Contracts which are legally entered into hold the force of law between the parties. Thus, if a party fails to honour its contractual obligations without just cause, then it must face the consequences and the other party has various remedies to force such party to honour the contract. This embodies wholeheartedly the volontà theory presupposing that once a valid consent is given, then one is bound by that contract which was entered into.

Contracts may only be revoked by the valid consent of the parties or on grounds allowed by law. The general rule, therefore, is that one may not terminate a contract unilaterally. This is however subject to certain exceptions which are specifically contemplated in the Civil Code of Malta.

Our law expressly states that contracts must be carried out in good faith. Moreover, the Courts have extended this attribute of good faith not just to the carrying out of the contract but also during the negotiation stage. Furthermore, one must be aware that when entering into a contract one would not only be promising on his behalf but also for his heirs. This is unless one expressly stipulates in the contract that it is not binding on his heirs. Again, this is save for exceptions which are particularly specified in the Civil Code.

It is the intrinsic binding nature of a contract which makes it imperative that one is well aware of the consequences of entering into a particular contract. Also important is the fact that contracts are more easily enforced if they are clear, unambiguous and meticulously expressed.

A breach of contract results in the liability for damages caused to the other contracting party. The concept of damage is based on putting the aggrieved party in the position in which he would be had the contract been fulfilled. Moreover, in an action for breach of contract, the party bringing such action may not only seek damages but may also seek to compel the other party to honour its contractual obligations.