Explanation of Article 243
This article addresses the statement of "contracting for the act of another," which is: when a person contracts with another person and commits that a third person will perform a specific act. The article stipulates that contracting for the act of another occurs in two cases:
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First: If the contracting is "on behalf," meaning that a person contracts in the name of another person. In this case, the contractor is obligated to contract in the name of the other, and the contract produces its effects on the rights of the other.
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Second: If the contracting is "voluntary," meaning that a person contracts in his own name, but the contract is for the benefit of another person. In this case, the contractor is obligated by the contract, and the contract produces its effects on his rights, unless the other approves the contract. In this case, the contract becomes "valid" and produces its effects on the rights of the other.
It is worth noting that contracting for the act of another differs from contracting for the benefit of another in that contracting for the act of another involves the obligation of a third person, whereas contracting for the benefit of another involves the creation of a right for a third person.
This article is considered one of the most important articles related to contracting for the act of another, as it clarifies how to contract for the act of another and enumerates its methods.
Related To
Article 243
An assignor does not warrant a debtor’s solvency, unless there is a specific agreement thereon. If the assignor warrants the solvency of the debtor, such warrant shall only cover solvency at the time of making the assignment, unless agreed otherwise.