Differences Between Agreements and Contracts in Civil Law

In practice, the terms agreement and contract are often used interchangeably, but according to legal science, they have differences. Agreements can be made orally or in writing, while contracts are in writing. The scope of an agreement is broader than a contract, which is more limited.

Agreement as a Source of Engagement in Civil Law

Article 1234 of the Civil Code states that engagements are intended to provide something, to do something, or not to do something. There are two sources of engagement in civil law: based on law or based on agreement of the parties.

Types of Civil Lawsuits in Contract Law

When filing a lawsuit in court regarding an agreement, there are two types of lawsuits that can be chosen based on the cause of the lawsuit:

  1. Tort Lawsuit: A lawsuit based on violations of the law and violations of order and morality.
  2. Breach of Contract Lawsuit: A lawsuit based on another party bound by the agreement committing a violation of the agreement that has been mutually agreed upon. A breach of contract lawsuit requires a prior agreement.

Conditions for the Validity of an Agreement in Civil Law

The conditions for the validity of an agreement are regulated in Article 1320 of the Civil Code:

  1. Subjective Conditions: The agreement of the parties who bind themselves must be based on the circumstances of the parties who are free, without coercion, error, or deception.
  2. Capacity of the Parties: The parties making the agreement must be legally capable, namely adults and not under guardianship.