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Greek Business Law
A Handbook for Businesses and Legal Practitioners
Issues in Civil Law
PART I: ISSUES IN CIVIL LAW
2. Contracts
2.1. Introduction
According to article 361 of the Greek Civil Code, for an obligation to be borne,
a contract is required. This rule reflects the principles of private autonomy and
contractual freedom. In Greek law a contract is a very broad concept that in-
cludes any act in which there is a meeting of at least two wills with an intention
to bind oneself, i.e. to produce results in law.
2.2. Formation of contracts
2.2.1. Capacity of parties to conclude contracts
Greek law distinguishes between persons with full, limited or no capacity to
enter into juridical acts. Adults (i.e. persons who are over the age of 18) have
full capacity to conclude contracts. Minors and adults who are under custody
by virtue of a court order have no or limited capacity to conclude contracts,
depending on several factors (e.g. age, scope of the contact, seriousness of ill-
ness). Legal entities have the capacity to conclude a contract provided that the
relevant contract is executed by their legal representative and that the legal
representative is acting within the scope of his* powers (art. 70 and arts 127 to
129, Civil Code).
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2.2.2. Meeting of declarations of will
A contract is concluded when the declarations of will of the contracting par-
ties meet (arts 185 to 196, Civil Code). A declaration of will is defective when
it is the result of error, or is the result of fraud or threat. Usually there is an of-
fer for the conclusion of the contract and an acceptance of it. An agreement is
achieved when the parties have agreed on: (a) the essential terms of a contract
and (b) the points which according to their expressed wish were to be part of
the contract. During the stage of contract negotiations the parties have to act
in good faith and within commercial practice; otherwise, they may be obliged
* The use of the masculine personal pronoun includes both genders and may also refer, de-
pendingon the context, to a legal person.
