Pactum De Constituto Law and Legal Definition
Pactum de constituto is a Latin term which means “an agreement from a contract or compact.” It is an agreement about a settlement under which one person will pay another’s debt in exchange for which the second person agrees not to sue the first on some claim that has arisen. In other words, pactum de constituto is a legally enforceable informal agreement in which a person promises to pay another person’s debt in future or to give security, if the creditor agrees to give the debtor extra time.
