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At the end of 2017, Montenegro undertook actions for drafting new civil codification. One of the dilemmas presented before the creators of the civil code is whether and to what extent autonomous agreements of business law are to be regulated. For the last two decades in Montenegro, there has been an increasing use of number of agreements in the economy which are regarded as autonomous creation of business practice. Due to its significance, the factoring contract is particularly important. Factoring contract does not have a long history of existence, nor legal regulation in the Montenegrin law. By 2017, factoring contract was an innominate contract of commercial law, which was subject to the general rules of the Law on Obligations and imperative norms of other legal areas. However, absence of legal regulation and presence of this contract in business practice have created the need to strengthen the legal certainty of all participants in this legal transaction, so it has been regulated by the provisions of a special law. The aim of this paper is to analyze factoring contract the concept, essential elements and the content, and to provide answers to identified issues at stake, especially in the light of the work on the drafting the future Civil Code in Montenegro.

FACTORING CONTRACT IN THE LIGHT OF DRAFTING THE MONTENEGRIN CIVIL CODE