5 principles of contact
Third person must not be representing any of the
1. Consensuality - applies only to consensual contract -
1315
- can be perfected by mere consent
2. Autonomy - 1307
- applies to all contract
- freedom to stipulate
- parties can write anything under the sun but subject to
5 limitations
a. Contrary to law
b. Morals
c. Customs
d. Public policy
e. Public order
3. Mutuality (1308) - compliance of contract cannot be
left to the will of one of them
-you can not just allow any of the party change things
-there should always be consent of the both parties
between each others concern
4. Obligatory (1159 & 1356) - contact shall be the law
between the parties thus it is obligatory..
- you have to comply with it in good faith or not you can
be liable of damages
1356 - contract shall have obligatory force in any form
- parties must comply or there will be consequences
5. Relativity (1311) - who are affected by the contract
-the parties, their heirs
-affect those who signs
- assigns can also be affected
*Exceptions
1. 1311 par 2 - refers to stipulation in favor of a third
person - stipulation pour autrui
- if you include a third person in your contract then he is
also affected
Stipulation in favor of the third person
a. Stipulation must be clear,
b. the third person must accept,
c. stipulation must be a part of a contract,
d.
primary parties, he is independent
*Consent can be expressed or implied
2. 1312
*Rights of mortgagee is superior than the right of
purchaser of a real property if it is subject to existing
right.
*When you buy a property bound with an existing right
then you are affected
*Although it is not registered and you have knowledge
with it then it is registered
3. 1313 - creditors are protected in cases of fraud
*If acts of the debtor is to defraud the creditor...
Creditor can file a case against the buyers of D's
property with Accion Pauliana
*Badges of Fraud - sold to his daughter/son, sold it and
still using it, sold by installments, sold in a cheap
amount
4. 1314 - any third person who induces another to
violate his contact shall be liable for damages
*If Inducement of third person make the debtor violate
it's contract to the creditor...creditor can file a case to
the third person
1317 - contract of agency
- no person shall act in your behalf if you didn't give
your authority
- if somebody will do an act in your behalf without
authority then it will be unenforceable
- excess of authority - contract will be unenforceable to
the principle
- acted outside his acts of authority
*Exception - ratification - can be expressed or implied
*acts is valid if the principal ratifies
*Ratification - principal confirm the act of the agent
Chapter 2
1318 - Three requisites of consensual contracts
1. Consent of the contracting Parties
2. Object certain which is the subject matter of the
contract
3. Cause of the obligation
1319 - Consent - there is consent if there is offer and
acceptance
- offer must be certain - exact description
- acceptance must be absolute
*Offer and acceptance must be together
* If it is just a mere invitation of the one offering he can
reject
* Once you acquired knowledge of his acceptance
there's already a contract, thus you can no longer
withdraw
*Before acceptance you can withdraw, but after you
cannot withdraw

Requisites of Consent
1. Offer must be certain
2. Acceptance must be absolute

Characteristics of valid consent

1. Involve 2 parties
2. Consent must be intelligently given - minors can't be
in a valid consent
- minors don't have the capacity nor intelligence

3. Consent must be freely and voluntarily given

5 vices of consent
A. Mistake
B. Fraud
C. Violence
D. Intimidation
E. Undue Influence