Adoption of the euro will have an impact on all contracts (employment contracts, commercial lease contracts and credit agreements and insurance policies) that include amounts in kroons.
Principle of continuity
Adoption of the euro will not have an impact on the continuity of contracts and other legal documents. The introduction of the euro does not have the effect of changing the terms and conditions of any legal instruments or exempt anyone from the fulfilment of the obligations undertaken; neither does it grant a party the right to unilaterally modify or terminate a valid document.
• Any monetary values in contracts entered into in kroons will be converted to euros based on the official exchange rate.
• The contracts entered into with partners outside the monetary union should preferably include a clause regarding the use of the euro. If a contract term will be valid after the date of adoption of the euro, a provision could be made, e.g., through a euro clause, that euro will be a binding monetary unit.
An example of the euro clause
The parties agree that all payment obligations prescribed under the contract will be determined in euros immediately after the euro becomes the single legal tender in Estonia. Conversion will be based on the officially fixed exchange rate.
The principle of contractual continuity will also be applied to employment contracts. As with other contracts, salaries and wages and sums insured will be converted to the new currency.