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On the Legal Classification of Agreements Opposing Price Regulations

Publication at Faculty of Law |
2017

Abstract

This treatise takes into account that even in the most liberal economic system, the public power does not renounce its possible interference into economic life, regulation of prices is no exception. For the rule of law system, price control represents an exceptional measure and is accepted only under limited condition, conditional upon intense public interest.

The authors deal in this paper with issues connected with cases of contractual arrangements for the remuneration in situations where the agreed amount of consideration contradicts the regulated price. The analysis highlights the findings associated with changing regulations in the Czech law, which, over the many centuries, have tried almost all the possible approaches for a legislative solution to such conflicts.

The article specifically highlights the illogic of the rule we find in § 758 of the Commercial Code, according to which, any violation of price regulation (i.e. also in agreements on rates lower than minimally allowed) the price to be paid by the Parties, as permitted by the law, counts as the maximum price. The authors conclude that the best way how to solve this conflict is by maintaining the validity of that contract which included the arrangements for the court to change to the price so that it reflects the price regulations in place and which the court determines as fair.