Signing a Contract with a Russian Company
Signing a Contract with a Russian CompanyUpdated on Monday 18th April 2016
based on 2 reviews
When entering in business with a company, certain contracts must be signed. Russia has a very complex law on contracts that is set out in the Civil Code. According to the Contract Law in Russia, a contract is an agreement between two or more persons that establishes changes or terminates certain civil laws or duties.
The Russian Contract Law
The Contract Law in Russia is based on the Germanic Contract Law and it also has features of the Roman Law. The structure of the modern Russian laws on concluding a contract is very similar to the traditional continental European laws, especially the French one.
The provisions on concluding contracts and types of contracts are stated in the Civil Code and are delimited in two chapters. The first chapter or Part One of the Contract Law is dedicated to transactions as for the Second Part is dedicated to the nominate contracts. The first part of the Russian Contract Law defines general rules for contracts, while the second part will enable special rules when concluding contracts.
Concluding a contract in Russia
As the definition stated, the contract is an agreement based on a contractual obligation. The obligation will usually be an agreement between parties immediately effective such as a barter or a transaction (non-promissory transaction) or an agreement based on the performance of the obligation in the future (a promissory transaction).
Creating a contractual obligation in Russia is based on making an offer and the acceptance of the offer. The contract must respect the provisions of the Civil Code in order to be valid. It is also mandatory for both parties to agree with the terms and conditions of the contract. When signing a contract with a Russian company, there are three steps to follow:
- one party sends an offer,
- the offer is considered by the other party,
- the second party accepts the offer.
A contract is considered concluded once the second party accepts the offer.
Types of contracts in Russia
According to the Russian Civil Law, there are several types of contracts that can be concluded. These are:
- the public contract,
- the gambling contract,
- the donative contract,
- the contract for gratuitous use of property,
- the adhesion contract.
Our law firm in Russia can help foreign investors entering in business relations with local companies by providing them legal assistance when concluding contracts. You can also contact our Russian lawyers for company registration in Russia.