Factoring agreement - instrument for credit institutions

AuthorCristina Marilena Paraschiv
PositionUniversity of Bucharest, Bucharest - Romania
AGORA International Journal of Juridical Sciences, www.juridicalj ournal.univagora.ro
ISSN 1843-570X, E-ISSN 2067-7677
No. 4 (2013), pp. 138-142
C. M. Paraschiv
Cristina Marilena Paraschiv
Faculty of Administration and Business, Department of Economics and Administrative
Sciences, University of Bucharest, Bucharest, Romania
*Correspondence: University of Bucharest, no. 4-12, Regina Elisabeta Blv., sector 1,
Bucharest, Romania
E-mail: av_cristina.paraschiv@yahoo.com
The Factoring agreement as operational instrument of credit institutions is of special
importance due to its permanent applicability, with the effect of streamlining the commercial
activities, both at national and international level. This contract represents a financial
technique closely related to the banking sector, and it can be considered as a variety of the
bank credit.
Key words: factoring, banking practice, contract, adherent, cession;
Taking into consideration more than succinct regulation regarding the factoring
contract at the national level, it is still considered an unnamed contract
. Within the
Romanian legislation the factoring agreement was first mentioned by GEO no. 10/1997 on
decreasing financial blockage and losses in the economy
, for subsequently to be regulated
by Law no. 469/2002, currently abrogated.. Internationally the factoring agreement is
regulated by UNIDROIT Convention on International Factoring agreement from Ottawa in
1988, the Rome Convention of 1980 on the law applicable to contractual obligations as well
as the United Nations Convention in New York in 2001 on the assignment of receivables in
international trade.
The concept, the legal nature and the parties of factoring agreement
The concept of factoring has its origins in the 17
century, in the Anglo-Saxon Law,
and it played a significant role in the development of international trade, at the time of its
appearance being concentrated in the textile trade between England and the United States.
In French doctrine
factoring is considered a technique by means of which a customer
called adherent or supplier submits his receivables to a factoring company called factor which
is a credit institution subject to the rules of Monetary and Financial Code. In return for
remuneration, the factor undertakes to collect the adherent’s receivables from its debtors and
to pay in advance, in whole or in part, the receivables transferred, ensuring the enforcement of
receivables even if the debtor cannot pay.
Within the Romanian legislation the factoring agreement was defined as that
“agreement concluded between a party called adherent, supplying goods or providing
services, and a banking company or specialized financial institution, called factor, by means
Brândua Vartolomei, Contractul de factoring, Lumina Lex Publishi ng House, Bucharest, 2006, p. 40-41.
Official Gazette of Romania. no. 72/22.04.1997, abrogated by art. 13 of Law no. 469/2 002, in its turn
abrogated by Law no. 246/2009 published in the Official Gazette o f Romania no. 450/30.06.2009.
Lavinia Smarandache, Alina Dodocioiu, Consideraii privind contractul de factoring, Revista de tiine juridice
Publishing House, no. 4/2008, p. 98 apud T. Bonneau, Droit bancaire, Montchrestien, P aris, 2003, p. 373.

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