Law on Contracts

Question 1

Contract Definition

Answer 1

Meeting of minds between two person whereby one bind himself with respect to the other to give something or to render some service

Question 2

Auto Contracts

Answer 2

Contract whereby one person is responsible for the perfection of the contract, but this person is acting in two capacities

Question 3

Stages of a Contract

Answer 3

1. Negotiation (Preparation, Conception, Generacion)
2. Perfection (Birth)
3. Consummation (Death, Termination)

Question 4

Fundamental Characteristics of a Contract

Answer 4

1. Mutuality
2. Autonomy
3. Consensuality
4. Relativity
5. Obligatory Force

Question 5

Mutality

Answer 5

-Must bind both contracting parties
-Compliance cannot be left to the will of one of the parties
-Determination cannot be left to a third party

Question 6

Escalation Clause

Answer 6

where one increases/decreases compensation of one parties

Question 7

Autonomy

Answer 7

Contracting parties may establish such stipulations, clauses, terms, and conditions as they may deem convenient provided they arent contrary to good morals, law, public order or public policy

Question 8

Consensuality

Answer 8

A contract is perfected by meeting of minds, unless for some requires additional requisites like real contracts and solemn contracts

Question 9

Contract of Adhesion

Answer 9

contract where there is already a prepared form containing stipulations desired by one party whereby the later only asks the other party to agree

Question 10

Relativity of Contracts

Answer 10

contract is only between their heirs, their assigns and the parties which are referred to as privies

Question 11

Obligatory Force

Answer 11

Contracts have the force of law binding upon them