Signing a Contract with a Montenegro Company
Signing a Contract with a Montenegro CompanyUpdated on Monday 09th October 2017
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The Law on Obligations in Montenegro stipulates the legal conditions assumed by any party when signing a contract with a Montenegro company. Doing business in Montenegro implies entering into contractual relations between companies and other legal persons engaging in economic activities. It is highly advisable to turn to the services of a professional law firm in Montenegro when entering into any type of contractual agreement.
Types of contracts in Montenegro
The business environment in Montenegro is very friendly to foreign investments, providing many incentives for those interested in setting up a company in this country. Depending on the situation, several types of contracts can be signed in Montenegro. These include the following:
• Commercial contracts – they can be entered into by Montenegrin companies, other corporate bodies engaged in economic activities and individuals who operate as sole traders in certain domains in the country. The principle of equity rests at the basis of any commercial contract;
• Sale contracts – the object of this type of contract must by tradable (in trade) and may also relate to a future object. Under the provisions of the Commercial Law in Montenegro, any sale contract has to contain a determined price for the object to be sold. A sale contract has no legal effect if the price is undetermined; If you wish to sell or to purchase a certain good (for example a property or a company), our lawyers in Montenegro are ready to assist you in drafting the sale contract or in analyzing and vetting such a contract, in order to avoid any possible risks;
• Employment contracts – they regulate the working conditions, the salary, the number of working days per week and any restrictions on work. The Employment Law in Montenegro provides the legal aspects to be taken into consideration when drafting an employment contract: hiring conditions, working hours, redundancy rules and costs, and job quality.
Detailed information about the types of contracts available in the local legislation can be provided to you by our attorneys in Montenegro.
Contractual liability in Montenegro
The Law on Contracts and Torts in Montenegro stipulates the liability clauses, the ways of settling contractual breaches and the compensatory and punitive damages. When signing a contract with a Montenegro company, all the parties involved should be aware of the contractual liabilities. There are different types of contractual liabilities provided within the legislation: for substantive and legal failure of performance, liability due to the impossibility of performance and liability due to repudiation or alteration of contract.
Don`t hesitate to contact our lawyers in Montenegro for further information about contractual liabilities and specialized assistance when concluding a contract with a Montenegro company.