The new Civil Code incorporated the legal developments and court practice of the past decades and takes into consideration the European legislation as well. The new Code affects the activity of companies widely as it introduced some substantial changes and reforms in certain legal institutions and adopted several completely new legal institutions and incorporated also the rules of companies which area earlier was regulated in a separate Companies Act.
The new Civil Code now incorporated as new types of contracts distribution and licence (franchise) contract and incorporated the long term agency contract. The former Act CXVII of 2000 on the independent commercial agency was repealed parallel with the entering into force of the new Civil Code and on the agency fee due to the agent under the agency agreement is regulated by the Government Decree No 65/2014 (III.13.) which entered into force also on 15 March, 2014.
The new Civil Code applies to contracts concluded after its entry into force so a long transition period can be foreseen when the old and new Civil Code apply parallel.
The relevant country reports are still based on the previous Civil Code the rules of which have to be applied for contracts concluded before entering into force. Revision of the reports in accordance with the new Civil Code will be made soon.
Agnes Szent-Ivany, IDI agency and distribution country expert for Hungary