Securitisation 2019 – Promotional Guidelines

1. RECEIVABLES CONTRACTS

1.1 Formalities. In order to create an enforceable debt obligation of the obligor to the seller: (a) is it necessary that the sales of goods or services are evidenced by a formal receivables contract; (b) are invoices alone sufficient; and (c) can a binding contract arise as a result of the behaviour of the parties?

Cyprus Contracts Law, Cap. 149 (as amended) states that a contract may be: made orally; partly written and partly oral; entirely in writing; or even implied by the conduct of the contracting parties. Therefore, there is no formal legal requirement that the sales of goods or services be evidenced by a formal receivables contract. Nevertheless, as a matter of good commercial practice and for purely evidential reasons, it is advisable that such transactions be evidenced in writing. In principle, invoices coupled with any parol evidence may be sufficient to evidence such a contract. A binding contract may also be adduced by the