Current merchant account is a contract between two traders, there is a continuing business relationship. From their relationships are born credits and reciprocal debts, which are created successively. Merchandise, money, securities are sent to one another.
In the absence of a current account merchant contract, in the face of such a state of affairs, each transaction from which an obligation arose or a preexisting one extinguished would give rise to a special liquidation with the relevant money movements. The current account contract creates a mechanism by which particular settlements are avoided. All operations carried out are included in a common account and will be recorded as notes of the debit or credit and after the agreed term, the figures noted in each column will be added. At that time, the sums will be offset, making only the final balance payable, which will be borne by only one of the parties.
The current account merchnt represents thus a postponement of the chargeability of respective claims and settlement thereof at a later time by offsetting one.
A. Consensuality about Account Merchant
The current account contract is perfected with the simple consent of the parties (article 1252 CC). It is not subject to any formality. Book entries are used to check remittances, but are not required for the existence of the contract. They will have probative value.
It has been argued that it is real, saying that a remittance from one account merchant to another is required. Not so, because the current account contract is a normative contract that will channel the future activity of the parties but that does not suppose inescapably that activity. The fact that a current account contract is concluded does not require the parties to make remittances; Only requires that, in the case of remittances, they are reflected in the current account.
B. Commutativity about Account Merchant
Each contractor seeks and obtains an advantage in exchange for an equivalent service (article 1250 CC). The fact of not knowing who will be credited when closing the account merchant does not envelop a wing. There are no profits that depend on an uncertain event, but of the remittances voluntarily made, it will be the debtor (Article 1250 CC).
C. Other characters about Account Merchant
It is bilateral or signatory (Article 1248 CC) because it imposes reciprocal obligations on both parties.
It is burdensome, because it has as its object the usefulness of both contractors, one being taxed for the benefit of another (article 1249).
It is primary, subsists on its own, without the need for another convention (Article 1251 CC).
It has been claimed by some doctrine that the current account merchant contract is ancillary or a preliminary contract, but it is neither the one nor the other.The commercial current account contract subsists on its own without the need for any other contract (article 1251 CC). The preliminary contract is one for which a future contract is agreed, determining its essential clauses. The current account contract does not regulate future situations, as the credits or debits can derive from the most varied contractual modalities.
In an unnamed contract, since it is not regulated in an organic and complete by the Law.
Of successive execution and therefore of duration.
Normative, establishes among account merchant holders a general mechanism or way of regulating their future and eventual operations. In the normative contract there is coordination and regulation of a future and eventual activity.
The mercantile current account does not oblige to execute contracts but it establishes how their effects will be regulated for the eventual case that they are celebrated. Obviously, in order for such a contract to produce useful effects, it will be necessary for the parties to enter into legal transactions, from which credits or debts are created, permitting the operation of the commercial current account.