Contract - e.g.

stipulation such as
● Came from the latin word interest in loan)
“Contractus” - This are stipulation of the
● It is a juridical convention manifested party such as loan
in legal form - This is not exist when the
● GOOGLE: A contract is an contract is formed
agreement between parties, creating
mutual obligations that are
enforceable by law Distinguish from Obligation
● The obligations that arise from a - Contract is one of the sources of
contract have the force of law as obligations
between the contracting parties. - Obligation is the legal tie or relation
itself that exists after a contract has
been entered into.
ART. 1305. A contract is a meeting of - Hence, there can be no contract if
minds between two persons whereby there is no obligation. But an
one binds himself, with respect to the obligation may exist without a
other, to give something or to render contract.
some service. (1254a) - All contracts are agreements
- NOT all agreements are contract
Meeting of Minds = it takes place when an
offer by one party is accepted by the other
Stages in the life of a contract
Is it necessary that Contract must be in 1. Preparation or conception
writing? ● Preparatory step
● No, it is not necessary that it is in ● Bargaining point
writing or paper. Except that the law ● Negotiation stage
(batas) requires it.
2. Perfection
Elements ● Meeting of minds regarding
1. Essential Elements (Art. the subject matter and the
1388-1355) cause of the contract.
- In any type of contract the ff
should be present: 3. Consummation
a. Consent ● Parties performed their
b. Object respective obligations, and
c. Cause so the contract is put to an
end.
2. Natural Elements
- warranty against eviction and
hidden defects in case of Classifications of contract
sales) 1. According to name or
- Elements that are initially designation:
present in some certain a. Nominate contract or that
contracts which has a specific name or
- Timeline/ period of time designation in law
- (e.g. commodatum,
lease, agency, sale,
etc.)

3. Accidental Elements
 b. Innominate contract or that
which has no specific name ● Remunerative
or designated in law - "For service
previously rendered
2. According to perfection: (tapos na yung
● Consensual service)
- Perfected by mere - cause is based on
agreement of the services or benefits
parties (i.e. sales, already received
lease).
- Perfected by ● Gratuitous
Consent, Object, and - one of the parties
Cause proposes to give to
- binenta mo yung the other a benefit
sasakyan mo and without any
pumayag equivalent or
compensation (i.e.
● Real commodatum).
- Requires not only the - Cause is purely
consent of the parties generosity
for their perfection,
but also the delivery
of the object by 1 4. According to form:
party to the other (i.e. a. Informal or common; and
commodatum, -
deposit, pledge). b. Formal or solemn.
-
● Formal *sa 2020 ver ‘to pero
sa book wala, inadd ko lang* 5. According to obligatory force:
- Requires some a. Valid (see Art. 1306.);
particular form (i.e. b. Rescissible (Chapter 6.);
donation, chattel c. Voidable (Chapter 7.);
mortgage). d. Unenforceable (Chapter 8.);
- Formalities required and
by law e. Void or inexistent. (Chapter
9.)

6. According to parties obliged:

a. Unilateral
3. According to cause: - only one party is
● Onerous obliged
- reach of the parties - (e.g. commodatum,
aspires to procure for donation)
himself a benefit b. Bilateral
through the giving of - both parties are
an equivalent or obliged
compensation (i.e. - (e.g. sales, barter)
sale).
- Cause has valuable
consideration
 7. According to risks: given to it by the parties but by its nature or
a. Commutative character as determined by principles of
- when the undertaking law. (see Art. 1371.)
of one party is
considered the
equivalent of that of
the other 10. According to dependence to
- e.g. sales, lease) another contract:
b. Aleatory a. Preparatory
- when it depends upon - (e.g., agency,
an uncertain event or partnership),
contingency both as - when it is entered into
to benefit or loss as a means to an
- (e.g. contract of end;
insurance, sale of b. Accessory
hope) - (e.g., mortgage,
guaranty),
- when it is dependent
8. According to risks: upon another contract
a. Commutative it secures or
- (e.g., sale, lease), guarantees for its
- when the undertaking existence and validity;
of one party is and
considered the c. Principal
equivalent of that of - (e.g., sale, lease),
the other; and - when it does not
b. Aleatory depend for its
- (e.g., insurance, sale existence and validity
of a hope6), upon another contract
- when it depends upon but is an
an uncertain event or indispensable
contingency both as condition for the
to benefit or loss. existence of an
accessory contract.

9. According to liability:
a. Unilateral
- (e.g., commodatum,
gratuitous deposit),
- when it creates an
obligation on the part
of only one of the
parties; and
b. Bilateral
- (e.g., sale, lease),
- when it gives rise to
reciprocal obligations
for both parties.
The kind of contract entered into is not
determined, however, by the name or title
11. According to dependence of part
of contract to other parts.
a. Indivisible (or entire)
- (e.g., sale of a dining
room table and 8
matching chairs),
- when each part of the
contract is dependent
upon the other parts
for satisfactory
performance, and
b. Divisible
 - (e.g., sale of rocking
chair and a pair of
shoes),
- when one part of the
contract may be
satisfactorily
performed
independently of the
other parts. (see Arts.
1223-1225.

The kind of contract entered into is not

determined, however, by the name or title
given to it by the parties but, by its nature or
character as determined by principles of
law, principally the intention of the
contracting parties. (see Art. 1371.)

ART. 1306. The contracting 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, or public policy. (1255a)

Freedom to contract guaranteed.

The freedom to contract is both a
constitutional and statutory right.
yyyh