3. Extent of Performance

Contracts can be classified as either executed or executory, according to whether or not they have been completed. Many contracts are performed almost immediately; others require days, months, or years to complete. Many life insurance contracts are not completed for decades.

Executed contracts. An executed contract is one that has been fully performed. Both parties have done all they promised to do.

Executory contracts. An executory contract is one that has not been fully performed. Something as agreed upon remains to be done by one or both of the parties.

Unit 5. The system of arbitration courts in Russia

Exercise 30. Read and translate the text.

Аrbitration courts in the Russian Federation

In accordance with the Federal Constitutional Law “On the Judicial System of the Russian Federation” a uni­fied judicial system has been created in our country. This judicial system includes arbitration courts that en­joy the status of federal courts.

The arbitration courts in Russia administer justice by way of settling economic disputes and examining other cases referred to their competence by the Constitution of the Russian Federation, the Federal Constitutional Law “On the Arbitration Courts in the Russian Federation”, the Arbitration Procedural Code of the Russian Federation and by other federal laws adopted in compliance therewith.

In practice, arbitration courts are specialized courts which resolve property and commercial disputes be­tween economic agents. They also examine claims seeking invalidity of governmental acts allegedly violat­ing rights and legitimate interests of businessmen. Such claims include tax, land and other disputes arising out of administrative, financial and other legal relations. They also hear disputes with participation of foreign persons.

The system of arbitration courts in the Russian Federation

The system of arbitration courts is organizationally divided into four levels.

The first level is made up of the federal arbitration courts of the subjects of the Russian Federation. They comprise the arbitration courts of republics, territories, regions, cites of federal significance, autono­mous areas and autonomous regions. They hear cases as courts of the first instance. There are 82 first in­stance arbitration courts.

The second level is represented by arbitration appellate courts. Under the Federal constitutional law No. 2-FCZ of 25.03.2004 “On Introducing Amendments and Addenda into the Federal Constitutional Law on Arbitration Courts in the Russian Federation”, 20 such courts were formed by the end of 2005. The arbitration appellate courts fully reexamine cases on appeals against the decisions that have passed by the first instance courts but have not yet come into legal force.

The third level is formed by 10 federal district arbitration courts, each of which functions as a court of cassation with regard to a group of arbitration courts making up one court circuit. These courts as cassation instance in their districts check the legality of the decisions passed by arbitration courts and having entered into legal force, from the viewpoint of correctness of the application of the norms of substantive and proce­dural law.

The fourth level is represented by the Supreme Arbitration Court of the Russian Federation, that is the superior judicial body for deciding commercial disputes, and other cases handled by the arbitration courts, it supervises their activity and issues explanations on matters of judicial practice.

The internal procedure of the activity of the arbitration courts and interrelations among such courts are regulated by the Arbitration Courts Rules of procedure, adopted by the Supreme Arbitration Court of the Russian Federation, which are binding upon all lower arbitration courts. The structure of the arbitration courts at different levels is determined by their functions and the case-flow.

The federal district arbitration courts comprise the presidium of the federal district arbitration court, a judicial collegium for the examination of disputes arising from civil and other legal relations and a judicial collegium for the examination of disputes arising from administrative legal relations.

The arbitration courts of the subjects of the Russian Federation comprise the presidium and judicial panels, some judicial collegia may also be formed. The presidiums of the all arbitration courts of the Russian Fed­eration approve, upon presentation by their chairmen, members of the judicial collegia and chairmen of the judicial panels of the relevant courts, they also consider other questions relating to the work organization of the courts and judicial practice.

Presently, the arbitration courts in Russia examine more than one million cases a year. These cases deal in particular with disputes concerning sales contracts, property, taxes and evaluation of acts of taxation bod­ies, insolvency (bankruptcy), loan contracts, insurance, legal acts of state authorities and other bodies as well as many others.

Тhe main tasks of the arbitration courts are protection of the violated or disputed rights and legitimate interests of enterprises, offices, organizations and private citizens in the sphere of entrepreneurial and other economic activity, as well as participation in the enhancement of legality and in delict prevention in this area.

The activity of the arbitration courts in the Russian Federation is based on the principles of legality, inde­pendence of judges, the equality of organizations and individuals before law and court, adversary character and legal equality of parties, the openness of hearings, etc.

The binding character of execution of the judicial decisions passed by the arbitration courts and having entered into force, is of great importance for their realization. The failure to execute judicial decisions, reso­lutions and rulings handed down by arbitration courts is regarded as contempt of court and entails liability envisaged by the law.

The arbitration courts of the Russian Federation during the period of thirteen years have heard about six and a half million cases. The caseload for the judges has grown up as a consequence of the increasing volume of work exercised by the arbitration courts. It is equal now to 55 cases per month for a judge.