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Civil Law

Explanation of Article 57

Explanation of Article 57

This article addresses the statement of "error in value," which is an incorrect perception of the value of the contract's subject matter. The article stipulates that an error in value "does not affect the validity of the contract," meaning that an error in value does not lead to the nullification of the contract and does not entail any legal effect.

It is worth noting that an error in value differs from an error in an essential characteristic of the contract's subject matter; the former relates to value, while the latter relates to the characteristic.

An error in value results in the "validity of the contract" and its legal effects, except in the cases exempted by the article, which are:

  • First: If the error is "caused by deception," meaning that the error in value resulted from the use of fraudulent means to mislead the other contracting party. In this case, the error leads to the "nullification of the contract" and does not entail any legal effect.

  • Second: If the error is "caused by coercion," meaning that the error in value resulted from forcing the contracting party to conclude the contract. In this case, the error leads to the "nullification of the contract" and does not entail any legal effect.

  • Third: If the error is "caused by exploitation," meaning that the error in value resulted from exploiting the other party's need. In this case, the error leads to the "nullification of the contract" and does not entail any legal effect.

This article is considered one of the most important articles related to error in value, as it protects the rights of the contracting parties and provides them with an opportunity to nullify the contract if the error resulted from deception, coercion, or exploitation.

Related To

Article 57

A contracting party may demand nullification of the contract if he has made a material mistake without which he would not have consented to the contract, especially if such mistake relates to the subject of the contract, the other contracting party or the capacity thereof, or the legal provision.