Business Law and Civil Law of Armenia
Civil Code foundations
The Civil Code of the Republic of Armenia governs legal persons, contracts, obligations, property, and liability. Candidates should understand: formation of contracts (offer, acceptance, consideration-equivalent), capacity, representation, void vs voidable transactions, and limitation periods. Armenian law distinguishes transactions that are invalid by operation of law (void) from those that are voidable at the request of a party.
Business entities
Know the principal forms: limited liability company (LLC), joint-stock company (open and closed), and sole proprietorship. Understand governance: the general meeting of participants, the executive body (director), and the requirement for a charter. LLCs are the most common form; joint-stock companies are subject to securities regulation. Traps: questions test whether a director has authority to bind the company without a board resolution, and the distinction between share transfer restrictions in LLCs (pre-emptive rights) and JSCs.
Insolvency and liability
Armenian insolvency law provides for rehabilitation and liquidation procedures; directors owe duties to creditors as insolvency approaches. Civil liability can be contractual or delictual (tort); the burden of proof differs.
Worked rule of thumb
For contract questions, apply the sequence: (1) is there a valid offer and acceptance? (2) is the subject matter lawful? (3) is the form correct (some contracts require notarisation or registration)? (4) has the limitation period expired? If any step fails, the transaction may be void or unenforceable.