Cambodia - Opportunities For Investment - Contracts

The main legislation governing contracts is the Council of State Decree Regarding Contracts and other Obligations (the "Law on Contracts) which lays down a series of general principles which must be adhered to. The law provides for the essential elements of contract and makes provision for agreements to be held void and voidable including where there is mistake, fraud, coercion, duress, misrepresentation, incapacity or minority. Oral contracts have the force of law but only if they involve a payment of less than 5000 riel, otherwise the law requires a written contract. Note should also be made of public policy provisions which address topics like unequal bargaining positions, undue enrichment, and good faith or public morality and ethics provisions.