What Is a Contract?

Articles 706–735: Definitions and Essential Conditions

What Contracts Are (Articles 706–712)

A contract is a convention by which one or more persons bind themselves to one or more others, to give, to do, or not to do something (Article 706). The Code then classifies contracts:

• Bilateral (synallagmatic): Both parties bind themselves reciprocally (Article 707)
• Unilateral: Only one party has obligations (Article 708)
• Commutative: Each party gives or does something considered equivalent (Article 709)
• Aleatory: The equivalence depends on an uncertain event — a chance of gain or loss (Article 709)
• Gratuitous (de bienfaisance): One party gives a purely free advantage (Article 710)
• Onerous: Each party must give or do something (Article 711)

Whether named or unnamed, all contracts are subject to the general rules of this Titre. Specific contracts (sale, lease, etc.) have their own Titres, and commercial transactions fall under the Loi de Commerce (Article 712).

The Four Essential Conditions (Article 713)

For any convention to be valid, four conditions must be met:

1. Consent of the parties who bind themselves
2. Capacity to contract
3. A certain object forming the matter of the engagement
4. A lawful cause for the obligation

Consent (Articles 714–724)

Consent given by error, extracted by violence, or obtained by fraud is not valid (Article 714). Error nullifies a contract when it concerns the very substance of the thing contracted for — but not if it merely concerns the identity of the other party, unless that person's identity was the principal cause (Article 715).

Violence is a ground for nullity even if exercised by a third party, provided it would impress a reasonable person with fear of substantial harm (Article 716). Violence against a party's ascendants, descendants, or spouse also nullifies (Article 717). However, mere reverential fear toward a parent is insufficient (Article 717).

Fraud must be proven — it is never presumed (Article 719). A contract obtained by error, violence, or fraud is not void by operation of law but gives rise to an action for nullity or rescission (Article 720).

A person can only contract for themselves, but may promise the act of a third party (Article 722) or stipulate for a third party's benefit as part of their own obligation (Article 723). One always contracts for oneself and one's heirs, unless otherwise stated (Article 724).

Capacity (Articles 725–727)

Everyone can contract unless declared incapable by law (Article 725). The incapable are: minors, interdicted persons, married women who are minors or in community of property (in cases specified by law), and all others prohibited by law from certain contracts (Article 726). Only the incapable person can challenge the contract — the capable party cannot invoke their counterpart's incapacity (Article 727).

Object (Articles 728–732)

Every contract must have an object: something to give, do, or not do (Article 728). Only things in commerce can be contracted for (Article 730). The object must be at least determined as to its kind, though its quantity may be uncertain if determinable (Article 731). Future things may be the object of obligations — but one cannot renounce or deal in an unopened succession (Article 732).

Cause (Articles 733–735)

An obligation without cause, on a false cause, or on an unlawful cause has no effect (Article 733). A contract is valid even if the cause is not expressed (Article 734). A cause is unlawful when contrary to good morals, public order, or prohibited by law (Article 735).