diff --git a/app/controllers/epp/contacts_controller.rb b/app/controllers/epp/contacts_controller.rb
index 5b0a39bbf..14c6de7b6 100644
--- a/app/controllers/epp/contacts_controller.rb
+++ b/app/controllers/epp/contacts_controller.rb
@@ -19,6 +19,8 @@ class Epp::ContactsController < EppController
     authorize! :create, Epp::Contact
     @contact = Epp::Contact.new(params[:parsed_frame], current_user.registrar)
 
+    @contact.add_legal_file_to_new(params[:parsed_frame])
+
     if @contact.save
       render_epp_response '/epp/contacts/create'
     else
diff --git a/app/controllers/epp/domains_controller.rb b/app/controllers/epp/domains_controller.rb
index 91ddeb93d..fb3441580 100644
--- a/app/controllers/epp/domains_controller.rb
+++ b/app/controllers/epp/domains_controller.rb
@@ -30,6 +30,8 @@ class Epp::DomainsController < EppController
     handle_errors and return unless balance_ok?('create') # loads pricelist in this method
 
     ActiveRecord::Base.transaction do
+      @domain.add_legal_file_to_new(params[:parsed_frame])
+
       if @domain.save # TODO: Maybe use validate: false here because we have already validated the domain?
         current_user.registrar.debit!({
           sum: @domain_pricelist.price.amount,
diff --git a/app/models/contact.rb b/app/models/contact.rb
index fdb114673..5ec9c0a46 100644
--- a/app/models/contact.rb
+++ b/app/models/contact.rb
@@ -12,6 +12,10 @@ class Contact < ActiveRecord::Base
   # TODO: remove later
   has_many :depricated_statuses, class_name: 'DepricatedContactStatus', dependent: :destroy
 
+  has_paper_trail class_name: "ContactVersion", meta: { children: :children_log }
+
+  attr_accessor :legal_document_id
+
   accepts_nested_attributes_for :legal_documents
 
   validates :name, :phone, :email, :ident, :ident_type,
@@ -497,8 +501,14 @@ class Contact < ActiveRecord::Base
     ]).present?
   end
 
- def update_related_whois_records
-   related_domain_descriptions.each{ |x, y| WhoisRecord.find_by(name: x).try(:save) }
- end
+  def update_related_whois_records
+    related_domain_descriptions.each{ |x, y| WhoisRecord.find_by(name: x).try(:save) }
+  end
+
+  def children_log
+    log = HashWithIndifferentAccess.new
+    log[:legal_documents]= [legal_document_id]
+    log
+  end
 
 end
diff --git a/app/models/epp/contact.rb b/app/models/epp/contact.rb
index f4773f732..a3180a534 100644
--- a/app/models/epp/contact.rb
+++ b/app/models/epp/contact.rb
@@ -36,10 +36,7 @@ class Epp::Contact < Contact
       at[:country_code] = f.css('postalInfo addr cc').text     if f.css('postalInfo addr cc').present?
       at[:auth_info]    = f.css('authInfo pw').text            if f.css('authInfo pw').present?
 
-      legal_frame = f.css('legalDocument').first
-      if legal_frame.present?
-        at[:legal_documents_attributes] = legal_document_attrs(legal_frame)
-      end
+
       at.merge!(ident_attrs(f.css('ident').first)) if new_record
       at
     end
@@ -152,6 +149,12 @@ class Epp::Contact < Contact
 
     legal_frame = frame.css('legalDocument').first
     at[:legal_documents_attributes] = self.class.legal_document_attrs(legal_frame)
+
+    if doc = attach_legal_document(parse_legal_document_from_frame(frame))
+      frame.css("legalDocument").first.content = doc.path if doc && doc.persisted?
+      self.legal_document_id = doc.id
+    end
+
     self.deliver_emails = true # turn on email delivery for epp
 
 
@@ -213,4 +216,34 @@ class Epp::Contact < Contact
 
     status_list
   end
+
+  def attach_legal_document(legal_document_data)
+    return unless legal_document_data
+
+    legal_documents.create(
+        document_type: legal_document_data[:type],
+        body: legal_document_data[:body]
+    )
+  end
+
+  def add_legal_file_to_new frame
+    if doc = attach_legal_document(parse_legal_document_from_frame(frame))
+      raise ActiveRecord::Rollback if doc && doc.id.nil?
+
+      frame.css("legalDocument").first.content = doc.path if doc && doc.persisted?
+      self.legal_document_id = doc.id
+    end
+  end
+
+  def parse_legal_document_from_frame frame
+    ld = frame.css('legalDocument').first
+    return nil unless ld
+    return nil if ld.text.starts_with?(ENV['legal_documents_dir'])
+
+    {
+        body: ld.text,
+        type: ld['type']
+    }
+  end
+
 end
diff --git a/app/models/epp/domain.rb b/app/models/epp/domain.rb
index 6cda7712f..d0f83fd9f 100644
--- a/app/models/epp/domain.rb
+++ b/app/models/epp/domain.rb
@@ -194,9 +194,21 @@ class Epp::Domain < Domain
     end
 
     at[:dnskeys_attributes] = dnskeys_attrs(dnskey_frame, action)
-    at[:legal_documents_attributes] = legal_document_from(frame)
+
     at
   end
+
+
+  # Adding legal doc to domain and
+  # if something goes wrong - raise Rollback error
+  def add_legal_file_to_new frame
+    if doc = attach_legal_document(Epp::Domain.parse_legal_document_from_frame(frame))
+      raise ActiveRecord::Rollback if doc && doc.id.nil?
+
+      frame.css("legalDocument").first.content = doc.path if doc && doc.persisted?
+      self.legal_document_id = doc.id
+    end
+  end
   # rubocop: enable Metrics/PerceivedComplexity
   # rubocop: enable Metrics/CyclomaticComplexity
   # rubocop: enable Metrics/MethodLength
@@ -456,15 +468,6 @@ class Epp::Domain < Domain
     status_list
   end
 
-  def legal_document_from(frame)
-    ld = frame.css('legalDocument').first
-    return [] unless ld
-
-    [{
-      body: ld.text,
-      document_type: ld['type']
-    }]
-  end
 
   # rubocop: disable Metrics/AbcSize
   # rubocop: disable Metrics/CyclomaticComplexity