How to Manage Commercial Deals with Czech Partners as a Greek Business: Errors That Often Cause Trouble

When Greek companies expand into the Czech Republic or negotiate contracts with Czech partners, cultural and legal differences create unexpected traps that can result in unenforceable agreements, substantial fines, and costly litigation. This article provides specific answers to the legal concerns Greek businesses face when managing commercial deals with Czech partners, highlighting the hidden risks that even experienced Greek CEOs overlook.

Why Greek Business Practices Clash with Czech Legal Requirements

Greek commercial culture emphasizes relationship-based trust, verbal agreements, and flexible documentation practices. A handshake between a Greek CEO and Czech partner may signify commitment in Athens, but carries no legal weight in Prague. Czech law demands written contracts for virtually all commercial transactions, and Czech courts reject verbal agreements that would be enforceable under Greek law.​

Czech business culture prioritizes formality, written documentation trails, and hierarchical approval processes far more strictly than Greek practice. Greek management styles that delegate through informal channels consistently violate Czech labor law requirements for written employment directives and documented decision-making procedures. These cultural differences create legal exposure that Greek companies rarely anticipate until penalties arrive.

The double taxation treaty between Greece and the Czech Republic operates differently from standard EU directives, using the ordinary credit method rather than exemption mechanisms familiar to Greek tax advisors. Greek companies often discover these distinctions only after Czech tax authorities assess additional liabilities.​

FAQ – Legal Tips About Cross-Border Contract Validity

1. Are our verbal agreements with Czech partners legally binding?

No. Czech law requires written form for commercial agency agreements, contractual penalty clauses, and most business contracts to be enforceable. A verbal commitment from your Czech partner cannot be enforced in Czech courts, regardless of Greek contract law principles. Our lawyers draft written agreements that satisfy Czech formal requirements – contact office@arws.cz for contract preparation.

2. Can we use Greek contract templates with Czech partners?

Greek templates typically lack mandatory Czech provisions and violate Czech formal requirements. Sections on liability limitation, jurisdiction clauses, and termination procedures must comply with Czech Civil Code provisions that differ significantly from Greek law.

3. What happens if we don't register contracts with Czech state entities?

Contracts with Czech public authorities exceeding CZK 50,000 must be published in the Register of Contracts within three months or become void ex tunc – retroactively invalid as if never concluded. This strict requirement has no equivalent in Greek law. 

The Written Form Trap: When Greek Handshakes Become Unenforceable Agreements

Section 2483 of the Czech Civil Code mandates written form (písemná forma) for commercial agency agreements to achieve legal validity and enforceability. Greek companies routinely establish agency relationships through verbal commitments and email confirmations that satisfy Greek legal standards but create no binding obligations under Czech law.​

The written form requirement extends far beyond agency agreements to contractual penalty clauses, which must be agreed in writing to be enforceable. Courts cannot award contractual penalties based on verbal agreements or general understandings between parties, even when the underlying contract is valid. Greek businesses accustomed to flexible penalty negotiations face unpleasant surprises when Czech courts reject their enforcement claims.

General business terms and conditions present another written form challenge. Unlike Greek practice where verbal modifications frequently override written terms, Czech law requires that any deviation from general terms be explicitly agreed in writing and cannot be incorporated through course of dealing or verbal understanding. The Czech Civil Code's provisions on standard terms create a framework unfamiliar to Greek commercial lawyers.​

VAT Registration Nightmares: The Zero-Threshold Trap for Greek Companies

Greek companies operating in the Czech Republic face a VAT registration requirement radically different from Greek or general EU thresholds. Foreign companies have NO threshold – registration is mandatory from the first taxable transaction conducted in Czech territory. The Greek VAT threshold of €35,000 creates false expectations that delay Czech registration until substantial penalties accumulate.​

Failure to register for Czech VAT triggers penalties up to CZK 500,000 (approximately €19,600) under Section 247a of the Czech Tax Code. These sanctions represent one of the strictest VAT penalty regimes in the European Union, significantly exceeding Greek tax penalties that rarely reach this magnitude.

Late filing compounds the problem with penalties of 0.05% of assessed tax per day of delay, capped at CZK 300,000. Late payment interest accrues at the Czech National Bank repo rate plus 14% per annum, applied from the fifth working day after the due date. Greek companies accustomed to Greek tax authority flexibility discover that Czech tax administrators apply these penalties automatically without discretion.​

From 1 January 2025, a new mandatory requirement creates additional compliance burden: foreign companies VAT-registered in the Czech Republic must appoint an agent with a Czech data box by 28 February 2025. Failure to comply results in fines of CZK 1,000 per day of non-compliance. This requirement blindsides Greek businesses that completed VAT registration before 2025 without knowing about subsequent obligations.​

The data box (datová schránka) system for official correspondence represents another Czech administrative requirement unknown in Greek practice. Czech authorities communicate exclusively through data boxes for all official matters, and Greek directors without Czech residence permits cannot access these systems, causing missed deadlines and automatic penalties. This creates practical difficulties that Greek companies rarely anticipate during market entry planning.​

VAT and Tax Compliance Risks

Risk	How ARROWS Helps (office@arws.cz)
Operating without VAT registration – Up to CZK 500,000 fine​	VAT registration application and threshold monitoring.
Late VAT return filing – 0.05% per day (max CZK 300,000).​	Timely filing service and compliance calendar management.
Late VAT payment – CNB rate + 14% annual interest.​	Payment deadline tracking and cash flow coordination.
Missing data box agent (from 2025) – CZK 1,000 per day.​	Agent appointment and data box setup – email office@arws.cz.
Incorrect VAT return currency – Return rejection and penalties.	CZK conversion using CNB rates and accurate reporting.

Greek companies must understand that Czech VAT obligations extend beyond registration to include monthly control statements (Kontrolní hlášení) mandatory for most taxpayers, including non-residents. These reports require details about individual transactions that exceed Greek VAT reporting requirements. ARROWS handles VAT registration, control statement preparation, and data box agent appointment for Greek clients operating in Czech markets. For tailored VAT compliance, write to office@arws.cz.​

Payment Terms and Late Payment Interest: Czech Strictness vs. Greek Flexibility

Czech payment term regulations derive from EU Late Payment Directive implementation but apply stricter enforcement than Greek practice. The statutory default payment period is 30 days unless parties explicitly agree otherwise in writing. Any payment period exceeding 60 days may be agreed only if it is not "grossly unfair" to the creditor, and contractual clauses excluding default interest claims are automatically void.​

Late payment automatically triggers interest at the Czech National Bank repo rate plus 8 percentage points. As of 2025, this results in an annual interest rate of 11.75%. Interest begins accruing from the fourth day after the due date, not from the due date itself as in Greek law. Greek companies accustomed to flexible payment enforcement discover that Czech creditors aggressively pursue these statutory interest claims.​

Beyond interest, creditors automatically receive minimum compensation of CZK 1,200 for recovery costs without proving actual expenses. This fixed compensation applies regardless of invoice amount and supplements, rather than replaces, interest claims and damage compensation. The automatic nature of this compensation eliminates the negotiation flexibility common in Greek commercial relationships.

Contracts with Czech public authorities face even stricter limits: maximum 60-day payment periods with no exceptions, and any contractual terms attempting to extend this period are void. Greek companies bidding on Czech public contracts often propose 90- or 120-day payment terms standard in Greek public procurement, creating contract invalidity issues.​

The concept of "grossly unfair" payment terms requires interpretation based on specific transaction circumstances. Czech courts consider contractual clauses excluding default interest or recovery costs as grossly unfair per se, rendering such provisions void even if both parties agreed. This mandatory protection exceeds Greek commercial law provisions that permit parties to freely negotiate payment terms.​

FAQ – Legal Tips About Payment Terms and Currency

1. Can we agree on payment terms longer than 60 days with Czech partners?

Yes, but only if the terms are not "grossly unfair" to your Czech partner. Czech courts examine the specific transaction circumstances, and any clause excluding default interest or recovery costs will be void. Longer payment terms require careful drafting to survive judicial review. 

2. Should our invoices to Czech partners be in EUR or CZK?

Contracts can specify either currency, but Czech VAT reporting requires CZK using Czech National Bank exchange rates. Using CZK for invoicing simplifies your Czech partner's accounting and VAT compliance. 

3. What interest rate applies if our contract doesn't specify late payment terms?

Czech law automatically applies statutory interest at CNB repo rate + 8 percentage points (currently 11.75% annually), plus minimum CZK 1,200 recovery costs. These terms apply regardless of contract silence. Get professionally drafted payment clauses by contacting office@arws.cz.

Contractual Penalties: The Smluvní Pokuta Mechanism Greek Companies Misunderstand

The Czech contractual penalty (smluvní pokuta) operates differently from Greek penalty clauses in ways that consistently surprise Greek businesses. Under the Czech Civil Code, contractual penalties must be agreed in writing, are enforceable even without proving actual damage, and can be combined with damage claims if the contract explicitly permits.​

Czech courts possess authority to reduce excessive contractual penalties deemed disproportionate to the breach. This judicial moderation right means that Greek companies cannot rely on extreme penalty clauses as practical enforcement mechanisms. Penalties designed to coerce performance rather than compensate harm face reduction regardless of the parties' written agreement.​

The most dangerous trap for Greek companies involves the relationship between contractual penalties and withdrawal rights. Older Czech case law required that contractual penalties could only be linked to duty breaches, not to the exercise of withdrawal rights. Recent Supreme Court decisions allow "severance pay" or lump sum compensation upon withdrawal, but these must be carefully distinguished from contractual penalties in contract drafting.​

Force majeure clauses can relieve parties from contractual penalty obligations in addition to damage liability, but only if the contract explicitly addresses this interaction. Greek contracts often include generic force majeure language without specifying the effect on penalty obligations, creating ambiguity that Czech courts resolve against the party seeking relief.

Vague or missing penalty clause formulations create invalidity risks. Czech law requires clear definition of the specific obligation secured by the penalty, the penalty amount or calculation method, and the timing of penalty accrual. General penalty clauses securing "all contractual obligations" frequently fail judicial scrutiny.​

Contractual Penalty and Performance Security Risks

Risk	How ARROWS Helps (office@arws.cz)
Verbal penalty agreement – Completely unenforceable.	Written penalty clause drafting compliant with Czech Civil Code.
Excessive penalty amount – Court reduction to reasonable amount.	Calibrated penalty provisions based on Czech precedent.
Penalty for withdrawal (not breach) – Potential invalidity.	Proper structuring as severance compensation, not penalty.
No force majeure / penalty interaction – Penalty applies despite force majeure event.​	Integrated force majeure and penalty clause design.
Vague penalty formulation – Risk of complete invalidity.​	Precise obligation definition and penalty calculation method – email office@arws.cz.

ARROWS attorneys draft contractual penalty clauses that satisfy Czech formal requirements while providing practical enforcement mechanisms. Our penalty provisions specify clear breach definitions, proportionate amounts, and proper interaction with damage claims and force majeure circumstances. For penalty clause review or drafting, contact office@arws.cz.

Commercial Agency Agreements: Termination Rights That Shock Greek Principals

Greek companies appointing Czech commercial agents face statutory termination notice periods that cannot be shortened by agreement and termination compensation that cannot be contractually excluded. These mandatory provisions surprise Greek principals accustomed to flexible Greek agency law.

Czech law establishes minimum notice periods escalating with relationship duration: one month in the first year, two months in the second year, and three months in the third and subsequent years. Parties may agree on longer notice periods, but any attempt to shorten these minimums is void. Greek companies with standard 30-day termination clauses discover these provisions are unenforceable against Czech agents.

The termination compensation (indemnity) represents another mandatory obligation. When agency relationships end, the agent is entitled to special remuneration if they acquired new customers or significantly developed the principal's business. Section 2514 of the Czech Civil Code makes this provision mandatory and prohibits contractual derogation to the agent's disadvantage.​

Exclusivity agreements create additional complexity. If parties intend exclusive representation, they must state this explicitly in the written contract. The principal then cannot use another agent in the specified territory or business range, and the agent cannot act for other persons to that extent. However, even with exclusivity, the principal may conclude transactions directly, though the agent remains entitled to commission.​

Non-competition clauses are valid for maximum two years and require compensation to the agent. The non-compete obligation can only apply to activities that were the subject of the commercial representation or would compete with the principal's business. Greek companies proposing five-year non-compete provisions standard in Greek practice find these terms void under Czech law.

Fixed-term agency agreements present special termination rules. Exclusive agency agreements can be terminated if business volume in the last twelve months did not reach contractually specified levels. Additionally, either party may terminate without notice if the other party uses competing agents despite exclusivity agreements.​

Force Majeure Clauses: When Generic Greek Provisions Fail Czech Legal Standards

Section 2913(2) of the Czech Civil Code regulates force majeure in relation to contractual liability for damage. Force majeure is defined as an extraordinary, unforeseeable, and insurmountable obstacle created independently of the party's will that temporarily or permanently prevents contractual obligation fulfillment.​

The force majeure clause can relieve parties not only from damage compensation obligations but also from contractual penalty payments, but only if the contract explicitly addresses this interaction. Greek contracts typically include generic force majeure language without specifying effects on specific contractual obligations, creating enforcement uncertainty.​

Czech law does not provide exhaustive statutory definition of force majeure circumstances, making contractual enumeration critical. Theory and practice recognize certain typical circumstances: war, revolution, civil unrest, terrorist attacks, natural disasters (earthquake, flood, storm, volcanic eruptions, tsunami, fire), state intervention preventing implementation (embargo, boycott), and strikes. Other situations like power outages, loss of oil supplies, or legislation amendments require specific contractual identification.​

The force majeure event must occur after contract conclusion, not before. Additionally, Czech courts apply strict tests: the circumstance must be external (affecting any person, not just the specific party), unpredictable at contract conclusion, and insurmountable (not merely expensive or difficult to overcome).​

Importantly, force majeure provisions follow different rules for contracts governed by Czech law versus international contracts. Greek companies must ensure their contracts clearly specify governing law and the force majeure standard that applies. Mixing Greek force majeure concepts with Czech contractual frameworks creates interpretive confusion.

FAQ – Legal Tips About Force Majeure and Liability

1. Does a generic "acts of God" force majeure clause protect us in Czech contracts?

Generic clauses provide insufficient protection. Czech law requires that force majeure obstacles be extraordinary, unforeseeable, and insurmountable, and you must prove these elements. Specific enumeration of qualifying events provides much stronger protection.

2. Can force majeure excuse us from contractual penalty payments to Czech partners?

Only if your contract explicitly states that force majeure relieves penalty obligations. Czech courts will not automatically extend force majeure protection beyond damage liability unless the contract clearly provides this. 

3. What if economic hardship makes our contract unprofitable – is this force majeure?

Economic difficulty or increased costs generally do not constitute force majeure under Czech law unless the circumstances are truly extraordinary and insurmountable. Czech courts apply strict standards and reject hardship claims based on normal business risks. 

Jurisdiction and Dispute Resolution: Choosing the Right Forum Before Trouble Starts

Greek companies must address jurisdiction and dispute resolution in Czech commercial contracts before disputes arise. Prorogation clauses (forum selection clauses) must be in writing to be valid under Czech law. The Czech Civil Procedure Code does not expressly stipulate that chosen jurisdiction must be exclusive, creating potential parallel proceedings unless the contract clearly specifies exclusivity.

The recast Brussels I Regulation allows parties to agree on jurisdiction of a Czech court even when the contract and parties have no connection to the Czech Republic. This provides flexibility for Greek companies to select Czech courts as the dispute forum despite operations centered in Greece. However, jurisdiction clauses must only designate courts of EU member states to benefit from Brussels I Regulation enforcement.​

Arbitration represents a widely accepted alternative to litigation in Czech commercial relationships. The Arbitration Court attached to the Czech Chamber of Commerce and Agricultural Chamber operates as the principal arbitration institution handling international disputes. Arbitration proceedings offer control over speed, venue, arbitrator selection, and reliable rights protection at reasonable cost.​

Arbitration costs for domestic disputes with value up to CZK 50,000,000 amount to 4% of the dispute value (minimum fee CZK 10,000), making Czech arbitration more cost-effective than arbitrating abroad. Arbitral awards become effective and enforceable on the day of delivery to parties, and enforcement in over 140 countries is guaranteed by the New York Convention on Recognition and Enforcement of Foreign Arbitral Awards.​

The time to arbitrate and enforce awards in the Czech Republic is substantially shorter than average litigation duration. However, Greek companies must include arbitration clauses in their written contracts before disputes arise – Czech courts will not compel arbitration based on verbal agreements or post-dispute negotiations.​

Transfer of Ownership and Delivery Terms: Incoterms Are Not Enough

Czech law follows the general principle that ownership transfers when the contract becomes effective. However, for movable goods like inventory, stock, and equipment, ownership passes only upon actual delivery unless parties agree otherwise. This differs from Greek practice where contract conclusion more frequently determines ownership transfer timing.

The distinction between risk transfer and ownership transfer creates particular danger. Incoterms specify when risk of loss or damage passes from seller to buyer, but they do not address ownership transfer or breach of contract consequences. Greek companies using Incoterms terms like "EXW" or "FCA" without additional ownership provisions discover that Czech law applies default rules that may contradict their commercial intentions.

Real estate ownership passes to the buyer only upon registration of the transfer in the land register maintained by the Cadastral Office. Contract conclusion creates the legal basis for transfer but does not complete ownership passage. Greek companies accustomed to immediate ownership upon notarized deed signing must wait for Cadastral Office registration, which can take several weeks.​

In rem rights (mortgage, pledge, easement, pre-emptive rights) related to transferred property pass by operation of law with the property. Greek purchasers must conduct thorough due diligence on Czech real estate to identify all registered encumbrances, as these transfer automatically regardless of buyer knowledge.​

Receivables transfer by simple written assignment agreement, and debtor consent is not required. However, the debtor can discharge its obligation only by performance to the assignee (not the assignor) after receiving notification of the assignment. Greek companies purchasing Czech receivables must properly notify debtors to prevent payment to the wrong party.

ARROWS attorneys draft delivery and ownership transfer provisions that clearly specify when ownership passes, when risk transfers, and what obligations survive delivery. These provisions integrate Incoterms with Czech Civil Code requirements to eliminate ambiguity. For contract review focused on ownership and delivery, contact office@arws.cz.

Warranty and Defects Liability: Notice Requirements Greek Companies Miss

Czech law distinguishes between liability for defects existing at risk transfer and warranty for quality during a specified period. This distinction operates differently from Greek warranty law and creates notification obligations that Greek companies routinely violate.​

For business-to-business contracts, parties freely negotiate warranty terms and conditions. However, defects existing at the time of risk transfer must be notified "without undue delay" after discovery. This period depends on the specific goods or services and Czech courts assess compliance case by case. In practice, "without undue delay" typically means days or weeks, not months.

For latent (hidden) defects, notification must occur without undue delay after the purchaser could have discovered the defect by exercising due care, but no later than two years after delivery. Greek companies accustomed to longer Greek limitation periods discover that failing to inspect goods promptly and notify defects costs them all warranty rights.

Business partners can stipulate specific procedures for inspecting delivered goods and notifying defects, as well as various exclusions. Greek companies accepting Czech general business terms without reviewing inspection and notification procedures later find they missed contractually shortened deadlines.

Liability for damage is objective under Czech law – proof of seller's fault is not required. However, sellers can escape liability by proving that an unpredictable and insurmountable obstacle (force majeure) prevented contractual obligation fulfillment. This objective liability standard differs from Greek fault-based liability concepts.

Czech law permits limitation and exclusion of warranty rights and damage claims within restrictions: parties cannot limit liability for damage caused intentionally or by gross negligence even in business-to-business relations. Consumer rights to remedy or compensation cannot be restricted or excluded before defects occur.

Contract Registration with Czech State: The Three-Month Invalidity Deadline

Contracts with Czech state entities, state-related bodies, or involving public funds must be published in the Register of Contracts (Registr smluv) within three months after conclusion, or the contracts become invalid ex tunc – retroactively void as if never concluded. This strict requirement has no equivalent in Greek law and consistently surprises Greek companies entering Czech public procurement.

The obligation applies to contracts where performance value exceeds CZK 50,000 (approximately EUR 1,850). Exemptions exist for contracts with individuals outside business activity, contracts affecting national security, and contracts covered by trade secrecy to the extent permitted by freedom of information law.

The three-month deadline is absolute – missing this deadline automatically voids the contract regardless of parties' intentions or performance. There is no judicial discretion to excuse late publication or extend the deadline based on good faith or substantial compliance. Greek companies that negotiate carefully, perform their contractual obligations, and then discover invalidity face devastating consequences.

The published contract must include the word version, with identity of contracting parties, contract date, subject matter, and performance value. Confidential data protected under information access laws may be redacted, but core commercial terms must be disclosed. Greek companies accustomed to confidential public procurement arrangements discover Czech transparency requirements far exceed Greek standards.

Enforcement began for contracts concluded after 1 July 2017. Contracts concluded between 1 July 2016 and 1 July 2017 required publication but faced no sanctions for non-publication. Since July 2017, however, the invalidity sanction applies strictly.

State Contract and Public Procurement Risks

Risk	How ARROWS Helps (office@arws.cz)
Failure to register contract within 3 months – Contract void ex tunc.	Register of Contracts publication service – contact office@arws.cz.
Incomplete contract publication – Registration rejected; deadline continues.	Complete documentation preparation and upload.
Incorrect redaction of confidential data – Publication refusal or transparency violations.	Legal analysis of permitted redactions.
Amendment not separately registered – Amendment invalidity (interpretation uncertain).	Amendment publication and validity confirmation.
Performance before publication – All performance legally invalid; recovery uncertain.	Pre-performance publication confirmation.

ARROWS guides Greek companies through Czech public procurement compliance, including Register of Contracts publication, contract drafting meeting Czech transparency standards, and amendment management. These specialized services protect Greek businesses from the invalidity trap. For immediate assistance with state contracts, write to office@arws.cz.

Data Boxes: The Electronic Communication System That Traps Foreign Companies

The Czech data box (datová schránka) system for official correspondence creates administrative burdens unknown in Greek practice. Czech authorities communicate exclusively through data boxes for all official matters, and failure to monitor data boxes results in missed deadlines and automatic penalties.

All Czech legal entities registered in the Commercial Register must have data boxes. This includes Czech subsidiaries of Greek companies. Additionally, since January 2023, all business individuals (self-employed persons) must have data boxes established automatically if they don't proactively create them. Greek directors operating through Czech entities discover data box obligations only after Czech authorities send unread official notices.​

Foreign legal entities not registered in the Czech Commercial Register can request data box establishment from the Ministry of Interior. However, as Greek entities lack Czech company registration numbers (IČO), the application process requires officially authenticated signatures and excerpts from Greek registries with apostille or superlegalisation.

From 1 January 2025, foreign entities VAT-registered in the Czech Republic but lacking data boxes must appoint an agent with a Czech data box. This agent assumes all rights and obligations regarding delivery of documents from tax authorities. Greek companies VAT-registered before 2025 must appoint agents by 28 February 2025 or face penalties of CZK 1,000 per day.

Data box messages are deemed delivered (even if unread) within 10 days of posting for legal entities, creating legal fiction that dramatically shortens response times. Greek directors accustomed to physical mail tracking discover that Czech delivery rules eliminate the "we never received it" defense.

Why ARROWS: Protecting Greek Businesses from Czech Legal Traps

The complexity of Czech commercial law, combined with substantial cultural differences from Greek business practices, creates risks that cost Greek companies hundreds of thousands of euros annually in fines, unenforceable contracts, and failed transactions. ARROWS operates as an international law firm from Prague, European Union, with specific expertise guiding Greek businesses through Czech legal requirements.

ARROWS lawyers handle these matters daily: commercial contract drafting, VAT registration, agency agreement structuring, public procurement compliance, and dispute resolution. With professional indemnity insurance of CZK 500 million, ARROWS provides financial security for Greek clients. ARROWS serves over 150 joint-stock companies, 250 limited liability companies, and 51 municipalities and regions, demonstrating the institutional experience Greek businesses need.

As part of the ARROWS International network, the firm operates in 90 countries globally, providing Greek clients with coordinated cross-border legal services when Czech transactions connect to operations in Greece or other jurisdictions. ARROWS is known for speed and high quality, and welcomes innovative business ideas and investment opportunities where Greek and Czech business interests align.

The approach is practical: ARROWS prepares internal company policies, drafts documentation preventing fines and penalties, provides legal consultations preventing inspections, reviews and drafts contracts, represents clients before courts and public authorities, obtains licenses and regulatory approvals, and delivers professional training for Greek employees and management with certification.

Managing commercial deals with Czech partners requires more than goodwill and Greek business instincts – it demands precise compliance with Czech formal requirements, proactive risk management, and culturally adapted contract drafting. The errors discussed in this article cost Greek businesses substantial money and create legal exposure that threatens entire Czech market strategies.

ARROWS provides Greek companies with comprehensive legal protection: contract preparation eliminating formal defects, VAT and tax registration preventing penalties, agency agreement structuring protecting principals, public procurement compliance avoiding invalidity, and dispute resolution preserving commercial relationships. Do not leave your Czech transactions to chance – contact ARROWS today at office@arws.cz.

FAQ – Most Common Legal Questions About Greek-Czech Commercial Contracts

1. Can we enforce a contract signed by our Czech partner if we don't have a written Czech translation?

Contracts between Greek and Czech companies can be in English, but Czech courts may require certified Czech translation during litigation. For contracts with Czech state entities, Czech language or certified translation is often mandatory. Our lawyers draft bilingual contracts avoiding translation disputes – contact office@arws.cz.

2. What governing law should Greek-Czech commercial contracts specify?

Parties can freely choose governing law within EU rules. Many Greek companies prefer Czech law when the contract performs primarily in Czech Republic, as this aligns with Czech court interpretation. However, strategic considerations vary by transaction type.

3. How do we enforce a contract against a Czech partner who stops paying?

Czech law provides multiple enforcement mechanisms: contractual penalties (if properly drafted), late payment interest, recovery cost compensation, and court litigation or arbitration. The optimal approach depends on contract terms, amounts involved, and ongoing business relationship. Get tailored enforcement strategy at office@arws.cz.

4. Do Czech courts recognize Greek court judgments?

Yes, under Brussels I Regulation (recast) and bilateral treaties, Greek court judgments are recognized and enforced in the Czech Republic, though procedural steps are required. Recognition is generally automatic for judgments from EU member states.

5. Can our Greek employees work temporarily in Czech Republic without Czech employment contracts?

Cross-border service provision is permitted for temporary and occasional work, but "temporary" requires careful interpretation – duration, regularity, frequency and continuity determine whether Czech establishment is required. Regular weekly or monthly presence typically requires Czech trade license or branch.

6. What happens if our Czech partner terminates a commercial agency agreement without proper notice?

The agent is entitled to termination indemnity if they acquired new customers or developed your business, and you remain liable for commissions on transactions concluded during the notice period that should have been given. The mandatory notice periods (1-3 months depending on relationship duration) cannot be shortened. For agency dispute resolution, contact office@arws.cz.