As the first step in a process set to last several years, the government recently approved the main concept of modifying Hungary’s Civil Code, which provides guidelines for the business relationship between companies and private individuals.
One planned major change will be the insertion of certain types of contracts into the law, such as leasing and factoring contracts, according to Бgnes Simkу, who is involved in the lawmaking process on behalf of the Justice Ministry.
“At the time when the Civil Code was made, these arrangements did not exist. So people using leasing services today sign atypical contracts, based on previous market practices and financial rules listed in the Banking Law which resemble those used for rental and purchase transactions,” Simkу explained.
“The Civil Code will incorporate the already existing business practices and standardize them,” Simkу said.
