THE LIABILITY OF THE PARTY ACQUIRING A FARM FOR OBLIGATIONS RELATING TO THE OPERATION OF A FARM IN VIEW OF JUDICIAL DECISIONS
Journal Title: Annuals of the Administration and Law - Year 2016, Vol 1, Issue 0
Abstract
Acquiring a farm is the source of joint and several liability of the alienating party and of the acquiring party. Upon the acquisition of the farm, the acquiring party accedes to debts arising from the obligations relating to the operation of a farm (Article 554 of the Polish Civil Code). The principle of statutory accession to debt by a party acquiring a farm and his joint and several liability together with the alienating party apply to obligations relating to the operation of a farm. Those are the obligations that would not have arisen had the alienating party not operated a farm. At the same time the legislator did not exclude any category of obligations” when using the term “obligations relating to the operation of an enterprise, a farm” which is clearly demonstrated in the judicial decisions. The views presented in judicial decisions seem to imply that a farm does not need to be transferred by way of a single agreement as the terms of legal protection for the alienating party’s creditors apply both when the farm is acquired by way of a single acquisition agreement or as a result of several agreements that lead to the same economic effect. When using the term “obligations relating to the operation of an enterprise, a farm”, the legislator did not exclude any category of obligations from its scope.<br/><br/>
Authors and Affiliations
Katarzyna Czerwińska-Koral
Keywords
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