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Contract Law
The basic contract law of Kazakhstan is the Civil Code of 1995. The Code contains 405 Articles and covers all basic transactions and the formal requirements for their validity. The Kazakhstani law provides for some separation of business and non-business transactions. This separation is based on the nature of the legal entities or the activities of the individuals involved. Individuals and family units may act as entrepreneurs, in which case different rules or standards of care may apply to some transactions. Legal entities are classified as either commercial or non-profit organizations, and each classification has tax and other consequences.
The legal framework for contracts has no significant gaps or weaknesses, at least theoretically. Problems exist at implementation level and are related primarily to the capacity of the judiciary to handle complex commercial cases. Commercial arbitration in Kazakhstan is in nascent stage, but there are no legal obstacles for the parties to commercial contracts to agree on arbitration clauses in their contracts.
(Note: This information was taken from the Bankruptcy chapter of the 1999 Kazakhstan BizCLIR report. For more information, please see the report.)
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