If you are not satisfied with the services provided by a service provider in Romania, according to the Romanian Law, you can terminate the agreement, pay the services already received and accepted by you, find another service provider in Romania to work with and sign an agreement with another service provider in Romania. A Romanian lawyer specialized in commercial agreements, corporate and M&A will assist you with amending, drafting negotiating and reviewing the new agreement concluded with the service provider. Also, Pavel, Mărgărit and Associates Romanian Law Firm recommends addressing to a lawyer specialized in commercial agreements, corporate and M&A law who is able to advise you on the steps to be taken in order to terminate the Agreement concluded with the service provider in Romania in case of non-fulfilment of the contractual obligations.
How does the termination of the agreement concluded with a service provider operate in Romania? Conditions.
The termination of the agreement concluded with a service provider in Romania is a contractual sanction, with effects for the future, manifested at the agreements with successive execution in Romania. The services performed up to the time of termination of the agreement are not affected, which means that both parties to the bilateral agreement remain liable for the performance made by the other party until that date.
“It may be also a cross border transaction between a Romanian provider and a party from another jurisdiction. We have drafted and revised different kind of cross border agreements in Romania and assisted with the termination of such agreements when the case”, said Radu Pavel, the Managing Partner of Pavel, Margarit and Associates Romanian Law Firm.
For the implementation of the effects of the termination it is necessary the fulfillment of the general conditions, these being:
- the non-fulfilment of the contractual obligations in Romania;
- the formal notice sent to the debtor of the obligation:
- the non-fulfilment of the contractual obligations in Romania is significant or repeated.
An important aspect is that the termination of the agreement concluded with a service provider in Romania can occur even when the non-fulfilment of the contractual obligations in Romania is minor but repeated, which is why Pavel, Mărgărit and Associates Romanian Law Firm recommends to receive advice from a lawyer specialized in commercial agreements, corporate and M&A law who, analyzing the contractual situation, may decide on the event of default occurred as well as on the applicable remedies in Romania.
The creditor of the unfulfilled obligation, who is in default, has the right to request the unilateral termination of the agreement concluded with the service provider in Romania, when this sanction is expressly provided by the parties and there is an event of default in force, as defined and decribed in the Romanian agreement. There are also other situations when the effects of the termination are applicable, namely when the service provider is in default by Romanian law, when occurring an event of default in Romania, or even when the provider had a reasonable time to fulfil the obligation, but this has not been achieved. The declaration of termination must be made within the limitation period provided by Romanian law for the corresponding no fulfilment or event of default, and may be registered in the land book or, as the case may be, in other public registers like the Romanian National Registry (Electronic Archive), in order to be effective against third parties.
Pavel, Mărgărit and Associates Romanian Law Firm recommends the insertion of the termination clause and the event of default clauses in the agreement in Romania, for an additional protection for the creditor of the unfulfilled obligation, in order to be protected in case of termination of the agreement in Romania. The event of default clauses and the conditions for sanctioning the non-fulfilment of the contractual obligations assumed by the other party may be reasons for the termination of such agreement in Romania. As provided in the Romanian Civil Code, in this case the termination of the agreement is subordinated to the formal notice to the debtor, unless it has been agreed that it will result from the simple fact of non- fulfilment/event of default. The formal notice to the debtor shall take effect only if it expressly indicates the conditions under which the termination clause operates.
Another possibility that the creditor of the unfulfilled obligation has is the enforcement of the service provider in Romania, but in this case the creditor cannot request the termination of the agreement in Romania.
Pavel, Mărgărit and Associates Romanian Law Firm recommends addressing to a lawyer specialized in commercial agreements, corporate and M&A law who can guide you in choosing a contractual remedy according to the legal situation or according with the event of default occurred, as well as to assist you in concluding the agreement with another service provider in Romania, being present in the phase of negotiating, drafting or reviewing such a contract in Romania.
Pavel, Margarit & Associates Romanian Law Firm is one of the top law firms in Romania, offering top legal advice. The Romanian law firm’s clients are foreign and top local companies and high worth individuals. In 2022, the success stories of the Romanian Law Firm have brought recognition from the most prestigious international guides and publications. The firm was ranked third place in Romania by the Legal 500 publication. The Romanian law firm is also recognized by IFLR 1000 Financial and Corporate Guide 2022. Pavel, Margarit & Associates Romanian Law Firm is also the only law firm in Romania recommended by the Global Law Experts Director in London in the Dispute Resolution area of Practice. All the relevant information regarding Pavel, Margarit & Associates Romanian Law Firm can be found on the website www.avocatpavel.ro.