CONTRACT Flashcards
Is a meeting of minds between two persons whereby one
binds himself, with respect to the other, to give
something or to render some service
CONTRACT
An obligation whereby an agreement entered unto upon
sufficient consideration to do or not to do a particular thing
CONTRACT
T/F
While all contracts are agreements, not all agreements are
contracts
T
T/F
Only those that give rise to civil obligation is called a
contract
T
Every transaction between a dentist and a patient is a
contract, either express or implied, or partly expressed and partly implied
LEGAL NATURE OF THE TRANSACTION
FORMS OF CONTRACT:
- Expressed Contract
- Implied Contract
Terms and conditions are made known to each part either in writing or verbal
Expressed Contract
One or more terms or conditions are not definitely known but
are taken for granted by operation of law
A concluded or inferred agreement from the overt acts or conduct of the parties which the law presumed or ascribed as the manifestation of intention of parties to enter into a
contract
Implied Contract
Every contract contains an ____
offer, acceptance, and consideration
12 common contract terms
- Acceptance
- Arbitration
- Boilerplate
- Breach
- Conditions
- Consideration
- Damages
- Entire Agreement
- Force Majeure
- Guaranty
- Recitals
when you accept an offer, it must be an unconditional and unequivocal acceptance to the exact terms of the offer; if not, it becomes a counteroffer
Acceptance
arbitration clauses set up provisions whereby
independent and binding arbitrators settle contractual disputes
Arbitration
Standard contract clauses use universal language as a type of
template
Usually found at the end of the contract
Boilerplate
Boilerplate clauses include
arbitration clauses, entire
agreement clauses, and force majeure clauses
when one part of the contract accuses the other party
of not following the terms of the contract
Breach
provisions of a contract that specify a particular occurrence
Conditions
something of value that is bargained for and
given in exchange for the promise contained in the offer
Consideration
something such as monetary compensation, that is
awarded for a breach of contract
Damages
a clause that protects the contracting parties by declaring that the contract represents the complete and final agreement between the parties
Entire Agreement
a clause in contracts that excuses a part from not performing their contractual obligations due to unforeseen
events beyond their control
Force Majeure
guaranty of loan is an agreement where one party
guarantees a second party’s loan obligation to a third party
Guaranty
is a promise to carry out the terms of the proposed transaction, in exchange for the consideration
Offer
introductory paragraphs of a contract that describe
the nature of the contract and why each party has elected to enter
into the agreement
Recitals
3 ESSENTIAL REQUISITES OF CONTRACTS
- Consent
- Object or Subject Matter
- Cause or Consideration
First element
Should be intelligently given with an exact idea of what it
refers to be free and spontaneous by the contracting parties
Consent
indispensable element for the existence of consent
Legal capacity
T/F
legal consent presuposses legal capacity
T
consent given through the following renders the contract voidable
Visiation of Consent
transgresses intelligence
Mistake
transgresses freedom of consent
Violence/force
transgresses freedom of consent
Intimidation
transgresses reasonable freedom of choice
Undue influence
transgresses spontaneousity
Fraud
The thing which is agreed upon receiving the consideration to
do or not to do
Thing, right, or services which is the subject matter of the
obligation arising from the contract
The aim of purpose of the contract
Object or Subject Matter
It must not be contrary to law, morality, good customs,
public order, and public policy
Object or Subject Matter
A promise or a performance bargained by a promisor in
exchange of that promise
Cause or Consideration
the cause is the prestation or promise of a thing or service by the other i.e., dental treatments
onerous contracts
the cause is the mere
liberality of the benefactor i.e., donation
contracts of pure beneficence
Contracts are perfected by
mere consent
All contracts in Civil Code are ____, and are perfected from the moment the parties agree as regards the definite subject matter and a fixed consideration
consensual
Consent is manifested through ___
acceptance
4 DOCTRINES APPLIED IN CONTRACTS
- do ut des
- Facio ut facias
- Facio ut des
- Do ut facias
“I give that you may give”;
applied to a giving of money or goods under a promise of repayment in money or goods, and to loans of money, and contracts of sale
do ut des
“I perform so that you are to perform”;
signifies an agreement to do work for another if the other will do work for him; or to do any other positive acts on both sides; or it maybe to forbear on o
Facio ut facias
“I do that you may give”;
a valid and enforceable contract results from an implied consent where one party renders service to another and the latter accepts such service without proof that the same is given
gratuitously
Facio ut des
“I pay in order that you may perform”;
when one agrees with the employee to give such wage based on performance
Do ut facias
Contracts that was validly or legally entered by two consenting/contracting parties
One party would suffer much damages
RESCISSIBLE CONTRACTS
- Those where one of the parties is incapable of giving consent to a contract i.e. minor aged contracting party
a) Within 5 years of attaining majority age, you can file a void or annulment of contract - Those where the consent is vitiated by mistake, violence, intimidation, undue influence, or fraud
Voidable contract
These contracts are binding, unless they are annulled by a proper action in court; they are susceptible of ratification
Voidable contract
When contract is not in writing,
There is no basis to enforce the contract obligations
UNENFORCEABLE CONTRACTS
Contracts that are null and void from the very beginning because of its impossibility
These contracts cannot be ratified, neither can the right to set up the defense of illegality be waived
VOID CONTRACTS
