According to article N°183 of the Law, a contract is: one or more than one person versus one or more than one person committing to something which is approved by them.
With each contract, a legal relationship is made which bounds both parties to keep up with their obligations.
The legal meaning of agreement is somewhat different from its common meaning. In law, the term “agreement” refers to certain agreements (contracts such as trade contracts, rent contracts, mortgage contracts, advocacy contracts, guaranty contracts, partnership contracts, and marriage contracts, the conditions of which are stated in the law). However, the term “contract” refers to any kind of contract (specific or unspecific).
The agreement between two or more people is the inseparable part of the definition of contract. For instance, when a house is being sold, two people agree that one (the seller) is selling their property to the other (the customer/buyer) who will in turn pay an amount of money (transaction) for it.
According to article N°190 of the law, in order for each contract to be valid, the following conditions must be true:
- Intent and satisfaction of both parties;
- Qualification of the subject of contract;
- A specific subject which is being dealt;
- Direction legitimacy.
As can be seen, intention and internal satisfaction of both parties’ in the transference of wealth or doing something is enough for a contract. When two parties choose to agree on something by their own free will, they are bound to heed it, and the contract will be valid for their successors or replacements as well, without need for any formality.
As defined above, most contracts are closed with satisfaction from both sides, as opposed to protocol contracts which are decreed by the law. A ceremonial contract is one in which the declaration of consent requires a specific formality and unless it is held, the contract has no legal influence. A clear example of this type is the trade of registered properties, the transfer of which requires special legal formalities.
When bounding a contract between individuals, their qualifications are of great importance. These include: age, intellect, not being prohibited from making contracts. Also, there is the possibility that another person would set the contract as a representative or lawyer of the actual person involved in the contract. In this case, presentation of a letter of delegation becomes important and its number and details must be mentioned in the contract.
We strongly recommend you to be aware of all the possible aspects, probable risks and obligations that will follow before you close a contract. To do so, you can consult a lawyer who specializes in that field, so that you would not lose anything in that contract.