This paper considers the legal framework of the third-party litigation funding (TPLF) agreement in Latin America. A new development in the region with a fast-growing rate, TPLF does not have a specific regulation in the different countries. However, the common legal heritage deriving from European Continental law provides a shared conceptual basis to approach the TPLF agreement and find similar outcomes applicable in all of them. Relying both on Spanish and Latin American law and doctrine -also making a parallel with English Common Law-, the authors analyze the different obligations arising from the TPLF agreement. They find that some are commutative obligations and others of aleatory nature. This in turn helps to ascertain the rights acquired and the risks undertaken by each of the parties, as well as the similarities and differences of TPLF agreement with other -and more usual- Latin American legal institutions.