Contract

- Is a meeting of minds between 2 persons whereby 1 binds himself, with respect to the other, to give something or to
render some service (Art 1305 NCC)

As to its name As to degree of According to risk

As to perfection As to cause
(Art 1307 NCC) dependence involved

Commutative Aleatory
- Each of the - Each of the
Real Principal Accessory Preparatory contracting parties or both
Consensual (Art
- Which is - Which - Which - Which isn’t parties reciprocally
1315 NCC)
perfected can exist can’t and end by gives and bind
- Which is
not by independ exist itself but receives an themselves to
perfected
mere ently of without only a equivalent give or to do
by mere
consent other a valid means for or there is something in
consent
but by contracts principal the a mutual consideration
the contract execution exchange of what the
delivery of another of relative other shall give
of the contract values or do upon the
object of happening of
the an event which
contract is uncertain, or
(Art 1316 which is to
ncc) occur at an
indeterminate
Onerous Remuneratory Gratuitous time
- Where the - Where - Where the
Innominate cause is the cause is
Nominate understood to cause is the mere
- Which is
- Which is be, for each the liberality of
recognized
distinguished contracting service the
in the Civil
by a particular party, the or benefit benefactor
Code, but
or special prestation or for which
not specially
name in the promise of a the
named or
Civil Code thing or remuner
classified
service by the ation is
other given

Do ut des Facio ut facias

Do ut facias Facio ut des

Fundamental Characteristics

Relativity of contracts
Autonomy of (Art 1311 NCC)
Obligatory force of Mutuality of contracts
contracts - Provides that
contracts (Arts 1159 (Art 1308 NCC)
- Or freedom of contracts can
and 1315 NCC) - Contract must
contracts (Art only bind the
- Obligations bind both the
1306 NCC) parties who
arising from contracting
- Contracting entered into it,
contracts have parties; its
parties are and it can’t
the force of law validity or
accorded the favor or
between the compliance
liberality of prejudice a 3rd
contracting can’t be left to
freedom to person, even if
parties and the will of 1 of
establish such he’s aware of
should be them
stipulations, such contract
complied with and has acted
in good faith clauses, terms,
and conditions with knowledge
as they may
deem
convenient,
provided the Including heirs and
assigns, except when Exceptions
same are not
contrary to law, rights and
morals, good obligations arising
customs, public are not transmissible
Stipulation 3rd persons
order, or public by Creditors Tort
pour autrui may be
policy acquire the interference
affected by
right to rescind
Provision of contracts
Their nature Stipulation the contract
law creating
No law entered into by
real rights
No person shall be the debtor with
when they Requisites
shall be passed Requisites a 3rd person if
come into
deprived of impairing that contract is
possession
life, liberty, obligation intended to
of the
or property of contracts defraud him
object of
without due
the contract
process of
law Existence of Knowledge Interference of
a valid on the part of the 3rd person
contract the 3rd is without legal
person of the justification or
Stipulation Contracting 3rd existence of excuse
There must be must be a parties must person contract
stipulation in part, not the have clearly must
favor of a 3rd whole and have
person contract deliberately communic
conferred a ated his
favor upon a acceptanc
3rd person, e to the
not a mere obligor
incidental before its
benefit or revocatio
interest n

Neither of the
contracting
parties bears the
legal
representation
or authorization
of the 3rd party

Reference: Rabuya Pre-Bar

Reviewer in Civil Law