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Major change in Slovak contractual law proposed

The plan is to present the amendment to the government in July 2019. We will keep you updated.

This week the Ministry of Justice presented a major draft amendment to the Slovak Civil Code and the Slovak Commercial Code. Currently, Slovakia maintains dualism in contractual regulation; for example, a purchase agreement can be found in the Civil Code as well as in the Commercial Code. Simply put, one regulates purchases between citizens while the other regulates purchases between entrepreneurs. Even after decades, in many cases even attorneys and courts struggle to decide which Code to use in any given case. Now the Ministry proposes to delete the majority of the contractual regulations from the Commercial Code and to update and extend contractual regulation in the Civil Code. However, this is not just a copy-paste change where the old text will be deleted. It will also update current contractual regulation and introduce new contractual constructs. We are of the opinion that this amendment will affect almost all contracts entered into under Slovak law. The proposed amendment is scheduled to become effective in 2021. We expect an intensive discussion among laypeople and professionals about the amendment. The plan is to present the amendment to the government in July 2019. We will keep you updated.