In the case where Romanian laws are applicable to the specific Contract (any litigations between the parties are to be solved by a Romanian Court), entering into contractual relations with a Romanian party implies knowing more about the respective Romanian regulations. The requirements listed below are to be taken into account when concluding commercial contracts per the Romanian Law including: sale/purchase pre-contracts and final contracts, rental/lease agreements, mortgage contracts, cession contracts, leasing, service providing, construction contracts, insurance contracts, commission agreements, transportation contracts etc.

Per the stipulations of the Romanian law, a contract must contain certain elements: obligations of the parties for the fulfillment of the contract, delivery and quality conditions of goods and/or services, terms, payment methods and payment guarantees, payment instruments and price insurance, contractual risk, as well as method of solving eventual litigations arising from the contract. Other required elements include the full name and identification details of the parties (for legal entities these include headquarter address and registration number) and name of the

person signing the contract (when representing a legal entity).

In case of partial or total non-fulfillment, besides the penalties established by the parties through the contract, there is the possibility of requesting “interest-damages” or compensations.

The following payment methods are acceptable: payment order (bank transfer), check, bills of exchange (in certain conditions expressly mentioned by the Law), factoring.

In case of non-fulfillment, the contracting parties are able to start trials for the recuperation of their respective debt. The creditor will be able (after a definitive decision from a Judge) to execute the following assets: liquidities (including funds in bank accounts), dues, products, debts or other patrimonial values. This procedure is done through a Legal Executor (Bailiff) after the Judge’s decision is emitted.

Romanian Contract Law contains vast legislative dispositions. There are an important number of exceptional requirements (e.g. the method of authentication, written form, accordance with dispositions regarding each separate type of contract etc.) and important general dispositions that directly influence business relationships with Romanian partners.