Legal Definitions - post contractum debitum

Post contractum debitum is a Latin phrase that historically refers to a debt or obligation that comes into existence after a contract has been formally agreed upon. It signifies that the duty to pay or perform becomes active once the contractual terms are established and, often, once certain conditions within the contract have been met or a specific time has passed. Essentially, it describes the state of owing something once a binding agreement has been put in place.

Here are some examples illustrating this concept:

• Example 1: A Mortgage Agreement

  Imagine a couple signs a mortgage agreement with a bank to purchase a new home. The contract specifies the loan amount, interest rate, and repayment schedule. Once the contract is signed and the bank disburses the funds for the home purchase, the couple immediately incurs a debt to the bank.

  This illustrates post contractum debitum because the debt—the legal obligation to repay the mortgage—arises directly after the mortgage contract has been fully executed and the funds have been provided by the bank.

• Example 2: A Consulting Service Contract

  A small business hires a marketing consultant for a three-month project, with the contract stating that payment for services will be due at the end of each month. After the first month of work is completed by the consultant, the business incurs a debt for that month's services, even if the payment isn't immediately processed.

  Here, the debt (the obligation to pay for the consultant's services) becomes active after the consulting contract has been agreed upon and the specified work for that period has been performed, fulfilling the conditions for payment.

• Example 3: A Commercial Lease Agreement

  A startup company signs a lease agreement for office space, agreeing to pay rent on the first day of each month. Once the lease contract is signed and the company takes possession of the office, they have a recurring debt for rent that becomes due at the start of each subsequent month.

  This demonstrates post contractum debitum because the obligation to pay rent arises after the lease contract is made and the company occupies the premises, establishing the debt that must be settled by the agreed-upon due date each month.