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Hungarian Contract Law

Feb 15, 2024

Hungarian Contract Law

by | Feb 15, 2024

Hungarian Contract Law

For businesses unfamiliar with Hungarian law, navigating its intricacies can be daunting. In this guide, we explore Hungarian contract law, shedding light on its key principles, requirements, and nuances. Hungarian contract law, governed primarily by the Hungarian Civil Code, is rooted in both civil law tradition and EU regulations. It provides a comprehensive framework for the formation, interpretation, and enforcement of contracts. Here are some fundamental aspects to consider:

Formation of Contracts:

Offer and Acceptance: Like in many jurisdictions, a contract in Hungary is formed upon the meeting of minds through offer and acceptance. Both parties must express their intent to be bound by the terms of the agreement.

Consideration: Hungarian law generally requires consideration for a contract to be valid, though exceptions exist, particularly in gratuitous contracts.

Form Requirements: While most contracts in Hungary do not require a specific form, certain types, such as real estate contracts, may need to be executed in writing or notarized.

Content of Contracts:

Freedom of Contract: Hungarian law generally upholds the principle of freedom of contract, allowing parties to negotiate and agree upon terms as they see fit, provided they do not violate mandatory legal provisions or public policy.

Good Faith and Fair Dealing: Contracts in Hungary are subject to the principle of good faith and fair dealing, obligating parties to act honestly and fairly in their dealings with each other.

Performance and Termination:

Performance Obligations: Parties are expected to fulfill their contractual obligations in accordance with the terms of the agreement and applicable law.

Termination: Contracts may be terminated by mutual agreement, by operation of law, or due to breach of contract. Hungarian law provides remedies for breach, including damages and specific performance.

Special Considerations:

Consumer Contracts: Contracts with consumers are subject to specific consumer protection laws, which provide additional rights and remedies to consumers.

International Contracts: When dealing with international contracts, parties should consider applicable international conventions and EU regulations, alongside Hungarian domestic law.

Enforcement and Dispute Resolution:

In case of disputes, parties may seek resolution through negotiation, mediation, arbitration, or litigation. Hungarian courts have jurisdiction over contract disputes, and their decisions are generally enforceable within the country and throughout the EU under the Brussels I Regulation.


Navigating Hungarian contract law requires a nuanced understanding of its principles and requirements. Businesses operating in Hungary or engaging in transactions with Hungarian entities should seek competent legal advice to ensure compliance and mitigate risks. By understanding the intricacies of Hungarian contract law, businesses can effectively protect their interests and foster successful commercial relationships in this dynamic European market.

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