Contracts Article 1305-1355 Flashcards
A contract is a meeting of minds between two persons whereby one binds himself, with a respect to the other, to give something or to render some service.
ARTICLE 1305
The contracting parties may establish such stipulations, clauses, terms and conditions as they may deem convenient, provided they are not contrary to law, morals, good customs, public order, or public policy.
ARTICLE 1306
Innominate contracts shall be regulated by the stipulations of the parties, by provisions of Titles I and II of this book, by the rules governing the most analogous nominate contracts, and by customs of the place
Article 1307
The contract must bind both contracting parties; its validity or compliance cannot be left to the will of one of them
ARTICLE 1308
The determination of performance may be left to a third person, whose decision shall not be binding until it has been made known to both contracting parties
ARTICLE 1309
The determination shall not be obligatory if it is evidently inequitable. In such case, the courts shall decide what is equitable under the circumstances
ARTICLE 1310
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.
If a contract should contain some stipulation in favor of a third person, he may demand its fulfillment provided he communicated his acceptance to the obligor before its revocation. A mere incidental benefit or interest of a person is not sufficient. The contracting parties must have clearly and deliberately conferred a favor upon of a third person.
ARTICLE 1311
In contracts creating real rights, third persons who come into possession of the object of the contract are bound thereby, subject to the provisions of the Mortgage Law and the Land Registration Laws
ARTICLE 1312
Creditors are protected in cases of contracts intended to defraud them
ARTICLE 1313
Any third person who induces another to violate his contract shall be liable for damages to the other contracting party
ARTICLE 1314
Contracts are perfected by mere consent, and from that moment the parties are bound not only to fulfillment of what has been expressly stipulated but also to all the consequences which, according to their nature, may be in keeping with good faith, usage and law
ARTICLE 1315
Real contracts such as deposit, pledge and commodatum, are not perfected until the delivery of the object of obligation
ARTICLE 1316
No one may contract in the name of another without being authorized by the latter, or unless he has by law a right to represent him.
A contract entered in the name of another by one who has no authority or legal representation, or who has acted beyond his powers, shall be unenforceable, unless it is ratified, expressly or impliedly, by the person on whose behalf it has been executed, before it is revoked by the other contracting party.
ARTICLE 1317
There is no contract unless the following requisites concur:
1. Consent of the contracting parties
2. Object certain which is the subject matter of the contract;
3. Cause of the obligation which is established
ARTICLE 1318
Consent is manifested by the meeting of the offer and the acceptance upon the thing and the cause which are to constitute the contract. The offer must be certain and the acceptance absolute. A qualified acceptance constitutes a counter offer.
Acceptance made by letter or telegram does not bind the offerer except from the time it came to his knowledge. The contract, in such a case, is presumed to have been entered into the place where the offer was made.
ARTICLE 1319
An acceptance may be express or implied
ARTICLE 1320
The person making the offer may fix the time, place, and manner of acceptance, all of which must be complied with.
ARTICLE 1321
An offer becomes ineffective upon the death, civil interdiction, insanity, or insolvency of either party before acceptance is conveyed.
ARTICLE 1323
When the offerer has allowed the offeree a certain period to accept, the offer may be withdrawn at any time before acceptance by communicating such withdrawal, except when the option is founded upon a consideration, as something paid or promised
ARTICLE 1324
Unless it appears otherwise, business advertisements of things for sale are not definite offers, but mere invitations to make an offer
ARTICLE 1325
Advertisements for bidders are simply invitations to make proposals, and the advertiser is not bound to accept the highest or lowest bidder, unless the contrary appears
ARTICLE 1326
The following cannot give consent to a contract:
1. Unemancipated minors
2. Insane or demented persons, and deaf-mutes who do not know how to write
ARTICLE 1327
Contracts entered into during a lucid interval are valid. Contracts agreed to in a state of drunkenness or during a hypnotic spell are voidable.
ARTICLE 1328
The incapacity declared in Article 1327 is subject to the modification determined by law, and is understood to be without prejudice to special disqualifications established in the laws
ARTICLE 1329
A contract where consent is given through mistake, violence, intimidation, undue influence, or fraud is voidable
ARTICLE 1330
In order that mistake may invalidate consent, it should refer to the substance of the thing which is the object of the contract, or to those conditions which have principally moved one or both parties to enter into the contract
Mistake as to the identity or qualifications of one of the parties will vitiate consent only when such identity or qualifications have been the principal cause of the contract
A simple mistake of account shall give rise to its correction
ARTICLE 1331
When one of the parties is unable to read, or if the contract is in a language not understood by him, and mistake or fraud is alleged, the person enforcing the contract must show that the terms thereof have been fully explained to the former.
ARTICLE 1332
There is no mistake if the party alleging it knew the doubt, contingency or risk affecting the object of the contract
ARTICLE 1333
Mutual error as to the legal effect of an agreement when the real purpose of the parties is frustrated, may vitiate consent
ARTICLE 1334
There is violence when in order to wrest consent, serious or not irresistible force is employed.
There is intimidation when one of the contracting parties is compelled by a reasonable and well grounded fear of an imminent and grave evil upon his person or property, or upon the person or property of his spouse, descendants or ascendants, to give his consent
To determine the degree of intimidation, the age, sex, and condition of the person shall be borne in mind.
A threat to enforce one’s claim through competent authority , if the claim is just or legal, does not vitiate consent
ARTICLE 1335
Violence or intimidation shall annul the obligation, although it may have been employed by a third person who did not take part in the contract.
ARTICLE 1336
There is undue influence when a person takes improper advantage of his power over the will of another, depriving the latter of a reasonable freedom of choice. The following circumstances shall be considered: the confidential, family, spiritual and other relations between the parties, or the fact that the person alleged to have been unduly influenced was suffering from mental weakness, or was ignorant or in financial distress.
ARTICLE 1337
There is fraud when, through insidious words or machinations of one of the contracting parties, the other is induced to enter into a contract which, without them, he would not have agreed to.
ARTICLE 1338
Failure to disclose facts, when there is a duty to reveal them, as when the parties are bound by confidential relations, constitutes fraud.
ARTICLE 1339
The usual exaggerations in trade, when the other party had an opportunity to know the facts, are not in themselves fraudulent.
ARTICLE 1340
A mere expression of an opinion does not signify fraud, unless made by an expert and the other party has relied on the former’s special knowledge
ARTICLE 1341
Misrepresentation by a third person does not vitiate consent, unless such misrepresentation has created substantial mistake and the same is mutual.
ARTICLE 1342
In order that fraud may make contract voidable, it should be serious and should not have been employed by both contracting parties
Incidental fraud only obliges the person employing it to pay damages
ARTICLE 1344
Simulation of a contract may be absolute or relative. The former takes place when the parties conceal their true agreement
ARTICLE 1345
An absolutely simulated or fictitious contract is void. A relative simulation, when it does not prejudice a third person is not intended for any purpose contrary to law, morals, good customs, public order or public policy binds the parties to their real agreement.
ARTICLE 1346
All things which are not outside the commerce of men, including future things, may be the object of a contract. All rights which are not intransmissible may also be the object of contracts
No contract may be entered into upon future inheritance except cases expressly authorized by law
All services which are not contrary to law, morals, good custom, public order or public policy may likewise the object of a contract.
ARTICLE 1347
Impossible things or services cannot be the object of contracts
ARTICLE 1348
The object of every contract must be determinate as to its kind. The fact that the quantity is not determinate shall not be an obstacle to the existence of the contract, provided it is possible to determine the same, without the need of a new contract between the parties.
ARTICLE 1349
In onerous contracts the cause is understood to be , for each contracting party, the prestation or promise of a thing or a service by the other; in remuneratory ones, the service or benefit which is remunerated; and in the contracts of pure beneficence, the mere liberality of the benefactor.
ARTICLE 1350
The particular motives of the parties in entering into a contract are different from the cause thereof
ARTICLE 1351
Contracts without cause, or with unlawful cause, produce no effect whatever. The cause is unlawful if it is contrary to law, morals, good customs, public order or public policy.
ARTICLE 1352
An offer made through an agent is accepted from the time acceptance is communicated to him
ARTICLE 1322
The statement of a false cause in contracts shall render them void, if it should not be proved that way they were founded upon another cause which is true and lawful.
ARTICLE 1353
Although the cause is not stated in the contract, it is presumed that it exists and is lawful, unless the debtor proves the contrary
ARTICLE 1354
Except in cases specified by law, lesion or inadequacy of cause shall not invalidate a contract, unless there has been fraud, mistake, or undue influence.
ARTICLE 1355
