Contract Formation in Mexico

Introduction

The rules of contract formation in Mexico determine when legally binding obligations arise between parties. The civil law requires agreement (offer and acceptance), capacity, lawful object, and cause or consideration.

Offer and Acceptance

An offer is a definite expression of willingness to contract on specified terms. Acceptance must be communicated to the offeror. Acceptance is effective upon receipt by the offeror.

Cause and Object

The civil law requires a lawful cause (causa) or object for a valid contract. Illegal or immoral cause renders the contract void.

Intention to Create Legal Relations

Parties must intend their agreement to be legally binding. Social and domestic agreements are presumed not to be intended as legally binding, while commercial agreements carry the opposite presumption.

Conclusion

The formation requirements ensure that only serious, deliberate agreements are enforced, providing certainty for contracting parties.