Pactum De Constituto: A Comprehensive Guide to Its Legal Definition
Definition & Meaning
Pactum de constituto is a Latin phrase that translates to "agreement from a contract or compact." This term refers to an informal yet legally binding agreement where one individual agrees to pay another person's debt. In return, the second person commits to not pursuing legal action against the first for any claims that may have arisen. Essentially, it serves as a promise to settle a debt in the future, often involving the creditor granting the debtor additional time to fulfill their obligations.
Legal Use & context
This term is commonly used in civil law contexts, particularly in debt settlement and negotiation scenarios. It can be relevant in various legal areas, including contract law and personal finance. Users can manage these agreements through legal forms and templates, such as those offered by US Legal Forms, which provide ready-to-use documents drafted by qualified attorneys.
Real-world examples
Here are a couple of examples of abatement:
Example 1: A person, John, owes money to a creditor. He enters into a pactum de constituto with his friend, Sarah, who agrees to pay John's debt. In exchange, John agrees not to take legal action against Sarah for any claims related to this debt.
Example 2: (hypothetical example) A business owner, Alex, is struggling to pay a supplier. They agree on a pactum de constituto where Alex promises to pay the supplier's debt over time, and the supplier agrees not to file a lawsuit during this period.