Contracts Flashcards
An agreement through meeting of the minds between two persons whereby one binds himself, with respect to the other, to give something or to render service.
Contract
It has the force of law between the parties and has been complied with in good faith
Contract
Refers to the legal aspect of an agreement as a contract
Force of law
Denotes fairness and honesty of intention in the performance of the contract, so as to not destroy or injure the right of one of the parties
In good faith
Obligation that arises from contracts
Conventional obligation
Characteristics of Contract
Obligatory, Autonomy, Mutuality, Relativity, Consensuality
Force of law between the contracting parties compel them to perform under the threat of civil action or lawsuit
Obligatory
Such stipulations, clauses, terms, and conditions are established by the contracting parties as they may deem convenient, provided they are not contrary to law, morals, good customs, public order, or public policy
Autonomy
Involve both of the parties, so that the validity or compliance of a contract cannot be left to the will of only one of them
Mutuality
Effectivity is 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
Relativity
Mere consent that perfected the contract should bound the parties to the fulfillment of what has been expressly stipulated, and all the consequences which, according to their nature, may be in keeping with good faith, usage, and law
Consensuality
Essential Elements of Contract
Consent, Object, Cause (causa)
A meeting of the minds between parties with respect to the object and cause
Consent
The thing, right, or service to be provided or performed under the contract
Object
Essential purpose or reason for the contract
Cause (causa)
Stages of Contract
Preparatory or conception, Perfection or birth, Consumption or death
Process of formation through bargaining or negotiation, which begins from the time the prospective contracting parties manifest their interest in the contract that leads to the perfection of the contract
Preparatory or conception
Either party may stop the process or withdraw an offer made.
Preparatory or conception
Process of arriving at a definite agreement or meeting of the minds as to the elements of the contract, particularly the essential ones (object and cause)
Perfection or birth
The fulfillment of the respective obligations of the parties under the contract, resulting to its accomplishment and extinguishment
Consumption or death
The form of a contract is manifested by:
intent or will, expression of such intent or will
Its psychological existence; only conceptual and cannot have legal value
Intent or will
Its physical or logical existence; substantial and can have legal value
Expression of such intent or will
Classifications of Contract according to form
Informal contact, Formal contract
In any form as long as all the requisites or essential elements for its validity are present
Informal contact
In a form required by the law
Formal contract
Classifications of Contract according to the involvement of the parties
Unilateral contract, Bilateral contract
One party is bound to fulfill an obligation for an act by
another party
Unilateral contract
Both parties are bound to fulfill their mutual promises or
respective obligation to each other reciprocaIIy
Bilateral contract
Classifications of Contract according to name or designation
Nominate contract, Innominate contract
Has specific name or designation in law; such as commodatum, lease, agency, and sale
Nominate contract
Has no specific name or designation in law; shall be regulated by the stipulations of the parties, by the Civil Code, by the rules governing the most analogous nominate contracts, and by the customs of the
place
Innominate contract
do ut facias
I give that you may do
facia ut des
I do that you may give
facio ut facias
I do that you may do
Classifications of Contract according to perfection
Consensual contract, Real contract, Solemn contract
Perfected by mere consent; such as the
contract of sale, lease and agency
Consensual contract
Perfected by mere consent and the delivery of the object;
such as deposit, pledge and commodatum
Real contract
Perfected through compliance with the form required by
Iaw; identical with formal contract
Solemn contract
Classifications of Contract according to cause or purpose
Onerous contract, Remuneratory contract, Gratuitous contract
