On Contract

9/30/2020 Contract | Philippine Law and Government Wikia | Fandom
PhiLawGov 25 ADD NEW PAGE

PAGES
FAVORITES LAW GOVERNMENT COMMUNITY EXPLORE DISCUSS
in: Obligations and Contracts, Sources of Obligation
Contract EDIT
COMMENTS (0) SHARE
mainly discussed in Title II (Articles 1305-1422) of Book IV of the Civil Code

of the Philippines.
A contract is an agreement through meeting of the minds
between two persons whereby one binds himself, with respect to
the other, to give something or to render some service.[1] It have
the force of law between the parties and have been complied
with in good faith.[2]
The term force of law in the definition refers to the legal aspect
of an agreement as a contract. This means that you can go to
court and ask for a civil action in case of non-compliance of the
contract. Any agreement without the 'force of law' are not
contracts but merely personal or social agreements.
The term in good faith denotes fairness and honesty of intention
Mi 10T Series
in the performance of the contract, so as to not destroy or injure
the right of one of the parties. It would not be in good faith, for Global Launch
instance, when one party has exempted himself from the
contract while the other is still bound to it.
A contract is one of the sources of obligation. An obligation is
the juridical necessity that results when a contract is completed
or perfected. There can be no contract if there is no obligation,
though not all obligations arise from contracts. The obligation
that arises from contracts is called conventional obligation.
Join us on the Global
Contents Launch of the Mi 10T
1 Characteristics of Contract Series
2 Elements of Contract
3 Stages of Contract
4 Form of Contract
5 Reformation of Contract
6 Interpretation of Contract Recent Wiki Activity
7 Classifications of Contract
Conditional Obligation
8 Resources • 01:50, 20 June 2020
Interpretation of Contract
• 15:31, 28 April 2018
Characteristics of Contract
Administrative Agency
The common characteristics of contracts are:
• 08:29, 28 April 2018
Obligatory - the force of law between the contracting
Administrative Adjudication
parties compel them to perform under the threat of civil • 08:28, 28 April 2018
action or lawsuit.
Exhaustion of Administrative Remedies
Autonomy - such stipulations, clauses, terms and • 08:27, 28 April 2018
conditions are established by the contracting parties as
they may deem convenient, provided they are not contrary
to law, morals, good customs, public order, or public
policy.[3]
Gaming: New Releases New in Entertainment Lifestyle: Travel Over 8,000 pages dedicated to cars.
https://philawgov.wikia.org/wiki/Contract 1/6
Mutuality - the bind must involve both of the parties,so
that the validity or compliance of a contract cannot be left
to the will of only one of them.[4]
Relativity - the effectivity is only between the parties, their
assigns and heirs, except in case where the rights and
obligations arising from the contract are not transmissible
by their nature, or by stipulation or by provision of law.[5]
Consensuality - the mere consent that perfected the
contract should bound the parties to the fulfillment of what
has been expressly stipulated, and all the consequences
which, according to their nature, may be in keeping with
good faith, usage and law.[6] However, real contracts,
such as deposit, pledge and commodatum, are not
perfected until the delivery of the object of the obligation.[7]
Elements of Contract
A contract has the following essential elements:
Consent - a meeting of the minds between parties with
respect to the object and cause; there is a certain offer by
one party and there is an absolute acceptance by another
party.[8]
Object - the thing, right, or service to be provided or
performed under the contract.
Cause (causa) - the essential purpose or reason for the
contract:
for onerous contracts, the promise of a thing or
service by the other.[9]
for remuneratory contracts, the service or benefit
which is being remunerated.[9]
for contracts of pure beneficence, the mere liberality
of the benefactor.[9]
The contract will not be perfected unless the aforementioned
elements or requisites concur.[10]
In addition, a contract also has:
Natural elements - those which are part of the contract
even if the parties do not provide (stipulate) them, and is
presumed by law to exists; such as a warranty of hidden
defects or eviction in contract of sale.
Accidental elements - those which are established or
stipulated in the contract by the contracting parties as they
may deem convenient; such as stipulations, clauses, terms
and conditions.[3]
Stages of Contract
A contract undergoes three stages:
Preparatory or conception - process of formation
through bargaining or negotiation, which begins from the
time the prospective contracting parties manifest their
interest in the contract that leads to the perfection of the
contract. Either party may stop the process or withdraw an
offer made.
Pefection or birth - process of arriving at a definite
agreement or meeting of the minds as to the elements of
the contract, particularly the essential ones (object and
cause).
Consumption or death - the fulfillment of the respective
obligations of the parties under the contract, resulting to its
accomplishment and extinguishment.
Form of Contract
Gaming: New Releases New
main
in Entertainment
article: Form of
Lifestyle:
ContractTravel Over 8,000 pages dedicated to cars.
The form of a contract is manifested by:
intent or will - its psychological existence; only conceptual
and cannot have legal value.
expression of such intent or will - its physical or logical
existence; substantial and can have legal value.
A contract may be in the form of:
an oral agreement, or those that are partly oral and partly
written, which are oral contract in legal effect.[11]
a single written agreement signed by both parties, wherein
all its terms are in writing[11], regardless if it is hand-written
or electronically encoded/printed.[12]
a written agreement with two copies; one signed by one
party, the other signed by the other party.
a set of signed written agreements which are related and
not contradictory.
a set of unsigned written agreements identified as part of
the signed written agreements.
any formal written agreement/s:
private instrument - has no acknowledgement from a
notary public or any authorized official.
public instrument - has acknowledgement from a
notary public or any authorized official.
A contract should also be in:
a form required by the law for its validity.[13]
a form required by the law to be enforceable or be proved
in a certain way.[13]
a form required by the law for for the convenience of the
parties or for the purpose of affecting third persons.
Reformation of Contract
main article: Reformation of Instruments
A contract is reformed to order to amend or correct its form as a

written instrument so that it would conform to the real intention
of the parties.[14]
It is important to note that reformation does not change the
contract, rather it aims to establish its real purpose as
manifested by the real intention of the parties.
The reformation of instrument requires:[14]
a meeting of the minds of the parties.
a written instrument that does not express the real
intention of the parties due to mistake, fraud, inequitable
conduct, or accident; such real intention must always
prevail.
a petition/request for the reformation of the instrument; this
is in order for the facts to be put into legal proceeding.
a clear and convincing proof to support such petition.
Interpretation of Contract
main article: Interpretation of Contract
A contract is interpreted in order to determine the meaning of

the terms or words used in its contents and provisions
(stipulations) that are ambiguous, not understood, and not
obvious.
The interpretation of contract has the following rules:
there is no need for interpretation if the terms of a contract
are clear and leave no doubt upon the intention of the
contracting parties.[15]
the evident intention of the parties shall prevail if there is a
conflict between such intention and the words.[16]
the specific terms shall prevail if there is inconsistency or
confusion over the uses of general terms covering the
same subject matter.[17]
the most adequate meaning shall prevail if some
provisions have several meanings.[18]
the interpretation of a contract as a whole shall prevail if
there are various doughtful provisions in the entirety.[19]
the most sensible meaning shall prevail if a word has
multiple meanings; this is in keeping with the nature and
object of the contract.[20]
the usage or custom of the place shall prevail if the parties
entered into their contract with reference to such usage or
custom.[21]
the interpretation of obscure terms or stipulations shall be
against the party who caused the obscurity.[22]
in case the above rules are unable to settle doubts, the
supplementary rule shall resolved such doubts:
in incidental circumstances of a gratuitous contract,
the interpretation should be made which would result
in the least transmission of rights and interests.[23]
in onerous contract, the interpretation should be in
favor of the greatest reciprocity of interests.[23]
in object, the contract shall be null and void since the
intention of the parties cannot be known.[23]
Classifications of Contract
according to form:
Informal contract - in any form as long as all the
requisites or essential elements for its validity are
present.[13]
Formal contract - in a form required by the law.[13]
according to the involvement of the parties:
Unilateral contract - one party is bound to fulfill an
obligation for an act by another party.
Bilateral contract - both parties are bound to fulfill their
mutual promises or respective obligation to each other
reciprocally.[24]
according to name or designation:
Nominate contract - has specific name or designation in
law; such as commodatum, lease, agency, and sale.
Innominate contract - has no specific name or
designation in law; shall be regulated by the stipulations of
the parties, by the Civil Code, by the rules governing the
most analogous nominate contracts, and by the customs
of the place.[25]
do ut facias (I give that you may do)
facia ut des (I do that you may give)
facio ut facias (I do that you may do)
according to perfection:
Consensual contract - perfected by mere consent;[26]
such as the contract of sale, lease and agency.
Real contract - perfected by mere consent and the
delivery of the object; such as deposit, pledge and
commodatum.[7]
Solemn contract - perfected through compliance with the
form required by law;[13] identical with formal contract.
according to cause or purpose:
Onerous contract - the purpose is the performance of an
obligation by one party as the other party performs or has
performed its own obligation.[9]
Remuneratory contract - the purpose is the remuneration
or payment by one party for a service or benefit previously
rendered by the other party.[9]
Gratuitous contract - the purpose is the mere liberality or
the feeling by one party that the other party (which is the
benefactor/giver) has been generous; such as in free, pure
donation.[9]
according to the obligatory force:
Valid contract - with such stipulations, clauses, terms and
conditions that are not contrary to law, morals, good
customs, public order, or public policy.[3]
Rescissible contract - with legal validity, but may be
rescinded or revoked in the cases established by law.[27]
Voidable/Annullable contract - with legal validity but may
be invalidated by a court action on the grounds of mistake,
violence, intimidation, undue influence, fraud, or incapacity
of one of the parties to give consent.[28]
Unenforceable contract - with legal validity but cannot be
enforce through court action by reason of defects, unless it
is ratified according to law.[29]
Void contract - with no validity at all because of certain
defects, such as illegality; considered inexistent from the
very beginning and cannot be ratified according to law.[30]
Resources
General References:
Websites:
Citations:
1. Civil Code, Article 1305

11. Manuel v. Rodriguez; G.R. No. L-13435 (1960)
12. Sec. 17, Republic Act No. 8792 (Electronic Commerce Act
of 2000)
15. Civil Code, Article 1370 par. 1
16. Civil Code, Article 1370 par. 2
25.
Gaming: New Releases New in Civil Code,
Entertainment ArticleTravel
Lifestyle: 1307
Over 8,000 pages dedicated to cars.
Retrieved from "https://philawgov.wikia.org/wiki/Contract?

oldid=489"
Categories: Obligations and Contracts Sources of Obligation
Community content is available under CC-BY-SA unless

otherwise noted.
Add a comment about Contract
No Comments Yet
Be the first to comment on Contract!
Mi 10T Series Global Launch

#PowerYourCreativity with the new Mi 10T Series
Xiaomi PH OPEN
Copyright 2020 Fandom, Inc. · Terms of Use · Privacy Policy · Do Not Sell My Info · Support · Help

On Contract

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

On Contract

Uploaded by

Copyright:

Available Formats

9/30/2020 Contract | Philippine Law and Government Wikia | Fandom

PhiLawGov 25 ADD NEW PAGE

FAVORITES LAW GOVERNMENT COMMUNITY EXPLORE DISCUSS

in: Obligations and Contracts, Sources of Obligation

mainly discussed in Title II (Articles 1305-1422) of Book IV of the Civil Code

A contract is reformed to order to amend or correct its form as a

A contract is interpreted in order to determine the meaning of

1. Civil Code, Article 1305

Retrieved from "https://philawgov.wikia.org/wiki/Contract?

Categories: Obligations and Contracts Sources of Obligation

Community content is available under CC-BY-SA unless

Add a comment about Contract

Mi 10T Series Global Launch

You might also like