Literal Contract Law and Legal Definition

According to Roman law, literal contract is a kind of written contract originally created by and later evidenced by an entry of the sum due on the debit side of a ledger. This binds a signatory even if the signatory receives no consideration. Literal contracts were often used for novations. The literal contract is a means of creating an obligation to pay money by a fictitious entry in the creditor's account book with the consent of the intended debtor. For example, A enters the fact that B is indebted to him with B's consent and thereupon B is obliged to pay, though no money has passed between them.