FACULTY OF BUSINESS

FACULTY OF ACCOUNTING

CONTRACTS IN PERU
COURSE:

BUSINESS LAB
AUTHOR:

JARA REMIGIO, ROSSY VANESSA

TEACHER:

GARCIA GUTIERREZ, CESAR ANGELO

Huaraz - Peru

(2023)
Content
INTRODUCTION...........................................................................................................1
DEVELOPMENT...........................................................................................................1
Employment contract................................................................................................1
Lease Agreement......................................................................................................3
Contract of sale..........................................................................................................4
Contract for the provision of services.....................................................................5
Partnership agreement.............................................................................................6
CONCLUSION...............................................................................................................7
REFERENCES................................................................................................................
INTRODUCTION
Contracts are fundamental elements in any commercial, labor or civil activity in
Peru. These legal agreements establish the terms and conditions of a
relationship between two or more parties, providing legal certainty and
protection of the rights and interests of those who sign them. In both the
business and personal spheres, contracts in Peru play a crucial role in defining
the obligations, rights, and responsibilities of the parties involved.

In Peru, contracts can take a variety of forms and cover a wide range of
situations, from employment contracts that regulate the relationships between
employers and employees, to lease contracts that set the conditions for renting
property. In addition, sales contracts and service contracts are common legal
instruments used in commercial transactions. Peruvian legislation, based on the
Civil Code and other relevant regulations, establishes the legal requirements
and standards for the validity and execution of contracts. In addition, in certain
cases, such as the purchase and sale of real estate, it is necessary to register
contracts with SUNARP to ensure their effectiveness and enforceability against
third parties.

However, it is important to note that accurate and clear contract drafting is

essential to avoid future misunderstandings and conflicts. For this reason, it is
advisable to seek legal advice when drafting or signing a contract in Peru,
ensuring that it adequately reflects the intentions and agreements of the parties
involved.

DEVELOPMENT
Employment contract
An employment contract in Peru is a legal agreement between an employer and
an employee that sets out the terms and conditions of the employment
relationship. This contract aims to regulate the rights and obligations of both
parties, as well as employment-related aspects such as salary, working hours,
benefits, and responsibilities.

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Some key elements that should be included in an employment contract in Peru
are:

1. Identification of the parties: The full name and address of the employer and
employee must be specified.

2. Job description: The position or position that the employee will hold in the
company, as well as the roles and responsibilities associated with the position,
should be indicated.

3. Duration of the contract: It must be established whether the contract is for a

fixed or indefinite term. In the case of a fixed-term contract, the start and end
date of the contract must be indicated.

4. Remuneration: The salary or salary that the employee will receive must be
specified, as well as the frequency of payment. Additional benefits can also be
included, such as bonuses, commissions, health insurance, among others.

5. Working hours: Work hours and rest days must be established, in

accordance with the labor laws in force in Peru.

6. Vacations and leave: The conditions for taking vacations, sick leave,
maternity, paternity leave or other special situations contemplated by Peruvian
labor legislation must be indicated.

7. Confidentiality and non-competition: In some cases, a confidentiality clause

may be included to protect the company's sensitive information, as well as a
non-compete clause that prevents the employee from working for the
competition after their employment relationship ends.

8. Causes of termination: The conditions and causes for which the contract can
be terminated must be established, either by mutual agreement, resignation of
the employee or justified dismissal.

It is important to note that employment contracts in Peru are regulated by

Peruvian labor law, which establishes minimum rights for employees and
protection against situations of abuse or non-compliance by the employer. In

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addition, it is recommended that the employment contract be drafted in writing
and a copy is kept for both the employer and the employee.

Lease Agreement
A lease in Peru is a legal agreement between the owner of a property, known as a
landlord, and a person or company that wishes to use the property, known as a
tenant, in exchange for the payment of rent. This contract sets out the rights and
obligations of both parties during the lease period.
Below are the essential elements that must be included in a lease agreement in
Peru:
1. Identification of the parties: The full name and address of the landlord and
tenant must be specified.
2. Description of the property: The property to be leased must be precisely
detailed, including its location, characteristics and cadastral identification number,
if applicable.
3. Duration of the lease: The term of the lease must be established, either by
specifying a start and end date, or by indicating that it is of indefinite duration with
the possibility of terminating it by giving notice.
4. Amount of rent: The amount of rent that the tenant must pay periodically, as well
as the form and frequency of payment, must be established. Annual adjustments
or increments, if applicable, may also be mentioned.
5. Use of the property: The conditions of use of the property must be indicated,
specifying whether it is for housing, commerce or another purpose. In addition,
restrictions or limitations may be placed on the use of the same.
6. Obligations of the landlord: The responsibilities and obligations of the landlord
should be mentioned, such as the general maintenance of the property, the
payment of taxes and basic services.

7. Obligations of the tenant: The responsibilities and obligations of the tenant must
be specified, such as the care of the property, the timely payment of rent, respect
for the rules of coexistence and the basic maintenance of the property.
8. Deposit or guarantee: In some cases, a deposit or guarantee may be
established that the tenant must give to the landlord as a backup in case of
damage or breach.

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9. Additional clauses: Additional clauses can be included according to the
particular needs of the parties, such as the possibility of subleasing, automatic
renewal of the contract, among others.

Contract of sale
A contract of sale in Peru is a legal agreement between a seller, the owner of a
property, and a buyer interested in acquiring the property in exchange for an
agreed price. This contract sets out the terms and conditions of the transaction,
as well as the rights and obligations of both parties.

Below are the essential elements that must be included in a purchase and sale
contract in Peru:

1. Identification of the parties: The full name and address of the seller and buyer
must be specified.

2. Description of the property: The asset that will be the subject of the
transaction, such as real estate, a vehicle, a product, or any other type of
property, must be precisely detailed. It must include relevant information, such
as its description, characteristics, serial number (if applicable), among other
identifying details.

3. Sale price: The agreed price for the good being sold must be established. In
addition, the terms of payment must be specified, such as the form (cash, bank
transfer, check, etc.) and the timeframe for making the full payment.

4. Delivery Conditions: The conditions and place where the good will be
delivered to the buyer must be established. This may include the date of
delivery, the form of transportation, and any other details relevant to the transfer
of the good.

5. Obligations and responsibilities of the seller: The obligations and

responsibilities of the seller should be specified, such as delivering the good in
the agreed conditions, providing ownership documents, and ensuring that the
good has no liens or debts.

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6. Obligations and responsibilities of the buyer: The obligations and
responsibilities of the buyer must be indicated, such as making payment as
agreed, accepting the property in the condition in which it is, and assuming the
expenses associated with the transfer of ownership.

7. Warranties and conditions: Clauses may be included that establish special

warranties or conditions for sale, such as a performance warranty for a product,
or an indemnity clause in case of hidden defects.

8. Closing of the transaction: It should indicate how the closing of the

transaction will be carried out, such as the signing of the contract, the delivery
of documents, the registration of the transfer of ownership in the appropriate
records, among other necessary steps.

Contract for the provision of services

A contract for the provision of services is a legal agreement between a service
provider and a customer that sets out the terms and conditions under which the
provision of such services will be carried out.
1. Identification of the parties: The full name or company name and address of the
service provider and the customer must be specified.
2. Description of the services: The services that will be provided by the provider
must be precisely detailed. This may include a detailed description of the services,
deadlines or dates of execution, and any other relevant details.
3. Fees or compensation: The amount of fees or compensation that the client will
pay to the service provider for the provision of the same must be established.
Payment terms, such as payment method and billing terms, should also be
indicated.
4. Deadlines and Conditions: The terms and conditions under which the services
will be carried out must be specified. This may include start and end dates,
specific deliverables or milestones, and any other conditions relevant to the
provision of the services.
5. Intellectual property: If the services provided involve the creation of works or the
generation of intellectual property, clauses must be established that regulate the
ownership of the intellectual property rights resulting from the services provided.

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6. Confidentiality: Confidentiality clauses may be included to protect sensitive or
confidential information that the service provider may have access to during the
provision of services.

Partnership agreement
A partnership agreement is a legal agreement between two or more people who
decide to pool their efforts and resources to carry out a common economic activity,
with the aim of obtaining profits. This contract establishes the rules and conditions
under which the company is incorporated and regulates the relations between the
partners.
The following are the essential elements that must be included in a partnership
agreement:
1. Identification of the parties: The full name or company name of the partners who
will be part of the company must be specified.
2. Denomination or company name: The name or denomination under which the
company will operate, as well as its legal address, must be established.
3. Corporate purpose: The economic activity or business to be carried out by the
company must be precisely described. It is important to clearly define the scope of
the activities to be carried out.
4. Contributions from the partners: The contributions that each partner will make to
the company must be specified, whether in cash, movable or immovable property,
technical knowledge, experience, among others. The valuation of these
contributions must also be established.

5. Participation of the partners: The shares or quotas of each partner in the

company must be established, indicating the percentage or participation of each
one in the profits, losses and equity of the company.
6. Administration of the company: The rules for the administration of the company
should be established, such as the appointment of an administrator or a board of
directors, their powers and responsibilities, and the making of important decisions.
7. Distribution of profits and losses: The rules for the distribution of the profits
generated by the company among the partners must be established, as well as the
way to deal with losses if they occur.

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8. Duration of the partnership: The expected duration of the partnership must be
established, either for a fixed or indefinite term. In the event that a specific time
limit is set, it must be indicated how the termination of the partnership will proceed.
9. Causes of dissolution: The causes for which the company can be dissolved
early must be specified, such as the decision of the partners, the incapacity or
death of one of them, or the impossibility of fulfilling the corporate purpose.
10. Dispute Resolution: Clauses for the resolution of disputes between partners
may be included, such as the appointment of an arbitrator or submission to the
jurisdiction of a specific court.

CONCLUSION
In conclusion, contracts in Peru are fundamental legal instruments that establish
the rights and obligations of the parties involved in a transaction. Whether it is a
contract of sale, a contract for the provision of services or any other type of
contract, it is crucial that it complies with legal provisions and clearly and
accurately reflects the agreements reached between the parties. Seeking legal
advice when drafting, signing, or interpreting a contract in Peru is advisable to
ensure that the rights and interests of all parties are protected and potential
conflicts or breaches are avoided. Contracts are powerful tools for establishing
secure and transparent business relationships under Peruvian law

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REFERENCES

Adams, A., & Rohani, F. (2019). The Law of Contract in Peru. Kluwer Law
International.
https://blogs.usil.edu.pe/facultad-ciencias-empresariales/ciencias-
empresariales/formas-de-contratacion-de-personal-de-una-empresa

Chavez, D. (2012). Civil and Commercial Contracts in Peru (2nd edition). Legal
Gazette. https://www.geovictoria.com/es-pe/blog/recursos-humanos/tipos-de-
contrato/

Núñez Sánchez, G. (2018). Contracts in the Peruvian Civil Code. In C. Sánchez

Velarde, & C. Rojas Vargas (Eds.), Treatise on Civil Law, Volume XIII:
Contracts (pp. 331-592). Legal Gazette. https://www2.trabajo.gob.pe/guia-de-
tramites/modelos-y-formatos/

Rivera, J. (2016). Contract Law (2nd edition). Editorial Fund of the Pontificia
Universidad Católica del Perú. https://www.pandape.com/blog/contratos-
laborales-en-el-peru/

Vargas Valdivia, V. (2015). Contracts (3rd edition). Palestra Editores.

https://www.grade.org.pe/wp-content/uploads/GRADE_di98.pdf