Elements of financial imbalance in the formation of a compensation contract

Abstract

The contract is considered to be a means of exchanging money and benefits between individuals, however, achieving a perfect balance between contractual obligations represents a practical challenge, which may lead to imbalances resulting from one party's greed to obtain the greatest benefit, The topic of financial imbalance is addressed in legal jurisprudence through the concept of "fraud", which refers to the existence of an unfair disparity between the price of the subject of the contract and its real value. This research addresses the topic of elements of financial imbalance in compensation contracts, and seeks to review how different legislations address this issue in order to ensure justice and protect the defrauded parties in contracts. The research focuses on Yemeni and Egyptian legislation, with comparisons to French and German laws, to determine how these legal systems deal with cases of financial imbalance between the two parties to the contract. This research aims to investigate the legal elements of cases of financial imbalance recognized by the studied legislations, The study showed that these legislations agreed to devote the material element to cases of financial imbalance, represented by the lack of equality of financial obligations, expressed by the concept of fraud, However, they differed in determining the moral element affecting the integrity of the will; as Yemeni legislation focused on "deceptive fraud" as a case of imbalance resulting from fraud, while Egyptian legislation relied on the concept of "exploitative fraud" as a major factor that requires intervention to achieve justice and ensure the protection of contracting parties, The study recommended devoting the theory of exploitation as a defect of the will in Yemeni law, and also suggested expanding the moral element of cases of economic imbalance to include all defects of consent and not just deceptive fraud, by adding a legal text that allows the judge to cancel the contract or amend the obligations of the parties in the event of an imbalance between benefits and obligations resulting from any defect of consent in general, without being limited to the defect of fraud.