Commercial transactions, such as an agreement between two commercial entities, are a problem without a proper law in place. Such problems are expected to be solved once the Contract Bill is endorsed. The Bill was introduced and deliberated in the National Assembly today.
Bhutan first started drafting the contract law in 2004 upon the request of the Construction Association of Bhutan. The Association had requested for a law that would facilitate their business and promote their interest.
Introducing the Contract Bill of Bhutan 2012, the Minister of Works and Human Settlements, Yeshey Zimba, said the law would be comprehensive and form the basis for all commercial transactions. He said the Act will provide a framework of rules and regulations. The Act codifies the way to enter into contract, execution of the contract, implementation and will also implement breach of the contract.
“Even the agencies who are involved in the business transaction will be included in this Act, so if in case there is some problem they can hold on to this act and do accordingly. Today most of the business transactions are in place with agencies put in place. So this Act will help solve all problems between the parties,” he added.
The members of parliament also supported the Bill. They said the bill is timely and important. “Many counties around the world have laws in place for business transactions. So with this law in place the foreign investors will also be interested to invest. This can give them safety and security,” said Ugyen Wangdi, Dremitse-Ngatshang MP
The Bill was also discussed in the National Council in the earlier session. The National Assembly will do the third reading tomorrow.
