Contract Law

Contract Formation

In Ukraine, contracts are generally formed through mutual agreement between parties. They can be concluded orally or in writing, although written contracts are preferred, especially for complex or significant transactions. Certain types of contracts, such as those involving real estate or intellectual property, may require written form or additional formalities.

Freedom of Contract

Ukrainian contract law generally upholds the principle of freedom of contract, allowing parties to negotiate and determine the terms and conditions that govern their agreement. However, certain mandatory provisions and restrictions may apply depending on the nature of the contract and the applicable laws.Contract Terms

Contract Terms

Contract law in Ukraine recognizes the importance of clear and unambiguous terms in a contract. It is essential for the contract to specify the rights, obligations, and responsibilities of each party, as well as the subject matter, price, payment terms, delivery, performance, and any other relevant provisions.

Performance and Breach

Contract law sets out the standards for performance of contractual obligations. Parties are expected to fulfill their obligations in good faith and in accordance with the agreed-upon terms. If a party fails to perform its obligations, it may be considered a breach of contract, entitling the other party to remedies such as damages, specific performance, or contract termination.

Contract Interpretation

In case of disputes or uncertainties regarding the interpretation of a contract, Ukrainian contract law adopts an objective approach. The intent of the parties is determined based on the language used in the contract and the surrounding circumstances at the time of its formation.

Invalidity and Voidability

Certain circumstances may render a contract invalid or voidable under Ukrainian contract law. This includes situations involving fraud, duress, mistake, illegality, incapacity, or violation of public policy. Invalid contracts have no legal effect, while voidable contracts can be challenged and declared void at the request of an affected party.

Remedies and Damages

Ukrainian contract law provides remedies for breaches of contract. The injured party may seek damages to compensate for the losses suffered as a result of the breach. The calculation and availability of damages may depend on the nature of the breach, the terms of the contract, and applicable legal principles.

Dispute Resolution

Contract disputes in Ukraine can be resolved through negotiation, mediation, arbitration, or litigation. Parties may include dispute resolution clauses in their contracts, specifying the chosen method of resolving conflicts.