8 in the new wording of the Law of the Republic of
Kazakhstan dated 27.02.2017 № 49-VI (shall be enforced upon expiry of ten calendar days
Article 188. The Definition and Contents of the Right to Own
1. The right to own shall be a recognized and protected by legislative acts the right of a
person at his (her) discretion to own, use and dispose of the property which belongs to him (
her).
The right of ownership shall be re-assigned to another person with all the encumbrances
which existed at the moment of the commission of the transaction.
2. The owner shall have the rights to possess, use and dispose of his assets. The rights to
own shall represent the legally-enforced capacity to exercise the actual possession of assets.
The right to use shall represent the legally-enforced possibility to extract from the assets
their useful natural properties and also to extract benefits out of it. A benefit may be in the
form of income, gain, fruit and in other forms.
The right to dispose shall represent the legally-enforced capacity to determine the legal
destiny of property.
3. The owner shall have the right at his discretion to enter into with regard to the property
which belongs to him, any actions including the alienation of the property into the freehold of
any other persons, or to transfer to them, remaining the owner, his rights associated with
ownership, use and disposal of the property, to pledge the property and to encumber it by any
other methods and dispose of it in any other way.
4. The exercise by the owner of his powers must not violate the rights and legally
protected interests of other persons and the state. The violation of the rights and legitimate
interests may be expressed, aside from any other forms, in the abuse by the owner of his
monopoly or any other dominant position.
The owner must adopt measures which prevent harm to the health of citizens and to the
environment, which may be inflicted in the exercise of his rights.
5. The right to own shall be of indefinite term. The right to own property may be
terminated by compulsion only upon the grounds provided for by this Code.
6. In the cases, on the conditions and within the limits provided for by legislative acts, the
owner must allow for a restricted use of his property by any other persons.
Footnote. Paragraph 1 of Article 188 is supplemented with the paragraph by the Laws of
the Republic of Kazakhstan dated March 2, 1998 № 211.
Article 189. The Burden of Maintaining Property
1. The owner shall bear the burden of maintaining the property which belongs to him,
unless it is otherwise stipulated by legislative acts or by an agreement, and he may not in a
unilateral procedure transfer such a burden to a third person.
2. If property is legally held by third persons, then the costs incurred by them for the
maintenance of somebody else's property, shall be subject to reimbursement by the owner,
unless otherwise is stipulated in the agreement.
Expenditures associated with the maintenance of the assets shall not be reimbursed to the
person who owns the thing unfairly and illegally (Article 263 of this Code).
Article 190. The Risk of Occasional Destruction or Occasional Damage to Property
1. The risk of an occasional destruction or an occasional damage to objects to be alienated

shall be transferred to the acquirer simultaneously with the emergence of his right to own,
unless it is otherwise stipulated in legislative acts or an agreement.
2. Where the alienator guiltily delayed the transfer of objects or the acquirer guiltily
delayed their acceptance, the risk of occasional destruction or occasional damage shall be
borne by the party which caused the delay.
Article 191. The Definition ands of Private Property
1. Private property shall be recognized as the property of citizens and of non-state-owned

legal entities and their associations.
2. Any property, except for certains of property which in accordance with legislative acts
may not belong to citizens or legal entities, may be in private ownership.
The quantity and the value of the assets which are in private ownership shall not be
restricted.
March 2, 1998 № 211.
Article 192. The Right to State Property
1. The state property shall be recognized in the form of the Republic's property and
communal property.
2. The property of the Republic shall consist of the state treasury and the property
allocated to state owned Republic's legal entities in accordance with legislative acts.
Funds of the republican budget and other state property not assigned to state legal entities
shall constitute the state treasury of the Republic of Kazakhstan.
3. Communal property shall consist of the local treasury and assets which are entrusted to
the communal legal entities in accordance with legislative acts.
The resources of the local budget and any other communal properties which are not
attached to state owned legal entities, shall constitute the local treasury.
This edition of paragraph 3-1 is valid dated 01.01.2018 for cities of district importance,
3-1. Communal property is divided into local government and self-governance levels by:
oblast, cities of republican importance, the capital city;
regional (cities of oblast significance);
cities of district significance, villages, settlements, and rural districts (municipal property
of local self-government).
4. The property which is in the state ownership may be entrusted to state legal entities in
accordance with the economic management or operational management.
5. Special considerations in the legal regime of the state property which is under authority
of certain state-owned institutions shall be defined by legislative acts.
6. Transfer of state property from one type of state ownership to another shall be carried
out in accordance with the legislative act of the Republic of Kazakhstan on state property.
Voluntary and gratuitous transfer of property from private ownership to state property
shall be carried out in the order determined by the legislative act of the Republic of
Kazakhstan on state property.
Part three of point 6 is valid dated 01.01.2018 for cities of district importance, villages,
Transfer of property in communal ownership from one level of local government and
self-government to another is carried out in accordance with the legislative act of the
Republic of Kazakhstan on state property.
7. Provisions of this Article shall be applied respectively to other, except for the right to
ownership, civil sights to state property, unless another provided by the legislative act of the
Republic of Kazakhstan on state property or do not contradict to the subject of the civil rights.
March 2, 1998 № 211; dated November 4, 1999 № 472; dated March 2, 2001 № 162; dated
May 21, 2002 № 323; dated May 18, 2005 № 50; dated January 12, 2007 № 225 (shall be
enforced from the date of its official publication); dated 01.03.2011 № 414-IV (shall be
enforced from the day of its first official publication); dated 11.07.2017 № 90-VI (the order
of enactment see paras. 1), paragraph 1 of Article 2); dated 05.11.2022 № 157-VII (shall be
enforced ten calendar days after the date of its first official publication).
Article 193. Ownership of land and other natural resources
The land and its subsoil, water, flora and fauna, and other natural resources shall be
owned by the people of Kazakhstan. On behalf of the people of Kazakhstan, the ownership
right shall be exercised by the state.
At the same time, exercise of the ownership right by the state shall be realized through the
state ownership regime in the interests of the people of Kazakhstan.
Land may also be in private ownership on the grounds, conditions and within the limits
permitted by law.
Footnote. Article 193 - as amended by the Law of the Republic of Kazakhstan dated
05.11.2022 № 157-VII (shall be enforced ten calendar days after the date of its first official
publication).
Article 193-1. Strategic Facilities

1. The strategic object is the property, which has a social-economic significance for the
sustainable development of the Kazakh society, whose ownership and (or) use and (or)
control shall influence the state of the national security of the Republic of Kazakhstan.
2. Strategic objects may include: main railway networks; main pipelines; national
electrical grid; trunk communication lines; television and radio broadcasting facilities (
production and technological complex of terrestrial and satellite television and radio
broadcasting systems); oil refineries; energy-producing facilities with a capacity of at least 50
megawatts; national postal network; international airports; seaports of international status;
aeronautical devices of the air traffic control system; devices and navigational signs that
regulate and guarantee the navigation safety; nuclear energy facilities; stationary potentially
hazardous biological facilities where pathogenic biological agents of pathogenicity group I
are handled; objects of the space industry; water management structures; public roads;
property complex of the organization of the military-industrial complex; as well as blocks of
shares (participatory interests, stakes) in legal entities that own strategic objects, blocks of
shares (participatory interests, shares) of individuals and legal entities that have the ability to
directly or indirectly determine decisions or influence decisions made by legal entities , who
own the strategic objects.
The strategic facilities may be owned by the state or legal bodies in accordance with the
legislation of the Republic of Kazakhstan.
3. The encumbrance of strategic facilities by the rights of third persons or their alienation
shall be possible on the basis of the decision of the Government of the Republic of
Kazakhstan on granting of permission and in the order, established by the legislative act of
the Republic of Kazakhstan concerning the state property.
4. In the cases of intention of the citizen or non-governmental legal entity to make a
transaction for alienation of the strategic facility, as well as for foreclosure on the strategic
facility or for alienation of the strategic facility by the rehabilitation or bankruptcy manager,
or for the sale of a pledged property (strategic facility) by the pledge holder without legal
proceedings, or the levying of execution on the strategic facility on the basis of judicial act,
the Republic of Kazakhstan has the priority right to acquire the strategic facility on the terms
determined by the legislative act of the Republic of Kazakhstan on state property.
The market price of the strategic facility shall be determined in accordance with the
legislation of the Republic of Kazakhstan concerning the valuation activities and by the
legislative act of the Republic of Kazakhstan concerning the state property.
The order of using priority right to obtain the strategic facility shall be determined by the
legislative act of the Republic of Kazakhstan concerning the state property.
5. If during encumbrance of the strategic facility by the rights of third parties or its
alienation, the requirements of paragraphs 3 and 4 of this Article are violated, such
transactions shall be null and void.
Footnote. The Code is supplemented with Article 193-1 by the Laws of the Republic of
Kazakhstan dated 07.08.02007 № 321 (shall be enforced from the date of its official
publication); as amended by the Laws of the Republic of Kazakhstan dated 13.02.2009 №
135-IV (the order of enforcement see Art. 3); dated 01.03.2011 № 414-IV (shall be enforced
from the date of its first official publication); dated 25.03.2011 № 421-IV (shall be enforced
upon expiry of ten calendar days after its first official publication); dated 22.06.2012 № 21-IV
( shall be enforced upon expiry of ten calendar days after its first official publication); dated
official publication); dated 27.02.2017 № 49-VI (shall be enforced upon expiry of ten
calendar days after the day its first official publication); dated 21.05.2022 № 123-VII (shall
be enforced six months after the date of its first official publication); dated 23.12.2023 № 51-
VIII (shall be enforced ten calendar days after the date of its first official publication).
Article 194. The Right to Own and Other Proprietary Rights to Housing
Special considerations for the exercise of the right of ownership and any other corporeal
rights relating to housing shall be covered by legislation concerning housing.
Article 195. The Proprietary Rights of Persons Who are Not Owners
1. Aside from the right to own, the following shall be recognized as corporeal rights:
1) the right to use land;
2) the economic management;
3) the right to operational management;
3-1) the limited right to the target using of another property (servitude);
4) other corporeal rights, provided for by this Code or any other legislative acts.
2. The provisions concerning the right of ownership shall apply to corporeal rights, unless
it is otherwise stipulated in legislation, and when it does not contradict the nature of a given
corporeal right.
3. Passing of title to another person’s property shall not constitute grounds for termination
of the other corporeal rights to this property, unless otherwise specified by the legislative acts
March 2, 1998 № 211; dated January 12, 2007 № 225 (shall be enforced from the date of its
first official publication); dated 25.03.2011 № 421-IV ( shall be enforced upon expiry of ten
Chapter 9. The Economic Management
Article 196. The Economic Management of a State Enterprise

1. The economic management shall be a corporeal right of state-owned enterprises that
received their property from the State as the owner, and which exercise within the limits
established by this Code and other legislative acts, the right to own, use and dispose of that
property.
2. Special considerations for the exercise of the economic management shall be
determined by the legislative acts of the Republic of Kazakhstan.
02.03.1998 № 211; dated 01.03.2011 № 414-IV (shall be enforced from the date of its first
Article 197. The Objects of the Economic Management
Any property, unless it is otherwise stipulated in legislative acts of the Republic of

Kazakhstan, may be object of the economic management.
01.03.2011 № 414-IV (shall be enforced from the date of its first official publication).
Article 198. The Acquisition and Termination of the Right of Business Authority
1. The right of business authority over the property which the owner decided to entrust to
a state-owned enterprise that has already been formed, shall arise for that enterprise at the
moment of the registration of the property in the independent balance-sheet of the enterprise,
unless it is otherwise established by legislation or decision of the owner.
2. The agricultural produce, products and income from the use of the assets which are
under business authority, and also the assets which are acquired by the enterprise in
accordance with agreements or on any other grounds, shall be received into the business
authority of the enterprise in accordance with the procedure established by legislative acts for
the acquisition of the right to own.
3. The economic management with regard to property shall cease on the grounds and in
accordance with the procedure stipulated by legislation for the cessation of the right of
ownership, and also in the cases of the legitimate withdrawal of property from the enterprise
by decision of the owner.
Article 199. The Right of the Owner With Regard to the Property which is Under Business
Authority
The owner of the assets which are under business authority, shall in accordance with
legislative acts decide issues of creating an enterprise, determining the objectives and
purposes of its activity, of its reorganization and liquidation, and the owner shall exercise the
control of use of the property belonging to the enterprise of its purposeful use and safety.
The owner shall have the right to receive part of net income from the use of the assets
which are under the business authority of the enterprise formed by him (her).
11, 1997 № 154.
Article 200. The Conditions for the Exercise of the Property Rights of a State-Owned Enterprise
1. A state-owned enterprise which carries out its activities under the rights to business
authority, unless it is otherwise stipulated in legislative acts, shall not have the right to enter
into the followings of entrepreneurial activity without the approval of the owner or of the
state body authorized by the owner:
1) to sell or transfer to any other persons, exchange, long-term lease (longer than three
years), entrust for temporary charge-free use the buildings, facilities, equipment and any other
fixed assets of the enterprise which belong to it;
2) to form affiliates and subsidiaries, establish in conjunction with private entrepreneurs
enterprises and joint production facilities, to invest in them its productive and monetary
capital;
2-1) to dispose of his (her) assets (except for the cases specified by this Article) as well as
the debtor indebtedness.
3) give a loan;
4) to issue surety ship or a guarantee with regard to obligations of third persons.
2. Unless it is otherwise stipulated in legislation, a state enterprise shall independently
dispose of the property which is attached to it under the right of business authority, and which
is not recognized as fixed assets.
A state-owned enterprise under the rights to business authority shall not have the right to
sell and to cut deals of gift in respect of the property, which refer to the basic assets of the
state enterprise, as well as assets belonging to it.
414-IV (shall be enforced from the date of its official publication).
Article 201. The Application of the Provisions Concerning the Right of Ownership to the Relations
with the Participation of State-Owned Enterprises
The provisions of this Code concerning the right to own shall apply to property relations
with the participation of the state enterprises, unless otherwise ensue from this Code and any
Chapter 10. The Right to the Operational Management
Article 202. The Definition and Contents of the Right

1. The right of operational management shall be recognized as a corporeal right of an
institution, state owned institution which is financed at the expense of the funds of its owner,
and of a public enterprise which received property from the owner and which exercise within
the confines established by legislative acts, and in accordance with the objectives of their
activities, assignments of the owner and designation of the property, the rights to possess, use
and dispose of that property.
Note RCLI!
2. The peculiarities of exercising the right of operational management of state enterprises
and state institutions shall be determined by the laws of the Republic of Kazakhstan "On State
Property" and "On Local State Management and Self-Government in the Republic of
Kazakhstan".
02.03.1998 № 211; dated 16.12.1998 № 320; dated 01.03.2011 № 414-IV (shall be enforced
from the date of its official publication); dated 11.07.2017 № 90-VI (the order of enactment
see paras. 1), paragraph 1 of Article 2).
Article 203. The Acquisition and Cessation of the Right of Operational Management
The acquisition and cessation of the right of operational management shall be exercised
on the conditions and in the accordance with the procedure stipulated in Chapters 13 and 14
of this Code, unless it is otherwise stipulated in legislative acts of the Republic of Kazakhstan
.
01.03.2011 № 414-IV (shall be enforced from the date of its official publication).
Article 204. The Rights of the Owner of the Property Entrusted for Operational Management
1. The owner of the assets which are in operational management shall in accordance with
legislative acts decide the issues of creating an institution, state-owned institution or a public
enterprise, of determining the objectives and the purposes of its activities, it shall have the
right to determine the legal destiny of the institution, state-owned institution or public
enterprise, and the contents of its activities.
2. The owner shall exercise supervision for the efficient and safe operation by the
institution, state-owned institution or the public enterprise of the assets entrusted by the owner
.
3. In the event that an institution is formed by several owners, the relations between them
and the rights of the owners to manage their assets shall be determined by the foundation
agreement or a similar contract.
publication).
Article 205. The Right of the Owner to Withdraw and Re-allocate the Property Entrusted for
Operational Management
The owner of the assets entrusted to an institution, state-owned institution or a public

enterprise shall have the right to withdraw that property or re-allocate it between other legal
entities formed by the owner at his (her) discretion, unless it is otherwise stipulated in
16.12.1998 №320; dated 01.03.2011 № 414-IV (shall be enforced from the date of its official
publication).
Article 206. The Dispose of the Property of an Institution
An institution shall not have the right to alienate or in any other way dispose of the assets
which are entrusted to it and of the assets which are acquired at the expense of the resources
appropriated to it in accordance with the estimate.
Special considerations for the exercise of the commercial activities of state institutions
shall be determined by the legislative act of the Republic of Kazakhstan.
Article 207. The Liability of the Foundation Party With Regard to Debts of the Public Enterprise
and State-Owned Institution
Footnote. Title of Article 207 as amended by the Law of the Republic of Kazakhstan
dated 01.03.2011 № 414-IV (shall be enforced from the date of its first official publication).
1. A public enterprise shall be liable for its obligations with the funds at its disposal.
When funds owned by a public enterprise are insufficient, the Government of the
Republic of Kazakhstan or the relevant local executive body shall bear the subsidiary liability
under its obligations.
2. Liability of institutions and state-owned institutions shall arise in accordance with the
procedure provided for by paragraph 1 of Article 44 of this Code.
publication).
Article 208. The Transfer of the Right to Own an Institution
When the right to own an institution is transferred to any other entity, that institution shall
retain the right of operational management of the property which belongs to it.
Chapter 11. Common Property
Article 209. The Definition and Grounds for the Emergence of Common Property
1. Property which is in the ownership of two or more persons shall belong to them under
the right of common ownership.
2. Assets may be in common ownership with the determination of the share of each of the
owners in the right to own (shared ownership) or without determining such shares (joint
property).
3. Common ownership of any assets shall be shared-ownership, except for the cases
where the law stipulates the formation of joint ownership of the property.
4. Common ownership shall emerge when two or several persons receive the property
which may not be divided without changing its designation (indivisible items), or may not be
divided by virtue of law.
Common ownership of indivisible assets shall emerge in the cases which are stipulated in
legislative acts or an agreement.
5. By agreement of the participants of common property, and in the case of failure to
reach consensus, upon the decision of a court, shared ownership of the entities may be
established with regard to the common property.
6. Ownership of real estate may arise in the form of a condominium, whereby certain
parts of real estate are in individual (separate) ownership of citizens and (or) legal entities,
and those parts of real estate which are not in separate ownership, shall belong to the owners
of parts of real estate under the right of common shared ownership.
The share of each owner in the common property shall be inseparable from his separate
ownership of a part of real estate belonging to him.
The size of a share of each owner in the common property, and the degree of participation
in costs of its maintenance, shall be related to the size of the parts of real estate which are in
individual (separate) ownership, unless it is otherwise stipulated in legislative acts or an
agreement.
7. Peculiarities of the legal regime of the general share ownership for the assets of the unit
investment fund are determined by the legislative act of the Republic of Kazakhstan on
investment and venture funds.
Footnote. Article 209 is supplemented with the paragraph 6 by the Law of the Republic of
Kazakhstan dated March 2, 1998 № 211. As amended by the Law of the Republic of
Kazakhstan dated July 7, 2004 № 577; dated 04.07.2018 № 174-І (shall be enforced upon the
expiration of ten calendar days after the day of its first official publication).
Article 210. Determining the Shares in the Right of Shared Property
1. When the size of the shares of participants of shared property may not be established on
the basis of legislative acts and is not established by an agreement of all its participants, the
shares shall be deemed to be equal.
2. An agreement of all the participants in a shared property may establish a procedure for
determining or changing their shares in relation to the contribution of each one of them to the
formation and the increase of the common property.
Article 211. The Rights of a Participant in Shared Property which are Associated with its
Improvement
1. A participant in shared property who carries out at his (her) own expense, in
compliance with the procedure established for the use of common property, its inseparable
improvements, shall have the right to proportionate increase of his share in the right to the
common property.
2. The separable improvements of common property, unless it is otherwise stipulated in
an agreement of the participants in common property, shall become the property of the one of
the participants who made them.
Article 212. Disposal of the Assets which are in Shared Ownership
1. Disposal of the assets which are in shared property shall be carried out by with the
agreement of all its participants.
2. Each participant in the shared property shall have the right at his discretion to sell,
transfer as a gift, bequeath, or mortgage his share, or to dispose of it in any other manner in
compliance with the conditions stipulated by Article 216 of this Code.
Article 213. Ownership and Use of the Property which is in Shared Ownership
1. Managing and using the assets which are in shared ownership shall be carried out by
agreement of all its participants, and where consent is not reached, it shall be established by
the court.
2. Each participant in shared ownership shall have the right to be granted, into his
ownership and use a part of the common property commensurate with his share, and where it
is impossible, he shall have the right to claim from the other participants who own and use the
property corresponding to his the share of payment of the appropriate amount or other
compensation.
Article 214. Produce, Goods and Income from the Use of the Property which is in Shared
Ownership
The produce, goods and income from the use of the property which is in shared ownership
, shall become part of the common property. Subsequent distribution of the produce, goods
and income shall be carried out between the participants of shared property in proportion to
their shares, unless it is otherwise stipulated in the agreement between them.
Article 215. Expenditures Associated with the Maintenance of the Property which is in the Shared
Ownership
Each participant in shared ownership shall be obliged to participate in the payment of

taxes, levies and any other payments in respect of their common property in proportion to his
share, and also in the costs of its maintenance and preservation.
Article 216. The Pre-emption Right
1. When a share in the right of shared ownership is sold to a stranger, the other
participants in the shared ownership shall have a pre-emption right to purchase the share
which is being sold, at the price at which it is being sold and on other equal conditions, except
for the case of selling through a public auction.
Public auctions for selling shares in the right of shared ownership, where the approval of
all the participants in the shared ownership is not reached, may be carried out in the cases,
stipulated in paragraph 2 of Article 222 of this Code, and in other cases stipulated in
legislative acts.
2. The seller of a share shall be obliged to notify in writing the other participants in shared
ownership concerning his intention to sell his share to an outside party with an indication of
the price and any other conditions on which he is selling it. If the other participants in shared
ownership refuse to purchase or fail to acquire the share which is sold in the right to own
immovable property during one month, and with regard to any other assets within 10 days
from the date of the receipt of the notice, the seller shall have the right to sell his share to any
other person.
3. When a share is sold in violation of the pre-emption right, another participant in shared
ownership shall have the right within three months to claim in the court a transfer to him of
the rights and obligations of the buyer.
4. The assignment of the pre-emption right to purchase a share shall not be allowed.
5. The rules of this Article shall also apply when a share is alienated in accordance with a
barter agreement.
6. The rules of this Article shall extend to the cases of disposition of the strategic facilities
.
August 7, 2007 № 321 (shall be enforced from the date of its official publication).
Article 217. The Moment of the Transfer to the Buyer of a Share in the Right of Shared Ownership
in accordance with an Agreement
A share in the right of shared ownership shall be transferred to the buyer through an
agreement from the moment of concluding the agreement, unless the agreement of the parties
stipulates otherwise.
The moment of transfer of a share in the right of shared ownership in accordance with the
agreement which is subject to state registration or notarization, shall be determined in
accordance with paragraph 2 of Article 238 of this Code.
Article 218. Division of Property which is in the Shared Ownership and Appropriation of a Share
out of it
1. The property which is in shared ownership may be divided between its participants by
an agreement between them.
2. A participant in shared ownership shall have the right to claim the appropriation of his
share out of common property.
3. Where participants in shared ownership fail to reach an agreement on the methods and
conditions of dividing the common property or appropriation of the share of one of them, a
participant in shared ownership shall have the right to claim the appropriation of his share out
of the common property, in kind.
When the appropriation of a share in kind is not allowed by legislative acts or it is
impossible without unreasonable damage to the property which is in the common ownership,
the owner who is appropriating, shall have the right to be paid by the other participants in
shared ownership for the value of his share.
4. The misappropriation of the property which is appropriated in kind to a participant in
the shared ownership on the basis of this Article, to his share in the right of ownership shall
be eliminated by payment of appropriate amount of money or by other compensation.
The payment to a participant in shared property by the other owners of compensation
instead of appropriating his share in kind, shall be allowed upon his consent. In the cases
where the share of certain owner is minor, and it may not be realistically appropriated and he
has not any substantial interest in the use of the common assets, the court may in the case of
the absence of consent of that owner, compel the other participants in shared ownership to
pay him compensation.
5. With the receipt of compensation, in accordance with paragraphs 3 and 4 of this Article
, the owner shall lose the right to his share in the common property.
6. If it is not possible to divide the common property or divide a share out of it according
to the rules set forth in paragraphs 3 and 4 of this Article, the court shall decide to sell the
property at the public auction with the subsequent distribution of the proceeds between the
participants of common property in proportion to their shares.
Article 219. Common Joint Property
1. Joint common property shall exist in the following forms:

1) the common property of spouses;
2) the common property of a peasant farm;
3) the common property to privatized housing.
2. Legislative acts may stipulate any others of the joint common property.
3. The joint common ownership shall be established and it shall exist, unless an agreement
between its participants stipulates otherwise.
Article 220. Ownership, Use and Disposal of the Property which is in the Joint Ownership
1. The participants in joint ownership, unless it is otherwise stipulated in an agreement

between themselves, shall collectively own and use common property.
2. The disposal of the assets which are in the joint ownership, shall be carried out with the
consent of all the participants, which is presumed irrespective of which of the participants
entered into the property disposal transaction.
3. Each of participants in joint ownership shall have the right to enter into transactions
disposing of the common property, unless it is otherwise ensues from the agreement of all the
participants. A transaction which is entered into by one of the participants in joint ownership,
and which is connected with the disposal of the common property, may be recognized as
invalid by the claim of the other participants on the motive that the participant who entered
into the transaction did not have the requisite powers, only in a case where it is proved that
the other party in the transaction knew or should beforehand have known of it.
When entering into the transactions which require the notarization or state registration, the
consent of the other participants in joint ownership, to the commitment of the transaction
must be confirmed in the notarial procedure.
4. Paragraphs 1-3 of this Article shall apply, unless it is otherwise stipulated by this Code
or other legislative acts with regard to specifics of the joint property.
Article 221. Division of the Property which is in the Joint Ownership and Appropriation of a Share
out of it
1. The division of common assets between participants in joint ownership, and also the
appropriation of the share of one of them, may be carried out under the condition that there
has been a prior definition of the share of each of the participants in the right to common
property.
2. When dividing common property or appropriating a share out of it, provided it is not
stipulated otherwise in legislative acts or agreement of the participants, their shares shall be
recognized as equal.
3. The basis and the procedure for the division of joint property and the appropriation of a
share out of it shall be determined in accordance with the rules of Article 218 of this Code,
unless it is otherwise stipulated by this Code, or other legislative acts for certains of joint
property, nor does it ensue from the essence of relations of the participants in the joint
property.
2, 1998 № 211.
Article 222. Imposition of a Claim on a Share in Common Property
1. The creditor of a participant in shared or joint property in the case of insufficiency of

other assets of the latter, shall have the right to impose a claim of appropriating the share of
the debtor in the common property for the imposition of the claim upon it.
2. In the event that the other participants in common property refuse to purchase the share
of the debtor, the creditor shall have the right to claim through the court the imposition of the
claim upon the share of the debtor in the common property by way of selling that share in a
public auction.
3. Where in such cases the appropriation of a share in kind is impossible or the other
participants in shared or joint property object thereto, the creditor shall have the right to claim
the sale by the debtor of his (her) share to the other participants of the common property at the
price which is related to the market value of that share, with the use of the funds received
from the sale for the repayment of the debt.
Article 223. Common Property of Spouses

1. Property which is gained by spouses during their marriage, shall be the common
property, unless an agreement between themselves stipulates that those assets are shared
property of the spouses, or it belongs to one or certain parts of it belong to either spouse in
accordance with the right of ownership.
2. The assets which belonged to spouses prior to entering the marriage, and also those
received by them during the marriage, as a gift or in the procedure of inheritance, shall be the
property of either of them.
The objects of individual use (clothes, footwear etc.), except for jewelry and other objects
of luxury, although acquired during the marriage at the expense of common funds of the
spouses, shall be recognized as the property of that spouse who used them.
Property of each of the spouses may be recognized as their joint property, provided it is
established that during their marriage investments have been made at the expense of the
common property of the spouses, which significantly increased the value of that property (
capital repairs, refurbishment, re-equipment, etc.).
3. Upon the obligations of one of the spouses, a claim may be imposed only on the assets
which are in his (her) ownership, and also upon his (her) share in the common assets of the
spouses, which would be due to him, should that property be divided.
4. Special considerations in the right to joint property of spouses shall be determined by
legislation of the Republic of Kazakhstan concerning the marriage and family.
2, 1998 № 211.
Article 224. The Ownership of a Peasant or Farmer Holding
1. The property of a peasant holding shall belong to its members on the right of joint
ownership, unless otherwise specified by the agreement.
The property of a farmer holding organized in the form of the association on the basis of
the joint operation agreement, shall belong to its members on the right of joint ownership.
The property of a farmer holding, formed on the private enterprise, shall belong to him (
her) on the right of private ownership
2. Members of a peasant or farming enterprise may own land plots, plantations on a land
plot, including private forest plantations, wild animals bred and kept in captivity and (or)
semi-free conditions, plant genetic resources, maintenance and other buildings , land
reclamation and other installations, productive and working livestock, poultry, agricultural
and other machinery and equipment, vehicles, inventory and other property transferred by
members of the farm and (or) acquired for the farm on the common funds of its members.
3. The produce, goods, and income received as a result of activities of the peasant (farmer
) holding, shall be recognized as common property of the members of the peasant (farmer)
holding and they shall be used by agreement between them.
January 12, 2007 № 225 (shall be enforced from the date of its official publication); as
amended by the laws of the Republic of Kazakhstan dated 02.01.2023 № 184-VII (shall be
enforced sixty calendar days after the date of its first official publication).
Article 225. The Division of Property of a Peasant or Farmer Holding
1. When terminating a peasant (farmer) holding in relation to the departure there from of
all its members, or on other basis, the common property shall be subject to division in
accordance with the rules stipulated in Articles 218 and 221 of this Code.
2. The means of production which belong to a peasant or farmer holding, in the case of
the exit of one of its members from the farm, shall not be subject to division. The person who
exited the farm shall have the right to receive a monetary compensation proportionate with his
share in the common ownership of that property.
3. In the cases stipulated in paragraph 1 and 2 of this Article, shares of the members of a
peasant or farmer holding in the right of joint ownership of the property of the farm shall be
recognized as equal, unless the agreement between themselves stipulates otherwise.
Article 226. The Legal Regime of the Property in the case of Reorganization a Peasant or Farmer
Holding into a Business Partnership or Co-operative
1. Members of a peasant or farmer holding on the basis of the farm's property may form a
business partnership or a production co-operative. Such a reorganized peasant or farmer
holding as a legal entity, shall have the right to own the property transferred to it in the form
of investments and other contributions by the members of the farm, and also the property
received as a result of its activities and acquired on other grounds which do not contradict
legislation.
2. The amounts of contributions of members of a peasant or farmer holding, who are
participants of a partnership or members of a co-operative, shall be established on the basis of
their shares in the right of common ownership of the property of the peasant or farmer
holding as determined in accordance with the procedure specified in paragraph 3 of Article
225 of this Code.
Article 227. Common Ownership of Privatized Housing
Housing which is purchased or acquired free of charge by the tenant in accordance with
legislation concerning privatization in the buildings of the state housing stock, shall be
transferred into the common ownership of the tenant and his (her) family members who reside
permanently with him, including minors and those temporarily absent, unless it is otherwise
stipulated in an agreement between them.
Special considerations with regard to the right of joint ownership of privatized housing
shall be determined by legislative acts concerning housing relations.
02.03.1998 № 211, dated 01.03.2011 № 414-IV (shall be enforced from the date of its first
Chapter 12. Agreement On Joint Activities (Ordinary Partnership)
Article 228. Ordinary Partnership
1. An ordinary partnership shall be formed on the basis of an agreement on joint activities.

In accordance with the agreement concerning joint activities (the agreement on ordinary
partnership) the parties undertake to act jointly in order to earn income or attain any other
objective which does not contradict the law.
An ordinary partnership shall not be a legal entity.
2. The agreement concerning joint activities (the agreement on ordinary partnership) shall
be concluded between citizens, citizens and legal entities, and between legal entities (
consortium).
3. The obligations of the participants of an ordinary partnership, which are related to the
agreement on joint business activities, before third persons shall be joint obligations, unless
their joint activities agreement stipulates otherwise.
2, 1998 № 211.
Article 229. Maintaining general affairs of parties to the agreement
Common cases of the parties to the joint activities agreement shall be conducted by their
common agreement. By the agreement between themselves, they may entrust the management
of joint activities and the conduct of general affairs to one of the participants, acting in this
case on the basis of a power of attorney issued by the other parties to the agreement, or to a
third party in cases provided for by Article 823 of this Code and the legislation of the
Republic of Kazakhstan on project financing and securitization.
Footnote. Article 229 – in the wording of the Law of the RK dated 02.01.2021 № 399-VI
(shall enter into force upon the expiry of ten calendar days after the day of the first official
publication).
Article 230. Common Property of the Participants in Agreement

1. In order to attain their objectives, the participants in agreement on joint activities shall
make contributions in money or in other property or by way of labor contribution.
2. The monetary or any other property contributions of the participants in agreement and
also the assets which are created or acquired as a result of their joint activity shall be their
joint shared property.
3. (Is excluded).
4. The property of the participants of an agreement shall be subject to the provisions of
this Code on common shared property, unless it is otherwise stipulated by the provisions of
this Chapter, other legislative acts or an agreement on joint operation.
2, 1998 № 211.
Article 231. Common Expenditures and Losses of the Participants of the Agreement
The procedure for covering general costs associated with joint activity and losses which
are incurred as a result of it shall be defined by the agreement of the participants. When the
agreement does not provide for such a procedure, the general costs and losses shall be
covered at the expense of the common property of the participants in agreement, and the
missing amounts shall be distributed between them in proportion to their shares in that
property.
2, 1998 № 211.
Article 232. The Conveyance of the Right and Refusal to Participate in Joint Activities
1. The conveyance of the right to participate in joint activities may be carried out only
with the consent of the participants of an agreement on joint activities (ordinary partnership
agreement).
2. A participant of the agreement on joint activities (ordinary partnership agreement) shall
have the right at his discretion to refuse participation in joint activities.
3. Losses which are inflicted by the refusal of any one of them from the participation in
joint activities shall be claimed in full volume, unless the agreement on joint activities (
ordinary partnership agreement) stipulates otherwise.
Article 233. Consortium
1. The consortium shall be a temporary voluntary equal-rights union (association) on the

basis of an agreement on joint business activities in which legal entities unite certain
resources and co-ordinate efforts to solve specific business issues.
2. The participants of a consortium shall retain their business independence and may take
part in the activities of any other consortia or associations.
Relations between the members of a consortium shall be built on a contractual basis.
3. Managing a consortium shall be carried out in accordance with the consortium
agreement between the members of the consortium.
4. The participants of a consortium shall be jointly liable for the obligations related to the
activities of the consortium, unless it is otherwise stipulated in the agreement on consortium.
5. A consortium shall cease its activities after the execution of the task set to it, upon the
decision of its participants.
2, 1998 № 211.
Article 234. The Rules for Certains of Joint Activities
Certains of business activities shall be regulated by the legislation of the Republic of

Kazakhstan in accordance with this Code.
Chapter 13. The Acquisition of the Right to Own and of Other Proprietary Rights
Article 235. The Basis for the Acquisition of the Right to Own
1. The right to own a new object shall belong to the person who manufactured or created
it, unless it is otherwise stipulated in an agreement or legislation.
The right to own fruit, production, or income received as a result of the use of the assets,
shall be acquired in accordance with Article 123 of this Code.
2. The right to own the property which has an owner may be acquired by any other person
on the basis of a purchase and sale agreement, exchange agreement, a gift agreement, or any
other transaction to alienate that property.
In the case of death of a citizen, the right to own the assets which belong to him shall be
transferred by inheritance to other persons in accordance with the will or law.
In the case of reorganizing a legal entity, the right to own the assets which belong to it
shall be transferred to the legal entities which are legal successors of the reorganized legal
entity (Article 46 of this Code).
The alienation of the assets from an owner to another person past the approval of the
owner shall not be allowed, except for the cases stipulated in this Code.
3. In the cases and in accordance with the procedure stipulated in this Code, a person may
acquire the right of ownership of the property which does not have an owner, or the property
of which the owner is not known, or the property of which the owner refused it or lost the
right to own it for other reasons.
3-1. In the cases and in accordance with the procedure stipulated by the Laws of the
Republic of Kazakhstan the state shall acquire the right of ownership of the property when
requisition, nationalization, forced taking out of the land property, particularly for the state
needs, as well as when alienating of the immovable property in view of taking out of the land
property.
4. Members of a consumer co-operative (housing, housing construction co-operative,
dacha cooperative, garage and any other co-operative), and other persons who have the right
to accumulate share units, who fully paid their unit-share contribution for the apartment,
dacha, garage or any other premises granted to those persons by the co-operative for their use,
shall acquire the right to own the indicated assets.
Article 236. The Emergence of the Right to Own Newly-Created Immovable Assets
1. The right of ownership to newly created immovable assets shall arise from the moment
of state registration.
2. When legislative acts or an agreement stipulate the acceptance of the finished
construction objects, then the creation of the relevant property shall be considered to be
accomplished from the moment of such acceptance.
3. Is excluded by the Law of the Republic of Kazakhstan dated 27.02.2017 № 49-VI (
shall be enforced upon expiry of ten calendar days after the day its first official publication).
4. Until the moment of state registration of the right to newly created immovable assets,
the property shall be subject to the rules on the ownership right for materials and other
property from which the immovable property shall be created.
Article 237. Re-processing
1. Unless otherwise stipulated in the agreement, the right of ownership of a new movable
asset manufactured by a person by way of processing the materials which do not belong to
him (her), shall be acquired by the owner of the materials.
However, when the cost of processing substantially exceeds the cost of the materials, the
right to own the new object shall be acquired by the person who, acting in good faith, carried
out the processing for himself/herself.
2. Unless it is otherwise stipulated in the agreement, the owner of the materials who
acquired the right of ownership of the object manufactured thereof, shall be obliged to
compensate the cost of the processing to the person who carried it out, and in the case of the
purchase of the right to own the new object by that person, the latter must accordingly
compensate to the owner of the materials for their value.
3. The owner of materials who lost them as a result of dishonest actions of the person who
carried out the processing, shall have the right to claim the transfer of the new object into his
ownership and the reimbursement of the losses inflicted upon him (her).
Article 238. The Moment of the Emergence of the Buyer’s Right to Own by Agreement
1. The buyer of the property shall acquire the right of ownership by agreement from the
moment of the conveyance of the object, unless it is otherwise stipulated in legislative acts or
agreement.
1-1. If the right of ownership of the buyer under the agreement is subject to the state
registration, the right of ownership of the buyer of the property acquires from the moment of
such registration, unless it is otherwise stipulated in legislative acts.
2. When an agreement to alienate property is subject to state registration or notarization,
the right of ownership shall be acquired by the buyer from the moment of the registration or
notarization, and when both notarization and state registration of the agreement are required,
then from the moment of its registration.
25.03.2011 № 421-IV (shall be enforced upon expiry of ten calendar days from the date of its
Article 239. Transfer of Objects
1. A conveyance shall be recognized as handing objects to the buyer, and equally the
submission to a transport organization for shipment to the buyer, and the submission to the
post-office for the conveyance to the buyer of the objects which are alienated without
obligation of delivery, unless it is otherwise stipulated in legislation or agreement.
2. If by the moment of concluding an agreement on the alienation of an object it is already
in the possession of the buyer, the thing shall be recognized as transferred to him from that
moment. The transfer of a waybill or bill of lading or any other document of title concerning
objects, shall be equated to the transfer of those objects.
Article 240. Acquisitive Prescription
1. A citizen or a legal entity who is not the owner of certain property but who honestly,
openly and continuously possess as his own the immovable assets for fifteen years, or any
other assets for not less than five years, shall acquire the right to own those assets (
acquisitive prescription).
The right to own immovable and any other assets which are subject to state registration,
shall arise with the person who acquired that property by virtue of acquisitive prescription,
from the moment of such registration.
2. Prior to the acquisition of the right to own property, a citizen or a legal entity which
holds it as their own, shall have the right to protect their ownership against third persons who
are not the owners of the property and also against third persons, who have no right to own it
by virtue of any other reason stipulated in legislative acts or the agreement.
3. A citizen or a legal entity which refer to the length of possession, may add to their
possession all the time during which the object was possessed by the person whose legal
successors they are.
4. Running of the time period of the acquisitive prescription shall begin from the moment
of owning the subject.
shall be enforced upon expiry of ten calendar days from the date of its official publication).
calendar days from the date of its official publication); dated 22.07.2011 № 479-IV(shall be
enforced upon expiry of ten calendar days from the date of its official publication).
Article 241. Conversation Into Property of the Things which are Commonly Available for
Collection or Extraction
In the event that, in accordance with legislation, local tradition, or general permission
given by the owner, in forests, bodies of water or in any other territories, it is allowed to
collect berries, catch fish, hunt animals, collect or extract any other items, the right to own the
relevant items shall be acquired by the person who has collected or extracted them.
Article 242. Ownerless Objects
1. Ownerless objects shall be recognized as objects which have no owner, or whose owner
is unknown, or objects for whose owners reject the right to own them.
2. Unless excluded by the rules for the acquisition of the right to own objects rejected by
the owner (Article 243 of this Code), findings (Article 245 of this Code), unattended animals
(Article 246 of this Code), and hoard (Article 247 of this Code), the right to own ownerless
movable objects may be acquired by virtue of acquisition by acquisitive prescription (Article
240 of this Code).
3. Ownerless immovable objects shall be registered for accounting by the body which
carries out the state registration of immovable assets, in accordance with an application to the
local executive body in whose territory they are identified. Upon expiry of a year from the
date of registering an ownerless immovable object, the body which is authorized to manage
communal property may petition to the court with the claim to recognize that object as the
one received by the communal property.
In the event that the owner release the property right by way of announcing about it, local
executive body shall apply to court with the requirement to recognize that object entered the
community property from the moment of the announcement about refusal.
Arrangement of work concerning the account, keep, appraise, further use and realization
of property, which entered the community property shall be conducted by the local executive
body.
Ownerless immovable objects, which are in the possession of the citizens or
non-government legal bodies, which possess property as its own, shall not be registered and
passed to the community property.
The procedure of account, keep, appraise, further use and realization of property, which
entered the community property shall be determined by the Government of the Republic of
Kazakhstan.
Owner shall have the right to apply with the application for the deregistration of the object
belonging to him (her) as ownerless and to take it in his (her) actual occupancy at any time
before the appearance of property right of another person.
December 24, 2001 № 276 (shall be enforced from January 1, 2002); dated December 20,
2004 № 13 (shall be enforced from January 1, 2005); dated June 22, 2006 № 147; dated
01.03.2011 № 414-IV (shall be enforced from the date of its official publication); dated
22.07.2011 № 479-IV (shall be enforced upon expiry of ten calendar days from the date of its
Article 243. Movable Objects Rejected by the Owner
1. Movable objects abandoned by their owner or otherwise left by him in such a manner
that rejects ownership of specified objects may be taken by other persons into their ownership
in accordance with the procedure provided for by paragraph 2 of this Article.
2. A person who owns, holds or uses a land plot where an abandoned items whose value is
apparently lower than twenty monthly assessment indices is located, or abandoned metal
scrap, damaged goods are located, shall have the right to turn those item into his (her)
ownership by beginning to use them or by performing any other acts which witness the taking
such items into ownerships.
Any other abandoned items shall come into ownership of the person who entered their
ownership when pursuant to an application of that person, they are recognized by the court as
ownerless.
Footnote. Article 243 is in the new wording of the Law of the Republic of Kazakhstan
dated March 2, 1998 № 211.
Article 244. Unauthorized Construction

1. A residential house, any other structure, facility or any other immovable asset which is
created on a land plot which is not allocated for those purposes in accordance with the
procedure stipulated in legislation and also one which is built without obtaining appropriate
permits, shall be recognized as unauthorized construction.
2. A person who carries out unauthorized construction shall not acquire the right to own it
. That person shall not have the right to dispose of the structure, nor to sell, transfer as gift,
lease or commit any other transactions.
An unauthorized construction shall be subject to demolition by the person responsible for
its construction or at his (her) expense, except for the cases stipulated in paragraphs 3 and 4 of
this Article.
3. The right to own an unauthorized structure may be recognized by the court as
belonging to the person, who carried out the construction on a land plot which does not
belong to him (her), provided such land plot will be granted to that person in accordance with
the established procedure for the placement of the structure so erected.
The right to own an unauthorized structure on a land plot which does not belong to him (
her), except for the land plots, belonging to the state, may be recognized by the court if the
owner of the land plot agree with that and with the payment of an indemnity to the last
provided that the structure meets the requirements of the legislation of the Republic of
Kazakhstan on architecture, town-planning and construction activity.
The right to own an unauthorized construction object may be recognized by the court also
as belonging to the person in whose legitimate use the land plot on which the construction
took place, is. In that case, the person whose right to own the structure is recognized, shall
compensate the builder for the costs of the construction in the amount determined by the court
.
The right to own an unauthorized structure may not be recognized as belonging to
specified persons when the preservation of the structure entails violation of the rights and
interests protected by law of other persons, or where it creates a threat to the life and health of
citizens.
4. Taking into account social and economic expedience, unauthorized structure carried out
by person on the land plots (on the land, which is not formed in the land plot) belonging to
the state and which are not in use of the state land users, may be transferred to communal
property with compensation for the costs of its construction in the amount determined by the
court.
When carrying out an unauthorized structure on the land plot, which are not in use of the
state land users, taking into account social and economic expedience, an unauthorized
structure may be transferred to communal property with compensation for the costs of its
construction in the amount determined by the court from the budget.
01.03.2011 № 414-IV (shall be enforced from the date of its official publication); dated
27.04.2012 № 15-IV (shall be enforced upon expiry of ten calendar days after its first official
publication).
Article 245. Finding
1. A person who found a lost article must immediately notify the person who lost it about
its discovery, or the owner of the article, or anyone of the other persons known to him, who
have the right to receive it, and return to him the found article.
When an article is found on the premises or in transport, it shall be subject to submission
to the person who represents the owner of those premises or transport. In such case the owner
shall acquire the rights and bear the responsibilities of the person who found the object.
2. When a person who has the right to receive the found article or his whereabouts are
unknown, the person who found the object shall be obliged to report on his finding to the
militia or the local executive body.
3. The person who found an article shall have the right to keep it with himself or leave it
for the safe custody to the militia, the local executive body or to a person indicated by them.
A perishable article, or an article the cost of the custody of which is not commensurate with
its value, may be sold by the person who found it with the receipt of written evidence
certifying the amount received. The money received from the sale of the found article shall be
subject to safe custody or returned to the person who has the right to receive the article, or to
transfer into the ownership of other persons in accordance with the procedure and on the
conditions established for that article itself.
The person who found a article shall be liable for its loss or destruction only in the case of
his intention or gross neglect, and within the limits of the value of the article.
4. When, upon expiry of six months from the moment of the report on finding to the
militia or the local executive body, the person who has the right to receive the lost object is
not identified and does not declare his right with respect to the article to the person who found
it or to militia, or to the local executive body, the person who found the object shall acquire
the right to own it.
When the person who found an article refuses to acquire the found article into ownership,
then it shall be transferred to communal ownership.
5. The person who found and returned an article to the person who is authorized to receive
it, shall have the right to receive from that person, and in the case of the transfer of the article
into the communal property, from the relevant local executive body, compensation for the
unavoidable expenses, associated with the storage, submission, sale of the object, and the
costs of identifying the person authorized to receive it.
6. A person who found an article shall have the right to receive an award from the person
authorized to receive it, in an amount of thirty per cent of the value of the object. When the
found object article a value only for the person who is authorized to receive it, then the
amount of the award shall be determined in accordance with an appraisal carried out by the
parties.
The right to an award shall not arise if the person who found the object does not execute
his obligation to report on the finding, or where he committed other actions in order to
conceal the finding.
20.12.2004 № 13 (shall be enforced from 01.01.2005); dated 01.03.2011 № 414-IV (shall be
enforced from the date of its official publication).
Article 246. Unattended animals
1. A person who detained unattended or stray cattle and other domestic or tame animals
shall be obliged to return them to the owner, and if he or his location are unknown, not later
than within three days from the moment of such detention, to report on the found animals to
the internal affairs bodies or the local executive bodies cities of the republican status, capitals,
districts, cities of regional status which shall adopt measures to find the owner.
During the period of the search for the animals' owner, they may be left by the person
who detained the animals for his maintenance and use, or turned in by him to another person
who has sufficient facilities for their maintenance and use. Upon the request of the person
who detained the animals, the local executive body shall find a person who has the required
conditions for their maintenance and use, and convey to him the animals.
2. The person who detained animals and the person to whom they are transferred for
maintenance and use shall be responsible for the death and damage to the animals only if their
guilt exists, and only for the value of those animals.
3. If within six months from the moment of a report on the detention of working and large
cattle, and two months for any other domestic animals, their owner is not identified and does
not declare his right to them, the right to own those animals shall be transferred to the person
with whom they stayed for their maintenance and use.
In the case of refusal of that person to accept the ownership of the animals maintained by
him, they shall become communal property and shall be used in accordance with the
procedure determined by the relevant local executive body.
4. In the case of return of the animals to the owner, the person who detained the animals
and the person with whom they stayed for maintenance and use shall have the right to receive
from that owner compensation for the expenses associated with the maintenance of the
animals, with reckoning the benefits derived from their use.
5. The person who detained unattended or stray cattle, and other domestic or tame animals
, shall have the right to claim from their owner the payment of a reward in accordance with
paragraph 6 of Article 245 of this Code.
6. In the event that the former owner of the animals arrives after their transfer into the
ownership of any other person, the owner shall have the right, in a case where circumstances
are present which indicate attachment of the animals to the original owner, or cruel or other
improper treatment of them by the new owner, to require their return to him on the conditions
to be established by an agreement with the new owner, and if they fail to agree, through the
court.
20.12.2004 № 13 (shall be enforced from 01.01.2005); dated 12.01.2007 № 225 (shall be
enforced from the date of its official publication); dated 01.03.2011 № 414-IV (shall be
Article 247. Treasure Trove
1. A treasure-trove, which is money or any other valuables hidden in the earth or

concealed by any other method, the owner of which may not be identified or, by virtue of
legislation lost the right to it, shall become the property, in equal shares, of the owner of the
land plot or the owner of the immovable asset in which the treasure-trove was hidden and of
the person who found the treasure-trove, unless the agreement between them establishes
otherwise.
In a case of the finding of a treasure trove by a person who conducts excavations or
research for valuables without the approval of the user of the land plot or the owner of the
immovable property where the treasure-trove was hidden, the treasure-trove shall be subject
to transfer to that owner.
2. In the case of finding a treasure-trove which contains articles which are memorials of
historical or cultural value, they shall be subject to transfer to the ownership of the Republic
of Kazakhstan. In that instance, the user of the land plot or the owner of the immovable
property in which such treasure-trove has been found, and the person who found the
treasure-trove, shall have the right to receive a reward in the amount of fifty per cent of the
value of that treasure-trove. The reward shall be distributed between those persons subject to
the rules stipulated in paragraph 1 of this Article.
Article 248. The Acquisition of Property Confiscated from the Owner
If a person, in accordance with the procedure and under the conditions stipulated in
legislative acts, acquired property confiscated from the owner, on a legitimate basis that
person shall acquire the right to own the property.
Chapter 14. Cessation of the Right to Own and of Other Corporeal Rights Article 249. The Basis
for the Cessation of the Right to Own
1. The right of ownership shall cease after the alienation by the owner of his property to
other persons, the refusal by the owner of the right to own, the death or destruction of
property, and the removal of the right to own the property in any other cases stipulated in
legislative acts.
2. Compulsory confiscation from an owner of his property shall not be allowed except in
the following cases:
1) imposition of a claim upon the assets based on the liability of the owner;
2) compulsory alienation of assets which by virtue of legislative acts may not belong to
that person;
3) requisition;
4) confiscation;
5) alienation of immovable assets in connection with the reservation of a land plot;
6) purchase of ownerless cultural or historic valuables;
7) in any other cases stipulated in this Code;
8) sale of property at public auctions by court decision in the event that it is impossible to
divide common property or divide a share out of it in accordance with Article 218 of this
Code;
9) Forfeiture of the property to the state in accordance with the legislation of the Republic
of Kazakhstan on the return of illegally acquired assets to the state.
3. The assets which are in state ownership shall be alienated into private property:
1) of citizens and legal entities, in the cases, on the conditions and in accordance with the
procedure stipulated in the legislative acts concerning the state property;
2) by way of transferring the state property objects to the payment of the carter capital of
legal entities;
3) in the other cases strictly provided by the laws of the Republic of Kazakhstan.
3-1. The object of alienation may not be the property that, in accordance with the laws of
the Republic of Kazakhstan, may only be in state ownership, as well as property that is in
state ownership and is not subject to alienation in accordance with acts of the President of the
Republic of Kazakhstan or the Government of the Republic of Kazakhstan in coordination
with the President of the Republic of Kazakhstan.
4. In the case of adoption of the Law of the Republic of Kazakhstan concerning
conversion into state ownership of the property which is in private ownership of citizens and
legal entities (nationalization), their losses shall be compensated in accordance with the
procedure stipulated in Article 266 of this Code.
shall be enforced from the date of its official publication); dated 27.02.2017 № 49-VI (shall
be enforced upon expiry of ten calendar days after the day its first official publication); dated
12.07.2023 №23-VIII (shall be enforced sixty calendar days after the date of its first official
publication);dated 23.12.2023 № 51-VIII (shall be enforced ten calendar days after the date of
Article 250. The Refusal of the Right to Own
A citizen or a legal entity may refuse the right of ownership to the property belonging to
him by announcing this either orally or in writing or by performing other actions (inaction)
that definitely prove his removal from possession, use and disposal of property without the
intention to retain any rights to this property.
The refusal of the right to own must be lawful, voluntary and indicating that the owner
refuses to own, use and dispose the property.
The refusal of the right to own shall be the will of the owner. The state and its bodies shall
have no right to refuse the right of ownership, except for the cases established by law.
The refusal of the right to own shall not entail termination of the owner's rights and
obligations with respect to the relevant property until the acquisition of the ownership right to
the property by another person.
Article 251. Imposition of a Claim on the Assets of an Owner
1. The imposition of a claim upon assets based on the liability of the owner shall be
carried out in a judicial procedure, unless it is otherwise stipulated by the legislative acts of
the Republic of Kazakhstan or the contract.
2. The owner's right to own the assets upon which a claim was imposed shall cease from
the moment of the emergence of the right to own the confiscated assets by the person to
whom the right to own transfers in accordance with the procedure stipulated in the legislation.
2, 1998 № 211; dated 27.02.2017 № 49-VI (shall be enforced upon expiry of ten calendar
Article 252. Cessation of the Right to Own of a Person to whom by Virtue of Legislative Acts the
Assets May not Belong
1. If due to reasons allowed by legislative acts a person came into ownerships of the
articles which may not belong to him by virtue of legislative acts, that property must be
alienated by the owner within one year from the moment of the acquisition of the right of
ownership of that property, unless other period is specified in legislative acts. In a case where
the assets are not alienated by the owner within the indicated deadlines, they, in accordance
with the decision of the court, shall be subject to compulsory alienation with compensation to
the owner for the value of the assets, less the expenditures associated with their alienation.
2. When a citizen or a legal entity owns an object for which special permission is required
, on the grounds allowed by the legislative acts, and its issue to the owner is denied, that
object shall be subject to alienation in accordance with the procedure which is established for
the property which may not belong to that owner.
Article 253. Requisition
1. In cases of natural calamities, accidents, epizootic epidemics, and under any other
circumstances which have an extraordinary nature, property may be requisitioned in the
interests of the society upon the resolution of the state bodies from an owner in accordance
with the procedure and on the conditions established by legislative acts, with the payment to
him of the value of the property (requisition).
2. The evaluation on the basis of which the owner is reimbursed for the value of the
requisitioned property may be challenged by the owner in a judicial procedure.
3. A person whose assets are requisitioned shall have the right to claim through the court
the return to him of the remaining assets, after the cessation of the effect of the circumstances
in relation to which the requisition took place.
publication).
Article 254. Confiscation
In the cases stipulated by the legislative acts of the Republic of Kazakhstan, property may
be confiscated without compensation from the owner in judicial procedure in the form of a
sanction for the commitment of an administrative or criminal offense (confiscation).
Article 255. Cessation of the Right to Own Immovable Property in Relation to the Reservation of
Land and Other Natural Resources
Footnote. The title of the Article 255 is in the wording of the Law of the Republic of
Kazakhstan dated 25.03.2011 № 421-IV(shall be enforced upon expiry of ten calendar days
after its official publication).
1. The termination of the right to own immovable property due to a decision by a state
body which is not directly aimed at the confiscation of property from the owner, including by
the decision to reserve the land plot upon which a house or any structures, installations or
plantations which belong to the owner are located, shall be allowed only in cases in
accordance with the procedure established by the legislative acts, with the granting to the
owner of equally valuable assets and the reimbursement of any other losses incurred, or
refunding to him in full volume the losses inflicted by the termination of the right to own.
2. In the case of a disagreement by the owner with a decision which entails the
termination of his right of ownership, it may not be effected prior to the settlement of the
dispute in a judicial procedure. When a dispute is considered, all the issues associated with
the reimbursement of the owner for the inflicted losses shall be also settled.
3. The rules of this Article shall appropriately apply when the right of ownership of
immovable assets is terminated in connection to the decision of a state body to reserve mining
allotments, parts of the sea bed and any other plots on which assets are located.
publication).
Article 256. Withdrawal of Ownerless Cultural and Historic Assets
Footnote. The title of the Article 256 is in the wording of the Law of the Republic of
Kazakhstan dated 01.03.2011 № 414-IV (shall be enforced upon expiry of ten calendar days
In the cases when an owner of cultural and historic valuables, which in accordance with
legislation are recognized as especially valuable and protected by the State, carelessly keeps
those valuables, and this threatens the loss by them of their significance, such valuables upon
the decision of the court may be confiscated from the owner by the State by way of purchase
or sale through a public auction.
When cultural valuables are purchased, the owner shall be compensated for their value in
an amount established by agreement of the parties, and in the case of a dispute, by the court.
In selling through an auction, the amount received from the sale shall be transferred to the
owner, with subtractions for the auction costs.
publication).
Article 257. The Appraisal of the Assets When Terminating the Right to Own
When terminating the right to own, assets shall be appraised on the basis of their market
value, unless otherwise provided by the laws of the Republic of Kazakhstan.
01.03.2001 № 414- IV (shall be enforced upon expiry of ten calendar days after its official
publication).
Article 258. Cessation of Material Rights which Belong to a Non-owner

Corporeal rights which belong to a non-owner shall terminate in accordance with the rules
established by Articles 249-257 of this Code, and also upon the decision of the owner in
accordance with the procedure established by legislative acts, by the charter of the legal entity
or by agreement of the owner with the holder of the property.
Chapter 15. Protection of the Right to Own and of Other Material Rights Article 259. Recognition
of the Right to Own
An owner shall have the right to claim recognition of his right to own.
Article 260. Owner’s Claim to Return Property from Somebody else’s Illegal Possession
An owner shall have the right to seek the return of his property from somebody's illegal
possession.
Article 261. Claiming from a Bona Fide Buyer
1. When assets are purchased from a person who did not have the right to alienate them,
for a price, and the buyer had no knowledge and should not have had knowledge of this (a
bona fide buyer), then the owner shall have the right to claim that property from the buyer
only in the case where the assets were lost by the owner, or by the person to whom the assets
were transferred by the owner for possession, or if the assets were stolen from one of them, or
went out of their possession in any other way outside their will.
2. If assets are purchased free of charge from a person who did not have the right to
alienate them, the owner shall have the right to claim the assets in any case.
3. Claiming assets on the grounds indicated in paragraph 1 of this Article shall not be
allowed, provided the assets were sold in accordance with the procedure established for the
execution of court decisions.
4. The Law of the Republic of Kazakhstan “On the return of illegally acquired assets to
the state” may establish other grounds for recognizing a person as a bona fide acquirer.
Footnote. Article 261 as amended by Law of the Republic of Kazakhstan dated March 2,
1998 № 211; dated 12.07.2023 №23-VIII (shall be enforced ten calendar days after the date
of its first official publication).
Article 262. Limitation on the Claims of Money and Securities
Money and also bearers' securities may not be claimed from a bona fide buyer.
Article 263. Settlements in Returning Things from Illegal Possession
1. In claiming assets on the basis of Articles 260 and 261 of this Code, the owner shall
also have the right to claim from a mala fides holder the return, or reimbursement, of all the
income which he derived or should have derived during the entire time of possession; while
from the bona fide holder, of all the income which he derived or should have derived from the
time when he learnt of the illegitimacy of his possession and received the subpoena related to
the action of the owner to return the assets. A bona fide holder in his turn shall have the right
to claim from the owner reimbursement of the necessary costs incurred in relation to the
property from the time when income from the property became due to the owner. An mala
fides holder shall have the right to obtain such reimbursement entirely or in part only in the
cases in which the claim of the owner is recognized by the court as substantial.
2. An illegitimate possessor shall have the right to retain the improvements made by him,
if they may be separated without damaging the article. When such separation of
improvements is impossible, the bona fide holder shall have the right to claim reimbursement
of costs incurred for the improvement, but not for more than the amount of the increase in the
value of the object. The male fides holder shall have no such right.
Article 264. Protection of the Right of the Owner from the Violations which are not Related to the
Deprivation of Ownership
An owner may claim the removal of any violation of his right, even though those
violations are not related to deprivation of ownership.
Article 265. Protection of Material Rights of the Person who is not an Owner
The rights which are stipulated in Articles 259 - 264 of this Code shall also belong to a
person who, although he is not the owner, holds the property under the economic
management, operational management, permanent land use or on another basis which is
stipulated in the legislative acts or the agreement. That person shall have the right to protect
his possessions from the owner, as well.
Article 266. Protection of the Interests of the Owner when His Rights are Terminated for Reasons
Stipulated in the Law
In the case of adoption by the Republic of Kazakhstan of legislative acts which terminate
the right to own, the losses inflicted upon the owner as a result of the adoption of those acts
shall be reimbursed to the owner in full volume by the Republic of Kazakhstan.
Article 267. Invalidity of the Acts of the Bodies of Power and of the Officials who Violate the
Rights of an Owner and Other Corporeal Rights
Footnote. The title of Article 267 is in the wording of the Law of the Republic of
1. Where as a result of issuing a regulatory or individual act which does not comply with
legislation, by a public body a local representative or executive body, or by an official person,
the rights of an owner and of any other persons are violated in relation to ownership, use and
dispose of the property which belongs to them, such an act shall be recognized as invalid in a
judicial procedure initiated through the action of the owner or a person whose rights are
violated.
2. When a court passes its decision on a specific case, the acts of the public bodies and of
a local representative or executive body, which contradict the legislative acts shall not be
applicable.
Losses caused to the owner as a result of issuance of these acts shall be compensated in
full by the relevant state body from the funds of the corresponding budget in accordance with
the rules of paragraph 1 of Article 922 of this Code.
Section 3. Law of Obligations

Subsection 1. General Provisions Concerning Obligations
Chapter 16. The Definition and the Grounds for the Emergence of an Obligation
Article 268. Obligation
If due to an obligation, one person (the debtor) shall be obligated to commit for the
benefit of another person (the creditor) a certain action, such as: transfer property, perform
work, pay money, etc., or refrain from a certain action, and the creditor shall have the right to
claim from the debtor to fulfill his obligations. The creditor shall be obliged to accept
fulfillment from the debtor.
The provisions of this subsection apply to obligations, unless otherwise provided for in
the Special Part of this Code.
Article 269. Parties to an Obligation
1. (Is excluded).
2. Several persons may participate simultaneously in an obligation as either of the parties,
the creditor or the debtor. In those cases, a shared, joint or subsidiary obligation shall arise in
accordance with the rules established by this Code (Articles 286 - 288).
The invalidity of the claims of a creditor toward one of the persons who participate in an
obligation on the side of the debtor by itself shall not affect the creditor's claims toward other
such persons, and this is also applicable as to the expiration of the term of the statute of
limitations of the claim toward such a person.
3. If due to an obligation either of the parties has an obligation for the benefit of the other
party, either first party shall be deemed to be a debtor of the other party with regard to what it
is obliged to do to benefit the other, and simultaneously its creditor in what it has the right to
claim from the other.
1998 № 211.
Article 270. Participants of an Obligation
1. Participants in an obligation shall be the parties (debtor and creditor) and third persons.
2. The persons who are bound by obligations or other legal relations with one of the
parties of an obligation shall act as third persons.
3. An obligation shall not create duties for third persons. In the cases stipulated by the
legislation or agreement of the parties, an obligation may give rise to the rights of third
persons in respect of one or both parties to the obligation.
Article 271. The Grounds for the Emergence of Obligations
Obligations shall emerge from an agreement, infliction of damage or on any other grounds
which are stipulated in Article 7 of this Code.
Chapter 17. Execution of an Obligation
Article 272. Proper Execution of an Obligation
Obligation must be fulfilled in a proper manner, in accordance with the conditions of the
obligation and requirements of legislation, and if such conditions and requirements do not
exist, then in accordance with the traditions of business practice or any other requirements
which are usually applicable.
Article 273. Prohibition of a Unilateral Refusal to Execute an Obligation
A unilateral refusal to execute an obligation and a unilateral alteration of its conditions

shall not be allowed, except for the cases stipulated by the legislation or agreement.
Article 274. Execution of an Obligation by Part
A creditor shall have the right not to accept the execution of an obligation by part, unless
it is otherwise provided for by the conditions of the obligation, the legislation, or ensues from
the traditions of business practice or the essence of the obligation.
Article 275. The Execution of an Obligation to the Proper Person

Unless it is otherwise provided for by an agreement of the parties or ensues from the
tradition of business practice, or the essence of the obligation, when an obligation is executed
the debtor shall have the right to claim evidence that the execution is accepted by the creditor
himself or by a person authorized by the creditor, and the debtor shall bear the risk of the
consequences of failure to present such a claim.
Article 276. The Execution of an Obligation by a Third Party
1. The execution of an obligation may be delegated, entirely or in part, to a third party,

provided it is stipulated in legislation or the agreement, and also when the third party is
related to one of the parties through an appropriate agreement.
2. When the obligation of a debtor to execute an obligation personally does not ensue
from legislation, conditions of the obligation or from its essence, the creditor shall be obliged
to accept the execution offered for the debtor by a third party.
3. The third party that bears the risk to lose its right to the property of a debtor (the right
to use, own, mortgage etc.), as a result of the imposition by the creditor of a claim upon that
property, may at its expense satisfy the claim of the creditor without the consent of the debtor.
In that case the rights of the creditor in the obligation shall be transferred to the third party,
and the rules of this Code concerning the assignment of a claim (Articles 339 - 347 of this
Code) shall apply.
Article 277. The Term for the Execution of an Obligation
1. When an obligation stipulates or permits the identification of the date of its execution
or a period of time during which it must be executed, the obligation shall be subject to
execution on that date or appropriately at any moment within that period.
2. In the cases where an obligation does not stipulate the date for its execution and does
not contain any conditions which allow the identification of that date, it must be executed
within a reasonable period after the emergence of the obligation.
An obligation which is not executed within a reasonable term, and equally an obligation
the term for the execution of which is identified as the moment of the claim, must be executed
by the debtor within seven days from the date of the presentation by the creditor of the claim
for its execution, unless the duty to execute by any other date ensues from legislation, the
conditions of the obligation, traditions of business practice or the essence of the obligation.
Article 278. The Requirements of a Regular Execution of an Obligation
The obligations which are intended to be for a long term of execution must be executed
regularly within reasonable periods for suchs of obligations (a day, ten days, a month, a
quarter, etc.), unless it is otherwise stipulated in the legislation, or the conditions of the
obligation, or ensues from the essence of the obligation, or the traditions of business practice.
Article 279. Premature Execution of an Obligation
1. A debtor shall have the right to execute an obligation prior to the deadline, unless it is
otherwise stipulated in legislation or conditions of the obligation or ensues from its essence.
2. A premature execution of obligations related to entrepreneurial activities shall be
allowed only in cases where the possibility of fulfilling the obligation prior to the deadline is
stipulated in legislation, or the conditions of the obligation, or ensues from the tradition of
business practice or the essence of the obligation.
Article 280. Information Concerning the Course of Execution of an Obligation
The legislation or conditions of an obligation may stipulate a duty of the debtor to report
to the creditor upon the course of execution of the obligation.
Article 281. The Place of the Execution of an Obligation
If the place of the execution is not determined by legislation or the conditions of the
obligation, and it does not clearly ensue from the essence of the obligation or traditions of
business practice, the execution must be carried out as follows:
1) an obligation to transfer immovable property, - in the place where the property is
situated;
2) an obligation to transfer goods or other property with the use of transport,- in the place
of transfer of the goods to the first carrier for delivery to the creditor;
3) other obligations of an entrepreneur to transfer goods or other assets,- in the place of
the manufacture or storage of the property, provided that the location is known to the creditor
at the moment of the emergence of the obligation;
4) a monetary obligation - in the place of residence of the creditor at the moment of the
emergence of the obligation, and if the creditor is a legal entity, - in the place where it is
situated at the moment of the emergence of the obligation; if the creditor by the time of the
execution of the obligation changed his place of residence or the place of its location and
notified the debtor of it, - at the new place of residence or location of the creditor, with the
charging of all the costs associated with the change of the place of the execution to his
account;
5) with regard to any other obligations, - in the place of residence of the debtor, and if the
debtor is a legal entity at the place of its location.
1998 № 211.
Article 282. Monetary Obligations
1.By force of money obligation one party (debtor) shall be obliged to pay money to
another party (creditor), and the creditor shall have the right to demand from the debtor the
implementation of his obligations to pay money (money loan and other obligations).
Regulations on money obligations shall be applied to obligations to pay money on
compensation of losses and payment of a penalty as well as obligations resulting from causing
of harm or unjustifiable enrichment, unless another provided by this Code, legislative acts of
the Republic of Kazakhstan or do not result from the subject of obligation.
Monetary obligations in the territory of the Republic of Kazakhstan must be expressed in
the Tenge (Article 127 of this Code), except for the cases specified by legislative acts of the
The use of foreign currency, and also of payment documents in foreign currency when
making payments on obligations in the territory of the Republic of Kazakhstan, shall be
allowed in the cases and on the conditions defined by legislative acts of the Republic of
Kazakhstan or in accordance with the procedure established by them.
The procedure and methods for making payments and transfers shall be established by the
legislation of the Republic of Kazakhstan on payments and payment systems and shall be
determined by the parties in the relevant contract.
2. The amount of payment made, insufficient for performance of the monetary obligation,
in the absence of any other agreement of the parties, primarily repays the debt on the principal
debt and remuneration (interest), principal debt and remuneration (interest) for the current
period, and in the remainder - the penalty and costs of the creditor on receipt of performance.
The specifics of repayment of payments under bank loan agreements or on provision of
microcredit shall be established by the Banking Legislation of the Republic of Kazakhstan or
the Legislation of the Republic of Kazakhstan on microfinance activity.
3. In long term obligations, the indexation of payments on the conditions specified by the
parties may be indicated.
Footnote. Article 282 as amended by the Laws of the Republic of Kazakhstan dated July
11, 1997 № 154; dated July 16, 1999 № 436; dated December 24, 2001 № 276 (shall be
enforced from January 1, 2002); by the Law of the Republic of Kazakhstan dated July 10,
2003 № 483 (shall be enforced from January 1, 2004); dated January 12, 2007 № 225 (shall
be enforced from the date of its official publication); dated 10.02.2011 № 406-IV (shall be
enforced upon expiry of ten day after its first official publication); dated24.11.2015 № 422-V
(the order of enforcement see Art.2); dated 26.07.2016 № 12-VІ (shall be enforced upon
expiry of thirty calendar days after the day its first official publication); dated 03.07.2019 №
262-VІ (shall be enforced from 01.01.2020).
Article 283. Increase of the amounts paid for maintenance of a citizen
The amount paid on the monetary obligation directly for maintenance of a citizen (
compensation for harm caused to life or health, under the contract for life maintenance and
others), increases annually proportionally to the average value of the forecast inflation level.
Article 284. Execution of mutual duties
1. Mutual obligations must be executed by the parties simultaneously, unless otherwise

follows from the legislation of the Republic of Kazakhstan, the contract, good business
practices, the terms of the obligation or its essence.
2. In case of non-execution or improper execution of the obligation by one of the parties,
the second party shall have the right to suspend the performance of its obligation or to refuse
to execute this obligation and demand compensation for losses.
Article 285. Execution of an Alternative Obligation
A debtor who is obliged to commit one of two or of several actions shall have the right to
select among them, unless it otherwise ensues from legislation or conditions of the obligation.
Article 286. Execution of an Obligation in which there are Several Creditors or Several Debtors
When several creditors or several debtors participate in an obligation (obligation with a

number of persons), then either of the creditors shall have the right to claim the execution of
the obligation, and each of the debtors shall be obliged to execute the obligation in a share
equal to others, unless it otherwise ensues from legislation or the conditions of the obligation
(shared obligation).
Article 287. The Execution of a Joint Obligation
1. An obligation with a number of persons, by virtue of which each creditor has the right
to claim, and each debtor is obliged to execute the obligation in full, shall be recognized as a
joint obligation.
A joint obligation or a joint claim shall arise if it is provided for in the agreement or
established by legislative acts, in particular, where the subject of the obligation is indivisible.
2. The duties of several debtors in respect to an obligation associated with entrepreneurial
activity, as well as the claims of several creditors in such an obligation shall be recognized as
joint ones, unless legislation or conditions of the obligation stipulate otherwise.
3. In the case of joint obligation of debtors, the creditor shall have the right to claim the
execution both from all the debtors and from any one of them separately, and in this respect
for full repayment and for part of the debt. The creditor who have not received complete
satisfaction from one of the joint debtors shall have the right to claim the amount in arrears
from the other joint debtors.
The joint debtors shall remain obliged until the obligation is executed in full. The
execution of a joint obligation in full by one of the debtors shall release the other debtors
from their execution to the creditor.
4. When claims are joint, any of the joint creditors shall have the right to present to the
debtor the claim in full volume.
The execution of an obligation in full to one of the joint creditors shall release the debtor
from execution to the other creditors.
5. In the case of a joint obligation, the debtor shall not have the right to make objections
against the claims of the creditor which are based on such relations of the other debtors to the
creditor in which that debtor does not participate.
In the case of joint claims, the debtor shall not have the right to make objections against
the claims of one of the joint creditors, which are based on such relations of the debtor with
another joint creditor, in which that creditor does not participate.
1998 № 211.
Article 288. The Execution of a Subsidiary Obligation
The legislative acts or conditions of an obligation between the creditor and the debtor may
specify that, in the case of a failure by the principal debtor to satisfy the claim of the creditor
to execute the obligation, that claim may be made to the other debtor (a subsidiary debtor)
such part of it as is not executed.
Article 289. Regress Claims
1. A debtor who executed an obligation of another person shall have the right of return
claim (regress) to that person in the amount of the obligation executed.
A debtor who failed to execute an obligation as a consequence of actions of a third party,
shall have the right to claim compensation for the losses from that party.
2. A debtor who executed a joint obligation shall have the right to a return claim against
each of the other debtors in equal shares less the share which is his own share.
The amount unpaid by one co-debtor to the debtor who executed a joint obligation shall
equally fall on that debtor and on the other co-debtors.
The rules of this paragraph shall apply appropriately when a joint obligation is terminated
by offset of a counter claims of one of the debtors.
3. A joint creditor who received execution from a debtor shall be obliged to recompense
the other creditors for the shares which are due to them, unless it otherwise ensues from
relations between them.
Article 290. Certification of the Execution of Obligations
1. Upon the claim of a debtor, a creditor, when accepting an execution, shall be obliged to
issue to him a written confirmation of receipt of the execution in full or in part.
When the debtor issues to the creditor a debt document to certify the obligation, then the
creditor accepting the execution must return that document to the debtor. Where it is
impossible to return, he must indicate that in the receipt which he issues.
The receipt may be substituted by an inscription on the debt document which is returned
to the debtor.
2. The placement of the debt document with the debtor shall certify, unless the contrary is
proven, the termination of the obligation.
3. In the case of the refusal by the creditor to issue a receipt for the execution, to return
the debt document, or to indicate the impossibility of its return in the receipt, the debtor shall
have the right delay execution. In that case the creditor shall be deemed to be delaying.
Article 291. Fulfillment of the obligation to pay the debt
Footnote. Article 291 title in the wording of the Law of the Republic of Kazakhstan dated
02.07.2018 № 166-VI (shall be enforced dated 01.07.2019).
1. A debtor in order to execute obligations shall have the right to place on the terms of
depositing the money he owes, and securities - on the terms of custody in the name of a
notary and in the cases established by legislative acts - in the name of the court, if the
obligation may not be executed by the debtor as a result of the following:
1) absence of the creditor or the person who is authorized by him to accept the execution
in the place where the obligation must be executed;
2) incapacity of the creditor and his not having a representative;
3) obvious lack of certainty as to who the creditor is with regard to the obligation,
particularly, in connection with a dispute about that between the creditor and other persons;
4) evasion by the creditor of acceptance of the execution, or any other delay on his behalf;
The debtor, in fulfillment of obligations, also shall has the right to place the money owed
from him on the terms of a deposit in the name of a notary if the notarized agreement between
the debtor and the creditor provides for placement of money on the deposit of notary as a way
of fulfilling the obligation.
2. The placement of money or securities on the terms of depositing or custody in the name
of notary or a court shall be deemed to be execution of an obligation.
A notary or a court in whose name money or securities are deposited, shall notify the
creditors accordingly.
3. Peculiarities of fulfillment of certain obligations in the securities market, which cannot
be fulfilled due to the grounds specified in paragraph 1 of this article, are established by the
laws of the Republic of Kazakhstan.
Footnote. Article 291 as amended by Law of the Republic of Kazakhstan dated July 11,
1997 № 154; dated March 2, 1998 № 211; dated 02.07.2018 № 166-VI (shall be enforced
dated 01.07.2019); dated 21.01.2019 № 217-VI (shall be enforced upon expiry of ten calendar
days after the day of its first official publication).
Chapter 18. Securing Execution of Obligations

Paragraph 1. General Provisions
Article 292. Methods of Securing the Execution of Obligation
1. Fulfillment of an obligation may be secured by a forfeit, pledge, lien on the debtor's

property, surety, guarantee, advance payment, guarantee fee, security deposit and other
methods provided for by the legislation of the Republic of Kazakhstan or the contract.
Methods of securing the execution of obligations concerning the securities shall be
established by the legislative acts of the Republic of Kazakhstan, regulating the activity in the
security market.
2. The invalidity of an agreement on securing an obligation shall not entail the invalidity
of that obligation (the principal obligation).
3. The invalidity of the principal obligation shall entail the invalidity of the obligation
which secures it.
4. Termination of the main obligation shall entail termination of the obligation securing it,
unless otherwise provided by the legislative acts of the Republic of Kazakhstan.
Footnote. Article 292 as amended by Law of the Republic of Kazakhstan dated
08.07.2005 № 72 (the order of enforcement see Art. 2); dated 25.03.2011 № 421-IV (shall be
enforced upon expiry of ten calendar days after its official publication); dated 24.11.2015 №
422-V (shall be enforced from 01.01.2016); dated 12.07.2022 № 138-VII (shall be enforced
Paragraph 2. Forfeit
Article 293. The Definition of Forfeit
Damages (fine, penalty) shall be recognized as a monetary amount defined by legislation

or agreement, which must be paid by a debtor to the creditor in the case of failure to execute,
or improper execution of an obligation, in particular, in the case of a delay in execution. Upon
the claim to pay the damages, the creditor shall not be obliged to prove losses caused to him.
1998 № 211.
Article 294. The Form of an Agreement on Forfeit

The agreement on damages must be committed in writing, irrespective of the form of the
principal obligation.
Non-compliance with the written form shall entail the nullity of the penalty agreement.
Article 295. Legal Forfeit
1. A creditor shall have the right to claim the payment of damages as determined by
legislation (legal damages), irrespective of whether the obligation for its payment is stipulated
in the agreement of the parties.
2. The amount of the legal damages may be increased by agreement of the parties,
provided legislation does not prohibit it.
Article 296. Amount of Forfeit
The amount of forfeit shall be determined in a fixed monetary amount or in a percentage

of the amount in default or the amount of the improperly executed obligation.
Article 297. Reduction of the amount of penalty
If the penalty (fine, fee) to be paid is excessively large as compared to the losses of the
creditor, the court, at the request of the debtor, shall have the right to reduce the penalty (fine,
fee), considering the degree of fulfillment of the obligation by the debtor and the interests of
the debtor and creditor that deserve attention.
Article 298. The Grounds for Levying Forfeit
Damages shall be levied for failure to execute or for improper execution of an obligation,
when the conditions exist for holding the debtor responsible for violation of the obligation (
Article 359 of this Code).
Paragraph 3. Pledge
Article 299. Definition of Pledge
1. Pledge shall be recognized as a method of securing the execution of an obligation, by

which a creditor (pledge holder) has the right, in the case of failure by the debtor to execute
the obligation secured with the pledge, to receive satisfaction from the value of the pledged
property, in a priority procedure before the other creditors of the person to whom that
property belongs (pledger), with the exceptions established by this Code.
The pledge holder shall have the right to receive on the same principles as satisfaction
from the insurance compensation for the loss or damage to the pledged property, irrespective
of for whose benefit it is insured, unless the loss or damage took place for reasons outside the
control of the pledge holder.
2. The pledge of enterprises, buildings, installations, apartments, rights to land plots and
any other immovable property (mortgage) shall be regulated by the Law of the Republic of
Kazakhstan Concerning Mortgage of Immovables. The general rules concerning pledge,
which are contained in this Code shall apply to mortgage in the cases where the Law of the
Republic of Kazakhstan Concerning Mortgage does not stipulate any other rules.
3. The pledge of the air and sea vessels, vessels of domestic water travel, vessels of river
and sea sailing (mortgage of the vessel) which are subject to state registration, shall be
regulated by the special legislative acts of the Republic of Kazakhstan. The general rules
concerning pledge, which are contained in this Code shall apply to mortgage of the vessel in
the cases where the Law of the Republic of Kazakhstan Concerning Mortgage does not
stipulate any other rules.
The requirements of the part one of this Article shall also extend to the building sea
vessels, vessels of domestic water travel, vessels of river and sea sailing.
2, 1998 № 211; dated January 17, 2002 № 285.
Article 300. The grounds for the emergence of pledge
1. Pledge shall arise by virtue of an agreement. Pledge shall arise also on the basis of
legislative acts when the events indicated therein take place, provided the legislative acts
specify what property is recognized as held under pledge and which obligations are secured.
2. The rules of this Code concerning the pledge, which arises by virtue of an agreement,
shall appropriately apply to a pledge which arises on the basis of legislative acts, unless
legislative acts stipulate otherwise.
Article 301. Subjects of a Pledge
1. Any property including objects and property rights (claims), except for the objects
which are excluded from circulation (paragraph 2 of Article 116 of this Code), claims which
are inseparably associated with the person of the creditor, in particular the claims of alimony,
compensation for harm caused to life or health, and other rights the assignment of which to
any other person is prohibited by legislative acts, may be subject of a pledge.
2. The right to pledge may be applied by agreement to the property which will come into
ownership or under business authority of the pledger in the future.
3. Pledge of certains of property, in particular the property of citizens upon which it is
prohibited to make claims, may be restricted or prohibited by the legislative acts.
4. (is excluded dated January 12, 2007 № 225).
5. (is excluded).
Footnote. Article 301 as amended by the Laws of the Republic of Kazakhstan dated July
11, 1997 № 154; dated March 2, 1998 № 211; dated July 8, 2005 № 72 (the order of
enforcement see Art. 2); dated January 12, 2007 № 225 (shall be enforced from the date of its
Article 302. Claims which are secured by Pledge
1. Unless it is otherwise stipulated by the agreement or legislative acts, the pledge shall
secure a claim in the volume which it has at the moment of the actual satisfaction, including
remuneration (interest), and compensation of losses incurred by delay in the execution,
damages (fine, penalty), the necessary expenses associated with the maintenance of the
pledged property, and also the compensation for the costs associated with the collection.
2. Pledge may be established in respect to the claims which will arise in the future,
provided the parties agree on the amount of such claims, which is secured by the pledge.
11, 1997 № 154
Article 303.s of Pledge
1. Mortgage is a of pledge under which the pledged property remains in the possession
and use of the pledger or a third person.
Enterprises, structures, buildings, installations, apartments in blocks of apartments,
transport vehicles, outer space objects, goods in circulation and other property which is not
excluded from the civil circulation, may be subject to mortgage.
Separable fruits may be subject to mortgage only on the condition that they do not
become subject to rights of any third party from the moment of separation. The mortgage of
enterprises, structures, buildings, installations, apartments in blocks of apartments, transport
vehicles and cosmic objects shall be subject to registration at the bodies which carry out the
registration of such objects.
2. Pawning shall be the of pledge whereby the pledged property is transferred by the
pledger into the possession of the pledge holder.
With the consent of the pledgee, the pledged object may be left with the pledgee under the
pledgee's lock. The object of pledge may be left in the possession of the pledgor with the
application of signs evidencing the pledge (hard pledge).
3. In the pledge of rights, the property rights which may be alienated may be subject to
pledge, and in particular, the leasing rights to enterprises, structures, buildings, installations,
the right to a share in the assets of a business partnership, debt claims, copyright, inventor's
rights and other property rights.
The pledge of the rights to a land plot and also of the rights to other natural resources shall
be allowed within the limits and under the conditions stipulated in the legislation concerning
land and any other natural resources.
A term right may be subject to pledge only prior to the expiry of the term of its validity.
The debtor of a pledged right must be notified of the pledge.
When a pledged right is confirmed by a document, the pledge agreement may be
documented in the form of a transfer of the document which establishes the right.
3-1. In the pledge of the bank deposit, the rights of the depositor according to the bank
deposit agreement shall be pledged. Pledger-depositor shall be obliged to inform bank in
writing about the pledge of the bank deposit, indicating the records of the pledgeholder.
4. Pledge of securities shall be carried out in accordance with the legislation concerning
the Security Market
5. Unless it is otherwise stipulated in the pledge agreement, money which are the pledged
object shall be placed in a bank.
Remuneration (interest) owing on those funds shall belong to the pledger, unless
otherwise specified by the agreement.
Money may be passed to the pledger or another person subject to terms limiting the
opportunity of using the pledged money by that person (keeping in the bank cash box, box of
the safe separate premise for keeping). Non-fulfillment of the terms limiting the opportunity
of using the pledged money by the person shall be the basis for his liability for unjust
enrichment from the moment he received money.
11.07.1997 № 154; dated 08.07.2005 № 72 (the order of enforcement see Art. 2); dated
official publication); № 156-VI dated 24.05.2018 (shall be enforced upon the expiration of
ten calendar days after the date of its first official publication).
Article 304. The Pledge of the Property which is in Common Ownership
The property which constitutes common property may be pledged only with the consent
of all the owners. The right to a share in common property may be an independent subject of
the pledge.
Article 305. A Pledger
1. Both the debtor and a third party may be pledgers.

2. The owner of an entity, or with the consent of the owner, any other person who has in
respect to that entity the right of business authority, may be pledgers, unless it is otherwise
provided for by legislative acts.
3. A person to whom the right to be pledged belongs may be a pledger of the right.
The pledging of the right to lease or any other right to somebody else's object shall not be
allowed without consent of its owner, or of the person who has, in respect to that object the
right of business authority, when legislative acts or an agreement prohibit the alienation of
that right without consent of specified persons.
Article 305-1. Co-pledgee
1. In cases stipulated by the Laws of the Republic of Kazakhstan or agreements, the

subject of the pledge ensuring the fulfillment of the obligation under one loan agreement may
be pledged to several pledgees (co-pledgees) in order to ensure the fulfillment of the
obligations of one debtor to them.
Unless otherwise provided by the Laws of the Republic of Kazakhstan or treaties, each of
the co-pledgee independently exercises the rights and obligations of the pledgee within the
amount of its claims secured by the pledge.
2. Money proceeded from the sale of the subject of the pledge shall be distributed among
co-pledgees who shall be creditors under the main obligation, in proportion to the size of their
claims secured by the pledge, unless otherwise provided by the contract between them.
In the event of collection for the pledge, in the event of its non-realization, the pledge
shall be transferred to the joint property of the owners in proportion to the size of their claims
secured by the pledge, unless otherwise established by the contract between them.
The provisions of this Article shall not apply to subsequent pledge (rescheduling).
Footnote. Paragraph 3 as added by the Article 305-1 in accordance with the Law of the
RK dated 02.01.2021 № 399-VI (shall enter into force upon the expiry of ten calendar days
after the day of the first official publication).
Article 306. Insuring Pledged Assets
1. An agreement or legislative acts may impose upon the pledge holder the obligation to
insure the pledged property transferred to his possession.
Insuring of pledged assets which remain in the use of the pledger shall be imposed upon
the latter.
2. In the case of the occurrence of an insurable event, the right to claim the assets pledged
in accordance with the insurance agreement shall be acquired by the pledger only in the case
of the refusal of the claim by the pledge holder.
When the amount of insurance compensation exceeds the amount of the obligation
secured with the pledge, the pledge holder shall be obliged, within three banking days from
the moment of its receipt, to transfer the difference to the pledger.
Footnote. Article 306 as amended by Law of the Republic of Kazakhstan dated December
18, 2000 № 128.
Article 307. Contents and the Form of the Pledge Assets
1. A pledge agreement must specify the subject of the pledge, the substance, amount or
maximum amount and term of performance of the obligation secured by the pledge. In the
event that the pledged property is real estate, the pledge agreement shall specify its
assessment.
Movable property and (or) certain categories of movable property (including machinery
and inventories) that are the subject of pledge may have a general description of the subject of
pledge without the requirement of a specific description of the pledge and without assessment
of the subject of pledge.
A pledge agreement must also contain an indication of which party has possession of the
pledged property and the admissibility of its use.
The assessment of the pledged property is expressed in tenge and may be determined by
agreement of the parties, unless otherwise stipulated by the laws of the Republic of
Kazakhstan. Valuation of the pledged item securing the obligation in foreign currency is
expressed in tenge and the currency of the obligation at the market exchange rate as of the
date of conclusion of the pledge agreement.
2. A pledge agreement must be concluded in writing.
3. Failure to comply with the rules contained in paragraphs 1 and 2 of this Article shall
entail the nullity of the pledge agreement.
publication); as amended by the Laws of the Republic of Kazakhstan dated 29.12.2014 №
269-V (shall be enforced from 01.01.2015); dated 22.04.2015 № 308-V (shall be enforced
upon expiry of ten calendar days after the day its first official publication); dated 27.02.2017
publication); dated 24.05.2018 № 156-VI (shall be enforced upon expiration of ten calendar
days after the day of its first official publication).
Article 308. Registration of Pledge
1. Pledge of property which is subject to state registration must be registered with the
body which carries out the registration of that property, unless otherwise arises out of this
Code.
Pledge of immovable property which is subject to state registration must be registered
with the body which carries out the registration of immovable property.
2. The change of the subject of pledge, as well as other changes in cases established by
legislative acts of the Republic of Kazakhstan shall be subject to registration.
Changes in the pledge that are not subject to mandatory registration may be registered at
the request of the participants.
3. A record concerning the termination of pledge shall be registered when:
1) registering the termination of pledge on the basis of the application of the pledger in
view of implementation of the basic obligation;
2) levying of execution on the subject of the pledge in the order, established by the
legislative acts of the Republic of Kazakhstan;
3) registering the termination of pledge in view of termination of the pledge agreement;
4) termination of the pledge otherwise, provided by the Article 322 of this Code.
4. A pledger who executed an obligation secured with a pledge shall have the right to
claim the annulment of the note of the pledge from the register. Upon the claim of the pledger
, the pledge holder shall be obliged to present to the body which carries out the registration
the necessary documents and written applications. In the case of failure to execute, or an
untimely execution by the pledge holder of those obligations, the pledger shall have the right
to claim compensation of losses inflicted on him.
VI (shall be enforced upon expiry of ten calendar days after the day its first official
publication).
Article 309. Assets to which the Rights of a Pledge Holder Apply
1. Unless it is otherwise stipulated in the agreement or legislative acts, the rights of the
pledge holder (the right to pledge) in respect to the object which is pledged object, shall apply
to its accessories and inseparable goods.
In the cases stipulated in the contract or legislative acts, the right of pledge may extend to
the separable derived benefits, products and incomes received as a result of the use of the
pledged property, as well as assets acquired and the assets replaced in the future.
If the subject of the pledge is movable property, the right of pledge extends to the
detachable fruits, products and income (including assets acquired in the future and replaced
assets) received as a result of its use, unless otherwise provided by the contract.
In this case, the right of pledge applies to the separated fruits, products and income (
including assets acquired in the future and replaced assets) only to the extent of the claim,
which it does not provide pledged movable property at the time of its actual satisfaction.
2. In the case of mortgage of an enterprise or any other property complex as a whole, the
right of pledge shall apply to all the property, both movable and immovable, including the
right to claim and exclusive rights, including those acquired during the mortgage, unless it is
otherwise stipulated in legislative acts or the agreement.
3. Mortgage of a building or installation shall be allowed only with a simultaneous
mortgage through the same agreement of the land plot on which the building or installation is
located, or of the part of the plot which is functionally related to the mortgaged facility.
29.12.2014 № 269-V (shall be enforced from 01.01.2015); № 156-VI dated 24.05.2018 (shall
be enforced upon the expiration of ten calendar days after the date of its first official
publication).
Article 310. The Emergence of the Right to Pledge
1. Unless it is otherwise stipulated in the pledge agreement, the right to pledge shall arise
in respect to the property, the pledging of which is subject to registration, - from the moment
of the registration of the agreement, and in respect of other property, - from the moment of
the transfer of that property to the pledge holder, and where it is not subject to transfer, from
the moment of concluding the pledge agreement.
2. The right to pledge goods in circulation shall arise in accordance with the rules of
Article 311. Subsequent Pledge (Re-pledge)
1. When pledged property becomes subject to another pledge to secure any other claims (
re-pledge), then the claims of the subsequent pledge holder shall be satisfied from the value of
the pledged object after the satisfaction of the claims of previous pledge holders.
2. Re-pledge shall be allowed unless it is prohibited by the previous pledge agreements.
3. The pledger shall be obliged to communicate to each subsequent pledge holder
information concerning all the existing pledges of that property and he shall be liable for
losses inflicted upon the pledge holders by failure to execute that duty.
March 2, 1998 № 211; dated January 12, 2007 № 225 (shall be enforced from the date of its
Article 312. Maintenance and Safety of Pledged Assets
1. The pledger or the pledge holder, depending on which of them keeps the pledged
property, unless it is otherwise stipulated in legislative acts or the agreement, shall be obliged
as follows:
1) to take measures which are required to ensure the safety of pledged property including
for its protection from encroachments and claims by third persons;
2) immediately notify the other party of the emergence of a threat of losing or damaging
pledged property.
2. The pledge holder and the pledger shall have the right to check against documents and
to verify the physical presence, size, status and conditions of storage of pledged assets which
are kept by the counter party.
3. In case of a gross violation by the pledge holder of the obligations indicated in
paragraph 1 of this Article, which creates the threat of loss or damage to pledged property, the
pledger shall have the right to claim a premature termination of the pledge.
Article 313. The Consequences of a Loss or Damage to Pledged Assets
1. A pledger shall bear the risk of an accidental destruction or damage to pledged assets,
unless it is otherwise stipulated in the pledge agreement.
2. A pledge holder shall be responsible for a full or partial loss or damage of the pledged
object entrusted to him, unless he proves that he may be exempt from the responsibility in
accordance with Article 359 of this Code.
3. A pledge holder shall be responsible for the loss of a pledged object in the amount of its
actual value, and for any damage to it, - in the amount by which that value was reduced,
irrespective of the amount at which the pledged object was evaluated when it was transferred
to the pledge holder.
4. If as a result of damage to a pledged object, it has changed so much that it may not be
used in accordance with its direct designation, the pledger shall have the right to reject it and
to claim compensation for its loss.
5. The agreement may envisage the obligation of the pledge holder to also compensate the
pledger for any other losses inflicted by the loss or damage to the pledged object.
6. A pledger who is the debtor in an obligation secured with pledge shall have the right to
offset a claim of compensation for losses caused by the loss or damage to the pledged object
against the pledge holder, as repayment of the obligation secured with the pledge.
Article 314. Replacement and Restitution of a Pledged Item
1. The replacement of a pledged object shall be allowed with the consent of the pledge
holder, unless legislative acts or the agreement stipulate otherwise.
2. When a pledged object is destroyed or damaged, or the right to own or the right of
business authority of it ceased on the grounds established by legislative acts, the pledger shall
have the right within a reasonable period to restore the pledged object or replace it with any
other equally valued asset.
Article 315. Use and Disposal of Pledged Objects

1. A pledger shall have the right, unless it is otherwise stipulated in the agreement and
does not ensue from the essence of the pledge, to use the pledged object in accordance with
its designation, in particular, to derive produce and income from it.
2. Unless it is otherwise stipulated in legislative acts or the agreement, and does not ensue
from the essence of the pledge, the pledger shall have the right to alienate pledged objects
into ownership, business authority or operational management, to transfer it into lease or
charge-free use to another person, or in any other way dispose of it, only with the approval of
the pledge holder.
The agreement limiting the right of the pledger to bequeath the pledged property shall be
void.
3. A pledge holder shall have the right to use the pledged object entrusted to him, only in
the cases which are stipulated by the agreement, and regularly present to the pledger reports
on its use. In accordance with the agreement, the pledge holder may be entrusted with the
duty to derive fruit and income from the pledged object for the purpose of repaying the
principal obligation or in the interests of the pledger.
Article 316. Protection by a Pledge Holder of His Rights to Pledged Items
1. A pledge holder who held or should have held pledged property, shall have the right to
claim it from anybody else's illegal possession including from the pledger himself.
2. In the cases where, in accordance with the agreement, the pledge holder is granted the
right to use the pledged object entrusted to him, he may claim from other persons, including
from the pledger the elimination of any violations of his right, even though those violations
are not related to deprivation of possession.
Article 317. The Grounds of the Imposition of Claims on Pledged Property
1. Claims on pledged property for the satisfaction of claims of the pledge holder (creditor)
may be imposed in the case of a failure to execute or improper execution by the debtor of the
obligation secured with the pledge for which he is liable.
2. The imposition of a claim on pledged property maybe denied when the violation
committed by the debtor of the obligation which is secured with the pledge, is insignificant,
and the amount of the claim of the pledge holder as a result of that is clearly disproportionate
with the value of the pledged property.
Violation of the obligation secured by the pledge shall be insignificant and the size of the
claims of the pledge holder shall be clearly disproportionate to the value of the pledged
property, with the simultaneous presence of the following conditions:
1) the amount of the unexecuted obligation (excluding the penalty (fine, fee) shall be less
than ten percent of the value of the pledged property determined by the parties in the pledge
agreement;
2) the period for the delay in performance of the obligation secured by the pledge shall be
less than three months.
Violation of the obligation secured on mortgage loans secured by housing of an individual
and not related to entrepreneurial activity is insignificant the size of the claims of the pledge
holder is clearly disproportionate to the value of the pledged property, with the simultaneous
presence of the following conditions:
1) the amount of the unexecuted obligation (excluding the penalty (fine, fee) shall be less
than fifteen percent of the value of the pledged property determined by the parties in the
pledge agreement;
2) the period for the delay in performance of the obligation secured by the pledge shall be
less than six months.
official publication); dated 31.12.2021 № 100 (shall be enforced upon expiry of ten calendar
Article 318. The Procedure for the Imposition of Claims on Pledged Items
1. Satisfaction of a claim of a pledger out of the value of pledged property shall be carried
out in accordance with the judicial procedure, unless it is otherwise stipulated in this Code or
other legislative acts or the agreement.
2. In cases stipulated by the Pledge Agreement, as well as the present Code and other
legislative acts, the Pledgee shall be entitled to independently dispose of the property pledged
as collateral out of court by holding auctions (auctions). The same right shall be vested in the
pledgee bank for the sale of the pledged object, securing the monetary loan. Extrajudicial sale
of pledged immovable property is not allowed in cases stipulated by the legislative act of the
Republic of Kazakhstan on mortgage of immovable property.
Peculiarities of foreclosure on the subject of pledge, which is a security for the loan within
the framework of measures to ensure the stability of the financial system, are established by
publication); dated 02.07.2018 № 168-VI (for the procedure of implementation, see Art. 2).
Article 319. Sale of Pledged Property

1. The sale of pledged property upon which in accordance with Article 20 of this Code a
claim is imposed, shall be carried out by way of selling through public auctions in accordance
with the procedure which is established by the procedural legislation, unless legislative acts
stipulate any other procedure.
1-1. In the pledge of money and rights (requirements) on the money liabilities, the selling
of that pledged property shall be conducted by way of transferring of money to the pledge
holder, which is the subject of the pledge or which is owed to the pledged rights (
requirements) for the money liabilities, and when the transfer of money at the moment of
levying of execution for the subject of pledge is impossible - by way of transferring to the
pledge holder of the right of the pledger for the subject of pledge.
If a sum of money, which is the subject of the pledge or which is owed to the pledged
rights (requirements) for the money liabilities, exceeds the size of the requirement of the
pledge holder secured by pledge, the margin shall be returned to the pledger. If a sum of
money is insufficient to cover the requirements of the pledger, he shall have the right, in the
absence of another instruction in the legislative acts or in the agreement, to take the deficit
from the other property of the debtor, without using the advantage, based on the pledge.
2. The peculiarities of extrajudicial sale of pledged property are established by the present
Code and the Law on Mortgages of Real Estate. Rules and procedures established by the Law
on Real Estate Mortgage for the purpose of selling mortgages shall apply to the sale of
property in the course of the execution of other types of pledge, unless otherwise stipulated by
this Code.
3. Upon the request of the pledger, the court shall have the right to postpone the same in
the public auction in the decision on foreclosure on the pledged property, for a period of up to
one year for the pledged property of individuals and for a period of up to one month for the
pledged property of legal entities. The postponement shall not affect the rights and obligations
of the parties to the obligation secured by the pledge of this property, and shall not release the
debtor from reimbursement of the losses of the creditor that have increased during the
postponement and the penalty amounts.
4. Unless otherwise provided by the legislative acts of the Republic of Kazakhstan, any
legal entities and citizens, including the mortgagor and pledge holder, shall have the right to
participate in the auction.
Prior to the beginning of the auction, the court or any nominated person (Article 320 of
this Code) shall have the right to require the payment of a guarantee contribution from each of
the participants in the auction. The guarantee contributions shall be subject to refund after the
auction. A guarantee contribution by a participant who won the auction shall be included in
the amount of the final price. A guarantee contribution of a participant who won the auction
but who did not pay the final price shall not be refunded and it shall remain at the disposal of
the court or the nominated person.
5. When a tender is declared unsuccessful due to the participation of less than two buyers,
the mortgagee is entitled to either turn the pledged property into its ownership at its current
appraised value established by a court decision or by a trustee on the basis of the appraisal
report prepared by the appraiser, or demand the appointment of new tenders.
6. When the amount which is received from selling pledged property is insufficient to
cover the claims of the pledge holder, he shall have the right, in the absence of another
indication in the legislative acts or agreement, to receive the amount of arrears from other
property of the debtor without using the advantages based on the pledge.
When the amount received in selling pledged property exceeds the amount of the claim of
the pledge holder, secured with the pledge, the difference shall be returned to the pledger.
7. The debtor and the pledger who is a third party (collateral guarantor) shall have the
right at any time before the sale of the subject of the pledge to terminate the foreclosure and
its implementation, having executed the obligation secured by the pledge or that part thereof
whose execution is overdue. An agreement restricting this right shall be void.
08.11.2000 № 96, dated 12.01.2007 № 225 (shall be enforced from the day of its official
publication), dated 25.03.2011 № 421-IV (shall be enforced upon expiry of ten calendar days
after its first official publication); dated 07.03.2014 № 177-V (shall be enforced upon expiry
of ten calendar days after the day its first official publication); dated 27.02.2017 № 49-VI (
shall be enforced upon expiry of ten calendar days after the day its first official publication);
dated 10.01.2018 № 134-VI (shall be enforced upon the expiration of six months after the
date of its first official publication); dated 02.07.2018 № 168-VI (shall be enforced upon the
expiration of ten calendar days after the date of its first official publication); dated 31.12.2021
№ 100 (shall be enforced upon expiry of ten calendar days after the day its first official
publication).
Article 320. Sale of the Pledged Property in a Compulsory Non-judicial Procedure
1. When disposing a pledged property in a compulsory non-judicial procedure, the auction

shall be carried out by the nominated person, who may be a legal entity or a citizen who has
the power of attorney from the pledge holder, to sell the pledged property in the case of
violation of the obligation secured with the pledge.
2. The nominated person shall carry out the following procedure:
1) compile notification to the pledger of the non-execution of the obligations and register
it at the body where the pledge agreement was registered;
2) in the case where the claims which ensue from the notice are not satisfied, but not
earlier than two months after the moment of its dispatch to the pledger, compile the notice of
auction of the pledged property, register it with the body where the pledge agreement was
registered, and hand it to pledger;
3) officially publish the announcement of the auction in the local press.
publication).
Article 321. Premature Execution of an Obligation which is Secured with the Pledge and the
Imposition of a Claim upon the Pledged Property
1. A pledge holder shall have the right to claim a premature execution of obligations
secured with pledge in the following cases:
1) when the pledged object went out of possession of the pledger with whom it was left
not in accordance with the provisions of the pledge agreement;
2) violation by the pledger of the rules for the replacement of pledged property (Article
314 of this Code);
3) the loss of the pledged object under the circumstances for which the pledge holder is
not responsible (paragraph 2 of Article 313 of this Code), unless the pledger exercises the
right stipulated in paragraph 2 of Article 314 of this Code.
4) addressing the levy concerning the pledge in order to fulfill obligations of the pledger
on enforcement documents to the third persons, not having advantages in the requirements of
the pledge holder, if the pledger hasn’t any other property.
2. A pledge holder shall have the right to claim a premature execution of the obligation
secured with pledge, and if his claim is not satisfied, to impose the claim upon the pledged
object in the following cases:
1) violation by the pledger of the rules concerning subsequent pledge;
2) non-execution by the pledger of the obligations stipulated in sub-paragraphs 1 and 2 of
paragraph 1 and paragraph 2 of Article 312 of this Code;
3) violation by the pledger of the rules for disposal of pledged property (paragraph 2 of
4) violation by the pledger of the obligation secured by a pledge (Articles 317, 720 and
722 of this Code, Article 20 of the Law of the Republic of Kazakhstan dated December 23,
1995 "On immovable property mortgage").
02.04.2010 № 262-IV (shall be enforced from 21.10.2010); dated 17.07.2015 № 333-V (shall
be enforced upon expiry of ten calendar days after the day its first official publication).
Article 322. Cessation of Pledge
1. Pledge shall cease as follows:

1) with the cessation of the obligation secured with pledge;
2) upon the claim of the pledger, where the grounds exist which are stipulated in
paragraph 3 of Article 312 of this Code;
3) in the case of destruction of a pledged object or cessation of the pledged right, unless
the pledger failed to exercise the right stipulated in paragraph 2 of Article 314 of this Code;
4) in the case of selling pledged property through a public auction and also in the event
that its sale turned out to be impossible (Article 319 of this Code).
2. A note must be made on the cessation of pledge in the register in which the pledge
agreement was registered.
3. In cessation of pledge as a result of the execution of the obligation secured with the
pledge, or by demand of the pledger (paragraph 3 of Article 312 of this Code), the pledge
holder who holds pledged property shall be obliged to immediately return it to the pledger.
Article 323. Preservation of Pledge in the Transfer of the Right to Pledged Property to Another
Property in the Procedure of Legal Successorship
1. In the case of a transfer of the right to own pledged property or the economic
management over it, from the pledger to any other person as result of a chargeable or
charge-free alienation of that property, or in the procedure of the universal legal successorship
, the right of pledge shall remain valid.
The legal successor of a pledger shall take the place of the pledger, and he shall bear all
the obligations of the pledger, unless the agreement with the pledge holder stipulates
otherwise.
2. When the assets of a pledger, which are the pledged objects are transferred in
accordance with the procedure of legal successorship to several persons, then each of the
legal successors (acquirers of the property) shall bear the consequences of non-execution of
the obligation secured with pledge, which ensue from the pledge in proportion to the part of
the property which was acquired by him. However, where a pledged object is indivisible or
for any other reasons remains in common joint ownership of legal successors, they shall
become joint pledgers.
Article 324. The Consequences of Compulsory Withdrawal of Pledged Property
1. When the pledger's right to own the property which is the pledged property ceases upon
the grounds and in accordance with the procedure stipulated in legislative acts, as a result of
withdrawal (purchase) for state needs, requisition or nationalization, and the pledger is
granted other property or appropriate compensation, the right to pledge shall apply to the
property granted instead, or where appropriate, the pledge holder shall acquire the right of
priority satisfaction of his claims out of the amount of the remuneration which is due to the
pledger. A pledge holder may also require premature execution of the obligation which is
secured with pledge (paragraph 1 of Article 321 of this Code).
2. In cases when the property being the subject of the pledge shall be withdrawn from the
pledger in accordance with the procedure established by legislative acts on the grounds that in
reality the owner of this property is another person or as a sanction for committing an
administrative or criminal offense, a pledge in respect of this property shall be terminated. In
these cases, the pledge holder shall have the right to demand early performance of the
obligation secured by the pledge.
Article 325. Assignment of Rights in a Pledge Agreement
1. A pledge holder shall have the right to assign his rights in a pledge agreement to
another person, in compliance with the rules for conveyance of rights of a creditor by way of
assigning a claim (Articles 339 - 347 of this Code).
2. The assignment by a pledge holder of his rights in a pledge agreement to any other
person shall be valid, provided the rights to claim the principal obligations secured with the
pledge, from the debtor, are assigned to the same person.
3. (Is excluded)
2, 1998 № 211.
Article 326. Transfer of Debt in an Obligation Secured with Pledge
Pledge shall terminate with the transfer to another person of the debt under an obligation
secured with pledge, if the pledger have not given his approval to the creditor to be liable for
the new debtor.
Article 327. Pledge of Goods in Circulation
1. A pledge of goods in circulation shall be the pledge of goods with their leaving at the
pledger and granting the right to the pledger to change composition and natural form of the
pledged property (commodity stocks, raw materials, materials, semi-finished products,
finished products, etc.).
2. The goods in circulation which are alienated by the pledger shall cease to be subject to
pledge from the moment of their transfer into the ownership, business authority or operational
management of the buyer, while the goods purchased by the pledger, which are indicated in
the pledge agreement shall become the pledged object from the moment of the acquisition by
the pledger of the right of ownership or business authority over them.
3. By agreement of the parties, the pledge agreement may stipulate that the total value of
the pledge of goods in circulation shall not become less than the value specified in the pledge
agreement.
Reduction of the value of pledged goods in circulation shall be allowed in proportion to
the part of the obligation secured by the pledge, unless otherwise stipulated by the agreement.
4. In case of violation by the pledgor of the terms of pledge of goods in circulation, the
pledgee shall have the right to suspend operations with pledged goods by imposing its signs
until the violation is eliminated.
official publication); dated 24.05.2018 № 156-VI (shall be enforced upon the expiration of
ten calendar days after the day of its first official publication); dated 02.04.2019 № 241-VI (
shall be enforced upon the expiration of ten calendar days after the day of its first official
publication).
Article 328. Pledging items in a pawnshop
1. Acceptance from citizens of movable assets which are intended for personal use to
secure short-term loans, may be carried out as an entrepreneurial activity by the legal entities,
registered as the pawnshops, whose activity shall be regulated by the legislation of the
Republic of Kazakhstan on microfinance activity.
2. An agreement on pledging objects in a pawnshop shall be documented through the
pawnshop's issuing a pledge ticket and may contain the requirement to insure the pledged
assets, as well as the consent of the pledgor to the extrajudicial sale of the subject of pledge.
The insurance of the pledged assets shall be carried out at the expense of the pawnshop.
2-1. An agreement on pledging objects in a pawnshop shall be terminated due to the sale
of the subject of pledge or transfer of such property to the ownership of the mortgagee.
Upon sale of the pledged asset, as well as transfer of such asset into the ownership of the
pledgee, simultaneously with termination of agreement on pledging objects in pawnshop, the
obligation of the borrower, who is also the pledger, and agreement on provision of
microcredit shall be terminated.
The sale of the subject of the pledge, as well as the transfer of such property to the
property of the mortgagee under the agreement on the pledge of things in the pawnshop,
concluded to secure the execution of the microcredit agreement, with the exception of
property, the pledge of which is subject to compulsory registration, can be made without
bidding no earlier than one month after the expiration of the term of repayment of the
microcredit, provided that there is such a condition in the agreement on the pledge of things
in the pawnshop.
The implementation of the subject of the pledge subject to compulsory registration shall
be carried out by public bidding no earlier than one month after the expiration of the term of
repayment of the microcredit. In case of non-fulfillment of the pledge subject to compulsory
registration at public bidding within sixty calendar days from the date of the beginning of
bidding, the pledge subject is transferred to the ownership of the pawn shop.
The sale of the subject of the pledge, as well as the transfer of such property to the
property of the pledgee under the agreement on the pledge of things in a pawnshop concluded
in order to ensure the execution of the agreement on the provision of microcredit, shall not be
allowed during the period of consideration by the pledgee of the borrower's appeal for the
settlement of debts in the order established by the Law of the Republic of Kazakhstan "On
microfinance activities".
3. A pawnshop shall not have the right to use and dispose of pledged objects.
4. The pawnshop shall bear responsibility for loss and damage to pledged objects, unless
it proves that the loss or damage occurred as a result of force majeure.
5. Excluded by the Law of the Republic of Kazakhstan dated 03.07.2019 № 262-VІ (shall
be enforced from 01.01.2020).
6. The provisions of an agreement to pledge objects in a pawnshop, which restrict the
rights of the pledger as compared to the rights which are granted to him by this Code and the
appropriate legislative act, shall be invalid from the moment of the conclusion of the
agreement. Relevant provisions of this ?ode shall apply instead of such conditions.
7. Excluded by the Law of the Republic of Kazakhstan dated 03.07.2019 № 262-VІ (shall
March 2, 1998 № 211; dated March 2, 2001 № 162; is in the wording- dated December 23,
2005 № 107 (the order of enforcement see Art. 2 of the Law № 107); dated 02.08.2015 №
343-V (shall be enforced from 01.04.2016); № 217-VI dated 21.01.2019 (shall be enforce
upon expiration of ten calendar days after the day of its first official publication); dated
03.07.2019 № 262-VІ (shall be enforced from 01.01.2020); dated 02.01.2021 № 399-VI (
shall enter into force from 01.01.2021); dated 24.05.2021 № 43-VII (shall enter into force
from 01.10.2021).
Paragraph 4. Guarantees and Sureties
Footnote. Paragraph 4 is in the wording of the Law of the Republic of Kazakhstan dated
July 11, 1997 № 154.
Article 329. Guarantee
1. By virtue of a guarantee the guarantor shall become liable to the creditor of another
person (debtor) severally in full or in part for the execution of obligations of that person,
except for the cases provided for by legislative acts.
2. Persons who jointly issued a guarantee shall be liable to the creditor severally, unless it
is otherwise stipulated in the guarantee agreement.
3. A guarantee agreement may be entered into also in order to secure an obligation which
will emerge in the future.
Article 330. Surety

By virtue of a surety, the holder of the surety assumes the obligation before the creditor of
any other person (debtor) to be liable severally for the execution of that person's obligation in
full or in part.
Article 331. Grounds and Forms of Guarantees and Sureties
1. A guarantee and a surety shall arise on the basis of surety or guarantee agreements.
Application of guarantees may be established by legislation.
2. Guarantee or surety agreements must be concluded in writing. Failure to comply with
the written form shall entail the nullity of the guarantee or surety agreement.
3. The written form of guarantee or surety agreements shall be deemed to be complied
with, provided the guarantor or surety notified in writing the creditor of his liability for the
execution of the obligation by the debtor, and the creditor did not refuse the proposal of the
guarantor or surety during the period of time which is reasonably required for such a refusal.
4. Second-tier banks may carry out issuing of banking guarantees and sureties on the basis
of the licenses from the authorized body in accordance with the rules of this Code and subject
to the requirements of the regulatory legal acts of the authorized body which regulate the
procedure for conducting specified transactions.
Issuing of bank guarantees and by the second-tier banks without observing the regulations
of this Code and without incorporating the requirements of the normative legal acts of the
authorized body shall entail their invalidity.
Footnote. As amended by the Laws of the Republic of Kazakhstan dated March 2, 2001
№ 162, dated July 10, 2003 № 483 (shall be enforced from January 1, 2004), dated January
12, 2007 № 225 (shall be enforced from the day of its official publication); dated 27.02.2017
publication).
Article 332. Liabilities of Guarantors and Sureties
1. Unless it is otherwise established by the agreement, a guarantee or a surety shall secure

only valid claims. A guarantor and a surety shall not be released from their liability if they
assumed the liability for a debtor whose incompetence had been previously been known to
them, while the creditor had no knowledge of that circumstance.
2. The guarantor shall be liable to the creditor within the same volume as the debtor,
including payment of damages, remuneration (interest), court expenses associated with the
levying of the debt and other costs of the creditor incurred by the failure to execute the
obligation or its improper execution by the debtor, unless it is otherwise established in the
guarantee agreement.
3. The surety shall be liable before the creditor within the amount as indicated in the
surety agreement, unless it is otherwise stipulated by its terms. Prior to presenting any claims
to the surety who bears several liability, the creditor shall take reasonable measures to make
the debtor satisfy this claim, particularly by offsetting a counter claim and by imposing claims
upon the debtors property in accordance with the established procedure.
Article 333. The Rights and Obligations of a Guarantor in the event that the Creditor Files a Claim
against Him
1. A guarantor, prior to satisfying a creditors claim, shall be obliged to notify the debtor of
it, and in the event that an action is filed against the guarantor, he shall hold the debtor as a
party to the action. If contrary is the case, the debtor shall have the right to present all
objections, which he had against the creditor, against the guarantors recourse.
2. A guarantor shall have the right to make objections against the creditor's claims which
may be presented by the debtor, unless it otherwise ensues from the guarantee agreement. The
guarantor shall not lose the right to those objections even in the case where the debtor refused
them, or recognized his debt.
Article 334. The Rights of a Guarantor and a Surety Who Executed Obligations
1. The guarantor who executed the obligation shall acquire all the rights of the creditor
under that obligation, and the rights which belonged to the creditor as pledge holder, in the
amount in which the guarantor satisfied the claims of the creditor. The guarantor shall also
have the right to claim from the debtor the payment of damages and interest (remuneration) in
the amount paid to the creditor, and reimbursement of other losses incurred in connection
with the liability for the debtor.
2. In the execution by the guarantor of an obligation, the creditor shall be obliged to hand
to the guarantor the documents which certify the claim against the debtor and to convey the
rights which provide for that claim.
3. The rules which are established in paragraphs 1 and 2 of this Article shall apply, unless
it is otherwise stipulated by legislation, or in the agreement of the guarantor with the debtor or
ensues from the relations between them.
4. A surety shall acquire the same rights in the part as he executed the obligation of the
debtor to the creditor.
Article 335. Notice to the Guarantors and Surety on the Execution of an Obligation by the Debtor
A debtor who executed an obligation secured with a guarantee or a surety shall be obliged
to immediately notify the guarantor or the surety of that. If the contrary is the case, the
guarantor or the surety, who in their turn executed the obligation, shall have the right to claim
from creditor what he received undeservedly, or to file a regress claim against the debtor. If
the latter is the case, the debtor shall have the right to claim from the creditor only the amount
which was received undeservedly.
Article 336. Termination of a Guarantee and Suretyship
1. Guarantee and surety shall be terminated with the termination of the obligation secured
by it, unless the agreement provides for other cases of termination of the guarantee, as well as
in the event of a change in this obligation entailing an increase in liability or other adverse
consequences for the guardian and the guarantor, without the consent of the latter.
2. A guarantee and a surety shall terminate upon transferring to another person the debt
secured by the guarantee or surety, unless the guarantor or surety have given to the creditor
their consent to be liable for the new debtor.
3. A guarantee and a surety shall terminate if upon the date of execution of the obligation
secured by it, the creditor has declined to accept a proper execution as offered by the debtor,
or the guarantor, and surety.
4. A guarantee and a surety shall terminate upon expiry of their effective term for which
they were issued, as indicated in the guarantee or surety agreement. If such term is not
specified, they shall terminate, unless the creditor files a claim against the guarantor or surety
within one year from the date of execution of an obligation secured by the guarantee or surety
. Where the term for the execution of the principal obligation is not indicated nor may it be
defined, or where it is defined as the moment of calling, the guarantee or the surety shall
terminate, unless the creditor files an action against the guarantor or surety within two years
from the date of entering into the guarantee or surety agreement, unless it is otherwise
stipulated in legislative acts.
Paragraph 5. Advance Payment
Article 337. The Definition of Advanced Payment. The Form of the Advance Payment Agreement
1. A sum of money which is issued by one of the parties to an agreement, at the expense
of the payments, which are due by it in accordance with the agreement, to the other party and
in order to secure the conclusion and the execution of the agreement, shall be recognized as
an advance payment.
2. A deposit agreement, regardless of the deposit amount, must be concluded in writing.
This rule applies also in the case when the main obligation must be notarized.
Non-compliance with the written form shall entail the nullity of the deposit agreement.
Article 338. The Consequences of the Termination and the Failure to Execute an Obligation
Secured with an Advance Payment
1. In terminating an obligation prior to the beginning of its execution, by agreement of the

parties, or as a consequence of impossibility to execute it, which emerged without their guilt,
the advance payment must be returned.
2. When the failure to execute an obligation is the responsibility of a party which issued
the advance payment, it shall remain with the other party, and if the party which received the
advance payment is the guilty party, it shall be obliged to pay to the other party a double
amount of the advance payment. Moreover, the party which is responsible for the failure to
execute the obligation shall be obliged to compensate to the other party the losses, taking into
account the amount of the advance payment, unless it is otherwise stipulated in the agreement
.
Paragraph 6. Withholding
Footnote. The Code is supplemented with the paragraph 6 by the Law of the Republic of
Kazakhstan dated January 12, 2007 № 225 (shall be enforced from the date of its official
publication).
Article 338-1. General Provision on Withholding
1. On default by the debtor of the obligations in time or of reimbursement of costs

connected with it to the creditor, a creditor, who have an object, which is subject to transfer to
the debtor or the person, indicated by the debtor, shall have the right to withhold it, until
appropriate obligation would not be discharged.
The requirements, which are not related to the payment of the object or to the
reimbursement of its costs and of other losses, but which are originated from the obligation,
which parties act as the entrepreneurs, may be provided by the withholding.
2. A creditor may withhold an object, which is in his possession, whereas after that the
object got possession of the creditor that the right to it had been obtained by the third person.
3. The rules of this Article shall be applied, unless otherwise provided by the agreement.
Article 338-2. Satisfaction of Requirements at the expense of Withholding Property
The requirements of the creditor withholding an object, shall be satisfied from its cost in
the value and the order, provided for the satisfaction of requirements secured by pledge.
Paragraph 7. Guarantee Fee
Footnote. Chapter 18 is supplemented with the paragraph 7 by the Law of the Republic of
Article 338-3. Notion of the Guarantee Fee
1. Sum of money transferring by the payer of the guarantee fee to the recipient of the
guarantee fee as a security of satisfaction of the agreement obligations during deal-making
process or conducting another obligation, shall be recognized as the guarantee fee.
2. Obligation to pay for the guarantee fee shall arise in the cases provided by the
legislative acts. Obligation to pay for the guarantee fee shall also arises by virtue of
agreement of the parties.
Article 338-4. Consequences of Nonfulfillment, Termination or Fulfillment of an Obligation

Secured by the Guarantee Fee
1. On default of obligation secured by the guarantee fee due to the fault of the payer of the
guarantee fee, the fee shall fall to another party.
2. On default of obligation secured by the guarantee fee due to the fault of recipient of
guarantee fee or in case of termination of such obligation upon mutual agreement of the
parties or by virtue of impossibility of fulfillment, the guarantee fee occurred without their
fault shall be repayable.
3. When concluding an agreement or fulfilling another obligation, secured by the
guarantee fee, the sum of the guarantee fee shall be deemed to have been received on account
of fee, which is owed to the recipient of guarantee fee from another party by the concluded
agreement or another obligation secured by the guarantee fee, unless otherwise provided by
this Code, by another legislative acts, by the agreement of the parties or unless the subject of
the obligation otherwise requires.
Section 8. Security deposit
Footnote. Chapter 18 shall be supplemented by paragraph 8 in accordance with the Law

of the Republic of Kazakhstan dated 12.07.2022 № 138-VII (shall be enforced sixty calendar
days after the date of its first official publication).
Article 338-5. The concept of a security deposit
A monetary obligation, including the obligation to compensate for losses or pay a penalty
in the event of a breach of the contract, by consent of the parties can be secured by transfer of
one of the parties to the ownership of the other party of a certain amount of money (security
deposit).
The security deposit may secure an obligation that will arise in the future.
Article 338-6. Fulfillment of an obligation by a security deposit
1. Upon occurrence of the circumstances stipulated by the contract, the security deposit
amount shall be credited against fulfillment of the relevant obligation.
2. If the circumstances referred to in paragraph 1 of this article do not occur within the
time stipulated by the contract, or if the secured obligation is terminated, the security deposit
shall be returned to the ownership of the person who had previously provided the security fee,
unless otherwise provided by the contract.
3. The contract may provide for the obligation of the respective party to additionally pay
or partially return the security deposit upon occurrence of certain circumstances.
4. No remuneration (interest) shall be charged on the security deposit amount, unless
otherwise provided by the laws of the Republic of Kazakhstan or the contract.
5. The rules on the security deposit shall also apply in cases where securities, other
financial instruments and (or) things defined by generic characteristics are transferred into
ownership against security.
Chapter 19. Replacing Persons in An Obligation
Article 339. The Grounds and Procedure for the Conveyance of the Rights of the Creditor to Any
Other Person
1. Any right (claim) which belongs to the creditor on the basis of an obligation may be
transferred by him to another person in a transaction (assignment of the claim) or transferred
to any other person on the basis of a legislative act.
The rules for the conveyance of creditors rights to any other persons shall not apply to
regress claims.
2. For the conveyance to any other person of the rights of a creditor, the consent of the
debtor shall not be required, unless it is otherwise stipulated in legislative acts or the
agreement.
3. If a debtor is not notified in writing of the conveyance of the creditor's rights to another
person, which took place, the new creditor shall bear the risk of negative consequences for
him caused by that. In that case, the execution of the obligation to the initial creditor shall be
recognized as the execution to the proper creditor.
4. Special considerations in the re-assignment of the right to claim under certains of
obligations may be established by legislative acts.
Footnote. Article 339 is supplemented with paragraph 4 by the Law of the Republic of
Kazakhstan dated March 2, 1998 № 211.
Article 340. The Rights Which may not be Transferred to Any Other Person
Transfer of the rights to another person, which are inseparably associated with the person
of a creditor, in particular, the claims of alimony and of compensation of damage caused to
life or health, shall not be permitted.
Article 341. The Volume of the Rights of the Creditors which are Transferred to Another Person
Unless it is otherwise stipulated in legislative or the agreement, the right of the initial
creditor shall be transferred to the new creditor in the same volume and on the same terms
which existed at the moment of the conveyance of the right. In particular, the rights shall be
conveyed to the new creditor, which secure the execution of the obligation, and also any other
rights which are related to the right to claim, including the right to remuneration (interest) not
received.
11, 1997 № 154.
Article 342. Proofs of the Rights of a New Creditor
1. A debtor shall have the right not to execute obligations to the new creditor until he is
presented with the proofs of the transfer of the claim to that person.
2. A creditor who assigned a claim to any other person shall be obliged to transfer to him
the documents which certify the right to that claim and to communicate the information which
has significance for the exercise of the claim.
Article 343. Objections of the Debtor Against the Claims of a New Creditor
A debtor shall have the right to put forward against the claims of the new creditor, the
objections which he had against the initial creditor prior to the moment of receipt of the notice
of conveyance of the rights associated with the obligation to the new creditor.
Article 344. The Transfer of the Rights of a Creditor to Another Person on the basis of Legislative
Acts
The rights of a creditor under an obligation shall be transferred to another person on the
basis of legislative acts, and when the circumstances take place which are indicated follows:
1) as a result of the universal legal successorship in the rights of the creditor;
2) upon decision of the court on the transfer of the rights of the creditor to another person
where the possibility of such transfer is stipulated in legislative acts;
3) consequential to execution of an obligation by its guarantor, surety or pledger, who is
not a debtor, with regard to that obligation;
4) in the subrogation to the insurer of the rights of the creditor to the debtor who is guilty
for the occurrence of the insurable event.
5) in other cases stipulated in legislative acts.
2, 1998 № 211.
Article 345. The Terms for Assignment of a Claim

1. Assignment of a claim by a creditor to another person shall be allowed, unless it
contradicts legislation or the agreement.
2. It shall not be allowed to assign claims under an obligation in which the person of the
creditor is important for the debtor, without the approval of the debtor.
Article 346. The Form of Assignment of a Claim
1. Assignment of a claim which is based on a transaction committed in a written (simple

or notarized) form, must be committed in appropriate written form.
2. The assignment of a claim associated with a transaction which requires the state
registration, must be registered in accordance with the procedure stipulated for the registration
of that transaction.
3. The assignment of a claim associated with an order security shall be committed by way
of a note on that security (paragraph 3 of Article 132 of this Code).
Article 347. The Responsibility of a Creditor Who Assigned a Claim
The initial creditor who assigned a claim shall be liable to the new creditor for the
invalidity of the claim transferred to him, but he shall not be liable for the non-execution of
that claim by the debtor, except for the case where the initial creditor assumed upon himself
the surety of the debtor before the new creditor, as well as, unless otherwise provided by this
Code or by the agreement.
Footnote. Article 347 as amended by the Law of the Republic of Kazakhstan dated June 3,
2003 № 426.
Article 348. Transfer of a Debt
1. The transfer by a debtor of his debt to another person shall be allowed only with the
consent of the creditor.
2. A new debtor shall have the right to make objections against the claims of the creditor,
which are based on the relations between the creditor and the initial debtor.
3. The rules which are contained in paragraphs 1 and 2 of Article 346 of this Code shall
accordingly apply to the form of the transfer of the debt.
4. Special considerations in the transfer of debts under certains of obligations may be
Footnote. Article 348 is supplemented with the paragraph 4 by the Law of the Republic of
Chapter 20. The Liability for Violation of an Obligation
Article 349. The Definition of Violation of an Obligation

1. The failure to execute or execution in an improper manner (untimely, with shortage of
goods and work, with violating any other conditions determined in the contents of the
obligation), - improper execution, shall be understood to be a violation of the obligations. In
the event that the impossibility of proper execution arises, the debtor shall be obliged to
immediately notify the creditor thereof.
2. The holding of the debtor responsible for the violation of an obligation shall be carried
out upon the claim of the creditor.
Article 350. Compensation of Losses that are caused by the Violation of an Obligation
1. A debtor who violated an obligation shall be obliged to compensate the creditor for any
losses caused by the violation (paragraph 4 of Article 9 of this Code). Compensation of losses
for obligations which are secured with a forfeit shall be determined by the rules which are
stipulated in Article 351 of this Code.
2. An agreement of the parties to release the debtor from compensation for damages
caused by the violation, taken before the breach of the obligation, shall be void, however, by
mutual agreement the parties may provide for recovery of only real damage in the property.
3. Unless it is otherwise stipulated in legislation or agreement, when determining losses,
the prices shall be taken into account which existed in that place where the obligation should
have been executed, on the date of a voluntary satisfaction by the debtor of the claim of the
creditor, and if the claim was not satisfied voluntarily,- on the date of the filing of the action.
On the basis of the circumstances, the court may satisfy the claim to compensate the losses,
taking into account the prices which existed on the date of passing the decision, or on the date
of the actual payment.
4. When determining the amount of lost profits, the measures shall be taken into account
which are adopted by the creditor for its receipt and the preparations made for that purpose.
5. A creditor shall have the right to require the recognition as invalid of any acts of the
debtor, as well as the owner of his property, provided he proves that it was performed for the
purpose of evading the liability for the violation of an obligation.
Article 351. Losses and Forfeit
1. When a forfeit is established for a failure to execute, or for improper execution of an

obligation, then the losses shall be compensated for the part which is not covered by the
forfeit. Legislation or the agreement may stipulate the cases: where it is permitted to claim
only forfeit. but not losses; where losses may be levied in full amount in addition to damages;
and where at the discretion of the creditor either damages or losses may be claimed.
Legislative acts of the Republic of Kazakhstan or the contract may provide for the cases:
when losses may be recovered in full amount in excess of the penalty; when at the choice of
the creditor either a penalty or losses may be recovered.
Cases, in which, a penalty only may be established for failure to perform or improper
performance of an obligation, shall be determined by legislative acts of the Republic of
Kazakhstan.
2. In the cases where for failure to execute or improper execution of an obligation a
limited liability is established, the losses which are subject to compensation in the part which
is not covered by the forfeit. or in addition to it or instead of it, may be claimed up to the
limits established by such limitation.
Article 352. Compensation of Moral Losses Inflicted by vViolation of an Obligation
Moral losses caused by violation of an obligation shall be compensated in addition of the

losses stipulated in Article 350 of this Code.
Article 353. The Liability for Unlawful Use of Somebody’s Funds
1. For improper use of other people's money as a result of failure to fulfill a monetary
obligation or delay in their payment, or their unreasonable receipt or savings at the expense of
another person, a penalty shall be payable. The amount of the penalty shall be calculated
based on the base rate of the National Bank of the Republic of Kazakhstan on the day of
execution of the monetary obligation or its corresponding part. When collecting the debt in
court, the court may satisfy the creditor's demand based on the base rate of the National Bank
of the Republic of Kazakhstan on the day of the claim or on the day of the decision, or on the
day of the actual payment at the choice of the creditor. These rules shall apply if a different
amount of penalty is not established by legislative acts or agreement.
2. Damages for using somebody else's funds shall be assessed including the date of the
payment of those funds to the creditor, unless legislation or agreement provide an alternative
procedure for the assessment of the forfeit.
3. When losses inflicted upon a creditor by unlawful use of his funds exceed the amount
of the forfeit, owing to him on the basis of paragraph 1 of this Article, he shall have the right
to claim from the debtor the reimbursement of the losses inasmuch as they exceed that
amount.
Footnote. Article 353 is in the wording of the Law the Republic of Kazakhstan dated July
11, 1997 № 154. Article as amended by the Law the Republic of Kazakhstan dated January
12, 2007 № 225 (shall be enforced from the date of its official publication); dated 02.01.2021
№ 399-VI (shall enter into force from 01.01.2021).
Article 354. The Liability and Execution of an Obligation in kind
1. Payment of the forfeit. and compensation of losses in the cases of improper execution
of an obligation, shall not exempt the debtor from the execution of the obligation, unless it is
otherwise stipulated in legislative acts or agreement.
2. Compensation of losses in case of failure to execute an obligation and payment of the
forfeit. for failure to execute it shall exempt the debtor from the execution of the obligation in
kind, unless it is otherwise stipulated in legislative acts or the agreement.
3. The refusal of a creditor to accept execution, which as a result of a delay lost interest
for him (Article 365 of this Code), and also payment of a monetary sum which is established
as smart money (Article 369 of this Code) shall release the debtor from the execution of the
obligation in kind.
2, 1998 № 211.
Article 355. The Consequences of Non-execution of an Obligation to Transfer an Individually

Defined Item
1. In the case of failure to execute the obligation to transfer an individually defined item
into ownership, business authority or operational management or for the use to the creditor,
the latter shall have the right to claim the confiscation of that item from the debtor and its
transfer to the creditor, except for the cases where a third party has a priority right to that item
.
2. The transfer of the item shall not exempt the debtor from the compensation of losses.
Article 356. Execution of an Obligation at the Expense of the Debtor
In the case of failure by the debtor to execute an obligation to manufacture and transfer an
item to the creditor, or to perform for him certain work or render a service, the creditor shall
have the right within a reasonable period to delegate the execution of the obligation to third
persons for a reasonable price or to execute it himself, unless it otherwise ensues from
legislation, agreement or the essence of the obligation, and to claim from the debtor
compensation for the necessary expenses and any other losses incurred.
Article 357. Subsidiary Liability
1. Prior to the presentation of a claim to the person who in accordance with legislation or
conditions of an obligation bears a liability in addition to the liability of another person who is
the principal debtor (subsidiary liability), the creditor must present the claim to the principal
debtor.
When the principal debtor refuses to satisfy or fails to execute fully the claim of the
creditor, or the creditor has not received from him within a reasonable period the response to
the claim presented, that claim, inasmuch of it as has not been executed) may not be presented
to the person who bears the several liability.
2. A creditor shall not have the right to claim satisfaction of his claim to the principal
debtor from the person who bears subsidiary liability where such a claim may be satisfied by
way of offsetting a counter claim to the principal debtor (Article 370 of this Code)
3. A person who bears several liability must, prior to the satisfaction of the claim which is
presented to him by the creditor, notify the principal debtor accordingly, and if a claim is filed
against such person, to bring the principal debtor into participation in the case.
If contrary is the case, the principal debtor shall have the right to issue against the regress
claim of the person who is liable severally, the objections which he had against the creditor.
2, 1998 № 211.
Article 358. Limiting the Amount of Liability in Obligations
1. In certains of obligations and in obligations which are associated with certains of

activities, legislative acts may limit the right to full compensation of losses (limited liability).
2. An agreement on limiting the amount of the debtor's liability under the contract of
accession or another contract in which the creditor is a citizen acting as a consumer shall be
void if the amount of liability for this type of obligation or for the violation is determined by
law.
Article 359. The Grounds of Responsibility for Violating an Obligation
1. A debtor shall be responsible for failure to execute and (or) improper execution of an
obligation if guilt exists, unless it is otherwise stipulated in legislation or agreement. A debtor
shall be recognized as innocent, if he proves that he adopted all the remedies under his control
for a proper execution of the obligation.
2. A person who shall have not fulfilled or shall have not improperly fulfilled an
obligation in carrying out an entrepreneurial activity is liable for property, unless he proves
that proper performance was impossible due to force majeure, that is, extraordinary and
unpredictable circumstances under these conditions (natural phenomena, military operations,
state of emergency, etc.). Such circumstances shall not include, in particular, the lack of
necessary goods, works or services on the market.
Legislation or the agreement may provide for other grounds for liability or release there
from.
3. An agreement concluded beforehand on elimination or limitation of liability for
intentional violation of the obligation shall be void.
official publication); dated 03.07.2020 359-VI (shall enter into force upon the expiry of ten
Article 360. Entrepreneurial Risk in an Obligation
When an obligation envisages the execution of certain work in accordance with the order
of an entrepreneur, the risk of impossibility or the impracticality of using the results of the
work, shall rest with the entrepreneur. A person who properly executed work, shall have the
right to receive the payment in proportion to the degree of the execution, except for the cases
where the agreement provides for other distribution of the entrepreneurial risk.
Article 361. Consequences of the Impossibility to Execute a Bilateral Agreement
When in a bilateral agreement it became impossible for one party to execute, as a result of
a circumstance for which neither of the parties is responsible, then neither of the parties shall
have the right to claim the execution of the agreement, unless the legislative act or agreement
stipulates otherwise. Either of the parties shall have the right to claim in that case the return of
everything that it executed without receiving any appropriate counter execution.
Article 362. The Liability of a Debtor for His Workers
Actions of the officials or any other workers of the debtor associated with the execution of
his obligations shall be deemed to be actions of the debtor. The debtor shall be liable for those
actions if they entailed non-execution or improper execution of an obligation.
Article 363. The Liability of a Debtor For Actions of Third Persons
1. A debtor shall bear liability to the creditor also in the cases where a violation of an
obligation was caused by were the actions or by the failure to act in accordance with the
obligations to the debtor by third persons.
The debtor shall bear the responsibility also for the actions or failure to act by third
persons to whom the debtor entrusted the execution of his obligation to the creditor, unless
legislation establishes, that the responsibility shall be borne by the direct executor.
2. A debtor may be exempt from liability for violation of an obligation caused by the
actions or failure to act by third persons, having proven their innocence.
When carrying out entrepreneurial activities, a debtor may be released from responsibility
for a violation caused by the action or failure to act by third persons, provided that was caused
by force majeure (paragraph 2 of Article 359 of this Code).
3. In the case of violation of an obligation which is associated with the encumbrance of
the item in the obligation by the rights of third persons, the debtor shall be exempt from
liability only in the case if such encumbrance arose prior to the conclusion of the agreement
with the creditor and the latter was warned of them when the agreement was caused.
4. Legislation or agreement may stipulate any other conditions for the liability of a debtor
for the actions of third persons.
Article 364. Creditor’s Fault
1. When a failure to execute or improper execution of an obligation took place because of

the fault of both parties, the court shall accordingly reduce the amount of the liability of the
debtor. The court also shall reduce the amount of the liability of the debtor if the creditor
deliberately or through negligence assisted in the increase of the amount of losses inflicted by
the failure to execute or by improper execution, or did not adopt any reasonable measures to
reduce them.
2. The rules of paragraph 1 of this Article shall appropriately apply also in the cases
where a debtor by virtue of a legislative act or agreement bears the responsibility for
non-execution or improper execution of the obligation irrespective of his guilt.
2, 1998 № 211.
Article 365. Debtor’s Delay
1. A debtor who delayed execution shall be responsible to the creditor for the losses
inflicted by the delay and for the consequences of the impossibility to execute which emerged
by accident during the time of the delay.
2. When as a result of a delay by the debtor, the execution has lost interest for the creditor,
he may reject the acceptance of the execution and claim compensation of losses.
3. A debtor shall not be deemed to be delaying for as long as the obligation may not be
executed as a result of the delay by the creditor (Article 366 of this Code).
Article 366. Creditor’s Delay
1. A creditor shall be deemed to be delaying if he refused to accept a proper execution,

offered by the debtor, or has not committed any actions which are stipulated in legislation or
agreement, or which ensue from traditions of business practice or from the essence of the
obligation, prior to the commitment whereof the debtor could not execute his obligation.
A creditor shall be deemed to be delaying also in the case of his refusal to properly
confirm the execution of obligations performed by the debtor.
2. A creditor's delay shall give to the debtor the right to compensation for the losses
caused by the delay, unless the creditor proves that the delay took place due to the
circumstances for which neither he himself, nor the persons to whom by virtue of legislation
or of the creditor's instructions, the acceptance of the execution was entrusted, are not
responsible.
All the unfavorable consequences of the occurrence during the delay of the accidental
impossibility to execute the obligation shall be imposed upon the creditor who committed the
delay.
3. In a monetary obligation, a debtor shall not be obliged to pay remuneration (interest)
for the time of the delay by the creditor.
11, 1997 № 154.
Chapter 21. Cessation of an Obligation
Article 367. The Basis for the Cessation of an Obligation
1. Obligations shall terminate entirely or in part by the execution, granting of smart

money, offset, novation, or forgiving of debt, coincidence of the debtor and the creditor in
one person, impossibility to execute, the issue of an act by a state body, demise of the citizen,
liquidation of the legal entity.
2. The cessation of an obligation by claim of one of the parties shall be allowed only in
the cases stipulated by legislation.
3. Legislation and agreement may stipulate any other grounds for the cessation of
obligations.
Article 368. Cessation of an Obligation by the Execution
1. Execution which is completed properly shall terminate the obligation.

2. (is excluded).
2, 1998 № 211.
Article 369. Smart Money
By agreement of the parties, an obligation may be terminated by offering instead of the

execution of smart money (payment of money, transfer of assets etc.). The amount, the
deadlines and the procedure for presenting the smart money shall be established by the parties
.
Article 370. Cessation of an Obligation by Offset
1. An obligation shall be terminated fully or partially by offsetting a similar claim, the

deadline for which has arrived, or the deadline wherefore is not specified or is defined as time
of the claim. An application of one party shall be sufficient for an offset.
2. Offset of claims shall not be allowed in the following cases:
1) when pursuant to the application of one party, a claim is subject to statute of limitations
, and the term of the statute has expired;
2) claims associated with compensation for harm caused to life or health;
3) claims associated with exacting alimony;
4) claims of life-long support;
4-1) to a bank, a branch of a non-resident bank of the Republic of Kazakhstan, deprived
of a license or in the process of preservation or liquidation (termination of activity), if the
creditor's claims arise from the contract (agreements) of assignment of the right of claim;
5) in other cases provided for by legislation or agreement.
3. In the case of the re-assignment of a claim, the debtor shall have the right to offset his
counter-claim to the initial debtor against the claim of the new creditor.
Offset shall be carried out when a claim emerged on the basis which existed by the
moment when the debtor received the notice of assignment of the claim, and the time for the
claim arrived prior to its receipt, or this deadline is not indicated, or it is defined as whenever
called.
02.03.1998 № 211; dated 23.12.2005 № 107 (the order of enforcement see Art. 2 of the Law
№ 107); dated 10.02.2011 № 406-IV (shall be enforced upon expiry of ten calendar days after
its first official publication); dated 02.01.2021 № 399-VI (shall enter into force from
16.12.2020).
Article 371. Cessation of an Obligation by the Coincidence of the Debtor and Creditor in One
Person
An obligation shall be terminated by the coincidence of the debtor and creditor in one
person.
Article 372. Cessation of Obligations by Novation
1. An obligation shall be terminated by agreement of the parties to replace the initial

obligation which existed between them, by any other obligation between the same persons,
which provides for another paragraph or method of execution (novation).
2. Novation shall not be allowed with regard to the obligations to compensate damage
caused to life or health, and to pay alimony.
3. Novation shall terminate additional obligations related to the initial one, unless it is
otherwise stipulated by agreement of the parties.
2, 1998 № 211.
Article 373. Forgiving Debt
An obligation shall be terminated by the exemption of the debtor by his creditor from the
obligations which rest with him, unless this violates the rights of any other persons with
regard to the property of the creditor.
Article 374. Termination of Obligations by Impossibility to Execute
1. An obligation shall be terminated by impossibility to execute it, provided it is caused

by a circumstance for which the debtor is not responsible. This rule shall not apply to
monetary obligations.
2. In the case where the impossibility of one party to execute an obligation is caused by a
circumstance for which neither one nor the other party are responsible, it shall not have the
right to claim from the other party the execution of the obligation, unless it is otherwise
stipulated in legislation or the agreement. In that respect, either party which executed its
obligation, shall have the right to claim the return of the executed.
3. In the case of the impossibility to execute an obligation by the debtor, which is caused
by guilty actions of the creditor, the latter shall not have the right to claim the return of what
is executed by him in the obligation.
Article 375. Termination of an Obligation on the Basis of the Act of a State Body
1. When as a result of the issue of an act by state bodies, including local representative
and executive bodies (a public act), the execution of an obligation becomes entirely or
partially impossible, the obligation shall cease fully or in the relevant part. The parties which
incurred losses as a result thereof, shall have the right to claim their compensation in
2. In the case of recognition in accordance with the established procedure of the public act
as invalid, on the basis of which an obligation terminated, the obligation shall be
re-established, unless it otherwise ensues from the agreement of the parties or from the
essence of the obligation and where the execution thereof have not lost interest for the
creditor.
Article 376. Termination of an Obligation by Demise of the Citizen

1. An obligation shall terminate with demise of the citizen, unless the execution may be
carried out without the personal participation of the debtor, or the obligation in any other
manner is inseparably connected to the person of the debtor.
2. An obligation shall cease with demise of the creditor, where the execution is intended
personally for the creditor or the obligation is in any other way inseparably associated with
the person of the creditor.
Article 377. Termination of an Obligation by Liquidation of the Legal Entity
1. An obligation shall be terminated by liquidation of the legal entity (debtor or creditor),

except for the cases where legislation delegates the execution of the obligation of the
liquidated legal entity to any other legal entity (in the obligations which arise as a result of
causing harm to life and health etc.).
2. Termination of activities or reorganization of the state bodies, including the local
representative and executive bodies, shall not terminate the obligations in which such bodies
are debtors. The execution of specified obligations shall be entrusted to a body which
manages the funds of the budget, unless it is otherwise stipulated by the resolution concerning
the termination of activities or reorganization of the relevant bodies.
Subsection 2. General Provisions Concerning Agreements

Chapter 22. The Definition and Conditions of Agreements
Article 378. The Definition of Agreement
1. An arrangement of two or several persons concerning the establishment, amendment or

cessation of civil rights and obligations shall be recognized as agreement.
2. The rules for bilateral and multilateral transactions as stipulated in Charter 4 of this
Code, shall apply to agreements.
3. General provisions concerning agreements shall apply to agreements concluded by
more than two parties (multilateral agreements), unless this contradicts the multilateral nature
of such agreements.
Article 379. Legal Relations Which Arise From Agreements
1. Obligatory, corporeal, copyright legal relations and other legal relations may arise from
agreements.
2. The general provisions concerning obligations (Articles 268 - 377 of this Code) shall
apply to obligations arising from agreements, unless it is otherwise specified by the rules of
this chapter and rules concerning specifics of agreements which are contained in this Code.
3. The provisions of this Chapter shall apply to corporeal, copyright or other legal
relations which arise from agreements (agreements for joint activities, foundation agreement,
copyright agreements and other), unless it otherwise ensues from legislation, agreement or the
essence of the legal relation.
Article 380. Freedom of Contract
1. Citizens and legal entities shall be free in concluding agreements. Compulsion to

conclude an agreement shall not be allowed, except for the cases where the obligation to
conclude an agreement is contemplated by this Code, legislative acts or by the obligation
adopted voluntarily.
2. Parties may conclude agreements both as provided for and as not provided for by
legislation.
Article 381. Mixed Agreements
Parties may conclude an agreement which contains the elements of various agreements
provided for by legislation (mixed agreement). The relations of the parties in certain parts of a
mixed agreement shall be subject to relevant legislation concerning agreements, the elements
of which are contained in the mixed agreement, unless it otherwise ensues from the
agreement of the parties or the essence of the mixed agreement.
Article 382. Defining Provisions of an Agreement
1. Provisions of an agreement shall be defined at the discretion of the parties, except for
the cases where the contents of a certain provision are prescribed by legislation.
In the cases where a provision of an agreement is prescribed by a rule which, in
accordance with legislation applies, unless the agreement of the parties specifies otherwise (
dispositive rule), the parties may by their agreement exclude its application or establish a
condition which is different from the one specified in it. Where such agreement does not exist
the condition of the agreement shall be determined by the dispositive rule.
2. If a provision of an agreement is not defined by the parties nor by a dispositive norm,
the appropriate provisions shall be determined by traditions of business practice, which are
applicable to the relations of those parties.
Article 383. Agreement and Legislation
1. An agreement must comply with the rules which are obligatory for the parties and
which are established by legislation (imperative rules), which are effective at the moment of
its conclusion.
2. When after the conclusion of an agreement, legislation establishes for the parties the
rules which are different from those that were effective when the agreement was concluded,
the terms of the concluded agreement shall remain valid, except for the cases where
legislation establishes that it applies to the relations which arose from the agreements
concluded earlier.
Article 384. Chargeable and Non-chargeable Agreements
1. An agreement in accordance with which one party must receive a payment or other
counter consideration for the execution of its obligations, shall be recognized as chargeable.
2. An agreement shall be recognized as non-chargeable in which one party is obliged to
supply something to the other party without receiving from it any payment or any other
counter consideration.
3. An agreement shall be deemed to be chargeable, unless it otherwise ensues from
legislation, contents or the essence of the agreement.
Article 385. Price
1. Execution of an agreement shall be paid in accordance with the price established by

In the cases which are stipulated by legislative acts, the prices (tariffs, fees, rates, etc.)
shall apply as established or regulated by the state bodies authorized accordingly.
2. Changing prices after concluding agreements shall be allowed in the cases and on the
terms as specified in the agreement, legislative acts, or in accordance with the procedure
3. In the cases where, in a chargeable agreement, the price is not stipulated and may not
be determined on the basis of the provisions of the agreement, it shall be deemed that the
execution of the agreement must be carried out at the price which, at the moment of the
conclusion of the agreement was usually charged for similar goods, work and services under
similar conditions.
Article 386. Validity of an Agreement
1. An agreement shall enter into force and it shall be binding for the parties from the
moment of its conclusion (Article 393 of this Code).
2. The parties shall have the right to establish, that the provisions of the agreement
concluded by them shall apply to their relations which arose prior to the conclusion the
agreement.
3. Where legislation or an agreement specify a validity period of the agreement, the expiry
of that term shall entail the cessation of the obligations of the parties under the agreement.
An agreement in which there is no indication as to its validity period shall be recognized
as valid until the moment specified in it for the termination by the parties of the execution of
the obligation.
4. The expiry of the validity period of an agreement shall not release the parties from the
responsibility for its violation which took place prior to the expiry of that period.
Article 387. A public Agreement
1. An agreement which is concluded by a person engaged in entrepreneurial activity and

establishing his duties for the sale of goods, performance of work or provision of services that
such a person, in the nature of its activities, should exercise with respect to everyone who
applies to him (retail, transportation by public transport, communication services, energy
supply, medical, hotel services and the like) shall be recognized as a public agreement.
A person engaged in entrepreneurial activity shall not have the right to grant preference to
one person before another person in relation to conclusion of a public agreement, except for
the cases provided for by legislative acts of the Republic of Kazakhstan.
2. The price of goods, work and services and also other provisions of a public agreement
shall be established as being the same for all customers, except for the cases where legislation
allows the granting of privileges for certain categories of consumers.
3. Refusal of a person engaged in entrepreneurial activity to conclude a public contract,
provided that it is possible to provide the consumer with the relevant goods (work, services)
shall not allowed.
In case of unreasonable evasion of a person engaged in entrepreneurial activity from
conclusion of a public agreement, the provisions provided for by paragraph 4 of Article 399
of this Code shall apply.
4. In the cases provided for by legislative acts, the Government of the Republic of
Kazakhstan may issue rules which are obligatory for parties when entering into and executing
public agreements (model agreements, regulations, etc.).
5. The terms of a public agreement that do not meet the requirements stipulated in
paragraphs 2 and 4 of this article shall be void.
Article 388. Model Provisions of Agreements
1. An agreement may specify that its certain provisions are determined by model
provisions which are elaborated for the agreements of that and published in the press.
2. In the cases, where an agreement does not contain any reference to model conditions,
such model conditions shall apply to the relations of the parties as traditions of business
practice, provided they are consistent with the requirements established by Articles 3 and 382
of this Code.
3. Model provisions may be outlined in the form of a model agreement or any other
document which contains those provisions.
Article 389. Adherence Agreement
1. An agreement of which the conditions are determined by one of the parties in pro-forms
or any other standard forms and may be adopted by the other party in no other way but by
way of adherence to the proposed agreement as a whole, shall be recognized as an adherence
agreement.
1-1. A legislative act of the Republic of Kazakhstan on social protection may stipulate
particularities of the adhesion contract and requirements for its content.
2. A party which adheres to an agreement shall have the right to claim the dissolution of
the agreement if the adherence agreement, although does not contradict legislation, but
deprives that party of the rights which are usually granted in agreements of such a, excludes
or restricts the liability of the other party for violation of the obligations or contains other
clearly onerous conditions for the adhering party, which it would not accept on the basis of its
reasonably understood interests, should it have the possibility to participate in defining the
provisions of the agreement.
3. Where the circumstances exist as stipulated in paragraph 2 of this Article, the claim to
dissolve the agreement, made by the party which had adhered to the agreement in connection
with its exercise of entrepreneurial activities, shall not be subject to satisfaction, if the party
which adhered knew or should have known on which conditions it concluded the agreement.
official publication); № 226-VII of 20.04.2023 (shall take effect from 01.07.2023).
Article 390. Preliminary Agreements
1. In accordance with a preliminary agreement, the parties assume an obligation to

conclude in the future an agreement on the transfer of assets, performance of work or
rendering services (principal agreement) on the terms specified in the preliminary agreement.
2. A preliminary contract is concluded in the form established by the legislation for the
main contract, and if the form of the main contract is not established, then in writing. Failure
to comply with the rules on the form of a preliminary contract shall entail its insignificance.
3. A preliminary agreement must contain the provisions which allow the identification of
the subject-matter, and other material conditions of the principal agreement.
4. In a preliminary agreement the period shall be indicated within which the parties are
obliged to conclude the principal agreement.
When such a period is not defined in the preliminary agreement, the agreement envisaged
by it shall be subject to conclusion within one year from the moment of the conclusion of the
preliminary agreement.
5. In the cases where one party which concluded a preliminary agreement evades the
conclusion of the agreement which is envisaged thereby, it shall be obliged to compensate the
other party for the losses incurred by that, unless it is otherwise stipulated in legislation or the
agreement.
6. The obligations which are stipulated in the preliminary agreement shall terminate if
prior to the expiry of the period within which the parties must conclude the principal
agreement, it is not concluded, or none of the parties sends to the counter-party the proposal
to conclude the agreement.
7. A letter of intent (agreement of intentions), unless it directly provides for the intent of
the parties to impart to it the status of a preliminary agreement, shall not be deemed to be a
civil law agreement and failure to execute it shall not entail any legal consequences.
Article 391. An Agreement for the Benefit of a Third Persons
1. An agreement shall be recognized to be an agreement for the benefit of a third party, in

which the parties established that the debtor shall be obliged to carry out the execution not to
the creditor but to a third party who is indicated or not indicated in the agreement and who
has the right to claim from the debtor the execution of the obligations for his benefit.
2. Unless it is otherwise stipulated in legislation or agreement, from the moment that the
third party expressed to the debtor the intention to exercise its right in accordance with the
agreement, the parties may not dissolve or amend without the consent of the third party the
agreement concluded by them.
3. A debtor in an agreement shall have the right to make objections against the claim of a
third party, which he may make against the creditor.
4. In the case where a third party waives a right which is granted to it in accordance with
the agreement, the creditor may use that right, unless that contradicts legislation and the
agreement.
5. Since the expression of a third party the intent to exercise its right under the contract to
the time of failure of a third party of its right, the creditor is entitled to require a performance
of the obligation of the debtor to a third party under the terms of the contract.
Article 392. Interpretation of an Agreement
1. When interpreting provisions of an agreement, the court shall take into account the
literal meaning of the words and expressions contained in it. The literal meaning of a
provision of an agreement, where unclear, shall be established by way of comparing that with
other conditions and the sense of the agreement as a whole.
2. Where the rules contained in paragraph 1 of this Article do not allow to understand the
contents of an agreement, the actual common will of the parties must be identified taking into
account the objective of the agreement. In that respect, any relevant circumstances, including
the negotiations preceding the agreement, and a letter exchange, the practice prevailing in the
mutual relations of the parties, tradition of business practice, the subsequent conduct of the
parties, shall be taken into account.
Chapter 23. Conclusion of an Agreement
Article 393. Important Terms of an Agreement
1. An agreement shall be deemed to be concluded when consensus is reached between the

parties in accordance with the required form, on all the material terms of it.
The provisions concerning the subject-matter of the agreement, the provisions which are
recognized by legislation as material or which are necessary for the agreements of that, and
also all the provisions on which according to the application of either party, consensus must
be reached, shall be recognized as material terms.
2. Where in accordance with legislative the conclusion of an agreement requires a transfer
of property, the agreement shall be concluded from the moment of the transfer of that
property.
Article 394. Form of an Agreement
1. If the parties agreed to conclude an agreement in certain form, it shall be deemed to be

concluded from the moment of imparting to it the appropriate form, even if legislation does
not require that form for such of agreements.
2. The written form of an agreement shall be deemed to be complied with, if the written
offer to conclude the agreement is accepted in accordance with the procedure provided for by
Article 395. Offer
1. A proposal to conclude an agreement, which is made to one or several specific persons,

provided it is sufficiently definite and expresses the intent of the person who made the
proposal to deem himself bound in case of its adoption (acceptance), shall be recognized as
offer. A proposal shall be deemed to be sufficiently definite, if it contains the material terms
of the agreement and the procedure for their determination.
2. An offer shall bind the person who sends it from the moment of its receipt by the
addressee.
When the notice of revoking an offer is received earlier than or simultaneously with the
offer itself, the offer shall be deemed to be not received.
3. An offer received by the addressee may not be revoked during the period which is
established for its acceptance, unless it is otherwise stipulated in the offer itself, or ensues
from the essence of the proposal or the situation in which it was made.
4. Advertisements and other proposals which are addressed to an indefinite circle of
persons shall be considered as an invitation to make an offer, unless it is otherwise stipulated
in the proposal.
5. A proposal which contains all the substantial terms of the agreement, from which the
will of the person who is making the proposal is understandable, to conclude the agreement
on the terms specified in the proposal with anyone who responds, shall be recognized as an
offer (public offer).
Article 396. Acceptance
1. The response of a person to whom the offer is addressed, about accepting it shall be
recognized as acceptance.
Acceptance must be entire and unconditional.
2. Silence shall not be recognized as acceptance, unless it otherwise ensues from the
legislative act, tradition of business practice or previous business relations of the parties.
3. The commitment by the person who received an offer, within the period which is
established for its acceptance, of the actions to implement the provisions of the agreement
which are indicated in it (shipment of goods, rendering of services, performing work,
payment of the appropriate amount etc.), shall be recognized as acceptance, unless it is
otherwise stipulated in legislation or indicated in the offer.
4. If a notice of revocation of the acceptance is received by the person who sent the offer,
earlier or simultaneously with the acceptance itself, the acceptance shall be deemed not
received.
Article 397. The Procedure for Concluding Agreements
1. When an offer contains a deadline for its acceptance, the agreement shall be deemed to
be concluded, if the acceptance is received by the person who sent the offer within the period
indicated in it.
2. When a written or electronic offer does not contain a period for acceptance, the contract
shall be considered as concluded if the acceptance was received by the person who sent the
offer before the expiration of the period established by law, and if such period is not
established - within the time required for this.
3. In the cases where a notice of an acceptance deadline is received with a delay, the
acceptance shall not be considered late, if the party which sent the offer does not immediately
notify the other party of receiving the acceptance with a delay.
If the party which sent the offer immediately notifies the other party that the acceptance of
the offer has been received with a delay, the agreement shall be deemed to be concluded.
4. The response of consent to conclude the agreement on the conditions different than
those proposed in the offer, shall not be recognized as an acceptance. Such response shall be
recognized as a refusal from the offer and at the same time it shall be a new offer.
Article 398. The Place of Concluding an Agreement
When an agreement does not specify the place of its conclusion, the agreement shall be
deemed to be concluded in the place of residence of the citizen or in the place of location of
the legal entity which sent the offer.
Article 399. Concluding an Agreement in an Obligatory Procedure
1. In the cases, where in accordance with this Code or any other legislative acts, the
conclusion of an agreement is obligatory for one of the parties, that party must send to the
other party the notice of acceptance, or of the refusal to accept, or of acceptance of the offer (
draft agreement) on different terms (protocol of differences to the draft agreement) within
thirty days from the date of the receipt of the offer, unless a different period is established by
legislation or is agreed by the parties.
2. The party which sent an offer and received from the party for which the conclusion of
the agreement is obligatory a notice of acceptance on different terms (protocol of differences
to the draft agreement), shall have the right to enter the disputes which arose in concluding
the agreement, to a court for its consideration within thirty days from the date of the receipt of
such notice, or upon expiry of the period for the acceptance, unless legislation concerning
specifics of agreements establishes a different period.
3. In the cases where in respect of a draft agreement sent by one party for which the
conclusion of the agreement is obligatory, a protocol of differences concerning the draft
agreement is received, that party shall be obliged within thirty days from the date of the
receipt of the protocol of differences to notify the other party of the acceptance of the
agreement in that party's version or of declining the protocol of differences.
When declining a protocol of differences or in the case of failure to receive the notice
concerning the results of its consideration, within an indicated period, the party which sent the
protocol of differences, shall have the right to enter the differences which arose in the
conclusion of the agreement for the consideration of the court, unless legislation concerning
specifics of agreements establishes otherwise.
4. When a party, for which in accordance with this Code or any other legislative acts, the
conclusion of an agreement is obligatory, is evading its conclusion, the other party shall have
the right to appeal to the court with the claim to compel to conclude the agreement.
The party which unreasonably evaded the conclusion of an agreement must to compensate
to the other party for the losses caused by the refusal to conclude the agreement.
Article 400. Pre-contractual Disputes
In the cases specified in paragraphs 2 and 3 of Article 399 of this Code, and also if the
disputes which arose in concluding an agreement, were by consensus of the parties entered
into a court for its consideration, the provisions of the agreement, on which the parties had
differences, shall be determined in accordance with decision of the court.
Chapter 24. Amendment and Dissolution of An Agreement
Article 401. Grounds for Amending and Dissolving Agreements
1. Amendments to and dissolution of an agreement shall be possible by agreement of the

parties, unless it is otherwise stipulated by this Code, other legislative acts and the agreement.
2. Upon the claim of one of the parties the agreement may be amended or dissolved upon
the decision of the court only as follows:
1) when there is a material violation of the agreement by the other party;
2) in other cases which are stipulated in this Code, other legislative acts or the agreement.
A violation of the agreement by one of the parties shall be deemed material if it entails for
the other party such damage that it to a substantial degree loses something on which it had the
right to count when concluding the agreement.
3. An agreement shall be deemed to be amended or terminated in the case of a unilateral
refusal to implement it (partial or full denial of an agreement accordingly (Article 404 of this
Code).
Footnote. Paragraph 3 of Article 401 is in the new wording of the Law of the Republic of
Article 402. Procedure for Amending and Dissolving an Agreement

1. An arrangement to amend or dissolve an agreement shall be performed in the same
form as that of the agreement, unless it ensues otherwise from legislation, the agreement, or
traditions of business practice.
2. The claim to amend or dissolve an agreement may be entered by a party to the court
only after the receipt of the refusal of the other party with regard to the proposal to amend or
dissolve the agreement or in the case of failure to receive a response within the deadlines
indicated in the proposal or established by legislation or the agreement, and where it does not
exist, - within thirty days’ time.
Article 403. Consequences of Dissolving and Amending an Agreement
1. When dissolving an agreement, the obligations of the parties shall cease.

2. When amending an agreement, the obligations of the parties shall continue to be valid
in an amended form.
3. In the case of dissolving or amending an agreement the obligations shall be deemed to
be terminated or amended from the moment of the reaching the consensus of the parties
concerning the amendment or dissolution of the agreement, unless it otherwise ensues from
the agreement of the parties or the nature of the amendment to the agreement, and in the case
of termination or amending the agreement in a judicial procedure, - from the moment of the
court decision concerning the dissolution or amendment of the agreement entering into legal
force.
4. The parties shall not have the right to claim the return of what was executed by them in
the obligation prior to the moment of dissolution or amendment to the agreement, unless it is
otherwise established in the law legislative acts or the agreement by the parties.
5. Where a substantial violation of an agreement by one of the parties served as the reason
for the dissolution or amendment of the agreement, the other party shall have the right to
claim the restitution of losses caused by the dissolution or amendment of the agreement.
2, 1998 № 211.
Article 404. Unilateral Refusal to Implement an Agreement (Rescission of an Agreement)
1. A unilateral refusal from the implementation of an agreement (rescission of an

agreement) shall be allowed in the cases provided for by this Code, other legislative acts or
2. Either party shall have the right to refuse to implement the agreement in the following
cases:
1) impossibility to perform an obligation based on the Agreement (Article 374 of this
Code);
2) recognition, in accordance with the established procedure, of the other party as a
bankrupt, unless otherwise established by the legislative act of the Republic of Kazakhstan on
rehabilitation and bankruptcy;
3) amendment or abolition of the act of the state body, on the basis of which the
agreement was concluded.
3. A unilateral rescission of performance of an agreement shall be allowed in the cases
when the agreement is entered into without indication of a period, unless it is otherwise
provided for by legislative acts or the consensus of the parties.
4. In the case of a unilateral rescission of the performance of an agreement the party must
notify the other accordingly, not later than one month prior, unless it is otherwise provided for
by this Code, other legislative acts or consensus of the parties.
Footnote. Article 404 is in the new wording of the Law of the Republic of Kazakhstan
dated March 2, 1998 № 211; as amended by the Law of the Republic of Kazakhstan dated
Article 405. Extension of the Validity Period of an Agreement
The parties shall have the right to extend the validity period of the agreement for another
period.
The extension of the validity period of an agreement shall be carried out in accordance
with the rules of Article 397 of this Code.
Civil Code of the Republic of Kazakhstan (Special part)

The Code of the Republic of Kazakhstan dated July 1, 1999 № 409
Footnote. The numbers "IV-VII" after the word "Section" in the text are replaced
respectively by numbers "4-7" in accordance with the Law of the Republic of Kazakhstan
dated 20.12.2004 № 13 (shall be enforced from 01.01.2005).
Section 4. Certains of obligations

Chapter 25. Sale
Paragraph 1. General Terms of Sale
Article 406. Contract of Sale
1. According to the sales contract, one party (the seller) agrees to transfer the property (
goods) in the property, economic management or operative control of the other party (the
buyer), the buyer agrees to take the property (goods) and pay a certain amount of money for it
(the price).
2. By purchasing and selling of securities and currency values the provisions provided for
in this item shall be applied, if the legislation does not have special rules for their sale.
2-1. Features of the sale of goods by the Islamic Bank in carrying out of banking
operations shall be established by legislative acts of the Republic of Kazakhstan, regulating
the banking sector.
3. In the cases provided by the this Code or other laws, peculiarities of the sale of certain
categories of goods shall be determined by legislative and other normative legal acts.
4. The provisions of this paragraph shall apply to the sale of property rights, unless it
otherwise follows from the content or the nature of those rights.
5. Regulations under this section shall be applied for certains of contracts of sale (retail
sales, supply of goods, energy supply, contracting, sale of business), unless otherwise
provided by the rules of the this Code on contracts for these transactions.
6. When selling property in accordance with the procedure established for the execution
of judicial decisions, an officer of the court shall act as the vendor.
Article 407. The Terms of the Contract for Product
1. Goods under a contract of sale may be anything, in compliance with the rules of Article
116 of this Code.
2. Contract may be concluded for the sale of goods, available from the seller at the time of
conclusion of the contract, as well as the goods that will be created or acquired by seller in the
future, unless otherwise provided by legislation or follows from the nature of the goods.
3. The condition of the product is considered to be consistent if the contract allows you to
define the name and quantity of the goods (material conditions).
Article 408. The Seller’s Obligation to Transfer the Goods
1. The seller is obliged to transfer the goods, provided by the contract.

2. Unless otherwise provided by the contract, the seller is obliged to transfer the goods to
the buyer with its accessories simultaneously, as well as related documents (documents
proving the completeness, quality, safety, operation, etc.) provided by normative and legal
acts, or by contract.
Article 409. Term of Performance of Obligations to Transfer Goods
1. Term of performance of obligations to transfer the goods to the buyer by the seller shall
be defined by the contract, if the contract does not allow to determine the term - it shall be
determined in accordance with the rules set out in article 277 of this Code.
2. The contract of sale shall be concluded with the condition of its execution to the strictly
defined time period, unless the contract shall clear that if there is a violation of the deadline,
the buyer loses interest in the performance of the contract.
The seller shall not be entitled to perform such an agreement before or after a specified
period, without the consent of the buyer.
Legislative acts or contract may establish cases of performance of the contract of sale in
parts (intermediate deadlines for the performance of the contract).
Article 410.Time of Performance of the Seller’s Obligations to Transfer Goods
1. The seller's obligation to transfer goods to the buyer, unless otherwise provided by the
contract of sale, shall considered to be fulfilled, when:
1) hanging of goods to the buyer or the person specified by him (her), if the contract
provides for the seller’s obligation to deliver the goods;
2) deliver the goods at the buyer's disposal, if the goods shall be delivered to the buyer or
the person specified by him (her) at the location of the goods.
The product shall be supplied to the buyer, when the deadline provided for under the
contract, the goods are ready to be transferred to the appropriate place and the buyer, in
accordance with the terms of the contract is aware of the readiness of the goods for the
transfer. This product shall not be considered to ready for transfer, if it is not identified for the
purposes of the contract, by marking or otherwise.
2. In cases, where the contract of sale shall not followed the seller's obligation to deliver
goods or transfer the goods to the buyer at its location, the obligation of the seller to transfer
the goods to the buyer shall be considered to be executed at the moment of delivery of the
goods to the carrier or the organization due for delivery to the buyer, unless the contract
provides otherwise.
Article 411. Passing the Risk of Accidental Loss of Goods
1.The risk of accidental loss or accidental damage of the goods, which is provided by the
contract of sale, shall be passed to the buyer, when in accordance with legislative acts or the
contract, the seller is considered to perform his (her) duty to transfer the goods to the buyer.
2. The risk of accidental loss or accidental damage of the goods, which is sold on the way,
shall be passed to the buyer since the moment of conclusion of the contract of sale, unless
otherwise provided by the contact or customary business practice.
A condition of the contract, that the risk of accidental loss or accidental damage of the
goods passes to the buyer, since the moment of delivery of the goods to the first carrier, and
at the request of the buyer could be found invalid by a court, if, at the time of conclusion of
the contract the seller knew or ought to have known that the goods are lost or damaged and
not reported it to the buyer.
Article 412. The Seller’s Obligation on the Preservation of Sold Goods
When the property right, the right of economic management or operational control pass to
the buyer before delivering the goods, the seller shall be obliged to preserve the goods before
transferring and prevent its deterioration.
The buyer shall be obliged to reimburse to the seller the necessary costs, unless otherwise
provided by agreement of the parties.
Article 413. The Seller’s Obligation is to Transfer the Goods that are Free from the Rights of Third
Parties
1. The seller is obliged to transfer the goods, which are free of any rights of third parties,
except in the case, where the buyer has agreed to take the goods, which are encumbered to the
rights of third parties.
Failure by the seller of this duty gives the buyer the right to demand a reduction in the
price of goods or cancellation of the contract and claim damages, if it can be shown that the
buyer knew or should have known about the rights of third parties on this product.
2. The rules provided in paragraph 1 of this Article shall be applied in the case at the time
of goods transferring to the buyer, whether the claims of third parties are presented, and of
which the seller is aware about the claims, which are subsequently found to be legally valid.
Article 414. The Seller’s Liability in the Case of Seizure of the Goods from the Buyer
1. In the case of seizure the goods from the buyer by third parties on the grounds that
arose before the execution of the contract, the seller must compensate the buyer incurred
losses, unless it shall be proved that the buyer knew or should have known about the presence
of these grounds.
2. The parties' agreement upon releasing of the seller from the liability or limitation of
liability is not valid in the case of demand of the purchased goods from the buyer by third
parties.
Article 415. Obligations of the Buyer and Seller in the case of filing out for the Seizure of Goods
1. If a third party gives the buyer the suit on seizure of goods on the grounds of arisen
execution of the contract, the buyer is obliged to bring the seller the participation in the case,
and the seller is obliged to enter the case on the side of the customer.
2. The non-involvement by the buyer of the seller to the case shall release the seller from
the liability to the buyer, if the seller can prove that by participating in the case, he (she) could
have prevented the seizure of goods, which is sold by the buyer.
3. The seller, who has been attracted to the participation in the case, but did not take part
in it, shall be deprived of the right to prove the buyer’s irregularity on proceedings in the case.
Article 416. The Consequences of Breaching Duties on Transferring the Goods
1.If the seller refuses to hand over the sold goods to the buyer, the buyer shall be entitled
to refuse on the performance of the sale contract.
2.When the seller refuses to transfer a certain individual thing, the buyer shall be entitled
to present a claim to the seller under Article 355 of this Code.
Article 417. Consequences of Breaching Duties to Transfer Ownership and Documents Relating to
the Goods
1. If the seller shall not supply or refuses to hand over the accessories of the goods or
documents belonging to it, which he (she) must pass (paragraph 2 of article 408 of the Code)
to the customer, the buyer has the right to appoint him a reasonable time their transfer.
2. In the case, where the accessories or documents relating to the goods are not delivered
within the specified period of time by the seller, the buyer shall be entitled to refuse to accept
the goods, unless otherwise provided by the contract.
Article 418. The Quantity of Goods
The quantity of the goods, which shall be transferred to the buyer, in the relevant units or
in monetary terms provided by the contract. The condition on the number of goods may be
agreed by the contract establishing the order of its definition.
Article 419. The Consequences of a Breach of the Contract on the Quantity of Goods
1. If the seller has transferred to the buyer fewer goods than defined by the contract in
breach of the contract, the buyer has the right, to demand the transfer of the missing quantities
or refuse from the transferred goods and its payment, and if he (she) paid for to demand the
return paid for a sum of money, unless otherwise provided by the contract.
2. In the case, when the seller has delivered the goods to the buyer in an exceeding
quantity that is specified in the contract and the buyer must notify the seller in accordance
with paragraph 1 of Article 436 of this Code. If the seller shall not be ordered the goods
within a reasonable time after receiving the message from the buyer, the buyer shall have the
right to take all the goods, unless otherwise provided for by the contract.
3. In the case, when the buyer shall accept the goods in an exceeding quantity, which is
specified in the contract, the goods shall be paid at the price in accordance with the contract
defined for the goods, if a price is not determined by agreement of the parties.
Article 420. The Range of Goods
If the contract of sale shall be subject to transfer the goods in a certain ratio by, models,
sizes, colors and other characteristics (range), the seller must give the buyer the goods in
assortment, agreed to by the parties.
Article 421. The Consequences of a Breach of the Contract on the range of Goods
1. When transferring the range of goods, which is specified in the contract by the seller,
and is not appropriate to the contract, the buyer has the right to refuse their acceptance and
payment for it, and to demand the return of money, if they have already paid.
2. If the seller has transferred to the buyer, the goods in violation of the terms of the
contract, along with the goods, which range corresponds to the contract, the buyer shall be
entitled to choose:
1) to accept goods that comply with the range terms of the contract, and abandon the rest
of the other goods;
2) to abandon all of the transferred goods;
3) to require the replacement of goods, which is not appropriate with the terms on the
range of goods provided by the contract;
4) to accept all the transferred goods.
3. When refusing of goods, which assortment does not appropriate to the contract, or the
request for replacement of the goods, which is not appropriate with the contract, the buyer
shall be entitled to refuse to pay for these goods, and to demand the return of money, if they
have already paid.
4. Products that do not appropriate with the terms of the contract on the range shall be
considered to adopted, if the buyer within fifteen days after their receiving, shall not inform
the seller about his (her) rejection of goods.
5. If the buyer has not abandoned from goods assortment, which do not appropriate with
the contract, he (she) shall be obliged to pay them on the price agreed with the seller. If the
seller has not taken the necessary measures to harmonize prices within fifteen days, the buyer
shall pay for the goods at a price, which was generally charged for similar goods, under
comparable circumstances at the moment of conclusion of the contract.
6. The rules of the present Article shall be applied unless otherwise provided by the
contract of sale.
Article 422. The Quality of the Goods
1.The seller is obliged to transfer to the buyer, the goods which quality should be
corresponded to the contract.
2. When the conditions on the quality of goods are absent in the contract, the seller is
obliged to transfer the goods, which are appropriate for the purposes for what this of goods
are generally used.
If the seller when concluding a contract has been concluded about the specific purposes of
acquiring the goods by the buyer, the Seller shall be obliged to transfer the goods, which are
fit for usage in accordance with these purposes.
3. When selling goods on the sample and (or) on the description, the Seller shall be
obliged to transfer the goods to the buyer, which are corresponded to the sample and (or)
description.
4. If in accordance with the legislative acts, which provides the order on the mandatory
requirements to the quality of the sold goods, the Seller, who engaged in entrepreneurial
activity, shall be obliged to transfer the goods to the Buyer , which are corresponding to these
mandatory requirements.
Under the agreement between the Seller and the Buyer can be transferred goods, which
are corresponded to the high quality requirements compared with the mandatory requirements
, which were set out in the order established by legislative acts.
5. The goods, which the seller shall be obliged to transfer to the buyer, shall comply with
the requirements of this Article, at the time its transferring to the buyer, unless a different
time for determining conformity with these requirements are not provided by the contract and
it within a reasonable time should be suitable for the purpose for which this of goods are
generally used.
Article 423. Expire Date of Goods
1. Legislation, regulatory requirements of State standards or other mandatory rules can be

defined the period of time after which the goods are considered to be unfit for its intended use
(expire date), as well as cases where the expire date of the product is indicated on the product.
2. Goods, for which set the expiration date, the Seller is obliged to transfer to the Buyer,
taking into account that they can be used for intended purpose until the expiration date.
publication).
Article 424. Calculation of the Expiration Date of Goods
The expiration date of the goods shall be determined by the period of time calculated from
the date of its producing, and during which time the goods are fit for usage or by the date
before which the goods are fit for usage.
Article 425. Guarantee of the Quality of Goods
1. In the case where the contract provides the seller’s guarantee on the quality of the
goods, the Seller is obliged to transfer the goods, which shall meet the requirements of Article
422 of the Code, for a period of time established by the contract (warranty period).
2. Guarantee of the quality of the goods extends to all its constituent parts (components),
Article 426. The Procedure for Calculating the Guarantee Period

1. The warranty period shall begin from the moment of transfer of the goods to the buyer (
article 410 of the this Code), unless otherwise provided by the contract.
2. If the buyer is unable to use the goods, due to circumstances beyond the control of the
seller and for which has been established the warranty period by the contract, the warranty
period shall not be flowed until the relevant circumstances shall not be fixed by the seller.
Unless another is provided by the contract, the warranty period shall be extended by the
time during which the goods could not be used because of the deficiencies found in it,
providing a notice of the seller about the defects of goods in accordance with the Article 436
of this Code.
3. Unless another is provided by the contract, the warranty period for a complementary
part of the product shall be considered equal to the warranty term of the product and will run
concurrently with the warranty period for the main product.
4. Unless another is provided by the contract, the warranty period shall be started to run
again, when replacing the product (components).
Article 427. Verification of the Quality of the Goods
1. If legislation or contract provides for verification of the quality of the goods, it must be
carried out in accordance with the requirements provided by them.
In cases, where the State standards and other normative documents on standardization set
mandatory requirements to the verification of the quality of goods, the quality control should
be carried out in accordance with the instructions contained therein.
2. If the conditions for verification the quality of the goods are not provided in the manner
prescribed by paragraph 1 of this Article, the verification of quality of the goods shall be
carried out in accordance with the customs of trade or other commonly used terms of the
verification of the goods that to be transferred under the contract.
3. If the legislative acts, the mandatory requirements of State standards and other
normative documents for standardization or contract provides for the seller’s duty to verify
the quality of the goods, which are transferred to the buyer (testing, analysis, inspection, etc.),
the seller must provide the buyer, upon of his (her) request evidence of verification the quality
of the goods.
publication).
Article 428. The Consequences of Transfer of Goods that are of Defective Quality
1. If defects in the goods had not been stipulated by the seller, the buyer, who handed over
the goods of inadequate quality may choose to require from the seller:
1) proportionate reduction of the purchase price;
2) free elimination of the goods defect within a reasonable time;
3) compensation of their expenses for elimination of defects in the goods;
4) replacement of inadequate quality of goods to the goods, which are appropriate to the
contract;
5) failure to execute the contract and return the paid amount of money for the goods.
Terms and conditions of the buyer’s refusal from the rights provided in this paragraph
shall be invalid.
2. In the case of inadequate quality of the parts of goods, which are included in series (
article 432 of the this Code), the buyer has the right in respect of this part of the goods to
exercise the rights provided in paragraph 1 of this Article.
3. In the case where the seller of the goods of improper quality was not its manufacturer,
the requirements for replacement or free removal of defects may be brought on the buyer's
choice to the seller or the manufacturer.
4. The rules of this Article shall apply, unless otherwise established by the this Code or
other legislation.
Article 429. Material Defects for which the Seller Bears Responsibility
1. The seller shall be responsible for defects of the goods if the buyer can prove that they
have arisen before the transfer to the buyer or for reasons that have arisen before that moment
.
The seller shall be responsible for defects of the sold goods and in the case if he (she) did
not know about them. The agreement to release the seller from liability or its limitation is not
valid.
2. In respect of the goods for which the seller provided the guaranteed quality, and the
seller shall be responsible for defects of goods, unless he (she) proves that the defects in the
goods arose after their transferring to the buyer as a result of the breach of the rules regarding
the usage of the goods by the buyer or its storage or actions of third parties or force majeure.
Article 430. Terms of Detection the Defects in the Transferred Goods
1. Unless another is not provided by legislative acts or contract, the buyer has the right to
bring claims arising from the defects of goods that are found in the terms, which are
established in this Article.
2. If the goods do not have warranty period or expiration date, requirements related to
defects in the goods may be brought by the buyer, in the case if the deficiencies in the sold
goods were found within a reasonable period of time, but within two years from the date of
transfer of the goods to the buyer, if longer terms are not set by legislative acts or contract.
Deadline for identifying defects in the goods, which are transported or sent by mail, is
calculated from the day of receipt of the goods at the place of destination.
3. The buyer shall be entitled to bring claims arising from defects of goods, if the goods
have warranty period and defects are found within this period.
In the case, where the component parts in the contract is quarantined for a shorter duration
than the main product, the buyer shall be entitled to make claims about the shortcomings of
the component parts, if they are found within the warranty period on the main product.
If the component of the product is installed in the contract a warranty period longer than
the warranty period for the main product, the buyer shall be entitled to make a claim about the
shortcomings of the product, in the case if the deficiencies in the component product are
found within the warranty period on it, regardless of the expiration of the warranty period on
the main product.
4. According to the goods, which the expiry date has been set, the buyer is entitled to
make a claim about the shortcomings of the goods if they are detected during the expiry day
of the product.
5. In cases where the contract warranty period is less than two years and material defects
are found by the buyer after the expiration of the warranty period, then within two years from
the date of transfer of the goods to the buyer, the seller shall be liable if the buyer proves that
the material defects occurred before the transfer of goods to the buyer or for reasons that have
arisen so far.
Article 431. Completeness of the Goods
1. The seller must transfer the goods to the buyer which are conformed to terms of the
contract on completeness.
2. If the contract is not defined completeness of the goods, the seller must transfer goods
to the buyer, the completeness of which is determined by the business practice or another
specified requirements.
Article 432. Set of Products
1. If the contract provides for the seller’s obligation to transfer a certain set of goods in
the set (set of products) to the buyer, the obligation is considered to be executed since the
moment of transferring all goods included in the set.
2. Unless another is provided by the contract or follows from the nature of the obligation,
the seller is obliged to transfer all the goods included in the set to the buyer, at the same time.
Article 433. Consequences of the Transfer of Products on Incomplete Set
1. In the case of transferring incomplete goods (Article 431 of this Code), the buyer may,
at his (her) discretion to demand from the seller:
1) a proportional reduction of the purchase price;
2) the re-supply of goods within a reasonable time;
3) a replacement of the incomplete goods to complete;
4) failure to perform the contract and return the amount of money paid for the goods.
2. Consequences provided in paragraph 1 of this Article shall also apply in the case of
seller’s violation of obligations on transferring a set of products to the buyer (Article 432 of
this Code), unless another is provided by law or contract or follows from the nature of the
obligation.
Article 434. Tare and Packaging of Goods
1. Unless another is provided by the contract or follows from the nature of the obligation
or the nature of the goods, the seller is obliged to transfer the goods in the tare and (or)
package.
2. If the contract does not specify requirements for tare and packaging, the goods must be
contained or packaged in the usual manner for such goods or, in the absence of it, should be
done in the method for preservation of the goods of this under normal conditions of storage
and transportation.
3. If legislation is provided with mandatory requirements for tare and (or) packaging, the
seller, who engaged in entrepreneurial activity, shall be obliged to transfer the goods in the
container and (or) package, which respond to these regulatory requirements.
Article 435. Consequences of Transferring the Goods Without Tare and (or) Packaging and (or)
Improper Tare and (or) Packaging
1. In the case, when goods which require containing and (or) packaging are transferred to
the buyer without containing and (or) packaging or improper containing and (or) packaging,
the buyer has the right to require the seller to contain and (or) pack the goods appropriately or
replace improper goods and (or) packaging, unless the contract, the nature of the obligation or
the nature of the goods stipulate otherwise.
2. Instead of presenting the requirements specified in paragraph 1 of this Article to the
seller, the buyer shall be entitled to present to him (her) any other requirements arising from
the transfer of inadequate quality goods (Article 428 of this Code).
Article 436. Notice to the Seller about the Improper Execution of the Contract
1. The buyer must notify the seller on breaching of the contract on the number, range,
quality, completeness, containing and (or) packaging of the goods within the period
prescribed by legislative acts and otherwise, normative legal acts, or contract, and if the term
is not set, within a reasonable time after breaching the terms of the contract, which is found
on the basis of the nature and destination of goods.
2. In case of non-execution of obligations under paragraph 1 of this Article by the buyer,
the seller has the right to completely or partially refuse to meet the requirements of the buyer,
if he (she) shall prove that late notice is caused inability to respond to the requirements of the
buyer or led to the seller disproportionate costs in comparison with those, which he (she)
would have occurred if he (she) was timely notified on breaching of the contract.
3. If the seller knew or should have known that the goods, which are transferred to the
buyer do not meet the requirements of the contract before, he (she) shall not be entitled to rely
on the buyer's failure to perform obligations under paragraph 1 of this Article.
Article 437. The Buyer’s Responsibility to Take the Goods
1. The buyer must accept the goods transferred to him (her) by the seller, except the cases,
where in accordance with the rules of this chapter, he (she) shall have the right to require
replacement of the goods or cancel the contract.
2. Unless another is provided by legislation or contract, the buyer is obliged to take
actions, which in accordance with the usual requirements are necessary on his (her) part to
ensure the transfer and receipt of the goods.
3. In cases, where the buyer in violation of the legislation or contract does not accept or
refuse to accept the goods, the seller shall be entitled to require recipient of the goods or
cancel the contract from the buyer.
Article 438. The Price of the Goods
1. The buyer is obliged to pay costs under the contract, or, if it is not provided for and
cannot be determined by the contract, on the basis of its terms, at a price determined in
accordance with the rules of Article 385 of the this Code, and to make actions on his (her)
own expense, which according to the legislation, contract or usual requirements are necessary
to make the payment.
2. When the price is set depending on the weight of the goods, it shall be determined by
the net weight, unless another is provided by the contract.
3. If the contract provides that the price of the goods is changed depending on the
indicators for the price of the product (cost, expenses, etc.), but does not define a way to
revise the prices, price shall be determined on the basis of the ratio at the time of conclusion
of the contract and at the time of the execution of the obligations on transfer of the goods. In
the case of delay the obligation to transfer goods by the seller, the price shall be determined
on the basis of the ratio at the time of conclusion of the contract and on the day of transfer the
goods provided by the contract, or if this date is not defined, on the day determined in
accordance with Article 277 of this Code.
The rules provided in this paragraph shall be applied, unless another is provided by this
Code and other legislative acts, or followed from the nature of the obligation.
Article 439. Payment for Goods

1. If the terms of the contract and legislative acts do not obligate to pay the price for a
certain period of time, the buyer after the transfer of the goods or documents for this goods
shall be obliged to pay it without delay.
2. If the contract does not provide the installment payment for the goods, the buyer is
obliged to pay the seller the amount of total price of transferred goods.
3. If the buyer does not pay for transferred goods in accordance with the contract, the
seller has the right to demand payment of the goods and the penalty payment for the use of
other people's money (Article 353 of this Code).
4. If the buyer is in breach of contract, refuses to accept and pay for the goods, the seller
may choose to ask for payment of goods or cancel the contract.
5. In cases where the seller according to the contract shall be obliged to transfer the buyer,
except unpaid another goods, he (she) is entitled to suspend the transfer of those goods until
full payment of all previously transferred goods, unless another is provided by legislative acts
or contract.
Article 440. Advance Payment for Goods
1. In cases, where the contract provides the buyer's obligation to pay the price in full or in
part before the transfer of goods (advance payment) by the seller, the buyer must make
payment within the period stipulated in the contract, and if the term of the contract did not
provide it within the period determined in accordance with Article 277 of this Code.
2. In the case of non-execution of the obligation to pre-payment according to the contract
by the buyer, the rules are provided in Article 284 of this Code.
3. In cases where the seller, who has received the amount of advance payment, does not
perform his (her) duties on transferring the goods within the prescribed period (article 409 of
this Code), the buyer has the right to demand the transfer of the paid goods or refunding of
the advance payment for the goods, which the seller has not transferred.
4. If the seller fails to perform the obligation to transfer pre-paid goods and another is not
provided in the contract of sale, the forfeit to the amount of the advance payment shall be paid
in accordance with Article 353 of this Code, from the day when transfer of goods are made
under the contract and before the day of transfer of the goods to the buyer or return the
amount paid in advance to them. A contract may provide the seller’s obligation to pay the
penalty to the amount of the advanced payment from the date of receipt of this amount.
Article 441. Payment for Goods Sold on Credit
1. In cases, where the contract provides for payment of the goods after a certain period of
time after its transferring to the buyer (sale of goods on credit), the buyer shall make payment
within the period provided by the contract, and if the term of the contract is not provided it,
within the period determined in accordance with Article 277 of this Code.
2. In the case of non-execution of the obligation on transferring goods by the seller, rules
are provided for in article 284 of the Code.
3. In cases, where the buyer, who has received the goods, does not perform the obligation
to pay for it within the period provided in the contract, the seller has the right to require the
payment for transferred goods or returning the unpaid goods.
In cases, where the buyer do not execute the obligation to pay for transferred goods within
the contract period and another is not provided by this Code and the contract, the forfeit on
the overdue amount is payable in accordance with Article 353 of this Code from the date
when the goods should have been paid and until the date of payment for the goods by the
buyer.
4. The contract may provide the buyer's obligation to pay a forfeit to the amount which
correspond to the price of goods, beginning from the day of the transferal of goods by the
seller.
5. Sale of goods on credit is performed at a price in effect on the day of the sale.
Subsequent change of prices on sold in credit goods shall not be recalculated, unless another
is provided by legislative acts or contract.
Article 442. Payment by Installments on the Sale of Goods in Credit
1. The contract for the sale of goods on credit may provide an installment payment.
Contract for the sale of goods on credit with the condition on the installment payment is
considered to be concluded, when in it, along with other essential terms of the contract are
provided the sale, the price, the order, terms and amount of payments.
2. When a buyer does pay for the goods, which sold on credit within the contract period,
the seller, unless another is provided by the contract, shall be entitled to cancel the contract
and demand the return of sold goods, except in cases where the amount of received payments
from the buyer, more than half the price of goods.
Article 443. Goods Insurance
1. The contract of sale may provide the seller’s or the buyer’s obligation to insure the
goods, unless another is provided by legislative acts.
2. In cases, where the party, who is obliged to insure the goods, does not provide
insurance in accordance with the terms of the contract, the other party shall have the right to
insure the goods and require from the obligated party the compensation of insurance costs or
cancel the contract.
Article 444. Preservation of the Ownership Right on Goods for the Seller
1. In cases, where the contract provides that the ownership of the goods is only transferred
to the buyer until the payment of goods or other circumstances, The buyer shall not be
entitled to dispose of the goods, or dispose of them in any other way, until the ownership of
goods is transferred to him (her), unless another is provided by legislative acts or contract or
followed from the purpose and characteristics of the goods.
2. In cases, when the transferred goods shall not be paid within the period provided by the
contract or other conditions have not been met, under which the ownership right passes to the
buyer, the seller shall be entitled to require the return of goods from the buyer, unless an
alternative arrangement is provided by the contract.
Paragraph 2. Retail sale
Article 445. Contract of Retail Sale
According to the contract of the retail sale, the seller, who carries out entrepreneurial
activity for the sale of goods, shall be obliged to transfer goods to the buyer, which are
usually intended for the personal, family, household or other use and are not related with
business activities.
Retail sale contract is public (Article 387 of this Code).
Article 446. The Form of the Retail Sale Contract
Retail sales contract is considered to be concluded in the proper form, from the date of the
seller’s issue of a cash or sale receipt or other document confirming the payment to the buyer,
unless another is provided by legislative acts or by the contract of retail sale, including the
terms of forms or other standard forms, where the buyer is joined (Article 389 of this Code).
If the buyer does not have these documents, he (she) shall not be deprived from the
possibility to refer to the testimony in support of the conclusion of the contract and its terms.
Article 447. Public Offer of Goods
1. Exhibition of goods, demonstration of their samples or giving information about the

sold goods (descriptions, catalogs, photos, etc.) at the place of sale is a public offer, regardless
of whether the price and other terms of the contract of sale are specified, except in the case
where the seller is clearly demonstrates that the goods are not intended for sale.
2. The offer of goods specified in advertising, catalogs and other descriptions of the goods
, which is addressed to the general public in the inappropriate place for the sale of goods and
if it does not contain the essential terms of the contract of sale, shall not be recognized as a
public offer.
Article 448. Submission of Information about the Goods to the Buyer
1. The seller must provide the buyer with the necessary and accurate information about
the goods offered for selling. This information must meet the requirements specified by
legislative acts and requirements, which are usually required in retail trade to the content and
presentation of this information.
2. The buyer has the right to inspect the goods, and if it is possible due to the nature of the
goods and is not contrary to the rules, which are adopted in the retail sector, require in his (her
) presence to test or demonstrate the usage of the goods.
3. The seller, who does not provide the buyer with an opportunity to obtain relevant
information about the goods shall be responsible for the material defects in the goods arising
after the transferring of goods to the buyer, and against which the buyer can prove that they
have arisen due to the lack of available information.
Article 449. Contract with the Condition of the Buyer’s Acceptance of Goods Within a Certain
Time
1. The parties may conclude a contract with a condition of acceptance of goods in a

certain contract period by the buyer, and during which the goods cannot be sold to another
buyer.
2. Unless another cause is provided by the contract, the buyer's failure to appear or to
perform other necessary actions to take goods in a certain contract period may be considered
by the seller as a buyer’s failure to perform the contract.
3. Additional costs of the seller for the transferring of goods to the buyer in a certain
contract period are included in the price of the goods, unless another is provided by legislative
acts or contract.
Article 450. Sale of Goods on Samples
1. Contract of retail sales can be concluded on the basis of the buyer's awareness with a
sample of the goods (its description, products catalog, etc.) offered by the seller.
2. Unless another is provided by legislative acts or contract, the contract shall be executed
from the moment of delivery the of goods to the place specified in the contract, and if the
place of delivery are not specified in the contract, from the time of delivery of the goods to
the buyer at the place of residence of the citizen or the location of the legal entity.
3. The buyer shall be entitled to refuse to perform the contract before the transfer of the
goods, and subject to compensate to the seller reasonable expenses related to the action for
performance of the contract.
Article 451. Sale of Goods with the Use of Machines
1. In cases, where the sale of goods is carried out using machines, the machine owner is
obliged to inform buyers with information relating to the product (name, quantity, unit price,
etc.), this can be done by placing a sign on the machine or by otherwise informing customers
on the name of the seller (company name), its location, mode of operation, as well as steps
that need to be undertaken in order for the buyer to purchase the goods.
2. The contract is considered to be concluded from the moment, when the buyer takes
actions necessary for receipt of the goods.
3. If the buyer is not provided with the paid goods, the seller shall be obliged to ensure the
immediate delivery of the goods or refund the amount of money paid for this product to the
buyer.
Article 452. Contract with the Condition of the Delivery of Goods to the Buyer
1. In cases, where the contract has been concluded with the condition of delivery of the
goods to the buyer, the seller shall be obliged to deliver the goods to the place specified by
the buyer within a certain contract period.
2. The contract shall be considered to be executed by the seller from the time of delivery
the goods to the buyer, and if his (her) absence, to any person presenting a receipt or other
document showing the contract or to obtain delivery of the goods, unless another is provided
by legislative acts, by contract or followed from the nature of the obligation.
Article 453. Price and Payment
1. The buyer is obliged to pay for the goods at the price advertised by the seller at the time
of conclusion of the contract, unless another is provided by legislative acts or followed from
the nature of the obligation.
2. In cases, where the contract provides advanced payment for the goods (article 440 of
this Code), and the non-payment for the goods by the buyer in a certain contract period shall
be recognized as a buyer's refusal to perform the contract, unless another condition is
provided by agreement of the parties.
3. To contracts for the retail sale of goods on credit, including the terms of installment
payment for the goods, the rules provided in the second part of paragraph 3 of Article 441 of
this Code are not applied.
4. The buyer is entitled to make payment in full at any time within the period specified on
installment payment for the goods in the contract.
Article 454. Exchange of Goods of Proper Quality
1. The buyer is entitled, within fourteen days from the date of transfer of non-food goods,
unless a longer period is not declared by the seller, to exchange the purchased goods on a
similar product of a different size, shape,, color, configuration and so on at the place of
purchase or other places that are declared by the seller, if there are difference in price, the
seller need to be recalculated.
2. In the absence of the necessary goods for the exchange from the seller, the buyer has
the right to return purchased goods to the seller and have their payment reimbursed.
3. The buyer's claim on the exchange or return of the goods shall be satisfied, if the goods
have not been used and are in a saleable condition and there is an evidence of purchasing the
goods from this seller.
4. The list of goods, which are not eligible for exchange or return under the grounds
specified in the present Article, shall be determined in accordance with the procedure
prescribed by law.
Article 455. Rights of the Buyer in case of Sale to Him (Her) of the Goods of Improper Quality
1. The buyer, to whom had been sold the goods of improper quality, and if its
shortcomings have not been specified by the seller, he (she) shall be entitled to carry out the
actions referred to in paragraph 1 of Article 428 of this Code, and the buyer on the demand of
the seller and at his (her) expense must return the received goods of inadequate quality.
2. When returning to the buyer the amount of money paid for the goods, the seller is not
entitled to deduct from it the amount on which the value of the goods has decreased, due to
the total or partial use of the goods, loss of their identity, and etc.
Article 456. Refund of the Price Difference When Replacing the Goods Reducing the Purchase
Price and the Return of Goods of Inadequate Quality
1. When replacing the goods of inadequate quality for the goods of appropriate quality
according to the contract the seller has no right to claim compensation for the difference
between the price of goods specified in the contract, and the price of the goods, existing at the
time of replacement or a court’s decision to replace the goods.
2. When replacing the goods of inadequate quality for a similar, but different in size,,, etc.
appropriate quality goods, the difference between the price of the changed goods at the time
of replacement and the price of the goods, which are transferred to replace the goods of
inadequate quality shall be compensated.
If the requirement of the buyer is not satisfied by the seller, these prices are determined by
the court's decision on replacement the goods.
3. In the event a claim for a discount in the purchase price of goods is made, the price of
the goods at the time of presentation of the claim for the price reduction shall be taken into
account, and if the demand is not satisfied voluntarily at the time of the court's decision to
reducing prices.
4. When returning the goods of improper quality to the seller, the buyer shall be entitled to
demand the compensation on the difference between the price of goods specified in the
contract, and the price of the relevant goods at the time for voluntary satisfaction of the buyer
’s requirements, and if the demand shall not be satisfied freely - at the time of the court's
decision.
Article 457. The Seller’s Liability and Performance Obligation in kind
In the case of non-performance of an obligation by the seller under the retail sale contract,
compensation of loses and payment of the forfeit does not release the seller from the
performance of the obligation in kind.
Paragraph 3. Delivery
Article 458. Delivery Contract
According to the delivery contract, the seller (supplier), who is an entrepreneur, shall be
obliged to transfer to the due dates or time the produced or purchased goods to the buyer for
use in business or for other purposes, which are not related to personal, family, household and
other similar use.
Article 459. Dispute Settlement at the Conclusion of the Delivery Contract
1. If the parties disagreed on certain terms of the contract at the conclusion of the delivery
contract, the party that has offered to conclude the contract and received from the other party
a proposal to harmonize these conditions shall within thirty days of the receipt of the proposal
, if another is agreed to by the parties, adopt measures to harmonize the conditions of the
contract or to notify in writing form the other party of the rejection of its conclusion.
2. The party, which has received the proposals on appropriate terms of the contract, but
not adopted measures to implement the conditions of the delivery contract and not notified the
other party of its in ability to meet the delivery contract, which is provided in paragraph 1 of
this Article, shall be obliged to compensate for losses, caused by the deviation from adhering
to the terms and conditions of the contract.
Article 460. Duration of the Delivery Contract
1. A delivery contract may be concluded for a period of one year, for a period of more
than one year (long-term contract) or for another duration, which is stipulated by the
If the contract validity period is not defined and followed from the nature of the obligation
, the contract is deemed to be concluded after a period of one year.
2. If in the long term delivery contract the quantity of the goods, which are to be delivered
or other terms of the contract are defined for a year or longer, the contract shall establish a
procedure agreed by the parties on appropriate conditions for subsequent periods until the end
of the contract period. If there is no agreement in the contract about the arrangement, the
contract is deemed to be concluded for a year or period defined by the terms of contract.
Article 461. Delivery Periods
1. If the parties provide for delivery of goods in separate lots during the period of the
contract and there is no defined a delivery periods of goods in separate batches (periods of
delivery), the goods shall be delivered in equal parties on a monthly basis, unless another is
followed from the legislative acts the business practice or the nature of the obligation.
2. Along with the definition of the periods for delivery the contract may set a timetable for
the delivery of goods (weekly, daily, hourly, etc.).
3. Early delivery of goods can be carried out with the consent of the buyer.
4. Goods delivered ahead of schedule and accepted by the buyer, shall be counted against
the quantities of goods, that are to be delivered in the next period.
Article 462. The Order of Goods Delivery
1. Delivery of goods is undertaken by the supplier shipment (transfer) of goods to the

buyer under the contract or to the person named in the contract as the recipient.
2. In cases, where the contract provides the right of the buyer to give instructions to the
supplier on the shipment of the goods to the recipients (shipping order), shipping (transfer) of
the goods shall be carried out by the supplier to the recipients specified in the shipping order.
3. The contents of the shipping order and terms of its direction to the supplier are defined
by the contract. If the terms of the direction of shipping order are not provided in the contract,
it shall be sent to the supplier not later than thirty days prior to the delivery period.
4. The buyer’s failure on providing the shipping orders on time shall give to the supplier
the right to refuse from the contract, unless another is provided by the contract.
Article 463. Delivery of Goods
1. The goods are delivered by the supplier on shipping them by transport, which is
provided in the contract, and on the conditions stipulated in the contract.
2. If the contract is not determined what of transport or on what conditions they are
delivering, the right to choose the mode of transport or determining the conditions of delivery
of goods belongs to the supplier, unless another is followed from the legislation, the business
practice or the nature of the obligation.
Article 464. Compensation for Incomplete Delivery of Goods

1. Supplier, who allowed to deliver incomplete goods in a separate period of delivery,
shall be obliged to compensate for an outstanding number of goods in the next period (periods
) during the term of validity of the contract, unless another is provided by the contract.
2. Under a long-term contract, an outstanding number of goods, which are not delivered
on a separate period of delivery, shall be compensated in the next period (periods) within the
year in which is allowed under-delivery of goods, unless another is provided by the contract.
3. In the case, where the supplier is shipping the goods to several recipients, who specified
in the contract or in the shipping orders, the goods, which are delivered in excess of the
quantity to a single recipient, provided in the contract or in the shipping order, do not count in
covering of shortages of other recipients and do not fulfill the supplier’s obligations to them,
unless another specification is provided in the contract.
4. The buyer may, by notice to the supplier, refuse acceptance of the goods for which the
delivery date has expired, unless another provision is provided in the contract. The buyer is
obliged to accept and pay for the goods which are delivered until the supplier’s notification.
Article 465. Assortment of Goods for Compensation of Incomplete Delivery
1. The range of goods which is subject to short supply replenishment is determined by

agreement of the parties. If there is no agreement, the supplier shall be obliged to compensate
for the shortfall of goods in the period in which the shortfall was made.
2. Delivery of the goods of one in more quantity than specified in the contract, shall not
be sufficient to compensate delivery of goods of another belonging to the same order, and
shall be subject to completion, except the case, where delivery is made with the prior written
consent of the buyer.
Article 466. Acceptance of the Goods by the Buyer
1. The buyer (recipient) is obliged to take all necessary actions to ensure the receipt of the
goods supplied under the delivery contract.
2. The goods adopted by the buyer (recipient) must be inspected by him (her) at the period
of time determined by legislative acts, the delivery contract or business practices.
The buyer (recipient) shall at the same time check the quality and quantity of the goods in
the order established by legislation, contract or business practices, and the supplier shall be
immediately notified in writing about the nonconformity or deficiencies of goods.
3. In the case, where the goods are delivered by a shipping company, the buyer (recipient)
shall verify the conformity of the goods by the data specified in the transport and
accompanying documents, as well as to take the goods from the delivery company in
compliance with the rules stipulated by legislative and other normative legal acts regulating
the activities of transport.
Article 467. Safekeeping of Goods Not Accepted by the Buyer

1. When a buyer (recipient), in accordance with legislative acts, or the delivery contract,
refuses to accept the goods dispatched by the supplier, he (she) is obliged to ensure the safety
of this product (safekeeping) and shall promptly notify the supplier.
2. The supplier shall collect the goods, having been accepted by the buyer (recipient) in
the meantime for their safekeeping, or dispose of them within a reasonable period of time.
If the provider does not collect the goods in this period of time, the buyer is entitled to sell
the goods or return it to the supplier.
3. The necessary costs incurred by the buyer (recipient) in connection with the adoption of
the goods for safekeeping, the sale of goods or the return to the seller, shall be compensated
by the supplier.
The proceeds from the sale of the goods shall be forwarded to the supplier with the
deduction of the costs incurred by the buyer.
4. In cases, where the buyer without basis established by legislative acts or contract does
not accept the goods from the supplier or denies his acceptance of the goods, the supplier has
the right to demand payment from the buyer for the goods.
Article 468. Inspection of the Goods (Sampling)
1. The delivery contract may provide for the buyer’s receipt of the goods at the location of
the supplier.
2. If the period of sampling is not established by the contract, the selection of the goods of
the buyer (recipient) should be carried out within a reasonable period after the supplier’s
notification on readiness of the goods.
3. When the delivery contract provides that the buyer chooses his selection of goods in the
location of the supplier, the buyer shall be obliged to inspect the goods at the occasion of their
transfer, unless another provision is provided by legislative acts or followed from the nature
of the obligation.
4. If the buyer (recipient) does not make a choice of goods within the delivery contract
period, and in absence of it - within a reasonable period after the notification of readiness of
the goods, the supplier shall be given the right to withdraw from the contract or to require the
buyer to pay for the goods.
Article 469. Payments for the Delivered Goods
1. The buyer shall pay for the supplied goods in compliance with the order and the form
of payment specified in the contract. If an agreement of the parties does not specify the order
and form of payment, the calculations shall be carried out by the payment orders.
2. If the contract provides for the delivery of goods in parts, which together make up a kit
for a single article, the buyer's payment shall be made after shipment (sample) of the last part
of the kit, unless another provision is provided by the contract.
3. If the contract provides that the payment for the goods is carried out by the recipient (
the payer) and the last unreasonably refused to pay or failed to make payment for the goods
within the contract period, the supplier has the right to demand payment for the delivered
goods from the buyer.
Article 470. Tare and Packaging
1. Unless another is provided by the contract, the buyer (recipient) must return the
provider returnable tare and means of packaging in which the goods are supplied, in the
manner and within the period of time prescribed by legislative acts.
2. Other tare and packaging shall be returned to the supplier only in the cases provided by
the contract.
Article 471. The Consequences of the Delivery of Goods of Substandard Quality
1. The buyer (recipient), who was delivered the goods of substandard quality, shall be
entitled to raise requirements under Article 428 of this Code, except in cases, when the
supplier, who has received a notification of the buyer on defects of the delivered goods
immediately replace the delivered goods to the goods of proper quality.
2. The buyer (recipient) who is selling the delivered goods at retail has the right to
demand a replacement for goods of inadequate quality, which have been returned his
consumers, within a reasonable time, unless an alternative provision is provided by the
contract of supply.
Article 472. The Consequences of the Delivery of Incomplete Sets of Goods
1. The buyer (recipient), who delivered the goods with breach the conditions of delivery
contract, the requirements of legislation or the usual requirements for re-supply, shall have
the right to raise the requirements to the supplier under Article 433 of this Code, except the
case, when the supplier, who has received the buyer’s notification on incomplete delivery of
the delivered goods, shall immediately complement the goods or replace them to the complete
goods.
2. The buyer (recipient) who is selling the goods in retail, shall have the right to demand a
replacement of incomplete goods returned by the customer to the original supplier within a
reasonable time, unless another is provided by the contract of supply.
Article 473. Rights of the Buyer in the case of Underdelivery of the Goods, Failure to Satisfy the
Requirements of Defects of the Goods or Re-supply of the Goods
1. If the supplier did not deliver the quantity specified or did not comply with the buyer's
claims for replacement of goods of inadequate quality or re-supply of goods within the
prescribed period, the buyer has the right to purchase the undelivered goods from other
persons, with the allocation of all necessary and reasonable expenses for the acquisition of the
provider.
The buyer’s costs for purchasing goods from other persons in the case of supplier’s
under-delivery or failure to re-supply defective goods shall be regulated by the rules provided
in paragraph 1 of Article 477 of this Code.
2. The buyer (recipient) shall have the right to refuse payment for goods of inadequate
quality and incomplete goods, if such goods have been paid - to demand the paid sum until
the repair of deficiencies or the replacement of goods.
Article 474. The Forfeit for Short Delivery or Late Delivery of the Goods
If established by legislative acts or the contract, forfeit for short delivery or late delivery
of the goods may be charged from the date specified by the contract to the date of the actual
performance of the obligation, unless another procedure for forfeit is not provided by
legislation or contract.
Article 475. Repayment of Uniform Obligations Under Several Delivery Contracts
1. In cases, where the supply of similar goods delivered by the supplier at the same time
for several delivery contracts to the buyer is established, if the number of delivered goods is
insufficient to meet the obligations of the supplier under all contracts, the delivered goods
shall be counted against the performance of the contract indicated by the supplier in the
implementation of the delivery or immediately after delivery.
2. If the buyer has paid to the supplier for similar goods, received in several delivery
contracts and the amount of the payment is insufficient to repay the buyer's obligations under
all of the contracts, the paid amount must be counted against the performance of the contract
indicated by the buyer for the payment of goods or immediately after the payment.
3. If the supplier or the buyer does not exercise the rights granted to them, respectively in
items 1 and 2 of this Article, the performance of an obligation, which is included in the
repayment of obligations under the contract for which the term came before. If the term of
obligations under several contracts occur at once, the granted execution is counted
proportionally in repayment of obligations under all the contracts.
Article 476. Unilateral Non-performance of the Contract
1. Unilateral non-performance of the contract (in whole or in part) or its unilateral

changing is allowed in the case of a fundamental breach of contract by one party (the second
part of paragraph 2 of Article 401 of this Code).
2. Breach of contract by the supplier is significant in the following cases:
1) delivery of the goods of inadequate quality with deficiencies that cannot be resolved
within a reasonable period for the buyer;
2) repeated violation of the terms of delivery.
3. Breach of contract by the buyer is expected to be significant in the following cases:
1) repeated violations of the terms of payment of the goods;
2) repeated non-acceptance of the goods.
4. Agreement of the parties may provide for other reasons of the unilateral refusal to
perform the contract or its unilateral change.
5. Delivery contract shall be terminated or amended upon receipt of notification by the
other party to change or unilateral refusal to perform the contract, unless another period of
termination or modification of the contract is not provided in the notification or determined
by agreement of the parties.
Article 477. Calculation of Damages in Termination of a Contract
1. If within a reasonable time after the termination of the contract, due to breach of an
obligation by the seller, the buyer has bought goods in replacement under the contract from
another person on a high, but reasonable price, he (she) can bring to the seller a claim for
damages as the difference between the price fixed in the contract and the price in the
substitute transaction.
2. If within a reasonable time after the termination of the contract, due to breach of
obligations by the buyer, the seller, who sold the goods to another person at a lower than
provided for by the contract, but a reasonable price, the seller may claim for damages as the
difference between the price fixed in the contract and the price in the substitute transaction.
3. If, after termination of the contract on the grounds provided by paragraphs 1 and 2 of
this Article, is not made a deal to replace the terminated contract and this product has the
current price, the party may bring a claim for damages as the difference between the price
fixed by the contract and the current price at the time of termination of the contract.
The current price is the price, which is usually charged under similar circumstances for
the same goods at the place, where the transfer of the goods must be made. If there is no
current price at this location, can be used that current price, which is used elsewhere, which
could serve as a reasonable substitute for the difference in the cost of transporting the goods.
4. Meeting the requirements of paragraphs 1-3 of this Article shall not discharge the party,
who failed to fulfill the obligations of other compensation of damages, which is caused to the
other party, in accordance with paragraph 4 of Article 9 of this Code.
Paragraph 4. Contraction (agricultural procurement contract)
Article 478. Contractual Agreement
1. According to the contractual agreement the producer of agricultural products shall

transfer agricultural products, which are grown (produced) by him (her) to the purvey of a
person who engaged in the purchase of such products for processing or sale.
2. To the relations in the contractual agreement, which are not regulated by the rules of
this paragraph, shall apply the rules of the delivery contract (Article 458-477 of this Code).
Article 479. Duties of Purveyor
1. Unless another is provided by the contractual agreement, the purveyor must take
agricultural products from the manufacturer at the site of its location and export it onwards.
2. In the case, where the agricultural products adopted at the place of purveyor, or other
indicated place, the purveyor shall not be entitled to refuse acceptance of agricultural products
in accordance with the contractual agreement and agricultural products must be transferred to
the purveyor according to the terms of the contract.
The purveyor shall provide a precise definition of the quality of products according to the
standards.
3. Contractual agreement may provide for an obligation of the purveyor, who is
processing agricultural products, to return to the manufacturer upon his (her) request waste
from processing of agricultural products with a payment of the price determined by the
contract.
Article 480. Responsibilities of the Producer of Agricultural Products
Agricultural producer shall be obliged to transfer to the purveyor grown (produced)

agricultural products in quantity, quality and assortment specified in the agreement of
contracting.
Article 481. Liability of the Producer of Agricultural Products
The producer of agricultural products, who has not performed the obligation or
inappropriately performed the obligation shall be liable if he (she) guilty.
Paragraph 5. Energy supply
Article 482. Energy Delivery Contract
1. According to the energy delivery contract, the energy provider is obliged to provide the
subscriber (user), with the energy through the connected network and the subscriber agrees to
pay for the energy, and comply with regime of its consumption under the contract, to ensure
the safe operation of the energy networks and serviceability of devices and equipment, related
to energy consumption.
2. Energy delivery contract is public (Article 387 of this Code).
3. Terms and conditions of energy supply, which are binding on the parties, shall be
determined in accordance with this code and other legislative acts.
Article 483. Conclusion and Extension of the Energy Delivery Contract

1. Energy delivery contract entered into contract with a Subscriber if he (she) has the
necessary equipment, which is connected to the power supply networks in the order
established by the legislation of the Republic of Kazakhstan.
2. In cases, where a subscriber under the contract of energy supply is a citizen, who is
using energy for domestic consumption, the contract is considered to be concluded from the
time of the first actual connection of the subscriber in the prescribed manner to the connected
network.
Unless another is provided by agreement of the parties, such contract is concluded for an
indefinite period and may be amended or terminated on grounds provided by Article 490 of
this Code.
3. In the absence of a statement by one of the parties to terminate or amend the energy
delivery contract at the end of the term, it is considered to be extended for the same period of
time and under the same conditions as were provided by the contract. With the extension of
the contract for the new term, its terms and conditions may be amended by agreement of the
parties.
4. If one of the parties before the end of the period of validity of the contract makes
proposals for the conclusion of a new contract, the relationships between the parties are
governed by the previous contracts before signing a new contract.
January 8, 2003 № 376.
Article 484. The Amount of Energy
1. The energy provider is obliged to give the subscriber the energy through the connected
network in the amount specified in the contract, and in compliance with the regime, agreed by
the parties. The amount of energy supplied by the power supply organization and the energy
accepted by subscriber shall be determined in accordance with accounting data about its
actual consumption.
2. The contract may provide the subscriber’s right to change the amount of received
energy specified in the contract, subject to compensation of the costs incurred by the power
supply organization in connection with securing the power supply, which is not stipulated by
the contract quantity.
3. In cases, where the subscriber under the energy delivery contract is a citizen, who is
using energy for domestic consumption, he (she) is entitled to use the energy in the required
amount to him (her). The amount of energy, which is supplied by the power supply
organization and accepted by the subscriber shall be defined by the use of energy meters, and
in their absence - by calculation.
Article 485. The Consequences of a Breach of the Contract on the Amount of Energy
If the power supply organization filed through the connected network to the subscriber
less energy than provided in the contract shall be applied the rules provided in Article 419 of
this Code, unless another is provided by legislation, contract or followed from the nature of
the obligation.
Article 486. Energy Quality
1. Quality of the energy supplied by the power supply organization shall meet the
requirements set by State standards and other normative documents for standardization or by
provisions in the contract.
2. In the event that the energy provider breaches the requirements for the quality of energy
, the rules provided in Article 491 of this Code shall be supplied, unless another provision is
provided by legislation, contract or followed from the nature of the obligation.
publication).
Article 487. Responsibilities of a Subscriber for Maintenance and Operation of Networks, Devices
and Equipment
1. The subscriber shall be obliged to ensure proper technical condition and safety of
existing energy networks, devices and equipment, comply with the established regime of
energy consumption, as well as immediately report the power supply organization on
accidents, fires, failures of energy meters and other violations that occur when using energy.
2. In cases, where the subscriber under the energy delivery contract is a citizen, who is
using energy for domestic consumption, the duty to ensure the proper technical condition and
safety of energy networks, as well as metering of energy consumption lies on power
supplying organization, unless another is provided by legislative acts.
3. Requirements for technical condition and operation of the energy networks, devices and
equipment are determined by law.
4. The subscriber is required to provide workers of energy providers with devices for
monitoring the technical condition and safety of the energy networks, devices and equipment.
Procedure for monitoring is carried out in compliance with the legislation.
Article 488. Payment for Energy
1. Energy payment is made for the actual amount of energy determined according to the
indicators of meters, and in their absence or temporary damage according to, except for the
automated commercial accounting of energy systems.
2. Settlement procedure for energy is determined by legislation or agreement of the parties
.
04.07.2012 №25-V (shall be enforced upon expiry of ten calendar days after its first official
publication).
Article 489. Transfer of Energy by a Subscriber to Another Person
1. The Subscriber can transfer energy, accepted by him (her) from the power supply
organization to another person through the connected network (subscriber) only with the
consent of the power supply organization.
2. To the contract on the transfer of energy to the subscriber by the subscriber shall apply
the rules of this Article, unless another is provided by legislative acts or contract.
3. The subscriber remains responsible to the energy provider in the case of energy being
transferred to the subscriber, unless another provision is provided by legislative acts.
Article 490. Changing and Termination of the Contract
1. Outage, termination or limitation of energy supply are permitted by agreement of the

parties, except in the case, when the poor condition of power plants of the provider, which is
certified by the body of State Energy supervision connected to the electricity networks
threatens the life and safety of citizens. The power supply organization should warn the
subscriber about the outage in feed, termination or limitation of energy supply in advance.
2. Outage, termination or limitation of energy supply without the consent of the subscriber
and without warning him (her), but with immediate notification of him (her) may be allowed,
if it is necessary, to take urgent measures to prevent or eliminate accidents on the system of
power supply.
3. Outage, termination or limitation of the energy supply for continuous cycle production
is not allowed and regulated by law.
4. In cases, when the subscriber under the energy delivery contract is a citizen, who is
using energy for domestic consumption, he (she) shall be entitled to cancel the contract
unilaterally by providing a notice to the power supply organization and full payment for the
used energy.
5. In cases, when the subscriber under the energy delivery contract is a citizen, who is
using energy for domestic consumption, the power supply organization shall have the right to
withhold performance of the contract unilaterally, due to non-payment by the subscriber for
the used energy by providing the subscriber one month’s notice before ceasing energy supply.
Article 491. Liability Under the Contract of Energy Supply
1. In cases of non-performance or improper performance of obligations under the energy

delivery contract, power supply organization and the subscriber shall be obliged to
compensate the actual damage (paragraph 4 of Article 9 of this Code).
2. If, in the case of the regulation of energy consumption, which is carried out on the basis
of the legislation, was allowed an outage in the power supply to the subscriber, the power
supply organization shall be liable for nonperformance or improper performance of
contractual obligations in the presence of its guilt.
Article 492. Application of the Rules of Energy Delivery Contract to Other Relations of Supply
Through Connecting Network
1. For the relations on the supply of heat energy through the connected network the rules
of electricity shall apply, unless alternative relations is provided by legislation.
2.To the relations on supplying through the connected network gas, oil and oil products,
water and other goods shall apply the rules of this electricity, unless another is provided by
legislation, contract or followed from the nature of the obligation.
Paragraph 6. Sale of Enterprise
Article 493. The Enterprise Sale Contract
1. According to the enterprise sale contract, the seller is obliged to transfer into the
ownership of the buyer the enterprise on the whole as a property complex (Article 119 of this
code), except for the rights and responsibilities, which the seller is not entitled to transfer to
other persons.
2. Rights and obligations in relation to employees of the company shall pass from the
seller to the buyer of enterprise in the manner prescribed by labor legislation of the Republic
of Kazakhstan.
3. The right to use a company name, trademarks, service marks and other means of
individualization of the seller and his (her) production, performed works or services, also the
rights to use means of individualization, which are belonged to the seller on the basis of a
license shall pass to the buyer, unless an alternative provision is provided by the contract.
4. Rights, which are obtained on the basis of the special permission (license) to engage in
relevant activities cannot be transferred to the buyer of the company, unless another is
provided by legislative acts. Introduction into obligations, which are passed by the enterprise
sale contract and the performance of which by the buyer is impossible in the absence of the
special permission (license), shall not exempt the seller from the respective obligations to
creditors. By default the buyer and the seller are jointly liable to the creditors.
5. Features of the sale of state enterprises, where the company acts as a single property
complex, are determined by the legislation of the Republic of Kazakhstan on state property.
15.05.2007 № 253; dated 01.03.2011 № 414-IV (shall be enforced from the date of its first
Article 494. Form of the Enterprise Sale Contract
Footnote. The Title of Article 494 is in the wording of the Law of the Republic of
1. The enterprise sale contract is concluded in written form by creating a single document
signed by the parties, with the obligatory annex documents referred to in paragraph 2 of
2. Is excluded by the Law of the Republic of Kazakhstan dated 25.03.2011 № 421 -IV (
Article 495. Establishment of the Structure and Assessment of Enterprise Value that shall be Sold
1. The structure and value of a company that shall be sold, are determined by agreement
of the parties involved , unless another means is provided by legislative acts.
2. The following should be drafted and considered by the parties prior to the signing of
the contract: the inventory, balance sheet, auditor's report on the structure and value of the
company of the audit firm, and a list of all debts (liabilities), included in the structure of the
company, with an indication of the creditors, the nature, size and timing of their requirements.
Property, rights and obligations referred to in these documents shall be transferred by the
seller to the buyer, unless another is followed from Article 493 of this Code and provided by
the contract.
Footnote. Article 495 as amended by the Law of the Republic of Kazakhstan dated May 5,
2006, № 139 (the order of enforcement see Article 2 of the Law of the Republic of
Kazakhstan № 139).
Article 496. Creditor’s Rights in the Sale of Enterprise
1. The party selling the company has an obligation to write to its creditors informing them
of the selling of the company prior to its transfer to the buyer.
2. The creditor, who does not inform the seller in writing about his (her) consent to
transfer the debt, may within three months from the date of receipt of the notification of the
sale of the company, shall require either termination or early performance of obligation and
compensation of damages by the seller, or the recognition of the company's sales contract
invalid in whole or in part.
3. The creditor, who has not been notified on the sale of the company in accordance with
paragraph 1 of this Article, may bring an action to satisfy the requirements of paragraph 2 of
this Article, within a year from the day when he (she) knew or should have known about the
transfer of the company by the seller to the buyer.
4. After the transfer of the company to the buyer, the seller and the buyer are jointly and
severally liable for the debts of the company, which were transferred to the buyer without the
consent of the creditor.
Article 497. Transfer of the Enterprise
1. Transfer of the enterprise to the buyer by the seller is carried out by the transfer act,
which includes data on the structure of the enterprise and notification of creditors about the
sale of the enterprise, as well as information on the identified shortcomings of the transferred
property and a list of property, on which transfer duties are not possible due to its loss.
2. Preparation of the enterprise to transfer, including the preparation and presentation to
the signing of the transfer act, is the responsibility of the seller and shall be made at his (her)
expense, unless another is provided by the contract.
3. The enterprise is considered to be transferred to the buyer from the date of signing of
the transfer act by both parties
From that moment on the buyer enters the risk of accidental loss or accidental damage of
the property which is transferred as part of the enterprise.
Article 498. Transfer of Rights to the Enterprise
Footnote. The title of Article 498 is in the wording of the Law of the Republic of
Kazakhstan dated 25.03.2011 No 421-IV (shall be enforced upon expiry of ten calendar days
1. The right to property, which is part of the enterprise, subject to state registration shall
pass to the buyer from the moment of registration. The right to the rest of the property is
passed from the moment of signing the transfer act by both parties.
2. Is excluded by the Law of the Republic of Kazakhstan dated 25.03.2011 № 421 -IV (
3. In cases, where the contract provides for reservation of the seller’s ownership to the
enterprise, which is passed to the buyer until payment or before the occurrence of other
circumstances, and before the transferring of the rights to the buyer, the buyer has the right to
dispose of property and ownership rights, included in the structure of the enterprise to the
extent, which is necessary for the operation of the activity of the enterprise as a property
complex.
25.03.2011 № 421 -IV (shall be enforced upon expiry of ten calendar days after its first
Article 499. Consequences of the Transfer and Adoption of Enterprise with Disabilities
1. Consequences of the seller’s transfer and the buyer’s acceptance of the enterprise on
the transfer act, which structure is not appropriate by the contract, including the quality of the
transferred goods, shall be determined under the rules provided in Articles 413-415, 419, 422,
428 and 432 of this Code, unless another is not followed from the contract and provided by
items 2-4 of this Article.
2. In cases, where the enterprise is transferred to and accepted by the transfer act, which
provides information about the identified shortcomings of the enterprise and lost property (
paragraph 1 of Article 497 of this Code), the buyer shall be entitled to demand a reduction of
the purchase price of the enterprise, if the right to bring other requirements in such cases is
not provided by the contract.
3. The buyer shall be entitled to demand a reduction of the purchase price in the case of
transferring the enterprise in the debts (liabilities) of the seller, which were not specified in
the contract or the transfer act, unless the seller can prove that the buyer knew about debts (
liabilities) at the time of conclusion of the contract and the transfer of the enterprise.
4. The seller in the case of recipient of the buyer's notice on the shortcomings of the
property, transferred within the enterprise, or the absence of certains of property, which
should be transferred, shall immediately replace the property of inadequate quality or provide
the buyer the missing property.
5. The buyer is entitled to demand in a judicial proceeding dissolution or change of the
sale contract of the enterprise and return of what the parties executed by the contract, if it is
established that the enterprise in view of defects for which the seller is responsible, is not
suitable for the purpose mentioned in the contract of sale and these deficiencies are not
eliminated by the seller on conditions, in the terms and order prescribed in accordance with
this code, legislation or contract or remedial of these defects is impossible.
Article 500. Application to the Enterprise Sale Contract the Rules about the Consequences of the
Invalidity of Legal Transactions and Dissolution and Change of the Contract
The rules of this Code on the consequences of the invalidity of legal transactions and on
the dissolution and change of the sale contract, which is providing for refund or vindication in
kind of received by the contract from one or both of the parties, shall apply to the contract of
sale the enterprise, if such an effect did not significantly violate the rights and the interests of
creditors, sellers and buyers, and others, which are protected by legislation and do not conflict
with the public interest.
Chapter 26. Barter
Article 501. Barter Contract
1. On the barter contract, each party shall transfer into ownership of the other party
economic management, operational control for one product in exchange to another.
2. To the barter agreement shall be applied the rules of the sale contract, whereas it is not
against the rules of this chapter, and the essence of barter. In addition, each of the party
recognized as the seller of goods, which he (she) shall be obliged to transfer and the buyer of
goods, that he (she) shall be obliged to accept in exchange.
3. The provisions of this Chapter shall apply to the exchange of rights (works, services),
unless another means is provided by legislative acts or followed from the nature of the
corresponding obligations.
Article 502. Prices and Costs of a Barter Contract
1. Unless mentioned otherwise in the contract, the exchanged goods are assumed
equivalent, and the costs of their transfer and acceptance are carried out in each case by the
party that carries its obligations.
2. In cases, where, in accordance with the contract exchangeable goods are unequal, the
party, who is obliged to transfer goods, whose price is lower than the price of the goods
offered in exchange, must pay the difference in price immediately before or after the
execution of his (her) obligation to transfer goods, unless another is provided by the contract.
Article 503. Performance of Mutual Obligations to Transfer Goods Under a Barter Agreement
In cases where, in accordance with the contract, the terms of transferring of exchanged
goods are not identical, the performance of the obligation to transfer the goods by the party,
who should transfer the goods after transferring the goods by the other party, shall be applied
the rules on the performance of mutual obligations (Article 284 of this Code).
Article 504. Transfer of Ownership to the Exchanged Goods
Unless the legislation or the contract provides alternative provisions, the right to
ownership of the exchanged goods shall pass to the parties who are acting on a barter
agreement as buyers, at the same time after the party’s execution of obligations to transfer the
goods.
Article 505. Responsibility for the Seizure of Goods Purchased Under the Barter Agreement
The party whose goods, purchased by barter are seized by the third party, may at the
grounds specified in Article 414 of this Code, to require the other party return the goods
received in the Exchange, and in the case of impossibility of obtaining goods in kind - its cost
.
Chapter 27. Donation
Article 506. Donation Contract

1. Under the donation contract one party (the donator) donates transfers or undertakes to
transfer to the other party (the recipient) an item of property or property right (claim) to him(
her)self or to a third person, or releases or undertakes to release him (her) from the property
liability before him (her) or to a third person.
In the presence of the counter transfer of the thing or the rights or counter-obligations, the
contract is not recognized as a donation. To such contract shall apply the rules provided in
2. Promise to donate any item or property right or to release someone from the property
liability (promise of donation) is recognized as a gift contract and binds a person if the
promise made in the proper form (paragraph 2 of Article 508) and has clearly expressed
intention to commit in the future, the donation of a thing or right to a specific person or
release him (her) from the property liability.
Promise to give all his (her) property or part of them, without specifying a particular
object of donation in the form of things and rights or an exemption from obligations is not
valid.
3. Contract providing the transfer of the gift to the recipient after the death of the donor is
not valid.
To this kind of donation shall be applied the rules of this Code on inheritance.
Article 507. Recipient’s Disclamation to Accept the Gift
1. The recipient shall have the right at any time before the transfer of the gift to him (her)
refuse from it. In this case, the donation contract shall be terminated.
2. If a donation contract is concluded in writing, the refusal of the gift must be made in
writing. In the case, where the contract of donation is registered, refusal to accept a gift also is
subject to state registration.
3. If a donation contract is concluded in writing, the donor has the right to demand
compensation from the recipient for actual damages caused by the refusal to accept the gift.
Article 508. Form of a Donation Contract
1. Donation, accompanied by the transfer of the gift to the recipient, can be made orally,
except in the cases provided by paragraphs 2 and 3 of this Article. Transfer of gift is
performed by its presentation, symbolic transfer (handing keys etc.) or delivery of entitling
documents.
2. Contract on donation of movable property must be concluded in writing in the
following cases:
1) the recipient is a legal entity and the value of the gift is more than ten times the
monthly calculation index, established by legislative acts;
2) the contract contains the promise of donation in the future.
In the cases, provided in this paragraph, the donation contract, which is perfected in
speech, is not valid.
Article 509. Prohibition of Donation
Donation is not allowed, except for the usual gifts whose cost does not exceed the ten
times monthly calculation index, established by legislative acts:
1) on behalf of minors and citizens, who are recognized as non-capable, their legal
representatives;
2) health care workers, workers of educational institutions, social protection and other
similar institutions, citizens who are in them for treatment, maintenance or education, spouses
and relatives of these individuals;
3) public servants and their family members in connection with the official position of
public servants or in connection with the performance of their duties.
Article 510. Limitations of Donation
1. The legal entity to whom a thing belongs on the right of economic management or
operative control, shall have the right to present it with the consent of the owner, unless
another is provided by legislation. This limitation does not apply to the usual gifts, whose cost
does not exceed the ten monthly calculation index, established by legislative acts.
2. Donation of property, which is jointly owned, is allowed with the consent of all the
participants of joint ownership in accordance with the rules provided in Article 220 of this
Code.
3. Donation belonging to the donor of the claim to a third party shall be subject to the
rules provided in Articles 339 - 343, 345 and 346 of this Code.
4. Donation through the execution of duties of the recipient before a third person shall be
subject to the rules provided by paragraph 1 of Article 276 of this Code.
Donation through transferring by the donor the debt of recipient before the third party
shall be subject to the rules provided in Article 348 of this Code.
5. The Power of Attorney for a representative of the donation, where the recipient is not
named and not specified as the object for donation, is not valid.
Article 511. Repudiation to Execute the Donation Contract

1. The donor has the right to refuse to perform the contract, containing a promise to
transfer to the recipient in the future property or ownership rights of a property or a promise
to release the recipient from property liability, if after the conclusion of a contract, the
property or family status or the donor’s health has changed so much that performance of the
contract under the new conditions will significantly reduce his (her) life.
2. The donor has the right to refuse to perform the contract, containing a promise to
transfer to the recipient property or ownership rights or a promise to release the recipient of
property liability in the future, on the grounds that gives him (her) the right to cancel the
donation (paragraph 1 of Article 512 of this Code).
3. The donor’s refusal to perform the donation contract on the grounds specified in items
1 and 2 of this article does not give the recipient the right to claim damages.
Article 512. Cancelling the Donation
1. Donor has the right to cancel the donation, if the recipient made an attempt on his (her)
life, the life of any member of his (her) family or close relatives, or intentionally caused
bodily harm to the donor.
In the case of intentional deprivation of the donor’s life by the recipient, the right to
demand the abolition in the court belongs to the heirs of the donor.
2. The donor is entitled to request cancellation the gift by judicial procedure, if the
recipient’s treatment of the gift, which represents to the donor a great non-property value, is
threatening its irretrievable loss.
3. At the request of an interested person, the court may cancel the donation made by the
individual entrepreneur or legal entity in violation of the provisions of the legislation on
bankruptcy, at the expenses of enterprise activities, in the year before the announcement of
such a person, who is declared bankrupt.
4. The contract of donation may be stipulated donator’s right to cancel the donation, if the
recipient will outlive him (her).
5. In case of cancellation of a donation, the recipient must return the gift thing, if it still
exists in nature at the time of cancellation of the donation.
Article 513. Cases in which a Refusal to Perform the Donation Contract and the Cancellation of
Donation is Impossible
The rules on non-performance of the contract of donation (Article 511 of this Code), and
the abolition of donation (Article 512 of this Code) shall not apply to gifts for which the value
does not exceed ten monthly calculation index, established by legislative acts (paragraph 1 of
Article 514. Consequences of Injury Due to the Deficiencies of the Donated Things
Damage to life, health and property of the donated citizen, as a result of deficiencies of
the donated things, shall be compensated by the donor in accordance with the rules provided
by Chapter 47 of this Code, and if it is proved that these defects have arisen before the
transfer of things to the recipient and are not in the range of obvious, the donor, even though
he (she) knew about them, did not warn the recipient.
Article 515. Legal Succession in the Promise of Donation
1. The rights of a recipient, who promised a gift under the donation contract, shall not
pass to his (her) heirs (the successors), unless another is provided by the contract of donation.
2. The duties of the donor, who promised a gift under the donation contract, shall pass to
his (her) heirs (successors), unless another is provided by the contract of donation.
Article 516. Donations
1. Donation is the giving of property or rights for socially useful purposes.

Donations can be made to citizens, therapeutic establishments, educational institutions,
social security institutions and other similar institutions; charitable, scientific and academic
institutions; foundations, museums and other cultural institutions; public and religious
associations; as well as the state and other actors of civil rights referred to in Articles 111 and
112 of this Code.
2. To adopt a donation does not required anyone's permission or consent.
3. Donation of property to a citizen should be, and to the legal entity may be due to the
use of the property by the donor for a specific purpose. In the absence of such conditions,
donation of the property to a citizen is considered to be an ordinary donation, and in other
cases the donated property shall be used by the recipient in accordance with the purpose of
the property.
A legal entity that receives donations, which is set for a specific purpose, shall keep
separate accounting of all transactions for the use of donated property.
4. If the use of the donated property in accordance with the specified purpose of the donor
is impossible due to the changed circumstances, it can be used for other purposes only with
the consent of the donor and, in the case of death of the citizen-donor or liquidation of a legal
entity-donor - by court decision.
5. Use of donated property is not in accordance with the specified purpose of the donor or
changing the assignment in violation of the rules provided by paragraph 4 of this Article, shall
entitle the donor, his (her) heirs or other successor to demand the abolition of the donation.
6. Donations do not apply Article 512 and 515 of this Code.
Chapter 28. Rent and lifetime support of a maintenance

Paragraph 1. General provisions
Article 517. Annuity Contract
1. Under an annuity contract, one party (the recipient of rent) transfers to another party (
payer of rent) to the ownership of a property, and a rent payer agrees in exchange for obtained
property to pay periodically to the recipient the rent in the form of certain sum of money or
the provision of funds for its maintenance in a different form.
2. Under an annuity contract is allowed to establish the obligation to pay rent in perpetuity
(permanent rent) or for the recipient's lifetime rent (lifetime annuity). Lifetime annuities can
be established under the conditions of life of the citizen with the dependent.
Article 518. The Form of Annuity Contract
Annuity contract is subject to notary certification

Article 519. Disposal Of Property For Rent Payment
1. The property, which is disposed for rent payment may be transferred by the payer of
rent into the ownership of the recipient of rent with paying for a fee or for free.
2. In cases, where the annuity contract provides for the transfer of the property for a fee,
to the relations of parties on transferring and payment shall be applied the rules of the sale
contract (Chapter 25 of this Code), and in cases, where such property is transferred for free
shall be applied the rules on the contract of donation (Chapter 27 of this Code), unless another
is provided by the rules of this Chapter and is not contradict to the essence of the contract.
Article 520. Encumbrance Of Real Property By Rent
1. Rent encumbers the right to land, as well as enterprise, building, structure or other real
property, which is transferred under its payment. In case of payer’s disposal to such property,
his (her) obligations under the rent contract transferred to a recipient of property.
2. The person who sent the rent encumbered property, specified in paragraph 1 of this
Article, into the ownership of another person, shall bear subsidiary liability (Article 357 of
this Code) according to the requirements of recipient of the rents arising in connection with
the violation of the annuity contract, unless the this Code, other legislation or a contract does
not provide joint and several liability under this obligation.
Article 521. Ensuring The Payment Of Rent
1. When transferring the payment for rent, the rights to land or other real property, the
rent recipient is responsible for ensuring that the rent payer accrues the right of lien on the
property.
2. An essential condition of the contract, including the transfer of money for rent payment
or other movable property, is a condition that establishes the rent payer’s obligation to
provide security for the performance of these obligations (Article 292 of this Code) or
insurance for the recipient of rent the risk of liability for non-performance or improper
performance of these obligations.
3. Failure of rent payer to fulfill the obligations under paragraph 2 of this Article, as well
as in case of loss or deterioration of the security software to circumstances for which the
recipient does not respond, the rent recipient may terminate the annuity contract and demand
compensation for damages caused by the termination of the contract.
Article 522. Responsibility For Late Payment Of Rent
For delay in the payment of rent the rent payer pays to the recipient the forfeit in the
amount specified in Article 353 of this Code, unless a different amount of the forfeit is set by
the contract.
Paragraph 2. Permanent rent
Article 523. Recipient Of A Permanent Rent
1. The recipients of permanent rent may only be citizens and non-profit organizations, if it
meets the objectives of their activities.
2. Rights of the recipient of rent under the permanent rent contract may be transmitted to
the persons referred to in paragraph 1 of this Article, by assignment of a claim and descend or
legal succession in the reorganization of legal entities, unless another is provided by
Article 524. The Form And Amount Of Permanent Rent
1. Permanent rent is paid in cash in the amount specified by the contract.

2. The contract may provide for payment of rent by providing things, works or services
corresponding to the value of the monetary amount of the rent.
3. Unless another is not stipulated in the contract, the amount of paid rent varies in
proportion to the monthly calculation index, established by legislative acts.
Article 525. Terms Of Payment Of Permanent Rent
Unless another is provided by contract, permanent rent is paid at the end of each calendar
quarter.
Article 526. The Right Of The Payer To Purchase Permanent Rent

1. A permanent rent payer shall be entitled to refuse further payment of rent by its
redemption.
2. Such a waiver shall be valid, in the case if it is declared in writing by the rent payer, not
later than three months before the termination of the rent payment or for a longer period
stipulated in the contract. In this case, the obligation to pay rent shall not stop until the full
amount of the redemption shall not be received by the recipient of rent, unless a different
procedure for redemption is provided by the contract.
3. A condition of the contract to refuse of the permanent rent payer from the right to its
redemption is not valid.
The contract may provide that the right of redemption of permanent rent cannot be
exercised during the lifetime of the recipient of rent or within a period not exceeding thirty
years from the date of conclusion of the contract.
Article 527. Redemption Of Permanent Rent On Demand Of Rent Recipient
The recipient is entitled to demand the redemption of rent by the rent payer in cases where
:
1) rent payer has delayed its payment for more than one year, unless another is provided
by contract;
2) rent payer violated his (her) obligation to ensure the payment of the rent (Article 521 of
this Code);
3) rent payer is declared insolvent or there are any other circumstances, which are clearly
indicated that the rent will not be paid in the amount and terms established by the contract;
4) real property transferred under the payment of rent, are received by the common
property or divided among several persons;
5) in other cases provided by the contract.
Article 528. Redemption Price Of Permanent Rent
1. Redemption of permanent rent, in the cases provided in Articles 526 and 527 of this
Code, is made at a price established by the contract.
2. In the absence of the condition of the purchase price in the contract, under which the
property is transferred for a fee for the rent payment, redemption is fulfilled at the price
corresponding to the amount of annual rent payments.
3. In the absence of the conditions of the purchase price in the contract, under which the
property transferred for free of charge for rent payment, in the redemption price, together with
the annual rent amount is included the price of transferred property.
Article 529. The Risk Of Accidental Loss Or Accidental Damage Of The Property, Transferred
For Payment Of Permanent Rent
1. The rent payer is obliged for the risk of accidental loss or accidental damage of the
property, which is transferred free of charge for payment of permanent rent.
2. In the case of accidental loss or accidental damage of the property, which is transferred
for a fee for permanent rent, the rent payer has the right to demand termination liabilities,
respectively on payment of rent or change the conditions of its payments.
Paragraph 3. Life Annuity
Article 530. Recipients Of Life Annuity
1. Life annuity may be established for a period of life of the citizen, who is transferring
the property for rent payment, or for the life period of another citizen, indicated by him (her).
2. Establishment of a life annuity in favor of several citizens is allowed, if their shares in
the right to receive rent are equal, unless another is provided by the contract.
In the event of the death of one of the recipients of rent, his (her) share in the right to
receive rent goes to the recipients, who has outlived him (her), unless another is provided by
the contract, and in the event of the death of the last recipient of the rent the obligation to pay
rent shall be terminated.
3. The contract, establishing a life annuity for the citizen, who had died by the time of
conclusion of the contract, is not valid.
Article 531. Amount Of Life Annuity
1. Life annuity is defined in the contract as the amount of money paid to the recipient of
rent periodically throughout his (her) life. In cases, where the parties conclude a contract of
life maintenance with dependent, in the contract must be determined the monetary value of
such support.
2. Unless another is provided by the contract of a life annuity, the amount of payable rent
per month should not be less than the minimum wage established by the legislative acts.
Article 532. Periods Of Payment Of Life Annuity
Unless another is provided by the contract, life annuity is payable at the end of each
calendar month.
Article 533. Termination Of The Contract Of Life Annuity At The Request Of The Recipient Of
Rent
1. In the event of a essential breach of the contract by the payer of rent, the rent recipient
has the right to demand the redemption of rent from the payer of rent under the conditions
provided in Article 528 of this Code, or the termination of the contract.
2. If for a payment of life annuity is disposed free an apartment, a house or other property,
the recipient of the rent is entitled to demand the return of the property with the deduction of
its cost in the expense of purchase price of rent, in the case of material breach of the contract
by a payer of rent.
Article 534. The Risk Of Accidental Loss Of The Property, Transferred For The Rent Payment
Accidental loss or accidental damage of the property, which is transferred for payment of
a life annuity, cannot relieve the payer of rent from the obligation to pay rent under the
conditions provided in the contract.
Paragraph 4. Lifelong Maintenance of a Dependent
Article 535. Contract Of Life Annuity With Dependence
1. Under a contract of life annuity with dependence, the recipient of the rent-a citizen
passes the real property belonging to him (her) in property of rent payer, who undertakes to
carry out a life annuity with a dependant of the citizen, and (or) a third party, specified by him
(her).
2. By contract of life annuity with a dependent shall be applied the rules of the life annuity
, unless another is provided by the rules of this paragraph.
Article 536. The Obligation To Provide The Maintenance With A Dependent
1. The obligation of a rent payer to provide maintenance with a dependent may include
ensuring the needs for housing, food and clothing, care and assistance.
The contract may also provide the rent payer’s payment for funeral services.
2. The contract shall determine the total cost of maintenance of a dependent. The total
amount of maintenance per month cannot be less than two minimum wages established by the
legislative acts.
3. At the resolution of the dispute between the parties on the amount of maintenance that
is provided or should be provided to the citizen, the Court must be guided by the principles of
fairness and reasonableness.
Article 537. Replacing The Life Annuity To Periodical Payments
The contract may provide the possibility to replace the provision of maintenance of a
dependent in kind by the periodical payments in cash.
Article 538. Alienation And Use Of Property, Transferred To Ensure Permanent Alimony
1. Rent payer shall be entitled to dispose, lease mortgage or otherwise encumber real
property, which is transferred to him (her) for ensuring a lifetime support, and only with the
prior consent of the recipient to rent.
2. Rent payer is obliged to take the necessary measures to ensure that, while providing
permanent alimony with dependent the use of property does not lead to a decrease in the
value of that property in excess of the value of its natural wear.
Article 539. Termination Of Permanent Alimony With Dependent
1. The obligations of permanent alimony with dependent shall be terminated with the
death of the recipient of rent.
2. With a material breach of his (her) obligations by the rent payer, the rent recipient shall
have the right to demand the return of real property transferred for ensuring permanent
alimony or paying him (her) the purchase price under the conditions established in Article
528 of this Code. In this case, the payer of the rent shall not have the right to demand
compensation for expenses, which are incurred in connection with the maintenance of the rent
recipient.
Chapter 29. Property lease (rent)

Article 540. Contract For Lease Of Property
1. Under the contract of property lease the landlord shall be obliged to provide the tenant
for payment a property for temporary possession and use.
2. In the cases and procedure established by this Code, the hirer has the right to dispose of
the rented property.
3. To contracts of property lease also include leasing, hire, and others of contracts related
to the transfer of the property for a payment for temporary use.
Article 541. Objects Of Property Lease
1. In the property lease can be transferred the companies and other property complexes,
land, buildings, constructions, equipment, vehicles and other things that do not lose their
natural properties in the course of their use (inconsumable things).
2. The object of property lease may also be the land use right, the subsoil use right or
other proprietary rights, unless another is provided by legislation.
3. The legislative acts can establish thees of property, the delivery of which to the
property of lease is prohibited or limited.
4. The legislative acts can establish the peculiarities of deposit for property lease of
residential premises, land plots, subsoil and other separate natural objects, also including on
the basis of concession agreements, as well as in other cases.
5. Features of rent of State property in the lease property are established by the legislative
acts of the Republic of Kazakhstan.
Article 542. Terms And Conditions Of Lease Contract
In the property lease contract must be specified the data, to set the property, which shall
be transferred to the hirer as an object of property lease.
In the absence of these data in the contract, the condition about the object, which shall be
transferred to the property lease, is considered to be non-consensual by the parties, and the
respective contract is not concluded.
Article 543. The Lender
Right to surrender the property for rent belongs to the owner.

The lender may also be the persons authorized by legislative acts or the owner to lease the
property for rent.
Article 544. The Form Of Property Lease Contract
1. The lease contract for a period exceeding one year, and if at least one of the parties of
the contract is a legal entity regardless of the length, must be concluded in writing.
3. The lease contract between the citizens for up to one year may be concluded orally.
4. The lease contract, which is providing the subsequent transfer of ownership right for
the property to the tenant, shall be concluded in the form of the sale contract to such property.
25.03.2011-IV № 421 (shall be enforced upon expiry of ten calendar days after its first
Article 545. Term Of The Property Lease Contract
1. Property lease contract shall be concluded for a period specified by the contract.
2. If the property lease contract entered into without a deadline, it is concluded for an
indefinite period.
Each party shall be entitled to cancel the agreement at any time by notifying the other
party before three months-in the hiring of real property and for one month in the hiring of
another property, if the legislative acts or the contract provides otherwise.
3. The legislative acts can establish the maximum (limit) contract term for certains of
tenancy, as well as for the recruitment of certains of property. In these cases, if the term of
contract is uncertain and none of the parties cancel the contract before the expiry of the
deadline set by legislative acts, the contact shall be terminated after the deadline.
In this case, the property lease contract, which is exceeding the limit specified by
legislative acts, shall be concluded for a period equal to the maximum (limit).
Article 546. Payment Under The Property Lease Contract
1. Fees for the use of rented property shall be paid by the hirer in accordance with the
terms and in the form established by the contract, unless another is provided by legislative
acts. In cases, where they are not defined by the contract, it is believed that the established
procedure, terms and format, are usually used in hiring a similar property under comparable
circumstances.
2. Payment is established for all rented property as a whole or separately for each of its
parts in the form of:
1) defined as a fixed amount of payments, which is made periodically or at a time;
2) fixed percentage, obtained from the use of rented property, products, fruits or revenues;
3) provision of certain services by the hirer;
4) transfer by the hirer to the landlord a contractual thing in the ownership or lease;
5) assignment on the hirer costs to improve the rented property by the contract.
Parties may include in the contract a combination of these forms of payment for the use of
the property or other forms of payment.
3. The payment for use of the property can be changed only once a year, unless another is
provided by agreement of the parties. The legislative acts may provide other minimum terms
to review the amount of payment for certains of property lease, as well as for hiring of
certains of property.
4. Amount of payment can be revised at the request of one of the parties in the cases of
changes in prices and tariffs, which are set centrally.
5. The hirer has the right to demand a corresponding reduction of fees, if due to
circumstances for which he (she) is not responsible, the conditions of use specified in the
contract cannot be satisfied, or the condition of the property have deteriorated significantly,
and if legislative acts provides otherwise.
6. Unless another is provided by the contract, in the event of a material breach the terms
of payment for the use of the property by the hirer, the landlord shall be entitled to demand
from him (her) an early payment within the prescribed period of the landlord. In this case, the
landlord shall not have the right to demand advance payment for more than two consecutive
terms.
Article 547. Provision Of Property To The Hirer
1. The landlord must give to the hirer the property in a condition corresponding to the
contract and the purpose of the property.
2. The property is rented together with all its accessories and related documents (the
documents certifying the completeness, safety, quality of assets, operating procedure, etc.),
unless alternative conditions are provided by the contract.
If such accessories and documents were not transferred, and without them, the hirer
cannot use the property in accordance with its purpose or substantially deprived of what, he (
she) was entitled to expect under the contract, he (she) may demand the landlord to provide
him (her) of such accessories and documents or terminate the contract.
3. If the landlord has not provided the hirer with lease property in the term indicated in the
contract, and if the contract does not specify such period, within a reasonable time, the hirer
has the right to demand from him (her) the property under Article 355 of this Code or
termination of the contract.
Article 548. Landlord Liability For Defects Handed Over For Rent Property
1. Landlord is liable for the defects of rented property, which are fully or partially prevent
the usage of the property, even if at the time of conclusion of the contract, he (she) was not
aware about these deficiencies.
Upon detection of such defects, the hirer has the right on his (her) option to require from
the landlord:
1) address to eliminate the deficiencies of the property without compensation;
2) decrease in proportion the hired fee;
3) withhold the sum of expenses incurred to resolve these defects from the property
charges for usage, after notifying the landlord;
4) early termination of the contract.
2. The landlord, who is informed about the requirements of the hirer or his (her) intention
to address the shortcomings of the property at the expense of the landlord, can immediately
replace with the consent of the hirer the provided lease property to other similar property in
good condition or eliminate the deficiencies of the property free of charge.
3. If compliance with the requirements of the hirer or withholding by him (her) the costs
to eliminate deficiencies from the payment for the usage of the property shall not cover the
damages caused to the hirer, he (she) has the right to demand compensation for uncovered
part of losses.
4. Landlord is not responsible for the deficiencies of the surrendered lease property, which
had agreed at the conclusion of the contract or were previously known to the hirer.
Article 549. Rights Of Third Parties On The Rental Property
1. Transfer of the property for rent is not grounds for termination or change of any third
party rights to this property.
2. At the conclusion of the contract the landlord is obliged to notify the hirer about all
rights of third parties to the rental property (servitude, the right mortgage etc.).
Failure to follow this rule gives the hirer the right to claim reduction in payment for use of
the property or the termination of the contract.
Article 550. Use Of Rented Property
The hirer is obliged to use the property in accordance with the terms of the contract, and if
such conditions are not defined in the contract, in accordance with the purpose of the property
.
Article 551. Limits Of Instructions Of The Hirer By The Rented Property
1. The hirer may, with the consent of the landlord to take the rented property to sublet (
sublease), transfer his (her) rights and obligations under the contract of property lease to
another person (transfer of lease), provide the rented property for free usage, and to give these
rights to pledge and contribute them as a contribution to the registered capital of enterprise
partnerships, joint-stock companies or contribution in the industrial cooperative, unless
another is provided by legislative acts. In these cases, except sublease, responsibility under
the contract before the landlord remains the hirer.
2. Contract on the transfer of property to other persons cannot be concluded for a period
exceeding the period of the contract of rent.
3. The rules of the property lease contract shall be applied to the sublease contract, unless
another is provided by legislative acts.
Article 552. Duties Of The Landlord On The Maintenance Of The Surrendered Lease Property
1. The landlord is responsible for conducting, at his (her) own expense, capital repairs of
the rented property in the terms agreed by the parties, unless an alternative provisions are
provided by legislation or contract.
2. Landlord is obliged to provide repairs, at his (her) own expense, caused by the urgent
need, that is arising due to circumstances for which the hirer does not respond, within a
reasonable time, unless another is provided by legislation or contract.
3. The landlord’s failure to perform duties on capital repairs shall give the hirer the right
to choose:
1) to repair him(her)self and recover from the landlord cost of repair;
2) set off the repair cost in payments under the contract;
3) require a corresponding reduction in payment under the contract;
4) to cancel the contract.
Article 553. Duties Of The Hirer On The Maintenance Of The Rented Property
The hirer is obliged to maintain the property in good condition and make at his (her) own
expense repairs and bear the expenses of the property, unless another is provided by law or
contract.
Article 554. Property Right Of The Hirer To Products, Fruits And Other Incomes From The
Rented Property
Products, fruits and other incomes received by the hirer from the use of rented property
shall be his (her) property, unless another is provided by legislative acts or contract.
Article 555. Improvements Of The Property
1. Separable improvements of the rented property made by the hirer, shall be his (her)
property, unless otherwise specified by contract.
2. In the case, where the hirer has made at his (her) own expense and with the consent of
the landlord, inseparable improvements without harm to the rented property, he (she) shall be
entitled, after the termination of the contract to compensate the cost of these improvements,
unless another is provided by the contract.
3. The cost of inseparable improvements made by the hirer without the consent of the
landlord shall be non- refundable, unless another is provided by legislative acts or contract.
Article 556. Amendment And Termination Of The Property Lease Contract On Demand Of One
Of The Parties
1. At the request of one of the parties the lease contract may be amended or terminated
prematurely by the courts in the cases provided by this Code and other legislative acts or the
contract.
2. At the request of the landlord the lease contract can be terminated and the property
returned to the landlord in the following cases:
1) if the hirer uses the property with a material breach of contract or purpose of property,
despite a written warning of the landlord on termination such actions;
2) if the hirer intentionally or recklessly damages the property significantly;
3) if the hirer fails to make the contractual payment for the use of the property more than
twice;
4) if the hirer does not make the capital repairs of the property under the terms,
established by the contract or in the absence of them in the contract-within a reasonable
period of time in cases, where in accordance with legislative acts, or according to the contract
the obligation of capital repairs rests on the hirer.
The landlord has the right to demand early termination of the contract only after giving
the hirer a possibility for the execution of his (her) obligation within a reasonable period of
time.
3. The contract can be dissolved ahead of time at the request of the hirer in the following
cases:
1) the landlord does not provide a property for use to the hirer or creates obstacles in the
use of property, in accordance with the terms of the contract or the purpose of the property;
2) the landlord does not perform his (her) responsibilities on making capital repairs of the
property within the established terms of the contract, and in the absence of them in the
contract - within a reasonable period of time;
3) the property, transferred to the hirer has deficiencies, which are preventing its use, and
were not specified by the landlord in the contract and were not previously known to the hirer
and could not be found during inspection of the property, or on check the health on the
conclusion of the contract;
4) if the property due to circumstances, for which the hirer is not responsible, shall be in
such a poor condition that it is unsuitable for use.
Article 557. The Priority Right Of The Hirer For Conclusion Of A Contract For The New Term
1. The hirer, who is properly performed his (her) duties has, unless another is provided by
legislative acts or contract, after the expiration of the contract and upon all other things being
equal, priority right over other persons to conclude a lease contract for a further term. The
hirer is obliged to notify the landlord about a desire to conclude such a contract within the
period specified in the rent contract, unless such period is not specified in the contract, within
a reasonable time prior to the expiration of the contract.
2. At the conclusion of the lease contract for a new term, the contract terms and conditions
may be amended by agreement of the parties.
3. If the landlord refuses the hirer’s request to conclude a contract for a new term, but
within a year from the date of expiry of the contract concludes a lease contract with another
person, the hirer may at his (her) own option to require in the Court to transfer rights and
obligations under the concluded contract and compensation for damages caused by the refusal
to renew the contract, or only compensation for damages.
Article 558. Renewal Of The Property Lease Contract
If the hirer is continuing to use the property after the expiration of the contract and in the
absence of any objection by the landlord, the contract shall be renewed under the same
conditions for an indefinite period of time. In addition, each party shall have the right at any
time to withdraw from the contract, by notifying in writing the other party with not less than
three months’ notice - in the hiring of real property and for a month - in the hiring of another
property, unless the legislative acts or the contract provides another.
Article 559. Preservation Of The Property Lease Contract In Force When The Parties Change
1. The transfer of the property right, the right of economic management or operative
control for a rented property to another person shall not be grounds for amendment or
termination of the property lease contract.
2. In the event of the death of a citizen, who is a hirer of the real property, his (her) rights
and obligations under a contract of lease property shall pass to the heir, if the legislation or
the contract provides another.
Landlord is not entitled to refuse such an heir in joining to the contract for the remaining
term, except the cases, when the contract was due to the personal qualities of the hirer.
Article 560. Dependence Of The Sublease Contract From The Main Lease Contract
1. Unless otherwise specified by the lease contract, the early termination of the lease
contract shall result in the termination of the sublease contract, which is concluded in
accordance with the lease contract.
2. If the lease contract shall be found to be invalid as found on these grounds, then the
sublease contract shall be invalid too.
Article 561. Return Of The Property To The Landlord In The Termination Of The Contract
1. After the termination of the lease contract, the hirer shall be obliged to return the
landlord's property in the same condition in which it was received, subject to normal wear and
tear or in the condition of the contract.
2. If the condition of the return property at the termination of the contract does not comply
with the conditions specified in paragraph 1 of this Article, the hirer shall compensate the
landlord for damages. If the property rented for lease, leaves of early period of service,
provided in the contract, the hirer shall compensate to the landlord the residual value of the
property, unless otherwise provided by the contract.
3. If the hirer does not return the rented property or returns it late, the landlord is entitled
to demand payment for the use of the property for all the time of delay. In the case, where the
indicated payment does not cover losses caused to the landlord, he (she) may demand
compensation for them.
4. In case, where for late return of the rented property, the contract provides a forfeit,
damages may be recovered wholly over the forfeit, unless another is provided by the contract.
Article 562. Transition Of The Property To The Ownership Of The Hirer
1. If it can be established in the rent contract that the rented property shall become the
property of the hirer under conditions determined by the agreement of parties.
2. If the condition of redemption of the rented property is not declared in the contract, it
can be established by additional agreement of the parties, who in this case shall have the right
to agree on the offset of previously paid fees for the use of property in the purchase price.
3. The legislative acts may establish the cases where the redemption of rented property
prohibited.
Article 563. Protection The Rights Of The Hirer
Hirers are ensured the protection of their rights on the rented property equally with the
rights of landlords.
The landlord is not liable before the hirer for breach of use from the violent actions of
third parties who do not have any rights to the rented property.
The hirer has the right to sue or otherwise protect his (her) rights on his (her) behalf.
Article 564. Characteristics Of Certains Of Lease Property And Hiring Of Certain Property
For certains of contract for property lease and contracts for hiring of certains of property (
leasing, leasing companies, leasing buildings, rental vehicles, rent) shall apply the provisions
of this paragraph, unless another is provided by the laws and rules of this Code on them.
2000 № 75-II.
Paragraph 2. Leasing
Article 565. Lease Agreement
1. Under the lease agreement the lessor undertakes to purchase and own a property
specified by the lessee from the seller and give the lessee the property for temporary
possession and use for business purposes for a fee.
2. The leasing agreement may provide that the option of the seller and the purchased
property shall be sold by the lessor.
3. Legislative acts of the Republic of Kazakhstan can specify the peculiarities of certains
of lease agreement.
10, 2004 № 532.
Article 566. Leasing Subject
The leasing subject can be leased buildings, structures, machinery, equipment, inventory,
vehicles, land plots and any other non-consumable items.
Leased assets may not be securities and natural resources.
Article 567. Essential Terms Of The Lease Agreement
In addition to the conditions of the lease agreement referred to in Article 542 of this Code,
the lease agreement shall contain the following conditions:
1) the name of the seller of the property;
2) the conditions and duration of the transfer of property to the lessee;
3) the amount and timing of payments;
4) the term of agreement;
5) the conditions for the transition of property to the ownership of lessee, if such a
transition is provided by the contract.
Article 568. Notification Of The Seller On Leasing The Property
The lessor, purchasing the property to rent out to the lessee shall notify the seller that the
property is to be leased to a certain person.
Article 569. The Risk Of Accidental Loss Or Damage Of The Property
The risk of accidental loss of or damage to the property, which is the object of leasing,
shall be transferred to the lessee at the time of the transfer of the property, unless the contract
stipulates otherwise..
Article 570. Payments Under The Lease Agreement
Periodic payments, which shall be paid in accordance with the lease agreement can be
calculated, taking into account the amortization of the whole or a substantial part of the value
of the property at the price at the time of conclusion of the contract.
Article 571. Transfer To The Lessee The Subject Of Lease Agreement
1. The property, which is the subject of the lease agreement, shall be transferred to the
lessee by the seller directly at the location of the latter, unless another is provided by the
contract or followed from the nature of the obligation.
2. In the case, where the property, which is the subject of the lease agreement, are not
transferred to the lessee in the contract term, the lessee shall have the right, if the delay is
enabled by the circumstances for which the lessor is responsible, to demand cancellation of
the contract and compensation of damages.
Article 572. Seller’s Liability
1. The lessee shall have the right to present directly to the seller of the property, which is
the subject of the lease agreement, claims arising from a contract of sale concluded between
the seller and lessor, in particular, the quality and completeness of the property, the duration
of its delivery and in other cases of improper performance of the contract by the seller. In this
case, the lessee shall have the rights and duties for the buyer under this Code, except the
obligations to pay for purchased property, as if he (she) were a party of the sale of property.
In the relationship with the seller, the lessee and the lessor act as joint creditors.
2. Unless otherwise stipulated by the lease agreement, the lessor shall not be liable before
the lessee for the performance of the seller the claims arising from the contract of sale, unless
the lessor is entitled to choose the seller. In the latter case, the lessee has the right to choose to
make claims arising from the contract of sale, both directly to the seller of property and to the
lessor, who are jointly liable.
Paragraph 3. Rental for the enterprise
Article 573. Enterprise Rental Agreement
1. Under the lease, the lessor shall give the tenant a fee for doing business in the
temporary possession and use of enterprise as a whole as a property complex (Article 119 of
the Code), including the right to a enterprise name and (or) the commercial designation of the
right holder, to secure business information, as well as other facilities provided by the
contract of exclusive rights, trademark, service mark, etc. (a set of exclusive rights), except
for those rights and obligations, which the lessor is not entitled to transfer to others.
2. The right of the lessor, which he (she) received under a license to engage in the relevant
activities cannot be transferred to the tenant, unless another is provided by legislative acts.
Inclusion in the enterprise the obligations which are granted under the contract, and the
performance of which by the tenant is impossible if he (she) has no such special permission (
license) shall not relieve the lessor from the respective obligations to creditors.
3. The rights and obligations in relation to employees of the enterprise shall transfer from
the lessor to the tenant in the manner prescribed by the labor legislation of the Republic of
Kazakhstan.
Footnote. Article 573 as amended by the Law of the Republic of Kazakhstan dated May
15, 2007 № 253.
Article 574. Creditor's Rights In Renting Enterprise
1. On transferring of debts to the tenant, the landlord must give written notice to the
creditors until the conclusion of the lease contract, who in the case of disagreeing to such a
transfer, may within three months from the date of receipt of the notice demand from the
landlord to require a termination or early performance of the obligations and compensation
for damages. If within the specified period of time, any of these requirements is not filed, the
creditor is recognized to have consented to the transfer of the debt to the tenant.
2. The enterprise can be transferred to the tenant only after payments to creditors, who
demanded from the landlord the termination or early performance of obligations.
3. After the transfer of the enterprise as a property complex to rent, a landlord and a tenant
shall be jointly liable for the included in the transferred enterprise debts, which were
transferred to the tenant, without the consent of the creditor.
Article 575. The Form Of The Enterprise Rental Agreement
1. Enterprise rental agreement shall be in writing by drafting a single document signed by
the parties.
2. Failure to comply with the form of the lease enterprise shall invalidate the contract.
3. Is excluded by the Law of the Republic of Kazakhstan dated 25.03.2011-IV № 421 (
Article 576. Transfer Of A Leased Enterprise
Transfer of the enterprise to the tenant is carried out by the transfer act. Preparation of the
enterprise to the transfer, including the drafting and submission to the signing of the transfer
act, shall be the responsibility of the landlord and at his (her) expense, unless another is
provided by the contract.
Article 577. Tenant's Obligation On The Maintenance Of Enterprise And Payments For The Costs
Of Operation
1. The tenant is obliged, within the period of term of the contract, to maintain the
enterprise in good technical condition, including its current and capital repairs, unless another
is provided by the contract.
2. To the tenant shall be the expenses associated with the operation of a leased enterprise,
unless another is provided by the contract.
Article 578. Use Of The Property Of Leased Enterprise
The tenant shall be entitled, without the lessor’s content to sell, exchange, grant for
temporary use or borrow material values, which are the part of the property of leased
enterprise, and bring them to a sublease and transfer his (her) rights and obligations under the
lease agreement in respect of such property to another person, which is provided that this
shall not reduce the value of the enterprise and shall not affect the other provisions of the
lease, unless another is provided by legislative acts or agreement.
Article 579. Entering By The Tenant Changes And Improvements To The Leased Enterprise
1. Tenant shall be entitled, without the lessor’s consent to change the composition of the
leased property complex, to conduct its reconstruction, expansion, modernization, increasing
its cost, unless another is provided by the enterprise rental agreement.
2. Tenant of the enterprise has the right to compensation for the costs of inseparable
improvements of the leased property to him (her), without the permissions of the landlord to
such improvements, unless another is provided by the enterprise rental agreement.
3. The landlord may be released by a court from the obligation to compensate to the
tenant the costs of permanent improvements of the leased property, if he (she) shall prove that
the costs of the tenant to these improvements increase the cost of the leased property,
disproportionate to the improvement of its operating properties, or in the exercise of such
improvements have been violated the principles of good faith and reasonableness.
Article 580. Return Of A Leased Enterprise
Upon the termination of the lease enterprise agreement on the whole as a property
complex should be returned to the lessor in accordance with the rules provided for in Articles
573, 574, and 576 of this Code. Preparation of the enterprise to transfer to the lessor,
including the drafting and submission to the signing of the transfer act, in this case is the
responsibility of the tenant and at his (her) expense, unless another is provided by the contract
.
Paragraph 4. Rental of buildings and structures
Article 581. Contract For Leasing A Building Or Structure
1.On the contract for leasing a building or structure, the lessor shall be obliged to transfer
for the temporary possession and use of the tenant building or construction.
2. The rules of this paragraph shall apply to leasing companies, unless another is provided
by the rules of this Code on the rental of enterprise.
Article 582. Form Of The Contract For Leasing A Building Or Structure
1. Contract for leasing a building or structure shall be in writing by drafting a single
document signed by the parties.
2. Failure to comply with the form of the contract for leasing a building or structure shall
entail its invalidity.
Article 583. Rental Value
1. Contract for leasing a building or structure must include rental value. In the absence of
agreed by the parties in writing the terms of rental value, the contract for leasing a building or
structure is not concluded. The rules for determining the price as provided in paragraph 3 of
Article 385 of this Code shall not apply.
2. In cases, where the rent for a building or structure established in the contract for a unit
area of the building (structure), or other indicator of its size, the rent is determined based on
the actual size transferred to the tenant of the building or structure.
Article 584. Transfer Of A Building Or Structure
1. Transfer of a building or structure by the lessor and the tenant’s acceptance of it shall
be on the transfer act or other document for transfer, signed by the parties.
2. Failure of one of the parties from signing the document on the transfer of a building or
structure on the terms provided by the contract, shall be considered as a withdrawal of the
lessor from the obligation to the transfer the property and the tenant’s refusal from taking the
property.
3. Upon the termination of the contract for leasing a building or structure the leased
building or construction shall be returned to the lessor in accordance with the rules provided
in items 1 and 2 of this Article.
Paragraph 5. Rental for Vehicles
Article 585. Rental Agreement For A Vehicle With A Cabin Crew
1. Under the lease (charter at the time) of the vehicle with the provision of management
services and technical maintenance (a lease vehicle with a crew), the landlord shall provide
the tenant with the vehicle for payment for temporary possession and use, and by his (her)
own force provide management services of it and its technical operation.
2. The rules of this chapter on the preferential right of the tenant for conclusion of a lease
agreement for a new term and the resumption of the lease agreement for an indefinite period (
Articles 557 and 558 of this Code) shall not apply to a rental agreement for vehicle with a
crew.
Article 586. Form Of The Rental Agreement For Vehicle With A Cabin Crew
Rental agreement for vehicle with a cabin crew must be in written form, regardless of its
duration.
Article 587. Landlord's Obligation to Maintain Vehicle

Landlord for duration of the contract is obliged to maintain the proper condition of the
leased vehicle, including the implementation of current and capital repairs and provision of
the necessary supplies.
Article 588. Landlord's Obligation For Management And Technical Service Of Vehicle
1. The scope of management services and technical operation of a vehicle provided to the
tenant by the landlord shall ensure its normal and safe operation in accordance with the
purposes of rent specified in the contract. A rental agreement for a vehicle with a cabin crew
may provide a wider range of services provided to the tenant.
2. The crew of the vehicle and its qualifications should meet the obligatory terms and
conditions of the contract as specified by the parties, if the rules binding on the parties such
requirements have not been established, - the requirements of the usual practice of the vehicle
of this and conditions of the contract.
3. Crew members maintain an employment relationship with the landlord. They obey the
orders of the landlord, relating to the management and technical operation, and the orders of
the tenant, relating to the commercial operation of the vehicle.
4. If the lease agreement does not provide otherwise, the cost of the salaries of the crew
members, and the cost of their maintaining shall be provided by the lessor.
Article 589. Duty Of The Tenant To Pay The Expenses, Relating To The Commercial Exploitation
Of Vehicle
Unless another is provided by the rental agreement for a vehicle with a cabin crew, the
tenant shall pay for the fuel and other consumable materials in service, payment of fees and
other expenses incurred in connection with the commercial use of the vehicle.
Article 590. Insurance Of Vehicle
Unless another is provided by the rental agreement for vehicle with a cabin crew, the duty
to insure the vehicle and/or insure the liability for any damages that may be caused by or in
connection with its operation shall rest to the landlord, in cases where such insurance is
compulsory.
Article 591. Contracts With Third Parties On The Use Of Vehicle
A tenant engaged in the commercial exploitation of the leased vehicle may, without the
consent of the landlord, on his (her) own name to enter into contracts of carriage and other
contracts with the third parties, if they do not conflict with the purposes of usage of the
vehicle specified in the rental agreement, and if such purposes are not established, for the
purpose of the vehicle.
Article 592. Responsibility For The Damage Caused To The Vehicle

In the case of loss or damage to the rented vehicle, the tenant shall compensate to the
landlord damages, if the latter proves that the loss or damage of the vehicle took place in
circumstances for which the tenant is responsible in accordance with legislative acts, or
contract.
Article 593. Responsibility For The Damage Caused By The Vehicle
Liability for damage caused to third persons by the leased vehicle, its mechanisms,
devices, equipment, etc. shall bear the tenant in accordance with the rules of Article 931 of
this Code.
Article 594. Features Of The Lease Of Certains Of Vehicles
Features of the lease of certains of vehicles with the provision of management services
and technical operation, other than those provided by this paragraph, may be established by
legislative acts.
Article 594-1. Rental Agreement For Vehicle Without A Cabin Crew
1. Under the rental agreement for vehicle without a cabin crew, the landlord provides to
the tenant the vehicle for payment for temporary possession and use without management
services and its technical operation.
2. Rules concerning renewal of lease agreement for an indefinite period and the
preferential right of the tenant at the conclusion of a lease agreement for a new term (Articles
557 and 558 of this Code) shall not apply to the rental agreement for vehicle without the crew
.
Footnote. The Code is supplemented with Article 594-1 in accordance with the Law of the
Republic of Kazakhstan dated 25.03.2011 № 421-IV (shall be enforced upon expiry of ten
Article 594-2. Form Of The Rental Agreement For Vehicle Without A Cabin Crew
Rental agreement for vehicle without a cabin crew must be in written form, regardless of
its duration.
Footnote. The Code is supplemented with Article 594-2 in accordance with the Law dated
Article 594-3. Tenant’s Obligation To Maintain A Vehicle

Unless otherwise stipulated by the rental agreement for a vehicle without a cabin crew,
the tenant for the duration of the contract is obliged to maintain the proper condition of the
leased vehicle, including the implementation of current and capital repairs.
Article 594-4. Duty Of Tenant To Pay The Expenses For The Maintenance Of The Vehicle
Unless another is provided by the rental agreement for vehicle without a cabin crew, the
tenant shall bear the expenses for maintenance of the rented vehicle, its insurance, including
their responsibilities, as well as the expenses incurred in connection with its operation.
Article 594-5. Contract With Third Parties On The Use Of Vehicle
If the rental agreement for a vehicle without a cabin crew provides otherwise, the tenant
may, without the consent of the landlord to take the rented vehicle in the sublease under the
rental agreement for vehicle with or without a cabin crew.
Republic of Kazakhstan dated 25.03.2011-IV № 421 (shall be enforced upon expiry of ten
Article 594-6. Responsibility For The Damage Caused By The Vehicle
Liability for damage caused to third persons by vehicle, its mechanisms, devices,
equipment, shall be the tenant in accordance with the rules of Article 931 of this Code.
Article 594-7. Features Of The Lease Of Certains Of Vehicles
Features of the lease of certains of vehicles without the provision of management services
and its technical operation can be provided by other legislation.
Paragraph 6. Hire
Article 595. Contract Of Hire
1. Under the hiring contract the landlord, who is leasing the movable property to let in as
a permanent business activity, shall be obliged to provide to the tenant the property for
payment for temporary possession and use.
Property, which is provided under the contract of hire, shall be used for consumer
purposes, unless otherwise stipulated by the contract or followed from the nature of the
obligation.
2. Contract of hire shall be in writing.
3. Contract of hire is a public (Article 387 of this Code).
Article 596. Term Of Hire Contract
1. Contract of hire is for a term of one year.

2. The rules on the priority rights of the tenant to renew the contract of tenancy and the
renewal of the contract of tenancy for an indefinite period of time (Articles 557 and 558 of
this Code) shall not be applied to the contract of hire.
3. The tenant shall have the right to refuse from the hire contract at any time, unless
another is provided by the contract.
Article 597. Provision Of The Property To The Tenant
A landlord, who is concluding the hire contract, is obliged in the presence of the tenant to
check the condition of the rented property and familiarize the tenant with the rules of
operation of the property or to give him (her) written instructions for use of the property.
Article 598. Remedial Action Of Surrendered For Hire Property
When a tenant finds defects on the leasing property, which are wholly or partially prevent
its use, the landlord shall within ten days from the date of the tenant's statement on the
deficiencies, unless a shorter period is established by contract, free address the defects of the
property on the spot or replace such property to other similar property, which are in good
condition.
If the deficiencies of leasing property were the result of violations of the rules by the
tenant for the operation and maintenance of the property, the tenant pays the landlord the cost
of repair and transportation of the property.
Article 599. Fee For Usage Of The Property
1. The fee for usage of the property under the contract of hire, shall be established as
defined in fixed amount of payments made periodically or at a time.
2. In the case of early return of the property by the tenant, the landlord shall return the
appropriate part of the received payment for use of the property, calculating it from the day
following the date of actual return of the property.
3. (Is excluded)
29, 2000 № 42.
Article 600. Use Of Leased Property
1. The capital and current repair of the property, rented under the contract of hire is the
responsibility of the landlord.
2. Subleasing the property, granted to the tenant under the contract of hire, transferring the
tenant’s rights and obligations under the contract of hire to another person, the provision of
this property in the free use, pledge of the tenant and making them as in-kind contribution to
business partnerships, joint-stock companies, the contribution to production cooperatives are
not allowed.
Chapter 30. Hiring a home
Article 601. Contract Of Hiring A Home
1. Under a contract of hiring a home, home owner or an authorized person (the renter)
agrees to provide citizen (the hirer) and the members of his (her) family home in use for a fee.
2. Contract of hiring a home should be in written form.
Article 602. Contract Of Hiring A Home In The Houses Of The State Housing Fund
1. The contract of hiring a home in the houses of the State Housing Fund is based on the
decision of the local executive authority, a State agency or State Enterprise for housing.
2. Terms of housing, the rights and obligations of the parties, the base for changing and
termination of the contract of hiring a home in the houses of the State Housing Fund are
established by the housing legislation.
Article 603. Contract Of Hiring A Home In The Houses Of The Private Housing Fund
Terms of hiring a home in the houses of the Private Housing Fund are determined by
agreement of the parties, unless otherwise stipulated by the housing legislation.
Chapter 31. Free use of property
Article 604. Contract For The Gratuitous Use Of Property
1. Under the contract for the gratuitous use of property (loan agreement), one party (the
lender) transfers property to free temporary use of another party (the borrower) and the latter
is obliged to return the same property in the same condition in which he (she) received it,
subject to normal wear and tear, or condition provided by the contract.
2. To the contract for the gratuitous use of property shall apply respectively the rules of
Article 541, paragraph 1 and first part of paragraph 2 of Article 545, 550 Article, Article 555
sub-paragraphs 1, 2, and 4 of paragraph 2 of Article 556, Article 558 of this Code.
3. To the contract for the gratuitous use of State property, the provisions of this Code with
the features set by the legislation of the Republic of Kazakhstan on state property and other
Article 605. Lender
1. The right to transfer the property for free use belongs to the owner and other persons
authorized by the legislations or by the owner.
2. Commercial organization is not entitled to transfer the property for free use to the
person who is its founder, participant (shareholder), Director, Member of the management or
controlling bodies.
Article 606. Providing Property For Free Use
1. The lender must provide the property in a state, corresponding to the terms of the
contract of gratuitous use and purpose of the property.
2. The property is available for free use, with all its accessories and related documents (
the documents certifying the completeness, safety, quality, operating procedures, etc.), unless
alternatively provided by the contract.
If such supplies and documents were not transferred, but without them the property cannot
be used for the purpose or its use has largely lost value for the borrower, the latter may
require the provision of such supplies and documents or termination of the contract and
compensation for the real loss.
Article 607. Liability For Defects Of The Property, Handed Over For The Free Use
1. The lender, who transferred property for free use, shall be responsible for the defects of
the property, which he (she) intentionally or recklessly did not specify when transferring the
property, if it caused real damage to the borrower.
2. The lender, who is informed about the requirements of the borrower or his (her)
intention to address the defects of the property by the lender, can immediately replace the
defective items to other similar thing in good condition.
3. The lender is not responsible for the defects of the property, which had agreed in the
terms of the contract or the borrower was previously known or should have been discovered
during the inspection of the property or check the working order in conclusion of the contract
or the transfer of things.
Article 608. Third Party Rights To The Property Transferred For Free Use
Transfer of property for free use shall not be grounds for modification or termination of
third party rights to the property.
At the conclusion of the contract for the gratuitous use, the lender is obliged to notify the
borrower with the all rights of third persons on the property (servitude, the mortgage right, etc
.). Failure to perform this duty gives the borrower the right to demand termination of the
contract and compensation for the real loss.
Article 609. Liabilities Of The Borrower On Maintain Of The Property
The borrower is obliged to maintain the property, received in the free use, in good
condition, including the implementation of current and capital repairs and bear all the costs of
its maintain, unless another is provided by the contract for gratuitous use.
Article 610. The Risk Of Accidental Loss Or Accidental Damage Of Property
The borrower bears the risk of accidental loss or accidental damage of donated property,
if the property was lost or damaged due to the fact that he (she) used it not in accordance with
the contract of gratuitous use or the purpose of the property or transferred it to a third party
without the consent of the lender.
The borrower shall also bear the risk of accidental loss or accidental damage of property,
if according to the actual circumstances the borrower could prevent the destruction or damage
of property, by sacrificing his (her) property, but would prefer to save his (her) property.
Article 611. Liability For Damage, Caused To A Third Party Resulting From The Use Of Property
The lender is liable for damage to a third party caused by the use of the property, unless
he (she) proves that the damage was caused due to the intent or gross negligence of the
borrower or the person from whom the property was with the consent of the lender.
Article 612. Early Termination Of A Contract
1. The lender shall have the right to demand early termination of the contract for the
gratuitous use in cases where the borrower:
1) uses the property not in accordance with the contract or the purpose of the property;
2) fails to comply with the obligations to maintain the property in good condition or its
maintenance;
3) significantly impairs the condition of the property;
4) without the lender’s consent transfer the property to a third party.
2. The borrower shall have the right to demand early termination of the contract for the
gratuitous use:
1) in case of deficiencies that make normal use of property impossible or burdensome, the
presence of which he (she) did not know and could not have known at the time of conclusion
of the contract;
2) if property due to circumstances for which he (she) is not responsible, shall be in a
condition unfit for use;
3) if at the conclusion of the contract the lender did not warn him (her) about the rights of
third parties on the transferred property;
4) in the case of failure of the lender the obligation to transfer the property or its
accessories and related documents.
Article 613. Repudiation Of A Contract
1. Each Party shall have the right at any time to withdraw from the contract for the
gratuitous use, which is concluded without specifying the period, by notifying the other party
for a month, if the contract does not provide a different period of notice.
2. Unless otherwise provided by the contract, the borrower shall have the right at any time
to withdraw from the contract concluded with the term, in accordance with paragraph 1 of this
Article.
Article 614. Changing The Parties In The Contract
1. The lender has the right to dispose of property or grant for a free use of a third party. In
this case, to the new owner or the user shall transfer the rights from any previous contract for
the gratuitous use, and his (her) rights in respect of property are burdened by rights of the
borrower.
2. In the event of the death of the citizen-lender or the reorganization or liquidation of the
legal entity-lender, the lender's rights and obligations under the contract for the gratuitous use
shall transfer to the heir (successor) or to another person, to whom the ownership of the
property or other right on the basis of which the property was transferred for free use.
In the event of a reorganization of a legal entity, the borrower's rights and obligations
under the contract shall pass to the legal entity, that is his (her) successor, unless another is
provided by contract.
Article 615. Termination Of A Contract

Contract for the gratuitous use shall be terminated in case of death of the citizen-borrower
or liquidation of a legal entity-borrower, unless otherwise provided by the contract.
Chapter 32. Work and Labor

Paragraph 1. General provisions of labor contract
Article 616. Work And Labor Contract
1. Under the contract, one party (the contractor) shall perform on the instructions of the
other party (customer) some work and pass the result to the customer on time, and the
customer undertakes to accept the result of work and pay for it (to pay the price of work). The
work is performed for the risk of the contractor, unless another is provided by legislative acts
or contract.
2. Unless otherwise provided by the contract, the contractor alone determines the methods
for implementation of the project of the customer.
3. For certains of contract (customer work, construction contract, a contract for design and
survey work, research, development and technological works) shall apply provisions of this
paragraph, unless otherwise stipulated by the rules of this Code on contracts for these species.
4. Relationships for certains of labor contract can be regulated by this Code and
legislative acts on certains of work and labor contracts.
Article 617. Performance Of Work By Dependent Contractor
1. Unless another is provided by the contract, the work performed by the dependent
contractor is to be done from his (her) material, his (her) forces and means.
2. The contractor shall be responsible for the improper quality of their materials and
equipment, as well as for the provision of materials and equipment, which are encumbered by
third party rights.
Article 618. The Risk Of Accidental Loss Of Materials
The risk of accidental loss of materials

Unless another is provided by legislation or by contract, the risk of accidental loss or
accidental damage of materials before the deadline for submission of the contractor by the
contract work, lies with the party who is providing the materials. .
In case of delay the transfer or acceptance of the result of work, the risk lies with the
delaying party, unless another is stipulated by legislation or the contract.
Article 619. The General Contractor And The Subcontractor
1. If the legislative acts or the contract do not provide otherwise, the contractor shall be
entitled to bring to the execution of the contract the other parties (subcontractors). In this case
, the contractor acts to the customer as a general contractor, and before the subcontractor as a
customer.
2. The general contractor is liable to the subcontractor for nonperformance or improper
performance of obligations by the customer, and before the customer is liable for
nonperformance or improper performance of obligations of the subcontractor.
3. Unless otherwise provided by legislation or by contract, the customer and the
subcontractor shall not be entitled to present to each other requirements, associated with the
violation of their contracts with the general contractor.
4. With the consent of the contractor, the customer has the right to conclude a contract for
the execution of certain works with third parties. In this case, the third party is liable for
nonperformance or improper performance of work directly to the customer.
5. If the contract with two or more contractors and the subject of an obligation is
indivisible, these contractors are recognized in relation to the customer joint debtors and joint
creditors respectively. The divisibility of the subject of an obligation, as well as in other cases
stipulated by legislative acts or agreement of the parties, of each of the contractors acquires
the rights and obligations in relation to the customer within their shares.
Article 620. Time Periods For Doing The Work
1. The work and labor contract specifies the starting and ending dates of work. By
agreement between the parties, the contract may provide for the timing of the completion of
certain work stages (intermediate terms).
Unless otherwise provided by the contract, the contractor is liable for breach of both the
initial and final, and intermediate deadlines.
2. Specified in the contract initial, final and intermediate time of performance of work can
be changed in the cases and in the manner prescribed by the contract.
Article 621. The Price Of Work
1. The work and labor contract specifies the price of performed work or the ways to
define it. In the absence of such indications in the contract and no agreement of the parties,
the price is set by the court, by comparing the prices of similar work, the price includes the
necessary expenses incurred by the parties.
2. The price can be determined by costs estimates.
In cases, where work is performed in accordance with the estimate made by the contractor
, the estimate takes effect and becomes part of the contract since its confirmation by the
customer.
Price of work (cost estimate) can be rough or hard. In the absence of other indications in
the contract, the price of work (cost estimate) is considered hard.
3. If there is a need for additional work and for this reason - in essentially increase a
certain approximately price of work (rough estimate), the contractor shall promptly notify the
customer and stop working. The customer, who does not agree to the excess of the price of
work (estimates), shall have the right to cancel the contract. In this case, the contractor may
require the customer to pay him (her) the actual price of the work.
4. The contractor, who does not warn the customer of the need to exceed the contractual
price (estimate), is obliged to fulfill the contract, retaining the right to charge for the work at
the price specified originally in the contract.
5. The contractor shall not have the right to demand to increase a firm price (solid
estimate), and the customer is not entitled to demand its reduction, including in the case at the
time of conclusion of the contract, excluded the possibility of providing full range of work,
which shall be performed or the necessary expenses for the work.
With a significant increase after the contract, the cost of materials and equipment, which
shall be provided by the contractor, and rendered to him (her) by third parties services, the
contractor is entitled to demand an increase of the established price (estimate), and if the
customer fails to comply with this requirement - termination of the contract.
Article 622. Savings Of The Contractor
1. In cases, where the contractor's actual costs were lower than those, which is taken into
account in determining the price (cost estimate), the contractor shall retain the right to charge
for the work at the price, which is stated in the contract (estimate), unless the customer can
prove that the contractor’s resulting savings negatively affected on the quality of the
performed work.
2. The work and labor contract may provide for the distribution of the savings, received
by the contractor between the parties.
Article 623. Order Of Payments For Work
1. If the work and labor contract does not provide pre-paid for the performed work or its
individual stages, the customer is obliged to pay to the contractor the agreed price after the
final delivery of the result of the work, which is provided that the work is done properly and
within the agreed time, or with the consent of the customer - early.
2. The contractor shall have the right to demand advance payment or deposit paid, only in
the cases and in the amount specified in the legislative acts or the contract.
Article 624. The Right To Offset
1. In case of failure of an obligation by the customer to pay the price or any other amount
due to the contractor in connection with the performance of the contract, the contractor shall
be entitled to hold the result of the work, as well as customer-owned equipment, transferred
for processing things, the balance of unused materials and other any property of the customer
before the payment of relevant amounts by the customer.
2. The contract may provide for retention of the customer the part of contractor’s amount
of compensation to cover the cost to remedy the deficiencies, found within the limits provided
in Article 630 of this Code.
Article 625. Performance Of Work Using Customer’s Materials
1. The contractor is obliged to use the materials provided by the customer economically
and prudently, and after the work to present a report on the expenditure of the customer
materials, and return the rest of them or, with the consent of the customer, reduce the price of
work, retain the surplus materials and compensate the customer for the price of the surplus
materials.
2. The contractor shall be liable for the improper performance of work caused by lack of
materials provided by the customer, unless he (she) proves that the defects could not be
detected by him (her) in proper acceptance of these materials.
Article 626. The Contractor’s Liability For Non-Safety Of The Property Provided By The
Customer
The contractor is responsible for the non-safety of customer provided materials,

equipment, transferred for processing things or other property, which were in the possession
of the contractor in connection with the execution of the work and labor contract.
Article 627. Rights Of The Customer During The Execution Of The Work
1. The customer shall have the right at any time to check the progress and quality of work,
without interfering in the activities of the contractor.
2. If the contractor does not proceed in a timely manner to the execution of the contract or
performs work so slowly that its completion within the deadline established is clearly
impossible, the customer is entitled to cancel the contract and claim damages.
3. If during the execution of the work, it becomes clear that it is not being executed
properly, the customer has the right to appoint to the contractor a reasonable time to remedy
the deficiencies. If the contractor fails to remedy these deficiencies in time, the customer has
a right to cancel the contract or to request a correction of work to a third party at the expense
of the contractor, as well as to demand compensation for damages.
4. Unless another cause is provided by the contract, the customer may at any time before
the date of letting him (her) the work to cancel the contract, pay to the contractor for the work
, performed prior to the notice of the customer’s refusal from the contract. The customer is
also obliged to compensate the contractor for damages caused by the termination of the
contract, within the difference between the part of the price paid for the performed work, and
the price specified for all the work.
Article 628. Circumstances For Which The Contractor Must Notify The Customer
1. The contractor shall immediately notify the customer and get instructions from him (her
) to suspend the work if:
1) unsuitability or deficient customer-provided materials, equipment, technical
documentation or transferred for processing things;
2) the possible adverse effects for the customer on the performance of his (her)
instructions on how to perform the work;
3) other circumstances beyond the control of the contractor, which threaten service life or
durability of the results of the work or create delays to the completion date.
2. The contractor, who shall not prevent the customer about the circumstances mentioned
in paragraph 1 of this Article, or to continue the work without waiting for the expiration of a
reasonable time to respond to a warning or even a timely indication of the customer to
suspend the work, and upon presentation to him (her) or them to the relevant requirements of
the customer shall not be entitled to refer to these circumstances.
3. If the customer, despite the timely and reasonable warning of the contractor about the
circumstances referred to in paragraph 1 of this Article, within a reasonable period of time
shall not replace unsuitable or poor quality material, change the instructions on how to
perform the work or take other necessary measures to remedy the circumstances, that threaten
fitness or durability of the work, the contractor shall be entitled to cancel the contract and
demand compensation for damages caused by the termination.
Article 629. Assistance Of The Customer
1. The customer is obliged to assist the contractor in the performance of work in the
extent and in the manner prescribed by the work and labor contract.
In the event of the non-performance of this obligation by the customer, the contractor has
the right to demand compensation for damages, including the extra costs, caused by the
downtime or deferral of execution of work or increase in the price of work.
2. In cases, where the performance of work under the contract became impossible due to
the actions or omissions of the customer, the contractor reserve the right to charge him (her)
of a fixed price for performance of the work.
Article 630. Acceptance Of The Performed Work By The Customer
1. The customer is obliged in terms and in the manner provided by the work and labor
contract, with the participation of a contractor to inspect and accept the result of the
performed work. When the customer detects a deviation from the contract, which could affect
the work or other defects in the work, the customer should immediately notify the contractor
about it.
2. The customer, who has discovered defects in work at its acceptance, has the right to
refer to them only if the act or in any other document evidencing the acceptance, these defects
have been stipulated or the possibility of further claims to eliminate them.
3. The customer, who accepts the work without checking, loses the right to refer the
defects of the work, which could be established by the usual method of its acceptance (
apparent defects).
4. The customer, who discovered after acceptance of the results of work the deviation
from the contract or in any other deficiencies that could not be established in the usual
method of acceptance (hidden defects), including some that have been deliberately hidden by
the contractor, shall be obliged to notify the contractor within a reasonable time upon their
discovery.
5. The deadline for notifying the contractor about the hidden defects, discovered by the
customer is one year, and in the case of works related to buildings and structures, as well as
regardless of the of work - on the deficiencies that have been deliberately hidden by the
contractor - three years from the date of acceptance.
Legislative acts or contract may establish a time limit (warranty periods) of longer
duration.
If, in accordance with the contract, the work is accepted by the customer in part, time
limit under this paragraph begins from the day of acceptance of the results of the work as a
whole.
6. If there is a dispute between the customer and the contractor regarding the defects of
the performed work or their reasons, shall be assigned the examination at the request of any
parties. The contractor shall pay the costs of examination, except in cases, where the
examination found no violations of the contract or the causal link between the actions of the
contractor and discovered deficiencies. In these cases, the costs of expertise shall be paid by
the party, who demands its appointment, and if expertise appointed by agreement between the
parties both parties shall pay equally.
7. In the case of deviation of the customer to accept the results of the performed work, the
contractor shall have the right within a month from the day when, according to the contract,
the work had to be transferred to the customer, and then after double-warning the customer, to
sell the results, and the received amount, after the deduction of all payments to the contractor,
make notary’s deposit in the name of the customer, unless another is provided by the contract.
8. If the customer’s failure to accept the results of the work led to the delay in delivery of
the work, the ownership of production (revised) the asset is recognized to have passed to the
customer at the time when the transfer took place.
Article 631. Payments Between The Parties In The Case Of The Destruction Of The Subject Of
Contract Or Impossibility Of Finishing The Work
If the subject of the contract before putting it accidentally ruined or finishing the work
became impossible through no fault of the parties, the contractor shall not have the right to
claim compensation for the work.
If the destruction of the subject of contract or impossibility of finishing the work occurred
due to deficiencies of the material, delivered by the customer or his (her) instructions on how
to execute the work, or the delay occurred after acceptance by the customer of the performed
work, and the contractor has complied with the rules of Article 628 of this Code, the
contractor shall retain the right to remuneration for the work.
Article 632. Quality Of Work
1. The work performed by the contractor shall comply with the terms of the contract, and
in their absence or incompleteness - those requirements which are generally applicable to the
work of the relevant kind.
2. If the legislative acts provides mandatory requirements for work performed under the
work and labor contract, the contractor, acting as an entrepreneur is obliged to perform the
work, following to these mandatory requirements.
The contractor may accept the obligation under the contract to perform work that meets
higher quality requirements by the request of the customer than specified by mandatory
requirements.
Article 633. Guarantee Of Quality Of The Work
1. In the case, where the legislation or the contract provides the contractor’s guarantee of
quality of the work to the customer, the contractor is obliged to transfer the result of the work
to the customer, which must meet the requirements of Article 632 of this Code throughout the
warranty period.
2. Guarantee quality of the work, unless another is provided by the contract, shall apply to
all the elements that make up the result.
Article 634. The Procedure For Calculating The Guarantee Period
Unless otherwise by contract, the warranty period begins to run when the results of the
work have been or should have been accepted by the customer.
Article 635. The Contractor’s Liability For Improper Performance Of Work
1. If the work performed by the contractor with the recession from the contract, or other
defects that make it unsuitable under the contract or - if there is no relevant provision in the
contract for normal use, the customer is entitled, unless another is established by legislative
acts or contract, choose to require the contractor to:
1) free elimination of deficiencies of the work within a reasonable time;
2) proportional reduction of prices established for the work;
3) payment of his (her) costs for removal defects, when the right of the customer to
eliminate them, is provided in the contract.
2. The contractor may instead address the shortcomings of the work, for which he (she) is
responsible, free of charge to perform the work again with the recovery of the customer losses
caused by the delay of execution. In this case, the customer is obliged to return the previously
referred to the results of work to the contractor, if the nature of such a return is possible.
3. If deviations from the terms and conditions of the contract or other deficiencies are
significant and non-removal or within a reasonable time the defects detected by the customer
have not been remedied, the customer is entitled to cancel the contract and claim
compensation for damages.
4. The contract may exempt the contractor from liability for certain defects. This
condition shall not apply if the customer proves that the defects occurred due to faulty actions
or inactivity of the contractor.
5. The contractor, who provided the materials for the work, is responsible for their quality
according to the rules on the liability of the seller for the goods of improper quality (
sub-paragraphs1, 3 and 5 of paragraph 1 of Article 428 of this Code).
Article 636. The Limitation Period For Claims Of Improper Quality Of Work
The limitation period for claims caused by improper quality of the work, performed under
the work and labor contract shall commence from the date of detection of defects, which the
customer has declared within the period provided in Article 630 of this Code.
Article 637. Contractor’s Obligation To Transfer The Information To The Customer
The contractor is obliged to disclose to the customer together with the result, the
information concerning the operation or other use of the subject of the contract, if it is
provided by the contract, or the nature of the information is such, that without it impossible to
use the results of the work for the purposes specified in the contract.
Article 638. Confidentiality Of The Information Received By The Parties
If the party, thanks to the performance of his (her) obligations under the contract, received
from another party information about new solutions and technical knowledge, including not
enjoying legal protection, as well as information that may be regarded as a commercial secret,
he (she) shall not disclose them to any third party without the consent of the other party.
Procedure and conditions for the use of such information shall be determined by
Article 639. Return To The Customer Materials And Equipment
In cases, where the customer in accordance with paragraph 4 of Article 627, and
paragraph 3 of Article 635 of this Code withdraw from the contract, the contractor is obliged
to return to the customer supplied materials, equipment transferred for processing thing and
other property or to delivers them to the person, indicated by the customer and if it was
impossible - to compensate the cost of materials, equipment and other property obtained from
the customer.
Paragraph 2. Features of Domestic Work Contract
Article 640. Contract for domestic work
Under the domestic work contract, the contractor engaged in entrepreneurial activities,
shall perform on the instructions of the citizen-customer a certain work, designed to satisfy
household or other personal needs of the customer, and the customer agrees to accept the
work and pay for it.
Domestic work contract is public contract (Article 387 of this Code).
Article 641. Guarantee The Rights Of The Customer
1. The contractor shall not be entitled to impose the customer to include in the contract of
domestic work additional retaliation works or services. In violation of this requirement, the
customer has the right to refuse payment of such works or services.
2. The customer may at any time, before delivery of the work to withdraw from the
domestic work contract, pay to the contractor part of the established price for the work,
performed prior to the notice of refusal of the customer from the contract, and the customer is
obliged to compensate to the contractor expenses incurred up to this moment. Terms of the
contract, depriving the customer from this right, is not valid.
Article 642. Form Of Contract
Unless another is provided by legislative acts or contract, including the terms of forms or
other standard forms, joined by the customer (Article 389 of this Code), the domestic work
contract is considered to be concluded in the proper form since the date of issue by the
contractor to the consumer a receipt or other document confirming the conclusion of the
contract.
The absence of these documents at the customer does not deprive him (her) of any right to
refer to evidence in confirmation of the contract or its terms.
Article 643. Presentation Of The Information About The Results Of The Work To The Customer
Upon delivery the results of the work to the customer, the contractor is obliged to inform
him (her) about the requirements that must be followed for the effective and safe use of
manufactured or altered things or other results of the performed work, as well as possible for
the customer and other persons consequences of non-compliance of the relevant requirements.
Article 644. Presentation To The Customer The Information On Work
1. The contractor is obliged, before conclusion of the domestic work contract, to provide
the customer the necessary and accurate information on the proposed works, theirs and details
, the price and form of payment for work, and to inform the customer, upon request, other
related to the contract and the relevant to work information. If it is important to the character
of the work, the contractor shall indicate the customer a specific person who shall fulfill it.
2. The customer is entitled to demand termination of domestic work contract and
compensation of damages in cases where, on the basis of incomplete or unreliable
information provided by the contractor was concluded the contract for execution of works
that do not have properties, which mean the customer.
Article 645. Execution Of Work From The Materials Of Contractor
1. If the work under the domestic work contract is executed from the contractor’s material
, the material shall be paid by the customer at the conclusion of the contract in whole or in
part specified in the contract, with the final settlement of the customer on receipt of the results
of work performed by the contractor.
According to the contract the material may be provided by the contractor to the loan,
including the terms of payment for the material by installments by the customer.
2. Change in the price of the material provided by the contractor after the conclusion of
the contract shall not involve the allocation.
Article 646. Execution Of Work From The Materials Of Customer
If the work under the domestic work contract is executed from the customer’s material, in
the receipt or other document issued by the contractor to the customer at the conclusion of the
contract, shall specify the exact name, number, description and price of materials, which are
determined by agreement of the parties. Materials evaluation in the receipts or other similar
document may be subsequently challenged in court by the customer through written evidence.
Article 647. Price And Payment For Work
The price in the domestic work contract is determined by the agreement between the
parties and cannot be higher than indicated in the price list, announced by the contractor. The
work shall be paid by the customer after the final delivery of the results by the contractor. By
agreement of the parties, the work may be paid by the customer at the conclusion of the
contract in full or by payment of an advance.
Article 648. Consequences Of The Discovery Of Defects In The Performed Work
1. The customer can make one of those rights, which are prescribed in Article 635 of this
Code, when he (she) discovered deficiencies at the time of acceptance of the results of work
or while using the subject of contract - within the general time period provided in Article 630
of this Code, and in the presence of the warranty period - within these deadlines.
2. Requirement of free elimination of these deficiencies of the work, performed under the
domestic work contract, and which may be dangerous to life or health of the customer and
other persons, may be presented by the customer or his (her) successor, within three years
from the date of acceptance of the work, if the legislative acts provide another terms (terms of
service). Such a claim may be asserted regardless of when discovered these defects, including
their discovery at the end of the warranty period.
In the case of failure by the contractor of this requirement, the customer is entitled within
the same period to require the return of the part of price paid for the work, or expenses
incurred to remove deficiencies in the home or with the help of third parties.
Article 649. Consequences Of Failure To Appear Of The Customer For Obtaining The Results Of
The Performed Work
1. In the event of failure of the customer to obtain the results of the work or other
deviations of the customer from the acceptance of it, the contractor shall be entitled to notice
the customer, and within two months from the date of such notice to sell the subject of the
contract for a reasonable price, and the proceeds, with deduction of any payments due to the
contractor, to make notary’s deposit in the name of the customer, in accordance with article
291 of this Code.
2. As indicated in paragraph 1 of this Article, the contractor may instead of selling the
subject of the contract to exercise the right of retention it (Article 624 of this Code) or to
collect the damages from the customer.
Article 650. The Consequences Of The Death Of One Of The Parties In The Contract
In cases of termination of the domestic work contract on the grounds of death of one of
the parties (Article 376 of this Code), the consequences of termination of the contract shall be
determined by agreement between the successor of the party and its contractor, and if there is
no agreement between them - by the court, taken into account the size of the executed works
and their prices, the cost of consumed and preserved material, and other relevant
circumstances.
Paragraph 3. Features of Construction Contract

Article 651. Construction Contract
1. Under the construction contract the contractor agrees in the original terms according to
the customer to build a specific object or perform other construction work, and the customer
agrees to provide the contractor with the necessary conditions for the performance of work,
accept the result and pay for it at the agreed price.
2. The construction contract is for the construction or reconstruction of enterprises,
buildings (including the house), facilities or another object, as well as for erecting,
commissioning and other, which is closely related to the project under construction, works.
The rules of this paragraph shall also apply to major repairs of buildings and constructions,
If it is stipulated in the contract, the contractor shall undertake to ensure the operation of
the facility after its acceptance by the customer within the specified term in the contract.
3. With the contract on the construction of "key ready" the contractor assumes all
responsibilities for construction and its maintenance and must have passed to the customer
object, ready to use, according to the contractual terms.
4. The owner of the construction in progress until its delivery to the customer and
payment for work is the contractor.
5. In cases, where under the construction contract is performed, the works for domestic or
other personal needs of the citizen (customer), respectively, to such contract shall be applied
the rules on the rights of the customer under the domestic work contract.
Article 652. Allocation Of Risk Under The Construction Contract
1. In the event of destruction or damage of the construction project due to force majeure
before the expiry of the deadlines for submission of work, the customer is obliged, unless
another is provided by the contract, to pay the cost for completed work and (or)
reconstruction.
2. Unless otherwise provided by legislation or contract, the risk of accidental causes
preventing the performance of work before the delivery shall be borne by the customer.
3. The contractor shall bear the risk of accidental rise in price of works.
4. Contract may provide the transfer to the contractor all possible construction risks ("key
ready" contract).
5. The contract may provide the risk insurance of the contractor. In this case, the
insurance costs are included in the cost of construction, which are considered when
determining the remuneration for the performed work.
Article 653. Refusal For Safety Of Conducting Works
The contractor bears responsibility for safety of conducting works.

Article 654. Design Estimate Documentation
1. The contractor is obliged to carry out the construction and related works in accordance
with the project document, that defines the scope and content of the work and other
requirements, and estimate that determines the price of works.
Unless another is specified in the contract, is expected that that the contractor shall
perform all work described in project documentation and estimates (design estimate
documentation).
2. Unless another is provided by the contract, design estimate and other technical
documentation, written in a foreign language, shall be transferred to the contractor translated
into the State or Russian language. The units must comply with the metric system, established
by the legislative acts.
3. By contract for construction work must be defined the composition and content of
design-estimate documents, and shall be provided, which party and in what period must
provide appropriate documentation.
4. The contractor, who discovered in the course of construction the works, which are not
included in the design and estimate documentation and in connection with the need for
additional work and an increase in the estimated cost of construction, must inform the
customer.
With a lack of response from the customer to his (her) message within ten days if the
legislation or contract does not provide for this particular period, the contractor may suspend
the relevant work with the appropriate allocation of losses caused by downtime, at the
expense of the customer.
5. The contractor, who has not performed the obligations established by paragraph 4 of
this Article shall not be entitled to claim payment from the customer for performed by him (
her) extra work and compensation for damages caused by this, unless it proves the need for
immediate action is in the interests of the customer, in particular, due to the fact that the
suspension of work could result to loss or damage of the construction object.
6. With the consent of the customer for additional work, and their payment, the contractor
has the right to refuse to perform these works only in cases, where they do not fall within the
professional activities of the contractor, or the contractor cannot perform for reasons beyond
his (her) control.
Article 655. Changes To The Design Estimate Documentation
1. The customer has the right to demand changes to the design and estimate
documentation, which are not related to extra costs to the contractor and (or) extension of
deadlines.
2. Changes of the design-estimate documentation for extra costs to the contractor, shall be
covered by the customer on the basis of supplementary estimates agreed by the parties.
3. The contractor is entitled to demand the revision of estimates, if due to circumstances
beyond his (her) control cost of the work exceeded the estimate by at least ten percent.
4. The contractor shall have the right to demand compensation of reasonable expenses
incurred in connection with the establishment and removal of defects in the design estimate
documents, except for the cases when such documentation was written at his (her) request.
Article 656. Financial Security Of The Work
1. Responsibility for provision the construction with materials, including details and
designs, as well as equipment shall be borne by the contractor, unless the contract provides
that the supply of the construction materials in whole or in part is the responsibility of the
customer.
2. The contractor, whose duties include providing the construction materials, shall bear
the risk of detected impossibility of use, without compromising the performance standards of
the materials (details, structures), or equipment provided by the customer.
3. In the cases of detection impossibility of use, without compromising the performance
standards of the materials (details, structures),, or equipment provided by the customer, the
contractor shall require their replacement by the customer within a reasonable period, and in
the case of non-fulfillment of this requirement, the contractor shall be entitled to cancel the
contract and demand from the customer to pay the price of contract in proportion to the
executed part of the work, as well as compensation for losses, which are not covered by this
sum.
Article 657. Payment For Work
1. Payment for the performed work is made by the customer, in the amount provided in
the estimates, at the time and in the manner established by legislative acts or contract. In the
absence of appropriate legislative acts or contract, payment for the performed work of the
contractor shall be made in accordance with Article 623 of this Code.
2. During the construction on a turnkey basis, the indicated in the contract price shall be
paid in full, upon acceptance of the object by the customer, unless another is provided by
Article 658. Providing The Land Section For Construction
The customer shall be obliged to provide land for the construction in such area and state
as indicated in the contract. In the absence of such instructions in the contract, the area and
the state of the land should ensure the timely start of work, their normal maintenance and
completion on time.
Article 659. Additional Duties Of The Customer In The Contract For Construction Work
The customer is obliged in the cases and in the manner prescribed by the contract for
construction work, to transfer to the contractor for the use needed buildings and facilities, to
ensure the transportation of goods to the contractor, the temporary power supply networks,
water and steam lines, and provide other services. Payment shall be made on the terms
stipulated in the contract.
Article 660. Control And Supervision Of The Customer For The Execution Of Work Under The
Contract
1. Customer in the contract for construction work is entitled to exercise control and
supervision over the progress and quality of the performed work, compliance with the terms
of their performance (schedule), the quality of the materials provided by the contractor, and
the correct use of the customer’s material by the contractor, without interfering the
operational and economic activities of the contractor.
2. The customer, who in the control and supervision over the work found the waiver from
the conditions of the contract, which could affect the quality of work or other deficiencies in
it, must immediately declare this to the contractor. The customer, who has not made such a
statement, loses the right to refer to the detected deficiencies in future.
3. The contractor is obliged to execute customer's instructions, obtained during the
construction, and if such instructions do not conflict with the terms of the contract and
interfere in the operational and economic activities of the contractor.
4. Contractor, who improperly executes the work, may not refer to the fact that the
customer has not control and supervise of the execution, unless the obligation to exercise such
control and supervision is the responsibility of the customer by legislative acts or contract.
Article 661. Contractor Responsibilities For The Environmental Protection And Safety
Management Of Construction Works
The contractor shall have no right to use in the implementation of the work materials (
details, constructions) and equipment provided by the customer, or to carry out his (her)
instructions, if this may lead to a violation of the mandatory requirements for the parties on
the protection of the environment and safety of the construction work.
Article 662. Obligations Of The Parties With The Conservancy Of Construction
If, for reasons beyond the control of the parties, the work under the contract of
construction is suspended and the construction object is conserved, the customer is obliged to
pay to the contractor fully for the executed work prior to the conservation work, and to
compensate the costs caused by the need to halt the construction work and conservation.
Article 663. Delivery And Acceptance Of The Results Of Work

1. The customer, who received the message from the contractor on readiness for handing
over of the works, performed under the contract of construction or, if this is provided by the
contract,- stage of working, must immediately proceed the acceptance of the results.
2. The customer organizes and implements the results of work at his (her) own expense,
unless otherwise stipulated by the contract. In cases stipulated by legislative acts, in the
acceptance of the results of works the representatives of state bodies and bodies of local
self-government should participate.
3. The customer, who is previously adopted the individual stages of work, shall bear the
risk of loss or damage, which is not fault of the contractor, including in cases, where the
contract provides for execution of works for the risk of the contractor.
4. Delivery of the results of the contractor and acceptance of them by the customer shall
be formalized by act, signed by both parties, and in cases stipulated by legislative acts - by
representatives of state bodies and bodies of local self-government. In case of failure of one
party to sign the act, it is marked about this and shall be signed by the other party.
A unilateral act of delivery or acceptance of the results of work can be recognized by a
court as valid, only if reasons for the refusal to sign the act recognized unreasonable by the
court.
5. In cases, where this is stipulated by legislative acts or contract or follows from the
nature of the work, performed under the contract of construction, the acceptance of the results
should be preceded by preliminary tests. In these cases, the acceptance of the results of work
can only be done with a positive result of preliminary tests.
6. The customer shall be entitled to refuse from the acceptance of the results of work in
case of deficiencies, that prevent the use of the results of work for the purpose specified in the
contract and cannot be removed by the contractor, the customer or a third party.
If during the acceptance found any deficiencies, they must be specified in the act,
provided by paragraph 4 of this Article.
7. In cases stipulated by legislative acts, built objects should be accepted by the State
Commission.
The Government of the Republic of Kazakhstan establishes the procedure for state
acceptance of constructed objects and determines the possibility of participation of State
bodies in interim acceptance.
Article 664. Contractor’s Liability For Quality Of Work
The contractor shall be liable to the customer for the deviations from the requirements of
the contract, project and binding on the parties construction regulations, as well as for failure
on the indications of construction object, specified in the design estimate documentation,
including the production capacity of the enterprise.
On reconstruction (renovation, rebuilding, restoration, etc.), of a building or facilities, the
contractor shall be responsible for the reduction or strength loss, stability, solidity of
buildings, facilities or their integral parts.
Article 665. Guarantee Of Quality In The Construction Contract
1. The contractor, unless another is provided by the construction contract, guarantees

achievement of indicators by the object of construction specified in the design-estimate
documentation and the possibility to operate the facility in accordance with the contract
during the warranty period. The warranty period is ten years from the date of acceptance of
object by the customer, unless a different warranty period is provided by legislative acts or
contract.
2. The contractor is liable for defects, discovered within the warranty period, unless it is
proved that they arose as a result of normal wear and tear of the object or its parts, its
improper use or incorrect instructions for its use, which are developed by the customer or the
third parties involved by him (her), improper repair of the object, produced by the customer
or the third party involved by him (her).
3. Running the warranty period shall be suspended for the time during which the object
could not be used, due to defects (defects or deficiencies), under the responsibility of the
contractor.
4. When detecting defects within the warranty period, specified in paragraph 4 of Article
630 of this Code, the customer must inform about them to the contractor within a reasonable
time after their discovery.
5. Construction contract may stipulate the right of the customer to hold back the part of
the prices of work indicated in the estimate provided in the contract before the end of the
warranty period.
Article 666. Removal Of Deficiencies At The Expense Of Customer
1. Construction contract may provide the contractor's obligation to remove at the request
and at the expense of the customer defects (defects and deficiencies), for which the contractor
is not responsible.
2. The contractor shall have the right to refuse to perform works specified in paragraph 1
of this Article in cases, where they are not directly related to the subject of the contract, or
cannot be performed by the contractor for reasons beyond his (her) control.
Paragraph 4. Features of a construction for design and prospecting work
Article 667. Contract Of Construction For Design And Survey Work
1. Under the construction contract for design and survey work, the contractor (designer,
prospector) undertakes to develop, according to the order of customer the design estimate
documentation and (or) perform exploration work, and the customer agrees to accept and pay
for them.
2. Unless another is stipulated by legislative acts or the contract for design and survey
work, the risk of accidental impossibility of performance of the contract for design and survey
work rests to the customer.
Article 668. Initial Data For The Design And Prospecting Work
1. Under the construction contract for design and prospecting work, the customer is
obliged to transfer to the contractor the design assignment, as well as other basic data
necessary for producing design-estimate documents. Design assignment on behalf of the
customer can be prepared by the contractor. In this case, the task becomes binding on the
parties from the moment of its approval by the customer.
2. The contractor shall comply with the requirements of the job and other initial data for
designing and execution of prospecting work, and have the right to derogate from them only
with the consent of the customer.
Article 669. Obligations Of The Customer
Under the construction contract for design and prospecting work, the customer is obliged,
unless another is provided by the contract:
1) to pay the contractor the price after the completion of all work, or to pay it in
installment upon completion of individual stages of work;
2) to use of design-estimate documentation, received from the contractor, only for the
purposes specified in the contract, not to transfer design-estimate documentation to third
parties and to disclose the information, without the consent of the contractor;
3) to provide services to the contractor in the design and prospecting work in the extent
and on the terms the stipulated in the contract;
4) to participate with the contractor in the agreement of the finished design-estimate
documentation with the competence state bodies and bodies of local self-government;
5) to compensate the contractor for the additional costs, caused by the change of initial
data for design and prospecting works, due to circumstances beyond the control of the
contractor;
6) involve the contractor to participate in the suit, filed to the customer by a third party in
connection with deficiencies of prepared project documentation or completed survey works.
Article 670. Obligations Of The Contractor
Under the construction contract for design and survey work, the contractor shall:
1) perform work in accordance with the transferred to him (her) base data for design at the
conclusion of the contract;
2) agree with the customer the finished design and estimate documentation and, if
necessary, agree together with the customer, with the competent State bodies and bodies of
local self-government;
3) unless another is provided by the contract, transfer to the customer at the same time the
ready design and estimate documentation and the results of survey works;
4) not transfer the design and estimate documentation to any third party without the
consent of the customer.
Article 671. Guarantees Of The Contractor
Contractor under the contract for the design and survey works guarantees the customer the
lack of third-party rights to prevent or limit the performance of work, on the basis of the
prepared by the contractor design-estimate documentation.
Article 672. Contractor’s Liability For Defects Of The Design Estimate Documentation And
Survey Works
1. Contractor under the contract for the design and survey works is responsible for the
shortcomings of the design-estimate documentation and survey works, including defects
identified later, during the construction and the operation of the facility, which is based on the
development of design-estimate documentation and data of survey works.
2. In the case of detection of defects in the design and estimate documentation or in
survey work, the contractor is obliged on request of the customer, free of charge, to alter the
design and estimate documentation and accordingly make the necessary additional survey
work, and also compensate the customer’s losses, unless the legislation or the contract
provides otherwise.
3. Claims, arising from the deficiencies of design documentation, may be presented by a
person, who is using the design documentation, even though he (she) was not a customer in
its construction.
Paragraph 5. Features of the contract for research, development and technological work
Article 673. Contracts For Research, Development And Technological Work
1. Under the contract for research work, the contractor (executor) is obliged to carry out
the research due to requirements of the customer, and on the contract for the development and
technological works - to develop a model of a new product, the construction documentation
on it, a new technology or to make the pattern; an d the customer agrees to give the contractor
(executor) technical requirements, to take the results of the work and pay for them.
2. The contract with the contractor (executor) may cover the whole cycle of research,
development and manufacturing of samples and their individual elements.
Article 674. Execution Of Works
1. Contractor (executor) is obliged to make research personally. Unless another is

provided by the contract, he (she) is entitled to engage the third parties in the performance of
the scientific research contract, only with the consent of the customer.
2. In the performance of development and technological works, the contractor is entitled
to involve in the execution the third parties as subcontractors, unless otherwise provided by
the contract,
Article 675. Hand Over, Acceptance And Payment For Work
The contractor is obliged to hand over (executor), and the customer to accept and pay
fully for the completed research, development and technological works. Contract may provide
for the acceptance and payment of the individual stages of works or any other payment
method.
Article 676. Privacy Of The Contract
Unless otherwise provided by the contract for research or development and technological
works:
1) the contractor (executor) and the customer must ensure the confidentiality of
information relating to the subject matter of the contract, the progress of its execution and
results. The amount of information, which is recognized as confidential shall be determined in
the contract;
2) The contractor shall be entitled to patent the results of work, obtained under this
contract, only with the consent of the customer.
Article 677. Rights Of The Parties On The Results Of Work
1. The customer under the contract for research or development and technological works
has the right to use the results of the work, transferred to him (her) to the extent and under the
conditions provided in the contract.
2. Unless otherwise provided by the contract, the contractor (executor) may use the
received result of the works for him (her) self.
3. The contract may provide the right of the contractor (executor) to implement the results
to the third parties.
Article 678. Obligations Of The Customer
Customer under the contract for research or development and technological work must:
1) give the contractor (executor) technological requirements and agree with him (her) the
program (technical and economic parameters) or the subject of the work;
2) transfer to the contractor (executor) required for the work information;
3) to take the results of the performed work and pay for them (Article 623 of the Code).
Article 679. Obligations Of The Contractor (Executor)
1. Contractor (executor) under the contract for research or experimental development and
technological work must:
1) perform the work in accordance with the program or theme, agreed with the customer (
technical and economic parameters) and give the results to the customer in the contract time;
2) comply with the requirements relating to the legal protection of intellectual property;
3) by his (her) own efforts and expenses, remove admitted to his (her) fault, deficiencies
in the technical documentation, which could lead to deviations from the technical and
economic parameters, stipulated in the technical specifications of the customer or in the
contract;
4) immediately inform the customer about the detected inability to obtain the expected
results or inexpedient to continue the work;
5) guarantee to the customer the lack of third parties of exclusive rights for the transferred
results on the basis of such contract.
2. Unless another is provided by the contracts for research, development and
technological works, the contractor (executor) must:
1) refrain from publishing without the consent of the customer for technical and scientific
results, obtained during the work;
2) take steps to protect received during the work, capable for legal protection results and
inform the customer;
3) provide customer with exclusive license for the use of legally protected scientific and
technical results, applied to the completed works.
Article 680. Consequences Of Failure To Achieve Result In The Contract On Scientific-Research

Works
If, in the course of scientific-research works reveals the inability to achieve results due to
circumstances beyond the control of the contractor (executor), the customer is obliged to pay
the cost of work performed prior to the detection inability to achieve the results provided in
the contract, but not exceeding the relevant part of the price of the works, specified in the
contract.
Article 681. Consequences Of Failure To Achieve Result In The Contract On Development And
Technological Works
If in the course of development and technological works are detected the fault on the
impossibility or inexpediency of continuing the work, for which the contractor is not
responsible, the customer must pay for the cost incurred by the contractor.
Article 682. Liability Of The Contractor (Executor) For Breach Of Contract
1. Contractor (executor) shall be liable to the customer for non-execution or improper

execution of the contract for scientific research or experimental development and
technological works, unless he (she) proves that the breach of contract occurred due to the
contractor (executor).
2. Contractor (executor) who breaches the contract, is obliged to pay damages to the
customer in the form of real damage, unless the contract provides otherwise.
Chapter 33. Paid services
Article 683. Paid Service Agreement
1. Under the paid service agreement the contractor shall on the instruction of the customer
provide services (to perform certain acts or to carry out certain activities), and the customer
agrees to pay for these services.
2. The provisions of this chapter shall apply to contracts of communications services,
medical, veterinary, audit, consulting, information services, training services, tourism services
and the other, except for services, provided under the contract as specified in Chapters 32, 34,
35, 39, 41, 43 and 44 of this Code.
Article 684. Performance Of The Contract For Paid Services
Unless another is provided by paid service contract, the Contractor shall provide the
services personally.
Article 685. Payments For Services
1. The customer is obliged to pay for services rendered to him (her) in time and in the
manner specified in the contract for paid services.
2. In case of impossibility of performance, caused by fault of the customer, the services
shall be paid in full, unless otherwise provided by legislation or a contract for paid services.
3. If the impossibility of performance arose due to circumstances for which neither party
is responsible, the customer shall fully compensate the contractor the actually incurred costs,
unless another is provided by legislation or contract.
Article 686. Unilateral Refusal To Perform Paid Service Agreement
1. The customer shall be entitled to cancel the contract of paid services, subject to
payment to the executor the actually incurred expenses.
2. The contractor shall have the right to refuse to perform the obligations under the
contract of paid services, only with the full compensation for damages to the customer,
caused by the termination of the contract, unless it was the fault of the customer.
Article 687. Legal Regulation Of The Paid Service Agreement
General provisions on the work and labor contract (Articles 616-639 of this Code) and the
provisions on domestic contract (Articles 640-650 of this Code) shall apply to the paid
services contract, unless this is contrary to Articles 683-686 of this Code, as well as special
paragraphs of paid services contract.
Chapter 34. Transportation
Article 688. General Provisions
1. Transportation of goods, passengers and luggage is carried out on the basis of the
contract of carriage.
2. General conditions of carriage are determined by legislative acts on transport, other
legislative acts and regulations made under these rules.
Conditions for the carriage of goods, passengers and luggage by differents of transport
shall be determined by agreement of the parties, unless this Code, legislation on transport,
other legislative acts and regulations made under these rules provides otherwise.
Article 689. Contract On Carriage Of Goods
1. Under the contract of carriage of goods, one party (the carrier) is obliged to deliver the
entrusted to him (her) by the other party (the sender) goods to the destination and to give
authorized to receive the goods person (the recipient), and the sender agrees to pay for the
shipping fee, according to the contract or tariff.
2. Contract of carriage is made by transport bill, consignment, bills of lading or other
document to the goods, provided by legislative acts on transport.
Article 690. Contract On The Carriage Of Passengers
1. Under a contract of carriage of the passenger, the carrier undertakes to carry the
passenger to the destination and, in the case of attached passenger baggage-also deliver
baggage to the destination and hand baggage authorized to receive the baggage person; the
passenger agrees to pay the fare, and for transports for their person and their baggage.
2. The contract for the carriage of passengers and baggage is accordingly issued by a
travel ticket and baggage check. The form of ticket and baggage check, is established in the
manner prescribed by legislative acts on transport.
Article 691. Contract Of Affreightment (Of Charter)
Under the contract of affreightment (of charter), one party (carrier) is obliged to provide
to the other party (the charterer) for a fee all or part of the capacity of one or more vehicles on
one or more flights for the carriage of passengers, baggage and cargo.
The procedure for the conclusion of contract of affreightment and the form of the contract
and its kinds are established by legislative acts on transport.
Article 692. Contracts On Transport Management
The carrier and the shipper, if necessary, for systematic traffic may conclude long-term
contracts on transport management.
Under the contract of transport management of goods, the carrier is obliged to take, within
the prescribed time and the shipper is obliged to offer for carriage, the goods in the stipulated
amount.
Contract on transport management is determined the volume, timing, quality and other
conditions of delivery of vehicles and presents the goods for carriage, as well as other
conditions of transport management, which are not provided by legislative acts.
Article 693. Contracts Between Transport Organizations
Between organizations of differents of transport can be concluded contracts on ways to

ensure transportation of goods (nodal agreements, contracts for centralized delivery (exports)
of goods, etc.).
Procedure for the conclusion of such contracts is defined by legislative acts on transport.
Article 694. Direct Mixed Traffic
The relationship of transport organizations during the transportation of goods, passengers

and baggage by different modes of transport on a single transport document (direct mixed
traffic), as well as the Organization of transport is determined by agreements between the
organizations of the respective modes of transport, concluded in accordance with the
legislative acts on the direct multimodal transport.
Article 695. Transportation By Transport For Public Use
1. Transportation carried out by a commercial organization, recognized as a public

transport carriage, in the case, if the legislation and other normative legal acts or issued by the
organization license (patent) provides that this organization is obliged to transport passengers,
cargo and (or) baggage handling of any citizen or legal entity.
2. The contract of carriage by public transport is a public contract (Article 387 of this
Code).
Article 696. Supply Of Vehicles, Loading (Unloading) Of Cargo
1. The carrier is obliged to submit to the shipper the goods for loading, within the period,
prescribed in the application (the order), the contract of carriage serviceable vehicles in a
condition suitable for the carriage of the goods.
Consignor has the right to refuse to cast vehicles, unsuitable for the carriage of cargo.
2. Loading (unloading) of cargo is carried out by the transport organization or by the
sender (receiver) in the manner and time prescribed by the contract, subject to the
requirements established by the legislative acts on transportation and the rules published in
accordance with them.
3. Loading (unloading) of cargo, carried by forces and means of the consignor (consignee)
, must be made within the time specified in the contract, if such terms are not established by
legislative acts on transportation and by the rules published in accordance with them.
Article 697. Carriage Charge
1. For the carriage of goods, passengers and luggage where there is a fee, this must be
established by agreement of the parties, unless otherwise provided by legislation.
2. Payment for the transportation of goods, passengers and luggage by public transport is
determined on the basis of tariffs, which are approved in accordance with the legislative acts
on transport.
3. Works and services, that are not covered by the tariffs and performed at the request of
the cargo owners shall be paid by agreement of the parties.
4. Carrier has the right to retain transferred to him (her) to the carriage cargo and baggage
due to him (her) in securing the freight and other charges for the carriage (Article 292 of the
Code), unless it is provided otherwise by the legislation, contract of carriage, or follows from
the obligation.
Article 698. Delivery Period Of Cargo, Passengers And (Or) Luggage
The carrier is obliged to deliver the cargo, passengers or luggage at the destination in time
, which is defined by certain legislative acts on transportation and the rules of transportation
in accordance with them. If the period of delivery of cargo, passengers or luggage is not set
and the parties did not include this term in the contract, the delivery must be made within a
reasonable period of time.
Article 699. The Right To Dispose of The Cargo
1. The shipper or owner of administrative documents for the cargo may require the carrier
to stop transportation or return the cargo or to make another order. In this case, the carrier
shall be entitled to demand payment for the already made shipment, as well as the
compensation for expenses incurred in connection with the order made.
2. Shipper losses mentioned in the previous paragraph rights at the moment of handing
over the goods to the consignee after arrival of the goods at destination.
3. When deviation of the consignee from the execution of obligations to obtain goods,
requiring special storage conditions (perishable), in the absence of the shipping instructions of
such cargo, and the storage of it, is impossible and may cause damage, the carrier is entitled
to sell the goods.
The amount, received from the sale of goods, entered under the terms of the deposit in the
name of the notary, net amount due to the carrier.
December 6, 2001 № 260.
Article 700. Passenger Rights
Passengers have the right in the manner prescribed by the legislative acts of transport to
1) transport their children with them for free or other favorable terms;
2) to carry with a free hand luggage up to a certain limit;
3) take the luggage to be transported for a fee at the rate declared.
Article 701. Liability For Violation Of Obligations On Transportation
1. In the case of non-performance or improper performance of obligations on

transportation, the parties shall bear the liability, established by this Code, the legislation on
transport, other legislative acts, as well as the agreement between the parties.
2. The agreement of transport organizations with passengers and shippers (consignors) on
the limitation or elimination of liability, established by legislative acts are not valid, unless
the possibility of such agreements for carriage of goods provided by legislative acts on
transport.
Article 702. Carrier’s Liability For Failure To Provide Vehicles And The Sender For The Failure
Of Usage Of These Vehicles
1. Carrier for the failure of vehicles for the carriage of goods in accordance with the
application (order) or other contract, and the sender for failure of loading or failure of use of
vehicles for other reasons, shall be responsible by legislative acts, as well as the agreement of
the parties.
2. The carrier and the consignor shall be released from liability in the event of failure or
delay in delivery of vehicles or non-use of vehicles, if it occurred as a result of:
1) force majeure;
2) termination or limitation of the carriage of goods in certain areas, specified in the order
established by the legislative acts on transport;
3) in other cases stipulated by legislative acts.
Article 703. The Carrier’s Liability For Direct Mixed Traffic
The carriers in the direct mixed traffic are liable for loss, damage, injury, shortage of
cargo to the consignor (consignee) jointly and severally.
The latest carrier bears the responsibility for the delay, unless he (she) proves that the
failure was not caused by the carriers.
Article 704. Carrier’s Liability For The Delay Of Passengers Departure
1. For the delay in sending the vehicle, which is carrying passengers, or the delay such a
vehicle in the destination (except for traffic in the urban and suburban areas) the carrier shall
pay to the passenger a fine in the amount established by the legislation on transport, unless he
(she) proves that the delay or arriving late occurred due to force majeure.
2. In case of passenger’s refusal of carriage due to the delay of departure of the vehicle,
the carrier is obliged to return fare to the passenger in full amount and compensate to the
passenger the losses incurred due to the delay.
Article 705. Carrier’s Liability For Loss, Shortage Or Damage (Or Injury) Of Cargo Or Luggage
1. The carrier provides cargo or luggage from the adoption of the carriage and delivery to
the recipient, the authorized person or a person, authorized to receive luggage.
2. The carrier is liable for the loss of the cargo or luggage, unless he (she) proves that the
loss, shortage or damage (injury) of cargo or luggage were not his (her) fault.
3. Damage caused during the carriage of goods or luggage, shall be compensated by the
carrier:
1) in the event of loss or shortage of goods or luggage - in amount of lost or missing cargo
or luggage;
2) in the case of damage (injury) of cargo or luggage - in the amount by which its price
was reduced, and in case of impossibility of restoration of the damaged cargo or luggage in
the amount of its value;
3) in the case of loss of cargo or luggage, surrendered to the carriage with the
announcement of its value - in the amount of the declared value of the goods or luggage.
The value of the goods or luggage is determined based on the price, specified in the seller’
s account or under the contract, and in the absence of an account or specify the price in the
contract - based on the price, which under comparable circumstances is usually charged for
similar goods.
4. The carrier, along with the compensation of estimated damage, caused by the loss,
shortage or damage (injury) of cargo or luggage, shall return to the sender (receiver) fare
charged for the carriage of the lost, missing, corrupted or damaged cargo or luggage, if this
fee is not included in the price of goods.
5. On the causes of the failure to preserve documents of cargo or luggage (commercial
report, general form acts, etc.), made by the carrier unilaterally, subject to evaluation by the
court in the event of a dispute, along with other documents certifying the circumstances that
may give rise to liability of the carrier, shipper or recipient of cargo or luggage.
Article 706. Claims And Lawsuits On The Transport Of Goods
1. Prior to filing a claim against the carrier, arising from the carriage of goods, it is
necessary to present a claim to the procedure established by legislative acts.
2. The limitation period for claims arising from the carriage of goods, shall be one year.
3. The provisions of this Article shall not apply to claims arising from the carriage of
passengers and luggage.
Article 707. Carrier’s Liability For Damage Harm To The Life Or Health Of The Passenger
Carrier's liability for obligations, arising from harm to life or health of the passenger is
determined by the rules of Chapter 47 of this Code, unless the legislative acts or contract of
carriage provides the increased liability of the carrier.
Chapter 35. Freight Forwarding
Article 708. CONTRACT of FREIGHT FORWARDING
1. Under the contract of freight forwarding, one party (freight forwarder) agrees for a fee
and at the expense of the other party (the client-the shipper, the consignee or any other
interested persons in the services of the freight forwarder) perform or arrange for the
performance services, under the certain contract of forwarding related to the carriage of cargo,
including a sign on behalf of the client, or on his (her) own behalf the contract of the carriage
(contracts).
Additional services, by the contract of freight forwarding which can be provided such as
the implementation of the necessary delivery operations, as obtaining required for export or
import documents, execution of customs and other formalities, checking the quantity and
condition of the goods, its loading and unloading, the payment of duties, taxes and imposed
on the client, storing the goods, its recipient at the destination, as well as perform other
operations and services.
With the consent of the client, the freight forwarder may him(her)self determine by what
of transport to convey goods, taking into account the interests of the client, the level of tariffs
and the terms of delivery.
2. In the part, which is not regulated by this chapter, and to the relations by the contract of
freight forwarding shall be applied the provisions of Chapter 41 of this Code, if the freight
forwarder under the contract, acts on behalf of the client, and the provisions of Chapter 43 of
this Code - if he (she) acts on his (her) own behalf.
Article 709. Form Of Contract

1. Forwarding contract is in writing form.
2. The client must issue a power of attorney to the freight forwarder, if it is necessary for
the performance of his (her) duties.
Article 710. Documents And Other Information Provided To The Forwarder
1. The client is obliged to provide the forwarder the documents and other information
about the properties of the goods, the conditions of transportation, as well as other
information necessary for the execution of the freight forwarder duties under the contract.
2. The freight forwarder is obliged to inform the client about the shortcomings of the
received information and, in the case of incomplete information, request from the client the
necessary additional information.
3. In case of failure by the client the necessary information, the freight forwarder may not
proceed to the execution of the respective obligations before providing such information.
4. The client is responsible for damages, caused to the forwarding agent for breach of duty
to provide the information, specified in paragraph 1 of this Article.
Article 711. Performance Of The Freight Forwarder Duties By A Third Party
1. If the contract for freight forwarding is not provided the freight forwarder’s obligation
to perform their duties in person, the freight forwarder has the right to engage other persons
for the execution of his (her) duties.
2. Assignment of performance of an obligation to a third party shall not relieve the freight
forwarder from the liability to the client for execution of the contract.
Article 712. The Right Of Retention
Forwarder has the right to retain the goods only in connection with non-payment of fees,
which he (she) should receive for forwarding.
Article 713. Freight Forwarder’s Liability Under The Contract Of Freight Forwarding
1. Failure to perform or improper performance of obligations under the contract of freight

forwarding, the freight forwarder is liable on the grounds and in the amount determined in
accordance with the rules of Chapter 20 of this Code.
2. If the freight forwarder proves, that the breach of an obligation caused by the improper
performance of the contract of carriage, the liability of the freight forwarder to the client is
determined by the same rules, by which the corresponding carrier is responsible to the freight
forwarder.
Article 714. Unilateral Refusal To Perform A Contract Of Freight Forwarding
1. The client or the freight forwarder is entitled to refuse to perform the contract of freight
forwarding, with noticing the other party within a reasonable period of time.
2. When a unilateral refusal to perform the contract, the party, who has declared the
refusal shall compensate the other party the damages caused by the termination of the contract
.
Chapter 36. Loan
Article 715. LOAN AGREEMENT
1. Under the loan agreement, one party (the lender) transfers, and in the cases provided by
this Code or the contract, shall transfer to the ownership of (economic management,
operational management) another party (the borrower) money or things, with certain generic
characteristics, and the borrower agrees to return the lender the same amount of money or an
equal number of things of the same kind and quality.
2. Agreements, the performance of which involves transferring of money or things, with
certain generic features may provide for the granting of the loan, including the advance
payment, pre-payment, deferment and installment payment for goods (works and services),
unless another is provided by legislative acts and not conflict with the relevant obligations.
3. Legal entities and citizens are prohibited from raising money in the form of a loan from
the citizens as a business activity and such contracts are considered to be invalid from the
moment of their conclusion.
This prohibition does not apply to cases, where the borrowers are banks, which are
licensed by the authorized State agency to accept deposits, as well as on a pattern of money in
exchange for securities, the issue of which are registered in the manner prescribed by the
legislation.
10, 2003, № 483 (shall be enforced from January 1, 2004).
Article 716. Form Of The Loan Agreement
1. The loan agreement must be concluded in a form, consistent with the rules of Articles
151-152 of this Code.
2. The loan agreement deemed to be concluded in the proper writing form with the
presence of a bond, receipts of the borrower or other document certifying transfer to him (her)
by the lender a certain amount or a certain number of things.
Article 717. Conclusion Of The Loan Agreement
Loan contract is considered to be concluded from the time of the transfer of money or
things, unless another is provided by this Code or by agreement of the parties.
In cases, where the contract provides for the transfer of money or things in parts (in
installments), it is concluded from the time of the transfer of the first part, unless a contract
provides otherwise.
Article 718. Remuneration Under The Loan Agreement
1. Unless another is provided by legislative acts of the Republic of Kazakhstan or the

contract, for the use of the subject of the loan, the borrower pays a fee the lender in the
amount, defined by the contract.
2. Protection of the rights of borrowers of banks and organizations engaged in certains of
banking operations, micro-credit organizations and credit unions is provided by setting limits
on the size of the annual effective interest rate, including remuneration, all kinds of
commissions and other charges collected by the lender in connection with the issuance and
servicing of the loan, and calculated in the manner prescribed by the legislation of the
The maximum amount of annual effective interest rate is determined by the normative
legal acts of the National Bank of the Republic of Kazakhstan, in coordination with the
authorized state agency for regulation and supervision of financial market and financial
organizations.
3. If the borrower under the loan agreement are transferred things, the remuneration is
made in the case, where its size and shape (monetary or in-kind) provided by the contract.
4. The procedure and terms of remuneration are provided by the loan agreement.
If the order and terms of payment of remuneration are not provided by the contract, it is
paid monthly.
5. If the borrower does not return the subject of the loan in time, the remuneration is paid
for the entire period of use of the subject of loan.
official publication), as amended by the Laws of the Republic of Kazakhstan dated
publication), dated 26.11.2012 № 57-V (shall be enforced upon expiry of ten calendar days
Article 719. Providing The Subject Of Loan
1. The subject of the loan is provided in the time, in the amount and on the terms specified
in the agreement.
Unless another is provided by the contract, the subject of the loan is granted at the time of
its transfer to the borrower or including appropriate money to his (her) bank account.
2. The borrower may refuse to receive the subject of the loan in whole or in part by
notifying the lender in the contract term prior to its transferring, unless another is provided by
3. When granting a loan for consumption, defined by generic characteristics, execution of
the conditions on their number, range, completeness, quality, tare and (or) the packaging shall
be in accordance with the rules of the contract for the sale of goods (Articles 406-492 of the
Code), unless the contract provides otherwise.
Article 720. Special-Purpose Loan
1. Unless otherwise provided by the contract, the loan is expected to be without the
special purpose, and the borrower uses the loan subject at his (her) discretion.
2. In cases, where the contract is concluded under the condition of the usage of the
borrower the subject of the loan for certain purposes (special-purpose loan), the lender has the
right to exercise control over the purpose use of the loan, and the borrower must provide the
lender the possibility of such control.
3. Failure by the borrower of responsibilities for the purpose use of the subject of loan, as
well as the obligations under paragraph 2 of this Article, the lender has the right to cancel the
agreement of loan, accordingly failure to provide part of the subject of loan and demand the
borrower to the early return of the loan, and interest on it.
Article 721. Ensuring The Performance Of Obligations Of The Borrower
1. Performance of obligations to return the subject of the loan and payment of

compensation may be achieved in ways prescribed by this Code. In this case, the borrower
must provide the lender the ability to control the security of the loan, unless another is
provided by legislative acts or contract.
2. Failure by the borrower of responsibilities for the return of the object of the loan and
the payment of compensation, as well as in case of loss the security or deterioration of the
conditions due to circumstances, for which the lender does not respond, the lender has the
right to cancel the agreement of loan, respectively failure to provide part of the subject of the
loan and demand the borrower early return of the loan subject and interest on it.
Article 722. Return Of The Subject Of The Loan
1. The borrower must return the subject of the loan in the manner and time provided by
the contract.
Unless another is provided by the contract, the subject of the loan is considered to be
returned at the time of its transferring to the lender or including the appropriate money in his (
her) bank account.
If the return period of the loan is not provided by the contract, it must be returned by the
borrower within thirty days from the date of request of the lender about this.
The subject of the loan, which is granted without conditions of remuneration may be
returned early. The subject of the loan granted to the payment of remuneration may be
returned early from the consent of the lender or if the contracts provides so.
Remuneration on the loan can be repaid in advance at any time, unless another is provided
by the contract.
2. With the consent of the lender, the borrower's obligations may be performed: under the
agreement of money loan - taking into account the debt of things, determined by certain
generic characteristics; under the agreement of things loan - making money for debt. The cost
of these things is determined by agreement of the parties.
3. If the contract provides for the return of the loan in parts (installment), and when the
borrower violates by the deadline for return of the next part of the subject of the loan, the
lender has the right to demand early return of the entire subject of the loan along with
remuneration due.
4. If the contract provides for the payment of interest on the loan in time, lead time for the
return of the subject of loan, in violation of deadline for payment of compensation, the lender
has the right to demand the borrower to the early return of the loan, together with the subject
remuneration due.
Article 723. Term To Meet The Requirements For Early Return Of The Loan Subject
Upon presentation of the lender the requirements for early return of the loan subject on
the grounds provided by paragraph 3 of Article 720, paragraph 2 of Article 721, paragraphs 3
and 4 of Article 722, a new maturity date of return the subject of the loan and the payment of
the remuneration is calculated by the rule established by paragraph 1 of Article 722 of this
Code.
Article 724. Contestation Of The Loan Agreement

1. The borrower has the right to challenge the loan agreement, proving that the subject of
the loan (money or things) is not actually received by him (her) from the lender or obtained in
a smaller size or quantity, than that specified in the contract.
2. In cases, where the loan agreement must be made in writing (Article 716 of this Code),
its contestation by the testimony is not allowed, except where the contract was concluded
under the influence of fraud, violence, threats, malicious agreement of agents of the parties or
concurrence of difficult circumstances (paragraphs 9 and 10 of Article 159 of this Code).
725. Novation Of The Obligation In The Loan Agreement
1.By agreement of the parties, any obligation arising from transactions of purchase and
sale, lease of the property or other grounds may be executed by the loan agreement.
2. Registration of obligation in the loan agreement is carried out in compliance with the
requirements on novation (Article 372 of this Code) and is in the form, provided for the loan
agreement (Article 716 of this Code).
Article 726. Contract Of State Loan
1. Under the contract of state loan the borrower is the state, the lender is a citizen or legal
entity.
2. State loans are voluntary.
3. The State loan is concluded through the purchase by the lender of government bonds,
and other government securities (certified or uncertified), certifying the lender’s right to
receive from the borrower granted him (her) a loan of money or, depending on the terms of
the loan, other property equivalent, set remuneration or any other property rights within the
time specified in the terms of issue of the loan.
4. The obligations arising from the contract of state loan, the borrower is responsible by
the property of the State Treasury.
5. Features of the participation of the Republic of Kazakhstan on state loan may be
Article 727. Contract Of Bank Loan
1. Under the bank loan contract, the lender agrees to lend money to the borrower on the
terms of payment, maturity and repayment.
1-1. Under the bank loan contract, in which the lender is the Islamic bank, the loan of
money is based on the maturity and repayment and without charging fees for the use of
money.
2. To the contract of bank loan shall apply the rules relating to the loan agreement with
the specifications provided by Article 728 of this Code.
23.12.2005 № 107 (the order of enforcement see Art. 2); dated 12.02.2009-IV №133 (the
order of enforcement see Art. 2).
Article 728. Features Of The Bank Loan Contract
The bank loan contract has the following features:

1) the lender is a bank or other legal entity, licensed from the authorized state body for
loans in cash;
2) the subject of the contract is money, that can be provided in the future. In the latter case
, the contract is deemed entered into force from the moment of its conclusion (paragraph 1 of
Article 393 of this Code), unless this contract provides otherwise;
3) The contract shall be in writing. Failure to comply with the written form shall entail the
invalidity of the contract of bank loan;
4) the contract cannot contain a condition, providing the right of bank or other legal entity
, which is licensed by authorized State body on loans in cash, to unilaterally change the terms
of the contract, unless another is provided by legislative acts of the Republic of Kazakhstan;
5) to the bank loan contract shall not apply the provisions of paragraph 2 of Article 722 of
this Code, except as provided by the banking legislation of the Republic of Kazakhstan;
6) the provisions of paragraphs 3 and 4 of Article 722 of this Code shall apply to the
contract of bank loan, if the borrower violates the deadline for returning the next part of the
loan subject and (or) the payment of compensation, by more than forty calendar days.
Banks are prohibited from issuing loans, secured by shares, an issuer of which is the bank
or loan for the purchase of these shares.
Chapter 37. Financing Under Cession of Monetary Claim (Factoring)
Article 729. Contract Of Financing Under Cession Of Monetary Claim (Factoring)
1. Under the contract of financing under cession of monetary claim, one party (financial
agent) transfers or agrees to transfer the money to the other party (the client), and the client
assigns or agrees to assign to the financial agent monetary claim against a third party, arising
from the relationship between the client (creditor) with this third party (the debtor).
Monetary claim against the debtor may be assigned by the client to the financial agent in
order to ensure the fulfillment of an obligation of the client before the financial agent.
2. Obligations of the financial agent under the contract of financing under cession of
monetary claim may include conducting to the client accounting and production of documents
in respect of money claims (billing on monetary claims) that are the subject of concessions, as
well as providing the client with other financial services related to these requirements.
3. General rules on assignment of claims, established by this Code (Articles 339-347 of
this Code) shall apply to financing under cession of monetary claim, unless another is
provided by this Chapter.
Article 730. Form Of Contract On The Financing Under Cession Of Monetary Claim
Contract of financing under cession of monetary claim must be made in writing in

compliance with the provisions of Article 346 of this Code.
Article 731. Monetary Claim, Assigned In Order To Funding
1. The subject of the assignment, where funding is provided, may be a money claim, the
payment maturity which has already arrived (the current requirement), and the right to receive
the money that arising in the future (the future requirement).
Monetary claim which is the subject of assignment must be defined in the contract
between the client and the financial agent, in a way that allows the identification of the
existing monetary claim at the time of conclusion of the contract, and future demand - no later
than at the time of its occurrence.
2. The current cash requirement is deemed to be transferred to the financial agent from the
moment of conclusion of the contract, unless the contract provides otherwise.
When the assignment of future monetary claim, it is considered to be transferred to the
financial agent, after arising the right to receive money from the debtor, which is the subject
of assignment of a claim under the contract.
If the assignment of a monetary claim due to the certain event, it shall enter into force
after the occurrence of the event. Additional registration of the assignment of a monetary
claim in these cases is not required.
Article 732. Responsibility Of The Client To Financial Agent
1. Unless the contract provides otherwise, the client is liable to the financial agent for the
invalidity of a monetary claim, which is the subject of the assignment.
2. A monetary claim which is the subject of the assignment shall be valid if the client has
the right to transfer the monetary claim, and at the time of the assignment, he (she) is not
aware of the circumstances, due to which the debtor has the right not to execute them.
3. The client is not liable for non-performance or improper performance by the debtor of
the claim, which is the subject of the assignment, in case of presenting it by financial agent
for execution, unless another is provided by the contract between the client and the financial
agent
Article 733. Invalidity Of The Prohibition Of Assignment Of A Claim

Assignment of a monetary claim to the financial agent is valid, even if the client and his (
her) debtor have an agreement on its prohibition or restriction.
Article 734. Subsequent Assignment Of A Monetary Claim
Unless the contract of financing under cession of monetary claim provides otherwise, the
subsequent assignment of a monetary claim by the financial agent shall not be allowed.
In cases, where the subsequent assignment of a monetary claim is allowed by the contract,
to it accordingly shall apply the provisions of this Chapter.
Article 735. Performance Of Monetary Claim To The Financial Agent By The Debtor
1. Debtor is obliged to make payment to the financial agent under the condition that he (
she) received from the client or from the financial agent a written notice of the assignment of
a monetary claim to that financial agent.
The notification shall be specifically identified enforceable monetary claim and specified
the financial agent to whom payment shall be paid.
2. At the request of the debtor, the financial agent shall, within a reasonable period submit
to the debtor the proof that the assignment of a monetary claim by the financial agent actually
took place. If the financial agent does not fulfill this obligation, the debtor has the right to
make payment to the client pursuant to the performance of his (her) obligation before the last.
3. Performance of a monetary claim by the debtor to the financial agent in accordance
with the rules of the present Article, releases the debtor from the corresponding obligations to
the client.
Article 736. The Right Of The Financial Agent On The Amounts Received From The Debtor
` 1. If, under the terms of the contract of financing under cession of monetary claim, the
financing of the client is carried out by purchase by the financial agent, and the latter acquires
the right to all the amounts, that he (she) shall receive from the debtor in response to a request
, and the client is not liable to the financial agent for the fact that resulting by him (her) sum is
less than the amount paid by the financial agent to the client.
2. If the assignment of a monetary claim to the financial agent exercised as a way to
ensure the fulfillment of the client's obligations to the financial agent and contract of
financing under cession of claims does not provide otherwise, the financial agent must
provide a report to the client and send him (her) an amount, exceeding the amount of the
client’s obligation, secured by the assignment of claim. If the money, received by the
financial agent from the debtor, was less than the amount of the client’s obligations to the
financial agent, secured by assignment of the claim, the client is responsible for the remainder
of the obligation.
Article 737. Counterclaims Of The Debtor
In the case of addressing the financial agent to the debtor with claim to effect the payment
, the debtor is entitled, in accordance with Article 370 of this Code to present to set-off his (
her) cash requirements, based on the contract with the client, which were already at the debtor
at the time, when they received notification of the assignment of claims to the financial agent.
The financial agent has the right to refuse from set-off, if the client has not informed him (
her) on the existence of obligations to the debtor.
Article 738. Return To The Debtor The Amounts, Received By Financial Agent
1. In the event of the client’s violation of his (her) obligations under the contract with the
debtor, the latter may not require from the financial agent of the refund, which he (she) has
already paid on the request passed to the agent, if the debtor is entitled to receive such
amounts directly from the client.
2. The debtor, who has the right to receive directly from the client sums, paid to the
financial agent as a result of the assignment the claim, nevertheless, has the right to demand
the return of those sums from the financial agent, if it is proved that the latter has not fulfilled
his (her) obligation to the client to exercise its financing under cession of claim or has made
such financing, knowing the client’s violation the obligations to the debtor, to whom applies
financing associated with the assignment of the claim.
Article 738-1. Assignment Of A Monetary Claim In Project Finance And Securitization
Features of financing under cession of monetary claim in project finance and

securitization established by legislation of the Republic of Kazakhstan on project finance and
securitization. The provisions of this chapter shall apply to the transactions of project finance
and securitization, unless another is provided by the legislative act of the Republic of
Kazakhstan on project finance and securitization.
Footnote. Article 738-1 is in the wording of the Law of the Republic of Kazakhstan dated
Chapter 38. Banking service

Article 739. Banking Services Contract
1. Under the banking services contract, one party (the bank) undertakes, on behalf of the
other party (the client) to provide banking services, and the client agrees to pay for these
services, unless another is provided by the contract.
2. Banking services contract may be:
1) a bank account agreement;
2) an agreement to transfer money;
3) bank deposit agreement;
4) others of contracts, provided by legislation or agreement of the parties.
2-1. Bank accounts shall open at the conclusion of the agreement with the bank and the
agreement of the bank account (or) deposit.
3. The bank may use the money in the account, to ensure the client's right to freely
dispose of his (her) money.
publication).
Article 740. Restrictions On Money Orders, In Banks
1. The money of legal entities (except banks, insurance (reinsurance) companies, pension
funds, deprived by the authorized state agency of license and (or) is in the process of forced
liquidation) and citizens in banks, may be seized only by the courts, investigation and inquiry,
and executive proceeding agencies in the cases, which are under their production, as criminal
and civil cases and cases of enforcement proceedings in the manner and on the grounds,
prescribed by criminal and civil procedure legislation of the Republic of Kazakhstan and the
legislation of the Republic of Kazakhstan on enforcement proceedings.
2. The arrest term of money of legal entities and citizens in banks may not exceed the
deadline, set for the respective cases by criminal procedure and civil procedure legislation of
3. Decisions of the organs of investigation and inquiry to seize the client’s money may be
appealed to the Court in accordance with the legislative acts of the Republic of Kazakhstan.
4. The suspension of debit operations on the client's bank accounts are made in order and
in cases stipulated by legislative acts of the Republic of Kazakhstan.
5. Disposal of public authorities, which are entitled to suspend the debit operations on the
client's bank accounts, does not apply to the amount of money, which is seized by the
decision of the authorized state bodies or officials on the arrest.
6. The decisions of the authorized state bodies or officials, who are entitled to seize client’
s money in his (her) bank accounts, made after the acceptance by the Bank to the execution
the orders of the authorized State bodies on the suspension of debit operations, shall be
executed after the cancellation of this order, with the exception of cases established by
paragraph 7 of this Article.
7. Arrests imposed on the client's money in his (her) bank accounts, in order to secure the
claim or the enforcement of executive documents are executed on a priority basis, with the
exception of a seizure in order to meet the requirements of sub-paragraph 4 of paragraph 2 of
The fulfillment by the bank of earlier decisions of the authorized state bodies or officials
on the arrest and the orders of authorized state bodies, who are entitled to suspend the debit
operations on the client's bank accounts, shall be suspended within the amount of money, for
which the arrest is effected in order to claim or enforcement documents.
When for the client's money in his (her) bank accounts, there are seizures for more than
one arrest, in order to secure the claim or the enforcement documents, they shall be executed
in the order of their acceptance by the bank.
Other decisions of the authorized state bodies or officials on the seizure and disposal of
the authorized state bodies, who are entitled to suspend of debit operations on the client's
bank accounts, are executed in the order of their acceptance by the bank, after the withdrawal
or cancellation of the arrest, imposed in order to claim or enforcement documents.
11.07.2009 № 185 (shall be enforced from 30.08.2009); as amended by the Law of the
Republic of Kazakhstan dated 10.02.2011 №406-IV (shall be enforced upon expiry of ten
Article 741. Withdrawal Of Money Without The Consent Of The Client
Withdrawal in banks and other organizations, engaged in certains of banking operations,

money of legal entities and citizens without their consent can be made only on the basis of an
enforceable court decision and in the cases stipulated by the Tax Code of the Republic of
Kazakhstan, the customs legislation of the Customs Union and (or) of the Republic of
Kazakhstan and the legislative acts of the Republic of Kazakhstan on pension and compulsory
social insurance.
22.06.2006, № 147; as amended by the Law of the Republic of Kazakhstan dated 30.06.2010
№ 297-IV (shall be enforced from 01.07.2010).
Article 742. Order Of Priority Of The Withdrawal Of Client’s Money
1. If the client’s money in bank is sufficient to cover all claims, presented to the client, the
withdrawal can be made in the order of receipt of the client or other persons orders (calendar
order), unless another is provided by legislation.
2. If the client’s money in deposits is not sufficient to cover the next claim, presented to
the client, the Bank accumulates received in favor of the client money, the amount of which is
sufficient to meet this requirement, except for the cases stipulated by legislative acts of the
Republic of Kazakhstan. Upon presentation to the client several requirements, the bank shall
produce the withdrawal of client’s money in the following order:
1) primarily by withdrawal of money on executive documents, providing for the
satisfaction of claims for damage caused to life and health, as well as claims for alimony;
2) in the second stage is withdrawal of money on executive documents, providing for the
withdrawal of money to settle the payments of severance benefits and wages of persons,
working under an employment contract, remuneration to the author's contract, the client’s
obligations to transfer mandatory pension contributions to pension funds and social
deductions to the state social insurance fund;
3) in the third stage is withdrawal of money for the client’s obligations to the budget;
4) in the fourth stage is the removal of money on executive documents, providing the
satisfaction of other monetary claims;
5) in the fifth stage is withdrawal of money to meet other requirements, presented to the
client in the calendar order.
Withdrawal of money from the bank to the requirements, relating to the same queue, is
made in time of sequence receipt of the relevant documents.
3. Upon liquidation of the legal entity, that is the client satisfaction of creditors' claims are
made in the order provided in Article 51 of this Code.
March 29, 2000 № 42; dated March 13, 2003 № 394; by the Law of the Republic of
Kazakhstan dated July 9, 2003, № 482; dated April 8, 2004 № 542 (shall be enforced from
January 1, 2005); dated May 15, 2007 № 253.
Article 743. Banking Services To The Organizations, Performing Certains Of Banking Operations
Certain banking services may provide organizations, engaged in certains of banking

operations.
Provision of certains of banking services by these organizations is carried out in
accordance with the procedure established by this Code and legislative acts of the Republic of
Kazakhstan.
Footnote. Article 743 amended by the Law of the Republic of Kazakhstan dated
December 23, 2005 № 107 (the order of enforcement see Art. 2 of the Law № 107).
Article 744. Payment For Bank Services
The client pays for bank services, provided by the contract of banking services, on the
terms and in the manner prescribed by the contract.
Article 745. Bank Secrecy
Bank guarantees the confidentiality of bank secrecy.

The list of information, constituting the bank secrecy and the grounds of its issuance shall
be determined by the legislative acts regulating banking activity.
Article 746. Liability For Violation Of The Terms Of Banking Client Service
For violation of banking clients service, banks and organizations engaged in certains of
banking operations, are responsible within the limits established by the legislative acts of the
Republic of Kazakhstan regulating banking activities and contracts of banking services.
March 29, 2000 № 42.
Paragraph 2. Bank account
Article 747. Bank Account Agreement
1. According to the bank account agreement, one party (the bank) agrees to take the
money, received in favor of the other party (the client), to perform the client's orders to
transfer (grant) to the client or to third parties, the relevant sums of money and provide other
services provided by the bank account agreement.
Under the bank account agreement, to the client or to the person specified by him (her),
for the purpose of accounting the client’s money, in the Bank is assigned a unique
identification code of the client, on the terms agreed by the parties. The order of assignment,
cancellation of individual identification code of the client, the bank accounting of the client’s
money is determined by the banking legislation.
2. Legal entities and citizens independently choose banks for service and have the right to
conclude the contracts of bank account, with either one or several banks.
3. Bank account agreement is unlimited, unless another is stipulated by legislation or
November 29, 1999 № 486.
Article 748. The Form Of Bank Account Agreement
1. Bank account agreement must be in written form.

2. Failure to comply with the written form of bank account agreement shall entail the
invalidity of the contract.
Article 749. Disposal Of The Client’s Money
1. Bank withdrawals the client’s money in the bank, by the order of the client, unless
another is provided by legislation or bank account agreement.
The bank is not entitled to determine and control the direction of using the client’s money
and install other restrictions on his (her) right to manage the money on his (her) own, that are
not established by the legislation, unless another is provided by legislation or bank account
agreement.
2. If the money had been made by a citizen, the right to dispose of the money in the bank,
uses either the citizen, or the person to whom he (she) has entrusted this right.
If the money had been made by a legal entity, the right to dispose of the money in the
bank, uses the head of the legal entity and (or) any other person, autorized by him (her).
3. Rights of persons, who are exercising on behalf of a client order, the management of
the money in the bank, confirms by the client through providing the bank the documents,
required by legislation and contract.
4. By the bank account agreement must be set the procedure for disposal of the money in
the bank. Requirements for this procedure are established by the legislative acts regulating
banking activity.
Article 750. Operations, Performed By The Bank Under The Bank Account Agreement
1.In accordance with the bank account agreement, the bank shall:
1) ensure the availability of money upon presentation of the client’s requirements;
2) take the money, received for the benefit of the client;
3) carry out the client’s order to transfer the money for the benefit of third parties;
4) execute the orders of the third parties to withdraw money of the client, if it is stipulated
by legislative acts of the Republic of Kazakhstan and (or) the bank account agreement;
5) receive from the client and the issuance to him (her) the cash money in the manner
prescribed by the bank account agreement;
6) provide upon request of the client, the information on the amount of money in the bank
and the transactions, made in the manner provided by the contract;
7) perform other banking services to the client, provided by the contract, legislation and
applicable in the banking business practices.
2. The Bank is obliged to accept the money, received in favor of the client, as well as the
seizure or the issuance of money of the client, with the reflection of such operations on his (
her) individual identification code no later than the day following the day of receipt to the
bank an appropriate entry, unless other terms are provided by legislative acts and published in
accordance with them, regulations of the National Bank of the Republic of Kazakhstan.
11.07.2009 № 185 (shall be enforced from 30.08.2009).
Article 751. Remuneration For The Use Of Money
For the use of funds in the bank, the bank shall pay remuneration in the amount and
manner determined by the contract.
November 29, 1999 № 486.
Article 752. Termination Of The Bank Account Agreement

1. Bank account agreement is terminated at the request of the client at any time, unless
another is provided by law or contract.
2. Termination of the bank account agreement is grounds for cancellation of the individual
identification code of the client.
3. Money, left in the bank, is issued to the client or by his (her) instructions translated (
removed) in favor of third parties
Article 753. Bank Accounts Of Bank
The provisions of this Chapter shall apply to the bank accounts of banks, unless otherwise
stipulated by the legislative acts or adopted in accordance with the regulations of the National
Bank of Kazakhstan.
Paragraph 3. Money transfer
Article 754. Contract On The Transfer Of Money
1. Under the contract on the transfer of money, one party (the bank) undertakes, on behalf
of the other party (the client) to transfer the money to a third party, without assigning an
individual identification code to the client.
2. The order of the bank to transfer money without assigning to the client an individual
identification code is established by legislative acts that regulate banking activity.
Article 755. Conclusion Of Contracts On The Transfer Of Money
Contracts on the transfer of money without opening a bank account is concluded, if the
Bank adopts the client's order at the time of his (her) request to provide him (her) such
banking services, unless another is stipulated by legislative acts regulating banking activity.
Paragraph 4. Bank deposit
Article 756. Bank Deposit Agreement
Under the bank deposit agreement, one party (the bank) agrees to accept from the other
party (investor) money (deposit), to pay for them interest in the amount and manner provided
by the bank deposit agreement, and return the deposit on the conditions and in the manner
provided for the contribution of this by legislation and contract.
For each of thes of deposits, banks in order to take into account the money of a client,
assign to him (her) an individual identification code. The order of assignment, cancellation of
individual identification code, bank accounting of the client’s money is determined by the
banking legislation of the Republic of Kazakhstan.
Features of bank deposits can be established by legislative acts of the Republic of
Kazakhstan, regulating the banking activity.
09.07.2003 № 482; dated 12.02.2009 № 133-IV (the order of enforcement see Art. 2).
Article 757.s Of Bank Deposits
1. Depending on the conditions of return, the deposits areified into the followings:
1) demand deposit;
2) time deposit;
3) conditional deposit.
2. Demand deposit is refundable, in whole or in part, at the first request of the depositor.
Time deposit is made for a certain period.
Conditional deposit is made to the occurrence of certain circumstances by the bank
deposit agreement.
3. In cases, where the time deposit is requested by the depositor before the deadline, and
the conditional deposit - until the occurrence of certain circumstances by the agreement of
bank deposit, the remuneration is payable in the amount established by the deposit before the
demand, unless another is provided by the bank deposit agreement.
Article 758. Form Of A Bank Deposit Agreement
1. Bank deposit agreements must be concluded in written form, meeting the requirements
established by legislative acts regulations of the National Bank of the Republic of Kazakhstan
and used in banking practice business customs.
2. At the request of the depositor, the document, identifying the made contributions can be
filled either in his (her) name or in the name of a certain third party.
3. Failure to comply with the written form of the bank deposit agreement shall entail the
invalidity of the contract.
January 12, 2007, № 225 (shall be enforced from the day of its official publication).
Article 759. Term Of The Bank Deposit Agreement
1. Bank deposit agreement is concluded with the receipt of the deposit to the Bank.
2. Bank demand deposit agreement is indefinite.
3. If, the depositor does not claim the time deposit amount, after its expiration, and the
amount of conditional deposit, after the occurrence of the circumstances, with which the bank
deposit agreement binds the refund of deposit, the bank deposit agreement is extended for the
terms of the demand deposits, unless otherwise provided by the contract.
Article 760. Remuneration Under The Agreement Of Bank Deposit

1. The bank shall pay to the depositor remuneration in the amount of the contribution,
which is determined by the bank deposit agreement.
2. The bank is not entitled to change the remuneration on deposits unilaterally, except in
cases of extension of the deposit term, provided by the bank deposit agreement.
Article 761. Procedure For The Payment Of Remuneration On Bank Deposit Agreement
1. Remuneration under the bank deposit agreement is paid by the bank in the manner and
amount established by the bank deposit agreement.
2. Unless otherwise provided by the bank deposit agreement, remuneration on bank
deposit is paid to the depositor at his (her) request at the end of each quarter, separately from
the amount of the deposit, and the amount of unclaimed interest in the period increases the
amount of the deposit, for which remuneration is paid.
By return of the deposit to the depositor is paid all contributions due to him (her) at this
point.
3. On demand deposits, the depositor is entitled to receive remuneration due to him (her)
on the deposit, separately from the amount of the deposit.
On the time deposits, the depositor is also entitled to receive remuneration due to him (her
) on the deposit, separate from the amount of the deposit, before the expiration of its term, but
, unless another is provided by the bank deposit agreement, the amount of remuneration is
recalculated with respect to the amount, that is used by the bank for demand deposits. After
the expiry of the deposit term , the depositor is entitled to receive remuneration due to him (
her) in full, regardless of whether he (she) seeks the contribution or not (paragraph 3 of
On conditional deposits, receipt by the depositor the remuneration due to him (her),
separately from the amount of the deposit is made in the manner prescribed by the bank
deposit agreement.
4. Remuneration is paid within the time and in the form provided for the return of the
deposit (Article 765 of this Code).
5. With the full return of the deposit to the depositor is paid all contribution due to him (
her) at this point.
Article 762. Making Contributions
1. Unless otherwise provided by the bank deposit agreement, the depositors make
contributions both in cash and by bank transfer.
2. On demand deposit, money can be made by depositor in individual contributions in any
amount and frequency. The calculation of remuneration on the newly acquired amounts is
made in relation to remuneration amount, which was used by the bank on the day of receipt of
money.
In time deposits, as well as conditional deposits the money is made by the depositor in the
form of a single payment, unless another is provided by the bank deposit agreement.
Article 763. Making Money Contributions To The Deposit By Third Parties
To the deposit is made money, received by the bank in the name of the depositor from the
third parties, indicating the required information on his (her) individual identification code.
Article 764. Contributions In Favor Of Third Parties
1. Contributions can be made to the bank in the name of a certain third party.
Specifying the name of the citizen (Article 15 of this Code) or the name of the legal entity
(Article 38 of this Code), in favor of which the contribution is made, is an essential condition
of the bank deposit agreement.
Bank deposit agreement in favor of the citizen, who died at the time of conclusion of the
contract or non-existent of the legal entity at this point, is not valid.
2. In the case of a written refusal of a third party from the rights of the depositor, the
person, who has concluded the bank deposit agreement, can exercise the rights of the
depositor, in respect of money contributed by him (her) to the deposit.
3. When making in favor of a third party the conditional deposit, he (she) is entitled to
dispose them only under the contractual terms of the bank deposit agreement. Before the
onset of these conditions, the third party may dispose of the contribution only by written
permission of the persons, who made contributions.
The condition of the deposit shall be recorded in writing in the bank deposit agreement,
and not to contradict the legislation and has no ambiguities that impede the issuance of
deposit.
To obtain the conditional deposit, the third party shall submit to the bank documents,
confirming compliance with the specified conditions.
The person, who has made a conditional contribution in favor of a third party, has the
right to: change the set condition, in the event that a third person has not submitted a
document, confirming this condition; dispose of the contribution in the event that a third party
violates the conditions, specified when making the deposit, or his (her) death before the
fulfillment of the conditions stipulated by the bank deposit agreement.
4. Rules on the contract in favor of a third person (Article 391 of this Code) shall apply to
the bank deposit agreement in favor of a third party, unless it is contrary to the rules of this
Article.
Article 765. Return Of Bank Deposits
1.Bank is obliged to issue a deposit or its part at the first request of the depositor:
1) on demand deposits - on receipt of the request of depositor;
2) on time deposits - on the due date, provided by the bank deposit agreement;
3) conditional deposits - the circumstances, by the occurrence of which the bank deposit
agreement binds the return of the deposit;
2. The depositor is entitled to early repayment of the time deposit.
The bank is obliged to issue deposit or its part no later than five days from the moment of
receipt of the depositor’s request.
3. Under the conditional deposit, the depositor has the right to return the contribution,
before the occurrence of the circumstances with which the bank deposit agreement binds the
return of the deposit. At the same time, the bank is obliged to issue deposit or its part within
the period provided by paragraph 2 of this Article.
4. Regulation of the bank deposit agreement, on the refusal of the depositor, from the right
to early receipt of time deposits, as well as a conditional deposit before the stipulated
conditions, is invalid.
5. Contributions made in a foreign currency must be returned in the same currency, unless
otherwise provided by legislative acts, the bank deposit agreement or supplementary
6. In the event of default of the bank the depositors’ claim on the return of deposit or its
part within the time limits specified in paragraphs 2 and 3 of this Article, the payment of
remuneration continues under the conditions stipulated in the bank deposit agreement.
6-1. The provisions of this Article shall not apply to contributions that are the subject of
pledge.
7. Issuance of bank deposit may be suspended on the grounds and in the manner
prescribed by the Law of the Republic of Kazakhstan "On counteraction of legalization (
laundering) of income proceeding from crime and financing of terrorism".
29.03.2000 № 42; dated 28.08.2009 № 192-IV (shall be enforced from 08.03. 2010); dated
official publication); dated 21.06.2012 № 19-V (shall be enforced upon expiry of ten calendar
days after its first official publication).
Article 766. Ensuring The Return Of The Bank Deposit
The means and methods, that the Bank must be used to ensure the return of deposits, are
determined by the laws, regulations of the National Bank of the Republic of Kazakhstan and
the bank deposit agreement.
Article 767. Payment Of Bank Services For The Commission Of Operations On The Bank Deposit
The depositor pays for the services of the bank on the commission of operations on the
bank deposit, in the manner prescribed by the contract.
Chapter 39. Storage

Paragraph 1. General provisions on the storage
Article 768. Storage Agreement
1. Under the storage agreement, one party (the keeper) undertakes to keep the thing,
transferred to him (her) by the other party (the depositor), and return this thing safe.
2. Storage agreement recognized as concluded from the moment the thing is deposited.
3. The provision of this chapter shall not apply to the protection of immovable property.
Article 769. Agreement For Taking The Item For Storage
1. The keeper, who storages items as a business activity, can take on under the contract
obligation accept storage for items of the depositor and keep the depositor’s items in
accordance with the provisions of this Chapter.
2. The keeper, who has assumed the obligation under the contract to take the thing for
storage, may not require the transfer of this thing to him (her). However, the depositor, who
does not transfer the deposited thing in the contract time, shall be liable to the keeper for the
losses incurred in connection with the failed storage, unless otherwise provided by legislation
or contract.
3. The depositor shall be exempt from liability for non-transference of the thing for
storage, if he (she) refuses to accept the keeper’s services in a reasonable period of time.
4. Unless otherwise provided by the contract, the keeper is released from the obligation to
take the thing for storage in cases, when thing is not transferred for storage in the contract
term, and when this term is not defined - after thirty days from the day of conclusion of the
contract.
Article 770. The Duty To Take The Thing For Storage
The keeper, who is responsible for storage due to his (her) business activity, is not entitled
to refuse to accept things for storage, if technically feasible, unless it is otherwise provided by
legislation. In such cases, storage contracts are recognized as public (Article 387 of this Code)
.
Article 771. Keeping Things With Loss Of Identity
1. When storing items with without specific identities, the items, accepted for keeping can
be mixed with the items of the same kind and quality of other depositors. The depositor shall
be returned equal or agreed by the parties on the quantity of items, of the same kind and
quality.
2. When storing items without specific identities, items should be separated from the
items of the same kind and quality, if legislation or by agreement of the parties establishes
this.
Article 772. Form Of Storage Agreement
1. A storage agreement must be in written form, except for putting things in the short-term
storage in lockers, and dressing stations, airports, institutions, companies, theatres, museums,
stadiums, restaurants, etc. with the issuance by the keeper of the numbers, counters and other
legitimizing marks.
2. The written form of contract is considered to be complied with, if the adoption of things
in storage is certified by the keeper by issuing to the depositor secure receipts, receipts,
certificates, a document signed by the keeper.
3. A storage agreement in the form of household services can be concluded orally.
4. In the event of a dispute over the identity of the thing, accepted for storage, and things
returned by the keeper, is allowed the testimony.
5. Delivery things for storage in an emergency (fire, flood, etc.), in the absence of a
written form of agreement may be proved by the testimony, regardless of the value of the
deposited thing.
Article 773. Period Of Storage
1. If the thing is deposited on demand or without specifying the period, the keeper has the
right after the normal retention period in these circumstances to require that the depositor
takes their items back, but must give the depositor a reasonable period of time to collect their
things.
2. The depositor is entitled at any time to demand his items from the keeper, even if the
contract had provided a period of storage. However, in this case, the depositor shall reimburse
the keeper losses due to the early termination of the obligation, unless the contract provides
otherwise.
Article 774. Remuneration And Reimbursement Of Expenses Of The Keeper
1. The amount of remuneration to the keeper under the storage contract is determined by
the agreement of parties. In the cases established by legislative acts, the amount of
remuneration may be determined by the fees, rates, tariffs.
2. By agreement of the parties or legislation may be agreed the gratuitousness of storage.
When gratuitous storage the depositor must reimburse the keeper necessary actual expenses to
save things.
3. Unless another is provided by legislation or by agreement of the parties, the fee for
storage shall be paid to the keeper at the end of the store, and if payment is provided by
period - at the end of each period. If storage is terminated prior to the expiration of a term in
the contract of storage, the keeper should be paid commensurate part of the remuneration.
4. If, at the expiration of the contract period, the stored item is not taken back by the
depositor, he (she) is obliged to pay compensation to the keeper for further storage of item at
the same rate.
5. Unless otherwise specified by the contract, the storage costs are included in the amount
of remuneration. It is assumed, that the extraordinary expenses are not included in the amount
of remuneration or to the costs, under the contract.
Article 775. Duties Of Keeper To Ensure The Safe Holding Of Items
1. The keeper shall take all the contractual and other necessary measures to ensure the
safety of the items transferred to him. .
2. If the storage is free of charge, the keeper must take care of the items accepted as if
they were his (her) own property.
3. Items must be returned in the same condition, in which it was accepted for storage,
allowing for its natural deterioration or natural losses.
4. The keeper is not entitled to use the item, except when it is provided by the contract,
and if the use of the thing is necessary to ensure its preservation.
5. Along with the return of the item, the keeper is obliged to transfer the fruits and
revenues, received during its storage, unless otherwise provided by the contract.
Article 776. Change Of Conditions Of Storage
1. If it is necessary to change the conditions of items stored under the storage agreement,
the keeper shall immediately notify the depositor of these changes and wait for his (her)
response.
2. In the case, where there is a risk of loss or damage to the item, the keeper is obliged to
change the contractual process and place of storage, without waiting for the depositor’s
response to such a change (paragraph1 of this Article).
3. If the thing in storage has been damaging or any other circumstances, which do not
ensure its safety, and action on part of the depositor cannot be expected, the keeper has the
right to sell the item or part of it, for the reimbursement of his (her) own costs for storage and
sale.
Article 777. Transfer Of The Item For Keeping To A Third Party
1. If the legislation or the contract provides otherwise, the keeper shall not, without the
consent of the depositor to transfer the thing for storage to a third party, unless this is not
needed for the interest of the depositor and the keeper is unable to obtain his (her) consent.
On transfer of thing to a third party, the keeper shall immediately notify the depositor.
2. The keeper is responsible for the actions of a third party, to whom he (she) handed the
items for storage.
Article 778. Keeper’s Responsibility For Failure To Store Things
The keeper is responsible for the loss, shortage or damage to the item accepted for storage
. He (she) is exempt from liability, if he (she) proves that the loss, shortage or damage of
things, had not happened by his (her) fault.
Article 779. Responsibility Of The Keeper-Entrepreneur
1. The person performing the storage due to his (her) entrepreneurial activity, shall be
exempt from liability for failure to store things only in cases where the loss, shortage or
damage of things was caused by force majeure, the properties of the item, or the intent or
gross negligence of the depositor.
2. If at the expiry date of storage under the contract, or the period specified by the keeper
in the manner prescribed in Article 773 of this Code, the thing will not be taken back by the
depositor, the keeper is responsible for the loss, shortage or damage of this thing only if there
is intent on his (her) part or gross negligence.
Article 780. The Amount Of Liability Of The Keeper
1. Damages caused to the depositor by the loss, shortage or damage of things compensate
by the keeper in accordance with Article 350 of this Code, if the legislative acts or the
contract provides otherwise.
2. If on transferring for storage was assessed the thing, specified in the contract or other
written document, issued by the keeper, the keeper’s liability is determined based on the
amount of the assessment.
3. In cases when due to inappropriate storage conditions, the losses inflicted on the
depositor by loss, shortage or damage of items are compensated under the following terms:
1) for loss or shortage of items- equal to the cost of the lost or missing items;
2) for damage to items - the amount by which the cost has gone down.
4. If the damage, for which the keeper is responsible, the quality of the things have
changed so much that it cannot be used for its original purpose, the depositor has the right to
reject it and require the keeper to reimburse the cost of this thing, as well as compensation for
other losses, unless another is provided by legislation or contract.
Article 781. Consequences Of Violation Of The Terms Of Getting Items

1. The depositor is obliged, within the period specified in Article 773 of this Code, to take
back the deposited item.
2. When deviation of the depositor from obtaining his (her) items, the keeper is entitled
after warning no less than a month to demand the sale of things, in the manner prescribed by
the Civil Procedure Code of the Republic of Kazakhstan, unless otherwise provided for by
3. The proceeds from the sale of things are transferred to the depositor, net of amounts
due to the keeper.
Article 782. Compensation For Losses Caused To The Keeper
The depositor is obliged to compensate the keeper in the event that the nature of the item
stored causes damage to the keeper’s property, if the keeper, taking the thing for storage, was
not informed and had no reason to suspect this potential for damage .
Article 783. Application Of The General Provisions On The Storage For Its Individuals
General provisions on the storage apply for its individuals, unless the rules of certains of
storage provided by Articles 784-802 of this Code and (or) other legislation provides
otherwise.
Paragraph 2. Certains of storage
Article 784. Storage In A Pawn Shop
1. Agreement for the storage of items in a pawnshop is formalized by the issuance of the
pawn shop a nominal deposit receipt.
2. The item which is deposited in a pawn shop is evaluated by the agreement of the parties
, in accordance with the prices of items for this kind and quality, usually determined by the
trade at the time and place of its acceptance for storage.
3. Pawn shop must insure to the benefit of the depositor, the adopted for storage thing in
the full amount of its valuation, made in accordance with paragraph 2 of this Article.
Article 785. Unclaimed From The Pawnshop Thing
1. In the case of deviation of the depositor from getting back of thing, the pawnshop must
keep it for three months. After this period, the unclaimed thing may be sold by the pawnshop
in the manner prescribed by paragraph 2 of Article 781 of this Code.
2. The proceeds from the sale of thing, shall be retired the storage fee and other payments
due to the pawnshop. The remaining amount is returned by the pawnshop to the owner of the
deposit receipt by its presentation.
Article 786. Storage Of Valuables In The Bank

1. The bank may take for storage securities, precious metals, jewels and other valuables,
as well as documents.
2. The contract for storing valuables in the bank is made by issuing of the bank to the
depositor the named secure document, which shall be ground for the issuance of stored values
to the depositor or his (her) representative.
3. The contract for storage valuables using a safe deposit box (safe boxes, a separate room
for storage) may be concluded by the Bank action on the adoption of the values for storage
and the issuance to the depositor the key for the safe, cards, identifying the depositor, other
sign or a document, certifying the right of the bearer to access to the safe and getting values
from it.
4. Unless otherwise provided by the contract, the depositor may at any time withdraw
valuables from the safe, return them back, or work with stored documents. The bank has the
right to register the obtaining and returning of values by the depositor.
5. Upon receipt of the depositor, including temporary, part of the values from the safe, the
bank is responsible for the safety of the remaining values.
6. The rules established by this Article on safekeeping of valuables in the safe deposit box
are not applied to cases, where a bank gives its safe (safe box, a separate room for storage) to
another person for use under the terms of the tenancy.
Article 787. Storage In Luggage Lockers Of Transport Organizations
1. The transport organizations administer the luggage lockers and are obliged to store
items of passengers and other citizens, regardless of their travel documents. The contracts for
administering the storage in luggage lockers of transport organizations is recognized as public
(Article 387 of this Code).
2. The confirmation of receipt of items for storage in the luggage lockers (except
automatic) is issued to the depositor by a receipt or a numbered token. In the event of loss of
receipt or token, items transferred for keeping in a luggage lockers are issued to the depositor
on presentation of evidence, that the items under question belong to him (her).
3. The amount of the losses, incurred by the depositor as a result of loss, shortage or
damage of things given in a luggage locker, shall be paid to the depositor in 24 hours, if at the
time of an item for keeping, its assessment was made, or if the parties come to an agreement
concerning the amount, which is reimbursed for losses.
4. Items can be put in luggage lockers for a period within the limits prescribed by special
rules or by agreement of the parties. Items, which are not claimed within a specified time, a
luggage locker must be stored for the next three months. After this period, unclaimed items
can be sold and the proceeds from the sale of the amount are allocated in accordance with
Article 788. Storage In The Wardrobes Of Organizations

1. Storage in the wardrobes of organizations is offered free of charge, if fees for storage
are not agreed at the time of the delivery thing for storage.
2. In confirmation of the receipt of things for storage in the wardrobe, the keeper gives to
the depositor a token or other number sign, confirming acceptance of the thing for storage.
3. The item placed in storage in the wardrobe shall be delivered to the bearer of the token.
In this case, the keeper is not obliged to check the authority of the bearer of token to receive
the item. However, the keeper may delay the return of items to the bearer of token, if he (she)
has doubts about the identity of the bearer of token.
4. The keeper may give a thing from the wardrobe, in the case where the depositor has
lost a token, but the keeper has no doubt about the fact of putting things into the wardrobe or
its possession to the depositor, and it is proved by the depositor.
Article 789. Storage In The Hotel
1. A hotel acts as a keeper and without special agreement for loss or damage to items
except for money, currency values and other securities entered to the Hotel by the patron,
except the cases, where the loss or damage occurred as a result of force majeure, the
properties of items or the fault of the person, his (her) accompanying persons or his (her)
visitors.
2. The hotel is responsible for the loss of money, currency values and other securities only
on the condition that they have been accepted for storage.
3. The person, who is staying at the hotel, and noticing loss or damage to his (her)
belongings, shall immediately inform the hotel. Otherwise, the hotel is exempt from the
liability for failure to store items.
4. The hotel is not relieved from the liability for failure to store the items of its patrons,
even if it makes the announcement that does not accept this responsibility.
5. The provisions of this Article shall also apply to storage in motels, rest houses,
sanatoriums, hostels and other similar organizations, as well as organizations that have
specially dedicated facilities for the storage of clothing, hats and other similar things of
citizens, visiting the organization.
Article 790. Storage Of Items Of Disputed Ownership (Sequestration)
1. According to the agreement on sequestration, two or more persons between whom there
is a dispute over who owns an item, shall transfer the item to a third person, who undertakes
upon resolution of the dispute to return the item to the person, to whom it shall be awarded by
the court or by agreement of all contracting parties (contractual sequestration).
2. A controversial item can be transferred for keeping in order of sequestration by the
court (judicial sequestration).
The keeper of judicial sequestration can be a person appointed by the court and the person
determined by mutual agreement of the disputing parties. In both cases, the consent of the
keeper is required, unless otherwise provided by legislative acts.
3. For depositing by way of sequestration may be transferred both movable and
immovable things.
Paragraph 3. Storage in the warehouse
Article 791. Warehouse
Goods warehouse is a commercial organization, performing storage of goods and

providing storage services as a business.
Article 792. Public Warehouse
1. A warehouse is recognized as a public warehouse if, in accordance with legislative acts,

it is notified to the warehouses, which can take the goods for storage from a limited number
of individuals.
2. Contract on storage in the warehouse, concluded with public warehouse recognizes a
public contract (Article 387 of this Code).
Article 793. Duties Of The Warehouse
1. A warehouse shall comply with the conditions (mode) of storage, set in the standards,
technical conditions, process instructions, storage instructions, rules for storage of certains of
goods, and other mandatory provisions entailed in the specific regulations relating to
warehouses.
2. Warehouse shall make at its own expense, inspection of the goods at the reception for
safekeeping.
3. Warehouse must provide the opportunity to inspect goods or samples, if storage is done
of items without specific identities, sampling and taking the measures, necessary to ensure the
safety of goods.
4. Where to ensure the safety of goods urgently needed to change the conditions of
storage, warehouse may take the necessary urgent measures on its own. It shall notify the
owner on action taken.
5. If the goods damaged, warehouse shall immediately draw up an act and notify the
owner at the address, stated by him (her) to the warehouse.
Article 794. Requirements Of The Owner To The Warehouse
Unless otherwise provided by the contract, the owner must declare the warehouse of loss,
shortage or damage as a result of improper storage, when receiving the goods from a
warehouse, but about hidden damage - within the normal time required to detect them. If
damage and shortage of goods in an appropriate time is not announced to the warehouse, the
warehouse is not liable for damages, except in cases, where losses are caused due to its intent
or gross negligence.
Article 795. Reimbursement Of The Warehouse On Storage
Warehouse has the right to compensation under the contract or by established legislative
acts of cost rates on additional transactions in the interest of the depositor (insurance of goods
, loading and unloading, payment of customs duties, etc.). This right is guaranteed by the right
of the workhouse to hold the stored goods.
Article 796. Refusal Of Warehouse From The Contract Of Storage
Warehouse has the right to refuse to perform the contract in cases, where the depositor
concealed the dangerous nature of the goods that threaten to substantial damage.
Article 797. Warehouse Documents
1. Warehouses may issue as a confirmation of acceptance of the goods for storage the
following warehouse documents:
1) simple warehouse certificate;
2) dual warehouse certificate.
1-1. In cases, stipulated by legislative acts of the Republic of Kazakhstan, the warehouses
are obliged to give double or simple warehouse certificates as a confirmation of acceptance of
the goods for storage with loss of identity.
2. Double warehouse certificate, each part of it and a simple warehouse certificates are
securities.
3. Double and simple warehouse certificates can be subjects of pledge.
January 12, 2007 № 225 (shall be enforced from the day of its official publication).
Article 798. Simple Warehouse Certificate
1. Simple warehouse certificate is issued to the bearer.

2. Simple warehouse certificate must contain the information specified in sub-paragraphs
2), 3), and 5)-10) of paragraph 2 of Article 799 of this Code, and with indication that it was
issued to bearer.
Article 799. Double Warehouse Certificate
1. A double warehouse certificate consists of warehouse certificate and pledge certificate (

warrant), which are identical in content and, if necessary, are separated one from another.
2. Every part of the double warehouse certificate shall contain:
1) the name of the corresponding part of the double warehouse certificate;
2) the name and address of the warehouse, accepting the goods for storage;
3) the current number of the warehouse certificate in the register of the warehouse;
4) the name of the organization or the citizen, from whom the goods received for storage,
as well as the location (address) of the owner;
5) the name and quantity of goods, the number of commercial sites;
6) the amount of the received goods, unless another is provided by legislative acts of the
Republic of Kazakhstan;
7) the period, for which the goods accepted for storage, if it is established;
8) tariffs and payment for storage;
9) date of issue of warehouse certificate;
10) authorized signature and seal of the warehouse.
Legislative acts of the Republic of Kazakhstan may establish additional requirements to
the form and content of the double warehouse certificate.
Article 800. Rights Of The Holder Of Double Warehouse Certificate For The Goods
1. The holder of a double warehouse certificate shall be eligible to dispose the goods,
stored in a warehouse in a full volume.
2. The holder of the warehouse certificate, separated from the pledge certificate is eligible
to dispose the goods, but cannot take it from the warehouse before the repayment of the loan,
issued on the pledge certificate. The holder of the warehouse certificate may transfer the
ownership of warehoused goods, which is enabled by endorsement (endorsement) and
delivery the document, but without transferring the goods.
3. A buyer, who has received by endorsement the warehouse certificate with an
un-separated a pledge certificate, shall become the owner of the warehoused goods, which is
free of pledge. When purchasing a warehouse certificate without a pledge certificate, it is
estimated that the ownership of the goods burdened by the legal lien. Details of the terms of
pledge (the amount and date of the establishment of a lien on goods) can be found in the
register of the warehouse, which is open to interested visitors.
4. The holder of a warehouse certificate has a lien on the goods in the amount issued by
this loan certificate and reward for it. On establishing a lien on the goods, in the warehouse
certificate is made the mark about it.
5. The buyer or seller may free the goods from the pledge, by making the appropriate
amount secured by the pledge, to the mortgagee (creditor) or warehouse, which shall transmit
it to the rightful holder of the pledge certificate.
6. The holder of a pledge certificate in the event of dissatisfaction of his (her) claim,
secured by the pledge within the period, shall be eligible to sell in the legal procedure the laid
him (her) on the pledge certificate goods and cover his (her) claim prior to other creditors of
the pledgor. With the proceeds failure, the holder of a pledge certificate may recover the
half-received part from all endorsers, who are jointly and severally liable for the payment of
requirements of the secured pledge certificate.
Article 801. Transfer Of Warehouse And Pledge Certificates
Warehouse certificate and pledge certificate may be transferred together or separately by

endorsement (endorsement).
Article 802. Issuance Of The Goods On The Double Warehouse Certificate
1. The warehouse delivers goods to the holder of the warehouse and pledge certificates (
double warehouse certificate) in exchange for both of these certificates together.
To the holder of a warehouse certificate, who does not have a pledge certificate, but made
sum of debt on it, the goods is issued by the warehouse in exchange for warehouse certificate
and subject to the payment of the entire amount of the debt for pledge certificate.
2. The holder of warehouse and pledge certificates shall be eligible to demand delivery by
installments. While in exchange for initial certificate, he (she) is issued new certificates for
goods, which is left in a warehouse.
3. Warehouse, in violation of the requirements of this Article, delivered goods to the
holder of a warehouse certificate, who does not have a pledge certificate and is not moving
the sum of debt on it, shall be liable to the holder of the pledge certificate for payment of all
outstanding amounts on it.
Chapter 40. Insurance
Article 803. Insurance Contract
1. Under an insurance contract, one party (the insured) undertakes to pay the insurance
premium, and the other party (the insurer) agrees to carry out the insurance payment in the
insurance case to the insured person, or other person in whose favor the insurance contract is
signed (beneficiary) within a certain contract amount (sum insured).
Legislative acts of the Republic of Kazakhstan may establish the cases of other payment
on the terms and conditions stipulated in the insurance contract.
2. The insurance shall be provided on the basis of the insurance contract.
18.12.2000 № 128; dated 05.07.2006 № 164 (the order of enforcement see Art. 2); dated
15.07.2010 № 338-IV (the order of enforcement see Art. 2).
Article 804. Insurance Relations Regulated By This Code
This Code regulates the relationship between the insurer and the insured person, as well as
their relationship with the insured persons and the beneficiaries that arise from the process of
concluding and execution of the insurance contract.
Article 805. Forms Of Insurance
1. Forms of insurance are:

1) according to the degree of obligation - voluntary and compulsory;
2) the object of insurance - personal and property;
3) on the basis of insurance payments - funded and unfunded.
2. For licensing of insurance activity, the legislative acts may provide a differentification.
December 18, 2000 № 128.
Article 806. Compulsory And Voluntary Insurance
1. Compulsory insurance - the insurance, carried by the requirements of legislation, the

terms of which shall be determined by agreement of the parties, unless another is stipulated
by legislation, governing the compulsory insurance.
2. (Is excluded - dated May 7, 2007, № 244)
3. The obligation to insure his (her) life or health, may not be imposed to a citizen by
legislative acts or contract. Compulsory insurance is carried out by the insured person.
4. When compulsory insurance, the insured person shall conclude a contract with the
insurer, on terms determined by agreement of the parties, unless another is stipulated by
legislative acts, regulating this of insurance.
5. A compulsory insurance contract shall be entered into only with an insurer, licensed to
carry out this of insurance. At the conclusion of the compulsory insurance contract, the terms
and conditions are set by the legislative acts, regulating compulsory insurance, and these
terms and conditions obligatory for the named insurer, unless they are otherwise provided in
these acts.
6. Voluntary insurance is carried out by the will of the parties.
Types, conditions and procedure for voluntary insurance shall be determined by the
Footnote. Article 806 as amended by the Law of the Republic of Kazakhstan dated May 7,
2007 № 244.
Article 807. Insurance Object
1. The objects of property and personal insurance may be any property interests of
citizens and legal entities, including those associated with:
1) survival of people under a certain age or the period specified in the insurance contract,
death, the onset of certain events in the lives of citizens;
2) harm to life and health of citizens as a result of accidents and other events;
3) possession, use and disposal of property;
4) the duty to compensate for harm caused to other persons, including breach of the
contract (liabilities).
The object of insurance on compulsory insurance is determined by legislative acts.
2. The illegal property interests of the insured person shall not be insured.
3. Insurance contracts, which objects are property interests, provided in paragraph 2 of
this Article, shall be invalid.
February 20, 2006, № 128 (the order of enforcement see Art. 2); dated May 7, 2007, № 244.
Article 808. The Consequences Of Breaking The Rules Of The Compulsory Insurance
1. The person to whom, in accordance with legislative acts must be made compulsory
insurance, may, if he (she) knew that it was not insured, require in a judicial proceeding the
insurance against the person, who is charged with this duty.
2. If the person, who is charged with the duty of insurance, has not exercised it or
contracted insurance under the conditions, which are worsening situation of the insured in
comparison with, those provided by legislative acts, this person upon occurrence of an
insured event shall be liable to the insured person on the same conditions as to who would be
carried out for the insurance payment related with proper insurance.
3. The person, who is obligated under the legislative acts to act as an insured person, is
eligible to demand in a judicial proceeding concussion of the insurer, who is liable in
accordance with paragraph 5 of Article 806 of this Code to maintain the insurance, but
deviates from it, to contract of insurance under the conditions stipulated by legislative acts.
4. Evasion of insurance of the person, obliged to implement it as an insured person and
the insurance company, obliged to act as an insurer, shall be liable for prosecution under the
legislative acts.
December 18, 2000 № 128.
Article 809. Personal And Property Insurance
1. Personal insurance includes life insurance, health insurance, disability insurance and
other forms of insurance related to the condition of the citizens.
Under a personal insurance contract may be insured, the insured person and other persons
named in the contract (the insured).
2. Property insurance is insurance of property and related property interests.
3. Property insurance against the risk of loss (death), shortage or damage of property and
other property rights and benefits provided in Article 115 of this Code.
4. If a property insurance contract is concluded in the absence of the insured person or the
beneficiary, the interest in the preservation of the insured property is not valid.
5. Civil liability insurances covers the liability risk for obligations, which are arising from
harm to life, health and property of third persons, as well as liability for obligations arising
from contracts.
December 18, 2000 № 128; dated February 20, 2006, № 128 (the order of enforcement see
Art. 2).
Article 809-1. Endowment Insurance
1. Endowment insurance is insurance, that provides insurance payments upon occurrence

of an insured event, including expiration of the insurance contract period or an event provided
in the contract, depending on which one comes first.
2. Unfunded insurance is insurance that provides the insurance payments only upon
occurrence of an insured event, having the features of probability and randomness of its
occurrence.
3. Annuity insurance contract - the contract of insurance, under which the insurer is
obliged to make an insurance payment in the form of periodic payments to a beneficiary
during the contract period.
4. Endowment insurance contracts may be concluded exclusively for personal insurance.
5. Annuity insurance contract refers to contracts of insurance saving.
Footnote. Is supplemented with the Article 809-1 by the Law of the Republic of
Kazakhstan dated December 18, 2000 № 128; as amended dated February 20, 2006, № 128 (
the order of enforcement see Art. 2).
Article 810. Business Risk Insurance
Footnote. Article is excluded by the Law of the Republic of Kazakhstan dated February
20, 2006 № 128 (the order of enforcement see Art. 2).
Article 811. Insurance Of Civil Liability For Injury
Article 812. Insurance Of Civil Liability Under The Contract
Article 813. Insured Person
1. An insured person is the person, who has entered into an insurance contract with the
insurer.
2. Insured persons may be legal entities and citizens.
3. The insured person is free to choose the insurer as voluntary and mandatory forms for
insurance.
December 18, 2000 № 128.
Article 814. Insurer
The insurer is a person, performing insurance, who is liable upon occurrence of an insured
event to make insurance payment to the insured person or other person in whose favor the
insurance contract is signed (beneficiary), within a certain contract amount (sum insured).
The insurer may only be a legal entity, registered as an insurance company and licensed to
carry on insurance business of any mutual insurance in accordance with the legislation of the
Republic of Kazakhstan on mutual insurance.
December 18, 2000 № 128; dated July 5, 2006, № 164 (the order of enforcement see Art. 2).
Article 815. Insured
1. The insured is the person in respect of which the insurance is made. Unless otherwise
established by contract, the insured person shall also be the insured.
2. Legislative acts may obligate the insured person to implement a third party insurance.
In case of voluntary insurance, the insured person in the insurance contract may identify a
third party as the insured. In these cases, the object of the insurance shall be either the identity
of the insured and its related interests (personal insurance of the insured), or the property and
property interests of the insured (property insurance of the insured).
When insuring property, the insured, who is not the insured person must have an interest
in maintaining the property.
3. If the terms of the contract for the insured, who is not the insured person, assigned the
responsibilities, the insured person must obtain the consent of the insured to sign the contract.
Under compulsory insurance, as well as group impersonal insurance, the consent of a
third party to the contract, where it is identified as the insured, is not required.
In case of voluntary insurance, the objection of the person regarding his (her) personal or
property insurance, entails the impossibility of the contract, and if it was already concluded -
termination of the contract.
4.In the event, when the insured has a duty on insurance of a third party, the third party
shall be entitled to require the insured a report on the implementation of this obligation, and
in cases stipulated by legislative acts, to obtain the document, indicating that it is insured.
In the event of failure or improper performance of his (her) duties by the insured, on the
insurance of a third party, the latter may apply the measures provided in paragraphs 1 and 2 of
5. If the insured is a minority age citizen, his (her) rights shall be implemented in
accordance with Articles 22-24 of this Code.
6. Contract, in favor of the insured does not release the insurer from duties under the
contract. Insurance of a third party shall be at the expense of the insured.
7. If the insured has refused to receive insurance payments, due to him (her) under the
contract, the right to receive the insurance proceeds transfers to the insured person.
8. In the case of death of the insured, who is not the insured person, and in respect of
which, concluded the contract of personal insurance, is not provided such a case, this contract
is terminated, if the legislation or the contract does not provide replacement of the insured.
If the death of the insured was an insured event, which is provided by the insurance
contract, this contract is executed under the conditions of it.
In case of death of the insured, who is not the insured person, and in respect of which
concluded the contract of property insurance, the rights and obligations of the insured, with
the consent of the insured shall transfer to the heirs of the property and property rights of the
insured, which have been the subject of the insurance, if the legislative acts or the contract
provides another.
If the insured person does not agree to replace the deceased insured or the heirs of the
insured does not agree to accept the rights and obligations, arising from the insurance contract
, this contract shall be terminated.
9. The contract of insurance in favor of a third party (the insured), subject to the
provisions of Article 391 of this Code, to the extent that they are not inconsistent with the
provisions of this Article.
December 18, 2000 № 128, dated May 7, 2007 № 244.
Article 816. Beneficiary
1. The beneficiary is the person, who in accordance with insurance contract or legislation
on compulsory insurance is a recipient of the insurance payment.
The beneficiary can be a legal entity or a citizen.
The beneficiary may be imposed both on the personal and property insurance.
On compulsory insurance, the beneficiary is determined by the legislative acts regulating
this of insurance, on voluntary the beneficiary is appointed by the insurer.
2. Unless otherwise provided by legislative acts on compulsory insurance or a contract of
voluntary insurance, the beneficiary shall be the insured.
If the insured person is not insured, the beneficiary has to be the insured, or he (she) is
assigned with the written consent of the insured.
If the beneficiary is not designated in the insurance contract, he (she) assumed to be the
insured.
3. (Is excluded - dated February 20, 2006 № 128).
4. (Is excluded - dated 18.12.2000 № 128)
5. If the insured is also a beneficiary, the beneficiary is subject to the provisions provided
by Article 815 of this Code.
6. In the event of the death of the beneficiary, who is not the insured, or his (her) waiver
from the rights of beneficiary, the rights of the latter shall pass to the insurer.
In the event of the death of the beneficiary, who is the insured, shall apply the
consequences provided by paragraph 8 of Article 815 of this Code.
7. If the death of the insured, is the case, which is provided by the insurance contract, in
the event that such insured is not the insured person or is the insured, but the contract is not
designated a beneficiary, the beneficiaries are recognized as heirs of the insured.
8. In the insurance case, the beneficiary is entitled to bring directly to the insurer the claim
for his (her) insurance payment under the insurance contract.
9. Contract in favor of a beneficiary, does not release the insurer of duties under this
contract.
December 18, 2000 № 128.
Article 817. Insured Event
1. An Insured event is an event in the occurrence of which the insurance contract provides
the insurance payment.
2.s of insurance events for compulsory insurance are determined by legislative acts on
compulsory insurance, and for voluntary insurance is by the agreement of the parties.
3. The event, considered as an insured event must be characteristics by of randomness and
probability of its occurrence, with the exception of events, that can be provided by a contract
of endowment insurance.
4. Proof of the insured event, as well as damages caused to them must be demonstrated by
the insured or by the beneficiary.
18.12.2000 № 128, dated 15.07.2010 № 338-IV (the order of enforcement see Art. 2).
Article 818. Insurance Premium

1. Insurance premium is the amount of money, which the insured shall pay to the insurer
for the latter’s obligation to make insurance payment to the insured person (beneficiary), at
the amount specified in the insurance contract.
Insurance premiums, received by the insurer from the insured person, belong to him (her)
by the right of ownership.
2. Insurance premiums are set by contract. On compulsorys of insurance, they are
The procedure and terms of payment of the insurance premiums are determined by the
contract. On the compulsory insurance, they may be determined by legislation.
3. The parties in determining the amount of the payable premiums under the insurance
contract shall apply the rate developed by the insurer that determine insurances premium rate,
charged to the unit with the sum insured, taking into account the object and nature of
insurance risk.
4. The insurance contract may provide the payment of the insurance premium by
installments in the form of periodic premiums.
5. If the insurance contract provides the payment of the insurance premium by
installments, the contract may determine the consequences of failure to pay the next premium
on time, including the early termination of the contract.
6. If the insured event occurs prior to the payment of a specific insurance premium, and
the payment is overdue, the insurer has the right in determining the amount of insurance
payments to set off the amount of the overdue premium.
December 18, 2000 № 128, dated February 20, 2006 № 128 (the order of enforcement see
Article 2), dated May 7, 2007 № 244.
Article 819. Insurance Amount
1. The insurance amount is the amount of money, for which the insured object is insured
and represents the maximum amount of liability of the insurer, when the insured event
occurred.
2. The insurance amount is established by the contract. In compulsory insurance, they
cannot be less than the amount, established by the legislative acts.
3. When insuring property, the insurance amount cannot exceed its actual value at the
time of the contract (the insured value).
4. The parties may not challenge the value of the property, defined in the insurance
contract, except in cases, where the insurer can prove that he (she) was deliberately misled by
the insured. If the insurance amount determined by the contract of insurance, exceed the
insured value, it is invalid to the extent of the insurance amount that exceeds the insured value
at the time of the contract.
5. (Is excluded - dated February 20, 2006 № 128 (the order of enforcement see Art. 2).
December 18, 2000 № 128, dated February 20, 2006 № 128 (the order of enforcement see
Article 2).
Article 820. Insurance Payment
1. Insurance payment is the amount of money, paid by the insurer to the insured (
beneficiary) within the insured sum, upon the occurrence of insured event or the due date,
specified in the contract of endowment insurance.
Insurance payment is carried out by a time sum payment, with the exception of insurance
payments on annuity insurance contracts.
2. Procedure for determining the amount of insurance payments is established by the
contract. On compulsory insurance, the procedure for determining insurance premium is
determined by legislative acts of the Republic of Kazakhstan.
3. The order and term of insurance payments are determined by the contract.
On compulsory insurance they can be determined by legislative acts
4. Insurance payments for property insurance and civil liability cannot exceed the amount
of actual damages, incurred by the insured (the insured) as a result of occurrence of loss.
5. Insurance payments for private insurance are carried out to the insured (the insured),
regardless of the payable amounts of social security, other insurance contracts and as
compensation of damages.
6. The Terms of the contract for property insurance may provide for the replacement of
the insurance payment by compensation of damage in kind, within the amount of insurance
payment.
7. When the insurance payment, the insurer is entitled to offset, due to him (her) from the
insured insurance premiums or insurance contributions.
8. For late payment of insurance, the insurer is responsible in accordance with Article 353
of this Code, unless there is a higher amount of liability provided by contract or legislation on
compulsory insurance.
December 18, 2000 № 128, dated February 20, 2006 № 128 (the order of enforcement see Art
. 2).
Article 821. Double Insurance
1. Double (multiple) insurance is an insurance of the same object by several insurers

under individual contracts with each one.
2. On double insurance of the property, every insurer is liable to the insured within the
contract concluded with him (her), but the total amount of insurance payments, received by
the insured from all insurers cannot exceed the actual damage.
In this case, the insured is entitled to receive an insurance payment from any insurer, in
the amount of the insured sum, provided by the contract with him (her). In case, if the
insurance payment does not cover the actual damage, the insured is entitled to receive the
remaining amount from another insurer.
Insurer, wholly or partially released from the insurance payments, due to the fact that the
damage compensated by other insurers, shall be obliged to return the relevant part of
premiums, net of incurred expenses.
3. On double (multiple) personal insurance, every insurer performs his (her) insurance
obligations to the insured him (her) self, regardless of the performance of them by other
insurers.
December 18, 2000 № 128.
Article 822. Collective Insurance
1. In collective insurance, the insurance contract covers several insured persons, who are
also beneficiaries.
2. Collective insurance can be both personal and property, personified and impersonal,
which covers certain categories of persons.
In impersonal insurance, the circle of insured persons must be clarified in the contract of
insurance, in so far, as this is necessary for the individualization of the insured event, the
consequences for each of the insured and the amount of insurance payments due to him (her).
3. Collective insurance of the employer for their employees can only be personal
insurance.
December 18, 2000 № 128.
Article 823. Co-Insurance
1. The object of insurance can be insured under one contract by several insurers (
co-insurance). In this case, the contract should contain conditions that determine the rights
and obligations of each insurer in agreed proportions.
If such contract does not specify the rights and obligations of each of the insurers, they are
jointly and severally liable to the insured (or beneficiary) for an insurance payment.
2. Co-insurers on co-insurance of large or very large risks can create on the basis of joint
operation agreement on co-partnerships (insurance pools).
3. In the presence of an agreement between all co-insurers, one of them may represents all
co-insurers in the relationship with the insured person, remaining liable to the latter, only in
his (her) interest.
December 18, 2000 № 128.
Article 824. Reinsurance
1. The insurer is entitled by reinsurance to cover the risk of execution of any or all of his (
her) obligations to the insured person by another insurer (the reinsurer).
2. The Insurer, who is concluded with a contract of reinsurance (reinsurance), remains
liable to the insured in full, in accordance with the insurance contract, concluded with him (
her).
3. The terms of reinsurance are determined by legislative acts of the Republic of
Kazakhstan and the reinsurance contract between the reinsured and the reinsurer.
The reinsurance contract must meet the requirements of this Code in the insurance
contract. The insurer by the insurance contract in the reinsurance contract shall be the insured.
4. Reinsurers for a reinsurance undertaking can unite on the basis of joint operation
agreement on co-partnerships (reinsurance pools).
5. Continuous conclusion of two or several reinsurance contracts is allowed.
10, 2003 № 483 (shall be enforced from January 1, 2004), dated February 20, 2006 № 128 (
Article 825. Insurance Form
1. The insurance contract shall be in writing, by:

1) preparation of the parties of the insurance contract;
2) adherence of the insured to the standard specifications (insurance regulations),
developed by the insurer unilaterally (contract of adhesion), and the issuance of the insurance
policy to the insured by the insurer;
3) (sub-paragraph is excluded by the Law of the Republic of Kazakhstan dated July 10,
2003 № 483 (shall be enforced from January 1, 2004);
4) (Is excluded - dated February 20, 2006 № 128 (the order of enforcement see Article 2).
2. The form of a written contract on compulsory insurance is determined by the Laws of
the Republic of Kazakhstan on compulsory insurance, and on voluntary insurance is by the
insurer or by agreement of the parties.
3. Failure to comply with the written form of the contract of insurance shall entail its
invalidity.
December 18, 2000 № 128, dated July 1, 2003 № 445; by the Law of the Republic of
Kazakhstan dated July 10, 2003 № 483 (shall be enforced from January 1, 2004), dated
February 20, 2006 № 128 (the order of enforcement see Art. 2).
Article 825-1. Insurance Regulations
1. Insurance regulations, developed by the insurer for each of insurance must meet the
requirements of this Article.
2. Insurance regulations shall include:
1) a list of insurance objects;
2) the procedure for determining the sum insured;
3) the range of insured events;
4) exclusion from insurance events and limitation of insurance;
5) the time and place of the insurance contract;
6) procedure for the conclusion of the insurance contract;
7) rights and obligations of the parties;
8) actions of the insured, upon the occurrence of the insurance event;
9) a list of documents confirming the occurrence of the insured event and the amount of
damages;
10) the procedure and conditions for insurance payments;
10-1) the period of notice of the insured person or the insured on the missing documents,
necessary for insurance payments;
11) term of acceptance the decision of insurance payment or refusal in insurance payment;
12) conditions for termination of the contract of insurance;
13) dispute resolution procedures;
14) excluded by the Law of the Republic of Kazakhstan dated 20.02.2006 № 128 (the
order of enforcement see Article 2).
15) additional conditions.
3. Is excluded by the Law of the Republic of Kazakhstan dated 10.07.2003 № 483 (shall
4. Contracts of insurance can be made by agreement between the insured and the insurer,
on the basis of the rules of insurance, providing additional conditions, specified in the
conclusion of the insurance contract.
5. Is excluded by the Law of the Republic of Kazakhstan dated 30.12.2009 № 234-IV.
Republic of Kazakhstan dated 18.12.2000 № 128, as amended by the Law of the Republic of
Kazakhstan dated 10.07.2003 № 483 (shall be enforced from 01.01.2004), dated 20.02.2006
№ 128 (the the order of enforcement see Art. 2), dated 30.12.2009 № 234-IV; dated
15.07.2010 № 338-IV (the order of enforcement See Art. 2).
Article 826. Content Of The Insurance Contract
1. The insurance contract shall contain:

1) the name, address, and bank details of the insurer;
2) the surname, first name and patronymic (in presence) and place of residence of the
insured (if an individual) or the name, address and bank details (if a legal entity);
3) an identification of the insurance object;
4) the insured event;
5) the amount of insurance payment (excluding annuity insurance contracts) and the order
and timing of insurance payments;
6) the amount of the insurance premium, the order and terms of payment it;
7) the date and term of the contract;
8) details of the insured and the beneficiary person, if they are members of the insurance
relationship;
9) number and series of the contract (insurance policy);
10) cases and the procedure for amending the terms of the contract;
11) the terms of payment and the amount of cash surrender value (for endowment
insurance);
11-1) the period of notification of the insured person or the insured on the missing
documents, necessary for insurance payments;
Note of the RCLI!
Sub-paragraph 12) shall be enforced from 01.01.2012 and expires 01.01.2013.
12) indication of the taxpayer identification number (if available), indication of residency
and economy sector of the insured person;
Note of the RCLI!
Sub-paragraph 13) shall be enforced from 01.01.2012 and expires 01.01.2013.
13) indication of the taxpayer identification number (if available), indication of residency
and economy sector of the insured person (beneficiary), if he (she) is not an insured under the
insurance contract, in the case of indication of the insured (beneficiary) in the insurance
contract;
14) the currency of the sum insured, the insurance payments and insurance premiums.
Note of the RCLI!
Article 826, is supplemented by sub-paragraphs 15), 16) in accordance with the Law of
the Republic of Kazakhstan dated 12.01.2012 № 538-IV (shall be enforced from 01.01.2013).
2. By agreement of the parties other conditions may include to the contract.
2-1. Franchise is releasing the insurer from the damages, not exceeding a certain amount,
under the conditions of the insurance contract.
Franchise shall be conditional (non-deductible) and unconditional (deductible).
In a conditional franchise, the insurer is released from damages that do not exceed a
specified amount of the franchise, but the insurer must pay damages in full, if its sum is
bigger than that amount.
On unconditional franchise, the damages shall be refunded, net of a specified amount in
all cases.
Franchise is set either in percentage of the sum insured, or in absolute amounts.
3. If an insurance contract contains conditions that restrict the rights of the insured beyond
those, provided by legislative acts, the rules set out by legislation shall apply.
4. The liability period of the reinsurer, under the reinsurance contract shall correspond to
the period of liability of the insurer under the insurance contract, the obligations for which
transferred to reinsurance, if the reinsurance contract provides otherwise.
5. The insurer shall be liable for the incompleteness of conditions, which must be referred
in the contract of insurance.
18.12.2000 № 128, dated 20.02.2006 № 128 (the order of enforcement see Art. 2), dated
12.01.2007 № 225 (shall be enforced from the day of its official publication); dated
30.12.2009 № 234-IV; dated 15.07.2010 № 338-IV (the order of enforcement see Art. 2),
dated 12.01.2012 № 538-IV (the order of enforcement see Art. 2).
Article 826-1. Deferral Of Payment Of Insurance Premiums Under The Endowment Insurance
Contract
1. The insurer, who has not received insurance contributions (except the first) within the
contractual term of the endowment insurance, shall notify the insured person on necessity to
pay the insurance contribution.
2. The notice shall contain:
1) the period during which, insurance payment must be paid (deferral period of insurance
premium);
2) the penalty for late payment of the premium;
3) the right of the insurer to unilaterally terminate the contract, in case of default of
payment of the insurance premium, for the period of deferment of premiums.
3. The deferral period of the insurance premium cannot be less than 30 calendar days.
4. Upon the occurrence of an insurance event, in the period of deferral of insurance
premium under the endowment insurance contract, the insurer is obligated to make an
insurance payment, keeping the outstanding amount.
5. Notification of the necessity the insurance premium shall be sent to the insured person
in a way that allows him (her) to confirm the notification.
Republic of Kazakhstan dated 18.12.2000 № 128, as amended by the Laws of the Republic of
Kazakhstan dated 20.02.2006 № 128 (the order of enforcement see Art. 2), dated 15.07.2010
№ 338-IV (the order of enforcement see Art. 2).
Article 826-2. Restoration Of The Endowment Insurance Contract

1. If the validity of the endowment insurance contract is suspended or terminated on the
basis of non-payment of the premium by the insured person, the insurer is obliged to restore
the validity of the contract on payment of the insured person:
1) (Is excluded - dated February 20, 2006 № 128 (the order of enforcement see Article 2);
2) overdue insurance premiums;
3) penalty interest for late payment of insurance premiums, in the amount specified in
2. The insured person is eligible to restore the contract of endowment insurance for one
year, from the date of termination or suspension of execution of obligations by the parties of
the contract.
3. The insurer may, at the restoration of the contract of endowment insurance conduct
medical examination of the health of the insured person.
In case of deterioration of health of the insured person, the insurer is entitled to recalculate
the amount of insurance payments and (or) the insurance premium. In case of failure of the
insured person, to recover the contract on new terms, the contract cannot be restored.
4. The insurer is eligible to refuse the restoration the contract of endowment insurance, if
such contract was early terminated and the insurer had paid the redemption sum.
Footnote. Is supplemented by Article 826-2 by the Law of the Republic of Kazakhstan
dated December 18, 2000 № 128; as amended - dated February 20, 2006 № 128 (the order of
enforcement see Article 2).
Article 826-3. Insurance Under Contract, By Registration Of The General Policy
1. By agreement of the insurer with the insured person, the systematic insuring of
different sets of homogeneous property (commodities, goods, etc.) on the same conditions for
a specified period may be based on a single insurance contract, by giving the insured the
general policy.
2. The insured person shall, in respect of each lot of property, which is subject of the
contract, and referred in paragraph 1 of this Article, inform the insurer within a prescribed
time, on the information arising from such a contract, and if the time is not provided by the
contract, immediately upon its receipt. The insured is not relieved of this duty, even if at the
time of receipt such information, the possibility of damages, having been paid by the insurer,
has already passed.
3. At the request of insured person, the insurer is obliged to issue insurance policies for
individual lots of property, subject to the contract, referred in paragraph 1 of this Article.
If the insurance policy is not conformed to the content of general policy, the insurance
policy shall be preferred.
Footnote. Is supplemented by Article 826-3 - by the Law of the Republic of Kazakhstan
dated December 18, 2000 № 128.
Article 827. Validity Of The Insurance Contract
1. The insurance contract shall become effective and binding on the parties upon the
payment of the insured person premiums and the payment of it by installments is the first
insurance premium, unless the contract or legislative acts on compulsory insurance provides
otherwise.
2. The insurance contract is terminated from the date of insurance payment for the first
occurrence of the insurance event, unless the contract or legislative acts on compulsory
insurance provides otherwise.
3. The validity period of insurance protection corresponds with the term of the contract,
unless the contract or legislation on compulsory insurance provides otherwise.
December 18, 2000 № 128.
Article 828. Obligations Of The Insurer
1. Insurer shall:
1) upon the occurrence of the insured event, make an insurance payment in the amount,
manner and time specified in the insurance policy or legislation;
1-1) inform the insured person with the insurance regulations, and provide a copy of the
rules, if the insurance contract is concluded in the form of merger agreement with issuing to
the insurer, the insurance policy on voluntary insurance;
2) compensate the insured (the insured) costs, incurred by him (her) to reduce losses on
the insured event;
3) provide insurance secrecy;
4) in cases, where an insured person (insured) or a victim (or beneficiary) or their
representatives do not give all the documents, required for insurance payment, notify them on
the missing documents within the period, specified in the insurance contract.
2. Legislative acts on insurance and insurance activities, as well as the insurance contract
may stipulate other duties of the insurer.
18.12.2000 № 128, dated 30.12.2009 № 234-IV; dated 15.07.2010 № 338-IV (the order of
enforcement see Art. 2).
Article 829. Compensation Of Expenses, To Reduce Losses From An Insurance Case
1. Upon the occurrence of an insured event under the contract of property insurance, the
insured (insured) shall take the reasonable and available measures to prevent or reduce
potential losses, including measures to save and preserve the insured property.
In taking such action, the insured person (insured) shall follow the instructions of the
insurer, if the insured person (insured) has been informed about them.
2. Expenses, incurred by the insured person (the insured) to prevent or reduce losses, shall
be compensated by the insurer, if such expenses were necessary or were made to follow
instructions of the insurer, even if such measures were unsuccessful.
Such expenses shall be compensated at actual amount, but, the total amount of insurance
payment and compensation of expenses, cannot exceed the insured sum under the contract of
insurance, and if the costs resulted, from the execution of the insured person (insured) on the
instructions of the insurer, they shall be compensated in full, regardless of insurance amount.
3. The insurer shall be released from the insurance payments, of the losses, that have
arisen due to the fact, that the insured person (insured) deliberately did not take the reasonable
and available measures to reduce possible losses.
December 18, 2000 № 128, dated July 1, 2003 № 445.
Article 830. Insurance Secrecy
1. Insurance secrecy includes information on the size of the insured sum, the redemption
payment and paid-up premiums, and other terms of the contract of insurance (reinsurance)
related to the individual insured person, the insured or the beneficiary. Information about
insurance (reinsurance) contracts, insurance (reinsurance) company, which is in the process of
liquidation is not an insurance secrecy.
1-1. Legislative acts on insurance and insurance activity may provide other conditions and
procedures for the disclosure of information, which could include insurance secrets.
2. Professional participants of the insurance market, insurance agents may not disclose
information, which they received as a result of their professional activity, and insurance
secrets, except to provide information of other professional participants of the insurance
market, or insurance agents, relating to the conclusion of contracts of reinsurance or
relationships on coinsurance, as well as cases, provided in paragraphs 4, 5 and 6 of this
Article.
3. Officials, employees of insurance (reinsurance) company, insurance brokers, insurance
agents and other persons who, due to performance of their duties have access to information,
constituting insurance secrecy, and for their disclosure shall be liable under legislation of the
4. Insurance secrecy may be disclosed to a third party under a written agreement of the
insured (the insured, the beneficiary).
5. Information, containing the insurance secret, can only be provided to:
1) the representative of the insured (beneficiary) - on the basis of notarized power of
attorney;
2) the body of inquiry and preliminary investigation - by criminal cases, on their
procedure;
3) the court - by cases on its procedure, based on a determination or decision of the court;
4) the prosecutor - by order on the procedure of inspection, on matters within his (her)
competence, and materials, under his (her) consideration;
4-1) the authorized agency for financial monitoring - for the purposes and according to the
law of the Republic of Kazakhstan "On counteraction against legalization (laundering) of
income, received from crime and to financing of terrorism";
5) the competent government body - regarding to the supervision action for insurance
activity;
6) other persons in accordance with the laws of the Republic of Kazakhstan on insurance
and insurance activity.
6. Information, containing the insurance secrets, in case of death of the insured person, the
insured, and the beneficiary, shall be issued to:
1) heirs;
2) the courts and notaries, under their inheritance cases, based on a determination of a
court or a written request of the notary, certified by his (her) seal. A written request of a
notary must be annexed by a copy of the death certificate of the insured;
3) foreign consulates - under their cases of inheritance.
7. General terms and conditions of the insurance activity, a list of proposed insurance,
insurance rates, insurance periods, and other basic conditions of the insurance (reinsurance)
contract are public information and cannot be the subject of insurance secrets and commercial
secrets.
8. In the case of disclosure of the insurer of information constituting insurance secrets, the
insured (the insured, the beneficiary) shall be entitled to demand compensation for the
damages and, in appropriate cases - compensation for moral injury.
18.12.2000 № 128, as amended by the Laws of the Republic of Kazakhstan dated 10.07.2003
№ 483 (shall be enforced from 01.01.2004), dated 27.02.2004 № 527 (shall be enforced from
01.04.2004), dated 20.02.2006 № 128 (the order of enforcement see Article 2), dated
28.08.2009 № 192-IV (shall be enforced from 08.03.2010), dated 15.07.2010 № 338-IV (the
order of enforcement see Art. 2), dated 21.06.2012 № 19-V (shall be enforced upon expiry of
ten calendar days after its first official publication).
Article 831. Obligations Of The Insured
1. The insured shall:

1) pay insurance premiums in the amount, manner and time stipulated in the contract of
insurance;
2) inform the insurer of the state of the insurance risk;
3) notify the insurer upon the occurrence of an insured event;
4) take measures to reduce the losses of the insured event (paragraph 1 of Article 829 of
this Code);
5) to pass on the details of third parties responsible for the occurrence of insured events to
the insurer (Article 840 of this Code).
2. The insurance contract may provide other duties of the insured.
December 18, 2000 № 128.
Article 832. The Information Provided By The Insured In The Contract
1. At the conclusion of the contract, the insured shall notify the insurer, with
circumstances, which he (she) has known, and essential to determine the probability of the
insured event and the size of potential losses from its onset (insurance risk), if these
circumstances are not known or should be known to the insurer.
Circumstances, definitely stipulated in the rules of insurance, developed by the insurer, or
in the written request of the insurer, sent to the insured at the period of the contract are
recognized as essential.
2. If the insurance contract is concluded in the absence of the insured answers to any
questions of the insurer, the latter may not subsequently demand termination of the contract
or annulment, on the grounds that the relevant circumstances have not been insured.
3. If after the conclusion of the contract, it is established that the insured supplies the
insurer with false information about their circumstances, mentioned in paragraph 1 of this
Article, the insurer may require the rescission of the contract and apply the consequences,
provided in the second and third parts of paragraph 1 of Article 844 of this Code. The insurer
may not require the rescission of the contract, if the circumstances of which omitted the
insured, has disappeared.
December 18, 2000 № 128.
Article 833. Assessment Of Insurance Risk And Caused Damage
1. In the contract of property insurance, the insurer is entitled to inspect and evaluate the
insured property, and if necessary appoint examination in order to establish its actual value.
The evaluation of the insured property and injury is part of the insurance carried by the
insurer, and does not require additional licensing.
2. In contract of personal insurance, the insurer is entitled to examine the insured person
for assessment of the actual state of his (her) health.
3. The insurer’s assessment of the insurance risk on the basis of this article is not
necessary for the insured who is entitled to prove another.
4. The size of the damage, caused at the occurrence of the insured event shall determine
the insurer, at the request of the insured or his (her) representative. If necessary, assessment of
the size of damages shall be provided by the appraising officer (independent expert). The
parties may prove another, if they disagree with the assessment of damages.
5. On compulsory insurance, procedures and conditions for assessment the size of the
damage, caused by the insured event can be determined by the legislative acts of the Republic
of Kazakhstan.
, 2003 № 445; dated May 7, 2007 № 244.
Article 834. The Consequences Of Increasing Insurance Risk In The Period Of The Contract
1.In the period of the contract of property insurance, the insured (insured) shall
immediately inform the insurer about any significant changes in circumstances that they are
aware of which from the conditions reported to the insurer at the conclusion of the contract, if
these changes can significantly increase the insurance risk.
The following changes that recognized as significant in the insurance contract:
2. The insurer, noticed about the circumstances, entailing an increase of insurance risk,
may require changes in the terms of the contract or the payment of additional premiums,
commensurate to increase in risk.
If the insured person or the insured, objects to the changes in the conditions of the
contract of insurance or co-payment of the insurance premium, the insurer may request
termination of the contract in accordance with the rules provided by Chapter 24 of this Code.
3. In the event of failure of the obligation, stipulated in paragraph 1 of this Article by the
insured person or the insured, the insurer is entitled to demand termination of the contract and
compensation damages, caused by the termination of the contract.
4. The insurer is not entitled to demand termination of the contract, if the circumstances
which had increased insurance risk disappear.
5. In personal insurance, consequences of changing the insured risk during the term of the
contract, established in paragraphs 2 and 3 of this Article, may result, if they are expressly
provided in the contract.
December 18, 2000 № 128.
Article 835. The Notice Of The Insurer About The Insurance Event
1. The insured person, after he (she) has known about the insurance event, shall
immediately notify the insurer or his (her) representative about it. If a contract or legal act of
the Republic of Kazakhstan on compulsory insurance, stipulates for the period and (or)
method of notification, it should be done at an agreed time and by way specified in the
contract or the legal act of the Republic of Kazakhstan
If the insured person is not insured, this responsibility lies on the insured.
If in personal insurance, the insured event is the death of the insured the obligation to
notify the insurer about the insured event lies on the insured person and if he (she)
simultaneously was the insured - on the beneficiary. And a contract period of notice of the
insurer cannot be less than thirty days.
2. The beneficiary has the right to notify the insurer about the insured event, under all
circumstances, regardless of whether the insured person or the insured did it or not.
3. Failure to notify the insurer about the insurance event, gives him (her) the right to
refuse in the payment of insurance, unless it is proved, that the insurer promptly known about
the insurance event or the lack of information of the insurer about it, would not affect to his (
her) obligation to make insurance payment.
December 18, 2000 № 128, dated July 1, 2003 № 445.
Article 836. Replacement Of An Insured Person
1. In the case of death of the insured person, who concluded the property insurance
contract, his (her) rights and obligations shall transfer to the person, who takes the property
by inheritance. In other cases of transferring property rights (or other rights), the rights and
obligations of the insured shall transfer to the new owner (or the owner of other property
rights) with the consent of the insurer, unless the contract or legislation provides another.
2. In the case of death of the insured person, who is concluded the personal insurance
contract in favor of the insured, the rights and obligations, determined by this contract shall
pass to the insured with his (her) consent. By inability of the insured person to fulfill
obligations under an insurance contract, his (her) rights and obligations may be transferred to
the persons, engaged in accordance with the laws on duty to protect his (her) rights and
legitimate interests.
3. When reorganizing the insured, who is a legal entity, in the period of the insurance
contract, his (her) rights and obligations under this contract shall transfer to the appropriate
successor with the consent of the insurer and in the manner, prescribed by this Code.
Article 837. Replacement Of An Insured
1. If in the contract of insurance the liability for damage (Article 811 of this Code) insures
the liability of a person other, than the insured, the latter is entitled, unless otherwise provided
by the contract, at any time before the insured event to replace this person by another, with
the written notice to the insurer.
2. The insured, who is not the insured person, named in the contract of personal insurance,
property insurance, can be replaced by another with the consent of the insured (except for
group life insurance) and the insurer.
3. If the third party insurance follows from the requirements of legislation on compulsory
insurance, the replacement of the insured shall be, as prescribed by these laws and the
contract based on them.
December 18, 2000 № 128.
Article 838. Replacement The Beneficiary
1. The insured person is entitled, before the insured event to replace a non-insured
beneficiary, who is named in the insurance contract, by another person, with a written notice
to the insurer.
2. The beneficiary may not be replaced by another person, after his (her) performance of
certain duties, under the contract of insurance, arising from his (her) agreement with the
insured, or claim to the insurer the insurance payments.
3. Replacement of the beneficiary, who is the insured, shall be in accordance with the
procedure provided by Article 837 of this Code.
December 18, 2000 № 128
Article 839. Grounds For Relief Insurer From Exercising Insurance Payment
1. The insurer has the right to refuse all or part in the insurance payment to the insured, if
the insured event has occurred due to:
1) intentional acts of the insured person, the insured, and (or) the beneficiary, aimed at
occurrence of the insured event or contributing to its occurrence, except for acts, committed
in self-defense and necessity;
2) the actions of the insured person, the insured, and (or) the beneficiary, recognized by
legal procedure as intentional crime or misdemeanor, that are in causal connection with the
insured event.
The insurer is not relieved from the insurance payments under the contract of civil
liability insurance, if an accident was caused by a person, whose responsibility is the subject
of insurance.
The insurer is not relieved from the insurance payment, which is payable under the
contract of personal insurance in the event of death of the insured, if the death was due to
suicide and by that time the insurance contract has acted at least two years.
2. If a voluntary insurance contract and legislation on compulsory insurance provides
otherwise, the insurer shall be exempt from payment of the insurance, if the insured event
occurs due to:
1) affection of a nuclear explosion, radiation or radioactive contamination;
2) military activities;
3) civil war, any kind of civil unrest, mass riots or strike actions.
3. A property insurance contract provides otherwise, the insurer is relieved of the
insurance payments for losses, incurred as a result of seizure, confiscation, requisition, arrest
or destruction of the insured property, by order of the government.
4. The grounds for refusal of the insurer in making the insurance payments may also be
the following:
1) the insured posts to the insurer the false information about insurance object, insurance
risk, the insured event and its consequences;
2) willful failure of the insured to take action to reduce losses on an insurance event (
Article 829 of this Code);
3) receiving of the insured a respective compensation of losses on property insurance
from the person, who is responsible for causing the damage;
4) prevention by the insured person to the insurer in the investigation of the insured events
and the determination of the amount of loss caused by them;
5) failure to notify the insurer about the insured event (Article 835 of this Code);
6) refusal of the insured person from his (her) claim against the person, who is responsible
for the occurrence of the insured event, as well as refusal to hand over documents the insurer,
which are needed for transferring to the insurer the claim (Article 840 of this Code). If the
insurance payment has already been paid, the insurer has the right to demand its return in full
or in part;
7) other cases stipulated by legislative acts.
5. Exemption of the insurer from insurance liability to the insured person, based on his (
her) misconduct, provided by this Article, simultaneously shall release the insurer from the
insurance payment to the insured or the beneficiary.
6. If it does not contradict legislation, the terms of the insurance contract may provide
other grounds for refusal of an insurance payment.
7. The decision on refusal of the insurance payment shall be accepted by the insurer, and
the insured shall be informed in writing, with motivated reasons for refusal.
8. The insurer's refusal to make an insurance payment may be appealed by the insurer in
court.
December 18, 2000 № 128 (the order of enforcement see Article 2).
Article 840. Transition To The Insurer Rights Of The Insured To Claim Damages (Subrogation)
1. If the property insurance contract provides otherwise, the insurer, who has effected an
insurance payment, shall transfer a claim, within the paid amount, which the insured (insured)
has the person, who is responsible for the losses, compensated by insurance. However, the
condition of the contract, excluding the transition the insurer the claim to the person, who is
intentionally caused damages, is invalid.
2. The right to claim, passed to the insurer shall performed by him (her) in compliance
with the rules, governing the relationship between the insured (the insured) and the person,
who is responsible the losses.
3. Insured person (insured) shall on receipt of insurance payment, transfer to the insurer
all the documents and evidence, and tell him (her) all the information, necessary to perform
the claim, passed to him (her) by the insurer.
4. If the insured person (insured) refused from his (her) claim to the person, who is
responsible for the losses, compensated by the insurer, or exercising this right has become
impossible, due to the fault of the insured (the insured), the insurer shall be exempt from the
insurance payment in full or in corresponding part and shall be entitled to demand the return
of the excessively paid amount.
December 18, 2000 № 128.
Article 841. Early Termination Of The Insurance Contract
1. Besides the general grounds for termination of the obligations under this Code, the
insurance contract shall be terminated early in the event of :
1) the insurance object ceases to exist;
2) the death of the insured, who is not the insured person, and there was not a replacement
(paragraph 8 of Article 815 of this Code);
3) disposal by the insured person of the object of property insurance, if the insurer objects
to replace the insured, and the contract or legislation on compulsory insurance provides
otherwise (paragraph 1 of Article 836 of this Code);
4) termination in the established order of business by the insured person, who had insured
his (her) entrepreneurial risk or civil liability, connected with these activities;
5) the possibility of the occurrence of insured event has disappeared, and the existence of
the insurance risk stopped by circumstances, other than insurance event.
In such cases, the contract shall be terminated from the moment of the circumstances,
provided as a basis for termination of the contract and about, an interested party shall
promptly notify the other;
6) entry into force of the court decision on compulsory liquidation of the insurer, except in
cases, stipulated by the Law of the Republic of Kazakhstan "On Insurance";
7) Excluded by the Law of the Republic of Kazakhstan dated 15.07.2010 № 338-IV (the
order of enforcement See Article 2);
8) changes to the conditions and information, included in the insurance policy, which is
issued by an insurer, in accordance with the procedure, established by the legislative acts of
the Republic of Kazakhstan;
9) in the cases, stipulated by the Law of the Republic of Kazakhstan "On Insurance".
1-1. If the insurer under the contract of endowment insurance terminates it unilaterally
from the fourteenth to the thirtieth day after the date of conclusion of the contract, the insurer
shall return the insured, the received amount of premiums, minus expenses, which cannot
exceed twenty percent of the amount received as insurance premiums, incurred by the insurer
at the conclusion of endowment insurance contract.
2. The insurer is eligible to cancel the contract of insurance at any time.
10.07.2003 № 483 (shall be enforced from 01.01.2004), dated 20.02.2006 № 128 (the order
of enforcement see Art. 2), dated 30.12.2009 № 234-IV, dated 15.07.2010 № 338-IV (the
order of enforcement see Art. 2).
Article 842. Effects Of Early Termination Of Insurance Contract
1. In case of early termination of the contract of unfunded insurance due to the

circumstances, provided in paragraph 1 of Article 841 of this Code, the insurer is entitled to a
portion of the premium in proportion to the time, during which there were insurance
premiums being paid. Refund of premiums (contributions) for liquidation of the insurer shall
be in accordance with the priority of creditors, under the law of the Republic of Kazakhstan
on insurance and insurance activity.
In case of early termination of the contract of endowment insurance, in the cases provided
by sub-paragraph 6) of paragraph 1 of Article 841 of this Code and paragraph 3 of this Article
, shall be refunded only the redemption amount, established by the contract, and in
accordance with the priority of creditors under the law of the Republic of Kazakhstan on
insurance and insurance activity.
2. If the insured refuses on the contract (paragraph 2 of Article 841 of this Code), and it is
not connected with the matters, provided in paragraphs 1 and 1-1 of Article 841 of this Code,
the premium or insurance fees, paid to the insurer are non-refundable, unless the contract
provides another.
3.In cases, where the early termination of insurance contract, is due to the insurer’s failure
of the conditions, the latter is obliged to return the insured the paid insurance premiums or
insurance contributions in full.
Article 843. Invalidity Of The Insurance Contract
1. Besides the general grounds for invalidity of the legal contracts, provided by this Code,
the insurance contract is invalid, if:
1) at the time the contract was missing the object of insurance;
2) the objects of the insurance are illegal property interests (paragraph 2 of Article 807);
3) the object of insurance is subject to confiscation property, under the an enforceable
court decision, or property obtained by crime, or is a target of crime;
4) as an insurance event, provided the event, which is divided of signs of probability and
randomness of its occurrence (paragraph 3 of Article 817 of this Code) and, is inevitable and
must objectively occur within the contract, what about the parties or, at least, the insurer had
already known;
5) the insured in the contract, knowingly aimed to extract improper advantage, including a
contract after the insurance event;
6) (Is excluded - dated February 20, 2006 № 128 (the order of enforcement see Art. 2);
7) (Is excluded - dated February 20, 2006 № 128 (the order of enforcement see Art. 2);
8) lack of consent of the insured in cases, where obtaining consent is required;
9) the written form of contract is not made (paragraph 3 of Article 825 of this Code).
2. Legislative acts on the compulsory insurance may be provided, in respect to certains of
insurance other grounds, which recognized them as invalid.
February 20, 2006 № 128 (the order of enforcement see Article 2).
Article 844. Effects Of Recognition The Invalidity Of The Insurance Contract
1. Upon recognition of an insurance contract as invalid, the insurer is obliged to return the
insured, received insurance premium or insurance contributions and, the insured (or
beneficiary) returns the insurer the paid insurance payment, received from him (her).
If the contract is invalid on the grounds, that arose as a result of the misconduct of the
insured, as the insurer at the time of conclusion of the contract, as well as during the
execution, did not know or should have known, the insurer shall return the insurance premium
or insurance contributions for the unexpired term of the contract, for net of incurred costs, and
if insurance payment was made - has the right to require the return of the amount paid.
The same effects occur in the event, that the insurance contract is recognized as invalid
for reasons, which give grounds the insurer to deny in the insurance payment (Article 839 of
this Code).
2. If the insurance contract is aimed to achieving the criminal objective shall apply effects
under paragraphs 4-6 of Article 157 of this Code.
December 18, 2000 № 128.
Article 845. Mutual Insurance
1. Citizens and legal entities may insure their property interests, provided by paragraph 1
of Article 807 of this Code, on a reciprocal basis by combining as companies of mutual
insurance with necessary funds.
2. Mutual insurance companies are non-profit organizations and insure other property
interests of their members.
Features of the mutual insurance, legal situation of mutual insurance companies and the
conditions of their activity are determined in accordance with this Code and legislation on
mutual insurance.
3. The insurance of property interests of members by mutual insurance companies shall be
on the basis of membership and insurance contracts.
4. The implementation of compulsory insurance by mutual insurance is allowed in the
cases, stipulated by legislative acts on mutual insurance.
5. (Is excluded - dated February 20, 2006 № 128 (the order of enforcement see Article 2).
February 20, 2006 № 128 (the order of enforcement see Art. 2), dated July 5, 2006 № 164 (
Chapter 41. Mandate
Article 846. Contract Of Agency
1. Under an agency contract, one party (agent) undertakes to perform in the name and at
the expense of the other party (the principal) certain legal acts. On transactions, executed by
agent, the rights and responsibilities arise directly on the principal.
2. An agency contract shall be in writing.
Article 847. Execution Of The Order In Accordance With The Instructions Of The Principal
1. The agent must execute his (her) order in accordance with the instructions of the
Principal. The instructions must be specific, legally valid and enforceable.
2.An agent is eligible to withdraw from the instructions of the principal, if by
circumstances of the case, it is necessary in the interests of the principal and the agent could
not inquire of the principal or has not received a timely response to his (her) request. In this
case, the agent must notify the principal on the deviations, as soon as the notification is
possible.
3. By agreement of the parties, the commercial representative may be relieved from the
duty, specified in paragraph 2 of this Article.
Article 848. Obligations Of The Agent
Agent shall:
1) personally perform his (her) mandate;
2) inform the principal upon his (her) request all the information about the execution of
the order;
3) transfer the principal without delay, whatever he (she) is received in the transaction;
4) after execution of the order, without delay return the principal power of attorney, the
validity of which has not expired, and report the application of supporting documents, if it is
required by the nature of the order;
5) perform other duties, stipulated by legislative acts of the Republic of Kazakhstan.
Article 849. Obligations Of The Principal
1. The principal shall, unless otherwise provided by the contract:

1) provide an agent with the means which are necessary to execute the order;
2) compensate the agent for incurred expenses, which were necessary for the execution of
the order.
2. The principal is obliged to take without delay all executions of the agent in accordance
with the contract.
3. The principal is obliged to pay fees to the agent, after the execution of the order in
accordance with the rules of Article 850 of this Code.
4. Legislative acts of the Republic of Kazakhstan may provide other duties of the
principal.
Article 850. Remuneration In The Contract Of Agency
1. Principal shall pay remuneration to the mandatory, if it is provided by legislative acts or

the contract.
If the agency contract is related to the implementation of entrepreneurial activity of both
parties or one of them, the principal shall pay remuneration to the agent, unless the contract
provides another.
2. If a contract or legislation contains a reference to remuneration of executing contracts,
but do not specify the amount of remuneration, it shall be determined with reference to
commonly accepted rates for such services.
3. Remuneration shall be paid in case, if the agent proves that properly performed all the
required actions, but the order was not exercised due to him (her).
Article 851. Appointment Of A Subagent
1. The agent has the right to transfer the performance of agency to another person (deputy
), if the contract provides so or if the agent is forced to do that, in order to protect the interests
of the principal.
2. An agent, who entrusts performance to another person, shall immediately notify the
principal. Principal is entitled to reject the deputy chosen by the agent, unless this deputy has
been named in the contract.
3. If the deputy of the agent is named in the contract, the agent shall not be responsible for
his (her) conduct of business.
4. If the company of the deputy is stated in the contract, but the deputy is not named
personally in the contract, the agent shall not be responsible for guilty actions of his (her)
deputy.
5. If the company of the deputy of agent is not provided in the contract, the agent shall be
responsible for any actions of his (her) deputy.
Article 852. Termination Of The Contract Of Agency
1. An agency contract shall be terminated, along with the general grounds for termination
of obligations, due to:
1) the request of the principal to cancel the order;
2) the failure of the agent;
3) the death of the principal or agent, or the recognition of any of them incompetent,
incapable or missing.
2. If the agent did not know or should have known about the termination of the agency
contract, his (her) actions, made on the instruction of the principal shall be obligated the
principal (his successor) to a third party and the agent.
3. The party, who withdraws from the contract with the agent, who is acting as an
entrepreneur, shall notify the other party on the termination of the contract for one month,
unless a longer period is provided by the contract.
Article 853. Effects Of Termination Of The Agency Contract
1. If the agency contract terminated before the order is fully executed by the agent, the
principal must compensate the agent expenses, incurred in the execution of the order, and if
the agent is payable fee?? also pay him (her) a fee, which is commensurate to the work done
by him (her). This rule shall not apply to the agent of the order, after he (she) knew or should
have known about the termination of the order.
2. The principal’s cancellation of the order shall not be grounds for damages, caused to
the agent by termination of the contract, except in cases of termination of the contract with
the agent, who is acting as an entrepreneur.
3. Agent’s refusal from execution of the order of the principal shall not be grounds for
damages, caused to the principal by termination of the contract, except in cases of an agent’s
failure in conditions, when the principal unable to provide otherwise his (her) interests, as
well as cases of contract termination by the agent, who is acting as an entrepreneur.
Article 854. Legal Succession In The Contract Of Agency
1. In case of death of the agent, his (her) heirs or other person, who are entrusted with the
preservation of the estate, shall be required to notify the principal on the termination of the
agency contract and take measures necessary to protect the property of the principal, in
particular, keep items as well as documents of the principal, and then shall transfer such items
to the principal.
The same obligation rests on the liquidator of a legal entity, who is an agent.
2. With the reorganization of legal entity, which is acting as representative, the principal
shall be immediately notified in accordance with Article 48 of this Code. In this case, the
rights and obligations of such entity shall be transferred to its legal successor, if the principal
within a reasonable time shall not reject of the contract.
Chapter 42. Actions in Another’s Interest Without Agency (Order)
Article 855. Terms Of Actions In Another’s Interest
1. Actions without orders, other instruction or promised in advance consent of the

interested person, in order to prevent harm to his (her) person or property, or the performance
of his (her) obligations or his (her) other lawful interests (actions in another's interest) must be
performed on the basis of apparent benefit, or benefit and actual or probable intentions of the
interested person, with the circumstances of the case, required care and wariness.
2. The provisions of this Chapter, shall not apply to actions in the interest of other persons
, committed by public bodies for which, such action is one of the objectives of their activities.
Article 856. Notification Of The Interested Person On The Actions In His (Her) Interest
1.A person, who is acting in another's interest, shall as soon as possible inform the
interested person, and wait within a reasonable period of a decision, on approval or
disapproval of the taken actions, unless the wait shall not cause serious injury to the interested
person.
2. It is not necessary to inform the interested person on actions in his (her) interest, if
these actions are being taken in his (her) presence.
Article 857. The Effects Of Approval By The Interested Person, The Actions In His (Her) Interest
If the person, on whose behalf and without his (her) orders the actions are taken, shall
approve these actions, and to the relation of the parties shall apply in the future the rules of
the agency contract or any other contract with the nature of the taken actions, even if approval
was verbal.
Article 858. The Effects Of Disapproval By The Interested Person, The Actions In His (Her)
Interest
1. Actions in another's interest, executed after, the person, who performs it, became
known that they are not approved by the interested person, shall not entail any obligations for
the latter, in respect of such action, or to a third party.
2. Actions, in order to prevent danger to the life of a person in danger, are prohibited
against the will of that person, and the execution of any duty to maintain anybody against the
will of him (her) for the person, which is his (her) duty.
Article 859. Compensation Of Losses To The Person, Who Acts In Another’s Interest
1. Necessary expenses and other actual damages, incurred by a person, who is acting in
another's interest, in accordance with the rules provided by this Chapter, shall be compensated
by the interested person, except for the expenses, caused by the actions specified in paragraph
1 of Article 858 of this Code.
The right to compensation for necessary expenses and other actual damage, shall persist in
the case, where the action in another's interest did not lead to the expected result. But, in the
case of preventing damage to property of another person the amount of compensation shall
not exceed the value of the property.
2. Costs and other damages of the person, who is acting in another's interest, incurred in
connection with the actions that have been taken to the approval of the interested person (
Article 857 of this Code), shall be compensated according to the rules of the contract on the
species.
Article 860. Remuneration For Acting In Another’s Interest
A person, whose actions in another's interest have resulted in a positive outcome for the
interested person, shall be entitled to remuneration, if such right is provided by legislative acts
, the agreement with the interested person or business customs.
Article 861. The Effects Of Transaction In Another’s Interest
Obligations under the transaction, concluded in another's interest shall pass to the person,
in whose favor it is made, and in condition of the approval of this transaction by him (her)
and if the other party does not object to such transfer, or at the conclusion of the transaction
knew or should have known that the transaction has been concluded in another's interest.
In the transition of responsibilities under the transaction to the person, in whose interests
it was concluded, the latter shall be transferred the rights to this transaction.
Article 862. Unjust Enrichment As A Result Of Actions In Another’s Interest
If actions are not directly aimed at the interests of the other person, including when the
person doing them, wrongly assumes that the action in his (her) own interest, led to the unjust
enrichment of another person, and shall apply the rules provided by Chapter 48 of this Code.
Article 863. Compensation For Damage Caused By Actions In Another’s Interest
Relationship to compensate for damage, caused by actions in another's interest, to the

interested person or third parties, shall be regulated by the rules provided in Chapter 47 of this
Code.
Article 864. Report Of A Person, Who Is Acting In Another’s Interest
The person, who was acting in another's interest, shall present to the person, in whose
interests the action, the statement, which shows received income and incurred expenditure
and other losses.
Chapter 43. Commission Fee
Article 865. Commission Contract
1. Under the commission contract, a party (the commission) shall at the request of the
other party (the principal) for a fee, make one or more transactions on his (her) behalf by the
expenses of the consignor.
2. Commission contract must be concluded in writing.
Article 866. Commission Remuneration
Consignor shall be obliged to pay compensation to the commission agent, and in the case
provided by paragraph 2 of Article 868 of this Chapter, also makes additional compensation
in the amount, specified in the contract. If the amount is not provided by contract and cannot
be determined on the basis of its terms, the amount of remuneration shall be determined in
accordance with paragraph 3 of Article 385 of this Code.
If the commission contract was not executed, due to reasons beyond the control of the
consignor, the commission agent shall reserve the right to commission fee, as well as
reimbursement for incurred expenses.
Article 867. Rights And Obligations Of The Commission On Transaction With A Third Party
1. For the transactions, made by the commission agent with a third party, the commission
agent shall acquire the rights and becomes obligated, even if the consignor was named in the
transaction or entered into with a third party in a direct relationship to the transaction.
2. At the request of the consignor, the commission agent must give him (her) the right to
such transaction, with noticing of transfer to a third person, with whom the transaction is
concluded. The latter shall not be entitled to raise against the consignor objections, based on
his (her) demands to the commission, which are not arising out of the transaction.
Article 868. Execution Of A Commission Order

1. The commission shall perform all the duties and exercise all the rights, arising from the
transaction, which he (she) concluded with a third party.
2. The commission agent is obliged to execute the assumed order, in accordance with the
instructions of the consignor, and in the absence of such indications in the contract - in
accordance with the business customs or other usual requirements, in the most favorable
conditions for the principal. If the commission agent made a transaction on terms, which are
more favorable than those, which have been specified by the consignor, then the profit shall
be divided equally by the parties, unless another is provided by the contract.
3. The commission agent shall not be responsible to the consignor, for failure of
transaction by a third party, made with him (her) on the expense of the consignor, unless the
commission has shown due diligence in the selection of that person, or guaranteed the
execution of the transaction (del credere).
4. In the event of failure the transaction by a third party, concluded between the
commission agent, the commission agent shall immediately report this to the consignor, and
gather and provide the necessary evidence.
5. The consignor, noticed on violation of transaction by a third party, concluded between
the commissionaire, is entitled to demand the transfer of the requirements of the
commissionaire to him (her) to this person on such transaction.
Article 869. Sub-commission
1. Unless otherwise provided by the contract, the commission is eligible to conclude a

sub-agency contract with another person, remaining responsible for the actions of
sub-commission to the consignor.
According to the sub-agency contract, the commission shall have the rights and
obligations of the consignor in relation to sub-commission, except for the rights provided by
In cases, where the legislation permitted the conclusion of any transactions only by
authorized persons, sub-agency contract may be concluded only with such a person.
2. Until the termination of sub-agency contract, the consignor shall have no right to enter
into direct relations with sub-commissionaire, unless another is provided by the contract
between the commission and the consignor.
Article 870. Deviation From The Instructions Of The Consignor
1. The commission is eligible to withdraw from the instructions of the consignor, in cases
provided by paragraph 2 of Article 847 of this Code.
2. The commission, who sells the property for less than agreed with the consignor, shall
compensate the latter difference, unless he (she) proves that he (she) was not able to sell the
property at an agreed price, and selling at a lower price warned more heavy losses, and the
fact, that he (she) had no opportunity to obtain the prior consent of the consignor to withdraw
from his (her) instructions.
3. If the commission buys property at a price, higher than agreed with the consignor, and
the consignor is not willing to take such a purchase, the consignor shall be obliged to declare
this to the commission, immediately upon receipt of notification of transaction with a third
party. Otherwise, purchase is recognized as obtained by the consignor.
If the commissionaire reports that takes the difference in the price for his (her) own
expense, the consignor shall have no right to refuse from a deal, concluded for him (her).
Article 871. The Right To Property, Which Is Subject To Commission
1. Property, which is received from the consignor or purchased at the expense of

consignor by the commissionaire, is the property of the consignor.
2. The commission has the right to retain the property, which shall be transferred to the
consignor or a third party under the transaction, concluded by the commission prior to the
payment of amounts, due to him (her) under the commission contract.
Article 872. Withholding By The Commissionaire, Amounts Payable To Him (Her)
The commissionaire is eligible to hold due to him (her) under the commission contract
amount, of all sums, received by him (her) at the expense of the consignor.
Article 873. Liability Of The Commission For Loss, Shortage Or Damage The Property Of The
Consignor
1. The commissionaire is responsible to the consignor for any inaction that caused the loss
, shortage or damage to any property of the consignor in his (her) possession.
2. If at the acceptance by the commissionaire property, sent by the consignor or
introduced to the commission agent for the consignor, and in this property shall be damage, or
other shortages, that can be seen on external examination, and in the event of damage to
property of the consignor by any person, which is in the possession of the commissionaire,
the commissionaire shall action to protect the rights of the consignor, gather the necessary
evidence and all promptly notify the consignor. Under performance of these conditions, the
commissionaire shall not be responsible for any loss of the consignor.
3. The commissionaire, who is not insured the consignor’s property located in him (her),
shall be responsible for it only in cases, when the consignor ordered him (her) to insure the
property or the property insurance is required by law.
Article 874. The Deal For Him(Her)Self

1. If the consignor shall not caused other, the commission contract can be made by the
commissionaire so, that he (she) as the seller delivers the goods, which he (she) has to buy, or
him(her)self as the buyer accepts the goods, which he (she) must sell.
2. The commissionaire, who present him(her)self as a seller the of goods or to accept
them as the buyer, shall be eligible to the usual fee and can bill for compensation of expenses,
arising from the transaction fees.
Article 875. Adoption By The Consignor Executed Under The Commission Contract
Consignor shall:
1) accept from the commission everything performed under the contract;
2) inspect the property, purchased for him (her) by the commissionaire, and to notify the
latter, immediately upon the detection of shortages of this property;
3) release of the commissionaire from the obligations, assumed him(her)self to the third
party, on execution the commission order.
Article 876. Compensation Of Expenses For Execution A Commission Order
1. The consignor shall be obliged, in addition to the payment of commission fee, in

appropriate cases, to additional compensation for del credere, and to compensate the
commissionaire, spent by him (her) on execution orders amount.
2. The commissionaire has no right to compensation on storage of the consignor’s
property, if the legislation or the contract provides otherwise.
Article 877. Cancellation Order By The Consignor
The consignor has the right at any time to cancel the order to the commissionaire. The
commissionaire’s losses, caused by the cancellation of the order shall be compensated on the
same basis.
In case of cancellation of order, consignor shall be obliged to dispose of the property
located at the commissionaire, within one month from the cancellation the order, unless the
contract provides otherwise. If the consignor fails to fulfill this obligation, the commissionaire
may either deposit the property for storage, or to sell it on the best possible price for the
consignor.
Article 878. The Refusal Of The Commissionaire To Perform Orders
1. The commissionaire shall not, unless another is provided by contract, refuse to execute
received orders, except when the violation of duties by the consignor, entails the impossibility
of execution of the order, in accordance with the consignor or impossibility of performance is
due to other circumstances, for which the commissionaire is not responding.
The commissionaire shall notify the consignor in writing on his (her) refusal and take
measures for safe-keeping of any property of the consignor.
The consignor, who was informed of the refusal of the commission to execute instructions
, shall dispose the property which is at the commission agent within a month from the date of
receipt of the refusal, unless the contract provides otherwise. If he (she) shall not fulfill this
obligation, the commission may either deposit the property for storage, or sell it on the best
possible price for the consignor.
2. The commissionaire, who refused the execution of the order due to violation of his (her
) duties by the consignor, shall retain the right to commission fee, as well as compensation for
incurred expenses.
Article 879. Termination Of The Commission Contract
1. The contract shall be terminated, in the event of consignor’s cancellation of all orders,
under the commission contract.
2. The commission contract shall be terminated, in addition to the common grounds, as a
result of:
1) the failure of the commission to execute the contract;
2) the death of the commission, and recognition him (her) incapable, disable, missing or
insolvent (bankrupt).
Article 880. The Refusal Of The Consignor From The Contract, Concluded Without Specification
Of The Period
The consignor is eligible at any time to cancel the commission contract, concluded
without specifying the period, by notification of the commissionaire about the refusal no later
than one month, unless a longer period of notice is not established by the contract.
In this case, the consignor shall be obliged to pay the commission fee to the consignor for
transactions, made by him (her) before the termination of the contract, as well as to
compensate the consignor expenses, incurred prior to the termination of the contract.
Article 881. The Refusal Of The Commissionaire From The Contract, Concluded Without
Specifying The Period
1. The commissionaire is eligible at any time to cancel the commission contract,

concluded without specifying the period, with notification the consignor about the refusal no
later than one month, unless a longer period of notice is not provided by the contract.
In this case, the commissionaire shall be obliged to take measures for the safe-keeping of
any property of the consignor. The consignor shall be obliged to dispose the property, which
is at the commission agent before the termination of the contract. If he (she) shall not fulfill
this obligation, the commissionaire may either deposit the property for storage, or sell it on
the best possible price for the consignor.
2. The commissionaire, who cancels the contract, is eligible to receive commission fee
and compensation of expenses, due to him (her) at the time of termination.
Article 882. Legal Succession In The Contract Of Commission
1. In the case of reorganization of the legal entity, which is the commissionaire, his (her)
rights and obligations shall be transferred to successors, if within one month from the date of
receipt of notice on the reorganization held, consignor shall not report the termination.
2.In case of death of the citizen, who is the consignor, recognition him (her) incapable,
disable, and missing, and in the event of liquidation of the legal entity-consignor, the
commissionaire shall continue to perform given commission orders, as long as from the heirs
or representatives of the consignor shall not be received other appropriate instructions.
Chapter 44. Trust management of property
Article 883. The Concept And Grounds For The Trust Management Of Property
1. In settlement the trust management of property, the trustee shall control on the
beneficiary’s behalf the property, transferred to his (her) possession, use and disposal, unless
otherwise provided by contract or legislation, in the interests of the beneficiary.
2. Property trust is arising (establishing) on the basis of:
1) transactions (in particular, under the contract, according to the testament, which
appointed the executor (trustee);
2) a judicial act (by appointment of a competent or rehabilitation manager in bankruptcy
proceedings, custody of the estate of the incapacitated, missing or deceased citizen, and in
other cases, stipulated by legislative acts);
3) the administrative act (in the establishment of guardianship of the estate of a minor,
deceased; admission entrepreneur in the public service and in other cases, stipulated by
legislative acts).
3. Features of property trust management for banking activity are established by
legislative acts of the Republic of Kazakhstan regulating banking activity.
4. Features of trust management of the state property are established by legislative acts of
the Republic of Kazakhstan on state property and other legislative acts of the Republic of
Kazakhstan.
12.01.2007 № 225 (shall be enforced from the day of its official publication), dated
12.02.2009 № 133-IV (the order of enforcement see Article 2), dated 01.03.2011 № 414-IV (
shall be enforced from the date of its first official publication).
Article 884. Subjects Of Property Trust Management
1. The founder may be the owner, as well as the other subject of a property right or the
competent authority, authorized to the transfer of property in trust.
2. The trustee may be any person, unless otherwise provided by legislation. The
appointment of a trustee can be made only with his (her) consent.
3. The beneficiary (the person, in whose interests made the management of the property)
may be any person, who is not a trustee, and the state or political subdivision.
4. Unless another is provided by legislation or contract on trust management, the
beneficiary shall be the founder of the trust property.
Article 885. Subjects Of Property Trust Management
1. The object of trust management can be any property, including cash, securities and
property rights, unless another is provided by legislation.
2. Trustee shall account the trust property, separately from the property belonging to him (
her) on the right of ownership (economic control, operational management).
3. Property, acquired and (or) received by the trustee in the course of his (her) duties, shall
be included in the trust property.
4. Foreclosure on the debts of the founder to the property, transferred to him (her) in trust,
shall not be permitted, except the cases provided by Article 1081 of this Code and the
Insolvency (Bankruptcy) of the person. In bankruptcy of the founder, trust management of
this property shall cease, and it is included in the bankruptcy assets.
5. Transfer of the pledged property in trust, shall not deprive the mortgagee the right to
foreclose on the property.
Article 886. Trust Management Contract
1. Under the contract of trust management, one party (trustor) transfers to another party (
the trustee) the property in trust, and the other party agrees to manage these assets for the
benefit of the person, indicated by the trustee (beneficiary).
In the period of the contract of trust management, the founder of the trust may not take
any action with respect to property, held in trust, unless another is provided by the legislative
acts of the Republic of Kazakhstan or this contract.
2. The property trust management contract shall provide:
1) the subject and period of the trust management contract;
2) the composition of the property, transferred to the trust;
3) an indication of the beneficiary;
4) the timing and form of reporting of the trustee;
5) an indication to the person, who shall be receiving the property, in the event of
termination of the contract of property trust management.
For certains of contracts legislation may provide other essential terms.
The contract may provide for other conditions, including the amount and forms of
remuneration.
The contract may provide the rights of third parties to the property, which is transferred in
trust.
3. The rules on the trust management contract, shall subject to the relations, arising for
other reasons of establishing trust management, unless otherwise provided by legislation or
being of occurred relations.
16, 2003 № 416.
Article 887. Form Of The Contract Of Property Trust Management
1. The property trust management contract shall be in writing.

2. The contract of trust management of the real property shall be concluded in the form
and manner prescribed by the contract for the alienation of immovable property.
Article 888. Rights And Responsibilities Of The Trustee
1. The Trustee shall have the right to take any action, which would make the owner with a
trusted property for the purpose of appropriate management.
The rights of the trustee to the trust property may be limited by legislative acts, contracts
or other acts, under which the property trust management are based.
The trustee is eligible to make alienation and pledge of real property only in cases, when
it is provided by the Act on establishment of trust management.
2. The trustee is entitled to compensation for necessary expenses, incurred by him (her) in
trust management at the expense of the founder (the beneficiary) or a trusted property or from
the proceeds of usage of the authorized property.
The trustee shall be entitled to remuneration, if the act provides for the establishment of
trust management.
3. Trustee shall be entitled to claim property, entrusted to him (her) from unlawful
possession, and demand the removal of a violation of his (her) right to management even
these violations are not related to possession.
4. The trustee reports about his (her) activity to the founder and beneficiary in terms and
in the manner, prescribed by the contract of trust management. At the request of the founder,
and (or) the beneficiary the report on the activity of the trustee shall be submitted
immediately in other cases too.
5. The transaction, made by the trustee in breach of his (her) restrictions shall be valid, if
involved in such a transaction third parties did not know or should have known such
restrictions. In this case, the trustee is liable to the trustor in accordance with the contract and
legislation.
Liabilities of the transactions, made by the trustee in excess of the powers, conferred upon
him (her) or in violation of the restrictions for him (her), shall bear the trustee by his (her)
property.
Article 889. Transference Under The Initiative Of The Trustee
1. Trustee shall execute trust management of the property personally.

2. The trustee may appoint another person to perform any act, required to manage
entrusted property, if he (she) is authorized by act on establishment of a property trust or
forced to it by circumstances to ensure the interests of the beneficiary and do not have an
opportunity to ask the instructions of the trustor. In this case, the trustee shall be responsible
for the actions of his (her) attorney as his (her) own.
The trustee shall promptly notify the trustor about the transference. Trustor, unless
another is provided by legislation, in this case is eligible to declare the termination of property
trust management, refund to the trustee the expenses incurred before, and if trust is a business
activity, and then compensate the damages.
Article 890. Liability Of The Trustee
1. In case of improper management of the property, the trustor or beneficiary may bring a
claim in court to terminate trust and compensate damages. In this case, the trustee is assumed
guilty for improper performance of duties unless he (she) proves that he (she) has taken all
possible measures for the proper performance of duties.
2. Trustee shall be subsidiary liable to third persons by his (her) property for the damages,
caused by improper actions for management of property.
Article 891. Termination Of The Contract Of Property Trust Management
1. Contract on trust management, along with the general grounds for termination of
obligations, shall be terminated by:
1) the death of a citizen, who is a trustee, and declaring him (her) dead, the recognition
him (her) legal incapable or limited capable, and missing; and liquidation of the legal entity,
which is the trustee;
2) refusal of the trustee or trustor, due to the inability to the trustee, personally manage the
trusted property;
3) refusal of the trustor from the performance of the contract, subject to payment of
damages and fee to the trustee, if it is provided by the contract;
4) refusal of the trustee in the case of non-disclosure to him (her) about the transferring to
management the charged property with payment of the fee, if it is provided by the contract.
2. Transfer of ownership to the trusted property shall not cease the property trust
management.
3. Upon termination of the contract of property trust management, trusted property shall
be transferred to the person, who is specified in the contract.
4. In case of bankruptcy of the trustor, the trust management of property stops and trusted
property shall be transferred to the bankruptcy estate.
In the case of death of an individual, who is a trustor the trusted property shall be
transferred to the succession mass.
5. Upon termination of the contract by the initiative of one party, the other shall be
notified at least three months (except as provided in sub-paragraphs 2) and 4) of paragraph 1
of this Article), unless another is stipulated by legislative acts or the contract.
6. The procedure and conditions for termination of trust management of securities are
determined by the legislation of the Republic of Kazakhstan on the securities market.
Article 892. Trust Management Of Shares And Other Securities
1. Trustee shall have the right to deal in shares and other securities, transferred in trust,
and (or) the acquisition by the trusted property or at the proceeds from the usage of a trusted
property.
2. Information about the trust manager on the issuing securities shall be reflected on the
account of the owner of the trust, which is opened by the professional participant of the
securities market, in accordance with the legislation of the Republic of Kazakhstan.
3. Trustee in the management of entrusted shares (share), unless another is provided by
the act on establishing the trust management, shall :
1) participate in the management of the corporation;
2) receive dividends payable on shares and transfer them to the beneficiary;
3) in the event of liquidation of the company receive the shares earned by the property and
transfer it to a beneficiary or the founder under the contract;
4) implement the alienation of shares and otherwise deal with, including the bail.
4. Features of trust management of securities are determined by the legislation of the
16, 2003 № 416.
Article 893. Trust Management Assets Of Investment Funds
Features of the trust management of assets of investment funds are operated under the
conditions and in the manner established by the legislation of the Republic of Kazakhstan on
investment funds.
July 7, 2004 № 577.
Article 894. Trust Management Company As A Property Complex
Trust management of company as a property complex is operated on the conditions and in

the manner prescribed by the act on establishment of a trust management, unless another is
provided by legislation.
Article 895. Trust Management To The Property Of Public Servant
Property of a public servant, used for business activity, shall be transferred to trust
management in the cases and in the manner provided by legislative acts.
Chapter 45. Complex Business License (Franchising)
Article 896. The Concept Of A Contract On Complex Business License
1. Under the contract of complex business license, one party (the complex licensor) shall
provide the other party (the complex licensee) for the reward the system of exclusive rights (
license complex), including, in particular, the right to use the licensor's brand name and
proprietary information, and other intellectual property rights (trade mark, service mark,
patent, etc.) specified in the agreement, for use in the business activity of the licensee.
2. The contract of complex business license provides for the use of licensed complex,
business reputation and business experience of the licensor in a certain extent (in particular,
with the establishment of minimum and (or) the maximum amount of use), with or without
the indication of the territory, with respect to a particular field of activity (sale of goods,
received from the licensor or made by the user, the implementation of other commercial
activities, works, services).
3. The restrictions for the usage of complex business license contract in some areas of
business shall be established by legislative acts.
Article 897. Form Of A Contract On Complex Business License
Complex business license contracts must be concluded in writing.
Article 898. Obligations Of The Licensor

The licensor shall within the period and to the extent specified in the contract transfer to
the licensee technical and commercial documents and provide other information, necessary to
the licensee to exercise the rights granted to him (her) under the contract, as well as provide
training and advice to the licensee on matters relating to the implementation of these rights.
Contract may provide other obligations of licensor.
Article 899. Obligations Of The Licensee
Unless another is provided by the contract, the licensee shall:

1) use in the implementation of activities under the contract the license complex of the
licensor in the manner specified in the contract;
2) allow the licensor to his (her) production area, provide him (her) with the necessary
documentation and assist in obtaining the information, necessary to monitor the proper use of
exclusivity;
3) follow all instructions and indications of the licensor concerning the nature, methods
and conditions of use the transferred exclusive rights;
4) not disclose the production secrets of the licensor and the other confidential
commercial information;
5) inform the buyers (customers) by the most obvious way for them, that he (she) uses the
name, trademark, service mark or other means of individualization under the contract of a
complex business license.
Article 900. Restrictive Conditions
1. Complex business license contract may provide restrictive (exclusive) conditions, in

particular:
1) the obligation of the licensor not to grant other similar complex business licenses for
their use in the territory, assigned to the licensee or refrain from immediate self-employment
in this area;
2) the licensee's obligation not to compete with the licensor in the territory of application
of a complex business license in respect of a business, carried on by the licensee with
exclusive rights belonging to the licensor;
3) failure of the licensee to obtain other complex business licenses from competitors (or
potential competitors) of the licensor;
4) the licensee's obligation to negotiate with the licensor the location of the premises, their
external and internal design, used in the implementation of the agreement provided the
exclusive rights.
2. Restrictive conditions of the contract of complex business license shall be invalid in
cases where it is stated that:
1) the licensor is entitled to determine the licensee’s selling price of the goods or the price
of works (services) performed (provided) by the licensee, or set an upper or lower limit of the
indicated prices;
2) the licensee is eligible to sell goods, works or services only to a certain category of
buyers (customers) or exclusively buyers (customers), who live (residence) on the territory
specified in the contract.
Article 901. Licensor’s Responsibility To The Requirements Of The Licensee
Licensor is vicariously liable for the requirements, imposed on the licensee on the
inadequate quality of goods (works, services), sold (performed or rendered) by the licensee
under the contract of complex business license.
Article 902. Complex Business Sublicense
1. Complex business license contract may provide the licensee’s right to allow to use the
granted to him (her) all or some of the exclusive rights to others on terms agreed with the
licensor or defined by the contract.
2. The contract of complex business license may contain the licensee’s obligation to issue
within a certain period of time, a certain number of sub-licenses, with or without an indication
of the territory of their use.
3. The rules of principal contract between the licensor and licensee shall apply to the
contract of complex business sublicense, unless otherwise stated from the features of contract
on complex entrepreneurial sublicense.
Article 903. Dependence Of The Complex Business Sublicenses On The Principal Contract
Between The Licensor And Licensee
1. Complex business sublicense contract cannot be concluded for a longer period than the
main contract between the licensor and the licensee.
2. Termination of the contract of complex business license shall terminate all contracts of
complex business sublicense concluded in accordance with it.
3. If the licensor's main contract with the licensee is invalid on the grounds stipulated by
legislative acts, all the contracts of complex business sublicense concluded in accordance with
it shall be invalid.
Article 904. Features Of Relationship Of The Licensor, Licensee And Sublicense
1. Unless another is provided by the contract of complex business license, in the early
termination of it, the rights and obligations of the licensee under the contract of complex
business sublicense shall transfer to the licensor.
2. The licensee shall be vicariously liable for the harm, caused to the licensor by the
sublicensees’ actions, unless otherwise provided by the contract of complex business license.
Article 905. Continuance In Force Of The Contract At Change The Company Name
In case, when the licensor changes his (her) name, the contract of complex business
license shall be valid for a new company name of the licensor, if the licensee does not require
termination of the contract and compensation of losses. If the contract is saved, the licensee is
eligible to demand a proportionate reduction of remuneration, payable to the licensor.
Article 906. Continuance In Force Of The Contract At Change One Or More Exclusive Rights To
The Use
In cases in which the licensor changes one or more exclusive rights to the user, the
contract of complex business license shall be valid for new exclusive rights of the licensor, if
the licensee does not require termination of the contract and compensation of losses. If the
contract is saved, the licensee is eligible to demand a proportionate reduction of remuneration,
payable to the licensor.
Article 907. Consequences Of The Termination Of The Exclusive Rights To The User
If during the period of the contract of complex business license, is expired any exclusive
right, which is included under the contract in the set to the user, or this right is expired on
another basis, the contract shall be valid, except for the provisions relating to the terminated
right, and the licensee, unless another is provided by contract, is eligible to demand a
proportionate reduction of remuneration, payable to the licensor.
Article 908. Termination Of The Contract Of Complex Business License
1. Complex business license contract concluded with the term may be terminated in
accordance with the rules of this Code.
2. Party in the contract is entitled to refuse from the termless contract of complex business
license, with notification of the other party six months before, unless the contract provides for
a longer period of notice.
Article 909. Succession In The Contract Of Complex Business License
1. Transfer to another person of any particular exclusive right, which is included in the
license complex, shall not be a reason to change or cancellation of the contract. The new
owner enters into a contract to the rights and obligations, relating to the transferred exclusive
right.
2. In case of death of the licensor-citizen, his (her) rights and obligations under the
contract of complex business license shall transfer to the heir, if the latter is registered, or
within six months from the date of opening of the inheritance shall be registered as an
entrepreneur. Otherwise, the contract is terminated.
Administration of the license complex prior to the adoption of the successor the rights and
obligations or to register the successor as an entrepreneur, is carried out by a trustee, who is
appointed by a notary in the prescribed manner.
Chapter 46. Competitive Obligations
Article 910. Content Of The Competitive Obligation
1. This chapter regulates the competitive obligations, arising from the public promise of
rewards, and obligations, arising under the tender, auction and other forms of trading,
established by the legislative acts of the Republic of Kazakhstan.
Competitive obligations may also be regulated by other legislative acts of the Republic of
Kazakhstan.
2. In competitive obligation, its initiator based on certain of the items and initial
conditions of the competition, offers to attend an indefinite or a particular group of people,
and agrees to pay the fixed fee to the winner and (or) enter into a contract, which is
corresponding the content of competitive obligation.
3. Invitation to take part in the competition can be made by the tender initiator, either
directly or through an intermediary, the contest organizer.
Rights and obligations of the intermediary are determined by his (her) contract with the
initiator of the competition.
4. Competition may be open, when the proposal of the initiator to take part in the contest
is addressed to everyone, by announcing in the press and other media, or may be closed, when
the invitation to tender sent to specified people by the choice of the initiator of the
competition.
5. Open competition may be provided by the preliminary qualification of its participants,
when the initiator of the competition conducted pre-selection of individuals, who want to take
part in the competition.
21, 2002 № 323.
Article 911. Public Promise To Remuneration
1. Any person, who has announced publicly on the remuneration in cash or in another
form for the best performance of work or achievement of other results, shall fulfill an
obligation to a person, who in accordance with the terms of the competition is declared the
winner.
2. Public promise to remuneration has to contain provisions, providing an essence of the
task, the criteria and order of results, the amount and form of remuneration, and the order and
timing of the announcement of results.
3. The decision to pay remuneration and its payment must be accepted and implemented
within the promised time.
4. If the tender was announced for the creation of works of science, literature and art, a
person, who gave a public promise, gets a preferential right to conclude the contract with the
creator of the product for its use with the payment of the fee, unless another is provided by a
public promise of reward.
5.A person, who gave a public promise of reward, shall be obliged to return the works,
which are not awarded remuneration to their creators, unless otherwise provided by the terms
of the contest.
Article 912. Cancel The Public Promise Of Remuneration
1. The person, who announced publicly the payment of remuneration, shall be entitled to
the refuse the promise, if the announcement provides, or it implies the inadmissibility of
refusal or is given a certain time limit for the action, for which the reward promised, or at the
time of the announcement of refusal, at least one of the persons already implements actions,
specified in the advertisement.
2. The cancellation of the public promise of remuneration shall not relieve the person,
who announced the reward, from compensation to a person, the costs incurred in connection
with the commission of prescribed declaration. The amount of compensation in all cases
cannot exceed remuneration specified in the declaration.
Article 913. Features Of Conducting Of Lotteries, Sweepstakes And Other Games
1. The relationship of the state, administrative-territorial unit or a person, who has

received from the authority a license to conduct lotteries, sweepstakes and other games based
on chance, with a participant of these games is based on the contract. Such a contract is issued
by granting a lottery ticket, receipt or other document and recognized as concluded since the
payment of the games participant the cost of ticket or other payment for participation in the
game.
2. Persons who, in accordance with the terms of the lottery, sweepstakes or other games
are considered winners, shall be paid by the initiator (the organizer) of games the wining
payment, under the conditions of the games in the amount, form (monetary or in kind) and
terms, and if the time in these conditions was not specified, within ten days of the
determination of the results of games.
3. In cases of breach the obligation specified in paragraph 2 of this Article by the games
initiator (organizer), a participant, who won the lottery, sweepstakes or other games, is
entitled to demand payment of winnings, as well as compensation for losses.
Article 914. Requirements Related To The Gaming And Betting And Participation In Them
The demands of citizens and legal entities, connected with the organization of the games
or betting, based on risk (gambling and betting), or participation in them, subject to the
organizer of gambling with the terms of gambling and (or) betting, shall not be subject to
judicial protection, except for claims arising out of the relations mentioned in Article 913 of
this Code.
Article 915. Tender
1. At the auction in the form of tender its initiator undertakes (the organizer) on the basis
of proposed baseline conclude a contract (as a seller, buyer, customer, contractor, landlord,
tenant, etc.) with the bidder, who offers the best for the initiator of tender terms and
conditions.
2. Bidders, within the terms of its timing, refer to the initiator or the organizer of the
tender proposals in writing with the application of all tender documentation. Conditions of the
tender can provide proposals in a sealed envelope and under the motto.
Violation of the deadline for submission of proposals shall entail exclusion of the person,
who missed the deadline, from the number of bidders, if the initiator or organizer does not
notify in writing this person for admission to tender.
3. Choosing the winner among the participants is carried out by the initiator of a tender or
tender commission created by him (her) in closed or open manner under the terms of the
tender.
4. The tender may be declared invalid by its initiator, if it was attended by less than two
participants or offers of participants of the tender are recognized by the initiator of the tender
as dissatisfying the conditions of the tender.
5. The initiator of the tender signs the contract with the winner of the tender. In case of
refusal of the initiator to conclude the contract with the winner, the winner of the tender may
recover damages caused to him (her).
6. Conditions of the tender can be provided by making the guarantee fee of each tender
participant, which shall be returned to participants after the results of the tender. The
guarantee fee shall not be refundable, if the tenderer refuses from his (her) offer or modify it
before the expiration of the tender.
The guarantee fee shall not be refundable to the winner of the tender, in the event, where
the winner refuses to sign a contract with the initiator of the tender on terms, which are
meeting proposals of winner.
Article 916. Auction
1. In an auction the seller is obliged to sell the auction item to the bidder who offers him (
her) the highest price.
2. The auction can be conducted in the context of rising or falling the prices declared by
the seller.
3. The terms of the auction, conducted by a fall in prices, may be provided by a minimum
price at which the item can be sold.
4. The subject of the auction may be any movable or immovable property, which is not
withdrawn from the civil turnover, including intellectual property, contracts and property
rights, including import, export and other quotas and licenses.
5. Proposals for participation in the auction shall contain information about the subject of
the auction, the time and place of the meeting.
6. Persons, wishing to participate in the auction, until the start of the auction, unless
otherwise provided by the terms of the meeting, submit a request to participate in the auction
and make a set amount of guarantee fee.
7. The auction may be held, if it shall be participated by at least two participants (
customers).
8. If the subject of the auction did not want to buy any of the participants, the initial price
may be reduced or the subject can be removed from the auction.
9. Unless another is stipulated by the terms of the auction, with the bidder, who offered
the highest price, is concluded a contract to sell him (her) a subject of the auction.
10. If the buyer refused to enter into a contract, under paragraph 9 of this Article, he (she)
should be excluded from participation in the auction, the guarantee fee shall not be refunded,
and the subject of the auction, from purchasing of which the buyer refused, could again be put
up for auction.
11. For individuals who took part in the auction, but did not buy anything, the amount of
the their guarantee fee shall be refunded.
For persons, who purchased any item in the auction, the amount of guarantee fee shall be
credited against the purchase price.
Chapter 47. Liabilities arising from injury
Article 917. General Basis Of Responsibility For Causing Harm
1. Harm (property and (or) non-property), caused by illegal actions (inaction) to the
property or non-property rights and benefits of citizens and legal entities shall be
compensated by the person, who caused the damage, in full.
To person, who is not a causer may, be imposed the duty of compensation and set a higher
amount of compensation by legislative acts of the Republic of Kazakhstan.
2. A person who caused harm shall be exempted from its compensation, if he (she) proved
that the damage was caused not by his (her) fault, except the cases, provided by this Code.
3. The damage caused by lawful actions shall be compensated in cases provided by this
Code and other legislative acts.
Article 918. Prevention Of Causing Harm
1. The risk of harm in the future can be the basis for the suit to ban actions that create
such a risk.
2. If the injury is a consequence of the operation of the enterprise, construction or other
industrial activities, which also continues to cause harm or threaten new harm, the court may
order the defendant, in addition to paying compensation for damages, to stop the activity.
The court may disallow the claim for termination of the related activity, if the termination
is contradict to the public interest. The refusal to terminate such activity shall not deprive the
victims of the right to compensation for damage caused by this activity.
Article 919. Causing Of Harm In Necessary Defense
Harm, caused in necessary defense shall not be compensated, if it is not exceeded its
limits.
Article 920. Causing Of Harm In State Emergency
The damage, caused in a state of emergency, for elimination of danger to him(her)self or

others, and if this danger under the circumstances could not be eliminated by other means,
must be compensated by the person, who caused the harm.
Considering the circumstances under which such harm was caused, the court may impose
the duty to refund to a third person, for whose benefit the act caused harm, or to the third
party or harm-doer in the share order, and to release from the compensation of damage in
whole or in part as this third person, and the person, who caused harm.
Article 921. Liability Of A Legal Entity Or Citizen For Harm, Caused By His (Her) Employee
1. A legal entity or citizen shall compensate the damage, caused by his (her) employee in
the performance of employment (employment, official) duties.
2. Regard to the provisions of this Code on liability for commission of the injury by
employees, recognized the citizens performing work under an employment contract, as well
as on the basis of a civil contract, if they acted or should have acted on the instructions and
under the supervision of the legal entity or citizen, who is responsible for the safe operation.
Business partnerships, joint stock companies and production cooperatives compensate the
damage, caused by their participants (members) in the implementation of the latest business,
industrial or other activities of the partnership, corporation or cooperative.
15, 2007 № 253.
Article 922. Liability For Damage Caused By The State Authorities, Local Authorities And Their
Officials
1. The harm, caused by publication of acts of the public authorities, which are
unconformable to the legislation, shall be compensated upon a court decision, regardless of
the fault of agencies and officials, who issued the act. Harm shall be compensated at the
expense of the state treasury. A representative of the Treasury is financial authorities or other
bodies and individuals on special assignment.
2. Local self-government bodies are responsible for damage, caused by their bodies and
officials, in a judicial proceeding.
3. Damage, caused by unlawful actions (inaction) of public officials in the administration
governance shall be compensated on the same basis (Article 917 of this Code) at the expense
of money, which is at the disposal of the bodies. With their lack the harm shall be subsidiarily
reimbursed by the state treasury.
Article 923. Responsibility For The Damage Caused By Unlawful Actions Of The Investigating
Agencies, Preliminary Investigation, Prosecution And Courts
1. The harm caused to an individual, as a result of unlawful conviction, unlawful criminal

prosecution, unlawful use as a measure of preventive detention, house arrest, recognizance
not to leave, unlawful imposition of an administrative penalty in the form of detention or
correctional labor, illegal placement in a psychiatric or other medical institution shall be
reimbursed by the state in its entirety, regardless of the guilt of the persons of inquiry,
preliminary investigation, prosecution and court, in accordance with the legislation.
2. The harm caused to an individual or entity as a result of other illegal activities of the
investigating agencies, prosecutors, shall be refunded on the grounds and in the manner
provided by Article 922 of this Code.
3. Harm caused by unlawful actions (inaction) of judges and other court employees in the
exercise of justice, except as provided in paragraph 1 of this Article shall be compensated on
the same basis and in the manner prescribed by paragraph 3 of Article 922 of this Code.
Article 924. Compensation Of The Harm By The Person, Who Has Insured Responsibility
A legal entity or citizen, who has insured his (her) liability in voluntary or compulsory
insurance and in case of insufficiency of the insured sum for the full recovery of damage shall
reimburse the difference between the insured amount and the actual amount of damage.
Article 925. Responsibility For The Damage, Caused By Minors At The Age To Fourteen
1. For damage, caused by a minor under the age of fourteen (juvenile), meet their legal
representatives, unless they prove that the damage was their fault.
2. If a juvenile, who needs care, was at an appropriate educational institution, medical
facility , social welfare body, or other similar institutions, which by law is a guardian, then
this institution is obliged to compensate the damage caused by the minor, unless the
institution can prove that the damage was not the fault of the juvenile under its care.
3. If a minor, injured in the time, when he (she) was under the supervision of the
educational institution, educational, medical or other institution, which are obliged to
implement supervision over him (her), and the person, who is required to supervise according
to the contract, the institutions and persons shall be responsible for the damage, unless they
prove that the damage was not their fault in the supervision.
4. The duty of legal representatives, educational institutions, educational, medical and
other institutions on compensation of damage shall not stop with the achievement of minor
the age or getting their property sufficient to redress.
If the legal representative died or they, and other citizens, specified in paragraph 3 of this
Article, do not have sufficient funds for compensation of damages, caused to life and health
of the victim, and if the causer, who became fully capable, has such means, the court, in view
of the property status of the victim and the injurer, and other circumstances, may decide the
compensation of damages in full or in part by the property of the causer.
Article 926. Responsibility For The Damage, Caused By Minors Under The Age To Fourteen
1. Minors under the age of fourteen to eighteen shall bear responsibility for the damage
that they cause personally.
2. When a minor between the ages of fourteen and eighteen years, have no property or
other sources of income sufficient for compensation, the harm must be compensated in full or
in the missing part by his (her) legal representatives, if they can prove that the damage was
not their fault .
If a minor under the age of fourteen to eighteen, who is in need of care, is in the
appropriate educational, medical, social welfare, or other similar institutions, which by law is
his (her) guardian, the institutions shall be required to fully compensate the damage or
missing parts, if they prove that the damage was not their fault.
3. The duty of the legal representatives and the institution to compensate for damage, shall
terminate on reaching the causer adulthood, or when he (she) shall have the property or other
sources of income, sufficient for compensation, or when he (she) got up capacity prior the
legal age (paragraph 2 of Article 17, Article 22-1 of this Code).
Article 927. The Responsibility Of Parents, Deprived Parents From Parental Rights, For The
Damage Caused By Minors
To the parent, who has been deprived parental rights over their children, the court may
place the responsibility for the damage, caused by his (her) young children within three years
after the deprivation of parental rights, if it is determined, that the child's behavior that has
caused harm was caused by the child’s improper upbringing under its parents.
Article 928. Responsibility For The Damage Caused By A Citizen, Who Is Deemed As
Incompetent
1. The damage, caused by a citizen, who is deemed as incompetent (Article 26 of the

Code), shall be compensated by his (her) guardian, or an organization pledged to implement
supervision over him (her), unless they can prove that the damage was not their fault.
2. Responsibilities of the guardian or organization to compensate for damage, caused by
the citizen deemed as incompetent, shall not stop in the case of recovery of his legal capacity.
3. If a guardian has died or does not have sufficient funds for compensation, and the
incompetent citizen has such means, the court due to the property of the victim and the injurer
, and other factors, in particular, restoring the capacity of the causer, is entitled to decide on
compensation for damage, caused to life and health of the victim, in whole or in part from the
property of the causer.
Article 929. Responsibility For The Damage Caused By A Citizen, Who Is Deemed As Having
Limited Capability
The damage, caused by a citizen deemed as having limited capability due to the abuse of
alcohol or drugs (Article 27 of this Code) shall be reimbursed by the citizen responsible for
damages in the general procedure.
Article 930. Responsibility For The Damage Caused By A Citizen, Who Is Not Able To
Understand The Significance Of Their Actions
1. A capable citizen, as well as a minor between the ages of fourteen to eighteen, who
caused harm in such a state, when they could not understand the significance of their actions
or control them, shall not be responsible for damage caused by them.
If the harm caused to the life or health of the victim, the court may, due to the personal
property of the victim and the injurer, as well as other circumstances, obligate the injurer to
compensate for damage in whole or in part.
2. Causer is not relieved from liability if he (she) brought him(her)self into such a state by
consumption of alcoholic beverages, drugs, or other means.
3. If damage is caused by a person, who could not understand the significance of his (her)
actions or control them due to mental illness or dementia, the duty to compensate for harm
may be imposed by the court on living together with the person his (her) working spouses,
parents, adult children, who are aware of the condition of the causer, but did not put the issue
of recognition of incapacity, and the establishment of guardianship over him (her).
Article 931. Responsibility For The Damage Caused By A Activity, Creating Greater Danger To
Others (Source High Risk)
1. Legal entities and individuals, whose activities are associated with increased risk to
others (transport companies, industrial enterprises, construction sites, vehicle owners, etc.) are
required to compensate the damage caused by the source of danger, unless it is proved that
the damage was due to force majeure or intent the victim.
The duty on compensation of damages is imposed to a legal entity or citizen, who
possesses a source of high danger on the right of property, the right of economic management
or operational control, or on any other legal grounds (tenancy agreement, power of attorney to
the vehicle control, by order of the competent authority of transfer of power, etc.).
2. Owners of sources of high danger are jointly and severally liable for the damage caused
by the interaction of sources (vehicle collisions, etc.) to third parties on the grounds provided
by paragraph 1 of this Article.
The damage, caused by the interaction of sources of increased danger to their owners shall
be compensated on the same basis. In this case:
1) damage caused by the fault of one party shall be reimbursed in full by that party;
2) the damage caused by the fault of the two or more parties shall be compensated in
proportion to the degree of fault of each.
If it is impossible to determine the degree of fault of each party, the responsibility shall be
shared between them equally.
None of the parties has the right to demand compensation without fault of the parties in
causing harm. Each party in such a case bears the risk of incurred losses.
3. The owner of an entity that can be of high danger is not responsible for damage caused
by this source, if he (she) proves that the this entity is not in his possession as a result of
wrongful acts of others. In such cases, the liability for damage, caused by a source of
increased danger shall be the persons, who have illegally taken possession of the entity. In
case of fault of the owner in the wrongful seizure of his (her) possession of the source of
increased danger, liability may be imposed either on the owner and to persons have seized the
dangerous entity.
Article 932. Responsibility For The Cooperative Caused Harm
Persons, together causing harm to the victim meet jointly.

According to the statement of the victim and his or her interest, the court may impose on
persons, who jointly caused harm, several liability.
Article 933. Right Of Recourse To The Person Who Caused The Harm
1. The person, who compensates for the damage caused by another person (the employee
in the performance of labor (employment, official) duties, such as a person driving a vehicle
as part of his employment, etc.), is entitled to counter demand (regress) to the person in the
amount of the consideration payment, unless another amount is established by legislative acts.
2. Harm-doer, who has compensated the damage together, is entitled to demand a share of
compensation from each of the causer, paid to the victim in an amount corresponding to the
degree of fault of the causer. If it is impossible to determine the degree of fault, the shares
shall be deemed as equal.
3. The state, which has compensated the damage caused by officials of the investigating
agencies, prosecutors and courts (paragraph 1 of Article 923 of this Code), has the right of
recourse from these persons in cases, where guilt of such persons set by a court verdict, which
become effective in law.
4. The person, who compensates for harm on the grounds specified in Articles 925 - 928
of this Code shall not have recourse (recourse) to the person who caused the harm.
Article 934. Way Of Compensation Of Property Damage
Satisfying the requirements for damages, the court in accordance with the circumstances
of the case, requires the person responsible for the damage, to fully compensate the loss or to
compensate it in kind (to provide the same kind of thing, to fix the damaged item, etc.).
Article 935. Accounting Fault Of The Victim Or Property Status Of The Person, Who Caused
Harm
1. Damage that is caused from the intent of the victim shall not be reimbursed.
2. If the gross negligence of the victim contributed to the occurrence or increased the
extent of damage, and depending on the degree of fault of the victim and the harm-doer, the
amount of compensation should be reduced.
3. In the case of gross negligence of the victim and absence of fault of the injurer, in cases
, when his (her) liability shall be incurred regardless of fault, the amount of compensation
should be reduced or compensation of damages may be refused, if the legislation provides
otherwise. When there is damage to life and health of a citizen, complete refusal for
compensation shall not be allowed.
4. The fault of the victim shall not be included in the reimbursement of additional costs (
Article 937 of this Code), compensation for damages to persons, who have suffered damage
as a result of the citizen's death (Article 940 of this Code), as well as compensation for
funeral expenses (Article 946 of this Code).
5. The court may reduce the amount of compensation for damage, caused by the citizen,
accounting his (her) property status, except in cases, where harm is caused by the acts,
committed intentionally.
Paragraph 2. Compensation for damage to life and health of the citizen
Article 936. Compensation for damage to life and health of the citizen in the exercise of
Contractual and other obligations
Damage to life and health of citizens in the exercise of contractual obligations, labor (
official) duties, responsibilities of military service, shall be compensated according to the
rules of this chapter if the legislative acts or the contract provides increased responsibility.
Article 937. The Amount And Nature Of Compensation For Harm Caused By The Injury To
Health
1. When causing of injury to a person or his (her) health, the loss of earnings (income),
which he (she) had or could definitely have, and expenses caused by the injury (for treatment,
additional food, purchase of drugs, prosthetics, nursing care, spa treatment, purchase of
special vehicles, training for another profession, etc.) shall be reimbursed, if it considers that
the victim needs theses of assistance and care and not getting them for free.
In determining the lost earnings (income), the disability benefits, assigned to the victim
due to injury or other impairment of health, and others of benefits that are assigned, both
before and after the damage to the health and pension payments shall not be counted as
compensation. On account of reparation is not counted income, received by the victim after
the injury to health.
3. Legislative acts or the contracts may increase the size and the amount of compensation
payable to the victim in accordance with this Article.
Article 938. Definition Of Earnings (Income), Lost As A Result Of Injury To Health
1. The amount of compensation of lost earnings (income) is defined as a percentage of

average monthly earnings (income) prior to injury or other harm to health or the onset of
disablement, appropriate to the degree of loss to victims of occupational ability, and in the
absence of it - total disability.
2. The composition of lost earnings (income) includes alls of remuneration under labor
and civil contracts as in major workplace and secondary job, which are taxable by personal
income tax. Lump sum payments shall not be taken into account (compensation for unused
leave, dismissal compensation, etc.). Benefits, paid during the period of temporary disability
and maternity leave shall be recognized. Income from business activity, as well as the author’
s royalties shall be included in lost wages, and income from business activity are included on
the basis of the tax authority.
Alls of earnings (income) are recognized in the amounts, assessed before tax deduction.
3. Average monthly earnings (income) is calculated by dividing the total earnings (income
) for the twelve months of operation, prior to the injury to health or the onset of disability, to
twelve. In the case, when the victim at the time of injury, worked less than twelve months, the
average wage (income) is calculated by dividing the total amount of earnings (income) for the
number of actually worked months, before damage to health, by the number of these months.
Victim’s not fully worked months at his (her) request shall be changed by the previous
fully worked months or excluded from the calculation, if it is impossible to replace them.
4.In the case, where the victim at the time of the injury was not working, by his (her)
desire, accounting the earning, prior to dismissal or regular remuneration of the employee's of
his (her) skills in this area, but not less than ten times established by the legislative acts of the
monthly calculation index, shall be paid the remuneration.
5. If the earnings (income) of the victim is changed for improving his (her) property status
, (increased wages for the position, transferred to a better paying job, went to work after
graduation, and in other cases, where shall be proved the stability of change or the possibility
to change pay to the victim) prior to injury or other damage to health, in the determination of
his (her) average monthly earnings (income) shall include only the earnings (income), which
he (she) has received or should have received after the appropriate changes.
6. Increasing by the employer, who is liable for the damage, the average wage of an
employee of the same profession and qualification, shall be recalculated the amounts of
compensation for lost earnings (income), determined by percentage to the increased average
monthly earnings (income), corresponding to the degree of loss of victims of occupational
capacity and in the absence of it - total disability.
Article 939. Compensation Of Damage During Injury To Health Of A Person, Under The Age Of
Majority
1. In the case of injury or other damage to the health of a minor, who is less than fourteen
years of age (minor) and has no earnings, the persons, who are responsible for the damage is
required to reimburse the costs associated with the injury.
2. Upon the victim reaching fourteen years of age, and in the case of injury to the minor at
the age of fourteen to eighteen years of age, who does not have earnings (income), the
persons, responsible for the damage, shall compensate the victim, in addition to expenses
caused by damage to the health, the harm related with loss or reduction of his (her) ability to
work, on the basis of a ten-fold established by legislative acts monthly calculation index.
If at the time of injury to health, a minor has earnings, the damage shall be compensated
based on the amount of the earnings, but not less than ten times established by the legislative
acts of the monthly calculation index.
After starting to work, the victim is entitled to demand increasing the compensation of
damage, based on the income he (she) receives, but no lower than the fees, set by his (her)
position or earnings of the employee the same qualification at his (her) place of work.
Article 940. Compensation For Harm To Persons, Who Suffered Damage From The Death Of A
Citizen
1. In the case of death of a citizen, the right to compensation shall have disabled persons,
who were dependent on the deceased or had the day of his (her) death, the right to receive
maintenance from him (her) and the child of the deceased, born after his death, as well as a
parent, spouse or other family member, regardless of disability, who does not work and is
busy taking care of the dependents of the deceased's children, grandchildren, brothers and
sisters, who have not attained the age of fourteen (juvenile) or through have reached that age,
but, in the opinion of medical authorities need for health in a nursing care.
2. The right to compensation has also the persons, who were dependent on the deceased
citizen and become disabled for five years after his (her) death.
One parent, spouse or other family member, who is idle and busy by care of persons,
specified in paragraph 1 of this Article children, grandchildren, brothers and sisters of the
deceased, and became unable to work during the period of care, reserve the right to
compensation after the care of these individuals.
3. Damage is compensated to: minor - until the age of eighteen; students aged eighteen
years and over - until the end of study at institutions on full-time education, prior to
twenty-three years, women over fifty-eight years and men over sixty-three years - for life;
disabled persons - for a period of disability, one parent, spouse or other family member, who
is busy by taking care of the dependents, the deceased's children, grandchildren, brothers and
sisters - until they reach the age of fourteen or changing their health status.
Article 941. The Amount Of Compensation For Harm Caused By The Death Of A Citizen
1. Persons, who are entitled to compensation for the death of a citizen, the damage shall
be compensated in the amount of the share of earnings (income) of the deceased, calculated
according to the rules of Article 938 of this Code, which they received or were entitled to
receive on their contents during his (her) lifetime. In determining compensation for the harm
to these individuals, to the income of the deceased, along with earnings included pension,
permanent alimony and other similar payments, received by him (her) in the lifetime.
2.In determining the amount of compensation for injury benefits, appointed to persons on
loss of breadwinner, others of benefits that are assigned, both before and after the death of the
breadwinner, and income, scholarships, pensions shall not be counted.
3. The amount of compensation, designated for every person, who is entitled to
compensation for damage on loss of breadwinner, shall not be recalculated, except birth after
the death of breadwinner; destination (termination) of the payment of compensation to
persons, who engaged in the care of children, grandchildren, brothers and sisters of the
deceased breadwinner.
Legislative acts or the contract may increase the size and amount of compensation.
Article 942. Changing The Amount Of Compensation For Damage
1. The victim, who is partially-disabled, is entitled at any time to require the person, who
is obligated to compensation, the corresponding increase amount of compensation, if his (her)
ability to work has decreased due to the caused injury to health, in comparison with the
condition, that was at the time of award of the compensation .
2. Persons, who are obligated to compensation for harm, caused to injury the health of the
victim, is entitled to require a corresponding reduction the amount of compensation, if the
victim’s ability to work has increased in comparison with the condition that was at the time of
the award of compensation for the damage.
3. The victim has the right to demand an increase the amount of compensation for harm, if
the financial situation of the citizen, who is responsible for compensation of damage
improved, and the amount of compensation was reduced in accordance with paragraph 5 of
4. The court may, at the request of the citizen, who does harm, reduce the amount of
compensation for harm, if his (her) property status due to disability or reaching retirement age
deteriorated in comparison with the condition that was at the time of the award of
compensation for the harm (paragraph 5 of Article 935 of this Code).
Article 943. Increase In Compensation Of Damage In Connection With An Increase In The Cost
Of Living
The amounts of compensation, paid to citizens in connection with the injury to the health
or death of the victim, shall be indexed in the order established by legislative acts in the case
of increasing the cost of living.
With increasing by the legal procedure a minimum wage of compensation for lost
earnings (income), other fees, which are awarded in connection with the injury to health and
death of the victim, shall be increased in proportion to increasing the minimum wage (Article
283 of this Code).
The amount of compensation for lost earnings (income), other fees, which awarded in
connection with the injury to health or death of the victim, and payable under the contract of
compulsory insurance, shall be increased in proportion to the consumer price index for the
previous year.
Article 944. Payments To Compensate For Damage
1. Compensation for the harm, associated with reduced disability or death of the victim,
shall be paid by monthly installments.
If there are valid reasons, the court taking into account opportunities of the harm-doer
may, at the request of a citizen, who is entitled to compensation, award due to him (her)
payments one time, but no more than three years.
2. Charging additional costs may be made for the future within the time limits, established
by the conclusion of the medical examination, and if necessary pre-payment for the services
and property (purchase tickets, travel expenses, payment of special vehicles, etc.).
3. In cases, where the victim in accordance with the laws may require the termination or
early fulfillment of the obligation, the requirement shall be satisfied by way of capitalization
of corresponding time payments.
Article 945. Compensation In Case Of Dissolution Of Legal Entity
1. In the case of reorganization of a legal entity, which is recognized by the established

procedure as responsible for the damage, caused to life and health, the responsibility for the
payment of the fees shall bear his (her) successor. Special requirements for compensation of
damages are imposed to it.
2. In the case of liquidation of a legal entity, which is recognized by the established
procedure as responsible for the damage, caused to life and health, the corresponding
payments shall be capitalized for the payment to the victim under the rules, established by
legislative acts or other regulations.
3. In cases, where the capitalization of payments cannot be made due to the lack or
insufficiency of the property of the liquidation of the legal entity, the awarded sums shall be
paid by the State to the victim in the order established by the legislation.
4. After the period of capitalization of payments for compensation of damage, caused to
life and health of the employees by the legal entities, which are liquidated due to bankruptcy,
a citizen of the Republic of Kazakhstan shall be provided by monthly payments in accordance
with the procedure established by the Government of the Republic of Kazakhstan.
Article 946. Reimbursement Of Expenses For Funeral
The persons who are responsible for the harm, associated with the death of the victim,
shall be obliged to reimburse the expenses for the burial to the person, who has borne these
costs.
Funeral benefit, received by citizens, who have incurred these expenses, shall not be
counted in respect of compensation for damage.
Paragraph 3. Compensation for Damage Caused as a result of Deficiencies in Goods, Works and
Services
Article 947. Grounds For Compensation For Damage Caused By Deficiencies Of Goods, Works
And Services
Damage to life, health or property of the person or property of a legal entity as a result of
design, prescription, or other defects of the goods (works, services), as well as due to
inaccurate or incomplete information on the goods (works, services) shall be reimbursed by
the seller or the manufacturer (executor) regardless of their guilt, and on whether the victim
was with them in a contractual relationship, or was not. This rule shall apply only in cases of
purchase of goods (works, services) for consumer applications.
Article 948. Persons, Who Are Responsible For The Damage Caused By Defects Of Goods, Works
And Services
1. The harm, caused by defects of the goods shall be compensated at the option of the
victim by the seller or manufacturer of the goods.
2. The harm, caused by defects of the work or services shall be compensated by their
executors.
3. The harm, caused as a result of failure to provide the complete or reliable information
about the properties and rules of using a product (work, service) shall be compensated in
accordance with the rules of paragraphs 1 and 2 of this Article.
Article 949. The Periods Of Compensation For Damages, Caused As A Result Of Defects Of The
Goods, Works And Services
1. Harm, caused by defects of the goods (works, services), shall be refundable, if it is

caused within the stated term of validity (service life) of goods (works, services), and if the
expiry date (the service) is not set - for ten years from the date of manufacture of the goods (
works, services).
2. Beyond the date, specified in paragraph 1 of this Article, the damage shall be
refundable:
1) if the violation of the laws, the expiration date (the service) is not installed;
2) if the buyer (customer) is not warned about the necessary actions after the expiry date (
the service) and the possible consequences for non-compliance with such actions.
Article 950. Grounds For Exemption From Liability For Damage, Caused By Defects Of The
Goods, Works And Services
The seller or manufacturer of the goods, executor of works or services shall be released
from liability only in cases, if they can prove that the damage was caused due to force
majeure or violation by the consumer the rules for using (results of work, services) or storage
of goods.
Paragraph 4. Compensation of moral damage
Article 951. Compensation Of Moral Damage

1. Moral damage refers to the violation, impairment or deprivation of personal
non-property welfare and rights of individuals, including mental or physical suffering (
humiliation, anger, melancholy, displeasure, shame, despair, physical pain, lameness,
discomfort, etc.) experienced (suffered, experienced) by the victims on the offense,
committed against him (her).
2. Moral damage shall be refundable by the instigator when the instigator was clearly
guilty, except in cases, provided by paragraph 3 of this Article.
3. Moral damage shall be refundable, regardless of the fault of the causer, in the following
cases:
1) damage, caused to the life and health of citizens by a source of danger;
2) damage, caused to a citizen as a result of his (her) unlawful conviction, unlawful
criminal prosecution, unlawful use as a measure a preventive detention, house arrest or
recognizance not to live, unlawful imposition of an administrative penalty in the form of
arrest, illegal placement in a psychiatric hospital or other facility;
3) the harm, caused by the spread of information discrediting the honor, dignity and
business reputation;
4) other cases stipulated by legislative acts.
4. Moral damage, caused by the actions (inaction) that violate the property rights of
citizens are non-refundable, except in cases provided by legislative acts.
Article 952. The Amount Of Compensation For Moral Damage
1. Moral damage shall be compensated in cash.

2. In determining the amount of moral damage, taking into account a subjective
evaluation of gravity of moral damages caused to victims, and objective data, which are the
evidence of the degree of moral and physical suffering of the victim: the vital importance of
the benefits, which is the former object of abuse (life, health, honor, dignity, freedom,
inviolability of home etc.), severity of the offense (the murder of close relatives, bodily injury
that resulted in disability, imprisonment, loss of job or home, etc.), the nature and scope of
dissemination of false information, defamatory, the living conditions of the victim (service,
family, household, financial, health, age, etc.), and other relevant circumstances.
3. Moral damages shall be compensated, regardless of the reimbursable damage of the
property.
Chapter 48. Obligations of Unjust Enrichment
Article 953. Obligation To Return Unjust Enrichment

1. Person (buyer), who without the legislation or transaction basis purchased or saved
property (unjustly enriched) for the account of another person (the victim), shall return to the
latter unjustly acquired or saved property, except the cases provided by Article 960 of this
Code.
2. Duty, established by paragraph 1 of this Article, shall also be, if the basis on which the
property is purchased or saved, then returned.
3. The provisions of this Chapter shall apply, regardless of whether unjust enrichment was
the result of the behavior of the purchaser of the property, the victim or a third party or result
of an event.
Article 954. Correlation Of Requirements For The Return Of Unjust Enrichment With Other
Requirements On The Protection Of Civil Rights
Unless otherwise provided by this Code and other legislative acts, and followed from the
nature of appropriate relations, the rules of this Chapter shall also apply to the requirements:
1) on the return of the executed, under an invalid transaction;
2) on the recovery of the property by the owner from the illegal possession of another
person;
3) one party to another party in the obligation of return of the executed in connection with
this obligation;
4) for compensation of damages, including the harm, caused by the inequitable conduct of
the enriched person.
Article 955. Return Of Unjust Enrichment In Kind
1. Property, comprising the unjust enrichment of the purchaser, must be returned to the
victim in kind.
2. The purchaser is responsible for all to the injured, including a random shortage or
deterioration of unjustly acquired or saved property, which occurred after he (she) knew or
should have known of unjust enrichment. Up to this point, he (she) is responsible only for
intent and gross negligence.
Article 956. Compensation Of Value For Unjust Enrichment
1. In the case, if it is impossible to return in kind unjustly received or saved property, the
purchaser must compensate the victim for the real value of the property at the time of
purchase it, as well as to compensate for losses, caused by the subsequent change the value of
the property, if the purchaser has not reimbursed the cost immediately after he (she) has
known of the unjust enrichment.
2. A person, who temporary uses of another's property (without intention to buy it) or
foreign services, must compensate the victim the property, which he (she) has saved as a
result of such use, at the price, prevailing at the time, when he (she) finished using, and in the
place where it happened.
Article 957. The Consequences Of Unjustified Release Of The Transferred Right To Another
Person
The person, who transferred through the assignment of a claim or otherwise his (her) right
to another person on the basis of non-existent or invalid obligations, shall be entitled to
require re-establishment and the return of the documents, which are certified the transferred
right.
Article 958. Compensation Of Lost Income To The Injured
1. A person, who is unjustly received or saved property, shall return or compensate the
victim all the revenue, which he (she) has received or should have received from this property
from the time when he (she) knew or should have known of the unjust enrichment.
2. In the amount of unjust monetary enrichment is charged forfeit for using of borrowed
money from the time, when the purchaser knew or should have known about unjust receipt or
saving money.
Article 959. Reimbursement Of Expenses For Returnable Property
When returning unjustly received or saved property (Article 955 of this Code) or
reimbursement of its value (Article 956 of this Code), the purchaser is entitled to demand
compensation from the victim of the incurred necessary expenses for the maintenance and
preservation of property, from the time he (she) is obliged to return the proceeds (Article 958
of this Code), by deduction of the received benefits. The right to reimbursement shall be lost,
when the purchaser kept the returnable property deliberately.
Article 960. Unjust Enrichment
The property cannot be returned as unjust enrichment when:

1) the property, transferred in discharge of obligations before the time of execution, if the
obligation is not provided another;
2) the property, transferred in discharge of obligations at the end of the period of
limitation;
3) the amount of money and other property, provided to the citizen, in the absence of
unfairness on his (her) part, as means of existence (wages, royalties, compensation for
damages to life or health, pension, child support, etc.) and used by the acquirer;
4) the amount of money and other property, granted pursuant to non-existent liabilities, if
the purchaser can prove that the person, who is claiming the return of property was aware of
no obligation or provided property to charity.
Section 5 Intellectual property rights
Chapter 49. General provisions
Article 961. Objects Of Intellectual Property Law
1. The objects of intellectual property law are defined as:

1) the results of intellectual creative activity;
2) the means of individualization the participants of the civil turnover, goods, works or
services.
2. The results of intellectual creative activity are:
1) works of science, literature and art;
2) the performance, production, phonogram and transmission of broadcasting and cable
broadcasting;
3) inventions, utility models, industrial designs;
4) selection achievements;
5) integrated circuit topographies;
6) undisclosed information, including trade secrets (know-how);
7) other results of intellectual creative activity in the cases, provided by this Code or other
legislative acts.
3. Means of individualization of the participants of civil turnover, goods, works and
services are:
1) brand names;
2) trademark (service mark);
3) designation of origin (indication of origin);
4) other means of individualization other participants of civil turnover, goods and services
in the cases, provided by this Code and other legislative acts.
November 22, 2005 № 90 (the order of enforcement see Article 2 of the Law).
Article 962. The Grounds Of The Rights To Intellectual Property
Rights to intellectual property arises by virtue of their creation or as a result of legal

protection by the authorized state body in the cases and in the manner provided by this Code
and other legislative acts.
Article 963. Personal Non-Property And Property Rights To Intellectual Property
1. To the authors of intellectual creativity belong the personal non-property and property
rights which are related these results.
The personal non-property rights of the author, regardless of his (her) property rights,
shall retain, in case of transfer of his (her) property rights to the results of intellectual creative
activity to another person.
2. To the holders of the right to the means of individualization of participants of civil
turnover, goods or services (hereinafter - the means of identification) belong the property
rights, related with these resources.
3. Right of the author for the results of intellectual creative activity (copyright) is a private
non-property right and belongs only to the person, whose creative work created the result of
intellectual creativity.
The right of authorship is inalienable and non-transferable.
If the result is created by jointly work of two or more persons, they are considered as
co-authors. For certain objects of intellectual property, legislation may limit the persons, who
are considered as co-authors of work as a whole.
Article 964. Exclusive Rights To The Objects Of Intellectual Property
1. The property right of the owner to use an object of intellectual property in any way as
they see fit are recognized as exclusive rights to results of intellectual creative activity or
means of individualization.
Using the object of exclusive rights by other persons shall be with the consent of the
holder.
2. Owner of the exclusive rights to intellectual property is entitled to transfer this right to
another person in whole or in part, permit to use an object of intellectual property and dispose
of it in any other way, unless it is contrary to the rules of this Code and other legislative acts.
3. Limitations of exclusive rights, the recognition of these rights invalid and their
termination (cancellation) is permitted only within the procedure prescribed by this Code and
Article 965. Transition Of The Exclusive Rights To Another Person
1. Exclusive rights to intellectual property, unless another is provided by this Code or

other laws, can be transferred by their owners whole or partly under the contract to another
person, and pass into way of universal succession by inheritance, and as a result of
reorganization of legal entity-owner.
Transfer of exclusive rights shall not restrict the right of authorship and other
non-property rights. Terms of the contract on transfer or limitation of such rights are not valid
.
2. To the contract, which is providing the exclusive rights during its validity to another
person for a limited period shall be applied the rules of the license agreement (Article 966 of
this Code).
Article 966. License Agreement
1. Under a licensing agreement, the party who is owner of the exclusive rights to the
results of intellectual creative activity or means of individualization (licensor), grants the
other party (the licensee) the right to temporarily use the appropriate object of intellectual
property in a certain way.
The license agreement is refundable.
2. License agreement may include the provision of a licensee with:
1) the right to use the intellectual property with saving to the licensor the possibility to use
it and the right to grant license to third parties (a simple, non-exclusive license);
2) the right to use the intellectual property with saving to the licensor the possibility to use
it, but without the right to grant license to third parties (exclusive license);
3) other conditions for use of intellectual property, which do not contradict to the
legislative acts.
If the license agreement does not provide otherwise, the license is simple (non-exclusive).
3. Agreement, where the licensee grants the right to use the intellectual property to
another person is recognized as the sublicense agreement. The licensee is entitled to conclude
a sub-license agreement only in the cases stipulated by the license agreement.
The licensee shall be responsible to the licensor for the actions of sub-licensee, unless the
licensing agreement provides otherwise.
Article 967. An Agreement On The Creation And Use The Results Of Intellectual Creative
Activity
1. The author can accept contractual obligation to create the work, invention, or other
results of intellectual creative activity and provide to the customer, who is not his (her)
employer, the exclusive rights to use it.
2. The contract, provided in paragraph 1 of this Article, shall determine the nature of the
result, which shall be the creation of intellectual creative activity, as well as purposes or
methods of its use.
3. Terms of the contract, which are limiting the right of the author to create the results of
intellectual creative activity of a certain or in a particular area are not valid.
Article 968. Exclusive Right And Right Of Property
Exclusive rights to the results of intellectual creative activity or means of

individualization, exist independently of the ownership right to the material object, in which
such a result or means of individualization are expressed.
Article 969. Period Of Exclusive Rights

1. The exclusive right to intellectual property shall be valid for the period provided by this
Code or other laws.
Legislation may provide the extension of such period.
2. Personal non-property rights to the results of intellectual creative activity shall be valid
for indefinite period.
3. In cases stipulated by legislative acts, the action of the exclusive right may be
terminated due to non-use of it over time.
Article 970. Ways To Protect The Exclusive Rights
1. Protection of exclusive rights provided by Article 9 of this Code. Protection of

exclusive rights can be made also by:
1) removal of material objects, in which the exclusive rights are violated, and the material
objects, created as a result of such violation;
2) the mandatory publication of committed violation, including the information about the
owner of the infringed right;
3) other means provided by the legislative acts.
2. In breaching of contracts on the use of the results of intellectual creative activity and
means of individualization shall be applied the general rules on liability for breach of
obligations (Chapter 20 of this Code).
Chapter 50. Copyright law
Article 971. Copyrighted Works (Subject Matter Of Copyright)
1. Copyright applies to works of science, literature and art, which are the result of creative
activity, regardless of their purpose, content, and dignity, and the mode or form of their
expression.
2. Copyright applies to both published (published, released, published, publicly performed
, publicly displayed), and the unpublished works, which are existing in an objective form:
1) written (manuscript,written text, musical score, etc.);
2) oral (public pronouncing, public performance, etc.);
3) sound or video recording (mechanical, digital, magnetic, optical, etc.);
4) image (drawing, design, painting, plan, scheme, film, television, video, or photo frame,
etc.);
5) three-dimensional (sculpture, model, layout, construction, etc.);
6) other forms.
3. The part of the work (including its title, the names of the characters), which has the
characteristics specified in paragraph 1 of this Article, and can be used alone, is the subject
matter of copyright.
4. Copyright does not apply to their own ideas, concepts, principles, methods, systems,
processes, discoveries and facts.
November 22, 2005 № 90 (the order of enforcement see Art. 2 of the Law).
Article 972.s Of Copyright Objects
1. Objects of copyright are:

1) literary works;
2) dramatic, musical and dramatic works;
3) scenario;
4) works of choreography and pantomime;
5) musical works, with or without words;
6) audio-visual works;
7) works of painting, sculpture, graphics and other works of fine art;
8) works of applied art;
9) works of architecture, urban construction and landscape architecture;
10) photographic works and works, produced by processes analogous to photography;
11) maps, plans, design, illustrations and three-dimensional works relative to geography,
topography and other sciences;
12) computer programs;
13) other works.
2. Protection computer programs available for alls of software (including operating
systems), which can be expressed in any language, in any form, including source text and
object code.
3. The objects of copyright shall also include:
1) derivative works (translations, adaptations, annotations, reports, curriculum vitae,
reviews, dramatizations, musical arrangements and other transformations of works of science,
literature and art);
2) collections (encyclopedias, anthologies, databases) and other composite works,
representing by selection and (or) location of materials the result of creative work.
Derivative and composite works are protected by copyright, regardless of whether the
objects of copyright are the works on which they are based, or they include.
Article 973. The Legal Regulation Of Copyright Relations
Copyright relations are regulated by this Code and other legislative acts on copyright and
neighboring rights, and in the cases provided by them by other legislative acts.
Article 974. Works, That Are Not Objects Of Copyright
Works, that are not subjects of copyright:

1) official documents (laws, court decisions, other texts of legislative, administrative,
judicial or diplomatic nature), and their official translations;
2) state symbols and signs (flags, emblems, orders, banknotes, and other State symbols
and signs);
3) works of folk art;
4) reports on events and facts, that have informational character are not the objects of
copyright.
Article 975. Rights To Drafts Of Official Documents State Symbols And Signs
1. Copyright for drafts of official documents, state symbols and signs belongs to the
person, who created the project (the developer).
Project developers of official documents, symbols and signs are entitled to publish such
projects, if it is not prohibited by the body, on behalf of which carried out the development.
When publishing the project, developers may give their name.
2. The project can be used by the competent authority for the preparation of an official
document without the consent of the developer, if the project has been published by the
author or sent by him (her) to the appropriate authority.
In the preparation of official documents, state symbols or signs on the basis of a project, it
can be made additions and changes at the discretion of the authority, conducting the
preparation of an official document, the state symbol or sign.
3. After the adoption of the draft by the competent authority, it can be used without the
name of the developer, and without payment of royalties.
Article 976. Copyright Symbol
1. Owner of the exclusive copyright may for claiming his (her) rights use the copyright
sign, which is placed on each copy of the work, and consists of three elements:
1) the letter "C" in a circle;
2) the name of the holder of the exclusive rights;
3) the year of first publication of the work.
2. Unless proved otherwise, the holder of the exclusive copyright shall be the person, who
designated in the sign of protection.
Article 977. Personal Non-Property Rights Of The Author
1. The author of the work has the following non-property rights:

1) the right to be recognized as the author of the work and to require such recognition in
use, eliminating attribution of others to the same work (copyright);
2) the right to use the work under his (her) own name, under a pseudonym or
anonymously (right of author's name);
3) the right to make changes or additions to his (her) work and to protection of the work,
including its name, from making by anyone without the consent of the author the changes and
additions in the publication, public performance or other use of the work (the right to
inviolability of the work).
Providing the author’s work in the publication with the illustrations, forewords, afterword,
comments or any explanations, without the author’s consent is prohibited.
After his (her) death, protecting the inviolability of the work is carried out by the person,
who named in the will, and in the absence of such instructions by heirs of the author, and the
persons, who in accordance with the laws obligated to the protection of copyrights;
4) the right to access to the work to the general public (right of disclosure), except for
works, created in the performance of official duties or duty assignment of the employer.
2. The author has the right to reject an earlier decision to disclose the work (right of
withdrawal), in condition to compensate to the user damages, caused by such decision,
including lost profits. If the work has already been disclosed, the author is required to give
public notice about his (her) revocation. However, he (she) is entitled to withdraw from
circulation earlier produced copies of the work at his (her) own expense.
This paragraph shall not apply to service work.
3. Author’s agreement with any person or his (her) refusal to exercise the moral rights are
invalid.
Article 978. Property Rights Of The Author
1. The author shall have the exclusive right to use the work in any form or by any means.
2. When using the work, the author has the right to authorize or prohibit any third party to
perform the following steps:
1) to copy the work (copyright);
2) broadcast the original or copies of the work by any means: sell, modify, rent (lease),
perform other operations, including open information and communication network (right of
broadcast);
3) display the work in public (right of public display);
4) perform the work in public (right of public performance);
5) the public communication of the work for general public, including on air or on cable (
right of public communication);
6) to transfer the work to air (broadcast on radio and television), including broadcast via
cable or satellite (right of communication to the air);
7) translation of the work (the right of translation);
8) adaptation, arrangement or other process of the work (right of adaptation);
9) practically implement urban planning, architecture, design project;
10) exercise other actions, which are not contradict legislation.
3. Playback is repeated attachment to the work an objective form, which it had in the
original (publication of the work, copying audio or video recordings, etc.).
4. If copies of a lawfully published work have been put into civil circulation by means of
sale, their subsequent distribution without the author's consent and without payment of
remuneration, except for cases stipulated by legislative acts of the Republic of Kazakhstan is
valid.
5. The product is used, regardless of whether it is sold for the purpose of generating
income or its implementation was not designed for it.
6. The practical application of the provisions, that form the content of the work (
inventions, other technical, economic, organizational, etc. solutions), does not make use of the
work in terms of copyright.
22.11.2005 № 90 (the order of enforcement see Art. 2 of the Law), dated 12.01.2012 № 537-
IV (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 979. Deposition Of Works
1. The deposit of manuscripts of works, other works on a physical medium, including the
engine, is recognized as using the product, if such deposit made ??in the open for everyone's
access repository (depository) and allows to obtain by the contract with the depositary the
copy of a work by any person.
2. Deposit of the work is made on the basis of the contract between the holder and
depositary, which is set the conditions for its use. Such a contract and the contract with the
user of depositary are public (Article 387 of this Code).
Article 980. Action Of The Copyright In The Territory Of The Republic Of Kazakhstan
1. Copyright to the work, which is for the first time published in the Republic of
Kazakhstan or is not ??published, but the original of which is in its territory in an any
objective form, acts in the territory of the Republic of Kazakhstan. In this case, the copyright
is recognized to the author and (or) his (her) heirs, as well as other legal successors of the
author, regardless of their nationality.
2. Copyright is also recognized for the citizens of the Republic of Kazakhstan, as well as
their successors, even if the work of whom is published for the first time, or are in any
objective form on the territory of a foreign state.
3. In providing protection of the copyright, to the holder in accordance with international
contracts the fact of publication the work in the territory of a foreign state shall be determined
under the provisions of the corresponding international contract.
4. In order to protect the work in the territory of the Republic of Kazakhstan, the author of
the work is determined by the laws of the state, where the work was first protected.
Article 981. Copyright Start
Copyright to the work starts from the moment of giving the work an objective form,
accessible to the perception of third parties, regardless of its publication. Copyright to the
verbal work shall act from its notification to third parties.
If the work is not covered by Article 980 of this Code, the copyright in a work is protected
from the first publication of the work, if it is carried out in the Republic of Kazakhstan.
Article 982. Duration Of Copyright
1. Copyright is valid for the life of the author and seventy years after his (her) death, as
from the first of January of the year, following the year of death of the author.
2. Copyright in a work of joint authorship, is valid for the life of co-authors and seventy
years after the death of the last of the authors, who is surviving co-author.
3. Copyright to the work, which is first published under a pseudonym or anonymously, is
valid for seventy years from the first of January of the year following the year of publication
of the work.
If within that time an anonymous or pseudonym shall be disclosed, is operating the time
prescribed by paragraph 1 of this Article.
4. During the time, specified in paragraph 1 of this Article, the copyright belongs to the
author's heirs and inherited, and belongs successor, who is entitled under the contract with the
author, his (her) heirs and followed successors.
5. Copyright to the work, which is first published over thirty years after the author’s death
, shall be valid for seventy years after its release to the public, as from the first of January of
the year, following the year of publication of the work.
6. Authorship, the author's name and integrity of the work shall be protected termless.
Article 983. Transition Of The Work To The Public Domain
1. After expiration of the copyright to the work, it becomes public domain.

2. Works in the public domain may be freely used by any person, without payment of
royalties. The right of authorship, the right of author's name and the right to integrity of the
work should be respected.
Article 984. Management Of Copyright
1. The right holder may exercise his (her) rights individually, at his (her) own discretion.
Other persons may manage copyright only with the consent of the right holder and the
granted to him (her) powers, except the rights provided by Article 977 of this Code, when an
authorized agent is the legal representative.
2. In order, established by the legislative acts, the owners of copyright and related rights
can create organizations, that are entrusted with the operation of copyright and related rights.
Chapter 51. Neighboring (Related) Rights
Article 985. OBJECTS of RELATED RIGHTS
Neighboring rights apply to productions, performances, phonograms, programs of

broadcasting and cable distribution, regardless of the purpose, contents and value, as well as
the mode or form of its expression.
Article 986. Subjects Of Neighboring Rights
1. The subjects of neighboring rights are performers, phonogram producers and air and
cable broadcasters.
2. Phonogram producers, air and cable broadcasters, exercise the rights, provided by this
Chapter, within the rights under the contract with the artist and author of the recorded on the
phonogram, or broadcast or by cable.
3. Performer shall exercise the rights, provided by this Chapter, in respect of rights of the
authors of executable work.
4. The formation and execution of neighboring rights do not need to register works or to
comply with any other formal requirements.
5. Producer of Phonograms and (or) the performer for announcement their rights are
entitled to use a sign of protection of neighboring rights, that are placed on each copy of a
fixed performance, phonogram, and (or) on each box containing it, and consists of three
elements:
1) the letter "P" in a circle;
2) the name of the holder of the exclusive rights;
3) the year of first publication of record of performances and phonograms.
6. Unless proves otherwise, the phonogram producer shall be an individual or legal entity,
and its name is indicated on the soundtrack, and (or) the case containing it.
Article 987. Action Of Neighboring Rights
1. Right of the performer to the performance, which is the first time took place in the
territory of the Republic of Kazakhstan, shall act in the territory of the Republic of
Kazakhstan. In this case, the right is recognized for the performer and his (her) heirs, as well
as other legal successors of the performer, regardless of nationality.
Right of the performer is also recognized for him (her) and his (her) successors in cases,
where the performance was first performed in a foreign country.
2. Rights of producers of phonograms act in the territory of the Republic of Kazakhstan, if
this record for was performed in public or copies distributed in public for the first time in the
Rights of producers of phonograms are also recognized for the citizens of the Republic of
Kazakhstan or legal entities, which have their place of residence or place of stay in the
territory of the Republic of Kazakhstan.
3. The rights of air or cable broadcaster are recognized for them in case, when the
organization is officially located in the territory of the Republic of Kazakhstan and broadcasts
from transmitters located in the territory the Republic of Kazakhstan.
4. Rights of other foreign performers, phonogram producers, air and cable broadcasters
are protected in the Republic of Kazakhstan in accordance with the international treaties,
ratified by the Republic of Kazakhstan.
Article 988. Regulation Of Rights Of Subjects Of Neighboring Rights
The scope and content of exclusive rights and other rights of the performer, phonogram
producer, air and cable broadcasters, as well as cases and to the extent of the exclusive rights
restrictions, specified subjects and liability for violations are governed by legislative acts.
Article 989. Term Of Neighboring Rights
1. Neighboring rights in respect of the performer shall act for seventy years after the first
execution or performance. Performer's rights to the name and for protection of execution or
performance from distortion shall be protected indefinitely.
2. Neighboring rights in respect of the phonogram producer shall act for seventy years
after the first publication of the phonogram or over seventy years after its first recording, if
the phonogram has not been published during this period.
3. Neighboring rights to the broadcasting organization shall act within seventy years after
the first broadcast.
4. Neighboring rights to the cable casting organization shall act within seventy years after
the first cable transmission.
5. Calculation of periods of time, provided by paragraphs 1-4 of this Article, begins from
the first January of the year, following the year when was the legal fact, which is base for
beginning of the period.
Footnote. Article 989 as amended by the Law of the Republic dated November 22, 2005
№ 90 (the order of enforcement see Art. 2 of the Law).
Article 990. Rights Of Performers, Phonogram Producers, Air And Cable Broadcasters, Who Are
Foreign Nationals Or Foreign Legal Entities
The rights of performers, phonogram producers, air and cable broadcasters, who are
foreign nationals or foreign entities, if they carry first production, performance, recording or
broadcast outside of the Republic of Kazakhstan, shall act in its territory in accordance with
international treaties, ratified by the Republic of Kazakhstan.
Chapter 52. The Right to an Invention, Utility Model, Industrial Design
Article 991. Terms Of Legal Protection Of An Invention, Utility Model, Industrial Design
1. Rights to an invention are protected by an innovation patent or patent, and to an utility

model and industrial design by patent.
2. An invention is given legal protection and recognized a technical solution, when it has
an inventive step and industrial applications.
3. A utility model is granted legal protection and recognized as improving the means of
production and consumer goods when it is new and industrially applicable.
4. As an industrial design, which is granted legal protection, is recognized art and design
solution of the product that defines its appearance and is new and original.
5. Requirements for invention, utility model, industrial design, and in accordance with
them the right to receive a patent and patent innovation, and the procedure of issuing it by
authorized state body (hereinafter - the patent body (organization) is established by legislative
act.
6. The list of non-patentable technical solutions, constructive performance of production
means and consumer goods, art and design solutions of products is determined by legislative
acts.
Article 992. The Right To Use The Invention, Models And Industrial Design
1. The patent holder has the exclusive right to use at his (her) discretion a r patent
invention, utility model, industrial design, including the right to produce a product with the
use of secure solutions, apply protected by innovation patent or patent technological
processes in own manufacture, sell or offer for sale the products, containing secure solutions,
and import the appropriate product.
2. Other persons are not entitled to use the invention, utility model, industrial design
without the permission of the patent owner, except in cases, where such use in accordance
with this Code or other legislation does not violate the rights of the patent holder.
3. Unauthorized manufacture, use, import, offer for sale, sale, other introduction into civil
circulation or storage for this purpose the product, which is manufactured with the use of a
patented invention, utility model or industrial design, and the use of a process, protected by
the innovation patent or patent an invention, or the introduction into civil circulation or
storage for this purpose the product, which is manufactured directly by a process, protected
by an innovation patent or patent to invention are recognized as a violation of the exclusive
rights of the patent holder.
The product is recognized as manufactured by a patented process, unless it is proved
otherwise.
2, 2007 № 237 (shall be enforced from the day of its official publication).
Article 993. Disposal Of Right To Patent And Innovate Patent
The right to obtain a patent and innovation patent, rights arising from the registration of
the application, the right to ownership of patents and innovation patents, and rights arising
from the patent and innovation patent may be transferred in whole or in part to another person
.
2, 2007 № 237 (shall be enforced from the day of its official publication.)
Article 994. The Right Of Authorship

1. Author of an invention, utility model or industrial design shall have the right of
authorship and the right to assign the invention, utility model, industrial design a special name
.
2. The right of authorship and other personal rights to inventions, utility models, industrial
designs arise from the moment of rights, based on the title of protection.
3. To the author of the invention, utility model and industrial design, legislative acts may
allocate special rights, privileges and benefits of a social nature.
4. The person, who is named in the application as the author, is considered the author,
until it is proved otherwise. Only the facts and circumstances, existed before the law may be
involved as evidence.
Article 995. Co-Authors Of The Invention, Utility Model, Industrial Design
1. Relationships of co-authors of the invention, utility model and industrial design are
determined by agreement between them.
2. Uncreative promotion to the creation of an invention, utility model or industrial design
(technical, organizational or other assistance, assistance to registration of rights, etc.) does not
lead to co-authorship.
Article 996. Service Inventions, Utility Model, Industrial Design
The right to an innovation patent, invention patent, utility model, industrial design,
created by an employee in the performance of his (her) duties or specific tasks of the
employer (employee's invention), belongs to the employer, unless otherwise provided by the
contract between them.
Article 997. Author’s Right To Compensation For Service Invention, Utility Model, Industrial
Design
The amount, terms and manner of payment the compensation payable to the author for
service invention, utility model, industrial design are determined by agreement between him (
her) and the employer. If the parties do not agree, the decision shall be taken by the court. If it
is impossible to proportionate the author's and the employer’s contribution in creating
invention, utility model or industrial design, the author recognizes the right to half of the
benefit, which the employer received or should have received.
Article 998. Action Of Innovation Patent And Patent In The Territory Of The Republic Of
Kazakhstan
1. The innovative patent, invention patent, patent to utility model and industrial design are
valid in the territory of the Republic of Kazakhstan, which are issued by an authorized body.
2. Patents, which are issued in a foreign country or an international organization, are valid
in the territory of the Republic of Kazakhstan, in the cases stipulated by international treaties
3. Foreign citizens and foreign legal entities or their heirs are entitled to get innovation
patent, invention patent, and patent for utility model and industrial design in the Republic of
Kazakhstan, if the solution applied for meets the requirements of the legislative acts of the
Republic of Kazakhstan on inventions, utility models or industrial designs.
Article 999. Term Of Innovation Patent And Patent
1. Innovation patent and patent are valid from the date of filing an application to the
patent authority (organization) and remain in force, subject to compliance with the
requirements, established by the legislative acts:
1) innovative patent for an invention is in three years with a possible extension of the term
by the patent authority (organization) at the request of the patent owner no more than two
years;
2) a patent for invention is for twenty years;
3) utility model patent is for five years with a possible extension of the term by the patent
authority (organization) at the request of the patent owner no more than three years;
4) (Is excluded - dated March 2, 2007 № 237)
5) industrial design patent is for fifteen years with a possible extension of the term by the
patent authority (organization) at the request of the patent owner no more than five years.
2. Protection of an invention, utility model, industrial design is valid from the date of
filing an application to the patent body (organization). Protection of the rights can be made
after the issue of innovation patent or patent. In case of refusal to grant a patent or innovation
patent, the protection shall not appear.
3. Priority of invention, utility model, industrial design is defined in the order established
by the legislative acts.
Article 1000. Contract On The Transfer Of Patent Rights

Contracts on assignment of rights to innovation patents and patents, as well as the
assignment of the innovation patent and patent, must be concluded ??in writing and registered
in the patent body (the organization). Failure to comply with the written form or registration
requirements invalidated the contract.
March 2, 2007 № 237 (shall be enforced from the day of its official publication.)
Article 1001. The License Agreement For Use The Invention, Utility Model, Industrial Design
1. License agreement and sub-license agreement to use the invention, utility model and
industrial design are concluded in writing and must be registered in the patent body (the
organization). Failure to comply with the written form or registration requirement is
invalidated the contract.
2. The content of the license agreement must comply with the requirements, stipulated by
Article 1002. Open License
1. A patent owner may submit to the patent body (organization) an application for
granting to any person the right to obtain a license to use the invention, utility model or
industrial design (open license).
2. A person, wishing to use an open license, shall conclude an agreement with the patent
holder on payments. Disputes on the terms of the contract shall be resolved in court.
An application of the patent owner to grant the right to an open license is irrevocable.
Article 1003. Liability For Violation Of Innovation Patent And Patent
At the request of patent holder infringement for innovation patent and patent must be
stopped, and the infringer shall compensate the losses to the patent holder (Article 9 of this
Code). Instead of incurred damages, the patent holder may recover from the offender income,
which he (she) received as a result of improper use of the invention, utility model and
industrial design.
March 2, 2007 № 237 (shall be enforced from the day of its official publication).
Article 1004. Right Of Prior Use
1. Any person, who before the priority date of the invention, utility model, industrial
design faithfully used in the territory the Republic of Kazakhstan the identic decision, created
independently from the author or made ??the necessary preparations, is entitled to use it free
of charge without the extension of usage scale.
2. A person, who in good faith began to exploit the invention, utility model, industrial
design after the priority date, but before the official publication of the grant of a patent or
innovation patent for invention, utility model, industrial design, shall at the request of the
patent owner stop further use. However, such a person is not required to compensate the
patent owner incurred damages, as a result of such use.
March 2, 2007 № 237 (shall be enforced from the day of its official publication).
Article 1005. Restriction Of Rights Of The Patent Holder
The grounds for limiting the rights of the patent holder, the conditions for termination (
cancellation) the patent, its invalidation, termination, and compulsory licensing and
expropriation of patent are established by legislative acts.
Chapter 53. Rights for selection achievements
Article 1006. Conditions For The Protection Of Rights To New Varieties Of Plants And New
Breeds Of Animals
1. Rights to new plant varieties and new breeds of animals (breeding achievements) are
protected under the condition of patent issue. Patent certifies the exclusive right of the patent
owner to use the selection achievement, its priority, and the authorship of the breeder.
Plant cultivar, which is produced synthetically or by selecting and having one or more
economic features that distinguish it from existing plant varieties is recognized as a selection
achievement.
A breed is defined as the integrated numerous group of animals of common origin,
created by man and has a genealogical structure and properties that allow to distinguish it
from other kinds of animals of the same species. When these distinguishing features are
quantitatively sufficient to allow for multiplication of the same breed, this is recognized as
selection achievement in livestock.
2. Legal protection of selection achievements, policies and granting patents on plant
varieties and animal breeds are established by legislative acts.
3. To the relations of the selection rights and protection of these rights shall be applied the
rules of Articles 992-998, 1000-1004 of this Code, unless the rules of this Chapter, and
legislation for the protection of selection achievements provides another.
Article 1007. The Author’s Right To Name Of The Selection Achievement
1. The author of selection achievement is entitled to determine its name, which must meet
the requirements established by law.
2. When production, reproduction, offering for sale, selling, and others of marketing of
the protected breeding achievements, using of their registered names is obligatory.
Assignment for produced and (or) sold seeds, breeding material the names, which are
different from the registered, is not allowed.
3. Assignment the names of registered selection achievements, to produced and (or) sold
seeds, and breeding material, which are not related with them, violates the rights of the patent
owner and breeder.
Article 1008. Rights Of The Author Of The Selection Achievement To Reward
1. The author of the selection achievement, who is not the patent holder, is entitled to
receive royalties from the patent holder for the use of a selection achievement during the term
of the patent.
2. The amount and terms of payment of remuneration to the author of the selection
achievement is determined by the contract between him (her) and the patent owner. The
amount of compensation shall not be less than five percent of the total annual income,
received by patent holder for the use of the selection achievement, including the proceeds
from the sale of license.
Remuneration shall be paid to the author within six months after the expiration of each
year, in which a selection achievement used, unless the contract between author and the
patent owner provides another.
Article 1009. Rights Of The Patent Holder To The Selection Achievement
Patent holder of the selection achievement shall have the exclusive right to use this
achievement within the limits, established by the legislative acts on the Protection of
Selection Achievements.
Article 1010. Duties Of Patent Holder
The patent holder of a selection achievement shall:

1) enter into circulation variety or breed, accepted for use in manufacture;
2) maintain appropriate plant variety or appropriate breed of animals for the term of the
patent, preserving the signs, specified in the official description of the variety or breed,
established by expert body.
Article 1011. Term Of The Patent For A Selection Achievement
The effect of a patent for a selection achievement begins on the date of filing an
application the patent body (organization) and lasts for twenty five years.
Legislative acts on selection achievements can be set longer term of a patent for certains
of selection achievements, and the possibility of extending it by the patent body (organization
).
Article 1012. Permission To Use The Selection Achievements
1. Selection achievements, which provided legal protection (a patent), and its details are
included in the State Register of breeding achievements, permitted to use in the production
are allowed to use.
2. The inclusion of plant varieties and animal breeds in the State Register of breeding
achievements, permitted for use in the production, is carried out by the State body on
examination and testing of selection achievements by the results of the state tests for
serviceability.
Chapter 54. Rights to Integrated Circuit Topographies
Article 1013. Conditions For The Protection Of Rights Of The Integrated Circuit Topographies
1. Legal protection, provided by this Chapter and other legislative acts shall apply only to
the original integrated circuits.
As original topology of an integrated circuit, the result of creative activity of the author is
recognized and inscribed on a tangible medium the spatial geometric layout of all the
elements of the integrated circuit and the connections between them.
2. Legal protection provided by Articles of this chapter, shall not apply to ideas, methods,
systems, technology, or coded information, which may be embodied in the topology.
3. To the relations of the right to integrated circuits and protection of these rights,
respectively shall apply the rules of Articles 994-997 of this Code.
Article 1014. The Exclusive Right To Topology Of Integrated Circuit
1. The author or other holder of the topology of an integrated circuit has the exclusive
right to use this topology at his (her) own discretion, in particular, by manufacturing an
integrated circuit with the topology, including the right to prohibit the use of this topology to
others without permission.
2. Exercising the rights that belong to several authors of topology or other right holders is
determined by the contract between them.
3. Violation of the exclusive rights, is committing without permission the following:
1) the copy of the topology in whole or in part, by incorporating it to an integrated circuit
or otherwise, except for the part, which is not original;
2) the use, importation, offer for sale, sale or any other form of traffic of topology or an
integrated circuit with this topology.
4. Legislative acts set list of actions, which is not a violation of the exclusive rights of the
holder of topography rights.
Article 1015. Registration Of Topologies
1. The author of an integrated circuit or other right holder is entitled to register topology
by applying for registration to the Authorized State body.
2. The application for registration can be performed within a period, which is not
exceeding two years from the date of first use of the topography, if it took place.
3. Procedure for registration of topologies, and agreements on full or partial assignment of
rights to them, are established by legislative acts.
Article 1016. The Term Of The Exclusive Right To Use The Topology
1. The exclusive right to use the topology is valid for ten years from the date of
registration of the topology.
If registration of topology is not performed, specified ten years period counts from the
date of first documented use the topology or an integrated circuit with this topology in any
country of the world.
2. Appearance of identical original topology, created by another author shall not interrupt
or terminate the period of exclusive rights, specified in paragraph 1 of this Article.
Chapter 55. The Right to Protection of Undisclosed Information from Illegal Use
Article 1017. Legal Protection Of Undisclosed Information
1. A person, who lawfully possesses technical, organizational or commercial information,

including trade secrets (know-how), which is unknown to a third party (undisclosed
information), is entitled to the protection of this information from illegal use, if the conditions
established in paragraph 1 of Article 126 of this Code are kept.
2. The right to protection of undisclosed information from illegal use occurs
independently of execution any formality in respect of that information (its registration,
certificates, etc.).
3. Rules on the protection of undisclosed information shall not apply to information that,
in accordance with the laws may not be proprietary or trade secret (information about legal
entities, the rights to property and transactions with it, the information, submitted in the form
of statistical and other).
4. The right to protection of undisclosed information lasts until the conditions specified in
paragraph 1 of Article 126 of this Code are kept.
19.03.2010 № 258-IV.
Article 1018. Liability For Unlawful Use Of The Undisclosed Information
1. A person, who without legal justification receives or distributes undisclosed

information or uses it, shall compensate the person, who lawfully possesses this information,
for the damages caused by its illegal use.
2. If a person, who illegally uses undisclosed information, received from a person, who
has no right to distribute it, and the purchaser of information did not know or should have
known it (bona fide purchaser), the lawful owner of undisclosed information is entitled to
require him (her) the damages, caused by the use of undisclosed information, after an
innocent purchaser learned that his (her) use is illegal.
3. A person, who lawfully possesses undisclosed information, is entitled to require the
person, who is using it illegally, the immediate cessation of its use. However, the court, taking
into account the resources, used by an innocent purchaser of undisclosed information on its
use, may permit its further use under a reimbursable exclusive license.
4. A person, who independently and lawfully received information, which is comprising a
content of undisclosed information, is entitled to use this information, regardless of the holder
’s rights on relevant undisclosed information, and shall not be responsible to him (her) for
such use.
Article 1019. Transfer Of The Right To Protection Of Undisclosed Information From Illegal Use
1. A person, who possesses undisclosed information may transfer all or part of the
information, constituting the content of the information to another person under a license
agreement (Article 966 of this Code).
2. The licensee shall take appropriate measures to protect the confidentiality of the
information, received under the contract and shall have the same right to protect it from
illegal use of third parties, as the licensor. If the contract is not provided another, the
obligation to maintain the confidentiality of information bears to the licensee after the
termination of the license agreement, if the relevant information remains undisclosed.
Chapter 56. Means of Individualization for Participants of Civil Circulation, Goods and Services
Paragraph 1. Trade name
Article 1020. The Right To A Company Name
1. A legal entity shall have the exclusive right to use the trade name (Article 38 of this
Code) in the official forms, publications, advertising, signs, brochures, invoices, on websites,
on goods and their packaging, and in other cases, necessary for the individualization of a legal
entity.
2. The trade name of a legal entity shall be determined by the approval of its statutes.
Under a certain brand name the entity shall be included in the State Register of Legal Entities.
3. The use of the company name, similar to the company name, which is already
registered as a legal entity, can lead to the identification of the relevant entities, and
misleading about its proprietary products or services, so cannot be used.
4. If the name of a legal entity is identical or confusingly similar to a trademark (service
mark) any other legal entity or a individual, who is engaged in business activity, and as a
result of the identity or similarity can mislead consumers, the priority shall have a means of
individualization (trade name, trademark, service mark), which exclusive right arose
previously. The owner of such a means of identification, in accordance with the laws of the
Republic of Kazakhstan, is entitled to claim for annulment of legal protection of a trademark (
service mark) for similar goods or services, or ban on the use of a trade name.
Article 1021. Use The Company Name Of A Legal Entity In The Trademark
Company name of a legal entity may be used in its own trademark.
Article 1022. Force Of Law To The Company Name
1. In the territory of the Republic of Kazakhstan is the exclusive right to the trade name,
registered in the Republic of Kazakhstan as the designation of a legal entity.
To the trade name, registered or generally accepted in a foreign country, shall be the
exclusive right in the territory of the Republic of Kazakhstan in the cases stipulated by
legislative acts.
2. The eligibility of a company name is terminated with the liquidation of the legal entity
and change of its corporate name.
Article 1023. Alienation Of The Right To The Company Name
1. Alienation and transfer of the rights to the trade name of the legal entity are not allowed
, except for the reorganization of the legal entity and the exclusion of the whole enterprise.
2. The owner of the rights to a company name can be permitted (to license) to another
person to use his (her) name by means, stipulated in the contract. The license contract shall
include measures, which exclude the false suggestions of the consumers.
Paragraph 2. Trademark
Article 1024. Conditions For Legal Protection Of Trademark
1. The legal protection of a trademark is provided on the basis of its registration or

without registration under the international treaties, where participating the Republic of
Kazakhstan.
As a trademark (service mark) is recognized a registered or protected without registration
by an international treaty, verbal, visual, volumetric, or other designation, serving to
distinguish the goods or services of one person from the goods and services of others.
If a trademark (service mark) of a legal entity or an individual, who are engaged in
business activity, is identical or confusingly similar to a company name of another entity, and
as a result of the identity or similarity can mislead consumers, the provisions specified in
paragraph 4 of Article 1020 of this Code shall be applied.
2. The legend, which registration as a trademark is not permitted, and the procedure for
registration of trademarks, their termination and invalidation, as well as cases in which may
be allowed the legal protection of unregistered trademarks, are defined by legislative acts on
trademarks.
3. The trademarks right is certified by a certificate.
Article 1025. The Right To Use The Trademark
1. The holder of a trademark has the exclusive right to use and dispose his (her) sign.
2. The usage of a trademark is defined as its introduction into circulation, through means
such as: the production, use, import, store, offer for sale, sale of trademark or goods
designated by the mark, and the use in signs, advertising, printed materials or other business
documents.
3. Features of advertising trademarks and goods, marked by trademarks, are determined
by the laws of the Republic of Kazakhstan.
Footnote. Article 1025 as supplemented by the Law of the Republic of Kazakhstan dated
June 19, 2007 № 264 (the order of enforcement see Art. 2 of the Law).
Article 1026. Legal Protection Of Trademarks In The Republic Of Kazakhstan
In the territory of the Republic of Kazakhstan legal protection is given to a trademark,

registered by a patent authority (organization) of the Republic of Kazakhstan or international
organization by virtue of an international treaty, ratified by the Republic of Kazakhstan.
Article 1027. Validity Of Trademark Rights
1. Priority of a trademark shall be established by the date of receipt an application the

patent body (organization), if legislation on trademarks provides otherwise.
2. The right to a trademark is valid for ten years from the date of registration the
application.
At the request of the holder of trademark rights, filed to the patent body (organization) in
the last year of the validity of trademark, may be registered the extension of the trademark in
a decade. Renewals can be done any number of times.
Article 1028. Consequences Of Non-Use Of The Trademark
When non-using of a trademark without a good reason, continuously for three years, its
registration may be canceled at the request of any interested person.
Conclusion of a license contract to use the trademark is considered as using it.
Article 1029. Transfer Of Right To The Trademark
1. The right to the trademark, in respect of alles of goods and services, or their parts,
which are designated in the certificate, can be transferred to another person by the right holder
and under the contract.
2. The transfer of the trademark shall not be allowed, if it can be the cause of confusion
about the product or its manufacturer.
3. Transfer of right to the trademark, including its transfer by contract or by way of
succession, must be registered in the patent body (organization).
Article 1030. PERMISSION to USE the TRADEMARK
1. The right to use a trademark may be granted by the owner of the rights to another
person under the license agreement, with alles of goods and services or their parts, designated
in the certificate (Article 966 of this Code).
2. License agreement, that permits the licensee to use the trademark, shall contain a
condition, that the quality of goods or services of the licensee will not lower the quality of
goods or services of the licensor, and the licensor has the right to monitor the implementation
of this provision.
3. Upon termination of the trademark rights the action of the license agreement shall be
terminated.
4. Transfer of right to the trademark to another person shall not terminate the license
agreement.
Article 1031. Form And Registration Of Contracts On Transfer Of The Trademark And License
Agreements
An agreement on the transfer of rights to a trademark or license agreement must be

concluded in writing and registered in the patent body (organization).
Failure to comply with the written form and the registration requirements invalidates the
contract.
Article 1032. Responsibility For The Violation Of The Right To Trademark
A person, who unlawfully uses a trademark or designation similar to it to the confusion of

others, must cease violation and compensate the owner of the trademark for the incurred
losses (Article 9 of this Code).
A person, who unlawfully uses the trademark, shall destroy the manufactured image of
the trademark, remove the product or its packaging illegally using a trademark or designation
which deliberately causes confusion.
If it is impossible to meet the requirements established by part 2 of this Article, the
corresponding goods must be destroyed.
Paragraph 3. Name of Goods Origin
Article 1033. Conditions Of Legal Protection The Name Of The Goods Origin
1. Legal protection the name of the goods origin is provided on the basis of registration,
except the cases, provided by legislative acts.
The name of the goods origin (indication of origin) shall be the name of the country,
community, locality or other geographic area, using to designate a product, which special
properties are exclusively or mainly determined by this geographical natural conditions or
other factors or by combination of natural conditions and these factors.
Goods origin may be a historical name of a geographic object.
2. The name of the geographical area, but generally used in the Republic of Kazakhstan to
designate a particular of goods, which is not associated with place of manufacture, is not
recognized as a goods origin and cannot be registered for the legal protection in accordance
with the rules of this section. This, however, shall not deprive a person, whose rights are
violated by unfair use of such a name, the ability to protect them by other means provided by
legislative acts, including the regulations on unfair competition.
3. Registration of a goods origin shall be by the patent body (organization).
On the basis of the registration is given the certificate on the right to use a goods origin.
The procedure and conditions for registration and certification, invalidation and
cancellation of registration and certificates, are defined by legislation on trademarks, service
marks and appellations of origin.
Article 1034. The Right To Use The Goods Origin
1. A person, who has the right to use the goods origin, is entitled to place the name on the
product, packaging, advertising, brochures invoices and use it otherwise in connection with
the introduction of the product into civil circulation.
2. Goods origin can be registered by several persons jointly or separately, to designate a
product that meets the requirements specified in paragraph 1 of Article 1033 of this Code.
The right to use the goods origin belongs to each of these individuals.
3. A person, who in good faith uses a geographical indication, which is identical or similar
to a registered goods origin, at least six months prior to the date of first registration, shall
retain the right to its use, within the period established by the patent body (organization), but
no less than seven years from the date of such registration
4. Alienation, other transactions of the assignment the right to use the goods origin and
providing to use them by the license, is not allowed.
Article 1035. The Scope Of The Legal Protection Of The Goods Origin
1. Kazakhstan provides the legal protection for appellations of origin, which is in the
territory of the country.
2. Legal protection of the goods origin, which is in another state, shall be used in the
Republic of Kazakhstan, if the name is registered in the country of origin, and in the Republic
of Kazakhstan in accordance with this Code.
Article 1036. Validity Period Of The Certificate For The Right To Use The Goods Origin
The certificate for the right to use the goods origin is valid for ten years from the date of
the application to the patent authority (organization).
The period of validity may be extended at the request of its owner, filed during the last
year of the certificate, for ten years in the conditions, granting the right to use the name.
Renewals may be done non-limited times.
Article 1037. Liability For Illegal Use Of The Goods Origin
1. A person, who entitled to use the goods origin, as well as the organizations for
consumer protection may require the person, who illegally uses this name to stop using it,
remove from the product, its packaging, forms and other documents the unlawfully used
name or designation, similar to it to confusion, and destruction of images of the name or
designation, similar to it to confusion, and if it is impossible to seizure and destruct the goods
and (or) package.
2. Person, having the right to use the goods origin, may require an offender of the right
compensation of losses (Article 9 of this Code).
Section 6. Inheritance Rights

Chapter 57. General Provisions Concerning Inheritance
Article 1038. Inheritance

1. Inheritance is a transfer of property of a deceased citizen (testator) to another person (
persons) who is a heir (are the heirs).
2. Property of a deceased citizen shall be transferred to other persons on the terms of
universal legal succession. Legacy shall be transferred as one entity and at the same moment,
unless it otherwise ensues from this Section.
3. Inheritance shall be regulated by this Code, and in the cases expressly established by
this Code, it shall be regulated by other legislative acts.
Article 1039. Grounds For Inheritance
1. Inheritance shall be carried out on the grounds of the will and (or) law.
2. Inheritance by law shall take place where there is no will, or where the will defines the
destiny of a part of legacy, as well as in other cases established by this Code.
Article 1040. Composition Of A Legacy
1. The composition of a legacy shall comprise property belonging to the testator as well as
rights and obligations the existence of which is not terminated by his (her) death.
2. The rights and obligations that are inseparably associated with the personality of the
testator shall not be included into the composition of a legacy:
1) rights of membership in organizations that are legal entities, unless it is otherwise
established by legislative acts or an agreement;
2) the right to compensation of damage to life or health;
3) rights and obligations ensuing from alimony obligations;
4) rights to pensions, benefits and other payments on the basis of legislative acts
concerning labor and social support;
5) personal non-property rights, which are not associated with property, rights, except for
the cases established by the legislative acts.
3. Personal non-property rights and other non-material amenities, which belonged to the
testator, may be exercised and protected by heirs.
Article 1041. Inheritance Of Property Which Is Joint Common Property
1. The death of a participant in common joint property shall be the basis for determining
his (her) share in such property and division of common property or appropriation out of it of
the share of a deceased participant in accordance with the procedure established by Article
218 of this Code. In that case inheritance shall be opened with regard to the share of the
deceased participant in common property and if it is impossible to divide property in kind
with regard to the value of such a share.
2. A participant of common joint property shall have the right to bequeath his (her) share
in common property, which will be determined after his death, in accordance with paragraph
1 of this Article.
Article 1042. Opening The Inheritance
1. Inheritance shall be opened on the score of the death of a citizen or his (her)
announcement as deceased.
2. The day of death of a testator, and in the case of announcing him as deceased the date
when the court decision on announcing a citizen as deceased, unless there is a different date
in the court decision, shall be the day of inheritance opening.
3. If persons who had the right to inherit one after another died on one day, they shall be
recognized as deceased simultaneously, and inheritance shall be opened after each of them
and heirs of each of them shall be called for inheritance.
Article 1043. Place Of Inheritance Opening
The last place of residence of a testator shall be the place where inheritance opens, and if
it is unknown then the place where estate or its principal part is located.
Article 1044. Heirs
1. Citizens being alive at the moment when inheritance opens, as well as those conceived
when the estate-leaver is alive and those born alive after the inheritance opens, may be heirs
by law and will.
2. Legal entities formed prior to the opening of inheritance and which existed at the time
when inheritance opens, as well as the state may be heirs by will.
Article 1045. Dismissal Of Improper Heirs From Inheritance
1. Persons who deliberately deprived testator or potential heirs of life, or made an attempt
to take the testator’s life shall have no right to inherit neither by law nor by will. Persons, for
whom a testator left a will after an attempt to take his (her) life, shall be an exception.
2. Persons who deliberately impeded the exercise of the last will of a testator and who
assisted calling themselves or persons who are close to them to inherit or increase the share of
inheritance which belongs to them, also shall have no right to inherit neither by will, nor by
law.
3. Parents who were deprived of parental rights and whose rights were not re-established
by the moment of opening inheritance shall not have the right to inherit after their children,
nor parents (adopters) and full age children (step-children) who evaded execution of duties
entrusted to them by virtue of law with regard to taking care of a testator.
4. The circumstances that serve as a basis for dismissal from inheritance of improper heirs
shall be established by the court.
4-1. A person who does not have the right to inherit or who is eliminated from inheritance
under the present article (improper heir), shall be obliged to return all the property he
groundlessly received from among the inheritance.
When return of inheritance property is impossible, heir shall be obliged to compensate it
at its trade price.
5. The rules of this Article shall also apply to testamentary gifts (Article 1057 of this Code
).
If the subject of the testamentary refusal was implementation of the certain work for
legatee or rendering him (her) the certain service, the later shall be obliged to compensate to
the heir implemented the testamentary refusal, the cost of the implemented work.
6. The rules of this Article shall apply to all heirs, including those who have the right to an
obligatory share.
Footnote. Article 1045 as amended by Law of the Republic of Kazakhstan dated January
12, 2007 № 225 (shall be enforced from the date of its official publication).
Chapter 58. Inheritance by Will
1. A will of a citizen with regard to distribution of property he (she) has in the case of his
(her) death shall be recognized as a will.
1-1. The will shall be created by a citizen who had his (her) full dispositive capacity as of
the time when it was created.
2. A citizen may bequeath all his (her) property or part of it to one or several persons who
are or are not heirs by law, as well as to legal entities and the state.
3. A will must be executed personally. Execution of a will through a representative shall
not be allowed.
4. A testator shall have the right to deprive of inheritance one, several, or all heirs by law.
Deprivation of an heir by law of inheritance shall not apply to his descendants who inherit by
the right of presentation, unless it otherwise ensues from the will.
5. A testator shall have the right to execute a will containing instructions on any property.
A testator shall be entitled to set heirs' shares in the estate in any way, to dispose of his (
her) property or any of its part, by making one or several wills, concerning different
properties.
6. A testator shall be free to renounce and amend the drawn up will at any moment after
executing it, and he shall not be obliged to indicate reasons for the renunciation or
amendment.
7. A testator shall not have the right to entrust to the persons who are in his will appointed
by him as heirs, the duty to distribute the properties bequeathed by him in a certain manner in
the case of their death.
Article 1047. Conditional Will
1. A testator shall have the right to condition the receipt of inheritance to a certain
condition with regard to heir's behavior.
2. Illegal conditions included among instructions concerning appointment of heirs or
deprivation of the right to inherit shall be invalid.
3. Conditions which are included into a will and which are unfeasible for heirs because of
their status of health or by virtue of other objective reasons, may be recognized as invalid
pursuant to the action of an heir.
Article 1048. Sub-Appointment Of Heirs
1. A testator may provide for the case where an heir indicated in the will dies prior to
opening of inheritance, or does not accept it or refuses it, or is removed from inheritance as an
improper heir in accordance with the procedure of Article 1045 of this Code, and also provide
for the case of an heir's failure to comply with legitimate conditions of the testator by will,
appoint another heir (sub-appointment of an heir).
2. Any person, who in accordance with Article 1044 of this Code may be an heir, may be
a sub-appointed heir.
3. A repudiation of an heir by the will for benefit other than that of the sub-appointed heir
shall not be allowed.
Article 1049. Inheritance Of A Part Of Property Which Is Left Not Bequeathed
1. A part of property that is left not bequeathed shall be distributed among heirs by law
called to inheritance in accordance with the procedure of Articles 1061-1066 of this Code.
2. The circle of those heirs shall also comprise those heirs by law to whom the other part
of property was left by will.
Article 1050. General Rules Concerning The Form Of A Will

1. A will must be executed in writing and notarized with an indication of the place and
time of its execution.
2. The following shall be recognized as wills drawn up properly:
1) notarized wills;
2) wills equated to those notarized.
3. A will must be signed with a testator's own hand.
When a testator by virtue of physical drawbacks, disease or illiteracy cannot sign a will
with his own hand, it pursuant to his request may be signed in the presence of a notary or any
other person to attest the will, by other citizen with an indication of the reasons because of
which the testator might not sign his will with his own hand.
4. In the cases where in accordance with the rules of this Code witnesses must be present
during compilation, drawing up, signing or attesting a will, the following may not be such
witnesses, nor may they sign a will instead of a testator:
1) the notary or any other person who attests a will;
2) the person for whose benefit a will is drawn up or a testamentary gift was made, a
spouse of such a person, his children, parents, grandchildren, great-grandchildren or heirs of
testator by law;
3) citizens who have limited capability;
4) illiterate and other persons who cannot read a will;
5) persons who have been sentenced for perjury.
Article 1051. A Notarized Will
1. A notarized will must be written by a testator or written down by a notary from the
words of the testator in the presence of a witness. When a will is written down from the words
of a testator by a notary, usual technical devices may be used (awriter, personal computer etc.
).
2. A will written by a notary from the words of a testator must be fully read by the testator
in the presence of the notary and a witness before the will is signed.
When a testator due to physical problems, disease or illiteracy is not capable to read a will
personally, its text shall be voiced for him by a witness in the presence of a notary and a note
to that effect shall be made in the will with an indication of the reasons why the testator was
not able to read his will personally.
3. When a notarized will is drawn up in the presence of a witness, the surname, name and
place of the witness' permanent residence must be indicated in a will. The same details must
be included in a will with regard to a person who signed the will instead of a testator.
4. At a testator's discretion, a will shall be notarized without a notary's perusal of its
contents (a secret will).
A secret will, under the fear of its invalidity must be written with a testator's own hand
and it must be signed by the testator in the presence of two witnesses and a notary, sealed in
an envelope on which the witnesses shall affix their signatures. An envelope signed by
witnesses shall be sealed in the presence of the witnesses and notary into another envelope,
onto which the notary shall affix his notarization note.
5. Wills of persons residing in populated areas where there is no notary shall be attested
by official person authorized by legislative acts to perform notarial actions.
Article 1052. Wills Equal To Notarized Wills
1. The following shall be equal to notarized wills:

1) wills of citizens who are treated in hospitals, sanatoria and other medical and
prevention institutions as well as of those who reside in homes for the elderly and disabled,
attested by chief physicians, physicians on duty of those hospitals sanatoria and other medical
and prevention institutions, as well as by directors, chief physicians of homes for the elderly
and disabled;
2) wills of servicemen and other persons being given treatment in hospitals, sanatoria and
other military and medical institutions attested by ?hiefs, their deputies for medical matters,
head physicians and physicians on duty of those hospitals, sanatorium and other military and
medical institutions;
3) wills of citizens who are on sailing sea ships or other ships of internal navigation,
which are under the flag of the Republic of Kazakhstan, attested by captains of those ships.
4) wills of citizens who are on exploration and other expeditions, attested by the heads of
those expeditions;
5) wills of military servicemen, and in places of dislocation of military units, formations,
establishments, military and educational institutions where there are no notaries and official
persons authorized to perform notarial actions, as well as wills of civic personnel working for
those units, their family members and family members of military servicemen, as attested by
the commanders (heads) of those military units, formations, institutions and establishments;
6) wills of persons who are in places of deprivation of freedom, as attested by the heads of
places of deprivation of freedom.
2. Wills provided for in paragraph 1 of this Article must be signed by a testator in the
presence of a witness who shall also sign a will.
Official persons enumerated in paragraph 1 of this Article shall be obliged to hand over
one copy of an attested will to a notary for keeping in accordance with legislation concerning
notary's office.
In other respects, such wills shall be subject to the rules of Article 1051 of this Code,
except for the will notarization requirement.
Article 1053. Renunciation And Amendment Of A Will
1. A testator shall have the right to renounce or amend a will he made at any time.
2. A will may be renounced by way of:
1) submission of an application to a notary's office for renunciation of a will in full which
was made by him earlier;
2) drawing up a new will.
3. A will may be amended by way of:
1) submission of an application to a notary's office for amending a will in certain part
which was made by him earlier;
2) drawing up a new will that alters a will partially which was made earlier.
4. An earlier will which was renounced fully or partially by a subsequent will shall not be
restored if the latter is renounced or amended by a testator in its turn.
Article 1054. Secrecy Of A Will
A notary, any other person who attests a will, witnesses as well as a citizen who signs a
will instead of a testator, shall not have the right to disclose information concerning contents
of a will, its execution, renunciation or amendment prior to the opening of inheritance.
Article 1055. Interpretation Of A Will
When a will is interpreted by a notary, executor of a will or the court, the literal meaning
of words and expressions contained therein shall be taken into consideration. Where the
verbal meaning of some provision of a will is unclear, it shall be established by way of
comparing that provision with other provisions and the essence of the will as a whole.
Article 1056. Invalidity Of A Will
1. A will executed in an improper form shall be invalid. Invalidity of a will shall be

recognized also in accordance with the rules of Chapter 4 of this Code concerning invalidity
of transactions.
2. A will may be recognized as invalid pursuant to an action of a person for whom the
recognition of a will as invalid has material consequences, due to violation of the procedure
established by this Code for compilation, signing and attesting wills.
Clerical errors and other minor infractions of technological character, made during
drawing up, signing or identification the will, shall not be the basis for its invalidity, if the
court finds that they do not influence on understanding of expression of testator’s will.
3. Invalidity of certain instructions contained in a will shall not invalidate the rest of a
given will.
4. In the event of recognizing a will as invalid, an heir who in accordance with that will
was deprived of inheritance, shall acquire the right to inherit by law in accordance with the
procedure established by Article 1060 of this Code.
Article 1057. Testamentary Gift (A Legatum)
1. A testator shall have the right to entrust to a heir by will the execution at the expense of
inheritance of any obligation (testamentary gift) for the benefit of one or several persons (
recipients of gifts), who shall acquire the right to claim execution of a testamentary gift.
Persons who are or are not heirs by law may be recipients of gifts (legatees).
2. Transfer into ownership of a recipient of a gift, for use or in accordance with any other
corporeal right of an article which is a part of inheritance, acquisition and transfer to him (her
) of property which is not a part of inheritance, performance for him of certain work,
rendering of a certain service etc. may be subject to a testamentary gift.
3. An heir to whom his (her) testator entrusted a testamentary gift must execute it only
within the limits of actual value of the inheritance he received and less a part of debts of the
testator, which is apportioned to him (her).
When an heir to whom a testamentary gift is entrusted has the right to an obligatory share
in inheritance, his duty to execute the gift shall be restricted by the value of inheritance he
received in excess of his obligatory share.
When a testamentary gift is entrusted to all or several heirs, it shall encumber each of
them in proportion to their shares in inheritance, unless a will stipulates otherwise.
4. A testator shall have the right to entrust an obligation to an heir who inherits a dwelling
house or dwelling premises to grant life tenure of dwelling house or its certain part to another
person. In the case of a transfer of the right of ownership with regard to a given dwelling, the
right of life tenure shall remain in force.
The right to life tenure shall be unalienable, non-transferable and it shall not be acquired
by heirs of a legatum recipient.
The right to life tenure granted to a legatum recipient shall not be a basis for residence of
his family members, unless it is otherwise indicated in a will.
5. In the case of the death of an heir to whom a testamentary gift was entrusted, or in the
case of his failure to receive inheritance, the execution of a testamentary gift shall be
transferred to other heirs who have received his share, or to the state, if property became
ownerless.
A testamentary gift shall not be executed in the case of a legatum recipient death prior to
the opening of inheritance or after the opening, but prior to that moment when an heir by will
was in time to accept it.
6. A legatum recipient shall not be liable for debts of a testator.
Article 1058. Delegation

1. A testator may delegate to an heir by will a duty to perform an act or abstain therefrom
without granting to anyone the right to claim the execution of that duty as a creditor. For
attaining a generally useful purpose the same duty may be delegated to a will executor when a
part of property is appropriated by the testator for the execution of an assignment.
2. The rules of Article 1074 of this Code shall accordingly apply to delegation that is
associated with deeds having a property nature.
3. The duty to execute an assignment shall terminate in the case where due to the
circumstances provided for by this Code, a share in inheritance which is owing to or which
belongs to the heir with whom the duty rested to execute an assignment, is transferred to other
heirs.
Footnote. Article 1058 as amended by Law of the Republic of Kazakhstan dated
27.04.2012 № 15-V (shall be enforced upon expiry of ten calendar days after its official
publication).
Article 1059. Execution Of A Will
1. A testator may entrust the execution of his (her) will to the person indicated by him (
her) in his (her) will, who is not an heir (executor of a will, administrator). The consent of that
person to be executor of a will must be expressed by him (her) either in his own hand's note
on the will itself, or in an application attached to the will.
When in a will its executor is not indicated, the heirs by agreement between themselves
shall have the right to delegate the execution of the will to one of the heirs or to another
persons. In the case of a failure to reach such an agreement, the executor of a will may be
appointed by the court pursuant to claims of one or several heirs.
An executor of a will shall have the right to refuse the execution of duties delegated to
him (her) by a testator, by prior notice to the heirs by will. The discharge of the executor of
the will from his (her) duties shall also be possible pursuant to a court decision based on an
application of the heirs.
2. An executor of a will shall:
1) carry out protection of an inheritance and its management;
2) take every step available to notify all the heirs and gift recipients of the opening of the
inheritance for their benefit;
3) receive amounts owing to the testator;
4) transfer to the heirs properties which are owing to them in accordance with the
testator's will and legislative acts;
5) ensure the compliance by heirs with testamentary gifts entrusted to them (Article 1057
of this Code);
6) execute testamentary delegations or require from heirs by will of the execution of
testamentary delegation (Article 1058 of this Code);
7) carry out the liquidation of liabilities associated with the inheritance.
3. An executor of a will shall have the right to participate in court cases and other cases
associated with the management of an inheritance and execution of the will in his own name,
or he may be engaged to take part in such cases.
4. An executor of a will shall perform his functions within a reasonable period sufficient
for liquidation of inheritance liabilities, collection of amounts which are owing to the testator
and acquisition by all heirs of ownership with regard to an inheritance.
5. An executor of a will shall have the right to compensation at the expense of an
inheritance of appropriate expenditures associated with the management of the inheritance
and execution of the will. In the will there may be stipulated a payment of remuneration to the
executor of the will at the expense of the inheritance.
6. Upon execution of a will an executor of the will shall be obliged to submit to the heirs a
report pursuant to their demand.
Chapter 59. Inheritance by Law
1. Heirs by law shall be called to inherit in accordance with the procedure for a queue as
provided for by Articles 1061 - 1066 of this Code.
2. When inheriting by law, an adopted person and his descendants on the one side and the
adopter and his relatives on the other side are equated to blood relatives.
Adopted persons and their descendants shall not inherit by law after the death of blood
parents of the adopted person or his other blood relatives.
Parents of an adopted person and his other blood relatives shall not inherit by law after the
death of an adopted person and his descendants.
3. Each subsequent queue of heirs by law shall receive the right to inherit in the case there
are no heirs of the previous queue, their removal from inheritance, their non-acceptance of
inheritance or refusal from it, except for the cases indicated in paragraph 5 of Article 1074 of
this Code.
4. The rules of this Code concerning the queues for calling heirs by law to inherit and
concerning size of their shares in inheritance may be changed by a notarized agreement of
interested heirs which is entered after inheritance opens. Such an agreement must not infringe
the rights of the heirs, which are not a party to it, nor the heirs who have the right to an
obligatory share.
Article 1061. The First Queue Of Heirs By Law

The right of the first queue to inherit by law shall be granted in equal shares to the
children of an estate-leaver, including those born alive after his (her) death as well as the
spouse and parents of the estate-leaver.
The testator's grandchildren and their issue shall inherit by right of representation.
Article 1062. The Second Queue Of Heirs By Law
If there are no heirs of the first category the legal heirs of the second category shall be the
full and half brothers and sisters of the testator, his (her) grandfather and grandmother both on
the side of the father and on the side of the mother.
The children of full and half brothers and sisters of the testator (nephews, nieces of the
testator) shall inherit by right of representation.
Article 1063. The Third Queue Of Heirs By Law
1.If there are no heirs of the first and second categories the legal heirs of the third
category shall be the full and half brothers and sisters of the parents of the testator (uncles and
aunts of the testator).
2.Cousins of the testator shall inherit by right of representation.
Article 1064. Next Category Heirs
1. If there are no heirs of the first, second and third categories , the right to inherit by law
shall be acquired by the testator's relatives of the third, fourth and fifth degree of kinship who
are not qualified as heirs of the preceding categories.
The degree of kinship shall be determined by the number of births that separate relatives
from each other. The birth of the testator in this case does not count.
2. Under paragraph 1 of the present article the following shall be called upon to inherit:
as heirs of the fourth category: relatives of the third degree of kinship - great grandfathers
and great grandmothers of the testator;
as heirs of the fifth category: relatives of the fourth degree of kinship - children of full
nephews and nieces of the testator (grandsons and granddaughters once removed) and
brothers and full sisters of their grandfathers and grandmothers (grandsons and
granddaughters once removed) and full brothers and sisters of their grandfathers and
grandmothers once removed);
as the heirs of the sixth category: relatives of the fifth degree of kinship - children of
grandsons and granddaughters of the testator once removed (grand grandsons and grand
granddaughters once removed), children of his cousins (nephews and nieces once removed)
and children of his grandfathers and grandmothers once removed (uncles and aunts once
removed).
3. If there are no heirs of the preceding categories the following shall be called upon to
inherit as heirs of the seventh category by law: stepsons, stepdaughters, the stepfather and the
stepmother of the testator.
Article 1065. The Fifth Queue Of Heirs By Law
(Article is excluded by the Law of the Republic of Kazakhstan dated January 12, 2007 №
225 (shall be enforced from the date of its official publication).
Article 1066. The Sixth Queue Of Heirs By Law
(Article is excluded by the Law of the Republic of Kazakhstan dated January 12, 2007 №
225 (shall be enforced from the date of its official publication).
Article 1067. Inheritance Under The Right To Representation
1. The share of a legal heir who has died before the opening of the inheritance or
simultaneously with the testator shall be passed by right of representation to his relevant issue
in the cases specified in paragraph 2 of Article 1061, paragraph 2 of Article 1062 and
paragraph 2 of Article 1063 of this Code and it shall be divided between them in equal shares.
2. The issue of an heir who has died before the opening of the inheritance or
simultaneously with the testator and who would not have had a right of inheritance under
Article 1045 of this Code shall not inherit by the right of representation.
Article 1068. Incapable Dependents Of An Estate-Leaver
1. Citizens relating to the heirs by law, specified in the articles 1062, 1063, 1064 of this
Code incapable on inheritance opening day, but not entering the circle of heirs of that order,
which are called to inherit, shall inherit under the law together and on a level with successors
of this turn if not less than year to death of heir were on his expense irrespective of whether
they lived together with heir or not.
2. Incapable persons who are recognized as heirs by law as indicated in Articles 1061,
1066 of this Code, but who are not the heirs of that queue which is called to inherit, shall
inherit together with the heirs of this queue, provided they were dependent on an estate-leaver
not less than one year prior to his death, irrespective of whether or not they lived together
with the estate-leaver.
If there are other heirs by law, the persons called to inherit on the basis of this Article
shall inherit not more than one-fourth part of an inheritance.
Footnote. Article 1068 is in the wording of the Law dated January 12, 2007 № 225 (shall
be enforced from the day of its official publication).
Article 1069. The Right To An Obligatory Share In Inheritance
1. Minors or incapable children of an estate-leaver as well as his (her) incapable spouse

and parents shall inherit irrespective of the contents of a will, not less than half of the share
which should be due to each of them when inheriting by law (the obligatory share).
2. The obligatory share shall comprise everything which an heir who has the right to such
a share, receives by will and (or) by law, including the value of estate consisting of household
furniture and objects and value of a testamentary gift established for the benefit of such an
heir.
3. Any restrictions and encumbrances established in a will for an heir who has the right to
an obligatory share in inheritance shall be valid only with regard to that part of estate he
inherits which exceeds the obligatory share.
Article 1070. The Rights Of A Spouse In Inheritance
1. The right of a spouse to inherit by virtue of a will or law shall not infringe any other
property rights of the spouse which are associated with being married to an estate-leaver,
including the right of ownership to the part of the estate acquired during their marriage.
2. Pursuant to a court decision a spouse may be removed from inheritance by law,
provided it is proved that marriage with the estate-leaver actually terminated prior to the
opening of inheritance and the spouse lived separately for not less than 5 years prior to the
opening of inheritance.
Article 1071. Protection Of Inheritance And Its Managing In The Case Of Inheritance By Law
1. In the case where a part of estate is inherited by will, the will executor appointed by an
estate-leaver shall carry out protection of an entire inheritance and its management, including
that part of the inheritance which is inherited in accordance with the procedure for inheritance
by law.
A will executor appointed in accordance with Article 1059 of this Code by heirs by law or
by the court, shall exercise the function of protection of the entire legacy as a whole and its
management, unless the heirs by law require the appointment of a trust administrator for the
legacy in order to exercise the specified functions with regard to that part of the legacy which
is inherited in accordance with the procedure for inheriting by law.
2. A trust administrator of estate shall be appointed by a local notary where inheritance is
opened pursuant to one or several heirs' request by law. An heir by law, who disagrees with
the appointment of the estate administrator or with the appointment of the given administrator
, shall have the right to challenge the appointment of the estate administrator in the court
procedure.
3. When heirs by law are absent or unknown, a local executive bodies of the cities of
republican status, capital, districts, cities of regional status must petition a notary to appoint a
trust administrator for the estate. In the case of appearance of heirs by law, the estate trust
administrator may be revoked pursuant to their request with compensation to him of
appropriate costs and payment of a reasonable fee at the expense of the estate.
4. An estate trust administrator shall exercise the powers, provided for by Article 1059 of
this Code with regard to an executor of a will, so long as it does not otherwise ensue from
special considerations of inheriting by law.
5. An estate trust administrator shall have the right to compensation at the expense of the
estate of appropriate costs associated with the protection of the estate and its management;
and also to a fee, unless it is otherwise stipulated by his agreement with heirs.
20.12.2004 № 13 (shall be enforced from 01.01.2005); dated 01.03.2011 № 414-IV (shall be
Chapter 60. Acquisition of Inheritance
Article 1072. Acceptance Of Inheritance
1.A heir shall accept an inheritance in order to acquire it.

2. The acceptance of a portion of inheritance by an heir means acceptance of the whole
inheritance due to him (her), whatever the nature and the whereabouts thereof.
When an heir is called upon to inherit simultaneously on several grounds the heir may
accept an inheritance he is entitled to on one of these grounds, on several of them or on all of
them.
No acceptance of inheritance shall be stipulated by conditions or special clauses.
3. The acceptance of an inheritance by one or several heirs shall not mean an acceptance
of inheritance by other heirs.
4. An accepted inheritance shall be recognized as owned by the heir from the date of
opening of the inheritance, irrespective of the time of the actual acceptance and also
irrespective of the time of state registration of the heir's rights to assets of estate where such a
right is subject to state registration.
Footnote. Article 1072 is in the wording of Law of the Republic of Kazakhstan dated
12.01.2007 № 225 (shall be enforced from the date of its official publication); as amended by
the Law of the Republic of Kazakhstan dated 25.03.2011 № 421-IV (shall be enforced upon
expiry of ten calendar days after its official publication).
Article 1072-1. The Methods Of Accepting An Inheritance
1. An inheritance is accepted by the heir filing an inheritance acceptance application or an

application for a certificate of the right to the inheritance with the notary or personal
representative under law at the place of opening of the inheritance.
If an heir's application is passed to the notary by another person or the signature of the
heir is mailed on the application shall be attested by a notary, an official empowered to
accomplish notarial actions (paragraph 5 of Article 1051) or a person empowered to attest
powers of attorney in compliance with paragraph 3 of Article 167 of this Code).
An inheritance can be accepted through a representative if the power of accepting an
inheritance is specifically established in powers of attorney. No powers of attorney are
required for a personal representative to accept an estate.
2. Until and unless the contrary is proven, an heir shall be deemed to have accepted an
inheritance if he (she) has committed actions evidencing an actual acceptance of the
inheritance, in particular, if the heir:
has commenced possession or administration of assets of the estate;
has taken measures for preserving assets of the estate, protecting it against third persons'
encroachments or claims;
has incurred expenses on his account towards maintenance of assets of the estate;
has paid the testator's debts or received from third persons amounts of money payable to
the testator.
Footnote. The Code is supplemented with Article 1072-1 by the Law of the Republic of
publication).
Article 1072-2. The Term For Acceptance Of An Inheritance
1. An inheritance can be accepted within six months after the date of opening of the
inheritance. If the inheritance is opened on the date of the alleged death of a citizen (
paragraph 2 of Article 1042 of this Code) the inheritance can be accepted within six months
after the date when the court decision whereby the citizen is announced dead becomes final.
2. If a right of inheritance emerges for other persons as the result of an heir's disclaimer of
an inheritance or an heir's disqualification on the grounds established by Article 1045 of this
Code such person can accept the inheritance within six months after the date of occurrence of
their right of inheritance.
publication).
1072-3. Acceptance Of An Inheritance Upon The Expiry Of The Established Term
On the application filed late by a heir as concerning the term set for acceptance of an
inheritance (Article 1072-2 of this Code) the court may reinstate the term and recognize the
heir as having accepted the inheritance if the heir did not know and was not supposed to know
of the opening of the inheritance or if the heir has missed the term due to other legitimate
reasons and on the condition that the heir who missed the term set for acceptance of the
inheritance has filed his (her) application with the court within six months after the time when
the causes/reasons for the lateness ceased to exist.
Having recognized an heir as having accepted an inheritance, the court shall determine the
shares of all the heirs in the estate and if necessary shall designate measures for safeguarding
the rights of the new heir to his (her) entitlement (paragraph 3 of the present Article). The
certificates of a right of inheritance issued earlier shall be recognized by the court as void.
publication).
Article 1072-4. The Transfer Of A Right To Accept An Inheritance (Hereditary Transaction)
If an heir called upon to inherit by will or by operation of law dies after the opening of the
inheritance without having accepted it within the term established by Article 1072-2 of this
Code, the right of accepting his (her) entitlement shall pass to his (her) legal heirs.
The right of accepting an inheritance that belonged to a deceased heir may be exercised
by his (her) heirs on general terms.
If the portion of the term set for the purposes of inheritance acceptance that remains after
the death of an heir is less than three months, the term shall be extended to reach three months
.
Upon the expiry of the term set for inheritance acceptance purposes the heirs of a
deceased heir may be recognized by the court as having accepted the inheritance under
Article 1072-3 of this Code if the court is of the opinion that the reasons for the lateness are
legitimate.
The right of the successor to accept a part of the inheritance as an obligatory share
according to article 1069 of this Code doesn't pass to its successors.
publication).
Article 1073. Issuing Certificates On The Right To Inherit

1. A local notary where inheritance opens, pursuant to the request of an heir shall be
obliged to issue to him a certificate of the right to inherit.
2. A certificate on the right to inherit shall be issued upon expiry of six months from the
day when inheritance opens.
When inheriting either by will or by law, certificates may be issued prior to the expiry of
the specified period, provided a notary has reliable information that aside the persons who
applied to obtain a certificate, there are no more heirs with regard to a given property or the
entire legacy.
Article 1074. The Right To Refuse From Inheritance
1. An heir shall have the right to refuse an inheritance within six months from the day
when he learned or was to learn on his being called to inherit. If there are good reasons that
period may be extended by the court, however not more than for two months.
2. A refusal from an inheritance shall be carried out by way of submission by an heir of an
application to a notary in the place where the inheritance opens.
A refusal from an inheritance through a representative is possible where the power for
such a refusal is specifically stipulated in the power of attorney.
3. A refusal from an inheritance may not be subsequently renounced or revoked.
4. An heir shall lose the right to refuse an inheritance upon expiry of the period granted to
him for that. He shall lose that right also prior to expiry of that period if he actually entered
the ownership of inherited estate, or disposed of it or petitioned for documents which certify
his rights to that estate.
5. In the case of a refusal of an inheritance, an heir shall have the right to indicated that he
repudiates it for the benefit of other persons from among heirs by will or by law of any queue.
A refusal from an inheritance for the benefit of heirs who are deprived of the inheritance
by their testator shall not be allowed.
6. When an heir is called to inherit both by will and by law, he shall have the right to
refuse from an inheritance, which is due to him on one of those grounds or from the both.
7. An heir shall have the right to refuse an inheritance, which is due to him by the right of
gain (Article 1079 of this Code), irrespective of inheritance of the rest of estate.
8. Except for the cases stipulated in this Article, a refusal of a part of an inheritance, a
refusal from the inheritance with stipulations or under conditions shall not be allowed.
Article 1075. The Right To Refuse From Receiving A Testamentary Gift

1. A recipient shall have the right to refuse from a testamentary gift. A partial refusal, a
refusal with stipulations, under conditions or for the benefit of any other person shall not be
allowed.
2. The right stipulated in this Article shall not be related to the right of a recipient of
testamentary gift who at the same time is an heir to refuse from inheritance.
3. When a testamentary gift recipient exercises the right stipulated in this Article, an heir
encumbered by a testamentary gift shall be discharged from the duty to execute it.
Article 1076. Division Of Inheritance
1. Any heirs by law who accepted inheritance shall have the right to demand division of
an inheritance.
Division of an inheritance shall be carried out by agreement of heirs in accordance with
the shares owning to them, and in the case of failure to reach a consensus in accordance with
the court procedure.
If the inheritance includes a property, for which heir’s rights are not registered and are not
recognized as risen without registration, division of the property between heirs shall be
carried out after the registration of rights of the heir in the order established by legislation.
2. The rules of this Article shall apply to division of an inheritance between heirs by will
in the cases where all inheritance or a part thereof was bequeathed to heirs in shares without
an indication of specific assets.
Article 1076 as amended by the Law of the Republic of Kazakhstan dated 25.03.2011 №
421-IV (shall be enforced upon expiry of ten calendar days after its first official publication).
Article 1077. The Rights Of Absent Heirs
1. When among heirs there are persons whose address is unknown, then the other heirs, an
executor of a will (administrator of estate) and a notary shall be obliged to take reasonable
steps to establish their location and to call them for inheritance.
2. When an absent heir called to inherit whose address is established does not refuse from
an inheritance within the period stipulated in Article 1074 of this Code, the other heirs shall
be obliged to notify him of their intent to carry out division of the estate.
When within three months from the date of a notice stipulated in the preceding paragraph,
an absent heir fails to notify the other heirs on his wish to participate in a given agreement on
division of an inheritance, the other heirs shall have the right to carry out the division in
accordance with their agreement having appropriated the share which is due to the absent heir
.
3. When within one year from the date that an inheritance opens the address of an absent
heir is not established and there is no information on his refusal from the inheritance, the
other heirs shall have the right to carry out division in accordance with the rules of the second
clause of paragraph 2 of this Article.
4. When there is a conceived but unborn heir, division of property may be carried out only
after the birth of such an heir.
When a conceived heir is born alive, then the other heirs shall have the right to carry out
division of property and appropriate the inheritance share owing to him. For the protection of
the interests of a new-born child, a representative of the body of tutelage and guardianship
may be invited for the participation in the division.
Article 1078. Priority Right Of Certain Heirs To Inheritance Estate
1. Heirs who within one year prior to the opening of an inheritance resided together with
the estate-leaver shall have the priority right to inherit a dwelling, as well as household
objects and utensils.
2. Heirs, who had the right of joint ownership with the estate-leaver with regard to estate,
shall have the priority right with regard to inheriting assets, which were in joint ownership.
3. When priority rights are exercised which are indicated in paragraphs 1 and 2 of this
Article, the property interests of other heirs participating in division must be complied with.
When property which forms an inheritance is insufficient for issuing to them of appropriate
shares, the heir who enjoys the priority right must provide to them appropriate monetary or
property compensation.
Article 1079. Acquisition Of Shares In Inheritance
1. In the case of a refusal of an heir from an inheritance or his cessation because of the
circumstances indicated in this Code, the part of the inheritance that was due to such an heir
shall be acquired by the heirs by law who are called for inheritance, and it shall be distributed
between them in proportion to their inheritance shares.
When an estate-leaver bequeathed all his estate to heirs appointed by him, a part of the
estate which was allocated to an heir who refused it or to an heir who ceased to be, shall be
acquired by the other heirs by will and it shall be distributed between them in proportion to
their inheritance shares, unless it is otherwise stipulated in a will.
2. The rules contained in paragraph 1 of this Article shall not apply in the following cases:
1) where a sub-heir was appointed to an heir who refused or ceased to be;
2) where an heir refuses from an inheritance for the benefit of a certain person;
3) in the cases where in inheriting by law a refusal or cessation of an heir entails calling to
inheritance of the heirs of the next queue.
Article 1080. Expenditures Which Are Subject To Payment At The Expense Of An Inheritance
Claims concerning compensation for appropriate costs caused by the pre-death disease of
an estate-leaver, expenditures for the burial of the estate-leaver, those associated with
protection, management of an inheritance and a will execution, as well as payment of a fee to
a will executor or to a estate trust administrator, shall be subject to satisfaction at the expense
of the inheritance prior to its distribution between heirs. Those claims shall be subject to
compensation out of estate value as a priority before any other claims, including those
secured by pledge.
Article 1081. Exaction Of Debts Of An Estate-Leaver By Creditors
Creditors of an estate-leaver shall have the right to file their claims ensuing from
liabilities of an estate-leaver against a will executor (estate trust administrator) or to heirs who
are liable as several debtors within the limits of estate value acquired by each heir.
Article 1082. Inheritance In A Peasant Farm
In the event of the death of a peasant farm member (a member of a collective farm
holding), an inheritance shall be open with regard to general rules. Heirs shall have the right
to receive monetary compensation in proportion to his (her) share in the common ownership
of that property.
Article 1083. Ownerless Inheritance
Footnote. The title of Article 1083 as amended by the Law of the Republic of Kazakhstan
dated 01.03.2011 № 414-IV (shall be enforced from the date of its official publication).
1. Where there are neither heirs by will nor by law, nor where none of heirs has the right
to inherit (Article 1045 of this Code), or where all of them refused from inheritance (Article
1074 of this Code), the estate shall be recognized as ownerless.
2. Ownerless estate shall become communal property where the inheritance was opened.
Organization of the work on counting, keeping, assessment, further use and realization of
the ownerless inheritance came into community property, shall be carried out by the body
authorized to manage the community property.
The procedure of counting, keeping, assessment, further use and realization of the
ownerless inheritance came into community property, shall be determined by the Government
3. Estate shall be recognized as ownerless by the court on the basis of a petition of a local
executive bodies of cities of republican status, capital, districts, cities of regional status,
where the inheritance opened upon expiry of one year from the date the given inheritance
opened. Estate may be recognized as ownerless prior to expiry of the specified period if
expenditures associated with its protection and management exceeded its value.
4. Protection of ownerless property and its management shall be carried out in accordance
with Article 1071 of this Code.
5. The rules, specified by the Articles 1080 and 1081 of this Code shall be applied to the
ownerless property.
24.12.2001 № 276; dated 20.12.2004 № 13 (shall be enforced from 01.01.2005); dated
publication).
Section 7. Private International Law

Chapter 61. General Provisions
Article 1084. Definition Of The Law Which Is Subject To Application To Civil And Legal
Relations Complicated By A Foreign Elements
1. The law which is subject to application to civil and legal relations with the participation
of foreign citizens of foreign legal entities or complicated by any other foreign element shall
be determined on the basis of this Code, other legislative acts, international treaties ratified by
the Republic of Kazakhstan and international customs being recognized.
2. If in accordance with paragraph 1 of this Article it is impossible to determine the law,
which is subject to application, the law shall apply which is the most closely associated with
the civil and legal relations complicated by a foreign element.
3. The rules of this section on determining the law, which is subject to application by the
court, shall be appropriately applied by other bodies entrusted with the powers to decide on
the issue concerning the applicable law.
Article 1085. Categorization Of Legal Concepts (Legal Categorization)
1. Categorization of legal concepts (legal categorization) which is carried out by the court
shall be based on their interpretation in accordance with the law of the country of the court,
unless it is otherwise stipulated in legislative acts.
2. If legal concepts are not known to the law of the country of the court or are known
under different name or with different contents and may not be determined by way of
interpreting in accordance with the law of the country of the court then when categorizing
legal concepts (legal categorization) the law of the foreign state may also be applied.
Article 1086. Establishing Contents Of Standards Of Foreign Law

1. When applying foreign law the court shall establish the contents of its standards in
accordance with their official interpretation, practice of applying and the doctrine in the
relevant foreign state.
2. For the purposes of establishing contents of standards of foreign law the court may
apply in accordance with the established procedure for assistance and explanation to the
Ministry of Justice of the Republic of Kazakhstan and other competent bodies and institutions
of the Republic of Kazakhstan including those which are abroad or may hire experts.
3. Persons who participate in a case shall have the right to submit documents, which
confirm the contents of standards of foreign law to which they refer to substantiate their
claims or objections and in any other manner to assist the court to establish the contents of
those standards.
4. When contents of standards of foreign law in spite of measures undertaken in
accordance with this article within a reasonable period of time are not established the law of
the Republic of Kazakhstan shall apply.
Article 1087. Reverse Reference And Reference To Law Of A Third Country
1. Any reference to foreign law in accordance with the rules of this section, except for the
cases stipulated by this article must be considered as reference to material law and not conflict
of laws of an appropriate country.
2. The back reference to the law of the Republic of Kazakhstan and reference to law of a
third country shall be accepted in the cases for applying foreign law in accordance with
Article 1094, paragraphs 2, 3, 5 of Article 1095, Article 1097 of this Code.
Article 1088. Consequences Of Evading Law
Agreements and other acts of participants of relations which are regulated by this Code
aimed to subject relevant relations to other law evading rules of this section concerning law
which is subject to application shall be invalid. In this case law which is subject to application
in accordance with this section shall apply.
Article 1089. Mutuality
1. The court shall apply foreign law irrespective of that weather in a relevant foreign state
the law of the Republic of Kazakhstan applies to similar relations, except for the cases when
application of foreign law on the basis of mutuality is provided for by legislative acts of the
2. Where an application of foreign law depends on mutuality it is assumed that it exists,
since it is not otherwise proved.
Article 1090. Stipulations On Public Procedures

1. Foreign law shall not apply in the cases where its application contradicts the principles
of law and order of the Republic of Kazakhstan (public order of the Republic of Kazakhstan).
In those cases the law of the Republic of Kazakhstan shall apply.
2. Denial of application of foreign law may not be based only on the difference of legal
political or economic system of the relevant foreign state from political or economic system
Article 1091. Application Of Imperative Standards
1. Application of the rules of this section shall not be extended to effect of imperative
standards of legislation of the Republic of Kazakhstan which regulate relevant relations
irrespective of applicable law in consequence of an indication in a provision itself or in view
of their particular importance for ensuring the rights and interests protected by the law of
participants of civil circulation.
2. When applying law of any country in accordance with the rules of this section the court
may apply imperative rules of law of other country which has close connection with relations,
if according to law of that other country such standards must regulate appropriate relations
irrespective of the applicable law. In that case the court must consider the purpose and nature
of such standards as well as consequences of their application.
Article 1092. Application Of Law Of A Country With Multiple Legal System
In the case where law of a country is to be applied in which there are several territorial or
other legal systems, the legal system shall be applied in accordance with the law of that
country.
Article 1093. Retortions
Reciprocal restrictions (retortions) with regard to the rights of citizens and legal entities of
those states, which have special restrictions of rights of citizens and legal entities of the
Republic of Kazakhstan, may be established by the Republic of Kazakhstan.
Chapter 62. Conflict Standards

Paragraph 1. Persons, Entities
Article 1094. Personal Law Of A Private Person
1. Personal law of a private person shall be deemed to be law of a country whose

citizenship that person has. If a person has two or more nationalities the personal law shall be
deemed law of a country to which that person is related most closely.
2. Personal law of a stateless person shall be deemed to be law of a country in which that
person resides permanently.
3. The personal law covering refugees shall be deemed to be law of a country that granted
them asylum.
Article 1095. Legal Capacity And Capacity Of A Private Person
1. The civil legal capacity of a private person shall be defined by his own law. Thus
foreign citizens and persons without citizenship shall have civil legal capacity in the Republic
of Kazakhstan equally with citizens of the Republic of Kazakhstan, except for the cases
established by legislative acts or international treaties of the Republic of Kazakhstan.
2. Legal capacity and capability of a private person shall be defined by its personal law.
3. Civil capability of a private person with regard to transactions and obligations which
emerge in consequence to causing harm shall be determined in accordance with law of a
country where transactions were committed or where obligations emerged because of causing
harm.
4. The capability of a private person to be an individual entrepreneur and to have the
rights and obligations connected with that shall be determined in accordance with law of a
country where the private person is registered as an individual entrepreneur. If there is no
country of registration law of the country where the principal place of performance of
individual entrepreneurial activity is located shall apply.
5. Recognition of a private person as incapable or with limited capability shall be subject
to law of the court country.
Article 1096. Recognition Of A Private Person As Missing And Announcement On Him As

Deceased
Recognition of a private person as missing and announcement on him as deceased shall be

subject to law of the country of the court.
Article 1097. Name Of A Private Person
The right of a private person to name, its use and protection shall be defined by his
individual law, unless it otherwise ensues from the rules, provided for by paragraphs 5 and
paragraph 7 of Article 15, Articles 1103 and 1120 of this Code.
Article 1098. Registration Of Acts Of Civil Status Of Citizens Of The Republic Of Kazakhstan
Outside The Boundaries Of The Republic Of Kazakhstan
Registration of civil status acts of the citizens of the Republic of Kazakhstan who reside
beyond the boundaries of the Republic of Kazakhstan shall be carried out by consular
institutions of the Republic of Kazakhstan. In that case legislative acts of the Republic of
Kazakhstan shall apply.
Article 1099. Recognition Of Documents Issued By Bodies Of Foreign States To Certify Civil
Status Acts
Documents issued by authorized bodies of foreign states to certify civil status acts
performed beyond the boundaries of the Republic of Kazakhstan in accordance with laws of
relevant states with regard to citizens of the Republic of Kazakhstan, foreign citizens and
stateless persons shall be recognized as valid in the Republic of Kazakhstan provided there is
legalization.
Article 1100. Law Of A Legal Entity
The law of a legal entity shall be deemed to be law of a country where that entity was
established.
Article 1101. Legal Capacity Of A Legal Entity
1. The civil legal capacity of a legal entity shall be defined by the law of the legal entity.
2. A foreign legal entity may not refer to restriction of powers of its body or
representative with regard to carrying out a transaction which is not known to law of the
country in which the body or the representative of the foreign legal entity carried out that
transaction
3. Civil legal capacity of foreign organizations that are not legal entities according to
foreign law shall be determined in accordance with law of the country where an organization
is established.
The rules of this Code which regulate activities of legal entities which are commercial
organizations shall apply to activities of such organizations if the law of the Republic of
Kazakhstan is applicable, unless it otherwise ensues from legislation of the Republic of
Kazakhstan or essence of an obligation.
Article 1102. The Participation Of The State In Civil And Legal Relations With Foreign Elements
1. The rules of this section shall apply to civil and legal relations with foreign elements
with participation of the state on the general basis, unless it is otherwise provided for by
legislative acts.
2. In civil-law relations with a foreign element the Republic of Kazakhstan shall use
juridical immunity concerning itself and the property from jurisdiction of courts of other state,
including judicial immunity, immunity from maintenance of the claim and immunity from
compulsory execution of the judicial certificate if unless otherwise established:
In the international contract of the Republic of Kazakhstan;
In the written agreement which is not the international contract of the Republic of
Kazakhstan;
By the legal statement or the notice in writing within the limits of concrete trial.
Footnote. Article 1102 is the wording of the Law of the Republic of Kazakhstan dated
05.02.2010 № 249-I
Paragraph 2. Personal Non-Property Rights
Article 1103. Protection Of Personal Non-Property Rights
The law of the country where an action or any other circumstance has taken place which
serves as the basis for claim to protect such rights shall apply to personal non-property rights.
Paragraph 3. Transactions, Representation, Limitation Period
Article 1104. Form Of A Transaction
1. Form of a transaction shall be subject to law of the place where it was carried out.
However, transactions carried out abroad may not be recognized as invalid in consequence of
non-compliance with its form if the requirements of law of the Republic of Kazakhstan are
complied with.
2. Foreign economic transactions to which at least one of the parties is a legal entity of the
Republic of Kazakhstan or a citizen of the Republic of Kazakhstan shall be carried out in
writing irrespective of the place of conclusion of the transaction.
3. Form of a transaction with regard to immovable property shall be subject to law of the
country where that property is located, and with regard to immovable property which is
entered into the State Register in the Republic of Kazakhstan - to law of the Republic of
Kazakhstan.
Article 1105. Power Of Attorney
Form and the validity period of power of attorney shall be determined in accordance with
law of the country where power of attorney was issued. However, power of attorney may not
be recognized as invalid in consequence of non-compliance with the form provided the latter
complies with the requirements of law of the Republic of Kazakhstan.
Article 1106. Limitation Period
1. The statute of limitation shall be determined in accordance with law of the country that
is applicable for regulation of relevant relation.
2. The requirements to which the statute of limitation shall not apply shall be determined
in accordance with law of the Republic of Kazakhstan where at least one of participants of
relevant relation is a citizen of the Republic of Kazakhstan or a legal entity of the Republic of
Kazakhstan.
Paragraph 4. Property Rights
Article 1107. General Provisions Concerning Law Applicable To Property Rights
1. The right of ownership and other property rights to immovable and movable assets
shall be determined in accordance with law of the country where those properties are located,
unless it is otherwise provided for by legislative acts of the Republic of Kazakhstan.
2. The recognition of properties as movable or immovable assets as well as other
categorization of assets shall be determined in accordance with law of the country where
those properties are located.
Article 1108. Emergence And Termination Of Property Rights
1. Emergence and termination of property rights to properties shall be determined in

accordance with law of the country where those properties were located at the moment when
the action or any other circumstance has taken place which served as the base for emergence
or termination of property rights, unless it is otherwise provided for by legislative acts of the
2. Emergence and termination of property rights to properties which are a subject of
transaction shall be determined in accordance with law of the country to which that
transaction is subordinated, unless it is otherwise stipulated by the contract of the parties.
3. The emergence of the right of ownership with regard to assets in consequential of
prescription shall be defined by law of the country where the property was at the moment of
termination of the period of prescription.
Article 1109. Property Rights To Transport Vehicles And Other Properties Which Are Subject To
Entering Into State Register
Property rights to transport vehicles and other properties which are subject to the state
registration shall be determined in accordance with law of the country where those transport
vehicles or property are entered into the State Register.
Article 1110. Property Rights To Movable Properties In Route
The right of ownership and other property rights to movable properties which are en route
under a transaction shall be determined in accordance with law of the country from which
those assets were shipped, unless it is otherwise stipulated in the contract of the parties.
Article 1111. Protection Of Property Rights

1. The law of the country where properties are located or law of the country of the court
shall apply to the protection of the right of ownership and other property rights at the
discretion of an applicant.
2. Law of the country in which those properties are located shall apply to the protection of
the right of ownership and any other property rights to immovable properties. With regard to
assets, which are entered into the State Register of the Republic of Kazakhstan, law of the
Republic of Kazakhstan shall apply.
Paragraph 5. Contractual Obligations
Article 1112. Selection Of Law By Agreement Of Contractual Parties
1. A contract shall be regulated by law of the country selected by agreement of the parties,
unless it is otherwise stipulated in legislative acts of the Republic of Kazakhstan.
2. An agreement of the parties concerning selection of applicable law must evidently
express or directly ensue from provisions a contract and circumstances of business being
considered in total.
3. The parties to a contract may select applicable law both for the contract as a whole and
for its separate parts.
4. The selection of applicable law may be made by the parties to a contract at any time
both when entering into the contract and subsequently. The parties may also at any time agree
to alter the law applicable to the contract.
Article 1113. The Law Applicable To A Contract When There Is No Agreement Of The Parties
1. When there is no agreement of the parties to a contract with regard to law which is
applicable to that contract the law of the country shall apply where a party defined as follows
was found or has the place of residence or principal place of business:
1) seller - in a purchase and sale contract;
2) donator - in a donation contract;
3) lessor or landlord - in the contract of property lease (lease);
4) lender - in the contract of charge-free properties use;
5) contractor - in a contract;
6) carrier - in a transportation contract;
7) forwarding agent - in a transport forwarding contract;
8) creditor - in a loan or other credit contract;
9) agent - in an agency agreement contract ;
10) commissioner - in a commission contract;
11) custodian - in a custody contract;
12) insurer - in an insurance contract;
13) guarantor - in a guarantee contract ;
14) pledger - in a pledge contract;
15) licenser - in a license contract on use of exclusive rights.
2. Law of the country where that property is located shall apply to the rights and
obligations under the contract the scope of which is property as well as under the contract on
property trust management, and with regard to property which is entered into the State
Register of the Republic of Kazakhstan law of the Republic of Kazakhstan.
3. If there is no consensus of the parties to a contract with regard to applicable law
irrespective of the provisions of paragraph 1 of this Article the following shall apply:
1) to contracts on joint activities and construction contracts the law of the country where
such activities are carried out or results are created as stipulated in the contract.
2) to the contract concluded in accordance with results of an auction (tender, auction) or at
an exchange - the law of the country where the auction takes place or an exchange is located.
4. To the contracts which are not listed in paragraphs 1, 3 of this Article when there is no
consensus of the parties on applicable law the law of the country shall apply where the party
which carries out execution which has decisive significance for the contents of such contract
is founded, has place of residence or principal place of business. If it is impossible to
determine execution which has principal significance to the contents of the contract the law of
the country to which the contract is the most closely related shall apply.
5. The law of the place of carrying out formal acceptance with regard to such formal
acceptance of execution under the contract shall be taken into consideration, since the parties
did not agree otherwise.
6. If commercial terms accepted in international turns of speech are used in the contract
then when there are no other indications it shall be considered that the parties have agreed to
apply usual business turns of speech to their relations which exist with regard to appropriate
commercial terms.
Article 1114. The Law Applicable To The Contracts On Creation Of A Legal Entity With Foreign
Participation
1. The law of the country where a legal entity is to be founded or has been founded shall
apply to the contracts on formation of a legal entity with foreign participation.
2. Relations being regulated by this article shall comprise relations associated with
creation and termination of a legal entity, transfer of share of participation in it and other
relations between participants of a legal entity connected with their mutual rights and
obligations (in particular those determined by subsequent contracts).
3. Provisions of this Article shall apply also in the case of establishing mutual rights and
obligations of participants of a legal entity with foreign participation by other foundation
documents.
Article 1115. The Sphere Of Application Of Applicable Law

1. The law, which is applicable to contracts by virtue of provisions of this paragraph, shall
comprise in particular the following:
1) interpretation of the contract;
2) the rights and obligations of parties;
3) execution of the contract;
4) consequences of a failure to execute or improper execution of the contract;
5) termination of that contract;
6) reasons and consequences of invalidity the contracts;
7) assignment of claims and transfer of debt in connection to the contract.
2. With regard to method and procedure for execution as well as measures which must be
taken in the case of improper execution, except for applicable law also the law of the country
in which execution takes place shall be taken into account.
Paragraph 6. Non-Contractual Obligations
Article 1116. Obligations Of Unilateral Acts
The law of the place of carrying out an act shall apply to obligations of unilateral acts (
public promise of award, activities in somebody else interests without instruction etc.). The
place of carrying out a unilateral act shall be determined in accordance with the law of the
Article 1117. Obligations In Consequence Of Causing Harm
1. The rights and obligations under commitments which emerge in consequence of

causing harm shall be determined in accordance with the law of the country where the action
took place or any other circumstances which cause aa the basis for claims to compensate for
harm.
2. The rights and obligations under commitments which emerge in consequence of
causing harm abroad where the parties are citizens or legal entities of the same state shall be
determined in accordance with the law of that state.
3. Foreign law shall not apply if an action or other circumstances that serve as the basis
for claims to compensate harm in accordance with legislative acts of the Republic of
Kazakhstan is not unlawful.
Article 1118. Responsibility For Loss Caused To A Consumer
At a consumer's discretion to claims on compensation of losses caused to the consumer in

connection with purchase of goods or rendering of services shall apply the following:
1) the law of the country where the place of residence of the consumer is located;
2) the law of the country where the place of residence or location of a manufacturer or
person who has rendered the service is;
3) the law of the country where a consumer has purchased goods or where the service has
been rendered to him.
Article 1119. Unreasonable Enrichment
1. To circumstances, which emerge in consequence of unreasonable enrichment, the law

shall apply of the country where the enrichment took place.
2. If unreasonable enrichment emerges in consequence of cessation of the basis according
to which property was purchased or saved an applicable law shall be determined in
accordance with the law of the country to which that basis was subject.
3. The concept of unreasonable enrichment shall be defined in accordance with the law of
Paragraph 7. Intellectual Property
Article 1120. The Rights To Intellectual Property
1. The law of the country where protection of such rights is sought shall apply to
intellectual property rights.
2. Contracts having the rights to intellectual property as a scope shall be regulated by law
being determined in accordance with the provisions of this section concerning contractual
obligations.
Paragraph 8. Inheritance Law
Article 1121. Relations Connected With Inheritance
The relations connected with inheritance shall be determined in accordance with the law
of the country where an estate-leaver had the last permanent place of residence, since it is not
otherwise provided for by Articles 1122 and 1123 of this Code, if the estate-leaver did not
select in his will the law of the country to which he is a citizen.
Article 1122. The Capability Of Persons With Regard To Drawing Up And Renunciation Of Wills,
Forms Of Wills And Acts Of Their Renunciation
Capability of a person to draw up or renounce a will as well as the form of the will and act
of its abolition shall be defined in accordance with the law of the country where a testator had
permanent place of residence at the moment of drawing up the act, unless the testator selected
in the will the law of the country to which he was a citizen. However, a will or its abolition
may not be recognized as invalid in consequence of a failure to comply with the form if the
latter satisfies the requirements of the law of the place of drawing up an act or with
requirements of the Republic of Kazakhstan.
Article 1123. Inheritance of Immovable Property and Property Which is Subject to Entering into
the State Register
The inheritance of immovable property shall be determined in accordance with the law of
the country where this property is located and property that was entered into the State
Register in the Republic of Kazakhstan in accordance with the law of the Republic of
Kazakhstan. The same law shall define the persons' capability to draw up or abolish wills as
well as forms of the latter if specified assets are bequeathed.
Article 1123. Inheritance Of Immovable Property And The Property Which Is Subject To Inclusion
In The State Register
Inheritance of immovable property is determined by the law of the country where the
property is located, and the property, which is registered in the public register of the Republic
of Kazakhstan - by the law of the Republic of Kazakhstan. The same right is determined by
the ability of a person to make or revoke a will, and the form of the latter if bequeathed the
specified property.
Paragraph 9. Guardianship and Tutelage
Article 1124. Guardianship And Tutelage
1. Guardianship and tutelage over minors, incapable full age persons or full age persons
who have limited capabilities shall be established and abolished according to individual law
of a person with respect to whom guardianship and tutelage are established or abolished.
2. A tutor's (guardian) duty to take guardianship (tutelage) shall be determined according
to individual law of a person who is appointed as a tutor (guardian).
3. Legal relations between a tutor (guardian) and a person being under guardianship and
tutelage shall be determined according to the law of the country an institution which has
appointed the tutor (guardian). However, in the case of a person being under guardianship and
tutelage resides in the Republic of Kazakhstan then the law of the Republic of Kazakhstan
shall apply if it is more favorable for this person.
4. Guardianship and tutelage established over citizens of the Republic of Kazakhstan who
reside beyond the boundaries of the Republic of Kazakhstan shall be recognized as valid in
the Republic of Kazakhstan if there are no objections based on the law of an appropriate
consular institution of the Republic of Kazakhstan against establishing guardianship and
tutelage or against its recognition.
President of
the Republic of Kazakhstan
© 2012. «Institute of legislation and legal information of the Republic of Kazakhstan» of the Ministry of Justice of
the Republic of Kazakhstan

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Civil Code of the Republic of Kazakhstan

Article 1. Relations Regulated by Civil Legislation

Article 2. The Basic Principles of Civil Legislation

Article 3. Civil Legislation of the Republic of Kazakhstan

Article 4. The Effect of Civil Legislation in Time

Article 5. Application of Civil Legislation by Analogy

Article 6. Interpretation of Civil Legislation Provisions

1. Provisions of civil legislation must be interpreted literally. Where the possibility of

Article 8. The Exercise of Civil Rights

Article 9. Protection of Civil Rights

1. Protection of civil rights is carried out by court, arbitration through: recognition of

Article 10. Protection of the Rights of Entrepreneurs and Consumers

Article 11. Prohibition of Abusing the Freedom of Entrepreneurship

Chapter 2. The subjects of the Civil Rights

Article 12. The Definition of an Individual

Article 13. The Legal Capacity of Citizens

Article 14. The principal Contents of the Legal Capacity of a Citizen

Article 15. The name of a Citizen

Article 16. The Place of Residence and Legal Address of a Citizen

1. The populated area where a citizen permanently or predominantly resides shall be

Article 19. Entrepreneurial Activities of Citizens

Article 20. Property Liability of a Citizen

Article 21-1. Rehabilitation procedures for an individual entrepreneur

A debtor registered as an individual entrepreneur may be subject to any measures not

Article 22-1. Announcement of a Minor’s Full Legal Capacity (Emancipation)

Article 23. The Legal Capacity of Minors Under Fourteen (Children)

Article 26. The Recognition of a Citizen as Legally Incapable

1. A citizen who, as a result of psychiatric disease or mental disability, cannot understand

Article 27. Restriction of Citizen’s Legal Capacity

1. A citizen who, as a result of abuse of gambling, betting, alcoholic beverages or narcotic

Article 28. The Recognition of a Citizen as Missing

1. Pursuant to the application of interested persons a citizen may be recognized by the

Article 29. The Protection of Property of a Missing Person

Article 30. The Abolition of a Decision to Recognize a Person as Missing

Article 31. The Announcement of a Citizen as Deceased

1. Pursuant to the application of interested persons, a citizen may be announced by the

Article 32. The Consequences of the Appearance of a Person Announces as Deceased

Paragraph 2. Legal Entities

Article 33. The Definition of a Legal Entity

Article 34. Thes and Forms of Legal Entities

Article 37. Bodies of a Legal Entity

Article 38. The name of a Legal Entity

Article 39. The Location of a Legal Entity

Article 40. The Founders of a Legal Entity

1. A legal entity may be founded by one or several founders.

Article 41. Foundation Documents of a Legal Entity

Article 42. The State Registration and Re-Registration of Legal Entities

Article 44. The Liability of a Legal Entity

Article 45. Reorganization of a Legal Entity

1. Reorganization of a legal entity (merger, acquisition, division, separation,

Article 49. Grounds for the Liquidation of a Legal Entity

Article 50. The Procedure for the Liquidation of Legal Entities

Article 51. Satisfying the Claims of Creditors

Bankruptcy is an insolvency of a debtor recognized by a court decision, which is the basis

Article 53. Composition in Bankruptcy

1. Recognition of bankruptcy is possible in a voluntary or compulsory procedure.

Article 54. Rehabilitation procedures for a legal entity

Article 54-1. External Monitoring

Article 55. Consequences of initiation of bankruptcy proceedings

Article 56. Release of an Insolvent Debtor from Debt