Pacta sunt servanda versus the social role of contracts: the case of Brazilian agriculture contracts

This study explores the instability created by contradictory court decisions related with contract breaches. Forward marketing contracts represent an important source of resources to finance Brazilian agriculture, however a large number of contract breaches were observed during a period of marked increase in soy prices. The study analyzed 161 judicial appeal decisions and a survey was carried with 70 farmers. The results show the difference of judges' interpretation and the existence of second order effects. The effects of court decisions were more requirements of guarantees and the reduction in the number of contracts. Those soybean farmers who did not breach their contracts have also been negatively affected by the strategic reactions of trading and processing companies. The concept of "social function of the contract" introduced in Brazilian civil code led to a higher degree of instability in contracts, raising transaction costs and motivating private economic sanctions.

Between the court and the revolution: the role of one ""merchant"" in America, capital of portuguese Empire

The article discusses the trajectory of Manuel Luis da Veiga which, as a merchant in Portugal (where he was born) invested to install a factory in Pernambuco after the arrival of Real Family in the Rio de Janeiro, considering the changes, in these days, in the Portuguese Empire. It focuses the political sociabilities, remarking the role of Veiga in the court and his writings on political economy, understanding both as two linked dimensions of his social practice. It points out that his trajectory shows a deeply changing world in terms of paradigms, impossible to be understood simply in patterns of what was old or new in the beginning of XIX century.