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Title IV — Obligations and Contracts

This title governs the formation, effects, performance, and extinction of obligations and contracts.


Chapter 1 — Obligations in General

ArticleTitleDescription
Art. 41Sources of ObligationsAn obligation is a juridical bond by which one person is bound to perform or to refrain from performing an act in favour of another.
Art. 42General Rules on ObligationsObligations must be performed in good faith and in accordance with their terms.

Chapter 2 — Formation of Contracts

ArticleTitleDescription
Art. 43Formation of ContractsA contract is formed by the exchange of concordant declarations of will: an offer and an acceptance.
Art. 44Form and Electronic ContractsA contract may be concluded in any form unless the law requires a particular form for validity.
Art. 45Validity and Defects of ConsentA contract requires the free and informed consent of each party. Consent is defective where it is vitiated by error, fraud, duress, or undue influence.

Chapter 3 — Effects and Performance

ArticleTitleDescription
Art. 46Effects of ContractsA valid contract has the force of law between the parties. It may be modified or revoked only by mutual consent or on grounds provided by law.
Art. 47PerformanceThe debtor must perform the obligation at the time, place, and in the manner stipulated by the contract.
Art. 48Non-Performance and RemediesWhere the debtor fails to perform, the creditor may:; Non-performance is fundamental where it substantially deprives the creditor of what the creditor was entitled to expect under the contract.

Chapter 4 — Extinction of Obligations

ArticleTitleDescription
Art. 49Extinction of ObligationsAn obligation is extinguished by performance, release, set-off, novation, merger, impossibility not attributable to the debtor, prescription, or any other mode recognised by law.