SECTION 3.

- Cause of Contracts

 Ang Cause of Contracts ay reason o dahilan kung bakit ka makikipag

kontrata.

ART. 1350. In onerous contracts the cause is understood to be, for each contracting
party, the prestation or promise of a thing or service by the other; in rumenaratory
ones, the service or benefit which is rumenerated; and in contracts of pure
beneficence, the mere liberality of the benefactor. (1274)

 Halimbawa: Bumili ka ng Relo

Bilang creditor bumili ka ng relo dahil gusto mong magkaroon ng relo.
Bilang debtor naman nagbenta siya ng relo dahil gusto niyang kumita
Ngayon yung cause doon ay yung relo at yung service.

Meaning of Cause

 Ang Cause ay yung thing, prestation or yung object.

Cause (causa) is the essential reason or purpose which the contracting parties
have in view at the time of entering into the contract. It something bargained for a given
by a party in exchange for a legally enforceable promise of another.

It is the Civil Code term for consideration in Anglo American or common law.

Halimbawa: Gusto mong kumain ng Burger so nagpunta ka sa isang Burger Avenue

ngayon nag order ka ng Burger ang sabi mo ay mamaya mo nalang babayaran so in
cause of contracts sa view ng debtor is yung bayad mo sa Burger at yung view naman
creditor is yung burger at yung service.

Cause distinguished from object.

In a bilateral or reciprocal contract like purchase and sale, the cause for one is the
subject matter or object for the other, and vice versa. Hence, the distinction is only
a matter of viewpoint.
EXAMPLE:

 S sells a watch to B for P10,000. As far as S (seller) is concerned, the

subject matter or object is the watch and the cause is the price. As regards B (buyer),
the subject matter or object is the price and the cause is the watch.
A school of thought, however, makes these distintions:

The cause for S is the delivery of the price and for B, the delivery of the watch. But to both
S and B, the subject matter of the transaction is the watch. (see IV Tolentino, Civil Code,
1973 ed., p. 501.)

In any case, each party in a bilateral contract is both a promisor and a promise with the
mutual promises consulting the cause or consideration.

 Halimbawa:
Pumunta ka sa isang Samgy restaurant pagkatapos ang sabi mo gusto mo ng
samgy tapos magbabayad ka mamaya so ikaw magiging promisor ka at yung
restaurant magiging promise, Tapos sabi ng Crew bibigyan ka niya ng samgy so
siya naman yung magiging promisor ikaw naman is promisee.

Classification of contracts according to cause.

They are:

(1) Onerous or one the cause of which, for each contracting party is the
prestation or promise of a thing or service by the other. In other words, in this
contract, the parties are reciprocally obligated to each other.
EXAMPLES:
Sale; lease of thing; partnership
 Kapag sinabing reciprocal obligation kapag nag deliver ka ng pera dapat
ide-deliver yung thing.
(2) Remuneratory or remunerative or one the cause of which is the service or
benefit which is remunerated. The purpose of the contract is to reward the service
that been previously rendered by the party remunerated.
EXAMPLES:
X rendered services as the defense counsel of Y agreed to pay X P10,000 for said
service.
 Halimabawa:
Pumunta ka sa isang restaurant tapos sa restaurant na iyon ay biglaang nagkaroon
ng sunog, Na trap ka sa restaurant pero tinulungan o iniligtas kang makalabas ng
may ari ng restaurant doo sa sunog. So bilang pasasalamat binigyan mo siya ng
P10,000 at yan ang tinatawag na remunerated.
REMUNERATED- Ibinigay na kapalit sa ginawang kabutihan
(3) Gratuitous or one of the cause of which is the liberality of the benefactor or
giver.
EXAMPLES:
Commodatum; pure donation; guaranty or suretyship unless there is stipulation to
the contrary (Art. 2048.); mortgage given by a third person to secure an obligation
of a debtor (see Art. 2085, last par.) unless a consideration is paid for such
mortgage; condonation of a debt.
 Halimbawa:
Kung paano mo hiniram yung isang bagay ganun mo siya ibabalik.
Nanghiram ng Smart phone yung bestfriend mo, Noong kukunin mona yung Smart
phone sa bestfriend mo ay may gasgas na so sinabi mo sa bestfriend mo “ayy! May
gasgas na sige sayo nalang, so magiging donation na siya non kapag sinabi kaseng
gratuitous ay donation.

ART. 1351. The particular motives of the parties entering into a contract are
different from the cause thereof.(n)
Meaning of motive
Motive is the purely personal or private reason which a party has in entering into a
contract. It is different from the cause of the contract.
 Halimbawa:
Cause vs Motive
Cause ay subject matter or prestation, Motive ay motibo o personal reason
Yung motive pweding good, bad

Halimbawa:
Ibinenta mo yung smartphone mo tapos yung perang natangap mo o yung bayad
doon sa smartphone mo ay ipang re-rebond mo “good motive “ siya non kase
positive at yung “bad motive” naman ay ibinenta mo yung smartphone mo para
bumili ng drugs.
Cause distinguished from motive
The differences are as follows:
(1) Cause is the immediate or direct reason, while motive is the remote or
indirect reason
 Direct reason- magkaroon ng pera
 Motive is the remote or indirect reason- makapag pa rebond
(2) Cause is always known to other contracting party, while motive may be
unknown;
(3) Cause is an essential element of a contract while motive is not; and
 Illegal walang valid contract
(4) The illegality of the cause affects the validity of a contract, while the illegality
of one’s motive does not render the contract void.

The motive may be regarded as the cause in contract if it is founded upon a

fraudulent purpose to prejudice a third person.

EXAMPLE:

S sells his land to B for P100,000. For S, the cause or consideration is the
P100,000. But his motive or private reason may be to use the money in business or
to buy an other land. The motives which impel one to a sale or purchase are not
always the cause of the contract as that term is understood in law. With one’s
motives, the law is not concerned.
 If the motive of S in selling his land is defraud C, a creditor, who has a right to
go after the land for it’s satisfaction of an indebtedness of S, C may ask the court for
the rescission or cancellation of the sale. (see Arts. 1381[3], 1387)’

ART. 1352. Contracts without cause, or with unlawful cause, produce no effect
whatever. The cause is unlawful if it is contrary to the law, morals, good customs,
public order or public policy. (1275a)
ART. 1353. The statement of a false cause in contracts shall render them void, if it
should not be proven that they were founded upon another cause which is true and
lawful.

Requisites of cause
1. It must be exist at the time the contract is entered into.
- No cause, No effect
2. It must be lawful (Ibid)
- Not contrary to the law, morals, good customs, public order and
public policy
3. It must be true and real.

 Effects of Absence of cause

- Absence or want of cause means that there is a total lack of any valid
consideration for the contract.
- Contract without cause confer no right and produce no legal effect
whatever thus.
 Effect of failure cause
- Failure of cause or inadequacy of cause does not render a contract
void.
Ex. Failure to pay the full amount stipulated in a contract does not nullify the contract
immediately.

 Effect of Illegality of cause

- It implies that there is a cause but the same is unlawful or illegal
- Makes the contract null and void
Ex. A promise of marriage based upon carnal connection.

 Effect of falsity of cause

- By falsity of cause is meant that the contract states a valid consideration
but such statement is not true.
 - “Statement of a false cause in contracts shall render them void, if it should
not be proven that they were founded upon another cause which is true and lawful.”
The contract is void because the same actually does not exist.
- A false cause may be erroneous or stimulate.
Ex.
X promise to give to Y P1,000 as payment for past services allegedly render by Y
which in truth and in fact have not been rendered; or for a carabao which unknown to
X is already dead.
Here, the cause of X, the service remunerated or the promise of Y to sell the carabao,
is erroneous as it is based upon facts believed to be the existing, but really inexistent.

Article 1354; Although the cause is not stated in the contract, it is presumed that it exists
and is lawful, unless the debtor proves the contrary. (1277)
Cause presumed to exist and lawful.
It is not necessary that thw cause be expressly stated in the contract. The presumption is that the
cause exists and is lawful unless the debtor proves the contrary. This presumption is in accord
with the natural order of things. Ordinarily, a person will not part with his property unless there ia
consideration.
The presumption is not conclusive but only prima facie and may be contradicted bu contrary
evidence.
EXAMPLE;
M issued in favor of P a promissory note which recites: "Thirty days after date, I promise to pay P
or order the amount of P10,000." Signed M.
Although the promissory note does not mention the consideration for the debt and the same is
lawful. If M claims otherwise, then he has the burden to prove his allegation.
Article 1355; 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.
Effect of lesion or inadequacy of cause.
1. General rule- Lesion or inadequacy of cause does not if itself invalidate or contract.
A person who willingly enters into a contract will be held bound by its terms though the exchange
of benefits may seem to be inequitable or unfair to him. The law assumes that the parties
themselves remain the best judges of how much their bargain is worth.
The effect of lesion or inadequacy of cause when it resulted from fraud, mistake or undue
influence is that the lesion became a good ground for rescission of the contract.