Does a Contract Have to Be Notarized in Mongolia?
Is a signature from each party enough to make a contract binding, or does it have to be notarized? The question trips up individuals and business owners alike. Some assume that a contract that has not been notarized is invalid. In fact, not every contract needs notarization. It depends on the type of contract and on what the law requires.[1]
Where the law does require notarization, however, a contract that is not notarized risks being invalid.[2] It is therefore important to confirm whether notarization is required before you sign. The Law on Notary of Mongolia makes notarization mandatory for the following contracts and transactions:
Transactions transferring immovable property to another person;
Contracts concerning spouses’ property rights;
Transactions creating sole ownership rights over an apartment;
Contracts transferring all or part of one’s existing property into another person’s ownership, or granting limited possession or use of it (usufruct);
Support agreements;
Assignment agreements;
Contracts transferring shares or other securities into another person’s ownership, and other contracts specified by law.[3]
Where the law does not make notarization mandatory, the parties may still have a lawful contract or transaction notarized at their request.[4] Doing so helps confirm the terms and agreed points of the contract. It also helps verify that each party understands the contract’s content and the rights and obligations arising from it.
Even so, notarization does not guarantee that the contract will be performed or that no dispute will arise. A contract’s validity, and the parties’ rights and obligations under it, also depend on its content and on whether it complies with the law. Before entering into a contract, check whether it must be notarized. We also recommend setting out the terms, payment arrangements, and each party’s rights, obligations, and liabilities clearly.
Sources:
[1] Civil Code (2002), Article 42.4
[2] Civil Code (2002), Article 56.1
[3] Law on Notaries (2011), Article 46.1
[4] Law on Notaries (2011), Article 46.1
Disclaimer: This article is intended for general informational purposes only and have been prepared in accordance with the laws in effect at the time of writing. For legal advice, please consult a professional attorney.
