Analyzing the Legal Nature of the Construction Contract With Regard to the Principles of European Law

Despite the increasing use of the construction contract and its varieties, the legal nature of this contract is not properly explained. Analyzing the nature of this contract, different formats are suggested: agency, rent of services, purchase of services and innominate contract. The commitment that arises by the construction contract is for a physical action, and therefore is different from agency which is representation in possession; a legal action. This contract is a covenant in which two factors are inclined; specified time and guarantee for performance. Therefore it does not coincide with rent of services either. This contract is also distinguished from the sale contract, which is an ownership contract. Taking into account the Engineering Act and the National Building Regulations, would eliminate the assumption that construction contract is of innominate contracts; and it becomes clear that the construction contract is a nominate service contract.