The Legal Nature Of Liability Arising From Breach Of The Obligation To Provide Information Before Entering Into A Contract

Abstract

This research examines the obligation to inform in the pre-contractual stage as a fundamental pillar of civil transactions, given its pivotal role in fostering informed consent that allows the contracting party to be fully aware of all essential information related to the subject matter of the contract. The legal nature of this obligation is defined as a non-contractual obligation arising in the preliminary stage of contract formation, distinct from the systems of mistake and fraud. While mistake is based on subjective criteria, the obligation to inform rests on an objective standard, establishing liability simply through concealment, without requiring fraudulent means. This makes its scope broader than that of fraud.

The study concludes that this obligation is a product of judicial interpretation, which sought to overcome legislative shortcomings in establishing rules of transparency among negotiators. It emphasizes that compensation for breach of this obligation is subject to the general rules of civil liability. Finally, the research recommends that the Libyan legislature develop and broaden the provisions concerning mistake to encompass all factors that may impair the contracting party's will due to a lack of information.