Legal Definitions - onerous cause

In civil law systems, onerous cause refers to the underlying reason or justification for a contract where each party provides something of value or takes on an obligation in exchange for receiving something of value or a benefit from the other party. It signifies a mutual exchange, where the advantage one party gains is directly linked to the obligation or benefit provided by the other party. Essentially, it's the reciprocal consideration or "give and take" that makes a contract binding, ensuring that neither party is receiving something for nothing.

• Example 1: A Construction Contract

  Imagine a homeowner hires a contractor to build a new deck. The homeowner's onerous cause for entering the contract is to obtain a completed deck, and their obligation is to pay the agreed-upon price. Conversely, the contractor's onerous cause is to receive payment for their services, and their obligation is to construct the deck according to the specifications. Both parties are giving something (money or labor/materials) and receiving something (a deck or payment) in a reciprocal exchange.

• Example 2: A Software Licensing Agreement

  Consider a business that purchases a license to use specialized accounting software from a software company. The business's onerous cause is to gain the right to use the software to manage its finances, and its obligation is to pay the licensing fee. The software company's onerous cause is to receive the licensing fee, and its obligation is to grant the business the right to use the software and potentially provide support. This demonstrates the mutual exchange of a right to use for a fee, forming the basis of the agreement.