Definition of Contract

A contract is a meeting of minds between two persons whereby one binds himself, with respect
to the other, to give something or to render some service.

Distinguish Contract from Obligation

Contract is the only one of the sources of obligation, while obligations have other sources like
law, quasi-contracts, delicts or quasi-delicts.

Distinguish Contract from Quasi-Contract

A contract is a real agreement between two or more parties, but a Quasi-contract is not an
agreement but resembles an agreement or a contract.
Under a contract, both parties give their consents freely, while under quasi-contract, there is no
consent of either of the parties, as it is not voluntarily made.

Distinguish Contract from Implied Contract

A contract is a meeting of minds between two persons whereby one binds himself, with respect
to the other, to give something or to render some service. Implied contracts are those
contracts which are not expressly stated by the parties concerned, but by their act or behavior,
the contract is created.

Distinguish Implied Contract from Quasi Contract

A “quasi” or constructive contract is an implication of law. An “implied” contract is an implication
of fact. In the former, the contract is a mere fiction, imposed in order to adapt the case to a
given remedy. In the latter, the contract is a fact legitimately inferred.

Concept of Meeting of Minds

Meeting of the minds refers to the comprehension and mutual agreement or mutual assent of
both parties to a contract's terms.

Classification of Contracts
The following may be mentioned:
(1) According to name or designation:
(a) Nominate
has specific name or designation in law; such as commodatum, lease, agency, and sale.
(b) Innominate.
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.
 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)

(2) According to perfection:

(a) Consensual
perfected by mere consent; such as the contract of sale, lease and agency.
(b) Real.
perfected by mere consent and the delivery of the object; such as deposit, pledge and
commodatum.
(3) According to cause:
(a) Onerous
the purpose is the performance of an obligation by one party as the other party performs
or has performed its own obligation.
(b) Remuneratory or remunerative
the purpose is the remuneration or payment by one party for a service or benefit
previously rendered by the other party.
(c) Gratuitous.
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.

(4) According to form:

(a) Informal or common
a type of agreement that will not require any sort of legal intervention to be considered
enforceable.
(b) Formal or solemn.
formal contract is a written legal instrument that requires signatures of both parties and
is generally recorded with the court.

(5) According to obligatory force:

(a) Valid
with such stipulations, clauses, terms and conditions that are not contrary to law, morals,
good customs, public order, or public policy.
(b) Rescissible
with legal validity, but may be rescinded or revoked in the cases established by law.
(c) Voidable
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.
(d) Unenforceable
with legal validity but cannot be enforce through court action by reason of defects,
unless it is ratified according to law.
(e) Void or inexistent.
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.

(6) According to person obliged:

(a) Unilateral
one party is bound to fulfill an obligation for an act by another party.
(b) Bilateral.
both parties are bound to fulfill their mutual promises or respective obligation to each
other reciprocally.