What must a contract include to be valid?

Question

José Manuel Alburquerque · Accepted Answer

A contract is valid if it meets three requirements, namely the free consent of the parties, a definite subject matter and a lawful cause (consideration). As a general rule the law does not require any particular form, so a contract is valid even if it is signed between private individuals without a notary or even made orally, except for the few contracts that only exist if they are made by public deed, such as the gift of a property or a mortgage. Nor, except in specific cases, does the law require a minimum number of clauses, a date, witnesses or a stamp. Even so, it is advisable to put the contract in writing and in detail, because that is what makes it possible to prove later what was agreed and what prevents many lawsuits. The three requirements In Catalonia, as in most of the rest of Spain, the general requirements for contracts are those of the Spanish Civil Code (“Código civil”), because the “Código Civil de Cataluña”, the Catalan Civil Code, does not regulate them and only deals with certain types of contract, such as the contract of sale. They are as follows: Consent. There is a contract when one party makes an offer and the other accepts it. That consent must be given freely and knowingly. If it is given because of a serious mistake, as a result of deception or under violence or intimidation, the contract can be annulled. Minors who have not been emancipated can only sign the contracts the law allows them to sign, such as the everyday contracts appropriate to their age. An illness or a disability does not in itself prevent a person from entering into a contract. Subject matter. This is the thing or the service the contract is about. It must be possible and lawful. It must also be determined or capable of being determined without a new agreement, for example with a price calculated using the index set by the contract itself. Cause. This is the reason why each party takes on its obligations, for example, in a sale, receiving the price in exchange for handing over the thing sold. It is presumed even if the contract does not state it. A contract without a cause or with an unlawful cause has no effect whatsoever. In addition, what has been agreed cannot be contrary to the law, morality or public policy. Nor can the validity or performance of the contract be left to the will of just one of the parties. If you sign as a consumer with a business, unfair terms that were not negotiated are treated as not included, but the rest of the contract remains valid. The form of the contract The general rule is freedom of form. A contract is binding from the moment the parties reach agreement, whether they have done so orally, in a private document or before a notary. The exceptions are contracts for which the law requires a specific form, such as a public deed to make a gift of a property or to create a mortgage. In Catalonia, a private contract is equally valid whether it is drafted in Catalan or in Spanish. What it should include These are not requirements for validity, but they prevent problems and make proof easier: Who is signing, with their full name, their DNI (Spanish national identity card) or NIF (tax identification number) and their address. If one party is a company, who represents it and under what authority. What is being delivered or what service is being provided, described in detail. The price, when it is to be paid and how. The deadlines and what happens if someone fails to comply, for example a penalty or the option of terminating the contract. The date and everyone's signature on every page, with a copy for each party.