Types of contractual obligations

• Sale of goods

• Barter

• Leasing

• Transportation

• Loan

• Insurance

• Contract of services

Sale of goodsa contract by which the seller must hand over the goods to the buyer’s ownership, business authority or operational administration and the buyer must pay the price in exchange for the goods.

(Chapter 25 CC) Form of the contract of sale of goods

• Legal entities – written form

• Real estate – written form + registration

• Natural persons – movable property – any form

Legal entity

It is an organization which:

• has its separate property on the basis of property right, right of business authority or right of operational management;

• is liable for its obligations with this property;

• can in its own name acquire and exercise property and personal non-property rights and obligations;

• can be a plaintiff and a defendant in the court;

• has independent balance-sheet or budget.

Types of legal entities:

Commercial organization

Aimed on the receiving of profit

The income is distributed between the participants Types of commercial organizationsstate enterprise

business partners joint stock Non-commercial organization

Does not have the receiving of profit as the main aim

The income is not distributed between the participants

Types of non-commercial organizations:

Institution

Public foundation

Non-commercial joint-stock company

Religious association

Consumer cooperative society

Social fund

Legal entities can create associations.

n Legal entity shall act on the basis of the RK Civil Code, Law on each of the forms of legal entities, and other laws and foundation documents.

n Each legal entity shall have legal capacity, i.e. a capacity to have civil rights and obligations in connection with its activities.

n Legal capacity of legal entity shall arise at the moment of its creation and shall cease at the moment of completion of its liquidation.

n Legal capacity of legal entity engaged in such activity which requires to obtain a license shall arise at the moment of obtaining the licenses and shall cease at the moment of its removal, expiry or recognition as invalid.

Liability of legal entity

• Founder (participant) of legal entity or owner of its property shall not be liable for obligations of legal entity, and legal entity shall not be liable for obligations of its founder except for cases provided for by laws or foundation documents of legal entity.

• If bankruptcy of legal entity was caused by actions of its founder, then in case of insufficiency of funds of legal entity, the founder shall bear subsidiary liability before the creditors.

• Legal entity shall be liable before the third parties for obligations of legal entity's body which exceeded its powers set forth in foundation documents except for cases provided for by Item 11 of Article 159 of the RK Civil Code.

• Item 11 of Article 159 of the RK Civil Code.

Notion of Shareholding Company

Shareholders are individuals, companies, or trusts, that own shares of a for-profit corporation. The individuals own a specific number of shares, which they each purchased at a specific price.The stockholders have invested their money to purchase these shares and they gain in two ways

• Through dividends paid based on the number of shares owned by the shareholder, and due to the corporation's profits, and
• By selling their shares at a profit.

Shareholder Rights

Shareholders have a right to inspect the company's books and records or sue the corporation for misdeeds of the directors and officers, for example. Common shareholders are also entitled to vote on major corporate matters, such as who sits on the board of directors and whether a proposed merger should go through. Shareholders also have the right to attend the corporation's annual meeting to learn about the company's performance, or listen to the meeting via conference call.

History and development of entrepreneurial law in the RK