Causa as an element of the structure of a binding contract in the Spanish law

Abstract

The Spanish Civil Code does not define the concept of a binding contract, although it contains the list of legal conditions on which its formation depends. As a rule, the conclusion of the contract depends upon the agreement of the parties, resulting in a binding obligation. However, this theory does not explain whether the relationship is causal or purposeful and, therefore, whether the contract is the basis for the obligation or vice versa. The problem is mainly the definition of the relationship between the binding contract and the obligation in a situation where, on the one hand, the causa is a necessary element for the validity of the contract (Article 1261 of the Spanish Civil Code) and, on the other hand, it is identified with the cause of the obligation (causa de obligación, under Article 1261(3) and Article 1274 of the Spanish Civil Code). The concept of causa is understood in a variety of ways in the Spanish law. As defined in Article 1274 of the Spanish Civil Code, it is applicable, in the case of mutual contracts, to the obligation of the other party in contract of a benefit-generating nature, to the service provided by one party in case of remunerating contracts, and to the donor's intention in case of donations. The paper contains an analysis of various types of causa and the relationship between the binding contract and the obligation understood as crucial for the scope and the essence of contractual obligations.