Legal Definitions - abstract juridical act

An abstract juridical act refers to a legal action or declaration that creates legal effects independently of the underlying reason or purpose that prompted it. Unlike most legal acts, where the validity of the act depends on the validity of its cause (the reason for its existence), an abstract juridical act stands on its own. Its legal force is detached from the validity or existence of the transaction or relationship that gave rise to it. This means that even if the original reason for the act is flawed or ceases to exist, the abstract juridical act itself remains valid and enforceable.

Here are some examples to illustrate this concept:

• Promissory Note: Imagine a small business, "Green Gardens Landscaping," purchases a new tractor from "Farm Equipment Sales" and, instead of paying cash immediately, issues a promissory note. This note is a formal written promise to pay "Farm Equipment Sales" a specific amount of money by a certain date. The promissory note itself is an independent legal obligation.

  How it illustrates the term: If "Farm Equipment Sales" later sells that promissory note to a bank, the bank can demand payment from "Green Gardens Landscaping" on the due date. This obligation holds true even if, for example, the tractor later turns out to have a manufacturing defect, or if there's a dispute between Green Gardens and Farm Equipment Sales about the original purchase agreement. The validity of the promissory note (the abstract juridical act) is separate from the underlying sales contract (the cause).

• Bank Guarantee: A large construction company, "Skyline Builders," wins a bid to build a new office complex for "City Developments Inc." As part of the contract, Skyline Builders is required to provide a bank guarantee to City Developments, ensuring that if Skyline Builders fails to complete the project as agreed, the bank will pay a specified sum to City Developments.

  How it illustrates the term: The bank guarantee is an independent undertaking by the bank. If Skyline Builders defaults on the construction project, City Developments can claim the guaranteed amount directly from the bank. This claim is valid even if there's a complex dispute between Skyline Builders and City Developments about the exact terms of the construction contract, or if the underlying contract itself is later found to have a minor technical flaw. The bank's obligation under the guarantee (the abstract juridical act) is separate from the underlying construction contract (the cause).