Contractual Behavior Between Contract and Context

Rodrigo Ustárroz Cantali

doi:doi:10.11648/j.ijls.20250804.21

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Contractual Behavior Between Contract and Context

Rodrigo Ustárroz Cantali^*

Published in International Journal of Law and Society (Volume 8, Issue 4)

Received: 19 October 2025 Accepted: 4 November 2025 Published: 24 December 2025

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Abstract

A contract can only be fully understood - in terms of its formation, obligations, interpretation, and execution - when analyzed within the context in which it operates, and the conduct adopted by the parties involved. Beyond its legal framework, a contract embodies social, economic, and even cultural dimensions that influence its meaning and practical application. It is not merely a legal document, but a dynamic instrument shaped by the environment in which it is created and performed. This paper explores the foundations of a General Theory of Contracts through the lens of contextual legal reasoning. It argues that contracts should not be interpreted in isolation but rather considering the broader circumstances surrounding their negotiation and execution. A contextualized understanding of contractual relationships is essential to accurately define the obligations undertaken by each party and to assess the legitimacy of their expectations. Starting from the premise that the market constitutes the primary context of contractual relations, the analysis focuses on how markets are formed and sustained through the interaction of various factors - including trust, predictability, economic rationality, and institutional stability. These elements are not external to the contract; they are embedded in their logic and structure. The paper then examines the rationality behind the parties’ behavior, recognizing that such behavior is influenced not only by legal norms but also by strategic and economic considerations. The emergence and scope of contractual obligations are shaped by this behavioral context, which determines when obligations arise and what they entail. Ultimately, the contractual context provides the interpretive framework necessary to understand not only what was agreed upon, but also why and how the agreement was reached. A contextual approach offers a more realistic and effective method for interpreting and applying contracts, aligning legal analysis with the complexities of real-world transactions.

Published in	International Journal of Law and Society (Volume 8, Issue 4)
DOI	10.11648/j.ijls.20250804.21
Page(s)	379-390
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2025. Published by Science Publishing Group

Keywords

Contractual Law, Contextual Legal Reasoning, Context, Circumstances, Conduct, Contracts

References

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APA Style

Cantali, R. U. (2025). Contractual Behavior Between Contract and Context. International Journal of Law and Society, 8(4), 379-390. https://doi.org/10.11648/j.ijls.20250804.21

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ACS Style

Cantali, R. U. Contractual Behavior Between Contract and Context. Int. J. Law Soc. 2025, 8(4), 379-390. doi: 10.11648/j.ijls.20250804.21

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Cantali RU. Contractual Behavior Between Contract and Context. Int J Law Soc. 2025;8(4):379-390. doi: 10.11648/j.ijls.20250804.21

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@article{10.11648/j.ijls.20250804.21,
  author = {Rodrigo Ustárroz Cantali},
  title = {Contractual Behavior Between Contract and Context},
  journal = {International Journal of Law and Society},
  volume = {8},
  number = {4},
  pages = {379-390},
  doi = {10.11648/j.ijls.20250804.21},
  url = {https://doi.org/10.11648/j.ijls.20250804.21},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijls.20250804.21},
  abstract = {A contract can only be fully understood - in terms of its formation, obligations, interpretation, and execution - when analyzed within the context in which it operates, and the conduct adopted by the parties involved. Beyond its legal framework, a contract embodies social, economic, and even cultural dimensions that influence its meaning and practical application. It is not merely a legal document, but a dynamic instrument shaped by the environment in which it is created and performed. This paper explores the foundations of a General Theory of Contracts through the lens of contextual legal reasoning. It argues that contracts should not be interpreted in isolation but rather considering the broader circumstances surrounding their negotiation and execution. A contextualized understanding of contractual relationships is essential to accurately define the obligations undertaken by each party and to assess the legitimacy of their expectations. Starting from the premise that the market constitutes the primary context of contractual relations, the analysis focuses on how markets are formed and sustained through the interaction of various factors - including trust, predictability, economic rationality, and institutional stability. These elements are not external to the contract; they are embedded in their logic and structure. The paper then examines the rationality behind the parties’ behavior, recognizing that such behavior is influenced not only by legal norms but also by strategic and economic considerations. The emergence and scope of contractual obligations are shaped by this behavioral context, which determines when obligations arise and what they entail. Ultimately, the contractual context provides the interpretive framework necessary to understand not only what was agreed upon, but also why and how the agreement was reached. A contextual approach offers a more realistic and effective method for interpreting and applying contracts, aligning legal analysis with the complexities of real-world transactions.},
 year = {2025}
}

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TY  - JOUR
T1  - Contractual Behavior Between Contract and Context
AU  - Rodrigo Ustárroz Cantali
Y1  - 2025/12/24
PY  - 2025
N1  - https://doi.org/10.11648/j.ijls.20250804.21
DO  - 10.11648/j.ijls.20250804.21
T2  - International Journal of Law and Society
JF  - International Journal of Law and Society
JO  - International Journal of Law and Society
SP  - 379
EP  - 390
PB  - Science Publishing Group
SN  - 2640-1908
UR  - https://doi.org/10.11648/j.ijls.20250804.21
AB  - A contract can only be fully understood - in terms of its formation, obligations, interpretation, and execution - when analyzed within the context in which it operates, and the conduct adopted by the parties involved. Beyond its legal framework, a contract embodies social, economic, and even cultural dimensions that influence its meaning and practical application. It is not merely a legal document, but a dynamic instrument shaped by the environment in which it is created and performed. This paper explores the foundations of a General Theory of Contracts through the lens of contextual legal reasoning. It argues that contracts should not be interpreted in isolation but rather considering the broader circumstances surrounding their negotiation and execution. A contextualized understanding of contractual relationships is essential to accurately define the obligations undertaken by each party and to assess the legitimacy of their expectations. Starting from the premise that the market constitutes the primary context of contractual relations, the analysis focuses on how markets are formed and sustained through the interaction of various factors - including trust, predictability, economic rationality, and institutional stability. These elements are not external to the contract; they are embedded in their logic and structure. The paper then examines the rationality behind the parties’ behavior, recognizing that such behavior is influenced not only by legal norms but also by strategic and economic considerations. The emergence and scope of contractual obligations are shaped by this behavioral context, which determines when obligations arise and what they entail. Ultimately, the contractual context provides the interpretive framework necessary to understand not only what was agreed upon, but also why and how the agreement was reached. A contextual approach offers a more realistic and effective method for interpreting and applying contracts, aligning legal analysis with the complexities of real-world transactions.
VL  - 8
IS  - 4
ER  -

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Rodrigo Ustárroz Cantali

Law School, Federal University of Rio Grande do Sul, Porto Alegre, Brazil

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http://orcid.org/0000-0002-1418-5021

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APA Style

Cantali, R. U. (2025). Contractual Behavior Between Contract and Context. International Journal of Law and Society, 8(4), 379-390. https://doi.org/10.11648/j.ijls.20250804.21

Copy | Download

ACS Style

Cantali, R. U. Contractual Behavior Between Contract and Context. Int. J. Law Soc. 2025, 8(4), 379-390. doi: 10.11648/j.ijls.20250804.21

Copy | Download

AMA Style

Cantali RU. Contractual Behavior Between Contract and Context. Int J Law Soc. 2025;8(4):379-390. doi: 10.11648/j.ijls.20250804.21

Copy | Download

@article{10.11648/j.ijls.20250804.21,
  author = {Rodrigo Ustárroz Cantali},
  title = {Contractual Behavior Between Contract and Context},
  journal = {International Journal of Law and Society},
  volume = {8},
  number = {4},
  pages = {379-390},
  doi = {10.11648/j.ijls.20250804.21},
  url = {https://doi.org/10.11648/j.ijls.20250804.21},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijls.20250804.21},
  abstract = {A contract can only be fully understood - in terms of its formation, obligations, interpretation, and execution - when analyzed within the context in which it operates, and the conduct adopted by the parties involved. Beyond its legal framework, a contract embodies social, economic, and even cultural dimensions that influence its meaning and practical application. It is not merely a legal document, but a dynamic instrument shaped by the environment in which it is created and performed. This paper explores the foundations of a General Theory of Contracts through the lens of contextual legal reasoning. It argues that contracts should not be interpreted in isolation but rather considering the broader circumstances surrounding their negotiation and execution. A contextualized understanding of contractual relationships is essential to accurately define the obligations undertaken by each party and to assess the legitimacy of their expectations. Starting from the premise that the market constitutes the primary context of contractual relations, the analysis focuses on how markets are formed and sustained through the interaction of various factors - including trust, predictability, economic rationality, and institutional stability. These elements are not external to the contract; they are embedded in their logic and structure. The paper then examines the rationality behind the parties’ behavior, recognizing that such behavior is influenced not only by legal norms but also by strategic and economic considerations. The emergence and scope of contractual obligations are shaped by this behavioral context, which determines when obligations arise and what they entail. Ultimately, the contractual context provides the interpretive framework necessary to understand not only what was agreed upon, but also why and how the agreement was reached. A contextual approach offers a more realistic and effective method for interpreting and applying contracts, aligning legal analysis with the complexities of real-world transactions.},
 year = {2025}
}

Copy | Download

TY  - JOUR
T1  - Contractual Behavior Between Contract and Context
AU  - Rodrigo Ustárroz Cantali
Y1  - 2025/12/24
PY  - 2025
N1  - https://doi.org/10.11648/j.ijls.20250804.21
DO  - 10.11648/j.ijls.20250804.21
T2  - International Journal of Law and Society
JF  - International Journal of Law and Society
JO  - International Journal of Law and Society
SP  - 379
EP  - 390
PB  - Science Publishing Group
SN  - 2640-1908
UR  - https://doi.org/10.11648/j.ijls.20250804.21
AB  - A contract can only be fully understood - in terms of its formation, obligations, interpretation, and execution - when analyzed within the context in which it operates, and the conduct adopted by the parties involved. Beyond its legal framework, a contract embodies social, economic, and even cultural dimensions that influence its meaning and practical application. It is not merely a legal document, but a dynamic instrument shaped by the environment in which it is created and performed. This paper explores the foundations of a General Theory of Contracts through the lens of contextual legal reasoning. It argues that contracts should not be interpreted in isolation but rather considering the broader circumstances surrounding their negotiation and execution. A contextualized understanding of contractual relationships is essential to accurately define the obligations undertaken by each party and to assess the legitimacy of their expectations. Starting from the premise that the market constitutes the primary context of contractual relations, the analysis focuses on how markets are formed and sustained through the interaction of various factors - including trust, predictability, economic rationality, and institutional stability. These elements are not external to the contract; they are embedded in their logic and structure. The paper then examines the rationality behind the parties’ behavior, recognizing that such behavior is influenced not only by legal norms but also by strategic and economic considerations. The emergence and scope of contractual obligations are shaped by this behavioral context, which determines when obligations arise and what they entail. Ultimately, the contractual context provides the interpretive framework necessary to understand not only what was agreed upon, but also why and how the agreement was reached. A contextual approach offers a more realistic and effective method for interpreting and applying contracts, aligning legal analysis with the complexities of real-world transactions.
VL  - 8
IS  - 4
ER  -

Copy | Download