Compensation from a developer who despite a preliminary contract sells the property to another person
Residential real estate prices in Poland have been rising steadily for many years. A house or apartment promised to be built or sold just a few months earlier may now have a market price much higher than on the date of signing of the preliminary contract. This may tempt some developers to renege on the final contract and instead sell the unit to another purchaser at a higher price. In such a case, what relief can the frustrated buyer obtain against the developer?
Who has standing to sue in the case of a consortium, and does completion of contract performance preclude a claim for modification under Art. 357(1) of the Civil Code?
In the judgment of 24 July 2024 (case no. II CSKP 968/22), the Supreme Court of Poland ruled on doubts regarding legal standing to assert a demand for either contract modification or payment under Art. 3571 of the Civil Code in the event of an extraordinary change of circumstances (the rebus sic stantibus clause), on the part of a consortium of entities executing a public contract for a contracting authority. The court also commented on whether a claim under Art. 3571 can be made after the contract has been fully performed. This ruling is very important for contractual practice in Poland.
Facilitation of biogas plants: An overview of the most important changes in legislation
We devoted the third article in our series on biogas plants to administrative decisions and other requirements for implementation of biogas projects. In this article, we present the most significant legislative amendments concerning biogas plants that came into effect last year.
Beneficial owners: Which changes need to be reported to the central register
The Central Register of Beneficial Owners went into operation in Poland at the end of 2019. Since then, obligated entities defined in Art. 58 of the Anti-Money Laundering (AML) Act have had to verify whether there is an individual in their structure who can be considered an ultimate beneficial owner, and report this information to the Central Register of Beneficial Owners.
Goods and technologies for military use: licensing obligations
In Poland, manufacturing and trading in technologies and devices for military or police use is a strictly regulated economic activity requiring a licence. But simply obtaining a licence is not the end of contacts with regulators. Changes in corporate authorities and some changes in ownership require notification to the relevant authority. Failure to comply with the notification obligation may lead to restriction or even revocation of the licence.
Developing a biogas plant: From siting to operation from an environmental point of view
In the second article in our series on biogas plants, we discussed the requirements for classification of biogas plants during the development process. This time we will take a look at the obligations that must be performed before such an installation can start operating.
Two parties, one representative: Applying Art. 108 of the Civil Code to corporate representatives
In business practice, it is common for contracts to be entered into by companies in the same corporate group. And sometimes the same person sits on the management board of both companies. Can the same person represent both companies in the transaction—and in a sense enter into a contract with themselves?
Sports and television: How to reconcile profit with the right to information
This year’s huge sporting events—the recently concluded European football championship and the Summer Olympic Games in Paris—are a good opportunity to look at regulations for broadcasting major events. In this article, we write about the events covered by the regulations, the obligations imposed on broadcasters, and the sanctions for non-compliance.
The Foreign Subsidies Regulation in practice: First cases and first conclusions
Pursuant to the EU’s Foreign Subsidies Regulation (2022/2560), the European Commission may, at its own initiative, investigate any foreign subsidy covered by the regulation, in any sector of the economy, relying on information from all available sources. The Commission may also review foreign subsidies based on advance notification by the company, especially in the case of large concentrations and procurement procedures exceeding certain thresholds.
Employee stock ownership plans
Employee stock ownership plans (ESOPs) allow a select group of employees (usually management) to take an equity stake in the employer by purchasing shares at a nominal value or a value determined in the programme. These plans are implemented over a period of several years, and a condition for offering shares is the company’s achievement of certain financial targets specified in the plan.
Reports of the death of service contracts with workers are exaggerated
In the early years of my legal career, I came across a tax interpretation requested by a library wishing to determine the tax consequences of forgiving fines for overdue books. That was when I heard for the first time the advocacy rule of avoiding “the question too far.”
The development process for a biogas plant
Growth of agricultural biogas plants is an essential component of Poland’s energy transition. In the second article of our series on biogas plants, we present the most important aspects and pitfalls of the development process for these facilities.
