Understanding Contract Law Basics
Understanding Contract Law Basics
Concept. The contract is the legal act through which two or more parties express their consent to
create, regulate, modify, transfer or extinguish property legal relations. And it must be socially just and
useful.
The contract differs from the convention and the legal convention. The former refers to the agreement of
wills regarding relationships outside the field of law. The second, on the other hand, refers to any agreement of
wills of a non-patrimonial nature, but that enjoys legal coercion. And finally, the contract is a
agreement of wills aimed at regulating property rights.
The legal nature of the contract is the legal act, which is the voluntary lawful act that has an immediate purpose.
the acquisition, modification or extinction of legal relationships or situations. The legal act is the genus and the
species contract. And it has the following specific characteristics: It is bilateral, meaning it requires the
consent of 2 or more parties; it is an act between living persons and has a patrimonial nature.
One of the two foundations of the contract is the autonomy of will: it is the power that will has to give itself.
its own law, that is, to self-determine and take responsibility for fulfilling obligations that
assume. It is linked to the binding force, which is the other foundation; as long as what is sought is that the contract
freely agreed binds the parties.
Article 958: Freedom to Contract. The parties are free to enter into a contract and determine its
content within the limits imposed by law, public order, morals, and good customs.
- Article 959: Binding effect. Every validly concluded contract is binding on the parties. Its
content can only be modified or extinguished by agreement of the parties or in the cases provided by law
prevent
The effects of the contract fall upon the parties or successors. The parties are those subjects who by themselves or by
representative, or through a broker or agent without representation, have obligated themselves to fulfill certain
benefits and have acquired certain rights.
They are property legal relationships because of the obligations that arise from it in one of the parties,
rights are born in the head of the other, which are part of the assets of the involved persons. For
Finally, the object of the contract must have economic valuation.
Contracts must be socially useful, that is to say, they must be an instrument for the achievement of the common good,
therefore they must not transgress the limits of morality, public order, and customs. And it must be fair in the
meaning that there must be a balance between the parties and they are only bound to what they reasonably had
expectations of fulfillment. Will is not irrevocable when there is imbalance.
Economic function: it is the main vehicle of economic relations. The circulation of wealth and the
The exchange of goods and services is primarily conducted through contracts.
Social function: it not only serves to satisfy individual needs, but is also a means of
cooperation or collaboration among men. It is related to the principle of good faith.
Historical evolution.
In Roman law, will never played an important role, as compliance was indispensable.
legal forms. Mere will was not enough to create obligations if it did not receive the support of the law. If it did not
he observed the formalities of the law, the contract lacked binding force and only generated an obligation
natural.
In post-classical and Justinian law, whenever one of the parties had delivered the thing or fulfilled the
the agreed performance and proved compliance with the performance also had binding force of that contract,
by the principle of equity that protects certain legitimate interests.
In the Middle Ages, when the Church had a huge influence, the moralization of the contract occurs, which is reflected
in the duty to keep one's word (not to lie).
In the 19th century with the French Revolution, man was conceived as free, equal, and fraternal. The ideal
it was for them to regulate their reciprocal relations. Any intervention by the State, other than to safeguard
public order appeared harmful. This meant a limitation on the power of the State and the full recognition of the
autonomy of will. There was trust in the free play of individual freedom. The contract is binding.
because he is loved.
However, social experience has made it clear that it is not possible to leave certain contracts to chance.
free play of the will of the parties without disturbing peaceful social coexistence. The system must intervene
when contractual relations are unbalanced.
The state's intervention in contracts occurs through the enactment of laws or decrees that impact them.
or with the intervention of judges in cases brought to the courts.
Classification of contracts.
Unilateral and bilateral contracts. Unilateral contracts are those in which only one of the parties
it is obliged towards the other, without the latter being obliged. They are bilateral when both parties are obliged
reciprocally to each other.
Reciprocity in bilateral agreements refers to the fact that both benefits must be of equal value, that is,
that both constitute two main obligations within the contract.
Difference in the consequences:
In bilateral contracts, as many copies must be drafted as there are parties with an interest.
distinct (double copy). This requirement is not demanded in unilateral contracts, as it was enough that
the creditor party had the contract.
2. The principle that no one can demand from another the fulfillment of their contractual obligations
failing to fulfill its obligations is not applicable in unilateral contracts, since one party owes nothing and has
right to demand from the other party compliance without being able to oppose that principle because nothing is owed.
But it can be applied to bilateral agreements, because both parties are obligated.
3. The resolutory clause, that is, the termination of the contract due to breach of the
obligations incurred by the other party, it only works in bilateral contracts, except in the
express, since it can be included in unilateral contracts if the parties so wish.
Multilateral contracts: These are contracts concluded by more than two parties. The obligations are not
correlatives for the parts, but rather each acquires rights and obligations with respect to all the others. A
Similarly, the obligations of the parties can have different objects that converge on a common goal; it admits the
the entry of new parties or the withdrawal of any of them and the non-compliance of one of the parties does not result in
Inexorably, the resolution of the contract does not allow the defense of non-fulfillment.
The rules of bilateral contracts shall apply supplementary.
Costly and free contracts. Contracts are onerous when the benefits they provide to one of the parties...
parts the sound granted by a service that she has made or is obliged to make to the other. And they are free of charge
when one or the other of the contracting parties is assured some advantage independent of any service owed.
In onerous agreements, both parties face and obtain sacrifices and advantages. In gratuitous ones, only one of the parties
one faces a sacrifice, while the other receives an advantage.
Difference in consequences:
Acquirers for valuable consideration are better protected by law than acquirers by title.
free: a) The action of reclamation has greater demands when directed against someone who acquired
the thing for valuable consideration, b) the action for revocation does not require evidence of knowledge of the fraud when
the third party acquired the thing for free (it is presumed); but it is essential if it was acquired for a title
onerous, c) The action for reduction proceeds against the alienations made by the deceased in the title
free, but not against onerous ones, d) the guarantee of eviction and against redhibitory vices only
proceed with the burdensome ones.
2. The action of collation (advancement of inheritance) only applies to gratuitous acts.
3. The application of the injury is not conceived in the free ones.
4. The ambiguous clauses in onerous contracts must be interpreted in a way that produces an adjustment.
equitable to the interests of the parties; in the gratuitous ones, in the sense most favorable to the debtor.
Commutative and aleatory contracts. They are a sub-species of onerous contracts.
They are commutative when the mutual obligations are determined in a precise manner;
these counter-performances are considered equivalent from an economic standpoint. Hence the qualification of
commutative with which it is intended to express that the parties exchange or commutate analogous values.
Contracts are random in which the advantages or losses for at least one of the parties depend on
an uncertain event.
Differences in the consequences: Only the commutative ones are subject to resolution or reduction of the
excessive benefits due to injury. In the random cases, the parties deliberately assume the risk of
that the contract may turn out to be disadvantageous, speculating on the opposite possibility; no one can complain, for
so, from the lack of economic balance between the counterperformances that ultimately result. By exception,
the application of the injury in the randoms can be accepted, when the difference in the counter-performance is
of such a character that not even chance itself could justify it.
Neither is the theory of unforeseen circumstances applicable in principle to random events when the imbalance has
result of the normal alea of the contract. An exception is allowed if the performance becomes excessively burdensome
due to causes strange to its own chance.
Formal and informal contracts. Informal contracts are those whose validity does not depend on compliance with
a form established by law; the agreement of wills is sufficient, whatever its expression (written, verbal,
tacit.
And they are formal, the contracts whose validity depends on the observance of the form established by law. Within
from this category there is a distinction: the contracts whose form is required for evidentiary purposes and those
in which formality has constitutive or solemn character. Solemn forms, in turn, are divided into
absolute, when the failure to comply with the form results in the nullity of the act, and relative, when the
non-compliance does not lead to nullity but will allow for the enforcement of the established forms by
the law. When it comes to a form of evidence, it only has importance for the purposes of proving the act
legal.
Named and unnamed contracts. Named contracts are those that are anticipated and regulated.
especially in the law. Its legal regulation, except for exceptional provisions, only has supplementary character;
this applies in case of silence in the contract, but the parties are free to dispense with the solution
legally and regularly in a different way the relationships. Therefore, the purpose of the legislator is not to replace the
will of the parties by that of the law; simply wishes to avoid conflicts in the event that the parties do not
they have anticipated a certain event.
Unnamed contracts are not legislated and result from the free creation of the parties. They do not lose their
character of unnamed ones due to the circumstance that in business life they are called in some way.
Interest of the distinction: In Roman law, this classification was of enormous importance, because only the
named contracts had binding force; this does not happen in our days, as unnamed contracts
they obligate the same as the nominees. The importance of the distinction today lies in the fact that if the agreement made
between the parties constitutes one of the varieties provided for in the law, the set of rules that can be applied to it
regulating; insofar as there are no supplementary laws for atypical contracts.
Union of contracts: There is a combination of several complete contracts.
1) External union. It consists of two perfectly separate contracts only linked by the instrument of
celebration; such as, for example, if in the same act two people celebrate two contracts, one for sale, another
of location.
2) Union with unilateral or bilateral dependence. The contracts are different but united in intent.
parts, in such a way that one is not desired without the other; for example, a car is bought and the seller
commits to repairing it, with a compensation set in the contract, for a term of one year. They are located
united a sale and a work location. The dependency will be unilateral if it only concerns one of the
parts, and bilateral if it interests both.
3) Alternative union. It is agreed to celebrate two contracts in an alternative manner, so that once fulfilled
certain condition, only one of them remains in effect. Example: a diplomat buys a car with the
condition that if it is changed to a different destination within a period of less than three months, the purchase is converted into
location.
Mixed contracts: There is a combination of contractual elements.
1) Combined or twin contracts. One of the parties undertakes different performances (which correspond to each
one of them to a different typical contract) in exchange for a unitary performance. For example: it is promised to sell
one thing and provide a service in exchange for a single price in money.
2) Mixed contracts in the strict sense. They are those that contain an element that at the same time represents a contract.
of another kind. Example: a service provision contract, which at the same time implies a partnership. In truth
in this case the interpreter's task is to clarify the true nature of the contract above
language used by the parties and apply the corresponding legal regime.
3) Double-type contracts. These are contracts that can fit into both types of contracts.
nominated as within another. This situation usually occurs in that gray area where different contracts
they are often placed and confused.
4) Typical contracts with subordinate benefits of another kind. This is a named contract, to which the
parts have added ancillary obligations that do not correspond to that type. The classic example is the contract of
location of an apartment, in which the owner is responsible for providing heating, hot water, service
of entry, etc. These ancillary benefits do not obscure the typicality of the main contract, to which they must
apply the applicable legal rules to said contract.
Rules that must be applied to unnamed contracts: Article 970 states that they must be governed as follows
order: (i) the will of the parties; (ii) the general rules on contracts and obligations; (iii) the usages and
practices of the place of celebration; and (iv) the provisions related to the named contracts related
that are compatible and suitable for their purpose. Consequently, the silence of the contract must be filled by
the judges, referring to the general rules of contracts and obligations, then taking into account the customs
and practices of the place of celebration and, finally, if necessary, to the rules of the named contracts
that are related and suitable for the economic or practical purpose pursued by the contract.
Consensual and real contracts. Consensual contracts are those that are concluded by mere agreement.
consent, whether formal or not. Those that are concluded only with the delivery of the thing are real.
what the contract is about. According to the previously expressed concept, real contracts require as
condition of its existence is the delivery of the thing. The mere agreement of wills is ineffective to bind the
parts. But this category seems to lack meaning in modern law, where the principle prevails.
autonomy of will; the agreement of wills expressed in the manner prescribed by law is sufficient for the
contract has binding force.
The CCyC has removed this classification. However, a couple of notes should be made:
The first, which has inadvertently established a supposed real contract. Indeed, when regulating the
real right of pledge, it is established that it is constituted by contract, formalized in a public instrument or
private and tradition to the secured creditor or to a third party designated by the parties. As can be seen, a contract is required.
and delivery of the thing, as a constitutive element, which is inherent to the real contract.
The second, that some particular assumptions should have been considered. This is the case of the loan for use contract or
loan for use, which is always free. Such gratuity should be taken into account to authorize the lender to
refusing to deliver the thing, without it being able to legitimize the other party to demand its delivery or to claim one
compensation for damages. This was foreseen by the Vélez Civil Code. The Civil and Commercial Code does not foresee a
a similar norm; on the contrary, imposes on the lender the obligation to deliver the thing at the time and place
welcome, without any exception.
Contracts for immediate, deferred, successive, or periodic compliance.
Regarding the moment of fulfillment, contracts can be classified:
a) Immediate execution: when the parties fulfill all their rights and obligations in the
moment of the contract.
b) Deferred execution: the parties postpone the fulfillment of their obligations to a moment or
several subsequent moments.
c) Instant execution: the parties fulfill their obligations at a single moment, this moment being
it may be at the time of the contract celebration or after it. They are extinguished upon the fulfillment of a
one-time benefit.
d) Of continued or periodic execution or of successive acts: the relationships between the parties unfold
over a more or less prolonged period. That is to say, the effects of the contract extend during
a period that is stipulated according to a deadline, resolutory condition, or the will of the parties.
CATEGORY OF CONTRACTS.
Parity contracts: It involves deliberation and discussion of its clauses, made by individuals who enjoy
full freedom to consent or dissent.
Adhesion contracts: It is one through which one of the contracting parties adheres to general clauses.
unilaterally predisposed, by the other party or by a third party, without the adherent having participated in their
writing.
Consumer contracts.
Consumer relationship: It is the legal bond between the provider and the consumer or user. This bond is
generated by law or contract.
Cataloging and defining consumer relationships arises from the protective and regulatory purpose of the law.
of consumption.
The protectorate arises from the protective role of consumers, which is pursued through the imposition of a series of measures.
of non-waivable obligations for suppliers, restriction of the consumer's capacity for certain acts
and the creation of presumptions and legal imperatives.
And the regular role is linked to the economy, as it relates to the way the state decides to intervene in the
Consumption relationships bring direct consequences in the market.
Article 42 protects consumers in the context of consumer relations, so that the right to
Consumers have a constitutional foundation.
Consumer contract: The one entered into between a consumer or end user and a natural or legal person who
act professionally or occasionally with a producer of goods or service providers, public
or private, aimed at the acquisition, use, or enjoyment of goods or services by the
consumers or users for their private, family, or social use.
One of the parties is considered a consumer and the other a provider.
Consumer: It is the natural or legal person who acquires or uses goods for free or for a price.
services as the final recipient for their own benefit or that of their family or social group. There are categories of
consumers who are equal in rights.
Direct consumer: It is one who establishes a direct relationship with the supplier.
Equivalent consumer: They are members of the family or social group who become beneficiaries.
of the good or service acquired by the consumer and they will be considered with the same rights as the
direct consumer.
Exposed consumer: It is one who is exposed to a consumption relationship in any way.
to support the compensation for damages to third parties arising from a consumer contract.
Entrepreneur consumer: Various positions have been debated regarding the situation of the consumer.
entrepreneur. There are those who support his exclusion and those who claim that his inclusion or not in the regime
it will be determined by the purpose that ultimately they give to the products and services they acquire. If
the cuddles are immediately or indirectly integrated into the production process, it is a relationship
commercial, otherwise, it is a consumer relationship.
Supplier: It is the natural or legal person, public or private in nature, who develops professionally.
even occasionally, production, assembly, creation, construction, transformation, importation activities,
brand concession, distribution and marketing of goods or services intended for consumers or
users.
The supplier is the one who intervenes in the market in such a way as to deliver their product to the consumer.
service, whether in its stage of production, distribution, or marketing.
The professionalism of the agent indicates that their market intervention is done regularly, with a
organization of work aimed at maximizing the benefits to be obtained.
Liberal professionals as providers: There is an exclusion of these in the concept of provider.
There are two compelling reasons to maintain this exclusion: the first is that while
the responsibility of professionals constitutes an obligation to apply the appropriate diligence, the Law
imposes objective responsibility on suppliers that aggravate the scope of obligations
assumed. The second refers to the control of the activity, insofar as the body responsible for enforcing the Law
It would overlap its role with that of the Professional Colleges that exercise control over the registration.
State as a provider: The regulation referring to providers talks about public or private subjects.
Thus, when the State becomes a provider of a service such as health, education, etc., it will be able to
considered as a provider and be liable to the application of the Law. This tends to balance the
inequalities among citizens.
Abusive commercial practices. Commercial practices are procedures or techniques used to
to maintain, promote or develop the production of goods or services.
There are situations of abusiveness where commercial practices become unfair. And they are classified into:
Deceptive business practices: They can occur by action or by omission. The former occurs when the
provider of inaccurate information about the nature and characteristics of the product, the scope of the
merchant commitments, the price or the existence of an advantage regarding the price and the need for
a service or repair. And regarding the omission, it will be configured when it is omitted or offered in a manner
little clear, unintelligible, ambiguous, or at a moment that is not appropriate, the information that you need a
average consumer, to make a decision about a purchase that they otherwise would not have made.
Protection against misleading commercial practices arises from the duty of information and advertising.
The duty of information arises from the imbalance that exists between the provider and the consumer. Therefore, the
The supplier is obligated to provide information to the consumer about the product they are offering.
This information must have certain qualities:
Certain: it must be true, as it should not hide crucial data to make the decision.
consumer.
- Effective: it has two dimensions, one objective related to the information itself (it should not constitute in
confusing data difficult for the consumer to verify or analyze; nor excessive information
that due to its quantity hinders consumer judgment) and another subjective one related to the possibility of
to be understood by the consumer (it should not contain technical terms, if it's not in the national language
or is not presented in a way that is understandable to the audience for which the product is intended)
Free
Given in physical support: except in cases where the consumer chooses to use another alternative means of
communication that the provider makes available.
The burden of proof lies with the provider, who must demonstrate that they have complied.
Advertising must be regulated in some aspects so that it does not become abusive. Firstly, the
advertising is considered included in the contract and binds the offeror, that is, it has a binding effect
of the contract (Art. 1103).
Illegal advertising is considered to contain false indications that lead or may lead to error.
consumer, when they relate to essential elements of the product or service; make comparisons of
goods or services when of a nature that leads to consumer error and; is abusive,
discriminatory or induces the consumer to behave in a way that is dangerous to their health or safety.
Adhesion contracts.
Concept. These are contracts in which one of the contracting parties gives their consent or, by force
expressive, adheres to unilaterally predetermined general clauses by the other party or by a third party, without
the signatory has participated in its drafting.
Requirements. The law requires that the pre-established general clauses be understandable and self-sufficient.
It also requires that the writing be clear, complete, and easily readable.
Particular clauses. In the context of adhesion contracts, particular clauses are referred to as those
that, negotiated individually, expand, limit, suppress or interpret a general clause. Add the
rule that in case of incompatibility between general and particular clauses, the latter prevail.
It is true that normally the specific clause must prevail over the general one, as it can be inferred that the
The particular clause has been negotiated by the parties and has not been imposed by one of them. However, there is
cases in which this provision is inapplicable. This occurs when the general condition is more beneficial.
for the adherent that the particular.
Abusive clauses. The Civil and Commercial Code has established that certain clauses, considered abusive
For the adherent, they must be considered as not written.
It is explicitly stated that the clauses that: distort the obligations of the offeror are considered abusive;
to those that matter, renunciation or restriction of the rights of the adherent, or expansion of the rights of the proponent
that result from supplementary rules, that is, when it modifies what the law provides, against the adherent
lightening their burdens and reducing the responsibilities of the predisposer.
And those that, due to their content, wording or presentation, are not reasonably foreseeable, that is to say, that
They hide consequences that the adherent cannot foresee will occur.
Although not expressly foreseen in our legislation, those must also be considered abusive.
clauses that limit the liability of the proposer, and those that impose the reversal of the burden of proof
test to the detriment of the adherent.
Interpretation and judicial control. The ambiguous clauses predetermined by one of the parties are interpreted in
opposite to the predisposing part. This is a clear application of the general principle of good faith.
This rule protects the adherent, who has no other option but to adhere to the proposal drafted by the other party.
not to hire, and for this reason it is logical that whoever drafted the contract, if they did so without clarity, with ambiguity or
abusive terms, take responsibility for the undesirable consequences of such writing.
It is important to emphasize that the administrative approval of the general clauses does not preclude their judicial review.
In these cases, when the judge declares the partial nullity of the contract, he must simultaneously integrate it; otherwise,
it can survive without compromising its purpose.
PRELIMINARY NEGOTIATIONS
When it comes to studying the contract, there are basically two stages: the first, which covers all actions
which can be carried out during the period leading up to the celebration of the contract, which we will call the negotiations
preliminaries; and the second, which begins with the celebration of the contract and extends until its full execution.
Freedom to contract and good faith. It is necessary to reconcile two fundamental issues when it comes to the
preliminary negotiations. On one hand, the freedom to contract must be safeguarded, which ultimately allows,
to hire or not to hire; on the other hand, it is inadmissible to support actions contrary to good faith in the course
from the negotiation carried out by the parties.
When referring to the formation of the contract, it is unavoidable to refer to the principle of freedom. Everything
the subject is free to hire or not hire; and, in the case of wanting to hire, to choose with whom to do it and to
determine its content, but always acting within the limits imposed by law, public order, the
moral and good customs.
In principle, then, the withdrawal from the previous negotiations is perfectly legitimate and cannot give
originate in compensation. Therefore, the Civil and Commercial Code states that the parties are free to
to promote negotiations aimed at the formation of the contract, and to abandon them at any time.
The above, however, does not prevent one from affirming that whoever voluntarily initiates negotiations
preliminary actions with the aim of entering into a contract, must be liable for the damages that it may cause
arbitrary, fraudulent, and even negligent abandonment of the negotiation. It's not that one is obliged to hold the
contract; but is obliged to compensate for the damage caused.
Good faith (is a legal norm that imposes on individuals the duty to behave loyally in transactions.
legal, adjusting one’s own behavior to the archetype of social conduct demanded by the ethical idea
in effect) that must preside over legal transactions no longer allows for an unreasonable, causeless, or arbitrary break of
the negotiations, and obliges to repair the damages caused. Accepting that arbitrary departure would imply
to endorse the validity of abusive behaviors.
Confidentiality. Acting in good faith entails certain conduct duties that the parties must fulfill, one
of them is the confidentiality:
It is an implicit duty of the parties in any negotiation. The violation of the duty of confidentiality
forces to repair the damage suffered by the other party and, if they have obtained an undue advantage from the information.
confidential, it must compensate the other party to the extent of its own enrichment.
Violating the duty of confidentiality can create a twofold advantage: With the information of the other
I generate a better contract with another person. With the information from the other party, I position myself better.
to her.
Letter of intent. During the pre-contractual stage, in the course of the preliminary negotiations, the parties usually
celebrate certain agreements, which without constituting a contract, generate certain consequences.
One of these agreements is the so-called letter of intent, which is the instrument through which one party, or
All of them express their consent to negotiate on certain bases, limited to issues related to a
future contract.
The will expressed in a letter of intent is aimed, then, at producing a provisional effect.
which is exhausted in the preparation of the contract, not constituting by itself the contractual instrument, nor binding on the one who
It issues. Clearly, the letter of intent does not constitute a contract, and therefore it must be interpreted
restrictively.
The letter of intent does not constitute an offer, nor does it have binding force, unless it meets the requirements.
own to the offer.
As a rule, the unilateral breakdown of negotiations enabled by a letter of intent constitutes a
assumption of interruption of the preliminary negotiation, which may generate—if it is abusive—the right on the part of
the counterpart to claim compensation for the damage suffered.
What is compensated? What should be compensated is the so-called damage to negative interest, which includes (i)
the emerging damage (the expenses that would have been incurred to finalize the contract), and (ii) the frustrated gain due to
the non-execution of another contract with a third party, as long as it proves that the latter was discarded in order to
close the contract that ultimately fell through because of the person with whom it was intended to hire.
Certainly, the interruption of the negotiation decided by one of the parties may not be abusive and, therefore,
not generate any liability, (i) if there have been actions by the opposing party that justified the interruption,
such as insufficient information provided or the breach of a confidentiality agreement, or (ii) if there is a
true impossibility of reaching a definitive agreement, which may be motivated by different reasons, such as
like the differences between the parts in the price or in the quality of the thing that is promised.
PRELIMINARY CONTRACT.
General provisions. The parties have reached an agreement on the essential bases of the negotiation,
but there is a lack of agreement on secondary clauses or it happens that they require a deeper study of
all the implications of the contract to give definitive consent.
Now, if the parties have entered into a preliminary contract, it is clear that they have already moved past the negotiations.
preliminaries and have progressed to the contractual stage.
But it is true that the consequences of breaching the preliminary contract will not be the same as those of
breach of the final contract. However, that breach implies failing to meet an obligation
to cause damage to the other party, obliges to compensate them.
Deadline. The promises outlined in this section, which covers preliminary contracts, the promises to celebrate
a contract and the option contract have a validity period of one year, or the shorter period that the parties agree upon,
without prejudice to acknowledging that they can renew it upon its expiration.
Promise to enter into a contract. The parties can agree to the obligation to enter into a future contract, but
The future contract cannot be one of those for which a form is required under penalty of nullity.
The idea is that the promise to celebrate a contract (a promise that can also be called a pre-contract or
pre-contract) matters, a definitive agreement on all points of the contract which, however, lacks one of
the basic requirements required by law, and provided that their non-compliance does not result in the nullity of the contract.
If the law requires a specific form under penalty of nullity, the promise of contract isvoid.
Option contract. One person offers another a contract and agrees to keep the offer pending.
for a certain period of time; the other party accepts that offer as such, that is, as a commitment of
keep it for the stipulated time and without stating yet whether or not he accepts the proposal in substance. The
the consequences are as follows:
a) the offeror cannot retract their offer during the set period;
b) the other party can accept it during that time and the contract will be definitively concluded with its
sole agreement without the need for a new expression of will from the offeror.
The option can be free or costly, and it must be agreed upon in the same manner as required for the contract.
definitive. As a rule, unless otherwise agreed, the option is not transferable to a third party.
CONSENT
Concept. It is the conformity or agreement that results from exchanges of statements between the parties. It is one
of the essential elements, along with the object and the cause, that is to say, without them the contract cannot exist.
Voluntary act. Thus, there is consent when two wills converge to form one.
For a voluntary act to exist, it must meet certain requirements:
Discernment: the ability to realize what we want.
Intention: the ability to perform desired actions.
Freedom: to carry out the desired actions without any pressure or threat that forces me to do so.
Manifestation of will. The will can be expressed either explicitly or implicitly; it is explicit when
is expressed orally, in writing, by unequivocal signs, or through the execution of a material fact; it is
tacit when it results from acts that allow knowing the will with certainty, and provided that the law does not require
an express manifestation
Even in limited cases, silence may signify a manifestation of will. This occurs when
silence opposes an act or an interrogation and there is a duty to respond that results from the law, from the
will of the parties, of the uses and practices, or of a relationship between the current silence and the statements
precedents.
Divergence between intention and declaration. It is normal in a legal act for the intention to coincide.
with the declaration of will, but some hypotheses of disagreement between both often arise. In the presence of
In this situation, several theories arise to give precedence to one or the other:
Theory of will. The classical theory maintained the absolute rule of the internal will. The statement only
it would be a formal, accidental matter; and the noble judicial task consists in uncovering the true will of
the parts and make them produce effects.
Theory of the declaration of will. This theory highlights the importance of the declaration in the
formation of legal acts. For the intention to transform from a phenomenon of consciousness into a phenomenon
Volition requires expression. It is evident that intention, precisely because it is purely
psychological and internal, it is inaccessible to third parties and cannot be the basis of a legal business
In conclusion: due to good faith, the security of business, the trust that must preside over relationships
humans are interested in having legal acts based on a certain and safe foundation, which cannot be
another thing than the declared will.
Theory of the Argentine system. Internal will must be given precedence, except for two exceptions:
A) When the difference between the declared will and the internal will is due to a fact attributable to the declarant, already
either on purpose or through sheer negligence.
B) When it comes to a contract for a valuable consideration and the contracting party is acting in good faith.
CONTRACT FORMATION
Offer.
Concept. Offer is a unilateral proposal directed by one party to another to enter into a contract. Or,
as defined by the Civil and Commercial Code, it is the manifestation addressed to a specific or determinable person,
with the intention of binding themselves and with the necessary clarifications to establish the effects that it should produce
to be accepted. It is not a preparatory act of the contract, but one of the contractual statements. Thus,
There is only an offer when the contract can be finalized with just the acceptance of the other party, without the need for
a new manifestation of the one who made the first proposal.
Requirements of the offer. For there to be a valid offer, it is necessary:
a) That it is addressed to specific or determinable person or persons. This is why the public offer, as already
we have said, it is not mandatory in principle, but should rather be considered as an invitation to listen
offers, unless it is an offer to enter into a consumer contract, the public offer binds and obliges
in such a way that if it does not come into effect, the offeror will be sanctioned according to the guidelines set by the entity itself
law. When is the offer directed to a determinable person? When the offer contains a clear procedure
for the determination of the person to whom it is addressed, in which case it is mandatory for the offeror; just as
it happens with the promise of a reward to anyone who finds and returns an object.
b) That has as its object a specific contract, with all the constitutive background of the contracts. Or,
with words from the Civil and Commercial Code, that has the necessary precision to establish the effects that
it must produce if accepted. That is, the proposal must contain all the necessary elements to
that a clear and unequivocal acceptance allows the contract to be considered concluded.
c) That there is an intention to bind oneself. Every legal act (and the offer is one) requires that it be executed with
intention to be valid (art. 260). Therefore, if there is no true intention to bind oneself, there is no offer. It is the
case of an offer made in a joking spirit or without intending to be bound.
Invitation to offer. Article 973: the offer made to undefined individuals is considered an invitation to
that they make offers, except that from their terms or the circumstances of their issuance the intention of
hiring of the bidder. In this case, it is understood to be issued for the time and under the conditions accepted in the
uses. Therefore, unless it is the provided exception, a declaration of intent is required from
interested and a further acceptance by the one who made the general offer.
Alternative offer. If the offer were alternative, that is to say, if one contract or another is offered, the acceptance of one
It is enough for them for the agreement of wills to be perfect.
Multilateral contract. It provides that if the contract is to be entered into by several parties, and the offer comes from
different people, or is directed to several recipients, there is no contract without the consent of all
interested parties, unless the convention or the law authorizes the majority of them to celebrate it on behalf of
everyone or allow its conclusion only among those who have consented.
Duration of the offer; revocation; expiration. The primary rule is that the offer binds the proposer.
in other words, whoever makes an offer is committing to fulfill the promised benefits if the
the recipient of it accepts.
The Civil and Commercial Code distinguishes between offers with and without validity periods. In the latter case,
difference between offers made to a person present or made through an instant communication medium, and to
people who are not present.
If the offer establishes a validity period, the offer will only be valid for that period, which will begin to run.
since the date of its receipt, unless it contains a different provision.
If the offer does not establish a validity period and it is made to a person present or is formulated by a
instant communication medium, can only be accepted immediately. If this does not happen, the offer expires.
In contrast, if the offer is made to a person who is not present, without a deadline having been set for it
acceptance, the offeror is bound until the moment when the receipt can reasonably be expected
from the answer.
On the other hand, it should be noted that if the offer is directed to a specific person, they may be
retracted. For this, it is necessary that the communication of the withdrawal of the offer is received by the recipient
before or at the same time as the offer itself.
Finally, there are assumptions of expiration of the offer; that is, it loses its binding force. This occurs
when the proposer or the recipient of the offer dies or becomes incapacitated, before the reception of their
acceptance. Nevertheless, a right is granted to one who accepted the offer while ignoring the death or incapacity of
Offeror: if as a consequence of your acceptance you have incurred expenses or suffered losses, you have the right to claim your
repair.
Acceptance.
Concept. There is acceptance when there is a declaration or act from the recipient that reveals conformity with the.
offer.
The acceptance of the offer consummates the agreement of wills. For its proper effect to occur (the
conclusion of the contract) it is necessary:
a) that it is flat and straightforward, that is, that it is not conditioned or contains modifications to the offer;
b) that is timely; it will not be if the offer period has already expired, which can be express or result from the
uses and customs or of a time that can be considered reasonable to receive the response.
Acceptance must refer to all points of the proposal; disagreement with just one of them is enough,
even if it is secondary, for the contract to be frustrated.
Modification of the offer. If the offer is accepted with modifications, the contract is not concluded; and the
acceptance is regarded as a new offer (called counter proposal or counter offer) that must be considered the
original offeror. Without their acceptance, there is no contract.
Article 978 adds that modifications made by the acceptor can be accepted by the offeror if it
inform that person immediately.
Offer made to a person present or through an instant communication medium. The offer made to a person.
present or by an instant communication medium, such as a phone or an online computer system
a line will not be deemed accepted if it is not accepted immediately. It is a situation in which the recipient of the offer does not
enjoys a period, unless expressly granted.
Contracts between absentees. Acceptance perfects the contract when it is received by the offeror.
as long as it occurs within the validity period of the offer.
However, there are different theories about when the contract is considered completed.
a) According to the declaration system, the contract is completed at the moment the acceptor has
expressed in some way their willingness to accept, even though that declaration has not been sent to the offeror.
b) According to the bidding system, it is necessary that the declaration of acceptance has been sent to the offeror
c) According to the system of reception, it would be necessary for the offeror to have received the acceptance. This is the
system adopted by our CCyC. Receiving is understood when the other party knows it or should have known it, regardless of
of verbal communication, of receiving at their home a relevant instrument or in another useful way.
d) Finally, according to the information system, it is not enough for the offeror to have received the acceptance, but
It is necessary that I have been made aware of it.
Retraction of acceptance. Acceptance may be retracted if the communication of its withdrawal is received by
the recipient before or at the same time as her.
VICES OF CONSENT.
According to the doctrine of inner or psychological will, consent, to have legal effects, must be
expressed with discernment, intention, and freedom. If one of these elements does not exist, the act is deemed as
involuntary.
The causes that hinder discernment are: the act of someone who, at the moment of performing it, is deprived of reason;
the unlawful act of a minor who has not reached the age of 10; the lawful act of the minor
age that has not reached 13 years old.
Error.
Concept. Error is a vice of the will that affects the intention of the subject, as an internal element of the act.
voluntary. It is a false notion in relation to one thing. Ignorance is the lack of knowledge. The doctrine has
absorbed the concepts, understanding that everything said about the error can be predicated regarding the
ignorance.
The error of law is regulated by the principle of inescapability, where ignorance of the law cannot
it can be invoked, unless authorized (art. 8). It is the one that applies when the prohibition is not known or
mandate of the law. The foundation lies in the fact that laws are mandatory and must be applied independently of
whether the interested party knows them or not.
The error of fact (art. 265) occurs when the false knowledge falls on a fact, content or
budget of the act. Or when someone who errs has presumed true what is false and vice versa. The error of
a fact can be essential or secondary.
Secondary: to the extent that it concerns incidental or accessory elements of the business
Essential: when it concerns the substantial content of the legal act or the main data that
contractors have had in mind at the time of hiring. For the defect of error to cause the nullity of the act.
it must be essential. This implies a misunderstanding of such magnitude that it allows one to think that, had it not existed, the
The act would not have taken place. For the error to be legally relevant and to give rise to the annulment of the act.
It is essential for the false belief to focus on some element of fact, content, or assumption.
from that. Furthermore, to provoke invalidity, the error must affect the internal formation process of the
will, that is to say having been the determining cause—or determining motive—of the act.
The legislator sets out assumptions in which an essential error is considered, in order for the act to be declared null.
(art. 267)
Error in the nature of the act. Where it falls on the type of act or contract that is executed.
The error may pertain to a good or a fact of a different kind than the one intended to be designated.
Where an agreement has been made on something individually different from what was intended.
That the error falls upon a quality, extent, or sum different from the desired one. It must be
determinant of legal will.
There may also be errors in the relevant personal reasons, but it will only be essential when there have been
are incorporated expressly or tacitly in the act.
When the error falls on the person with whom the act was celebrated or to whom it refers. The essential error
About the person, it can be so not only when it falls on the part but also when within the act.
Legal relates to a third party that is decisive for the celebration of the act.
If the act is unilateral, it is sufficient for the error to be essential to cause nullity. When the act is unilateral, it does not
reception, it is required to be excusable, meaning that its nullity should be recognized because even though it was put forward
due attention before carrying out the act, he could not notice the false notion of his knowledge.
For unilateral receptive acts and bilateral acts, the legislator sets aside excuse and adheres to
the theory of recognizability (art. 266). The error is recognizable when in relation to the nature and
circumstances of the legal transaction, the recipient, using normal diligence, could have realized that
he, although, in fact, has not realized. Therefore, it is not necessary for the recipient of the statement
Whether or not the error was acknowledged: it is enough that the error was objectively recognizable.
Nullity. The error of fact when it is essential and excusable, in unilateral actions, and recognizable, in unilateral actions.
receptive and bilateral, the intention acts as an internal element of will and this leads to the nullity of
The nullity will be relative. Only the party harmed by the act can request nullity.
As a natural and logical consequence of the declaration of nullity, establishing the principle of retroactivity,
things return to the state prior to the celebration of the null act, that is, to the reality existing at the time of its
training. Consequently, the parties shall return to each other what they mutually delivered in view of the act.
addicted.
But in unilateral receptive acts and in bilateral acts, if the error is essential and recognizable, it proceeds to the
nullity of the same. However, the legislator, weighing the principle of conservation of the legal act, has
allowed the possibility of avoiding invalidity by granting the opportunity to maintain it under the conditions that
they had understood.
Null legal acts, although they do not produce the effects of valid acts, may give rise to the
consequences of the facts in general and the corresponding reparations.
Dolo.
Concept. Deceit as a vice of the will is any assertion of the false or concealment of the true.
any device, trick, or scheme used for the celebration of the act (art. 271). Fraud implies
always a deception, it is deliberately misleading a person with the purpose of making them celebrate a
legal act.
Fraud can consist of a positive act of deception or in a reluctant or fraudulent omission. In this latter
it implies keeping silent when it is noticed that the other party is wrong or makes mistakes
error regarding any essential element of the contract that is determining of his consent. There exists a
duty to inform, characteristic of good faith, that must prevail between the parties and especially if the erroneous
information relates to the essential element of the act.
Classification. Fraud is classified into: essential fraud or incidental fraud. The difference between the two lies in that the first is
the deception that constitutes the determining cause of the act, inasmuch as incidental fraud is the deception that although
has managed to make the victim carry out the legal act under disadvantageous conditions, it has not been the cause
determinant or fundamental to carry out the legal transaction, and therefore does not affect the validity of the act, but
The one who has committed it must compensate for the damages caused.
Requirements. Not any trick or deceptive maneuver is suitable to cause the nullity of the business due to
of deceit. Therefore, it must meet certain requirements to give rise to nullity (art 272):
a) That the maneuver is serious. The seriousness is determined from 2 angles. On one hand, it must be analyzed the
the entity of the maneuver must be of considerable magnitude. But also the conditions and
qualities that surrounded the circumstances, and above all, the personal conditions of the person
deceived.
b) It must be the determining cause of the act. The deception must be aimed at making another person carry out a
Determined legal act. Fraud is a determining cause of the act when the trick affects the process.
internal deliberative of the person and viciates the intention, because had it not been for the maneuver that
he would not have carried it out if he had presented a false or unreal state of affairs.
c) That it has caused significant harm. In order to lead to the nullity of the act, the Code requires
that the damage caused by the intentional action is significant. It is worth mentioning that the victim must have
experienced a loss of a certain magnitude. The damage caused by nullity can be patrimonial or
moral.
d) That there is no reciprocal bad faith. Protection cannot be granted to conduct that has acted in bad faith.
The intent will be considered such when both behaviors meet the rest of the referred conditions.
Fraud by a third party. The fraud by a third party gives rise to the nullity of the act, and if one of the parties had
knowledge of the same jointly and severally responds for the damages caused.
Nullity. The ruling that verifies the requirements of essential fraudulent intent in a specific case declares the nullity.
relative to the legal act executed with that defect. Only the party harmed by it can request the nullity.
act. As a natural and logical consequence of the declaration of nullity, establishing the principle of
retroactivity, things return to the state prior to the celebration of the null act, that is, to the reality in effect at
time of their formation. Consequently, the parties shall return to each other what they mutually delivered in
you look at the flawed act.
Null legal acts, although they do not produce the effects of valid acts, give rise in their case to the
consequences of the events in general and the corresponding reparations.
Concept. Violence is a vice of the will, which can extend both in illegitimate physical coercion.
Like morality, the first is identified with force and the second with intimidation.
Physical force is that exerted on the subject who is reduced to a passive instrument, alien to will.
the victim must lack the means to oppose or resist the coercion they suffer. The threats that generate the
Intimidation arises when it inspires a fear that does not allow for the freedom to choose how to act. It is exercised
about the mood, in its psychological integrity and also its assets, altering the will in such a way that, although
this is not completely unrelated, like physical strength, you cannot do whatever you want.
In violence, the victim is induced to make a statement of will that is not free, whether it is achieved
through physical or moral force.
a) Furthermore, violence does not have to be just for it to cause nullity; if it is for a just cause, it cannot.
to be affected by the will.
b) The victim had to choose to commit that act out of fear of suffering a serious harm believing that
that if it does not do so, it will be possible to suffer a harm of a greater entity than that which the legal act would cause.
strength is serious when it is capable of making a strong impression on a person, taking into account their
age, gender, and condition. The rule dismisses the possibility of petitioning for annulment when the harm is minor.
or entails a possible or impossible harm to execute.
c) The harm must be imminent. This arises from the temporality of suffering harm in a near term in a
future that cannot be avoided in time nor allows the assistance of public authority or such assistance does not
effective outside.
To determine its importance, vice must be evaluated in relation to personal conditions.
threatened. The physical or moral pain in the face of the pain that the act may cause him, which leads him
You have to choose between two evils. In such a case, you have chosen the lesser evil. Therefore, the fear must be rational and
founded, for this the nature, form, and intensity of the intimidating means used will be valued and
also the personal conditions of the one who has suffered it.
d) There must be a causal link that establishes the fact that fear is the cause that determined the
will. The influence of threats to instill fear in the victim and to compel them to act
Act is a fundamental condition.
Subjects. Both the irresistible force and the threats generated by fear can come from the part or from a
third party not involved in the legal act, where the law contemplates the possibility of articulating the nullity in
both assumptions (art. 277). And if one of the parties was aware of the violence exerted and benefited from it
they both respond jointly (art. 278).
Nullity. It is then that, given these assumptions, it is appropriate to declare the nullity of the act. It is that the deprivation
The option between hiring or not, due to the violence exerted, implies damage. It also responds
jointly the party that at the time of the celebration of the act was aware of the irresistible force or the
third-party threats.
OBJECT
Concept. Contracts have 3 essential elements: consent, object, and cause. The object, according to
a doctrinal current, is the legal-economic operation that the parties had in mind when contracting. It is
to say, what they were pursuing at the time of celebrating said contract.
The contract generates obligations, the object of these obligations are the benefits that could be to give,
to do or not to do and the object of the services would be the goods we give or the services we provide.
So the object of the contract is not the things or goods or the services we provide but the operation.
economic legal.
Requirements. As a general rule, any fact can be the subject of contracts, except for exceptions.
that the same law provides. That is to say, unless it falls within some of the prohibitions set forth. The Code
It is established that the provisions of articles 279 and 280 of the same apply to the object of the contract.
It must be possible. Indeed, no one can be forced to pay or do something impossible. But the impossibility that
the annulment of the contract must be absolute. It is not enough for it to be so only for a certain debtor, due to lack of qualifications
or personal capabilities or for other circumstantial reasons. A total impossibility is required, physical (to touch the
sky with hands) or legal (to pledge a property).
A case of impossibility is the non-existence of the promised thing in the contract: the contract is null, not
It will have no effect.
Finally, the Code presents a case of initial impossibility, but of subsequent possibility. Indeed,
Article 280 states that the legal act subject to a term or suspensive condition is valid, even if the object
it has initially been impossible, if it becomes possible before the deadline or the fulfillment of the
condition.
It must be determined or determinable. (Art. 1005) It would not be possible to compel the debtor to deliver a thing.
or to the fulfillment of an act if it is not possible to specify what the due thing or act is.
Many times, the object is specified in its individuality, identifying a certain body. The object is, in these
cases, determined. The Civil and Commercial Code also considers that the object is determined when only
its species or genus is required, as the case may be, even if it is not in its quantity, if this can be.
determined.
The object is determinable when sufficient criteria are established for its individualization, for its
determination. They can be stipulated in the same contract or when the specification of the object has been left
subject to the discretion of a third party; in that case, the contract maintains its validity even if the third party (i) has not
made the choice, or (ii) has not observed the criteria expressly established by the parties or by customary practices
and customs. In these cases, judicial determination can be sought, processed through the procedure
as brief as possible. (art. 1006)
In the Velez Code, it was established that the contract has the guidelines on how the object will be determined for that reason.
It is determinable, but if the parties leave the determination of the object to a third party, if this does not fulfill them
the contract was null. The CCyC establishes a different position regarding the principle of conservation of the act.
legal.
It must be lawful and in accordance with public order. Any object contrary to the law nullifies the obligation. Illegality can
to be born from the fact that the anticipated act is prohibited or that it involves a good that, for a special reason, the law
it also prohibits it.
On the other hand, articles 279 and 1004 establish that the object of the contract cannot be contrary to
public order. Article 12 reiterates the idea when it stipulates that private agreements cannot leave
without effect the laws whose observance is of interest to public order. Public order is the set of
legal, political, moral, and economic principles mandatory for maintaining the social order of the people in
a specific time.
It cannot be contrary to human dignity. Thus, all contracts that have as
personal rights objects, such as life, physical integrity, honor, etc., or that affect their
dignity, how would the contract that obliges to provide degrading services be? If the contract has the purpose of
Rights over the human body should be governed by Articles 17 and 56.
These regulations provide that (i) parts of the human body have no commercial value, (ii) they may be available.
for the title only if an emotional, therapeutic, scientific, humanitarian, or social value is respected, (iii) that the
the contract must comply with what special laws provide, and (iv) acts of disposition are prohibited
about the body itself that cause a permanent reduction of its integrity or are contrary to the law,
morality, or good manners, except when required to improve the person's health and,
exceptionally, from another person.
They must not harm the rights of others. Here the norm of art. 1004 refers to the fact that the object of
The contract must not undermine the rights of third parties unrelated to the contractual relationship.
It must not be a fact that is contrary to morality and good [Link] the legal order is
dominated by the moral idea, therefore, legal acts must also conform to ethical principles. The
Good customs to which the law refers are the average morals of a people at a given moment.
The judge should not apply a very strict criterion to judge the morality of an act; only when it clashes
openly against morality, its invalidity must be declared. If what is contrary to morality is the fact that
configure the object, the contract is null because it affects one of its essential elements; but if the immoral is a
accessory clause, the judge may maintain the validity of the act and declare the immoral clause without effect.
It must be subject to economic valuation. Article 1003 establishes that the object of the contract must be
susceptible of economic valuation. The standard incorporates the idea from the Velez Code.
But there the Encoder argued that 'if the service object of the contract, although susceptible in itself of
monetary appreciation will not present any appreciable advantage in money for the creditor, nor would this be
authorized to request the execution of the promise made. A mere interest of affection would not be enough to grant him
an action, unless the stipulation determined by such motive had simultaneously aimed at the
fulfillment of a moral duty." As can be seen, it required that not only the object had patrimonial content;
the interest pursued by the creditor should also be present.
In the CCyC, it is not required that the creditor have a pecuniary interest, as it establishes that the object must be
susceptible to economic valuation and correspond to an interest of the parties, even when it is not
heritage.
Not all goods can be the subject of contracts, those that are prohibited for some special reason cannot.
sean.
Future assets. Not only present assets can be the subject of contracts; future ones can also be.
future goods. The promise to transfer them is subject to the condition that they come into existence, except that
they are random contracts (art. 1007). That is to say, they are subject to a suspensive condition, until that does not exist
object, the contract is not executed. The assumptions provided for in the law are two:
a) One contracts for something that does not exist, but it is expected to exist. If later the thing does not come to exist, the
the contract is null.
b) A contract is made regarding something that does not yet exist, with the buyer assuming the risk that it may not come into existence.
never: the contract has a random character and is therefore valid even if the thing does not come to exist.
Disputed assets, encumbered or subject to precautionary measures. Article 1009 states that they may be the subject of
contracts the goods discussed in a dispute or trial. Goods subject to a lien may also be involved.
as happens with the thing that has been given as collateral, or in antichresis, or mortgaged. They can even be subject to
a contract the things that are affected by a precautionary measure, as happens when they have been seized.
This possibility of being subject to a contract does not imply disregard for the rights of the third party who may
to be affected by such a contract; on the contrary, the cited norm provides for the protection of their rights, which
It implies that the harm that may result must be satisfied by the contractors.
Now, if the contract is made with concealment of the precautionary measure or the lien, the party that promised its
delivery, which clearly has acted in bad faith, must compensate for the damages caused to the other, if the latter has acted in
good faith.
Third-party goods. As a general principle, third-party goods can be the object of contracts (art. 1008 1st
part). The application of this rule is particularly clear in the assumption that the contract does not mean a
commitment to transfer the domain.
When the contract concerning someone else's property involves a promise to deliver it, even transferring ownership,
it is necessary to distinguish several assumptions:
a) The one who has promised the delivery of the good and has not guaranteed the success of his promise: is only obliged to
employ the necessary means to ensure that the service is provided; and shall compensate for all damages caused, if
the benefit is not delivered due to his fault. It is a duty of means: the contractor must put forth their utmost effort.
effort in achieving success, but it has not guaranteed a particular outcome.
b) The one who has promised the delivery of another's property has also guaranteed its effective delivery; in this case, must
repair the damages caused if the item is not delivered even if there is no fault on their part. This is an obligation.
As a result: just not reaching it means they must respond.
c) The norm has omitted a third hypothesis: that it has been promised that the owner of the asset agrees to deliver it.
As it appears, the effective delivery of the good has not been guaranteed, but rather the owner would assume the commitment to
deliver it. In this case, there is also an obligation of result, which does not consist in the delivery of the good,
unless it is obtained from the owner’s acceptance to make effective its delivery.
d) So far we have assumed that both parties knew that the good whose delivery was promised was someone else's; but
It may happen that the one who promised the delivery hid the fact that the goods did not belong to him. In such a case, if not
He manages to obtain it legally in order to deliver it, and is responsible for all damages caused.
Future inheritance. As a general principle, it cannot be the subject of contracts nor can they be.
potential hereditary rights over particular objects. The prohibition includes those contracts
celebrated with the consent of the person whose succession is being discussed. Also covered are the
contracts regarding objects or rights that will be received as a consequence of a future inheritance.
It is a prohibition based on moral reasons, as it is shocking to admit the legitimacy of agreements in the
what is speculated about a person's death.
The prohibition of entering into contracts aimed at a future inheritance, however, is not absolute; the
Code allows exceptions in the same prohibitive article:
The agreements related to productive exploitation or to any type of shareholding, aimed at
the preservation of the unity of business management or the prevention or resolution of conflicts, may include
provisions related to future inheritance rights and establish compensations in favor of others
legitimate heirs. These agreements are valid, whether or not the future decedent and their spouse are part of them, as long as they do not affect the legitimate portion.
inheritance, the rights of the spouse, nor the rights of third parties
That is to say, a partition of the inheritance can be carried out during the lifetime by contract, as long as certain conditions are met.
with all the established requirements. At the same time, the article indicates that if there is any particular provision that
the agreement on future inheritance is accepted, that agreement will be valid.
CAUSE
Concept. The word cause has two different meanings in Law:
a) sometimes designates the source of obligations, that is, the factual assumptions from which the obligations derive.
legal obligations: contracts, unlawful acts, etc.
b) other times, on the other hand, it is used in the sense of final cause; it means the end that the parties aimed for.
when hiring.
In our CCyC it is defined in art. 281: "The cause is the immediate end authorized by the regulation.
legal that has been decisive of the will. The reasons expressed when also integrate the cause
be lawful and have been incorporated into the act expressly, or tacitly if they are essential for both
parts.
Our Code takes a dualistic position. In fact, on one hand, it states that the cause is the immediate end,
the determinant of the will of the parties and that is authorized by the legal system. It is, then, the
direct and concrete reason for the celebration of the act, whose evidence is so clear that the counterpart cannot
ignore her.
But to this economic and social function that the business is ideal to carry out on its own, it is necessary to add a meaning.
moralizer. And this is achieved by asserting that the causes include the distant and subjective motives or ends, which
have been expressed as long as they are lawful and incorporated into the contract explicitly, or
implicit if they are essential for both parties.
Distinction between determining motive and simple motives. It is important not to confuse the cause with the simple ones.
reasons that have driven to hire. The first is the immediate, concrete and direct end that has determined the
celebration of the act; the simple motives are the indirect or remote motives, which are not linked
necessarily with the act. These reasons, being subjective and internal, variable and multiple, are
imponderables and therefore result in legally inconsequential.
A classic example is that of the coronation cases. Various issues were raised before the Court of Appeal in London.
lawsuits that dealt with the same issue: different rental contracts had been made, through which
balconies and rooms with windows that faced certain streets through which the parade would pass had been rented
the coronation of King Edward VII, on July 26, 1902. It happened that the parade had to be canceled due to
King's disease. While the landlords demanded compliance with the contract and payment of the price.
agreed, the tenants were claiming its nullity based on the lack of utility and interest in renting such
pieces and balconies. The court leaned towards this latter position: the King's illness had thwarted the
purpose pursued with the contract, which was nothing more than to see it pass. In this case, the cause was frustrated and the
determining reasons.
The cause is subjective, it originates in the inner self of the subjects and is specifically in the contract. That is to say,
I can celebrate two contracts that have different causes since each contract has a specific reason.
what makes this contract celebrated and not another.
Presumption of the cause. Article 282 of the Civil and Commercial Code, in its first part, states that although the cause is not expressed
In the act, it is presumed to exist until proved otherwise.
The solution to our law is perfectly logical; men do not compel themselves or act in the field of
Right for the sake of it. Furthermore, a reason of good faith and business security compels the recognition of effects.
legal to the declarations of intent, unless it is proven that they suffer from some legal defect that
invalid. Therefore, the existence and legality of the cause is presumed. However, the right of the
debtor must prove that this is not the case.
At the same time, said article provides that the act is valid even if the stated cause is false, if it is based on another.
true cause.
Abstract acts. Abstract acts are those that do not require proof of the existence of the cause for purposes.
of being able to execute them. Once fulfilled, the interested party may begin a process for the restitution of what
given due to an act without cause, that is, null, having to prove the falsehood, non-existence or unlawfulness of the
same.
In the case of money, what is usually done is the deposit of the owed money to the seizure, subject to the results.
of the subsequent ordinary trial, which may result in favor or against the one who claims the lack of cause.
Article 283 of the code states that the non-existence, falsity, or illegality of the cause are not debatable at the act.
abstract as long as it has not been fulfilled, unless the law authorizes it. As can be seen, the rule is the
impossibility of discussing the cause of the abstract act, unless there is an express legal authorization.
The rule is the impossibility of discussing the cause of the abstract act, unless there is an explicit authorization.
contrary legal. The only abstract acts are those established by law: they are the circulating titles and
guarantees on first demand.
The reason for the existence of the abstract business is practical, that is to say, it aims to facilitate the circulation of
certain rights, in order to give the necessary dynamism to commerce. Therefore, it has an economic function.
Necessity. According to article 1013, the cause must exist in the formation of the contract and during its conclusion.
to persist during its execution. The lack of cause results, depending on the cases, in nullity, adequacy, or extinction.
of the contract. Its absence implies, as a rule, the nullity of the act. However, two more options are provided.
which may occur: the adjustment of the contract or its termination.
The adaptation of the contract is a logical solution: to the extent that the contract can be salvaged, there will be
that seeks to preserve it (art. 1066). This would occur in the event of a modification of the conditions provided for
moment of contracting that partially frustrate the purpose pursued by the contracting parties; the adequacy of
The benefits are the reasonable solution.
As for the hypothesis of extinction of the contract, it points to the cause that disappears during the life of the
contract. In this case, it cannot be said that there is nullity, since the flaw does not affect the initial moment of the
celebration of the contract, but it occurs during the contractual process. And in this case, the lack of cause
will lead to the termination of the contract.
Illicit cause. Article 1014 states that the contract is null when:
a) Its cause is contrary to morality, public order, or good customs.
b) Both parties have concluded it for a common unlawful or immoral reason. If only one of them has acted for
an unlawful or immoral reason, has no right to invoke the contract against the other party, but this one can.
to demand what has been given, without the obligation to fulfill what has been offered.
The common goal pursued is contrary to morality and good customs when it contravenes that minimum.
of ethical demands that can be expected from agreements of private autonomy. The contents of morality and the
good practices are receptive to the transformations that occur in society and consequently
purposes that could have appeared censored by the legal system in the past may result in
posteriors exempt from reproach.
Thesis. Although the cause is currently defined and established in our Code, there was previously
discussions on whether the cause should or should not be considered an essential element of the legal act.
Classical doctrine. Domat was the one who established the first theory of what the cause was in the 17th century, his
The conception of the cause is definitely objective: the cause is the purpose of the legal act; when we talk about the purpose...
refers to the material elements that exist in every contract. For example: In bilateral contracts, the cause of the
the obligation of each party is the obligation of the other. And in acts for free, it is the animus
to give, or the intention to benefit the one receiving the generosity.
Anticausalist thesis. Planiol challenged Domat's causalism for being a false and useless thesis.
It is false, she argues, because there is a logical impossibility that in a synallagmatic contract, one obligation
it is the cause of the obligation of the counterparty. Both arise at the same time.
It is useless, because this notion of cause is confused with that of object, and particularly, the illicit cause does not seem
to be something other than the illegal object.
And in terms of gratuitous acts, the notion of cause is rejected as false since it confuses cause with motive; and for
useless because the lack of intention mixes with the lack of consent and without consent there is no
the contract can be perfected.
Neocausalism. The anti-causal thesis is now clearly defeated. But it was fruitful because it allowed for a deeper understanding of the
analysis of the problem and achieve a more flexible and useful conception.
If the binding force of legal acts is exclusively based on the will of the grantors, it is
Of course, the idea of cause is useless: the volitional act alone is sufficient to explain obligation. But mere will,
without a plausible interest that determines it, is not sufficient justification for the validity of the legal act. The act
Volitional, in order to be a source of rights and obligations, must have a sufficient cause or reason for being.
On the other hand, the cause cannot be confused with the object either. The object designates the material of the contract,
legal-economic operation, which is something external to the personality of the parties; the cause is part of
phenomenon of volition.
In gratuitous acts, the cause will be the purpose of the specific motives that inspired the generosity.
In summary, the cause is the immediate and determining end that the parties had in mind when contracting; it is the reason.
direct and concrete of the celebration of the act, and precisely for that reason it stands out for the counterpart, who does not
You can ignore it. Also, one must take into account the remote, subjective purposes, as long as they are integrated.
(expressed or implied) the statement, or known by the other party.
CAPACITY.
Concept. It is an inherent attribute of personality and is defined as the person's ability to be a holder.
of legal relationships.
Legal capacity. Legal capacity refers to the ability to hold rights and duties.
legal, which implies the consequent ability to acquire rights and enter into obligations. The law may
to deprive or limit the capacity of rights concerning facts, simple acts, or determined legal acts. It
always corresponds to moral reasons that protect the public order of our society. And therefore, not
it can be replaced by representation.
This limitation cannot take on the character of absolute as occurred in the cases of slavery and death.
civil.
In terms of contracts, this type of incapacity provides for certain assumptions in article 1002. Since people,
Although they are fully capable, they cannot always contract with anyone else or on certain matters.
objects. Indeed, certain people cannot contract with each other, essentially due to the opposition of
interests that may exist between them.
A) The law establishes two possible regimes to govern the marital property system: that of
community and that of separation of assets. In the latter, as a rule, each spouse retains the freedom
administration and disposition of their personal assets. In the first one, assets are differentiated according to their origin,
in personal and joint property, and rules are imposed on their management and disposition, which must be
divide the mass of joint property into equal parts when the community is extinguished.
Spouses who are under the community property regime cannot contract in their own interest with each other. But, even
In the community regime, there are contracts that can be entered into. In truth, what matters is to determine if
there are conflicting interests or if it can affect third parties. Clearly, the legal prohibition applies
to the contracts of sale, assignment of rights, exchange, or donation. However, there are no obstacles that prevent
they can celebrate, for example, mandate or deposit contracts.
B) The executor, also known as the testamentary executor, who is not an heir, cannot enter into contracts.
purchase and sale regarding the assets of the estates that are under their charge
C) Judges, officials, and legal assistants, arbitrators and others cannot be contracted, in their own interest,
mediators, and their assistants, regarding goods related to processes in which they intervene or have intervened
intervened. Included in the prohibition are the prosecutors, defenders of minors, and experts. The prohibition
it encompasses the impossibility of being assignees of judicial actions that were under the jurisdiction of the court that
integrate.
F) Lawyers and solicitors cannot hire, in their own interest, regarding litigated assets in processes.
in which they intervene or have intervened.
Public officials cannot contract, in their own interest, regarding properties for which they are responsible.
or alienation are or have been in charge. The concept of public official includes the President
from the Nation, the provincial Governors, the ministers of Government, and the public employees. The
the prohibition prevents them from being assignees of credits in which the Nation, the provinces, and the
municipalities are assigned debt.
Finally, those who are prohibited from hiring, in their own interest or that of others, as the case may be,
do it in accordance with special provisions. Contracts whose conclusion is prohibited for certain
subjects cannot be granted by a third party (art. 1001):
A) Parents cannot contract with their minor children, unless it is a pure and simple donation.
made by the father in favor of the younger son (art. 689).
B) Tutors and curators cannot contract with their wards. This is so because it is expressly stated that
They cannot celebrate with them, nor with judicial authorization, the acts prohibited to parents regarding their children.
minors (arts. 120 and 138).
C) Volunteer representatives cannot, on behalf of another, enter into contracts with themselves, whether
on its own account or that of a third party, without the authorization of the represented party (art. 368).
Capacity to act. The capacity in fact is the aptitude that a human being has to act on their own.
same acts of civil life, to personally exercise their rights. The only limitations that may
to impose on this capacity are those that arise expressly from the law or in a judicial ruling (art. 23). This
aptitude is acquired at eighteen years old (art. 25).
Other natural persons (those who have not reached that age) cannot perform legal acts; that is,
they are inept to exercise, modify, or lose a legal relationship, but they are able to be holders of it
relationship. Therefore, the law supplements that ineptitude with the intervention of their legal representatives (art. 26, para. 1),
that is to say, their parents, guardians, or curators, and, in a promiscuous manner, with the Public Ministry (art. 103), who
necessarily participates in all acts that involve the rights of the incapacitated, with the dual purpose of
safeguard their interests and control the legitimacy of such acts.
In other words, the law sanctions this incapacity for the benefit of the incapacitated person and provides for integrating their capacity with
the intervention of the representative.
Individuals yet to be born. Our law considers a human person to be someone who has been conceived (art. 19), regardless of whether...
such conception has occurred inside or outside the womb. From the very moment of conception,
thus, acquires legal capacity.
It is clear that unborn individuals lack the capacity to express their will on their own. This is why they are
absolutely incapacitated in fact or in exercise (art. 24, inc. a), must be represented in legal acts.
by their parents (art. 101, inc. a), or, in the event of their incapacity, by the curator designated for them.
Finally, it should be borne in mind that the rights acquired by the unborn person are only
consolidated (or irrevocably acquired as the regulation states) if it is born alive (art. 21), even if it is a
instant. If, on the other hand, she had been born dead, it is considered that the person never existed.
Minors. The Civil and Commercial Code establishes that a minor is a person who has not reached
eighteen years. Among minors, an adolescent is referred to as someone who has turned thirteen years old (art.
25)
The general rule is that the minor exercises their rights through their legal representatives (art.
26, paragraph 1), that is, their parents or guardians, all of which implies a presumption of their incapacity to act or exercise.
However, the Code itself establishes that if one has sufficient age and maturity, they can exercise.
for the acts that are permitted to him by the legal framework, what is important is to grant a clear elasticity
to the concept of capacity.
A) The minor, even if they are under thirteen years old, can enter into contracts of diminished value.
or small amount. It is presumed that these contracts have been made with the consent of the parents (art.
684).
B) Starting from the age of thirteen, when one becomes a teenager, it is presumed that they have the ability to make decisions for themselves.
of those treatments that are not invasive, nor compromise their state of health or pose a risk
serious in their life or physical integrity. It is established that from the age of sixteen the adolescent is considered
as an adult for decisions concerning the care of his own body.
C) Before turning sixteen years old, a person cannot engage in a trade, profession, or industry, nor can they bind themselves in any other way.
way, without the authorization of their parents, and provided that the requirements set forth in the laws are met
special (art. 681).
On the other hand, starting from the age of sixteen, it is presumed that if one engages in any job, profession, or industry, one is
authorized by their parents for all acts concerning employment, profession or industry, and as long as it
complies with the regulations concerning child labor (art. 683).
D) Any minor can freely practice the profession if they have obtained the qualifying title (when
without this title you cannot practice this profession) to practice it, without needing to have the authorization of your
parents (art. 30).
It is a correct solution because if the person is qualified to practice a profession, it is unreasonable to impose
another requirement (such as parental authorization) for it to be exercised.
The regulation itself adds that it can manage and freely dispose of the assets acquired with the proceeds of
their professional exercise and being on trial in civil or criminal matters for actions linked to them.
E) The act of getting married emancipates the minor. The emancipated minor is a capable person.
with restrictions for certain acts (art. 27), which allows us to conclude that their capacity is not equal to that of
the adults. The general principle is the opposite.
The emancipated person cannot, not even with judicial authorization (art. 28):
The judge can restrict the ability of a person over thirteen years of age who suffers from certain acts.
an addiction or a permanent or prolonged mental disorder of sufficient severity, provided that it deems that
from the exercise of their full capacity may result in harm to their person or their property (art. 32). Along with the
decreed restriction, must appoint one or more supporting persons, and indicate the modality of their action and the
validity conditions of specific acts subject to restriction (art. 38)
Only by exception, when the person is absolutely unable to interact with their
environment and express their will in any way, means, or appropriate format, and the support system results
Ineffective, the judge may declare incapacity and appoint a curator.
Therefore, the two assumptions must be differentiated: the person with restricted capacity and the person who is incapable.
The person with limited capacity is capable in fact, as they can exercise their rights on their own, with the
limitations imposed on him by the court ruling (art. 23). In contrast, the person declared incapacitated by ruling
judicial, is a de facto incapable, but always to the extent provided in that judicial decision.
Inhabilitated. Those who are inhabilitated due to profligacy in the management of their assets may expose themselves to their
spouse, cohabitant, or their minor children or those with disabilities (disability is an alteration
permanent or prolonged disability, physical or mental, which implies considerable disadvantages) to the loss of
heritage.
Prodigality involves incurring useless, meaningless expenses, disproportionate to the
the needs of the person and the magnitude of their fortune. The rule does not require an actual loss of wealth;
It is enough that there is a supposed imminent danger that has not yet occurred.
The consequence of the declaration of disqualification is the appointment of a support, whose function is to assist.
disabled in the granting of acts of disposition between living persons and in other acts that the judge establishes in
the sentence.
Convicted persons. The Penal Code stipulates that a sentence of imprisonment or detention for more than three years carries as
the absolute disqualification is inherent and involves, among other things, the deprivation of the administration of one's assets
and the disposition of them by acts between living persons, as long as the penalty lasts. The convicted person will be subject to guardianship.
established by the Civil Code for the incapacitated (art. 12).
NULLITIES.
Nullity of the contract. Article 1000 states that once the nullity of the contract entered into by the person is declared
incapable or with restricted capacity, the capable party has no right to demand restitution or reimbursement of
what has been paid or spent, except if the contract enriched the incapable party or the party with restricted capacity and in
how much it has enriched.
This contradicts Article 390, which provides for the effects of the nullity of legal acts in general. Which
It provides that the normal effect of nullity is that the contracting parties must return everything they have received.
received as a consequence of the annulled act. But in matters of contracts, this is not regulated in this way,
to discourage capable people from contracting with incapable people, as a kind of punishment.
It is clear that when the incapable person, or the person with restricted capacity, still has in their possession what
received it or would have transformed it in such a way that its benefit would be evident, one could not deny action to the
part capable of claiming the thing or its value, otherwise it would validate an unjust enrichment without
cause, what is unjust, all the more so since, even, the capable party may have contracted in good faith,
ignoring the incapacity that weighed on the other.
If the nullity is absolute, it cannot be cured by the confirmation of the act, nor by prescription, since it exists in
virtue of protecting public order. On the other hand, if it is relative, it is done in the interest of certain people, it can
to be made right by the confirmation of the act and by prescription.
Legitimacy to request nullity. Article 388 establishes that those who are authorized to request nullity of
the contracts that suffer from relative nullity, the person for whose benefit it is established.
It is clear that if it is a contract entered into by an incapacitated person or by a person who has their capacity
restricted, the legitimacy is held by the protected person and their legal representatives and supporters. The party that
they had the capacity to hire cannot as a rule claim nullity, unless it is in good faith and there has been
suffered significant harm.
But if the contract suffers from absolute nullity, it can be claimed, in addition to those mentioned.
previously, the Public Ministry and any interested party, as long as they do not invoke their own negligence
to obtain a benefit. Moreover, the judge must declare it ex officio if the nullity is obvious (art. 387).
The privilege granted to individuals with incapacity or restricted capacity does not apply when the act is
has originated from deceit exercised by her over the other party. In this line, article 388 states that the party that
acted with lack of capacity for the act, but acted with intent, cannot claim nullity.
It deals with a general principle that has an evident moralizing content: if the incapable has acted with intent, then not
a nullity action should be granted.
In the Velez Code, 2 exceptions are made to the exception currently provided in article 388. Where the
An incapable person can still request the annulment of the contract even if they acted with deceit when:
1. If it concerns a minor. However, the doctrine limited the concept of minor, as from a certain
age has discernment for the performance of certain acts. Therefore, a position excluded as
less than those over 10 years old considering that from that age they had discernment for the
illegal acts (in this case, intent) and another position holds that older minors should be excluded
at the age of 13, considering that they already possess discernment for lawful acts (in this case, an act
legal).
2. If the deceit was based on the concealment of incapacity. Here the doctrine intended to limit, in turn, the concept.
of concealment. Currently, if the word "obró" in art. 388 is interpreted both as the commission of
malice, as well as the fraudulent omission, the incapacitated person could not request nullity in either case. In
change, if that word is only interpreted as commission of fraud, that is, a fraudulent action, the
an incapable person may demand nullity if they acted with fraudulent omission.
Notion. To interpret is to give or attribute a certain meaning to something; or to explain or clarify the meaning of
something, especially an unclear text.
In a contract, interpreting is nothing more than assigning meaning to the will of the contracting parties at the time of
to celebrate it. However, it is necessary to clarify what the will of the contracting parties is, and for this there are various
theories.
Theory of intimate will. Savigny. It is stated that in the interpretation of contracts, one must seek to
to unravel or determine what was truly intended by the parties, that is, what each one understood that
they were the rights and obligations arising from the contractual relationship.
However, one can immediately notice the tremendous risks that accepting this stance generates.
truly dear to the contractors, to the extent that it is not expressed, it becomes unattainable to
third parties, resulting in the consequent legal insecurity that is triggered.
Theory of the declaration of will. In the interest of legal certainty and as a way to protect the
trust placed in the pledged word, what is important is what the parties have expressed at the moment of
to hire.
What is declared is extremely important, as it is what the counterparty receives and on which it is obligated.
reciprocally, but at the same time there must be a will to commit. Because when one speaks of the declaration
of the will, both the declaration and the will are spoken of; better yet—in truth—one speaks of the
declared will.
Question of fact or law. To maintain that the interpretation of contracts is a matter of fact.
It is important to affirm that what should be sought is to know the intention of the parties. In other words, it is about
a matter of proof: it must be demonstrated what they have wanted.
On the contrary, to state that the interpretation of contracts is a matter of law means asserting that
The important thing is the meaning that words typically have, according to common language and usage.
and customs of the place. In other words, the objective meaning of the statement made must be determined,
the scope that she has, in a manner analogous to what happens with the interpretation of the law.
Rules of interpretation. The rules of interpretation constitute a system of mandatory rules and
imperatives that govern the contract, considered in its entirety. Consider the contract in its entirety.
It is celebrated that not only is an interpretation sought, but that all the rules must also be interpreted.
(validating, supplementary or corrective) that are applicable to that contract. The rules have particular
importance for the judges (or if applicable, for the referee) who will have the responsibility to resolve the
proposed conflict, in accordance with them.
General principle of good faith. The guiding criterion in contract interpretation is the principle
general principle of good faith, to which all other interpretative rules must be subordinated.
The general principle of good faith is a legal norm that imposes on individuals the duty to act.
legally in legal traffic, adjusting behavior to the archetype of social conduct demanded by the
current ethical idea. It is also important to demand a positive attitude of cooperation and awakening from individuals.
confidence in one's own statements, keeping one's word. And as a consequence of this, it operates
as a limit to the exercise of subjective rights
This principle has been highlighted by the CCCN in different parts. Indeed, the Preliminary Title incorporates it in
Article 9 (rights must be exercised in good faith) with a clear intention that it governs all
legal relations, without any exception. In turn, article 961 states that contracts must be concluded,
to be interpreted and executed in good faith. Finally, article 1061 establishes that the contract must be interpreted
in accordance with the principle of good faith.
Ultimately, interpreting a contract in good faith means interpreting it with the understanding that the contracting parties
they should behave towards each other loyally, sincerely and without reservations, discarding any use of the
powers obtained with an unnecessary rigor that could cause unjust harm to the counterpart
Common intent. Article 1061 establishes that the contract must be interpreted according to the common intent.
of the parties. It is important, then, to interpret the contract according to the common intention of the
contracting parties, that is, the common intention to bind themselves and to acquire rights, and not the individual intention of
each contracting party or their particular personal purpose
This search to uncover the common intent of the parties must be careful not to harm the
third parties, who could be affected by the culpable acts of the contractors.
Restrictive interpretation. Article 1062, first part, states that when by legal provision or
conventional establishes expressly a restrictive interpretation, it must adhere to the literal meaning of the
terms used when expressing will. That is to say, no broader meaning can be assigned than the
that arises from its own textual meaning
Meaning of the words. Article 1963, which states that the words used in the contract must
to be understood in the sense given by general use; that is, the common meaning of words prevails
about the technical sense. The average man uses words in a common and not technical sense, even—sometimes—
inappropriately, although in accordance with a vulgar usage, and it is not possible that cultural differences or
negotiating powers are reaffirmed through the prevalence of technical sense to the detriment of the legal weak.
But, of course, if the contract referred to a technical subject and both parties were competent in it, it must
It is understood that the words used have been taken in the literal sense in which they are used in that
specialty; the same happens when the law itself, the agreement of the parties, or the customs and practices of the place
celebration, they attribute a specific meaning to the words. It should be added that these same rules apply to
the behaviors, signs, and non-verbal expressions through which consent is manifested.
Contextual interpretation. Contractual clauses must not be interpreted in isolation but rather together.
through the others, and attributing the appropriate meaning to the whole act (art. 1064). That is, each
the clause must be interpreted in relation to the other, in an integral manner.
The solution is absolutely logical since the contract is an inseparable and indivisible whole. Furthermore, they are the
the same people who forced themselves, so it is absurd to think that each idea can be separated, every time
that the clauses are linked one to another.
However, this systematic interpretation is not applicable to contracts with pre-drafted clauses, because
The bulk of the contract, being pre-drafted, reflects the wishes of only one of the contracting parties.
Conduct of the parties. Article 1065 establishes that when the meaning of the words is interpreted
contextually it is not enough, it must be taken into consideration... b) the behavior of the parties, including the
after its celebration. If the parties have behaved in a certain way, it is because they believed that
they fulfilled their obligations and exercised their rights as agreed.
Regarding the conduct prior to the celebration of the act, on one hand, if what was agreed is different from what was done with
previously, this shows that the parties agreed on something different, so the previous behavior does not
it is relevant. However, when the contract has left some gaps, those voids can very well be filled.
with the previous behaviors of the parties, which form the basis of understanding that were at the time
considered to enter into the contract.
This is justified by the theory of one's own acts, where one cannot argue against one's own actions.
that is to say, to maintain a circumstance different from the one the same person executed.
Circumstances of the case. Article 1065 also establishes that when the meaning of the words
interpreted contextually is not enough, it must be taken into account... a) the circumstances in which it
celebrated, including the preliminary negotiations.
To interpret a contract, it is necessary to consider the facts produced at the time of its celebration.
existing situation at that moment, which ultimately reflects the intention of the parties at the time of contracting.
At the same time, it is important because currently there is a great exchange during negotiations.
proposals made by electronic means, which denote the common intent that the parties had at the time of the
drafting of the contract.
Legal nature and purpose. Article 1065 establishes that when the meaning of the words interpreted
Contextually, it is not enough; the nature and purpose of the contract must be taken into consideration...
For this, it is necessary to qualify the contract, which is to establish its legal nature, through the
placement of the same within a certain type. It is necessary since each contract has a function
distinct social economy. Therefore, it is necessary to know which specific contract regulations will apply to it and to
likewise, what analog figure norms apply subsidiarily in the absence of a norm.
The name given by the parties is of scant importance, because what is relevant is what their clauses
They denote. It is the judge who will have to qualify it legally.
On the other hand, to interpret a contract it is necessary to understand the practical and economic purpose it has.
count by parts. This is so because the contract is the appropriate means for them to achieve the desired end,
With this, it is noted that taking into account the desired purpose, we can give the appropriate meaning to the contract.
Conservation of the legal act. Article 1066 provides that if there is doubt about the effectiveness of the contract, or of
any of its clauses must be interpreted in the sense of giving them effect. And it adds that if this results from several
Possible interpretations should be understood with the most appropriate scope in relation to the object of the contract.
It seems absurd to think that the parties have entered into a legal transaction aimed at not producing effects.
how it would result from the possible nullity. The reasonable thing is that they have wanted to produce legal effects, and from there the
validity that must be presumed.
The principle of coherence or trust. Article 1067 establishes that the interpretation must protect the
trust and loyalty that the parties owe to each other, making contradiction with a
legally relevant conduct, prior and characteristic of the same subject.
It is about ensuring that the contractual interpretation takes into account the trust that one of the parties has inspired in
the other, with its behavior, rejecting its contradiction. It is about the reception of the theory of acts
own that, on another occasion, we have defined as the rule of law, derived from the general principle of the
good faith, which penalizes as inadmissible any lawful but objectively contradictory claim regarding the
previous behavior carried out by the same subject.
Dark expressions. If despite the interpretative rules seen up to this moment, doubts persist,
It will be necessary to differentiate depending on whether the contract is gratuitous or onerous. In the first case, it should be interpreted in
the least burdensome sense for the obligated; in the second, in the sense that produces an equitable adjustment of the
the interests of the parties.
Principle of equity. Article 218, section 3, of the repealed Commercial Code provided as a guideline
interpretative to the rules of equity, which has been omitted in the Civil and Commercial Code.
Beyond this suppression, it seems unquestionable to us that equity continues to be a rule of interpretation.
contractual. Equity is a concept linked to the moral idea of the contract. To put in
It emphasizes the importance of interpreting the contract with fairness; however, it does not mean to promote that—so
pretext of equity—contractual obligations are modified. Review the contract under the imprint of the
equity is only acceptable if it violates public order, morality, or good customs
Integrative interpretation. Often it becomes necessary to fill in the gaps of the contract, those which
Inexorably, they exist since it is impossible for the parties to foresee all the contingencies that may arise.
to take place, and for that, one must resort to what is called integrative interpretation.
Article 964 establishes that the content of the contract is integrated with:
a) the mandatory rules, which apply in place of the clauses that are incompatible with them;
b) the supplementary rules;
c) the uses and practices of the place of celebration, as far as they are applicable because they have been declared
mandatory by the parties or because they are widely known and regularly observed in the field in which
the contract is celebrated, except that its application is unreasonable.
The integrative interpretation reflects that the contract is made up of clauses expressly agreed upon by
the parties, by imperative or non-disposable clauses that cannot be evaded by them, by clauses that
They are derived from supplementary legislation (legal clauses that could have been truly known by the
parts, having omitted to mention them in the contract precisely because of their subsidiary application, or that
they could be ignored although they are fully applicable by legal authority) and by uses and practices. All
these clauses have legal value. It is not just a matter of interpreting exclusively the written clauses in
the contract.
In cases of partial nullity, the judge must integrate the contract to give it full effects, this integration that
it will be done by applying mandatory rules in place of the null ones, application of rules
supplementary, incorporation of uses and customs, and presence of the general principle of good faith.
There are assumptions in which the law itself requires certain clauses to be rendered void and the contract to be integrated with the
imperative norms that she imposes.
The Civil and Commercial Code states that the regulations governing consumer relations must be applied.
and interpreted in accordance with the principle of consumer protection and that of access to sustainable consumption.
And it adds that in case of doubt about the interpretation of this Code or the special laws, the most prevails.
favorable to the consumer (art. 1094).
Adhesion contracts. (i) Ambiguous clauses must be interpreted in a manner unfavorable to the party that drafted them.
drafted (art. 987). The rule protects the adherent, who has no other option but to adhere to the drafted proposal.
On the other hand or not to hire, and for this reason it is logical that whoever wrote the contract did so without clarity, with
ambiguity or abusive terms, will take responsibility for the undesirable consequences of such wording. (ii)
Special clauses prevail over general ones, even if the latter have not been canceled (art. 986).
Handwritten or typewritten clauses prevail over printed ones, as they constitute clauses
special. (iv) In standard contracts, the incorporated clauses prevail over the pre-existing ones.
Related contracts. Related contracts—meaning that they are linked to each other because they were concluded
in compliance with the program of a global economic operation—must be interpreted by the ones
through the others and assign them the appropriate meaning to the entirety of the operation, its global function, and the result
persecuted (art. 1074).
It is necessary to emphasize that the contracts that make up each group cannot be interpreted in isolation but rather,
on the contrary, together with the other contracts that make up that group, since all of them have in
with a single objective: the comprehensive development of the business. Therefore, necessarily, these related contracts
they propagate their effects, one to another.
FORM
Concept. Contractual consent is a statement of will, and there are different ways to
to manifest that will (oral, written, unequivocal signs, tacitly or even in limited cases silence).
These different ways of manifesting will are, in fact, various forms that the law considers as such.
effects.
The form of legal acts was defined by Article 973 of the Civil Code of Vélez as the set
of the prescriptions of the law, regarding the formalities that must be observed at the time of the formation of
legal act.
Principle of freedom of forms and exceptions. All contracts have a form, as all are
externally expressed by some manifestation of will, which constitutes consent. But not all the
Contracts are formal, meaning that not all require a specific form of manifestation of will.
It is thus that the principle of the freedom of forms prevails; consent is enough for
the contract shall have full binding force. Indeed, unless the law specifies a certain form
For the expression of will, the parties may use what they deem suitable (art. 284).
Formal contracts are those whose validity depends on the adherence to the form established by law.
Within the category of formal contracts (art. 969), it is necessary to differentiate the contracts whose form is
required for evidentiary purposes (ad probationem), for those others in which the formality has a character
constitutive or solemn. Even solemn forms (also called ad solemnitatem) are divided into
absolutes and relatives.
The failure to comply with the absolute solemn form results in the nullity of the act performed. In other words,
words, the absolute solemn form is essential to the validity of the act, for its omission deprives it of all its
effects, no matter how unequivocally consent is proven.
In contrast, the failure to comply with the relative solemn form will not result in the nullity of the act but will allow
to demand compliance with the form established by law. As noted, the omission of the solemn form
relative prevents considering the contract concluded but will serve as a contract by which the parties
they are required to comply with the established formality. Therefore, it triggers the birth of the obligation to fulfill
with the legal form and the right to demand it judicially.
Finally, when it comes to a probative form, it only has significance for the purposes of the proof of the
juridical act. That is to say, all effects of the juridical act (full effectiveness) will proceed, but the form will serve purposes.
evidence in case of a conflict between the parties.
Advertising as a form. Registers are thus the great means of modern advertising. But they are not the only one.
The tradition of things is also, in our Law, a means of publicity.
The registration in the Registers has the following effect: the act is enforceable against third parties. The unregistered contract
(when the law requires that registration, as occurs for example with the purchase and sale of real estate) has full
validity between the parties, but it is not enforceable against third parties.
But there are times when the law imposes form as an essential requirement of validity, not only regarding
third parties, but only in relation to the same parties: while the act has not been registered, it is considered non-existent. In
in this case, the registration of the act has constitutive value, just as it occurs with the sale contract
automobiles.
Agreed form. The form of contracts can result from the law or the will of the parties.
Thus, for example, our Code establishes that contracts must be granted by public deed when
the law or the agreement of the parties so provides (art. 1017, inc. d). Even the contracting parties are authorized
to agree on more demanding forms than those established by the law itself (art. 284). Such would be the case of a
informal contract, when, by the will of the parties, it is agreed to be executed by public deed.
Omission of the public writing. Effects. The consequences of the omission of the solemn form depend on
that it is required as an absolute or relative solemnity: in the first case, the act will have no effect;
the second, the interested party, shall have the right to demand the granting of the legal act in accordance with the form
legal.
When the public deed is required as a relative solemnity, as long as it is not signed, the parties that
they have entered into a contract by private instrument, the fulfillment of the obligations cannot be claimed
derivatives of the definitive contract, but they can demand the granting of the notarization, which once fulfilled the
The contract will produce all its effects.
But if one of the parties refuses to execute the deed, the other can initiate the so-called lawsuit for execution of the deed. And if, to
despite being legally required to fulfill the obligation undertaken, the party ordered to grant it is
remittance, the judge will do it on their behalf, as long as the counter-performance has been fulfilled, that is to say
ensured its compliance.
TEST
Concept. It is so closely linked to form that it has become a classic to treat one as
continuation of the other. The form constitutes the manifestation of will, it is a requirement for the formation of
contract.
The evidence, on the other hand, is related to the means of proving the existence of the contract, whatever it may be.
it became its form.
The close linkage between the two derives mainly from the circumstance that the forms in law
Modern ones are mainly established with the aim of facilitating the evidence, whether for the parties or for third parties.
There are two evidentiary systems: the legal evidence and the free conviction. According to the first, only...
to accept as sufficient evidence what the law indicates; according to the second, the judge can admit everything
test genre and will consider sufficient those that, according to their science and conscience, are sufficient to
to consider the facts as proven
The evidence in the Civil and Commercial Code and in the procedural codes. Everything related to the admissibility of
a means of proof and its evidentiary effectiveness is a matter of the Civil and Commercial Code because it is linked
with the recognition of substantive rights; on the other hand, the way of producing evidence is a matter
specific to local codes.
Burden of proof. This falls upon whoever alleges the fact on which they base their action or exception. In the
modern law deprives the concept that litigants have a duty of loyalty that obliges them to cooperate in
the measure of their possibilities in clarifying the truth and, consequently, providing the evidence
forwarded to that end, that are in their possession. And sometimes the judges have declared that the indifference or inertia of
the party may constitute a presumption against them.
Means of proof. According to article 1019, contracts can be proven by all suitable means to
to reach a reasonable conviction according to the rules of sound judgment, and in accordance with what the laws provide
procedural, except for legal provision that establishes a special means.
Contracts can be proven by all suitable means, unless a law provides a special means. In
in general, contracts can be proven:
By public instruments. That is to say, by those instruments that enjoy authenticity, because the
public official within the limits of their powers and territorial jurisdiction and because it is signed by that
public official, the parties, and if applicable, their representatives.
Test of formal contracts. If the formality established by law is merely required for the purposes
evidence, the contract can be proven by other means. Thus:
The test will not be necessary by legal means when it is impossible to obtain it. It will also not be necessary
when there is a beginning of instrumental proof. Nor when there has been a start of execution; that is, when
one of the parties has received any benefit and refuses to fulfill the contract. Not even when the matter concerns
about the vices of error, deceit, violence, fraud, simulation, or falsity of the instruments in which they are recorded.
in these cases, any means of evidence is accepted, including witnesses.
In formal solemn contracts, they can only be proven with the instrument that certifies compliance.
from legal formality. When the formality is solemn, more aggravated, it cannot have the same standard of
requirement of proof when the formality is merely evidentiary. With greater solemnity, greater
evidentiary requirement.
The principle of instrumental evidence. Any instrument that is considered a principle of instrumental evidence...
from the other party, from the cause or from the interested party in the matter, to make the existence of the
contract. The instrumental proof includes any public and private instrument, any document and to
Any particular unsigned instrument, therefore includes digital documents and emails.
electronics, among others.
For there to be a principle of instrumental proof, it is therefore necessary: a) that the instrument emanates from the other
party, their cause, or interested party; it does not need to be signed by them; b) that makes the contract plausible.
It is enough for these requirements to converge to make any kind of evidence viable, including witnesses.
Private instrument that alters the content of a public instrument. The clauses of a contract
celebrated by public instrument, they can be altered by a private instrument, the so-called
counter-document, but this alteration will only have effect between the parties and cannot be opposed to third parties. It is
It is only natural that this is the case because otherwise, the good faith of the third party who enters into the contract could be surprised about the
basis of the public instrument that is exhibited to you and ignores the alteration made privately.
This rule should also apply to subsequent public instruments that modify a previous one: they do not have
effects against third parties unless the content of the second instrument is annotated marginally in the
first or that is properly registered in the corresponding registry.
Testimony against the private or public document. To assert the testimonial evidence against a
private or public instrument, it must be considered what the evidentiary value of such instruments is and the
way of questioning them.
The public instrument provides full proof regarding (i) that the act has been carried out, the date, the location, and the facts.
that the public official states as fulfilled by him or before him until it is declared false in a civil trial or
criminal, and (ii) to the content of the statements regarding conventions, provisions, payments, acknowledgments and
statements of facts directly related to the main object of the executed act, until they
produce contrary evidence.
The evidentiary value of private instruments must be assessed by the judge weighing, among others
guidelines, the consistency between what happened and what was narrated, the technical precision and clarity of the text, the uses and practices
of traffic, the preceding relationships, and the reliability of the supports used and the procedures
techniques that apply depend on the instrument in question.
Payment proof. Payment (fulfillment of any obligation, whether to give, do, or not do) can be proven
by any means, unless from the stipulation or the law it is provided for the use of a specific one, or
covered with certain formalities.
The law accepts all means of evidence; however, in the absence of a receipt, the evidence must be assessed with discretion.
rigorous. In any case, our courts have applied the principle of freedom with utmost caution
probationary and they have only dispensed with the receipt when the evidence produced is unequivocal.
Limits to the evidential value of the receipt. The law provided that payments exceeding a thousand pesos, made through
non-financial or banking media would lack value both between the parties and in relation to third parties. The
the pursued objective is fiscal; that is, it requires banking the economy and, at the same time, it mandates that all
Bank deposits and withdrawals must pay a tax equivalent to 0.6% of the value at stake.
However, it is not possible to argue that the payment of an amount greater than one thousand pesos, in cash, lacks
value, despite having been given the receipt. The payment is valid and cancels the obligation, otherwise it would support a
assumed unjust enrichment of the creditor. It only empowers the National State to promote the action for
collection of unpaid tax; but it cannot be asserted that the payment of the principal obligation lacks value
between the parties and regarding third parties due to the failure to use the financial or banking route.
Modes of testing.
a) Documentary evidence. This evidence encompasses all the instruments we have referred to.
prioritization.
b) Confessional evidence. The confession is the decisive and complete evidence. This evidence encompasses different types of
confession. The judicial confession, usually provoked by calling the opposing party to absolve.
positions under oath to tell the truth; but it can also be spontaneous. The extrajudicial confession has
the same value as the judicial as long as it is credibly accredited.
c) Testimonial. In societies with underdeveloped popular culture, testimonial evidence has always had
a first-line importance. The extent of illiteracy made the written test impractical for the
ordinary business of life.
Today there is a marked distrust regarding this test. The people who want to connect with each other through a
contract, they have at their disposal a comfortable and excellent means of proof, which is the private instrument. It is
It is logical, then, that for reasons of legal security, the law requires that contracts be formalized.
they cannot be tested exclusively by witnesses.
But all kinds of evidence will be admitted, including that of witnesses if it pertains to formal evidentiary contracts, and
media the impossibility of obtaining proof of having fulfilled the formality, or if there is a principle of
instrumental test or may begin execution.
d) Legal or judicial presumptions. Presumptions are signs that allow inferring with a certain degree of
certainty, the truth of a fact or a contract.
Presumptions can be legal or judicial. The former consist of the law, given certain facts,
it also infers determined consequences. These assumptions may allow contrary evidence, or not.
admit her. But they are nothing more than rules that shift the burden of proof.
Judicial presumptions are indications that, freely assessed by the judge, form his/her
conviction of the truth of a fact or legal act. Generally, a single indication is not enough; there must be.
various and coincidental. These presumptions do deserve to be classified as means of proof.
e) Other means of proof. Among them, judicial recognition or ocular inspection, that is, the examination
directly done by the judge of certain facts or of the place where they occurred; the expert evidence, consisting of
the report of experts or specialists in different fields; or the evidence of reports that can be provided by institutions
public and private regarding matters related to their activity or functions.