This blog today is the third and last part of the series concerning EU law, its interaction with Romanian law and its application by lawyers in Romania.
Specific contracts
This week’s blog continues the theme of the previous weeks and relates to specific contracts and the special rules that apply to them from the Romanian legal perspective as seen by lawyers in Romania.
For certain types of contracts the EC Regulation 593/2008 (Rome I) stipulates certain options regarding the applicable law. If the contracting parties do not choose the law then the Regulation stipulates the law which is to be applied. These rules are as follows:
– contracts for the carriage of goods – in the absence of a choice of law, the applicable law will be of the country of residence of the carrier, provided that this country is also the country of the place of receipt or delivery, or the residence of the consignor. In all other cases the law of the country in which the delivery will be made will be the applicable law.
– contracts for the carriage of passengers – the applicable law can be the country of residence of the passenger or carrier, the country where the central administration of the carrier is located, or the country of departure or arrival. In the absence of a choice of law, the law of the country of residence of the passenger will apply, provided that it is also the country of departure or destination. In certain circumstances if the contract is more closely related to another country, then the law of that country will apply;
– consumer contracts between consumers and professionals – the applicable law is that of the country of residence of the consumer, provided that this is the country where the professional carries out his/her activities or to which his/her activities are directed. The parties may also, based on freedom of choice, apply another law, as long as it provides at least the same level of protection to the consumer as that of his/her country of residence;
– insurance contracts – in the absence of choice, the applicable law will be that of the country of residence of the insurer. However, if the contract is more closely related to another country, that country’s law will apply;
– individual employment contracts – the applicable law may be determined on the basis of the freedom of choice principle otherwise it is the country where the work is carried out. The parties can chose another law provided that the level of protection granted to the employee remains the same as with the applicable law in the absence of choice as provided above. In the absence of choice the law governing the contract will be that of the country where, or from where, the employee carries out his/her employment. If this cannot be determined, the applicable law will be that of the country where the place of business is located. However, if the contract is more closely related to another country, that country’s law will apply.
Conclusion
The law determined by using the criteria stipulated through the rules previously referred to and the Regulation will be used for interpretation, performance, penalties for breaching obligations, assessment of damages, termination of obligations, instructions for actions and penalties for invalid contracts.
The use of an international Romanian law firm or other Romanian law firm will help you decide which provisions do apply to any contract with a foreign element. To properly carry on your business in Romania a proper analysis of laws is necessary by Romanian lawyers to ensure that the right selection is made for the parties and the contract.