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Contract Law
The legal framework on contracts allows parties to enter into any kind of agreement that does not violate the law or is contrary to public order.
Although there is no legal framework for modern contracts, such as leasing, the business community has been creative in designing legal arrangements to govern modern business situations such as electronic transactions.
The law is insufficient in the area of damages. There is no provision for consequential damages and punitive damages.
Most lawyers, judges, and arbitrators lack knowledge of the contractual concepts used by modern international business.
Some contracts are not valid until a notary intervenes. Notaries are not properly regulated and many cases of fraud can be traced to them. In other cases, although notarization may not be required, it is recommended because of judicial uncertainty.
Overall, the court system is in poor shape. Thus, the contract enforcement procedure is lengthy, complex, and unreliable.
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