The purchase according to the Bulgarian law of obligations
With the conclusion of a purchase contract, the seller obligates himself to transfer property or rights to the purchaser; the purchaser obligates himself to pay the agreed amount of money. If the purchased property becomes subject to destruction or vanishes, the contract becomes void. If only part of the property vanished/got destructed, the purchaser is entitled to cancel the contract or to purchase the maintained part under an appropriate price reduction.
The following persons may not act as purchaser, not even related to a public sale, directly or by a nominee:
a) Persons that administer or hold another persons’ property by law or official order regarding this property and officials regarding property that they obtained to purchase due to their profession;
b) Judges, prosecutors, state or private bailiffs, judges of registration and lawyers regarding disputed points being subject to the respective court or authority unless the purchaser is owner of the disputed right;
The expenses related to the contract and all costs related to the transfer of the property are to be borne by the purchaser, exceptthe purchase of estates where the expenses are divided equally. The expenses related to the transfer, including the measuring and weighing are to be borne by the seller. The receiving costs are to be borne by the purchaser. The risk of accidental loss passes to the purchaser upon the moment that the parties agreed upon the goods resp. upon the moment of transfer. Regarding deliveries to purchasers that are not in the same place with regard to their place of residence, the moment of the transfer to the freight forwarder or the carrier is essential if nothing else has been agreed upon. Regarding transit trades, the risk passes to the final recipient in the same cases.
Obligations of the seller
The seller is obliged to transfer the sold property/right to the purchaser. In the moment of the sale, the property must be transferred including its yields.
Sale of an object resp. an object for which third parties have rights
If third parties own property rights or other rights on the respective object which may be displayed towards the purchaser (who did not know about these rights), the seller is liable. If the sold object belongs completely to the ownership of a third party, the purchaser is entitled to dissolve the sale according to the regulations of Article 87 of the Bulgarian law of obligations and contracts. Under these conditions, the seller is obliged to reimburse the paid price and the expenses related to the contract as well as all beneficial applications. For other damages, the seller is liable according to the general provisions regarding the non-performance of obligations. The seller must reimburse the full price, even if the object has been devaluated or damaged. Only if the purchaser derived benefits from the damage that he caused by himself, the value of the benefit is subtracted from the amount owed. If third parties own property rights on parts of the sold object or if the object is burdened by rights of a third party, the purchaser is entitled to request the legal dissolution of the purchase. Further, the purchaser is entitled to request damages according to the previous Article if it is assumed that in the awareness of these circumstances he would not have concluded the contract.
The seller’s liability for defects
The seller is liable for defects in the sold object that substantially reduce the value or the suitability for its required use. He is not liable for defects that were known to the purchaser in the moment of the purchase. The seller is also liable if the defect was unknown to him. Any agreements that exempt the seller from his liability are void. If the purchaser receives the object, he is, according to the standard terms regarding defects, obliged to examine the object and to inform the seller immediately if he detected defects. If the purchaser did not take these measures, the object applies as accepted unless the defects show up later on and may not have been detected upon a normal examination. In the latter case, the rights of the purchaser remain if he informs the seller immediately after the detection of the defect. The report to the seller is not required if he has been aware of the defect.
The purchaser’s rights regarding the liability for defects
In cases that the seller is liable according to Article 139 of the law of obligations and contracts, the purchaser may return the object and demand the reimbursement of the price paid and of the expenses related to the sale. He may also keep the object and demand a price reduction or the remedy of the defects on the seller’s account. Regarding the non-performance of the obligations, he is entitled to a claim for compensation according to the general provisions. Regarding the sale of generically specified objects, the purchaser may exercise his rights according to the first paragraph or request the delivery of objects free of defects. In both cases he may demand compensation. The purchaser owns these rights also if the property has been subject to destruction/damage if the destruction/damage was caused by the defect or a fortuitous event. If the purchaser or persons to whom the object has been given are responsible for its destruction/damage, the purchaser is only eligible for price reduction and compensation as described in the previous Article. The purchaser’s rights are equally limited in cases that the object has been processed. According to Article 195 of the law of obligations and contracts, the purchaser’s claims regarding the sale of immovable property expire after one year and regarding the sale of movable property after 6 months. If the seller concealed the defect consciously, the time period is always 3 years. Upon agreement of the parties, the time period may be extended or shortened. The period starts with the transfer of the object. If the purchaser notifies defects in the purchased object, he is obliged to preserve and conserve them temporarily for the seller.
If perishable goods are the matter and the delay poses a danger to them or if the storage causes disproportionate storage costs or inconveniences, the purchaser may, after informing the seller, demand the permission for sale from the district court. The regulations regarding the liability for defects do not apply to public sale.
The purchaser’s obligations
The purchaser is obliged to pay the agreed price and to receive the object. The payment is to be made in the moment and at the place that the object is transferred. If the sold object produces yields or other revenues, the purchaser owes interest on the price from the day of the transfer, even if the price is not due.