2 - Contracts and Obligations Flashcards
is that branch of law which determines the circumstances in which promises made by the parties to a contract shall be legally binding on them.
Law of Contract
rights against the world at large
‘jus in rem’
rights against particular persons
‘jus in personam’
a written or spoken agreement, especially one concerning employment, sales, or tenancy, that is intended to be enforceable by law (oxford dictionary)
Contract
meeting of the minds between two persons whereby one binds himself, with respect to the others, to give something or to render service
Contract
‘agreement to the [same] thing’
Consensus ad idem
when the two parties to a contract, both have the same understanding of the terms of the agreement
Meeting of the minds
The promise itself creates a manifestation of ____
Intent
is an arrangement between the parties which may or may not contain the necessary elements to be enforceable before a court of law
A “simple” agreement
means advantage or benefit moving from one party to the other
Consideration
starts from the inception and negotiation that may lead to the parties coming to the terms of the contract
PREPARATION OR CONCEPTION
marks the time the parties agree upon the object or subject matter and the cause or consideration of the contract
PERFECTION OR BIRTH
the implementation of the terms of the contract
CONSUMATION OR TERMINATION
An agreement which is enforceable by law at the option of one party but not at the option of the other or others is a voidable contract
Voidable Contract
An agreement not enforceable by law
Void Agreement
A contract which ceases to be enforceable by law
Void Contract
agreement in one which transgresses the public policy or which is criminal in nature or which is immoral
Illegal Agreement
Contract in one which cannot be enforced in a Court of law because of some technical defect such as absence of writing or where the remedy has been barred by lapse of time
Unenforceable Contract
If the terms and conditions of contracts are expressly agreed upon (whether words spoken or written) at the time of formation of contract
EXPRESS CONTRACT
One which is inferred from the acts or conduct of the parties or course of dealings between them
IMPLIED CONTRACT
is an unwritten contract that the parties presumably intended to agree on, as can be inferred from their actions, conduct, and the circumstances
Implied-in-Fact Contract
is a quasi-contract, in which there is an obligation imposed by law because of some special relationship between the parties, or because one of the parties would otherwise unjustly benefit from the relationship
Implied-in-Law Contract (Quasi Contract)
is one in which both the parties have performed their respective obligations
executed contract
that which remains to be carried into operation or effect
executory contract
Performance of only one party is outstanding.
is a contract created by an offer than can only be accepted by performance; can be formed by an express offer stating that the offer can only be accepted through performance.
ONE-SIDED OR UNILATERAL CONTRACT
Performance of both the parties remains outstanding.
It is An agreement formed by an exchange of a promise in which the promise of one party is consideration supporting the promise of the other party
BILATERAL CONTRACT.
are such as are founded upon and completed by the mere agreement of the contracting parties, without any external formality or symbolic act to fix the obligation
Consensual contracts
are those in which it is necessary that there should be something more than mere consent, such as a loan of money, deposit or pledge, which, from their nature, require a delivery of the thing
Real contracts
are those which have a particular name to distinguish them; as, purchase and sale, hiring, partnership, loan for use, deposit, and the like.
Nominate Contract
are those which have no particular names, as permutation and transaction, are so called
Innominate Contracts
The freedom to contract as guaranteed by the Constitution is articulated by ____ which provides that “the contracting parties may establish such stipulations, clauses, terms, and conditions as they may deem convenient, provide they are not contrary to law, morals, public order and public policy
Article 1306 of the Code
The parties cannot stipulate on matters against the law
CONTRARY TO LAW
Contracts offending morals or good customs are void and without effect
CONTRARY TO MORALS AND GOOD CUSTOMS
If a contract transgresses public policy or public order, the contract is void.
CONTRACTS AGAINST PUBLIC ORDER AND PUBLIC POLICY
The law gives equal standing or treatment upon the parties such that the validity or compliance with the contract cannot be left to the sole will of one of them.
EQUALITY OF PARTIES UNDER CONTRACT
If a contract should contain stipulations granting favor to a person not a party to the contract, the latter may demand its fulfillment provided he communicates his acceptance to the obligor before revocation
pour autri
are those rights relating to immovable properties, i.e. land and buildings, like the right belonging to a mortgagee or lessee of a piece of land
Real Rights
is the conformity of wills of contracting parties upon the object and cause as well as to the other terms and conditions of the contract
Consent
can arise if contract involves minors, persons lacking mental capacity, aliens, convicts, and in some states-married women
Contractual Capacity
the minor must return to the adult the property or other consideration that was the object of the contract
Duty of Restoration
ability to have the contract set aside
Rescission
Minor has indicated approval of the contract.
Minor has indicated an intention to be bound by the provisions of the contract
Ratification
Things that directly foster the minor’s well-being
Are things indispensable, or things proper and useful, for the sustenance of human life
Necessaries
A false representation of a matter of fact—whether by words or by conduct, by false or misleading allegations, or by concealment of what should have been disclosed—that deceives and is intended to deceive another so that the individual will act upon it to her or his legal injury.
FRAUD
Guilty knowledge that is sufficient to charge a person with the consequences of his or her acts
Scienter
Occurs when the parties are wrong about the existence or absence of a past or present fact that is material to their transaction
Mistake
Other party has forced one into the contract against one’s will
Duress
is a doctrine in contract lawthat describes terms that are so extremely unjust, or overwhelmingly one-sided in favor of the party who has the superiorbargaining power and that they are contrary to good conscience
Uncoscionability
failing to perform any term of a contract, written or oral, without a legitimate legal excuse.
Breach of Contract
A generic term for any type of legal duty or liability
Obligation
is one for which no legal alternative exists since it is an unconditional duty
Absolute Obligation
arises as a result of an enforceable promise, agreement, or contract
Contractual Obligation
is spelled out in direct and actual terms, and animplied obligationis inferred indirectly from the surrounding circumstances or from the actions of the individuals involved
Express Obligation
is one that binds two or more people to fulfill whatever is required, and aseveral obligationrequires each of two or more individuals to fulfill the obligation in its entirety by himself or herself
Joint Obligation
is binding upon the conscience and is fair but is not necessarily enforceable in law
Moral Obligation
is one that must be performed since it is the main purpose of the contract that contains it, whereas asecondary obligationis only incidental to another principal duty or arises only in the event that the main obligation cannot be fulfilled
Primary Obligation
is a penalty, such as the obligation to pay extra money if the terms or conditions of an agreement cannot be satisfied
Penal Obligation
