Law and Compliance in the Czech Republic
- General Observation
- You must state precisely the obligations of the vendor and the buyer, subject of the contract and price as a fundamental proprieties of the contract. It's better to precise the transfer of the property law to a buyer and place of handover too.
- Law Applicable to the Contract
Commercial code (Act No. 213/1991 Coll.) and Civil code (Act No 40/1964 Coll.).
Czech Republic is a signatory to the Vienna Convention on International Contracts.
- Advisable Incoterms
- Choose FOB or CIF, or more. Avoid EXW if you do not want to be involved in organizing domestic transport in Czech Republic.
- Language of Domestic Contract
- The contract could be written in Czech or in the language of the second contract party. It depens on the agreement of both participants. It is possibile to use other international language too, but both parties must agree.
- Other Laws Which Can Be Used in Domestic Contracts
- It is recommended to state ahead the law which will be used. It is better to choose some international law system which is accesible and known.
Legal Framework of Business
Equity of Judgments
- Independence of Justice
- Equal Treatment of Nationals and Foreigners
- The Language of Justice
- Recourse to an Interpreter
- Legal Similarities
Czech Republic being a member of the European Union, the national law in the country needs to comply with the conditions of the Community legislation. Czech Republic has not accepted compulsory ICJ jurisdiction.
- Principial source of the law is a Constitution of the Czech republic with the Charter of Fundamental Rights and Basic Freedoms which is based on civil law system originating from Austro-Hungarian codes.
- All international agreements adopted by czech parlament take priority over national legislation.
- Written Codes
- Findings of the Constitutional Court
The Different Legal Codes
|Foundation of the state, rights of individuals||Constitution of the Czech Republic (Act No. 1/1993 Coll.)
|Civil law, rights of possession||Civil code (Act No 40/1964 Coll.)|
|Company law, corporate status||Commercial code (Act No. 213/1991 Coll.)|
|Labour law||Labor Codel (Law # 3262/2006 Coll.)|
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|The Constitutional Court||The Court does not form part of the system of ordinary courts. The competencies are given by the Constitution. The main objective is to protect basic rights and freedoms. It has also some competencies concerning the electotal law and consideration of the accordance of international treates with the Constitution.|
|The Supreme Court||The highest judicial authority both in civil and criminal law with the exception of the matters concerning the powers of the Constitutional Court. The Supreme Court hears, in particular, extraordinary means of remedy and is responsible for uniformity of judicial practice.|
|The Supreme Administrative Court||The highest judicial authority in matters falling within the competence of administrative courts. The task is to provide protection to individual (subjective) public rights of natural and legal persons. An additional task is to ensure the unity and legality of the decisional practice of regional courts and administrative authorities.|
|2 High Courts in Prague and in Olomouc||Territorial jurisdiction of 2 main regions Bohemia (Prague) and Moravia (Olomouc). 2nd instance.|
|8 Regional Courts||The civil and criminal proceedings are governed by the "2nd instance“ principle. This means that if a case is decided by a first instance court, usually a district court, the appeal against such first instance judgement is heard and decided by a second instance court whose decision cannot be challenged by any ordinary means of remedy. The law stipulates specific cases when a regional court acts as a first instance court and in this event a high court acts as second instance (e.g. serious crime cases or most of commercial cases).|
|86 District Courts||Territorial jurisdiction. 1st instance|
|Supreme Public Prosecutor s Office||Represents public prosecution in the criminal proceedings. It performs also other duties where specified by law.|
|2 High Public Prosecutor's Offices in Prague and in Olomouc||Territorial prosecution. 2nd instance|
|86 Regional and District Prosecutor's Offices||Territorial prosecution. 1st instance|
- Justices of the Constitutional Court of the Czech Republic
- Court consist of 15 Justices appointed by the President with the consent of the Senate for the period of 10 years
- Court judges
- Hierarchy is done by the hierarchy of the Courts, Judges are appointed to their office for an unlimited term by the President of the Republic upon nominations submitted by the Minister of Justic.
- Public Prosecutors
- Hierarchy is done by the hierarchy of the Prosecutor s Offices. Supreme Public Prosecutor is appointed by Government on the proposal from the Minister of Justice. Lower Public Prosecutors are appointed by the Minister of Justice.
- Lawyers, practicing attorneys
- Are associated in the Czech Bar Association. General sphere of action.
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