Legal Definitions - synallagmatic contract

Synallagmatic Contract

A synallagmatic contract is a type of agreement where both parties make reciprocal promises to each other. This means that each party's promise serves as the reason or "consideration" for the other party's promise, creating a mutual set of obligations. In such a contract, both parties are simultaneously bound to perform a duty and entitled to receive a performance from the other. It's characterized by a direct exchange of commitments, where the performance of one party is contingent upon the performance of the other.

Here are some examples:

• Online Purchase: Imagine you order a custom-designed t-shirt from an online store. You promise to pay the listed price plus shipping, and in return, the retailer promises to create the t-shirt according to your specifications and ship it to your address. This is a synallagmatic contract because your obligation to pay is directly linked to their obligation to produce and deliver the t-shirt, and vice versa. Both parties have made a promise and are relying on the other's promise to fulfill their end of the bargain.
• Home Renovation Project: A homeowner hires a contractor to remodel their bathroom. The homeowner promises to pay the agreed-upon sum in installments as work progresses, and the contractor promises to complete the renovation according to the specifications and timeline. This contract is synallagmatic because the homeowner's payment obligation is directly tied to the contractor's performance of the renovation work, and the contractor's obligation to work is tied to the homeowner's promise of payment. Each promise is the consideration for the other.