consensual contracts Flashcards
(54 cards)
types of consensual contract
there were 4 types:
1, emptio venditio (sale)
locatio conductio (hire)
societas (partnership)
mandatum (mandate
common characteristics of consensual contracts
they arose from mere agreement - no need for delivery
this is where concept of bona fides was most applied
Sale (emptio venditio)
was the most fundamental commercial contract due to its great influence on modern civil law and on common law
Formation of the contract of sale
the essential elements of the contract were that the parties agreed on a thing and a price
so:
agreement
the thing
the price
Agreement
No form required as long as agreement could be established
2 forms of agreement became common and important:
1) Arra
2) writing
Arra
it was an earnest - given at the conclusion of the contract to seal the bargain
In classical law - only evidential value - usually some minor token - a ring etc
in later classical law evidence that Greek practice influenced roman law substantially
This became to the extent that greek practice influenced roman law substantially
In breach of contract - could be treated as effectively liquidated damages
Writing as a form of agreement in sale
As with other contracts - stipulatio - it became practice to record a roman sale in writing
it became increasingly important as a probative instrument
Justinian’s provisions regarding arra and the writing
If parties agreed their contract should be in writing - then no contract until doc had been drawn up in a manner specified in the constitution
So either party could abandon from the agreement free from punishment
This provided that an arra had NOT been given
if purchaser withdrew he forfeited his arra
if seller withdrew he had to repay the buyer’s arra double
But J said no changes to unwritten sales
So in J’s law there were 2 types of sales
1) the unwritten sales - classical consensual rules retained full force
2) written sales - regulated by J’s enactment
The thing in sale
the sale could be of any right that the seller was capable of transferring to the buyer
BUT - typically was of a res corporalis
if contract was for use/enjoyment/services pf a thing - not a sale - but instead is hire
General principle - a typical sale was to transfer the ownership of a thing
the thing must exist at the time of the agreement - if not then no sale
+ identity requirement
Identity requirement of the thing in sale
This was the most restrictive requirement
the thing must be able to be identified
it had to be
specific - e.g. my slave caecillius
or semi-specific - part of specified mass
or one of a number of things - one of my horses etc…
COULD NOT be a sale of generic goods - “a horse” or “a slave”
Sale of some future thing was possible
Sale of some future thing
emptio rei speratae (sale of an expected thing)
Here ordinary principle applied – no thing = no contract
Here price will be proportionate to the actual yield
vs
Emptio spei (sake of an expectation)
If intention was buyer to take a risk – here this applies
Here same price will be payable whatever the yield
What is the price composed of for sale
there MUST be a money price
so permutatio (exchange or barter) was not sale
Sabinians disagreed
But this (proculian) view prevailed
G adopts it (G.3.141)
so does J (D.18.1.2.1
argument being if price was not money, then impossible to distinguish buyer from seller #
so law would be unworkable
as their duties and actions differ
Requirements of the money price in sale
must be fixed (certum)
it was only suitably fixed if it were known or immediately ascertainable at the time of agreement
enough for the price to be ascertained although obliquely identified - however much you paid for it, whatever in that cash box, etc… sufficed
One exception to this rule - third party to decide the price
otherwise parties free to fix their own price
but price must be seriously intended - not truly economic tho
Third party in relation to price in sale
This rule was disputed in classical law
and admitted by J
this is where the price was left to be fixed by a named third party
doctrine of laesio enormis
emerged in late law
its intended scope is uncertain - as it only appears in 2 constitutions concerned with individual cases
both of these being sales of land
here the seller was able to rescind the sale due to the fixed price being half the full value
Consent - (generally - but also as a part of sale)
was found as an element in relation to all contracts
roman law did not isolate and generalize these concepts
It involves the meeting of 2 minds - concurrence of 2 intents
If Buyer thinks horse A, and seller thinks horse B – neither party aware – there is no consent subjectively
Roman approach was that the contract was void if there was dissensus as to the res
Dispute as to the qualities of the res
- Variation as to jurist opinions
- Ulpian favours relief for a fundamental mistake of quality (D.18.1.9-15)
- Roman lawyers assume the subjective approach – a man may not profit from ignorance coming from his own carelessness
Defects of consent
there are 2 defects in consent that will vitiate a contract
1) no consent as to the whole or some part of the contract – error
- Error in negotio – one thinks a sale one thinks a hire etc = no contract
- Error in pretio (prices) and error in quantitate (quantities) – only partially operative – neither party can enforce contract at his own figure but can enforce it at the others figure
Or
- 2, there is consent but it has been such a way that the law will not enforce it -r dolus or metus
Effects of contract of sale
passing of title
passing of risk
Passing of title in sale
Not strictly an effect of the contract - but of the conveyance
In J’s law needed for the price to be paid and conveyance for effective title transfer
Passing of risk in sale
outside o the contract - rule is that the owner takes the risk of accidental loss or damage
BUT
rule for sale is different - risk passed to buyer as soon as contract was complete
contract had to be perfecta to pass risk
Risk in conditional contract only passed until condition satisfied - if thing destroyed before then, then no contract
Provided seller looked after the thing between sale and conveyance with due care - he could claim the price regardless
so if thing destroyed or damaged by no fault of the seller - buyer has no remedy against the seller
Broad principle as to when sale contracts are complete + effect on fruits
Generally said to be complete when nothing is left to be done except payment of the price and the conveyance of the thing
In regard to fruits
if between sale and conveyance of a sheep - it has lambs
Buyer has a right to the lamb
this is a right in personam
seller owns both sheep and lamb
but is under a duty to convey them to the buyer
Duties of the buyer in a sale contract
principal duties were to pay the price
- with interest if in mora
also had to take delivery for the thing at the appropriate time and place
- and also to compensate the seller for any expenses incurred in looking after the thing between contract and delivery
- if possibility thing may have to be restored to vendor
- he must show exacta diligentia in respect of it until that eventuality has passed
Duties of the seller in contract of sale
Care and delivery
Warranty against eviction
warranty against latent defects
Care and delivery of seller in sale
Seller is bound to deliver thing + care for it till delivery
- Was liable for culpa levis in abstracto -thomas
- Originally may have been liable for custodia
- but in J’s law required only to show care of a bonus paterfamilias – idea of a ‘prudent property owner’
- if disaster struck despite holdimg sufficient duty of care – then buyer cannot sure for failure to deliver
- otherwise it would make the obligation to deliver absolute and obligation of care strict
- For events of this kind the buyer will have to pay and get nothing
- But here the risk has to have passed to the buyer – where the contract has concluded
- obligation of delivery was not to pass ownership – just possession