Unit 5 - Law of Contract.docx

Contract

A legal act by which one or more persons undertake to perform a service for one or more others.

Civil Code

A collection of laws that governs legal relationships arising from agreements between parties.

Agreement of Wills

An understanding between two or more parties with a view to creating, modifying, or terminating legal obligations.

Offer and Acceptance

The essential elements of a contract where one party proposes terms and the other agrees.

Express Contract

A contract in which the terms are clearly stated, either verbally or in writing.

Tacit Contract

A contract formed through actions or behaviors rather than explicit words.

Solemn Contract

A contract that requires specific formalities, such as a notarial deed for certain agreements.

Consensual Contract

A contract that is valid upon mere exchange of consents without formalities.

Principle of Contractual Freedom

The right of parties to negotiate and conclude contracts according to their interests.

Synallagmatic Obligation

A reciprocal commitment between parties where each obligation is contingent on the other.

Binding Force

Once formed, contracts legally obligate parties to fulfill their commitments.

Good Faith

The principle requiring parties to act honestly and fairly in contractual dealings.

Adhesion Contract

A type of contract where one party imposes terms on another who has limited negotiation power.

Civil Liability

The obligation to compensate for damage resulting from non-performance or poor performance of a contract.

Unilateral Contract

A contract that creates obligations for only one party.

Instantaneous Execution

Contracts executed immediately upon agreement.

Abusive Clause

A contract term that is unfair or contrary to public policy, potentially leading to nullity.

Nullity

The legal state of a contract being void or unenforceable due to defects or illegal elements.

Defects of Consent

Conditions such as error, fraud, or violence that can lead to the annulment of a contract.

Capacity to Contract

The ability of parties to enter into legally binding contracts.

Lawful Cause

The legitimate reason or motive behind entering into a contract.

Absolute Nullity

A form of nullity that protects public order and morals with immediate effects.

Relative Nullity

A form of nullity that protects individual interests and allows for specific legal actions.