CONTRACT LAW

This law assumes that parties of equal strength have the autonomy to create contracts as they wish. Contract is most frequently used grounds to create obligation. The civil code of Mongolia is devoted to the law of obligations. The special part of contract laws concerns the individual types of obligatory relationships dealing with those established by contract or law, various contract types have been established by Civil code of Mongolia. Particular contract types such as contracts on purchase and sale, barter, rent, lease, carriage, commission and insurance etc. are regulated by the Civil Code. Contractual freedom is extensive, the general rules of Part 1 and obligation rules of the Civil law must be observed.

The special part deals with over thirty particular forms of obligatory relationships. Contractual obligations are concerned, they can roughly divided into those concerned with an assignment or transfer of objects, and rights. This includes sales, barter, gift, rent, lease and loan, and those concerned with a service or activity for example, contracts of employment, service, or cooperation.