Article by Christian Larroumet
According to civil law systems, a contract is an agreement whereby one party is bound to another. The cornerstone of the contract is the will of each party. But the agreement must concern something that is valuable, because a contract involves an economic relationship between the parties. Thus, the Italian Civil Code provides that an obligation—and therefore a contractual obligation—necessarily has an economic value. The Italian Code also provides that a contract creates or extinguishes an economic relationship.
The Louisiana Civil Code defines a contract as an agreement between parties that creates, modifies or extinguishes an obligation. The French Civil Code contains a similar definition: a contract is an agreement (convention) that binds one party to another to give, to do, or not to do something. According to the German Civil Code, a contract is necessary to create an obligation if the obligation is wanted. This is in accord with the concept of ‘acte juridique,’ which is, in essence, a willful act that is enforced by the law.
Thus, in civil law systems, there are two underpinnings of the contract: an agreement and something valuable that is the basis of the agreement.
About the Author
Christian Larroumet. Christian Larroumet, Professor of Law, Université de Droit, d'Economie et de Sciences Sociales, Paris.
Citation
60 Tul. L. Rev. 1209 (1986)