Professional Documents
Culture Documents
Law On Contracts
Law On Contracts
Art. 1305 – C – M2M -1 binds himself with respect to the other to GS/RS
Art. 1159 – Obligations arising from contracts have the force of law between the
contracting parties and must be complied with in good faith.
ELEMENTS (ENA)
1. Essential – without them a contract cannot exist because these are indispensable
requirements.
(COC)
Determinate (Art. 1349), Future things (Art. 1347 1st par), within the
Commerce of man (Art. 1347 1st par), Possible (Art. 1348), Licit/Legal
(not contrary to law, morals, good customs, public policy, public order-
Art. 1347 3rd par)
Kinds:
Remuneratory – Contract of employment (employee gets remuneration
in terms of salary)
Onerous – contract of sale (seller parts to buyer ownership of a
determinate thing)
Pure beneficence/mere liberality of the benefactor – contract of donation
(donor gives a specific thing to donee practically for free)
2. Natural – these are found in certain contracts and are presumed to exist, unless excluded
by stipulation of the parties.
(W-H/En)
Warranty against hidden defects and
Warranty against eviction
3. Accidental – not considered as agreed upon by the parties unless expressly stipulated.
(S-TIP)
stipulated time and place of payment in a contract of sale
stipulated payment of interest in a contract of mutuum (loan)
STAGES IN THE LIFE OF CONTRACT (CoPeCo)
1. Preparation and Conception – this is the preparatory step taken by the parties leading to
the perfection of the contract, otherwise known as bargaining point.
2. Perfection/Birth – the meeting of minds regarding the subject matter and the cause of the
contract.
3. Consummation or death or termination – the point of time when the parties have
performed their respective obligations and the contract is put to an end.
KINDS
a. Nominate – with a special name designated by law, such as pledge, barter and
lease
b. Innominate – without any name designated by law/regulated by the stipulation of
the parties, by rules governing analogous contracts and by customs of the place
such as:
iv. Art. 1313 – Contract entered into in fraud of creditors (the defrauded
creditor can sue the debtor)
FORM OF CONTRACTS –
Rights/Actions – cession of
Power – general power of attorney/special power of
attorney
Real properties- sale of
Real rights – creation/transmission/modification/
extinguishment
Heir – hereditary rights/conjugal partnership of gains –
cession, repudiation/renunciation of
give consent
Cause- Incapacity of Fraud – in fraud
inexistent BOTH parties of creditors
to give
Intention not consent Litis pendentia-
ascertained things under
litigation
Law –declared
as void
3rd party
8. Type of Direct(main
COA) or same Direct ONLY Direct or
Attack Collateral Collateral
(other issue/
COA
Prepared by: