The control over compliance with contractual preemptive rights

Abstract

The article focuses on the conditions and grounds for conducting the formal preliminary legal due diligence of a contract as to respect of the preemptive right, which had been granted by one of the parties to a stranger under an agreement. This legal due diligence may be hypothetically examined during state registration of rights or notarization of transactions. According to theory of law, reasons to do thus are scientific concepts of the general duty not to interfere with others' plans. Such plans may include an agreement under the terms of which one of the parties gets a preemptive right in relation to certain property. This contractual right ensures the entitled party that he/she may preclude the legal implications of agreements between the other party and the strangers (interveners). If these persons knew or should have known of the preemptive right and entered into an agreement, which is inconsistent with that right, such agreement shall be considered as invalid and therefore cannot be notarized and cannot be subject to state registration