For example, suppose I sign a contract stating that I will give a croissant to my friend who is to be my butler for 5 years in exchange, and that friend also signs it consciously, is this contract valid? Is there a limit at which ridiculously unjust contracts are no longer valid?
Answer
The essence of the answer to this question is contained in Article 1134 of the Dutch Civil Code (BW). The first paragraph of this article states “All agreements entered into lawfully shall be lawful to those who entered into them”. The third paragraph adds “They must be executed in good faith”.
Under the first paragraph, “unjust” contracts can therefore only be invalid to the extent that they are contrary to a law. There is currently no general ban on “unlawful” contracts in Belgium. There are quite a number of rules that curb specific apparently unlawful contracts. 1907 ter BW that the court may moderate the interest on a loan if it clearly exceeds the normal interest and the coverage of the risk, and has been stipulated by abuse of the needs, weaknesses, passions or ignorance of the borrower. More generally, it is inferred from art.1118 of the Dutch Civil Code that a contract is void if there is an apparent imbalance between the performance of the parties, and abuse of the circumstances in which the injured party found itself has played a decisive role in the formation of the contract . Also in the sphere of consumer law “unlawful terms” (ie not contracts, but certain terms therein) are extensively curbed.
If a contract is not contrary to any specific law, but does create an apparent serious imbalance between the parties, the court may rule that it is contrary to good faith (art. 1134 third paragraph of the Civil Code) to prevent its execution. progress. The contract then remains valid, but its execution cannot be enforced.
Answered by
Olivier Eloot
http://www.ugent.be
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