Business transactions in Bulgaria
When doing business and concluding contracts, we can support you in your business transactions in Bulgaria as we can help you build strong contracts and create solid relations with your clients and partners. We can help you structure and protect your business.
What is the business transaction?
The business transaction has all the generic features of the transaction. The execution of these transactions by occupation leads to the acquisition of commercial quality by the respective person. Commercial transactions are always remunerative in nature. Trade transactions are related to trade turnover, which requires speed and rationality in their conclusion.
How to conclude a business transaction in Bulgaria?
Its conclusion represents the implementation of a factual transaction with a view to invoke the parties’ desired legal consequences. The relevant civil law rules apply in terms of business transactions in Bulgaria. What is needed is an offer and acceptance, such that the essential elements of the offer, the possibility of withdrawal, its acceptance, the timing and place of the conclusion of the agreement in principle are all governed by the rules of the Obligations and Contracts Act (OCA) and the Commerce Act. There is a possibility for the offer to not be addressed, i.e. addressed to an indefinite number of persons. This non-addressed offer is called a public offer. There are two related requirements – contain quantity offered and the time period for which the offeror is bound. Contract can be also concluded via qualified electronic signature.
What is the form of the business transaction?
The main provision is Art. 293 of the Commerce Act. Based on it, it is concluded that in principle commercial transactions are informal, except in cases where a special law provides for a written or other form. It is possible for commercial transactions to be concluded in written form. Failure to comply with the form does not automatically lead to the nullity of the transaction. In order for the transaction to be considered null and void, it is necessary for the respective party to the transaction to have disputed the validity of its declaration of intent.
Execution of business transactions in Bulgaria
The execution represents the realization of the due result. In commercial law the relevant principles of civil law apply to the execution. Execution must be timely, i.e. fulfilled in the stipulated time, quality, quantity, packaging. Important are the principle of actual execution – in case of delay on part of the debtor, they only owe the initial amount as well as the principle of good faith. Through litigation the right party can seek the payment of compensation for breach of contract.
Non-performance of business transactions in Bulgaria
Non-performance is in effect failure to perform the due result. Forms and regulation of non-performance in civil law also apply to commercial law. You should seek an assistance from a qualified lawyer, also known as attorney at law, as there are different applicable options how to require performance or compensation from the other party. Litigation is the best option if you can not reach a friendly agreement.
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The article is written by Pavel Dimitrov, Associate Lawyer.