Three business professionals discussing a supplier framework agreement in a bright office overlooking a warehouse and delivery truck.

Negotiating a Supplier Framework Agreement in Romania: Legal Review Before Recurring Orders

Commercial contracts · Recurring supply · Romania

A supplier framework agreement should make recurring orders easier to manage without leaving the commercial commitment unclear.

Before signing, review how orders become binding, which terms prevail and who carries the cost when volumes, prices or delivery plans change.

This guide concerns private business-to-business arrangements for recurring goods supplies involving Romania.

References below to Romanian Civil Code rules must be read in light of the law and sales regime applicable to the particular transaction.

For international sales, assess the CISG before applying Romanian domestic sales or contract-formation rules.

Public procurement, consumer sales and sector-specific requirements need separate analysis.

Mixed goods-and-services arrangements also require assessment of the obligations and legal rules involved.

What should a supplier-framework review deliver?

The review should help management decide what to sign, what to negotiate and what the order team must do afterwards.

Our contract drafting, review and negotiation service in Romania can address the agreement and the documents used to operate it.

Depending on the mandate, deliverables may include tracked changes, replacement clauses, a document-precedence schedule and prioritised negotiation points.

Explain whether your business is the buyer or supplier, because the same clause can allocate very different risks to each side.

Provide expected order frequency, commercial value, operational dependencies and the signing deadline.

A review of a new framework should also identify any earlier orders or terms that need to remain effective.

Select a card to add that area to the review packet below.

What does the framework agreement actually commit you to?

A framework can organise future transactions while leaving individual orders to be agreed later.

Article 1176 of the Romanian Civil Code on the official legislation portal expressly recognises framework agreements, with timing, volumes and, where appropriate, price specified through subsequent agreements.

The label alone does not answer whether there is a minimum purchase obligation, reserved capacity or exclusivity.

Read the operative clauses, schedules and order mechanism to establish the actual commitment.

If the document already creates binding obligations for successive deliveries, assess whether the supply-contract rules in Article 1766 onwards or the sale rules apply to those obligations.

For goods, Article 1766 describes a commitment to transfer and deliver a determined quantity at later dates or continuously, so distinguish that commitment from quantities left to subsequent agreements.

Article 1771 supplements the supply-contract provisions with the sale rules where no specific supply rule governs the issue.

Agreeing a price schedule alone does not automatically determine the contract’s legal classification.

A buyer seeking flexibility should check whether a forecast, annual target or cancellation charge creates expenditure even without an accepted order.

A supplier reserving production capacity should check whether the customer has made any corresponding commitment.

Record who can place orders, which group entities can buy and whether each ordering entity is responsible for its own payment.

Do not assume that a parent company guarantees orders placed by another group company.

Where corporate authority is relevant, review the company’s articles of incorporation and representation arrangements alongside the proposed signing route.

How should purchase orders become binding?

Choose an order process the sales and purchasing teams can follow consistently.

Specify the required order information, permitted channels, acceptance method and response period.

Address orders accepted with changed quantities or dates, partial acceptance and orders exceeding available capacity.

Under Article 1197, a response changing the offered terms is not acceptance and may amount to a counteroffer.

Explain whether a portal acknowledgement merely confirms receipt or constitutes acceptance.

Under Article 1196(2) of the Civil Code, silence or inaction generally does not amount to acceptance, except where acceptance follows from law, the parties’ agreement, established practices, trade usages or other circumstances.

If the parties want a deemed-acceptance mechanism, review its wording and legal effect rather than assuming that an unanswered email settles the issue.

The agreement should also allocate responsibility for unauthorised orders, duplicate submissions and changes after production starts.

For established supply, collect actual order confirmations and correspondence before changing the process.

The final wording should be communicated to staff who use the purchasing system, so the signed terms and daily conduct remain consistent.

Which document should prevail when terms conflict?

Set an express hierarchy and identify how exceptions can be approved.

A typical contract suite contains the framework, technical annexes, price schedules, orders, confirmations and general purchasing or sales conditions.

Decide which document controls each issue and whether an order may depart from the framework only through authorised written agreement.

Identify dated versions rather than referring only to terms on a website that may change.

Article 1202(3) provides that negotiated clauses prevail over standard clauses.

Where both parties use standard clauses without agreeing on them, paragraph (4) preserves the contract on the agreed terms and standard clauses common in substance, unless a party gives notice before conclusion or immediately afterwards that it does not intend to be bound by such a contract.

The last document sent should therefore not simply be assumed to win.

Article 1203 requires express written acceptance by the other party for the unusual standard clauses listed by law.

These include liability limitations, unilateral termination and suspension rights favouring the proposer, and specified terms detrimental to the other party concerning forfeiture of rights or the benefit of a time limit, restricted defences or freedom to contract, tacit renewal, applicable law, arbitration and departures from court-jurisdiction rules.

The unilateral termination category concerns denunțare unilaterală and should not be treated as covering every clause on termination for breach.

Assess which clauses fall within that rule and how acceptance is recorded.

For wider context, our guide to Romanian contract review explains the surrounding authority, payment and enforcement questions.

Are forecasts, minimum volumes and exclusivity clearly separated?

State what is informative, what is binding and what happens when demand changes.

A rolling forecast can help production planning without creating the same obligation as an accepted order.

If only part of the forecast becomes firm, define that period and the process for updating later estimates.

For minimum purchases, specify the measurement period, qualifying products and consequences of a shortfall.

Check whether rebates can be reclaimed and whether dedicated stock, tooling or raw materials must be purchased on exit.

Exclusivity needs its own commercial and legal assessment, including any applicable competition rules.

If the arrangement concerns resale, territory or market development, our separate distribution-agreement guide for foreign suppliers addresses that different relationship.

How should prices and payment terms work?

Connect price changes and payment triggers to identifiable events.

Specify currency, VAT treatment, freight, packaging and any other charges.

For adjustments, identify the agreed trigger, calculation, notice and treatment of accepted orders.

A supplier’s revised price list should not leave the parties uncertain about which orders it affects.

Check any unilateral amendment clause and the consequences if the parties cannot agree a new price.

For qualifying B2B claims, Law no. 72/2013 on late payment in commercial transactions provides the relevant payment and unfair-term rules.

Article 5(1) sets a 60-calendar-day contractual payment limit between professionals, with longer periods permitted by exception only where the agreed clause is not abusive under Article 12.

The parties’ agreement alone does not settle that assessment, which concerns gross unfairness to the creditor and the circumstances identified in Article 13.

Review inspection periods, disputed amounts, set-off and late-payment provisions together, including restrictions on unfair exclusions.

Avoid wording that lets routine invoice queries indefinitely postpone payment for accepted goods.

What if costs rise or supply is disrupted?

Increased cost alone does not automatically permit a price increase or release a party from performance.

Article 1271 permits court adaptation or termination for hardship only under its statutory conditions, including an exceptional change, the relevant foreseeability and assumed-risk tests, and an attempt at reasonable, good-faith renegotiation.

Force majeure under Article 1351 requires a separate assessment of the event, its effect on the obligation and the applicable allocation of risk.

Draft notification, evidence, mitigation and prolonged-disruption provisions without treating ordinary cost increases as automatic force majeure.

Supplier-framework review-file builder

Your supply arrangement

No areas selected

Tick the areas that apply, then select “Copy review packet” to copy the document list and questions.

Your review packet

Start with the core record; selections add focused items.

Documents to collect
  • The parties’ identities, your buyer or supplier role and the proposed supply arrangement.
  • The complete framework draft, annexes and intended negotiation timetable.
Questions for review
  • What must the agreement achieve before the next orders are placed?

This tool generates the review packet locally and contains no submission function.

It does not interpret the agreement or determine whether a clause is enforceable.

What should delivery, inspection and defect clauses address?

Define the operational handover and preserve a workable route for quality problems.

Identify delivery locations, lead times, partial deliveries and the procedure for delays.

Allocate unloading, transport documents, insurance and responsibility for failed delivery attempts.

Keep delivery, transfer of risk and transfer of ownership distinct in the drafting.

Where Article 1274 applies, the default rule keeps risk with the party obliged to deliver until delivery, even if ownership has already passed, subject to contrary stipulation, the creditor-default rule and any applicable special sale or supply rules.

For a contract legally classified as supply, Article 1767 provides specific rules on transfer of ownership at handover, receipt and handover to a carrier.

Where dispatch is the supplier’s responsibility, Article 1767(3) deems accepted goods delivered to the beneficiary on the date they are handed to the carrier.

If a trade term is incorporated, identify its version and named place and assess what remains outside its scope.

The ICC Incoterms rules allocate specified delivery obligations, costs and risk, but do not themselves determine transfer of ownership.

Check the governing law, any applicable CISG rules and specific supply-contract provisions alongside the agreed trade term.

Quality annexes should contain usable specifications, test methods and responsibility for approving changes.

Separate receipt checks, apparent defects and defects discovered later.

Do not treat one short inspection window as automatically extinguishing every possible claim.

Review applicable warranty, notice and limitation rules alongside the commercial process.

For sales governed by Romanian domestic law, Article 1707 onwards addresses hidden-defect warranties, with notice requirements requiring separate attention.

Under Article 1708(2), an exclusion or limitation of defect liability is void concerning defects the seller knew or ought to have known when the contract was concluded.

Article 1709 governs notice of hidden defects, including a two-working-day rule for professional buyers of tangible movable goods, subject to its conditions and exceptions.

Its forfeiture sanction concerns the termination remedy under Article 1710(1)(d), rather than automatically removing every warranty remedy.

Set out who investigates, preserves evidence and arranges replacement, repair, rejection or other agreed remedies.

Any safety issue, recall or regulated product may require specialist obligations beyond the ordinary supply contract.

Can liability limits and remedies be negotiated?

Match the exposure to the contract, realistic losses and available insurance.

Check whether a cap applies per order, per event or across the entire framework.

A cap calculated from a single low-value order may produce a different result from one based on annual purchases.

Address how credits, delay penalties, warranty remedies and indemnities interact.

Define any excluded losses carefully, particularly where an English template uses terms without explanation.

Article 1355(1) of the Civil Code prohibits excluding or limiting liability for pecuniary loss caused to another person intentionally or through gross negligence (culpă gravă).

Assess Article 1203 acceptance requirements where the limitation appears in standard terms.

Article 1541 also permits judicial reduction of a contractual penalty in specified circumstances, including where it is manifestly excessive compared with the loss foreseeable when the contract was concluded.

Reduction is not an automatic contractual right to disregard an agreed penalty.

Insurance should be checked against actual cover and exclusions rather than used as a substitute for the liability analysis.

Discuss the financial consequences with management before accepting a remedy described as the exclusive contractual response.

Negotiation priorities

Supplier-framework decision map

Select a situation to see the first review action.

Select a button in the first column, then read the action panel beneath the table.

On a small screen, scroll the table sideways to read every column.

Match the issue to the review
SituationReview firstPoint to resolve
Versions, acceptance and hierarchyWhich terms were agreed and which should control?
Purchase and stock commitmentsWho bears the cost of changed demand?
Adjustment clause and noticeWhich orders can the change affect?
Specifications, notices and remediesWhat evidence and response are needed?
Duration, notice and survivalWhat remains due after the framework ends?
First review actionCompare the complete document set

Collect the framework, orders, confirmations and both sets of standard terms before proposing an agreed hierarchy.

What changes when the supplier or buyer is abroad?

Review governing law, dispute resolution and the sales regime as separate questions.

The EU’s Rome I Regulation on contractual obligations governs applicable-law questions within its scope, including party choice and relevant mandatory rules.

Where Article 1203 is relevant to the governing-law clause, assess it together with Articles 3, 10 and 11 of Rome I on choice, consent and validity.

A governing-law clause does not itself identify the court that will hear a dispute.

Check jurisdiction or arbitration wording, formal requirements, practical enforcement and the counterparty’s location.

The Brussels I bis Regulation on jurisdiction and judgments is relevant where its conditions are met.

For choice-of-court agreements within Article 25, distinguish its autonomous agreement and form requirements from substantive validity under the law of the chosen Member State, including that state’s conflict-of-laws rules.

Assess whether and how Article 1203 affects the particular clause within that framework, rather than assuming it automatically applies or is irrelevant.

For international goods sales, assess the UNCITRAL Convention on Contracts for the International Sale of Goods and any intended exclusion.

Choosing Romanian law does not necessarily exclude the CISG.

Article 6 CISG permits the parties to exclude the Convention’s application.

If exclusion is intended, use clear express wording, preferably in a dedicated clause, rather than relying on the choice of Romanian law alone.

Check the parties’ places of business, the transaction and the agreed wording before deciding which rules govern individual sales.

A bilingual agreement should identify which language prevails and keep annexes consistent with that choice.

What happens to open orders when the framework ends?

Separate ending the framework from cancelling an already binding order.

Specify duration, renewal, ordinary notice, breach notices and any cure period.

For successive or continuous performance, Article 1276 addresses an existing unilateral termination right, reasonable notice and the effect on performance already completed or underway, subject to its default nature and applicable rules.

Article 1277 permits either party to terminate an indefinite-term contract on reasonable notice and treats contrary terms or a charge for exercising that right as unwritten.

Keep that route separate from termination for breach and any express termination clause governed by Article 1553.

Address accepted orders, work in progress, dedicated inventory, tooling, unpaid invoices and continuing warranty duties.

Decide whether new orders may be placed during notice and which terms govern their completion.

Suspension rights should be reviewed against payment disputes, supply continuity and any applicable standard-clause acceptance requirements.

For an existing dispute or proposed termination, our guide to ending a supplier contract early in Romania addresses the separate notice and exit review.

Before sending a termination notice, obtain advice on the signed contract and performance record.

How should the negotiation priorities be organised?

Give the commercial team a short decision list alongside the legal mark-up.

Start with obligations that could materially change the economics of the arrangement, such as minimum purchases, dedicated stock, unilateral price changes and uncapped exposure.

For each issue, identify the proposed wording, the operational consequence and an acceptable fallback.

A buyer might accept a binding forecast window if the supplier also commits to capacity and delivery dates for that window.

A supplier might accept a longer payment period in exchange for clearer acceptance procedures and protection against unrelated deductions.

These are negotiation examples whose suitability depends on the transaction.

Keep unresolved commercial decisions visible rather than allowing drafting comments to imply approval.

Before signature, reconcile the final framework with the price schedule, specifications and order template.

Check that tracked changes have been resolved consistently, annexes are complete and the authorised signatories are signing the intended version.

After signing, retain an accessible contract set and a brief operational note identifying who accepts orders, approves variations and receives contractual notices.

This handover helps the purchasing, sales and finance teams use the agreement without having to reconstruct the negotiation history for each order.

Request a supplier-framework agreement review

Atrium Romanian Lawyers assists with commercial contract drafting, review and negotiation involving Romania.

Send the complete proposed framework, annexes, standard terms and a model purchase order through the agreed contact channel.

Explain your role, the goods, expected volumes, counterparty country and the points already discussed.

For an existing relationship, identify accepted orders, outstanding deliveries and any proposed change.

State whether you need a risk report, negotiation mark-up, replacement wording or support responding to the other party.

The documents, deadline, negotiation scope and required deliverables should be identified before the fee and mandate are agreed.

Key legal sources relevant to recurring supply

The applicable framework depends on the contract and the transaction.

  • Romanian Civil Code: framework agreements, formation, standard clauses and applicable supply, sale, hardship and liability rules.
  • Law no. 72/2013 and Government Ordinance no. 13/2011: payment terms, statutory interest and late-payment protection within their scope.
  • Rome I and Brussels I bis: applicable-law and jurisdiction questions within their respective scopes.
  • CISG: qualifying international goods sales, subject to its scope and any effective exclusion.

Related guides

Select the guide that matches the related contract question.

Frequently asked questions

Select a question to open its answer, and select it again to close it.

Does a framework agreement guarantee a minimum number of orders?

That depends on the agreed obligations, including minimum-volume clauses, forecasts and the order process.

The framework label alone does not establish a purchase guarantee.

Can purchase-order terms override the signed framework?

Review the hierarchy clause, incorporation of terms, acceptance and any agreed exception process.

Do not assume that the last form sent automatically overrides the framework.

Can the supplier change prices for accepted orders?

Check the price-adjustment mechanism, notice and terms governing those orders.

A new price list does not, by itself, resolve whether the agreed price can be changed.

Can you review an English-language supplier template?

The review can address an English-language agreement involving Romania and identify the applicable legal and commercial issues.

Provide all annexes and standard terms, including documents incorporated by reference.

Does termination of the framework cancel every open order?

Check the framework and order terms separately, including any survival or cancellation provisions.

Ending the framework should not be assumed to release either party from already binding orders.

What determines the scope and fee for the review?

The work depends on document length, annexes, cross-border issues, existing orders and whether negotiation support is required.

Identify the documents, deadline and expected deliverables before agreeing the mandate.

Geometric maze illustrating contractual risk assessment during a contract review in Romania

Contract Review in Romania: 12 Clauses to Check

Which contract clauses should a business check before signing?

A Romanian business contract should clearly allocate performance, payment, liability, intellectual-property, data and exit risks. These 12 clauses are the practical starting point for a legal and commercial review.

Contract review in Romania should test more than whether an agreement is formally valid. Before signing, a business should understand what it must deliver, when it will be paid, which losses it may bear, how intellectual property and data may be used, and how the relationship can end.

Commercial contracts are often negotiated under pressure. A supplier is ready to begin, a customer wants the final draft immediately, or a foreign group needs its Romanian operation running without delay. That is precisely when unclear wording, inconsistent annexes and borrowed template clauses are most likely to pass unnoticed. Companies entering the market should connect the contract with the wider steps required to start and operate a business in Romania.

Interconnected architectural structure illustrating how contract clauses work together in a Romanian contract review
A well-structured contract depends on interconnected clauses that allocate obligations, remedies and commercial risks consistently.

Under the Romanian Civil Code, a validly concluded contract is binding on the parties, and contractual negotiations and performance are governed by good faith. A useful review therefore connects the legal wording with the operational deal. It identifies which party controls each risk, whether the agreed remedy can work in practice, and what evidence will be needed if performance is disputed.

The following 12 clauses form a practical checklist for Romanian companies and foreign businesses entering agreements governed by Romanian law or involving a Romanian counterparty.

Parties, capacity and signing authority

The contract should identify the correct legal entities, not merely the brand names used in negotiations. For a Romanian company, check its registered name, registered office, Trade Registry number, fiscal identification code and representative. If a group is involved, establish which entity receives the services, issues invoices, owns the relevant assets and assumes liability.

Signing authority should be verified against the company’s constitutional documents, Trade Registry information, corporate approvals or a power of attorney. A signature block describing someone as a “manager” does not itself resolve whether that person may bind the company for the relevant transaction. The representation rules should be checked against the company’s current Romanian articles of incorporation and the registered powers of its administrators.

The internal authority analysis also matters for potential Romanian company director liability, particularly where a director signs outside approved limits or fails to document a material commercial decision.

Check before signingConfirm the contracting entity, the signatory’s authority, any required corporate approval, the position of affiliates and whether subcontracting or assignment to another group company is permitted.

Scope, deliverables and acceptance

The scope clause should describe the goods or services, specifications, quantities, locations, deadlines, dependencies and exclusions. For project work, it should also establish milestones, acceptance tests, correction periods and a change-control procedure.

Review the main agreement together with proposals, statements of work, order forms and technical annexes. If they conflict, an order-of-precedence clause should determine which document controls. Acceptance by silence should also be tested carefully: specify when the review period begins, what constitutes a valid rejection and what happens when defects are minor. Providers using standard customer documentation should also verify the applicable service contract requirements in Romania.

Common riskThe commercial proposal promises one result, the technical annex describes another and the general conditions allow the supplier to treat delivery as accepted before meaningful testing has taken place.

Price, VAT, invoicing and payment

A complete payment clause states the price or calculation method, currency, VAT treatment, invoicing trigger, payment deadline, supporting documents, bank charges and the procedure for disputing an invoice. It should also explain whether the customer may withhold, deduct or set off amounts and whether the supplier may suspend performance for non-payment.

For B2B transactions, Law no. 72/2013 on late payment contains mandatory protections. Article 5(1) establishes a general 60-calendar-day limit for contractual payment terms between professionals. By exception, the parties may agree a longer payment term, provided that the clause is not abusive under Article 12. A term exceeding 60 days is therefore not automatically invalid, but it should be assessed carefully for gross unfairness to the creditor in light of the statutory criteria and the circumstances of the transaction. Where the applicable conditions are met, late payment can trigger statutory penalty interest and the fixed EUR 40 recovery compensation.

For the calculation rules and available remedies, see our guide to late-payment interest and penalties in Romania.

Term, renewal and minimum commitments

The agreement should state its effective date, initial duration and whether it renews automatically. An automatic renewal clause is not necessarily problematic, but the notice window, notice method and effect of a missed deadline must be clear.

Check minimum purchase commitments, exclusivity, take-or-pay obligations and price changes that continue into a renewal term. Add internal calendar reminders for any deadline that determines whether the company remains bound for another year or loses a renegotiation opportunity.

Check before signingIdentify the earliest exit date, the last date for a non-renewal notice and every financial or operational commitment that survives renewal.

Termination, cure periods and exit assistance

The termination clause should distinguish between serious breach, remediable breach, insolvency-related events, prolonged force majeure and termination for convenience. It should specify whether prior notice is required, how long the defaulting party has to cure, and whether termination operates through a contractual mechanism or requires another legal step.

The Romanian Civil Code regulates remedies for non-performance, including termination under Article 1549 and the related provisions. The contract should not merely say that a party “may terminate immediately”. It should align the grounds, notice mechanics and agreed effects with the type of contract and the intended remedy.

Exit provisions matter just as much as the termination trigger. Address final invoices, transition assistance, return of equipment and documents, data export, deletion, continued licences and the clauses that survive termination.

Penalty clauses and late-payment interest

A penalty clause fixes in advance the consequence of non-performance, defective performance or delay. Under Article 1538 of the Romanian Civil Code, its drafting should identify the protected obligation, the triggering event and the calculation method. The agreement should also state whether a penalty is daily or fixed, whether it is capped and how it interacts with damages and other remedies.

Article 1541 permits a court to reduce a penalty in the statutory circumstances, including where it is manifestly excessive in relation to the loss that the parties could have foreseen when concluding the contract. A high percentage is therefore not a substitute for careful drafting.

Common riskA daily penalty has no cap, applies to several overlapping obligations and continues after termination, creating exposure far beyond the economic value of the contract.

Liability caps, exclusions and indemnities

Liability provisions should allocate risk in proportion to the contract’s value, the parties’ control and the available insurance. Review the general cap, any separate or higher caps, excluded categories of loss, claims procedures and responsibility for employees, affiliates and subcontractors.

Do not assume that an indemnity is a familiar standard clause. It should identify the covered events, third-party claims, control of the defence, settlement authority, notification duties and mitigation. Check whether the limitation of liability applies to the indemnity or whether it creates uncapped exposure.

Any exclusion or limitation must also be tested against mandatory law and the nature of the conduct involved. A clause should not be described as protecting a party against every possible form of unlawful conduct. Where the agreement supports a wider investment or group operation, the liability wording should be reviewed together with the company’s corporate and commercial governance arrangements.

Warranties, regulatory compliance and audit rights

Warranties should be specific to the transaction. Depending on the contract, they may cover conformity with specifications, professional licences, legal compliance, authority, sanctions, anti-bribery, tax status, employment practices, product safety or the absence of third-party rights.

The review should also establish the remedy for an inaccurate warranty. Possible outcomes include correction, replacement, a price adjustment, indemnification or termination. An audit right should define scope, frequency, confidentiality, cost allocation and the treatment of identified non-compliance.

Drafting pointA broad promise to comply with “all applicable laws” may be necessary, but it does not replace transaction-specific duties, evidence requirements and an agreed remediation process.

Force majeure, hardship and change in law

Force majeure and hardship solve different problems. Force majeure concerns an external, unforeseeable, absolutely invincible and unavoidable event under the Civil Code framework. Hardship under Article 1271 addresses an exceptional change that makes performance excessively onerous, subject to the statutory conditions and the allocation of contractual risk.

The clause should define notice, evidence, mitigation, suspension, continued payment obligations and the point at which prolonged disruption permits termination. For regulated or long-term projects, add a change-in-law mechanism explaining who bears new compliance costs and whether price or timing may be adjusted.

Check before signingDo not treat every supplier delay, price increase, staff shortage or market change as force majeure. The clause should distinguish ordinary commercial risk from qualifying events.

Confidentiality and intellectual property

A confidentiality clause should define protected information, permitted use, internal access, legally required disclosures, security standards, duration and return or destruction. Trade-secret protection also depends on practical steps, so access controls and marking procedures should match the contractual wording. A standalone non-disclosure agreement in Romania may be appropriate before sensitive negotiations begin.

For intellectual property, distinguish pre-existing materials from deliverables created under the contract. State whether rights are assigned or licensed and address territory, duration, field of use, sublicensing, modifications, source materials and third-party components.

Romanian Law no. 8/1996 on copyright requires an assignment of economic copyright to specify the transferred rights and, for each, the modes of use, duration, extent and remuneration. A generic sentence stating that the customer “owns everything” may therefore be insufficient for the intended result. Businesses acquiring or licensing valuable assets can obtain a separate review from intellectual property lawyers in Romania.

For ownership arrangements between founders and shareholders, see our guide to shareholder agreements in Romania.

Personal data, security and digital services

If the agreement involves personal data, identify whether each party acts as controller, processor, joint controller or independent controller. When a supplier processes personal data on behalf of a controller, Article 28 of the General Data Protection Regulation requires a contract containing specified safeguards. Our GDPR compliance checklist for Romanian companies explains the wider governance controls that should support those clauses.

Review processing instructions, confidentiality, security measures, subprocessors, assistance with data-subject requests, breach notification, international transfers, audit rights and return or deletion. The commercial agreement and data processing agreement should not contain inconsistent liability, notice or termination rules. More complex vendor arrangements may require assistance from GDPR and data protection lawyers in Romania.

For SaaS and other digital services, also check availability commitments, backups, recovery objectives, vulnerability management, incident cooperation, data portability and access after termination. Technology businesses should align these provisions with their wider technology and digital law obligations and, where relevant, obtain a focused IT and software contract review.

Governing law, jurisdiction and notices

In cross-border contracts, governing law and forum are separate questions. The Rome I Regulation generally allows the parties to choose the law governing their contractual obligations, subject to its safeguards and mandatory rules. The Brussels I bis Regulation governs jurisdiction and the recognition and enforcement of judgments in relevant EU civil and commercial matters.

Consider whether the selected court or arbitral tribunal is proportionate to the likely dispute, where evidence and assets are located, the language and cost of proceedings, and whether an eventual judgment or award can be enforced efficiently.

The notice clause should identify valid addresses, permitted delivery methods, deemed receipt and the process for updating contact details. A termination or claim notice sent to the commercial contact may fail if the contract requires delivery to a different address or by a specific method. Where non-payment is already a concern, the agreement should be tested against the available legal recovery options for unpaid invoices in Romania.

Contract review in Romania: risk map

Contract areaQuestion to answerRisk if unclear
AuthorityIs the correct entity bound by an authorised person?Enforceability, approval and group-liability disputes.
PerformanceWhat exactly must be delivered, tested and accepted?Disputes over completion, defects and payment.
PaymentWhen is money due and what follows from delay?Cash-flow loss, penalties and invoice disputes.
ExitHow can the relationship end and what survives?Lock-in, service interruption and lost data.
LiabilityWhich losses are covered, capped or excluded?Exposure disproportionate to contract value.
IP and dataWho owns or may use assets, information and data?Loss of rights, GDPR exposure and operational dependency.
DisputesWhich law, forum and notice rules apply?Unexpected cost and difficult enforcement.

A practical pre-signing review process

Confirm the commercial dealRecord the intended result, price, timeline and points already agreed before editing legal language.
Read every contract documentReview the agreement, annexes, order forms, proposals, policies and incorporated online terms together.
Rank the risksSeparate legal defects, high-value commercial exposure, operational ambiguity and points that are negotiable preferences.
Propose usable wordingConvert each material issue into a replacement clause, tracked change or clear negotiation question.
Check signing and evidenceConfirm authority, approvals, signature method, final attachments and preservation of the executed version.
Calendar post-signing dutiesTrack notices, renewals, price reviews, certificates, audits and delivery or payment milestones.

Need a Romanian contract reviewed before signing?

Atrium Romanian Lawyers assists Romanian and foreign businesses with contract review, drafting and negotiation. The review can be delivered as tracked changes, replacement clauses, a consolidated draft or a practical risk report adapted to your position in the transaction.

Frequently asked questions

Is a business contract written in English valid in Romania?

Romanian companies can generally conclude commercial contracts in English. The transaction may nevertheless require Romanian-language documents or translations for authorities, courts, employees, consumers, notaries or regulated formalities. The governing-language clause should state which version prevails if the contract is bilingual.

Can a foreign-law contract be used with a Romanian company?

Potentially, yes. In a cross-border contract, the parties may often choose the governing law, but the Rome I framework, mandatory rules, the place of performance and the practical enforcement route must be considered. Choosing foreign law does not automatically remove every Romanian mandatory provision relevant to the transaction.

Are contractual penalties enforceable in Romania?

Romanian law recognises penalty clauses, but the obligation, trigger and calculation must be clear. Article 1541 of the Civil Code permits judicial reduction in the statutory circumstances, including a penalty that is manifestly excessive compared with the foreseeable loss at contract formation.

When should contract review in Romania take place?

Ideally before signing and before the commercial position becomes difficult to change. A new review is also appropriate before renewal, when the scope or price changes, when a party proposes an amendment, or when performance problems and a possible dispute emerge.

What should a foreign company send to the reviewing lawyer?

Send the complete draft and annexes, the commercial proposal, your role in the transaction, the applicable deadline, the principal business concerns and any terms already agreed. Identifying whether you are the customer, supplier, licensor, employer, investor or distributor changes the risk analysis.

Disclaimer: This article provides general legal information and does not constitute legal, tax or commercial advice. Contractual rights and risks depend on the complete document, the transaction, the parties, mandatory rules and the relevant facts.

AI Notice: AI-assisted content, reviewed and approved by a qualified Romanian lawyer.