Real contract Law and Legal Definition

Real contracts are agreements between parties to perform or refrain from performing an action in respect to real property. Historically, a real contract is a contract in which money or other property passes from one party to another. Real contract requires something more than mere consent, such as the lending of money or handing over of a thing. The term “real contract” is derived from Roman law. Real contract refers to contracts related to both personal and real property. Real contracts included transactions in the form of commodatum, depositum, mutuum, and pignus. The term “real contract” is in common use in the Civil law, and it nevertheless describes certain obligations enforced in England from very early times.