A contract is a legal agreement between two or more parties that produces economic and legal effects. Traditionally defined as a bilateral transaction, contracts bind participants to specific terms under potential legal sanctions. They encompass a variety of agreements, from economic exchanges to personal arrangements such as marriage. O law[1] Modern contract law recognises that valid contracts must have economic value and meet legal requirements, with enforceability being a key distinguishing factor. Historical development shows contract law evolving from rigid Roman formalism to more flexible interpretations, influenced by canonical and liberal philosophies. Contemporary understanding recognises that contracts can exist even with certain defects, such as agreements involving minors or imperfect expressions of will. The concept reflects wider social and economic interactions, balancing private autonomy with the regulatory interests of the state. State[2].
Note: For other meanings, see Contract (disambiguation).This page or section is written primarily from the perspective of Brazilian and may not represent a worldwide view of the subject. |
In a broad sense, a contract is an economic transaction between two or more people. In this sense, a contract is an economic exchange, aimed at the circulation of wealthbeing synonymous with the concept of business. From the point of view of lawA contract is the legal formalisation of an economic transaction, formalisation understood as a legal instrument that binds the contracting parties to the commitments they have made. Once a contract has been concluded, the parties are bound by its terms, under penalty of a legal sanction in the event of non-compliance. A contract can therefore be defined as a legally enforceable agreement of wills. The legal figure of the contract is presented as a way of making the legislator regulate economic exchanges and orientate them according to political criteria. This is why each legal system has different rules on contracts, as well as each other. economic system will also present different shades of contract law.
In a classical view of contracts, influenced by the ideology liberalThe purpose of contract law is to impose rules for the proper functioning of the market, thus preventing commercial exchanges from being entirely exposed to unforeseeable events or to the mere arbitration of the parties. The function of contract law, therefore, is to create duties for the parties in order to limit their behaviour, curbing a set of attitudes that are harmful to the market. For this view, the law should limit itself to creating means to guarantee the enforceability of the contract, regardless of its content. More recently, with the retreat of classical liberalism, the doctrine began to discuss other contractual purposes, more geared towards the community, such as the social function of the contract.
The law sees the contract as a legal businessThis means that the agreement must fulfil certain legal requirements in order to be formed, considered valid and take effect. There is no uniformity on the matter, with each piece of legislation presenting its own formal requirements. There is a strong tendency among jurists to consider as a legal contract only agreements of will that have a property content. There are, however, those who believe that every agreement of will protected by law is a contract, and that it is important to say that figures of affective value and not property, such as the marriage and divorceThere is also a debate as to whether agreements concluded by two individuals or private law legal entities - commonly referred to as administrative contracts - are also considered contracts. There is also debate as to whether only contracts entered into by two individuals or legal entities governed by private law would be considered contracts, or whether agreements entered into by legal entities governed by public law - commonly referred to as administrative contracts - would also fall into this category.
Contracts that do not comply with legal formalities will be considered non-existent or invalid, depending on the defect in the specific case. If they are non-existent or invalid, they are ineffective and have no effect. A valid and effective contract, on the other hand, is legally enforceable, which means that its breach can be brought before the Judiciary through a court action. legal actionThis may result in the imposition of a do or don't on one of the contracting parties, or the payment of a fee. indemnity for breach of contract.
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