*Contract- meeting of minds whereby one binds Classification of Contracts According to Perfection Essential Requisites of Contracts Accidental errors
s Accidental errors – or the particular terms,
himself, with respect to the other, to give or render
some service;
-is one of the sources of obligations.
-agreements enforceable through legal proceedings.
*Obligation is the legal tie /relation that exists after
a contract has been entered into.
“There can be no contract if there is no obligation.
But an obligation may exist without the contract.”
Contract must not be contrary to morals.
*Morals deal with norms of good and right conduct
in a community.
Contract must not be contrary to public order .
*Public order refers principally to public safety
although it has been considered to mean also the
public weal.
Contract must not be contrary to public policy.
*Public policy is broader than public order, the
former refer not only public safety but also
considerations moved by the common good.
*Solemn contract – requires compliance with certain
formalities prescribed by law. (donation of real
property which must be in a public instrument)
*Consensual contract – perfected by mere consent.
(e.g. sale, lease, agency)
*Real contract –perfected by the delivery of the
thing subject matter of the contract. (e.g. pledge)
Stages in the Life of a Contract
*Preparation or negotiation – includes all steps
taken by the parties leading to the perfection. At this
stage, the parties have not yet arrived at any definite
agreement.
*Perfection or birth – when the parties come at
definite agreement regarding the subject matter and
cause of the contract.
*Consummation or termination – when parties
performed their respective obligations and the
contract have been fully accomplished, resulting in
the termination thereof.
*Consent of the contracting parties
*Object or the subject matter of the contract
*Cause of the obligation which is established
Classes of Elements of a Contract
a. Essential elements – those without which no
contract can validly exist. Also known as requisites of
a contract.
They may be subdivided into:
1.Common – those present in all contracts, namely,
consent, object and cause.
2.Special – those not common to all contracts or
those which must be present only in certain
specified contracts.
b. Natural elements – those that are presumed to
exist in certain contracts unless the contrary is
expressly stipulated by the parties, like warranty
against eviction or warranty against hidden defects
in sale.
/conditions established by the parties in their
contract like conditions, period, interest, penalty,
etc. only exist when provided by parties.
*Consent – meeting of minds between the parties
on subject matter & the cause which constitute the
contract.
*Offer – a proposal made by one party to another to
enter into a contract.
*Acceptance – manifestation by the offeree of his
assent to the terms of the offer.
The following cannot give consent to a contract
*unemancipated minors, insane, deaf-mutes who
cant write, lasing
Under the Rules of Court, they are considered incompetents &
may be placed under guardianship
*suffering the accessory penalty of civil interdiction
*lepers, prodigals, deaf & dumb & cant write
*unsound mind, those who, by reason of age,
disease, weak mind of age, disease na easy para
maloko
Characteristics of consent
*It must be intelligent – there is capacity to act.
*It is free and voluntary – there is no vitiation of
consent by reason of violence or intimidation.
*It is conscious/ spontaneous – there is no vitiation
of consent by reason of mistake/ fraud.
Vices of Consent
*error or mistake - the false notion of a thing to the
contract.
*violence or force- serious physical force exerted
upon a person to prevent him from doing something
*intimidation or threat or duress- an internal moral
force operating in the will and inducing
performance of an act
*undue influence – taking advantage of another bec.
of position of power
(Doctor & Patient, Trustee & Beneficiary).
*fraud –nanguuto, frontrow haha
*fraudulent misrepresentation- not say buong truth
Requisites of Things as Object of Contract
*not impossible
*within the commerce of men, pwede mabenta
*capable of coming into existence.
*determinate
Requisites of Services as Object of Contract- same
Rights as Object of Contract
*Outside the commerce of men – public places,
common sa lahat
*Impossible, physically and legally – drugs, pumatay
*Determinate things – All sako ng bigas sa bodega
*Future things – bagay gagawin palang, stock mrkt
Cause (causa) -purpose of entering into the contract.
Classification of Contracts According to Cause
a. Onerous promise of a thing or service,the parties
are reciprocally obligated to each other.(Sale; rent,
partnership)
b. Remuneratory– The purpose of the contract is to
reward the service that had been previously
rendered by the party remunerated.
c. Gratuitous – one the cause of which is the mere
liberality of the benefactor (Pure donation)
Requisites of Cause
*must exist at the time the contract is entered into.
*lawful., *true or real.
Effect of Absence of Cause- means that there is a
total lack of any validconsideration for the contract
Form of Contracts
a. Informal or common contract – may be entered
into in whatever form provided all the essential
requisites for their validity are present.
b. Formal or solemn contract – is required by law for
its efficacy to be in a certain specified form.
*Voidable or annullable contracts -possess all the
essential requisites of a valid contract but one of the
parties is incapable of giving consent.
*Ratification cleanses the contract from all its
defects
*Unenforceable contracts cant be enforced in court
by reason of defects provided by law
*Unauthorized contracts – nagpapangap na pulis
*Voidable contracts -those which possess all the
essential requisites of a valid contract but one of the
parties is incapable of giving consent.
*Rescissible contracts-valid contracts bec. all the
essential requisites of a contract exist but by reason
of injury or damage (e.g. economic damage) the
contract may be rescinded.
*Void or inexistent contracts - have no effect at all
and cannot be ratified.
*Rescission is a remedy granted by law to the
contracting parties and sometimes even to third
persons in order to secure reparation of damages
caused them by a valid contract.