EIRP Proceedings, Vol 5 (2010)

Abstract

The sales contract with buyback agreement has existed in the Romanian legislation as it has been instituted by means of the original form of the Civil Code in force. The legislative evolution of the last century has abrogated the provisions referring to this field and has eventually led to a legislative void in this matter. This situation has entailed the validation of all legal deeds in the form of sales contract with buyback agreement, form which used to be prohibited in the past, in certain situations. Noticing such situation and understanding the need to reinstate the legal framework for the regulation of social relationships with respect to the sales contract with buyback agreements, the Romanian lawgiver has dedicated it a subsection in the new Civil Code. The future civil regulation resumes a major part of the contents and meanings of the provisions of articles 1371-1387 of the Civil Code, currently abrogated. The different element lies in the institution of the express prohibition of sales with buyback option where the difference between the price received and the price paid exceeds the level of interests set by the specific legislation. In addition, the sales where the seller has the obligation to buy back the good sold without setting the price of the good at the time of undertaking such obligation are also prohibited. Following the entry into force of the new Civil Code, the sale with buyback option shall fit the category of legal deeds affected by a resolutive condition, which shall also affect possible rights transmitted by concluding the contract. Such agreements shall be fully valid as long as the general validity conditions of the legal deeds are complied with and the legal norms passed in the interest matter are not infringed.