Contract resolution for non-performance in Romania

Contract resolution retroactively undoes a contract when one party fails to perform an essential obligation. Parties are returned to the prior position.

Definiţie

Contract resolution in Romania

Resolution (rezoluțiune, art. 1.549-1.554 Civil Code) is the remedy that retroactively undoes a synallagmatic contract when one party culpably fails to perform a sufficiently serious obligation. It differs from rescission (reziliere), which applies to ongoing contracts and operates only for the future.

Resolution can be ordered by the court, declared unilaterally by the creditor (under specific conditions), or operate by law if the parties inserted an express commissory clause (pact comisoriu). The contract is undone, performances must be returned and the creditor can also claim damages for the loss caused by non-performance.

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