I.

CONCEPT OF CONTRACTS
> This statement about contracts is from article 1305 of the civil code. Contracts
are perhaps, a sort of tangible or intangible agreements between the minds of 2
parties. Moreover, it is a bridge that connects one person to another, with regards
to giving or receiving something that can be of benefit or loss for one another,
and vice versa.

In the case of SM Land vs BCDA, a contract is defined in more meaningful words,

such as that it is a juridical convention that is manifested in legal form, in this
statement alone, it can be assumed that a contract is sort of an agreement. It is
also stated from the case that one or more persons bind themselves in a contract in
favor of another or others. Which means there was in fact an agreement that
happened before a contract is to exist. And for a contract to be agrred upon and to
exist. A meeting of 2 parties must first be than. This is how a contract is
conceptualized.

Furthermore, in the case of SM land and BCDA, a problem lies in an existing

contract's agreement. Wherein SM land tries to demand, that its unsolicited
proposal be subjected for a competitive challenge. However, this demand was not
heard out to be valid because this kind of demand was not within the agreements of
the contract.

II. CLASSIFICATION OF CONTRACTS

> For the classification of contracts, there are 3 types. Contracts are classified
as, (1) Consensual contracts, (2) Real contracts, (3) Solemn contracts. Consensual
contracts are the most basic class of contracts. It is because it is conceptaulized
and created just by a mere meeting of the parties involved. Examples are sales
contracts and lease contracts. On the other hand, real contracts are contracts that
require delivery of an object, such as deposits for perfection. And lastly, Solemn
contracts. This class of contract shall strictly be in the form of writings. Such
as donations of real estate and movables worth 5000, transfer of large cattle, and
partnerships to which immovables are contribured.

In the case of SM land vs BCDA, the class of contract that is present was a
perfected contract consensual contract. The contract at hand is a perfected
contract because all of the elements of a valid contract are present. It is a
consensual contract as well because, there was a meeting of minds and, consent
itself was the one in question in the case.

III. SPECIAL TYPES OF CONTRACTS

> The 2 types of special contracts are contract of adhesion, and stipulation pour
atrui. A contract of adhesion, is a contract which only one party creates the
contract. That contract is independent of the 2nd party's influence. The second
party does not have the right to modify or negotiate the terms in the contract, the
second party's only choice is to take, or leave the contract. Examples of contracts
of adhesion are leases, insurances and mortgages. The second special contract is
stipulation pour atrui, this type of special contract, particularly gives a chance
for 3rd parties a cause of action. This right given to a third party is unique, and
is not given in other types of contracts. The contract of adhesion is further
adressed in the case of Cabanting vs BPI.

IV. ELEMENTS OF CONTRACTS

> As for the elements of contracts, there are 3. These are consent, object, and
cause. First to discuss is consent. In its most basic sense, first, consent puts
emphasis on the legal capacity of a party. A party should have a capacity that is
capable enough to understand things such as an agreement, which leads the parties
to have conformity, this conformity must be spontaneous, intelligent and free from
vices. And it must be real and genuine. Second, is object. There must be an object
at hand where a contract is needed and will revolve around. And lastly, a cause. A
claim for a property for example may be ruled out by a contract. And there are
various causes that may dictate why one party for example wants the claim towards
that property.

In the case of SM land vs BCDA consent was manifested by the signatures of the
signatories between the two parties as stated in the case, the object is the
solicited proposal for a competetive challenge. And then lastly, the cause, the
cause in the case was of their interest in the sale or acquisition and development
of the property.

V. FORMS OF CONTRACTS
> As for the form of contracts, there can be verbal or written contracts. Contracts
whatever form they might take, is always obligatory. This is a general rule
according to our past discussions. However, a contracts form may vary, this depends
on the law. For instance, if the law requires you specifically to create a contract
in the form of a written document, then you have no other choice than to create a
contract in a form of a written document. Types of contracts wherein the law
dictates a certain form to be followed are contracts of donation of real property,
partnerships where immovable properties are contributed, and acts and contracts
which have for their object the creation, transmission, modification, or
extinguishment of real rights over immovable property.

VI. REFORMATION OF CONTRACTS

> As we all know, contracts come about because of persons who are trying to make an
agreement on a certain matter. Perhaps, people who create contracts may be prone to
errors, in stipulating the contract agreements, into commiting typographical
errors, and such. And because of these factors, there comes a rise for a solution
which is reformation of contracts. Reforming contracts, is useful remedy to conform
the real intentions of the parties that might have been clouded, or made unclear
because of mistakes, accidents and even fraud.

In the case of Bentir vs Leanda. There was a call for a reformation of a contract
of lease. However, that plead to reform the contract was not granted. This is due
to the fact that the period for reformation of a contract is just within 10 years.
In other words, if you want to reform a contract, it shall be done within 10 years
after the contract takes effect.

VII. DEFECTIVE CONTRACTS

> There are 5 types of defective contracts. The following are defective contracts.
(1) Recissible, (2) Voidable, (3) Unenforceable, (4) Void (5) Inexistent. A
recissible contract, is one that is a cancelled contract. The reason as to why it
is cancelled is due to one of the parties suffering economic damages. Because of
the economic damages, to continue the contract may be unfair to the party that
suffered economic damages, therefore it is rescinded. Voidable contracts, are
contracts wherein one of the elements of the contract is at risk. In voidable
contracts, consent shall be monitored. These type of contracts are those where
minors are included. Unenforceable contracts, unenforceable contracts are those
contracts wherein one of the agreements between the 2 parties were not followed,
hence it is unenforceable. Void contracts, are contracts that lack one of the
elements of a contract, these contracts are therefore not valid contracts. The
examples of void contracts are the simulated contracts. And lastly, inexistent
contracts, this type of contract lack one or all, of the elements of a contract,
and therefore is defective.

VIII. BREACH OF CONTRACTS

> A breach of contract happens when one of the stipulations in a contract are
failed to be met by one of the parties. In this case, the non-breaching party has
all the rights to take legal action against the party that created a breach in the
contract. Furthermore, a breached contract is still considered a valid contract.
In the case of Guanio vs Makati Shangri-La, for example. A breach of contract was
done, when the Guanios, let in more guests than what was allowed in the contract.
Causing damages for Makati Shagri-La. In the case, the Guanios are at fault for not
following what was stipulated in the contract. Makati Shangri La on the other hand
does not have any faults as they followed and provided what was stated at the
contract.