The principle of the binding force of the contract. Theoretical aspects

The contract is one of the most important institutions of civil law. Once concluded, the contract produces a series of effects. The principle of the binding force of the contract is the basic principle that guides the institution of the contract primarily, but also the effects of the contract in particular. The principle of the binding force of the contract, also known as pacta sunt servanda, generates the force of law between the signatory parties to the validly concluded contract. This principle obliges the parties to comply with the agreed clauses and to execute the assumed services. Deriving from the autonomy of will, the principle ensures the stability and predictability of legal relations, while also identifying the importance of the agreement of will of the parties to the contract. In civil law, this principle guarantees faith in the value of the contractual commitments and is essential for the correct and sustainable functioning of the market economy.