Explanation of Article 43
This article addresses the statement of "capacity of the contracting parties," which is: the ability of a person to acquire rights, bear obligations, and engage in legal acts and transactions, and it is a condition for the validity of the contract.
The article stipulates that the capacity of the contracting parties must be "complete," meaning that the contracting party must be "of sound mind," "not interdicted," and "not afflicted by any impediment to capacity," such as insanity, idiocy, prodigality, negligence, and the like.
It should be noted that the capacity of the contracting parties is not absolute but is restricted by the limits of public order and public morals, so it is not permissible to contract on matters that violate public order or public morals.
The absence of the capacity of the contracting parties results in the "nullity of the contract," which does not produce any legal effect, as will be mentioned in Article (162).
As for "deficiency of capacity," which is: when the contracting party is "discerning," "not of sound mind," "not interdicted," or "afflicted by some impediments to capacity," it will be discussed in detail in Article (44).
Related To
Article 43
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A promise by either or both parties to conclude a contract in the future shall not be binding, unless the parties agree on the material matters in said contract and the deadline for its conclusion, and the conditions of the contract are met at the time such promise is made, including any formalities required by legal provisions for such contract.
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If the promisor fails to fulfill his promise and the promisee demands fulfillment thereof and the terms of the contract are met, a judgment by the court shall, if issued, stand in place of the contract.