Contracts

Every natural or legal person concludes multiple contracts on a daily basis. Buying groceries or any other kinds of goods is considered a contract of sale. In this example, for a contract to be concluded, it is necessary that the person who buys the goods and the person who sells them reach a consensus regarding the goods being sold, as well as the price of it. Besides the goods, the subject of the contract can be various services.

A contract will be considered concluded if the prerequisites which the Law regulates are met, as are the determinability of the subject or the price, mutual will, legal competence of the contracting parties and other.

In certain cases as an extra requirement for a contract to be concluded the proper form is needed. For example the law requires an imperative written form of the contract. Such contracts are called formal contracts. It is possible to consensually declare a written form as a necessary form for a contract. In any case, written contracts are evidence of existence for rights and obligations of the contracting parties. In case of a dispute, the existence of certain rights and responsibilities as well as the terms and conditions of the cooperation and relationship between the contracting parties it is easier to prove if the is a written contract. Hence, in the following text we will state some of the reasons for the necessity of the written form for contracts.

WRITTEN FORM OF CONTRACTS

As it was stated, the legal provisions regulate the mandatory written form of certain types of contracts or even the solemnized form. For example a contract of sale of real estate, must be concluded in the form of a notarized (solemnized) document. Hence, that contract has to be concluded in written form and solemnized by a public notary, otherwise in will not be legally binding.

Besides that, in situations when the law does not even require a necessary written form of the contract, the complexity of the relations between two or more people can dictate the written form of the contract so that such relationship may be regulated in the best possible way. Also, a spoken agreement or an oral consensus of wills does not guarantee that the agreed upon obligations will be executed. Hence, a signed written contract is proof enough of a reached agreement, i.e. the rights and obligations of the people that regulate their mutual relations. From the moment of the conclusion of the contract, the contract represents the law for the contracting parties, and failure to execute the obligations from the contract will result in legal consequences and the rights for the other party.

Even though the contracting parties are free to regulate their mutual relations in accordance with their will and requirements, they have to respect the mandatory provisions of the law. In other words contracting parties are free to regulate their mutual relations as they please, but in doing so they have to respect the mandatory provisions of the law, the public order and good customs.

Additionally, certain legal provisions are prescribed in a way that they give rights to a certain group of people, but contracting otherwise is possible. For example the Law on Copyright and Related Rights prescribes that the user of the copyright, on the basis of the contract for performance, has the right to publish the copyright and to place the authors work on the market, and the author retains the other rights, unless stated otherwise in the contract. If a computer program was created based on the performance contract, the user gains all rights regarding the exploitation of the computer program, unless stated otherwise in the contract. So, if not stated otherwise in the contract, the provisions stated under the law will be applicable. In that case, if you are an author of a computer program which you have created under the performance contract, in accordance with the law the user will gain all the rights regarding the exploitation of the computer programs you as well want to have certain exploitation rights of such computer program and the user agrees with that, it is necessary to draft a contract on the basis of which the rights of exploitation which the author shall have, along with any potential time or territory limits will be pointed-out.

 

TYPES OF CONTRACTS

 

  • Formal
  • Informal contracts
 
  • Unilaterally binding contracts
  • Bilaterally binding contracts
 
  • Commutative Contracts
  • Aleatory Contracts
 
  • contracts with immediate benefits
  • contracts with continuous benefits
 
  • Individual contracts
  • Collective contracts
 
  • Personal contracts
  • Impersonal contracts
 
  • Contracts with a fee
  • Cost No Fee contracts

 

Mutual wills can be achieved verbally – orally, but in that case it does not guarantee the legal security to the contracting parties that the agreed upon rights and obligations will be executed. Besides that, the imperative provision dictates the mandatory written form for a large number of contracts, and for some notarizing the signatures, i.e. solemnization is required.

The Law firm provides services of drafting a large number of contracts, real estate related ones, contracts regarding various services, business-technical cooperation, order of a computer program, transfer assignment and transfer of the intellectual property, various contracts in the sphere of economy, as well as many other contracts needed for the everyday business of your company.