The Ministry of Justice Has Prepared a Draft Law Distinguishing the Period for Discovering Defects in Goods from the Limitation Period

The Ministry of Justice of Russia has prepared the draft federal law “On Amendments to Article 477 of Part Two of the Civil Code of the Russian Federation”[1]. The draft law was prepared in order to implement Ruling No. 38-P of the Constitutional Court of the Russian Federation dated 9 June 2026[2] which declared paragraph 2 of Article 477 of the Civil Code of the Russian Federation unconstitutional to the extent that it creates uncertainty as to whether a buyer may bring court claims after the expiry of the two-year period for discovering defects, provided that the defects themselves were identified within that period.

Context

Currently, paragraph 2 of Article 477 of the Civil Code of the Russian Federation provides that, where no warranty period or shelf life has been established for goods, the buyer may bring claims relating to defects in the goods, provided that such defects were discovered within a reasonable period, but in any event within two years from the date of transfer of the goods to the buyer.

In practice, the question arose as to whether this two-year period is only a period for discovering defects in goods, or whether it also limits the period for submitting a claim to the seller and bringing a claim before a court.

The Constitutional Court of the Russian Federation noted that the uncertainty of this provision had led to its inconsistent application by courts. In some cases, the period under paragraph 2 of Article 477 of the Civil Code of the Russian Federation was effectively treated as a cut-off period for submitting claims to the seller or applying to court. For example, in one case, the courts dismissed a buyer’s claim concerning defects in an apartment because the pre-trial claim regarding the defects had been submitted to the seller after the expiry of two years from the date of transfer of the apartment. In doing so, the two-year period under paragraph 2 of Article 477 of the Civil Code of the Russian Federation was effectively applied as a period for submitting claims to the seller, although the provision itself refers to the period for discovering defects[3]. In other cases, courts proceeded on the basis that this period only determines the time within which defects must be discovered, while a court claim may be brought later — within the limitation period[4].

Proposed amendments

The draft law proposes to expressly provide that the period established by paragraph 2 of Article 477 of the Civil Code of the Russian Federation is a period for discovering defects in goods, and not a limitation period. If defects in goods were discovered within this period, the buyer will be able to bring court claims after its expiry, but only within the applicable limitation period. Such limitation period will be calculated under the general rules of civil law after the defects were or should have been discovered[5].

Separate importance is attached to notifying the seller. The date on which defects in goods are discovered will be determined taking into account the date of notice to the seller under Article 483 of the Civil Code of the Russian Federation, unless otherwise proven. If the buyer does not notify the seller, or does so only after the expiry of the period for discovering defects, the buyer will bear the burden of proving that the defects were identified in due time.

The draft law also preserves the possibility for law or a sale and purchase agreement to establish other periods for discovering defects, rules for calculating such periods, or consequences of late notice to the seller, taking into account the specific nature of the goods, the composition of the parties, and other circumstances of the transaction.

Lidings Comment 

The draft law is aimed at eliminating the uncertainty that, in practice, allowed courts to treat the period for discovering defects in goods as a substitute for the limitation period. For buyers, this will mean that the expiry of two years from the date of transfer of goods will not automatically result in the loss of the right to sue, provided that the defects were identified within the established period. For sellers, by contrast, this increases the period of legal uncertainty. If a buyer discovers defects close to the end of the two-year period, the buyer will be able to apply to court to resolve the dispute within three years from the date on which the defects were discovered.

At the same time, the draft law does not eliminate procedural risks for buyers. The key issue in such disputes will be not only the existence of defects, but also the moment when they were discovered. Accordingly, notices to the seller, correspondence between the parties, inspection reports, expert opinions, and other evidence confirming when exactly the buyer identified the defects will be of particular importance.

From a practical perspective, parties to sale and purchase agreements should regulate in advance the procedure for inspecting the goods, the timing and method of notifying the seller of defects, the consequences of late notice, and the specifics of accepting goods in their current condition. This is particularly relevant for transactions involving real estate and equipment whose defects may become apparent only after the goods have been transferred to the buyer.