A legal act serves as the primary document establishing a binding legal relationship between a grant provider and the beneficiary. Its main purpose is to explicitly set out the terms under which financial support is granted. Depending on the specific requirements of a given grant program, it can take various forms—most frequently a grant decision, an agreement, or a contract.

This document is legally binding for both involved parties. Non-compliance or failure to adhere to its rules can lead to severe consequences, including the cancellation of the grant or the obligation to return funds that have already been paid out.

A legal act typically defines:

• The precise amount of funding and the intended purpose of the grant,
• Project execution deadlines and timelines,
• Conditions for drawing financial resources,
• The recipient's obligations during project implementation and the sustainability period,
• Audit guidelines, monitoring rules, and penalties for breach of terms.

Types of Legal Acts

Grant Award Decision

This is a unilateral legal act through which the managing authority officially grants financial support to the recipient while unilaterally setting the binding terms for its utilization.

Grant Agreement

This document represents a bilateral legal act concluded based on mutual agreement between the provider and the beneficiary. It comprehensively governs the provision and drawing of grant funds, detailing the specific rights and obligations of both sides.

Amendment Legal Act

A supplementary document implemented when the terms of an already issued legal act need to be altered or extended. It is most commonly used for adjusting deadlines, modifying project budgets, or rescheduling project timelines.

An amendment legal act can take the form of:

• An addendum to the legal act (e.g., an amendment to a contract),
• A decision on modification.