Sale and Storage of Goods in Azerbaijan: Overview

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:

  • Constitution of the Republic of Azerbaijan dated 12 November 1995.
  • Civil Code of the Republic of Azerbaijan dated 29 December 1999, approved by Law No. 779-IG (Civil Code).
  • Law on International Private Law No. 889-IQ dated 6 June 2000 (Law on International Private Law).
  • Rules of trade, public catering, household and other services in the Republic of Azerbaijan, approved by decision of the Cabinet of Ministers of the Republic of Azerbaijan No. 94 dated 3 April 2014.
  • Law on Protection of Consumer Rights No. 1113 dated 19 September 1995 (Law on Protection of Consumer Rights).

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.

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Authors:  Gumru Eyvazova, Senior Associate; Narmin Abbasova, Junior Associate of GRATA International Azerbaijan.

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