Mortgage agreement

Mortgage Law governs the mortgage, for the purpose of securing and collection of claims. A mortgage is a lien right on real estate, which empowers the creditor, in the event of the debtor’s failure to pay a matured debt, to request the collection of claim secured by the mortgage from the value of the real estate prior to the ordinary creditors and prior to junior mortgage creditors, regardless of who is in the possession of the real estate.

Mode of Institution and Types of Mortgage

A mortgage is instituted by registration in the competent real estate registry, on the basis of:

  • Agreement or a judicial settlement (contractual mortgage)
  • Mortgage deed (unilateral mortgage)
  • Statute (statutory mortgage)
  • Court decision (judicial mortgage).

The contractual mortgage rules apply mutatis mutandis to unilateral, statutory and judicial mortgage, unless otherwise provided by law. Continue reading Mortgage agreement

Contract on control and management

According to provisions of the Companies Act a contract on control and management shall be concluded in the case of forming an contractual group of companies. A contractual group of companies consists of a controlling company and one or more controlled companies that have entered into a contract on control and management.

A contract on control and management is regulated by the provisions of Articles from 554 to 566 of the Companies Act.

Concept, Conclusion, Amendments and Termination


A contract on control and management is a contract whereby a company grants the management and conduct of operations to another company.

If the companies making up a group based on equality in terms of Article 551 paragraph 2 item 3) of the Companies Act enter into a contract introducing uniform manner of management, such a contract is not be deemed to be a contract on control and management in terms of the Companies Act. Continue reading Contract on control and management

Reasons for termination of employment relation

According to the provisions of the Labour Law an employment relation shall be terminated:

  • after the expiry of the period it was concluded for
  • when an employee reaches the age of 65 and a minimum of 15 social insurance years, unless otherwise agreed between the employer and the employee
  • by an agreement between the employee and the employer
  • by notice of cancellation of employment contract by the employer or the employee
  • at the request of a parent or guardian of an employed minor under 18 years of age
  • in the event of death of the employed
  • in other cases specified by the law.

Employment relation of an employee shall terminate independently of his intent and the intent of the employer: