Characteristics of contracts.

They are: (1) Freedom or autonomy of contracts. — The parties may establish such stipulations, clauses,
terms, and conditions as they may deem convenient, provided, they are not contrary to law, morals,
good customs, public order, and public policy (Art. 1306.);

(2) Obligatoriness of contracts. — Obligations arising from contracts have the force of law between the
contracting parties and should be complied with in good faith (Arts. 1159, 1315.);

(3) Mutuality of contracts. — Contracts must bind both and not one of the contracting parties; their
validity or compliance cannot be left to the will of one of them (Art. 1308.);

(4) Consensuality of contracts. — Contracts are perfected, as a general rule, by mere consent,4 and
from that moment the parties are bound not only by the fulfi llment of what has been expressly
stipulated but also to all the consequences which, according to their nature,

(5) Relativity of contracts. — Contracts take effect only between the parties, their assigns and heirs,
except in cases where the rights and obligations arising from the contract are not transmissible by their
nature, or by stipulation, or by provision of law