Notions regarding the life annuity contract

Abstract

The life annuity contract is the bilateral legal act by which a party, called the debtor is obliged to perform recurring acts to the benefit of the other party or a third party called a creditor, performances which consist of payment of a certain amount of money for the rest of the creditor’s life. The current paper discusses aspects of the life annuity contract in regard to its validity conditions and formal conditions. As it is a contract widely used in practice, the thorough analysis of its validity conditions is extremely important in order to avoid potential litigation arising from its vices.