Preliminary agreement and protocol of intentions in entrepreneurial activity

Abstract

Background. Proper implementation of business activity by a business entity requires a number of diverse legal conditions and contributory factors which provide it, and the combination of these conditions and factors enables the business entity to realize the principles of entrepreneurial activities, which were enshrined in the commercial code of Ukraine. In civil law and economic legislation that lay the Foundation for implementation of business activities by its members, there are still many controversial issues, particularly those that relate to the procedure of conclusion and execution of the various contracts. One of such treaties, the conclusion of which is fairly common in civil and commercial turnover, which raises many questions in practice, is the preliminary contract. A significant amount of litigations indicates the number of gaps in existing legislation, and determines the need and actuality of the study of legal issues in respect of preliminary contracts.
Analysis of recent research. Significant research on contracts is carried out by Ukrainian scientists O. A. Belianevych, V. E. Belianevych, O. V. Dzera, V. S. Shcherbina, N. S. Kuznetsova, I. V. Spasybo-Fateieva, etc.
Materials and methods. The norms of the Civil and Commercial codes of Ukraine, the achievements of well-known scientists in the field of civil and commercial law are used in the article. The formal-logical and formal legal methods are applied in the formulation of legal definitions associated with the concept and conclusion of the preliminary agreement and the Protocol of intentions.
The purpose of this article is to study the issues related to the concept and content of the preliminary agreement and the Protocol of intentions, the legal issues that arise at their conclusion.
The results of the study. The concept and characteristic signs of the preliminary agreement, the form of a preliminary treaty, the conditions that need to be coordinated are investigated; the legal issues associated with the non-conclusion of the main contract by the parties are reviewed. The legal content of the protocol of intentions is researched, the comparison of the legal structure of the preliminary agreement and the Protocol of intentions is made and the relevant legal conclusions are provided.
Conclusion. In the relations of the parties on the conclusion and execution of the preliminary contract of precision the following aspects can be provided: the securing of direct reference in article 635 of Civil code of Ukraine and article 182 of the commercial code of Ukraine the rules on that if the main contract is in writing and requires notarization, the preliminary agreement should also be notarized; the establishment of a longer period for conclusion of the basic agreement in article 182 of the commercial code of Ukraine that gives greater freedom to the parties in determining the relationship, securing the separate article in the Civil and commercial code on the status and the legal consequences of conclusion the protocol of intentions, a more detailed and reasonable regulation of this issue.