Commercial law covers the relationships a business has with the market: between traders, between traders and consumers, and inside the company itself. In practice it comes down to three things — writing contracts that say what was actually agreed, collecting money that is owed, and handling disputes efficiently when they arise.
Contracts
We draft, review and negotiate the agreements a trading business depends on: sale and supply, contracts for work, leasing, distribution, commercial agency and franchise. We also advise on securing performance — guarantees, pledges, retention of title and penalty clauses — and on managing credit exposure to customers.
Under Bulgarian law, unclear wording in standard terms is read against the party that wrote them — a good reason to be precise.
Getting paid
For undisputed debts the quickest route is usually an order for payment under Art. 410 or 417 of the Civil Procedure Code, which can lead to enforcement within weeks if the debtor does not object. Where the debtor disputes the claim, we move to a full action. We also advise on securing a claim early through a precautionary attachment or garnishment.
Commercial disputes
We represent businesses in negotiation, mediation, court proceedings and arbitration, including before the commercial divisions of the Sofia City Court and the Sofia Court of Appeal. We also act against unfair competition and other infringements of a trader’s rights.
- Drafting and negotiating commercial contracts
- Legal review of contracts before signature
- Collection of receivables and order-for-payment proceedings
- Security for performance and credit-risk advice
- Commercial litigation and arbitration
- Protection against unfair competition
- Commercial Register filings and company changes
Questions clients ask
How long does a commercial case take in Bulgaria?
A first-instance commercial case usually lasts one to three years, and an appeal adds to that. Uncontested money claims are far quicker through the order-for-payment procedure, which is why we usually start there when the debt is clear.
Should our contract choose arbitration rather than the courts?
Arbitration can be faster and confidential, and an award is easier to enforce abroad under the New York Convention. It is less suited to small claims, where tribunal fees can outweigh the benefit. We decide case by case — see also our arbitration practice.
Can we charge interest and penalties for late payment?
Yes. Statutory interest applies to late payment between businesses, and parties can agree contractual penalties. Penalties that are grossly excessive compared with the harm they are meant to cover can be reduced by a court, so it pays to set them at a defensible level.
