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Contracts - Chapter 7 - Doing Business in Brazil
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Originally from:
Doing Business in Brazil - Looseleaf
Doing Business in Brazil - Electronic
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Contracts
A. CHARACTERISTICS OF CONTRACTS
7.101 A contract under Brazilian law is an agreement between two or more persons which constitutes, regulates or extinguishes a legal relationship between the parties involving property rights. From a legal perspective, contracts may have a civil or commercial nature, or a combination of the two. In theory, a commercial contract deals with a commercial act.
7.102 The “New” Civil Code expressly repealed the erstwhile Civil Code and the first part (articles 1 to 456) of the Commercial Code. As a result, the Brazilian Civil Code now governs most civil and commercial contracts. However, some specific contracts are still regulated by the commercial code (such as maritime trade contracts) and by special legislation, but, in practice, contracts are governed by the basic principles of law as defined in the Civil Code.
7.103 In certain circumstances, contracts must take a specific form. Contracts must be written in Portuguese or, if originally written in a foreign language, translated into Portuguese. If any words or provisions of a contract are ambiguous, they are interpreted in accordance with the parties’ good-faith and the customs at the place where they were executed.
Pinheiro Neto - Advogados, established in 1942, is Brazil's leading commercial law firm with offices in Sao Paulo, Rio de Janeiro and Brasilia. The founding Editor of this publication, the late J.M. Pinheiro Neto, was the Legal Advisor to the British Chamber of Commerce in Brazil.
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