Supreme Court: The gross disparity of mutual fulfilment will be a threshold of roughly half of the mutual fulfilment (range 45 to 55%). This Threshold represents the so-called. abnormal harm (laesio enormis)
The Supreme Court of the Czech Republic in its judgement in Case No. 33 Cdo 42/2021, dated 25. 1. 2022 commented on the legal regulation of abnormal harm (laesio enormis) under Section 1793 of the Civil Code, or on the threshold representing abnormal harm. According to the Supreme Court, in the context of the current legislation, which does […]
Legal due diligence of public permits for an office complex in Prague
The law firm ACHOUR & PARTNERS was commissioned by a major investor to conduct a comprehensive legal due diligence review of public permits relating to a large office complex in the centre of Prague. The provision of legal services includes the review of all issued public permits related to the construction of the complex, including […]
Supreme Court: Fair settlement required for former cooperative members based on financial statements
In a decision on 25 August 2021, the Czech Supreme Court addressed a cooperative’s freedom to decide on the settlement due to a member whose membership ends during the cooperative’s lifetime (no. 27 Cdo 3823/2020). These comments refer to cases where the settlement should be calculated based on corporate or cooperative accounting records. According to […]
Interpreting a Shareholder’s Agreement under the Commercial Code
In its judgment on 16 March 2021 (Case No. 27 Cdo 1873/2019), the Czech Supreme Court commented on shareholders’ duties under a shareholders’ agreement in legal conditions covered by Act No. 513/1991 Coll., the Commercial Code (the “Commercial Code”) and Act No. 40/1964 Coll., the Civil Code (the “Civil Code”). According to the Supreme Court, […]
European Commission confirms Spanish state aid grant was unlawful
In Decision SA.28599 on 10 June 2021, the European Commission (the “Commission”) confirmed that grants made to terrestrial platform operators between 2005 and 2008 to digitise and expand a TV network in remote parts of Spain had breached EU rules on state aid. Spain was therefore ordered to ensure the recovery of these unlawful grants […]
MP’s private liability for an unjustifiable infringement of personal rights
In a decision on 15 April 2020 (sp. zn. 25 Cdo 2386/2019), the Czech Supreme Court dealt with the legal question of whether the parliamentary immunity enshrined under Article 27 (2) of Constitutional Law No. 1/1993 Coll., the Czech Constitution, should prevent the court from deciding on a civil action in which an MP sought […]
How should courts determine the content of a foreign law?
In a judgment on 30 December 2019 (file no. 29 ICdo 96/2016), the Czech Supreme Court considered the extent of the inquiry needed to understand a foreign law. According to the Supreme Court, as a general principle, applying a foreign law should lead to the same result as if the law were being applied by […]
Czech Supreme Court rules on the distinction between a leasehold and a rental
In a decision on 29 January 2020 (file no. 26 Cdo 3721/2019), the Czech Supreme Court considered the distinction between a leasehold and a rental. While the essence of a rental is the landlord’s provision of the leased object for temporary use by the tenant, who undertakes to pay rent for this use, under a […]
Invalidity of alternative method for disposing of pledged collateral
In a decision (file no. 21 Cdo 1961/2019) on 22 December 2019, the Czech Supreme Court confirmed the invalidity of an alternative arrangement for disposing of pledged collateral. Any method for disposing of pledged collateral other than by a public auction or court sale must be negotiated in an agreement between the pledgee (pledge creditor) […]
Setting the price for work in a budget
According to a Czech Supreme Court decision (file no. 33 CDO 989 / 2019) on 15 October 2019, one way to determine the price for work agreed on by the parties is to refer to the budget which was part of the contract or was provided by the contractor to the client before the contract […]