Legal Definitions - re, verbis, literis, consensu

Re, verbis, literis, consensu are Latin terms originating from Roman law that describe the four fundamental ways a contract could be legally formed and become binding. These terms categorize contracts based on the specific element required for their validity:

• Re (by the thing/performance): The contract becomes binding upon the physical transfer of an item or the completion of a specific action.
• Verbis (by words): The contract is formed through the use of specific, often ritualistic, spoken words or a formal verbal exchange.
• Literis (by writing): The contract is established through a written document, such as a formal entry in a ledger or a written acknowledgment.
• Consensu (by consent): The contract is binding solely through the mutual agreement or understanding of the parties involved, without requiring a physical act, specific words, or writing.

Here are some examples to illustrate these concepts:

• Example 1: A Loan and a Sale

  Imagine a situation where a person agrees to sell a unique antique vase to a friend. The agreement to sell the vase, including the price and delivery date, could be a contract formed consensu – it becomes legally binding the moment both parties mutually agree. However, if the friend needs to borrow money from the seller to pay for the vase, the contract for that loan might be formed re, meaning it only becomes legally binding once the seller physically hands over the agreed-upon cash to the friend.

  Explanation: This illustrates how the sale itself could be binding by mere mutual agreement (consensu), while a related loan required the actual physical transfer of the "thing" (money) to become a valid contract (re).

• Example 2: A Formal Promise and a Written Record

  Consider a scenario where a Roman citizen wanted to formally guarantee a debt for a family member. Such a guarantee might have been a contract formed verbis, requiring a specific, ritualistic verbal exchange, like a formal question and answer, to be legally valid. The exact words spoken were crucial. In contrast, if a merchant kept a formal ledger where specific entries acknowledging a debt created a legal obligation for the debtor, that would be a contract formed literis, where the written record itself was the source of the binding agreement.

  Explanation: This example highlights the distinction between contracts made binding by specific spoken words (verbis) and those made binding by a formal written record (literis).

• Example 3: A Comprehensive Business Deal

  Consider a complex business arrangement involving a partnership to import goods. The partnership agreement itself could be formed consensu, based purely on the partners' mutual intent and understanding of their roles. If one partner then needed to borrow funds from the other to purchase initial inventory, that loan might be a contract re, becoming binding only when the funds were physically transferred. Furthermore, if a third party verbally promised to cover any losses using a specific, formal declaration, that promise could be a verbis contract. Finally, if the partners maintained a specific accounting book where entries for shared expenses and profits created binding obligations between them, those entries would represent literis contracts.

  Explanation: This scenario demonstrates how different components of a single overarching business deal could be formed through various methods: by mutual consent (consensu), by the physical transfer of an item (re), by specific spoken words (verbis), or by a formal written record (literis).