The Validity of the Sales Purchase Contract With Redemption Pact in Light of the Provisions New Civil Code

Author:Emilia Mateescu
Position:University of Pitesti
Pages:104-114
SUMMARY

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 ... (see full summary)

 
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European Integration - Realities and Perspectives
2010
104
The Validity of the Sales Purchase Contract with Redemption Pact
in Light of the Provisions New Civil Code
Emilia Mateescu
University of Piteşti, emilia.mateescu@yahoo.com
Abstract: The s ales contract with buyback a greement has existed in t he Romanian legislation as it has been
instituted by means of the ori ginal 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 le d to a legislative void in this
matter. This situation has entailed the validation of all legal deeds in the form of s ales contract with buyback
agreement, for m which us ed to be prohibited in the p ast, in certain situations. Noticing such situation and
understanding the need to r einstate 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 futur e 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 a t the time
of undertaking such obligation are also prohibited. Following the entry into forc e 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 agr eements 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.
Keywords: contract; validity; resolutive condition
1. Establishing the Sale by Redemption Resolution. Practical Implications
Regulating the sale purchase contract with redemption pact was made by chapter six
1
of the Civil
Code, namely by Articles 1371-1387 civil code, now repealed. Overall, these provisions regulated the
resolution of the sale purchase contract by exercising by the seller of the option to redeem the sold
property.
In fact, the said provisions introduced the possibility of concluding the sale purchase contracts affected
by a resolution condition
2
, consisting of exercising the option to redemption of the thing sold by the
seller within five years from the date of sale
3
. In other words, was regulated by a class of sale and an
1
Chapter six of the Civil Code (entered into force on 4 December 1864) was entitled "About the sale resolution by
redemption" and included a total of 17 articles.
2
Article 1019 Civil code defines the resolution condition as being the one which submits the abolition of duty on a f uture and
uncertain event. It does not suspend the obliga tion but obliges the creditor to return what he received, in case of failure of the
event referred to in the condition.
3
This redemption option, which the buyer r eserves, takes to some extent the form of a truly protestation conditions,
prohibited by article 1010 Civil Code. The diff erence is that the seller assumes no obligation to redeem the sold p roperty, but

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