Civil Contracts are ones of the most important sources of obligation in civil law and is considered a primary means of regulating legal relationships between individuals. A contract arises when an offer is linked to an acceptance, both expressing the will of the contracting parties, provided that there is a legally valid subject matter and cause, according to Article (64) of the Civil Code.
The legislator has classified contracts into four main categories within the named contracts, which are:
- Contracts that relate to the right of ownership.
- Contracts that relate to the usufruct of things.
- Contracts that relate to work.
- Aleatory contracts.
First: Types of Civil Contracts that Relate to the Right of Ownership
These contracts concern the transfer of ownership of things, whether through disposition, enjoyment, or exploitation.
Their types include:
1- Sale Contract :
- Definition: The seller’s obligation to transfer ownership of a thing in exchange for a monetary price (Article 419 of the Civil Code).
- Key Difference: The consideration is always monetary.
2- Barter Contract:
- Definition: The obligation of two parties to transfer ownership of non-monetary things in exchange (Article 488 of the Civil Code).
- Key Difference: The consideration is in-kind and not monetary.
3- Gift Contract:
- Definition: The donor’s obligation to transfer ownership of a thing to the donee without consideration (Article 492 of the Civil Code).
- Difference: There is no financial or in-kind consideration.
4- Company Contract:
- Definition: An agreement between two or more persons to contribute to a financial project and share the profits or losses (Article 513 of the Civil Code).
- Difference: Each party contributes with a financial share or work, and the contract creates a new legal personality (the company).
5- Loan Contract:
- Definition: The lender’s obligation to transfer a sum of money or a fungible thing to the borrower on the condition that it is returned (Article 564 of the Civil Code).
- Difference: The consideration is fungible or monetary.
6- Settlement Contract:
- Definition: Resolving an existing dispute or preventing a potential dispute by each party relinquishing a part of their rights (Article 573 of the Civil Code).
- Difference: It resolves disputes without resorting to the judiciary.
Second: Types of Civil Contracts that Relate to the Usufruct of Things
These contracts involve the right to benefit from things without transferring ownership.
Their types include:
1- Lease Contract:
- Definition: Enabling the lessee to benefit from a thing for a specific period in exchange for rent (Article 582 of the Civil Code).
- Difference: Monetary consideration.
2- Loan for Use Contract:
- Definition: The lender delivers a thing to another person to use it without compensation and return it later (Article 670 of the Civil Code).
- Difference: No monetary consideration.
Third: Contracts that Relate to Work
These contracts regulate the provision of specific work in exchange for wages or a specific obligation.
Their types include:
1- Contract for Work:
- Definition: One party’s obligation to perform work for the other party in exchange for wages without subordination (Article 682 of the Civil Code).
2- Agency Contract:
- Definition: The agent’s undertaking of a legal act on behalf of the principal (Article 716 of the Civil Code).
- Difference: The agency contract relates only to legal acts.
3- Deposit Contract:
- Definition: The depositary’s obligation to preserve a thing and return it upon request (Article 738 of the Civil Code).
4- Custody Contract:
- Definition: The delivery of a disputed thing to a custodian for its preservation and management (Article 754 of the Civil Code).
- Difference: The subject matter of the contract is a disputed thing.
Fourth: Aleatory Contracts:
These contracts relate to averting risk or potential damages.
Their types include:
1- Life Annuity Contract:
- Definition: One person’s obligation to pay a lifetime annuity without consideration (Article 765 of the Civil Code).
2- Insurance Contract:
- Definition: The insurer’s obligation to indemnify the insured in the event of the realization of a risk, in exchange for premiums paid by the insured (Article 771 of the Civil Code).
3- Guarantee Contract:
- Definition: The guarantor’s obligation to fulfill the debtor’s obligation if the latter is unable to do so (Article 808 of the Civil Code).
Conclusion
Civil contracts vary in terms of:
- Formation: Consensual contracts, formal contracts, real contracts.
- Effect: Bilateral contracts, unilateral contracts.
- Nature: Instantaneous contracts, continuous contracts, fixed or aleatory contracts.
Understanding the types of contracts and the differences between them contributes to the organization of legal relationships between parties and the protection of rights in accordance with the provisions of the Civil Code.
