Limiting The Pacta Sunt Servanda?

When two parties conclude a contract, the terms and conditions of the contract are the rules that will govern the relationship between the parties. Once the contract is signed, rights and duties are created, and the parties will remain liable thereto until the contract is terminated. In this article, I will be exploring the principle of the Pacta Sunt Servanda (sanctity of a contract), which indicates that contracts freely entered into must be kept and the role of good faith in the law of contract.

  Pacta Sunt Servanda

  Pacta Sunt Servanda is one of the cornerstones of the law of contract. According to Pacta Sunt Servanda, parties to a contract have the freedom to choose with whom they wish to conclude a contract and the terms and conditions of that contract¹. The effect of this principle is that when parties conclude a contract legally and voluntarily, the contract must be strictly enforceable on the parties with as minimal judicial interference as possible.