The Nature of the Contract

Abstract

     The contract establishes many legal effects, including both fundamental and non-fundamental obligations. This fundamental obligation is referred to as the essence of the contract, or its nature. It is what realizes that essence and nature. Various theories explain the essence of the contract. Some believe that form represents the nature of the contract, while others argue that the underlying will is the true expression of the contract's essence. Meanwhile, a third perspective holds that the essence of the contract lies in the outward expression or manifestation of intent, while a final view argues that the essence of the contract is found in its inherent nature. The fundamental obligation that defines the identity of the contract is something intrinsic to it; it embodies its identity and essence. This study examines the concept of essence in its general origin and then attempts to apply this concept to contracts.