Achour & Partners advises on the creation of a joint venture
Achour & Partners is advising a major contracting authority in the transport sector on the creation of a landmark joint venture. The venture will have the purpose of developing sites in Prague that are affected by the construction of transport infrastructure. As part of the transaction, we are developing a joint venture structure along with […]
David Mašek joins Czech Bar Association disciplinary tribunal
Achour & Partners attorney David Mašek was elected to the Czech Bar Association’s disciplinary tribunal at the seventh CBA assembly held on September 22, 2017. Established under the Advocacy Act (Act No. 85/96 Coll. as amended), the CBA disciplinary tribunal consists of members who are elected at the CBA assembly. Tribunal decisions are made through […]
Can a contractual penalty be tied to contractual withdrawal?
Under Czech Supreme Court judgment File No. 23 Cdo 3894/2015 handed down on June 7, 2017, a contractual penalty cannot be based on a breach of contract combined with the subsequent exercise of contractual withdrawal rights. Such an arrangement would belie the legal definition of contractual penalty under Section 544 of the Civil Code, i.e. […]
Buildings on the land of third parties
In a ruling (File No. 22 Cdo 828/2017) handed down on June 8, 2017, the Czech Supreme Court considered buildings that were constructed on the land of third parties, i.e. on land that does not belong to the building owner. The Court focused on cases where the building was erected entirely on the land of […]
Is the contractual penalty proportionate?
In a ruling on June 28, 2017 (File No. 33 Cdo 3428/2016), the Supreme Court considered the proportionality of contractual penalties. The Court found that the total amount of a sanction could not be seen as proof of its disproportionality if it resulted from an extended delay and the application of an otherwise proportionate daily […]
Which court has jurisdiction over disputes about the transfer of corporate interests?
Accompanying the new Civil Code (Act No. 89/2012 Coll.), which took effect on January 1, 2014, there have been significant changes to the Civil Procedure Code (Act No.99/1963 Coll.) in the Czech Republic. These changes affect Article 9, which regulates the issues over which different courts have jurisdiction, i.e. whether cases are heard and decided […]
The Constitutional Court assesses forfeited collateral
Setting a property’s purchase price off against a claim by a buyer does not automatically make a transaction void, and not all deals will be invalid because of the mere presence of a forfeited claim. In a ruling on July 25, 2017 (File No. I. ÚS 34/17), the Constitutional Court held that when assessing these […]
New Act on Compensation for Competition-related Harm
On September 1, 2017, a new law took effect. Known as the Act on Compensation for Competition-related Harm, the law has the extended title the Act on Compensation-related Harm and on Changes to the Protection of Competition Act (Act No. 143/2001 Coll.) and Statutory Amendments, as amended. On August 18, 2017, it was included in […]
The tax base for real estate transfer tax
In a judgment on June 28, 2017 (File no. 4 Afs 88/2017), the Czech Supreme Administrative Court diverged from the interpretation given in the explanatory notes for Senate Regulation no. 340/2013 Coll., on Real Estate Transfer Tax (the "Regulation"). Instead, the Court found that the tax base for real estate transfer tax (under Art. 11 (1) (a) of […]
Supreme Administrative Court holds that VAT is not included in the base for calculating real estate tax
In a judgment on June 28, 2017 (file no. 4 Afs 88/2017), the Supreme Administrative Court considered whether VAT should be included in the base for calculating real estate transfer tax. In 2015, the municipality of Střelské Hoštice (the "Municipality") entered into a sale agreement for a set purchase price including VAT. To cover the […]