Literal Meaning of Pacta sunt servanda- Agreements must be followed.
The parties to an agreement must do their best to fulfill their obligations under it.
“Pacta sunt servanda” is a Latin phrase that means “agreements must be kept” or “promises must be fulfilled”. The phrase is a fundamental principle of contract law and refers to the obligation of parties to honor their promises and fulfill their obligations under a contract.
The principle of pacta sunt servanda is an essential element of any contract, as it provides the foundation for trust and confidence between the parties involved. Without this principle, contracts would be meaningless, and there would be no assurance that agreements would be honored.
Under this principle, once parties have entered into a legally binding contract, they are bound by its terms and must fulfill their obligations under the agreement. This includes fulfilling obligations related to payment, delivery, performance, and any other terms specified in the contract.
The principle of pacta sunt servanda is recognized in international law as well, and it is considered a fundamental principle of the law of treaties. It is often cited as a cornerstone of peaceful relations between states, as it provides a basis for trust and respect in international agreements and treaties.