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Contract Law
Cambodia is moving closer to having a modern system of commercial contracts. The current law pertaining to contracts, known as Decree 38, was passed in 1988, before the transition to a market economy had begun. In recent years, the Japanese government and ADB have sponsored the drafting of a new civil code, which includes detailed provisions on contracts. As of November 2007, this new code was reported to be very close to full enactment, and the drafting of a law on commercial contracts and a new law on commercial courts was reportedly underway.
Cambodia does not have a strong tradition of written contracts. The standard of contract drafting is not always high. The implementing institutions are weak; in particular, the courts are slow and inefficient and are widely seen as corrupt. Contract enforcement is slow and unreliable.
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