Why elevate a contract to public?

11 July, 2024
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Commercial
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Jessika Sanz


In everyday life, we all find ourselves in situations where we need to reach formal commitments and agreements. From buying a house to partnering in a business, contracts are essential to ensure that all parties involved comply with the agreement. While signing a contract in a private document is fully valid, there is an additional step that can be crucial to protect our interests and not risk them: elevating the contract to public. But what does this mean and why is it important? Below, we explain it in simple terms.

What does it mean to elevate a contract to public?

Elevating a contract to public means taking a private agreement to a notary public to have it converted into a notarial document. With the intervention of the notary, who is the professional responsible for certifying the content of the document, the contract acquires a series of characteristics and benefits that it would not have if it remained solely in the private sphere.

This procedure is necessary in certain legal acts where the law establishes the elevation to public of the document as a requirement. However, beyond the cases where the elevation to public is mandated by a legal provision, there are other common situations where elevating to public is beneficial.

And what are the advantages of elevating a contract to public?

Among the advantages of elevating a contract to public, the following stand out:

Greater legal certainty: By being elevated to public, the contract becomes an official document and is given publicity and opposability, meaning that it is certified and made opposable to third parties. This provides greater legal certainty and means that, in case of discrepancy or dispute, it has greater legal weight and can be more easily defended in court.

Fraud prevention: A notary public verifies the identity and legal capacity of the contracting parties, as well as the authenticity of their signatures. This significantly reduces the risk of fraud.

Presumption of truth: Notarial documents are more difficult to challenge than private documents. If any of the parties attempts to deny the agreement, the public document serves as strong evidence of the existence of the agreement, its terms, and the date of its signing. By being elevated to public, it is presumed that the content of the contract is true and authentic, providing greater probative weight.

Access to public registry: The elevation to public of the contract is a prerequisite for registering it in a public registry. Registration in an official body provides publicity and/or informs about a specific legal situation. This can be useful to protect the rights of the parties against third parties, ensuring that the transaction is known and officially recognized. For this, it is necessary that the document to be registered is in a public document to ensure that the registered information is true and in accordance with current legislation.

Compliance and enforcement: A contract elevated to public is easier to enforce in case of non-compliance. Practically, the request for compliance with the contract through judicial means is faster and more effective since judges tend to give greater validity and speed to notarial documents.

Are there only advantages?

Although the benefits of elevating a contract to public are numerous, not everything is an advantage. This process involves some drawbacks to consider:

Costs: Elevating a contract to public involves higher economic costs, mainly due to the need to pay notarial fees. Generally, the price will depend on the economic value attributed to the document.

Time: The process of elevating a contract to public can take longer than simply signing it privately, due to the intervention and processing with the notary. Therefore, this procedure can delay the entry into force and execution of the agreement.

Lack of flexibility: By elevating a contract to public, it becomes subject to certain formalities and legal requirements, which can limit the flexibility of the parties to modify it in the future.

Conclusion

Elevating a contract to public may seem like an additional procedure that involves some inconveniences, but the benefits it provides are invaluable. It offers security, clarity, and legal protection both in the short and long term. The advantages regarding the proof of its existence, the guarantee of its content, and the eventual direct enforceability of its agreements, outweigh the inconveniences it may cause.

If you are considering closing an important deal, this simple action can save you many problems in the future and ensure that your interests are always protected.

At MES Advocats, we offer comprehensive advice and support during the contracting processes in any area, guiding you through the entire process and ensuring that all needs are covered. If you have any questions or are interested in obtaining a quote for specific advice, do not hesitate to contact our commercial law area at this link.

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