There are two parties involved in the obligations of a public competition:

The person who organized the competition (announced the competition);

Persons participating in the competition, including those who won this competition (fulfilled the conditions presented).

Public competition with an obligation to pay a reward

Article 1057 of the Civil Code of the Russian Federation establishes that a person who publicly announced the payment of a monetary reward or the issuance of another reward (payment of an award) for the best performance of work or achievement of other results (public competition) must pay (give out) the stipulated reward to the one who, in accordance with the conditions of the competition are recognized as its winner.

Public competition must be aimed at achieving some socially useful goals.

A public competition can be open or closed.

A public competition is open when the offer of the competition organizer to take part in it is addressed to everyone by means of an announcement in the press or other means. mass media. In this case, an open competition may be conditioned by the preliminary qualification of its participants, when the organizer of the competition carries out a preliminary selection of persons who wish to take part in it.

A public competition is closed when an offer to take part in the competition is sent to a certain circle of people chosen by the competition organizer.

The announcement of a public competition must contain conditions stipulating the essence of the task, the criteria and procedure for assessing the results of work or other achievements, the place, deadline and procedure for their presentation, the size and form of the award, as well as the procedure and timing for announcing the results of the competition.

Public competition with an obligation to conclude an agreement

Paragraph 5 of Article 1057 of the Civil Code of the Russian Federation establishes that for a public competition containing an obligation to conclude an agreement with the winner of the competition, the rules of Article 447449 of the Civil Code of the Russian Federation on concluding an agreement at auction and on the organization and procedure for conducting auctions are applied.

Article 447 of the Civil Code of the Russian Federation provides that an agreement can be concluded through bidding, and the contract is concluded with the person who wins the bidding.

The organizer of the auction may be the owner of the thing or the holder of the property right, or a specialized organization acting on the basis of an agreement with the owner of the thing or the holder of the property right.

Bidding may be conducted in the form of an auction or competition, in which more than one participant must participate.

The winner of the auction is the person who offers the highest price.

The winner of the auction is the person who, based on the conclusion of the competition commission, pre-appointed by the auction organizer, offered the best conditions.

Auctions and competitions can be open or closed.

Any person can participate in an open auction and open competition.

Only persons specifically invited for this purpose participate in a closed auction and closed competition.

Notification of the auction must be made by the organizer at least 30 days before the auction and must contain information about the time, place and form of the auction, its subject and procedure, including registration of participation in the auction, determination of the person who won the auction, as well as information about the starting price. If the subject of the auction is only the right to conclude a contract, the notice of the upcoming auction must indicate the period provided for this.

Bidders make a deposit in the amount, terms and manner specified in the notice of bidding. If the auction does not take place, the deposit will be returned. The deposit is also returned to persons who participated in the auction but did not win it. When concluding an agreement with the person who has won the auction, the amount of the deposit paid by him is counted towards the fulfillment of obligations under the concluded agreement.

The person who wins the auction and the auction organizer sign on the day of the auction or competition a protocol on the results of the auction, which has the force of a contract. The person who wins the auction, if he evades signing the protocol, loses the deposit he made.

The auction organizer who evaded signing the protocol is obliged to return the deposit in double amount, as well as to compensate the person who won the auction for losses caused by participation in the auction in a part exceeding the amount of the deposit. If the subject of the auction was only the right to conclude an agreement, such an agreement must be signed by the parties no later than 20 days or another period specified in the notice after the completion of the auction and the execution of the protocol.

Reward

The decision to pay the award must be made and communicated to the participants of the public competition in the manner and within the time limits established in the competition announcement.

If the results specified in the advertisement are achieved in work performed jointly by two or more persons, the reward is distributed in accordance with the agreement reached between them. If such an agreement is not reached, the order of distribution of the award is determined by the court.

Reimbursement of expenses of competition participants

In the event of a change in the terms of the competition or its cancellation, the person who announced the competition must reimburse the costs incurred by any person who performed the work specified in the announcement before he became or should have become aware of the change in the terms of the competition and its cancellation.

However, the person who announced the competition is released from the obligation to reimburse expenses if he proves that the specified work was not performed in connection with the competition, in particular before the announcement of the competition, or knowingly did not comply with the conditions of the competition.

Accounting

Accounting with the person who organized the competition

Accounting depends on the goals pursued by the organizer of the competition when it was announced:

If the purpose of the competition was to select the best architectural project for the construction of a building or structure, the costs incurred are subject to reflection in the debit of account 08 “Capital investments”; Moreover, in cases where these costs are not provided for in the consolidated estimates of the cost of construction, they are subsequently not included in the initial cost of completed construction of fixed assets, but are attributed to the developer’s own funds: Dt 88 “Retained earnings (uncovered loss)” Kt 08 "Capital investments";

If the purpose of the competition was to select the best version of a manuscript or other work of literature, art, science for subsequent commercial publication or distribution in another paid manner, then the costs incurred are subject to reflection in the debit of account 08 “Capital investments” with subsequent inclusion in the inventory value of an intangible asset (use rights relevant works of literature, art, science) with the mandatory execution of the corresponding copyright or license agreement: Dt 04 “Intangible assets” Kt 08 “Capital investments”.

However, if the corresponding agreement was not concluded and the right to commercial use of the work was not transferred to the organizer of the competition, there is no need to talk about the acquisition of an intangible asset, therefore the only way out would be to attribute all costs incurred to own sources: Dt 88 “Retained earnings (uncovered loss)” Kt 08 “Capital investments”;

If the purpose of the competition was to identify (or achieve) any results not related to production activities of the person who announced the competition, the costs incurred are subject to reflection in the debit of account 88 “Retained earnings (uncovered loss)”.

Based on the above accounting records, the transfer of award money and reimbursement of expenses to the winners (participants) of the competition are reflected as follows:

calculation of the amount to be paid (depending on the purpose and results of the competition):

Dt 08 “Capital investments” (88 “Retained earnings (uncovered loss)” Kt 76 “Settlements with various debtors and creditors”;

transfer of the reward amount (payment in cash from the cash register):

Dt 76 “Settlements with various debtors and creditors” - Kt 51 “Cash account” (50 “Cash”). When making payments to individuals, it should be borne in mind that subparagraph “h” of paragraph 1 of Article 3 of the Law “On Income Tax” provides for a tax benefit for the complete exemption from taxation of the value of “prizes in cash and in kind received at competitions and competitions during year, not exceeding the amount of twelve times the monthly wage established by law.” When an award is paid in an amount exceeding the established amount, income tax is withheld from the excess amount according to the established scale of rates. For example, in letter No. 040406 of the Ministry of Finance of Russia it is explained that “if the winners of International competitions receive prizes in cash and in kind, then the cost of these prizes in part exceeding twelve times the minimum monthly wage established by law is subject to inclusion in taxable income.”

With regard to the calculation of mandatory insurance contributions to the Pension Fund, the same points should be noted that we focused on when considering the obligations arising from the public promise of a reward.

On the one hand, paragraph 14.9 of the resolution of the Pension Fund Board No. 22 explains that mandatory insurance premiums in the Pension Fund of Russia should be accrued, among other things, for the cost of “awards awarded in cash or in kind for prizes in competitions, shows, competitions (sports, professional, artistic, in-plant, republican) and other similar events” in cases where such payments are accrued to the employee from the employer’s funds. A similar explanation is contained in paragraph 10 of the resolution of the Board of the Pension Fund of the Russian Federation No. 73.

On the other hand, paragraph 21 of the “List of payments for which insurance contributions to the Pension Fund are not charged” Russian Federation“It is established that mandatory insurance contributions to the Pension Fund are not charged on “remunerations paid to citizens under civil law contracts, excluding remunerations paid under contracts the subject of which is the performance of work or provision of services, as well as excluding remuneration under copyright contracts.” At the same time, in the letter of the Board of the Pension Fund No. EB09 11/2147IN it is explained that insurance contributions to the Pension Fund should be calculated on remunerations paid to individuals under contracts the subject of which is the performance of work or the provision of services; at the same time, “agreements... of a public competition cannot fall into this category.” A similar explanation is contained in the letter of the Pension Fund Board No. EB1628/8929.

Thus, if an award is paid to an individual without proper documentation of the transaction, inspectors from the Pension Fund of the Russian Federation will inevitably raise the issue of charging insurance contributions to the Pension Fund for these payments and subject the organization to a corresponding fine.

However, even proper written documentation of the transaction for the payment of an award based on the results of a public competition does not guarantee against a conflict with inspectors from the Pension Fund of the Russian Federation. Therefore, when paying an award, it is necessary to formalize all documents in writing in strict accordance with the norms of civil law.

Accounting for competition participants

In a competition with an obligation to pay a reward

If the costs did not lead to victory in the competition, then all costs incurred must be reflected in the debit of account 88 “Retained earnings (uncovered loss)” as an unproductive diversion of own funds.

If all expenses incurred by the competition participant are reimbursed by the competition organizer, in the prescribed manner they must form the competition participant’s revenue:

Accounting for all costs incurred Dt 20 “Main production” Kt 10 “Materials” (70 “Settlements with personnel for wages”, 69 “Settlements for social insurance and provision”, 60 “Settlements with suppliers and contractors”, etc.);

Accrual of the amount of cost reimbursement receivable under the contract Dt 62 “Settlements with buyers and customers” - Kt 46 “Sales of products (works, services)”;

Allocation of VAT as part of revenue Dt 46 “Sales of products (works, services)” Kt 68 “Calculations with the budget” / subaccount “Calculations for VAT”;

Accrual of tax on road users - Dt 26 “General business expenses” Kt 67 “Calculations for extra-budgetary payments”;

Write-off of all costs of the competition participant Dt 46 “Sales of products (works, services)” Kt 20 “Main production” (26 “General expenses”, etc.); determination of the financial result (profit) Dt 46 “Sales of products (works, services)” Kt 80 “Profits and losses”;

Dt 80 “Profits and losses” Kt 68 “Settlements with the budget” accrual of tax on the maintenance of housing stock and social and cultural facilities;

Repayment of debt by the organizer of the competition Dt 51 “Current account” - Kt 62 “Settlements with buyers and customers”.

In a competition with an obligation to conclude an agreement

If the costs did not lead to the conclusion of the corresponding agreement, all costs are subject to reflection in the debit of account 88 “Retained earnings (uncovered loss)” as an unproductive diversion of own funds.

If, as a result of the competition, a result is achieved - a corresponding agreement is concluded - then the amounts transferred to the organizer of the competition must be counted towards the deposit under this agreement.

At the same time, a special category consists of such costs of the competition participant as payments “for the right to conclude” the relevant contracts, which were the subject of the competition (for example, real estate lease agreements).

When analyzing this type of expense, the following should be noted. Firstly, by letters of the Ministry of Finance of Russia No. 040311 and No. 040311, the right to conclude a land lease agreement is not subject to VAT. However, when selling (reselling) this right, VAT is applied to the full sale price.

Secondly, letter No. 1113/9767 of the State Tax Inspectorate for Moscow clarified that the “Regulation on the Composition of Costs” does not provide for the attribution of fees for the right to conclude land lease agreements to the cost price. Therefore, “the transfer of funds to the settlement accounts of Moskomzem in the form of a fee for the right to conclude lease agreements is carried out at the expense of the profits remaining at the disposal of enterprises after paying taxes.”

Thus, such payments “for the right to conclude an agreement”, which are subsequently not counted towards the deposit under the concluded agreement, are subject to reflection in accounting as follows: actual transfer of payments - Dt 76 “Settlements with various debtors and creditors” Kt 51 “Current account "; attribution of expenses incurred at the expense of own funds - Dt 88 “Retained earnings (uncovered loss)” - Kt 76 “Settlements with various debtors and creditors.”

The person who announced the competition sets the terms for holding this competition: the start date and the end date.

At the same time, Article 1058 of the Civil Code of the Russian Federation establishes that the person who announced a public competition has the right to change its conditions or cancel the competition only during the first half of the period established for the submission of works. In this case, notification of changes in conditions or cancellation of the competition must be made in the same way as the competition was announced.

The person who announced a public competition must clearly determine the place where the competition will be held (or the place where the results of the competition will be summed up). Moreover, in the case of payment of an award (both to an individual and a foreign legal entity), the source of such income must make appropriate tax withholdings.

Use of competition results

If the subject of a public competition is the creation of a work of science, literature or art and the terms of the competition do not provide otherwise, the person who announced the public competition acquires the preemptive right to conclude an agreement with the author of the work that has been awarded a specified award on the use of the work with the payment of an appropriate remuneration for this.

Return of submitted works to competition participants

The person who announced a public competition is obliged to return works not awarded to the participants of the competition, unless otherwise provided by the announcement of the competition and does not follow from the nature of the work performed (which, in principle, cannot be returned to the participant, for example, when holding a competition for the best sand sculpture on seaside beach).

A. ERDELEVSKY
A. Erdelevsky, associate professor of Moscow State Law Academy.
Today, such a legal action as the announcement of a public competition is becoming increasingly widespread in civil circulation. Typically, a public competition is announced by organizations interested in achieving the best results in a certain field of activity. However, as practice shows, the organizers and participants of a public competition do not always clearly understand the legal side of the relationship they enter into in connection with its announcement.
Such relations are regulated by Art. Art. 1057 - 1061 Civil Code. A public competition is one of the varieties of a public promise of a reward, therefore, there is much in common between it and a public promise of a reward as unilateral transactions, but there are also significant differences.
The announcement of a public competition is understood as a message made by the organizer of the competition in a manner accessible to an indefinite circle of persons about his acceptance of the obligation to pay a property reward to the winner of the competition, i.e. to the one who, in accordance with the terms of the competition, will be recognized as having best performed certain work or achieved other best results. According to paragraph 2 of Art. 1057 of the Civil Code, a necessary feature of the results of the actions of the competition participants must be their contribution to the achievement of any socially useful goals (for example, the development of a method for land reclamation, the creation of a work of art, etc.).
As for the public promise of an award, the message about this, as in the case of a public competition, should be accessible to an indefinite circle of people. However, unlike a competition, here a reward can be promised for performing not only a socially useful action, but also any other lawful action, usually aimed at satisfying the interests of a private person (for example, finding a lost item, obtaining necessary information). In addition, the reward must be paid to anyone who completes the action specified in the advertisement. If the required action is performed by several persons, then the right to the reward is acquired by the one who performed this action first, and not by the one who achieved the best results and is recognized as the winner of the competition.
Both the public promise of a reward and the public competition as a type of public promise of a reward are traditionally considered one-sided transactions. Meanwhile, in relation to them in this aspect one can discern some difference.
The qualification of a public promise of a reward as a unilateral transaction is beyond doubt. For an obligation to pay a reward to arise, two legal facts must exist: a public announcement by the promisor of the payment of the reward; the commission by another person of the action that determines the payment of the reward. Of these actions, only the first should be aimed at bringing about the legal consequences inherent in the promise of a reward, namely, the emergence of an obligation to pay the reward. The actual direction of the will of the person who committed the corresponding action is legally indifferent for the emergence of this obligation, since, according to paragraph 4 of Art. 1055 of the Civil Code, the obligation to pay the reward arises regardless of whether the corresponding action is taken in connection with the announcement made or independently of it.
The direction of the will of the person performing the required action to receive a reward has legal significance only as the basis for the emergence of his right to reimbursement of expenses incurred in connection with the commission of this action, in the event of the lawful cancellation of the public promise of a reward, since such a right can arise only for the person who “revoked” for an advertisement (clause 2 of Article 1056 of the Civil Code).
The one-sided nature of such a transaction as a public competition is not so obvious. For the obligation of the organizer of a public competition to pay an award, four legal facts must be present: the organizer’s announcement of a public competition; performance by a participant of the competition of certain work or achievement of other results; presentation of the results of the competition task for participation in the competition; recognition of the competition participant as the winner.
It is easy to see that completing the competition task and presenting the results for participation in the competition together form the action the fulfillment of which determines the promise of a reward in a public competition. Completing the first part of this action - completing the competition task - may well not be related to the announcement of the competition and is not aimed at taking part in it. The conclusion that the work submitted for the competition may not be performed in connection with the competition follows, in particular, from clause 3 of Art. 1058 of the Civil Code, where the consequence of this is the release of the competition organizer from reimbursing the participant for expenses incurred in the event of a change in the conditions of the competition or its cancellation.
However, the second part of the competition participant’s action - submitting the results of the completed work to the competition - is always aimed at entering into an obligatory legal relationship with the organizer of a public competition and achieving the legal consequences inherent in such a competition. The foregoing gives grounds to consider a public competition not as a one-sided transaction, but as a kind of contract, where the announcement of the competition turns out to be a type of public offer, which becomes irrevocable after the first half of the period established for the submission of works, and the submission of the results of the work to the competition is an acceptance of the offer in the manner of .3 tbsp. 438 Civil Code.
The conditionality of the payment of a reward on the completion of the required action or victory in a competition does not mean that the public promise of a reward and a public competition are conditional transactions in the sense of Art. 157 of the Civil Code, since without the inclusion of the specified conditions expressing the essence of these transactions, the latter cannot be concluded at all.
The organizers of a public competition can be: legal entities, and citizens, and the public competition itself can be open and closed (clause 3 of Article 1057 of the Civil Code). An open competition is when the offer of the competition organizer to take part in it is addressed to everyone by issuing an appropriate announcement in the press or other media. In this case, a message about the announcement of a competition addressed to an indefinite number of people is at the same time an offer to take part in it, and this message must be made through the media. Violation of this requirement entails the invalidity of the open public competition.
Although the announcement of an open competition is addressed to an indefinite number of persons, participation in it may be subject to pre-qualification selection from among persons who responded to the announcement. In addition, the subject of the competition itself may determine the participation in it not of anyone, but only of certain persons, each of whom has the necessary attribute to participate in the competition (for example, he is a specialist in a particular field and can confirm this circumstance with a document on receipt of the appropriate education ). But even in these cases, the personal composition of potential participants in the competition to whom the message is addressed remains uncertain.
In the case of a closed competition, an offer to take part in it is sent to a predetermined circle of persons chosen by the competition organizer. Nevertheless, the announcement of a closed competition itself must be made publicly, although in this case not necessarily through the media, but in any way - for example, through a wall seal, posting notices, distributing information leaflets. This conclusion follows from paragraph 1 of Art. 1057 of the Civil Code, where the publicity of the announcement of the payment of an award is indicated as a mandatory feature of any public competition, both open and closed.
In paragraph 4 of Art. 1057 of the Civil Code establishes requirements for the content of an announcement about a public competition. It must include conditions stipulating the essence of the task (i.e., what kind of work must be performed or what results must be achieved), criteria and procedures for assessing the results of work or other achievements (by the organizer of the competition itself, a specially formed jury, etc.) , place, deadline and procedure for submitting results to the competition, size and form of the award, as well as the procedure and timing for announcing the results of the competition. Establishing criteria for evaluating results is necessary, in particular, in order to exclude the possibility of arbitrarily determining the winner of the competition. Absence in the competition announcement of any of necessary conditions entails its invalidity.
Of great importance for the protection of the rights and legitimate interests of competition participants are the rules of Art. 1058 of the Civil Code on changing the conditions and canceling the public competition. As an analysis of the small judicial practice on disputes in connection with the announcement of a competition shows, these rules are not always observed by the organizers of the competition, and then the question arises about their responsibility to the participants of the competition. In terms of its actual consequences for the contestants, the same unlawful action of the competition organizer as failure to sum up its results within the period specified in the announcement is identical to the cancellation of the competition.
According to paragraphs 1, 2 of Art. 1058 of the Civil Code, the organizer of a public competition has the right to change its conditions or cancel the competition only during the first half of the period established for the submission of works, and notification of this must be made in the same way as the competition was announced. In the event of a change in the conditions of the competition or its cancellation, the organizer of the competition must reimburse the expenses incurred by any person who performed the work specified in the advertisement before he became or should have become aware of the change in the conditions or cancellation of the competition. Note that here we are talking only about the lawful cancellation of the competition or changing its conditions.
In practice, difficulties may arise in determining the moment from which a tender participant should become aware of changes in conditions or cancellation of the competition. Obviously, this should be considered the moment of publication of the relevant notice. Clause 3 of Art. 10 of the Civil Code establishes the principle of presumption of reasonableness of actions of participants in civil legal relations. The actions of a participant in the competition will be reasonable if he, having learned about the announcement of the competition, for example, from the newspaper "Evening Moscow", and based on the fact that changing the conditions or canceling the competition is possible during the first half of the term with a mandatory notification about this in the same newspaper, will closely monitor all its issues during this period in order to acquire the right to reimbursement of all expenses that he incurs in connection with participation in the competition.
In paragraph 3 of Art. 1058 of the Civil Code provides that the organizer of a competition is released from the obligation to reimburse expenses if he proves that the work was not performed in connection with the competition, for example, before the announcement of the competition, or knowingly did not comply with its conditions. This rule is explained by the absence in these cases of a causal connection between changes in conditions or cancellation of the competition, on the one hand, and losses incurred by the participant in the form of expenses incurred, on the other.
Particular difficulties arise in connection with the application of clause 4 of Art. 1058 of the Civil Code due to the unsuccessful edition of this norm. It provides for the responsibility of the competition organizer for violating the rules for changing the conditions or canceling the competition established in paragraphs 1, 2 of Art. 1058 Civil Code. In this case, the competition organizer must “pay a reward to those who completed work that satisfies the conditions specified in the advertisement.” It is easy to see that this phrase can also be interpreted in such a way that the organizer of the competition, who changed the conditions or canceled it in the second half of the competition period, or who did this, although in the first half of the period, but in a different way compared to how the competition was announced, is obliged to pay a reward to each of the participants whose work meets the conditions of the competition. A similar interpretation can be found in legal literature (for example, Commentary on the Civil Code of the Russian Federation, part two (article-by-article) / Edited by O.N. Sadikov. - M., 1999, p. 1058).
The consequences of such an interpretation are clear; if it were supported in judicial practice. Let's imagine an open competition with an announced reward of 1 million rubles, in which 1 million contestants took part. Let us further assume that the organizer of the competition, when canceling it, made a mistake - he placed the advertisement not in the newspaper "Evening Moscow", where the initial announcement was made, but in the newspaper "Moskovskaya Pravda". Does this mean that, as a result of such a violation, each of the million participants has the right to demand a million rubles from the competition organizer? The injustice of such a consequence and its obvious disproportion to the violation is obvious. Nevertheless, similar claims are already appearing in the courts.
Thus, a participant in the competition sued a magazine that had announced a competition among students for the best article on the subject profile of the magazine. The winner of the competition was promised a laptop computer as the first prize. The competition was announced at the beginning of 1999 with a deadline for submission of works until July 31, 1999. However, in July 1999, i.e. in the second half of the term, the magazine announced the extension of this period until August 31, 1999. Thus, the requirements of paragraph 1 of Art. 1058 of the Civil Code were clearly violated. Based on paragraph 4 of Art. 1058 of the Civil Code, the student in her statement of claim demanded to recover the cost of the computer from the editors of the magazine. Were the interests of the contestant affected in any way in this case? I guess, yes. First, with more time to do the job, she could do it better. Secondly, she had additional competitors (those who submitted their work in August 1999), which, according to the original conditions of the competition, should not have existed.
To protect the interests of the contestant, it would be quite sufficient to present a demand to declare the change in the conditions of the competition invalid and to exclude the August participants from the number of competitors when summing up the results of the competition. To date, no decision has been made on this case. In all likelihood, the participant’s claim will be denied, if only because the announcement of the competition, as often happens and what unwary award lovers do not notice, did not indicate the criteria for evaluating the work, and in this case, the announcement of the competition, as stated above, turns out to be invalid (Article 168, paragraph 4 of Article 1057 of the Civil Code).
And yet, if it were not for this very annoying circumstance for her, how should the dispute be resolved? To answer this question, let us once again turn to paragraph 4 of Art. 1058 Civil Code. It should be noted that the award, which must be paid to all those participants whose works meet the conditions of the competition, is referred to in the singular in this article. Therefore, the reward must be paid, but only one for all such participants. This is quite fair and complies with the requirements of the law. Firstly, even if we proceed from the principle of full compensation to the participant for losses incurred, what should be understood in this case as the competitor’s losses in the form of lost profits? After all, receiving an award is conditioned by summing up the results of the competition, and if the organizer of the competition or the jury appointed by him have not determined the winner, then no one, including the court, can replace them. Meanwhile, only the winner can have a full right to the award.
The conclusion about the legality of distributing one award among all participants in the competition is also based on the fact that, as noted above, the announcement of a public competition is a type of public promise of an award. According to paragraph 5 of Art. 1055 of the Civil Code, in cases where an action corresponding to the promise of a reward was performed by several persons, the right to receive the reward is acquired by the one who performed the corresponding action first. But if this action was committed by two or more persons and it is impossible to determine which of them performed the corresponding action first, as well as if it was committed by two or more persons at the same time, the reward between them is divided equally or in another amount provided for by agreement between them.
In relation to a competition, if the rules for its cancellation are violated, a similar situation arises. The difference lies, in particular, in the fact that if the competition is canceled, it becomes impossible to determine not the primacy in performing the action, but who performed the required action better. Therefore, in the event of an unlawful cancellation of the competition, it is quite acceptable for the purposes of determining lost profits to apply, by analogy with the law, the principle of distributing the cost of the award equally among those participants whose works meet the conditions specified in the announcement. As for the expenses incurred by the competition participants, they must be reimbursed to each of the participants within the full cost of the award promised in the competition announcement in relation to each participant (clause 2 of Article 1056, clause 3 of Article 1058 of the Civil Code).
In conclusion, let us touch upon the situation when the conditions of the competition allow the submission of work completed by several persons jointly. If such a work is recognized as the best, then its performers are the collective winner of the competition. How is the reward distributed between them? This question is answered by clause 2 of Art. 1059 of the Civil Code: the reward is distributed among co-executors in accordance with the agreement reached between them. If such an agreement is not reached, the order of distribution of the award is determined by the court.
Often the subject of a public competition is to create a work of science, literature or art. In such cases, unless the terms of the competition provide otherwise, the organizer of the competition acquires the preemptive right to conclude an agreement with the author of the work, recognized as the winner, on the use of the work with the payment of royalties to him.
Article 1061 of the Civil Code determines the fate of works submitted to the competition and not awarded an award upon its completion. By general rule such works (i.e. the object in which they received a material embodiment accessible to objective perception) the competition organizer is obliged to return to the competition participants within a reasonable time. However, Art. 1061 of the Civil Code is a dispositive norm, therefore such an obligation arises on the organizer in the event “unless otherwise provided by the announcement of the competition and does not follow from the nature of the work performed.” By works, the nature of which exempts the organizer of the competition from the obligation to return them, we should understand, firstly, works that do not have any material embodiment at all (for example, a competition for the best dance performance), and, secondly, works that, although they have a material expression , but the return of which would be contrary to the reasonably understood interests of the organizer and participants of the competition (for example, a competition for the best production of a perishable culinary product).
LINKS TO LEGAL ACTS

"CIVIL CODE OF THE RUSSIAN FEDERATION (PART ONE)"
dated November 30, 1994 N 51-FZ
(adopted by the State Duma of the Federal Assembly of the Russian Federation on October 21, 1994)
"CIVIL CODE OF THE RUSSIAN FEDERATION (PART TWO)"
dated January 26, 1996 N 14-FZ
(adopted by the State Duma of the Federal Assembly of the Russian Federation on December 22, 1995)
Legality, N 8, 2000

A person who publicly announced the payment of a reward for the best performance of work or achievement of other results (public competition) must pay the stipulated reward to the person who, in accordance with the terms of the competition, is recognized as its winner.

The legal nature of the obligations from a public competition has a certain similarity with the obligations from a public promise of a reward:

a) arises from unilateral transactions and not from a contract;

b) the announcement of an open competition is addressed to an indefinite number of persons;

c) a public competition must be aimed at achieving some socially useful goals;

d) the list of entities - organizers of a public competition or those who publicly promised an award is not limited; they can be any persons.

The peculiarity of a public competition is that the reward is paid only to the person who has fulfilled the conditions of the competition and is recognized as the winner. According to the rules of a public competition, for example, selection is carried out best project for the construction of a monument, literary or other creative work, as well as identifying the best performer, etc.

A public competition can be:

a) open, when the offer of the organizer of the competition to take part in it is addressed to everyone by means of an announcement in the press or other media;

b) closed, when an offer to take part in the competition is sent to a certain circle of people chosen by the competition organizer.

An open competition may be conditioned by the preliminary qualification of its participants, when the organizer of the competition carries out a preliminary selection of persons who wish to take part in it.

An announcement of a public competition (both open and closed) must, at a minimum, contain the following conditions:

Conditions providing for the essence of the assignment;

Criteria and procedure for assessing work results or other achievements;

Place, date and procedure for their submission;

The procedure and timing for announcing the results of the competition;

Size and shape of the award.

The person who announced a public competition has the right to change its conditions or cancel the competition only during the first half of the deadline established for the submission of works and in the same way in which the competition was announced. If the person who announced a public competition violates the specified procedure for canceling the competition or changing its conditions, this person must pay a reward to those who completed work that satisfies the conditions specified in the announcement. Compliance by the competition organizer with the stated procedure for canceling it or changing the conditions does not relieve the organizer from the obligation to reimburse expenses incurred by any person who performed the work specified in the announcement before he became or should have become aware of the change in the conditions of the competition and its cancellation.

Conducting games and betting

Bet- is an agreement based on risk and concluded between two or more persons (individuals or legal entities) to win, the outcome of which depends on a circumstance for which it is unknown whether it will occur or not.

Gambling is a risk-based agreement concluded between two or more persons (individuals or legal entities) to win, the outcome of which depends on a circumstance that the parties have the opportunity to influence.

Civil Code does not provide the possibility of judicial protection of claims of citizens and legal entities related to the organization of games and bets or participation in them. This general rule does not mean an absolute absence of obligations of the organizers or participants of games and bets in general, but expresses the fundamental attitude of the legislator to this kind of obligations. The law recognizes the possibility of a participant to demand in court the fulfillment of obligations related to the conduct of games and bets in two cases:

a) if the demands come from persons who took part in games or bets under the influence of deception, violence, threats or malicious agreement of their representative with the organizer of the games or bets;

b) if demands for payment of winnings come from persons who have won a lottery, sweepstakes or other games conducted by the Russian Federation, constituent entities of the Russian Federation, municipalities, or persons who have received permission from an authorized state or municipal body.

In the second case, the relationship between the organizers of lotteries, sweepstakes (mutual betting) and other risk-based games (the Russian Federation, constituent entities of the Russian Federation, municipalities, persons who have received permission from an authorized state or municipal body) and game participants are based on an agreement.

Such an agreement, as a rule, is formalized by issuing a lottery ticket, receipt or other document and must contain conditions on the timing of the games, the procedure for determining the winnings and its amount. Persons who, in accordance with the conditions of a lottery, sweepstakes or other games, are recognized as winners, the organizer of the games must be paid the winnings in the amount, form (cash or in kind) and period stipulated by the conditions of the games, and if the period is not specified in these conditions, not later than ten days from the moment the results of the games are determined. If the organizer of the games refuses to hold them within the established period, the participants of the games have the right to demand from their organizer compensation for real damage incurred due to the cancellation of the games or the postponement of their dates.

Civil Code, N 14-FZ | Art. 1057 Civil Code of the Russian Federation

Article 1057 of the Civil Code of the Russian Federation. Organization of a public competition (current edition)

1. A person who publicly announced the payment of a monetary reward or the issuance of another reward (payment of an award) for the best performance of work or achievement of other results (public competition) must pay (give out) the stipulated reward to the one who, in accordance with the terms of the competition, is recognized as his winner.

2. A public competition must be aimed at achieving some socially useful goals.

3. A public competition can be open, when the offer of the organizer of the competition to take part in it is addressed to everyone by means of an announcement in the press or other media, or closed, when the offer to take part in the competition is sent to a certain circle of people at the choice of the organizer of the competition.

An open competition may be conditioned by the preliminary qualification of its participants, when the organizer of the competition carries out a preliminary selection of persons who wish to take part in it.

4. The announcement of a public competition must contain at least the conditions stipulating the essence of the task, the criteria and procedure for assessing the results of work or other achievements, the place, deadline and procedure for their presentation, the size and form of the award, as well as the procedure and timing for announcing the results of the competition.

5. For a public competition containing an obligation to conclude an agreement with the winner of the competition, the rules provided for by this chapter apply to the extent that Articles 447 - 449 of this Code do not provide otherwise.

• BB code
• Text

Document URL [copy]

Commentary to Art. 1057 Civil Code of the Russian Federation

1. The article under comment is devoted to the organization of a public competition. A public competition is a type of public promise of a reward. When announcing it, the person who publicly announced the payment of a monetary reward or the issuance of another award (payment of an award) for the best performance of work or achievement of other results must pay (give out) the stipulated award to the one who, in accordance with the competition, is recognized as the best performer of the work or has achieved best results.

2. In contrast to the public promise of a reward, a public competition is aimed at achieving some socially useful goals and can be addressed to everyone (open competition) and to a certain circle of people chosen by the competition organizer (closed competition).

For example, the purpose of holding an open public competition for the best history lesson on the topic: “The First World War on the map Union State"there was a need to find new formats for conducting history lessons in order to form and educate military-patriotic feelings among the younger generation, to identify the common historical roots of the Russian and Belarusian peoples.

The purpose of the public competition “BAM in the history of my family” is to popularize the history of Russia, promote patriotism and the achievements of domestic railway construction.

The purpose of the All-Russian competition for the best scientific work among students, graduate students and young scientists of higher educational institutions Ministry of Agriculture of Russia - support for talented youth, promotion of scientific knowledge and creative achievements, identification and development of Russian youth creativity, interest in scientific activities (see Order of the Ministry Agriculture RF dated July 17, 2014 N 283).

3. The announcement of the competition may take place in the press or other media. This announcement, like the promise of a reward, is a unilateral transaction or public offer. Clause 4 of Art. speaks in favor of the latter. 1057 of the Civil Code of the Russian Federation, namely the fact that the announcement of a public competition must contain conditions stipulating the essence of the task, the criteria and procedure for assessing the results of work and other achievements, the place, deadline and procedure for their presentation, the size and form of the award, the procedure and timing for the implementation of the results competition.

For example, an announcement about an open public competition of works for the Russian Government awards in the field of education in 2014 was published on January 15, 2014 in " Rossiyskaya newspaper"(federal issue N 6278), as well as on the website of the Russian Ministry of Education and Science.

Announcements about the competition “BAM in the history of my family” and for the best history lesson on the topic: “The First World War on the map of the Union State”, as well as the corresponding regulations on the conduct of these competitions, were published on the website of CJSC “Publishing House “Komsomolskaya Pravda” on the Internet at: www.kp.ru.

4. Since the competition is a competition that determines the best among its participants, it assumes the presence of several participants who take into account the announced conditions and submit works to the competition - the results of authorship, performing skills, sports achievements, scientific works, etc.

Submission of works and achievements to the competition is acceptance and the moment of concluding the contract (Article 433 of the Civil Code of the Russian Federation). This is a conditional transaction with a suspensive condition, since the obligation to pay the reward arises only for the winner. The form of the agreement can be any. Most often, evidence of its conclusion is a written presentation of work results or other achievements. An essential condition of such an agreement is its subject: the above-mentioned works or achievements, the criteria and procedure for their evaluation, the size and form of the award, the procedure and timing for announcing the results of the competition.

The reward can be paid not only in cash. Memorial signs are awarded as a reward. The issuance of an award may be accompanied by the awarding of various types of certificates, the awarding of honorary titles of laureate or diploma winner of the competition. However, these are only measures of moral encouragement, which in themselves are not a competitive award.

The subjects of the agreement can be any individuals and legal entities. State bodies and local governments can act as the organizer of the competition.

5. For a public competition that contains an obligation to conclude an agreement with the winner of the competition, the provisions on the public competition and, accordingly, the articles on concluding an agreement at auction (Articles 447 - 449 of the Civil Code of the Russian Federation) apply.

6. Applicable law:

Decree of the Government of the Russian Federation of August 28, 2013 N 744;

Order of the Ministry of Transport of the Russian Federation dated 09/08/2014 N MS-127-r;

Order of the Ministry of Transport of the Russian Federation dated 09/08/2014 N MS-126-r;

Order of the Ministry of Labor and Social Protection of the Russian Federation dated August 4, 2014 N 516;

Order of the Ministry of Agriculture of the Russian Federation dated July 17, 2014 N 283;

Order Federal service execution of punishments dated May 13, 2014 N 224;

Order of the Federal Agency for Youth Affairs dated March 17, 2014 N 60;

Order of the Federal Agency for Youth Affairs dated March 12, 2014 N 56;

Order of the Federal Agency for Youth Affairs dated March 12, 2014 N 50;

Order of the Federal Forestry Agency dated 03/07/2014 N 61;

Order of the Federal Bailiff Service dated January 15, 2014 N 3;

Order of the Federal Agency for Youth Affairs dated January 13, 2014 N 6;

Order of the Ministry of Internal Affairs of Russia dated August 10, 2013 N 612;

Regulations on the competition "For the production of high-quality food products"(approved by the Ministry of Agriculture of the Russian Federation on August 20, 2014);

Regulations on the All-Russian competition "For service to sport" (for contribution to the development physical culture and sports) (approved by the Ministry of Sports of the Russian Federation on July 21, 2014);

Regulations on the All-Russian competition "Sports Solidarity" (for strengthening international sports relations) (approved by the Ministry of Sports of the Russian Federation on July 1, 2014);

Judicial practice under Article 1057 of the Civil Code of the Russian Federation:

• Decision of the Supreme Court: Determination N 74-APG17-2, Judicial Collegium for Civil Cases, appeal

  At the same time, the Judicial Collegium considers the position of the trial court about the contradiction of the Regulations in Article 1057 of the Civil Code of the Russian Federation and the uncertainty contained therein to be erroneous legal regulation, entailing the breadth of discriminatory powers and indicating the presence of corruption factors in the regional regulatory legal act...

• Decision of the Supreme Court: Determination N 74-G09-17, Judicial Collegium for Civil Cases, cassation

  In this case, a mandatory condition of the competition is also the form and size of the award to be paid to the winner. However, in violation of Part 4 of Art. 1057 of the Civil Code of the Russian Federation, the Regulations do not contain criteria and a procedure for assessing work results or other achievements, or a procedure for announcing the results of a competition, which are essential conditions...

• Decision of the Supreme Court: Determination N 305-ES17-3374, Judicial Collegium for Economic Disputes, cassation

  The courts, having examined the circumstances of the dispute and the evidence presented, came to the conclusion that the disputed collection by the defendant of proposals for the formation of a list of national projects was not a public competition in the sense of Article 1057 of the Civil Code of the Russian Federation. The selection of applications was carried out by the defendant in pursuance of the instructions of the Government of the Russian Federation, the responsibility for the implementation of which is special public entity - the Ministry of Economic Development...

1. A person who publicly announced the payment of a monetary reward or the issuance of another reward (payment of an award) for the best performance of work or achievement of other results (public competition) must pay (give out) the stipulated reward to the one who, in accordance with the terms of the competition, is recognized as his winner.

2. A public competition must be aimed at achieving some socially useful goals.

3. A public competition can be open, when the offer of the organizer of the competition to take part in it is addressed to everyone by means of an announcement in the press or other media, or closed, when the offer to take part in the competition is sent to a certain circle of people at the choice of the organizer of the competition.

An open competition may be conditioned by the preliminary qualification of its participants, when the organizer of the competition carries out a preliminary selection of persons who wish to take part in it.

4. The announcement of a public competition must contain at least the conditions stipulating the essence of the task, the criteria and procedure for assessing the results of work or other achievements, the place, deadline and procedure for their presentation, the size and form of the award, as well as the procedure and timing for announcing the results of the competition.

5. For a public competition containing an obligation to conclude an agreement with the winner of the competition, the rules provided for by this chapter apply to the extent that Articles 447 - 449 of this Code do not provide otherwise.

Commentary to Art. 1057 Civil Code of the Russian Federation

1. Today, such a legal action as the announcement of a public competition is becoming increasingly widespread in civil circulation. According to S.A. Chernysheva, by its legal nature, the competition is a unilateral transaction, which is characterized by the expression of the will of one party. The announcement of a competition is a one-sided transaction, because for it to occur, the expression of the will of the organizer of the competition is sufficient. Submission by a person of work completed in accordance with the terms of the competition is also a one-sided transaction, since the person’s desire to participate in the competition is expressed without prior agreement on issues related to the competition.

The Constitution of the Russian Federation (Article 43) introduces the concept of “on a competitive basis” in relation to obtaining higher education in state or municipal educational institutions. However, the practical application of this concept is much wider. It is found in many laws adopted recently and affects various aspects of the life of the state and society. Thus, in pursuance of Decree of the President of the Russian Federation of April 12, 1993 N 443 “On urgent measures state support undergraduate and graduate students educational institutions higher vocational education"and the Regulations on scholarships of the President of the Russian Federation, approved by Decree of the President of the Russian Federation dated September 6, 1993 N 613-rp (as amended by Decrees of the President of the Russian Federation dated February 14, 2010 N 182, dated June 22, 2010 N 773, dated 8 March 2011 N 285), announced an open public competition for scholarships from the President of the Russian Federation to study abroad for students and graduate students of Russian universities in the 2011/2012 academic year.

———————————
Collection of acts of the President and Government of the Russian Federation. 1993. N 16. Art. 1341.

Collection of acts of the President and Government of the Russian Federation. 1993. N 37. Art. 3451.

Collection of legislation of the Russian Federation. 2010. N 8. Art. 837.

Collection of legislation of the Russian Federation. 2010. N 26. Art. 3331.

Collection of legislation of the Russian Federation. 2011. N 11. Art. 1514.

Typically, a public competition is announced by organizations interested in achieving the best results in a certain field of activity. However, as practice shows, the organizers and participants of a public competition do not always clearly understand the legal side of the relationship they enter into in connection with its announcement.

A public competition is, first of all, one of the most important institutions of civil law, by virtue of which a person who has publicly announced the issuance of an award for the best performance of work or the achievement of other results, undertakes to hold the competition within a specified period and give the stipulated award to the one who, in accordance with the conditions of the competition was declared the winner.

A public competition and a public announcement of a reward are united by a public promise of a reward for performing a lawful action.

The public nature is manifested in the fact that the advertisement is addressed to an indefinite number of people in a public place. This could be an appeal made on the Internet or at a press conference during an international exhibition, in print and electronic media.

The announcement of a public competition is understood as a message made by the organizer of the competition in a manner accessible to an indefinite circle of persons about his acceptance of the obligation to pay a property reward to the winner of the competition, i.e. to the one who, in accordance with the terms of the competition, will be recognized as having best performed certain work or achieved other best results.

2. A necessary feature of the results of the actions of competition participants must be their contribution to the achievement of any socially useful goals. As for the public promise of an award, the message about this, as in the case of a public competition, should be accessible to an indefinite circle of people. At the same time, unlike a competition, with a public promise, a reward can be promised for performing not only a socially useful action, but also any other lawful action, usually aimed at satisfying the interests of a private person (for example, finding a lost item, receiving necessary information). In addition, the reward must be paid to anyone who completes the action specified in the advertisement. If the required action is performed by several persons, then the right to the reward is acquired by the one who performed this action first, and not by the one who achieved the results and is recognized as the winner of the competition.

Both the public promise of a reward and the public competition as a type of public promise of a reward, as noted above, are traditionally considered one-sided transactions. Meanwhile, in relation to them in this aspect one can discern some difference.

According to Professor A.M. Erdelevsky, the qualification of a public promise of a reward as a unilateral transaction is beyond doubt. For an obligation to pay a reward to arise, two legal facts must exist: 1) a public announcement by the promisor of the payment of the reward; 2) the commission by another person of the action that determines the payment of the reward. Of these actions, only the first should be aimed at the onset of legal consequences inherent in the promise of a reward, namely, the emergence of an obligation to pay the reward. The actual direction of the will of the person who committed the corresponding action is legally indifferent for the emergence of this obligation, since according to paragraph 4 of Art. 1055 of the Civil Code of the Russian Federation, the obligation to pay a reward arises regardless of whether the corresponding action was taken in connection with the announcement made or independently of it.

———————————
Erdelevsky A.M. Public promise of reward // Legality. 2000. N 8. P. 11.

The direction of the will of the person performing the required action to receive a reward has legal significance only as the basis for the emergence of his right to reimbursement of expenses incurred in connection with the commission of this action, in the event of the lawful cancellation of the public promise of a reward, since such a right may arise for the person who “responded” to announcement (clause 2 of article 1056 of the Civil Code).

The one-sided nature of such a transaction as a public competition is not so obvious. For the obligation of the organizer of a public competition to pay an award, four legal facts must exist: 1) the organizer’s announcement of a public competition; 2) performance of certain work by competition participants or achievement of other results; 3) presentation of the results of the competition task for participation in the competition; 4) recognition of the competition participant as the winner.

It is easy to see that completing the competition task and presenting the results for participation in the competition together form the action the fulfillment of which determines the promise of a reward in a public competition. Completing the first part of this action - completing the competition task - may well not be related to the announcement of the competition and may not be aimed at taking part in it. However, the second part of the competition participant’s action - submitting the results of the completed work to the competition - is always aimed at entering into an obligatory legal relationship with the organizer of a public competition and achieving the legal consequences inherent in such a competition.

The foregoing gives grounds for some Russian civil law scholars (including V.P. Mozolin, S.A. Chernysheva, A.M. Erdelevsky and some others) to consider a public competition not as a one-sided transaction, but as a kind of agreement, where the announcement of the competition turns out to be a type of public offer, which becomes irrevocable after the first half of the period established for the submission of works, and the submission of the results of the work to the competition becomes an acceptance of the offer in accordance with clause 3 of Art. 438 of the Civil Code of the Russian Federation, which states that the performance by the person who received the offer, within the period established for its acceptance, of actions to fulfill the terms of the contract specified in it (shipment of goods, provision of services, performance of work, payment of the appropriate amount, etc.) is considered acceptance, unless otherwise provided by law, other legal acts or specified in the offer.

3. The organizers of a public competition can be both legal entities and citizens, and the public competition itself can be open or closed. The legal capacity of citizens participating in the competition is determined by the general rules of civil law. There are no age restrictions. This means that not only adult citizens, but also minors aged 14 to 18 years can participate in the competition, because they have the right to independently, without the consent of parents, adoptive parents and trustees, exercise the rights of the author of a work of science, literature or art, invention or other protected the law of the result of one’s intellectual activity (). For minors under 14 years of age according to Art. 28 of the Civil Code of the Russian Federation, transactions can be made on their behalf by legal representatives (parents, adoptive parents, guardians).

The range of participants in the competition depends on the type of competition. If the public competition is open, then the organizer’s offer to take part in it is addressed to everyone through an announcement in the media.

An open competition may also be conditioned by the preliminary qualification of its participants, when the organizer of the competition carries out a preliminary selection of persons who wish to take part in it.

So, before the XIV International competition named after P.I. Tchaikovsky, held from June 14 to July 2, 2011 in Moscow, all applicants for participation in this competition were asked to undergo a preliminary selection, which formed the final composition of competitors in four categories (piano, violin, cello, solo singing) . It should be noted that a certain age limit was established for this competition: instrumentalists - 16 - 30 years old, singers - 19 - 32 years old.

In a closed competition, participants make up a certain circle of people chosen by the competition organizer.

The possibility of holding a closed competition in relation to, for example, placing orders for the supply of goods, performance of work, provision of services for state and municipal needs is regulated by special Federal law dated July 21, 2005 N 94-FZ “On placing orders for the supply of goods, performance of work, provision of services for state and municipal needs” (as amended and additionally entered into force on January 1, 2011).

———————————
Collection of legislation of the Russian Federation. 2005. N 30 (part 1). Art. 3105.

The Ministry of Economic Development and Trade of the Russian Federation, by its Order No. 124 dated May 3, 2006, approved the Procedure, which regulates the issues of holding a closed competition, a closed auction, the possibility of concluding a state or municipal contract with a single supplier (performer, contractor).

———————————
Bulletin of normative acts. 2006. N 30.

Nevertheless, the announcement of a closed competition itself must be made publicly, although in this case not necessarily through the media, but in any way, for example, through a wall newspaper, posting advertisements, distributing information leaflets. This conclusion follows from paragraph 1 of the commented article, where the publicity of the announcement of the payment of the award is indicated as a mandatory feature of any public competition, both open and closed.

4. The content of a unilateral transaction (public announcement by the organizer of a competition) or an agreement on a public competition constitutes essential and other conditions. Clause 4 of the commented article establishes fairly stringent requirements for the content of the announcement of a public competition. It should include conditions defining the essence of the task (i.e., what kind of work must be performed or what results must be achieved), criteria and procedure for evaluating the results of work or other achievements (by the organizer of the competition itself, a specially formed jury, etc. .), place, timing and procedure for submitting results to the competition, size and form of the award, as well as the procedure and timing for announcing the results of the competition. Establishing criteria for evaluating results is necessary, in particular, in order to exclude the possibility of arbitrarily determining the winner of the competition. The absence of any of the necessary conditions in the competition announcement entails its invalidity.

Thus, the essential conditions of a public competition include the following: subject of the transaction; place, timing and procedure for providing work or other achievements; criterion and procedure for evaluating work results; size and shape of the award; procedure and timing for announcing the results of the competition.

Other conditions may include the procedure and timing of payment of remuneration, as well as the fate of works submitted to the competition that were not awarded.

The subject of the transaction is the implementation of lawful actions aimed at achieving a socially useful goal and constituting the essence of the task.

The presence of a socially useful purpose means that the competition itself and its results serve society as a whole, since it is interested in identifying and supporting talented performers, developing projects for the protection of monuments, protecting environment and so on.

The essence of the task is described as the requirements for the work and its result. Detailed requirements for the result of work are also practiced. Thus, the program of the XIII International Competition named after P.I. Tchaikovsky regulated in detail the content of each round, as well as the mandatory requirements for the performance of certain types of musical works by contestants in each round.

The place where the work is presented is usually the address of the organizer or his authorized representative. The terms of the competition may stipulate that the work is presented in a public place, i.e. Along with the jury, access to spectators and listeners is also provided.

Setting a deadline for submitting work is necessary to ensure that all participants are in the same time conditions for the successful completion of the task specified in the advertisement. The deadline must be realistic. Final and intermediate deadlines may be set for the submission of work. For a performing competition, the organizer usually approves calendar plan competition, indicating the dates of registration, draw, each round (listening, viewing), award ceremony and closing.

The terms of the competition may provide for the provision of work under a motto in order to maintain the secret of the participant’s name in order to objectively determine the winner.

The essential conditions include the criteria and procedure for assessing the results of work. The organizer has the right to independently evaluate the achievements submitted to the competition or to involve third parties. Sometimes, as noted above, a jury, competition commission or committee is created specifically for these purposes. The results of the work can be assessed by any permanent body of the competition organizer.

For each competition, taking into account its specifics, criteria for assessing the results of work are established. The score can be derived based on the sum of points scored for each criterion.

A prerequisite is to determine the procedure and deadline for announcing the results of the competition. The exact date for announcing the results of the competition or the period during which the result is announced after the decision to select the winner is made.

The result is communicated either orally to all participants, or through the media simultaneously with the notification of each winner, or in writing. Sometimes it is specifically stated that the result will be announced in a solemn atmosphere.

5. A separate group is represented by the rules governing the conclusion of contracts at auctions, one of the forms of which is competitions (Article 447 of the Civil Code). The purpose of these competitions is the alienation of certain property to the one who offered the best conditions for it. As a result of such competitions, the organizers are obliged to enter into an agreement with the winner, which defines their obligations. The object of the competition in the sense of Ch. 57 of the Civil Code of the Russian Federation are pre-announced obligations of the organizer. Therefore, the norms of the commented chapter can be applied to relations arising during bidding only in cases where these relations are not regulated by these norms and do not contradict them.