Also known as:ex-contractu · contractual obligation · ex contractu liability
Written by attorneys · grounded in primary & secondary sources — see below
An obligation or cause of action founded upon an agreement between parties. The phrase distinguishes duties that arise directly from contractual promises from those imposed by law independent of any agreement.
Sources & Authorities
How it applies
Common Examples
6
Partnership Agreement Modifies Good Faith Standard
Ewan Eckhart and Elena Estrada form a general partnership under a written agreement that sets specific benchmarks for evaluating performance of duties. When Ewan withholds information about a potential deal, Elena claims breach. The court measures the claim by the agreement's prescribed standards rather than an external rule.
Limited Partnership Alters Good Faith Benchmarks
Everest Holdings and Echo Systems form a limited partnership whose agreement defines reasonable timelines for capital calls. When a general partner delays a required contribution, the limited partner sues for breach. The court applies the agreement's standards to determine whether the delay violates the duty.
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Statutes
Uniform Acts
Restatements
Casebooks
Study Supplements
Dictionaries
Partner Must Honor Agreement Duties
Elijah Edwards and Evelyn Ellison operate a general partnership. Edwards withholds financial records despite an express provision requiring prompt disclosure. Ellison sues for breach. The court enforces the duty because it arises from the partnership agreement itself.
Limited Partner Bound by Agreement Terms
Eduardo Enriquez serves as a limited partner in a venture with Elysium Media. The operating agreement requires him to approve certain distributions within ten days. When Enriquez refuses without cause, the general partner sues. The court treats the refusal as a breach of the contractual duty created by the agreement.
General Partner's Agreement-Based Duty
Edgar Evers acts as general partner for a limited partnership that includes Equinox Energy as a limited partner. The agreement obligates Evers to obtain consent before selling a key asset. Evers completes the sale without consent. Equinox Energy sues, and the court enforces the duty created by the agreement.
Employment Claim Treated as Contractual
An employee sues a former employer for termination after refusing to falsify records. The complaint alleges breach of an implied promise in the employment agreement. The court classifies the claim as arising from contract rather than an independent legal duty.
Foley v. Interactive Data Corp.47 Cal. 3d 654, 254 Cal. Rptr. 211, 765 P.2d 373
Common questions
Frequently Asked
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How does ex contractu differ from ex delicto?+
Ex contractu identifies obligations that arise from the parties' agreement itself. Ex delicto identifies duties imposed by law independent of any contract, such as the public-policy duty not to discharge an employee for refusing to commit a crime.
Can a partnership agreement eliminate the contractual obligation of good faith and fair dealing?+
A partnership agreement may prescribe the standards by which performance of the obligation is measured, provided those standards are not manifestly unreasonable. The agreement cannot wholly eliminate the obligation.
Does the duty of good faith and fair dealing in partnership statutes arise from the agreement or from the statute alone?+
The duty is contractual in nature and must be discharged consistently with the obligation of good faith and fair dealing that the statute incorporates into every partnership agreement.
When a partner fails to deliver a promised capital contribution, what remedy follows from the contractual obligation?+
The partner must contribute money equal to the value of the undelivered contribution at the partnership's election, because the duty to perform the contribution promise is an obligation arising from the partnership agreement.
248 U.S. 215 (1918)Property
…may furnish a basis for the relief. But the defendant and its subscribers, unlike members of the Associated Press, were under no contractual obligation to disclose the source of the news; and there is no rule of law requiring acknowledgment to be made where uncopyrighted matter is reproduced. The International News Service is said to…