Contracts Overview - Article 1305

An agreement where one party agrees to do something for another.

Contracts with specific legal names.

Contracts without specific legal names.

Contracts with obligations for only one party.

Contracts creating mutual obligations for both parties.

Contracts dependent on another contract for existence and validity.

A person whom a contract benefits but not a party to the agreement.

Acting to persuade another to break a contract.

A contract that stands alone, not dependent on another contract for validity. It's the foundation for other related contracts.

A contract where each part is essential for satisfactory completion. All parts must be performed for the contract to be fulfilled.

A contract where parts can be performed independently. Each part can be completed separately without affecting others.

A contract violates fundamental legal requirements. It goes against established laws, rules, and regulations.

Practices and standards generally accepted as morally and ethically correct within a community or industry.

Protecting public safety and welfare. Contracts that endanger society or violate public order are invalid.

A contract formed simply by the agreement of the parties. No special formalities or actions are required.

An offer becomes void if the offerer dies, is declared insane, becomes insolvent, or is put under civil interdiction before the offer is accepted.

A false understanding of a fact or situation that is important to the contract, potentially making it invalid.

A contract where one party pays a fee to have the option to buy or sell something at a certain price within a specified time.

The time frame during which the person with the option contract can exercise their rights.

The payment made for the option contract, a benefit received for the right to decide later.

These errors don't automatically make a contract invalid:

If one party cannot read or doesn't understand the language of the contract, proving the contents were explained is crucial to enforce it.

Normal sales hype is not usually considered fraud if the other party could check the facts.

An error in understanding a legal provision, its meaning, or its effect on an agreement. It occurs when parties misunderstand the law, leading to a wrong assessment of the agreement's legal implications.

Ignorance of the law does not excuse anyone from complying with it. Even if a party mistakenly believes a law is different, they are still bound by its provisions.

When a party is forced into an agreement by the use of serious or irresistible physical force. This type of coercion makes the contract voidable.

When a party enters into an agreement due to a well-founded fear of harm to themselves or their loved ones. This fear must be imminent and serious, making the agreement voidable.

A third party's misleading statements do not invalidate a contract unless they cause a substantial and mutual misunderstanding amongst the parties.

A misleading statement made without intent to deceive. While not fraudulent, it can still lead to an error in the contract.

Fraudulent action that directly influences a party's decision to enter an agreement. It constitutes a valid reason to annul the contract and can also lead to damages.

To be considered causal fraud, the misrepresentation must be serious and not known to both parties. Furthermore, it must play a significant role in the decision to enter the contract.

A contract that's valid as long as it has all the necessary elements, regardless of its form. Think of it as a handshake agreement - no fancy paperwork needed.

A contract that requires specific formalities, like a legal document or special procedures, for it to be valid.

A contract where both parties promise something to the other in exchange for something. It's a 'you scratch my back, I'll scratch yours' situation.

A contract where someone is paid for a service or benefit that's already been done. Like rewarding someone for their past work.

A contract where one party gives something to another for free. No exchange of benefits or promises.

The personal reasons why someone enters into a contract. They're not legally binding but they can help understand the intentions.

If the words of a contract are clear and unambiguous, their plain meaning is what matters.

If the words in a contract seem to contradict the parties' clear intentions, their intentions will be prioritized.

The subject matter of a contract - the thing, service, or right that is being exchanged or promised.

A form of fraud where one party deliberately hides important facts from the other party, leading them to make a decision they wouldn't have otherwise made.

Contracts involving future inheritance are generally prohibited, except when specifically permitted by law.

Contracts involving things that may exist or happen in the future are allowed if those things have the potential to come into existence.

Contracts involving impossible things or services cannot be valid. The object must be possible to perform.

Contracts with a false purpose stated (but a real one exists) are void if the real purpose is not also true and lawful.

A contract without any valid consideration or reason for its existence is void.

Inadequacy of cause (unequal value) is usually not grounds for voiding a contract, while absence of cause (no reason at all) is.

A contract that is formed by the simple agreement of the parties. No special formalities are required.

Contracts that are perfected by the delivery of the subject matter. This means the contract is only complete when the item is physically given.

Contracts that require specific formalities prescribed by law for their validity. They need special procedures or documentation.

Meets all legal requirements and limitations for the type of agreement involved, making it legally binding and enforceable.

Contracts without specific legal names. They're classified based on the obligations involved, like "I give so that you give" or "I do so that you do."

A contract binds not only the contracting parties, but also their assigns (those who inherit the obligations) and heirs (those who inherit the rights).

A contract entered into in the name of another person without their authorization or legal representation. It's unenforceable unless ratified.

Unauthorized contracts can be cured and become enforceable by ratification, which can be done expressly (written) or impliedly (through actions).

The reason or justification for entering into a contract. It's the underlying motive or benefit motivating the agreement.

When the words in a contract are clear and unambiguous, their plain meaning is taken as the intended meaning.

Three crucial things required for a valid contract: consent (agreement between parties), object (what's being exchanged), and cause (the reason for the contract).

Ads for products or services are usually not considered definite offers to sell, just invitations to make an offer. You can't accept a product based solely on an ad.

Minors under 18 (unless emancipated), insane individuals, and deaf-mutes who can't write are incapable of giving valid consent in contract formation.

Consent is shown through the agreement of an offer and acceptance of that offer regarding the subject matter and the reason for the contract.

These are elements assumed to be present in a contract, even if not explicitly stated. They help in forming and understanding a contract, like trust or good faith.

Extra details, terms, or conditions that aren't essential to the contract, but can change its specific nature.

If a person with mental issues makes a contract during a period of clear thinking, that contract is valid.

An offer becomes void if the offerer dies, is declared insane, becomes insolvent, or is put under civil interdiction before the offer is accepted. In simpler terms, if the person making the offer is no longer capable of fulfilling their obligations, the offer is legally canceled.

A mistake in a contract is a false understanding of a fact or situation that is important to the agreement. If someone signs a contract thinking they're buying a horse but it's actually a donkey, that's a mistake.

Not all mistakes are serious enough to nullify a contract. Mistakes regarding the quality of an item, the quantity, or the motives behind signing are usually not reasons to break the agreement.

If a party can't read or doesn't understand the language of the contract, the person enforcing it needs to prove that the terms were fully explained. This protects those who are disadvantaged.

Normal sales hype is not usually considered fraud if the other party could verify the facts. In simple terms, if you can check for yourself, exaggerated claims don't necessarily make a contract invalid.

Option money is the payment made for the right to buy or sell something at a fixed price within a certain time period. It's like paying a deposit to secure your choice.

The option period is the time frame someone has to exercise their right to buy or sell something. It's the window of opportunity.

Yes, provided the future thing has the potential to exist or happen. Contracts involving future possibilities are allowed.

No. Contracts involving things or services that are impossible are not allowed.

Inadequacy means the value of the contract is unequal. Absence means there's no valid reason for the contract at all.

When a contract states a fake reason, but a real reason exists. The contract is void if the real reason isn't also true and legal.

Deliberately hiding important facts from the other party to influence their decision. This is a form of fraudulent behavior.

Generally no. Contracts involving future inheritance are usually prohibited, unless specifically allowed by law.

A contract is void when it lacks essential elements, is against the law, or has a major flaw rendering it unenforceable.