Contracts 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
Contract 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.
What article is this
Article 1305 CCP
Is a type of contract where one person is responsible for the perfection of the contract but this person is acting in two capacities, one in behalf of himslef, one in behalf of the another.
typically refer to agreements or contracts related to the purchase, sale, financing, or leasing of motor vehicles
Auto- contract
Example of Auto Contracts
- Sales/Purchase Agreement
- Loan/Financing Agreement
- Hire Purchase Agreement: Also known as a “rent-to-own” agreement
- Lease Agreement
- Service/Maintenance Agreement
Is Auto contract valid?
Yes, it is generally valid
What important is that there be at least 2 declaration of wills.
Examples of void auto contract
Sale of property of a person under guardship where the buyer is the guardian.
Natural Elements of Contract
C-O-C
Consensual
Object
Consideration
Natural Elements of a contract
Those exist even if parties don’t stipulate it.
example: Warranty against eviction
It protects the buyer from being forced out of the property they have purchased if someone else makes a valid claim of ownership or right to possession.
Warranty against eviction
Accidental elements of contract
Agreed upon parties, can’t exist without being stipulated.
example: interest
The meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract.
Consent
Stages of a contract
Negotiation
Perfection
Consummation
Stage of a contract also know as “preparation” or “ conception or generacion”
where there are offers and bargains
Negotiation
Stage of a contract also know as “birth”
Where is a definite agreement, and all essential elements are present.
Perfection
Stage of a contract also know as “ death” or “termination”
the terms in the contract are already performed.
Consummation
Two theories that are two different approaches used to interpret the formation of contracts and the intent of the parties involved. These theories focus on how the intentions of the parties are expressed and understood in the context of contract formation.
Cognition theory
Manifestation theory
also known as the subjective theory of contracts, emphasizes the ACTUAL subjective intentions of the parties. According to this theory, a contract is formed based on what the parties actually intended and understood at the time of making the agreement. The emphasis is placed on the individual mental states, beliefs, and intentions of each party. In other words, it seeks to determine what the parties subjectively intended to agree upon
Cognition theory
Under the this theory, the contract’s interpretation would be based on **how a reasonable **person would interpret and understand the parties’ actions, words, or other objective indicators of their intent. It seeks to determine the meaning that a reasonable person would derive from the parties’ external manifestations.
Manifestation
In the Philippines we abide with Cognition and Manifestation theory
True or Fakse
FALSE
we only abide with cognition theory,
Art 1319: Acceptance made by letteer or telegram does not bind the offerer except from the time it came to his knowledge.
An offer becomes ineffective upon Death, Civil interdiction, insanity or insolvency of either party before acceptance is conveyed.
Intervening events
When the offerer has allowed the offeree a certain period to accept, the offer may be withdrawn at any time BEFORE ACCEPTANCE.
TRUE or FALSE
TRUE
In option agreement, can the offer be withrawn?
General rule: YES
Exception: when the option is founded upon a consideration , as something paid or promised
