Contracts in economy

On February 11-12, Academy of Justice within CTP organized training on Contracts in Economy.

Purpose of this training was to extend the judges knowledge on commercial contracts and correct application of the Law on Obligational Relationships and of the Convention for International Sale of Goods.

First day of the training elaborated on the franchise, the assignment, and leasing contracts and heir specifics. Second part of this day elaborated on the contracts for international sale of goods, loan contracts, license contracts and other public contracts, their types and their main features.

This training emphasized that in the market economy, advanced businesses that deal with specific activities, use specific contracts for their businesses that are different in structure and in the aspect of rights and obligations they create for the parties. Specific contracts in doing business, banking and in insurance areas have found a great use having in mind the market opening.

Furthermore, this training emphasized that business organizations in doing business in the international arena often apply contracts for which the Convention for international sale of goods is applicable. As a result, the judicial practice has faces considerable number of cases, with constant tendency to grow, therefore extending knowledge about this topic is important.

One of the highlights was that in our country’s legal system the contractual relations are regulated according to the Law on Obligational Relationships as a basic law. The LOR provisions that relate to contracts are applied in cases of the contractual relations between physical persons as well as in contractual relations between business organizations and other legal persons. Since in cases of flow of goods and services often one of the parties is not a local company, then these transactions take international character, and according to the LOR, the Convention for International Sale of Goods (CISG) is applied, as it finds direct application in the Republic of Kosovo.

Conducting negotiations especially their termination was given particular attention, to include also the principles of the law on obligations like the following: principle of honesty and consciousness, and the principle of causing harm to the other party, which are included in the LOR.

It was continued to conclude that the banking business is a special economic activity, which basic object is money circulation, but it contains also several transactions and other financial products. In general, the banking and financial institutions facilitate business activities and it often happens that banks specialize in specific financial issues that are required from the market.

In this training participants had the opportunity to elaborate and discuss on provisions of the LOR and other applicable laws that regulate this area.

Beneficiaries of this training were judges of the economic and administrative departments of the Basic Court and of the Appeals Court, as well as judges of civil and general divisions, as well as professional associates.