The Supreme court of the Russian Federation: it is impossible to provide advance payment in the additional agreement to the state contract when it is already executed

23 January 2020, Thursday

Following the results of the electronic auction, the parties signed a contract for construction work. During its execution, the parties signed an additional agreement in which they fixed the advance payment. It was transferred to the contractor's account.

The Supervisory authority considered the additional agreement illegal and demanded to return the advance, as well as to collect interest for using other people's money.

The courts declared the document invalid: the additional agreement changes the essential conditions for payment of works under the contract. However, they refused to refund the amount paid, since the contract was executed and its price did not change.

The contractor was charged interest for using other people's money. Payment of the advance payment for the work was not provided for in the contract terms initially. The fact that the parties signed the additional agreement violates the requirements of the legislation on the contract system. The transaction was declared void.

The Supreme court did not review the case.

Document: Definition of the Supreme court of the Russian Federation of 30.12.2019 N 306-ES19-25198

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