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Effect Of Contracts

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Chapter Summary

This chapter contains four articles on effects of contract. The presented articles are: the time when the contract becomes effective, contract invalidity, invalidity of immunities clause and consequences of contract invalidity. A contract becomes effective when it is established, unless otherwise provided by law or agreed by the parties. The contract is invalid under the following circumstances: a) when either party violates the compulsory provisions of the laws and administrative regulations; or b) when either party violates public order and good morals. The right to request the return of property mentioned in the preceding paragraph shall extinguish if it is not exercised within two years from the date of the performance of contract.

Keywords: contract invalidity; effect of contracts

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