Claim for performance of a contract for work

A contract for work is a consensual, bilateral contract for consideration with cumulative obligations; it requires no particular form. The contractor undertakes two principal obligations: to complete the work on the agreed terms, within the agreed time and without deviations or defects, and to deliver it to the customer. The customer must accept the completed work and pay the agreed remuneration inclusive of applicable VAT, under Article 258 and the first sentence of Article 266(1) of the Obligations and Contracts Act.

Under Article 264(1), the customer must accept the work. Acceptance has two elements: (1) taking actual delivery and (2) acknowledging that the work conforms to the agreement. Acceptance occurs when the customer takes delivery and expressly or implicitly approves the work as conforming to the contract. Acceptance thus entails approval. Article 264(2) requires the customer to inspect the work and raise objections to any discrepancies found. In the absence of objections, acceptance is presumed under Article 264(3). By delivering the completed work the contractor fulfils the contractual obligations and the customer’s obligation to pay falls due.

In an action to enforce a contractual obligation under Article 266(1), the claimant must prove that there is a valid contract between the parties and that the claimant has performed or is ready to perform. The customer must cooperate with the contractor, accept the completed work and pay the remuneration. Acceptance means both taking actual delivery and acknowledging conformity with the agreement. The customer must accept the work but may raise objections under Article 264(2) if it does not conform; otherwise it is deemed accepted.

Performance and acceptance may be proved through documents, a court-appointed technical expert or witness testimony. According to the case law of the Supreme Court of Cassation, invoices reflect the legal relationship between the parties. The defendant’s recording of the invoices in its accounts and deduction of input VAT constitute acknowledgment of the debt. A customer who records the invoice and claims the VAT deduction is regarded as having accepted the work even without a handover and acceptance certificate signed by both parties.

This article is not legal advice or an opinion on a specific case from Mihail Tomov, attorney at law, Tomovi Law Firm or any lawyer at the firm. For legal assistance, consult a lawyer who practises civil law and represents clients in court.