1. Term of the contract: A civil contract may be concluded for definite or indefinite term, and it can be renewed without limitation. This depends entirely on the will of the parties and there is no need for a specific reason justifying the term of the contract, in comparison to the employment contract. It is recommended that the term (or lack thereof) is explicitly stipulated in the contract so that it is clear to both parties for what period they are bound by it.
2. Intellectual property rights: In cases where the subject of the contract is the manufacture of a product which may be subject to intellectual property rights (e.g. copyright or related right, patent, etc.), it is advisable to include specific clauses clearly stipulating the aspects and specifics relating to the ownership of these rights and the powers and obligations of each party in relation to them. If no express agreement is present, the law will apply, which may not fully satisfy the assignor and/or the assignee. For example, in the absence of an agreement between the parties, if a copyright work (e.g. an article or computer software) is produced under a civil contract, the copyright will belong to the assignee and the assignor will be entitled to use the work without the author’s permission only for the purpose for which it was assigned.
3. Confidential information: In cases where the assignee and/or the assignor will exchange certain information, or where the subject of the contract implies such exchange of information, it is advisable for the parties under a civil contract to explicitly stipulate what information will be considered confidential, as well as to provide for measures for its protection – e.g. obligations for non-disclose of confidential information and certain consequences for failure to fulfil such obligations.
4. Work equipment: In general, the assignee under a civil contract should provide the services and manufacture the products with his/her own resources. However, the assignor is not prevented from providing materials for the work or from requiring the assignee to use specific work equipment (including work equipment owned by the assignor), for example in view of the subject of the contract or in order to maintain the confidentiality and security of the assignor’s information.
5. Liquidated damages: Liquidated damages may be agreed in favour of both parties – e.g. in the event of default, delayed execution, breach of confidentiality clauses, etc. Of course, they are not a mandatory element of the content of а civil contract and, in their absence, each party may claim damages under the general procedure, but in such case the respective party will have to prove the actual damages incurred.
6. Termination of contract: The parties are free to agree on the grounds and conditions for termination of the contract. For example, certain notice period for unilateral termination of the contract may be agreed on, which may be the same or different for each of the parties. The parties may also provide for cases in which immediate termination of the contract by one or both parties will be permissible, for example, if the assignor becomes insolvent or in the event of certain material breaches of the contract. It is recommended to include such clauses as well as provisions regulating the post-termination relationship (e.g. regarding the return of documents and materials, the handing over of unfinished work, etc.) insofar as they result in clarity in the contractual relationship and mitigate the risk of potential disputes between the parties in relation to the termination of a contract and its consequences.

The above text does not constitute legal advice or consultation and should not be considered sufficient to resolve specific legal issues and cases. We hope the information is useful, and we would be happy to provide further details upon request.

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