All contracts to be considered legal and produce legal effects must meet certain conditions:
- the declaration of the intention must be given by a person who has the necessary legal capacity, serious – made to produce the legal effect, and not for any other purpose, free (that there is no defect of consent) – delusion, fraud and/or the threat, in the necessary form, that the desired legal actions are per law and morality
- that the basis of the contract exists
- that the condition is allowed and possible.
The sanction for non-fulfilment of these conditions is the invalidity of the contract, which can be different, depending on the type of defect.
For the most serious defects, the sanction is the nullity of the contract (absolute nullity), while for those who have a lower degree of violation, it is annulment – destruction (relative nullity). There is also a third sanction under contracts, recognized by legal science, which consists of non-existent contracts. Continue reading Invalidity of the Contracts
By the provisions of Articles from 749 to 770 of the Law of the Contract and Torts shall be regulated the notion of the contract of order, obligations of the person accepting the order and the orderer related to performing of order as well as the reasons for termination of the order.
By a contract of order the person accepting the order shall assume the obligation to the orderer to undertake specific transactions for his account. At the same time the person accepting an order shall be authorized to undertake such transactions.
The person accepting an order shall be entitled to remmuneration for his effort, unless otherwise provided by the contract or resulting from the nature of the mutual relations of the parties.
Persons Obliged to Respond to Offering an Order
One professionally engaged in performing other persons’ transactions, or in making public offers to perform such transactions, shall be bound, if unwilling to accept an offered order relating to such transactions, to notify without delay the other party thereof, otherwise he shall be liable for loss sustained by such party. Continue reading Order
An obligation shall be terminated after being fulfilled, as well as in other cases provided by law. According to provisions of the Law of Contract and Torts, other cases of termination of obligations are offsetting (compensation), remission of debt, substitution (innovation), integration (merger), the impossibility of fulfilment, flow of time, notice and death.
The termination of the principal obligation shall also extinguish the pledge, mortgage, and other accessory rights.
Who can fulfill obligations and expenses of the fulfillment of obligations?
An obligation may be fulfilled not only by a debtor but also by a third person. A creditor shall be bound to accept fulfilment by every person having a legal interest in fulfilling the obligation, even should the debtor be opposed to such fulfilment. Continue reading General rules of fulfilment of obligations