Contract Law Enforcement (CLE) Program

Reasons to use Contracts

Contracts serve a number of functions – they clarify the terminology used by parties to an agreement, they clarify the distribution of risks to a transaction, and they provide evidence to be used by Court in the event of a dispute. Contract Law functions to establish the basic framework of rules for private agreements, and more importantly, to “fill the gaps” when parties themselves either intend, or forget, to negotiate comprehensive terms and conditions.

Contract Law serves to supplement the agreements of parties, and ensure that appropriate limits are placed, for example with the protection of consumers, on the ability of a party or parties to exceed accepted limits. Contract rules are simultaneously simple, and complex. Utilizing information available to explain Contract Law is a valuable set of tools for ensuring that agreements are memorialized sufficiently to avoid disputes, and to explain the “deal” in the event that there is a dispute.

Well negotiated written contracts create a number of benefits which serve to the advantage of the parties to an agreement. Written contracts are essential for distributing risk, clarifying expectations, and memorializing obligations each party agrees to. Without written contracts, parties often tend to have different understanding of their obligations, a situation which directly leads to disputes. In case disputes arise, a written contract serves one as a legal evidence to support and prove one’s case. As important, using Alternative Dispute Resolution (ADR) mechanisms, which are faster and cheaper than court litigation, are frequently unavailable without having expressly contracted for in writing.

The Contract Law Enforcement (CLE) Program is constantly working to empower the Kosovo business communityby improving its knowledge and understanding of the importance of using written contracts, and solving disputes by utilizing ADR. The program has developed a number of standard form contracts with explanatory notes, and holds an ongoing series of round-tables with the business community throughout Kosovo, representing different sectors, and including business owned by females and minorities.