Week 1 Syllabus Flashcards
It 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 (1305)
What are the Classification of Contracts
Consensual v. Formal, Nominate v. Innominate, Unilateral v. Bilateral, Onerous v. Gratuitous, Express v. Implied, Executed v. Executory
It is perfected by mere consent.
Consensual
it also called solemn contract or that which is required by law for its efficacy to be in a certain specified form.
Formal
It has a specific name or designation law.
Nominate
It has no specific name or designation in law.
Innominate
When it creates an obligation on the part of only one of the parties.
Unilateral
when it gives rise to reciprocal obligations for both parties.
Bilateral
Each partner must contribute money, property or industry. A partner can contribute one, some or all of these.
Onerous
It means something is done voluntarily or for free, without any expectation of compensation or benefit in return.
Gratuitous
it means clearly stated.
Express
it means not directly stated but understood to be part of an agreement.
Implied
When it has been fully and satisfactorily carried out by both parties.
Executed
when it has not yet been completely performed by both parties.
Executory
Kinds of Contracts
Valid, Void, Voidable, Rescissible, Unenforceable
are those that meet all the legal requisites for the type of agreement involved and the limitations on contractual stipulation and are, therefore, legally binding and enforceable.
Valid
are those which, because of certain defects, generally produce no effect at all. They are considered as inexistent from its inception or from the very beginning.
Void
also called annullable contracts are those which possess all the essential requisites of a valid contract but one of the parties is incapable of giving consent, or consent is vitiated by mistake, violence, intimidation, undue influence, or fraud.
Voidable
are those validly agreed upon because all the essential elements exist and, therefore, legally effective, but in the case established by law, the remedy of rescission is granted in the interest of equity.
Rescissible
are those that cannot be enforced or given effect in a court of law or sued upon by reason of certain defects provided by law until and unless they are ratified according to law.
Unenforceable
What are the characteristics of Contracts?
Mutuality, Autonomy, Relativity, Consensuality of Contracts, & Obligatory Force
It 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.
Consent
Who are the Incapacitated persons that cannot give consent to a contract?
Minors, Insane or demented persons, Deaf-mutes who do not know how to write.
What are the vices of consent?
Mistake, Intimidation, Violence, Undue Influence, Fraud
Stages of Contracts
i. Preparation or Negotiation
ii. Perfection or birth
iii. Consummation or termination
this includes all the steps taken by the parties leading to the perfection of the contract. At this stage, the parties have not yet arrived at any definite agreement.
Preparation or Negotiation
this is when the parties have come to a definite agreement or meeting of the minds regarding the subject matter and cause of the contract, upon concurrence of the essential elements thereof.
Perfection of Birth
This is when the parties have performed their respective obligations and the contract may be said to have been fully accomplished or executed, resulting in the extinguishment or termination thereof.
Consummation or Termination
it is a false belief about something. It is an error or wrong appreciation of an element of the contract, specifically the cause or the object.
Mistake
this refers to physical coercion. The use of physical force and it should be cause of consent.
Violence
It can be psychological, moral or physical that results to vitiated consent.
Intimidation
it is when a person takes improper advantage of his power over the will of another, deprive him/her of a reasonable freedom of choice. This involves moral coercion, which may be just or lawful.
Undue Influence
It refers to all kinds of deception. It includes insidious machinations by one party leading another party to error.
Fraud
it takes place when the parties do not intend to be bound at all.
Absolute Simulation
It is when the parties conceal their true agreement.
Relative Simulation
Essential Requisites of a Contract
Consent, Object, Cause/Consideration
it is a subject matter of the contract. All things which are not outside the commerce of men, including future things.
Objects of Contract
It is the prestation or promise of a thing or service by the other.
Cause/ Consideration of Contract
