The main legislation governing contracts is the Council of State Decree Regarding Contracts and other Obligations (the "Law on Contracts) which lays down a series of general principles which must be adhered to. The law provides for the essential elements of contract and makes provision for agreements to be held void and voidable including where there is mistake, fraud, coercion, duress, misrepresentation, incapacity or minority. Oral contracts have the force of law but only if they involve a payment of less than 5000 riel, otherwise the law requires a written contract. Note should also be made of public policy provisions which address topics like unequal bargaining positions, undue enrichment, and good faith or public morality and ethics provisions.
NOTE: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
If you would like further advice please contact: David Ellis, Johnson Stokes & Master, 16th Floor, Princes Building, 10 Chater Road, Hong Kong; Tel 2843 4226; Fax no. : 2845 9121. Alternatively do a text search "Johnson Stokes and Master" and "Business Monitor".