Mongolia

Enforcing Contracts in

Mongolia

Below is a detailed summary of the efficiency of contract enforcement. It follows the evolution of a sale of goods dispute, tracking the time, cost and number of procedures involved from the moment the plaintiff files the lawsuit until actual payment.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 185 economies. The most recent round of data collection was completed in June 2012.

Compare Mongolia to 184 other economies.

  • Competent Court

  • Court Name: Ulaanbaatar District Court
  • City: Ulaanbaatar

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Indicator
Time (days) 314
Filing and service 14
Trial and judgment 120
Enforcement of judgment 180
Cost (% of claim) 30.6
Attorney cost (% of claim) 14.9
Court cost (% of claim) 7.2
Enforcement Cost (% of claim) 8.5
Procedures (number) 32
Filing and service
1      Plaintiff requests payment: Plaintiff or his lawyer asks Defendant orally or in writing to comply with the contract.
2      Plaintiff’s hiring of lawyer: Plaintiff hires a lawyer to represent him before the court.
*      Plaintiff’s filing of summons and complaint: Plaintiff files his summons and complaint with the court, orally or in writing.
*      Plaintiff’s payment of court fees: Plaintiff pays court duties, stamp duties, or any other type of court fee.
3      Registration of court case: The court administration registers the lawsuit or court case. This includes assigning a reference number to the lawsuit or court case.
*      Assignment of court case to a judge: The court case is assigned to a specific judge through a random procedure, automated system, ruling of an administrative judge, court officer, etc.
*      Judge admits summons and complaint: After verifying the formal requirements, the judge decides to admit Plaintiff’s summons and complaint.
*      Mailing of summons and complaint: Court or process server, including (private) bailiff, mails summons and complaint to Defendant.
4      First attempt at physical delivery: A first attempt to physically deliver summons and complaint to Defendant is successful in the majority of cases.
5      Substituted service: Substituted service is accomplished by publication in newspapers, by affixing a notice in court or on public bulletin boards, etc.
*      Proof of service: Plaintiff submits proof of service to court.
*      Application for pre-judgment attachment: Plaintiff submits an application in writing for the attachment of Defendant's property prior to judgment. (see assumption 5)
*      Decision on pre-judgment attachment: The judge decides whether to grant Plaintiff’s request for pre-judgment attachment of Defendant’s property and notifies Plaintiff and Defendant of the decision. This step may include requesting that Plaintiff submit guarantees or bonds to secure Defendant
6      Pre-judgment attachment.: Defendant's property is attached prior to judgment. Attachment is either physical or achieved by registering, marking, debiting or separating assets. (see assumption 5)
7      Report on pre-judgment attachment: Court enforcement officer or (private) bailiff issues and delivers a report on the attachment of Defendant’s property to the judge. (see assumption 5)
..
Trial and judgment
8      Defendant’s filing of defense or answer to Plaintiff’s claim: Defendant files a written pleading which includes his defense or answer on the merits of the case. Defendant's written answer may or may not include witness statements, expert statements, the documents Defendant relies on as evidence and the legal authori
9      Filing of pleadings: Plaintiff and Defendant file written pleadings and submissions with the court and transmit copies of the written pleadings or submissions to one another. The pleadings may or may not include witness statements or expert (witness) statements.
*      Court appointment of independent expert: Judge appoints, either at the parties' request or at his own initiative, an independent expert to decide whether the quality of the goods Plaintiff delivered to Defendant is adequate. (see assumption 6-b of this case)
10      Notification of court-appointment of independent expert: The court notifies both parties that the court is appointing an independent expert. (see assumption 6-b of this case)
*      Delivery of expert report by court-appointed expert: The independent expert appointed by the court delivers his or her expert report to the court. (see assumption 6-b of this case)
*      Setting of date(s) for oral hearing or trial: The judge sets the date(s) for the oral hearing or trial.
*      List of (expert) witnesses: The parties file a list of (expert) witnesses with the court. (see assumption 6-a)
11      Summoning of (expert) witnesses: The court summons (expert) witnesses to appear in court for the oral hearing or trial. (see assumption 6-a)
12      Oral hearing (prevalent in civil law): The parties argue the merits of the case at an oral hearing before the judge. Witnesses and a court-appointed independent expert may be heard and questioned at the oral hearing.
*      Final arguments: The parties present their final factual and legal arguments to the court either by oral presentation or by a written submission.
13      Judgment date: The judge sets a date for delivery of the judgment.
14      Notification of judgment in court: The parties are notified of the judgment at a court hearing.
15      Writing of judgment: The judge produces a written copy of the judgment.
16      Registration of judgment: The court office registers the judgment after receiving a written copy of the judgment.
17      Court notification of availability of the written judgment: The court notifies the parties that the written judgment is available at the courthouse.
18      Plaintiff's receipt of a copy of written judgment: Plaintiff receives a copy of the written judgment.
19      Notification of Defendant of judgment: Plaintiff or court formally notifies the Defendant of the judgment. The appeal period starts to run the day the Defendant is formally notified of the judgment.
20      Appeal period: By law, Defendant has the opportunity to appeal the judgment during a period specified in the law. Defendant decides not to appeal. Judgment becomes final the day the appeal period ends.
21      Reimbursement by Defendant of Plaintiff's court fees: The judgment obliges Defendant to reimburse Plaintiff for the court fees Plaintiff has advanced, because Defendant has lost the case.
..
Enforcement of judgment
*      Plaintiff’s hiring of lawyer: Plaintiff hires a lawyer to enforce the judgment or continues to be represented by a lawyer during the enforcement of judgment phase.
*      Plaintiff’s request for enforcement order: Plaintiff applies to the court to obtain the enforcement order ('seal' on judgment).
22      Plaintiff’s advancement of enforcement fees: Plaintiff pays the fees related to the enforcement of the judgment.
23      Attachment of enforcement order to judgment: The judge attaches the enforcement order (‘seal’) to the judgment.
*      Delivery of enforcement order: The court's enforcement order is delivered to a court enforcement officer or a (private) bailiff.
*      Plaintiff’s request for physical enforcement: As Plaintiff fears that Defendant might physically resist the attachment of its movable goods, Plaintiff addresses a request to the judge or to the police authorities to obtain police assistance during the attachment of Defendant's movable goods.
24      Judge's order for physical enforcement: The judge orders the police to assist with the physical enforcement of the attachment of Defendant's movable goods.
25      Identification of Defendant's assets for attachment by court official or Defendant: Judge, a court enforcement officer, a (private) bailiff or the Defendant himself identifies Defendant's movable assets for attachment.
26      Contestation of selection of assets identified for attachment: The party, Plaintiff or Defendant, who was not involved in the designation of the assets to be attached, contests the selection of assets for attachment.
27      Attachment: Defendant’s movable goods are attached (physically or by registering, marking or separating assets).
28      Report on execution of attachment: A court enforcement officer or private process server delivers a report on the attachment of Defendant's movable goods to the judge.
29      Sale through public auction: The Defendant’s movable property is sold at public auction.
30      Judge's decision on bids: The judge determines the adequacy of the bids presented at public auction.
31      Reimbursement of Plaintiff’s enforcement fees: Defendant reimburses Plaintiff's enforcement fees which Plaintiff had advanced previously.
32      Payment: Court orders that the proceeds of the public auction or the direct sale be delivered to Plaintiff.
..
* Takes place simultaneously with another procedure.
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