Contracts

Question 1

Concept of Contracts

Answer 1

Agreement of the parties to be bound by the birth of a mandatory legal relationship.

• • freedom to make contacts with whatever content as long as it aligns with mandatory law.
• • agreement must be validly done by the Contracting parties on a subject and consideration.

Question 2

Types of contracts (11)

Answer 2

1) Unilateral
2) Bilateral contract
3) Free contract
4) Onerous contract
5) Main Contract
6) Accessory contract (warranty)
7) Real contract
8) Solemn Contract
9) Consensus contract
10) Commutative Contract
11) Aleatory Contract

Question 3

Essential Requirements of Contracts (3)

Answer 3

Consent

The subject matter

Consideration

Question 4

Consent

Answer 4

• • can be given in any form, including orally.
• • valid consent cannot be given by minors or incapable citizens.
• • consent given upon the occurrence of mistake, fraud, violence or intimidation is not valid.

Question 5

The subject matter

Answer 5

The contractual obligations of the parties.

• — Lawful: things within the commerce of men and services that are aligned to the moral and legal standards.
• — Possible at the time of the contract
• — Forbiden subsequent impossibility
• — Specific: at least in terms of things belonging to a type of good.

Question 6

Consideration

Answer 6

• As the real intention of the parties to the contract to accept obligations that bind them (nonexistent contract).
• When the parties externalise the will to make a contract of a certain type, but in fact the agreement between them is to make another type of contract (validity of the undercover contract).
• If this aim is illegal: contract is null

Question 7

Effectiveness of contracts

Answer 7

Obligations arising from contracts bind the parties as if they were a law regardless of whether the content of the contract is fair or unfair.

Parties shall bear the risk of an unforeseen change in circumstances and stipulate them in contract clauses. for specific measures to be taken.

Very exceptionally, in long-term contracts, courts have accepted the possibility of changing the terms of a contract due to an unforeseeable change of circumstances.

Question 8

Contract Ineffectiveness

Answer 8

When face with the ineffectiveness of a contract, obligation of the parties to mutually restore what they have received.

Question 9

Nullity

Answer 9

• • Contracts or clauses in contracts are VOID when are contrary to a mandatory law.
• • Contracts that have an impossible, illicit or undetermined subject.
• • Contracts in which there has been absolute simulation.

The judge will declare it null so the contract cannot be confirmed by the parties.

Question 10

Voidability

Answer 10

One of the two parties has the power to annul it, before the proscription deadline (4 years) elapses. After it, the contract is perfectly valid and produces all its effects.

The party who owns the right to cancel it may uphold the contract.

The cases of voidability are set out in Art 1301 CC, being mainly lack of consent and contracts made by minors or the disabled.