CONTRACTOR’S OBLIGATIONS UNDER A CONTRACT FOR EXPLORATION WORK: UPDATE TO ARTICLE 890 OF THE CIVIL CODE OF UKRAINE

Abstract

The article analyzes the obligations of a contractor under a contract for exploration work, as set forth in § 4 of Chapter 61 of the Civil Code of Ukraine, in light of the recent amendments to Ukrainian civil legislation. A number of author’s proposals are made to amend Articles 889 and 890 of the Civil Code, based on the understanding that the contractor’s activities in the field of exploration work are associated with production hazards and risks to the subsequent safe use of the results.Given that the rights and obligations of the contractor in the legal relations under consideration may be enshrined both at the legislative and contractual levels, it is proposed to classify them as follows: a) general, enshrined in § 1 of Chapter 61 of the Civil Code of Ukraine, for all types of contract agreements; b) special, enshrined in § 4 of Chapter 61 of the Civil Code of Ukraine, for parties to a contract agreement for exploration work.It is proposed to classify the requirements for the quality of exploration work and its results as follows: a) requirements determined at the discretion of the parties (contained in the technical specifications for exploration work, which become part of the contract from the moment they are accepted by the contractor and specify the subject matter of the contract); b) requirements that are mandatory in accordance with civil legislation, including state building codes and regulations.The legal significance of the act of acceptance and transfer of technical documentation, which has special legal force, as it is proof of the contractor’s fulfillment of its contractual obligations, has been analyzed. It has been established that if the parties have agreed on the possibility of deviating from the technical tasks or provisions of other regulatory and technical documentation, but have not specified a special provision regarding the customer’s consent to pay extra for higher quality work, the contractor in this case can only claim the amount of income provided for in the contract.Proposed author’s revisions to Articles 890 of the Civil Code of Ukraine.