Pacta Sunt Servanda is a Latin phrase that means “agreements must be kept.” It is a fundamental principle in both international law and contract law, signifying that legally binding agreements must be honored by the parties involved.
In the context of international law, Article 26 of the Vienna Convention on the Law of Treaties (1969) embeds this principle. This rule binds all parties to a treaty in force and requires them to perform it in good faith. This establishes trust and predictability in international relations. States must adhere to their treaty obligations unless they legally invalidate or properly terminate them.
In domestic contract law, courts use the principle of Pacta Sunt Servanda to ensure that once parties validly form a contract, they remain legally obligated to fulfill their respective promises. Courts generally uphold this principle unless they find the contract illegal, impossible to perform, or unconscionable.
This doctrine is essential to the rule of law, fostering legal certainty, economic stability, and trust in governance. Without this principle, legal systems and diplomatic relations would lose effectiveness and descend into chaos, as no one could attach binding value to agreements.
However, the principle is not absolute. Exceptions such as “clausula rebus sic stantibus” (things thus standing) allow for modification or termination of treaties when fundamental circumstances change drastically.
In summary, Pacta Sunt Servanda is the backbone of any legal agreement system. It ensures accountability, promotes fairness, and sustains the functioning of both national and international legal orders.
