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Law No. 178 Of 30 July 1934 To Regulate Consignment Contract

Original Language Title:  LEGE nr. 178 din 30 iulie 1934 pentru reglementarea contractului de consignaţie

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LEGE no. 178 178 of 30 July 1934 for the regulation of the consignment contract
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR of July 30, 1934



+ Article 1 The consignment contract is the convention by which one of the parties, called a consignor, entrusts to the other party, called consignor, goods or movable objects to sell them to the consignor. The goods entrusted to the consignor may be handed over to him, all at once or gradually, by successive notes or invoices, issued on the basis of the contract. + Article 2 The contract of consignment, as well as any convention regarding the modification, transformation or abolition of it, can be proved only by written test. + Article 3 The consignment contract does not convey to the consignor the property of the goods entrusted to him. He is revocable by the consignor at any time, even if it has been concluded for a fixed term, out of the stipulation contrary in the act. The consignor retains all rights to the goods entrusted and continues to be able to dispose of them at any time, except for the contrarian stipulation in the contract. + Article 4 The consignor may resume and raise, however, even if the contract has been concluded for a fixed term, all or part of the goods entrusted to the consignor, without the need for notice. The resumption of goods will be able to be made by the consignant by way of the presidential ordinance, in accordance with 66 bis of the civil procedure code of the Old Kingdom. The presidential order will be given without citing the parties, if the consignment contract is authentic; with the citation of the parties if the contract is under private signature. In this latter case the deadline for summoning the parties will be fixed for the day after receipt of the request. The consignor has the right to raise any goods, in this way, even if a notice clause was stipulated in the contract. + Article 5 The consignor is obliged to take all measures of a good trader, for the preservation in good condition of the goods entrusted to him. He responds to any lack, loss or deterioration, arising from his fault or his agents and prepuses. + Article 6 The consignor is obliged to provide the goods entrusted to him, to a company accepted by the consignor. The insurance will be made by the consignor for a value at least equal to the price of the goods, provided for in the contract or in the respective notes and invoices and so that all risks are covered, starting from the moment of dispatch of the goods by consignor. The consignor is also obliged to regularly pay insurance premiums. In case of non-insurance or cancellation of insurance due to the term non-payment of premiums, the consignor considers himself, of right, at fault and will respond to any shortages or damage caused by fortuit or force majeure. Insurance of any kind, contracted by the consignor, with regard to the goods handed over in consignment, is considered to be full right as concluded in favour of the consignor, with the condition that it notifies the insurer the existence of the consignment, before payment of compensation. + Article 7 In order to identify the goods given in the consignment, the consignor is obliged to keep the goods received in their original packaging and preserve intact the labels, marks and any other external signs, as applied by the consignor. If the consignment contract provides for a certain place of storage or storage of the goods entrusted, the consignor is stopped to move or store those goods in another place. When the convention does not provide for a particular place of storage, the consignor may store or store the goods entrusted to him, only in premises whose use he has on the basis of acts written with the date required or covered by the Financial Administration, being obliged to make known immediately to the consignor, the place of storage of the goods and any move of them. + Article 8 The consignor is in the right to control and verify, at any time, the goods entrusted to the consignor and to proceed with their inventory. In order to exercise this right, the consignor will obtain, however, on request, the presidential ordinance, according to the provisions of art. 4 4 of this law. + Article 9 The consignor is obliged to communicate in writing to the consignor the apparent or hidden vitions of the goods entrusted. In the case of non-communication, the goods shall be deemed to have been received by the consignor in good condition. The communication of appearances will be made within two days, whenever a longer time would not be necessary, because of the conditions in which the goods sent are located. The communication of the hidden vices will be made within two days of their discovery. Once the above expired deadlines, the consignor can no longer be received to invoke his exoneration, on the basis of these vites. + Article 10 All expenses of preservation and sale of goods handed over, in consignment, concern the consignor, except the stipulations to the contrary. + Article 11 The consignor may not sell or alienate the goods entrusted to him in consignment except in the conditions provided for in the contract. The consignor may, unilaterally, modify the conditions of sale, if the contract does not provide otherwise. The changes are mandatory for the consignor, from the moment they will be brought to his attention in writing. In the silence of the contract on the conditions of sale and in the absence of written provision from the consignor, the consignor cannot sell the goods entrusted to him, except for cash and at the current prices of the market. + Article 12 If the contract did not provide for the retribution or the benefit of the consignor, it will be entitled only to the overlaps that will obtain from the sale, that is to say the difference between the prices actually made from the sales made and the prices provided in the consignment contract or the notes, invoices, and the provisions of the consignor. If neither by contract, nor by the notes, invoices or provisions of the consignor, no price has been provided, and the sale will be made by the consignor at the current price, according to art. 11, para. 3, the consignor will be able to address justice for fixing his retribution. + Article 13 In case of sale on credit of the goods given in consignment, the claim for the price due belongs to the consignor. Compared to debtors and third parties, the consignor will be able to make, validly, any acts on the claim and in particular he will be able to receive payment, watch his collection and take any insurance measures. On the first request of the consignor, the consignor is obliged to notify the debtor the origin and nature of the claim. From the moment of communication of this notification the consignor will no longer be able to make any valid act regarding that claim, this right belonging only to the consignor. Before the notification or in case of refusal on the part of the consignor to notify, the consignor will be able to pay any amount due in the hands of the debtors, without bail. + Article 14 If the contract is awarded to the consignor the right to make sales on credit, without specifying the conditions, the consignor will be able to grant credits only to the traders in that branch on terms of maximum 90 days, based on bills accepted or promissory notes. + Article 15 The consignor is at any time in law to prohibit the consignor of sales on credit to certain companies or specific persons determined, even if by contract the consignor was empowered to make sales on credit, with or without restrictions. The stop is mandatory for the consignor from the moment it will be brought to his attention in writing. + Article 16 In the absence of stipulation to the contrary, the consignor is jointly and severally liable to the consignor, to the term payment of the price of the goods sold by him on credit. + Article 17 The consignor is obliged to account for all the operations relating to the goods entrusted to him in consignment, so that their control and verification can be easily done. The consignment contract may stipulate the obligation for the consignor to hold one or more special registers for the passage of operations relating to the goods entrusted in the consignment. Special registers for consignment operations targeted by the court, will be held according to the rules provided by the trade code of the old Kingdom. If the contract provides for the obligation for the consignor to keep special registers, he is obliged to present, at any time these registers at the first request of the consignor. In order to proceed with the examination and verification of special registers of consignment, the consignor is in the right to obtain the presidential ordinance in the manner provided in art. 4 4 of this law. + Article 18 The consignor is obliged to notify the consignor, at the times stipulated in the contract, of all the wineries made by him from the goods entrusted to him in consignment, the notice will have to show, precisely, the goods sold for cash and those sold on credit, indicating for the latter the exact name and address of each debtor, the amount due, the payment term granted and the bills or the guarantees received. In case of silence of the contract, the consignor is obliged to make the sale notification at the latest at the end of each week for all the operations of the respective week. + Article 19 The consignor is obliged to submit and hand over to the consignor, at the times stipulated in the contract, the price of all goods sold by him for cash and all the amounts resulting from the collection of receivables from the sale of these goods, until the competition of their prices, as well as the bills and guarantees received from the buyer. If the contract does not provide for the period of remission, the consignor is obliged to hand over to the consignor, at the latest at the end of each week, all the amounts of money, bills and guarantees above provided. Until their remission, the consignor cannot make any provision on the amounts of money or the values resulting from the sale of his goods in consignment, being simply their depositary. + Article 20 The consignor may not exercise against the consignor any right of retention, nor on the goods entrusted to him in consignment, nor on the amounts or values resulting from the sale of these goods. + Article 21 In case of bankruptcy of the consignor, the consignor will be able to claim the goods entrusted or their price that had not been paid in money, or otherwise. + Article 22 The parties may agree that the consignor must be obliged to hand over to the consignor the bills or any other guarantees to ensure the value of the goods entrusted and to the exact fulfilment of the contractual duties, without thereby changing the characters and effects of the consignment contract. In case of lifting of the goods entrusted, the consignor may keep the bills and other guarantees given to him, in order to ensure the payment of the price of the goods that will be found to have been sold or missing, of the amounts collected but not issued by Consignor, how and damage caused. + Article 23 It will be punished with imprisonment from 2 months to 2 years and with a fine of 10 000-100 000 lei, without being able to grant mitigating circumstances, the consignor: 1. Which shall itself the goods entrusted with the consignment, or shall instruct them otherwise or in other conditions than those provided for in the contract, or shall not return them to the consignor upon request. 2. Which shall not send to the consignor the amounts of money, bills or values collected or received by him, as the price of the goods sold, in the manner shown in art. 19 19 of this law. 3. Which at the request of the consignor will not immediately make the notifications provided in art. 13 13, al. 3 3 of this law. + Article 24 It will be punished with imprisonment from one month to one year, without being able to grant mitigating circumstances, the consignor: 1. Which, in bad faith, will not make the consignor the notices provided in art. 18 18 of this law. The consignor who, within three days off from the written request of the consignor, did not notify him of the above-mentioned notice. 2. Which, knowingly, will make the consignor non-accurate notices regarding the situation of the sales and receipts made by him 3. Which shall not notify the consignor of any pursuit directed at the goods entrusted to him in consignment or on the values resulting from their sale, as soon as he has been aware of those consequences. 4. Which will remove, destroy, damage or cause to remove, destroy or damage the packaging, labels, marks or any other external signs applied by the consignor on the goods entrusted in the consignment. 5. Which shall store or move the goods entrusted to him in consignment against the provisions of the contract or art. 7 7 of this law. 6. Which shall not make available to the consignor, at its request, the special consignment registers if the contract provides for the keeping of such registers. + Article 25 If the offences provided for by the preceding articles were to be enjoyed by a legal person, the above penalties will apply to the legal representatives and the guilty preppers. Particularly the punishment imposed on representatives and prepuses, the legal person is jointly and severally responsible for prepusii or representatives, for the repair of damages caused to the consignor and will be punished with a civil fine of 10 000-100 000 lei. + Article 26 The pasures and tolerances granted to the consignor by the consignor, for the surrender of the amounts or values, or for the return of goods, as well as the receipt of bills or other guarantees by the consignors, do not remove the application of art. 23 23-25 of this law. + Article 27 (Amended on 1 April 1936). The consignment contract is subject to a proportional tax of 0,75% on the amount of the credit in goods fixed by the parties in the act regardless of the value of the quantities of goods that are surrendered during the year, that is, the duration of the year. The proportional tax is 1.50% for contracts concluded on a longer term or without a fixed duration. Those who will not pay the tax on the formation of the act will be punished besides paying the tax and a fine equal to three times the tax due. The finding of contraventions and remedies, are those provided for in the stamp law. + Article 28 Art. 66 bis of the civil procedure of the old Kingdom extends to the united provinces, as regards the application of this law. + Article 29 This law applies both to consignment contracts that will end after its publication in the Official Gazette, as well as the consignment contracts that on the date of publication, are in the process of execution, for all future relations between consignor and consignor. + Article 30 Any provisions contrary to this law shall be repealed. --------------------