ABACO contributes to legal structuring of marina operations in Montenegro
September 10, 2025.
ABACO contributes to legal structuring of marina operations in Montenegro
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As part of its passionate commitment to maritime law and improving the related regulatory framework in Montenegro, ABACO Ltd is proud to announce its recent engagement by AD Marina Bar (JSC “MARINA-BAR”) and the Port of Budva, operated by the Public Enterprise for Coastal Zone Management of Montenegro, for the drafting of the General Terms and Conditions of Business and the Rules on Maintaining Order applicable to the aforementioned marinas.
Legal Framework and Contractual Structure
The General Terms and Conditions of Business establish the mutual rights and obligations between the marina and its service users. These terms form an integral part of each individual Berth Licence Agreement and are applied in conjunction with the Rules on Maintaining Order in the marina, thereby ensuring a coherent and enforceable contractual regime.
Both entities have adopted a legal model based on adhesion contracts, whereby one party unilaterally determines the essential elements of the agreement through a general and continuous offer, and the other party accepts said offer by accession. This approach is consistent with Article 136 of the Law on Obligations, while Article 137 provides that such general terms supplement the specific provisions agreed between the parties and are, as a rule, equally binding. These terms are enforceable provided they were known or ought to have been known to the contracting party at the time of conclusion and are therefore subject to mandatory publication.
Regulatory Gap and Legal Innovation
It is noteworthy that berth agreements are not explicitly regulated under Montenegrin legislation. The need to regulate berth agreements has been explicitly recognized in the Strategy for Development of Maritime Economy for the period 2020-2030.
Accordingly, the General Terms and Conditions of Business, together with the Berth Licence Agreement, serve to comprehensively govern all future contractual relations between the marinas and their users. This legal structuring aims to preempt disputes by clearly and precisely regulating the right to berth usage, in full compliance with applicable law and prevailing legal standards.
The applicable legal framework is multifaceted, encompassing provisions of mandatory contractual law under the Law on Obligations, as well as elements of various contract types—such as deposit, lease, services, mandate, and consumer protection—which are reflected in the Berth Licence Agreement.
Of particular importance is the exclusion of Chapters XXI and XXII of the Law on Obligations (“Official Gazette of Montenegro”, Nos. 047/08, 004/11, 022/17), which pertain to contracts of deposit and warehousing. This exclusion is designed to prevent legal uncertainty and mitigate the risk of litigation, especially in light of previous damage claims brought by berth users before Montenegrin courts against other marinas. Instead, the contractual obligations are framed around the Service Provider’s duty of care, requiring compliance with national legislation, proper maintenance of marina infrastructure, and the exercise of due diligence in providing technically and nautically sound berths.
The Service Provider is further obligated to designate and maintain a suitable berth for the vessel; grant access to aquatic areas, infrastructure, and port equipment; monitor the vessel and safeguard its keys, if entrusted; conduct routine external inspections to assess the vessel’s condition and mooring integrity.
Principles of Fairness and Legislative Alignment
The adopted conditions reflect the statutory principles of good faith and fair dealing, as enshrined in Article 138 of the Law on Obligations, which invalidates any provisions that contravene the purpose of the contract or established commercial practices. Courts may refuse to apply terms that are unfair, excessively burdensome, or deprive the other party of essential rights. Accordingly, the General Terms and Conditions are designed to preserve the rights of berth users and reduce the likelihood of disputes.
This engagement reflects ABACO’s broader mission to support the harmonization of commercial practice with national legislation, and to contribute to the development of legal instruments that enhance transparency, predictability, and operational integrity in Montenegro’s maritime sector.