In this article the author examines a form of agricultural contract known as the colonia contract, which was widespread throughout the island of Madeira from 1750 and which was abolished in 1967. She argues that the publication of the liberal Civil Code of 1867 changed the rules concerning the operation of this contract. The landlord lost control of his economic property rights over the land. The change in the rules governing this type of contract partially explains the reduction in its use but the impact of the change is attributed to inefficiencies that already existed in the contract.