Information
| Contracts |
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Unlike the common law, Roman law in the countries of contracts is not an area governed by the law independently. Instead, contracts are governed by both the Civil Code or the Commercial Code. The director general in this regard is that when a contract is not specifically regulated by the Commercial Code, that is, is not a commercial contract, then the general rules and principles of the Civil Code shall apply. Most contracts are merely informal, which means that a verbal contract is valid and binding on the parties and the mere consent of both parties will result in a binding agreement. However, some contracts, such as real estate contracts, will require the formality to be written or it is approved by deed. We can help with civil society and business contracts of any nature, as well as contracts with the government, whether as a result of takeover bids or concessions of land or water. Commercial and private contracts A contract with a value of over $ 5000 must be in writing, to be legally binding. We recommend to customers that all contracts in writing to avoid any further conflict between the parties as to the specific terms and conditions of the contract. Buy or Sell Real Estate As mentioned earlier, the contracts for real property must be in writing and prepared as a deed (deed). This is a special format that is prepared before a notary public. In addition, as Panama has a Torrens system of land registration, it is necessary to register the sale and purchase agreement, the title of ownership, in the Public Registry to ensure that all parties are put on notice with regard to title of the property. We recommend to customers that a title search be done prior to the acquisition of any property. |