From contracts to inheritance: how civil law affects your daily life and business

What is civil law?

Civil law is the basic component of private law in the Czech Republic. It regulates relations between people, companies and institutions that are equal in the legal sense. Unlike public law, where the state acts in a position of authority (e.g. criminal or administrative law), in civil law the parties are on an equal footing, i.e. “equal to equal”.

In practice, this means that if two neighbours agree to exchange a piece of land, this is done on the basis of their free will. The state does not interfere with them, it just sets the boundaries – for example, that such an agreement must be in writing and an amendment must be made to the land register.

Civil law covers not only property relations (e.g. ownership, lease, obligations) but also non-property relations such as protection of personality, name, privacy or family ties. It therefore has a direct impact on everyone’s daily life. The basic codification is the Civil Code.

Substantive civil law vs. procedural civil law

Civil law is divided into substantive and procedural law. This division is crucial to understanding how the law is applied in practice.

Substantive civil law determines what rights and obligations individuals and entities have with each other. For example, it states that an owner has the right to use his or her home and exclude others from it, or that a debtor is obliged to repay money borrowed. It is about the ‘what’, i.e. the content of the legal relationship.

Civil procedural law, on the other hand, deals with the ‘how’ – the procedure by which these rights can be enforced. It is regulated primarily by the Code of Civil Procedure and lays down rules of court procedure, evidence, time limits and procedural acts.

To give you an idea: if someone owes you CZK 50,000, substantive civil law says that you have the right to recover the amount (e.g. under a loan agreement). Civil procedural law then determines the way to enforce this right (from filing a lawsuit to possible enforcement).

In practice, the two cannot be separated. A substantive right without a procedural right would be ineffective, a procedural right without a substantive right would have no content. A lawyer always works with both simultaneously.

Substantive civil law is subdivided into substantive law (e.g. property law, construction law, liens, easements), contract law, inheritance law and family law.

What are the sources of civil law

The sources of civil law are the legal rules that regulate civil law relations. In the Czech Republic they are as follows:

• The Constitution of the Czech Republic and the Charter of Fundamental Rights and Freedoms – they establish the fundamental rights and freedoms that civil law protects (e.g. the right to own property, the right to privacy).
• International treaties – for example, the European Convention for the Protection of Human Rights and Fundamental Freedoms, which takes precedence over Czech law.
• Civil Code – the basic code that regulates private law relations.
• Other regulations – the Commercial Corporations Act, the Private International Law Act, the Cadastral Act, etc.
• Case law – decisions of the Supreme Court and the Constitutional Court that unify the interpretation of law.

For example, if a court decides that a certain type of loan agreement is invalid, this will affect future similar cases. Such a decision will become part of the application practice and de facto a new “source” of interpretation.

How do absolute and relative rights differ?

In civil law, rights are divided into absolute and relative rights. This distinction is crucial for determining against whom a right can be enforced.

Absolute rights operate against everyone. A typical example is property rights. If you own a flat, everyone else is obliged to respect this right and not to interfere with it. It also includes personal rights such as the right to protection of name, likeness or privacy. Violation of an absolute right may lead to a claim for restraint, removal of the consequences and possible compensation for damages or non-pecuniary harm.

Relative rights , on the other hand, operate only between specific subjects. If you enter into a contract for work with a painter, a legal relationship is created between you and him – no one else is involved. Breach of contract is dealt with only by the parties to that contract.

How it works in practice: Absolute right: a neighbour trespasses on your land. You can seek protection in court against anyone who violates the right. Relative right: a mason fails to build your fence on time according to the contract. You can only sue the mason, not anyone else.

Whether the right is absolute or otherwise plays a role, for example, in limitation periods, how to defend yourself and how to proceed in court. The Supreme Court has made it clear several times that when someone interferes with an absolute right, you don’t have to prove that there was a contract between you – just that the right itself exists at all

Who is the subject of civil law?

A subject of civil law is someone who can have rights and obligations. The basic categories are:

1. Natural persons – every person from birth to death has a so-called legal personality. Legal personality (the ability to act independently in a legal capacity) is acquired at the age of majority, but it can be acquired earlier, for example by marriage. Minors and persons with limited legal capacity have special protection.
2. Legal persons – artificial entities created by registration in a public register. These include business corporations(s.r.o., a.s.), associations, foundations or municipalities. They have their own property and act through their bodies.
3. State and state institutions – in civil law they act as an equal participant, not as an authority. For example, the state can enter into a contract for the purchase of real estate in the same way as a private person.

So, if a company sells a car to a citizen and there is a breach of contract, both are equal in a legal sense. It is not their “power” or status that is decisive, but the rights and obligations under the contract.

The right in rem

Rights in rem fall under substantive civil law. They relate to things, either movable (e.g. a car) or immovable (land, house). The most important of these is the right of ownership, which gives the owner the right to hold, use, enjoy the fruits and benefits of and dispose of the thing.

Other types of property rights are:

• Joint ownership – multiple owners of one thing (ideal shares or community of property).
• Easements – the obligation of the owner to tolerate a certain use of his/her property by another person (e.g. right of way).
• Right of building – allows to build a building on someone else’s land.

Protection of rights in rem is strong. The owner may defend himself by a so-called vindication action (for the return of the thing) or by a negatory action (for refraining from interference). This means that if someone parks illegally on your land, you can demand that they remove the vehicle and possibly claim damages.

Law of obligations

Contract law governs the relationship between the creditor and the debtor. An obligation may arise from a contract (purchase, lease, work, gift), damage, unjust enrichment or other legal facts.

Contracts form the basis of economic relations. However, the law only sets out the framework rules, the rest is up to the will of the parties. Nevertheless, there are safeguards, such as consumer protection, where certain arrangements cannot be negotiated to the consumer’s disadvantage.

Imagine, for example, that you order a roof repair. The craftsman agrees to do it for CZK 340 000. If he does not do the work on time or to a poor standard, you have the right to demand a discount, a repair or to withdraw from the contract.

In contract law, the statute of limitations plays a big role – if you don’t assert your right within the legal time limit, you lose the opportunity to successfully enforce it.

Inheritance law

Another civil right is the right of succession. This determines how a person’s property passes to their heirs after their death. The basic rules are:

• Legal succession – property is inherited by relatives according to inheritance groups.
• Will – the testator can specify who inherits what.
• Heirship agreement – a bilateral agreement between the testator and the heir.
• Protection of intestate heirs – children are always entitled to a compulsory share.

For example, if a person dies without a will, the children and spouse inherit equally in the first group. If there are no children, the inheritance passes to the parents and spouse.

Disputes arise if there are multiple wills, the will is invalid or the estate is discovered after the succession proceedings have been completed.

Protection of personality and personal rights

Civil law protects everyone’s personal rights – life, health, honour, dignity, privacy, likeness and expressions of personal character. Violations of these rights can have serious consequences.

An interference with personal rights may consist, for example, in the publication of false information, the unauthorised use of a photograph or an invasion of privacy, typically in the form of wiretapping. In such cases, the injured party has the right to demand that the interfering person refrain from further infringements, that the consequences be remedied (for example, by way of a public apology) and that he or she be awarded adequate compensation for non-pecuniary damage.

The case-law of the Constitutional Court of the Czech Republic repeatedly emphasises that the protection of personality has a high priority, especially when human health or dignity is threatened.

Summary

Civil law is a key area of the Czech legal system that regulates equal relations between individuals, companies and the state in matters of property, obligations, inheritance and protection of personality. It encompasses both substantive law, which establishes rights and obligations (e.g. property or contractual), and procedural law, which determines the means of their enforcement. The sources of civil law are the Constitution, the Charter of Fundamental Rights, international treaties, the Civil Code and case law. An important distinction is made between absolute rights that apply to everyone (e.g. property rights, protection of personality) and relative rights that apply between specific subjects (e.g. contracts). Civil law subjects include natural persons, legal persons and the state as an equal partner. Rights in rem, rights of obligations, inheritance law and protection of personality form its main pillars, with protection of personal rights having a high priority in case law, especially when health or dignity is at stake. A practical knowledge of civil law is therefore essential not only for lawyers but also for anyone who wants to protect their rights and interests effectively.