Venezuelan Contracts: Types and Elements per Civil Code
Contract Definition (Venezuela Civil Code Art. 1133)
A contract is an agreement between two or more persons to create, regulate, transmit, modify, or extinguish a legal relationship between them. (Art. 1133, Venezuelan Civil Code)
Types of Contracts in Venezuela
Unilateral Contract (Art. 1134)
A contract is unilateral when one party is obligated, without the other having a reciprocal obligation. (Art. 1134, Venezuelan Civil Code). Examples include loan (mutuum or commodatum) or donation.
Bilateral Contract (Art. 1134)
A contract is bilateral when the parties obligate themselves reciprocally. (Art. 1134, Venezuelan Civil Code). An example is a sale contract.
Onerous Contract (Art. 1135)
A contract is onerous when each party seeks to procure an advantage in exchange for an equivalent prestation. (Art. 1135, Venezuelan Civil Code).
Aleatory Contract (Art. 1136)
A contract is aleatory when the advantage for one or both parties depends on an uncertain event (chance). (Art. 1136, Venezuelan Civil Code).
Other Contract Classifications
- Perfect Bilateral Contracts
- Imperfect Bilateral Contracts
- Nominate (Typical) Contracts
Essential Elements of a Contract
For a contract to exist and be valid, certain essential elements are required:
Capacity
All persons not declared incapable by law may contract. Those unable to contract, as specified by law, include:
- Minors
- Interdicts (persons declared legally incompetent)
- Legally disabled persons
- Any other person whom the law denies the ability to enter certain contracts.
Consent
Consent must be validly given. Consent given due to an excusable error (of law or fact), or obtained through violence or deceit (dolo), may lead to the contract’s annulment.
Object (Purpose)
The object of the contract must be possible, lawful, determined, or determinable.
Cause
An obligation without cause, or founded on a false or illicit cause, has no effect. The cause is illicit when it is contrary to law, good morals, or public order.
Accidental Elements of a Contract
These elements are not essential for a contract’s existence but can be added by the parties to modify its effects:
Condition
The condition is a future and uncertain event upon whose occurrence the creation or termination of the contract’s effects depends.
Term
The term is a future and certain point in time upon whose arrival the commencement or termination of the contract’s legal effects depends.
Mode
The mode is a charge or obligation imposed on the beneficiary in gratuitous acts, such as donations and wills.
Common Contract Types in Venezuela
Sale (Venta)
Sale is a contract whereby the seller obligates themselves to transfer ownership of a thing, and the buyer obligates themselves to pay the price.
Lease (Arrendamiento)
Lease is a contract whereby one party obligates themselves to grant the enjoyment of a movable or immovable thing to another party for a certain time, in exchange for a determined price that the latter party obligates themselves to pay.
Works Contract (Contrato de Obras)
A works contract is one whereby one party agrees to execute a specific work, either personally or under their direction, in exchange for a price that the other party is obligated to pay.
Mutuum (Loan for Consumption)
Mutuum (loan for consumption) is a contract whereby one party delivers to another a certain quantity of fungible things, with the obligation for the latter to return an equal amount of the same kind and quality.
Commodatum (Loan for Use)
Commodatum (loan for use) is a contract whereby one party delivers a non-fungible thing to another, free of charge, for their use for a specific time or purpose, with the obligation to return the identical thing.