SECTION 2 AND 3 CONTRACTS

Art 1347 - Object of Contracts

 object may be (1) things {as in sale}, (2) rights {as in assignment of credit}, (3) services
{as in agency}
 Requisites of things as object of contract;
1. the thing must be within commerce of men (legally be the subject of commercial
transactions)
2. must not be impossible (legal or physical)
3. must be in existence
4. must be determinate
 general rule: all rights may be the object of a contract
o exception: when they are intransmissible by their nature, stipulation, or provision
of law
 future inheritance - any property or right, not in existence or capable of determination at
the time of the contract, that a person may inherit in the future, such person having only
an expectancy of a purely hereditary right
o inheritance ceases to be future upon the death of the decedent or deceased
 general rule: a contract concerning future inheritance is void
o exceptions:
1. in case of donations by reason of marriage between future spouses with
respect to their future property to take effect, only in the event of death, to
the extent laid down by law in testamentary succession
2. in case of partition of property by act inter vivos by a person to take effect
upon his death

Art 1348 - Impossible Things Cannot Be the Object of Contracts

1. Physical
1. Absolute - act cannot be done by anyone
2. Relative - arises from special circumstance
2. Legal
1. contrary to penal law
2. rule of law makes it impossible to be done

Art 1349 - Quantity of Object of Contract Need Not Be Determinate

 object must be determinate as to its kind or at least determinable without the necessity of
a new agreement
Art 1350 - Cause of Contracts
1. In onerous contracts - the prestation or promise of a thing or service by the other
2. In remuneratory contracts - service or benefit which is remunerated
3. In contracts of pure beneficence - mere liberality of the benefactor
 Cause, meaning
o the essential reason which the contracting parties have in view at the time of
entering into the contract,
o It is something bargained for in exchange for a legally enforceable promise of
another,
 o Civil code term for consideration
 Cause vs object
o General distinction :
 Classification of contracts accord to cause:
1. Onerous
2. Remuneratory
3. Gratuitous

Art 1351 - Motives are different from Cause

 Motive - purely personal or private reason why a party is entering a contract
o Cause - immediate or direct reason
o Cause - always known to the other party
o Cause - an essential element to a contract
o The illegality of cause affects validity of contract

Art 1352 - Contracts W/O Cause or Unlawful Has No Effect

 Unlawful if it is contrary to law, morals, good customs, public order or public policy

Art 1353 - False Cause is Void

 meant that the contract states a valid consideration but such statement is not true
 Requisites of Cause
1. Existing at time contract is entered into
2. Must be lawful
3. Must be true or real
 Absence or want of cause - means there is a total lack of any valid consideration for the
contract
o Contracts without cause produces no effect and rights, thus: (EFFECT)
o Contract absolutely simulated is inexistent and void
o When there is no consideration (eg. Price) the statement of one in contracts of sale
will not suffice to bring it under rule of article 1353 as false consideration
o Promises to make a gift or any gratuitous service in the future are not enforceable
as contracts because they contain no consideration
o Promises made in gratitude for good deeds of others are also not enforceable bcs
they only have moral (not legal) consideration
 False Cause may be
o Erroneous/error - void
o Simulated - void (absolute) or binded by true agreement (relative)
 Inadequacy of Cause
o General rule: not a ground for relief
 Failure of Cause
o Does not render a contract void
o ex. (failure to pay stipulated price in a contract) does not convert into a contract
that has no cause
 Illegality of Cause
o there is cause but that cause is unlawful and renders a contract VOID
o exs:
  a promise of marriage based upon carnal connection
 a contract whereby a person accused of a crime obliges himself to give a
sum of money in consideration on the promise on the part of the obligee to
refrain from testifying against him is void

Art 1354 - Cause PRESUMED to Exist and Lawful

 Although cause is not stated in the contract, it is presumed that IT EXISTS and IS
LAWFUL

Art 1355 – Lesion

 Lesion, concept
o any damage caused by the fact that the price is unjust or inadequate
o the injury suffered in consequence of inequality of situation, by one party who
does not receive the full equivalent for what he gives in a commutative contract
 general rule: lesion or inadequacy of cause does not itself invalidate a contract, bcs the
law assumes that the parties themselves remain the best judges of how much their bargain
is worth
o exceptions:
1. when there has been fraud, mistake, or undue influence
2. in cases specified by law