Explanation of Article 69
This article addresses the statement of "contract effects," which are the consequences that result from the contract after it has been validly concluded. The article stipulates that the effects of the contract are subject to the provisions of this system, in matters not covered by other systems, such as: the Personal Status Law, the Companies Law, the Commercial Papers Law, and the like.
It is worth noting that the effects of the contract vary depending on the type of contract. For example, the effects of a sales contract differ from those of a lease contract, and the effects of a gift contract differ from those of a mortgage contract.
The article emphasizes that the effects of the contract must be "legitimate," meaning they must not violate public order or public morals. For instance, a sales contract must not result in effects that contravene public order or public morals, such as the sale of drugs or unlicensed weapons, and the like.
The illegitimacy of the contract's effects results in the "nullity of the contract," so it does not produce any legal effect.
This article is considered one of the most important articles related to the effects of the contract, as it protects the rights of the contracting parties and provides them with the opportunity to annul the contract if its effects are illegitimate.
Related To
Article 69
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Unconscionability occurs when consideration increases or decreases contrary to the usual practice; it shall be determined according to custom.
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A contracting party may not demand nullification of the contract on the basis of unconscionability, except in relation to the property of a fully or partially incompetent person or as prescribed by legal provisions. The other contracting party may avoid nullification of the contract if he takes measures the court deems sufficient to eliminate unconscionability.
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A contract concluded by way of auction may not be challenged on the basis of unconscionability alone.