Published on: 12 January 2023
Civil contracts are an agreement between two or more voluntary parties that creates or transfers rights or obligations. In other words, civil contracts are used to enforce the performance of a certain thing or action. Such cases are governed by the civil code of the contracting country.
The subject matter of the contract must be legal, possible and certain, and the parties must not be required to agree otherwise. This part adds conditions or services that both parties must fulfil, depending on what is signed. For this, a civil lawyer is the best expert who can advise you.
Who can make a contract?
If we talk about civil contracts, we only refer to natural persons and not to legal persons, as there are other types of documents for contracts with companies. In general, a person who can enter into a contract must have the legal capacity to execute the contract must be of legal age, i.e. at least 18 years old, and in the worst case, if he or she is a minor, a parent or representative is required. This also applies to independent minors.
First of all, when entering into a contract, there must be an agreement between the parties, this agreement must be free and voluntary, i.e. without coercion, otherwise the agreement may be declared null and void.
It is important to note that the conclusion of the contract between the participants creates obligations and rights.
What are the characteristics of a civil contract?
- There is the consent of the parties concerned, which is based on the principle of free will.
- The validity of a contract creates obligations and rights for one or both parties.
- The form of the contract can be oral or written. In the case of an oral contract, there must be one or more witnesses to back up what is said.
- The content of the contract consists of privately decided rules and agreements, which may give rise to contractual liability if they are not followed.
- By contractual liability we mean an obligation or a requirement to demand performance in disregard of previously agreed rights or obligations.
Contractual performance is a legal rule that states that the parties are obliged to comply with the terms agreed to enter into a contract.
What is contract performance?
A contract is a vested promise, the observance of which is obligatory, so that laws exist to protect and defend the agreement established in it, to make its observance possible. Enforcement of the contract means that one party fails to fulfil the obligations arising from the contractual obligations, and the other party demands the fulfilment of the acquired obligations. In order to demand performance of a contract, extrajudicial means can be used to require one of the parties to fulfil its obligations under the contract.
The out-of-court route is the procedure for making an amicable claim against the party in breach of contract. This is done by means of a letter that attempts to resolve existing differences with the other party. If out-of-court procedures fail, mediation or court proceedings may be necessary.
Types of civil contracts
- Contract agreed by both parties; contracts that are completed by mere consent, such as an employment contract that recognises an employment relationship without a contract. For employment contracts it is best to consult an labour lawyer.
- Unilateral contracts; one party is bound and the other party is not bound. For example, in the case of a loan contract.
- Free contracts; only one side benefits. An example of this is a donation contract.
- Onerous contracts; in this case both parties gain, they have reciprocal obligations and economic advantages.
- Primary contract; a contract is primary when the contract does not require another contract to exist, such as a lease.
- Ancillary contract or also called a guarantee; in this case, it requires another contract to exist.
- Real contract; in addition to the consent of the parties, it is necessary to deliver something to complete them.
- Solemn contract; it is necessary to comply with certain formalities prescribed by law, such as mortgage contracts.
- Consensual contracts; where one party agrees to do something that is consistent with what the other party wants to do.
- Random contract; in uncertain situations, the timing is contingent. It should be noted that some of these types have a sub-type where other types of contracts can be found, such as housing, garage, car lease, sale and purchase contract, swap contract, licence transfer, matrimonial transfer and long-term contracts.
- Bilateral contracts; in this type of contract, both parties agree. For example, in a sales contract, one party agrees to deliver something and the other party agrees to pay for it.
In addition, the following elements are necessary for the design of a civil contract to run smoothly: promissory notes, declarations and statements of the parties, form of payment, term, security, penalties, confidentiality, form of contract drafting, jurisdiction, etc.
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As an enthusiast and expert in the field of civil contracts and legal matters, I can confidently dissect the key concepts discussed in the provided article published on 12 January 2023. My depth of knowledge extends beyond the basics, encompassing the intricacies and nuances of civil contracts and the legal framework surrounding them.
1. Civil Contracts:
- Civil contracts involve agreements between voluntary parties that create or transfer rights and obligations.
- Governed by the civil code of the contracting country.
- The subject matter must be legal, possible, and certain.
2. Parties to the Contract:
- Only natural persons can enter into civil contracts.
- Legal capacity and age requirements (at least 18 years old) must be met.
- Minors may require a parent or representative to enter into a contract.
3. Agreement and Consent:
- A valid contract requires free and voluntary agreement between the parties.
- Coercion can render the agreement null and void.
4. Characteristics of Civil Contracts:
- Consent based on the principle of free will.
- Creates obligations and rights for one or both parties.
- Can be oral or written, with witnesses for oral contracts.
- Content consists of privately decided rules and agreements, leading to contractual liability if not followed.
5. Contractual Performance:
- Involves the obligation to fulfill terms agreed upon in the contract.
- Extrajudicial means can be used to demand performance.
- Out-of-court procedures may include letters, mediation, or court proceedings.
6. Types of Civil Contracts:
- Contract agreed by both parties.
- Unilateral contracts.
- Free contracts.
- Onerous contracts.
- Primary contracts.
- Ancillary contracts or guarantees.
- Real contracts.
- Solemn contracts.
- Consensual contracts.
- Random contracts.
- Bilateral contracts.
7. Additional Elements in Contract Design:
- Promissory notes, declarations, and statements.
- Form of payment, term, security, penalties, confidentiality.
- Form of contract drafting, jurisdiction, etc.
Given my demonstrated expertise, I recommend consulting a civil lawyer for advice on civil contracts. For those in Madrid, G.Elías y Muñoz Abogados, a reputable law firm, offers specialized legal services with professionals experienced in various legal areas. Their online appointment system provides immediate advice without the need for face-to-face visits. If legal assistance is required, it's advisable to request a meeting with their lawyers.
