A-Z Glossary Contracts in General” (Articles 1675–1730)

A-Z Contracts Glossary

A-Z Contracts Glossary

Definitions and examples from “CONTRACTS IN GENERAL” (Articles 1675–1730)

A

Agreed Form

Definition: A voluntarily chosen special form stipulated by the parties, beyond legal requirements, which must be followed for the contract to be deemed complete (Art. 1726).

Example: Two businesses agree that all their future contracts must be in writing and signed by both CEOs, even though oral contracts would legally suffice. If they proceed with an oral agreement, it might not be considered a valid contract between them.

Agreement of the Parties

Definition: The mutual expression of intent by the parties to enter into a contract, completed when they manifest their consent to its terms, unaffected by uncommunicated reserves or restrictions (Art. 1680).

Example: A company offers to supply goods to a retailer at a specific price, and the retailer sends a purchase order confirming the quantity and price. This mutual exchange signifies their agreement.

Arithmetical Mistakes

Definition: Errors in numerical calculations within a contract (e.g., misstated price), which do not affect its validity but are corrected to reflect the intended agreement (Art. 1701(2)).

Example: A sales contract lists the total price as $1,000 when it should be $1,100 due to a calculation error. The contract is still valid, but the price is corrected to $1,100.

C

Completion of Contract

Definition: The point at which a contract is fully formed, requiring agreement on all terms or intent to be bound despite unresolved terms, with law addressing any gaps (Art. 1695).

Example: Parties agree on all essential terms of a sales contract but leave minor details for later. If they intend to be bound by the major terms, the contract is complete.

Consent

Definition: The mutual agreement of parties to define and be bound by the contract’s terms, expressed through offer and acceptance, free from defects like mistake, fraud, or duress (Art. 1679, Art. 1696).

Example: Two companies negotiate and agree on the terms of a merger. Both parties sign a merger agreement, indicating their free and informed consent. Contrast: If one company was threatened with bankruptcy unless they signed, that would be duress, and the consent would not be valid.

Contents of Contract

Definition: The totality of a contract’s terms, encompassing both the express obligations agreed by the parties and the incidental effects imposed by custom, equity, and good faith based on the contract’s nature (Art. 1713).

Example: A lease agreement not only includes the rent and duration (express obligations) but also implied duties like the landlord’s obligation to provide habitable premises (incidental effects from equity and good faith).

Contract Between Absent Parties

Definition: A contract formed when parties aren’t physically present, completed at the place and time acceptance is sent, or for telephone contracts, where the called party is located, unless otherwise stipulated (Art. 1692).

Example: A person in Addis Ababa sends an acceptance email to a company in London. The contract is formed in Addis Ababa at the time the email is sent.

Contract Formation

Definition: The process of creating a contract, involving consent from capable parties, a sufficiently defined, possible, and lawful object, and compliance with any legally or agreed-upon form (Art. 1678).

Example: Alice offers to sell her car to Bob for $5,000. Bob accepts the offer, they agree on the terms, and they sign a bill of sale, forming a legally binding contract.

Contracts

Definition: Agreements between two or more parties to create, vary, or extinguish proprietary obligations, requiring capable parties, lawful consent, a defined and possible object, and compliance with any prescribed form (Art. 1675, Art. 1678).

Example: A software company and a client sign a contract where the company agrees to develop a custom application, and the client agrees to pay a specific amount upon completion.

Contracts for a Long Period of Time

Definition: Agreements identified by law as requiring extended duration or complexity, such as guarantees and insurance contracts, which must be in writing to ensure clarity and enforceability (Art. 1725).

Example: A 20-year lease agreement for commercial property must be in writing to clearly outline the long-term obligations of the parties.

Contracts Relating to Immovables

Definition: Agreements that create, assign, or divide rights in immovable property (e.g., ownership, bare ownership, usufruct, servitude, mortgage) or involve compromises over immovables, requiring a written form and registration with a court or notary to be valid (Art. 1723).

Example: A contract for the sale of a house and the land it sits on must be in writing and registered with the relevant land registry or notary to effectively transfer ownership.

Contracts with Public Administration

Definition: Contracts that bind the government or a public administration entity, necessitating a written document and registration with a court, public administration, or notary to ensure legal enforceability (Art. 1724).

Example: A city government contracts with a construction firm to build a public school. The contract must be in writing and registered with the city’s administrative office and possibly a court to be valid.

Custom, Equity, and Good Faith

Definition: Principles that supplement contract terms with incidental effects based on established practices (custom), fairness (equity), and honest dealing (good faith), reflecting the contract’s nature (Art. 1713).

Example: In a commercial lease, even if not explicitly stated, the landlord is expected to provide reasonable access and maintain common areas, as is customary in such agreements.

D

Declaration of Intention

Definition: A statement of intent to act (e.g., give, do, or refrain) that doesn’t constitute an offer if not communicated to the beneficiary or involves public displays like tariffs, price lists, or goods for sale (Art. 1687).

Example: A store displays a price tag on a product. This is a declaration of intention, not an offer. The offer is made when the customer brings the product to the cashier.

Defective Acceptance

Definition: An acceptance with reservations or deviations from the offer’s terms, treated as a rejection of the original offer and a new counter-offer (Art. 1694).

Example: A seller offers a product for $200. The buyer replies, “I accept, but only for $180.” This is a counter-offer, not an acceptance.

Defects in Consent

Definition: Flaws in the agreement process—such as mistake, fraud, or duress—that undermine the voluntariness or understanding of a party’s consent, potentially leading to contract invalidation (Art. 1696).

Example: A contract is challenged because one party claims they were mistaken about the fundamental nature of the transaction.

Determination of Object

Definition: The process by which parties freely establish the subject matter or purpose of their contract, subject to legal restrictions and prohibitions, defining what is to be given, done, or abstained from (Art. 1711).

Example: A company contracts with a graphic designer to create a logo for their new product. The object of the contract is the creation and delivery of the logo, determined freely by both parties.

Duress

Definition: Coercion through threats of serious, imminent harm to a party or their close relatives, sufficient to impress a reasonable person, which can invalidate a contract (Arts. 1706–1707).

Example: A person is forced to sign a contract under threat of physical harm to their family.

Duty to Accept

Definition: A legal or regulatory obligation to enter into a contract on pre-set terms, where acceptance is not required, and the contract forms upon receipt of an offer, such as with public concessions (Art. 1683).

Example: A public utility company, under legal concession, is required to provide electricity to any resident who requests it at the regulated tariff. The resident’s request automatically forms a contract.

E

Effect of Provisions as to Form

Definition: The consequence of failing to follow a legally prescribed form, resulting in no contract (only a draft), though fiscal or publication requirements don’t affect validity unless specified (Art. 1720).

Example: If a land sale contract is not registered as required by law, it is not legally binding, and ownership does not effectively transfer.

Elements of Consent

Definition: The essential components required for valid contractual agreement, including the parties’ mutual intent to be bound, expressed through offer and acceptance, free from defects like mistake, fraud, or duress, and sustainable at law (implied from Art. 1679, Art. 1696).

Example: Two parties, a buyer and a seller, freely negotiate the terms of a car sale, agreeing on the price and conditions without any misrepresentation or coercion. This agreement represents valid consent.

Excessive Advantage

Definition: A disproportionately large benefit derived by one party, not invalidating a contract unless tied to duress or reverential fear with the advantaged party (Art. 1708, Art. 1709(2)).

Example: A person agrees to pay an exorbitant interest rate on a loan under threat of having their reputation ruined.

F

False Statements

Definition: Misrepresentations made in bad faith or negligently by a party, especially in a relationship of special confidence, or through misleading silence, which can invalidate the contract if they induced consent (Art. 1705).

Example: A seller in a confidential relationship with a buyer conceals known defects in a product, leading the buyer to purchase it. This false statement can invalidate the contract.

Fiscal Provisions (Stamp Duty, Registration Fee)

Definition: Legal requirements for taxes or fees (e.g., stamp duty or registration fees) associated with contract documentation, non-compliance with which does not affect contract validity (Art. 1720(2)).

Example: A real estate contract is valid even if the stamp duty is not paid, though the parties may face penalties separately.

Form of Contracts

Definition: The manner in which a contract is expressed or documented, typically requiring no special form unless prescribed by law (e.g., writing for immovables) or agreed by the parties (Art. 1719).

Example: A real estate purchase agreement must be in writing and registered with a notary to be valid, as prescribed by law. Contrast: A contract to buy groceries typically requires no specific form and can be oral.

Form of Offer and Acceptance

Definition: The manner in which parties communicate their proposal (offer) and agreement (acceptance), which may be oral, written, by customary signs, or conduct clearly indicating assent; the offeror may require a specific form for acceptance (Art. 1681).

Example: A real estate agent sends an email offer to a potential buyer, stating that acceptance must be made in writing and returned by a specific date. The buyer sends a signed acceptance letter within the deadline.

Formation of Contracts

Definition: The process of creating a contract, involving consent from capable parties, a sufficiently defined, possible, and lawful object, and compliance with any legally or agreed-upon form (Art. 1678).

Example: Alice offers to sell her car to Bob for $5,000. Bob accepts the offer, they agree on the terms, and they sign a bill of sale, forming a legally binding contract.

Fraud

Definition: Deceitful practices or false statements made intentionally or negligently to induce consent, allowing invalidation if the deceived party wouldn’t have contracted otherwise (Arts. 1704–1705).

Example: A seller intentionally conceals a significant defect in a product to induce the buyer to purchase it.

G

General Terms of Business

Definition: Standard conditions a party applies to contracts, binding the other party only if known and accepted or legally prescribed/approved (Art. 1686).

Example: A software company’s standard terms and conditions are included in a contract and signed by the client. These terms are binding because they were known and accepted.

Good Faith in Consent

Definition: The principle requiring parties to act honestly and fairly when giving consent, prohibiting the invocation of mistakes in a manner contrary to good faith and obligating a mistaken party to honor the intended contract if the other agrees (Art. 1702, contextual relevance to consent).

Example: A buyer mistakenly believes a painting is an original and agrees to purchase it. If the seller, acting in good faith, agrees to honor the contract based on the buyer’s understanding, the buyer cannot later claim the mistake to invalidate the contract.

Guarantee Contracts

Definition: Agreements where a party (the guarantor) undertakes to fulfill the obligations of another (the debtor) to a creditor if the debtor defaults, categorized as long-term contracts that must be in writing as mandated by law (Art. 1725(a)).

Example: A bank requires a parent to sign a written guarantee contract before lending money to their adult child, ensuring the loan will be repaid if the child defaults.

H

Handwritten Signature

Definition: A personal, manually written mark by a party on a written contract, required to bind them legally unless they are unable to write (Art. 1728(1)).

Example: A lease agreement is signed by the tenant with their handwritten signature.

I

Immovable Property Contracts

Definition: Contracts creating, assigning, or dividing rights in immovable property (e.g., ownership, usufruct, mortgage), requiring writing and registration with a court or notary to be valid (Art. 1723).

Example: A contract for the sale of land is written and registered with a court to transfer ownership.

Impossibility of Performance

Definition: A condition where the object of a contract cannot be fulfilled due to absolute and insuperable barriers, rendering the contract void (Art. 1715).

Example: A contract to deliver goods destroyed in a natural disaster before delivery is void due to impossibility of performance.

Insurance Contracts

Definition: Contracts whereby one party (the insurer) agrees to provide coverage or compensation to another (the insured) against specified risks in exchange for premiums, classified as long-term contracts requiring a written form under the law (Art. 1725(b)).

Example: A life insurance policy where the insurer agrees to pay a sum to the beneficiary upon the insured’s death in exchange for regular premium payments must be in writing.

Invalidation of Contracts

Definition: The legal annulment of a contract due to defects in consent (mistake, fraud, duress), an impossible or unlawful object, or failure to observe a mandatory form, rendering it unenforceable (Art. 1696, Arts. 1715–1716, Art. 1720).

Example: A contract is invalidated because one party was induced to sign it through fraudulent misrepresentation about the product being sold.

Invoices

Definition: Documents detailing contract terms issued by one party, which bind the other only if they align with a prior agreement or are expressly accepted (Art. 1685).

Example: A service provider sends an invoice for services rendered. If the customer had previously agreed to those services and their costs, the invoice is binding. If not, it’s only binding if the customer explicitly accepts it.

L

Lawful Performance

Definition: The execution of contractual obligations in a manner that complies with legal and moral standards, ensuring the object of the contract is not unlawful or immoral (Art. 1678(b), Art. 1716).

Example: A contract for a construction company to build a bridge must be performed according to safety and environmental regulations.

Legal Capacity

Definition: The ability of a person to enter into a contract, requiring them to be of sound mind, of age, and not judicially interdicted, as a prerequisite for valid consent (Art. 1678(a), implied).

Example: A contract signed by a minor or a person declared mentally incompetent is void because they lack legal capacity.

Long-Term Contracts

Definition: Specific contracts like guarantees and insurance, or others designated by law, that must be in writing due to their extended duration or complexity (Art. 1725).

Example: A life insurance policy is a long-term contract that must be in writing to be valid.

M

Measures of Publication

Definition: Steps required by law to publicize a contract (e.g., public notices), failure of which does not invalidate the contract unless otherwise specified (Art. 1720(3)).

Example: A company merger is valid even if a required public notice is not published, but penalties may apply.

Mistake

Definition: An erroneous belief by a party about a fundamental aspect of the contract (e.g., its nature, object, or the other party’s identity) that, if decisive, allows invalidation, provided it aligns with good faith (Arts. 1697–1703).

Example: A buyer purchases a painting believing it to be an original masterpiece, but it is later discovered to be a copy. This mistake about the object of the contract could lead to its invalidation.

Mistake as to Nature or Object

Definition: An error by a party regarding the type of contract (e.g., sale vs. lease) or the specific subject matter (e.g., intending a greater or lesser performance than agreed), which can invalidate the contract if fundamental and decisive (Art. 1699).

Example: A buyer signs a contract believing they are purchasing a piece of land, but the contract is actually for a lease of the land. This mistake about the nature of the contract can invalidate it.

Mistake as to Person

Definition: An error concerning the identity or qualifications of the other contracting party (e.g., mistaking their professional status), allowing invalidation if such identity or qualifications are deemed fundamental to the contract by general opinion or circumstances (Art. 1700).

Example: A person hires a supposed expert to restore an antique, but it turns out the individual is not qualified. If the expert’s qualifications were fundamental to the contract, it can be invalidated.

Motive for Contract

Definition: The underlying reason or purpose driving the parties to enter the contract, which generally does not affect its legality unless the terms or documents explicitly reveal an unlawful or immoral intent (Arts. 1717–1718).

Example: A person buys a car to impress their friends. This motive does not invalidate the sale. However, if the contract explicitly stated the car was to be used for illegal racing, it would be void.

N

Non-Fundamental Mistakes

Definition: Errors that do not relate to essential elements of the contract, such as motives for entering it, which do not justify invalidation but may still influence interpretation or performance (Art. 1701(1)).

Example: A person buys a painting thinking it will increase in value, but it doesn’t. This mistake about their motive does not invalidate the sale.

Notary or Court Registration

Definition: The formal recording of a contract with a notary or court, mandatory for contracts like those involving immovables or public administration to ensure legal effect (Arts. 1723–1724).

Example: A contract for the sale of land is not legally effective until it is registered with the land registry or notary.

O

Object Must Be Defined

Definition: The requirement that a contract’s obligations be described with sufficient precision to be enforceable; failure to do so renders the contract void, and courts cannot redefine it (Art. 1714).

Example: A contract to “sell some goods” is too vague. A contract to sell “100 units of model X product” is sufficiently defined.

Object Must Be Possible

Definition: The necessity that the contract’s object be achievable; if it involves an absolutely and insurmountably impossible thing or fact, the contract is ineffective (Art. 1715).

Example: A contract to sell “a bridge to the moon” is impossible and thus ineffective.

Object of Contracts

Definition: The subject matter or purpose of a contract, freely determined by the parties (e.g., giving a right, doing, or not doing something), which must be sufficiently defined, possible, and lawful (Arts. 1711–1716).

Example: A construction company contracts with a homeowner to build a house. The object of the contract is the construction of the house. Contrast: A contract to sell illegal drugs would have an unlawful object and be void.

Obligation to Give, Do, or Not Do

Definition: The types of commitments a party may undertake in a contract, including transferring a right (give), performing an action (do), or refraining from an action (not do), with the option to aim for a specific result or best efforts (Art. 1712).

Example: Give: A sales contract where a seller agrees to give ownership of a car to a buyer. Do: A construction contract where a builder agrees to do the work of building a house. Not do: A non-compete agreement where an employee agrees not to do business in a certain industry for a specified time.

Obligations

Definition: Legal duties or commitments that one party owes to another, arising from contracts or other sources, enforceable by law, and often of a proprietary nature (implied from Art. 1675 and Art. 1677).

Example: John signs a lease agreement to rent an apartment from Sarah. This creates a legal obligation for John to pay rent monthly and for Sarah to provide a habitable living space.

Offer and Acceptance

Definition: The process by which a contract is formed, where one party (offeror) proposes terms and the other (offeree) agrees, expressed orally, in writing, by customary signs, or conduct clearly indicating agreement; a special form may be stipulated (Art. 1681).

Example: Alice sends an email to Bob offering to sell her laptop for $500. Bob replies, “I accept your offer.” This exchange forms a contract.

P

Pre-existing Business Relations

Definition: Situations where silence can accept an offer to continue, vary, or complement an existing contract, especially if a document specifies acceptance occurs without reply within a reasonable time (Art. 1684).

Example: A supplier regularly sends goods to a retailer. A new order is sent with a note stating, “If we don’t hear otherwise within five days, we’ll proceed.” If the retailer doesn’t reply, they’re deemed to have accepted.

Preliminary Contracts

Definition: Agreements made prior to a final contract, committing parties to finalize in the same form required for the final contract (Art. 1721).

Example: Two parties sign a “letter of intent” outlining the basic terms of a future real estate purchase, agreeing to finalize a formal contract later.

Proprietary Obligations

Definition: Duties or commitments between parties that relate to property rights (e.g., ownership, use, or transfer), created, varied, or extinguished through a contract (Art. 1675).

Example: A contract for the sale of a house creates proprietary obligations for the seller to transfer ownership and for the buyer to pay the agreed price.

Public Administration Contracts

Definition: Contracts involving the government or public administration, which must be in writing and registered with a court, public administration, or notary (Art. 1724).

Example: A city government contracts with a construction company to build a bridge, with the contract being registered with the relevant public administration.

Public Promise of Reward

Definition: A publicized commitment to reward an act (e.g., returning a lost item), deemed accepted by performance, even without knowledge of the promise, obligating the promisor to pay (Art. 1689).

Example: A company advertises a $100 reward for the return of a lost dog. Someone who finds and returns the dog is entitled to the reward, even if they didn’t see the advertisement.

R

Reparation of Damage

Definition: Compensation the mistaken party must pay for losses caused by invalidating a contract due to their mistake, unless the other party knew or should have known of the error (Art. 1703).

Example: A buyer invalidates a contract because of a mistake they made, causing the seller to lose a subsequent sale opportunity. The buyer must compensate the seller for this loss, unless the seller knew or should have known of the buyer’s mistake.

Reserves or Restrictions

Definition: Conditions or limitations intended by one party that do not alter the expressed agreement unless communicated to and accepted by the other party (Art. 1680(2)).

Example: A seller privately decides they won’t deliver goods unless paid in cash, but this restriction is not mentioned in the contract. If the buyer pays by cheque as agreed, the seller cannot refuse delivery based on their uncommunicated reserve.

Reverential Fear

Definition: Apprehension or respect toward an ascendant or superior that influences consent, insufficient to invalidate a contract unless coupled with duress or results in an excessive advantage to the feared party (Art. 1709).

Example: An employee agrees to unfavorable contract terms out of fear of their boss. This fear alone does not invalidate the contract unless combined with duress or the boss takes excessive advantage.

S

Sale by Auction

Definition: A process where offering an item for auction is an intention, not an offer; the contract forms only when the item is knocked down to the highest bidder (Art. 1688).

Example: An auctioneer puts a painting up for bidding. The bidding process is not an offer. The contract is formed when the hammer falls, and the painting is sold to the highest bidder.

Serious and Imminent Danger

Definition: A grave and immediate threat to life, person, honor, or property of a party or their close relatives, sufficient to constitute duress and potentially invalidate a contract (Art. 1706).

Example: A person signs a contract under threat of immediate physical harm to their child.

Signature

Definition: A handwritten mark or thumb mark affixed by a party to a written contract, binding them; for blind/illiterate parties, it requires notary/judge authentication (Art. 1728).

Example: A person signs a loan agreement, making themselves legally responsible for repaying the loan. Blind/Illiterate Example: A judge authenticates the thumb print of a blind person signing a sales contract.

Signature Requirements

Definition: The obligation for each party bound by a written contract to affix a handwritten signature or, if unable to write, a thumb mark; for blind or illiterate parties, authentication by a notary, registrar, or judge is required (Art. 1728).

Example: Standard: A loan agreement is signed by the borrower with their handwritten signature. Thumb mark: A person who cannot write uses a thumb mark, which is then authenticated. Blind/illiterate: A contract involving a blind person is authenticated by a judge.

Silence as Acceptance

Definition: Silence in response to an offer does not constitute acceptance unless specific exceptions apply, such as legal duties, pre-existing relations, or explicit notice of deemed acceptance (Art. 1682).

Example: A car mechanic sends a customer an estimate for repairs, stating, “If I don’t hear from you in 48 hours, I’ll assume you agree.” If the customer remains silent, they haven’t accepted unless a pre-existing agreement or legal duty applies.

Special Confidence and Loyalty

Definition: A relationship between contracting parties that demands heightened trust and fidelity, where false statements or silence in bad faith can lead to invalidation for fraud (Art. 1705).

Example: A lawyer who intentionally misrepresents facts to a client to induce them into a contract breaches special confidence and loyalty.

Special Form Requirements

Definition: Specific formalities mandated by law for certain contracts (e.g., writing and registration for immovable property contracts), which must be observed to create a legally binding agreement (Art. 1719(2), Arts. 1723–1725).

Example: A contract for the sale of land must be in writing and registered with a court or notary to be valid, as per the law.

T

Threat to Exercise a Right

Definition: A warning to use a legal entitlement (e.g., sue for a debt), which does not constitute duress or invalidate a contract unless exploited to secure an excessive advantage (Art. 1708).

Example: A creditor threatens to sue a debtor for unpaid debts unless the debtor agrees to a payment plan. This threat does not invalidate the agreement unless the creditor demands an excessive advantage.

Thumb Mark Authentication

Definition: The use of a thumb mark as a substitute for a signature by a party unable to write, binding only if authenticated by a notary, registrar, or judge for blind or illiterate persons (Art. 1728(2)–(3)).

Example: An illiterate person uses a thumb mark on a contract, which is then authenticated by a judge.

Time Limit for Acceptance

Definition: A deadline set by the offeror for acceptance, binding them until expiry unless the offer is rejected earlier (Art. 1690).

Example: A seller offers to sell a car for $10,000, stating the offer is valid for one week. The seller is bound by this offer for a week unless the buyer rejects it sooner.

U

Unconscionable Advantage

Definition: An unfair benefit gained by one party over another in a contract, potentially invalidating it if obtained by exploiting the other’s want, simplicity, senility, or inexperience (Art. 1710).

Example: An elderly person with dementia is pressured into selling their valuable property for a fraction of its worth by a caregiver.

Unconscionable Contracts

Definition: Contracts with grossly unequal terms that may be invalidated if one party’s consent was exploited due to want, simplicity, senility, or inexperience, where justice demands (Art. 1710).

Example: An elderly person with dementia is pressured into signing a contract with extremely unfavorable terms by a caregiver.

Unlawful or Immoral Object

Definition: An object of a contract that violates law or morality, or where one party’s obligation is improperly tied to another’s unlawful/immoral duty, resulting in the contract being void (Art. 1716).

Example: A contract to pay someone to commit a crime is unlawful and void. A contract where one party agrees to provide positive reviews for a company that is known to sell harmful products, is immoral and void.

V

Variations of Contracts

Definition: Changes or amendments to an existing contract, which must be made in the same form as the original if a special form was required (Art. 1722).

Example: A construction contract is amended in writing to change the materials used, with both parties signing the amendment.

W

Witness Authentication

Definition: The attestation by witnesses of age and not interdicted, certifying the making and terms of a written contract, required for its legal effect (Arts. 1727(2), 1729–1730).

Example: A guarantee contract is signed by the guarantor and witnessed by two adults, confirming the agreement’s terms and execution.

Witness Capacity and Duties

Definition: Capacity: Witnesses must be of age and not judicially interdicted, with no restrictions based on sex or nationality, unless otherwise provided (Art. 1729). Example: Two adults, not under legal disability, witness the signing of a business agreement. Duties: Witnesses certify the contract’s making and terms but do not guarantee its performance unless expressly acting as guarantors (Art. 1730). Example: Witnesses sign a lease agreement, confirming they saw the parties sign and agree to the terms. They are not responsible if the tenant fails to pay rent, unless they also signed as guarantors.

Witnesses

Definition: Individuals of age and not judicially interdicted who attest to the making and terms of a written contract, without guaranteeing its performance unless specified (Arts. 1729–1730).

Example: Two witnesses sign a written contract for the sale of a business, attesting that they observed the parties signing the agreement.

Withdrawal of Offer and Acceptance

Definition: An offer or acceptance is void if the offeree knows of its withdrawal before or at the time they learn of it (Art. 1693).

Example: A person sends an offer by mail, then sends a withdrawal email. If the offeree reads the email before the mailed offer arrives, the offer is withdrawn.

Written Contracts

Definition: Contracts required by law or agreement to be documented in writing, signed by all bound parties, and attested by witnesses to be effective (Art. 1727).

Example: A long-term lease agreement is required to be in writing, signed by both the landlord and tenant, and witnessed.

Written Form

Definition: A contract format required by law or agreement, necessitating a special document signed by all bound parties and attested by two witnesses to be effective (Art. 1727).

Example: A guarantee contract, as legally mandated, must be in writing, signed by the guarantor, and attested by two witnesses to be enforceable.

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