THE LAW ON OBLIGATIONS

AND CONTRACTS
1318-1326
Article 1318.
There is no contract unless the following requisites
concur:
(1) Consent of the contracting parties;
(2) Object certain which is the subject matter of the
contract;
(3) Cause of the obligation which is established.
 Classes of elements of a contract

(1) Essential elements of those without which no contract can validly exist.
(a) Common
(b) Special
(2) Natural Elements
(3) Accidental Elements
 Article 1319. Consent is manifested by the
meeting of the offer and the acceptance
upon the thing and the cause which are to
constitute the contract. The offer must be
certain and the acceptance absolute. A
qualified acceptance constitutes a counter-
SECTION offer.
1. Acceptance made by letter or telegram
CONSENT does not bind the offerer except from the
time it came to his knowledge. The contract,
in such a case, is presumed to have been
entered into in the place where the offer was
made.
 Example

"Justin offer to sell his car to Janine for 2M"

"Yes, I'll by it for 2M"(Janine)
 Example
• (12-01-22) Offer to sell car for 2M
• (12-05-22) Accept the offer and agree to buy the car
• (12-10-22) Sent a letter the accepting the offer of Justin

"BEFORE ACCEPTING THE LETTER, JUSTINE DIED'

 Article 1320

An acceptance may be express or implied.

 REQUISITES OF CONSENT

(1) There must be two or more parties;

(2) The parties must be CAPABLE or CAPACITATED;
(3) There must be NO VITIATION of consent;
(4) There must be NO CONFLICT between what was expressly declared and
what was really intended;
(5) Intend must be declared PROPERLY.
 Article 1321

• The person making the offer may fix the time, place, and the manner of
acceptance, all of which must be complied with. (n)
 Article 1322

• An offer made through an agent is accepted from the time acceptance is

communicated to him.
 Article 1323

• An offer becomes ineffective upon the death, civil interdiction, insanity, or

insolvency of either party before acceptance is conveyed.
 Article 1324

• When the offerer has allowed the offeree a certain period to accept, the offer
may be withdrawn at any time before acceptance by communicating such
withdrawal, except when the option is founded upon a consideration, as
something paid or promised.
• OPTION CONTRACT is a preparatory contract giving a person for a
consideration a certain period and under specified conditions within which
to accept the offer of the offerer.
• OPTION PERIOD is the period given within the offeree must decide
whether or not enter into the principal contract.
• OPTION MONEY is the money paid or promised to be paid as a distinct
consideration for an option contract.
 Article 1325

• Unless it appears otherwise, business advertisements of things for sale are

not definite offers, but mere invitations to make an offer.
 Article 1326

• Advertisements for bidders are simply invitations to make proposals, and the
advertiser is not bound to accept the highest or lowest bidder, unless the
contrary appears.