Art. 1305.

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.1

“contract’’ (cum traho) simply means an agreement or convention

“convention” is
the genus, while “contract’’ is the specie

Contract may be defined as a juridical convention manifested in legal

form, by virtue of which one or more persons bind themselves in favor of
another or others, or reciprocally, to the fulfillment of a prestation to give,
to do or not to do.

Elements of Contracts. — The elements of a contract may be

classified as follows:

(1) Essential — The essential elements are those without

which there can be no contract. These elements, in turn are subdivided
into common (comunes), special (especiales) and extraordinary or
peculiar (especialisimos). The common elements are those which are
present in all contracts, such as consent of the contracting parties;
object certain which is the subject of the contract; and cause of the
obligation which is established.

The special elements are present only in certain contracts,

such as delivery in real contracts or form in solemn ones.

The extraordinary elements are those which are peculiar to a

specific contract, such as the price in a contract of sale.

(2) Natural — The natural elements are those which are

derived from the nature of the contract and ordinarily accompany the
same. They are presumed by the law, although they can be excluded
by the contracting parties if they so desire.Thus, warranty against
eviction is implied in a contract of sale, although the contracting
parties may increase, diminish or even suppress it.

(3) Accidental — The accidental elements are those which

exist only when the parties expressly provide for them for the
purpose of limiting or modifying the normal effects of the contract.
Examples of these are conditions, terms and modes.

Parties to a contract
-existence of two parties is also another essential element which is
common to all contracts and must, therefore, be added to the
requirements of consent, object certain and cause

Characteristics of Contracts
The four most fundamental characteristics of contracts are;
 the obligatory force or character of contracts (obligatoriedad del
contrato)
 the autonomy of contracts;
 the mutuality of contracts, or what amounts to the same thing, the
essential equality of the contracting parties
 the relativity of contracts (relatividad del contrato)

The principle of the obligatory force of contracts is explicitly recognized

in Arts. 1159, 1308, 1315 and 1356 of the Civil Code.
-It refers to the rule so fundamental in all contracts, that once the contract
is perfected, it shall be of obligatory force upon both of the contracting
parties. Consequently, such contracting parties are bound, not only to the
fulfillment of what has been expressly stipulated, but also to all of the
consequences thereof.

The principle of the mutuality of contracts, on the other hand,

can be deduced, not only from the very nature of contracts, but also
from Art. 1308.
-This principle refers to the position of essential equality that is occupied
by both contracting parties in relation to the contract. The contract must
be binding upon both of the parties. Consequently, its validity or
compliance cannot be left to the will of one of them

The principle of the autonomy of contracts is expressly declared

in Art. 1306.
-The contracting parties may establish such agreements as they may deem
convenient, provided they are not contrary to law, morals, good customs,
public order, or public policy. As a matter of fact, this principle is
guaranteed by Sec. 1, Art. 3 of the Philippine Constitution itself.

The principle of relativity of contracts is expressly declared in

the first paragraph of Art. 1311
-Contracts take effect only betweenthe parties, their assigns and heirs.
Consequently, they cannot, as
a general rule, produce any effect upon third persons, in conformity
with the principle of res inter alios acta aliis negue nocet prodest.
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