Law and Compliance in Hungary

Overview by

Business Contract

General Observation
The Civil Code stipulates the following main rules in respect of general contractual conditions: general contractual conditions will become a part of an actual contract when their user allows the other party to get acquainted with the contents of the general contractual conditions and to accept the general contractual conditions. Such conditions may be accepted through an express - oral or written - declaration or implicit contract, too. It is a well-established custom that the author of the general contractual conditions adds an express declaration to the actual contract, according to which the contracting party accepts the general contractual conditions as a part of the contract.
Law Applicable to the Contract
Be very carful which law you apply to the contract as well as the dispute resolutions. It is advisable to turn to a lawyer that is specialized in international law.
Advisable Incoterms
Language of Domestic Contract
A legally binding document can be in English or Hungarian, but in the event of commercial or tax dispute, an authenticated Hungarian version is the governing document.
Other Laws Which Can Be Used in Domestic Contracts
If it is not the Hungarian law that is used, use the other country's law to conclude the contract

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Legal Framework of Business

Equity of Judgments

Independence of Justice
Hungary has a three-tiered, independent judiciary in addition to the Supreme Court and a Constitutional Court. The constitution guarantees equality before the law, and courts are generally fair. Limited budget resources leave the system vulnerable to outside influence, but court funding is being improved, as required by EU membership.
Equal Treatment of Nationals and Foreigners
The Hungarian Republic assures to all foreigners staying on his territory human and civil rights without discrimination based on race, skin color, sex, language, religion, political opinion, national or social origin, fortune, or any other issue.
Hungary implemented a legal rights protection network in 2001 to provide legal aid to the Roma community and passed an antidiscrimination law that was introduced in 2003 as a requirement of EU membership.
The Language of Justice
Hungarian is the official language used in court procedures. However the law forbids any discrimination based on the language. Thus in case of a penal procedure each person has the right to use his / hers mother tongue in oral and in writing. Moreover the use of a defense attorney is compulsory if the defender has an insufficient level of Hungarian.
Recourse to an Interpreter
The services of an interpreter have to be offered if person whose mother tongue is not Hungarian stands in front of a court. The Hungarian State has to take in charge the interpreter expenses risen by the incapacity of the accused person to understand the Hungarian.
Legal Similarities
The sources of Hungarian law are the Acts of Parliament, governmental and ministerial decrees, which are valid only if published in the Official Gazette, and decrees of local governments.  The legal system of the Republic of Hungary accepts the universally recognized  rules and regulations of international law, and shall harmonize the internal laws and statutes of the country with the obligations assumed under international law.

The Different Legal Codes

Polgári Törvénykönyv Civil code
BüntetÅ‘ törvénykönyv Penal code
Munka törvénykönyve Labour code
Checking National Laws Online
Archive of the Parliament - requires registration
Other Useful Resources
Hungarian laws online
Courts online
Country Guides
NAGY ÉS TRÓCSÁNYI , attorney's document.

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The Jurisdictions

Local court 111 municipal and - in the capital - 6 district courts functioning as courts of first instance with general jurisdiction.
County courts and the Metropolitan Court of Budapest 19 county courts and - in the capital - the Municipal Court of Budapest functioning as courts of first and second instance, 5 of them specified by law deal with military cases.
Regional courts of appeal 5 High Courts of Appeal.
Supreme Court 1 Supreme Court of the Republic of Hungary which is the highest tribunal with double jurisdiction: judgment and harmonization of the judicial practice.
Special Tribunals Hungary does have special tribunals only in labor disputes. Labor courts shall proceed in the first instance in actions originating from employment relationships and legal relationships having the nature of an employment relationship. Labor courts shall operate in the capital and in the counties; total number of these courts is 20.

Court Officials

bírósági végrehajtó
Court official that executes the decision taken by the court.
bírósági végrehajtó helyettes
Deputy of the court official.
bírósági végrehajtó jelölt
Candidate to the court official position.
Bírósági leíró
In charge of noting and in charge of handing out documents.
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