Breach of contract under the new rules: one system of remedies

The supplier fails to deliver, the work is defective or the customer does not pay. Every such dispute starts with the same question: what are your options? The answer currently depends on the type of contract and often on which code governs it. The government’s draft new Civil Code (parliamentary print 1312) is intended to change that.

Why the current position is a problem

The consequences of non-performance must currently be found in incomplete rules for individual contract types. Sale contracts have one set of rules, work contracts another and other types their own, compounded by the Civil and Commercial Codes’ dual system. Disputes therefore often begin with deciding which regime applies before addressing the claim itself. Gaps in the rules may also give the defaulting party room for obstructive interpretations.

One system for every contract

According to the explanatory memorandum, the draft Civil Code introduces a modern, unified system of remedies for non-performance, established in other legal systems, making the consequences of breach clearer and consistent across contract types. Instead of searching for provisions scattered among individual contract types, the basis would be a single catalogue of remedies, from the right to performance through price reduction and damages to withdrawal (§ 519 of the draft), to which the rules on sale contracts and contracts for work also refer for defects (§ 774 and § 1255); consumer sales, for example, would keep their own special rules.

Other proposed changes also relate to breach: express rules for non-pecuniary claims arising from breach of contract (absent agreement, only for contracts aimed to a substantial extent at non-pecuniary interests, where returning a deposit or another remedy is plainly insufficient, § 543 of the draft) and disguised late-payment interest: a percentage contractual penalty for the period of delay would be treated as late-payment interest (§ 540 of the draft).

What this means for your templates

Clauses on withdrawal, price reductions, substitute performance and contractual penalties are currently tailored to scattered rules. In contracts governed by the new law, they will need to be aligned with the unified system; otherwise, a clause may fail to tie in with the statutory concepts or run up against mandatory rules, such as the invalidity of limiting liability for intentional non-performance (§ 518(3) of the draft). Contracts concluded before the effective date would continue to be governed by the existing legislation even for breaches after 1 July 2027, unless the parties agree in writing to move to the new law (§ 1889(3) and (4) of the draft); for business-to-business contracts, the implementing amendment to the Commercial Code must also be monitored. Clearer statutory rules could also narrow the scope for obstructing recovery.

When will the change arrive?

The Slovak government approved the draft on 6 May 2026, and Parliament advanced it to second reading on 9 June 2026. On 15 September 2026, the Constitutional and Legal Affairs Committee recommended approving it with amendments, and on 22 September 2026 MPs tabled further amendments in the plenary; the plenary will decide on the final wording. The proposed effective date is 1 July 2027 (as at 26 September 2026). The wording and section numbering may still change, but this is the right lead time for preparing penalty and liability clauses.

If your business uses contract templates, our preparation for the new Civil Code includes reviewing remedies for breach. We can check them before a dispute arises.