Legislative Framework
1. What domestic legislation and international rules apply to a sale of goods contract in your jurisdiction? Are standard international contractual terms commonly used?
Domestic Legislation
The main domestic legislation that applies to sale of goods contracts is the:
The Law on State Assistance to Small Entrepreneurship No. 673-IQ dated 4 June 1999 aims to guarantee the right to freely engage in entrepreneurial and other types of economic activities. It sets out the forms and methods of state support for small businesses.
The Agency for Small and Medium Business Development can also take the necessary measures to resolve disputes involving entrepreneurs through out-of-court mediation.
The Law on Mediation No. 1555-VQ was adopted on 29 March 2019 and came into full force on 1 July 2021. This law requires parties to commercial, family, and labour disputes to attend mandatory preliminary mediation before going to court.
The Decree of the President of the Republic of Azerbaijan "On deepening reforms in the judicial system" dated 3 April 2019, and the Law on Mediation, established a working group for the creation of a Mediation Council, with the support of the EU Delegation to Azerbaijan. The Mediation Council, a non-profit legal entity that provides mediation services, was established on 12 February 2020 and registered with the Ministry of Justice on 16 February 2020.
Authors: Gumru Eyvazova, Senior Associate; Narmin Abbasova, Junior Associate of GRATA International Azerbaijan.