Contracts in Greece: What Is Contract Law And Examples

What are contracts?

A contract is a legally binding agreement between two or more parties that establishes rights and obligations that are enforceable in court. Contracts form the basis of commercial and personal agreements and ensure that promises and commitments are honoured.

Contracts are essential in protecting individual rights and responsibilities. They define expectations between parties and provide remedies for breaches, ensuring fairness and accountability.

Contracts can take many forms and can be written, oral or implied, although written contracts are generally preferred for reasons of legal clarity and enforceability.

For a contract to be valid, it must typically contain the following elements

• Offer: One party proposes certain terms
• Acceptance: The other party agrees to these terms
• Mutual consent: Both parties voluntarily agree to the terms
• Capacity: The parties must have the legal capacity to enter into the contract
• Legality: The contract must be for a lawful purpose

Contracts play a vital role in society by providing predictability and trust in economic and social relationships.

Businesses rely on contracts to formalise transactions, protect assets and ensure that services and goods are delivered as promised.

Employment contracts, leases, service contracts and even online terms and conditions are all examples of contracts that govern everyday interactions.

Without enforceable agreements, disputes would be much more difficult to resolve, leading to chaos and inefficiency in business and personal dealings.

Types of Contracts

Contracts are an integral part of modern life, shaping our financial, professional and personal commitments. They are essential in many aspects of life and business, ensuring that agreements are legally enforceable and obligations are met.

We enter into contracts and agreements on an almost daily basis, sometimes without realising it or paying enough attention to what we are signing.

Common agreements that are part of our everyday lives include:

• Employment contract: A contract between an employer and an employee that outlines job responsibilities, salary, benefits, working hours and termination conditions. Provides clarity on work expectations, compensation and legal protections for both parties.
• Rental/Lease Agreement: A contract between a landlord and a tenant that outlines the terms and conditions for renting a property, including rent amount, term, and maintenance responsibilities. Protects both landlord and tenant by clearly outlining rights and obligations.
• Sale and Purchase Agreement: A contract used when buying big-ticket items (such as a house, car or electronics) that specifies the price, payment terms and delivery conditions. It ensures that buyers and sellers understand their obligations and prevents disputes over payment and ownership.
• Loan agreement: A contract between a lender (such as a bank) and a borrower that details the loan amount, interest rate, repayment schedule and penalties for non-payment. It legally binds both parties and protects lenders from default while giving borrowers clear repayment terms.
• Insurance policy: A contract between an individual and an insurance company in which the insurer agrees to cover specific risks in exchange for premium payments. Provides financial protection against unexpected events such as accidents, health problems or property damage.
• Service Contract: A contract where one party provides services to another, such as a contractor doing home repairs or a consultant providing expertise. Defines the scope of work, deadlines and payment terms to avoid misunderstandings.
• Non-disclosure agreement (NDA): A contract that prevents one party from sharing confidential information with others. Common in business and employment. Protects sensitive information such as trade secrets, business strategies or personal data.
• Terms of Service (ToS) & Privacy Policy Agreements: Agreements that users accept when signing up for websites, applications or software services that outline their rights and how their information will be used. Protects companies legally while informing users of their rights and responsibilities.
• Credit card agreement: A contract between a credit card company and a cardholder that details interest rates, repayment terms and penalties for late payments. Defines financial obligations and protects consumers from hidden fees and unfair charges.
• Online subscription agreement: A contract for recurring services such as Netflix, Spotify or gym memberships that outlines costs, billing cycles and cancellation policies. Clarify payment obligations and cancellation procedures to avoid unexpected charges.
• Property purchase agreement: A contract between a buyer and seller for the purchase of a property that specifies the price, mortgage terms and closing details. Ensures that both parties comply with legal requirements and prevents fraud in property transactions.
• Prenuptial Agreement: A contract between two people before marriage that defines how assets and debts will be handled in the event of divorce. Protects personal assets and clarifies financial responsibilities in a marriage.
• Divorce settlement agreement: A contract between divorcing spouses that outlines the division of assets, alimony, child support and custody arrangements. Ensures a fair settlement and prevents post-divorce litigation.

Entering into a contract

Entering into an agreement usually involves three main steps:

1. Offer: One party proposes certain terms to the other (for example, a landlord offers to rent an apartment for €1,200 per month).
2. Acceptance: The other party agrees to the terms of the offer (Example: The tenant agrees to rent the apartment on the terms offered.)
3. Consideration: Something of value is exchanged between the parties (Example: The tenant pays rent and the landlord provides a place to live).

For a contract to be legally valid and enforceable, it must have the following essential elements:

• Mutual consent: Both parties must agree to the terms voluntarily, without coercion or deception.
• Offer and acceptance: There must be a clear offer and a clear acceptance of that offer.
• Consideration: Each party must receive something of value (e.g. money, services, goods).
• Capacity: The parties must be legally capable of entering into a contract (e.g. mentally competent, of legal age).
• Legality: The contract must be for a lawful purpose (e.g. a contract for illegal activities would be void).

In some cases, contracts must meet additional legal requirements, such as:

• Written form: Some contracts (e.g. property transactions, loan agreements) must be in writing to be enforceable.
• Signatures: Written contracts often require signatures to confirm the agreement.
• Witnesses/Notarisation: Some contracts require a witness or notary public to certify the agreement.

Once these conditions are met, the contract becomes legally binding. If one party fails to fulfil its obligations, the other party may seek legal remedies, such as compensation or enforcement of the contract.

Withdrawing from a contract

Withdrawing from a contract, also known as termination, cancellation or rescission, depends on the terms of the contract, the reason for withdrawal and the applicable law.

Common ways to withdraw from a contract are:

• Right to cancel (cooling-off period): Some contracts allow for a cooling-off period, during which either party can cancel without penalty.
• Mutual agreement to terminate: Both parties may agree to terminate the contract if it no longer serves their interests.
• Breach of contract by the other party: If one party fails to fulfil its obligations, the other party may have a legal right to terminate the contract.
• Termination clause: Many contracts contain a termination clause that allows the parties to withdraw under certain conditions.
• Fraud, misrepresentation or duress: If a contract was signed under false pretences, duress or fraud, you may have a legal right to cancel.
• Impossibility or frustration of purpose: If unforeseen events make it impossible to fulfil the contract, it can be legally cancelled.
• Unilateral withdrawal (with penalties): Some contracts allow withdrawal at any time, but with a penalty (such as fees or loss of a deposit).

Differences between contract law in the US and the UK and Greece

Contract law in the United Kingdom and the United States is based on common law principles, with an emphasis on precedent (case law) and judicial interpretation, whereas Greek contract law follows the civil law tradition, relying on codified statutes and greater judicial discretion. In the UK and US, contracts are primarily governed by judge-made law, meaning that past court decisions influence how contracts are interpreted and enforced. In contrast, Greek contract law is codified in the Greek Civil Code and judges apply pre-defined legal rules, taking into account principles of fairness and social justice.

A major difference lies in the formation and interpretation of contracts. In both the UK and the US, consideration (exchange of value) is an essential element of a valid contract, whereas in Greece contracts are often enforceable without consideration as long as there is a clear agreement. In addition, Greek courts place more emphasis on good faith (καλή πίστη) and fairness, allowing judges to modify unfair contracts, whereas in the UK and US, contracts are generally upheld as written unless they violate statutory law or public policy. In Greece, judges have the power to adjust contractual obligations in cases of significant imbalance, something much less common in Anglo-American systems.

Another important difference is in the formalities of the contract. In the UK and US, oral contracts are generally enforceable, except in certain cases (e.g. land sales, guarantees, contracts that cannot be performed within one year). Greek law also permits oral contracts, but often requires written agreements in a wider range of cases, particularly in consumer and commercial transactions. In addition, Greece requires notarisation of certain contracts (e.g. real estate transactions), whereas in the UK and most US states, notarisation is rarely required unless required by law.

Greek contract drafting and review

At Leptokaridou Law Firm we specialise in drafting and reviewing Greek language contracts for our international clients, ensuring that our clients’ agreements are legally sound, enforceable and protect their interests.

The main types of contracts we handle in Greece include:

• Sale and Purchase Agreements
• Property sale contracts
• Lease and rental agreements
• Employment contracts in Greece
• Partnership & shareholder agreements
• Loan agreements
• Franchise Agreements
• Confidentiality & Non-Disclosure Agreements
• Non-compete & non-solicitation agreements
• Prenuptial & Marital Agreements

Having a lawyer draft and review contracts ensures legal clarity, prevents costly disputes and guarantees compliance with Greek law.

If you are buying or selling property in Greece, a Greek real estate lawyer will ensure a smooth and secure transaction.