Principles of contract law

Contract law, as a branch of which is represented as part of the daily life of all persons in society, whether it is about the simplest relationships, such as the purchase of basic foodstuffs in the market, up to the most complex transactions, will be explained below through the basic principles of functioning.
Consequently, contract law, whether it is about the simplest or the most complicated relationships in which two or more contracting parties appear as participants, is based on the following principles.

1) Security of the transaction: Rights and obligations, and their respect, through the behavior of the contracting parties must be ensured through the provisions of the contract. Security implies that the contracting party gets what it is negotiating for, that the contract is concluded without delay, or if delays are unnecessary, that they are reasonable and as short as possible, and that the contracting party gets what it wants.

2) Rules of the contractual relationship: Before signing the contract, it is important to set clear rules according to which the parties will be obliged to behave, that is, refrain from behaving. This principle exists to ensure that each party achieves its own interest, without jeopardizing the interests of others.

3) Adaptation: The legal segment of the contract, i.e. compliance with the law, must be adapted to business practice, as far as the imperative (obligatory) provisions of the law allow.

4) Freedom of contract: The emphasis on freedom of contract is reflected in the ability of the contracting party to choose and have a choice. The first choice is reflected in the fact that it chooses the other contracting party. Ideally, the contracting parties would choose each other, mutually. The second choice is reflected in the fact that the parties should have a choice of their conditions, under which they enter into contracts. Contracts are competitive, but the consent element is mandatory.

5) Existence of contract elements:
-Constancy- The contracting parties should not act “hot and cold” during the fulfillment of contractual obligations, but their way of fulfilling them must be constant until each party gets what it wants.
-Proportionality: Contracting parties who potentially do not fulfill their obligations must be warned of the consequences of non-fulfilment (termination of the contract, compensation for damages, demand for the fulfillment of the contract)

• Good faith: Whoever does not enter into a contract in good faith and with the aim of fulfilling his obligations, must refrain from concluding the contract. No one can profit by violating contractual obligations.
  -Prohibition of unjust enrichment: No apartment, even one that fulfills its contractual obligations, may unjustly enrich itself at the expense of the other contracting party.
  -Prohibition of exploitation: A stronger contracting party should not be able to exploit a weaker one, in such a way that it will use a monopolistic position. Possession of “special” information cannot constitute an advantage that causes damage to the other party.