Civil Law Substantive and Procedural

1.      The client entered in the debtor position (together with her partner) the loan agreement, on the basis of which she acquired (together with her partner) a loan to purchase a car. They bought a car. In a written purchase agreement, however, there was only her partner who exclusively uses the car mentioned on the position of the buyer.

Questions and tasks:

a)     Was the client’s co-ownership to the car established?

b)     What would you advise the client in a situation when she broke up with her partner and the partner does not intend to borrow the car or to pay anything to the client, claiming he has paid for the repayment?

c)      What would you advise the client in a situation when her partner does no longer repay the bank loan?

d)     Would the situation be changed by the fact that it was not a loan, but a leasing and a relationship with the leasing company?

a)     Yes, the co-ownership to an ideal half of the car has arisen, because it was the client’s money and her partner, who both bought car.

b)     With regards to existing ownership, the use of the thing may be requested (in the range of co-ownership share – e.g. every other day). Provided the partner of the client does not allow the use of the thing, there is a possibility (besides the possibility of seeking compensation) to agree or to demand annulment of ownership and its settlement through the court. The client would gain some money, but the question of repayment of the loan is probably more important after the breakup. The client should opt out from the obligation to repay the loan and should not rely on repaying the loan by her partner.

c)      In this case, it would be better to recommend the client to repay penalties because the credit contracts are usually strict, and the client might as a result (especially after the trial) pay even more. She might ask to use the thing, to return it or enforce the thing from the partner what she paid for.

d)     Yes, in case of lease, the car is in the time of repayment owned by the leasing company, so there is the threat of confiscation of the car. This should be taken into account when considering the benefits of default – whether the client repays the loan, the partner or both, or in what part the loan is repaid.

2.      The client borrowed his neighbour the amount of 20,000 CZK. As a proof of provided money his neighbour signed a bill of debt. The neighbour, however, fell into arrears. The client appealed the neighbour to repay the debt, but the neighbour said that he does not have money at the moment.

Questions and tasks:

a)      Advise the client (i.e. the lender) to resolve the situation – how can he prove existing liability in civil proceedings?

b)      What obligations arise to the debtor if in a delay in payment of a monetary obligation?

c)      Could the client solve the recovery of debts by a complaint?

d)      Would the situation be changed if the debtor (neighbour) were married?

3.      The client purchased together with his brother a cottage. Each of the buyers paid half of the purchase price. Although, client’s brother was involved in the purchase agreement as the second buyer, but between the brothers there was verbally agreed that the cottage will be used only by the client who should have, once he saves money, purchased the half of the cottage from his brother, thereby he would acquire exclusive ownership of the cottage. Brother’s client, however as the time went by, changed his mind and now wants to sell the half of the cottage and claims to use the cottage due to his ownership of the cottage.

Questions and tasks:

a)     Who was in the example above recorded in the land register as the owner of the cottage? Could the client achieve exclusive ownership rights?

b)     Would the situation be changed if an agreement about who will use the cottage was concluded in writing? How should the client proceed?

c)      What all is recorded in the land register? What can we find in the title deed?

d)     What rights and obligations result for the co-owner of a real estate?

4.      The client has sole ownership of a family house and a cottage. The client got divorced ten years ago and has been ill for a longer time. He has two children – an older son (18 years old) with his ex-wife and a younger daughter (4 years old) with his girlfriend, who currently resides with the client.

Questions and tasks:

a)     The client would like to leave his two properties after his death either to his girlfriend or (better) to the daughter. Advise him how to do this.

b)     What will the object of inheritance be in the mentioned case, if the client fails to do any act?

c)      If the client decided to write a will and asked about its essentials, what would you advise him?

d)     What would happen in the case the client has not been divorced yet?

a)     The client may donate both properties when alive, such as the cottage to his partner and the house to his daughter. This excludes these properties from the inheritance. It would be appropriate to establish the benefit for the client in donating a lifetime easement.

b)     It would be both real estates and all properties of the client, movable assets, financial claims, debts, shareholdings, intangible rights.

c)      There are basically three types of testaments: holographic, allograph and written in the form of a notarial record. Among the requirements of a will, there are a denotation that it is a testament, denotation of the testator, of the property that is referred by the will (it can also be all the property), denotation of the heirs or their share in the heritage, manifestation of his will which property should belong to whom after his death, date and signature.

d)     That would change the situation significantly, as if they were assets of the joint property of the husband and the wife who had to agree with donation.

5.      The client received a payment order from the district court, in which he was ordered to pay the claimed amount to the plaintiff or to file an opposition.

Questions and tasks:

a)     Make a proper opposition to the order (outline).

b)     What remedies against the first-instance administrative authority do you know?

c)      Which authority will decide on the proper legal remedy of the client?

d)     What are the implications of administrative decision – what is the legal force of the decision?