According to Romanian law, a contract must contain certain elements: the obligations of the parties for the performance of the contract, the conditions of delivery and quality of the goods and/or services, time limits, payment terms and payment guarantees, instruments of payment and price insurance, contractual risk, and the method of settling any disputes arising from the contract.
Other necessary elements include the full name and identification details of the parties (for legal entities, these include the address of the registered office and the registration number) and the name of the person signing the contract (if representing a legal entity). In the event of partial or total non-performance, in addition to the penalties set by the parties in the contract, there is the possibility of claiming “damages” or compensation; our law firm in Romania can provide you with more information on this.
The following payment methods are accepted: payment order (bank transfer), cheque, bill of exchange (under certain conditions expressly mentioned by law), factoring. In the event of non-performance, the contracting parties have the possibility of instituting proceedings to recover the debt in question. The creditor will be able (after a final decision by a judge) to enforce the following assets: cash (including funds in bank accounts), debts, products, debts or other assets. This procedure is carried out by an executor (bailiff) after the judge’s decision has been issued.
Romanian contract law contains extensive legislative provisions. There are a large number of exceptional requirements (e.g. method of authentication, written form, compliance with the provisions relating to each type of contract, etc.) and important general provisions which directly influence business relations with Romanian partners.