Understanding Agreements and Contracts in Civil Law
Agreements and Contracts
Article 990 – An agreement is the consent of two or more persons to create, transfer, modify, or extinguish obligations.
Article 991 – For a contract to be valid, it must meet:
I. Capacity of the contractors.
II. Mutual consent.
III. Lawful subject matter.
IV. Required legal formalities.
Contracting Capacity
Article 996 – All persons not exempt by law can contract.
Mutual Consent
Article 1000 – Consent can be express or implied. Express consent is verbal, written, or by unmistakable signs. Tacit consent results from facts or acts that presuppose or authorize it, except where law or agreement requires express consent.
Article 1009 – Consent is invalid if made in error, obtained by violence, fraud, or bad faith.
Article 1010 – Miscalculation leads only to correction.
Article 1012 – Fraud in contracts is any suggestion or device used to mislead or deceive a party. Bad faith is the concealment of error by a party.
Article 1019 – Contract subjects are:
I. The thing to be given.
II. The act the obligor must do or not do.
Article 1020 – The contract subject must: exist in nature, be determinable, and be in commerce.
Article 1021 – Future things can be contracted, except for the inheritance of a living person, even with consent.
Article 1022 – Contractual acts must be: I. Possible. II. Lawful.
Article 1025 – Unlawful acts are those against public order or morality.
Article 1026 – Contracts aimed at physically or legally impossible acts are null.
Contract Form
Article 1027 – In civil contracts, parties are bound as agreed, without specific formalities unless required by law.
Article 1029 – Written contracts must be signed by all obligated parties. If a party cannot write, another signs and the party prints their fingerprint.
Article 1030 – A unilateral contract binds one party without binding the other.
Article 1031 – A bilateral contract binds both parties mutually.
Article 1032 – An onerous contract provides reciprocal benefits; a gratuitous contract benefits only one party.
Article 1033 – A commutative contract has benefits determined at contract conclusion.
Article 1037 – Legally prohibited waivers are considered not made.
Contract Interpretation
Article 1047 – Clear contract terms are interpreted literally.
Article 1048 – General terms are not understood as different from the parties’ intended scope.
Article 1049 – Clauses with multiple interpretations are understood in the most effective way.
Article 1050 – Contract provisions are interpreted together, resolving doubts from the whole.
Article 1052 – Country customs are considered in interpreting ambiguities.
Unilateral Declaration of Will
Article 1056 – Publicly offering objects at a price obligates the owner.
Article 1057 – Public advertisements offering benefits for fulfilling conditions create obligations.
Article 1067 – Stipulations can be revoked before a third party accepts.
Unjust Enrichment
Article 1069 – Unjustly enriched parties must compensate for the impoverishment.
Article 1070 – Undue payments received in error must be restored.
Article 1071 – Bad faith recipients of undue payments pay legal interest or fruits.
Article 1074 – Good faith recipients of undue amounts restore the principal without interest.
Article 1077 – Good faith recipients who believed the payment was for a legitimate credit are exempt from restoration.
Article 1079 – Error in payment is presumed when something not due is delivered, unless proven as a donation or just cause.
Business Management
Article 1083 – Managing another’s business without a mandate requires acting in the owner’s interest.
Article 1084 – Managers must act with due diligence and compensate for damages due to fault or negligence.
Article 1085 – Managers preventing imminent harm are liable only for willful misconduct or gross negligence.
Article 1086 – Managers acting against the owner’s will must repair damages, even without fault.
Article 1093 – Ratification by the business owner has retroactive effects.
Article 1096 – Funeral expenses must be paid according to the person’s status and local customs.
Obligations from Unlawful Acts
Article 1103 – Material reparation includes restoring the previous situation or paying damages.
Article 1104 – Moral damages affect feelings, emotions, beliefs, honor, reputation, and private life.
Article 1105 – Claiming moral damages requires proving the defendant’s wrongful conduct and direct harm.
Article 1107 – Legal persons are liable for damages caused by their representatives.
Article 1108 – Those with parental authority are liable for damages caused by minors under their care.
Article 1114 – Heads of households and hotel owners are liable for damages caused by their servants.
Article 1118 – Animal owners are liable for damages unless they prove sufficient care, provocation, or negligence by the offended party.
Article 1121 – Owners are also liable for damages from machinery explosions, harmful substances, and falling trees.
Real and Personal Obligations
Article 1124 – Personal obligations bind the contracting person and their heirs.
Article 1125 – Real obligations affect the thing and work against any holder.
Conditional Obligations
Article 1126 – Conditional obligations depend on future or uncertain events.
Article 1127 – Suspensive conditions delay the obligation’s existence.
Article 1128 – Resolutory conditions nullify the obligation upon fulfillment.
Term Obligations
Article 1142 – Term obligations have a set date for compliance.
Article 1143 – A term is a day that will necessarily arrive.
Article 1145 – Term obligations are counted as prescribed for obligations.
Article 1148 – Debtors lose the term right if they become insolvent, fail to provide guarantees, or diminish existing guarantees.
Joint and Alternative Obligations
Article 1150 – Those obligated to multiple things must provide all first and every second.
Article 1151 – Debtors obligated to one of two things can fulfill with either, unless the creditor objects.
Joint Obligations
Article 1162 – Multiple debtors or creditors in a single obligation create joint obligations.
Article 1163 – A single pool of debtors or creditors does not require full compliance from each.
Obligations to Give
Article 1189 – Obligations to give can involve transferring ownership, temporary use, or restitution.
Article 1190 – Creditors cannot be forced to accept a different thing, even if more valuable.
Article 1191 – Obligations to give include accessories, unless otherwise stated.
Article 1199 – Loss of a thing occurs if it perishes, becomes out of commerce, or is unrecoverable.
Obligations to Do or Not Do
Article 1205 – If an obligor fails to perform, the creditor can request performance by another or damages.
Article 1206 – Those bound to do something are liable for damages if they violate the obligation.
Transfer of Rights
when a creditor transfers to another, you have against your deudor.Artículo 1208 .- A creditor may assign his right to a third party without the consent of the debtor, unless the assignment is prohibited by law, has agreed not to do it or forbid the nature of derecho.Artículo 1209 .- The disputed rights shall not be disposed in any form, under penalty of nullity, to persons occupying the judiciary or any other appointing authority of the government, if such rights or credits may be played within the limits to extending the jurisdiction of officials referidos.Artículo 1211 .- The payment of the foregoing article, does not relieve the obligation: I. – If the assignment is made in favor of the heir or owner of the right cedido.II .- If you make for the holder of the property that is the subject of law is cedido.III .- If the creditor in payment of its deuda.Artículo 1229-Bis .- The institutions of the Mexican banking system on its own behalf or as trustees, other financial institutions and the Institutes of Social Security, may transfer their home equity without notice to the debtor.
REPLACING THE DEUDORArtículo 1230 .- To ensure replacement of the debtor, the creditor needs to express consent or tácitamente.Artículo 1231 .- It is presumed that the creditor consents to the replacement of the debtor if it allows the replacement to carry out acts that would run the debtor, in payment of revenues, partial or periodic payments, provided you do so on their own behalf and not on behalf of the debtor primitive.
OF SUBROGACIONArtículo 1237.- The subrogation is effected by operation of law and without any declaration of interest: I. – When it pays another creditor creditor preferente.II .- When the payer has a legal interest in fulfilling the obligation . III .- When an heir to her own property pay any debt herencia.Artículo 1238 .- If the debt be paid by the debtor with money to give him a third provided for that purpose, the lender would only be subrogated to the rights creditor if the loan shall appear in genuine title in stating that the money was borrowed to pay the same debt.
THE 1244 .- PAGOArtículo payment or performance is understood by the delivery of the thing or amount or the service that has been prometido.Artículo 1245 .- The payment will be at the time designated in the contract, except where the law expressly allow or prevent another cosa.Artículo 1246 .- If you have not set the time payment must be made and they are obligations of giving, the creditor can not demand it but after thirty days of questioning is made and judicially, and in court before a notary or two witnesses. Article 1248 .- Each contract shall specifically designate the place where the debtor should be required for payment. Failure to nominate place, except where the law provides otherwise, observe the following order: I. – If the object of the obligation is a specific piece of furniture, payment is made to the place where the object was the conclusion of the contrato.II .- In any other case the debtor’s domicile prefer, whatever the action .- A ejerza.III homelessness is preferred where the contract was concluded when the action personal, and the location of the property when the action is real.Artículo 1249 .- The delivery of buildings means a reference to the title given translational correspondiente.Artículo 1250 .- delivery costs shall be borne by the debtor, if no other provision cosa.Artículo 1256 .- The amounts paid on account of debts with interest not be charged to capital as any interest due and unpaid, unless otherwise agreed contrario.Artículo 1259 .- Payment may be fact: I. – On the same debtor, by their representatives or other interested person in contrato.II .- For a third party not interested in fulfilling the obligation, III .- For a third, ignoring the deudor.IV. – Against the wishes of the debtor.
THE OFFER OF PAYMENT AND CONSIGNACIONArtículo 1269 .- The provision takes the place of payment if it meets all the requirements for this required by law.
THE BREACH OF OBLIGACIONESArtículo 1275 .- Anyone who fails to perform an obligation, either in substance or in the way, is liable for damages caused to interested in it, unless that failure comes from the fact of this, force majeure, which one has no way contribuido.Artículo 1276 .- Anyone who has been compelled to give some facts and stop paying, or not suitable or as agreed, will be responsible for damages as follows: I. – If the obligation is to run, will start from the expiry of responsibility éste.II. – If the obligation does not fall under the term certainly bear responsibility only of the day on which the debtor Payment is required in court.
From dispossession and eviction will SANEAMIENTOArtículo .- 1290 when it acquired any thing be deprived of all or part of it by the sentence which is executory by reason of any prior right to adquisición.Artículo 1291 .- Anyone who disposes of is obliged to respond to the eviction, even if not expressed in the contract.
Article 1292 .- When the subject of the eviction thing has belonged successively to several owners, each of them is obliged to immediately adquirente.Artículo 1293 .- The contractors can increase and decrease the effects of conventionally eviction, and still agree on it is not given in any case. Article 1311 .- The alienating not responsible for the eviction: I. – If they have been convenido.III .- If, knowing that acquires the right to file the eviction, he has fraudulently concealed that enajena.IV .- If The eviction comes from a later case the act of translation, not attributable to the alienating, or indeed of acquiring, either before or after the same acto.VI. – If the purchaser or claiming to tolerate or compromise the business in arbitration without the consent of enajenó.VII .- If the eviction took place because the purchaser.
IN INJURY TO ACTS OF 1312 .- TERCEROArtículo Events in injury to anyone, can set aside a petition of 1313 .- The interesado.Artículo events held by a debtor to the detriment of his creditor can cancel a request, if such acts is the insolvency of the debtor, and credit under which the action is attempted, is prior to 1323 .- It is voidable ellos.Artículo any act or contract within thirty days prior to the judicial declaration of bankruptcy or contest and that was entered to give an existing loan that does not have a preference.
ACTS OF SIMULATION JURIDICOSArtículo 1330 .- The simulated acts and contracts in order to defraud a third party’s rights may be annulled at the request of the injured, within the period stipulated by law for the prescription of such acts and contratos.Artículo 1331 .- It simulated the act that the parties, or falsely confess what really happened or not has not been agreed between ellas.Artículo 1332 .- The simulation is absolute when the act there is nothing simulated real is relative when a legal act is given a false appearance that conceals its true nature.
OF 1337 .- COMPENSACIONArtículo compensation takes place when two persons meet the quality of debtors and creditors each other and their own derecho.Artículo 1338 .- The effect of compensation is extinguished by operation of law the two debts to the amount 1339 .- menor.Artículo amount of compensation is not necessary but when both debts consist in a sum of money, or when being expendable due things are of the same kind and quality provided that both have been designated to be held on contrato.Artículo 1340 .- For there to rise to compensation requires that debts are equally liquidated and enforceable. Article 1341 .- Debt liquid is one whose value is determined, or can be determined within nine days. It is required that debt which can not refuse payment under derecho.Artículo 1342 .- If the debts are not in the same amount, made the compensation under Article 1338 of the Code, shall expedite the action for the rest of the deuda.Artículo 1343 .- The compensation will not occur: I. – If a party to any renunciado.II .- If a debt takes its source because of conviction for plunder, III .- If one of the debts were for food . IV .- If the debt be of thing can not be compensated, V. – If the debt be to start something depósito.VIII .- If a minimum wage applicable debts.
DERECHOSArtículo the confusion of 1356 .- The obligation is extinguished by confusion when the qualities of creditor and debtor meet in one person. The obligation if the confusion is reborn cesa.Artículo 1357 .- The confusion that takes place in the person of the debtor or joint debtor only produces its effects on the proportion of your credit or debt.
THE SUBMISSION OF THE 1359 .- DEUDAArtículo Anyone can give up their right and forward, in whole or in part, benefits that are due, except in cases where the law prohibe.Artículo 1360 .- The debt forgiveness Main extinguish the accessory obligations, but the remaining of these were the first.
OF 1364 .- There NOVACIONArtículo novation of contract where the parties concerned as it substantially altered by substituting a new obligation to antigua.Artículo 1365 .- The renewal is a contract, and as such, is subject to the respective general provisions, except The following modificaciones.Artículo 1366 .- The renewal is never presumed, must be expressly stated.
INVALIDITY OF OBLIGATIONS Article 1376 .- The nullity action based on mistake, prescribed by the lapse of five years, unless the error incurred in the know before the expiry of that term. In this case, the prescribed action for sixty days on which the error was known. Article 1377 .- An action requesting the annulment of a contract made by intimidation, prescribes six months from the day it ceased the cause.