Article 1311

Question 1

True or false - Art 1311 states that :

Contracts take effect only between the parties, their assigns and heirs, except in case where the rights and obligations arising from the contract are not transmissible by their nature, or by stipulation or by provision of law. The heir is not liable beyond the value of the property he received from the decedent

Answer 1

True

Question 2

Persons affected by a contract

General Rule

There are 2 things to remember

Answer 2

A party’s right and obligations dervied form a contract are transmissible to the successors. Contract take effect only between the parties, assigns, and heirs.

This means that onbly the parties, their assigns and heirs can have rights and obligations under the contract

Question 3

Persons affected by a contract

Exceptions

There are 2 things to remember

Answer 3

When the rights and obligations arising from the contract are not transmissible

Question 4

Exceptions - When the rights and obligations arising from the contract are not transmissible

What are those 3

Answer 4

1) By their nature (like a contract involving personal qualifications)

2) By stipulation ( in accordance with the principle of freedom to contract)

3) By provision of law (as in agency, partnership, and commodatum, when death extinguishes the legal relationship)

Question 5

Cases when stangerse or 3rd persons affected by a contract

Third Person is

Answer 5

• one who has not taken part in a contract and is, therefore, a stranger to the contract. As a general rule, a 3rd person has no rights and obligations under a contract to which he is a stranger.

Question 6

Cases when stangerse or 3rd persons affected by a contract

There are cases when third persons may be affected by a contract those are:

Answer 6

• In contracts containing a stipulation in favor a 3rd person
• In contracts creating real rights
• In contracts entered into to defraud creditors
• In contracts which have been violated at the inducement of a 3rd perosn

Question 7

Meaning of stipulation pour autrui

stipulation pour autrui is a

Answer 7

stipulation in a contract clearly and deliberately conferring a favor upon a third person who has a right to demand its fulfillment provided he communicates his acceptance to the obligor before its revocation by the obligee or the original parties

Question 8

Classes of stipulation pour autrui

Donee-beneficiary

Creditor-Beneficiary

Answer 8

1) Those where the stipulation is intended for the sole benefit of such 3rd person. confers a gift, it being necessary in such case to apply the rules relating to donations
2) Those where an obligation is due from the promisee to the third person which the former seeks to discharge by means of such stipulation

Question 9

Requisites of stipulation pour autrui

What are the 5 Requisites of stipulation pour autrui

Answer 9

1) The contracting parties by their stipulation must have clearly and deliberately conferred a favor upona third person

2) The 3rd person must have communicated his acceptance to the obligor before its revocation by the obligee or the origical parties

3) The stipulation in favor of the 3rd person should be a part, not the whole, of the contract

4) The favorable stipulation should not be conditioned or compensated by any kind of obligation whatever

5) Neither of the contracting parties bears tehe legal representaiton or authorization of the t3rd part for otherwise the rules on agency willl aply