Essentialia Negotii Law and Legal Definition

Essentialia negotii is a Latin term which means “essential aspects” or “basic terms”. This is a legal term used in contracts and denotes the minimum contents of a contract for it to be held effective and legally binding. . For example, A and B entered into a contract for buying/selling of a car. But they have not worked out any specific price. Here, price is an “essential term” or “essentialia negotii.” Likewise in contracts of employment, essential terms can include not just pay and a basic job description but also to specifics on holidays, a notice period in the event of dismissal, the place of work, any collective agreements and whether the job is expected to be permanent or a fixed term contract