Understanding Nudum Pactum, Ex Quo Non Oritur Actio in Contract Law
Definition & Meaning
The term nudum pactum, ex quo non oritur actio refers to a legal principle stating that a bare promise, or an agreement made without sufficient consideration, does not give rise to a legal action. In simpler terms, if someone makes a promise without any form of compensation or exchange, the law will not enforce that promise. This principle emphasizes the importance of consideration in forming valid contracts.
Legal Use & context
This term is primarily used in contract law, which falls under civil law. It is essential in determining the enforceability of agreements. In legal practice, understanding nudum pactum is crucial for both individuals and businesses when entering contracts. Users can manage simple agreements themselves using legal templates from resources like US Legal Forms, but they should be cautious about ensuring that all promises are supported by consideration to avoid unenforceable agreements.
Real-world examples
Here are a couple of examples of abatement:
Example 1: If person A promises to give person B a car without asking for anything in return, this promise may be considered nudum pactum. Since there is no exchange of value, person B cannot legally compel person A to deliver the car.
Example 2: If a business promises to donate a sum of money to a charity without receiving anything in return, this promise may also be classified as nudum pactum, as it lacks consideration. (hypothetical example)