SECTION 2. OBJECT OF CONTRACTS
) The object should be licit, in other words, it should not
Article 1347. All things which are not outside the commerce of
men, including future things, may be the object of a contract.
All rights which are not intransmissible may also be the object
of contracts.
No contract may be entered into upon future inheritance except
in cases expressly authorized by law.
All services which are not contrary to law, morals, good
customs, public order or public policy may likewise be the
object of a contract.
Object of Contracts, defined
The object of a contract may be defined as the thing, right, or
service which is the subject matter of the obligation which is
created or established.
Requisites of an object:
As a general rule, all things, rights, or services may be the
object of contracts. It is, however, essential that the following
requisites must concur:
a.) The object should be within the commerce of men, in
other words, it should be susceptible of appropriation
and transmissible from one person to another;
b.) The object should be real and possible; in other words,
it should exist at the moment of the celebration of the
contract, or at least, it can exist subsequently or in the
future;
c.
be contrary to law, morals, good customs, public order
or public policy;
d.) The object must be transmissible;
e.) The object should be determinate, or at least, possible
of determination as to its kind. The fact that the quantity
is not determinate shall not be an obstacle to the
existence of the contract, provided it is possible to
determine the same, without the need of a new contract
between the parties. (Article 1349)
Things, rights, or services that cannot be the object of
contracts:
a.) Things which are outside the commerce of men,
including future things;
b.) Rights which are intransmissible;
c.) Future inheritance except in cases expressly authorized
by law;
d.) Services which are contrary to law, morals, good
customs, public order or public policy (Article 1347);
e.) Impossible things or services (Article 1348);
f.) Objects which are not determinate as to their kind
(Article 1349). If the parties enter into a contract with
respect to the above contracts, the contract is void or
inexistent.
Article 1348. Impossible things or services cannot be the
object of contracts. (1272)
Things are impossible when:
1. Things are not susceptible for existence.
2. Things are outside the commerce of man.
 3. Personal services are beyond the physical strength or
power of man to perform.
Absolute or Objective Relative or Subjective
Impossibility Impossibility
Nobody can perform it Due to the special conditions
or qualifications of the debtor,
it cannot be performed.
Nullifies the contract If temporary, does not nullify
the contract. If permanent,
nullifies the contract.
Difficulty of Performance
When there is a mere difficulty or great inconvenience to
comply with an obligation that is not impossibility. A party who
committed himself to do a difficult obligation is not relieved from
his responsibility even if he would suffer inconvenience or
increased expenses in the fulfillment thereof.
Article 1349. The object of every contract must be determinate
as to its kind. The fact that the quantity is not determinate shall
not be an obstacle to the existence of the contract, provided it
is possible to determine the same, without the need of a new
contract between parties.

Liability for Damages Determination of Quantity

If the thing or service is impossible, there is no contract. Can
there be any claim for damages against the debtor if the creditor
incurred actual damages? The answer is, it depends. If both
parties are fully aware of the impossibility of the thing or service,
there is no liability for damages because both the debtor and
creditor are considered in bad faith. If the debtor knew of the
impossibility or could have known it by exercising ordinary
diligence, he is liable for damages because he is in bad faith or
is negligent. But if the debtor is ignorant of the impossibility, and
his ignorance is justifiable or unavoidable, he cannot be held
liable for the damages suffered by the creditor.
Partly Impossible
The divisibility of the thing or service will determine whether the
partially possible and partially impossible thing or service will
be void or valid.
Once the object is determinate or a specific thing, no need for
a new or further agreement between the parties, but when the
obligation consists in the delivery of a generic or indeterminate
thing, whose quality and circumstances have not been stated,
Article 1246 governs.
Examples:
Mr. X binds himself to deliver one of his elephants to Mr. Y, the
object is determinable without the need of a new contract
between the parties and it becomes determinate the moment it
is delivered.
If the subject matter of the agreement is a parcel of agricultural
land owned by X and X happens to own many agricultural
lands, the contract is void, if the particular land sold cannot be
determined without a new or further agreement between the
parties.
SECTION 3. CAUSE OF CONTRACTS
Article 1350. In onerous contracts the cause is understood to
be, for each contracting party the prestation or promise of a
thing or service by the other; in remuneratory ones, the service
or benefit which remunerated; and in contracts of pure
beneficence, the mere liberality of the benefactor.
Onerous Contracts – a contract in which the aggregate cost
required to fulfill the agreement is higher than the economic
benefit to be obtained from it.
In this type of contract, something is given or promised as a
consideration for the engagement or gift, or some service,
interest, or condition is imposed on what is given or promised,
although unequal to it in value.
Now, the cause here is deemed for both parties in good faith.
Remuneratory Contract - is one where a party gives
something to another because some service or benefit given or
rendered by the latter to the former.
Note that such service or benefit is not due to legal obligations.
Gratuitous Contracts – are essentially agreements to give
donations. Generosity or liberty is the cause of such contracts.
Mutual promise as a cause – a promise made by one party in
accordance with the forms required by law, may be a good
cause or consideration.
Accessory contracts – here the performance of another’s
contract has been secured by other person either by acting as
a surety of bond or by giving his property by way of mortgage
to secure such other person’s contract.
The cause here is pure beneficence.
Beneficence- the act of doing good.
Article 1351. The particular motives of the parties in entering
into a contract are different from the cause thereof. (n)
Motive and Causes, Difference
The cause of a contract is the objective and juridical reason
for the establishment of a contract and is always the same.
while motive is the psychological or personal purpose of a
party in getting the object and differs with each person. Each
party may have his own personal reasons or motives in
entering into a contract. Motive or even with illegal motives
does not affect the validity of the contract.
Exception: If the motive predetermines the purpose of the
contract, motive may be regarded as cause.