The New Civil Code, i.e. Act No. 89/2012 Coll., the Civil Code (hereinafter “NCC”) came into effect on 1 January 2014. The NCC has had a major impact on the entire sphere of private law, not excluding labour law, which is largely regulated by Act No. 262/2006 Coll., the Labour Code (hereinafter “LC”). In the…

The New Civil Code (Act No. 89/2012 Coll., hereinafter “NCC”) entered into force on 1 January 2014. The NCC introduces several new institutes to the Czech legal environment, and one of these is a so-called family business. The regulations for family businesses are located in provisions § 700 – 707 of the NCC. This article…

Although largely unknown, the “European small claims procedure” (hereinafter the “Procedure“) has existed in the EU for some time. The Procedure is adjusted by Regulation (EC) No 861/2007 of the European Parliament and of the Council (hereinafter the “Regulation“) and provides an alternative for common dispute procedure in compliance with the Civil Procedure Act. The…

Contractual fines are one of the most frequently used methods of ensuring that commitments are met, whereas the fine itself depends on an agreement between the parties. In case of disputes regarding the payment of a contractual fine, the Civil Code (Act No. 513/1991 Coll., § 301) allowed courts to reduce (moderate) unreasonably large contractual…

Many have certainly witnessed that the New Civil Code (Act No. 89/2012 Coll., hereinafter “NCC”) has entered into effect on 1 January 2014, leading to significant changes in the area of personal rights. However, not everyone has noticed that the real property transfer tax has also changed. The name of the tax itself is the…

Debt clearance is one of the ways of resolving a debtor’s insolvency, which can take one of two forms. The first involves the one-off settlement of the debtor’s debts by realising the debtor’s assets and dividing the proceeds between creditors, which is in essence similar to bankruptcy. The second option is a repayment calendar, under…

Once again, the Supreme Court of the Czech Republic recently ruled on the issue of the duty to act with due and reasonable care. Its conclusions on this matter are more important today than ever before, with the approaching entry of the New Civil Code (Act No. 89/2012 Coll., hereinafter “NCC”) into force. Under Section…

On 24 October 2013, the Court of Justice of the European Union issued a judgement in case no. C‑22/12, Katarína Haasová versus Rastislav Petrík and Blanka Holingová, on the question of whether the payment of compensation for non-material damage caused by the death of a loved one in the use of a motor vehicle, is…

Limited liability companies (hereinafter “LLC”) are the most widely used form of business company in the Czech Republic. They are particularly popular with small and medium-sized businesses. This relatively well known legislation in the business community will undergo a series of changes of varying degrees of significance when Act No. 89/2012 Coll., the New Civil…

Interest for late payment is an institute widely used in commercial and civil law. The debtor must pay the creditor interest for late payment if it fails to pay its financial debt duly and on time, i.e. if it does not fully pay the debt by the due date. The amount of statutory interest for…