The contract of commercial agency

By a contract of commercial agency the agent shall assume the obligation to take permanent care that third persons enter into contracts with his principal, and to mediate in that respect between them and the principal, as well as to enter into contracts, after obtaining authorisation, with third persons on behalf and for the account of the principal, while the principal shall assume the obligation to pay to him, for each contract concluded, an agreed fee (brokerage).

A principal may have several agents in the same area for the same kind of business. One agent shall not, without his principal’s consent, assume the obligation to work for another principal regarding the same kind of business in the same area.

A contract of commercial agency must be concluded in written form. Concluding Contracts on Behalf of a Principal An agent may conclude contracts on behalf and for the account of his principal only after obtaining from him a corresponding particular or general authorisation. Continue reading The contract of commercial agency

License agreement

A license agreement is governed by the provisions of Articles 686 to 711 of the Law of Contract and Torts.

By a licensing agreement a licensor shall assume the obligation to assign to a licensee, entirely or partially, the right of use (franchise) of an invention, technical know-how and experience, trade-mark, sample or model, while the licencee shall assume the obligation to pay a specified fee in return.

A licensing agreement must be concluded in written form.

A license for the use of a patented invention, sample or model, shall not be concluded for a period longer than the one covered by statutory protection of such rights. Continue reading License agreement

Mortgage agreement

Mortgage Law governs the mortgage, for the purpose of securing and collection of claims. A mortgage is a lien right on real estate, which empowers the creditor, in the event of the debtor’s failure to pay a matured debt, to request the collection of claim secured by the mortgage from the value of the real estate prior to the ordinary creditors and prior to junior mortgage creditors, regardless of who is in the possession of the real estate.

Mode of Institution and Types of Mortgage

A mortgage is instituted by registration in the competent real estate registry, on the basis of:

  • Agreement or a judicial settlement (contractual mortgage)
  • Mortgage deed (unilateral mortgage)
  • Statute (statutory mortgage)
  • Court decision (judicial mortgage).

The contractual mortgage rules apply mutatis mutandis to unilateral, statutory and judicial mortgage, unless otherwise provided by law. Continue reading Mortgage agreement